BOARD OF DIRECTORS (As on 04.09.

2020)
CHAIRMAN-CUM-MANAGING DIRECTOR
Shri P K Rath
FUNCTIONAL DIRECTORS
Shri K. C. Das Shri V V Venu Gopal Rao Shri D.K. Mohanty
Director (Finance) Director (Commercial)
Director (Personnel)
(w.e.f. 01.08. 2019)
Shri K.K.Ghosh Shri Ajit Kumar Saxena Shri P Raychaudhury
Director (Projects) Director (Operations) Director (Commercial)
(w.e.f. 05.09. 2019) (w.e.f. 17. 10. 2019 ) (upto 31. 07. 2019 )
GOVT. NOMINEE DIRECTORS
Shri Vijoy Kumar Singh, IAS Shri Saraswati Prasad, IAS
AS & FA, Ministry of Textiles (MoT), Special Secretary & Financial Advisor,
Financial Advisor (Addl. Charge), Ministry of Steel (MoS) Ministry of Steel (MoS) & Govt. Director
& Govt. Director (w.e.f. 17. 03. 2020) (upto 22. 01. 2020)
Ms. Ruchika Chaudhry Govil, IRS Shri Rohit Yadav, IAS
Jt. Secretary (Steel). Jt. Secretary (Steel).
Ministry of Steel (MoS) & Govt. Director Ministry of Steel (MoS) & Govt. Director
(from 22. 01. 2020 to 17. 03. 2020)
INDEPENDENT DIRECTORS
Shri Ashwini Mehra Dr. Sita Sinha Shri Sunil Gupta Shri S K Mishra, IRS (Retd.)
(w.e.f. 24. 01. 2020) (upto 12.11. 2019) (upto 26.11. 2019)
COMPANY SECRETARY & COMPLIANCE OFFICER REGD.OFFICE
CS M. Jagadeeshwara Rao Administrative Building,
STATUTORY AUDITORS Rashtriya Ispat Nigam Limited (RINL),
M/s. M. Bhaskara Rao & Co. Visakhapatnam Steel Plant (VSP), Visakhapatnam, 530 031.
Chartered Accountants, Visakhapatnam Tel: (0891) 251 8015/251 8249; Fax:(0891)251 8249
Email: jagadeeshm@vizagsteel.com
COST AUDITORS
Website:www.vizagsteel.com
M/s. K. G. Goyal & Associates
Cost Accountants, New Delhi BANKERS
SECRETARIAL AUDITORS
State Bank of India
M/s. Vinod Kothari & Company Canara Bank
Practising Company Secretaries, Kolkata Union Bank of India
REGISTRAR AND SHARE TRANSFER AGENT IDBI Bank
KFIN TECHNOLOGIES PRIVATE LIMITED Indian bank
Selenium Tower - B, Plot No.31 & 32, Financial District, Bank of Baroda
Nanakramguda, Serilingampally, Hyderabad-500 032, Punjab National Bank
State of Telangana, India ICICI Bank
IndusInd Bank
SUBSIDIARIES
Kotak Mahindra Bank
Eastern Investments Limited (EIL) HDFC Bank
The Orissa Minerals Development Company Limited (OMDC)
The Bisra Stone Lime Company Limited (BSLC)
JOINT VENTURE COMPANIES
RINMOIL Ferro Alloys Private Limited
International Coal Ventures Private Limited
RINL Powergrid TLT Private Limited
 Contents
Chairman’s Address 1
A Glance of Financial Results since Inception 3
Financial Highlights (FY 2019-20) 7
Directors' Report 8
Management Discussion and Analysis Report (Annexure-I) 30
Corporate Governance Report (Annexure-II) 36
CEO & CFO Certificate (Annexure-III) 49
Corporate Governance Certificate (Annexure-IV) 50
Annual Report on Corporate Social Responsibility (Annexure-V) 51
Extract of Annual Return (MGT-9)(Annexure-VI) 58
Conservation of Energy, Technology Absorption, R&D,
Foreign Exchange Earnings & Outgo (Annexure-VII) 67
Secretarial Audit Report (Annexure-VIII) 73
Audited Annual Accounts
Standalone Financial Statements
Auditor's Report 79
C&AG 'Nil' Comments Report 88
Balance Sheet 92
Statement of Profit & Loss 93
Statement of Changes in Equity 94
Statement of Cash Flows 95
Notes to Standalone Financial Statements 96
Consolidated Financial Statements (CFS)
Notes on Subsidiaries & Joint Ventures 138
Statement on Financial Statements of Subsidiaries & JVs (Form AOC-1)141
Auditor's Report 142
C&AG 'Nil' Comments Report 154
Consolidated Balance Sheet 156
Consolidated Statement of Profit & Loss 157
Statement of Changes in Equity 158
Consolidated Statement of Cash Flows 159
Notes to Consolidated Financial Statements 160
NOTICE 237
 CHAIRMAN’S ADDRESS
Dear Stakeholders,
On behalf of RINL Collective and the Board of Directors, it
gives me immense pleasure in welcoming you all to the
38th Annual General Meeting of your Company for the
financial year 2019-20. I take this opportunity to thank you
all for making it convenient to attend the meeting and
express my gratitude for your continuous support and
patronage. It is indeed an honour and a privilege to share
my thoughts and apprise you about the achievements of
your Company during the FY 2019-20. The Director's Report,
the Audited Financial Statements for the year 2019-20 and
the notice to the shareholders have already been circulated
and with your permission, I take them as read.
External Environment:
As you are aware, the company is operating in Long Product
segment of Steel Industry, with Construction and
Automobile sectors as the main sectors. While the GDP growth of 64% over 59 kg/tHM in the previous year. In the
growth of the country reduced to 3.90%, the Construction area of Iron Ore, the company started to blend Iron Ore
and Manufacturing sectors were most affected with growth Slimes in Iron Ore Fines, for the first time. During the
rates of 1.30% and 0.03% respectively. As per core sector year, the blending was to an extent of 8.58%.
reports of the government, the production of Cement During the year, the production of Value Added Steels
registered a negative growth of (-) 0.90%, against 13.30% increased to 76.5% from 73.2% in the previous year.
in the previous year. Similarly, the Automobile production Production of Cast rounds in 430mm size was commenced
registered a negative growth of (-) 14.73% against 6.26% to cater the flange industry requirements in A105 and A105R
in the previous year. grade and LWR34 grade for production of LOCO wheel in
The prices of long products in the country witnessed a steep Forged Wheel Plant.
fall of more than Rs.10,000/t during the period Sep'19- Blast Furnace-1, which was put down (without salamander
Sep'20. The reduction in prices of Imported Coking Coal tapping) since 6th Sep'19 was restarted on 27th Jan'20 with
and Iron Ore was not commensurate. in house expertise (without the help of any contractual
Company's performance agency) and brought back to normalcy in operation by
second half of Feb'20.
Due to such severe external environment, the year 2019-
20 turned out to be the most challenging year for the Sustainability initiatives
company. Due to build-up of inventory, the company was The Company continued to pursue various internal drivers
forced to adopt optimum production model, shutting down for cost reduction in the areas pertaining to raw material,
one of the three Blast Furnaces during the period Sep'19 to generation of green energy and improvement in operational
Jan'20. As a result, the company could achieve Liquid Steel efficiency.
production of 4.983 Mt and Sales Turnover of 15,819 Cr
only, which are 9.7% and 24.1% lower than the previous Corporate Social Responsibility (CSR)
year. The Net Sales Realization was lower by 13%, in Taking your Company's commitment to socio economic
comparison to the previous year. With this, your company's transformation of people in and around the Plant and Mines
EBITDA was negative at 1,498.50 Crs as against positive forward, your Company has undertaken a number of projects
EBITDA of 1,802.91 Crs in the previous year. / activities and programs as part of its CSR initiatives.
Your company incurred net loss (PAT) of 3910.17 Crs as I would like to underline that in spite of incurring successive
compared to a net profit (PAT) of 96.71 Crs in the previous losses during the last three financial years, the Company
year. spent an amount of 7.96 Crores during the year, mainly
on continuation of flagship schemes.
To reduce the impact of lower production volumes, increased
thrust was given for improvement of technical parameters A separate section is provided in Directors' Report regarding
and significant improvement was achieved in important CSR activities and an Annual Report of CSR is also attached
parameters such as Pulverised Coal Injection. The to the Directors' Report.
Pulverised Coal Injection increased to 97 kg/tHM, with a

1
COVID-19 Looking ahead
The Company has adopted various measures to prevent Due to COVID-19, the company had operated with a single
the spread of COVID-19. During this pandemic situation, Blast Furnace since Apr'20 and resorted to exports to ensure
RINL has followed all guidelines issued by the Central and cash flows. With the opening up of the economy and pick-
State Governments. up in demand, the second Blast Furnace was restarted in
RINL, as a responsible corporate citizen, contributed Jul'20 and the third Blast Furnace is planned to be restarted
in Oct'20. It is expected that stimulus package announced
6.16 Cr to PM CARES Fund from the CSR budget. RINL
by Govt. of India (GoI) and initiatives towards "Atmanirbhar
employees contributed 2 Cr to PM CARES Fund and
Bharat" would start taking shape and drive consumption of
1 Cr to AP CM Relief Fund.
steel in the coming years. The focus areas for RINL in
All public places of worship, entertainment, sports, these difficult times include:
recreation clubs and gyms were closed and the Plant was
• Ramp up of production from Expansion and
run with limited manpower. Bio-metric Attendance was
Modernisation units to rated capacities
suspended and a total of 100 Thermal scanners were
provided for scanning at entry points in every shift. Hand • Cost reduction, particularly in major raw materials viz.,
Sanitizer and Soaps have been provided and regular Coking Coal and Iron Ore
disinfection has been done in the Plant and Township areas.
• Focus on High End Value Added Steel sales and
RINL supplied food to stranded migrant workers and weaker development of new grades
sections in and around Visakhapatnam as part of Corporate
• Operationalizing long term Capex investments that
Social Responsibility. Preparation of food was outsourced
were already made
to Akshaya Patra Foundation and the distribution was done
voluntarily by employees and their family members along • Operationalising the Iron Ore mines of OMDC
with Satya Sai Seva Samithi Volunteers. • Restructuring of loans with the help of external expert
Corporate Governance engaged
Corporate Governance is given highest priority as the • Asset monetisation to reduce the burden of borrowings
Company strongly believes that a high reputation for Acknowledgement
Integrity and Ethical conduct is an important Corporate
Asset. A separate Report on Corporate Governance along To conclude, on behalf of the Board of Directors, I
with Certificate on Compliances of CG guidelines issued acknowledge that the achievements in the year have been
by DPE and Secretarial Audit report forms part of the made possible only due to the relentless and dedicated
Directors' Report. efforts of the human resources of the Company. I thank all
the Stakeholders, particularly the Ministry of Steel and other
Environment Management Ministries of Govt. of India, the Government of AP, the
Under Waste Management initiatives, utilisation of 90.95% Suppliers (Domestic and Overseas), Customers, Ancillary
was achieved in BF Slag. Further, the utilisation of LD Units, Bankers, the People's Representatives, the District
Slag in Sinter Plant and the utilisation of Lime fines in Sinter Administration and various other agencies for the confidence
Machines-1&2 increased by 20% and 24% respectively and trust bestowed upon the Company and the opportunity
over previous year. Similarly, the utilisation of other given for its continued growth in achieving various milestones
Metallurgical wastes such as Dusts from DE systems & and I also look forward for their continuous support in future.
ESPs, Sludges from Waste Water Treatment Plants and
Mill Scales in Sinter Machines-1&2 increased by 8% over At this critical juncture, would like to place on record the
previous year. Waste water of 744.69 MG was recovered by support extended by all the employees of RINL as well as
treating in Appikonda & Balacheruvu Waste Water Treatment the Board members for smooth functioning of the company
Plants, Ultra Filtration Unit and CO& CCP RO Plant. Thanking you,
Dividend for the year 2019-20 Jai Hind,
Considering the current financial position of the Company,
the Company is not in a position to declare any dividend
Sd/-
for the financial year.
(P K Rath)
Contribution to the Exchequer Chairman
The Company contributed 2,119.53 Crs and 587.91 Crs Dated 30th September, 2020
to the National & State Exchequer respectively in the form Visakhapatnam
of taxes and duties to various government agencies.

2
3
A Glance of Financial Results since inception ( in Crores) Nos

Year
Total

Credit

Capital
Surplus

Benefits
after tax

Turnover
Net Block

Employee
Expenses
Interest &
before tax

consumed
/ Decretion
Wealth Tax
Reserves &
Depreciation

Gross Block

Amortisation
Fixed Assets
on 31st March

Fixed Assets

Stores, R&M,
Profit / (Loss)
Profit / (Loss)

Raw Materials
Employees as

Depreciation &
Power & Other

Gross Income

Other Revenue
Loans / Buyers

Stock(Accretion)
90-91 243 36 279 175 (27) 29 197 192 191 (480) (480) 3506 (480) 3924 3720 248 3472 14433
91-92 772 22 794 402 (70) 54 449 437 509 (988) (988) 3506 (1468) 5476 5031 704 4327 16656
92-93 1185 148 1333 680 (152) 77 340 198 758 (567) (567) 3706 (2035) 3495 6157 1026 5131 17454
93-94 1751 156 1907 875 160 103 340 347 655 (573) (573) 6494 (2608) 3474 7326 1365 5961 17483
94-95 2209 50 2259 1059 (200) 128 415 366 855 (364) (364) 6494 (2972) 3735 8289 1747 6542 17369
95-96 3040 116 3156 1311 (50) 155 430 407 1107 (202) (202) 6494 (3174) 3831 8392 2177 6215 17642
96-97 3135 78 3213 1385 (115) 174 422 430 1163 (247) (247) 6494 (3421) 3735 8548 2819 5729 17478
97-98 3071 97 3168 1405 (118) 210 439 198 1211 (177) (177) 6494 (3598) 2205 8592 3037 5555 17354
98-99 2762 197 2959 1220 318 255 111 361 1151 (456) (456) 6494 (4054) 2243 8615 3148 5467 17400
99-00 2972 154 3126 1394 (95) 272 432 382 1303 (563) (563) 7827 (4617) 2343 8635 3580 5055 17254
00-01 3437 181 3618 1444 (103) 408 445 351 1364 (289) (289) 7827 (4906) 2293 8643 4012 4630 17131
01-02 4081 153 4234 1602 62 375 475 291 1504 (75) (75) 7827 (4981) 1989 8703 4468 4235 17026
02-03 5059 231 5290 1806 281 406 455 186 1635 522 522 7827 (4459) 1186 8731 4903 3828 16894
03-04 6168 209 6377 2050 26 481 476 49 1748 1546 1546 7827 (2913) 37 8710 5338 3372 16755
04-05 8182 286 8468 3020 (310) 490 1006 11 1997 2254 2008 7827 (905) 531 8763 6322 2441 16613
05-06 8491 447 8938 3585 66 572 448 31 2346 1890 1252 7827 347 458 8832 6754 2078 16574
06-07 9151 661 9812 3889 24 741 362 49 2525 2222 1363 7827 1711 917 8876 7085 1790 16401
07-08 10433 904 11337 4280 (343) 1031 488 32 2854 2995 1943 7827 3654 441 8901 7516 1385 16416
08-09 10410 924 11333 5896 (917) 1157 240 88 2842 2026 1335 7827 4593 1008 9006 7750 1256 17225
09-10 10634 758 11392 5535 415 1400 277 78 2439 1248 797 7827 5058 1233 9474 8009 1465 17830
10-11 11517 526 12043 7188 (532) 1273 266 165 2701 982 658 7827 5402 1137 9795 8265 1530 17829
11-12 14461 437 14898 8472 45 1467 345 191 3268 1109 751 7727 5932 2575 10394 8607 1787 18079
12-13 13553 * 558 14021 8099 (304) 1469 187 360 3684 526 353 6347 6131 4900 12588 8799 3790 18072
13-14 13488 * 374 13737 6967 7 1751 271 338 3854 548 366 5740 6401 4943 13616 9083 4533 18371
14-15 11676 * 288 10689 5128 (820) 1918 271 435 3654 104 62 5190 6404 7511 14608 9251 5357 18137
15-16 12271 * 453 10512 4142 1150 1882 366 677 3998 (1702) (1604) 4890 4979 10391 21273 9318 11955 17873
16-17 12706 * 362 12679 6945 (398) 2164 659 768 4231 (1690) (1263) 4890 3680 14206 22935 10007 12928 17838
17-18 16618 * 413 14872 8601 (186) 2885 778 938 3768 (1911) (1369) 4890 2331 16675 27110 10327 16783 17617
18-19 20844 * 501 20839 13730 (958) 2213 1058 1278 3826 (307) 97 4890 2462 19592 30393 11376 19016 17574
19-20 15819 340 16160 11597 (685) 2621 1109 1498 4125 (4288) (3910) 4890 (1618) 21741 31840 12481 19359 17566
* Includes sale of trial run sales 89.83 Crs in 2012-13, 125.29 Crs in 2013-14, 1274.51 Crs in 2014-15, 2211.24 Crs in 2015-16, 388.99 Crs in
2016-17 and in 2017-18 2158.73 Crs, 506.32 Crs in 2018-19,
Note: 1.Amounts upto FY 14-15 are as per IGAAP and from FY 15-16 onwards are as per IND AS .
 Trend of Gross Income
Crs

Note: Figures upto FY 14-15 are as per IGAAP and from FY 15-16 onwards are as per IND AS.

Crs
Trend of Net worth

Note: Figures upto FY 14-15 are as per IGAAP and from FY 15-16 onwards are as per IND AS.

4
5
Crs

Gross Block
Net Block

Note: Figures upto FY 14-15 are as per IGAAP and from FY 15-16 onwards are as per IND AS .
 BREAK UP OF GROSS INCOME : 2019-20

Sale of By
Products &
Others
868 Crs
(5.37%)
Interest Earned
69Crs
(0.43%)
Other Revenue
254 Crs
(1.57%)

Internal
Consumption
17 Crs
(0.11%)

Sale of Iron &

Steel
14952 Crs
(92.52%)

DISTRIBUTION OF GROSS INCOME : 2019-20

Emp.Benefits
2621 Crs
(12.51%)

Power & Fuel

1148
(5.48%)

Finance Cost
1498
(7.15%)
Raw Material
Consumed
11597
(55.36%) Other Expenses
2977
(14.21%)

Depreciation
1109
(5.29%)

6
 FINANCIAL HIGHLIGHTS

S.NO. Particulars 2019 - 20 2018 - 19

A OPERATING RESULTS ( Crs)

Turnover 15819 20844
Turnover (Excl. Trial Run) 15819 20338
Gross Income 16160 20839
Gross Expenditure excl Finance cost 18949 19868
Gross Profit (PBIT) (2789) 971
Profit Before Tax (4288) (307)
Net Profit After Tax (3910) 97

B YEAR END FINANCIAL POSITION ( Crs)

Share Capital 4890 4890
Reserves and Surplus (1618) 2462
Capital Employed 8963 12397
Net Worth 3272 7352
Gross Block 31840 30393
Cumulative Depreciation 12481 11376
Net Block 19359 19016
Inventory-Semi-finished/finished goods 4055 3369

C PROFITABILITY AND OTHER RATIOS

(i) Percentage of
Gross Profit to Sales (17.6) 4.8
Net Profit to Sales (24.7) 0.5
Gross Profit to Net Worth (85.3) 13.2
Net Profit to Net Worth (119.5) 1.3
Gross Profit to Capital Employed (31.1) 7.8
Net Profit to Capital Employed (43.6) 0.8
Gross Profit to Share Capital (57.0) 19.9
Semi/finished goods Inventory to Sales 25.6 16.6

(ii) Ratio of
Current Assets to Current Liabilities 0.5 0.6
Quick Assets to Current Liabilities 0.1 0.2
Sales to Capital Employed 1.8 1.6

7
 DIRECTORS' REPORT
Dear Members, DIVIDEND
On behalf of the Board of Directors of the Company, I No dividend has been proposed for the year 2019-20.
take great pleasure in presenting the 38th Annual Report SHARE CAPITAL
of the Company for the financial year ended 31st March
During the year under review, there were no changes
2020, together with the Audited Financial Statements,
in the equity share capital and authorized capital.
the Statutory Auditors' Report, the Secretarial Audit Report
and the Comments on the Accounts by the Comptroller MOU PERFORMANCE
and Auditor General of India.
Though challenging targets were taken through
BUSINESS PERFORMANCE Memorandum of Understanding (MoU) for FY 2019-
The year was the most challenging year in the history 20 between RINL and Ministry of Steel, Govt.of India
of the company. The demand was muted due to (MoS-GoI), the performance was severely impacted
slowdown in construction and auto sector, the two main by unfavourable market conditions and MoU rating
of 'Fair' only could be obtained.
sectors for long steel products of the company. Steep
fall in prices and inventory buildup forced the company PRODUCTION PERFORMANCE 2019-20
to adopt optimum production model, shutting down one Though the production volumes were lower,
of the three Blast Furnaces during the period Sep'19 significant improvement was achieved in techno-
to Jan'20. As a result, the company could achieve economic parameters, to register best ever
Liquid Steel production of 4.983 Mt and Sales Turnover performance. The major parameters are as follows:
of 15,819 Cr only, which are 9.7% and 24.1% lower
than the previous year. Due to drastic fall in the prices Best Yearly Performance was registered in
Technical Parameters in the following items;
of Long Steel products, the Net Sales Realization was
lower by 13%, in comparison to the previous year. (Unit: '000t)
There was no commensurate reduction in the prices %
of raw materials. As a result, the reduction in variable Item Unit Quantity improvement
cost was limited to about 7%, in spite of improvement over CPLY
in technical economic parameters. With this, your BF Coke Rate Kg/tHM 417 9
company's EBITDA (negative) is 1498.50 Crs as PCI Rate Kg/tHM 97 64
against EBITDA of 1802.91 Crs in the previous year.
Specific Water
Your company incurred net loss (PAT) of 3910.17 consumption Cum/tCS 2.27 2
Crs as compared to a net profit (PAT) of 96.71 Crs in
the previous year. During the year, the production of Value Added Steels
increased to 76.5% from 73.2% in the previous year.
The Comparative position of major financial parameters Production of Cast rounds in 430mm size was
is given here under:
commenced to cater the flange industry requirements
( in Crores) in A105 and A105R grade and LWR 34 grade for
Particulars 2019-20 2018-19 production of LOCO wheel in Forged Wheel Plant.
Turnover including Trial run sales 15819.24 20884.38 Blast Furnace-1, which was put down (without
Earning before finance charges, salamander tapping) since 6th Sep'19 was restarted
Tax, Depreciation/ Amortisation on 27th Jan'20 with in house expertise (without help of
any OEM / Foriegn experts) and brought back to
(EBITDA) (1498.50) 1802.91
normalcy in operation by second half of Feb'20.
Less: Finance Charges 1498.23 1277.61
COST REDUCTION MEASURES
Profit before Depreciation/
While continuing with the commitment towards cost
Amortisation (PBTDA) (2996.73) 525.30
reduction in all the areas, the company gave special
Less: Depreciation 1108.81 1057.59 thrust for major areas of Coal and Iron Ore. With 64%
Profit before exceptional items (4105.54) (532.29) improvement in Pulverised Coal Injection in place of
Less: Exceptional items 181.97 (225.40) Blast Furnace Coke and optimization of Coal Blend
Net Profit before Taxation (PBT) (4287.51) (306.89) with cheaper alternatives, the company could achieve
Provision for taxation (377.34) (403.60) significant reduction in cost. In the area of Iron Ore,
the company started to blend Iron Ore Slimes in Iron
Profit/(Loss) after Taxation (PAT) (3910.17) 96.71
Ore Fines, for the first time.
8
During the year, the blending was to an extent of 8.58%. The improvement achieved in various cost reduction
areas is as follows:
Techno Economic Parameters Unit 2019-20 2018-19 Improvement
over last year
Inward Rake Retention Time Hrs 9.98 13.74 27%
Power Consumption in Sinter Machine-3 Kwh/tCS 64.07 67.70 5%
Usage of slime in Iron ore fines % 8.58 - New
Pulverised Coal Injection rate Kg/tHM 97.2 59.2 64%
Air Blast in Blast Furnaces Cum/tHM 1249 1270 2%
Aluminium consumption in SMS-1 Kg/tCS 1.66 1.87 11%
Reduction of Off-grade Heats in SMS-1 t/month 20.92 105.42 80%
Ferro Alloys Consumption in SMS-2 Kg/tCS 17.02 17.52 3%
Gross flux consumption in SMS-2 Kg/tCS 88.0 96.4 9%
Power generation through waste heat recovery MW 32.92 31.47 5%
Re Cycling of Waste Material
Metallurgical waste utilisation in Sinter Machines-1&2 Kg/tCS 70.2 65.1 8%
LD Slag utilisation in Sinter Plant Kg/tCS 18.7 15.6 20%
Calcined Lime screenings utilisation in
Sinter Machines-1&2 Kg/tCS 22.7 18.3 24%
Recycling of Maintenance Scrap t/month 817 812 1%
MARKETING PERFORMANCE year due to various government initiatives and
stabilization in economic activity. The sales volume
Indian Steel Scenario:
registered in the third quarter was 1.38 Mt, with a rise
The GDP growth in Construction and Manufacturing of 30% over CPLY.
sectors was limited to 1.30% and 0.03% respectively
Though the fourth quarter also started with growth in
against 6.10% and 5.70% during the previous year. As
volumes, some signs of deceleration was observed in
per core sector reports of the government, the
global markets in Feb'20 and the exports reduced.
production of Cement registered a negative growth of
Though the uptick in domestic markets continued, the
(-) 0.90%, against 13.30% in the previous year. Similarly,
year-end sales were severely impacted by the COVID-
the Automobile production registered a negative growth
19 prevention steps initiated by the government with
of (-) 14.73% against 6.26% in the previous year.
the announcement of lockdown from 21st March' 2020.
RINL Marketing: The sales volume in Mar'20 was limited to 0.254 Mt,
against 0.582 Mt achieved in Mar'19. The sales volume
Since Construction and Automobile sectors are the 2
registered in the fourth quarter was limited to 9.86 Mt,
(Two) main sectors for the Long Products of the
a steep decline of 36% over CPLY.
company, the company faced significant challenge on
the marketing front. The prices of TMT Rebar witnessed The sales volume of saleable steel stood at 4.278 Mt
a steep fall. The prices in Sep'19 were about 25% lower against 4.911 Mt of CPLY, with a negative growth of
than CPLY. The sale in Andhra Region, the key market 13%. The sales turnover was 24% lower than CPLY.
for the company, was also impacted due to non- Quarter Wise Sales Performance during the year
availability of sand in Andhra Pradesh. With build-up of is brought out below:
inventory and steep fall in realisations, the company
was forced to adopt optimum production model, by
shutting down one of the three Blast Furnaces during
the period Sep'19 to Jan'20.
Sales Performance
During the first half of the year, sales was limited to
1.91 Mt, a decline of 18% over CPLY.The sales
momentum started up picking in the third quarter of the
9
 • Developed Boron Steel for high strength low alloy
RINL Market Share:
steel applications in cold heading industry.
RINL continued to be the market leader in Bars & Rods, • Successful in devolving CO2 grade steel wire rods
with a share of 7.49% in Bars & Rods, though it reduced for MIG welding.
from 9.13% in the previous year. This drop in market • To meet the industry demand, Non Destructive
share is primarily attributable to the reduced intake in Testing (NDT) facility installed and started supplying
Andhra Region due to local issues. high end value added products with NDT for critical
applications.
• Customized high carbon grades were developed as
per wire rod industry market demand.
Revenue Maximization and Cost Reduction
Measures:
• The company tries to improve and maintain a
significant share of sales in Andhra, Southern and
Eastern regions due to freight advantage. During
the year, the share of sales of TMT Rebar in these
Regions increased to 77.7% from 74.6% in the
previous year. Facility of direct sales from Plant is
increasingly utilized to augment sales which is
further controlling expenses incurred towards freight
& handling at Stockyards.
• Introduction of Key Account Management (KAM)
process to bring thrust to sale to the key customers
and harnessing their potential to increase sales to
the high stake customer.
• With a view to enhance the Customer satisfaction and
strengthening channel network, RINL has embarked
upon the "e-Retail Sales" and "Ready to Use" steel
which will also reduce the distribution cost to RINL.
Sales to Major Projects:
• RINL supplied steel to various major projects in India,
viz., Nagpur Metro Project as one of the main
suppliers of TMT Rebars. Phase-I of the project has
been completed and commissioned in this year, this
Product Development / Product Enhancement: phase includes Double Decker Flyover of about 3.4
Apart from construction and infrastructure sector, where KMs length. All India Institute of Medical Science,
nearly half of finished steel products were consumed, Kalyani, Nadia, West Bengal. Supplied more than
RINL is also focusing on widening the range of products 2000 MT of TMT Rebars to both the contractors,
and enriching the product mix in line with the M/s K M V Projects and M/s Ahluwalia Contracts, of
requirement of customers. Presently RINL is catering All India Institute of Medical Science, Kalyani, Nadia,
to various segments like Forging, Wire Drawing, Rolling, West Bengal.
Power Transmission, Boiler, Spring Steels and Tools
Steels with an aim to improve value for the customers.
With Secondary Metallurgy facilities installed in SMS-2
as part of the Expansion, the capability to produce High
End Steel has increased further. During the year,
initiatives taken for Product Development / Product
Enhancement are as below:
• Forge quality Cast rounds in 430mm size produced
to cater the flange industry requirements.
Nagpur Metro

10
 Nagpur Metro

Operation of New Stock Yard at Faridabad

Administrative Building, AIIMs Kalyani

Hostel Building, AIIMS, Kalyani

Improvement in Logistics:
• The Central Despatch Yard developed within the plant
premises was put into operation with the commencement
of Road dispatches on 30 th March' 2019 and Rail
dispatches from 12th October' 2019.
Stock Yard functioning at the premises of Inland
• A company owned retail outlet-cum-service center is in
Waterways Authority of India (IWAI), Pandu,
operation outside the plant premises for catering the
Guwahati
requirement of local customers.
• Stock Yard and Offices have been finalized in Guwahati
and functioning from the premises of Inland Waterways
Authority of India (IWAI), Pandu, Guwahati. The
premises is equipped with private Railway Tracks and
Covered warehouse also.

Retail Outlet at Balacheruvu (BC) Gate at

Operation of New Stock Yard at Faridabad Pedagantyada, Visakhapatnam

11
MATERIALS MANAGEMENT The Vendor Base of the Company increased to 3,704
by the addition of 134 new vendors during the year.
The Company has taken various initiatives in the
Out of these, 1,761 are MSEs Vendors and 213 are
direction of input cost reduction, reduction in ocean
Local MSEs. The procurement from MSEs has
freight, securitization and diversification of critical raw
increased to 31.65 % of total procurement of goods
materials like coal and iron ore.
and services (excluding the goods and services such
The requirement of coking coal is met through Long as Iron Ore, Coking Coal and Turnkey Contracts for
Term Agreement (LTA) with overseas suppliers from which exemption has been granted) from 28.65%
different geographical locations like Australia, USA, during the previous year.
Canada, Mozambique and Indonesia. In order to
reduce the uncertainties and the costs, continuous The Company has been putting efforts to increase the
efforts are made to increase the supplier base. In the procurement from MSEs and registered itself on MSME
process, industrial trial shipment of a new Pulverised SAMBANDH Portal. Out of 15 grievances filed during
Coal Injection (PCI) coal from Australia was the year, 6 were closed and 5 were converted into
successfully tested during the year and Long Term court cases. The replies uploaded in the balance 4
Agreement was entered into. Based on sample are under evaluation. The Company also registered
analysis, one Soft Coking Coal from Australia and two itself on Trade Receivable e-Discounting System
PCI Coals from Australia and Indonesia have qualified (TReDS) platform. All the MSME vendors registered
for Industrial trial shipments. with RINL were requested to register themselves on
TReDS platform so as to process transactions on the
In order to meet shortfall in receipt of Iron Ore from
platform. During the year, 16 MSME vendors
NMDC, the Company procured about 0.431 Mt from
registered themselves on TReDS and 16.34 Cr bills
M/s Orissa Mining Corporation, about 0.154 Mt from
were discounted on the TReDS platform.
Karnataka mines and about 0.393 Mt from other
sources, through auction / tender. In Aug'19, the FINANCE
Company made a new beginning by using Iron Ore
Due to adverse market conditions, the cash flow
Slime in the Sinter making process. A total quantity of
position of the company became critical. However,
0.518 Mt Iron Ore Slime was procured during the year
the position was managed through appropriate fund
from NMDC.
management. The company availed Short term fully
In line with the Government initiative for encouraging hedged Foreign Currency borrowings (Buyers Credit)
E-Tendering and E-Procurement, the Company has and Working Capital Demand Loans (WCDL) at
processed more than 98.79% of its tenders through competitive interest rates and also availed moratorium
SAP/ERP. The Company has been conducting reverse announced by RBI for repayment of loans amid
auction in all the cases of estimated value of Rs 2 Lakhs COVID-19.
and further, the Company has been making above
procurements through GeM Portal of Government of As a result of continuous follow up with the Income
India. During the year, a total of 65 orders of about Rs Tax Department, Company could receive the refunds
1.53 Crores were placed through the portal, as against relating to old Income Tax Assessments. Refund from
a total of 07 orders of about Rs 0.06 Cr during previous GST Departments is also received towards Input Tax
year. With a view to increase the procurement through Credit on Coal compensation cess paid. Further, the
GeM, the list of items and services to be added / modified company availed benefit of deferment of GST
is being discussed with GeM officials on a regular basis. payments to ease the liquidity position of the company.

The Company is one of the first organizations to Also, Company has availed liberalized scheme of
implement Integrity Pact (IP) w.e.f April'2007, in Reserve Bank of India for "Set off" of Export
procurement activities. During the year, 97.51% of the Receivables against Import Payables for the first time.
contracts by value are covered under IP, which is in
line with Standard Operating Procedure (SOP) of
Central Vigilance Commission.

12
PROJECTS
The focus during the year was on putting on stream
the various balancing facilities required for ramp up of
production to 7.3 Mtpa. The projects completed during
the year include Additional Water Storage Reservoir
(Second Reservoir), LPG Storage Plant-2, Retail Outlet
near the Plant, Rail Despatches from Central Dispatch
Yard (CDY), Twin Ladle Heating Furnace, Revamp of
Stove-4 of Blast Furnace-1 and Round casting in
Caster-4 at SMS-2.
LPG Storage Plant -2
The following projects are under advanced stage of
commissioning and were planned for commissioning
in the first quarter of 2020-21. However due to national
lockdown in the wake of COVID-19 pandemic, the
progress has got impacted and are now scheduled
for commissioning in the second quarter of 2020-21.
Coke Oven Battery-5 (COB # 5) : The heating up of
battery started on 24th July'2019 and under firing on
11th December'2019.
Forged Wheel Plant (FWP): The Hot trials in forging
line has been completed and around 450 wheels @ LPG Storage Plant -2
60 wheels/day have been produced. Fine tuning of
the process and works pertaining to the finishing lines
are in progress for commencement of commercial
production.
Madharam Dolomite Mine (MDM): All major works
like Civil, Structural, Mechanical and Electrical
equipment erection completed. The works related to
commissioning of the unit are in progress.

Forging Line at Forged Wheel Plant (FWP)

Additional Water Storage Reservoir (Second Reservoir) Wheel Conveyor at FWP

13
 Heating up of Chimney COB#5 Coke Dry Cooling Plant-5

High quality 430 mm rounds casting in Caster-4 at Caster -4

SMS-2 required for Forged Wheel Plant (FWP)

Rail Dispatch at Central Dispatch Yard (CDY) RAIL Dispatch at CDY

14
 Twin Ladle Heating Furnace (TLHF) Lighting up of Stove - 4 at Blast Furnace

CAPEX FULFILLMENT • Revamp Sales & Operations Planning

The capital expenditure during the year was 1416 • Expand marketing network with focus on rural
markets
Crore against the plan of 1400 Crore, a fulfillment of
101%. A structured review mechanism was put in place where
in, weekly reviews with senior leaders and initiative
PROJECT PARIVARTAN owners were conducted to drive various initiatives,
RINL launched “Project Parivartan” in the year with identify next steps and debottleneck challenges.
focus to deliver performance improvement across The progress of the project was regularly shared with
revenue and cost levers over the course of 14 months the employees by the top management during the
by developing a clear portfolio of initiatives to drive communication sessions and teams with outstanding
improvements in a time bound manner. contribution were recognised periodically.
Teams from various work streams across the
organisation were actively involved in the project and
a series of workshops were conducted to identify
improvement areas across the company.17 KPIs (Key
Performance Indicators) were identified for driving
improvements during the year and initiatives were
developed with around 300 milestones till March 2020.
Some of the initiatives taken up under Project
Parivartan include:
• Optimise coal blend for cost optimisation
• Improve Pulverised Coal Injection (PCI)
• Increase absolute hit rate in SMS-1 and SMS-2
BF Team receiving Parivartan Award

CMD addressing the employees during the communication session

15
STRATEGIC INITIATIVES Safety Council, Mumbai. A Special Safety Program
on Road Safety was organised in collaboration with
MOU is signed with M/s KIOCL for setting up a Pellet
RTA Department, Visakhapatnam, Govt. of Andhra
Plant Project at Visakhapatnam with capacity of 2.0
Pradesh for 240 employees.
Mtpa. Formation of Joint Venture is under process.
Night Surveillance by a team of Safety Officers was
RESEARCH & DEVELOPMENT
started for additional inspection of vulnerable areas
R&D in the company is directed towards innovation, of the Plant.Special Drive for Conveyor Belts guards
improvement of processes, development of products inspection was carried out in CO&CCP, RMHP, SP,
and reduction & recycle of energy and waste. R&D is BF & SMS-1.Internal Safety Audit was conducted by
presently focusing on present and future requirements Safety officers of Safety Engineering Department at
of the plant to enhance competitiveness and Jaggayyapeta Limestone Mines and Madharam
sustainability. The projects are taken up internally as Dolomite Mines. Special Safety Awareness classes
well as with external research organizations under were also conducted for the employees and contract
collaborative research. workers of mines.Re-Certification audit of OSHAS-
The projects in the process development area include 18001 - 2007 was conducted by M/s. BVPIL. More
Utilisation of Ladle Furnace slag and Mill Scale than 340 no.s of fire mock drills were organized in
Briquettes, Weathering of steel slag, Agglomeration several departments and all the deficiencies and other
of Manganese Ore Fines, De-phosphorization during observations made during the drills were complied
Steelmaking, Usage of H3BO3 as fluxing material in with.
Secondary Steel Making, Modification of Hammers for ENVIRONMENT MANAGEMENT
Flux Crusher of Sinter Plant, Improvement in control
Under Waste Management initiatives, utilisation of
of charging emissions in Coke Oven Battery 4 and
90.95% was achieved in BF Slag. Further, the
Ladle Thickness Measurement System. In the product
utilisation of LD Slag in Sinter Plant and the utilisation
development area, the projects include Development
of Lime fines in Sinter Machines-1&2 increased by 20%
of Boron steel grades and CO2 Welding steel grades.
and 24% respectively over previous year. Similarly,
R&D Centre additional facilities which include modern the utilisation of other Metallurgical wastes such as
laboratory and workshop facilities is coming up Dusts from DE systems & ESPs, Sludges from Waste
adjacent to the present R&D Centre.Five technical Water Treatment Plants and Mill Scales in Sinter
papers/ posters were presented at four different Machines-1&2 increased by 8% over previous year.
national and international seminars.Three international Waste water of 744.69 MG was recovered by treating
journal papers were published in three international in Appikonda & Balacheruvu Waste Water Treatment
journals.Four new research projects were taken up in Plants, Ultra Filtration Unit and CO& CCP RO Plant.
the current year and seventeen projects of previous
Environmental Projects implemented during the year
year were continued.
include evacuation of pond ash for filling of low lying
SAFETY areas. Supply of dry fly ash free of cost was continued
With focus on safety,"Zero Accident" was achieved in and around 70,709 tonnes of dry fly ash could be
40 departments.Plant Level Mock Drills were disposed off during the year. As part of Green Power
conducted at GCP-2, Blast Furnace area and ASU-5 initiatives, aproject of 25K Wp Solar Roof Top Net
of Utilities Department, which were witnessed by Joint metering Systems at Visakha Vimala Vidyalaya,
Chief Inspector of Factories.A Two-Day training Pedagantyada through New & Renewable Development
program on "Safety in LPG Installation" was conducted Corporation of Andhra Pradesh (NREDCAP) was
for Executives in the grade JO to E-6 by M/s National initiated during the year.

16
The company has been awarded "National Energy HUMAN RESOURCES & INDUSTRIAL RELATIONS
Conservation Award-2019" first prize for the year 2018- The Industrial Relations scenario was by and large
19 by Bureau of Energy Efficiency, Ministry of Power peaceful. The registered trade unions of the regular
and "National Energy Leader" Award for consecutively work force and registered trade unions representing
winning" Excellent Energy Efficient unit award" for the contract labour and the Association representing
year 2017, 2018 & 2019 during 20 th National Executives of the organization, have contributed
significantly for nurturing employee friendly work
Competition for Excellence in Energy Management-
culture across the organization in maintaining
2019.
harmonious IR climate. In so far as manpower status
INFORMATION TECHNOLOGY is concerned, the total work force stands at 17,566 as
on 31.03.2020. Out of which 2,888 (16.44%) belongs
To improve traceability of finished products, Online Tag to Scheduled Caste and 1,291 (7.35%) belongs to
printing in Rolling Mills, vScan App to scan the QR Scheduled Tribes.
Codes on the tags through Hand Held Terminals (HHT)
A Memorandum of Understanding was signed between
and TraQR App for scanning QR codes of products in
the representatives of RINL Management and the
branch stock yards were developed with this besides Steel Plant Employees Union (CITU) - Recognized
helping in loading/shipping of right material, heat union on 11.05.2019 on various issues pertaining to
number, section or size or grade of a bundle could promotion, extension of facilities and certain wage
also be traced. related benefits.

Biometric Attendance Recording System and Leave DISCLOSURE UNDER SEXUAL HARASSMENT OF
Management System were implemented in some of WOMEN AT WORK PLACE
the Departments and Branches. Tracking of physical Pursuant to the enactment and enforcement of the
DAK through e-Office was implemented. Departmental Sexual Harassment of Women at Work Place
portals were developed for Blast Furnace, SMS-2 and (Prevention, Prohibition and Redressal) Act 2013, Your
CSM. Company had formulated a Policy and constituted an
Internal Complaint Committee (ICC).All employees
Using advanced technologies of Analytics, Corporate (Permanent, contractual, temporary, trainees) are
Business Dashboard, Enterprise Bill Tracking System covered under this policy. The sexual harassment
and Arrival Line Forecast Assessment for rakes were complaints received and disposed-off during the year,
developed. Similarly, Artificial Intelligence /Machine pending at the beginning and end of the year were
Learning technology was adopted in iron and steel 'NIL'.
making process to predict final composition and grade WOMEN EMPOWERMENT
of steel. It helped in improved stacking of blooms. Your Company has always taken utmost care in
Machine Learning based models were also developed establishing gender equity and evolved as an Employer
to predict Si content in Hot metal by using raw material providing equal opportunity. With every passing year
quality and operating parameters as input. RINL App the strength of women employees in the company is
was developed, which is a single interface to view on rise. On 31.03.2020, the strength of 566 women
business and plant process activities which integrate employees in the organization is 3.22% of total
employees (3.1% last).
with other underlying applications that provide real time
information. Your Company facilitates the women workforce to be
closely associated with the local forum of Women in
RINL corporate website 'www.vizagsteel.com' has Public Sector (WIPS) constituted under the aegis of
been certified by M/s STQC as 'Guidelines for Indian Standard Conference of Public Enterprises (SCOPE).
Government Websites' (GIGW) compliant. The Cell has been associating in a number of activities
organized for the development of women employees
in which 245 women employees participated.
17
Women's team of RINL Lean Quality Circle team with all legal matters including Arbitrations and Court
"SPARK" from QA&TD was awarded "PAR Cases. The total number of court cases including
EXCELLENCE" at 33rd National Convention on Quality arbitration matters remained at the level of 639. The
concepts (NCQC-2019) held at IIT BHU, Varanasi in Company got favorable verdicts in 66 (Sixty Six) cases
December, 2019. Their Case study titled "Analysis of out of the total 101 cases disposed of. In the Arbitration
Zinc by Atomic Absorption Spectrometry" focused on with large stakes initiated against M/s Air Liquid India
safety and health of employees by reducing their Holding (ALIH), in ASP BOO Contract, all necessary
exposure towards harmful chemicals. steps have been taken to pursue the case effectively
and protect the interests of your Company. A total of
05 (Five) Summary Trial cases (STC) relating to
violation of the provisions of the Factories Act got
closed. The Company got favorable awards in 03
(three) Arbitration cases out of 8 Arbitration Cases.
Updation of court cases in the website of Ministry of
Law & Justice i.e., Legal Information Management &
Briefing System (LIMBS) has been done regularly.
WELFARE
Apart from fulfilling the statutory welfare measures,
your Company has been implementing various non-
GRIEVANCE REDRESSAL MECHANISM statutory Schemes for its employees to take care of
Your Company has a robust Grievance Handling the social security needs. To name a few, Employees'
System comprising both Formal & Informal Grievance Family Benefit Scheme, Superannuation Benefit
Redressal Mechanism separately for Executives and Scheme and Group Medi-claim Insurance Scheme are
Non-Executives. With the philosophy of the in place as part of Social Security net for the employees
organisation, RINL has been adopting proactive and their families.
approach on every employee related issue and An amount of 9.55 crores was spent towards Group
attempting to redress the grievances of the employees Medi-claim Insurance Scheme for the benefit of
through this mechanism. separated employees and their spouses. This stands
THE PERSONS WITH DISABILITIES (EQUAL as testimony to RINL's commitment towards the
OPPORTUNITIES, PROTECTION OF RIGHTS AND welfare of employees even after their separation.Your
FULL PARTICIPATION) ACT, 1995 company has spent an amount of 15.7 crores
towards providing educational facilities to the wards
Your Company has employed 224 persons with PWD of the employees.RINL-CARE- a process for
- Differently Abled Persons since the statute came into preventive medical care for acute diseases for
operation. Out of those, 11 (Eleven) persons were employees and spouses is launched.
selected on merit.
RO Plants in all the 17 canteens have been installed
Accessibility Audit in public buildings inside the plant in order to ensure the supply of wholesome drinking
and outside the plant premises was conducted in order water to the employees, contract labourers and
to improve and provide the facilities such as provision outsiders who visit the Plant.In order to provide clean
of Ramp Ways, Customised Toilets, Auditory Signals and required hygiene, maintenance of 40 Toilet blocks
inside elevators and provision of Wheel Chair at the inside the Plant has been offloaded to M/s Sulabh
Reception for the convenience of the differently abled International, who has established its name for proper
persons. maintenance, upkeep of toilets. Proposal is on anvil to
LEGAL AFFAIRS offload remaining 840 Toilet Blocks.
Utmost care has been taken by your Company to deal

18
IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY Out of 12 schools, 10 were from Visakhapatnam District
and 2 were from Vizianagaram District.
Your Company has always given significant thrust
towards effective implementation of Official Language Vizag Steel Walkathon was organized on 16th February
Policy and proper compliances of the Rules. 2020, with participation of more than 2000 Children
from Ten Schools from Ukkunagaram. Ms. P V Sindhu,
During the year, 150 employees were trained under
Olympic Silver Medalist and Brand Ambassador,
`Hindi Prabodh/Praveen/Pragya courses' in 2 sessions,
RINL flagged off the Walkathon in R K Beach,
1,234 employees were trained in `Hindi Workshops'
Visakhapatnam.
and 266 employees were trained to work on computers
in Hindi through `Unicode' conducted at Headquarter RINL teams have performed extremely well in Inter-
and out station offices. For the first time, 349 employees Steel Championship 2019-20 organised under the
were trained in special workshop held on usage of aegis of Steel Plants Sports Board (SPSB). They were
Hindi in E-Office. adjudged Winners in Inter - Steel Cricket Championship
and Inter - Steel Badminton Championship and
The efforts of the Company were recognized at
Runners up in Inter - Steel Chess Championship and
National level and various awards were conferred,
Inter - Steel Kabaddi Championship.
which include First Prize of "Rajbhasha Keerti
Puraskhar" for the FY 2018-19 in category of Best and THE RIGHT TO INFORMATION ACT, 2005
Effective Implementer of Hindi by Department of Official Your Company is one of the first CPSEs to launch
Language, MoHA, GoI. online RTI platform, a leap forward in promoting
SPORTS Transparency and Accountability. This has immensely
facilitated the Citizens to file their applications within a
With a view to providing thrust on developing conducive
fraction of seconds. All out efforts have been made to
sports - ecosystem in RINL particular and Andhra
provide information to citizens under the Statute.
Pradesh (AP) in general by providing adequate
A total of 632 requests and 48 appeals were disposed
facilities for grooming the budding youth, your
of during this period. All the cases before Central
Company has taken a number of initiatives in terms of
Information Commission (CIC) were disposed off with
infrastructure, the training through Coaches, organizing
no adverse comments on the Company.
various sports events at frequent intervals.
MEDICAL & HEALTH SERVICES
A few of them have participated in the National and
International sports events and have brought Your Company has been providing specialized medical
accolades for RINL as well as A.P.State. Shri NPK and health care services to its employees and their
Naidu, AGM (MM) has won Silver Medal in the Yonex eligible dependent family members and other identified
BWF World Sr. Championship held at Poland whereas stake holders through a well-equipped 160 bedded
Shri BVSK Lingeswar Rao won Bronze Medal. Multi Speciality Hospital (VSGH-Visakha Steel General
Hospital), Occupational Health & Safety Research
During the year, Annual Summer Coaching camp was
Centre (OHSRC), two First Aid centers inside the plant
conducted in thirteen disciplines. Over 1200 children
premises and three Primary Health Centers (PHCs)
participated in the camp under the guidance of 39
located at Pedagantyada Rehabilitation Colony
coaches.Run for Unity in connection with Rashtriya
(Visakhapatnam), Captive Mines situated at
Ekta Diwas (National Unity Day) was organised to
Madharam (Telangana) and Jaggayyapeta (Andhra
celebrate the birth anniversary of Sardar Vallabhbhai
Pradesh).
Patel, with the participation of five hundred children
and employees of RINL. In order to provide tertiary care facilities 15 visiting
consultants are being invited regularly to VSGH on
Sports for Employees with disability was organised with
week days pertaining to the specializations like
the participation of more than Hundred Employees.
Cardiology, Nephrology, Gastroenterologist, Urology,
Sports for special children was conducted with the
Neuro Medicine, Neurosurgery and Surgical Oncology
participation of more than 250 children from 12 schools .
etc.To provide super specialty medical services to the

19
employees and their dependent family members Skill Council (IISSSC) for organizing skill training to
around 18 tertiary care hospitals were empanelled employees. Various Recognition of Prior Learning
which include Premier Homi Bhabha Cancer Hospital (RPL) skill modules were conducted for a total of 199
& Research Centre (HBCHRC). employees during the year.Your Company entered into
an MOU with IISSSC for organizing RPL 4.0 for
VSGH in its continuous endeavor to bring its services
Contractual Workers. During the year, 172 Contractual
closer to the employees has now introduced a
Workers were assessed and certified.
registration of slot booking system and a tele-
consultation facility.Your Company organized
prestigious 41 st All India Steel Medical Officers
Conference (AISMOC) in February 2020. In
compliance to the Govt. of India's Skill India Initiative,
VSGH introduced "Proficiency Training" by which 54
paramedics in various disciplines will be given training
for two years by paying them stipend and knowledge
enhancement allowance.
CAPACITY BUILDING THROUGH LEARNING AND
DEVELOPMENT
During the year, thrust was given for updating
employees' knowledge and skills by conducting various Shri Sushim Banerjee CEO, IISSC exchanged the
Technology related courses as well as in Safety, Health MOUs with Shri R.V Rao, ED (HR), RINL in the
and Computer related courses. A total of 34,361 presence of Shri.K C Das, D (P)-RINL.
employees were trained accounting for 12.91 man
As part of Academia and Industry Interface, a total of
days /employee / year.
5,660 students from various engineering colleges have
For grooming the new entrants like Management under gone industrial training. During the year, 3,027
Trainees, Junior Trainees & Operator cum Mechanic people including students from various schools,
Trainees, to align with Company's requirements, engineering colleges, and employees' of other
various modules including Induction, Plant & Process organizations visited the Steel Museum, which was set
up for the benefit of general public and students to
familiarization, Safety Training were conducted for 665
educate about Iron & Steel technologies.
employees. With the help of National Institute of
Technologies (NITs), General Management Programs Your Company had entered into an MOU with Andhra
on Competency building were conducted for University, with a special dispensation clause to
Management Trainees. consider admissions into PhD program (Executive
Category) to a maximum of two officials of Top
During the year, your Company in association with IIM- Management of RINL directly.
Kozhikode, NITs (Warangal & Rourkela) and IIPM-
RECRUITMENT
Kansbahal organised exclusive and customised 5 day
training programs on various topics for executives, like During the Year, total 695 candidates were recruited
Technological Advances & process parameters in steel (Executives-137 and Non-Executives-558) which
includes 37 Women Candidates, 143 Displaced
making, Competency building, Operation &
Persons and 57 Ex-Servicemen.
Maintenance management of equipment, Leadership
& Strategic Management. In total 629 Executives were As on 31.03.2020, the number of Displaced Persons
benefited with the above programs. provided with employment in RINL stands at 8008.
As part of Skill India initiative of GOI (Govt.of India), • To avoid normalization across the session of
RINL entered in to an MOU (Memorandum of each discipline, Online Test was organized in
Understanding) with National Skill Development single session for each discipline to recruit Junior
Corporation (NSDC) and Indian Iron & Steel Sector
Trainee & OCM Trainees in 2019.

20
• RINL had started a recruitment process to recruit Plant and Mines forward, your Company has
candidates on Tenure Basis for Medical undertaken a number of projects / activities and
Department and Mines Professionals. programs as part of its CSR initiatives. Pursuant to
the enactment of the Companies Act, 2013, your
AWARDS & ACCOLADES
Company has formulated a CSR & Sustainability Policy
Three (3) QC teams participated in International in line with the applicable provisions of the said statute
Convention on Quality Control (ICQCC) held at Tokyo, and Department of Public Enterprises (DPE)
Japan. Two teams bagged the 'GOLD' awards and Guidelines and has been according due emphasis on
one team bagged 'SILVER' award. 13 teams from RINL 'Inclusive Growth and Sustainability'. Board Sub
participated in 33rd National Convention on Quality Committee on CSR, headed by an Independent
Concept (NCQC) held at Varanasi. 11 Teams were Director in terms of Section 135 of the Companies Act,
awarded with Par Excellence Awards, 1 team won 2013, has been regularly monitoring the
Excellence and 1 team won Distinguished Awards. implementation of these CSR activities. The Annual
Report on Corporate Social Responsibility Activities
pursuant to Rule 9 of the Companies (Corporate Social
Responsibility Policy) Rules, 2014 forms part of this
Annual Report.
Under CSR Programme RINL donated a Mobile
Medical Unit (MMU) named as “SANJEEVANI” to M/s
Homi Bhabha Cancer Hospital, Aganumpudi,
Visakhapatnam (Tata Cancer Institute) for the benefit
of Cancer Patients in the peripheral villages.

SWACHHA BHARAT - SWACHHA VIDYALAYA ABHIYAN

QC teams participated in International Convention on The concept of "Swachh Bharat" has been
Quality Control Circle (ICQCC) held at Tokyo, Japan institutionalized across the organization. "Safai
Pakhwada" was organized throughout the year
covering all Departments in a sustainable manner. The
Swachh Bharat Activities were undertaken inside the
Plant premises as well as in the surrounding
communities. The primary objective is to strengthen
the existing infrastructure and maintain it through
cleanliness drives.

A team from ES&F department bagged the Class

"B" VRP and received the award on 17th
September, 2019 at Vigyan Bhawan, New Delhi.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

CMD RINL Shri PK Rath administering Swachhata
Taking your Company's commitment to socio Pledge on 2nd October Gandhi Jayanti during
economic transformation of people in and around the Swachhata Hi Seva campaign at RINL.

21
 Collection of Plastic waste by the students and
teachers of Visakha Vimala Vidyalaya on 26 th Sep'19.
CMD RINL, Directors and Employees participating in
ShramDaan during Swachhata Hi Sewa campaign

Under Swachh Vidyalaya, your Company had

undertaken "Bala Swachhata Jagruthi" initiative for
creating awareness on importance of cleanliness &
personal hygiene to the school children. In addition,
your Company is also providing financial assistance
for maintenance of toilets constructed by RINL under
Swachh Vidyalaya. A Special initiative called "Mera Dus
Minute" was implemented in schools during CSR visits ‘Mera Dus Minute’ -10 minutes intensive cleaning
'The Power of Team Work' is demonstrated by activity in schools.
symmetrically organizing themselves while carrying out
cleaning activity. The team of students and teachers
participated actively and removed 'plastic' and non-
plastic (bio-degradable) waste' separately from their
playground in Just Ten Minutes and disposed the same.

Swachhata campaign on "Plastic Waste

Management" and stoppage of Single Use Plastic
at Visakha Vimala Vidyalaya where 1750 students
participated in the campaign Plantation by the students of Arunodaya Special School

22
 Bala Swachatha Jagruti - Awareness on Personal Hygiene at Schools
A special event "Swachh Bharath - Beach Cleaning
Campaign" was organized during RINL Foundation
Day Celebrations where more than 2000 school
children along with the CMD, Directors and Vizag Steel
Brand Ambassador Miss. PV Sindhu participated and
carried out cleaning along the Visakhapatnam Beach
and removed plastic waste in the event.

‘Say No to Single Use Plastic’ campaign during walkathon

creating awareness among the citizens and at the end, plastic
waste was collected from the beach and disposed of.
Special Swachhata campaigns viz. "Swachhata Hi
Sewa", "Swachh Bharat Pakhwada" etc. were observed
with great enthusiasm and participation. To show case
the contribution of the Company towards Swachhta,
an exclusive intranet portal christened as "Swachh
Bharat @ RINL" was developed and updated regularly
with a view to create greater awareness and inspiration
Swachh Bharath - Beach Cleaning Campaign along
with CMD, Directors and Vizag Steel Brand Ambassador on Swachhta across the Organization. "Swachhata
Miss. PV Sindhu participated in the event Puraskar" awards were instituted to instil competition
in implementing Swachh Bharat Abhiyan in their
departments and to encourage the innovative work
during the Swachhata Campaigns.

"Swachh Bharath" campaign during RINL Formation

Day Celebrations on 16th February 2020 at RK Beach CMD RINL awarding "Swachhata Puraskar" to the
after Walkathon Best Performing Departments

23
MEASURES TAKEN TO CONTAIN THE SPREAD OF d) As a part of community kitchen service, the
NOVEL CORONA VIRUS (COVID-19): company also distributed food packets to the
migrant workers and the needy.
Employee care & wellness is one of the prime areas
of focus at your Company. Many initiatives were taken e) Personal hygiene products like hand sanitizers and
proactively by the management to safeguard the health soaps and face masks were distributed among
of each and every employee including the contract communities in and around Visakhapatnam.
workers after onset of the pandemic caused due to f) Employees were encouraged to be a part of
novel Corona virus (COVID -19). Some of the major various social initiatives aimed at preventing the
initiatives taken in this regard are: spread of novel Corona virus (COVID-19) and also
i) All the employees and their family members in providing relief to victims of the unprecedented
Ukkunagaram Township were sensitized about crisis caused due to the pandemic.
the spread of novel Corona virus (COVID-19) and Your Company's Management team is committed to
precautions to be taken to protect themselves and the cause of containing the spread of novel Corona
their other family members from the virus. virus (COVID-19).
ii) Bio metric Attendance System was suspended CITIZEN CHARTER
with effect from 09-03-2020.
Your Company is totally committed to excellence in
iii) The operations of the plant were carried out with public service delivery through good governance by a
bare minimum manpower by following the social laid down process of identifying citizens, commitment
distancing norms and the rest of the workforce to them in meeting their expectations, and
was allowed to Work from Home. communication to them of key policies in order to make
iv) All the safety precautions such as thermal the service delivery process more effective. The Citizen
scanning of the employees, regular disinfection Charter is made available on the Company's website
of workplaces, providing sanitisers and soaps for in both English & Hindi versions.
employees at their workplace etc. were VIGILANCE ACTIVITIES
meticulously followed across the Company.
RINL-Vigilance has been focusing on preventive and
v) A nodal officer was appointed for authentic proactive Vigilance activities to facilitate a conducive
communication of additional preventive measures environment for enabling people to work with integrity,
to be taken to contain the spread of Novel Corona impartiality and efficiency, in a fair and transparent
Virus. manner, upholding highest ethical standards to
vi) All the guidelines issued by Government of India enhance reputation and create value for the
from time to time to contain the spread of COVID organization.
-19 were followed in letter and spirit. In its endeavor to thrust upon preventive and pro-
As a responsible Corporate Citizen, RINL also active vigilance, various activities were carried out like
contributed its best to prevent the spread of COVID- conducting System Studies on the Procedures being
19 in the country by: followed in the Company, Intensive examination of High
Value Contracts and Purchase Orders, Examination
a) Contributing an amount of 6.16 crores from its
of Audit Paras generated through Internal Audits,
CSR fund to PM CARES Fund.
keeping Surveillance and conducting Surprise Checks
b) Two Helpdesks have been set up at your company in vulnerable areas, Random scrutiny of bills etc.
Hospital for giving appropriate guidance to those Ignorance cannot be an excuse for occurrence of
in doubt. misconducts, procedural violations, malpractices etc
and the same were explained to the employees at
c) An exclusive Fever Clinic was setup in the
various fora. Assistance was provided to the concerned
Company hospital to screen and treat patients with
in processing of disciplinary cases emanating from
fever, cold and cough since 21st Mar' 2020.
vigilance recommendations. The Department was
24
instrumental in identifying new areas/sections where Secretary is annexed herewith and forms part of the
potential of IT can be leveraged to improve Directors' Report vide Annexure-IV.
Transparency and Fairness.
ANNUAL REPORT ON CORPORATE SOCIAL
To enhance awareness among employees, Vigilance RESPONSIBILITY
Awareness Sessions were held. A total of 13 Sessions
Your Company has Board approved CSR &
involving 167 Employees including 90 MTTs of VSP
Sustainability Policy and a Board Sub Committee on
were conducted during 2019-20. Program on concept
CSR&S headed by an Independent Director in terms
of "Integrity Club" in schools was organized for the
of Section 135 of the Companies Act, 2013. The
schools in Ukkunagaram. All ten schools of
Annual Report on Corporate Social Responsibility
Ukkunagaram participated.A "Grama Sabha" was
(CSR) activities pursuant to Rule 9 of the Companies
conducted in Gorlivanipalem, Parawada Mandal of
(Corporate Social Responsibility Policy) Rules, 2014
Visakhapatnam District and a Vigilance Awareness
is enclosed at Annexure -V.
session was conducted for the Villagers. Around 110
Villagers participated. EXTRACT OF ANNUAL RETURN
VIGIL MECHANISM Pursuant to Section 92 (3) of the Companies Act, 2013
and Rule 12 (1) of the Companies (Management and
Your Companyhas put in place a Vigil Mechanism
Administration) Rules, 2014, the extract of Annual
comprising of Whistle Blower Policy and is available
Return in Form No. MGT-9 for the F.Y. ended on 31st
on the Company's website at link
March, 2020, which has been duly reviewed and
https://www.vizagsteel.com/insiderinl/Vigil%20 certified by a Practicing Company Secretary, is
mechanism% 20 Policy .pdf. enclosed at Annexure-VI and also made available
MANAGEMENT DISCUSSION AND ANALYSIS on the website of the company (www.vizagsteel.com).
REPORT NUMBER OF BOARD MEETINGS
The Management Discussion and Analysis Report During the year, Ten (10) Board Meetings were held
covering the Performance and Outlook of the Company and the details of which are provided in the Corporate
is enclosed at Annexure-I. Governance Report which forms part of this report.
CORPORATE GOVERNANCE REPORT AUDIT COMMITTEE
Your Company strives to attain highest standards of The details of composition of the Audit Committee are
Corporate Governance. In line with the Guidelines provided in Corporate Governance Report which
issued by Department of Public Enterprises, which have forms part of this report. All the recommendations
become mandatory from May 2010, a separate section made by Audit Committee were accepted by the
on Corporate Governance is annexed and forms part Board.
of the Directors' Report vide Annexure-II.
DIRECTORS' RESPONSIBILITY STATEMENT UNDER
CERTIFICATION BY THE CEO& CFO SECTION 134 (5) OF COMPANIES ACT,2013
Certificate attested by the CEO& CFO is enclosed, Pursuant to the requirements under Section 134(3)(c)
forming part of the Corporate Governance Report & Section 134 (5) of the Companies Act, 2013, with
along with a declaration signed by CMD regarding respect to Director's Responsibility Statement,
Code of Conduct for Members of the Board and Senior Directors of the Company confirm that:
Management vide Annexure-III.
a) in the preparation of the Annual Accounts, the
CERTIFICATE ON COMPLIANCE OF GUIDELINES ON applicable Accounting Standards had been
CORPORATE GOVERNANCE followed along with proper explanation relating
A Certificate on Compliance of Guidelines on to material departures;
Corporate Governance issued by DPE in May 2010, b) the Directors had selected such accounting
for the year 2019-20 given by a practicing Company policies and applied them consistently and made

25
 judgments and estimates that are reasonable and PARTICULARS OF LOANS, GUARANTEES AND
prudent so as to give a true and fair view of the INVESTMENTS UNDER SECTION 186 OF THE
state of affairs of the Company at the end of the COMPANIES ACT, 2013
financial year and of the profit or loss of the The above particulars are disclosed in the note no. 6,
Company for that period; 7A,7B, 9 & 14 of the notes to accounts annexed to the
c) the Directors had taken proper and sufficient care Financial Statements and Investment details are
for the maintenance of adequate accounting disclosed in note no. 5 of the notes to accounts
records in accordance with the provisions of this annexed to the Financial Statements.
Act for safeguarding the assets of the Company RELATED PARTY TRANSACTIONS
and for preventing and detecting fraud and other
irregularities; Particulars of Contracts under Sub-Section 1 of Section
188 (Related Party Transactions) of The Companies
d) the Directors had prepared the Annual Accounts Act, 2013 are as follows:
on a "going concern" basis;
The transactions with related parties are disclosed in
e) not applicable being an unlisted company; and note no. 40 of notes to accounts annexed to the
f) the Directors had devised proper systems to Financial Statements.
ensure compliance with the provisions of all STATEMENT OF THE COMPANY'S AFFAIRS
applicable laws and that such systems were
adequate and operating effectively. The details with regard to the Company's Affairs during
the year have been elaborated in the preceding paras
STATEMENT OF DECLARATION OF INDEPENDENCE of this Report.
BY INDEPENDENT DIRECTORS UNDER SUB-
SECTION 7 OF SECTION 149 OF THE COMPANIES TRANSFER TO RESERVES
ACT, 2013 No transfer to reserves during the period under review.
Your Company has obtained declarations from each REPORT ON CONSERVATION OF ENERGY,
of the Independent Directors to the effect that they TECHNOLOGY ABSORPTION, FOREIGN
meet the criteria of Independence as provided under EXCHANGE EARNINGS/OUTGO Etc.
Sub-Section 6 of Section 149 of the Companies Act,
Information required in accordance with the provisions
2013.
of Section 134 (3) (m) of Companies Act, 2013 read
COMPANY'S POLICY ON DIRECTORS' APPOINTMENT with Rule 8 of the Companies (Accounts) Rules, 2014
AND REMUNERATION regarding Energy Conservation, Technology
Your Company has constituted the Nomination and Absorption and Foreign Exchange earnings/outgo
Remuneration Committee as required under Section during the year are furnished in the Annexure-VII.
178 (1) of the Companies Act, 2013. Being a Central ENTERPRISE RISK MANAGEMENT POLICY
Public Sector Enterprise (CPSE) Directors'
Your Company has a Board approved Enterprise Risk
appointment and remuneration including criteria for
Management Policy and the same has been put on
determining qualifications, positive attributes,
Company's Website. In terms of the policy, there is
independence of a director and other matters provided
separate implementation agency for identifying the Risk
under Sub-Section 3 of Section 178 of the Companies
profiles across the organization covering both Works
Act, 2013 are made / fixed by the Govt.of India. The
and Non Works Departments by an In-house team and
Appointment and Remuneration Policy is also
monitoring of the same is done through the Concerned
exempted vide MCA notification No. G.S.R. 463(E)
Heads of the Departments and also reviewed by the
dated 5th June, 2015 for Govt. Companies.
Audit Committee.

26
ANNUAL EVALUATION OF PERFORMANCE OF THE Particulars of Employees: Your Company being a
BOARD, COMMITTEES AND INDIVIDUAL Government Company, is exempted from the
DIRECTORS provisions of Section 197 of the Companies Act, 2013
Ministry of Corporate Affairs (MCA) vide notification and rules made thereunder vide Ministry of Corporate
No.G.S.R. 463 (E) dated 5th June, 2015 &G.S.R. 584 Affairs (MCA) Notification dated 05.06.2015.
(E) dated 5th July, 2017 have exempted the above for Subsidiaries or Joint Ventures: None of the
Government Companies. Subsidiaries or Joint Venture of the Company have
DETAILS OF DIRECTORS OR KEY MANAGERIAL ceased to be Subsidiaries or Joint Ventures during
PERSONNEL (KMP) WHO WERE APPOINTED OR the year.
HAVE CEASED TO BE DIRECTOR(S) DURING THE Material Changes and Commitments: There are
YEAR AND TILL THE DATE OF REPORT:
no material changes and commitments affecting the
Directors: financial position of the company which have occurred
Appointments: between the end of F.Y. of the company to which the
financial statements relates (31st March 2020) and the
Name of the Director Appointed w.e.f date of the report except for the impact arising out of
Shri Deb Kalyan Mohanty 01.08.2019 COVID-19, which is detailed elsewhere in this Report.
Shri K K Ghosh 05.09.2019 Significant and Material Orders: There are no
Shri A K Saxena 17.10.2019 significant and material orders passed by the
Regulators or Courts or Tribunals impacting the going
Shri Rohit Yadav 22.01.2020 concern status and Company's operations in future
Dr. Sita Sinha 24.01.2020 during the year.
Shri V K Singh 17.03.2020 Deposits: Your Company has not invited/accepted
any deposits falling within the purview of provisions of
Cessation:
the Companies Act, 2013 during the year.
Name of the Director Upto
INTERNAL CONTROLS & INTERNAL FINANCIAL
Shri P Raychaudhury 31.07.2019 CONTROLS
Shri Sunil Gupta 12.11.2019 Your Company has a proper, adequate and efficient
Shri S K Mishra 26.11.2019 system of Internal control commensurate with the size
and nature of its business for achieving the objectives
Shri Saraswati Prasad 22.01.2020
of the Company by ensuring efficiency in operations,
Shri Rohit Yadav 17.03.2020 protection of resources, accuracy and promptness in
financial reporting and compliance with the laid down
OTHER DISCLOSURES:
policies and procedures along with relevant Laws and
Financials: The Financial summary or highlights are regulations. This Internal Control System is an integral
indicated separately in the report in the previous part of the Company's Corporate Governance Policy.
pages. Significant features include formulation of Policies,
Guidelines, Procedures, Delegation of Powers,
ESOPS/Sweat Equity Shares: Your Company has
established IT & ERP Systems, compliance with
not issued equity shares with differential rights/Sweat
specific Laws and other Laws, Budgetary Control,
equity shares/Employee Stock Options.
proper functioning of Audit Committee, Committee of
No change in the nature of business: There is no Independent Directors, CSR, and Compliance with
change in the nature of business of the Company and Accounting Standards etc.
it continues to do business in Iron & Steel including
By Products there from.

27
Internal Audit: Company for the year is annexed and forms part of
the Directors' Report vide Annexure-VIII.
In the Company, there is a separate Internal Audit
Department. The Internal Audit is conducted by a cross The Secretarial Auditors as well as the Auditor who
functional team of experienced Chartered Accountants, has given Corporate Governance Compliance
Cost & Management Accountants, System Analysts Certificate had observed that the requisite number of
and Engineers with diversified experience. The Internal independent directors were not appointed on the Board
Audit department focuses on Transparency in the of the Company as contemplated in the Guidelines on
Systems and proper/adequate internal control Corporate Governance for CPSEs issued by
mechanisms. Annual Audit Program and the Department of Public Enterprises (DPE).The
frequency/coverage of audits is being approved by the appointment of independent directors on the Board is
Audit Committee at the beginning of the financial year. made by the Government of India. The Company has
The Internal Audit Team examines and evaluates already requested to the Ministry of Steel (MoS),
various systems, procedures and policies of the Govt.of India for the appointment of requisite number
Company and suggests useful improvements along of independent directors.
with corrective measures to be taken by the concerned STATUTORY AUDITORS
process owners. The reports containing significant
M/s M. Bhaskara Rao & Co, Chartered Accountants,
Audit findings are submitted to the Audit Committee of
Visakhapatnam were appointed as Statutory Auditors
the Company for periodical review. During the FY 2019-
of the Company for the year 2019-20 by the
20, Internal Audit Department raised 707 Audit paras
Comptroller and Auditor General of India (C&AG). The
and recovered an amount of 13.38 Crores. Based
Statutory Auditors' Report on the Accounts of the
on Internal Audit observations, Process owners take
Company for the financial year ended 31st March, 2020
corrective and preventive actions for strengthening the
is enclosed to the Directors' Report.
controls and Internal Audit regularly suggests
improvements in ERP Systems for better operational/ MONITORING MECHANISM FOR SUBSIDIARY
financial controls. COMPANIES & CONSOLIDATION OF ACCOUNTS

SECRETARIAL AUDITORS The Subsidiary companies of the Company are

managed by their respective Boards which includes
Pursuant to the provisions of Section 204 of the
Nominee Directors of the Company in the best
Companies Act, 2013 and the Companies
interests of their stakeholders. Your Company
(Appointment and Remuneration of Managerial
monitors performance of Subsidiary companies, inter
Personnel) Rules, 2014, the Company has appointed
alia, by placing Minutes of Board Meetings of the
M/s.Vinod Kothari & Co, Practising Company
subsidiary companies before the Company's Board
Secretaries, Kolkata as Secretarial Auditors of the
periodically. The Consolidated Accounts for the year,
Company for the financial year 2019-20. There are
incorporating the accounts of the Subsidiary
no qualifications but observation was made by the
Companies are enclosed to this report. The Statutory
Secretarial Auditors which is self-explanatory. The
Auditors' Report on the consolidated financial
Secretarial Audit Report, confirming compliance to the
statements is enclosed.The Statement containing
provisions of Companies Act, 2013 and Rules made
salient features of the financial statement of
there-under and the provisions contained in
Subsidiaries /Joint ventures Pursuant to first proviso
Memorandum and Articles of Association of the
to sub-section (3) of section 129 read with rule 5 of

28
Companies (Accounts) Rules, 2014 is also enclosed also applicable to the Company and accordingly the
in Form AoC-1. Cost Accounting Records are being maintained by the

EXPLANATIONS OR COMMENTS BY THE BOARD Company and Cost Audit reports are being submitted

ON QUALIFICATIONS Etc., MADE BY THE AUDITOR by the Cost Auditor.

There are no qualifications on the standalone accounts COST AUDITOR

of the Company. M/s. K G Goyal & Associates, Cost Accountants, New

JOINT VENTURE MECHANISM Delhi have been appointed as Cost Auditor, under the
Companies Act, 2013 for the year 2019-20. The Cost
The Company is one of the CPSEs as a Joint Venture
Audit Report for the year 2019-20 is under finalization
partner in M/s International Coal Ventures (P) Limited
and will be filed with Cost Audit Branch, Ministry of
which was incorporated for acquiring Overseas Coal
Corporate Affairs within the stipulated time.
assets.
ACKNOWLEDGEMENT
Your Company has also formed Joint Ventures, M/s
RINLMOIL Ferro Alloys Private Limited, a 50:50 Joint The Board of Directors of your Company take this

Venture Company with MOIL for the purpose of setting opportunity to express and acknowledge with deep

up of a Ferro Alloys Unit at Bobbili in Andhra Pradesh appreciation, the valuable guidance, assistance,

and RINL Powergrid TLT Private Limited (RPTPL), a cooperation and support received from the

50:50 Joint Venture company with Power Grid Government of India, especially the Ministry of Steel

Corporation of India Limited (POWERGRID). A note and the Govt. of Andhra Pradesh and wish to place

was given on Subsidiaries and Joint Ventures on record the cooperation and assistance extended

elsewhere in this Annual Report. by the Financial Institutions, the Company's Valued
Customers & Suppliers, Railways, Bankers, Auditors,
C&AG AUDIT
Contracting agencies, Business Associates,
The Comptroller and Auditor General of India (C&AG) Consultants, other officials of Ministries of Union Govt.
has issued 'Nil' comments on the financial statements and various other Ministries of the State Govt., the
of the Company for the Thirteenth year in succession. local District Administration and Law & Order
The copies of the letters of C&AG on Standalone & authorities during the year under review. The Board
Consolidated Financial Statements (CFS) are enclosed of Directors also wish to place on record its
to this Report. appreciation for the sincere efforts and hard work put

COST AUDIT in by all the employees of the Company, Trade Unions

and Executive Association during the year.
Ministry of Corporate Affairs (MCA), Govt. of India,vide
notification no. GSR 425(E) dtd. 30th June, 2014 and For and on behalf of the Board of Directors

GSR 01(E) dtd. 31st December, 2014 and G.S.R 695(E) Sd/-
th
Dated 14 July, 2016 has notified the Companies (Cost
(P K Rath)
Records and Audit) Rules, 2014 applicable to certain
companies which are engaged in the production of Chairman-cum-Managing Director

goods or providing services. Such companies are DIN:07968249

required to keep cost records and get its cost records Place: Visakhapatnam
audited in accordance with these rules. The rules are Dated: 04th September, 2020

29
 Annexure - I to Directors' Report

MANAGEMENT DISCUSSION AND ANALYSIS REPORT (MDA) FOR THE YEAR 2019-20
1.0 INDUSTRY STRUCTURE AND DEVELOPMENTS
1.1 Developments in World Steel:
Globally growth in steel demand slowed down in 2019 to 3.4% from a level of 4.6% in 2018 as trade tensions
and geo-political issues weighed on investment and trade as per World Steel Association (WSA).Globally,
construction sector was subdued during the year and automotive sector experienced contraction.
1.2 Indian Economy and Steel Scenario:
Growth rate of Indian economy softened to a level of 4.2% in 2019-20 as against a growth of 6.1% in 2018-
19. Growth in consumption of steel in the country in 2019-20 was down to 1.3% as against 7.5% in 2018-19.
Sectors like construction and manufacturing that drive steel consumption experienced steep decline in growth
in 2019-20 to 1.3% and 0.03% respectively. This caused severe sluggishness in steel markets in 2019-20.

Source: Ministry of Statistics and Programme Implementation (MOSPI) Press Release dated 29.05.2020
As a result, the trend of recovery in steel markets in 2018-19 did not sustain in 2019-20 as prices of long
products witnessed steep fall of more than 10,000/t during the period Sep'19-Sep'20. The reduction in
prices of Imported Coking Coal and Iron Ore was not commensurate.

• Ex works price of 12 mm Rebar in Mumbai - Steel Mint

30
Though the prices improved in Q4, the trend was short lived Portfolio of the company, there was build-up of
as the global markets started feeling the impact of spread
inventory, forcing the company to adopt optimum
of COVID-19 even before the imposition of National
production model. By operating with 2 Blast Furnaces,
Lockdown in the country from 24.03.2020.
during the period Sep-19 to Jan'20, the company
As a result of the unforeseen slump in steel prices and
could also avoid purchase of BF Coke from external
sluggishness in market place, margins of steel producers
were under pressure during the year 2019-20. sources, which became un-remunerative at the prices
prevailing. Due to lower realisations and lower
2.0 STRENGTHS AND WEAKNESSES
production, the company incurred a loss of 3,910
The few strengths and weakness of the company Cr. Details in respect of the above item have already
(not an exhaustive list) are placed below: been covered in the Directors' Report which may,
Strengths Weaknesses kindly be referred to.
• Shore based • Lack of Captive
location. 5.0 OUTLOOK FOR THE COMPANY IN 2020-21
Mines for Iron Ore
• Well established and Coal. Steel producers were severely impacted during Q1
marketing and • Single Location
customer network in as Govt. of India (GoI) introduced stringent measures
Company and only
India. Long Products, to curb the spread of COVID-19 in the country. As per
• Availability of Land. exposed to cyclic JPC Report for May '20, Production and Consumption
• Image as quality markets.
producer. of steel in Apr-May 2020 period contracted by 65%
• Committed and 68% respectively. Company has adopted an
manpower.
optimized model of production to liquidate inventory
• Strong
environmental and and contain expenditure. In the face of low levels of
Social commitments. domestic demand, RINL resorted to exports to ensure
cash flows.
3.0 OPPORTUNITIES AND THREATS
Opportunities Threats Going forward, in the immediate term the recovery is
• Export of products to expected to pick up as compared to lower base of
• Increased
developing competition. Apr' 20 and May'20 but it would be still lower than
Economies. • Projected demand 2019-20 (WSA projects contraction of 18% in steel
• Availability of new slump in 2020 as
facilities. demand in the country in 2020). The focus areas for
country copes with
• Enhanced COVID-19 RINL in these difficult times include:
production potential. pandemic.
• Secondary • Operationalizing long term Capex investments
metallurgy for High • Liquidity crisis.
that were already made.
End Value Added
Steels. • Optimised production model to meet the market
• Government requirement
Stimulus for
economic revival in • Ramp up production.
response to COVID
19 situation. • Development of new grades.

4.0 SEGMENT WISE OR PRODUCT-WISE • Focus on High End Value Added Steel sales.
PERFORMANCE • Improving sales in high NSR region.
Due to slowdown in Construction and Automobile • Focus on exports.
sectors, the two main sectors for the Long Product
• Commercial production from Forged Wheel Plant.

31
• Minimising impact of bought out BF coke by 8.2 Financial Performance
improving PCI usage and commissioning of
Particulars F.Y 2019-20 F.Y 2018-19 % Inc /(Dec)
Battery-5 over previous
( in Crs) ( in Crs) year
In the longer run i.e. starting from Q4 2020-21, it is
Revenue From
expected that stimulus package announced by Govt. Operation 15,920.46 20,492.03 (22)
of India (GoI) and initiatives towards "Atmanirbhar Sales Turnover
(Including
Bharat" would start taking shape and drive Trial Run) 15,819.24 20,844.38 (24)
consumption of steel. PBDIT Before
Exceptional Items (1,498.50) 1,802.91 (183)
6.0 RISKS & CONCERNS PBDIT After
Exceptional Items (1,680.47) 2,028.31 (183)
Uncertainty prevailing in the market due to COVID19 Profit before Tax
(PBT) before
pandemic is a cause of concern. exceptional items (4,105.54) (532.29) (671)
Exceptional items 181.97 (225.40) (181)
Prices of raw material prices guided by increased levels Profit before
of production in China in subdued domestic market Tax (PBT) (4,287.51) (306.89) (1,297)
Profit After
conditions may challenge margins of Indian steel
Tax (PAT) (3,910.17) 96.71 (4,143)
players, where increased competition can be expected
8.3 ANALYSIS OF THE FINANCIAL
with higher unused capacities. This may impact a player
PERFORMANCE OF THE COMPANY
like RINL more adversely as it has no captive source
for major raw materials. 8.3.1 Revenue from Operations
F.Y 2019-20 F.Y 2018-19 % Inc /(Dec)
Also, highly optimized level of operational regime Particulars over previous
( in Crs) ( in Crs) year
needs to be maintained to ensure healthy cash flows Total Sales
and overcome a situation of cash crunch. Turnover 15,819.24 20,844.38 (24)
7.0 INTERNAL CONTROL SYSTEMS AND THEIR Sale of trial run
ADEQUACY production
included above - 506.32
Details in respect of the above item have already been Sales turnover
covered in the Directors' Report which may kindly be excluding trial
referred to. run production 15,819.24 20,338.06 (22)
Other operating
8.0 DISCUSSION ON FINANCIAL PERFORMANCE
revenue 101.22 153.97 (34)
WITH RESPECT TO OPERATIONAL PERFORMANCE
Revenue from
8.1 Financial Overview operation 15,920.46 20,492.03 (22)

Due to slowdown in Construction and Automobile 8.3.2 Other Income

sectors, the Sales Volume was lower by 13% and Net % Inc /(Dec)
F.Y 2019-20 F.Y 2018-19
Sales Realization was also lower by 13% compared to Particulars over previous
( in Crs) ( in Crs)
the previous year. As a result, the Company registered year
Interest Earned 68.75 88.61 (22)
a sales turnover of 15,819 Crores with a fall of 24%
in value over the previous year. Other Non-
operating Income 170.33 258.03 (34)
Dividend - 0.04 (100)
Total 239.08 346.68 (31)

32
8.3.3 Expenditure (Excluding Trial Run) 8.3.4 Contribution to Exchequer
% Inc /(Dec) The Company contributed 2,119.53 Crs and
F.Y 2019-20 F.Y 2018-19 587.91 Crs to the National & State Exchequer
Particulars over previous
( in Crs) ( in Crs) respectively in the form of taxes and duties to
year
Cost of
various government agencies.
8.3.5 Borrowings
materials
% Inc /(Dec)
F.Y 2019-20 F.Y 2018-19
consumed 11,597.33 13,730.25 (15.53) Particulars over previous
( in Crs) ( in Crs)
year
Changes in
Secured Loans 16,951.17 14,975.63 13
inventories of
Unsecured Loans 4,789.73 4,615.95 4
semi-finished / Total Loans
Finished goods (685.36) (958.44) (28.49) (Long & Short Term) 21,740.90 19,591.58 11
Employees'

benefits 2,620.66 2,438.28 7.48 8.3.6 Property, Plant and Equipment

% Inc/(Dec)
Finance Costs 1,498.23 1,277.61 17.27 F.Y 2019-20 F.Y 2018-19
Particulars over previous
( in Crs) ( in Crs)
Depreciation & year
Net Block
Amortisation 1,108.81 1,057.59 4.84
Tangible 19,357.09 19,013.64 2
Other
Intangible 1.42 2.71 (48)
Expenses 4,125.41 3,825.71 7.83
Capital Work-in
Total 20,265.08 21,371.00 (5.17) -Progress 3,737.91 3,853.75 (3)

Analysis of Expenditure for the F.Y 2019-20 (incl. Trial Run)

33
8.3.7 Non-Current Asset & Non-Current Liabilities 8.3.8 Current Assets, Current Liabilities
% Inc/(Dec) % Inc(Dec)
F.Y 2019-20 F.Y 2018-19 F.Y2019-20 F.Y 2018-19
Particulars over previous over
( in Crs) ( in Crs) Particulars
year ( in Crs) ( in Crs) previous
year
Non-Current Assets CURRENT ASSETS
Inventories
Financial Assets
Semi-Finished/
Investments 737.50 741.49 (1) Finished goods 4,054.57 3,369.21 20
Raw materials 2,064.53 2,978.56 (31)
Loans 74.93 115.36 (35) Stores & Spares 911.81 1,141.34 (20)
Total Inventories 7,030.91 7,489.11 (6)
Other financial Financial Assets
Trade Receivables
assets 23.38 24.14 (3)
Gross receivables 637.83 1,156.42 (45)
Deferred Tax Less: Provision for
Trade receivables 26.60 26.04 2
Assets (Net) 1,584.25 1,173.53 35 Net Receivables 611.23 1,130.38 (46)
Cash & Bank balances 18.37 121.43 (85)
Other Non-
Other Financial assets 667.98 556.63 20
Current Assets 82.87 79.48 4 Other tax assets (net) - -
Other Current Assets 791.96 899.66 (12)
Total Non- Total Current Assets 9,120.45 10,197.21 (11)
CURRENT LIABILITIES
Current Assets 2,502.93 2,134.00 17
Financial liabilities
Non-Current Liabilities Borrowings 11,367.43 9,721.02 17
Trade payables 3,497.45 2,556.44 37
Financial Liabilities Other financial liabilities 3,978.48 3,807.87 4
Provisions 820.38 639.31 28
Borrowings 9,759.77 9,309.26 5 Other current liabilities 459.69 652.58 (30)
Government Grants -
Other Financial Deferred - PPE 6.18 0.37 1570
Total Current
Liabilities 163.71 96.38 70 Liabilities &
Provisions 20,129.61 17,377.59 16
Provisions 1,267.49 1,052.47 20

Other Non- 8.3.9 Initiatives taken by the Company:

Current Liabilities 7.76 8.12 (4)
Optimizing Operations: Considering the lower market
Government demand for steel, Hot Metal production was optimized
by ramping up production from Blast Furnace-2 & Blast
Grants -
Furnace-3 after shutting down one Blast Furnace
Deferred - PPE 119.67 5.21 2197 (during 6 th Sep'19 - 26 th Jan'20) and obtained
Total Non- advantage in Techno Economic parameters, in addition
to inventory liquidation and avoidance purchased coke.
Current
Improvement in major techno-economic indices
Liabilities 11,318.40 10,471.44 8 during Two BF operation period (Sep'19-Jan'20) when

34
compared to Three BF operation period (Apr'19- 4) Substitution with Cheaper Raw Materials:
Aug'19) is as detailed below: Considering the need to reduce the cost of Iron
April’19- Sep’19- Ore, a new initiative for blending of Iron Ore Slimes
Unit Aug’19 Jan’20 with Iron Ore Fines was started, which worked to
Parameters
(Three BF (Two BF 8.6% in the year.
operations)operations)
5) Others: The improvement obtained during
BF Productivity t/day/cum 1.71 1.80
2019-20 w.r.t. CPLY are as under:
Total Fuel Rate kg/tHM 540 538
PCI kg/tHM 77 112 Techno Economic Parameters Unit %
Coke Rate Improve
(incl. Nut Coke Rate) kg/tHM 464 426 ment
Specific Heat Sized Ore Preparation t/day 6
consumption Mcal/tHM 497 484 Sp. Power consumption- M/c3 Kwh/TCS 5
Power Generation Air Blast consumption Cum/t HM 2
from Waste Heat Gross flux consumption - SMS-1 kg/tCS 3
Recovery(GETS+TRT) MW 8.85 9.81 Aluminium consumption - SMS-1 Kg/tCS 11
Number of Off grade heats - SMS-1 t/month 80
l Cost Reduction Initiatives: The Company pursued
Rejected Heats - SMS-1 No. of heats 64
various cost reduction initiatives and the achievements
Defective Bloom - SMS-2 % 32
include: Ferro Alloys consumption- SMS-2 Kg/tCS 3
1) Leveraging Technology: Pulverised Coal Injection Gross flux consumption - SMS-2 kg/t CS 8
(PCI) registered yearly best value of 97 kg/tHM, with Sp. Heat consumption of Shaft Kilns Mcal/ t of
an improvement of 64% over the previous year. Gross Flux 4

2) Benchmarking: In the direction of achieving global %

benchmarks, improvement of 2% was achieved in Re Cycling of Waste Material Unit Improve
ment
Specific Water Consumption over previous year.
Met waste consumption -M/c-1&2 Kg/tCS 8
3) Maximization of Power Generation from LD Slag consumption - M/C-1, 2&3 Kg/tCS 20
Waste Energy: Power generation from Waste Lime screenings- M/c-1&2 Kg/tCS 24
Heat Recovery increased to an average of 33 MW Used Refractory in DF bay t/month 29
in the year from 31 MW in the previous year. Recovery of bag filter dust in CRMP t/month 12
9.0 MATERIAL DEVELOPMENTS IN HUMAN RESOURCES, INDUSTRIAL RELATIONS FRONT INCLUDING
NUMBER OF PEOPLE EMPLOYED
Details in respect of the above item have already been covered in the Directors' Report.
10.0 ENVIRONMENTAL PROTECTION AND CONSERVATION,TECHNOLOGICAL CONSERVATION, RESEARCH
AND DEVELOPMENT, RENEWABLE ENERGY DEVELOPMENTS, FOREIGN EXCHANGE CONSERVATION:
Details in respect of the above item have already been covered in the Directors' Report.
11.0 CORPORATE SOCIAL RESPONSIBILITY
Details in respect of the above item have already been covered in the Directors' Report.
12.0 CAUTIONARY STATEMENT
Statements / Data which do not relate to the Company and are used / made in this report are from sources
which are considered reliable and Company cannot be held responsible for its authenticity. Further Statement
in the Management Discussion and Analysis, describing the Company's objectives, projections and estimates
are forward looking statements and progressive within the meaning of applicable Laws and Regulations. Actual
results may vary from those expressed or implied, depending upon economic conditions, Government Policies
and other incidental factors.

35
 Annexure - II to Directors’ Report

REPORT ON CORPORATE GOVERNANCE

1.0 COMPANY’S PHILOSOPHY putting in place appropriate systems, procedures and
Internal Control Mechanisms. It recognizes that each
Corporate Governance at RINL is a continuous journey
Member of the Board owes his/her first duty for
in achieving its goals and the Company strongly
protecting and furthering the interests of the Company
believes that a high reputation for Integrity and Ethical
and the Company confirms the compliance of the
conduct is an important Corporate Asset. It assures
guidelines issued by DPE on Corporate Governance
the Employees, Customers, Vendors, Regulators,
and the details of which are given below:
Community neighbors and Shareholders that the
Company will deal and take care of them honestly and 2.0 BOARD OF DIRECTORS
fairly thereby everyone would benefit from being a part
2.1 Composition of Board
of the Company that has built reputation over the years
for honorable and principled actions. The philosophy of RINL follows DPE Guidelines relating to the compliance
the Company in relation to Corporate Governance is to with the conditions of Corporate Governance. As on
ensure Transparency, Accountability, Fairness, 31st March, 2020, the total number of Board of directors
Integrity, Disclosures and Reporting that conforms fully was Ten (10) comprising of Chairman-cum-Managing
to the Laws, Regulations, Guidelines, etc. and to Director (CMD), Five (5) Whole time Functional
promote ethical conduct throughout the organization. Directors, Two (2) Part-time Official Directors (i.e
The Company is committed in conforming to the highest Government Nominee Directors) and Two (2) Part-time
standards of Corporate Governance in the Country by Non-Official Directors (i.e Independent Directors).

The Details of the Board of Directors as on 31st March, 2020 were as follows:
Functional Directors
1) Shri P K Rath Chairman - cum - Managing Director
2) Shri K. C. Das Director (Personnel)
3) Shri V V Venu Gopal Rao Director (Finance)
4) Shri D K Mohanty Director (Commercial)
5) Shri K K Ghosh Director (Projects)
6) Shri A K Saxena Director (Operations)
Part - time Official Directors (i.e Government Nominee Directors)
7) Shri Vijoy Kumar Singh, Additional Secretary & Financial Advisor, Ministry of Textiles (MoT) & Financial Advisor
(Addl. Charge), Ministry of Steel (MoS), Govt. of India.
8) Ms. Ruchika Chaudhry Govil, Joint Secretary (Steel), MoS, Govt.of India.
Part - time Non - Official Directors (i.e Independent Directors)
9) Shri Ashwini Mehra
10) Dr. Sita Sinha
2.2 Board Meetings
During the financial year ending with 31st March, 2020, Ten (10) Board Meetings were held on the following dates:
S.No. Board Meeting No. Date S.No. Board Meeting No. Date
1. 319 01.05.2019 6. 324 05.11.2019
2. 320 31.07.2019 7. 325 05.12.2019
3. 321 19.08.2019 8. 326 07.01.2020
4. 322 13.09.2019 9. 327 06.02.2020
5. 323 18.10.2019 10. 328 17.03.2020

36
Details of the number of Board Meetings attended by Directors, attendance at the last Annual General Meeting
(AGM), number of other directorships, number of Board Sub-Committees and positions as Chairman / Member in
RINL etc., during the year 2019-20 were as follows:
No. of No.of Attendance No. of other No. of RINL Board No. of Board
Category Board Board at last Directorships Sub-Committees Sub-Committees
S. Name & Meetings Meetings AGM held held as on Chairman/ Chairman /
No Designation of the held during attended on 31.03.2020 Member as on Member/ in other
Director(s) respective 13.09.2019 31.03.2020 *** companies as on
tenure of 31.03.2020 ***
Director Chairman Member Chairman Member
Functional Directors
1) Shri P K Rath, CMD 10 10 Yes 6 - - - -
2) Shri K C Das
Director (Personnel) 10 9 Yes 4 - 2 - -
3) Shri V V Venu Gopal Rao
Director (Finance) 10 10 Yes 3 - 2 - -
4) Shri D K Mohanty
(w.e.f. 01.08.2019) 8 8 Yes 4 - - - -
5) Shri K K Ghosh
Director (Projects)
( w.e.f 05.09.2019) 7 7 Yes 1 - 1 - -
6) Shri A K Saxena
Director(Operations)
( w.e.f. 17.10.2019) 6 6 ** - - - - -
7) Shri P Raychaudhury
Director (Commercial)
( upto 31.07.2019) ($) 2 2 ** - - - - -
Part - Time Official Directors (i.e Government Nominee Directors)
8) Shri Vijoy Kumar Singh
AS&FA, MoT & FA
(Addl. Charge) &
Govt. Director, RINL
(w.e.f. 17.03.2020) - - ** 6 - - - -
9) Ms. Ruchika Chaudhry Govil
Jt .Secretary (Steel),
& Govt. Director, RINL 10 8 No 1 - 2 - -
10) Shri Saraswati Prasad
SS&FA (MoS),
& Govt. Director, RINL
(upto 22.01.2020)(#) 8 8 No - - - - -
11) Shri Rohit Yadav
Jt .Secretary (Steel),
& Govt. Director, RINL
(w.e.f.22.01.2020 to
17.03.2020)(#) 2 0 ** - - - - -
Part - Time Non-official Directors (i.e Independent Directors)
12) Shri S K Mishra
IRS(Retd)
(upto 26.11.2019)(#) 6 6 Yes - - - - -
13) Shri Sunil Gupta
(upto 12.11.2019) (#) 6 6 Yes - - - - -
14) Shri Ashwini Mehra 10 9 Yes 2 3 1 - -
15) Dr. Sita Sinha
(w.e.f.24.01.2020) 2 2 ** - 1 3 - -

37
 ($) Cessation of directors on superannuation. reviewed. The Company Secretary ensures that
all relevant information, details and documents are
(#) Cessation of directors/ completion of tenure.
made available to the Directors and Senior
*** Position of membership of Directors as on Management on need basis for effective decision-
31.03.2020 in Corporate Governance related making at the Meetings. The Company Secretary
committees viz., Audit Committee, CSR & is primarily responsible to ensure compliance with
Sustainability Committee, Nomination and applicable statutory requirements under the
Remuneration & Ethics / HR Committee, Companies Act, 2013 and rules made thereunder
Stakeholders/ Investors Grievance Committee are or any enactment thereof and is the interface
only considered and reflected above. between the Management and Regulatory
** The respective persons were not a Director / Authorities for governance matters. All the
ceased to be a Director of the Company as on the Directors of the Company have access to the
date of last AGM. advice and services of the Company Secretary.

Note: 2.5 Information placed before the Board of

Directors
1) The particulars of memberships in Board Sub-
Committees in RINL and in other Companies are The information under the following heads is
not given in respect of Directors namely Shri P usually presented to the Board of Directors of the
Raychaudhury, Shri Rohit Yadav, Shri Saraswati Company either as part of the Agenda papers or
Prasad, Shri S K Mishra and Shri Sunil Gupta who is tabled / presented during the course of the
ceased to be directors during the year. Board meetings:

2) Few directors have participated in the Board • Annual operating plans and budgets and any
Meetings through video conferencing. Company updates.
has taken necessary steps to record the • Capital budgets and any updates.
proceedings of the meetings held through Video
• Quarterly results for the company and its operating
conferencing.
divisions or business segments.
2.3 Board Meetings Procedure
• Minutes of meetings of Audit Committee and other
The Company Secretary in consultation with the Board Sub-Committees.
Chairman-cum-Managing Director calls for a
• Minutes of Board Meetings of Subsidiary
meeting of the Board by giving not less than seven
Companies.
days notice in writing to every Director at his
address registered with the company and • Details of any Joint Venture or R&D project or
respective email. The Board Agenda is circulated Technical collaboration agreement requiring
to the Directors as per the timelines indicated in approval of Board of Directors.
Secretarial Standards.
• Sale of material, nature of investments,
The Members of the Board have access to all subsidiaries, assets, which is not in normal course
relevant information of the Company and its of business.
performance and are free to recommend inclusion
• Action Taken Report on matters desired by the
of any matter in the agenda for discussion. In case
Board.
of need, the Senior Management is invited to
attend the Board Meetings to provide additional • Disclosure of Interest by Directors about
inputs relating to the items being discussed and / directorships and Committee positions occupied
or to give presentation on each item to the Board, by them in other companies.
as per requirement. • Quarterly report on Statutory Compliance.
The Board meets regularly and is responsible for • Information relating to major legal disputes.
the proper direction and management of the
Company. • Arbitration cases.
2.4 Role of the Company Secretary in overall • Short term Investment of Surplus funds.
Governance Process • Significant Capital Investment proposals.
The Company Secretary being a Key Managerial • Changes in significant accounting policies and
Person (KMP) plays a vital role in ensuring that practices and reasons for the same.
the Board procedures are followed and regularly

38
• Compliance with the provisions of Companies Act, 2.8 Selection of New Directors
2013 and rules made thereunder. The Chairman-cum-Managing Director, Functional
• Any other information required to be presented to Directors, Part-time Official Directors (i.e
the Board either for information or approval. Government Nominees) and Part-time Non-official
2.6 Role of Independent Directors Directors (i.e Independent Directors) are
appointed / nominated by Government of India.
The Independent Directors play an important role
in deliberations of the Board and Board Sub- 2.9 Terms & Conditions of Board Members,
Committee meetings and bring to the Company Retirement Policy and Evaluation of the
their expertise in various fields viz engineering, Board Members
finance, management, law and public policy. The The appointment of Chairman-cum-Managing
Board has established various Sub-Committees Director and Functional Directors of the company
such as Audit Committee, CSR Committee and is made by the President of India from time to time
Stakeholders/Investors Grievance Committee etc on such terms and conditions like remuneration
with adequate representation of Independent payable, tenure etc, and they are appointed for a
Directors in line with the Companies Act, 2013 and term of five (5) years or till the date of their
Rules made thereunder and the requirements of superannuation whichever is earlier.
Department of Public Enterprises (DPE) Guidelines Two Part-time Official Directors i.e. Govt. Directors
on Corporate Governance for CPSEs. The viz. Joint Secretary (Steel), Ministry of Steel and
Company has also constituted Nomination and Financial Advisor (Addl. Charge), Ministry of Steel
Remuneration Committee and Stakeholders have been nominated by the Government of India
Relationship Commitee to deal with various on the Board of RINL and they continue to hold
matters as per Section 178 of the Companies Act, such office at the discretion of the Government of
2013 including Performance Related Pay headed India and is co-terminus with their position in the
by an Independent Director. Ministry of Steel.
A Board Sub-Committee for Corporate Social The Company being a Government Company, the
Responsibility & Sustainability headed by an provisions of Section134(3)(e)and(p),149(6)(a)
Independent Director has been constituted and (c), 152(5) and 178(2), (3) and (4) of the
pursuant to section 135 and other relavent Companies Act, 2013 with regard to appointment,
provisions of Companies Act, 2013 and DPE performance evaluation etc, have been exempted
guidelines, for proper and periodic monitoring of by Government of India, Ministry of Corporate
CSR activities. The Board Sub-Committees of Audit Affairs vide Gazette notification dated 05.06.2015.
Committee, Nomination and Remuneration
The provisions of sub-paragraph (2) and (7) of
Committee and other Business purpose
paragraph II, paragraph IV, clauses (a) and (b) of
Committees are also headed by an Independent
sub-paragraph (3) of paragraph VII and paragraph
Director.
VIII of Schedule IV of the Companies Act, 2013 in
2.7 Meetings of Independent Directors respect of performance evaluation of Directors
A Board Sub Committee has been set up and the Board shall not apply in the case of a
comprising all the Independent Directors viz Government company as defined under clause
Committee of Independent Directors (COID) which (45) of section 2 of the Companies Act, 2013 vide
facilitates the Independent directors to meet and Gazette notification dated 05.07.2017.
discuss on issues without the presence of Whole 2.10 Code of Conduct
time (Executive) Directors or Management
As part of the Company's persisting endeavor to
Personnel. During such meetings the Independent
set a high standard of conduct for its employees
Directors discuss matters pertaining to the affairs
and its Board members, a 'Code of Business
of the company. For the FY 2019-20, 1(One) such
Conduct and Ethics' has been laid down for all
meeting was held on 18th October, 2019. All the
Board Members and Senior Management
Three (3) Independent Directors have attended
personnel. The same is placed at Company's
the meeting.
website.
Declaration by Independent Directors
The Code encompasses:
All Independent Directors have furnished
declaration as required under Section 149(6) read • General Moral Imperatives;
with 149(7) of the Companies Act, 2013 and as • Specific Professional Responsibilities; and
per the requirement under the DPE guidelines.

39
• Additional Duties / Imperatives for Board 2.11 Board Charter
Members and Senior Management Personnel.
Board has laid down a Board Charter for the
• A declaration by Senior Management personnel Board of Directors of the Company defining the
and Board Members affirming, annually that they roles and responsibilities of the Board members.
do read and follow the code. The Charter also articulates Company's
Corporate Governance objectives and approach.
2.12 The Details of Remuneration & Sitting Fee Paid to Directors during the Financial Year 2019-20.
Whole Time Directors (WTD)/ Functional Directors
The Whole Time Directors/ Functional Directors are appointed in terms of the Articles of Association of the
Company by the President of India, in consultation with the Chairman of the Company for a period of 5 years
or till the age of Superannuation or until further orders, whichever is earlier. The appointment may, however,
be terminated by either side on three months notice or on payment of three months salary in lieu thereof.
The details of remuneration paid to Whole Time Directors during the year 2019-20, are as follows:
(Value in )
Basic Salary Allowances and Sitting Fees Total
S. No. Name (in ) Perquisites & Other (in ) (in )
Retirement Benefits (in )
1. Shi P K Rath 10,53,201 24,35,055 NIL 34,88,256
2. Shri Kishore Chandra Das 9,62,010 24,05,679 NIL 33,67,689
3. Shri V V Venu Gopal Rao 11,91,528 36,40,903 NIL 48,32,431
4. Shri D K Mohanty 5,60,000 15,02,238 NIL 20,62,238
5. Shri K K Ghosh 5,56,360 12,73,000 NIL 18,29,360
6. Shri A K Saxena 3,56,782 11,35,666 NIL 14,92,448
7. Shri P Raychaudhury* 3,60,240 53,50,368 NIL 57,10,608

Note:
The period of remuneration in respect of following directors is as follows:
Shri D.K.Mohanty from 01.08.2019 to 31.03.2020;
Shri K.K. Ghosh from 05.09.2019 to 31.03.2020;
Shri A.K.Saxena from 17.10.2019 to 31.03.2020;
* The actual period of service was up to 31.07.2019. Remuneration includes retirement benefits such as leave
encashment etc.
Part-time Non-Official Directors (Independent Directors)
The part-time non-official directors (i.e. Independent Directors) are appointed by Government of India as Director
for a period of 3 years from the date of assumption of charge or until further orders, whichever is earlier. Sitting
fees is only paid by the Company to the part-time non-official directors @ 20,000/- for each meeting of Board/
Board Sub-Committee attended by them. The details of sitting fees paid during the year to part-time non-official
directors (i.e. Independent Directors) are as follows:
(Value in )
Basic Allowances and Sitting Fees Total
S. No. Name Salary Perquisites & Other (in ) (in )
(in ) Retirement Benefits (in )
1. Shri S K Mishra Except Sitting fees, no other 7,20,000 7,20,000
2. Shri Sunil Gupta remuneration is paid by the Company 7,00,000 7,00,000
3. Shri Ashwini Mehra to the part-time non-official directors. 9,00,000 9,00,000
4. Dr. Sita Sinha 1,60,000 1,60,000

40
 Part-time official Directors/ Govt. Directors I Scope of the Committee:
Shri Saraswati Prasad, Ms. Ruchika Chaudhry The scope of the Audit Committee has to be in
Govil, Shri Rohit Yadav and Shri Vijoy Kumar conformity with Section 177 of the Companies
Act, 2013 read with the Companies (Meetings
Singh are the Part-time official Directors/
of Board and its Powers) Rules, 2014, the
Government Directors nominated by
guidelines issued by Department of Public
Government of India as Directors of RINL during Enterprises (DPE) for Corporate Governance in
the year 2019-20 and no remuneration was paid respect of unlisted Companies.
to the Part-time official Directors by the
A. Statutory Nature
Company.
In terms of the provisions of Section 177 of the
2.13 Loans & Advances given to Directors
Companies Act, 2013, following functions are
Functional Directors were not given any special required statutorily to be discharged by the Audit
loans or advances. However they are entitled to Committee:
Festival Advances and House Building Advances 1) The terms of reference shall, inter alia, include:-
at par with normal employees.
a) the recommendation for appointment,
3.0 BOARD SUB COMMITTEES (BSC) remuneration and terms of appointment of
The Board has constituted the following Committees: auditors of the company;

A. Corporate Governance b) review and monitor the auditor's independence

and performance, and effectiveness of audit
(i) Audit Committee process;
(ii) Nomination and Remuneration Committee c) examination of the financial statement and the
(iii) CSR & Sustainability Committee auditors' report thereon;

(iv) Stakeholders/Investors Grievance Committee d) approval or any subsequent modification of

transactions of the company with related parties;
(v) Committee of Independent Directors (COID)
e) scrutiny of inter-corporate loans and
B. Other Business Purposes investments;
(vi) Board Sub Committee on Marketing (BSCOM) f) valuation of undertakings or assets of the
(vii) Board Sub Committee on Raw Material Security company, wherever it is necessary;
and Joint Ventures & Acquisitions g) evaluation of internal financial controls and risk
management systems;
(viii) Ethics/HR Committee
h) monitoring the end use of funds raised through
(ix) Committee for Expansion and Related Projects public offers and related matters.
(earlier HPSC)
2) The Audit Committee may call for the comments
(x) Committee of Management (COM) of the auditors about internal control systems,
Procedure at Board Sub Committee Meetings the scope of audit, including the observations of
the auditors and review of financial statements
The guidelines relating to Board Meetings are largely before their submission to the Board and may
followed for all Board Sub-Committee Meetings as well. also discuss any related issues with the internal
Minutes of the proceedings of the Committee meetings and statutory auditors and the management of
are placed before the Board for perusal and noting. the company.
Company Secretary is the Secretary to the respective 3) The Audit Committee shall have authority to
Board Sub-Committees. investigate into any matter in relation to the items
3.1 Audit Committee specified in (1) or referred to it by the Board and
for this purpose shall have power to obtain
In terms of the provisions of Section 177(2) of professional advice from external sources and
the Companies Act, 2013, read with the have full access to information contained in the
Companies (Meetings of Board and its Powers) records of the company.
Rules, 2014, the functions/Scope of the Audit
Committee was approved by the Board. The
details of the same are as follows:

41
B. As per Corporate Governance Guidelines 10) Reviewing the findings of any internal
issued by Department of Public Enterprises investigations by the Internal Auditors into
(DPE), the main functions of the Audit matters where there is suspected fraud or
Committee are as follows: irregularity or a failure of internal control systems
1) Oversight of the Company's financial reporting of a material nature and reporting the matter to
process and the disclosure of its financial the Board.
information to ensure that the financial 11) Discussion with Statutory Auditors before the
statements are correct, sufficient and credible. Audit commences about the nature and scope
Approval Nature: of audit as well as post-audit discussion to
ascertain any area of concern.
2) Approval of payment to Statutory Auditors for any
other services rendered by the Statutory Auditors. 12) To look into the reasons for substantial defaults
in the payment to the depositors, debenture-
Recommending Nature: holders, shareholders (in case of non-payment
3) Recommending to the Board the fixation of Audit of declared dividends) and creditors.
Fees. 13) Carrying out any other function as is mentioned
Review Nature: in the terms of reference of the Audit Committee.
4) To review the functioning of the Vigil Mechanism 14) To review the follow up action on the audit
(Whistle Blower Mechanism); observations of the Comptroller & Audit General
(C&AG) Audit.
5) Reviewing with the Management, the annual
financial statements before submission to the 15) To review the follow up action taken on the
Board for approval, with particular reference to: recommendations of Committee on Public
Undertakings (COPU) of the Parliament.
a) matters required to be included in the Directors
Responsibility Statement to be included in the 16) Provide an open avenue of communication
Board's Report in terms of Section 134(5) of the between the independent auditor, internal auditor
Companies Act, 2013; and the Board of Directors.
b) changes, if any, in accounting policies and 17) Review all related party transactions in the
practices and reasons for the same; Company. For this purpose, the Audit Committee
may designate a member who shall be
c) major accounting entries involving estimates
responsible for pre-approving related party
based on the exercise of judgment by
transactions.
Management;
18) Review with the independent auditor the co-
d) significant adjustments made in the financial
ordination of audit efforts to assure completeness
statements arising out of audit findings;
of coverage, reduction of redundant efforts, and
e) compliance with legal requirements relating to the effective use of all audit resources.
financial statements;
19) Review of Management discussion and analysis
f) disclosure of any related party transactions; of financial condition and results of operations.
g) qualifications in the draft Audit Report; 20) Review of Statement of related party transactions
6) Reviewing with the Management, the Quarterly submitted by management.
financial statements before submission to the 21) Review of Management letters / letters of internal
Board for approval. control weaknesses issued by the statutory
7) Discussion with Statutory and Internal Auditors auditors.
any significant findings and follow up there on. 22) Review of Internal audit reports relating to internal
8) Reviewing with the Management, the control weaknesses.
performance of Statutory and Internal Auditors, 23) Certification / declaration of financial statements
adequacy of the internal control systems. by the Chief Executive Officer i.e. CMD and CFO
9) Reviewing the adequacy of the Internal Audit i.e. Director (Finance); and
function, if any, including the structure of the 24) Appointment and removal of the Chief Internal
Internal Audit Department, staffing and seniority Auditor shall be placed before the Audit
of the official heading the Department, reporting Committee.
structure, coverage and frequency of Internal
25) Review of Status of Sundry Debtors.
Audit.
42
 D. In terms of RINL Board directions, in
26) Consider and review the following with the addition to the above, the Audit Committee
independent auditor, if any, and the shall also look into the following areas:
management:
1) Recommending Nature:
a) The adequacy of internal controls including
computerized information system controls and a) Recommendations on working capital
security, and arrangements and term loans including
borrowings for capital expenditure.
b) Related findings and recommendations of the
independent auditor and internal auditor, b) Recommendations on investment of surplus
together with the management responses. funds.
27) Consider and review the following with the c) Recommendations of write off of losses requiring
management, internal auditor and the approval of Board.
independent auditor: 2) Review of Information by Audit Committee:
a) Significant findings during the year, including the a) Reviewing with the Management, the statement
status of previous audit recommendations; of uses / application of funds raised through an
b) Any difficulties encountered during audit work issue (public issue, rights issue, preferential
including any restrictions on the scope of activities issue, etc.), the statement of funds utilized for
or access to required information. purposes other than those stated in the offer
document / prospectus / notice and the report
C. In addition to the above, the Audit submitted by the monitoring agency monitoring
Committee should also fulfill the following the utilization of proceeds of a public or rights
requirements of Clause 49 of the Listing issue and making appropriate recommendations
Agreement: to the Board to take up steps in this matter.
a) The Audit Committee shall approve the b) To review contracts on nomination basis as per
appointment of the CFO (i.e., the whole-time extent guidelines.
finance director or any other person heading the
finance function or discharging that function) E. The Powers of the Committee include the
after assessing the qualifications, experience and following:
background, etc., of the candidate. a) To investigate any activity within its terms of
b) The Chairman of the Audit Committee shall be reference.
present at annual general meeting to answer b) To seek information from any employee.
shareholders queries; provided that in case the c) To obtain outside legal or other professional
Chairman is unable to attend due to unavoidable advice, subject to the approval of the Board of
reasons, he may nominate any member of the Directors.
Audit Committee; and
d) To secure attendance of outsiders with relevant
c) The Audit Committee may invite such of the expertise, if it considers necessary.
executives, as it considers appropriate (and
particularly the head of the finance function) to e) To protect whistle blowers.
be present at the meetings of the Committee, F. The Audit Committee may also look into any
but on occasions it may also meet without the such other matter as may be prescribed by
presence of any executives of the Company. The the Statutory Authorities from time to time.
finance director, head of internal audit and a
Periodicity: In terms of the Corporate
representative of the Statutory Auditor may be
Governance guidelines issued by DPE vide para
present as invitees for the meetings of the Audit
4.4 from time to time, the Audit Committee should
Committee.
meet at least four times in a year and not more
Note:The Company is not a listed company. The than four (4) months shall elapse between two
requirements vide para I above has been meetings. The quorum shall be either two
approved by the Board of Directors as part of members or one third of the members of the Audit
terms of reference to Audit Committee. Committee whichever is greater, but a minimum
Accordingly the above are being complied with of two independent members must be present.
by the company voluntarily.
II Composition:
The Audit Committee comprised the following

43
 Independent directors during the year ending with apprises the Board about the observations, if any, of the
31.03.2020.The details of meetings attended by Audit Committee during the Board Meeting.
the members of the Committee are as follows: 3.2 Nomination and Remuneration Committee
Members of the Meetings Meetings The Board of Directors, in its 325th meeting held on
Committee Position held Attended 05 th December, 2019, have approved to demerge
during present Nomination, Remuneration & Ethics/HR
the tenure Committee into two separate Board Sub Committees
i.e. Statutory and Non-Statutory Committee as follows
Shri Sunil Gupta for operational convenience of HR issues :
(upto 12.11.2019) Chairman 4 4 (A) Board Sub-Committee on 'Nomination and
Shri S K Mishra Remuneration Committee' (a Statutory Committee).
(upto 26.11.2019) Member 4 4 (B) Board Sub-Committee on 'Ethics and Human
Shri Ashwini Mehra Member/ Resource Committee (EHRC)' (a Business purpose
i.e. non Statutory Committee).
(Chairman w.e.f. 05.12.2019) Chairman 6 6
A) Nomination and Remuneration Committee comprises
Dr. Sita Sinha of Two (2) Independent directors and One (1) Part-
(w.e.f. 29.01.2020) Member 2 2 time Official Director (Govt. Nominee Director) as
members as on 31.03.2020 and the committee is
Ms.Ruchika Chaudhry Govil chaired by an Independent Director. The Director
(w.e.f.05.12.2019) Member 2 2 (Finance) and Director (Personnel) are Invitees for the
Nomination and Remuneration Committee. The
Shri Saraswati Prasad
particulars of meetings held during the year is as follows:
(From 05.12.2019 to 22.01.2020) Member Nil -
Sl.No. Meeting No. Date
The Director (Finance) of the Company is a Permanent 1 28 30.04.2019
invitee and the Head of Internal Audit & Stock
Verification Department is an invitee for the meetings 2 29 09.07.2019
of the Audit Committee. The representative of the 3 30 29.08.2019
Statutory Auditors is also invited to the Audit Committee
meeting while considering Annual Financial 4 31 11.09.2019
Statements and discussion on the nature and scope 5 32 17.10.2019
of Annual Audit. Company Secretary acts as the
6 33 31.10.2019
Secretary of the Audit Committee. As on 31.03.2020,
there were two Independent Directors as Members of The details of the Members and their attendance of
Audit Committee.
meetings are as follows:
III. Meetings and attendance of Audit Committee
during the year: Name of the Position Meetings Meetings
Director held Attended
During the financial year ending with 31st March, 2020, during the
6(Six) Audit Committee Meetings were held on the tenure
following dates;
Shri S K Mishra
Sl.No. Meeting No. Date (upto 26.11.2019) Chairman 6 6
1 86 30.07.2019 Shri Sunil Gupta
2 87 19.08.2019 (upto 12.11.2019) Member 6 6
3 88 12.09.2019 Shri Ashwini Mehra Member 6 6
4 89 01.11.2019 Shri K C Das * Member 2 2
Shri V V Venu Gopal Rao* Member 2 1
5 90 05.02.2020
Dr. Sita Sinha
6 91 17.03.2020 (w.e.f. 29.01.2020) Member 0 0
The details of attendance of each member are given Ms. Ruchika Chaudhry Govil
in the table at para II above. (w.e.f.05.12.2019) Member 0 0
The Minutes of all the Audit Committee meetings are put Shri Saraswati Prasad
up to Board in their subsequent meetings as an item of (From 05.12.2019 to 22.01.2020) Member 0 0
information. The Chairman of the Audit Committee also
44
Note: * Attended as members for two committee meetings 3.3 CSR & Sustainability Committee
only i.e. 30.04.2019 (28 th) & 09.07.2019 (29th).
Thereafter continue to attend as invitees w.e.f 31st Composition:
July, 2019 consequent to re-designate them as
CSR & Sustainability Committee comprised of Two (2)
Invitees vide reconstitution of the committee in the
Independent directors & (2) Functional Directors as
320th Meeting of the Board of Directors held on 31st
on 31.03.2020. During the financial year 2019-20,
July, 2019.
3(Three) meetings were held on 12.04.2019,
The Company being a Government Company, the 30.04.2019 & 30.07.2019.The details of Members and
appointment, tenure and remuneration of CMD and their attendance are as follows:
Functional Directors are decided by Govt. of India.
As per the Department of Public Enterprises (DPE) Name of the Position Meetings Meetings
Guidelines, a Remuneration Committee was Director held during Attended
constituted to decide the annual bonus/variable pay the tenure
pool and policy for its distribution within the prescribed Shri Ashwini Mehra Chairman 3 3
limits. Committee shall meet periodically depending Dr. Sita Sinha
upon the requirement. (w.e.f. 06.02.2020) Member - -
B) BSC on Ethics/HR Committee comprises of Two (2) Shri Sunil Gupta
Independent directors and Two (2) Functional (upto 12.11.2019) Member 3 3
Directors as members as on 31.03.2020 and the Shri K C Das Member 3 2
committee is chaired by an Independent Director. Shri V V Venu Gopal Rao Member 3 2
The Ethics and Human Resource Committee (EHRC) 3.4 Stakeholders / Investors Grievance
shall: Committee
• Oversee the implementation of the Company's Ethics The Stakeholders/Investors Grievance Committee
Policy; comprised of Six (6) members including two
Independent Directors of which One Independent
• To consider all HR and it’s associated matters
Director is the Chairman of the Committee and four
requiring approval of RINL Board.
Whole Time Directors as Members as on 31.03.2020.
• The matters pertaining to the admissibility, quantum During the year FY 2019-20, Three (3) meetings were
and procedure for determination of Variable Pay/ held on 09.07.2019, 12.09.2019 & 01.10.2019
Performance Related Pay of Executives and Non- respectively and details of Members and their
Unionised Supervisors will not be in the purview of attendance are as follows:
this Committee.
Name of the Position Meetings Meetings
During the financial year 2019-20, 2(Two) Meetings of
Director held during Attended
Ethics/HR Committee were held on 23.12.2019 &
the tenure
07.01.2020.
Shri Ashwini Mehra Chairman 3 3
Name of the Position Meetings Meetings Shri S K Mishra
Director held during Attended (upto 26.11.2019) Member 3 3
Dr. Sita Sinha
the tenure
(w.e.f. 06.02.2020) Member 0 0
Shri Ashwini Mehra Chairman 2 2 Director (Personnel) Member 3 3
Shri K C Das Member 2 2 Director(Finance) Member 3 3
Shri V V Venu Gopal Rao Member 2 2 Director(Projects) Member 2 2
Director(Commercial) &
Dr. Sita Sinha Concerned Functional Director Member 1 1
(w.e.f. 29.01.2020) Member 0 0
Committee shall meet periodically depending upon the
requirement.

45
4.0 GENERAL BODY MEETINGS matters related to any guidelines issued by
Government, during the last three years.
(i) Date, Time and Venue of the last three AGMs: (iii) Vigil Mechanism Policy of RINL:
Vigil mechanism Policy is formulated considering
Financial Date Time Venue the requirements envisaged under the Corporate
Year Governance Guidelines issued by Department
2016-17 27.09.2017 11.00hrs Admn. Building, of Public Enterprises (DPE) and in accordance
2017-18 29.09.2018 11.00hrs Rashtriya Ispat with the Companies Act, 2013 and Rules made
Nigam Limited there under. Your Company has not denied any
2018-19 13.09.2019 14.00hrs Visakhapatnam personnel access to the Audit Committee of the
Steel Plant, company (in respect of matters involving alleged
Visakhapatnam - misconduct) and that it has provided protection
530 031. to Whistleblowers from unfair termination and
other unfair prejudicial employment practices.
(ii) Whether any special resolutions passed in the (iv) Details of compliance with the
previous three AGMs: NIL requirements of Corporate Governance
Note: Two Special Resolutions regarding (i) borrowing Guidelines:
in excess of the paid up share capital and free reserves The Company has complied with the requirement
of the company and (ii) creation of mortgage and/or of DPE Guidelines on Corporate Governance.
charge over the movable & immovable properties of (v) Details of Presidential Directives issued by
the company, both present & future in respect of the the Central Government and their
borrowings, mentioned in the 35th AGM Notice for the compliance during the year and also in the
AGM held on dt.27.09.2017 was withdrawn. last three years:
(iii) AGM of the Current Year; No Presidential Directives were issued by the
Central Government during the last three years.
Financial (vi) Items of expenditure debited in books of
Year Day & Date Time Venue accounts, which are not for the purposes
2019-20 Wednesday Admn. Building, of the business:
30th 15:30 Hrs Rashtriya Ispat There were no items of expenditure debited in
September Nigam Limited books of accounts, which are not for the purposes
2020 Visakhapatnam of the business.
Steel Plant, (vii) Expenses incurred which are personal in
Visakhapatnam nature and incurred for the Board of
- 530 031. Directors and Top Management:
There were no expenses incurred which are
(iv) EGM and Special Resolution Passed personal in nature and incurred for the Board of
Date Description of Special Resolution Directors and Top Management.
(viii) Compliance with New initiatives of Ministry
NIL
of Corporate Affairs:
a) Directors KYC: Your Company has complied with
5.0 DISCLOSURES
the Companies (Appointment and Qualification
(i) Disclosures on materially significant related of Directors) Fourth Amendment Rules, 2018 by
party transactions that may have potential filing form DIR-3 KYC of all the directors of the
conflict with the interests of Company at large: Company.
There were no transactions by the company of b) Form MSME: Your Company has filed form MSME
material nature with Promoters, Directors or the with the details of payments to MSMEs exceeding
Management, their subsidiaries or relatives etc., forty five days from the date of acceptance of
that may have potential conflict with the interest goods and services to comply with the directions
of Company at large. given by MCA in Specified Companies (Furnishing
(ii) Details of non-compliance by the Company, of Information about Payment to Micro and Small
penalties, strictures imposed on the Enterprise Suppliers) Order, 2019.
company by any statutory authority, on any c) Various Circulars issued in view of COVID-19 to
matter related to any guidelines issued by the extent of applicable to the Company. All
Government, during the last three years: meetings were conducted through Video
There were no instances of non-compliance by Conference and Other Audio Visual Means (VC/
the Company, Penalties, Strictures imposed on OAVM) in compliance to the Companies Act,
the Company by any Statutory Authority, on any 2013 and Rules made thereunder and circulars
issued by MCA from time to time in view of Covid-19.

46
(ix) Details of Administrative and Office Expenses as a percentage of Total Expenses vis-à-vis Financial Expenses
and reasons for increase: ( in Crores)
Details 2019-20 2018-19 Increase / Decrease over 2018-19 Reasons
1 Administrative and Office expenses 116.22 103.85 Increase (due to increase in security expenses)
2 Financial expenses 1498.23 1277.61 Increase (due to increase in borrowings)
3 Total expenses (as per P&L A/c) 20950.44 22329.44
4 Administrative expenses as a % of
Total expenses (1÷3) 0.55 0.47 Increase (due to decrease in total expenses)
5 Financial expenses as a % of
Total expenses (% ) (2÷3) 7.15 5.27 Increase (due to increase in borrowings)
6 Administrative expenses vs
Financial expenses (%) (1÷2) 7.76 8.13 Decrease (due to increase in borrowings)

6.0 MEANS OF COMMUNICATION (ii) Annual General Meeting

Date: Wednesday, 30th September, 2020
(i) Quarterly Results
Time: 15:30 Hrs
The Company is an unlisted company and hence
quarterly results of the Company are not published Venue: Admn. Building, RINL, Visakhapatnam
in Newspapers. However, the same are being put Steel Plant (VSP), Visakhapatnam.
up to the Administrative Ministry (MoS) and Audit (iii) Financial Year:
Committee respectively. The financial year of the company is from 01st April
(ii) Newspapers wherein results normally to 31st March.
published (iv) Payment of Dividend:
A brief on Annual Results are covered by News During the year, No dividend was declared.
papers viz The Hindu, Eenadu (local Telugu paper)
(v) Stock Code: ISIN -INE508F01013
etc.
(vi) Registrar and Share Transfer Agent:
(iii) Any website, where displayed
KFIN Technologies Private Limited
Annual results as part of the Annual Reports for
Selenium Tower - B, Plot No.31 & 32, Financial
the last three years are made available on the
District, Nanakramguda, Serilingampally,
website of the Company (www.vizagsteel.com).
Hyderabad-500 032, State of Telangana, India.
Website is designed to open the documents easily
and quickly. Hindi version of the Annual report is Telephone: +91 40 4465 5000,
also placed on the website along with English Facsimile: +91 40 2343 1551,
version. Email: murali.m@karvy.com
(iv) Whether it also displays official news Website: www. karisma.karvy.com,
releases.
Contact Person: Shri M. Murali Krishna,
The Company also displays official news releases
SEBI Registration Number: INR000000221
on its website (www.vizagsteel.com).
(vii) Share Transfer System
7.0 SHAREHOLDER'S INFORMATION
The Company, being a Govt. Company, the entire
(i) Company Registration Details
share capital is held by Central Government
The Company is registered in the State of Andhra represented by President of India and his
Pradesh, India. The Corporate Identity Number (CIN) nominees. Shares held in the name of President of
allotted to the Company by the Ministry of Corporate India are in dematerialized form. Shares held in
Affairs (MCA) is U27109AP1982GOI003404.

47
 the name of nominees are in physical form. Shares (xi) Address for Correspondence:
in the physical form are transferred as and when M. Jagadeeshwara Rao
changes are made in the nominees by following
Company Secretary,
the procedure as applicable to Govt. Companies.
Company Affairs Department,
M/s. KFIN Technologies Private Limited,
D-12, D Block, 2nd Floor, Administrative Building,
Hyderabad has been appointed as Registrar &
Share Transfer Agent for looking after demat and Rashtriya Ispat Nigam Limited (RINL),
other related works and reporting system through Visakhapatnam Steel Plant (VSP),
weekly snapshot reports.
Visakhapatnam - 530 031.
(viii) Equity Shareholding Pattern as on
31.03.2020 E mail: jagadeeshm@vizagsteel.com /
S. No. Name of the Shareholder Number of csrinl@vizagsteel.com,
Equity Shares Website: www.vizagsteel.com
1 The President of India 8.0 AUDIT QUALIFICATIONS
(Acting through MoS) 488,98,45,400
The Company has secured 'NIL' Comments from
2 Shri P. K Rath 200
Comptroller & Auditor General (CAG) for the last
3 Shri K C Das 100
Thirteen (13) consecutive years since 2007-08.
4 Shri V V Venu Gopal Rao 100
9.0 TRAINING OF BOARD MEMBERS
5 Shri D K Mohanty 100
6 Shri K K Ghosh 100 The Company has been sponsoring the
independent directors/ newly inducted directors
7 Shri Saraswati Prasad 100
for training programs conducted by SCOPE/ DPE/
8 Ms. Ruchika Chaudhry Govil 100
IPE.
Total 488,98,46,200
10 CERTIFICATION OF FINANCIAL STATEMENTS
The Company is a wholly owned Government
BY THE CEO AND CFO OF THE COMPANY
company. All the shares are held in the name of the
President of India and his nominees as appeared The CEO (i.e. CMD of the Company) and CFO
above from Sl.No.2 to 8. (i.e. Director (Finance) of the company) have
provided the Certification regarding the financial
(ix) The Subsidiaries of the Company as on 31st
statements for the year 2019-20, as reviewed by
March, 2020
Audit Committee (Annexure -III).
(a) Eastern Investments Limited (EIL)
11. CORPORATE GOVERNANCE CERTIFICATE
(b) The Orissa Minerals Development Company
A Certificate on Compliance of Guidelines on
Limited (OMDC)
Corporate Governance issued by DPE in May
(c) The Bisra Stone Lime Company Limited (BSLC) 2010, for the year 2019-20 given by a practicing
(OMDC & BSLC are the Subsidiaries of EIL) Company Secretary is annexed herewith and
forms part of the Directors' Report vide
(x) Joint Venture Companies as on
(Annexure-IV).
31st March, 2020
(a) RINMOIL Ferro Alloys Private Limited
(b) International Coal Ventures Private Limited
(c) RINL Powergrid TLT Private Limited.

48
 Annexure-III to Directors’ Report

CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO) CERTIFICATION
We, P K Rath, Chief Executive Officer & Chairman-Cum-Managing Director and V.V.Venu Gopal Rao, Chief
Financial Officer & Director (Finance) of RINL, to the best of our knowledge and belief, certify that:
1. We have reviewed the Balance Sheet, Statement of Profit & Loss and Statement of Changes in Equity,
Significant Accounting Policies and Notes to Accounts, as well as the Statement of Cash Flows for the year
ended March 31, 2020;
2. These statements do not contain any materially untrue statement or omission of any material fact or contain
statements that might be misleading in light of the circumstances under which such statements were made;
3. These statements present true and fair view of the Company's affairs and are in compliance with the existing
Accounting Standards and/or applicable Laws and Regulations;
4. No transaction was entered into by the Company during the year which was fraudulent, illegal or violative of
the Company's Code(s) of Conduct;
5. We are responsible for establishing and maintaining internal controls for financial reporting and that we
have evaluated the effectiveness of the internal control systems of the company pertaining to financial
reporting and we have disclosed to the Auditors and the Audit Committee, deficiencies in the design or
operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to
take to rectify these deficiencies;
6. We have indicated to the Company's Auditors and the Audit committee
(a) Significant changes, if any, in internal controls over financial reporting during the year;
(b) Significant changes, if any in Accounting Policies during the year and that the same have been disclosed in
the notes to the financial statements;
(c) Instances of significant fraud of which we have become aware and the involvement therein, if any, of the
management or an employee having significant role in the Company's internal control system over financial
reporting.
7. We further declare that all Board Members and Senior Managerial Personnel have affirmed compliance
with the Code of Conduct for the year ended 31.03.2020.
Sd/- Sd/-
V.V.Venu Gopal Rao P K Rath
CFO & Director (Finance) CEO & Chairman-Cum-Managing Director
Place: Visakhapatnam
Date : 24.07.2020

49
Annexure - IV to Directors’ Report

50
 Annexure-V to Directors’ Report

Annual Report on Corporate Social Responsibility

for the Financial Year 2019 -20
(Disclosures as per Section 135 of the Companies Act, 2013 read with Rule 9 of the Companies
(Corporate Social Responsibility Policy) Rules, 2014)
1. A brief outline of the Company's CSR policy, While the initial part of the CSR & Sustainability
including overview of projects or programs Policy elucidates alignment of CSR with the
proposed to be undertaken and a reference Company's Vision & Objectives and incorporation
to the web-link to the CSR Policy and projects of Sustainability in its strategy. The subsequent part
or programs details the Annual CSR activities, in line with the
activities laid down under Schedule-VII of the
The Company has formulated the CSR Policy in
Companies Act, 2013. A clear definition of 'Local'
2006 well before the enactment of the Companies
and 'Non-Local' area and ratio of the spend
Act, 2013. An exclusive Department has been
between these two areas has been specified.
created in 2007 to look after the implementation
of CSR projects / programmes / activities. Identification, Implementation and Monitoring of
projects, Implementation Strategy, Delegation of
The CSR Policy has been revisited and reviewed
Powers, criteria for execution agencies i.e. NGOs
keeping in mind the specific provisions of the
etc. are elaborated in the Policy document.
Companies Act, 2013 and the DPE Guidelines on
CSR issued from time to time. The CSR Policy of • The web link for the policy :
the Company was rechristened as RINL CSR &
https://www.vizagsteel.com/csr/csr-policy.pdf.
Sustainability Policy and notified in March, 2015.

The overview of projects undertaken in the focus areas viz., Education, Health, Sanitation, Skill Development,
Women Empowerment & Senior Citizen Care, Environment and Promotion of Sports is as follows:

Sl.No. CSR Projects/Programmes/Activities

Sector : Education
1 Providing quality education to children belonging to Below Poverty Line category from surrounding villages
of Plant & Mines.
2 Support to Arunodaya Special School for providing education, therapy and vocational training to differently
abled children in and around the Plant.
3 Providing supplementary education to the1810 children belonging to slum areas so as to inspire, educate
and integrate them into productive society.
4 Mid-day Meals to 900 BPL students in schools in and around the Plant.
5 Infrastructural Support to Akshaya Patra Foundation for improving their centralised kitchen to prepare
Mid-day meal to lakhs of under privileged students in Govt. Schools in Visakhapatnam District.
6 Providing educational infrastructure like three seater dual desks and other furniture to various Govt.
Schools/institutions.
7 Financial Assistance for Development of School "Purve Madhamik Vidhyalaya at Aihar Village, Lalganj,
Raebareli, UP," near Forged Wheel Plant at Lalganj, Raebareli, Uttar Pradesh.

51
Sl.No. CSR Projects/Programmes/Activities
8 Financial Assistance to Govt Junior College at V Madugula of Visakhapatnam District for Repair Works to
improve the class rooms and other facilities.
9 Restoration activities in Cyclone 'Titli' affected areas of Srikakulam District to undertake modernisation of
the toilets in some of the Welfare Hostels of Palasa of Srikakulam District.
Sector : Health
10 Promoting Health care through preventive vaccination to 160 Girl students belonging to poor families &
screening of their mothers for early detection of cancer.
11 Infrastructure support to Ayushman Bharat empanelled Divisional Railway Hospital, Visakhapatnam.
12 Financial support to Homibhabha Cancer Hospital and Research Centre towards procurement of additional
instrumentation in the Sanjeevan Mobile Clinic for cancer detection.
13 Medical camps in the surrounding villages of Madharam Mines.
14 Providing artificial limbs and assistive devices to disable persons.
15 Extending support to restoration activities in FANI cyclone hit areas of Odisha.
16 Contribution to "PMs CARES Fund" to support healthcare during Covid-19 pandemic.
Sector : Sanitation
17 Maintenance of toilets in 32 Govt. Schools under Swachh Vidyalaya.
18 Supply of drinking water to Rehabilitation colonies & peripheral villages of Plant during summer.
Sector : Skill Development
19 Providing Skill Development Training for women and persons affected by leprosy.
20 Financial assistance for providing Skill Development Training to the unemployed youth through Skill
Development Institute-Visakhapatnam.
Sector : Women Empowerment & Support to Senior Citizens
21 Installation of CCTV surveillance system in and around plant for improving women safety & security.
22 Adoption of 50 abandoned and destitute elderly persons rescued from the streets, Bus stations, and
Railway stations and provided them with daily necessities such as shelter, food, cloth and medical care.
Sector : Environment
23 Block & Avenue Tree Plantation in the identified areas of Greater Visakha Municipal Corporation of
Visakhapatnam under "Green Visakha" project.
Sector : Sports
24 Support to Sports for Special Children.

52
 2. Composition of the Committee:
a) RINL Board Sub-Committee on CSR & S is functioning as the CSR Committee.
The Board Sub-Committee on CSR & S consists of Four (4) members and two of them including the
Chairman of the Committee are Independent Directors.
1. Shri Ashwini Mehra - Independent Director - Chairman
2. Dr Sita Sinha - Independent Director - Member (from 06.02.2020)*
3. Shri Kishore Chandra Das - Director (Personnel) - Member
4. Shri V V Venugopal Rao - Director (Finance) - Member
5. Director(Operations) - Invitee
Company Secretary is the Convener & Secretary to the Committee.
*Inducted with the approval of the Board in its 327th Meeting held on 06.02.2020.
Shri Sunil Gupta -Independent Director - was Member of the Committee (upto12.11.2019)
b) The Board Sub-Committee on CSR&S has met three times during the FY 2019-20 and reviewed the
status of CSR projects/programmes/activities and has suggested measures to be taken to expedite the
completion of various CSR projects/programmes/activities in a time bound manner. In addition to this,
CMD and Directors have reviewed all these projects/programmes/activities.
3. Average Net profit of the Company for the last three Financial Years : (-) 1215.34 Cr
4. Prescribed CSR Expenditure (2% of the amount as in item 3 above) : Nil
5. Details of CSR Spent during the Financial Year 2019-20:
a) Total Amount to be spent during the financial year : 10.10 Cr
(Including carry forward amount of 1.60 Cr from previous year.)
b) Amount unspent if any : 2.14 Cr
c) Manner in which the amount spent during the financial year: Enclosed at Annexure-I.
6. In case the Company has failed to spend the two percent of the average net profit of the last
three financial years or any part thereof, the Company shall provide the reasons for not
spending the amount in its Board Report.
In view of the losses sustained in the last three years, the company is not statutorily obligated to spend
any amount towards CSR projects/programmes/activities i.e. to earmark 2% of the average net profit in
the immediately preceding three years. However, to sustain the momentum of undertaken CSR projects/
programmes/activities, which have significant social & economic impact in respect of the beneficiaries
and to continue to build a positive corporate image, an allocation of 10.10 Cr (including the carry
forward amount) was made for the FY 2019-20 by the Board of RINL.
7. A Responsibility Statement of the CSR Committee that the implementation and monitoring of
CSR Policy, is in compliance with CSR Objectives and Policy of the Company.
At RINL, the implementation and monitoring of CSR activities has been carried out in compliance with
CSR objectives & Corporate Social Responsibility & Sustainability Policy (CSR &S) of the Company and
relevant provisions of the Companies Act, 2013 and rules made thereunder.

Sd/- Sd/-
(Shri P K Rath) (Shri Ashwini Mehra)
(Chairman cum Managing Director) (Chairman, CSR Committee)

53
 Annexure - I to Annual Report on CSR Activities

CSR- DETAILS OF AMOUNT SPENT DURING FINANCIAL YEAR 2019-20

Amount
spent on
Amount the
Project or Outlay Projects or Cumulative
Programs (Budget) Programs expenditure Amount spent
Sector in
(1) Local Area or Project Sub-Heads upto Direct or
CSR Project or which the : (1) Direct
S. or Reporting through
other Area expenditure
No Activity Identified Project is Program on projects period
(2) Specify State, Implementing
covered ( in or ( in
District where Agency
Lakhs) Programs. Lakhs)
Project (2)
undertaken Overheads
( in Lakhs)
1 2 3 4 5 6 7 8
Sector : Education

1 Providing quality Education 1. Local Area 300.00 300.00 300.00 Directly by RINL
2. (i) Visakhapatnam Dt.,
education to
Andhra Pradesh
children belonging to (ii) Krishna Dt.,
BPL families of Andhra Pradesh
surrounding villages (iii) Khammam Dt.,
Telangana
of Plant & Mines.

2 Support to Education 1. Local Area 54.96 44.77 44.77 Arunodaya

Arunodaya Special 2. Visakhapatnam Dt., Special School
school for providing Andhra Pradesh Educational
free education to Society,
differently abled Ukkunagaram,
children Visakhapatnam
3 Providing primary Education 1. Local & Non-Local 68.00 38.99 54.99 1. Ekalavya
education to 2. Visakhapatnam Dt., Foundation,
children belonging to (18-19 Hyderabad
Andhra Pradesh
slum areas through 3. YSR Kadapa Dt, =16.00)
2. Pratham
'Akshaya Vidya' Andhra Pradesh
Education
Program and 4. Hyderabad,
Foundation,
conducting adult Telangana
Hyd
literacy programmes

4 Providing Midday Akshaya Patra

Education 1. Local Area 40.46 26.60 26.60
meals to School 2. i) Visakhapatnam Dt., Foundation
Children belonging Andhra Pradesh
to Below Poverty
Line and
Infrastructural
Support to Akshaya
Patra Foundation for
Mid-day meal
scheme in Govt.
Schools

54
 1 2 3 4 5 6 7 8

5 Providing educational Education 1. Local Area 47.85 37.35 59.50 1. Govt. ITI
2. (i) Visakhapatnam Dt., Gajuwaka
infrastructure like three (18-19
Andhra Pradesh 2. AP Samagra
=22.15)
seater dual desks and (ii) Raebareli Dt. Siksha
other furniture to Uttar Pradesh Abhiyaan
(iii) Srikakulam Dt., 3. District
various Govt. Schools/ Admn
Andhra Pradesh
institutions, Srikakulam
modernization of
schools/ welfare
hostels damaged
during Titli Cyclone

Sector : Health
1. Pan India & 125.00 120.56 120.56 1. PM
6 Contribution towards Health
Local Area CARES
Health Care through 2. (i) Pan India Fund, Govt.
PM CARES Fund to (ii) Visakhapatnam Dt., of India
Andhra Pradesh 2. AP Samagra
combat with COVID-19
Siksha
pandemic and Abiyaan
maintenance of Toilets
in Govt. Schools.

7 Rehabilitating children Health 1. Local Area 9.10 9.53 39.00 1. ALIMCO,

2. (i)Visakhapatnam Dt., Hyderabad
with hearing (18-19
Andhra Pradesh 2. Guru Deva
=29.47)
impairment by (ii) Vizianagaram Dt., Charitable
Cochlear implantation, Andhra Pradesh Trust,
(iii) Pan India. Vizianagaram
Providing artificial
limbs and assistive
devices to disable
persons

8 Promoting Health care Health 1. Local Area 117.88 101.98 101.98 1. Homibaba
2. i) Visakhapatnam Dt., Cancer
through screening for
Andhra Pradesh Hospital &
early detection of ii) Districts affected Research
cancer, financial in Odisha Centre
iii) Khammam Dist, 2. Divisional
support for medical
Telangana Railway Hospital,
infrastructure under Visakhapatnam
Ayushman Bharath, 3. Govt. of Odisha
4. Madharam
Fani Cyclone Relief,
Mines
medical camps

55
 1 2 3 4 5 6 7 8
Sector : Sanitation & Drinking Water
9 Drinking water Supply Sanitation & 1. Local Area 23.86 8.75 15.62 1. Greater
in RH Colonies of plant, 2. i) Visakhapatnam Dt., Visakha
Drinking (18-19
Andhra Pradesh Municipal
Installation of Water Water ii) East Godavari, =6.87) Corporation
purifiers Andhra Pradesh Visakhapatnam,
2. SVVS Swamy
temple,
Annavaram
Sector: Skill Development
10 Vocational training Skill 1. Local Area 37.93 21.23 40.88 1 NHFDC,
programs in RH Development 2.(i)Visakhapatnam Dt., New Delhi.
(18-19 2.Jan Shiksha
colonies and peripheral Andhra Pradesh
=19.65) Sansthan,
villages of Plant & Mines, (ii) Vizianagaram Dt,
Andhra Pradesh Visakhapatnam
Skill Development
3.The Leprosy
Program for People with Mission Trust
Disabilities of India(TLMTI)
(Divyangjan), and for 4.Skill
persons affected by Development
leprosy etc., Skill Institute,
Development through Visakhapatnam
Skill Development Centre,
Visakhapatnam
Sector: Women Empowerment & Senior Citizen Care

11 Manakosam Installation Women 1. Local Area & 93.50 57.01 127.51 1. The Commi-
Empowerment Non-Local area ssioner of
of CCTV camera (18-19
& Support to 2.i) Visakhapatnam Dt., Police,
system around plant for =70.50) Visakhapatnam
Senior Andhra Pradesh
improving women Citizens ii) Hapur Dt., UP City.
safety security 2. Saint
Adopting destitute. Hardayal
Education and
abandoned senior
Orphans
citizens by providing Welfare
food, shelter, cloth and Society.
medical care, and
activities concerning
society & communities
Sector: Environment

12 Block & Avenue Environment 1. Local Area 20.37 342.19 Directly by

23.69
Plantations in the 2. Visakhapatnam Dt., (14-15 RINL
Andhra Pradesh =67.91
identified areas of 15-16
Greater Visakha =113.62
16-17
Municipal Corporation =11.93
of Visakhapatnam 17-18
=90.02
under "Green Visakha" 18-19
project. =38.34)

56
 1 2 3 4 5 6 7 8
Sector: Sports
13 Activities for promotion Sports 1. Local Area 5.00 5.00 5.00 Directly by
of Sports including 2. i) Visakhapatnam Dt. RINL
Andhra Pradesh
Sports for Special
children
Sector : Rural Development
14 Activities concerning 1. Local Area & Non 50.47 1.39 81.86 1. CPWD
Rural
Society & Communities Development Local 2. Rural Engg
(17-18 Dept.
in and around the Plant, 2. i) Visakhapatnam Dt.,
=37.50 3. Mines Dept.
Andhra Pradesh
Mines and Forged 4. SMC/Gram
ii) Krishna Dt. AP 18-19
Wheel Plant. iii) Khammam Dt., =42.97 ) panchayat,
Telangana Aihar,
iv) Raebareli, Taudhakpur
Uttar Pradesh. villages,
Raebareli
Sector : Others

15 Impact assessment of Others 1. Local Area 12.30 2.73 4.79 1. Andhra

2. Visakhapatnam Dt., University
Projects & Need (18-19
Andhra Pradesh Visakhapatnam
assessment surveys =2.06) 2. NIT,
etc. Rourkela
Grand Total 1010.00 796.26 1365.25
Note: There are no 'Overheads' on the 'Amount spent' (col. (6) above).

57
 Annexure - VI to Directors’ Report
Form No. MGT-9
EXTRACT OF ANNUAL RETURN
As on the financial year ended on 31-03-2020
[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Companies
(Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:

i) CIN : U27109AP1982GOI003404
ii) Registration Date : 18-02-1982
iii) Name of the Company : RASHTRIYA ISPAT NIGAM LIMITED (RINL)
iv) Category : Company limited by shares
v) Sub- Category of the Company : Union Government Company
vi) Address of the Registered office : Administrative Building,
and contact details RASHTRIYA ISPAT NIGAM LIMITED (RINL)
Visakhapatnam Steel Plant (VSP)
Visakhapatnam - 530031, Andhra Pradesh, India
Tel: 0891 - 2518249; Fax: 0891 - 2518249
E-mail: jagadeeshm@vizagsteel.com;
vii) Whether listed company : No
viii) Name, Address and Contact details of
Registrar and Transfer Agent, if any : KFIN Technologies Private Limited
Selenium Tower - B, Plot No.31 & 32, Financial
District, Nanakramguda, Serilingampally,
Hyderabad-500 032, State of Telangana, India.
Tel: 040-44655000; 040-23431551
Email: murali.m@karvy.com

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10% or more of the total turnover of the company shall be
stated:-
Name and Description of NIC Code of the Product/service % to total turnover
main products / services of the company

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

58
 III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Holding/ % of Applicable
Sl. Name and Address CIN/GLN Subsidiary/ shares Section of the
No. of the Company Associate held Companies
Act, 2013

1 Eastern Investments Ltd. (EIL) L65993WB1927GOI005532 Subsidiary 51 2(87)(ii)

2 The Bisra Stone Lime Company Ltd. (BSLC) L14100WB1910GOI001996 Subsidiary 50.27* 2(87)(ii)

3 The Orissa Minerals Development

Company Limited (OMDC). L51430WB1918GOI003026 Subsidiary 50.01 ** 2(87)(ii)

Address of the above Companies : "Sourav Abasan", 2nd Floor, AG-104, Sector-II,

Salt Lake, Kolkata, West Bengal - 700091

4 RINMOIL Ferro Alloys Private Limited

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

Sector-II, Ukkunagaram,

Visakhapatnam-530031

5 International Coal Ventures

Private Limited (ICVL),

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

(Core-2), North Tower,

Laxmi Nagar District Centre,

Delhi -110092

6 RINL Powergrid TLT Pvt. Ltd. (RPTPL)

Room No.31, "B" Block,

Project Office, U28121AP2015PTC097211 Joint Venture 50 2(6)

Visakhapatnam Steel Plant,

Visakhapatnam -530031

* RINL(0.21%), EIL(50.01%) and Birds Jute & Exports Limited(0.05%) collectively holds 50.27 % of Shareholding
of BSLC viz.
** EIL holds 50.01% of shareholding of OMDC.;

59
 IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i) Category-wise Shareholding
No. of Shares held at the beginning of the year No. of Shares held at the end of the year
Category of Shareholders % Change
(01.04.2019) (31.03.2020)
during the
Demat Physical Total % of Total Demat Physical Total % of Total
Shares Shares year
A. Promoters
(1) Indian
a) Individual/
HUF 0 800 800 0.000016 0 800 800 0.000016 0
b) Central Govt. 4889845400 0 4889845400 99.999984 4889845400 0 4889845400 99.999984 0
c) State Govt(s) 0 0 0 0 0 0 0 0 0
d) Bodies Corp. 0 0 0 0 0 0 0 0 0
e) Banks / FI 0 0 0 0 0 0 0 0 0
f) Any Other…. 0 0 0 0 0 0 0 0 0
Sub-total (A)(1) 4889845400 800 4889846200 100 4889845400 800 4889846200 100 0
(2) Foreign
a) NRIs- Individuals 0 0 0 0 0 0 0 0 0
b) Other- Individuals 0 0 0 0 0 0 0 0 0
c) Bodies Corp. 0 0 0 0 0 0 0 0 0
d) Banks / FI 0 0 0 0 0 0 0 0 0
e) Any Other…. 0 0 0 0 0 0 0 0 0
Sub-total (A)(2) 0 0 0 0 0 0 0 0 0
Total Shareholding of 4889845400 800 4889846200 100 4889845400 800 4889846200 100 0
Promoter (A)= (A)(1)+(A)(2)
B. Public Shareholding
1. Institutions
a) Mutual Funds 0 0 0 0 0 0 0 0 0
b) Banks/ FI 0 0 0 0 0 0 0 0 0
c) Central Govt. 0 0 0 0 0 0 0 0 0
d) State Govt (s) 0 0 0 0 0 0 0 0 0
e) Venture Capital Funds 0 0 0 0 0 0 0 0 0
f) Insurance Companies 0 0 0 0 0 0 0 0 0
g) FIIs 0 0 0 0 0 0 0 0 0
h) Foreign Venture Capital 0 0 0 0 0 0 0 0 0
i) Funds Others(specify) 0 0 0 0 0 0 0 0 0

60
Sub-total (B)(1) 0 0 0 0 0 0 0 0 0
61
2. Non-Institutions
a) Bodies Corp 0 0 0 0 0 0 0 0 0
i) Indian 0 0 0 0 0 0 0 0 0
ii) Overseas 0 0 0 0 0 0 0 0 0
b) Individuals 0 0 0 0 0 0 0 0 0
individual shareholders holding nominal share capital
(i) upto 1 Lakh 0 0 0 0 0 0 0 0 0
(ii) excess of
1 lakh. 0 0 0 0 0 0 0 0 0
c) Others (specify) 0 0 0 0 0 0 0 0 0
Sub-total (B)(2) 0 0 0 0 0 0 0 0 0
Total Public Shareholding 0 0 0 0 0 0 0 0 0
(B)= (B)(1)+ (B)(2)
C. Shares held by Custodian
for GDRs & ADRs 0 0 0 0 0 0 0 0 0
Grand Total (A+B+C) 4889845400 800 4889846200 100 4889845400 800 4889846200 100 0
ii) Shareholding of Promoters
Shareholding at the beginning of the year Shareholding at the end of the year
Sl Shareholder’s (01.04.2019) (31.03.2020)
% change in
No Name % of total % of Shares Pledged % of total % of Shares pledged share holding
No. of Shares shares of the / encumbered to No. of Shares shares of the / encumbered during the year
company total shares company to total shares
1. President of India 4889845400 99.999984 - 4889845400 99.999984 - -
Nominees of the President of India
2. Shri P.Raychaudhury 200 0.000004 - - - - (0.000004)
3. Shri Saraswati Prasad 100 0.000002 - 100 0.000002 - -
4. Shri K C Das 100 0.000002 - 100 0.000002 - -
5. Ms. Ruchika
Chaudhry Govil 100 0.000002 - 100 0.000002 - -
6. Shri P K Rath 200 0.000004 - 200 0.000004 - -
7. Shri V V Venu Gopal Rao 100 0.000002 - 100 0.000002 - -
8. Shri D K Mohanty - - - 100 0.000002 - 0.000002
9. Shri K K Ghosh - - - 100 0.000002 - 0.000002
Total 4889846200 100.00 - 4889846200 100.00 - -
iii) Change in Promoter's Shareholding (please specify, if there is no change) - No Change
Shareholding at the beginning Cumulative Shareholding
of the year during the year
Sl. Particulars
No. of shares % of total shares No. of shares % of total shares
No.
of the company of the company
1. At the beginning of the year
Date wise Increase / Decrease in
Promoters Shareholding during the There is no change in the Promoters Shareholding.
year specifying the reasons for President of India is holding 100% shareholding.
increase /decrease (e.g. allotment /
transfer / bonus / sweat equity etc) :
At the End of the year

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
Shareholding at the beginning Cumulative Shareholding
Sl. Particulars of the year during the year
No. No. of shares % of total shares No. of shares % of total shares
of the company of the company
1. At the beginning of the year
Date wise Increase / Decrease in
Shareholding during the year specifying President of India is holding 100% shareholding and
the reasons for increase / decrease other individuals are holding shares for and on behalf
(e.g. allotment / transfer / bonus / of President of India only.
sweat equity etc):
At the End of the year ( or on the date
of separation, if separated during the
year)
v) Shareholding of Directors and Key Managerial Personnel:
Shareholding at the beginning Cumulative Shareholding
Sl. Particulars of the year during the year
No. No. of shares % of total shares No. of shares % of total shares
of the company of the company
1. Shri P K Rath
At the beginning of the year 200 0.000004 200 0.000004
Date wise Increase / Decrease in
Shareholding during the year specifying
the reasons for increase / decrease NIL
(e.g. allotment / transfer / bonus /
sweat equity etc)
At the End of the year
( or on the date of separation,
if separated during the year) 200 0.000004

62
 2. Shri P. RAYCHAUDHURY
At the beginning of the year 200 0.000004 - -
Date wise Increase / Decrease in Shareholding
during the year specifying the reasons for increase /
decrease (e.g. allotment / transfer / bonus / sweat
equity etc): 200 Shares transferred to Shri Deb
Kalyan Mohanty on 09.09.2019 200 0.000004 - -
At the End of the year (or on the date of separation,
if separated during the year) - - - 0
3. Shri K C DAS
At the beginning of the year 100 0.000002 100 0.00002
Date wise Increase / Decrease in Shareholding
during the year specifying the reasons for increase/
NIL
decrease (e.g. allotment / transfer / bonus /
sweat equity etc):
At the End of the year (or on the date of separation,
if separated during the year) 100 0.000002
4. Shri V V Venu Gopal Rao
At the beginning of the year 100 0.000002 100 0.00002
Date wise Increase / Decrease in Shareholding
during the year specifying the reasons for increase/
NIL
decrease (e.g. allotment / transfer / bonus / sweat
equity etc):
At the End of the year (or on the date of separation,
if separated during the year) 100 0.000002
5. Shri D K Mohanty
At the beginning of the year - - - -
Date wise Increase / Decrease in Shareholding
during the year specifying the reasons for increase /
decrease (e.g. allotment / transfer / bonus /
sweat equity etc):
200 Shares received from Shri P Raychaudhury on
09.09.2019 out of which 100 shares were
transferred to Shri K K Ghosh on 09.10.2019 200 0.000004 100 0.000002
At the End of the year (or on the date of separation,
if separated during the year) 100 0.000002
6. Shri K K Ghosh
At the beginning of the year - - - -
Date wise Increase / Decrease in Shareholding
during the year specifying the reasons for increase /
decrease (e.g. allotment / transfer / bonus /
sweat equity etc): 100 Shares received from
Shri D K Mohanty on 09.10.2019 100 0.000002 100 0.000002
At the End of the year (or on the date of separation,
if separated during the year) 100 0.000002

63
Shareholding of Directors
1. Shri SARASWATI PRASAD
At the beginning of the year 100 0.000002 100 0.000002
Date wise Increase / Decrease in Shareholding
during the year specifying the reasons for
NIL
increase / decrease (e.g. allotment / transfer /
bonus / sweat equity etc):
At the End of the year ( or on the date of
separation, if separated during the year) 100 0.000002
2. Ms. RUCHIKA CHAUDHRY GOVIL
At the beginning of the year 100 0.000002 100 0.000002
Date wise Increase / Decrease in Shareholding
during the year specifying the reasons for increase /
decrease (e.g. allotment / transfer / bonus / NIL
sweat equity etc):
At the End of the year ( or on the date of
separation, if separated during the year) 100 0.000002

Note : Above Individual shareholders are holding shares for and on behalf of President of India.
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment ( in Crores)
Particulars Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 14975.63 4615.96 NIL 19591.58
ii) Interest due but not paid 0 0 NIL 0
iii) Interest accrued but not due 7.19 0.20 NIL 7.38
Total (i+ii+iii) 14982.81 4616.15 NIL 19598.97
Change in indebtedness during the financial year
• Addition 2066.58 189.37 NIL 2255.95
• Reduction 0 0 NIL 0
Net Change 2066.58 189.37 NIL 2255.95
Indebtedness at the end of the financial year
i) Principal Amount 16951.17 4789.73 NIL 21740.90
ii) Interest due but not paid 0 0 NIL 0
iii) Interest accrued but not due 98.22 15.79 NIL 114.01
Total (i+ii+iii) 17049.39 4805.52 NIL 21854.91

Note :Indebtedness includes borrowings from Banks & Commercial Papers and it includes both Working Capital & Capex Borrowings.

64
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole-time Directors and/or Manager:
Sl Particulars of Name of MD / WTD / Manager (Shri) (Amount in )
No Remuneration P.K Rath Kishore V V Venu DK KK AK P.Ray- Total
Chandra Gopal Mohanty Ghosh Saxena chaudhury* (in )
Das Rao
1 Gross salary
(a) Salary as per provisions
contained in section 17(1)
of the Income Tax Act,1961 3119271 2994280 4389939 2052480 1638561 1461245 5168541 22293946
(b) Value of perquisites u/s
17(2) Income Tax Act,1961 368985 373409 442492 9758 190799 31203 542068 1976534
(c) Profits in lieu of salary u/s
17(3) Income Tax Act,1961 0 0 0 0 0 0 0 0
2 Stock Option 0 0 0 0 0 0 0 0
3 Sweat Equity 0 0 0 0 0 0 0 0
4 Commission 0
- as % of profit 0 0 0 0 0 0 0 0
- Others, specify… 0 0 0 0 0 0 0 0
5 Others, please specify 0 0 0 0 0 0 0 0
Total (A) 3488256 3367689 4832431 2062238 1829360 1492448 5710608 24270480
Note: The period of remuneration in respect of following directors is as follows:
Shri D.K.Mohanty from 01.08.2019 to 31.03.2020; Shri K.K. Ghosh from 05.09.2019 to 31.03.2020; Shri A.K.Saxena from 17.10.2019 to 31.03.2020;
*The actual period of service was up to July'2019. Remuneration include Retirement benefits such as leave encashment etc.

B. Remuneration to other Directors: (Amount in )

Name of Directors (Shri/Smt/Dr.)
Sl. Particulars of SK Sunil Ashwini Sita Total
No. Remuneration Mishra Gupta Mehra Sinha Amount

1 Independent Directors
(a) Fee for attending Board/
Committee meetings 720000 700000 900000 160000 2480000
(b) Commission 0 0 0 0 0
(c) Others, 0 0 0 0 0
Total (B) (1) 720000 700000 900000 160000 2480000
2 Other Non-Executive Directors
(a) Fee for attending Board/
Committee meetings 0 0 0 0
(b) Commission 0 0 0 0
(c) Others, 0 0 0 0
Total (B) (2) 0 0 0 0
Total (B) (1) + (B)(2)
Total Managerial
Remuneration 720000 700000 900000 160000 2480000
Overall Ceiling as per the Act Not Applicable as Section 197 of the Companies Act, 2013 shall not apply to Govt. Companies.

65
C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD

Key Managerial Personnel (Shri.) Total

Company CFO* Amount

Sl. CEO ^ Secretary ( )
Particulars of Remuneration
No. M Jagadeesh-
wara Rao

Gross salary:

(a) Salary as per provisions contained in section

17(1) of the Income Tax Act,1961 0 1469629 0 1469629

As As
(b) Value of perquisites u/s 17(2) Income Tax Act,1961 0 17820 0 17820
per per
(c) Profits in lieu of salary u/s 17(3) Income Tax Act,1961 0 0 0 0
Table Table
2 Stock Option 0 0 0 0
VI(A) VI(A)
3 Sweat Equity 0 0 0 0

4 Commission: - As % of profit 0 0 0 0

- Others, specify…………… 0 0 0 0

TOTAL 0 1487449 0 1487449

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

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

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

Section of the Brief Details of Penalty / Authority [RD / Appeal made,
Type Companies Act Description Punishment/ Compounding NCLT/ COURT] if any (give
fees imposed details)

A.COMPANY
Penalty
Punishment NIL

Compounding

B.DIRECTORS
Penalty
Punishment NIL

Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment NIL

Compounding
****

66
 Annexure -VII to Directors’ Report
REPORT ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION,
FOREIGN EXCHANGE EARNINGS AND OUTGO
(Information in accordance with the provisions of Section 134(3)(m) of the Companies Act, 2013
read with Rule 8 of the Companies (Accounts) Rules, 2014.)
A) CONSERVATION OF ENERGY Various measures taken for reduction in specific
(i) The steps taken or impact on Conservation of energy consumption during the year 2019-20:-
energy
i) Verification CDM project titled "Top Pressure
a) Sp. Energy Consumption (Gcal/tCS) & CO2 Recovery Turbine (TRT) of BF-3" has been
Emissions(Tons/tCS): completed. UNFCCC issued 58,871 CERs to RINL.
Year SEC (Gcal/tCS) CO 2emissions (Tons/tCS) (ii) RINL complied PAT 2nd cycle targets of Bureau
2018-19 5.98 2.59 of Energy Efficiency (BEE), Ministry of Power. The
M&V agency after carrying out M&V Audit and
2019-20 6.02 2.62
scrutiny by BEE to issue 1,29,907 Energy Saving
*SEC as per PM's trophy method Certificates (Escerts) to RINL.
b) Energy Conservation measures taken up at c) Energy conservation plans under progress:
RINL during the years 2019-20. "Stabilization of Pulverized coal injection in BF-2".
• Improvement in gross coke yield at Coke Oven d) (i) Waste Heat Recovery Systems:
from 72.88% to 73.02%.
Boiler Reduction
• Reduction in Sp. Heat Consumption at Sinter Plant Energy
Energy Saving Coal of CO2
from 21 Mcal/tGS to 19 Mcal/tGS. facility Units Reco-
Saved emission
• Reduction in Fuel Rate in Blast Furnace from vered
(tons) (tons)
541.6 Kg/tHM to 538.9 Kg/tHM
Total volume of LD
• Increasing in Pulverized Coal Injection (PCI) in Blast Gas recovered at MN
375.36 221087 347107
Furnace from 59.2 Kg/tHM to 97.2 Kg/tHM. BF-3 LD Gas recovery Cum
PCI increased from 95.4 kg/tHM to 112 kg/tHM. BF- plant
2 PCI increased from 27.8 kg/tHM to 107.2 Kg/tHM. Total power
• Improvement in LD gas yield at SMS-1 from 104 generated at Back
Ncum/tCS to 109 Ncum/tCS Pressure Turbine MWh 198585 158868 249423
Station (BPTS) &
• Reduction in Sp. Heat Consumption at SBM from COB4 turbine &
302 Mcal/tIB to 287 Mcal/tIB. COB5 turbine
• Reduction in Sp. Heat Consumption at WRM-1 Total power
from 250 Mcal/tIB to 248 Mcal/tIB. generated at Top MWh
Recovery Turbine 89263 71410 112114
• Reduction in Sp. Heat Consumption at WRM-2
and Gas
from 265 Mcal/tIB to 260 Mcal/tIB. Expansion Turbine
• Reduction in Sp. Heat Consumption at CRMP-2 Station (GETs)
from 938 Mcal/tGL to 902 Mcal/tGL. Total power
• Reduction in Sp. Power Consumption at CPP-2 generated from
Waste heat MWh 1357 1086 1704
from 27.73 Mcal/tS to 25.24 Mcal/tS.
recovery of Sinter
• Improvement in Power Generation at GETs from plant straight line
1.07 MW to 3.37 MW cooler (NEDO).
• Improvement in Power Generation at TRT-BF-3 (MNCum-Million Normal Cubic Meters, MWh-Mega
from 5.39 MW to 6.80 MW Watt hours)
67
 (ii) Usage of By-product gases in Thermal a) UNFCCC issued 70516 CERs for Verification
Power Plant of CDM project titled "Power Generation from
Cooling of Coke in Coke Dry Cooling Plant of
Boiler Reduction
Name of Fuel CO Battery-4 for the Period: 13th Aug' 2014 to
Coal of CO2
used in TPP Units Value Saved 12th Aug' 2015.
emission
(tons) (tons) b) UNFCCC issued 58,871 CERs for Verification
of project titled "Top pressure Recovery
Coke Oven Gas MNCum 436 608250 954953 Turbine (TRT) of BF-3" for the period of 23rd
BF gas MNCum 3987 1081828 1698469 March' 2014 to 31st Jan' 2017.

e) Awards: c) The CDM project titled "Waste heat recovery

from flue gases of BF 3 stoves for pre heating
(i) RINL has been awarded "National Energy of Air & Gas "was registered with UNFCCC with
Conservation Award-2019" first prize for the effect from 26 th Jan' 2015. The Verification
year 2018-19 by Bureau of Energy Efficiency, process under progress.
Ministry of Power.
g) RINL observed Energy Conservation Week from
(ii) RINL has been awarded "National Energy 7th Dec' 2019 to 14 th Dec' 2019. Organized
Leader" Award for consecutively winning" various competitions (Quiz, Slogan, Poster
Excellent Energy Efficient unit award" for the competition and best Departmental Energy
year 2017, 2018 & 2019 at Hyderabad during Team, Innovative Energy Conservation Project)
20 th National Competition for Excellence in to increase awareness on Energy Conservation
Energy Management-2019. for employees as well as school children.
Energy Management Department (EMD)
f) Clean Development Mechanism (CDM): employees organized Energy Conservation
The Progress of CDM projects is as given Road Show at Technical Training Institute on
below:- 14-12-2019 to commemorate National Energy
Conservation Day. Employees of EMD
i) Status of registration of the projects: displayed placards depicting Energy
a) The CDM project titled "Top pressure Recovery Conservation and Energy Saving themes.
Turbine (TRT) of BF-3" was registered with (ii) The steps taken by the company for
UNFCCC with effect from 23rd April 2014. utilising alternate sources of energy
b) The CDM project titled "Power Generation from
RINLhas installed 5MW ground mounted solar
Cooling of Coke in Coke Dry Cooling Plant of power PV plant in December' 2016.
CO Battery-4" was registered with UNFCCC
5 MW Solar Power PV Plant has generated 7646
with effect from 13th August 2014. MWH of Solar Energy during year 2019-20
c) The CDM project titled "Waste heat recovery Reduction
Unit Units Value
from flue gases of BF 3 stoves for pre heating of CO2
of Air & Gas "was registered with UNFCCC with emission (tons)
effect from 26th Jan' 2015.
Solar Power MWh 7646 9603
ii) Status of Validation of the projects: Plant Generation
The CDM project titled "Electricity Generation
RINL also identified 3 buildings for installing
of 120 MW by using waste BF gas" is positively Roof top solar PV plants to generate solar
validated and recommended for registration. power from roof top installations.
Processing for registration fee is deferred due
to depressed market conditions of CER
markets.
iii) Status of verification of the projects:

68
(iii) The Capital Investment on Energy Conservation Equipments: Nil
B) TECHNOLOGY ABSORPTION the production volume and also to improve the
(i) The efforts made towards technology quality or products and to meet market
absorption. requirements. In order to achieve the objective
RINL projects are implemented with the latest of absorption of technology, the following are
technology as on that date. The effort put in being incorporated by RINL.
implementing the latest technologies has put
Holding of workshops for exchange of
RINL in eminent position in Indian Steel knowledge.
Industry. The absorption of the technology is
Undertaking study tours to other Steel Plants
done in the following ways: in India as well as abroad.
(a) The equipment and systems already existing
Inviting Consultants for technology suppliers for
are being modified for improving quality of imparting in site of latest technologies
product, efficiency and the equipment available.
availability.
Attending Seminars and Conferences.
(b) The technological units are revamped for
Going through the articles etc. published.
upgrading by major capital repairs with
Collaboration with the professional
improving technologies. organizations.
(c) Plant Expansion is being extended to increase
(ii) The benefits derived like product improvement, cost reduction, product development or import
substitution
a) In recent times, the major units listed below are implemented as part of Expansion and Modernization of
the existing units.
1. Units implemented as part of Expansion:
Area Major Unit Technology Benefits
Sinter New Sinter Circular cooler and Multi slit burners Energy efficiency
Making Plant-3 Reduction in energy consumption and
Waste heat recovery from sinter cooler
power generation
Iron Profilometer Improved process control
New Blast
Making Furnace-3 Copper staves in high heat zones &
Better campaign life
hearth bottom cooling
Pulverized Coal Injection Reduced coke consumption & improved
Oxygen enrichment Productivity

New LD Reduced consumption of Ferro Alloys,

Steel Combined blowing Better Yield & Quality
Converter
Making
Secondary fume extraction system Cleaner Environment
Contour & bath level measurement Measurement of refractory lining
New Auto mould level control Reduction in breakouts & improved Productivity.
CCM
Electro Magnetic Stirrer Cleaner and homogeneous steel
100% billet casting Energy saving
Steel Melt RH Degasser Low Hydrogen Steel
Shop -
Secondary Twin Ladle Furnace. Increase in productivity, Lesser
Metallurgy investment/space compared to two
single ladle furnaces.

69
 Area Major Unit Technology Benefits

Mills Wire Rod High speed WRM Increased productivity

Mill-2 (105-110 m/s)
Integration of Furnace Better Fuel Optimization
Control with Mill Control
Special Bar Mill 20-45mm size in straight & coil Reduced wastage for end user
Free size rolling Customized sizes with tolerance of +/-
0.1 mm
Structural Mill High speed roughing stands to produce Increased productivity
75-175 mm structurals
Power Power Plant-2 Surplus BF Gas fired boiler Use of surplus BF gas and improved
Plant efficiency of power generation
CRMP CRMP- 2 Vertical shaft kiln More Productivity, Low maintenance
cost and better environmental controls
2. Units Revamped
Sinter Sinter Plant-1 Waste heat recovery from Sinter cooler Reduced in energy consumption
Making and Energy efficient ignition furnace
Closed circuit coke crushing Reduced Specific Coke Consumption
Iron Blast Copper staves in high heat Better campaign life, reduction in
Making Furnace-1&2 zones and Hearth bottom Refractory and increased volume
cooling with water
Pulverized coal injection Reduced coke consumption & improved
Oxygen enrichment productivity.
Steel LD Converters Combined blowing Reduced consumption of Ferro Alloys.
Making Improvement in productivity. Better Yield
and Quality.
Secondary fume extraction Cleaner Environment and Cleaner steel.

3. RESEARCH & DEVELOPMENT (R&D) fasteners, dash panel, safety bars around
seats, door guard beams, inner B-pillar
(i) Specific Areas in which R&D carried out by
reinforcements, bumper reinforcements, etc.
the company
Under this collaborative project, eleven heats
Research & Development in RINL is mainly of Boron steel grades (10B21 and 15B25) and
doing projects in the areas of process eleven heats of CO2 grades (VIZAG-CO2) were
improvement, environment protection, waste made in SMS-2 and rolled in WRM-2. Boron
management, cost reduction, new product grades were rolled in 8, 12, 16 mm plain and
development and new technology development. CO 2 grades were rolled in 5.5 mm plain.
(ii) Benefits derived as a result of the above Customer feedback from all the regions is
R&D positive for all these heats. Introduction of this
grade aims to have a better NSR and will help
(a) Development of Boron and CO 2 Steel
in capturing the market and diversification of
grades
product portfolio in RINL.
Boron steel grades are widely used in
automobile applications like high strength

70
(b) Study of De-phosphorization during parameters) performed as heat treatment
Steelmaking in SMS-1 process of blades used for cutting of STM rolled
products. As a result, smooth cutting of STM
Phosphorus control is one of the important
products and no welding was observed. Cracks
aspect of the primary steelmaking in LD
were also not formed in the blades.
Converter. If the phosphorus is not reduced to
the desired levels by the end of the blow, it may (iii) In case of imported technology (imported
affect the mechanical properties of finished during the last three years reckoned from
product. The grade diversion due to high the beginning of the financial year)
phosphorus is a serious concern for Steel
a) Details of the Technology imported;
Melting Shop. The main objective of this study
is to reduce the number of grade diversion and (i) PULVERISED COAL INJECTION (PCI):
off grades due to high Phosphorus (>=0.04%). About 90% of coking coal requirements are
Following the recommendations of the study, being met through imports. To reduce the coke
grade diversion/ rejection due to Phosphorus consumption, the pulverized coal injection
in the period of June' 2019 to Dec' 2019 is only technology has been imported from M/s. CERI,
0.4% (as compared to 2% in the year 2018-19). Republic of China. High grade pulverized non-
The successful implementation of the project coking coals with projected injection rate of
has led to a savings of 8.8 Crores in the 150-200 kgs/tonne of hot metal, with nitrogen
mentioned period. as injection media, has been envisaged for
(c) Feasibility study on usage of Ladle Furnace injection into blast furnace.
(LF) slag as a replacement to Synthetic Slag (ii) CONTINUOUS CASTING MACHINE NO.4 (CCM):
Synthetic Slag is used as Ladle Flux for Continuous Casting Machine No.4 is
accelerating the refining reactions at SMS. As implemented with high radius of casting for the
LF slag has considerable amount of CaO (45- first time in India. The high radius of casting
55%) and Al2O3 (18-22%), it can be used as allows bigger size rounds and blooms to be cast
replacement to synthetic slags. LF slag in the machine. Rounds of upto 510mm dia can
mineralogy is also compatible with CaO-Al2O3 be cast in this CCM.
based synthetic slags. This project will help in
(iii) FORGED WHEEL PLANT (FWP) :
solid waste utilization, reduction in environment
pollution and has a saving potential of about The state of the art Forged Wheel Plant with
4.4 Cr./annum considering 25% replacement. high degree of Automation is being installed by
RINL at the Modern Coach Factory premises
(d) Identifying causes for welding of rolled
of Railways at Lalganj, Raibareli, UP. This facility
product in STM of VSP
will meet the requirement of forged rail wheels
Structural Mill (STM) has provision of disc saw for loco motives and high speed trains
which cuts the rolled products into the required substituting wheels being imported by Railways
length. During cutting process, these touching hitherto. The commissioning is getting delayed
bars especially I-beam and rounds are getting due to various restrictions to prevent the spread
welded at the point of contact. Welding of of COVID-19 pandemic. The facility is likely to
product obstructs the batching operation and be commissioned in Oct, 2020, subject to
increases the cycle time. This was leading to availability of required foreign supervisors at
increase in downtime and reduced productivity site by the first week of Sept. 2020.
of STM. Following the recommendations of the
project, induction hardening (with modified
71
b) The year of import - PCI in the year 2015-16 (Pkg.003) of COB # 5 project, to extract
and CCM-4 is completed in 2016-17. elemental Sulphur from the raw coke oven
gases produced in coke oven battery no.5.
c) Whether the technology has been fully
absorbed - Installed and commissioned. Being b) The coke oven gas exhausters (two nos.) are
used as per requirement and feasibility. imported from CZECH Republic and being
installed in the new Coal Chemicals Plant to
d) If not fully absorbed, areas where
suck the gases generated in the new coke oven
absorption has not taken place, and the
battery no.5.
reasons thereof - Not Applicable.
c) One no. coke oven gas exhauster is being
Other Imports for information :
imported from Russia under the Augmentation
a) Turbo Blower-5 Project for augmenting the existing five
VSP decided to install Turbo Blower-5 for exhausters.
supplying cold blast to Blast Furnace -3 without d) Level II automation is being implemented in
any much interruption and loss of production. coke oven battery no.5. It has been imported
Turbo Blower-5 was ordered on BHEL wherein from M/s Giprokoks, Ukraine. The battery is
BHEL will supply the drive steam turbine & its likely to be commissioned with level II
auxiliaries and whereas Blower will be imported automation by end of September-2020 subject
from Man Diesel & Turbo SE, Germany by to availability of required foreign supervisors at
BHEL. site by the first week of Sept. 2020.

The Blower was supplied by Man Diesel & Turbo (iv) Expenditure on R&D :
SE & Turbo SE, Germany through BHEL which
Particulars in Cr
is of AG 100 / 14 R Type blower, horizontally
Capital 1.55
split axial compressor without intercooler. The
compressor has 14 axial stages followed by a Revenue/ recurring 19.34
final centrifugal stage (rotating diffuser). The Total 20.89
capacity control will be done by speed control Total R&D expenditure as a percentage
of turbine.
of total turnover 0.13 %
Turbo Blower-5 was connected to cold blast
header-3 in November-2017.
C) FOREIGN EXCHANGE EARNINGS AND OUTGO:
b) The year of import - 2016.
Particulars in Crores
c) Whether the technology being fully
absorbed - Yes, the technology has been fully Foreign Exchange Earnings 1486.53
absorbed. Foreign Exchange Outgo 6066.94

d) If not fully absorbed, areas where Includes value of imports of

absorption has not taken place, and the 6034.44 Crores
reasons thereof - Not Applicable. (Includes 107.55 Crores on
COB # 5 PROJECT Expansion activities / Capital Goods)

a) The CLAUS Technology is being imported and Expenditure in Foreign Currency 32.50
installed in the new Coal Chemicals Plant

72
 Annexure -VIII to Directors’ Report

73
74
75
76
77
78
 Enclosure to Directors’ Report

M. Bhaskara Rao & Co.

Chartered Accountants
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RASHTRIYA ISPAT NIGAM (“ICAI”) together with the ethical requirements that are
LIMITED relevant to our audit of the standalone financial
statements under the provisions of the Act and the
Report on the Audit of the Standalone Financial
Rules made thereunder, and we have fulfilled our other
Statements
ethical responsibilities in accordance with these
Opinion requirements and the Code of Ethics. We believe that
the audit evidence we have obtained is sufficient and
We have audited the accompanying standalone Ind
appropriate to provide a basis for our Audit opinion on
AS financial statements of Rashtriya Ispat Nigam
the Standalone Financial Statements.
Limited ("the Company"), which comprise the Balance
Sheet as at March 31, 2020 and the Statement of Profit Emphasis of Matter:
and Loss (including Other Comprehensive Income),
We draw attention to the following matters in Notes to
the Cash Flow Statement and the Statement of
the Standalone financial statements:
Changes in Equity for the year then ended, and a
summary of the significant accounting policies and 1) Note 3 (F), regarding an amount of 82.19
other explanatory information (hereinafter referred to Crores being stores and capital spares issued
as "the standalone financial statements"). and lying at various construction zones/ with
contractors and are grouped under Capital Work-
In our opinion and to the best of our information and
In Progress (C.W.I.P).
according to the explanations given to us, the aforesaid
standalone financial statements give the information 2) Note 7B (iii),regarding claims made by the
required by the Companies Act, 2013 ("the Act") in Company on Mahanadi Coal Fields Ltd (MCL)
the manner so required and give a true and fair view amounting to 5.44 Crores remaining unsettled
in conformity with the Indian Accounting Standards for more than 03 years for which no provision
prescribed under section 133 of the Act read with the has been made in the books of accounts as the
Companies (Indian Accounting Standards) Rules, claim is, in the opinion of the management,
2015, as amended, ("Ind AS") and other accounting tenable in terms of fuel supply agreement.
principles generally accepted in India, of the state of 3) Note No.41,
affairs of the Company as at March 31, 2020, the loss
a. Regarding the preparation of these financial
and total comprehensive income, changes in equity
statements under the Going Concern
and its cash flows for the year ended on that date.
assumption and the management's justification
Basis for Opinion in the said note for the appropriateness of the
We conducted our audit of the standalone financial said assumption in the light of the loss for the
statements in accordance with the Standards on year and other factors evident from the financial
Auditing (“SAs”) specified under section 143 (10) of statements.
the Act. Our responsibilities under those Standards b. Regarding the management's assessment of
are further described in the Auditor's Responsibilities impact on its assets and its business in general
for the Audit of the Standalone Financial Statements of the Company as at 31 March 2020, being
section of our report. We are independent of the considered unimpaired/ recoverable based on its
Company in accordance with the Code of Ethics issued internal and external sources of information and
by the Institute of Chartered Accountants of India estimates, and its judgments on implication

79
 expected to arise from COVID-19 pandemic, statements that give a true and fair view of the financial
which being an unprecedented event and the position, financial performance, total comprehensive
consequences of which are difficult to estimate, income, changes in equity and cash flows of the
and the actual outcome could vary from the said Company in accordance with the Ind AS and other
estimates. accounting principles generally accepted in India. This
responsibility also includes maintenance of adequate
Our opinion is not modified in respect of these matters.
accounting records in accordance with the provisions
Information Other than the Standalone Financial of the Act for safeguarding the assets of the Company
Statements and Auditor's Report Thereon and for preventing and detecting frauds and other
The Company's Board of Directors is responsible for irregularities; selection and application of appropriate
the preparation of the other information. The other accounting policies; making judgments and estimates
information comprises the information included in the that are reasonable and prudent; and design,
Management Discussion and Analysis, Board's Report implementation and maintenance of adequate internal
including Annexures to Board's Report, Business financial controls, that were operating effectively for
Responsibility Report, Corporate Governance and ensuring the accuracy and completeness of the
Shareholder's Information, but does not include the accounting records, relevant to the preparation and
standalone financial statements and our auditor's presentation of the standalone financial statements
report thereon. that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Our opinion on the standalone financial statements
does not cover the other information and we do not In preparing the standalone financial statements,
express any form of assurance conclusion thereon. management is responsible for assessing the
Company's ability to continue as a going concern,
In connection with our audit of the standalone financial
disclosing, as applicable, matters related to going
statements, our responsibility is to read the other
concern and using the going concern basis of
information and, in doing so, consider whether the
accounting unless management either intends to
other information is materially inconsistent with the
liquidate the Company or to cease operations, or has
standalone financial statements or our knowledge
no realistic alternative but to do so.
obtained during the course of our audit or otherwise
appears to be materially misstated. The Board of Directors are responsible for overseeing
the Company's financial reporting process.
If, based on the work we have performed, we conclude
that there is a material misstatement in the other Auditor's Responsibilities for the Audit of the
information, we are required to report that fact.The Standalone Financial Statements
said other information is expected to be made available Our objectives are to obtain reasonable assurance
to us after the date of this audit report and hence we about whether the standalone financial statements as
cannot for the purposes of this report come to any a whole are free from material misstatement, whether
conclusions thereon. When we read the other due to fraud or error, and to issue an auditor's report
information, when furnished to us, if we conclude that that includes our opinion. Reasonable assurance is a
there is a material misstatement therein, we are high level of assurance, but is not a guarantee that an
required to communicate the matter to those charged audit conducted in accordance with SAs will always
with governance and the shareholders. detect a material misstatement when it exists.
Management's Responsibility for the Standalone Misstatements can arise from fraud or error and are
Financial Statements considered material if, individually or in the aggregate,
they could reasonably be expected to influence the
The Company's Board of Directors is responsible for
economic decisions of users taken on the basis of these
the matters stated in section 134(5) of the Act with
standalone financial statements.
respect to the preparation of these standalone financial

80
 As part of an audit in accordance with SAs, we standalone financial statements represent the
exercise professional judgement and maintain underlying transactions and events in a manner
professional skepticism throughout the audit. We also: that achieves fair presentation.
l Identify and assess the risks of material We communicate with those charged with governance
misstatement of the standalone financial regarding, among other matters, the planned scope
statements, whether due to fraud or error, design and timing of the audit and significant audit findings,
and perform audit procedures responsive to those including any significant deficiencies in internal control
risks, and obtain audit evidence that is sufficient that we identify during our audit.
and appropriate to provide a basis for our opinion.
We also provide those charged with governance with
The risk of not detecting a material misstatement
a statement that we have complied with relevant ethical
resulting from fraud is higher than for one resulting
requirements regarding independence, and to
from error, as fraud may involve collusion, forgery,
communicate with them all relationships and other
intentional omissions, misrepresentations, or the
matters that may reasonably be thought to bear on
override of internal control.
our independence, and where applicable, related
l Obtain an understanding of internal financial safeguards.
controls relevant to the audit in order to design
Report on Other Legal and Regulatory
audit procedures that are appropriate in the
Requirements
circumstances. Under section 143(3)(i) of the Act,
we are also responsible for expressing our opinion 1. As required by the Companies (Auditor's Report)
on whether the Company has adequate internal Order, 2016 ("the Order"), issued by the Central
financial controls system in place and the operating Government of India in terms of Sub-Section (11)
effectiveness of such controls. of Section 143 of the Act, we give in the "Annexure
- A", a statement on the matters specified in
l Evaluate the appropriateness of accounting
paragraphs 3 and 4 of the Order, to the extent
policies used and the reasonableness of
applicable.
accounting estimates and related disclosures
made by management. 2. As required by Section 143 (3) of the Act, we report
l Conclude on the appropriateness of management's that:
use of the going concern basis of accounting and, a. We have sought and obtained all the information
based on the audit evidence obtained, whether a and explanations which to the best of our
material uncertainty exists related to events or knowledge and belief were necessary for the
conditions that may cast significant doubt on the purposes of our audit.
Company's ability to continue as a going concern.
b. In our opinion, proper books of account as required
If we conclude that a material uncertainty exists,
by law have been kept by the company so far as it
we are required to draw attention in our auditor's
appears from our examination of those books and
report to the related disclosures in the standalone
proper returns adequate for the purposes of our
financial statements or, if such disclosures are
audit have been received from the branches not
inadequate, to modify our opinion. Our conclusions
visited by us.
are based on the audit evidence obtained up to
the date of our auditor's report. However, future c. The Balance Sheet, the Statement of Profit and
events or conditions may cause the Company to Loss, the Cash Flow Statement and Statement of
cease to continue as a going concern. Changes in Equity dealt with by this Report are in
agreement with the books of account and with the
l Evaluate the overall presentation, structure and
returns received from the branches not visited by
content of the standalone financial statements,
us.
including the disclosures, and whether the

81
d. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. The provisions of Section 164 (2) of the Act are not applicable to the Government Companies vide notification
No. G.S.R.463 [E] dated 5th June, 2015 of Ministry of Corporate Affairs.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the
operating effectiveness of such controls, refer to "Annexure B" to this report.
g. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according
to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial
statements - Refer Note 39 to the Ind AS financial statements;
ii. the Company did not have any long-term contracts including derivative contracts for which there were any
material foreseeable losses; and
iii. There were no amounts which were required to be transferred to the Investor Education and Protection
Fund by the Company.
h. The Company, being a Government Company, is exempt from the provisions of Sec 197 of the Companies
Act 2013, pursuant to Notification no. GSR 463(E) dated 5th June 2015 issued by the Ministry of Corporate
Affairs, Government of India.
3. As required by section 143(5) of the Act, we give in "Annexure - C", a statement on the matters specified by the
Comptroller and Auditor General of India for the Company.

for M.Bhaskara Rao & Co.,

Chartered Accountants,
Firm Registration Number: 000459S

Sd/-
V.Raghunandan
Partner
Membership No: 026255
UDIN No. 20026255AAAAEF2390
Date: 24-07-2020
Place: Hyderabad

82
 Enclosure to Directors’ Report

M. Bhaskara Rao & Co.

Chartered Accountants

Annexure A to the Independent Auditors' Report respective records were not material in relation
(Referred to in paragraph 1 under 'Report on Other to the size of operations of the Company and
Legal and Regulatory Requirements' section of our the same have been properly dealt with in the
report of even date to the members of Rashtriya Ispat books of account.
Nigam Limited) (iii) According to the information and explanations
(i) In respect of its fixed assets: given to us, the Company has not granted any
(a) The Company has maintained proper records loans, secured or unsecured, to companies,
showing full particulars, including quantitative firms, Limited Liability Partnerships or other
details and situation of its fixed assets. parties covered in the Register maintained under
(b) A major portion of the fixed assets have been Section 189 of the Companies Act, 2013.
physically verified during the year by the Accordingly, reporting under clauses (a), (b) and
Management in accordance with a programme (c) of paragraph 3(iii) of the Order does not arise.
of verification, which, in our opinion, provides (iv) According to the information and explanations
for physical verification of all the fixed assets at furnished to us, the Company has not granted
reasonable intervals having regard to the size any loans, nor made any investments or given
of the Company and the nature of its assets. any guarantees or securities during the year to
According to the information and explanations any of the parties specified in Sections 185 and
given to us, the discrepancies noticed on such 186 of the Companies Act, 2013.
verification were not material and have been (v) In our opinion and according to the information
properly dealt with in the books of account. and explanations given to us, the Company has
(c) According to the information and explanations not accepted any deposits. Accordingly,
furnished to us, and based on our review, title reporting under provisions of paragraph 3(v) of
deeds of its immovable properties are held in the Order does not arise.
the name of the Company except in respect of (vi) We have broadly reviewed the cost records
land to the extent as stated in Note No.3 to maintained by the Company pursuant to the
standalone financial statements. Rules in force made by the Central Government
(ii) In respect of inventories: under sub-section (1) of Section 148 of the
(a) According to the information and explanations Companies Act, 2013, and are of the opinion
furnished to us, physical verification of that, prima facie, the prescribed cost records
inventories at plants and marketing offices has have been made and maintained. We have,
been conducted by the management at however, not made a detailed examination of
reasonable intervals during the year. In our the cost records with a view to determine whether
opinion, having regard to the nature of its they are accurate or complete.
business and location of its stocks, the frequency (vii) According to the information and explanations
of verification is reasonable. In certain cases given to us, in respect of statutory dues:
(Steel Scrap/ Iron Scrap) the stocks have been (a) The Company has been generally regular in
verified on the basis of visual survey/ estimates. depositing undisputed statutory dues, including
(b) Further, the discrepancies noticed on such Provident Fund, Employees' State Insurance,
verification, between the physical stocks and the Income-tax, Goods and Services Tax, Sales

83
 Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax, Cess and other material statutory dues
applicable to it with the appropriate authorities, and there were no amounts payable in respect of the
aforesaid undisputed statutory dues in arrears, as at March 31, 2020, for a period of more than six months
from the date they became payable.
(b) Details of dues of Income Tax, Sales Tax, Service Tax, Customs Duty, Excise Duty, Value Added Tax which
have not been deposited as on March 31, 2020 on account of dispute are as below:

Name of the Statute Nature of Dues Amount Forum where the

(in Crores) dispute is pending
Finance Act, Customs Excise duty, 3.45 Commissioner (Appeals)
& Excise Act Service Tax 76.06 CESTAT
and Cenvat
The Andhra Pradesh APGST 8.75 High Court
General Sales Tax Act 0.12 STAT
& C.S.T Act Sales Tax 1.05 STAT
988.91 High Court of Andhra Pradesh
AP VAT ACT,2005 VAT 4.17 STAT
0.77 ADC
Bihar VAT Act VAT 0.05 Joint Commissioner Taxes
(JCT)
Odisha Sales Tax Act Sales Tax 0.01 First Appellate Authority -
Bhubaneswar
West Bengal VAT Act Sales Tax 0.39 First Track Revision Bench
under WBCT
Maharashtra VAT Act Sales Tax 0.08 JCIT, Mumbai
WB Entry Tax Entry Tax 9.50 Kolkata High Court
Maharashtra State Act Market Committee Fee 2.01 Bombay High Court
TNVAT ACT 2006,
The CST ACT 1956 Sales tax 0.12 High Court, Chennai
Andhra Pradesh Entry Tax 8.66 High Court
0.57 STAT

(viii) According to the information and explanations Company during the year for the purposes for
given to us, the Company has not defaulted in which they were raised.
repayment of loans or borrowings to financial (x) To the best of our knowledge and according to
institutions, banks, government or from the information and explanations given to us, no
debenture holders. However on issue of circular fraud by the Company and no material fraud on
by RBI dated 27th March, 2020 on COVID-19 the Company by its officers or employees has
regulatory package, the company has availed been noticed or reported during the year.
of the option for a moratorium period for
repayment of borrowings as stated in Note 17E (xi) The Company, being a Government Company,
to the standalone financial statements. is exempt from the provisions of Sec 197 of the
Companies Act, 2013 pursuant to Notification no.
(ix) The Company has not raised moneys by way of GSR 463(E) dated 5th June 2015 issued by the
initial public offer or further public offer (including Ministry of Corporate Affairs, Government of
debt instruments). In our opinion and according India and hence reporting under clause (xi) of
to the information and explanations given to us, para 3 of the Order does not arise.
the term loans have been applied by the

84
(xii) The Company is not a Nidhi Company and hence persons connected with them and hence
reporting under clause (xii) of the CARO 2016 provisions of section 192 of the Companies Act,
is not applicable. 2013 are not applicable.
(xiii) In our opinion and according to the information (xvi) The Company is not required to be registered
and explanations given to us, the Company is in under section 45-IA of the Reserve Bank of India
compliance with Section 177 and 188 of the Act, 1934.
Companies Act, 2013 where applicable, for all
for M.Bhaskara Rao & Co.,
transactions with the related parties and the
details of related party transactions have been Chartered Accountants,
disclosed in the Standalone Ind AS Financial Firm Registration Number: 000459S
Statements as required by the applicable
accounting standards.
(xiv) During the year the Company has not made any
preferential allotment or private placement of Sd/-
shares or fully or partly convertible debentures
V.Raghunandan
and hence reporting under clause (xiv) of CARO
2016 is not applicable to the Company. Partner
(xv) In our opinion and according to the information Membership No: 026255
and explanations given to us, during the year UDIN No. 20026255AAAAEF2390
the Company has not entered into any non-cash
transactions with its directors or directors of its Date: 24-07-2020
holding, subsidiary or associate company or Place: Hyderabad
Annexure B to the Independent Auditors' report

Report on the Internal Financial Controls under Clause operating effectively for ensuring the orderly and
(i) of Sub-section 3 of Section 143 of the Companies efficient conduct of its business, including adherence
Act, 2013 ("the Act") to company's policies, the safeguarding of its assets,
We have audited the internal financial controls over the prevention and detection of frauds and errors, the
financial reporting of the Company as of March 31, accuracy and completeness of the accounting records,
2020 in conjunction with our audit of the standalone and the timely preparation of reliable financial
Ind AS financial statements of the Company for the information, as required under the Act.
year ended on that date. Auditors' Responsibility
Management's Responsibility for Internal Our responsibility is to express an opinion on the
Financial Controls Company's internal financial controls over financial
The Company's management is responsible for reporting based on our audit. We conducted our audit
establishing and maintaining internal financial controls in accordance with the Guidance Note on Audit of
based on the internal control over financial reporting Internal Financial Controls Over Financial Reporting
criteria established by the Company considering the (the "Guidance Note") and the Standards on Auditing,
essential components of internal control stated in the issued by ICAI and deemed to be prescribed under
Guidance Note on Audit of Internal Financial Controls section 143(10) of the Companies Act, 2013, to the
Over Financial Reporting issued by the Institute of extent applicable to an audit of internal financial
Chartered Accountants of India. These responsibilities controls, both applicable to an audit of Internal
include the design, implementation and maintenance Financial Controls and, both issued by the Institute of
of adequate internal financial controls that were Chartered Accountants of India. Those Standards and
the Guidance Note require that we comply with ethical

85
requirements and plan and perform the audit to obtain or disposition of the company's assets that could have
reasonable assurance about whether adequate a material effect on the financial statements.
internal financial controls over financial reporting were
Inherent Limitations of Internal Financial Controls
established and maintained and if such controls
Over Financial Reporting
operated effectively in all material respects.
Because of the inherent limitations of internal financial
Our audit involves performing procedures to obtain
controls over financial reporting, including the possibility
audit evidence about the adequacy of the internal
of collusion or improper management override of
financial controls system over financial reporting and
controls, material misstatements due to error or fraud
their operating effectiveness. Our audit of internal
may occur and not be detected. Also, projections of
financial controls over financial reporting included
any evaluation of the internal financial controls over
obtaining an understanding of internal financial controls
financial reporting to future periods are subject to the
over financial reporting, assessing the risk that a
risk that the internal financial control over financial
material weakness exists and testing and evaluating
reporting may become inadequate because of
the design and operating effectiveness of internal
changes in conditions, or that the degree of
control based on the assessed risk. The procedures
compliance with the policies or procedures may
selected depend on the auditor's judgement, including
deteriorate.
the assessment of the risks of material misstatement
of the standalone financial statements, whether due Opinion
to fraud or error. In our opinion, the Company has, in all material
We believe that the audit evidence we have obtained respects, an adequate internal financial controls
is sufficient and appropriate to provide a basis for our system over financial reporting and such internal
audit opinion on the Company's internal financial financial controls over financial reporting were operating
controls system over financial reporting. effectively as at March 31, 2020 based on the internal
control over financial reporting criteria established by
Meaning of Internal Financial Controls Over
the Company considering the essential components
Financial Reporting
of internal control stated in the Guidance Note on Audit
A company's internal financial control over financial of Internal Financial Controls Over Financial Reporting
reporting is a process designed to provide reasonable issued by the Institute of Chartered Accountants of
assurance regarding the reliability of financial reporting India.
and the preparation of financial statements for external
purposes in accordance with generally accepted
accounting principles. A company's internal financial for M.Bhaskara Rao & Co.,
control over financial reporting includes those policies Chartered Accountants,
and procedures that (1) pertain to the maintenance of
Firm Registration Number: 000459S
records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets Sd/-
of the company; (2) provide reasonable assurance that V.Raghunandan
transactions are recorded as necessary to permit
preparation of financial statements in accordance with Partner
generally accepted accounting principles, and that Membership No: 026255
receipts and expenditures of the company are being
UDIN No. 20026255AAAAEF2390
made only in accordance with authorizations of
management and directors of the company; and (3) Date: 24-07-2020
provide reasonable assurance regarding prevention Place: Hyderabad
or timely detection of unauthorized acquisition, use,

86
 Annexure - C to the Independent Auditors' Report:
The Annexure referred to in our report to the members of the Company for the year ended on March 31, 2020. We report that:
1 Whether the company has system in place Based on information and explanation furnished to
to process all the accounting transactions us and on our examination of the accounts, records,
reports and the system in place for the preparation of
through IT System? If yes, the implications the same, we report that the company has deployed
of processing of accounting transaction SAP ERP for the said purpose. Further based on the
outside IT system on the integrity of the aforesaid examination no accounting transactions are
accounts along with the financial implication, passed outside the books of accounts that form the
basis for the financial statements being audited by
if any may be stated. us.
2 Whether there is any restructuring of an Based on the records, information & explanations given
existing loan or cases of waiver/write off of to us, there is no restructuring of an existing loan or
debt/loans/interest etc. made by a lender to cases of waiver/write off of debt/loans/interest etc.
made by a lender to the company, during the year.
the company due to the company's inablility However on issue of circular by RBI dated 27th March,
to repay the loan? If yes, the financial impact 2020 on COVID-19-regulatory package, the company
may be stated. has availed of the option for a moratorium period for
repayment of borrowings as stated in Note 17E to the
standalone financial statements.
3 Whether funds received/receivable for specific According to information given to us, funds received/
schemes from central/state agencies were receivable for specific schemes from central/ state
agencies were properly accounted for/ utilized as per
properly accounted for/utilized as per its term its term and conditions.
and conditions? List the cases of deviation. There are no cases of deviation during the year.
4 Examine and Comment on the accounting BF Slag is generated at the time of hot metal
treatment and inventory valuation of Blast production in the respective Blast Furnaces and is
stored at Slag Storage Yard (SSY) and Dump Yard.
Furnace Slag in Fresh/ Dump. As per the information and explanations furnished to
us, and based on our examination thereof, for the
year ending 31st March, 2020;
l Stock of BF slag at Slag Storage Yard is valued
at the latest net realized value and corresponding
credit is given to the cost of production of hot
metal. Necessary accounting entries will be
posted during the movement of stock by way of
receipts/dispatches to customers, where sales
revenue is recognized.
l Stock of BF slag at Dump Yard is not valued,
except for quantity if any which is identified for
sale against arrangements with customers.As at
31st March, 2020 stock of BF slag at dump yard
has not been valued. Revenue is recognized in
the books of accounts upon its sale if any to
customers.
for M.Bhaskara Rao & Co.,
Chartered Accountants,
Firm Registration Number: 000459S
Sd/-
V.Raghunandan
Partner
Date: 24-07-2020 Membership No: 026255
Place: Hyderabad UDIN No. 20026255AAAAEF2390
87
Enclosure to Directors’ Report

88
89
 BALANCE SHEET AS AT 31st MARCH 2020 ( in Crores)
st st
Particulars Notes 31 March 2020 31 March 2019
I Assets
Non-current assets
(a) Property, plant and equipment 3 19,357.09 19,013.64
(b) Capital work-in-progress 3 3,737.91 3,853.75
(c ) Other intangible assets 4 1.42 2.71
(d) Intangible assets under development 4 - -
(e ) Financial assets
(i) Investments 5 737.50 741.49
(ii) Loans 6 74.93 115.36
(iii) Other financial assets 7A 23.38 24.14
(f) Deferred tax asset (net) 8 1,584.25 1,173.53
(g) Other non-current assets 9 82.87 79.48
Total non-current assets 25,599.35 25,004.10
Current assets
(a) Inventories 10 7,030.91 7,489.11
(b) Financial assets
(i) Trade receivables 11 611.23 1,130.38
(ii) Cash and cash equivalents 12 18.37 121.43
(iii) Other financial assets 7B 667.98 556.63
(c ) Other tax assets (net) 13 - -
(d) Other current assets 14 791.96 899.66
Total current assets 9,120.45 10,197.21
Total assets 34,719.80 35,201.31
II Equity and liabilities
Equity
(a) Equity share capital 15 4,889.85 4,889.85
(b) Other equity 16 -1,618.06 2,462.43
Total equity 3,271.79 7,352.28
Liabilities
Non-current liabilities
(a) Financial liabilities
(i) Borrowings 17A 9,759.77 9,309.26
(ii) Other financial liabilities 18A 163.71 96.38
(b) Provisions 19A 1,267.49 1,052.47
(c ) Deferred tax liabilities (net) 8 - -
(d) Other non-current liabilities 20A 7.76 8.12
(e ) Government Grants - Deferred - PPE 20B 119.67 5.21
Total non-current liabilities 11,318.40 10,471.44
Current liabilities
(a) Financial liabilities
(i) Borrowings 17B 11,367.43 9,721.02
(ii) Trade payables 21
- Micro Enterprises and Small Enterprises 48.41 109.63
- Other than Micro Enterprises and Small Enterprises 3,449.04 2,446.81
(iii) Other financial liabilities 18B 3,978.48 3,807.87
(iv) Derivatives 22 - -
(b) Provisions 19B 820.38 639.31
(c ) Other current liabilities 23 459.69 652.58
(d ) Government Grants - Deferred - PPE 20B 6.18 0.37
Total current liabilities 20,129.61 17,377.59
Total liabilities 31,448.01 27,849.03
Total Equity and liabilities 34,719.80 35,201.31
The notes 1 to 42 are an integral part of the financial statements. As per our report of even date
For and on behalf of the Board of Directors For M/s M. Bhaskara Rao & Co
Sd/- Sd/- Chartered Accountants
(P. K. Rath) (V.V. Venu Gopal Rao) Firm Regn No: 000459S
Chairman-cum-Managing Director Director (Finance) Sd/-
Sd/- and Chief Financial Officer (CA V. Raghunandan)
(M Jagadeeshwara Rao) Partner
Place : Visakhapatnam Membership No: 26255
Company Secretary
Date : 24-07-2020 Hyderabad
92
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2020 ( in Crores)
Particulars Notes For the year ended For the year ended
31st March 2020 31st March 2019
Income
I Revenue from operations 24 15,920.46 20,492.03
II Other income 25 239.08 346.68
III Total income (I+II) 16,159.54 20,838.71
IV Expenses
Cost of materials consumed 26 11,597.33 13,730.25
Changes in inventory of finished goods and work-in-progress 27 (685.36) (958.44)
Employee benefits expense 28 2,620.66 2,438.28
Finance costs 29 1,498.23 1,277.61
Depreciation and amortisation expense 30 1,108.81 1,057.59
Other expenses 31 4,125.41 3,825.71
Total expenses (IV) 20,265.08 21,371.00
V Profit/ (Loss) before exceptional items and tax (III-IV) (4,105.54) (532.29)
VI Exceptional items 31A 181.97 (225.40)
VII Profit/ (Loss) before tax (V-VI) (4,287.51) (306.89)
VIII Tax expense/ (credit):
Current tax - -
Deferred tax 8 (377.50) (403.60)
Earlier year adjustments 0.16 -
Total Tax expense/ (credit) (VIII) 8 (377.34) (403.60)
IX Profit/ (Loss) for the year from continuing operations (VII-VIII) (3,910.17) 96.71
X Profit/ (Loss) for the year from discontinued operations - -
XI Tax expense of discontinued operations - -
XII Profit / (Loss) for the year from discontinued operations (after tax) (X-XI) - -
XIII Profit/ (Loss) for the period (IX+XII) (3,910.17) 96.71
XIV Other comprehensive income
(i) Items that will not be re classified to profit or loss
Re-measurements of defined benefit liability /asset (203.53) 42.82
(ii) Income tax relating to items that will not be reclassified to profit or loss 33.21 (8.21)
Other comprehensive income for the year, net of income tax (170.32) 34.61
XV Total comprehensive income for the year (XIII+XIV) (4,080.49) 131.32
XVI Earnings/ (loss) per each equity share of 10 each 36
1. Basic ( ) (8.00) 0.20
2. Diluted ( ) (8.00) 0.20
The notes 1 to 42 are an integral part of the financial statements. As per our report of even date
For and on behalf of the Board of Directors For M/s M. Bhaskara Rao & Co
Sd/- Sd/- Chartered Accountants
(P. K. Rath) (V.V. Venu Gopal Rao) Firm Regn No: 000459S
Chairman-cum-Managing Director Director (Finance) Sd/-
Sd/- and Chief Financial Officer (CA V. Raghunandan)
(M Jagadeeshwara Rao) Partner
Place : Visakhapatnam Membership No: 26255
Company Secretary
Date : 24-07-2020 Hyderabad
93
 STATEMENT OF CHANGES IN EQUITY
(FOR THE YEAR ENDED 31st MARCH 2020)

a. Equity Share Capital

( in Crores)
Particulars Amount
st
Balance as at 1 April 2018 4,889.85
Changes in Equity Share Capital during 2018-19 -
st
Balance as at 31 March 2019 4,889.85
Changes in Equity Share Capital during 2019-20 -
Balance as at 31st March 2020 4,889.85

b. Other Equity ( in Crores)

Reserves and Surplus

Reserves for Other Items
Particulars Capital Total
Retained Redeeming of Other
Redemption
Earnings Preference Comprehensive
Reserve
Shares Income

Balance at 1st April 2018 (606.36) 2,937.47 - - 2,331.11

Total Comprehensive Income for the year
ended 31st March 2019
Profit or Loss 96.71 - - - 96.71
Other Comprehensive Income (net of tax) 34.61 - 34.61
Total Comprehensive Income 131.32 - - - 131.32
Balance at 31st March 2019 (475.04) 2,937.47 - - 2,462.43
Balance at 1st April 2019 (475.04) 2,937.47 - - 2,462.43
Total Comprehensive Income for the year
ended 31st March 2020
Profit or Loss (3,910.17) - - - (3,910.17)
Other Comprehensive Income (net of tax) (170.32) - - - (170.32)
Total Comprehensive Income (4,080.49) - - - (4,080.49)
Balance at 31st March 2020 (4,555.53) 2,937.47 - - (1,618.06)

The notes 1 to 42 are an integral part of the financial statements. As per our report of even date
For and on behalf of the Board of Directors For M/s M. Bhaskara Rao & Co
Sd/- Sd/- Chartered Accountants
(P. K. Rath) (V.V. Venu Gopal Rao) Firm Regn No: 000459S
Chairman-cum-Managing Director Director (Finance) Sd/-
Sd/- and Chief Financial Officer (CA V. Raghunandan)
(M Jagadeeshwara Rao) Partner
Place : Visakhapatnam Membership No: 26255
Company Secretary
Date : 24-07-2020 Hyderabad

94
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31st MARCH 2020 ( in Crores)
Particulars For the year ended For the year ended
31st March 2020 31st March 2019
Cash flows from Operating Activities
Profit/ (Loss) for the year (before tax) (4,287.51) (306.89)
Adjustments for:
Depreciation and Amortisation Expense 1,108.81 1,057.59
Finance Costs 1,498.23 1,277.61
Provision for diminution in the value Investments 4.00 -
Interest Income from banks (0.30) (0.30)
Dividend Income 0.00 (0.04)
(Gain) loss on sale of Property, Plant and Equipment (0.85) (0.99)
Unrealised Net (Gain)/ Loss arising on Financial instruments designated as FVTPL 87.09 0.00
Operating Profit before changes in Assets and Liabilities (1,590.53) 2,026.98
Changes in Assets and Liabilities :
(Increase) decrease in Inventories 458.20 (1,860.44)
(Increase) decrease in Trade Receivables and Loans 559.58 (27.47)
(Increase) decrease in other Financial Assets (110.59) (86.20)
(Increase) decrease in other non Current Assets (1.89) 27.95
(Increase) decrease in other Current Assets 66.20 (195.37)
Increase (decrease) in Trade Payables 941.01 1,358.87
Increase (decrease) in other Financial Liabilities 208.15 (982.05)
Increase (decrease) in Provisions 192.56 53.31
Increase (decrease) in Non-Current Liabilities (0.36) (74.27)
Increase (decrease) in other Current Liabilities (192.91) 156.07
Cash generated from Operating Activities 529.42 397.38
Income Tax paid (net of refund) 41.34 (19.76)
Net cash from (used in ) Operating Activities (A) 570.76 377.62
Cash flows from Investing Activities
Acquisition of Property, Plant and Equipment (Excl. Asset through Govt. Grants) (1,164.02) (1,712.58)
Proceeds from sale of Property, Plant and Equipment 0.85 0.99
Interest received from banks 0.30 0.30
Investment in fixed deposits (0.18) 0.37
Dividend Income - 0.04
(Acquisition) / Sale of Investments (0.01) (0.01)
Net cash flow from (used in) Investing Activities (B) (1,163.06) (1,710.89)
Cash flows from Financing Activities
Proceeds from (Repayment of ) long term borrowings 502.91 2,416.35
Proceeds from (Repayment of) short term borrowings 1,646.42 499.75
Repayment of Principal Portion of Lease Liability (0.67) -
Interest Paid (1,659.60) (1,512.93)
Net cash flow from (used in) Financing Activities ( C) 489.06 1,403.17
Net increase (decrease) in Cash and Cash Equivalents (A+B+C) (103.24) 69.90
Cash and cash equivalents at 1st April 109.16 39.26
Cash and Cash Equivalents at 31st March 5.92 109.16
Reconciliation of Cash and Cash Equivalent as per the Balance Sheet 31st March 2020 31st March 2019
Cash and Cash Equivalent as per the Cash Flow Statement 5.92 109.16
Other Bank Balances not considered above:
- Bank Deposits with maturity more than 3 months 4.69 4.39
- Prime Minister's Trophy Award Fund 7.76 7.88
Cash and Cash Equivalent as per Balance Sheet 18.37 121.43
The Cash Flow Statement has been prepared under indirect method in accordance with Ind AS 7.
The notes 1 to 42 are an integral part of the financial statements.
For and on behalf of the Board of Directors As per our report of even date
For M/s M. Bhaskara Rao & Co
Sd/- Sd/-
Chartered Accountants
(P. K. Rath) (V.V. Venu Gopal Rao)
Firm Regn No: 000459S
Chairman-cum-Managing Director Director (Finance)
Sd/- and Chief Financial Officer Sd/-
(M Jagadeeshwara Rao) (CA V. Raghunandan)
Place : Visakhapatnam Partner
Company Secretary
Date : 24-07-2020 Membership No: 26255
Hyderabad
95
 NOTES TO STANDALONE FINANCIAL STATEMENTS AS AT 31st MARCH 2020
1. Company Overview value as the ‘deemed cost’ in preparing its
Rashtriya Ispat Nigam Limited is a company opening balance sheet as on 01 April 2015.
domiciled in India. The Company’s registered office (b) Property, plant and equipment are measured
is Administrative Building, Visakhapatnam Steel at cost less accumulated depreciation and
Plant (VSP), Visakhapatnam, Andhra Pradesh. The impairment losses.
Company is primarily involved in the manufacture 2.5.2 The cost of property, plant and equipment
of steel and related products. comprises:
2. Significant Accounting Policies (i) Its purchase price;
2.1 Basis of Preparation (ii) Any cost directly attributable to bringing the
The financial statements have been prepared in asset to the location and condition necessary
accordance with Indian Accounting Standards (“Ind for it to be capable of operating in the manner
AS”) and provisions of Companies Act, 2013 intended by management;
i.e.Section 133 of the Companies Act, 2013 as (iii) The initial estimate of the costs of dismantling
prescribed/notified and amended from time to time and removing the item and restoring the site
under the historical cost convention on accrual basis on which it is located, the obligation for which
except for certain material financial instruments the company incurs either at the time of
which are measured at fair value. acquisition of asset or as a consequence of
2.2 Functional and Presentation Currency having used the asset during a particular period
The standalone financial statements are presented for purposes other than to produce inventory
in Indian rupees, which is the functional currency during that period;
of the Company and the currency of the primary (iv) Expenditure attributable /relating to
economic environment in which the entity operates. construction to the extent directly identifiable
All financial information presented in Indian rupees to any specific plant unit, Trial run expenditure
has been rounded to the nearest two decimals of net of revenue.
Crore except share and per share data. 2.5.3 The cost of replacing a part of an item of PPE is
2.3 Use of Estimates and Judgement recognized in the carrying amount of the item of
The preparation of financial statements require property, plant and equipment if the recognition
estimates and assumptions to be made that affect criteria are met. Consequently, the carrying amount
the reported amounts of assets and liabilities and of the replaced part is derecognized.
disclosure of contingent liabilities on the date of 2.5.4 Expenditure attributable /relating to construction to
financial statements and the reported amounts of the extent not directly identifiable to any specific
revenues and expenses during the reporting period. Plant Unit is kept under ‘Expenditure During
Actual results could differ from these estimates and Construction’ for allocation to PPE and is grouped
differences between actual results and estimates under ‘Capital Work-in- Progress’.
are recognized in the periods in which the results
2.5.5 All major spares, stand-by equipment, and servicing
are known/ materialized.
equipment that meet the criteria of property, plant
2.4 Inventories and equipment are capitalized.
2.4.1 Inventories are valued at lower of cost and net 2.5.6 Depreciation:
realizable value. Depreciation is recognized on straight-line basis
2.4.2 The basis of determining cost is: over the estimated useful life of each part of an
a) Finished / Semi-finished goods, Raw materials – item of property, plant and equipment. Depreciation
Periodic Weighted Average cost. methods, useful lives and residual values are
b) Minor Raw Materials, Stores and Spares (which reviewed at each reporting date and where
do not meet PPE definition), Loose tools - Dynamic expectations differ from previous estimates, the
Moving Weighted Average cost. changes are accounted for as change in accounting
c) All Materials in- transit at cost. estimate.
2.4.3 Necessary provisions are made for obsolete / 2.6 Intangible Assets
Surplus / Non-moving inventory. 2.6.1 Intangible assets are estimated at cost less
(Guidelines for valuation of inventories are provided accumulated amortization and impairment.
at note no. 10) Intangible assets are amortized on straight line
2.5 Property, Plant and Equipment (PPE) method over their estimated useful life.
2.5.1 (a) The company has adopted the previous GAAP

96
2.6.2 Residual values and useful lives of all intangible (ii) Loans and borrowings, trade and other payables
assets are reviewed at each reporting date. including deposits collected from various parties
Changes, if any, are accounted for as changes in and eligible current and non-current financial
accounting estimates. liabilities are classified as financial liabilities
2.7 Exploration and Evaluation Assets (E&E Assets) under this clause.
2.7.1 Exploration and evaluation expenditure comprises (iii) Financial instruments are subsequently carried
costs incurred after obtaining legal right to explore at amortized cost wherever applicable using
the area and before establishing technical feasibility effective interest method (EIR) less impairment
and commercial viability of extracting a mineral loss.
resource that are directly attributable to: (iv) Transaction costs that are attributable to the
– researching and analyzing existing exploration financial instruments recognized at amortized
data; cost are included in the fair value of such
– conducting geological studies, exploratory drilling instruments.
and sampling; (b) Derivative Financial Instruments
– examining and testing extraction and treatment (i) Derivative Financial Assets and Liabilities are
methods; and/or initially recognized at fair value on the date a
– compiling pre-feasibility and feasibility studies. derivative contract is entered into and are
subsequently re-measured to their fair value at
2.7.2 Exploration and evaluation expenditure is
each reporting date.
recognized as an expense, unless the expenditure
is expected to be recouped through successful (ii) Changes in the fair value of any derivative Asset
development and exploitation of the area of interest, or liability are recognized immediately in the
or alternatively by its sale, in which case it is Income Statement and are included in other
recognized as an asset. income or expenses.
(iii) Cash flow hedge: Changes in the fair value of
2.7.3 Exploration and evaluation assets are classified as
the derivative hedging instrument designated
tangible (as part of property, plant and equipment)
as a cash flow hedge are recognized in other
or intangible according to the nature of the assets.
comprehensive income and presented within
These assets are not depreciated till they are
equity in the cash flow hedging reserve to the
recognized as an E &E asset. These assets
extent that the hedge is effective. To the extent
continue in CWIP and are depreciated once they
that the hedge is ineffective, changes in fair
are recognized as E&E assets.
value are recognized in the statement of profit
2.7.4 The carrying values of capitalized evaluation and loss. If the hedging instrument no longer
expenditure are reviewed for impairment once a year meets the criteria for hedge accounting, expires
by management. or is sold, terminated or exercised, then hedge
2.8 Investment in Subsidiaries and Joint Ventures accounting is discontinued prospectively. The
Investments in subsidiaries and joint ventures are cumulative gain or loss previously recognized
measured at cost. Diminution in value, other than in the cash flow hedging reserve is transferred
temporary, is provided for. to the statement of profit and loss upon the
2.9 Financial Instruments (Financial Assets and occurrence of the related forecasted
Financial Liabilities): transaction.
All financial instruments are recognized initially at 2.10 Impairment
fair value. The classification of financial 2.10.1 Financial assets
instruments depends on the objective of the (i) The company applies Expected Credit Loss
business model for which it is held. For the purpose (ECL) model for measurement and recognition
of subsequent measurement, financial instruments of impairment loss on the following financial
of the Company are classified into (a) Non-Derivative assets and credit risk exposure:
Financial Instruments and (b) Derivative Financial - Financial assets that are debt instruments, and
Instruments. are measured at amortized cost wherever
a) Non Derivative Financial Instruments applicable e.g., loans, debt securities, deposits,
(i) Security deposits, cash and cash equivalents, and bank balance.
employee and other advances, trade receivables - Trade receivables.
and eligible current and non-current financial ii) The company follows ‘simplified approach’ for
assets are classified as Financial Assets under recognition of impairment loss allowance on
this clause. trade receivables which do not contain a

97
 significant financing component. The (i) Consequential actuarial gain\loss are charged
application of simplified approach does not to Statement of Profit and Loss;
require the company to track changes in credit (ii) Actuarial gain/loss relating to Post Retirement
risk. Rather, it recognizes impairment loss Benefits (Defined Benefit Plan) are recognized
allowance based on lifetime ECLs at each in other comprehensive income.
reporting date, right from its initial recognition. 2.15 Foreign Currency Transactions
2.10.2 Non-financial Assets 2.15.1 Foreign currency monetary items are disclosed at
The Company assesses at each reporting date the closing rate of the reporting period at reporting
whether there is any objective evidence that a non- date. Exchange differences arising on settlement/
financial asset or a group of non-financial assets is conversion of foreign currency monetary items are
impaired. If any such indication exists, the recognized in the statement of profit and loss
Company estimates the amount of impairment loss. account.
2.11 Stripping Cost: 2.15.2 Non-monetary assets and liabilities are recognized
Stripping cost in the nature of expense incurred for at the exchange rate prevailing at the date of
removing overburden and waste materials is transaction.
accounted for as follows: 2.16 Borrowing Costs
(a) To the extent that the benefit from the stripping 2.16.1 Borrowing costs incurred for obtaining qualifying
activity is realized in the form of inventory assets are capitalized to the respective assets
produced, the same is accounted for in wherever the costs are directly attributable to such
accordance with the principles of Ind AS 2, assets and in other cases by applying weighted
Inventories. average cost of borrowings to the expenditure on
(b) To the extent the benefit is improved access such assets.
to ore, stripping cost shall be recognized as a 2.16.2 Transaction costs in respect of long-term
non-current asset. borrowings are amortized over the tenor of
2.12 Income Taxes: respective loans using effective interest method.
Income tax expense comprises of current and 2.16.3 Other borrowing costs are treated as expense for
deferred tax. Income tax expense is recognized in the year.
the statement of profit and loss except to the extent 2.17 Government Grants
it relates to items directly recognized in equity or in
2.17.1 Government grants are recognized when there is
other comprehensive income.
reasonable assurance that the Company will comply
2.13 Revenue Recognition with the conditions attaching to them and that the
2.13.1 Revenue is recognized at fair value when significant grants will be received.
risks and rewards of ownership and effective control on 2.17.2 Government grants are recognized in the Statement
goods have been transferred to the buyer. Sales revenue of Profit and Loss on a systematic basis over the
is measured net of returns, discounts and rebates. periods in which the Company recognizes as
2.13.2 Claims against outside agencies are accounted for expenses the related costs for which the grants
on certainty of realization. are intended to compensate.
2.13.3 Revenue arising from the rendering of service is 2.17.3 A Government grant that becomes receivable as
recognized to the extent the service is provided compensation for expenses or losses already
and could be estimated reliably. incurred or for the purpose of giving immediate
2.13.4 Interest income is recognized basing on the effective financial support to the entity with no future related
interest method. costs, shall be recognized in profit or loss of the
2.13.5 Dividends, are recognized at the time the right to period in which it becomes receivable.
receive is established. 2.17.4 Where the Company receives grants in the form of
2.13.6 Export Incentives are recognized on certainty of non-monetary assets such as land or other
realization. resources, both the asset and the grant are recorded
2.14 Employee Benefits at a value assessed by the company based on the
Provisions/Liabilities towards gratuity, post- evidence available as on the date of initial recognition
retirement medical benefits, retirement settlement and released to the statement of Profit and Loss
benefits, Employees’ Family Benefit Scheme, over the expected useful life of asset.
encashment of leave and long term service award 2.17.5 Where the Grant relates to an asset value, it is
are made based on the actuarial valuation at the recognized as deferred income and amortized over
reporting date. the expected useful life of the asset.

98
2.18 Lease liability to reflect any reassessment or lease
2.18.1 The Company as Lessor: modification.
A) Operating Lease:- ii) The cost of ROU shall comprise:
i) A contract that is identified as a Lease is a) The amount of the initial measurement of the
classified as ‘Operating Lease’ when lease liability;
substantially all the risks and rewards incidental b) Any lease payments made at or before the
to ownership of an underlying asset is not commencement date, less any lease incentives
transferred from the company to Lessee. received;
ii) Income from operating leases is recognized in c) Any initial direct cost incurred by the lessee and
the statement of profit and loss on a straight- d) The estimated cost to be incurred in dismantling
line basis over the term of the relevant lease and removing the underlying asset, restoring
unless another systematic basis is more the site on which it is located or restoring the
representative of the time pattern in which underlying asset to the condition required by
economic benefits from the leased asset is the terms of the lease unless those costs are
diminished. incurred to produce inventory.
iii) Initial direct costs incurred in negotiating and iii) The ROU is being depreciated on a straight line
arranging an operating lease are added to the basis from the commencement date to the end
carrying value of the leased asset and of the useful life of the underlying asset when
recognized on a straight-line basis over the the ownership of the underlying asset is
lease term. transferred to the company by the end of the
iv) Costs including depreciation incurred in earning the lease term or when the company is reasonably
lease income is recognized as expense. certain to exercise the purchase option
v) Impairment if any of underlying asset subject to envisaged in the lease. Otherwise, ROU is
operating lease is recognized as impairment loss. depreciated on a straight line basis from the
vi) The underlying assets subject to operating commencement date to the earlier of the end
lease are presented in the Balance Sheet of the useful life of the ROU or the end of the
according to the nature of the underlying asset lease term.
and depreciation thereon is calculated B) Lease Liability:-
consistent with the company’s normal i) Lease liability is measured at the
depreciation policy for similar assets. commencement date by discounting the lease
B) Finance Lease:- payments that are not paid at that date at the
i) A contract that is identified as a Lease is interest rate implicit in the lease if, that rate is
classified as ‘Finance Lease’ when substantially determinable otherwise the company’s
all the risks and rewards incidental to ownership incremental borrowing rate is used.
of an underlying asset is transferred from the ii) After the commencement date, the lease
company to Lessee. liability is measured by:
ii) Amounts due from the lessees under finance a) Increasing the carrying amount to reflect interest
lease are recorded as ‘Receivables’. Lease on the lease liability;
rental receipts are apportioned between the b) Reducing the carrying amount to reflect the
finance lease income and capital repayment lease payments made; and
based on the implicit rate of return. Contingent iii) Lease liability is re-measured when there is a
rents are recognised as revenue in the period change in future lease payments arising from a
in which they are earned. change in an index or rate, if there is a change
iii) Finance lease income is allocated to accounting in the Company’s estimate of the amount
periods over the lease term so as to reflect a expected to be payable under a residual value
constant periodic rate of return on the net guarantee, or if the Company changes its
investment outstanding in respect of lease. assessment of whether it will exercise a
2.18.2 The Company as Lessee: purchase, extension or termination option.
A) Right of use asset (ROU):- When the lease liability is re-measured, a
i) The Right of use asset (ROU) under the lease corresponding adjustment is made to the
is recognised on the commencement date and carrying amount of the Right-of-use (ROU), or
is measured at cost less any accumulated is recorded in profit or loss if the carrying
depreciation and accumulated impairment loss amount of the right-of-use asset has been
and adjusted for any measurement of the lease reduced to zero.

99
 3 Property, Plant and Equipment ( in Crores)
A. Reconciliation of carrying amount
Roads, Water
Railway Furniture
Freehold Leasehold bridges Plant and Electrical supply and Miscellan-
Particulars lines and Buildings and Vehicles Total
land land and equipments installations sewerage eousassets
sidings fixtures systems
culverts

Cost or deemed cost

(gross carrying amount)

Balance at 1st April 2019 59.92 1.65 358.15 257.98 1,803.19 25,334.53 27.95 34.97 950.22 1,101.56 388.43 30,318.55

Gross Block
Additions and adjustments 23.56 54.17 21.98 10.66 38.11 756.33 0.53 0.31 33.65 504.39 13.85 1,457.54

Sales and adjustments - - - 0.00 - (8.94) (0.17) - (0.04) 0.00 (0.74) (9.89)

Balance at 31st March 2020 83.48 55.82 380.13 268.64 1,841.30 26,081.92 28.31 35.28 983.83 1,605.95 401.54 31,766.20

Accumulated depreciation

Balance at 1st April 2019 - 0.86 179.34 173.64 796.42 8,841.82 22.24 21.42 614.71 415.24 239.22 11,304.91

Depreciation for the year - 2.29 17.32 13.27 44.90 877.45 0.93 2.80 62.66 53.81 35.61 1,111.04

Sales and adjustments - - - - - (6.00) (0.13) - (0.03) 0.00 (0.68) (6.84)

Accumulated Depreciation
Balance at 31st March 2020 - 3.15 196.66 186.91 841.32 9,713.27 23.04 24.22 677.34 469.05 274.15 12,409.11

Carrying amounts (Net)

At 31st March 2019 59.92 0.79 178.81 84.34 1,006.77 16,492.71 5.71 13.55 335.51 686.32 149.21 19,013.64

Net Block
At 31st March 2020 83.48 52.67 183.47 81.73 999.98 16,368.65 5.27 11.06 306.49 1,136.90 127.39 19,357.09

* All eligible major spares, standby equipment and service equipment whose unit value exceeding 10 lakhs (threshold value) are capitalized as PPE on acceptance.
Spares not meeting the threshold value are charged to revenue on their usage.

100
B. Details of Right of Use (ROU) Asset included in Property, Plant & Equipment ( in crores)
Gross Block Accumulated Depreciation Net Block

Balance at 1st April 2019

Balance at 31st Mar 2020

Balance at 31st Mar 2020

Balance at 1st April 2019
Sales and Adjustments

Sales and Adjustments

Depreciation for the

At 31st Mar 2020

Additions and
Adjustments

period
Particulars

Leasehold Land 1.65 54.17 - 55.82 0.86 2.29 - 3.15 52.67

Building 1.31 0.03 - 1.34 0.57 0.01 - 0.58 0.76
Note : The details of leases are provided at Note 37
C. Freehold Land
- Land includes 363.28 acres (31st March 2019 : 363.28 acres) allotted to various agencies on lease basis.
- Land at a cost of 39.99 crore (31st March 2019 : 39.99 crore) is being held in the name of President of India.
The Company is holding Power of Attorney issued by Government of India for utilisation of the land acquired for
the project and related purposes incidental thereto.
- Land includes 14.5 acres whose title is under dispute.
D. Sale Deed in respect of the following land has not yet been executed ( in crores)
st
Particulars 31 March 2020 31st March 2019
Stockyard at Chennai 2.37 2.37
Office building at New Delhi 24.26 25.53
Office buildings at Ahmedabad 0.18 0.18
Residential buildings at Kolkata 0.95 0.95
Site for Liaison Office at Hyderabad 1.30 1.30
29.06 30.33
E. Depreciation Methods and useful lives
Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an
item of property, plant and equipment. The estimated useful lives for the current and comparative periods are as
follows:

Particulars 31st March 2020 31st March 2019

Railway lines and sidings 10-15 years 10-15 years
Roads, Bridges and Culverts 3-30 years 3-30 years
Buildings* 3-60 years 5-60 years
Plant and Equipment 2-50 years 2-40 years
Fixtures and Fittings 10 years 10 years
Vehicles 6-8 years 6-8 years
Electrical Installations 5-25 years 10-25 years
Water Supply and Sewerage Systems 15-30 years 15-30 years
Miscellaneous Assets 3-15 years 3-15 years

* Buildings-ROU are amortised over the period of lease. (Refer Note No. 37)

101
 ( in Crores)
Particulars 31st March 2020 31st March 2019

Allocation of Depreciation :
Expenditure During Construction / Capital Work-In-Progress 3.51 6.76
Current year (Profit or Loss) 1,107.53 1,048.06
1,111.04 1,054.82

Depreciation Methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

F. Capital Work-In-Progress ( in Crores)

Particulars 31st March 2020 31st March 2019

Capital work-in-progress *
(including material issued to contractors) 3,758.45 3,874.19
Less: Provision for dropped projects
SLTM 19.21 19.21
Axle Plant 0.73 0.63
Dry Fogging Dust Suppresser 0.59 0.59
Total Provision for dropped projects 20.54 20.44
3,737.91 3,853.75
Expenditure during construction awaiting allocation (Note G) - -
Total 3,737.91 3,853.75
*This includes 82.19 Crores being the capital inventory lying at different construction zones/ with contractors on the
reporting date.

G. Expenditure during construction awaiting allocation

( in Crores)

Particulars 31st March 2020 31st March 2019

Opening Balance (A) - 296.36
Expenditure during the year:
Employee remuneration and benefits - (8.85)
Other expenses and provisions - -
Interest expense - -
Depreciation - 5.31
Less :
Other revenue - -
Net expenditure during the year (B) - (3.54)
Total (A+B) - 292.82
Less: Amount allocated to PPE - 292.82
Total - -
H. The expenditure on PPE & CWIP excludes GST of 73.01 Crores paid in respect of capex payments made during
the year for which company has availed Input Tax Credit.

102
4 Intangible Assets
A. Reconciliation of Carrying Amount ( in Crores)
Intangible
Computer Mining Assets under Total
Particulars Rights Total (i)
Software development (i)+(ii)
(ii)

Cost or Deemed Cost

(Gross Carrying Amount)
Gross Block

Balance at 1st April 2019 68.34 5.83 74.17 - 74.17

Additions and Adjustments - - - - -

Sales and Adjustments (0.72) - (0.72) - (0.72)
Balance at 31st March 2020 67.62 5.83 73.45 - 73.45

Accumulated Amortisation
Net Block Accumulated Amortisation

Balance at 1st April 2019 66.00 5.46 71.46 - 71.46

Amortisation for the year 1.21 0.08 1.29 - 1.29

Sales and Adjustments (0.72) - (0.72) - (0.72)

Balance at 31st March 2020 66.49 5.54 72.03 - 72.03
Carrying Amounts (Net)
At 31st March 2019 / 1st April 2019 2.34 0.37 2.71 - 2.71

At 31st March 2020 1.13 0.29 1.42 - 1.42

B. Amortisation Methods and useful lives

Amortisation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of
intangible assets.
The estimated useful lives for the current and comparative periods are as follows:

Particulars 31st March 2020 31st March 2019

Computer Software 4 years 4 years

Mining Rights 20 years 20 years

5 Investments ( in Crores)

Particulars 31st March 2020 31st March 2019

A. Non-Current Investments
Quoted Equity Shares
Equity shares at cost- Subsidiary
736,638 (31st March 2019 : 736,638) equity shares of
10 each in Eastern Investments Limited^ 361.03 361.03
182,927 (31st March 2019 : 182,927) equity shares of
10 each in The Bisra Stone Lime Company Limited* 0.00 0.00
Total 361.03 361.03

103
 Particulars 31st March 2020 31st March 2019
Unquoted Equity Shares
Equity Shares at cost - Associates
376,357,143 (31st March 2019 : 376,357,143) equity shares of
10 each in International Coal Ventures Private Limited 376.35 376.35
Equity Shares at cost - Joint Ventures
120,000 (31st March 2019: 110,000) equity shares of
10 each in RINMOIL Ferro Alloys Private Limited $ 0.12 0.11
4,000,000 (31st March 2019: 4,000,000) equity shares of
10 each in RINL Powergrid TLT Private Limited ! 4.00 4.00
Equity Shares at cost- Others
2,280 (31st March 2019: 2,280) equity shares of
1 each in Free Press House Limited** 0.00 0.00
1 (31st March 2019: 1 ) equity shares of
100 each in Anakapalli Rural Elec. Co-operative Society*** 0.00 0.00
Total 380.47 380.46
Total Investment in Equity Instruments (A) 741.50 741.49
B. Provision for diminution in value of Investments 4.00 -
Total Investments (A-B) 737.50 741.49
Aggregate book value of quoted investments 361.03 361.03
Aggregate market value of quoted investments # NA NA
Aggregate value of unquoted investments 380.47 380.46
Aggregate amount of impairment in value of investments 4.00 -
Note:
*Investment in The Bisra Stone Lime Company Limited amounted to 1000, hence rounded off to zero.
**Investments in Free Press House Limited amounted to 2280, hence rounded off to zero.
***Investments in Anakapalli Rural Elec. Co-operative Socity amounted to 100, hence rounded off to zero.
# The market value of quoted investment not ascertainable due to non availability of quotes as same are suspended from
trading in stock exchange.
^ Eastern Investments Limited (EIL) is a subsidiary of RINL and RINL holds 51% stake in EIL.Investment in EIL is made
with an intention to have a securitisation of material with long term commitment.EIL shares are not traded in the stock
exchange and share price is not available.M/s.OMDC & M/s. BSLC are subsidiary of EIL and EIL holds a little over 50%
stake in OMDC and little over 50% stake in BSLC. OMDC was served with demand notice for EC & FC as compensation for
excess mining by Dy.Director Mines, Govt of Odisha pursuant to the Judgement of Hon'ble Supreme Court dated 02.8.2017.
M/s.OMDC contested the demand and took up the issue with Govt of Odisha and filed a writ petition in Odisha High Court
in 2017-18 as per calculation of OMDC. The Govt of Odisha mentioned that the penalty calculation was done by CEC
appointed by Hon'ble Supreme Court and hence stood final. OMDC filed to withdraw writ petitions from HC of Odisha and the
Writ Petition stood disposed of by order dated 26.3.2019. The amount of Demand for OMDC Lease is 702.18 Crores as on
31.3.2019 including interest.
OMDC has paid the compensation of 876.22 Crore towards OMDC Leases out of its own fund of 566.22 Crore and fund
borrowed from bank of 310 Crore, which has been reflected in the standalone books of OMDC. Thus, subsequent to
payment made to Deputy Director of Mines, Joda, Govt of Odisha of 876.22 Crores, the demand raised against three
OMDC Leases have been fully settled. The validity period of all three mines of OMDC has been extended by the Govt of
Odisha. Further, as per Record of Proceedings of Hon’ble Supreme Court dated 29.1.2020, for two mines, out of three of the
mines of OMDC have been given permission to resume mining, subject to having clearances. The statutory clearances are
in the process of approval at different stages. In view of the fact that total compensation has been cleared by OMDC for its
Leases, steps being taken by different authorities in favour of resumption of OMDC Mines.
As the market value of the investment of EIL in M/s. OMDC is higher than that of its net assets value, no provision towards
impairment has been made in the financial statements of EIL towards its investment in M/s. OMDC.

104
! Subsequent to the decision of Board of M/s Power Grid Corporation Ltd for the closure of Joint venture-RINL Power grid
TLT Private Ltd, Board of RINL in the meeting on 08.03.19 also decided for winding up of above JV and Note seeking
approval for closure of RPTPL was sent to Ministry of Steel on 13th May 2019. Subsequent clarifications sought by MOS
were replied vide letter dated 7th June 2019. Request letters to expedite the process for according approval were sent dated
09.07.2019, 21.11.2019 and 19.12.2019.
MoS was once again requested expedite the approval for closure of RPTPL, vide letter dated 27th February, 2020. As
directed by RPTPL Board a Joint Working Committee (JWC) with representatives from both RINL and POWERGRID is
formed to expedite the process for short closing of all the contracts related to RPTPL Project.
JWC started working on modalities of short closing of all the contracts. Letters written to the contractual agencies intimating
the decision of fore closing of all the contracts related to RPTPL. Considering the above, to follow conservative basis
company has made provision for diminution in value of investment.
$ The JV Company is still pursuing for setting up the Project. Further, during the year, both the JV partners have contributed
1 Lakh each towards the Share Capital of RINMOIL. With this, total investment of the Company in RINMOIL is 12 Lakhs.

Interest in Subsidiary
Name of Entity Place of % of Ownership Relationship
Business Interest

Eastern Investment Limited ("EIL") Kolkata, India 51% Subsidiary

The Bisra Stone Lime Company Limited ("BSLC") * Kolkata, India 50% Subsidiary of EIL

*BSLC is a sub-subsidiary of RINL through EIL, which holds little over 50% stake in BSLC

Interest in Associates and Joint Ventures

Place of % of Ownership Accounting
Name of Entity Business Interest Relationship Method under
Consolidation
International Coal Ventures Private Limited New Delhi, India 26% Associate Equity method

RINMOIL Ferro Alloys Private Limited Visakhapatnam, India 50% Joint Venture Equity method

RINL Powergrid TLT Private Limited Visakhapatnam, India 50% Joint Venture Equity method
6 Loans
(Unsecured and considered good unless otherwise stated) ( in Crores)

Particulars 31st March 2020 31st March 2019

Non-Current Loans
Loans to Employees 24.45 46.14
Loan to Andhra Pradesh Industrial Infrastructure Corporation
(APIIC) (including Accrued Interest) 50.48 69.22
Total Long-Term Loans 74.93 115.36
(i) Particulars of Loans Receivables
Secured and considered good 0.00 0.00
Unsecured and considered good 74.93 115.36
which have significant increase in credit risk
credit impaired
(ii) Loans due by Directors/other officers Nil Nil
(iii) Loans due by private companies in which director of the Nil Nil
Company is a director

105
7 Other Financial Assets ( in Crores)
st st
Particulars 31 March 2020 31 March 2019
7A Non Current other Financial Assets
Security Deposits 0.99 1.06
Accrued Interest
- Employee Loans 22.25 22.99
Other Advances 0.14 0.09
Total Non-Current other Financial Assets 23.38 24.14
7B Current other Financial Assets
Current maturities of long term loans:
- Employee loans 18.05 20.84
- Loan to APIIC 25.14 27.46
Accrued Interest
- Employee loans 3.04 2.51
- Others 33.39 30.90
Security Deposits 375.92 331.51
Advances to Related Parties
- International Coal Ventures Private Limited* 1.54 1.41
- Rinmoil Ferro Alloys Private Limited* 1.21 1.21
Claims recoverable **# 191.77 191.11
Less: Provision for doubtful claims 72.09 119.68 52.53 138.58
Derivatives not designated as hedges 87.09 -
Other Receivables 2.92 2.21
Total Current other Financial Assets 667.98 556.63
(i) Advances due by Directors/Other Officers - -
(ii) * Advances due by private companies in which director of the Company is a director 2.75 2.62
(This advance is towards the expenditure incurred by the company on behalf of RINMOIL and amount given as advance
towards the expenditure of RINMOIL)
(iii) ** This includes an amount of 18.11 crores yet to be received from M/s New India Assurance Company towards insurance claims.
As against our final claim of 286.34 crore towards property damages caused by Hudhud cyclone, an amount of 170.59 crore
being amount recommended by surveyor and under consideration of insurance company has been accounted till FY-2018-19.
In addition to adhoc payment of 140.00 Crore, the Insurance Company has released 12.48 crore in Oct’19 as final settlement
of claim leaving balance of 18.11 Crore receivable as per recommendation of surveyor. However RINL has not agreed with the
settlement made by Insurance Company and preferred to settle the differences though Conciliation mechanism and informed
insurance company accordingly. RINL has nominated its member to the Conciliatory forum and requested insurance company
on 13.01.2020 for nomination of their representative to forum. After nomination of the representative by Insurance company,
the proceedings of conciliation have commenced. Necessary provision has been made for 18.11 crores.
# This includes 9.57 Crores claimed by the company on Mahanadi Coal Fields Ltd. (MCL) towards underloading and idle
freights. Out of which 5.44 Crores is remaining unsettled for more than 3 years. As the claim is tenable in terms of fuel supply
agreement with MCL, the company has already taken up and continuously followed up with MCL for their consideration and
early settlement of the claim.

8 A. Reconciliation of Effective Tax Rate ( in Crores)

Particulars 31st March 2020 31st March 2019
Profit Before Tax (4,287.51) (306.89)
Tax using the Company’s Domestic Tax Rate
(Current year 31.2% and Previous Year 31.2%) (1,337.69) (95.75)
Tax effect of:
Non-deductible tax expenses 3.20 3.34
Income not credited to SOPL 7.94 13.55
Scientific Research deduction (0.01) (0.03)
Income exempt/Expenses deductible from income taxes (36.38) 5.51
Recognition/Derecognition of Tax losses 991.43 (350.69)
Others (5.99) 20.47
(377.50) (403.60)

106
B. Recognised Deferred Tax Assets and Liabilities ( in Crores)

Particulars 31st March 2020 31st March 2019

Deferred Tax Liabilities
Property, Plant and Equipment and Intangible Assets 2,942.59 2,688.64
Total Deferred Tax Liabilities (A) 2,942.59 2,688.64
Deferred Tax Assets
Provision for Gratuity 227.47 173.35
Provision for Doubtful Debts, Advances, Claims, interest 32.73 26.41
Deferred Income - PPE 39.27 -
MAT Credit Entitlement 242.41 242.41
Losses available for offsetting against future taxable income 3,967.73 3,403.94
Others 17.23 16.06
Total Deferred Tax Assets (B) 4,526.84 3,862.17
Net Deferred Tax Liability/ (Asset) (A-B) (1,584.25) (1,173.53)
9 Other Non-Current Assets ( in Crores)

Particulars 31st March 2020 31st March 2019

Capital Advances 61.74 60.24
Others
Prepaid Expenses*
Loan to APIIC 11.66 17.49
Employee Loan 9.47 1.75
Total 82.87 79.48
(i) Advances due by Directors/Other Officers - -
(ii) Advances due by private companies in which director of the Company is a director - -
* Prepaid expenses is on account of fair valuation as per IND AS 109 which will be amortised as per the
amortisation schedule.
10 Inventories : (As taken and certified by the Management) ( in Crores)

Particulars 31st March 2020 31st March 2019

Raw Materials 1,875.50 2,377.92
Add: In-transit/ Under inspection 847.22 1,174.57
Add: Materials given on loan* 34.08 -
Less: Provision for shortages 692.27 573.93
2,064.53 2,978.56
Semi-finished/Finished goods 3,933.16 3,286.81
Add: In-transit/ Under inspection 121.41 82.40
4,054.57 3,369.21
Stores and Spares 850.96 1,086.34
Add: In-transit/ Under inspection 114.67 100.23
Less: Provision for Obsolescence & Non-moving items 53.82 45.23
911.81 1,141.34
Total 7,030.91 7,489.11
* This represents 48436.720 MT of pulverized coal lying with SAIL in terms of agreement for commodity loan.

107
Note: Valuation of Inventories
(i) Quantities of closing stock of Finished / Semi-finished / Raw materials / Coke and Other Byproducts have
been adopted as per book balances after adjusting for shortages/excesses identified on physical verification
at any time during the year.
(ii) Finished / Semi-finished / Coke and Other by products are valued at lower of Cost or NRV.
(iii) The cost of the following By-Products is determined as per the working guidelines approved by CMD:
a) Production Related Steel Scraps 90% of the lower of cost or domestic NRV of Pig Iron.
b) Production Related Iron Scraps 75% of the lower of cost or domestic NRV of Pig Iron.
c) Nut Coke 90% of the production cost of the BF Coke.
d) Coke Breeze 60% of the production cost of the BF Coke.
e) Coke Dust/ Sludge 40% of the production cost of the BF Coke.
(iv) All other By Products are valued at NRV wherever the cost for such products cannot be determined except
in case of stock of BF Granulated slag at dump yard for which no value is assigned other than dump slag
identified for sale.
(v) No credit is taken in the accounts for the stock of run of mines ore and rejects at mines.
(vi) Capital inventory of 82.19 crores lying at different construction zones/ with contractors on the reporting
date are included in CWIP (Refer Note No. 3F).
(vii) Trial run inventory of 21.22 crores (quantity of 5922 tonnes) has been shifted to normal inventory. The
impact of the same is 0.07 crores credit to P&L.
(viii) As an abundant prudence, during the year 3944.208 MT of finished product has been valued at scrap price
( ie., 90% of the lower of cost or domestic NRV of Pig Iron.)
ix) The stock of production related iron scrap and steel scrap has been considered in the accounts on the basis
of visual survey / estimates and are valued at 75 % and 90 % respectively, at lower of the cost of Pig Iron
and of the domestic net realisable value of Pig Iron.
11 Trade Receivables ( in Crores)

Particulars 31st March 2020 31st March 2019

Unsecured, Considered Good 611.23 1,130.38
Doubtful 26.60 26.04
637.83 1,156.42
Less: Loss Allowance
Doubtful 26.60 26.04
Total 611.23 1,130.38
Note:
(i) Debts due by Directors/other officers - -
(ii) Debts due by private companies in which director of the Company is a director - -
(iii) The Company's exposure to credit and currency risks, and loss allowances related to trade receivables
are disclosed in Note 38.
12 Cash and Cash Equivalents ( in Crores)

Particulars 31st March 2020 31st March 2019

Cheques in hand 1.73 77.96
Cash on hand 0.05 0.04
Balance with Banks :
- Current Account 4.14 31.16
- Deposit Accounts 4.69 4.39
- Prime Minister's Trophy Award Fund 7.76 7.88
Total 18.37 121.43

108
13 Other Tax Assets (Net) ( in Crores)

Particulars 31st March 2020 31st March 2019

Advance Income Tax - -
[Net of Provision for Tax of
NIL crores] (31st March 2019: NIL crores)
Total - -
14 Other Current Assets ( in Crores)

Particulars 31st March 2020 31st March 2019

Advances to Related Parties
- Bisra Stone Lime Company Limited (Trade Advance) 40.27 41.14
Advances to Others (Other than Capital Advances)
- Government Departments* 689.29 996.70
Less: GST Recoverable Pending Adjustment 174.97 514.32 430.89 565.81
- Contractors 6.84 10.89
Less: Provision for doubtful advances 0.20 6.64 0.20 10.69
- Suppliers 78.66 116.10
Less: Provision for doubtful advances 4.01 74.65 4.12 111.98
- Employees 28.58 19.85
Less: Provision for doubtful advances 0.01 28.57 0.01 19.84
- Others 56.07 79.61
Less: Provision for doubtful advances 7.49 48.58 7.36 72.25
Others
- Prepaid Expenses
'Employee Loan 4.14 5.25
'Loan to APIIC 5.83 5.83
'Others 16.49 13.25
- Assets held for Sale (Net of provision for loss) - 0.12
- Export Benefits Receivable 52.47 53.50
Total 791.96 899.66
(i) Advances due by Directors/Other Officers - -
(ii) Advances due by private companies in which director of the Company is a Director - -
*includes an amount of 26.50 crores deposited during current year vide CBDT OM dated 25.03.2020 under the
Direct Taxes Vivad se Vishwas Act,2020 (VsV Scheme), pending filing of declarations and finalisation of disputed
tax under the Rules notified thereunder and 100.90 crores paid to Chief Electrical Inspector to Govt of
AP- under protest in line with Supreme Court interim order towards electricity duty charges.
15 Share Capital ( in Crores)

Particulars 31st March 2020 31st March 2019

Authorised
4,890,000,000 (31st March 2019: 4,890,000,000)
equity shares of 10 each 4,890.00 4,890.00
3,110,000,000 (31st March 2019: 3,110,000,000) 7%
non-cumulative redeemable preference shares of 10 each 3,110.00 3,110.00
8,000.00 8,000.00
Issued, Subscribed and Paid-Up Capital
4,889,846,200 (31st March 2019: 4,889,846,200)
Equity Shares of 10 each. 4,889.85 4,889.85
Total 4,889.85 4,889.85

109
(i) Reconciliation of the number of Equity Shares outstanding at the beginning and at the end of the
reporting period:

Particulars 31st March 2020 31st March 2019

No. of shares Amount ) No. of shares Amount
( in crores) ( in crores)
Shares outstanding at the beginning of the year 4,88,98,46,200 4,889.85 4,88,98,46,200 4,889.85
Shares issued during the year - - - -
Shares Outstanding at the end of the year 4,88,98,46,200 4,889.85 4,88,98,46,200 4,889.85

Terms and rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of 10 each. Each
holder of the equity share, as reflected in the records of the Company as of the date of the shareholder meeting,
is entitled to one vote in respect of each share held for all matters submitted to vote in the shareholder meeting.
The Company declares and pays dividends in Indian rupees. The Company may declare dividend in the Annual
General Meeting as recommended by the Board of Directors.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the
remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion
to the number of equity shares held by the shareholders.
(ii) Particulars of Shareholders holding more than 5% of total number of Equity Shares
Particulars 31st March 2020 31st March 2019
No. of shares % of No. of shares % of
Holding Holding
Equity Shares of 10 each, fully paid up held
President of India 4,88,98,46,200 100% 4,88,98,46,200 100%

(iii) Company does not have any holding company as at 31st March 2020/ 31st March 2019
(iv) For the period of five years immediately preceeding the reporting date -
- The Company has not allotted any shares for consideration other than for cash.
- The Company has neither issued bonus shares nor has bought back any shares.
16 Other Equity ( in Crores)

Particulars 31st March 2020 31st March 2019

Reserves and Surplus
Retained Earnings
Balance at the commencement of the year (475.04) (606.36)
Add: Surplus as per Statement of Profit and Loss (3,910.17) 96.71
Add: Other Comprehensive Income (net of tax) (170.32) 34.61
Balance at the end of the period (4,555.53) (475.04)
Other Reserves
Capital Redemption Reserve
Balance at the commencement of the year 2,937.47 2,937.47
Movement during the period - -
Balance at the end of the period 2,937.47 2,937.47
Total Reserves and Surplus (1,618.06) 2,462.43
Total Other Equity (1,618.06) 2,462.43

110
17 Borrowings ( in Crores)

Particulars 31st March 2020 31st March 2019

17A Non-Current Borrowings
Term loan from Banks
-Secured Bank Loans 9,759.77 9,309.26
-Unsecured Bank Loans - -
Current Maturities of Term Loans 613.70 561.30
10,373.47 9,870.56
Less: Amount included in other financial liabilities-Current 613.70 561.30
Total Non-Current Borrowings 9,759.77 9,309.26
17B Current Borrowings
Loans from Banks
-Secured working capital borrowings
(by hypothecation of current assets) 5,080.08 5,105.07
-Secured foreign currency facilities
(Charge against Current assets) 1,497.62 -
-Unsecured working capital borrowings 4,644.37 2,630.22
-Unsecured foreign currency facilities 145.36 -
Commercial papers (Unsecured) - 1,985.73
Total Current Borrowings 11,367.43 9,721.02
Information about the Company's exposure to interest rate, foreign currency and liquidity risks is included in Note 38.
A. Terms of Repayment and Nature of Security of Term Loans
l Indian rupee loan amounting to 600.00 crore from SBI secured by primary security as pari passu first charge on
current assets of the company and collateral security as pari passu first charge on fixed assets of the company with
FACR of 1.33. The loan is repayable in structured consecutive quarterly instalments started from first quarter of FY
2017-18 and the last instalment is due on 31st March 2022.
l Indian rupee loan amounting to 337.50 crore from SBI secured by primary security as pari passu first charge on
current assets of the company and collateral security as pari passu first charge on fixed assets of the company with
FACR of 1.33. The loan is repayable in structured consecutive quarterly instalments started from first quarter of FY
2019-20 and the last instalment is due on 31st March 2023.
l Indian rupee loan amounting to 3564.00 crore from SBI secured by pari passu first charge on entire fixed assets
including CWIP of the company with FACR of 1.33. The loan is repayable in structured consecutive quarterly instalments
started from last quarter of FY 2016-17 and the last instalment is due on 31st March 2031.
l Indian rupee loan amounting to 1412.96 crore from SBI secured by pari passu first charge on entire fixed assets
including CWIP of the company with FACR of 1.33. The loan is repayable in structured consecutive quarterly instalments
starting from first quarter of FY 2018-19 and the last instalment is due on 31st March 2031.
l Indian rupee loan amounting to 1000.00 crore from Canara Bank secured by hypothecation of movable fixed assets
including Plant& machinery created out of proceeds of the term loan. The loan is repayable in structured consecutive
quarterly instalments starting from 30th Sep 2022 and the last instalment is due in 30th June 2027.
l Indian rupee loan amounting to 200.00 crore from Vijaya Bank secured as pari passu first charge on hypothecation of
movable fixed assets with FACR of 1.25:1. The loan is repayable in structured consecutive quarterly instalments starting
from 30th June 2022 and the last instalement is due on 31st March 2027.
l Indian rupee loan amounting to 500.00 crore from IDBI secured by primary security as pari passu first charge by
mortgage in favour of IDBI, of all immovable & movable fixed assets excluding Project land of the Forged Wheel Plant,
Lalganj, Uttar Pradesh both present and future. Collateral security as pari passu first charge on Plant and Machinery of
Company's Visakhapatnam Plant to the extent of loan amount.The loan is repayable in structured consecutive quarterly
instalments starting from 28th March,2022 and the last instalment is due on 28th December 2029.
l Indian rupee loan amounting to 1339.70 crore from Canara Bank secured by primary security as pari passu first charge
on movable fixed assets of the company both present and future including plant and machineries to be purchased out of
term loan.The loan is repayable in structured consecutive quarterly instalments starting from 21 st December 2023 and
the last instalment is due on 21st September 2028.
l Indian rupee loan amounting to 500.00 crore from Union Bank of India secured as pari passu first charge by hypothecation
on all existing/ future machinery/ plant/ vehicle/ capital goods/ assets/ craft and all those assets/ movable properties
and/ or capable of passing by delivery whether installed or not and whether now lying loose or in cases and now being
or at any time brought into or upon or at any time in course of transit to the premises/ factory of the borrower at
Visakhapatnam Steel Plant, Visakhapatnam and their other plants/ branches.The loan is repayable in structured

111
 consecutive quarterly instalments starting from 31st December 2020 and the last instalment is due on 30th September
2025.
l Indian rupee loan amounting to 307.03 crore from Vijaya Bank secured as pari passu first charge by hypothecation of
moveable fixed assets of the company with FACR of 1.25:1. The loan is repayable in structured consecutive quarterly
instalments starting from 31st August 2023 and the last instalment is due on 31st May 2028.
l Indian rupee loan amounting to 432.23 crore from SBI secured by primary security as pari passu first charge over
entire movable, immovable and intangible assets excluding project land of FWP, Lalganj, UP both present & future.
Collateral security as pari passu first charge over entire movable, immovable and intangible assets of company's
Visakhapatnam Plant to the extent of 133% of loan amount at all times both present & future. The loan is repayable in
structured consecutive quarterly instalments starting from 31st March 2022 and the last instalment is due on 31st
December 2029.
l Indian rupee loan amounting to 76.75 crore from Indian Bank secured by primary security as pari passu charge on the
entire unspecified movable fixed assets of the company on as is where basis to all the capex lenders with FACR of 1.20
times of term loan. The loan is repayable in structured consecutive quarterly instalments starting from 31st October 2022
and the last instalement is due on 31st July 2034.
l Indian rupee loan amounting to 47.98 crore from Allahabad Bank secured by primary security as pari passu charge on
unspecified movable fixed assets of the company to the extent of 125% of bank exposure.The loan is repayable in
structured consecutive quarterly instalments starting from month ending January 2025 and the last instalment is due in
month ending December 2029.
l Indian rupee loan amounting to 55.32 crore from Union Bank of India secured by hypothecation of all existing / future
machinery / plant/ vehicle / capital goods / assets / craft and all those assets / movable properties capable of passing
by delivery, whether installed or not and whether now lying loose or in cases and now being or at any time hereafter
brought into or upon or at any time in course of transit to the premises / factory of the borrower at Visakhapatnam Steel
Plant, Visakhapatnam - 530031 and their other plants / branches.The loan is repayable in structured consecutive
quarterly instalments starting from month ending May 2022 and the last instalment is due in month ending February
2027.
B. Loans guaranteed by Directors and Others Nil Nil
C. Default in repayment of Loans and Interest Nil Nil
D. Reconciliation of liabilities arising from Financing Activities ( in Crores)
For the year Cash Flows: For the year
Particulars ended 31st Inflow/ Non-Cash Changes ended 31st
March 2019 (outflow) March 2020
Foreign Fair Value
Exchange Change
Movement
Long-Term Borrowings 9870.56 502.91 - - 10373.47
(including Current Maturities)
Short Term Borrowings 9721.02 1559.54 86.89 - 11367.43
E. Company has availed Moratorium provided by RBI in respect of its loan repayments upto 30.06.2020
for a principal amount of 178.13 Crores and interest of 353.17 Crores. The amount outstanding as
on 31.03.2020 towards loan repayment is NIL and interest is 84.61 Crores.
18 Other Financial Liabilities ( in Crores)

Particulars 31st March 2020 31st March 2019

18A Non-Current other Financial Liabilities
Security Deposits @ 113.49 96.38
Other Liabilities# 50.22 -
Total Non-Current other Financial Liabilities 163.71 96.38
18B Current other Financial Liabilities
Current Maturities of long-term debt:
- Term loans 613.70 561.30
Interest accrued but not due on borrowings 114.01 7.38
Earnest Money, Security & Other Deposits 403.87 349.64
Capital Creditors 66.19 74.17
Other Financial Liabilities*^ 2,780.71 2,815.38
Total Current other Financial Liabilities 3,978.48 3,807.87

112
@ This includes performance retention deposits of 108.31 Crores ( FY 2018-19 85.57 Crores) from the
contractors which is repayable upon successful performance as per the terms of the contract.
# This represents lease liability of 50.22 Crore, arised due to implementation of IND AS 116, on account of
Land taken on lease from Indian Railways for establishing FWP.
* Other financial liabilities includes 464.99 Crore (Previous year 472.49 Crore) provision on account of pay
revision(pension) in respect of Executive employees and Non-Executive employees.
^ The current maturities of the said lease is 0.72 Crore and grouped under Current Other Financial Liabilties.
The Company's exposure to currency and liquidity risks related to financial liabilities is disclosed in Note 38.
19 Provisions ( in Crores)

Particulars 31st March 2020 31st March 2019

19A Non-Current Provisions
Provision for Employee Benefits
Liability for Compensated Absences 400.11 311.55
Liability for Retirement Benefits 645.19 515.20
Liability for Employee Family Benefit Scheme 161.35 168.12
Liability for Service Awards 50.71 40.95
Liability for Leave Travel Concession 5.20 12.86
Total Provisions for Employee Benefits (A) 1,262.56 1,048.68
Other Provision
Provision for Mines Closure Obligation 4.93 3.79
Total Other Provision (B) 4.93 3.79
Total Non-Current Provisions (A+B) 1,267.49 1,052.47
19B Current Provisions
Provision for Employee Benefits
Liability for Gratuity 729.06 555.62
Liability for Compensated Absences 23.91 19.47
Liability for Retirement Benefits 16.06 13.47
Liability for Employee Family Benefit Scheme 40.45 40.12
Liability for Service Awards 4.02 3.32
Liability for Leave Travel Concession 6.88 7.31
Total Provisions for Employee Benefits (A) 820.38 639.31
Total Current Provisions 820.38 639.31
Movement in Other Provision ( in Crores)
Particulars Mine closure obligation
st
Balance at 1 April 2019 3.79
Provisions made during the year 1.14
st
Balance at 31 March 2020 4.93
Mine Closure Obligation
A provision for Mine Closure Obligation is recognised considering the future obigation on the company for
the restoration of mines.

Name of the Mine Lease expiry

Jaggayyapeta 8-Aug-2020
Madharam 13-Jul-2020
Garbham 7-Oct-2022

113
20A Other Non Current Liabilities ( in Crores)

Particulars 31st March 2020 31st March 2019

Others
Deferred Income - Grants
Trophy Fund 7.76 8.12
Total 7.76 8.12
Deferred Income
The grant relating to Trophy fund represents the unspent amount received on account of Prime Minister Trophy , Steel Minister
Trophy and Steel Minister Development fund including interest earned.The same has to be spent for specific purposes and
will be amortised over the period in which the cost incurred shall be recognised . Wherever the Trophy Fund deposit is utilised
for construction of any asset,the transfer from the Trophy Fund is effected only on capitalisation of said assets.
PM Trophy Fund and PM Trophy Fund Deposit changes during the year 19-20:
Note:12 Note:20
Particulars Deposit Trophy Fund Included note ref
Opening Balance 7.88 8.12
Add:Interest during the year 0.58 0.58
Less:Utilisation
(a) Providing Acs in CWC-II for employee welfare -capitalised 0.70 0.70 3.A (Additions to PPE)
(b)Wellness Centre for employee welfare - Capitalised 0 0.24 3.A (Additions to PPE)
Closing Balance 7.76 7.76
20B Government Grants Deferred - PPE ( in Crores)
st st
Particulars 31 March 2020 31 March 2019
Deferred Income - Government Grants
Non Current 119.67 5.21
Current 6.18 0.37
Total Government Grants - PPE 125.85 5.58
The grants relating to PPE represents unamortised Subsidy received from Government towards establishment of 5
MW Solar Power Plant, Government Grant received towards the value of Plant & Machinery supplied free of cost by
NEDO, Nodal Agency of Japan Government, under the MOU entered between Government of India and NEDO and
unamortised value of PPE acquired out of Trophy Fund. This amount will be amortised over the useful life of the
relevant asset. This amount will be amortised over the useful life of the relevant asset as per Accounting policy no. 2.17
There are no unfulfilled conditions or contingencies attached to these grants.
Breakup Value of grants relating to PPE :
Particulars 31st March 2020 31st March 2019

5 MW Solar Power Plant 4.43 4.64

PM Trophy Fund 1.72 0.94
NEDO Grant 119.70 -
Total 125.85 5.58
21 Trade Payables
Particulars 31st March 2020 31st March 2019

Trade Payables
-Micro Enterprises and Small Enterprises 48.41 109.63
-Other than Micro Enterprises and Small Enterprises 3,449.04 2,446.81
Total 3,497.45 2,556.44
All trade payables are ‘current’.
The Company’s exposure to currency and liquidity risks related to trade payables is disclosed in Note 38
114
Note : Information relating to 'Supplier' under the provisions of Micro, Small and Medium Enterprise Development
Act, 2006

Particulars 31st March 2020 31st March 2019

(i) The amounts due thereon remaining unpaid to any
supplier as at the end of the year
- Principal Nil Nil
- Interest Nil Nil
(ii) Payments made beyond the appointed day and
interest thereon during the year Nil Nil
(iii) The amount of interest due and payable for the period
of delay in making payments but without adding the
interest specified in the act. Nil Nil
(iv) The amount of interest accrued and remaining unpaid
at the end of the year Nil Nil
(v) The amount of further interest remaining due and
payable in the succeeding year until the date such
interest is actually paid Nil Nil
22 Derivatives - Liabilities ( in Crores)
st st
Particulars 31 March 2020 31 March 2019

Foreign Exchange Contracts - -

Total - -
23 Other Current Liabilities ( in Crores)
st st
Particulars 31 March 2020 31 March 2019
Income received in Advance 1.59 1.71
Advances from Customers 243.33 300.92
Statutory Liabilities 214.35 349.91
Other Advances 0.42 0.04
Total 459.69 652.58
24 Revenue from Operations ( in Crores)
Particulars For the year ended
st
31 March 2020 31st March 2019
A. Sale of Products
Domestic Sales 14,339.39 19,539.34
Less: Sale of trial run production (transferred to CWIP)* - 506.32
14,339.39 19,033.02
Export Sales 1,479.85 1,305.04
Less: Sale of trial run production (transferred to CWIP) - -
1,479.85 1,305.04
Total Sale of Products (A) 15,819.24 20,338.06
B. Other Operating Revenues
Internal Consumption 17.15 19.03
Export Benefits 53.11 113.07
Others 30.96 21.87
Total other Operating Revenues (B) 101.22 153.97
Total Revenue from Operations (A+B) 15,920.46 20,492.03
*There is no trial run sales during the year,as the trial run inventory is transferred to normal inventory.

115
A. Stock and Sales
31st March 2020
Opening Stock Sales Closing Stock
Particulars Quantity Value Quantity Value Quantity Value
(in Tonnes) ( in Cr) (in Tonnes) ( in Cr) (in Tonnes) ( in Cr)
Pig Iron 31,211 90.36 62,385 150.67 16,472 41.54
Blooms 2,06,046 695.51 7,63,306 2,205.64 2,96,769 971.06
Billets 15,563 52.81 9,284 31.40 41,251 141.02
Finished Products 2,77,000 1,066.30 34,45,860 12,563.84 4,16,530 1,565.67
Sundries* - -
- Coke and Coke Products 3,49,482 611.31 199,190 287.13 3,25,743 565.23
- Others 38,27,174 852.91 18,97,354 580.56 23,35,592 770.04
Total 3,369.21 15,819.24 4,054.56

31st March 2019

Opening Stock Sales Closing Stock
Particulars Quantity Value Quantity Value Quantity Value
(in Tonnes) ( in Cr) (in Tonnes) ( in Cr) (in Tonnes) ( in Cr)
Pig Iron 9,458 25.50 93,214 255.91 31,211 90.36
Blooms 2,10,578 621.42 7,21,778 2,370.33 2,06,046 695.51
Billets 11,285 34.47 21,501 81.85 15,563 52.81
Finished Products 1,44,199 516.14 40,38,246 16,805.04 2,77,000 1,066.30
Sundries*
- Coke and Coke Products 4,27,073 699.28 1,29,053 177.41 3,49,482 611.31
- Others 21,35,642 513.97 29,52,101 647.51 38,27,174 852.91
Total 2,410.77 20,338.06 3,369.21
(*) Quantity for Argon Gas, Oxygen Gas and Nitrogen Gas is in Thcum.
Sub Note:
(i) Closing stock includes stock in custody of Consignment/ Handling Agents & GIT which is 30899.15 tonnes
of value 121.43 Crore (Previous year 20642.66 tonnes of value 82.40 Crore).
(ii) Figures of closing stock are after adjustment for internal consumption, transfers to capital works, shortages / excesses.
(iii) Others include By-products, Aux Shop, Iron & Steel Scrap, Defectives,Rejects, Hot Metal, Sized Iron Ore,
Gross Sinter & Base Mix.
25 Other Income ( in Crores)
For the year ended
Particulars st
31 March 2020 31st March 2019
Interest Income :
Banks 0.30 0.30
Loans to Employees 8.65 9.81
Others * 59.80 78.50
Dividend Income on Equity Instruments - 0.04
Rent Recoveries 37.27 35.01
Liquidated Damages 94.55 75.54
Net Gain on sale of Property, Plant and Equipment 0.85 0.99
Write back of provisions no longer required 0.64 1.42
Sundry Receipts ** 37.02 145.07
Total 239.08 346.68

116
Note:
(a) * NIL for FY 2019-20 ( 13.12 crore for FY 2018-19 towards accrued interest upto 31.03.2019 accounted
based on relief given by CIT(A)-9 Hyderabad vide common order dt.30.04.2019 for AY 2012-13 to AY 2014-
15 in line with IND AS-10.)
(b ) ** includes an amount of : (i) NIL for FY 2019-20 ( 54.75 Crs. for FY 2018-19 refund received from M/s.
NMDC during the year 2018-19 towards DMF (District Mineral Fund) for the period 12.01.2015 to 16.09.2015)
(ii) 1.74 Crore rebate received from Indian Railways during the year 2018-19 towards fulfillment of Gross
Freight Revenue(GFR) and volume discount pertaining to the year 2017-18.(iii) 26.38 Crore of GST
Compensation Cess refund claimed during the year 2018-19 is for the FY 2017-18 as per circular no.79/53/
2018-GST dated 31.12.2018
(c) **As against our final claim of 286.34 crore towards property damages caused by Hudhud cyclone, an
amount of 170.59 crore being amount recommended by surveyor and under consideration of insurance
company has been accounted till FY-2018-19. In addition to adhoc payment of 140.00 Crore, the Insurance
Company has released 12.48 crore in Oct’19 as final settlement of claim leaving balance of 18.11 Crore
receivable as per recommendation of surveyor. However RINL has not agreed with the settlement made by
Insurance Company and preferred to settle the differences though Conciliation mechanism and informed
insurance company accordingly. RINL has nominated its member to the Conciliatory forum and requested
insurance company on 13.01.2020 for nomination of their representative to forum. After nomination of the
representative by Insurance company, the proceedings of conciliation have commenced. Necessary provisions
of 18.11 crores has been made as stated under note 7B.

26 Cost of Material Consumed ( in Crores)

Particulars For the year ended
31st March 2020 31st March 2019
Raw Materials
Coal 5,908.68 7,513.52
Coke and Coke Breeze 612.62 530.30
Iron Ore 3,867.84 4,539.45
Limestone 233.94 232.55
Dolomite 166.19 145.90
Silico Manganese 537.21 622.73
Ferro Silicon 80.39 111.10
Aluminium 107.22 145.04
Manganese Ore 2.33 3.86
Petroleum Coke 40.98 53.25
Sea Water Magnesite 20.86 11.25
Others 66.35 66.64
Total 11,644.60 13,975.58
Add: Output from Trial Run Production 21.22 14.48
Less: Material Consumed for Trial Run Production - 193.97
Less: Inter Account Adjustments - Raw Material Mining Cost 68.49 65.84
Total 11,597.33 13,730.25

117
27 Changes in Inventory of Finished Goods and Work-In-Progress ( in Crores)
Particulars For the year ended
st
31 March 2020 31st March 2019
Opening Stock 3,369.21 2,410.77
Less: Closing Stock 4,054.57 3,369.21
Total (685.36) (958.44)

Note :
( in Crores)
Particulars For the year ended
st
31 March 2020 31st March 2019
Cost of Inventories valued at net realisable value 2,070.16 447.31
Inventories valued at net realisable value 1,928.71 446.96
Write down of Inventories charged as expense 141.45 0.35

28 Employee Benefits Expense ( in Crores)

Particulars For the year ended
st
31 March 2020 31st March 2019
Salaries and Wages 2,164.74 2,042.88
Contribution to Provident Fund and other funds 293.26 245.67
Staff Welfare Expenses 162.66 149.73
Total 2,620.66 2,438.28

Note :
(i) Expenditure on Employee Benefits not included above and charged to: ( in Crores)
Particulars For the year ended
st
31 March 2020 31st March 2019
Capital Work in Progress / Expenditure
During Construction
Salaries and Wages 19.97 (0.36)
Company's contribution - provident fund & other funds 2.72 1.03
Staff Welfare Expenses 0.88 0.56
Total 23.57 1.23

29 Finance Costs ( in Crores)

For the year ended

Particulars st
31 March 2020 31st March 2019
Interest Expense on Financial Liabilities :
Foreign Currency Facilities 48.71 39.03
Bank Loans and Commercial Papers 1,421.59 1,236.02
Others 18.32 1.25
Other Borrowing Costs 9.61 1.31
Total 1,498.23 1,277.61

118
Note: (i) Expenditure on Finance Cost not included above and charged to: ( in Crores)
Particulars 31st March 2020 31st March 2019
Capital Work in Progress / Expenditure During
Construction
Interest - Banks 263.53 216.87
Interest on Lease Liability 4.47 0.00
Total 268.00 216.87
(ii) In case of general borrowings , the weighted average rate of borrowing cost for the year 2019-20 is 9.38%
( FY 2018-19 : 9.23%)

30 Depreciation and Amortisation Expense ( in Crores)

Particulars For the year ended
st
31 March 2020 31st March 2019
Depreciation of Property, Plant and Equipment 1,107.52 1,048.06
Amortisation of Intangible Assets 1.29 9.53
Total 1,108.81 1,057.59

31 Other Expenses ( in Crores)

Particulars For the year ended
31st March 2020 31st March 2019
Consumption of Stores and Spare Parts 1,167.72 873.68
Power and Fuel (Refer note 31.1) 1,148.30 1,148.11
Repairs and Maintenance (Refer note 31.2) 527.65 498.34
Remuneration to Auditors (Refer note 31.3) 0.23 0.22
Rent 2.53 2.46
Rates and Taxes 5.56 6.45
Insurance 21.05 17.96
Handling and Scrap Recovery 233.00 234.43
Freight Outward 472.33 597.27
Research and Development Expense 0.49 0.22
Provisions
Shortage/damaged material/obsolescence/non-moving items of stores 8.59 6.36
Doubtful Advances and Claims 19.84 1.00
Doubtful Debts 1.86 5.42
Provision for Investments 4.10 -
Non Recoverable Interest 0.01 0.59
Write-offs
Property, Plant and Equipment written off 2.96 1.24
Shortage /damaged material /obsolescence /non-moving items of stores - 0.01
Doubtful Advances and Claims - -
Unviable Mines expenditure- written off - -
Sundries 50.89 53.60
Net (Gain) /Loss arising on Financial instruments designated as FVTPL (86.95) (103.67)
Donation 4.36 3.59
Miscellaneous Expenses (Refer note 31.4) 540.89 478.43
Total 4,125.41 3,825.71
(i) Development expenditure is capitalized only if it can be measured reliably and the related asset and process
are identifiable and controlled by the Company.
(ii) Expenditure towards research and other development is accounted under the primary heads of account
and is expensed as and when incurred.
(iii) Capital Expenditure on Research and Development is included in the Intangible assets.

119
31.1 Power and fuel ( in Crores)
Particulars For the year ended
st
31 March 2020 31st March 2019
Purchased power 392.05 403.02
Coal 753.84 741.86
Furnace oil/ LSHS/ LDO 2.41 3.23
Total 1,148.30 1,148.11
Cost of Power and fuel does not include the cost of generation of power and production of certain fuel elements in the
plant which are internally consumed. The related expenses have been included under the primary heads of account.
31.2 Repairs and maintenance ( in Crores)
Particulars For the year ended
st
31 March 2020 31st March 2019
Plant and Equipment 364.78 331.78
Buildings 30.53 34.27
Others 132.34 132.29
Total 527.65 498.34

31.3 Remuneration to Auditors ( in Crores)

Particulars For the year ended
st
31 March 2020 31st March 2019
As auditor - Statutory Audit 0.18 0.16
In other capacity
Taxation matters 0.04 0.04
Other services 0.01 0.01
Reimbursement of expenses 0.01 0.01
Total 0.23 0.22

31.4 Miscellaneous expenses ( in Crores)

Particulars For the year ended
st
31 March 2020 31st March 2019
Technical services 33.39 9.49
Travelling expenses 73.56 69.45
Printing and stationery 1.95 2.14
Postage and telephone 3.03 3.29
Water Charges 107.61 101.32
Legal expenses 4.63 8.51
Bank charges 12.08 10.61
Community development welfare 3.60 6.07
Security expenses 108.71 95.96
Entertainment expenses 1.90 1.99
Advertisement 6.63 21.17
Demurrages and wharfages 5.23 26.34
ISO Audit Expenses 0.23 0.14
Selling expenses 15.82 19.57
Exchange differences (Net) 162.52 102.38
Total 540.89 478.43

120
31.5 Details of Corporate Social Responsibility Expenditure ( in Crores)
Particulars For the year ended
31st March 2020 31st March 2019
(a) Amount required to be spent by the
Company during the year Nil Nil
(b) Amount spent during the year
- Construction/ acquisition of any asset - -
- On purpose other than above 7.96 10.30
Total 7.96 10.30

31.6 Expenditure on Other Expenses not included above and charged to:
( in Crores)
Particulars For the year ended
31st March 2020 31st March 2019
Capital Work in Progress /
Expenditure During Construction
Power and Fuel 1.60 -
Repairs and Maintenance -
Plant and Equipment and others - -
Security Expenses - -
Travelling Expenses 1.15 0.94
Postage and Telephone - -
Water charges 1.96 13.82
Advertisement - -
Total 4.71 14.76
31A Exceptional Items ( in Crores)
For the year ended
Particulars st
31 March 2020 31st March 2019
Liability towards GRID Support charges* 181.97 -
Write back of pension liabilities** - (62.53)
Reversal of wages and salary*** - (162.87)
Total 181.97 (225.40)
* APERC passed the final order on 08-02-2002 for 181.97 Crores for Grid Support Charges on certain
High tension Consumers based on the proposal of APTRANSCO.
RINL challenged the said Order dated 08-02-2002 in High Court of AP in CMA No.1200 of 2002. CMA was
allowed in favour of RINL on 14.11.2003. APERC & APTRANSCO filed two separate suits vide Civil Appeal No.
1946/2004 & 1947/2004 in Supreme Court.
Supreme Court while disposing the case on 29.11.2019 maintained that the judgement and orders passed
by the High Court relating to wheeling charges and Grid support charges and that passed by the APTEL
regarding continuance of incentive as per GO MS dated 18.11.1997 and 22.12.1998 are set aside. The
appeals are allowed, and the orders passed by APERC are restored.
The Company has recognised this amount as a liability as on 31-03-2020 in its books of Accounts pending
the claim raised by APERC.

121
 ** The following note relates to FY 2018-19 -
Subsequent to the approval of the pension scheme of the company by Ministry of Steel, the Board of
Directors of the Holding Company, keeping in view affordability and financial sustainability to pay by the
Company, revised pension benefits to 3% of Basic Pay + DA for Executives and 2% of Basic Pay + DA for
Non-Executives in the year of Loss and and 9% of Basic Pay + DA for Executives and 6% of Basic Pay + DA
for Non-Executives in the year of Profits.Accordingly the provision for pension has been reworked and an
amount of 62.53 crore provided upto 31st March, 2018 has been written back during the year 2018-19 and
shown as exceptional item.
Write back of Pension Liabilities details: ( in Crores)
Executive Pension Non-Executive Pension Total
Pension to be
Pension To be Actual Excess(-)/ provided @ Actual Excess(-)/ Excess(-)/
Period provided @ 9% for Provided in Short (+) 6% for Profit Provided in Short (+) Short (+)
Profit years and 3% the books provision years and 2% the books provision provision
for Loss years for Loss
years
Jan'2007 to
Mar'2018 295.37 280.09 15.28 15.28
Jan'2012 to
Mar'2018 144.88 225.09 -80.21 -80.21
Excess provision to be written off: -64.93
Add: Amount transferred to EDC /CWIP 2.40
Net amount shown under Exceptional items. -62.53

*** As per Department of Public Enterprise’s (DPE) guidelines, pay revision of executives and non- executive
employees of the company are subject to fulfilment of affordability and financial sustainability clause. The
company made provision for pay revision during the year 2017-18 taking into consideration the
representations made by Employees’ Associations of the Company to various Govt authorities including
Administrative Ministry (Ministry of Steel) which in turn created constructive obligation on the company as
on 31.03.2018. However, subsequent to the clarification during the financial year 2018-19 given by DPE
vide Office Memorandum dt. 10.1.2019 on the applicability of affordability clause exemption from which
could be obtained only by Cabinet approval, provision made towards salary revision of 162.87 crores for
executive and non executives employees during the year 2017-18, was been written back during the year
2018-19 since the said constructive obligation was no more existing as on 31.03.2019. The said write back
was disclosed under ‘Exceptional Item’ in the P & L Account. In the opinion of the Company’s management
no liability is envisaged on account of the said pay revision on the date of this Balance Sheet.

32 Statement of Compliance

These are the Company's separate financial statements prepared in accordance with IND AS.

33 Use of Estimates and Judgement

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment within the next financial year are included in the following notes:

122
 Note 8 – utilization of tax losses

Note 34 – measurement of defined benefit obligations

Notes 19 and 39 – provisions and contingencies

34 Employee Benefits

(i) Contribution to Superannuation Benefit Scheme

a) An amount of 39.84 Crore (31st March 2019: 6.93 Crore) recognised in the Statement of Profit and Loss
Account and 0.45 Crore (31 st March 2019: 0.04 Crore) in Capital Work in Progress towards
Superannuation Benefit Scheme (Post Employment Benefit - Defined Contribution Plan).

b) Pension

The cumulative provision/liability towards pension benefit (Post Employment Benefit - Defined Contribution
Plan) for executive & non-executive employees, amounting to 462.89 Crore for FY 2019-20.

(ii) General description of the Post Employment Benefits

a) Provident Fund

The Company pays fixed contribution to Provident Fund, at predetermined rates, to a separate Trust, which invests
the funds in permitted securities. On the contributions, the trust is required to pay a minimum rate of interest, to the
members, as specified by Government of India. The obligation of the Company is limited to the shortfall in the rate
of interest on the Contribution based on its return on investments as compared to the declared rate.

The defined benefit plans expose the Company to actuarial risks, such as longevity risk, currency risk,
interest rate risk and market (investment) risk.

b) Gratuity

The Company has a defined benefit gratuity plan in India, governed by the Payment of Gratuity Act, 1972.
The Gratuity plan entitles an employee, who has rendered at least five years of continuous service, to
receive 15 days salary for each year of completed service at the time of retirement/ exit. The defined benefit
gratuity is fully funded by the company. The funding requirements are based on the gratuity fund's actuarial
measurement framework set out in the funding policies of the plan. Employees do not contribute to the plan.

c) Retirement Settlement Benefits

The retired employees, their dependents, as also the dependents of the employees expired while in service
are entitled for travel and transport expenses to their place of permanent residence.

d) Retirement Medical Benefits

Medical benefits are available to retired employees at the Company's hospital/ under the health insurance policy.

e) Farewell Scheme

Employees superannuating from the service of the company shall be given 10 Gms of gold each.The scheme
shall cover all regular employees of the company.

123
(iii) Other Disclosures, as required under IND AS 19 on "Employee Benefits", in respect of post
employment defined benefit obligations are

- Gratuity ( in Crores)

Particulars 31st March 2020 31st March 2019

Reconciliation of present value of
defined benefit obligation
Balance at the beginning of the year 1,422.90 1,395.52
Benefits paid (95.75) (77.66)
Current service cost 28.70 22.69
Past service cost - -
Interest cost 105.94 108.05
Actuarial loss/ (gain) on obligation 103.37 (25.70)
Balance at the end of the year 1,565.16 1,422.90
Reconciliation of the present value of plan assets
Balance at the beginning of the year 867.29 849.65
Contributions paid into the plan 2.00 35.20
Benefits paid (95.75) (77.66)
Expected return 65.65 59.48
Actuarial gain/ (loss) on plan assets (3.09) 0.62
Balance at the end of the year 836.10 867.29
Net defined benefit liability (asset) 729.05 555.61
Expense recognised in profit and loss
Current service cost 28.70 22.69
Interest cost 40.29 48.57
Past service cost
Charged to P & L - -
Charged to Capital Work in Progress /
Expenditure During Construction - -
Interest income - -
68.99 71.26
Remeasurements recognised in other
comprehensive income
Actuarial (gain) / loss on defined benefit obligation 103.37 (25.70)
Difference between actual return and interest income
on plan assets - (gain)/loss 3.09 (0.62)
106.46 (26.32)
Plan Assets
Cash and Cash Equivalents 2.74 3.41
Funds managed by Insurer 833.36 863.88

124
 - Retirement Medical Benefits ( in Crores)
Particulars 31st March 2020 31st March 2019
Reconciliation of present value of defined benefit obligation
Balance at the beginning of the year 473.85 449.74
Benefits paid (10.63) (7.44)
Current service cost 13.44 14.15
Interest cost 36.01 34.81
Actuarial loss/(gain) on obligation 100.48 (17.41)
Balance at the end of the year 613.15 473.85
Expense recognised in profit and loss
Current service cost 13.44 14.15
Interest cost 36.01 34.81
49.45 48.96
Remeasurements recognised in other comprehensive income
Actuarial (gain) / loss on defined benefit obligation 100.48 (17.41)
100.48 (17.41)
- Retirement Settlement Benefits ( in Crores)
Particulars 31st March 2020 31st March 2019
Reconciliation of present value of defined benefit obligation
Balance at the beginning of the year 54.82 47.41
Benefits paid (3.18) (2.94)
Current service cost 4.05 3.95
Interest cost 4.16 3.69
Actuarial loss/(gain) on obligation (11.76) 2.71
Balance at the end of the year 48.10 54.82
Expense recognised in profit and loss
Current service cost 4.05 3.95
Interest cost 4.16 3.69
8.21 7.64
Remeasurements recognised in other comprehensive income
Actuarial (gain) / loss on defined benefit obligation (11.76) 2.71
(11.76) 2.71
- Farewell Scheme ( in Crores)
Particulars 31st March 2020 31st March 2019
Reconciliation of present value of defined benefit obligation
Balance at the beginning of the year 41.05 40.32
Benefits paid (2.23) (1.52)
Current service cost 1.09 1.01
Interest cost 3.08 3.04
Actuarial loss/(gain) on obligation 8.36 (1.80)
Balance at the end of the year 51.35 41.05
Expense recognised in profit and loss
Current service cost 1.09 1.01
Interest cost 3.08 3.04
Past service gain - -
4.17 4.05
Remeasurements recognised in other comprehensive income
Actuarial (gain) / loss on defined benefit obligation 8.36 (1.80)
8.36 (1.80)

125
 Actuarial Assumptions
Principal actuarial assumptions at the reporting date (expressed as weighted averages): ( in Crores)

Particulars 31st March 2020 31st March 2019

Discount rate 6.65% 7.57%
Rate of increase in compensation levels 7.00% 7.00%
Expected return on plan assets 6.65% 7.57%
Medical Inflation Rate 5.00% 5.00%
Sensitivity Analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligation and current service cost by the amounts shown below:
- Gratuity ( in Crores)
Particulars 31st March 2020 31st March 2019
Increase Decrease Increase Decrease
1. Effect of 0.5% Change in the assumed discount rate
- Defined benefit obligation (56.33) 59.34 (50.44) 53.29
- Current service cost - - - -
2. Effect of 0.5% Change in the assumed salary escalation rate
- Defined benefit obligation 27.02 (28.82) 24.52 (26.25)
- Current service cost - - - -
In the absence of declaration of rates by LIC towards traditional policy, the same has been arrived by considering
the difference between the rate as declared in 2018-19 by SBI and LIC for such policy.

- Retirement Medical Benefits ( in Crores)

Particulars 31st March 2020 31st March 2019
Increase Decrease Increase Decrease
1. Effect of 0.5% Change in the assumed discount rate
- Defined benefit obligation (43.24) 50.55 (36.89) 40.97
- Current service cost - - - -
2. Effect of 0.5% Change in the assumed medical inflation rate
- Defined benefit obligation 52.68 (49.19) 42.39 (38.62)
- Current service cost - - - -
- Retirement Settlement Benefits ( in Crores)
Particulars 31st March 2020 31st March 2019
Increase Decrease Increase Decrease
Effect of 0.5% Change in the assumed discount rate
- Defined benefit obligation (1.38) 1.47 (1.60) 1.70
- Current service cost - - - -
- Farewell Scheme ( in Crores)
Particulars 31st March 2020 31st March 2019
Increase Decrease Increase Decrease
Effect of 0.5% Change in the assumed discount rate
- Defined benefit obligation (1.61) 1.84 (1.38) 1.54
- Current service cost - - - -

126
 Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does
provide an approximation of the sensitivity of the assumptions shown.
(iv) Provident Fund :
The Company's contribution paid/ payable during the year to Provident Funds are recognised in the Statement of
Profit & Loss. The company's Provident Fund Trusts are exempted under section 17 of the Employees' Provident
Fund and Miscellaneous Provisions Act, 1952. The conditions for grant of exemption stipulated that the employer
shall make good, deficiency if any, in the interest rate declared by the Trusts vis-a-vis statutory rate. The Company
does not anticipate any further obligations in the near forseeable future having regard to the assets of the funds and
return on investment. This Note is to be read with Note No 34(ii)(a).
35 Capital Management
The Company aims to maintain a strong capital base so as to maintain the confidence of investor, creditor and market
and to sustain future development of the business.
The Company monitors capital using a ratio of 'adjusted net debt' to 'adjusted equity'. For this purpose, adjusted net
debt is defined as total liabilities, comprising interest-bearing loans and borrowings and lease liability, less cash and
cash equivalents. Adjusted equity comprises all components of equity other than amounts accumulated in the effective
portion of cash flow hedges and cost of hedging, if any.
The Company's adjusted net debt to equity ratio at the reporting dates were as follows:
( in Crores)

Particulars 31st March 2020 31st March 2019

Total Net Debt 21,791.83 19,591.58
Less: Cash and Cash Equivalents 18.37 121.43
Adjusted Net Debt 21,773.46 19,470.15
Total Equity 3,271.79 7,352.28
Less: Cost of Hedging - -
Adjusted Equity 3,271.79 7,352.28
Adjusted Net Debt to Adjusted Equity Ratio 6.65 2.65
36 Earnings Per Share (not annualised)
Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the group
- by the weighted average number of equity shares outstanding during the financial year:
The calculations of profit attributable to equity shareholders and weighted average number of equity shares outstanding
for purposes of basic earnings per share calculation are as follows:

Particulars 31st March 2020 31st March 2019

i. Profit/ (loss) attributable to equity shareholders ( in Crore) (3,910.17) 96.71
ii. Weighted average number of Equity
Shares outstanding during the year 4,88,98,46,200 4,88,98,46,200
iii. Face value per share ( ) 10 10
Basic and Diluted EPS ( ) (8.00) 0.20
The Company does not have any potentially dilutive equity shares outstanding during the year.
37 Leases
RINL as a Lessee
Other Informations:
1. Nature of Lease: The Company has entered into Long term lease which are as follows:
a) Land measuring 1.00 acre at Mumbai taken on Lease from CIDCO towards operation of stockyard for storing and
selling steel materials for a period of 60 years.

127
 b) Land measuring 40.47 acres at Rai Bareli from Indian Railways towards establishment of Forged Wheel
Plant for a period of 30 years.
c) Area Measuring 350.396 sqaure meter in Multistorey Building taken on lease from M/s NBCC(India)
Limited for a period of 99 years.
2. Interest Expenses on Lease Liabilities for the year 2019-20 is 4.47 Crores (FY 2018-19 : NA)
3. Total Cash outflow for leases for the year 2019-20 is 5.14 Crores (FY 2018-19 : NA)
4. Restrictions or covenants imposed by leases,
a) Forged Wheel Plant Lease
- The lessee shall not create any lien or charge or encumbarance on the site except as permitted in this
Land lease Agreement.
- After the expiry or termination of the Land Lease Agreemnt , the site should be handed over to the
Lessor.
b) Mumbai stockyard Lease - NIL
5. Sale and Lease back transactions.- NIL.
6. Future cash outflows that are not reflected in the measurement of lease liability - NIL
7. Lease liability outstanding as on 31.03.2020 50.93 Crores. Current maturities of lease liability is 0.72
Crores.
8. Maturity analysis of lease liability from 01.04.2020 (undiscounted)

( in Crores)

Particulars < 12 Months 01-05 Years Over 5 Years Total Cash Flow Carrying Amount
Lease Liability 5.14 25.68 87.31 118.13 50.93

RINL as a Lessor
1. Nature of Lease: - The Company has given land on Operating lease basis to various agencies. The details
of major lease are as follows:
a) 149.25 acres of land allotted to Power Grid Corporation of India Ltd for installation of Grid & Staff Quarters
for a period of 33 years
b) 49.50 acres of land allotted to NTPC Ltd.(Simhadri) for Rail Road Corridor for a period of 99 years
c) 5.00 acres of land allotted to APIIC for Laying Water Pipeline for Pump House for a period of 33 years
d) 3.33 acres of land allotted to Gangavaram Port Ltd. For laying Railway Track for a period of 33 years
e) 9.27 acres of land alloted to M/s Air Liquide India Holding Pvt Ltd. For Construction of Air Separation Plant
(BOO basis) for a period of 18.5 years.
2. Lease Income during the year 2019-20 is 0.07 Crores (FY 2018-19: 0.07 Crores)
3. Income relating to variable lease receipts (not depending on index or rate) during the year 2019-20 is NIL
(FY 2018-19: NIL)
4. Risk Management strategy ie., Buy back agreements, Guaranteed residual value, variable lease receipts- NIL
5. Undiscounted lease receipts.
( in Crores)

Particulars < 12 Months 01-05 Years Over 5 Years Total Cash Flow
Lease Receipts 0.07 0.35 1.14 1.56

128
 38 Financial Instruments - Fair Values and Risk Management

129
A. Accounting Classifications and Fair Values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.
31st March 2020 ( in Crores)
Carrying Amount Fair Value

Particulars Other Other

Fair Value Mandatorily Financial Financial Total
Assets - Liabilities -
Hedging at FVTPL Amortised Amortised Carrying Level 1 Level 2 Level 3 Total
Instruments others Cost Cost Amount

Financial Assets
measured at Vair Value
Forward Contracts* 87.09 87.09
- 87.09 - - 87.09 - - - -
Financial Assets not
measured at Fair Value
Security Deposits* 376.91 376.91 -
Employee Loans 42.50 42.50 -
Loans and Advances 78.51 78.51 -
Trade Receivables* 611.23 611.23 -
Accrued Interest* 58.68 58.68 -
Cash and Cash Equivalents* 18.37 18.37 -
Other Receivables* 122.60 122.60 - - - -
- - 1,308.80 - 1,308.80 - - - -
Financial Liabilities
measured at Fair Value
Interest Rate Swaps - - - - - -
Forward Exchange Contracts - - - - - -
- - - - - - - - -
Financial Liabilities not
measured at Fair Value*
Secured Bank Loans 16,951.17 16,951.17 - -
Unsecured Bank Loans 4,789.73 4,789.73 -
Commercial Papers - - -
Accrued Interest 114.01 114.01 -
Accrued Income - - -
Trade Payables 3,497.45 3,497.45 -
Security Deposits Received 113.49 113.49 -
Earnest Money Deposits 403.87 403.87 -
Claims Payable - - -
Capital Creditors 66.19 66.19 -
Other Lliabilities 2,830.93 2,830.93 - - -
- - - 28,766.84 28,766.84 - - - -
* The carrying amounts of these financial instruments recognized in the financial statements are a reasonable approximation of their fair values.
 31st March 2019 ( in Crores)

Carrying Amount Fair Value

Other Other
Particulars Fair Value Mandatorily Financial Financial Total
Assets - Liabilities -
Hedging at FVTPL Amortised Amortised Carrying Level 1 Level 2 Level 3 Total
Instruments Others Cost Cost Amount
Financial Assets
measured at Fair Value - - - - -
Forward Contracts* 0.00 0.00
- 0.00 - - 0.00 - - - -
Financial Assets not
measured at Fair Value
Security Deposits* 332.57 332.57
Employee Loans 66.98 66.98
Loans and Advances 97.98 97.98 - - - -
Trade Receivables* 1,130.38 1,130.38
Accrued Interest* 56.40 56.40
Cash and Cash Equivalents* 121.43 121.43 - - - -
Other Receivables* 140.79 140.79
- - 1,946.53 - 1,946.53 - - - -
Financial Liabilities
measured at Fair Value
Interest Rate Swaps - - - - - -
Forward Exchange Contracts - - - -
- - - - - - - - -
Financial Liabilities not
measured at Fair Value*
Secured Bank Loans 14,975.63 14,975.63 - - - -
Unsecured Bank Loans 2,630.22 2,630.22
Commercial Papers 1,985.73 1,985.73 - - - -
Accrued Interest 7.38 7.38
Accrued Income - -
Trade Payables 1,661.62 1,661.62
Security Deposits Received 96.38 96.38
Earnest Money Deposits 349.64 349.64
Claims Payable - -
Capital Creditors 74.17 74.17
Other Liabilities 3,710.20 3,710.20
- - - 25,490.97 25,490.97
*The carrying amounts of these financial instruments recognized in the financial statements are a reasonable approximation of their fair values.

130
B. Measurement of Fair Values
The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values for financial
instruments measured at fair value in the balance sheet, as well as the significant unobservable inputs used.
Type Valuation Technique Significant Inter-relationship
Unobservable between significant
Inputs Unobservable Inputs and
Fair Value Measurement
Forward Exchange Contracts Forward pricing: The fair value is Not applicable Not applicable
determined using quoted forward
exchange rates at the reporting date.
Interest Rate Swaps Swap models: The fair value is Not applicable Not applicable
determined using quoted swap rates
at the reporting date.
Financial Liabilities Discounted cash flows: The valuation Not applicable Not applicable
model considers the present value of
expected payment, discounted using
a risk-adjusted discount rate.
C. Financial Risk Management
Risk Management Framework
The Company is exposed to various risk in relation to financial instruments. The company's financial asset and liabilities by
category are summarised in note 38A. The main types of risks are market risk, credit risk and liquidity risk.The Company’s
risk management is coordinated at its headquarters, in close cooperation with the board of directors, and focuses on
actively securing the Company’s short to medium-term cash flows by minimising the exposure to volatile financial markets.
Long-term financial investments are managed to generate lasting returns. The Company does not actively engage in the
trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the
Company is exposed are described below.
The Company has exposure to the following risks arising from financial instruments:
i) Credit Risk
ii) Liquidity Risk
iii) Market Risk
i) Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company's receivables from customers; and loans.
The carrying amounts of financial assets represent the maximum credit risk exposure.
Trade Receivables and Loans
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers the factors that may influence the credit risk of its customer base, including the default risk
associated with the industry in which customers operate.
Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing through successive
stages of delinquency to write-off. Roll rates are calculated separately for exposures in different segments based on the
common credit risk characteristics.
Movements in the allowance for impairment in respect of Trade Receivables and Loans
The movement in the allowance for impairment in respect of trade receivables and loans is as follows: ( in Crores)

Particulars 31st March 2020 31st March 2019

Balance at 1st April 26.04 20.83
Net measurement of Loss Allowance 0.56 5.21
Balance at 31st March 26.60 26.04

131
Cash and Cash Equivalents
The Company holds cash and cash equivalents of 18.37 Crore at 31st March 2020 (31st March 2019: 121.43 Crore). The
cash and cash equivalents are only held with highly rated banks.
Impairment on cash and cash equivalents has been measured on the 12-month expected loss basis and reflects the short
maturities of the exposures. The Company considers that its cash and cash equivalents have low credit risk based on the
external credit ratings of the counterparties.
Derivatives
The derivatives are only entered into with highly rated scheduled banks.
ii) Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.
Further in the current circumstances, the company is meticulously monitoring the payments to creditors, vendors, employees
dues, statutory dues, etc. and efforts are made to make the payments in time during the lockdown period (due to COVID-19)
also. Even in the year of crisis during the year 2019-20, the company made the committed payments to the Financial
Institutions and MSME units as per commitments. The company also made arrangements with major creditors (PSU units)
for deferment of payments whereas payments to other small creditors are made in time.
To improve the liquidity position, the Company has availed the moratorium on payment of principal and interest, deferred
GST Payments as announced by the Government of India in view of the COVID - 19 pandemic. Company also achieved cash
flow improvements by increasing the sales volume and collections from May 2020 onwards.
The Company aims to maintain the level of its cash and cash equivalents at an amount in excess of expected cash outflows
on financial liabilities (other than trade payables). The Company also monitors the level of expected cash inflows on trade
receivables and loans together with expected cash outflows on trade payables and other financial liabilities.
Exposure to Liquidity Risk
The following are the remaining contractual maturities of long term financial liabilities at the reporting date. The amounts
reflect the principal amounts that are gross and undiscounted, and exclude the impact of netting agreements.
31st March 2020 ( in Crores)
Contractual Cash Flows
Particulars Carrying Total 12 months 1-2 Years 2-5 Years More than
Amount or less 5years
Non-Derivative Financial Liabilities
Secured Bank Loans 9,759.77 9,759.77 - 897.96 4,423.25 4,438.56
Unsecured Bank Loan - - - - - -
9,759.77 9,759.77 - 897.96 4,423.25 4,438.56
Derivative FinancialLiabilities
Interest Rate Swaps - - - - - -
Other Forward Exchange Contracts - - - - - -
- - - - - -
31st March 2019 ( in Crores)
Contractual Cash Flows
Particulars Carrying Total 12 months 1-2 Years 2-5 Years More than
Amount or less 5years
Non-Derivative Financial Liabilities
Secured Bank Loans 9,309.26 9,309.26 - 613.71 3,370.96 5,324.59
Unsecured Bank Loan - - - - - -
9,309.26 9,309.26 - 613.71 3,370.96 5,324.59
Derivative Financial Liabilities
Interest Rate Swaps - - - - - -
Other Forward Exchange Contracts - - - - - -
- - - - - -
132
Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur
significantly earlier, or at significantly different amounts.
iii) Market Risk
Market risk is the risk that results from changes in market prices – such as foreign exchange rates, interest rates
and equity prices – will affect the Company’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable parameters,
while optimising the return.
The Company uses derivatives to manage market risks.
Currency Risk
The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which
sales, purchases and borrowings are denominated. The currencies in which these transactions are primarily
denominated is Indian Rupee ( ),which is also the company's functional and presentation currency.
The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one
year from the reporting date.
Currency risks related to the principal amounts of the US dollar bank loan, which have been fully hedged using
forward contracts that mature on the same dates as the loans are due for repayment. These contracts are
designated as derivative contracts.
Interest Rate Risk
The Company aims to minimise its interest rate risk exposure by maintaining a balance of fixed/ floating rate of
interest.
Exposure to Interest Rate Risk
The interest rate profile of the Company's interest-bearing financial instruments as reported to management is as
follows:
( in Crores)

Particulars 31st March 2020 31st March 2019

Fixed Rate Instruments
Financial Assets 74.93 115.36
Financial Liabilities 10,582.98 6,600.73
10,657.91 6,716.09
Variable Rate Instruments
Financial Assets - -
Financial Liabilities 11,157.91 12,990.82
11,157.91 12,990.82
Cash Flow sensitivity analysis for variable-rate instruments
A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased /
(decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables,
in particular foreign currency exchange rates, remain constant.
( in Crores)
Particulars Profit or (loss) Equity, pre-tax
100 bp increase 100 bp decrease 100 bp increase 100 bp decrease
31st March 2020
Variable-rate instruments (111.57) 111.57 NIL NIL

31st March 2019

Variable-rate instruments (129.90) 129.90 NIL NIL

133
39 Contingent Liabilities and Commitments
Contingent Liabilities
A. Claims against Company not acknowledged as debts ( in Crores)

Particulars 31st March 2020 31st March 2019

Contractors / Suppliers / Customers
Central Public Sector Enterprises (CPSE)^ 89.42 60.67
Other than CPSE 563.13 785.22
Local Authorities - State Govt. 693.28 593.03
Sales Tax Matters* 1,023.07 1,014.78
Income Tax** 137.48 137.55
Customs / Excise Duty 217.19 254.84
Others
CPSE - -
Other than CPSE 440.52 439.35
Total 3,164.07 3,285.44
Contingent Liabilities as on 31.03.2020 are after considering a reduction of 378.97 Crores from the balance
as on 31.03.2019
*No liability is expected to arise as the movement of goods were on stock transfer and sales tax is paid on
eventual sales.
** NIL for FY 2019-20 ( 36.24 crores for FY 2018-19 reduced during the year based on relief given by
CIT(A)-9 Hyderabad vide common order dt.30.04.2019 for AY 2012-13 to AY 2014-15 in line with IND AS-10)
^ Differential price as claimed by Central Coalfields Limited (CCL) for the indigenous coking coal supplied
during 13.01.2017 to 31.03.2017 amounting to 59.03 Crore being the amount billed over and above MOU
2016-17 agreed prices has not been accounted for. Pending settlement of dispute, the above liability has been
treated as contingent liability.
B. Claims in Courts in connection with Land Acquisition: Case filed by M/s Aquamarine before District Judge
Court, Visakhapatnam claiming the ownership of 14.5 acres of land as referred in Note No. 3C.
C. Show cause notices issued by various Government Authorities are not considered as contingent liabilities.
Commitments ( in Crores)
st st
Particulars 31 March 2020 31 March 2019

Estimated amount of contracts remaining to be executed

on capital account and not provided 1,640.18 2,909.13
Total 1,640.18 2,909.13
Others
Rashtriya Ispat Nigam Limited (“RINL") and Air Liquide India Holding Private Limited ("ALIH") entered into a
Contract dated 26 November 2010 for supply of Oxygen and Nitrogen gases and liquids for captive consumption
of RINL on a build, own and operate basis ("BOO") with an option to transfer. The production facility envisaged to
be installed and commissioned by ALIH consisted of two air separation units, each of 850 TPD capacity. The
contractual time for completion of the entire scope of work was 28 months for the first ASU along with common
facility and 30 months for second ASU from the date of the receipt of the letter of acceptance i.e. 6 July 2010. Vide
letter dated 16 December 2014, ALIH terminated the contract and proposed to transfer the ownership of ASU
plant to RINL subject to payment of around Rs. 455 Crores. Thereafter, RINL vide its letter dated 6 January 2015,

134
rejected the termination of the Contract by ALIH and called upon ALIH to perform its obligations under the BOO
Contract. However, since ALIH did not withdraw the termination notice, RINL was compelled to agree for in principle
takeover of ASP from ALIH subject to inter alia, technical audit of the ASP.
Post the termination of the BOO Contract, several meetings and exchange of correspondences between RINL and
ALIH took place in relation to the modalities for the takeover of the ASP by RINL. However, the parties could not
agree on the final terms of the takeover. Because of the failure of the negotiations primarily due to unreasonable
conduct of ALIH, RINL was compelled to invoke arbitration under Clause No. 32 of the Contract dated 26 November
2010.
The Arbitral Tribunal, which was constituted, issued the First Partial Award (Liability) on 12 June 2020. The
Arbitral Tribunal has ruled that the ASP BOO Contract was validly terminated by ALIH’s Termination Notice dated 16
December 2014. The ASP BOO will be transferred by ALIH to RINL (“Takeover”) at a price (“the Takeover Price”)
and on terms to be determined by the Arbitral Tribunal in a further Award.

40 Related Parties
A. List of Related Parties and Nature of Relationship
Name of the Related Party Nature of Relationship Country
Eastern Investments Limited Subsidiary India
The Orissa Minerals Development Company Ltd Subsidiary of EIL India
The Bisra Stone Lime Company Limited Subsidiary of EIL India
The Borrea Coal Co. Ltd. (In Liquidation) Subsidiary of EIL India
RINMOIL Ferro Alloys Pvt Ltd Joint Ventures India
RINL Powergrid TLT Pvt Ltd Joint Ventures India
International Coal Ventures Pvt Ltd Associate India
MINAS DE BENGA LIMITADA ICVL's Joint Venture Mozambique

B-I. Key Management Personnel as on 31st March 2020

Name of the Related Party Nature of Relationship
Shri P K Rath Chairman-cum-Managing Director
Shri Kishore Chandra Das Director (Personnel)
Shri V V Venugopal Rao Director (Finance) & CFO
Shri Deb Kalyan Mohanty Director (Commercial)
Shri Kanak Kumar Ghosh Director (Projects)
Shri Ajit Kumar Saxena Director (Operations)

B-II. Independent Directors as on 31st March 2020

Name of the Related Party Nature of Relationship
Shri Ashwini Mehra Independent Director
Dr. Sita Sinha Independent Director

C. Post Employment Plans of Rashtriya Ispat Nigam Limited

Name of the Related Party Country

RINL Employees' Group Gratuity Fund Trust India

Vishakhapatnam Steel Project Employees' Provident Fund Trust India
RINL Employees' Superannuation Benefit Fund Trust India

135
D. Transactions with Related Parties during the year ended ( in Crores)
Name of the Related Party Nature of Nature of 31st March 31st March
Relationship Transactions 2020 2019
International Coal Ventures Pvt Ltd ( ICVL) Associate Receipt of equity shares - -
RINL Powergrid TLT Pvt Ltd Joint ventures Receipt of equity shares - 0.60
RINMOIL Ferro Alloys Pvt Ltd Joint ventures Receipt of equity shares 0.01 0.01
Eastern Investments Limited ( EIL) Subsidiary Dividend income - 0.04
The Bisra Stone Lime Company Limited Subsidiary of EIL Purchases 16.11 15.09
MINAS DE BENGA LIMITADA ICVL's Joint Venture Purchases 237.59 346.19
MINAS DE BENGA LIMITADA ICVL's Joint Venture Demurrages/Despatches 1.10 -
The Bisra Stone Lime Company Limited Subsidiary of EIL Advances to Supplier 1.50 11.69
The Bisra Stone Lime Company Limited Subsidiary of EIL Interest earned from Supplier-Advances 3.63 2.97
International Coal Ventures Pvt Ltd ( ICVL) Associate Salaries Recoverable 0.11 0.83
International Coal Ventures Pvt Ltd ( ICVL) Associate Board meeting exp recoverable 0.01 0.03
Eastern Investments Limited ( EIL) Subsidiary Board meeting exp recoverable 0.01 0.01
The Orissa Minerals Development Company Ltd Subsidiary of EIL Board meeting exp recoverable 0.00 -
The Bisra Stone Lime Company Limited Subsidiary of EIL Board meeting exp recoverable 0.01 0.01
RINL Employees' Group Gratuity Fund Trust Post Employment Contribution towards trust 2.00 35.20
towards Trust Benefit Plan
Vishakhapatnam Steel Project Employees' Post Employment Contribution towards trust 163.21 151.71
Provident Fund Trust Benefit Plan
RINL Employees' Superannuation Benefit Post Employment Contribution towards trust 40.29 6.97
Fund Trust Benefit Plan

E. Balances Outstanding (unsecured & considered good) ( in Crores)

Name of the Related Party Nature of Details 31st March 31st March
Relationship 2020 2019
Eastern Investments Limited Subsidiary Investment in Subsidiary 361.03 361.03
International Coal Ventures (P) Ltd Associate Investment in Associate 376.36 376.36
RINL Powergrid TLT Pvt Ltd Joint ventures Investment in Joint Venture 4.00 4.00
RINMOIL Ferro Alloys Pvt Ltd Joint ventures Investment in Joint Venture 0.12 0.11
RINMOIL Ferro Alloys Pvt Ltd Joint ventures Other financial assets 1.21 1.21
International Coal Ventures (P) Ltd Associate Other financial assets 1.54 1.41
Eastern Investments Limited Subsidiary Other financial assets 0.00 0.03
The Bisra Stone Lime Company Limited Subsidiary of EIL Advances recoverable 40.27 41.14
The Orissa Minerals Development Company Ltd Subsidiary of EIL Advances recoverable 0.01 0.03
MINAS DE BENGA LIMITADA ICVL's Joint Venture Advances recoverable 1.10 -
The Bisra Stone Lime Company Limited Subsidiary of EIL Other financial assets 0.00 0.36
MINAS DE BENGA LIMITADA ICVL's Joint Venture Amounts payable 65.50 51.75
The Bisra Stone Lime Company Limited Subsidiary of EIL Amounts payable 1.42 1.21
The Orissa Minerals Development Company Ltd Subsidiary of EIL Other financial liability - -
RINL Employees' Group Gratuity Fund Trust Post Employment Other financial liability/(asset) 703.87 555.62
Benefit Plan
Vishakhapatnam Steel Project Employees' Post Employment Other financial liability 14.23 13.20
Provident Fund Trust Benefit Plan
RINL Employees' Superannuation Benefit Post Employment Other financial liability 6.04 3.10
Fund Trust Benefit Plan

136
Note : ( in Crores)
st st
Particulars 31 March 2020 31 March 2019
Provision for doubtful debts related to the amount of Nil Nil
outstanding balances
F. Key Management Personnel Compensation & Sitting Fee Paid ( in Crores)
st st
Particulars 31 March 2020 31 March 2019
Short-term employee benefits 1.61 1.36
Post-employment benefits 0.55 0.20
Other long-term benefits 0.71 0.11
Sitting fee paid to Independent Directors 0.24 0.26
3.11 1.93
41 Going Concern Assessment
Going Concern is one of the fundamental principles of accounting. Taking into the account the performance of the
company during the year, and the situation created by Novel Coronavirus (COVID-19) coupled with significant business
disruptions for entities across almost all sectors, there may exist material uncertainty about the entity’s ability to
continue as a going concern. In due consideration thereof, the management has made its assessment of entity’s ability
to continue as a going concern. In doing so, the company has taken into due consideration its liquidity position, its
obligations to repay its loan and interest thereon, to pay its crediors reasonably on time, its ability to collect its
recoverables and to keep its assets and other operating facilities to be productive continuously in line with the normal
business requirements, etc., among others. In this process, the Management has based its conclusions of its ability to
meet the above obligations on the following.
a. To improve the liquidity position, the Company has availed of the moratorium on repayment of principal and payment of
interest, deferred GST Payments as announced by the Government of India in view of the COVID - 19 pandemic.
Company also achieved cash flow improvements by increasing the sales volume and collections from May 2020
onwards. Company has also taken various cost control measures to improve the performance.
Further in the current circumstances, the company is meticulously monitoring the payments to creditors, vendors,
employees dues, statutory dues,etc. and efforts are made to make the payments in time during the lockdown period
(due to COVID-19) also. Even in the year of crisis during the year 2019-20, the company made the committed payments
to the Financial Institutions and MSME units as per commitments. The company also made arrangements with major
creditors (PSU units) for deferment of payments whereas payments to other small creditors are made in time.
b. The company has considered the possible effect that may result from the pandemic related to COVID -19 on the carrying
amounts of current and non-current assets. In developing the assumptions relating to the possible uncertainities in the
global economic condition because of this pandemic, the company has used internal and external source of information.
The company has reviewed the impact of COVID - 19 and expects the carrying amount of these assets are recoverable.
As per the company's current assessment, no significant impact on carrying amounts on property, plant and equipment,
Right of use assets, inventories, intangible assets, trade receivables, investments and other financial assets is expected
consequent to the COVID -19, and it continues to monitor the changes in the future economic conditions.
However the situation arising from COVID-19 being an unprecedented event the consequences of which are difficult to
estimate, the actual outcome there from could vary from the said estimates.
c. The Company while entering MOU with ministry for the year 2020-21, made a production and sales plan which indicates
scope for improvements in the performance of the company.
d. The company has entered long term agreements/ MOUs with major suppliers for the supply of key raw materials for un-
interrupted supply.
e. The company is working upon improving its market share thereby projecting an increased volume of sale of saleable steel.
f. The management of the company does not have any intention to liquidate the entity or cease the operations. In fact, the
company has engaged M/s. Mc Kinsey a leading consultants to explore the opportunities available to the company for
further improvements. The company is reaping out the benefits based on their suggestions in the different fields.
Management is of the opinion that the company is capable of mobilising adequate resources to continue its operation in
the foreseeable future and the going concern basis for preparation of these financial statements is appropriate.
42 a) The Company's business is construed as one business segment which comprises of mainly production of Steel
products, whose associated risks and returns are predominantly the same. Further, the Company has no geographical
segments which are subject to different risks and returns.
b) For a substantial portion of Loans and Advances, Trade payables/ Trade receivables / Other payables, letters
seeking confirmation of balances were sent and no material discrepancies were found in respect of balances confirmed.
c) Previous year's figures have been rearranged / regrouped wherever necessary to conform to current year's classification.

137
 NOTES ON SUBSIDIARIES AND JOINT VENTURES
01. Eastern Investments Limited (EIL) Company and to BPMEL for the 3 leases in the
name of BPMEL towards compensation against
As per Rule 4 (b) of The Companies (Accounts)
excess mining amounting 1,563.76 Crores. The
Rules, 2016, the company being NBFC shall
amount of Demand for OMDC Leases is 702.18
comply with the Indian Accounting Standards (Ind
Crores and for BPMEL leases 861.57 Crores.
AS) for accounting periods beginning on or after
OMDC had been operating BPMEL Leases
the 1st April, 2019. Accordingly the company has
backed by Power of Attorney to sign and execute
drawn financials for FY 2019-20 complying Ind
all mining leases and other mineral concessions
AS.
from time to time. OMDC has paid the
The income of the company is derived mainly from
compensation of 876.22 Crores towards OMDC
(i) Dividends from investments in shares of various
Leases out of its own fund of 566.22 Crores
companies and (ii) Interests on term deposits with
and borrowed fund from Bank of 310.00 Crores.
banks and deposits in bonds. The company
OMDC has made payment of 27.15 Crores
sustained a loss of 0.56 Crores as against
towards BPMEL leases as advance. Since the
0.25 Crores in the previous year.
mining right of BPMEL lease are sub-judice and
02. The Orissa Minerals Development Company the consequence of legal outcome is unknown,
Limited (OMDC) the balance amount of compensation along with

The income of the company is derived mainly from interest up to 31.03.2020 of 1,268.79 Crores is

interest on term deposits since there is no shown in contingent liability.

production due to non-availability of statutory The company sustained a loss of 76.69 Crores
clearances for mining operation. The Company as against 451.63 Crores in previous year
deployed the surplus funds in fixed deposits and (compensation for excess mining was provided
earned an interest income of 17.69 Crores on in the previous year).
fixed deposits during the year which is included
Future Outlook :
under other income of the Statement of Profit &
The mining operation of Bagiaburu mines is
Loss Account.
expected to be resumed by October, 2020 and
Pursuant to the judgement of Hon'ble Supreme
reasonable progress is made for obtaining the
Court dated 02.08.2017, Dy Director of Mines,
statutory clearances of other two mines i.e.
Odisha had issued different demand notices
Belkundi & Bhadrasahi mines.
dated 02.09.2017, 23.10.2017 & 13.12.2017 to
the Company for the 3 leases in the name of the

138
03. The Bisra Stone Lime Company Limited The Company has been exploring various
(BSLC) alternative options on continuous basis for setting
up of the Project considering its feasibility by
Total Income increased to 43.48 Crores from
availing concessional power and marketing /
39.82 Crores in the previous year. The Loss
logistical advantage.
decreased to 10.28 Crores as against a loss of
28.02 Crores in the previous year. In this process, SBI Capital Markets Limited was
awarded the work to arrive the comparative
04. Joint Venture- RINL Power Grid TLT Private
financials by M/s MOIL, for setting up of the plant
Limited
at Bobbili or Gumgaon or Visakhapatnam, to
Subsequent to the decision of Board of M/s Power enable to take further decision. However, on
Grid Corporation of India Ltd, one of the JV analysis of various factors, setting up the Project
partner, for initiating procedure for winding up of in JV mode has been deferred.
Joint venture-RINL Powergrid TLT Private Ltd,
06. Joint Venture- International Coal Ventures
Board of RINL in the meeting on 08.03.19 also
Private Limited (ICVL)
decided for winding up of above JV and accorded
approval for seeking approval from Ministry of International Coal Ventures Private Limited

Steel. Steps towards the approval has been (ICVL): ICVL has 100% subsidiary in Mauritius

initiated and the approval from ministry is under by the name of ICVL, Mauritius which has 100%

process. In view of the decision for winding up, step-down subsidiary Riversdale Mining (Pty)
Limited (RML) in Australia which in turn holds a
the Accounts of the Company are prepared on
share of 65% stake in Minas De Benga Mauritius
not a going concern basis.
Limited (a joint venture enterprise operating coal
05. Joint Venture- RINMOIL Ferro Alloys Pvt. Ltd.
mines in Mozambique).
(RINMOIL)
Production & Export during FY 2019-20 - During
RINMOIL Ferro Alloys Pvt. Ltd. (RINMOIL) is a
the year, the MBL,the JV Company has produced
50:50 joint venture company between RINL and
1.4 million tons of coking coal. 933403 tons of
MOIL incorporated on 29.07.2009 to set up Ferro
coking coal and 624915 tons of thermal coal have
Alloy manufacturing unit in Bobbili, Vizianagaram
been shipped to the Promoter Companies i.e.
District.
SAIL & RINL.
The project is yet to be implemented due to high During the current financial year, the total
power tariffs in the state of Andhra Pradesh. The consolidated income of the company decreased
Board desired to go initially for capacity of 2x18 to 10.52 crores from 33.46 crores in FY 2018-
MVA furnaces for producing Silico Manganese 19 and the company made a loss before tax of
keeping in view of increased requirement by RINL 93.83 crores as against the loss of 114.22
after its expansion. crores in FY 2018-19.

139
 FINANCIAL HIGHLIGHTS in Crores

The Financial performance of Subsidiaries(Standalone)* Associate RINL Group RINL

Subsidiaries / Joint Ventures /
EIL OMDC BSLC ICVL (Consolidated) Consolidated SFS
Associate Companies & RINL
Group (Consolidated) ( in crores) ( in crores) ( in crores) ( in crores) ( in crores) ( in crores)

Particulars 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19
Total Income 0.13 0.51 29.15 53.95 43.48 39.82 10.52 33.46 16213.26 20916.22 16159.54 20838.71
Profit before finance charges, Tax,
Depreciation/ Amortisation (PBITDA) (0.20) (0.20) (24.49) (619.90) (9.11) (26.86) (4.15) (6.64) (1557.07) 1127.30 (1498.50) 1802.91
Less: Finance Charges - - 21.45 4.28 0.94 0.94 89.57 107.46 1519.68 1281.89 1498.23 1277.61
Profit before Depreciation/
Amortisation (PBTDA) (0.72) (0.20) (45.94) (624.18) (10.04) (27.80) (93.72) (114.11) (3076.75) (154.60) (2996.73) 525.30
Less: Depreciation - - 2.50 14.96 0.23 0.22 0.11 0.11 1111.54 1072.77 1108.81 1057.59
Profit before exceptional items (0.72) (0.20) (48.44) (639.14) (10.28) (28.02) (93.83) (114.21) (4188.29) (1227.37) (4105.54) (532.29)
Less: Exceptional items - - 0.08 1.04 - - 0.00 0.00 181.97 (225.40) 181.97 (225.40)
Net Profit before Taxation (PBT) (0.72) (0.20) (48.37) (638.11) (10.28) (28.02) (93.83) (114.21) (4370.26) (1001.97) (4287.51) (306.89)
Provision for taxation (0.16) 0.05 28.33 (186.47) - - 0.00 0.00 (349.17) (590.02) (377.34) (403.60)
Profit/(Loss) after Taxation (PAT)
before Non-controlling interests (0.56) (0.26) (76.69) (451.63) (10.28) (28.02) (93.83) (114.21) (4021.09) (411.95) (3910.17) 96.71
Total comprehensive income for the
year before Non-controlling interests (0.57) (0.26) (77.84) (452.02) (11.21) (28.12) 213.73 88.42 (4113.70) (325.25) (4080.49) 131.32
Payment of dividend incl Dividend Tax - 0.08 - - - - 0.00 0.00 - 0.04 - -
Transfer to General Reserve - - - - - - 0.00 0.00 - - - -
*Subsidiaries Stand alone Financials without inter company eliminations.

140
 FORM AOC-I
(Pursuant to first Proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014)
Statement containing salient features of the Financial Statements of Subsidiaries/Associate Companies/Joint Ventures
Part “A”: Subsidiaries ( in Crores)
1 Sl.NO 1 2 3
Eastern The Bisra Stone The Orissa
Investments Lime Company Minerals
2 Name of the Subsidiary Limited(EIL) Limited Development
Company Limited
(Subsidiary of EIL) (Subsidiary of EIL)
3 Reporting period for the subsidiary concerned, if different from Same as holding company's reporting period i.e
the holding company's reporting period Financial year ending 31st March 2020.
4 Reporting currency and Exchange rate as on the last date of
relevant Financial year in the case of foreign subsidiaries Not Applicable Not Applicable Not Applicable
5 Share Capital 1.44 87.29 0.60
6 Reserves & Surplus 268.96 (243.01) 56.48
7 Total Assets 271.71 22.90 479.46
8 Total Liabilities 1.31 178.62 422.38
9 Investments 259.66 0.00 0.02
10 Turnover 0.75 42.65 0.00
11 Profit Before Taxation (0.72) (10.27) (48.37)
12 Provision for Taxation (0.16) 0.00 28.33
13 Profit After Taxation (0.56) (10.27) (76.70)
14 Proposed dividend 0.00 0.00 0.00
15 % of shareholding 51.00% 50.22%* 50.01%
* Extent of holding through EIL is 50.01% and directly is 0.21%.
1 Name of Subsidiaries which are yet to commence operations NIL
2 Name of Subsidiaries which have been liquidated or sold during the year NIL
Part “B” : Associates and Joint Ventures
Statement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures
RINMOIL Ferro International RINL
Sl PARTICULARS Alloys Private Coal Ventures Powergrid
No Limited Private Limited TLT (P) Ltd
1 Latest Audited Balance Sheet Date Same as holding company's reporting period i.e
2 Shares of Associate/ Joint Ventures held by the company on the Financial year ending 31st March 2020.
year end (No.s) 120000 376357143 4000000
Amount of Investment in Associates/ Joint Venture ( in Crores) 0.12 376.35 4.00
Extend of Holding % 50.00% 25.94% 50.00%
3 Description of how there is significant influence Joint Venture Associate Joint Venture
4 Reason why Associate/Joint Venture is not consolidated Not Applicable Not Applicable Not Applicable
5 Networth attributable to Shareholding as per latest audited
Balance Sheet ( in Crores) 0.07 614.82 0.00#
6 Profit/Loss (-) for the year
i. Considered in Consolidation (0.01) (24.34) (3.97)
ii. Not Considered in Consolidation (0.01) (69.49) (4.34)
1 Name of associates/Joint Ventures which are yet to commence operations-
(i) RINMOIL Ferro Alloys Private Limited
(ii) RINL Powergrid TLT (P) Ltd
2 Name of associates/Joint Ventures which have been liquidated or sold during the year- NIL
# During the year holding company's share in the losses of M/s. RINL Powergrid TLT (P) Ltd exceeds its interest in
the Joint Venture company. Accordingly, the carrying amount of investment of holding co. has eroded and the holding
co.'s share in the losses is restricted to its interest in the Joint Venture company.
For and on behalf of Board of Directors
Sd/- Sd/-
(P. K. Rath) (V V Venugopal Rao)
Chairman cum Managing Director Director (Finance) and Chief Financial Officer
Sd/-
Place : Visakhapatnam (M Jagadeeshwara Rao)
Date : 04-09-2020 Company Secretary

141
 Enclosure to Directors’ Report

M. Bhaskara Rao & Co.

Chartered Accountants
INDEPENDENT AUDITOR'S REPORT
TO including other comprehensive income, its
consolidated cash flows and the changes in equity for
THE MEMBERS the year ended on that date.
M/s. RASHTRIYA ISPAT NIGAM LIMITED Basis for Opinion
Report on the Audit of the Consolidated Indian We conducted our audit of the Consolidated Financial
Accounting Standards (Ind AS) Financial Statements in accordance with the Standards on
Statements Auditing (SAs) specified under section 143(10) of the
Opinion Companies Act, 2013. Our responsibilities under those
Standards are further described in the Auditor's
We have audited the accompanying consolidated Ind Responsibilities for the Audit of the Consolidated
AS financial statements of RASHTRIYA ISPAT NIGAM Financial Statements section of our report. We are
LIMITED (hereinafter referred to as "the Holding independent of the Group in accordance with the Code
Company") its subsidiary (the Holding Company and of Ethics issued by the Institute of Chartered
its subsidiary together referred to as "the Group") Accountants of India (ICAI) together with the ethical
Eastern Investments Limited (EIL) and its subsidiaries- requirements that are relevant to our audit of the
The Orissa Minerals Development Company Limited Consolidated Financial Statements under the
(OMDC), The Bisra Stone Lime Company Limited provisions of the Companies Act, 2013 and the Rules
(BSLC) and Borrea Coal Company Limited and its made there under, and we have fulfilled our other
associate companies- The Burrakur Coal Company ethical responsibilities in accordance with these
Limited, The Karanpura Development Company requirements and the ICAI's Code of Ethics. We
Limited;- the Holding Company's Joint Ventures- believe that the audit evidence we have obtained is
RINMOIL Ferro Alloys Private Limited, RINL Power sufficient and appropriate to provide a basis for our
Grid TLT Private Limited ; -and the Holding Company's audit opinion on the financial statements.
Associate company, International Coal Ventures
Private Limited; comprising the Consolidated Balance Material Uncertainty related to Going Concern
Sheet as at 31 st March, 2020, the Consolidated The Bisra Stone Lime Co. Limited (BSLC), a step-down
Statement of Profit and Loss including Other subsidiary of the Holding Company has accumulated
Comprehensive Income, the Consolidated Cash Flow losses and its net worth is fully eroded. As reported by
Statement and Statement of Changes in Equity for the BSLC and its Auditors, the appropriateness of
year then ended on that date, and a summary of the assumption of Going Concern is critically dependent
significant accounting policies and other explanatory upon the market scenario, the debt resolution of the
information (hereinafter referred to as "the company, the company's ability to raise requisite
Consolidated Ind AS Financial Statements"). finance, generation of cash flows in future to meet its
In our opinion and to the best of our information and obligation and to earn profit in future.
according to the explanations given to us, the aforesaid Our opinion is not modified in respect of this matter.
Consolidated Ind AS Financial Statements give the
information required by the Companies Act, 2013 (the Emphasis of Matter:
"Act") in the manner so required and give a true and We draw attention to the following in the Notes to the
fair view, in conformity with Indian Accounting consolidated Ind AS financial statements:
Standards (''Ind AS'') prescribed under section 133
of the Act read with the Companies (Indian Accounting In respect of Holding Company:
Standards) Rules, 2015, as amended and other 1. Note 3 (G), regarding an amount of 82.19
accounting principles generally accepted in India, of Crores being stores and capital spares issued
the consolidated state of affairs of the Group (as and lying at various construction zones/ with
referred to below in the Other Matter Paragraph) as contractors and are grouped under Capital
at 31st March 2020, and its consolidated profit/loss Work-In Progress (C.W.I.P).
142
2. Note 8B (iii), regarding claims made by the since the company contends that the said stamp
Company on Mahanadi Coal Fields Ltd (MCL) duty is not applicable on it as the transfer of
amounting to 5.44 Crores remaining unsettled shares were effected by virtue of Restructuring
for more than 03 years for which no provision Scheme approved by the Union Cabinet and the
has been made in the books of accounts as the said transfer of shares took place from the
claim is, in the opinion of the management, President of India without any financial
tenable in terms of fuel supply agreement. consideration.
3. Note No.45, B) In case of one of the sub-subsidiary company,
The Orissa Minerals Development company Ltd.,
a. Regarding the preparation of these financial
statements under the Going Concern a) Pursuant to the Judgement of Hon'ble Supreme
assumption and the management's justification Court dated 02.08.2017, Dy. Director of Mines,
in the said note for the appropriateness of the Odisha had issued different demand notices
said assumption in the light of the loss for the dated 02.09.2017, 23.10.2017 & 13.12.2017 to
year and other factors evident from the financial OMDC for OMDC Leases and to BPMEL for
statements. BPMEL Leases towards compensation. The
amount of Demand for OMDC Leases is
b. Regarding the management's assessment of
70,218.46 Lacs and for BPMEL Leases is
impact on its assets and its business in general
86,157.12 Lacs, totalling 1,56,375.58 Lacs
of the Company as at 31st March 2020, being
towards EC, FC and MP/CTO. OMDC had been
considered unimpaired/ recoverable based on
operating BPMEL Leases backed by Power of
its internal and external sources of information
Attorney to sign and execute all mining leases
and estimates, and its judgements on implication
and other mineral concessions from time to time.
expected to arise from COVID-19 pandemic,
OMDC has paid the compensation of OMDC
which being an unprecedented event and the
Leases of 87,622.10 Lacs towards OMDC
consequences of which are difficult to estimate,
Leases ( 1,479.68 Lacs on 29.12.2017,
and the actual outcome could vary from the said
13,093.47 Lacs on 16.11.2018, 693.45 Lacs
estimates.
on 30.01.2019, 40,000.00 Lacs on 01.03.2019,
4. A) In respect of EIL, the Subsidiary Company 100 Lacs on 20.09.2019 and 32,255.50 Lacs
as reported by its Auditors on its Consolidated on 03.10.2019) in 2017-18, 2018-19 and 2019-
Financial Statements: 20 out of its own fund of 56,622.10 Lacs and
a) The Company has made long term investments borrowed fund from Bank 31,000.00 Lacs.
amounting to 4,362.52 Lacs and 21,500.98 OMDC has paid a sum of 2,715.14 Lacs
Lacs in its subsidiaries. The Bisra Stone Lime ( 2,515.14 Lacs on 29.12.2017 and 200.00
Company Limited and The Orissa Minerals Lacs on 16.11.2018) towards BPMEL Leases as
Development Company Limited respectively. advance. The remaining amount of compensation
Because of the continuous loss in these including interest upto 31.03.2020 against BPMEL
subsidiaries, net worth attributable to owners of Leases amounting 1,26,879.10 Lacs are
the Company as per the financial statements has shown under Contingent Liability.
become negative amounting to 5,284.95 Lacs b) The mine stock has been assessed by a third
as on 31.03.2020. party, Superintendence Co. Of India (P) Ltd. for
b) The company has not paid the disputed rent and qualitative and quantitative verification as on
cess or land revenue on Lawrence Property at 31.03.2020. The certificate of the said third party
Bauria, Howrah, West Bengal. The said property mentions in a note that for the old stack No.124
is yet to be muted in the name of the company. which is located at Thakurani Iron Ore Mines,
was lying along the rail track at No.2 siding earlier
c) The demand of 58.45 Lacs from Additional and a platform along the rail track had been
Commissioner of Stamp Revenue, Government prepared by SE Railway by using the mixed iron
of West Bengal for transfer of shares of Orissa ore of the same stack lying along the rail track.
Minerals Development Company Ltd (OMDC) The stack could not be assessed as the iron ore
and The Bisra Stone Lime Company Ltd. (BSLC) has been mixed up with other waste within the
to Eastern Investments Ltd (EIL) from President platform. Assessment can be done after
of India has not been considered in accounts,
143
 retrieving, screening and stacking of ore from number of directors as independent directors.
the platform. However, the company does not have any
independent directors on its board.
The total quantity in the same stake was
18,744.124 MT as per physical verification report d) Section 177 of the Act read with Rule 6 and 7 of
for 2015-16. The identified stock in 2019-20 by Companies (Meetings of Board and its Powers)
the third party is 1,745.837 MT. Management Rules, 2014 deals with the Audit Committee. The
has considered the balance stock for valuation Audit Committee shall consist of a minimum of
since the stock has been lying under the platform three directors with independent directors
and SE Railway has issued circular dated forming a majority. Since the company does not
27.10.2017 by virtue of which the rights and have any independent directors on its board, no
powers to permit the use of the Railway Siding Audit Committee has been formed. So there is
for the traffic of any person and to work such non-compliance of Section 177 of the Act with
traffic over this siding has been withdrawn. regard to Audit Committee.
c) The mining operation of the Company is e) As required by section 178 of the Companies
continued to remain suspended due to non- Act, 2013, the Nomination and Remuneration
renewal of the leases and non-receipt of Committee shall consist of three or more non-
requisite clearances from the Government of executive directors out of which not less than
Odisha and the Central Government. These one-half shall be independent directors. Since
conditions indicate the existence of a material the company does not have any independent
uncertainty to resume the mining operations. directors on its board, no Nomination and
These standalone financial statements have Remuneration Committee has been formed.
been prepared on a going concern basis mainly
f) As required by section 135 of the Companies
for the initiative taken by the Company's
Act, 2013, the Corporate Social Responsibility
management for opening of the mines and
Committee shall consist of three or more non-
resumption of mining operations.
executive directors out of which at least one
C) In the case of another sub-subsidiary company, should be an independent director. Since the
The Bisra Stone Lime Company Limited, company does not have any independent
directors on its board, no Corporate Social
a) Balances under Trade Receivables/Loans &
Responsibility Committee has been formed.
Advances/Trade Payable/Borrowings / Other
Liabilities in many cases have not been g) The Internal Audit for the financial year 2018-
confirmed and consequent reconciliation/ 19 & 2019-20 has not been conducted. So there
adjustments, if any, required upon such is non-compliance of provision of Section 138
confirmation are not ascertainable at this stage. of the Companies Act, 2013 with respect to
The impact of the adjustment, if any, in respect internal audit.
thereof on assets and liabilities and loss for the
Our opinion is not modified in respect of the above
year with consequential impact on the reported
matters.
financials remain unascertained.
Key Audit Matters
b) The uncertainties and the management's
In respect of Subsidiary Eastern Investment Limited
assessment of the financial impact due to the
(EIL) a Listed Company.
lock-downs and other restrictions and conditions
related to the COVID-19 pandemic situation, for Key audit matters are those matters that, in our
which a definite assessment of the impact in the professional judgement, were of most significance in
subsequent period is highly dependent upon our audit of the consolidated Ind AS financial
circumstances as they evolve. statements of the current period. These matters were
addressed in the context of our audit of the
c) The Company has not complied with the relevant
consolidated Ind AS financial statements as a whole,
provisions of the Companies Act, 2013
and in forming our opinion thereon, and we do not
regarding constitution of board as per section
provide a separate opinion on these matters. We have
149 of the Companies Act, 2013 which require,
determined the matters described below to be the key
every listed public company is mandatorily
audit matters to be communicated in our report.
required to have at least one-third of the total

144
 Sr. Key Audit Matter (KAM) Auditor’s Response to Key Audit Matter
No.
1 In case of subsidiary company - "The Bisra Our audit procedures in respect of statutory
Stone Lime co. Limited" compliance includes the following:
Statutory compliances for keeping mines
operative.
l We have reviewed necessary provisions made
In mining industries there are several compliances by the management towards expenditures like
w.r.t Wildlife Conservation, Scheme of Mining, Wildlife Conservation, Scheme of Mining,
Consent to operate, Mines closure plan, Renewal Renewal of Lease, Mine Closure Plan etc.
of lease etc. which the company needs to comply
for keeping their operations active

l Our audit procedures include following

2 In case of subsidiary company - "The Bisra
substantive procedures:
Stone Lime co. Limited"
a) Obtained understanding of key issues involved
Evaluation of Uncertain outcome of pending
in pending tax and other litigations.
litigation:
b) We have asked the management for new legal
These litigations involve significant management
cases arose during current financial year and
judgement to determine the possible outcome of
latest development.
the uncertain tax positions and legal cases,
consequently having an impact on related c) We have discussed with appropriate senior
accounting and disclosures in the Ind-AS financial management and evaluated underlying key
statements. assumptions.

Information Other than the Consolidated If, based on the work we have performed, we conclude
Financial Statements and Auditors’ Report that there is a material misstatement in the other
Thereon information, we are required to report that fact. The
The Holding Company's Board of Directors are said other information is expected to be made available
responsible for the preparation of other information. to us after the date of this audit report and hence we
The other information comprises the information cannot for the purposes of this report come to any
included in the Management Discussion and Analysis, conclusions thereon. When we read the other
Board's report including Annexures to Board's Report, information, when furnished to us, if we conclude that
Business Responsibility Report, Corporate Governance there is a material misstatement therein, we are
and Shareholders information, but doesn't include the required to communicate the matter to those charged
Consolidated Financial Statements and our auditor's with governance.
reports thereon. Responsibilities of Management and Those
Our opinion on the Consolidated Financial Statements Charged With Governance for the Consolidated
does not cover the other information and we do not Ind AS Financial Statement
express any form of assurance conclusion thereon. The Holding Company's Board of Directors is
In connection with our audit of the Consolidated responsible, in terms of the requirements of the
Financial Statements, our responsibility is to read the Companies Act 2013, for the preparation of these
other information and, in doing so, consider whether consolidated Ind AS financial statements that give a
the other information is materially inconsistent with the true and fair view of the consolidated financial position,
Consolidated Financial Statements or our knowledge consolidated financial performance, consolidated total
obtained during the course of our audit or otherwise comprehensive income, consolidated changes in
appears to be materially misstated. equity and consolidated cash flows of the Group in
accordance with the Ind AS and other accounting
145
principles generally accepted in India. The respective included in the Group and of its associates and jointly
Boards of Directors of the companies included in the controlled entities are responsible for overseeing the
Group are responsible for maintenance of adequate financial reporting process of the said companies.
accounting records in accordance with the provisions Auditor's Responsibilities for the Audit of the
of the Act for safeguarding the assets of the respective Consolidated Ind AS Financial Statements
companies in the Group and for preventing and Our objectives are to obtain reasonable assurance
detecting frauds and other irregularities; selection and about whether the consolidated Ind AS financial
application of appropriate accounting policies; making statements as a whole are free from material
judgements and estimates that are reasonable and misstatement, whether due to fraud or error, and to
prudent; and the design, implementation and issue an auditor's report that includes our opinion.
maintenance of adequate internal financial controls, Reasonable assurance is a high level of assurance,
that were operating effectively for ensuring the but is not a guarantee that an audit conducted in
accuracy and completeness of the accounting records, accordance with SAs will always detect a material
relevant to the preparation and presentation of the misstatement when it exists. Misstatements can arise
Financial Statements that give a true and fair view from fraud or error and are considered material if,
and are free from material misstatement, whether individually or in the aggregate, they could reasonably
due to fraud or error which have been used for the be expected to influence the economic decisions of
purpose of preparation of the Consolidated Financial users taken on the basis of these consolidated Ind AS
Statements by the Directors of the Holding Company. financial statements.
In preparing the Consolidated Financial Statements, As part of an audit in accordance with SAs, we exercise
the respective Board of Directors of the companies professional judgement and maintain professional
included in the Group and of its associates and jointly scepticism throughout the audit. We also:
controlled entities are responsible for assessing the
l Identify and assess the risks of material
ability of the Group and of its associates and jointly
misstatement of the consolidated Ind AS
controlled entities to continue as a going concern,
financial statements, whether due to fraud or
disclosing, as applicable, matters related to going
error, design and perform audit procedures
concern and using the going concern basis of
responsive to those risks, and obtain audit
accounting unless management either intends to
evidence that is sufficient and appropriate to
liquidate the Group or to cease operations, or has no
provide a basis for our opinion. The risk of not
realistic alternative but to do so.
detecting a material misstatement resulting from
In case of the Joint Venture Company RINL Power fraud is higher than for one resulting from error,
Grid TLT Private Limited, the Board of POWERGRID as fraud may involve collusion, forgery,
Corporation has accorded in principle approval for intentional omissions, misrepresentations, or the
winding/ dissolution of RPTPL vide the resolution in its override of internal control.
353rd meeting held on 01st May, 2018 and seek consent
l Obtain an understanding of internal financial
of the other J.V partner RINL. The proposal was
controls relevant to the audit in order to design
deliberated by RINL Board in its 318th meeting held on
audit procedures that are appropriate in the
08th March, 2019. RINL Board directed to seek the
circumstances. Under section 143(3)(i) of the
approval for closure of RPTPL from Ministry of Steel,
Act, we are also responsible for expressing our
Government of India and to agree with POWERGRID
opinion on whether the Company has adequate
for winding-up/ dissolution of RPTPL, subject to
internal financial control systems in place and
approval of closure by Government of India.
the operating effectiveness of such controls.
The Auditors of RPTPL have reported that, subject to
l Evaluate the appropriateness of accounting
the approval of Ministry of Steel, it is absolutely clear
policies used and the reasonableness of
that RPTPL will cease to exist and likely to be wound
accounting estimates and related disclosures
up in the future, and therefore it is concluded it is not
made by management.
a going concern and treated accordingly.
l Conclude on the appropriateness of
The Board of Directors of the respective companies
management's use of the going concern basis

146
 of accounting and, based on the audit evidence We communicate with those charged with governance
obtained, whether a material uncertainty exists of the Holding Company and such other entities
related to events or conditions that may cast included in the Consolidated Financial Statements of
significant doubt on the ability of the Group and which we are the independent auditors regarding,
of its associates and jointly controlled entities to among other matters, the planned scope and timing
continue as a going concern. If we conclude that of the audit and significant audit findings, including any
a material uncertainty exists, we are required to significant deficiencies in internal control that we
draw attention in our auditor's report to the identify during our audit.
related disclosures in the consolidated Ind AS We also provide those charged with governance with
financial statements or, if such disclosures are a statement that we have complied with relevant ethical
inadequate, to modify our opinion. Our requirements regarding independence, and to
conclusions are based on the audit evidence communicate with them all relationships and other
obtained up to the date of our auditor's report. matters that may reasonably be thought to bear on
However, future events or conditions may cause our independence, and where applicable, related
the Group and of its associates and jointly controlled safeguards.
entities to cease to continue as a going concern. From the matters communicated with those charged
l Evaluate the overall presentation, structure and with governance, we determine those matters that were
content of the consolidated Ind AS financial of most significance in the audit of the Consolidated
statements, including the disclosures, and whether Financial Statements of the current period and are
the consolidated Ind AS financial statements therefore the key audit matters. We describe these
matters in our auditor's report unless law or regulation
represent the underlying transactions and events
precludes public disclosure about the matter or when,
in a manner that achieves fair presentation.
in extremely rare circumstances, we determine that a
l Obtain sufficient appropriate audit evidence matter should not be communicated in our report
regarding the financial information of the entities because the adverse consequences of doing so would
or business activities within the Group and of its reasonably be expected to outweigh the public interest
associates and jointly controlled entities to benefits of such communication.
express an opinion on the Consolidated Financial
Other Matter
Statements. We are responsible for the direction,
We did not audit the financial statements of the
supervision and performance of the audit of the
subsidiary company of the holding company namely
financial statements of such entities included in
Eastern Investments Limited and its subsidiaries and
the Consolidated Financial Statements of which
associate companies of the said Eastern Investments
we are the independent auditors. For the other
Limited whose consolidated financial statements,
entities included in the financial statements,
reflect its consolidated total assets of 517.16 Crores
which have been audited by other auditors, such
as at 31st March 2020, consolidated total revenues of
other auditors remain responsible for the
53.72 Crores and consolidated net cashflows
direction, supervision and performance of the amounting to 176.73 Crores for the year ending on
audits carried out by them. We remain solely that date,as considered in these Consolidated
responsible for our audit opinion. Financial Statements.We did not also audit the
Materiality is the magnitude of misstatements in the Financial Statements of the Holding Company's
Consolidated Financial Statements that, individually or Associate Company namely, International Coal
in aggregate, makes it probable that the economic Ventures Private Limited (ICVL) and its Subsidiaries,
decisions of a reasonably knowledgeable user of the Associates, and Joint Venture. We did not also audit
financial statements may be influenced. We consider the financial statements of the Holding Company's joint
quantitative materiality factors in (i) planning the scope venture companies namely RINMOIL Ferro Alloys Pvt
of our audit work and in evaluating the results of our Ltd. RINL Power Grid TLT Private Limited. The
work; and (ii) to evaluate the effect of any identified consolidated net loss of 28.32 crores, of the said
misstatements in the financial statements. Associate and Joint Ventures of the Holding is included,

147
under the Equity Method, in these Consolidated vide notification No. G.S.R.463[E] dated 5th
Financial Statements. June, 2015 of Ministry of Corporate Affairs.
The financial statements of the said Subsidiaries, f. With respect to the adequacy of the internal
Associate and Joint Ventures of the Holding Company financial controls over financial reporting of the
have been audited by other auditors whose reports Company and the operating effectiveness of such
have been furnished to us by the management and controls, refer to "Annexure A" to this report.
our opinion on the consolidated Ind AS financial g. With respect to the other matters to be included
statements, in so far as it relates to the amounts and in the Auditor's Report in accordance with Rule
disclosures included in respect of the said subsidiary, 11 of the Companies (Audit and Auditors) Rules,
jointly ventures and associates, and our report in terms 2014, in our opinion and to the best of our
of sub-sections (3) and (11) of Section 143 of the Act, information and according to the explanations
in so far as it relates to the aforesaid subsidiary, joint given to us:
ventures and associates, is based solely on the reports
i. The consolidated Ind AS financial statements
of the other auditors.
disclose the impact of pending litigations on the
Our opinion on the consolidated Ind AS financial consolidated financial position of the group as
statements, and our report on Other Legal and stated in Note No. 40 to the consolidated Ind AS
Regulatory Requirements below, is not modified in financial statements.
respect of the above matters with respect to our reliance
ii. The Group did not have any long-term contracts
on the work done and the reports of the other auditors .
including derivative contracts for which there
Report on Other Legal and Regulatory were any material foreseeable losses.
Requirements
iii. In respect of subsidiary company (EIL), there
1. As required by Section 143 (3) of the Act, we was an amount of 2.27 Lacs related to unpaid/
report that: unclaimed dividend for the F.Y 2011-12 which
a. We have sought and obtained all the information were required to be transferred to the Investor
and explanations which to the best of our Education and Protection Fund (IEPF) by the
knowledge and belief were necessary for the subsidiary company within 25.10.2019 but the
purposes of our audit. same has not been transferred to IEPF till
b. In our opinion, proper books of account as 18.08.2020.
required by law have been kept by the company 2. As required by section 143(5) of the Act, we give
so far as it appears from our examination of in "Annexure - B", a statement on the matters
those books and proper returns adequate for specified by the Comptroller and Auditor General
the purposes of our audit have been received of India for the Group.
from the branches not visited by us.
c. The Consolidated Balance Sheet, the
for M Bhaskara Rao & Co.,
Consolidated Statement of Profit and Loss, and
the Consolidated Cash Flow Statement and Chartered Accountants
Consolidated Statement of Changes in Equity Firm Registration Number: 000459S
dealt with by this Report are in agreement with
the books of account and with the returns
Sd/-
V.Raghunandan
received from the branches not visited by us.
Partner
d. In our opinion, the aforesaid Consolidated Ind
AS financial statements comply with the Membership No: 026255
Accounting Standards specified under Section UDIN No: 20026255AAAAEK1984
133 of the Act, read with Rule 7 of the Companies Place: Hyderabad
(Accounts) Rules, 2014. Date: 04.09.2020
e. The provisions of Section 164 (2) of the Act are
not applicable to the Government Companies

148
 M. Bhaskara Rao & Co.
Chartered Accountants

Annexure - A to the Independent Auditors' Report: the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records,
The Annexure referred to in our report to the members
and the timely preparation of reliable financial
of the Company for the year ended on 31st March 2020.
information, as required under the Act.
We report that:
Auditors' Responsibility
In conjunction with our audit of the consolidated Ind
AS financial statements of the Company as of and for Our responsibility is to express an opinion on the
the year ended 31st March, 2020, we have audited the Company's internal financial controls over financial
Internal financial controls over financial reporting of reporting based on our audit. We conducted our audit
Rashtriya Ispat Nigam Limited (hereinafter referred to in accordance with the Guidance Note on Audit of
as "the Holding Company") and its subsidiary Internal Financial Controls Over Financial Reporting
companies, its associate companies and jointly (the "Guidance Note") and the Standards on Auditing,
controlled companies, that are companies incorporated issued by ICAI and deemed to be prescribed under
in India, as of that date. In respect of Subsidiary section 143(10) of the Companies Act, 2013, to the
Companies of M/s. International Coal Ventures Limited extent applicable to an audit of internal financial
are Companies incorporated outside India, hence the controls, both applicable to an audit of Internal
reporting on the adequacy of the internal financial Financial Controls and, both issued by the Institute of
controls over financial reporting in respect of those Chartered Accountants of India. Those Standards and
Companies is not applicable and hence this report is the Guidance Note require that we comply with ethical
limited to companies incorporated in India only. requirements and plan and perform the audit to obtain
reasonable assurance about whether adequate
Management's Responsibility for Internal
internal financial controls over financial reporting was
Financial Controls
established and maintained and if such controls
The respective Board of Directors of the Holding operated effectively in all material respects.
company, its subsidiary companies, its associate
Our audit involves performing procedures to obtain
companies and jointly controlled companies, which are
audit evidence about the adequacy of the internal
companies incorporated in India, are responsible for
financial controls system over financial reporting and
establishing and maintaining internal financial controls
their operating effectiveness.
based on the internal control over financial reporting
criteria established by the Companies considering the Our audit of internal financial controls over financial
essential components of internal control stated in the reporting included obtaining an understanding of
Guidance Note on Audit of Internal Financial Controls internal financial controls over financial reporting,
Over Financial Reporting issued by the Institute of assessing the risk that a material weakness exists, and
Chartered Accountants of India. These responsibilities testing and evaluating the design and operating
include the design, implementation and maintenance effectiveness of internal control based on the assessed
of adequate internal financial controls that were risk. The procedures selected depend on the auditor's
operating effectively for ensuring the orderly and judgement, including the assessment of the risks of
efficient conduct of its business, including adherence material misstatement of the Ind AS financial
to company's policies, the safeguarding of its assets, statements, whether due to fraud or error.

149
We believe that the audit evidence we have obtained in conditions, or that the degree of compliance with
is sufficient and appropriate to provide a basis for our the policies or procedures may deteriorate.
audit opinion on the Company's internal financial
Opinion
controls system over financial reporting.
In our opinion, the Holding Company, its subsidiary
Meaning of Internal Financial Controls Over
companies jointly controlled companies and associate
Financial Reporting
company have in all material respects, an adequate
A company's internal financial control over financial internal financial controls system over financial
reporting is a process designed to provide reasonable reporting and such internal financial controls over
assurance regarding the reliability of financial reporting financial reporting were operating effectively as at 31st
and the preparation of Ind AS financial statements for March, 2020, based on the internal control over
external purposes in accordance with generally financial reporting criteria established by the Company
accepted accounting principles. A company's internal considering the essential components of internal
financial control over financial reporting includes those control stated in the Guidance Note on Audit of Internal
policies and procedures that: Financial Controls Over Financial Reporting issued by
the Institute of Chartered Accountants of India.
l Pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect Other Matters
the transactions and dispositions of the assets
Our aforesaid reports under Section 143(3)(i) of the
of the company;
Act on the adequacy and operating effectiveness of
l Provide reasonable assurance that transactions the internal financial controls over financial reporting
are recorded as necessary to permit preparation in so far as it relates to One (01) subsidiary company,
of Ind AS financial statements in accordance with and Two (02) jointly controlled companies and one
generally accepted accounting principles, and (01) Associate company, which are companies in
that receipts and expenditures of the company corporated in India, is based on the corresponding
are being made only in accordance with reports of the auditors of such companies incorporated
authorizations of management and directors of in India.
the company; and
for M Bhaskara Rao & Co.,
l Provide reasonable assurance regarding
Chartered Accountants
prevention or timely detection of unauthorized
acquisition, use, or disposition of the company's Firm Registration Number: 000459S
assets that could have a material effect on the
Ind AS financial statements.
Sd/-
Inherent Limitations of Internal Financial Controls V.Raghunandan
Over Financial Reporting
Partner
Because of the inherent limitations of internal financial
Membership No: 026255
controls over financial reporting, including the possibility
of collusion or improper management override of UDIN No: 20026255AAAAEK1984
controls, material misstatements due to error or fraud Place: Hyderabad
may occur and not be detected. Also, projections of
any evaluation of the internal financial controls over Date: 04.09.2020
financial reporting to future periods are subject to the
risk that the internal financial control over financial
reporting may become inadequate because of changes

150
 M. Bhaskara Rao & Co.
Chartered Accountants

Annexure B - to the Independent Auditors’ Report:

accounted for through the IT system except some
The Annexure referred to in our report to the members
operations/ transactions which have a bearing on the
of the Holding Company for the year ended on 31st
accounts of the Company, takes place outside the
March, 2020. We report under section 143(5) of the
system. As per practice all transactions are manually
Companies Act, 2013 in respect of the Holding
entered in software which maintains regular books of
Company and based solely on the reports of the
accounts.
respective Auditors of the Subsidiary, Jointly Controlled
In this prevailing system there is a chance of some
Companies and the Associate company, as under:
aforesaid transaction being missed to be accounted
DESCRIPTION:
for as the flow of accounting transactions are not
1. Whether the company has system in place to accounted for as the flow of accounting transactions
process all the accounting transactions are not automated at the point of generation of
through IT System? If yes, the implications of transactions. The financial implications of transactions
processing of accounting transaction outside outside the IT system are unascertainable.
IT system on the integrity of the accounts
THE ORISSA MINERALS DEVELOPMENT
along with the financial implication, if any may
COMPANY LIMITED:
be stated.
Yes, all the accounting transactions are accounted for
AUDITORS’ RESPONSE:
through IT System. However as explained to us, there
RASHTRIYA ISPAT NIGAM LIMITED: are operations/transactions which take place outside
Based on information and explanation furnished to us system but have a bearing on the accounts of the
and on our examination of the accounts, records, company.
reports and the system in place for the preparation of As per past practice, all transactions are manually
the same, we report that the company has deployed entered in the software which maintains regular books
SAP ERP for the said purpose. Further based on the of accounts.
aforesaid examination no accounting transactions are
As per existing practice, there are chances of some
passed outside the books of accounts that form the
aforesaid transactions being missed to be accounted
basis for the financial statements being audited by us.
as the flow of accounting transactions are not
EASTERN INVESTMENTS LIMITED: automated at the point of generation of transaction.
As explained to us and on the basis of information The financial implications of transactions outside the
available, all the accounting transactions are IT system are unascertainable.

151
THE BISRA STONE LIME COMPANY LIMITED: interest etc. made by a lender to the company due
to the company's inability to repay the loan? If yes,
The Company does all the accounting transactions through
the financial impact may be stated.
IT system. However, as explained to us, there are
operations/ transactions which take place outside the AUDITORS’ RESPONSE:
system but have a bearing on the accounts of the Company. RASHTRIYA ISPAT NIGAM LIMITED:

For instance, the accounting transactions flow from the Based on the records, information & explanations given to
ERP department of the Company which maintains data for us, there is no restructuring of an existing loan or cases of
Payroll and Stores operations are not automatically updated waiver/ write off of debt/ loans/ interest etc. made by a
in the software where regular books of accounts are lender to the company, during the year. However on issue
maintained. As per past practice, all the said transactions of circular by RBI dated 27th March, 2020 on COVID-19-
are then manually entered in the software which maintains regulatory package, the company has availed of the option
regular books of account. for a moratorium period for repayment of borrowings as
stated in Note 18E to the Consolidated Financial Statements.
As per existing practice, there are chances of some
aforesaid transactions being missed to be accounted as EASTERN INVESTMENTS LIMITED:
the flow of accounting transactions are not automated at
As explained to us and on the basis of information available,
the point of generation of transaction. The financial
there is no instance of waiver/write off of debts/interest on
implications of transactions outside the IT system are
loan during the current financial year.
unascertainable.
THE ORISSA MINERALS DEVELOPMENT COMPANY
INTERNATIONAL COAL VENTURES PRIVATE LIMITED:
LIMITED:
As per the information and explanations given to us, the
As explained to us and on the basis of information available,
Company has a system in place to process all the
there is no instance of Waivers/write off of debts/interest
accounting transactions through IT system. Tally ERP9
of loan during the current financial year.
package has been implemented for accounting transactions
and financial reporting processes. THE BISRA STONE LIME COMPANY LIMITED:

Based on the Audit procedures carried out and according Based on our examination of relevant records of the
to the information and explanation given to us, we are not Company and the information and explanations received
aware of any accounting transactions that have been from the management, there were no cases of restructuring
processed/ carried outside the IT system. Accordingly, there of an existing loan or cases of waiver/ write-off debts/ loans/
are no implications on the integrity of the accounts. interest by any of the lenders of the company due to inability
to repay the loan made during the financial year 2019-2020.
RINMOIL FERRO ALLOYS PRIVATE LIMITED:
INTERNATIONAL COAL VENTURES PRIVATE LIMITED:
The company is maintaining accounting transactions
through Tally Software Package. The Company is financed entirely through equity. Therefore,
the clause is not applicable to the Company.
RINL POWERGRID TLT PRIVATE LIMITED:
RINMOIL FERRO ALLOYS PRIVATE LIMITED:
Based on the information and representations provided by
the management to us and based on the verification No such Cases
procedures performed by us, the Company has system in RINL POWERGRID TLT PRIVATE LIMITED:
place to process/ record all the accounting transaction
Based on the information and representations provided by
through IT system. No accounting transactions are being
the management to us and based on the verification
recorded/ processed through other than IT system.
procedures performed by us, there were no restructuring of
2. Whether there is any restructuring of an existing loans or cases of waiver/ write-off of debts/ loans/ interest
loan or cases of waiver/write off of debt/loans/ etc., during the year.

152
3. Whether funds received/receivable for specific 4. Examine and Comment on the accounting
schemes from central/state agencies were properly treatment and inventory valuation of Blast Furnace
accounted for/utilized as per its term and
Slag in Fresh/ Dump with regards to RINL.
conditions? List the cases of deviation.
AUDITORS’ RESPONSE
AUDITORS’ RESPONSE:
RASHTRIYA ISPAT NIGAM LIMITED:
RASHTRIYA ISPAT NIGAM LIMITED:

According to information given to us, funds received/ BF Slag is generated at the time of hot metal production in
receivable for specific schemes from central/ state agencies the respective Blast Furnaces and is stored at Slag Storage
were properly accounted for/ utilized as per its terms and Yard (SSY) and Dump Yard.
conditions.
As per the information and explanations furnished to us,
There are no cases of deviation during the year. and based on our examination thereof, for the year ending
EASTERN INVESTMENTS LIMITED: 31st March, 2020;
As explained to us and on the basis of information available, - Stock of BF slag at Slag Storage Yard is valued at
the Company has not received any funds from Central/State the latest net realized value and corresponding credit
agencies.
is given to the cost of production of hot metal.
THE ORISSA MINERALS DEVELOPMENT COMPANY Necessary accounting entries will be posted during
LIMITED: the movement of stock by way of receipts/
As explained to us and on the basis of information available, dispatches to customers, where sales revenue is
the company has not received any funds from Central/State recognized.
Agencies.
- Stock of BF slag at Dump Yard is not valued, except
THE BISRA STONE LIME COMPANY LIMITED:
for quantity if any which is identified for sale against
Based on our examination of relevant records of the arrangements with customers. As at 31st March, 2020
Company and the information and explanations received stock of BF slag at dump yard has not been valued.
from the management, the Company has not received any
Revenue is recognized in the books of accounts upon
funds for specific schemes from central/ state/ agencies
its sale if any to customers.
during the financial year 2019-2020.

INTERNATIONAL COAL VENTURES PRIVATE LIMITED:

Based on the audit procedures carried out by us and

according to the information and explanations given to us, for M Bhaskara Rao & Co.,
the Company has not received funds under any specific
scheme from Central/ State agencies. Therefore the clause Chartered Accountants
is not applicable to the company.
Firm Registration Number: 000459S
RINMOIL FERRO ALLOYS PRIVATE LIMITED:
Sd/-
No such Cases V.Raghunandan
RINL POWERGRID TLT PRIVATE LIMITED: Partner

Based on the information and representations provided by Membership No: 026255

the management to us and based on the verification UDIN No: 20026255AAAAEK1984
procedures performed by us, no funds were received for Place: Hyderabad
any specific schemes from central/ state agencies during Date: 04.09.2020
the year.

153
154
155
 CONSOLIDATED BALANCE SHEET AS AT 31st MARCH 2020 ( in Crores)
Particulars Notes 31st March 2020 31st March 2019
I Assets
Non-Current Assets
(a) Property, Plant and Equipment 3 19372.33 19030.18
(b) Capital Work-In-Progress 3 3739.28 3854.20
(c ) Investment Property 4 0.07 0.07
(d) Goodwill 5 149.49 149.49
(e ) Other Intangible Assets 5 13.83 16.54
(f) Intangible assets under development 5 - -
(g) Equity Accounted Investees 41 614.89 563.41
(h) Financial Assets
(i) Investments 6 1.03 1.65
(ii) Loans 7A 75.41 115.91
(iii) Other Financial Assets 8A 28.16 26.43
(i) Deferred Tax Asset (net) 9 1740.84 1357.60
(j) Other Non-Current Assets 10 83.46 80.07
Total Non-Current Assets 25,818.79 25,195.55
Current Assets
(a) Inventories 11 7,060.21 7,517.73
(b) Financial Assets
(i) Investments 6 - -
(ii) Trade Receivables 12 613.15 1,133.50
(iii) Cash and Cash Equivalents 13 195.10 472.18
(iv) Loans 7B 0.47 0.41
(v) Other Financial Assets 8B 679.98 576.41
(c ) Other Tax Assets (net) 14A 69.57 65.28
(d) Other Current Assets 15 784.88 889.04
Total Current Assets 9,403.36 10,654.55
Total Assets 35,222.15 35,850.10
II Equity and Liabilities
Equity
(a) Equity Share Capital 16 4,889.85 4,889.85
(b) Other Equity
(i) Reserves and Surplus 17 A (1,781.18) 2,346.15
(ii) Other Comprehensive Income 17 B 163.04 83.25
(i) Equity attributable to the owners of the company 3,271.71 7,319.25
(ii) Non Controlling Interests 42 (36.22) 29.93
Total Equity 3,235.49 7,349.18
Liabilities
Non-Current Liabilities
(a) Financial Liabilities
(i) Borrowings 18A 9,759.77 9,309.26
(ii) Other Financial Liabilities 19A 163.71 96.38
(b) Provisions 20A 1,287.73 1,076.18
(c ) Deferred Tax Liabilities (net) 9 - -
(d) Other Non-Current Liabilities 21A 7.76 8.12
(e ) Government Grants - Deferred - PPE 21B 119.67 5.21
Total Non-Current Liabilities 11,338.64 10,495.15
Current Liabilities
(a) Financial Liabilities
(i) Borrowings 18B 11,677.43 9,844.03
(ii) Trade payables 22
- Micro Enterprises and Small Enterprises 48.41 109.63
- Other than Micro Enterprises and Small Enterprises 3,456.02 2,481.01
(iii) Other Financial Liabilities 19B 4,052.88 4,159.48
(iv) Derivatives 23 - -
(b) Provisions 20B 910.13 717.87
(c ) Other Tax Liabilities 14B 28.04 25.68
(d) Other Current Liabilities 24 468.93 667.70
(e ) Government Grants - Deferred - PPE 21B 6.18 0.37
Total Current Liabilities 20,648.02 18,005.77
Total Liabilities 31,986.66 28,500.92
Total Equity and Liabilities 35,222.15 35,850.10
The notes 1 to 46 are an integral part of the financial statements.
For and on behalf of the Board of Directors As per our report of even date
For M/s M. Bhaskara Rao & Co
Sd/- Sd/- Chartered Accountants
(P. K. Rath) (V.V. Venu Gopal Rao) Firm Regn No: 000459S
Chairman-cum-Managing Director Director (Finance)
and Chief Financial Officer Sd/-
Sd/- (CA V. Raghunandan)
Place : Visakhapatnam (M Jagadeeshwara Rao) Partner
Date : 04.09.2020 Company Secretary Membership No: 26255

156
 CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 st MARCH 2020 ( in Crores)
Particulars Notes For the year ended For the year ended
31st March 2020 31st March 2019
Income
I Revenue from Operations 25 15,966.22 20,568.85
II Other Income 26 247.04 347.37
III Total Income (I+II) 16,213.26 20,916.22
IV Expenses
Cost of materials consumed 27 11,581.22 13,715.17
Changes in inventory of finished goods and work-in-progress 28 (686.00) (957.77)
Employee benefits expense 29 2,662.85 2,481.48
Finance costs 30 1,519.68 1,281.89
Depreciation and amortisation expense 31 1,111.54 1,072.77
Other expenses 32 4,183.94 4,520.40
Total Expenses (IV) 20,373.23 22,113.94
V Profit/ (Loss) before exceptional items, share of profit/ (loss)
of equity accounted investees and tax (III-IV) (4,159.97) (1,197.72)
VI Share of profit/ (loss) of equity accounted investees 41 (28.32) (29.65)
VII Profit/ (Loss) before exceptional items and tax (V+VI) (4,188.29) (1,227.37)
VIII Exceptional items 32A 181.97 (225.40)
IX Profit/ (Loss) before tax (VII-VIII) (4,370.26) (1,001.97)
X Tax Expense/ (Credit):
Current tax - 0.13
Deferred tax (349.33) (590.16)
Earlier year adjustments 0.16 -
Total Tax Expense/ (Credit) (X) 9 (349.17) (590.02)
XI Profit/ (Loss) for the year from continuing operations (IX-X) (4,021.09) (411.95)
XII Profit/ (Loss) for the year from discontinued operations - -
XIII Tax expense of discontinued operations - -
XIV Profit / (Loss) for the year from discontinued operations
(after tax) (XII-XIII) - -
XV Profit/ (Loss) for the period (XI+XIV) (4,021.09) (411.95)
XVI Other Comprehensive Income
(i) Items that will not be re classified to profit or loss
(a) Re-measurements of defined benefit liability /asset (206.34) 42.14
(b) Income tax relating to items that will not be reclassified to profit or loss 33.94 (8.02)
(ii) Items that will be re classified to profit or loss
(a) Share of Other comprehensive income of equity accounted investees 79.79 52.57
(b) Income tax relating to items that will be reclassified to profit or loss - -
Other Comprehensive Income for the year, net of income tax (92.61) 86.69
XVII Total Comprehensive Income for the year (XV+XVI) (4,113.70) (325.25)
Profit attributable to:
(i) Owners of the company (3,956.49) (54.92)
(ii) Non-controlling interests (64.60) (357.03)
Profit for the year (4,021.09) (411.95)
Other Comprehensive Income attributable to:
(i) Owners of the company (91.06) 87.06
(ii) Non-controlling interests (1.55) (0.36)
Other Comprehensive Income for the year (92.61) 86.69
Total Comprehensive Income attributable to:
(i) Owners of the company (4,047.55) 32.14
(ii) Non-controlling interests (66.15) (357.39)
Total Comprehensive Income for the year (4,113.70) (325.25)
XVIII Earnings/ (Loss) per each equity share of 10 each 37
1. Basic ( ) (8.09) (0.11)
2. Diluted ( ) (8.09) (0.11)
Weighted average number of shares used in
computing earnings per share
Basic 4,88,98,46,200 4,88,98,46,200
Diluted 4,88,98,46,200 4,88,98,46,200
The notes 1 to 46 are an integral part of the financial statements.
For and on behalf of the Board of Directors As per our report of even date
For M/s M. Bhaskara Rao & Co
Sd/- Sd/- Chartered Accountants
(P. K. Rath) (V.V. Venu Gopal Rao) Firm Regn No: 000459S
Chairman-cum-Managing Director Director (Finance)
and Chief Financial Officer Sd/-
Sd/- (CA V. Raghunandan)
Place : Visakhapatnam (M Jagadeeshwara Rao) Partner
Date : 04.09.2020 Company Secretary Membership No: 26255

157
 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(FOR THE YEAR ENDED 31ST MARCH 2020)
a.Equity Share Capital ( in Crores)
Particulars Amount
Balance as at 1st April 2018 4,889.85
Changes in equity share capital during 2018-19 -
st
Balance as at the 31 March 2019 4,889.85
Changes in equity share capital during 2019-20 -
Balance as at the 31st March 2020 4,889.85

b. Other Equity ( in Crores)

Reserves and Surplus Items of OCI
Total
attributable
Particulars Reserves for Reserve fund Attributable
Capital to owners Total
Retained redeeming Capital Investment as per RBI General Other items to NCI
Redemption of the
Earnings Preference Reserve Reserve Act (Special Reserve of OCI
Reserve Company
Shares Reserve)
Balance as at 1st April 2018 (575.02) 2937.47 (0.46) 0.75 3.84 30.68 2397.27 387.36 2784.63
Total Comprehensive Income for
the year ended 31st March 2019
Profit or loss (54.92) (54.92) (357.03) (411.95)
Other comprehensive income (net of tax) 34.49 52.57 87.06 (0.36) 86.69
Total Comprehensive Income (20.43) 52.57 32.14 (357.39) (325.26)
Dividend including dividend distribution tax (0.00) (0.00) (0.04) (0.04)
Amounts transferred within the reserves
Additions
Balance at 31st March 2019 (595.45) 2937.47 (0.46) 0.75 3.84 83.25 2429.39 29.93 2459.33
Total Comprehensive Income for
the year ended 31st March 2020
Profit or loss (3956.49) (3956.49) (64.60) (4021.09)
Other comprehensive income (net of tax) (170.85) 79.79 (91.06) (1.55) (92.61)
Total Comprehensive Income (4127.34) 79.79 (4047.54) (66.15) (4113.70)
Dividend including dividend distribution tax
Amounts transferred within the reserves
Additions
Balance at 31st March 2020 (4722.79) 2937.47 (0.46) 0.75 3.84 163.04 (1618.15) (36.22) (1654.37)
As per our report of even date
The notes 1 to 46 are an integral part of the financial statements. For M/s M. Bhaskara Rao & Co
Sd/-
For and on behalf of the Board of Directors Chartered Accountants
(V.V. Venu Gopal Rao)
Director (Finance) Firm Regn No: 000459S
Sd/- and Chief Financial Officer Sd/-
(P. K. Rath) Sd/- (CA V. Raghunandan)
Place : Visakhapatnam Chairman-cum- (M Jagadeeshwara Rao) Partner
Date : 04-09-2020 Managing Director Company Secretary Membership No: 26255

158
 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 st MARCH 2020 ( in Crores)
Particulars For the year ended For the year ended
31st March 2020 31st March 2019
Cash flows from Operating Activities
Profit/ (Loss) for the year (before tax) (4,370.26) (1,001.97)
Adjustments for:
Depreciation and Amortisation Expense 1,111.54 1,072.77
Finance Costs 1,519.68 1,281.89
Share of (profit)/ loss of equity accounted investees 28.32 29.65
Interest income from banks (0.30) (0.30)
(Gain) Loss on Sale of Property, plant and equipment (0.85) (0.99)
Unrealised Net (Gain)/ Loss arising on Financial instruments designated as FVTPL 87.09 0.00
Operating Profit before changes in Assets and Liabilities (1,624.78) 1,381.05
Changes in Assets and Liabilities :
(Increase) decrease in inventories 457.52 (1,859.75)
(Increase) decrease in trade receivables and loans 560.79 (27.43)
(Increase) decrease in other financial assets (105.30) (72.51)
(Increase) decrease in other non current assets (1.89) 28.39
(Increase) decrease in other current assets 62.67 (184.39)
Increase (decrease) in trade payables 913.79 1,362.69
Increase (decrease) in other financial liabilities (69.04) (936.10)
Increase (decrease) in provisions 197.47 97.96
Increase (decrease) in non-current liabilities (0.36) (74.27)
Increase (decrease) in other current liabilities (198.77) 139.51
Cash generated from Operating Activities 192.11 (144.86)
Income tax paid (net of refund) 39.41 (27.25)
Net cash from (used in ) Operating Activities (A) 231.52 (172.11)
Cash Flows from Investing Activities
Acquisition of property, plant and equipment (1,164.95) (1,713.01)
Proceeds from sale of property, plant and equipment 0.85 1.27
Interest received from banks 0.30 0.30
Investment in fixed deposits 175.86 475.45
Acquisition of investments 0.61 0.29
Net Cash Flow from (used in) Investing Activities (B) (987.33) (1,235.68)
Cash Flows from Financing Activities
Proceeds from (Repayment of ) long term borrowings 502.91 2,416.35
Proceeds from (Repayment of) short term borrowings 1,833.40 582.62
Interim Dividend paid 0.00 (0.04)
Repayment of principal portion of Lease Liability (0.67) 0.00
Interest paid (1,681.05) (1,522.78)
Net Cash Flow from (used in) Financing Activities ( C) 654.59 1,476.14
Net increase (decrease) in Cash and Cash Equivalents (A+B+C) (101.22) 68.35
Cash and cash equivalents at 1st April 110.30 41.95
Cash and Cash Equivalents at 31st March 9.08 110.30
Reconciliation of Cash and Cash Equivalent as per the Balance Sheet 31st March 2020 31st March 2019
Cash and cash equivalent as per the cash flow statement 9.08 110.30
Other bank balances not considered above:
- Bank deposits with maturity more than 3 months 95.03 320.88
- Bank deposits with maturity more than 12 months 8.88 9.08
- Restricted Balances 82.11 31.93
Cash and Cash Equivalent as per Balance Sheet 195.10 472.18
The Cash flow statement has been prepared under indirect method in accordance with Ind AS 7.
The notes 1 to 46 are an integral part of the financial statements.
For and on behalf of the Board of Directors As per our report of even date

For M/s M. Bhaskara Rao & Co

Sd/- Sd/- Chartered Accountants
(P. K. Rath) (V.V. Venu Gopal Rao) Firm Regn No: 000459S
Chairman-cum-Managing Director Director (Finance)
and Chief Financial Officer Sd/-
Sd/- (CA V. Raghunandan)
Place : Visakhapatnam (M Jagadeeshwara Rao) Partner
Date : 04.09.2020 Company Secretary Membership No: 26255

159
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AS AT 31st MARCH 2020
1 Company Overview 2.4 Basis of Consolidation
Rashtriya Ispat Nigam Limited is a company a. Business Combination
domiciled in India. The Company’s registered Business combinations (other than common
office is Administrative Building, Visakhapatnam control business combinations) on or after 1
Steel Plant (VSP), Visakhapatnam, Andhra April 2014.
Pradesh, India. These consolidated financial As part of its transition to Ind AS, the Group
statements comprises of the Company and its has elected to apply the relevant Ind AS, viz.
subsidiaries (referred to collectively as the Ind AS 103, Business Combinations, to only
‘Group’) and the Group’s interest in associates those business combinations that occurred on
and joint ventures. The Group is primarily or after 1 April 2014. In accordance with Ind AS
involved in the manufacture of steel and related 103, the Group accounts for these business
products. combinations using the acquisition method
2 Significant Accounting Policies when control is transferred to the Group. The
consideration transferred for the business
2.1 Basis of Preparation
combination is generally measured at fair value
The consolidated financial statements have
as at the date the control is acquired (acquisition
been prepared in accordance with Indian
date), as are the net identifiable assets acquired.
Accounting Standards (“Ind AS”) and provisions
Any goodwill that arises is tested annually for
of Companies Act, 2013 i.e.Section 133 of the
impairment. Any gain on a bargain purchase is
Companies Act,2013 as prescribed/notified and
recognized in OCI and accumulated in equity
amended from time to time under the historical
as capital reserve if there exists clear evidence
cost convention on accrual basis except for
of the underlying reasons for classifying the
certain material financial instruments which are
business combination as resulting in a bargain
measured at fair value.
purchase; otherwise the gain is recognized
2.2 Functional and Presentation Currency directly in equity as capital reserve. Transaction
The consolidated financial statements are costs are expensed as incurred, except to the
presented in Indian rupees, which is the extent related to the issue of debt or equity
functional currency of the Company and the securities.
currency of the primary economic environment
The consideration transferred does not include
in which the entity operates. All financial
amounts related to the settlement of pre-existing
information presented in Indian rupees has
relationships with the acquiree. Such amounts
been rounded to the nearest two decimals of
are generally recognized in profit or loss.
Crore except share and per share data.
Any contingent consideration is measured at fair
2.3 Use of Estimates and Judgement
value at the date of acquisition. If an obligation
The preparation of consolidated financial
to pay contingent consideration that meets the
statements require estimates and assumptions
definition of a financial instrument is classified
to be made that affect the reported amounts of
as equity, then it is not remeasured
assets and liabilities and disclosure of
subsequently and settlement is accounted for
contingent liabilities on the date of financial
within equity. Other contingent consideration is
statements and the reported amounts of
remeasured at fair value at each reporting date
revenues and expenses during the reporting
and changes in the fair value of the contingent
period. Actual results could differ from these
consideration are recognized in profit or loss.
estimates and differences between actual
If a business combination is achieved in stages,
results and estimates are recognized in the
any previously held equity interest in the
periods in which the results are known/
acquiree is re-measured at its acquisition date
materialized.
fair value and any resulting gain or loss is
recognised in profit or loss or OCI, as appropriate.

160
 Business Combinations prior 1 April 2014: 2.5 Inventories
In respect of such business combinations, 2.5.1 Inventories are valued at lower of cost and net
goodwill represents the amount recognized realizable value.
under the Group’s previous accounting
framework under Indian GAAP adjusted for the 2.5.2 The basis of determining cost is:
reclassification of certain intangibles. a) Finished / Semi-finished goods, Raw materials
b. Subsidiaries: – Periodic Weighted Average Cost.
RINL consolidates entities which it owns and b) Minor Raw materials, Stores and Spares (which
controls. The financial statements of do not meet PPE definition), Loose tools -
subsidiaries are included in the consolidated Dynamic Moving Weighted Average Cost.
financial statements from the date on which c) All Materials in- transit at cost.
control commences until the date on which
2.5.3 Necessary provisions are made for obsolete /
control ceases.
Surplus / Non-moving inventory.
c. Non-Controlling Interest (Guidelines for valuation of inventories are
NCI are measured at their proportionate share provided at note no. 11)
of the acquiree’s net identifiable assets at the
2.6 Property, Plant and Equipment (PPE)
date of acquisition.
2.6.1
d. Loss of Control
When the Group loses control over a subsidiary, (a) The Group has adopted the previous GAAP
it derecognizes the assets and liabilities of the value as the ‘deemed cost’ in preparing its
subsidiary, and any related NCI and other opening balance sheet as on 01 April 2015.
components of equity. Any interest retained in (b) Property, plant and equipment are measured
the former subsidiary is measured at fair value at cost less accumulated depreciation and
at the date the control is lost. Any resulting gain impairment losses.
or loss is recognized in profit or loss.
2.6.2 The cost of property, plant and equipment
e. Equity Accounted Investees comprises:
The Group’s interest in equity accounted
(i) Its purchase price;
investees comprises interests in associates and
joint ventures. Interests in associates and joint (ii) Any cost directly attributable to bringing the
ventures are accounted for using the equity asset to the location and condition necessary
method. They are initially recognized at cost for it to be capable of operating in the manner
which includes transaction costs. Subsequent intended by management;
to initial recognition, the consolidated financial (iii) The initial estimate of the costs of dismantling
statements include the Group’s share of profit and removing the item and restoring the site on
or loss and OCI of equity accounted investees which it is located, the obligation for which the
until the date on which significant influence or Group incurs either at the time of acquisition of
joint control ceases. asset or as a consequence of having used the
f. Transactions Eliminated on Consolidation asset during a particular period for purposes
Intra-group balances and transactions, and any other than to produce inventory during that period;
unrealized income and expenses arising from (iv) Expenditure attributable /relating to construction
intra-group transactions, are eliminated. to the extent directly identifiable to any specific
Unrealized gains arising from transactions with plant unit, trial run expenditure net of revenue.
equity accounted investees are eliminated 2.6.3 The cost of replacing a part of an item of PPE is
against the investment to the extent of the recognized in the carrying amount of the item
Group’s interest in the investee. Unrealized of property, plant and equipment if the
losses are eliminated in the same way as recognition criteria are met. Consequently, the
unrealized gains, but only to the extent that carrying amount of the replaced part is
there is no evidence of impairment. derecognized.
161
2.6.4 Expenditure attributable /relating to construction as an expense in the period in which it is
to the extent not directly identifiable to any incurred.
specific Plant Unit is kept under ‘Expenditure An internally-generated intangible asset arising
During Construction’ for allocation to PPE and from development (or from the development
is grouped under ‘Capital Work-in-Progress’. phase of an internal project) is recognised if,
2.6.5 All major spares, stand-by equipment, and and only if all of the following have been
servicing equipment that meet the criteria of demonstrated:
property, plant and equipment are capitalized. • the technical feasibility of completing the
2.6.6 Depreciation: intangible asset so that it will be available for
Depreciation is recognized on straight-line basis use or sale;
over the estimated useful life of each part of • the intention to complete the intangible asset
an item of property, plant and equipment. and use or sell it;
Depreciation methods, useful lives and residual
values are reviewed at each reporting date and • the ability to use or sell the intangible asset;
where expectations differ from previous • how the intangible asset will generate probable
estimates, the changes are accounted for as future economic benefits;
change in accounting estimate. • the availability of adequate technical, financial
2.7 Intangible Assets and other resources to complete the
In case of Holding Co. development and to use or sell the intangible
asset; and
2.7.1 Intangible assets are estimated at cost less
accumulated amortization and impairment. • the ability to measure reliably the expenditure
Intangible assets are amortized on straight line attributable to the intangible asset during its
method over their estimated useful life. development.

2.7.2 Residual values and useful lives of all intangible The group has not recognised any internally-
assets are reviewed at each reporting date. generated intangible assets.
Changes, if any, are accounted for as changes 2.7.6 Mining Rights
in accounting estimates. The costs of mining rights includes amounts paid
2.7.3 Goodwill that arises on business combination for afforestation and wild life conservation as
is not amortised and tested for impairment determined by the regulatory authorities are
annually. Subsequently measured at cost less capitalised as “Mining rights” in the year in which
accumulated impairment loss. they are incurred. Cost of pre-production primary
In Case of Subsidiary development expenditure other than land,
buildings, plant and equipment are capitalised
2.7.4 Intangible Assets acquired separately as part of the cost of the mining property until
Intangible assets acquired are reported at cost the mining property is capable of commercial
less accumulated amortisation and accumulated production. Capitalised mining properties are
impairment losses. Intangible assets having amortised on a unit-of-production basis over the
finite useful life are amortised over their total estimated remaining commercial reserves
estimated useful lives. The estimated useful life of mining property and are subject to
and amortisation method are reviewed at the impairment review.
end of each annual reporting period, with the 2.7.7 Exploration and Evaluation Expenditure
effect of any changes in estimate being
accounted for on a prospective basis. Exploration and evaluation expenditure incurred
after the group has obtained legal rights to
2.7.5 Internally-generated Intangible Assets – explore in a specific area such as exploration
Research and Development Expenditure and production licenses, researching and
Expenditure on research activities is recognised analyzing historical exploration data, exploratory

162
 drilling, trenching, sampling and the costs of 2.7.8 Derecognition of Intangible Assets
commercial feasibility studies. An intangible asset is derecognised on disposal,
Exploration and evaluation expenditure for each or when no future economic benefits are
area of interest is capitalised when the expected from use or disposal. Gains or losses
expenditure is expected to be recouped from arising from derecognition of an intangible
future exploitation or sale of the area of interest asset, measured as the difference between the
and it is planned to continue with active and net disposal proceeds and the carrying amount
significant operations in relation to the area, or of the asset are recognised in the statement of
at the reporting period end, the activity has not profit and loss when the asset is derecognised.
reached a stage which permits a reasonable 2.7.9 Amortisation
assessment of the existence of commercially
recoverable reserves. In all other cases such The estimated useful lives for the main
expenses is charged to profit and loss. categories of intangibles assets having finite
useful life are as follows:
Purchased exploration and evaluation assets
are recognised at their fair value at acquisition. (a) Acquired computer software is classified as
intangible assets and carries a useful life of 4 years.
As the capitalised exploration and evaluation
expenditure asset is not available for use, it is (b) Mining Rights comprising of NPV and related
not depreciated. All capitalised exploration and payments made to government authorities for
evaluation expenditure is monitored for iron ore and manganese mines are amortised
indications of impairment. Where a potential over the period of lease from the date of payment
impairment is indicated, an assessment is or date of renewal/ deemed renewal of mining
performed for each area of interest or at the lease whichever is earlier.
CGU level. To the extent that capitalised 2.7.10 Deemed cost on transition to Ind AS
expenditure is not expected to be recovered it For transition to Ind AS, the Group has elected
is charged to profit and loss. to continue with the carrying value of its
Administration costs that are not directly intangible assets recognized as of 1st April,
attributable to a specific exploration area are 2018 (transition date) measured as per the
charged to profit and loss. License costs paid previous GAAP and use that carrying value as
in connection with a right to explore in an existing its deemed cost as of the transition date.
exploration area are capitalised and amortised 2.8 Exploration and Evaluation Assets (E&E
over the term of the permit. Assets)
When commercially recoverable reserves are 2.8.1 Exploration and evaluation expenditure
determined and such proposed development comprises costs incurred after obtaining legal
receives the appropriate approvals, capitalised right to explore the area and before establishing
exploration and evaluation expenditure is technical feasibility and commercial viability of
transferred to capital work in progress. All extracting a mineral resource that are directly
subsequent development expenditure of attributable to:
underground mines is similarly capitalised, – researching and analyzing existing
provided commercial viability conditions exploration data;
continue to be satisfied. Proportionate cost of – conducting geological studies, exploratory
product extracted during the development drilling and sampling;
phase is netted against development – examining and testing extraction and
expenditure. Upon completion of development treatment methods; and/or
and commencement of production, capitalised – compiling pre-feasibility and feasibility studies.
development costs are further transferred to
2.8.2 Exploration and evaluation expenditure is
Mining Reserves, Resources and Rights and
recognized as an expense, unless the
depreciated using the unit of production
expenditure is expected to be recouped through
method.

163
 successful development and exploitation of the (b) Derivative Financial Instruments
area of interest, or alternatively by its sale, in (i) Derivative Financial Assets and liabilities are
which case it is recognized as an asset. initially recognized at fair value on the date a
2.8.3 Exploration and evaluation assets are classified derivative contract is entered into and are
as tangible (as part of property, plant and subsequently re-measured to their fair value at
equipment) or intangible according to the nature each reporting date.
of the assets. These assets are not depreciated
(ii) Changes in the fair value of any derivative Asset
till they are recognized as an E &E asset. These
or liability are recognized immediately in the
assets continue in CWIP and are depreciated
Income Statement and are included in other
once they are recognized as E&E assets.
income or expenses.
2.8.4 The carrying values of capitalized evaluation
(iii) Cash Flow Hedge: Changes in the fair value
expenditure are reviewed for impairment once
of the derivative hedging instrument designated
a year by management.
as a cash flow hedge are recognized in other
2.9 Investment in Subsidiaries and Joint Ventures comprehensive income and presented within
Investments in subsidiaries and joint ventures equity in the cash flow hedging reserve to the
are measured at cost. Diminution in value, other extent that the hedge is effective. To the extent
than temporary, is provided for. that the hedge is ineffective, changes in fair
2.10 Financial Instruments (Financial Assets and value are recognized in the statement of profit
Financial Liabilities): and loss. If the hedging instrument no longer
In case of Holding Co. meets the criteria for hedge accounting, expires
All financial instruments are recognized initially or is sold, terminated or exercised, then hedge
at fair value. The classification of financial accounting is discontinued prospectively. The
instruments depends on the objective of the cumulative gain or loss previously recognized
business model for which it is held. For the in the cash flow hedging reserve is transferred
purpose of subsequent measurement, financial to the statement of profit and loss upon the
instruments of the company are classified into occurrence of the related forecasted transaction.
(a) Non-Derivative Financial Instruments and (b)
In case of Subsidiary
Derivative Financial Instruments.
a) Non Derivative Financial Instruments All financial assets are recognised on trade date
when the purchase of a financial asset is under
(i) Security deposits, cash and cash equivalents, a contract whose term requires delivery of the
employee and other advances, trade financial asset within the time frame established
receivables and eligible current and non-current
by the market concerned. Financial assets are
financial assets are classified as Financial
initially measured at fair value, plus transaction
assets under this clause.
costs, except for those financial assets which
(ii) Loans and borrowings, trade and other are classified as at fair value through profit or
payables including deposits collected from loss (FVTPL) at inception. All recognised
various parties and eligible current and non- financial assets are subsequently measured in
current financial liabilities are classified as their entirety at either amortised cost or fair
financial liabilities under this clause. value.
(iii) Financial instruments are subsequently carried at a) Classification of Financial Assets
amortized cost wherever applicable using effective
Financial assets are classified as ‘equity
interest method (EIR) less impairment loss.
instrument’ if it is a non-derivative and meets
(iv) Transaction costs that are attributable to the the definition of ‘equity’ for the issuer (under
financial instruments recognized at amortized Ind AS 32 Financial Instruments: Presentation).
cost are included in the fair value of such All other non-derivative financial assets are ‘debt
instruments. instruments’.

164
 Financial assets at amortised cost and the A financial asset is held for trading if:
effective interest method. • it has been acquired principally for the purpose
Debt instruments are measured at amortised of selling it in the near term; or
cost if both of the following conditions are met: • on initial recognition it is part of a portfolio of
• the asset is held within a business model whose identified financial instruments that the Group
objective is to hold assets in order to collect manages together and has evidence of a recent
contractual cash flows; and actual pattern of short-term profit-taking; or
• the contractual terms of the instrument give rise • it is a derivative that is not designated and
on specified dates to cash flows that are solely effective as a hedging instrument or a financial
payments of principal and interest on the guarantee.
principal amount outstanding. Investments in equity instruments at FVTOCI
Debt instruments meeting these criteria are are initially measured at fair value plus
measured initially at fair value plus transaction transaction costs. Subsequently, they are
costs. They are subsequently measured at measured at fair value with gains and losses
amortised cost using the effective interest arising from changes in fair value recognised
method less any impairment, with interest in other comprehensive income and
recognised on an effective yield basis in accumulated in the investments revaluation
investment income. reserve. Where the asset is disposed of, the
cumulative gain or loss previously accumulated
Debt instruments are measured at FVTOCI if
in the investments revaluation reserve is directly
both of the following conditions are met:
reclassified to retained earnings.
• the asset is held within a business model whose
For equity instruments measured at fair value
objective is to hold assets in order to collect
through other comprehensive income no
contractual cash flows and selling assets; and
impairments are recognised in the statement
• the contractual terms of the instrument give rise of profit and loss.
on specified dates to cash flows that are solely
Dividends on these investments in equity
payments of principal and interest on the
instruments are recognised in the statement of
principal amount outstanding.
profit and loss in investment income when the
Debt instruments meeting these criteria are Group’s right to receive the dividends is
measured initially at fair value plus transaction established, it is probable that the economic
costs. They are subsequently measured at fair benefits associated with the dividend will flow
value with any gains or losses arising on to the entity; and the amount of the dividend
remeasurement recognised in other can be measured reliably.
comprehensive income, except for impairment
Other Financial Assets (Contract Assets)
gains or losses and foreign exchange gains or
losses. Interest calculated using the effective Accounts Receivables is the right to
interest method is recognised in the statement consideration in exchange for goods or services,
of profit and loss in investment income. When transferred to the Customer. If the Company
the debt instrument is derecognised the performs by transferring the goods or services
cumulative gain or loss previously recognised to a Customer before the Customer pays
in other comprehensive income is reclassified consideration or payment is due, Accounts
to the statement of profit and loss account as a Receivables (in the nature of Contract Asset) is
reclassification adjustment. recognised for the Earned Consideration that
is conditional.
At initial recognition, an irrevocable election is
made (on an instrument-by-instrument basis) Financial Assets at FVTPL
to designate investments in equity instruments Financial assets that do not meet the criteria of
other than held for trading purpose at FVTOCI. classifying as amortised cost or fair value

165
through other comprehensive income described the statement of profit and loss and does not
above, or that meet the criteria but the entity reduce the carrying amount of the financial asset
has chosen to designate as at FVTPL at initial in the balance sheet.
recognition, are measured at FVTPL. Expected credit losses of a financial instrument
Investments in equity instruments are classified is measured in a way that reflects
as at FVTPL, unless the Group designates an • an unbiased and probability-weighted amount
investment that is not held for trading at FVTOCI
that is determined by evaluating a range of
at initial recognition.
possible outcomes;
Financial assets classified at FVTPL are initially
• the time value of money; and
measured at fair value excluding transaction
costs. • Reasonable and supportable information that
is available without undue cost or effort at the
Financial assets at FVTPL are subsequently
reporting date about past events, current
measured at fair value, with any gains or losses
conditions and forecasts of future economic
arising on remeasurement recognised in the
conditions.
statement of profit and loss. The net gain or
loss recognised in the statement of profit and At each reporting date, the Group assess
loss is included in the ‘other gains and losses’ whether the credit risk on a financial instrument
line item. has increased significantly since initial
recognition.
Interest income on debt instruments at FVTPL
is included in the net gain or loss described When making the assessment, the Group
above. compares the risk of a default occurring on the
Dividend income on investments in equity financial instrument as at the reporting date with
instruments at FVTPL is recognised in the the risk of a default occurring on the financial
statement of profit and loss in investment instrument as at the date of initial recognition
income when the Group’s right to receive the and consider reasonable and supportable
dividends is established, it is probable that the information, that is available without undue cost
economic benefits associated with the dividend or effort, that is indicative of significant increases
will flow to the entity; and the amount of the in credit risk since initial recognition.
dividend can be measured reliably. If, at the reporting date, the credit risk on a
Trade receivables, loans and other receivables financial instrument has not increased
are classified as subsequently measured at significantly since initial recognition, the Group
amortised cost. Trade and other receivables measures the loss allowance for that financial
which does not contain any significant financing instrument at an amount equal to 12-month
component are stated at their transaction value expected credit losses. If, the credit risk on that
as reduced by impairment losses, if any. financial instrument has increased significantly
since initial recognition, the Group measures the
Loans and other receivables are subsequently
loss allowance for a financial instrument at an
measured at amortized cost using the effective
amount equal to the lifetime expected credit
interest method, less any impairment. Interest
losses.
income is recognised by applying the effective
interest rate (EIR) method. The amount of expected credit losses (or
reversal) that is required to adjust the loss
Impairment of Financial Assets
allowance at the reporting date is recognised
On initial recognition of the financial assets, a as an impairment gain or loss in the statement
loss allowance for expected credit loss is of profit and loss.
recognised for debt instruments at amortised
cost and FVTOCI. For debt instruments that are Derecognition of Financial Assets
measured at FVTOCI, the loss allowance is The Group derecognizes a financial asset on
recognised in other comprehensive income in trade date only when the contractual rights to

166
 the cash flows from the asset expire, or when it Equity instruments issued by the Group are
transfers the financial asset and substantially recognised at the proceeds received, net of
all the risks and rewards of ownership of the direct issue costs.
asset to another entity. If the Group neither Financial Liabilities
transfers nor retains substantially all the risks
and rewards of ownership and continues to Financial liabilities are classified as either
control the transferred asset, the Group financial liabilities ‘at FVTPL’ or ‘other financial
recognises its retained interest in the asset and liabilities’.
an associated liability for amounts it may have Financial Liabilities at FVTPL
to pay. If the Group retains substantially all the Financial liabilities are classified as at FVTPL
risks and rewards of ownership of a transferred when the financial liability is either held for trading
financial asset, continues to recognise the or it is designated as at FVTPL.
financial asset and also recognises a
A Financial Liability is classified as held for
collateralised borrowing for the proceeds
trading if:
received.
• it has been acquired or incurred principally for the
On derecognition, of a financial asset other than
purpose of repurchasing it in the near term; or
in its entirety (e.g. when the Group retains an
option to repurchase part of a transferred asset), • on initial recognition it is part of a portfolio of
the Group allocates the previous carrying identified financial instruments that the Group
amount of the financial asset between the part manages together and for which there is
it continues to recognise under continuing evidence of a recent actual pattern of short-term
involvement, and the part it no longer recognises profit-taking; or
on the basis of the relative fair values of those • It is a derivative that is not designated and
parts on the date of the transfer. The difference effective as a hedging instrument.
between the carrying amount allocated to the
A financial liability other than a financial liability
part that is no longer recognised and the sum
held for trading may also be designated as at
of the consideration received for the part no
FVTPL upon initial recognition if:
longer recognised and any cumulative gain or
loss allocated to it that had been recognised in • such designation eliminates or significantly
other comprehensive income is recognised in reduces a measurement or recognition
the statement of profit and loss. A cumulative inconsistency that would otherwise arise; or
gain or loss that had been recognised in other • the financial liability forms part of a group of
comprehensive income is allocated between the financial assets or financial liabilities or both,
part that continues to be recognised and the which is managed and its performance is
part that is no longer recognised on the basis evaluated on a fair value basis, in accordance
of the relative fair values of those parts. with the Group's documented risk management
b) Financial Liabilities and Equity Instruments or investment strategy, and information about the
issued by the Group grouping is provided internally on that basis; or
Classification as Debt or Equity • It forms part of a contract containing one or more
embedded derivatives, and Ind AS 109 Financial
Debt and equity instruments are classified as
Instruments permits the entire combined
either financial liabilities or as equity in
contract to be designated as at FVTPL.
accordance with the substance of the
contractual arrangement. Financial liabilities at FVTPL are stated at fair
value, with any gains or losses arising on
Equity Instruments
remeasurement recognised in the statement
An equity instrument is any contract that of profit and loss, except for the amount of
evidences a residual interest in the assets of change in the fair value of the financial liability
an entity after deducting all of its liabilities. that is attributable to changes in the credit risk

167
 of that liability which is recognised in other • Trade Receivables.
comprehensive income. (ii) The Group follows ‘simplified approach’ for
The net gain or loss recognised in the recognition of impairment loss allowance on
statement of profit and loss incorporates any trade receivables which do not contain a
interest paid on the financial liability. significant financing component. The
Other Financial Liabilities application of simplified approach does not
require the group to track changes in credit
1. Other financial liabilities are initially measured risk. Rather, it recognizes impairment loss
at fair value, net of transaction costs. allowance based on lifetime ECLs at each
2. Other financial liabilities are subsequently reporting date, right from its initial recognition.
measured at amortised cost using the effective 2.11.2 Non-Financial Assets
interest method, with interest expense The Group assesses at each reporting date
recognised on an effective yield basis. whether there is any objective evidence that a
3. The effective interest method is a method of non-financial asset or a group of non-financial
calculating the amortised cost of a financial assets is impaired. If any such indication exists,
liability and of allocating interest expense over the Group estimates the amount of impairment
the relevant period. The effective interest rate loss.
is the rate that exactly discounts estimated 2.12 Stripping Cost:
future cash payments through the expected Stripping cost in the nature of expense incurred
life of the financial liability, or (where for removing overburden and waste materials
appropriate) a shorter period, to the net is accounted for as follows:
carrying amount on initial recognition.
(a) To the extent that the benefit from the stripping
4. Trade and other payables are recognised at activity is realized in the form of inventory
their transaction cost, which is its fair value, produced, the same is accounted for in
and subsequently measured at amortised cost. accordance with the principles of Ind AS 2,
(c) Offsetting Financial Instruments Inventories.
Financial assets and liabilities are offset and (b) To the extent the benefit is improved access
the net amount reported in the balance sheet to ore, stripping cost shall be recognized as a
when there is a legally enforceable right to non-current asset.
offset the recognised amounts and there is an 2.13 Income Taxes:
intention to settle on a net basis or realise the Income tax expense comprises of current and
asset and settle the liability simultaneously. deferred tax. Income tax expense is
The legally enforceable right must not be recognized in the statement of profit and loss
contingent on future events and must be except to the extent it relates to items directly
enforceable in the normal course of business recognized in equity or in other comprehensive
and in the event of default, insolvency or income.
bankruptcy of the Group or the counterparty.
2.14 Revenue Recognition
2.11 Impairment
2.14.1 Revenue is recognized at fair value when
2.11.1 Financial Assets significant risks and rewards of ownership and
(i) The Group applies Expected Credit Loss (ECL) effective control on goods have been
model for measurement and recognition of transferred to the buyer. Sales revenue is
impairment loss on the following financial measured net of returns, discounts and
assets and credit risk exposure: rebates.
• Financial assets that are debt instruments, and 2.14.2 Claims against outside agencies are
are measured at amortized cost wherever accounted for on certainty of realization.
applicable e.g., loans, debt securities, deposits,
and bank balance.
168
2.14.3 Revenue arising from the rendering of service 2.18 Investment Property
is recognized to the extent the service is Investment properties are properties held to
provided and could be estimated reliably. earn rentals and/ or for capital appreciation
2.14.4 Interest income is recognized based on the (including property under construction for such
effective interest method. purposes). Investment properties are
2.14.5 Dividends are recognized at the time the right measured initially at cost, including transaction
to receive is established. costs. Subsequent to initial recognition,
investment properties are measured in
2.14.6 Export Incentives are recognized on certainty accordance with Ind AS 16’s requirements for
of realization. cost model, other than those that meet the
2.15 Employee Benefits criteria to be classified as held for sale (or are
Provisions/Liabilities towards gratuity, post- included in a disposal group that is classified
retirement medical benefits, retirement as held for sale) in accordance with Ind AS 105.
settlement benefits, Employees’ Family Benefit An investment property is derecognized upon
Scheme, encashment of leave and long term disposal or when the investment property is
service award are made based on the actuarial permanently withdrawn from use and no future
valuation at the reporting date. economic benefits are expected from the
(i) Consequential actuarial gain\loss are charged disposal. Any gain or loss arising on
to Statement of Profit and Loss; derecognition of the property (calculated as the
(ii) Actuarial gain/loss relating to Post Retirement difference between the net disposal proceeds
Benefits (Defined Benefit Plan) are recognized and the carrying amount of the asset) is
in other comprehensive income. included in profit or loss in the period in which
the property is derecognized.
2.16 Foreign Currency Transactions
2.19 Government Grants
2.16.1 Foreign currency monetary items are disclosed
at the closing rate of the reporting period at 2.19.1 Government grants are recognized when
reporting date. Exchange differences arising there is reasonable assurance that the Group
on settlement/conversion of foreign currency will comply with the conditions attaching to
monetary items are recognized in the them and that the grants will be received.
statement of profit and loss account. 2.19.2 Government grants are recognized in the
2.16.2 Non-monetary assets and liabilities are Statement of Profit and Loss on a systematic
recognized at the exchange rate prevailing at basis over the periods in which the Group
the date of transaction. recognizes as expenses the related costs for
which the grants are intended to compensate.
2.17 Borrowing Costs
2.19.3 A Government grant that becomes receivable
2.17.1 Borrowing costs incurred for obtaining
as compensation for expenses or losses already
qualifying assets are capitalized to the
incurred or for the purpose of giving immediate
respective assets wherever the costs are
financial support to the entity with no future
directly attributable to such assets and in other
related costs, shall be recognized in profit or loss
cases by applying weighted average cost of
of the period in which it becomes receivable.
borrowings to the expenditure on such assets.
2.19.4 Where the Group receives grants in the form
2.17.2 Transaction costs in respect of long-term
of non-monetary assets such as land or other
borrowings are amortized over the tenor of
resources, both the asset and the grant are
respective loans using effective interest
recorded at a value assessed by the company
method.
based on the evidence available as on the date
2.17.3 Other borrowing costs are treated as expense of initial recognition and released to the
for the year. statement of Profit and Loss over the expected
useful life of asset.

169
2.19.5 Where the Grant relates to an asset value, it is finance lease income and capital repayment
recognized as deferred income and amortized based on the implicit rate of return. Contingent
over the expected useful life of the asset. rents are recognised as revenue in the period
2.20 Lease in which they are earned.

In Case of Holding Co. iii) Finance lease income is allocated to

accounting periods over the lease term so as
2.20.1 The Company as Lessor: to reflect a constant periodic rate of return on
A) Operating Lease:- the net investment outstanding in respect of
i) A contract that is identified as a Lease is lease.
classified as ‘Operating Lease’ when 2.20.2 The Company as Lessee:
substantially all the risks and rewards A) Right of use Asset (ROU):-
incidental to ownership of an underlying asset
is not transferred from the Company to Lessee. i) The Right of Use asset (ROU) under the lease
is recognised on the commencement date and
ii) Income from operating leases is recognized is measured at cost less any accumulated
in the statement of profit and loss on a straight- depreciation and accumulated impairment loss
line basis over the term of the relevant lease and adjusted for any measurement of the lease
unless another systematic basis is more liability to reflect any reassessment or lease
representative of the time pattern in which modification.
economic benefits from the leased asset is
diminished. ii) The cost of ROU shall comprise:

iii) Initial direct costs incurred in negotiating and a) The amount of the initial measurement of the
arranging an operating lease are added to the lease liability;
carrying value of the leased asset and b) Any lease payments made at or before the
recognized on a straight-line basis over the commencement date, less any lease incentives
lease term. received;
iv) Costs including depreciation incurred in c) Any initial direct cost incurred by the lessee
earning the lease income is recognized as and
expense. d) The estimated cost to be incurred in dismantling
v) Impairment if any of underlying asset subject and removing the underlying asset, restoring
to operating lease is recognized as impairment the site on which it is located or restoring the
loss. underlying asset to the condition required by
vi) The underlying assets subject to operating the terms of the lease unless those costs are
lease are presented in the Balance Sheet incurred to produce inventory.
according to the nature of the underlying asset iii) The ROU is being depreciated on a straight line
and depreciation thereon is calculated basis from the commencement date to the end
consistent with the company’s normal of the useful life of the underlying asset when the
depreciation policy for similar assets. ownership of the underlying asset is transferred
B) Finance Lease:- to the company by the end of the lease term or
when the company is reasonably certain to
i) A contract that is identified as a Lease is exercise the purchase option envisaged in the
classified as ‘Finance Lease’ when lease. Otherwise, ROU is depreciated on a straight
substantially all the risks and rewards line basis from the commencement date to the
incidental to ownership of an underlying asset earlier of the end of the useful life of the ROU or
is transferred from the company to Lessee. the end of the lease term.
ii) Amounts due from the lessees under finance
B) Lease Liability:-
lease are recorded as ‘Receivables’. Lease
rental receipts are apportioned between the i) Lease liability is measured at the
commencement date by discounting the lease
170
 payments that are not paid at that date at the parties to a contract, i.e. the lessee and the
interest rate implicit in the lease if, that rate is lessor. Ind AS 116 substantially carries forward
determinable otherwise the company’s the lessor accounting requirements in Ind AS 17.
incremental borrowing rate is used. The effective date for adoption of Ind AS 116
ii) After the commencement date, the lease is annual period beginning on or after April 1,
liability is measured by: 2019. The standard permits two possible
a) Increasing the carrying amount to reflect methods of transition:
interest on the lease liability; • Full retrospective – Retrospectively to each
b) Reducing the carrying amount to reflect the prior period presented applying Ind AS 8
lease payments made; and Accounting Policies, Changes in Accounting
Estimates and Errors.
iii) Lease liability is re-measured when there is a
change in future lease payments arising from • Modified retrospective – Retrospectively, with
a change in an index or rate, if there is a change the cumulative effect of initially applying the
in the company’s estimate of the amount Standard recognized at the date of initial
expected to be payable under a residual value application.
guarantee, or if the company changes its Under modified retrospective approach, the
assessment of whether it will exercise a lessee records the lease liability as the present
purchase, extension or termination option. value of the remaining lease payments, discounted
When the lease liability is re-measured, a at the incremental borrowing rate and the right of
corresponding adjustment is made to the use asset either as:
carrying amount of the Right-of-Use (ROU), • Its carrying amount as if the standard had been
or is recorded in profit or loss if the carrying applied since the commencement of the date,
amount of the right-of-use asset has been but discounted at lessee’s incremental borrowing
reduced to zero. rate at the date of initial application or
In Case of Subsidiary • An amount equal to the lease liability, adjusted
2.20.3 On March 30, 2019, Ministry of Corporate by the amount of any prepaid or accrued lease
Affairs has notified Ind AS 116, Leases. Ind payments related to that lease recognized
AS 116 has become effective w.e.f. 1 April under Ind AS 17 immediately before the date
2019, which eliminates the classification of of initial application.
leases as either finance or operating lease as Certain practical expedients are available
required by Ind AS 17, Leases. Ind AS 116 under both the methods.
introduces a single lessee accounting model
On completion of evaluation of the effect of
and requires a lessee to recognize assets and
adoption of Ind AS 116, the group of companies
liabilities for all leases with a term of more than
is proposing to us the ‘Modified Retrospective
12 months, unless the underlying asset is of
Approach’ for transitioning to Ind AS 116, and
low value. The Group of companies would be
take the cumulative adjustment to retained
recognising a right-of-use asset and a
earnings, on the date of initial application (April
corresponding lease liability in its balance
1, 2019). Accordingly, comparatives for the
sheet. Apart from the balance sheet, statement
year ending or ended March 31, 2019 will not
of profit & loss of a company would also
be retrospectively adjusted. The Group has
undergo a change as operating lease
elected certain available practical expedients
expenses will be bifurcated into depreciation
on transition.
on the right-of-use asset and interest expense
on the lease liability. The standard sets out the Applicability of Ind AS 116:
principles for the recognition, measurement, This standard applies to all leases, including
presentation and disclosure of leases for both leases of right-of-use assets in a sublease,

171
 except for: In the application of the Group's accounting
(a) Leases to explore for or use minerals, oil, policies, which are described in note 2, the
management of the Group is required to make
natural gas, and similar non-regenerative
judgements, estimates and assumptions about
resources;
the carrying amounts of assets and liabilities
(b) Leases of biological assets within the scope that are not readily apparent from other
of Ind AS 41, Agriculture, held by a lessee. sources. The estimates and associated
(c) Service concession arrangements within the assumptions are based on historical
scope of Appendix D, Service Concession experience and other factors that are
Arrangements, of Ind AS 115, Revenue from considered to be relevant. Actual results may
Contracts with Customer. differ from these estimates.
The estimates and underlying assumptions are
(d) Licenses of intellectual property granted by a
reviewed on an ongoing basis. Revisions to
lessor within the scope of Ind AS 115, Revenue
accounting estimates are recognised in the
from Contracts with Customers.
period in which the estimate is revised if the
Rights held by a lessee under licensing revision affects only that period or in the period
agreements within the scope of Ind AS 38, of the revision and future periods if the revision
Intangible Assets, for such items as motion affects both current and future periods.
picture films, video recordings, plays, 2.21.1 Critical judgements in applying accounting
manuscripts, patents and copyrights. policies:
Note: A lessee may, but is not required to, apply The following are the critical judgements, apart
this Standard to leases of intangible assets from those involving estimations (see note
other than those described in above point (v) 2.21.2 below), that the management have
Identifying a lease: made in the process of applying the Group's
Below conditions need to be fulfilled if the accounting policies and that have the most
contract is to be classified as lease: significant effect on the amounts recognised
in the consolidated financial statements:
Identified asset.
(i) Financial Assets at amortised cost:-
Lessee obtains substantially all of the economic
The management has reviewed the Group’s
benefits.
financial assets at amortised cost in the light
Lessee directs the use. of its business model and has confirmed the
Thus from the above classification, the Group’s positive intention and ability to hold
standard under IND AS 116 cannot be made these financial assets to collect contractual cash
applicable for the OMDC & BSLC as the main flows. Details of these assets are set out in Note 39.
purpose of the business is exploring minerals (ii) Provision for Restoration and Rehabilitation
or similar non-regenerative resources. of mining sites:-
Intangible Assets do not cover items such as Provisions are recognised for costs associated
motion picture films, video recordings, plays, with restoration and rehabilitation of mining
manuscripts, patents and copyrights and there sites as soon as the obligation to incur such
is no such contract where asset has been costs arises. Such restoration and closure
identified against economic benefits. costs are typical of extractive industries and
they are normally incurred at the end of the
Hence IND AS 116 could not be made
life of the mines. The costs are estimated on
applicable in FY 2019-20. the basis of mine closure plans and the
2.21 In case of Subsidiary estimated discounted costs of dismantling and
Critical Accounting Judgements and key removing these facilities and the costs of
sources of estimation uncertainty: restoration are capitalised when incurred

172
 reflecting the group’s obligations at that time. • The carrying value of exploration and evaluation
A corresponding provision is created on the assets, mine properties, property and plant and
liability side. The capitalised asset is equipment may be affected due to changes in
recognised in the Statement of Profit or Loss estimated future cash flows;
over the life of the asset through depreciation • Depreciation and amortisation charges in profit
over the life of the operation and the provision or loss may change where such charges are
is increased in each period through unwinding determined using the units of production
the discount on the provision. Management method, or where the useful life of the related
estimates are based on local legislation and/ assets change;
or other agreements. The actual costs and • Capitalised stripping costs recognised in the
cash outflows may differ from estimates Balance Sheet or charged to Statement of Profit
because of changes in laws and regulations, or Loss may change due to changes in stripping
changes in prices, analysis of site conditions ratios;
and changes in restoration technology.
• Provisions for rehabilitation and environmental
(iii) Ore reserve and mineral resource estimates provisions may change - where changes to the
Ore reserves are estimates of the ore that can reserve estimates affect expectations about
be economically and legally extracted from the when such activities will occur and the
group’s mining properties. The group estimates associated cost of these activities; and
its ore reserves and mineral resources based • The recognition and carrying value of deferred
on information compiled by appropriately income tax assets may change due to changes
qualified persons relating to the geological and in the judgments regarding the existence of such
technical data on the size, depth, shape and assets and in estimates of the likely recovery of
grade of the ore body and suitable production such assets.
techniques and recovery rates. Such an analysis
(iv) Deferred Stripping Expenditure
requires complex geological judgements to
interpret the data. The estimation of recoverable The group defers stripping (waste removal)
reserves is based upon factors such as costs incurred during the production phase of
estimates of foreign exchange rates, commodity its operations. This calculation requires the use
prices, future capital requirements, and of judgements and estimates relating to the
production costs along with geological expected tons of waste to be removed over the
assumptions and judgements made in life of the mining area and the expected
estimating the size and grade of the ore body. economically recoverable reserves to be
extracted as a result. This information is used
The group estimates and reports ore reserves
to calculate the average life of mine strip
under the principles contained within the
ratio(expected waste to expected mineral
guidelines issued by the Indian Bureau of Mines
reserves ratio). Changes in a mine’s life and
(IBM) – including:
design will usually result in changes to the
• Future production estimates – which include average life of mine strip ratio. These changes
proved and probable reserves, resource are accounted for prospectively.
estimates and committed expansions;
(v) Production start date
As the economic assumptions used may
The group assesses the stage of each mine
change and as additional geological information
under construction to determine when a mine
is produced during the operation of a mine,
moves into the production stage. This being
estimates of reserves may change. Such
when the mine is substantially complete and
changes may impact the group’s reported
ready for its intended use. The criteria used to
financial position and results which include:
assess the start date are determined based on

173
 the unique nature of each mine construction (vii) Mine rehabilitation provision
project,such as the complexity of the project and The group assesses its mine rehabilitation
its location. The group considers various relevant provision at each reporting date. Significant
criteria to assess when the production phase is estimates and assumptions are made in
considered to commence. At this point, all determining the provision for mine
related amounts are reclassified from“Mines rehabilitation as there are numerous factors
under construction” to “Producing mines” and/ that will affect the ultimate amount payable.
or “Property, plant and equipment”. Some of the These factors include estimates of the extent
criteria used to identify the production start date and costs of rehabilitation activities,
will include, but are not limited to: technological changes, regulatory changes,
• Level of capital expenditure incurred compared cost increases as compared to the inflation
to the original construction cost estimates; rates and changes in discount rates. These
• Completion of a reasonable period of testing of uncertainties may result in future actual
the mine plant and equipment; expenditure differing from the amounts
currently provided. The provision at reporting
• Ability to produce material in saleable form
date represents management’s best estimate
(within specifications); and
of the present value of the future rehabilitation
• Ability to sustain ongoing production of material costs required.
When a mine development/construction project
2.21.2 Key sources of estimation uncertainty:
moves into the production stage, the
The following are the key assumptions
capitalisation of certain mine development/
concerning the future, and other key sources
construction costs ceases and costs are either
of estimation uncertainty at the end of the
regarded as forming part of the cost of inventory
reporting period that may have a significant
or expensed, except for costs that qualify for
risk of causing a material adjustment to the
capitalisation relating to mining asset additions
carrying amounts of assets and liabilities within
or improvements, underground mine
the next financial year:
development or mineable reserve development.
It is also at this point that depreciation/ (i) Useful lives of property, plant and
amortisation commences. equipment:

(vi) Units of production depreciation As described in note 2.4 above, the Group
reviews the estimated useful lives of property,
Estimated economically recoverable reserves
plant and equipment at the end of each
are used in determining the depreciation and/
reporting period.
or amortisation of mine specific assets. This
results in a depreciation/amortisation charge (ii) Fair value measurements and valuation
proportional to the depletion of the anticipated processes:
remaining life of mine production. Each item’s Some of the Group’s assets and liabilities are
life, which is assessed annually, has regard to measured at fair value for financial reporting
both its physical life limitations and present purposes.
assessments of economically recoverable In estimating the fair value of an asset or a
reserves of the mine property at which the asset liability, the Group uses market-observable
is located. These calculations require the use data to the extent it is available. Where Level
of estimates and assumptions, including the 1 inputs are not available, the Group engages
amount of recoverable reserves and estimates third party qualified valuers to perform the
of future capital expenditure. Numerous units valuation.
of production (UOP) depreciation
methodologies are available to choose from.

174
 3 Property, Plant and Equipment

175
A. Reconciliation of carrying amount ( in Crores)

Railway Roads, Furniture Water Miscellan-

Freehold Leasehold Bridges Plant and Electrical supply and
Particulars lines and Buildings and eous Total
Land Land and Equipments Vehicles Installations Sewerage
sidings Fixtures Assets
Culverts Systems

Cost or deemed cost

(Gross Carrying Amount)

Balance at 1st April 2019 60.04 8.30 364.07 260.44 1818.14 25369.45 30.21 35.72 953.17 1101.56 389.27 30390.36

Gross Block
Additions and Adjustments 23.56 54.17 21.98 10.66 38.11 756.34 0.53 0.31 33.66 504.39 13.86 1457.56

Sales and Adjustments - - - - - (8.94) (0.17) - (0.04) (0.74) (9.89)

Balance at 31st March 2020 83.60 62.47 386.05 271.10 1856.25 26116.84 30.57 36.03 986.79 1605.95 402.39 31838.03

Accumulated Depreciation

Balance at 1st April 2019 5.65 184.00 175.69 800.97 8875.06 24.02 22.16 617.26 415.24 239.98 11360.03

Depreciation for the year 2.36 17.65 13.37 45.15 877.65 1.11 2.80 62.81 53.81 35.64 1112.36

Sales and Adjustments - - - - - (6.00) (0.13) - (0.03) - (0.68) (6.84)

Accumulated Depreciation
Balance at 31st March 2020 8.01 201.66 189.06 846.12 9746.71 25.00 24.96 680.04 469.05 274.94 12465.55

Carrying Amounts (net)

Provision for Impairment 0.15

Net Block
At 31st March 2019 60.04 2.66 180.07 84.75 1017.17 16494.39 6.19 13.56 335.91 686.32 149.29 19030.18

At 31st March 2020 83.60 54.46 184.39 82.04 1010.13 16370.14 5.57 11.07 306.75 1136.90 127.45 19372.33

*In case of Holding Co., all eligible major spares, standby equipment and service equipment whose unit value exceeding 10 lakhs (threshold value) are
capitalized as PPE on acceptance. Spares not meeting the threshold value are charged to revenue on their usage.
B. Details of Right of use (ROU) Asset included in Property, Plant & Equipment
( in crores)
Gross Block Accumulated Depreciation Net Block

Balance at 31st Mar 2020

Balance at 1st April 2019
Balance at 1st April 2019

Balance at 31st Mar 2020

Sales and Adjustments

Sales andAdjustments

Depreciation for the

At 31st Mar 2020

Additions and
Adjustments

period
Particulars

Leasehold Land 1.65 54.17 - 55.82 0.86 2.29 - 3.15 52.67

Building 1.31 0.03 - 1.34 0.57 0.01 - 0.58 0.76

Note : The details of leases are provided at Note 38

C. Freehold Land
In case of Holding Co:
- Land includes 363.28 acres (31st March 2019 363.28 acres) allotted to various agencies on lease basis.

- Land at a cost of 39.99 crore (31st March 2019 : 39.99 crore) is being held in the name of President of
India. The Holding Company is holding Power of Attorney issued by Government of India for utilisation of
the land acquired for the project and related purposes incidental thereto.

- Land includes 14.5 acres whose title is under dispute.

In case of Subsidiary OMDC:

- Unauthorised occupation of some of the quarters has been made by contractor's employees in mines.
Company is considering taking necessary action including legal course wherever necessary to take the
ownership of the quarters.

D. Sale Deed in respect of the following land has not yet been executed
( in crores)

Particulars 31st March 2020 31st March 2019

Stockyard at Chennai 2.37 2.37

Office building at New Delhi 24.26 25.53
Office buildings at Ahmedabad 0.18 0.18
Residential buildings at Kolkata 0.95 0.95
Site for Liaison Office at Hyderabad 1.30 1.30
29.06 30.33
- In case of Subsidiary OMDC: The registration of the Building of the company at H.O. is yet to be completed. The
provision of 0.56 Crore has been made for registration of building. However, if further provision is required to be
made, at the time of registration, the same will be made in future.

176
E. In case of EIL both the parties the Calcutta High Court held that
(i) Land the sub-lessees were the 'owners' of the property
and re-entry permission granted by the Coal Board
The Lawrence Investments and Property Co. Ltd. should be quashed. The said company preferred
had a landed property of 76.77 Acres of land at an appeal but the same was decided against
Chackasi, Bauria, Howrah, housing its Jute Mills them in 1970 and the matter was forwarded by
(demolished and disposed of in 1980). The the Court to the Coal Board for fresh decision.
Government of West Bengal had acquired land No development has taken place since then.
measuring an approximate area of 27.58 Acres
on 25.08.76. Company’s appeal for award of Amount of 2.56 lakhs was also received from
compensation towards such acquisition has been Business Development Corporation Ltd. in the
upheld by District Judge, Howrah on 07.03.83. year 1946 on account of sub-lease of the Moujas
No effect of such acquisition has been given in 'Hassadih', 'Jote Khan Khan', 'Nabagram' &
the books of account. 'Sonepore', pending finalization of the sale deed
and the final outcome of the re-entry case, this
The balance portion of the land however, is under amount has been kept under Current Liabilities'.
unauthorised occupation of local inhabitants 'Development' represents' the expenditure
which includes construction of permanent nature, incurred towards the development of a property,
as well. Necessary correspondences have already the possession of which is under dispute.
been made with the concerned authorities
together with lodgment of complaint with the (iii) Buildings
concerned police station for eviction of The Building belonging to the Sendra Investments
unauthorised occupants. Co. have been taken over in January, 1973, by
(ii) Block and Development Sonepore Property the Coal Mines Authority in terms of Coal Mines
The Assets described in the Schedule Note No. 6 (Nationalisation) Act, 1973. A claim for
to the Accounts under the heading 'Block and compensation for take-over has been made. No
Development' known as Sonepore property adjustment has been made pending
belonging to the Ondal Investments Co. Ltd. were determination of the claim.
the subject matter of a sub-lease between them (iv) Railway Siding
and Sonepore Coalfields Ltd. which the company The Railway Siding known as 'Chora Mangalpore
took possession of the property in 1946. The sub- Siding' belonging to Ondal Investments Co. Ltd.
lease agreement could not be completed due to stretches over approximately three miles taking
implications involved under the Mineral off from Sonachora Station lying between Ondal
Concession Rules in 1960. The said company and Garandih. Following the nationalization of
served re-entry notice on the sub-lessees and on Non-Coking Coal Collieries in 1973. all the
obtaining permission from the Coal Board took collieries around the siding have been taken over
possession of the property and started by the Coal Mines Authority though the ownership
prospecting operation for which purpose the sum of the Siding rests with the said company.
of 0.72 lakhs was spent. The Company's re- (v) Depreciation
entry notice was challenged by the Sonepore
Depreciation on Block & Development- Ondal
Coalfields Ltd. and in January, 1966 after hearing
Property, Building - Sendra Property have neither
F. Depreciation methods and useful lives been ascertained nor provided for.
Depreciation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item
of property, plant and equipment. The estimated useful lives for the current and comparative periods are as follows:
Particulars 31st March 2020 31st March 2019

Railway lines and sidings 10-15 years 10-15 years

Roads, bridges and culverts 3-30 years 3-30 years
Buildings* 3-60 years 5-60 years
Plant and equipment 2-50 years 2-40 years
Fixtures and fittings 10 years 10 years
Vehicles 6-8 years 6-8 years
Electrical installations 5-25 years 10 years
Water supply and sewerage systems 15-30 years 5-15 years
Miscellaneous assets 3-15 years 3-15 years
* Buildings-ROU are amortised over the period of lease. (Refer Note No. 38)
177
 ( in Crores)
Particulars 31st March 2020 31st March 2019

Allocation of depreciation :
Expenditure During Construction 3.51 5.31
Current year (Charged to P & L) 1,108.85 1,050.86
1,112.36 1,056.17
Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if
appropriate.

G. Capital Work-In-Progress ( in Crores)

Particulars 31st March 2020 31st March 2019

Capital work-in-progress*(including material issued to contractors) 3,760.56 3,875.38

Less: Provision for dropped SLTM project & others
SLTM 19.21 19.21
Axle Plant 0.73 0.63
Dry Fogging Dust Suppresser 0.59 0.59
Total Provision for dropped projects 20.53 20.43
Less: Impairment loss on capital work-in-
progress recognised in profit and loss 0.75 0.75
3,739.28 3,854.20
Expenditure during construction awaiting allocation (Note H) - -
Total 3,739.28 3,854.20
* This includes 82.19 Crores being the capital inventory lying at different construction zones/ with contractors on the reporting date.
(In case of Holding Co.)

H. Expenditure during construction awaiting allocation ( in Crores)

Particulars 31st March 2020 31st March 2019
Opening Balance (A) - 296.36
Expenditure during the year:
Employee remuneration and benefits - -8.85
Other expenses and provisions - -
Interest expense - -
Depreciation - 5.31
Less :
Other revenue - -
Net Expenditure during the year (B) - (3.54)
Total (A+B) - 292.82
Less: Amount allocated to PPE - 292.82
Total - -
I. In case of Holding Co.
The expenditure on PPE & CWIP excludes GST of 73.01 Crores paid in respect of capex payments made
during the year for which company has availed Input Tax Credit.

178
4 Investment Property
Reconciliation of carrying amount ( in Crores)
Particulars Investment property
Cost or deemed cost (gross carrying amount)
Balance at 1st April 2019 0.08
Additions and adjustments -
st
Balance at 31 March 2020 0.08
Accumulated depreciation
Balance at 1st April 2019 0.00
Depreciation for the year 0.00
Balance at 31st March 2020 0.01
Carrying amounts
At 31st March 2019 0.07
At 31st March 2020 0.07
Investment property held by Subsidiary,The Bisra Stone Lime Company Limited have the following :-
- Under Indian GAAP this investment property had been classified Under the building block of tangible asset.
- The building which is in the name of the BSLC, is let out to one of the subsidiary in lieu of rent. BSLC is not
using the building for its business purpose and neither intends to sell it in near future.
- The investment property represents the carrying amount as per previous Indian GAAP of the guest house
given on rent to the Orissa Minerals Development Company Limited, a related party, there has not been
any fair valuation of such investment property carried out during the year by any independent valuation
expert. Therefore, the disclosure relating to fair value of investment property is not required.
5 Intangible Assets
A. Reconciliation of carrying amount ( in Crores)
Other Intangible Assets Intangible
Particulars assets under Total
Computer Mining Total development
Goodwill
software (i) rights (ii) [(i)+(ii)] (iii)
[(i)+(ii)+(iii)]
Cost or deemed cost
(gross carrying amount)
Gross Block

Balance at 1st April 2019 149.49 68.37 101.23 169.61 - 169.61

Additions and Adjustments - - - - - -
Sales and Adjustments - (0.72) - (0.72) - (0.72)
Balance at 31st March 2020 149.49 67.65 101.23 168.89 - 168.89
Accumulated Amortisation
Depreciation
Accumulated

Balance at 1st April 2019 - 66.03 87.03 153.07 - 153.07

Amortisation for the year - 1.21 1.50 2.71 - 2.71
Sales and Adjustments - (0.72) - (0.72) - (0.72)
Balance at 31st March 2020 - 66.52 88.53 155.05 - 155.05
Carrying Amounts (Net)
Net Block

At 31st March 2019 / 1st April 2019 149.49 2.34 14.20 16.54 - 16.54
At 31st March 2020 149.49 1.13 12.70 13.83 - 13.83
With respect to the carrying amount of intangible asset held by The Bisra Stone Lime Company Limited:-
- Expenditure incurred for obtaining required clearance to operate the mines subsequent to the allotment of their lease is
capitalized as intangible assets.
179
With respect to the carrying amount of intangible asset held by The Orissa Minerals Development Company Limited:-
- Prospecting and development expenses incurred to prepare the mines ready for commercial exploration (i.e. in the
nature of preliminary and preoperative expenses) are capitalized.
- Expenditure incurred for obtaining required clearance to operate the mines subsequent to the allotment of their lease is
capitalized as intangible assets under the heads mining rights on deemed extension basis. Intangible Assets has been
ammortised taking the validity of mining lease upto 30.09.2030 for Bhadrasai Lease, 15.08.2026 for Belkundi Lease and
Bagiaburu Lease 10.10.2021.
B. Amortisation Methods and useful lives
Amortisation is recognized in profit or loss on a straight-line basis over the estimated useful lives of each part of an item
of intangible assets. The estimated useful lives for the current and comparative periods are as follows:

Particulars 31st March 2020 31st March 2019

Computer Software 4 years 4 years

Mining Rights 20 years 20 years

6 Investments ( in Crores)
st st
Particulars 31 March 2020 31 March 2019
A. Non-current investments
Equity shares at cost - others
2,280 (31st March 2020: 2,280; 31st March 2019: 2,280) equity
shares of 1 each in Free Press House Limited* 0.00 0.00
1 (31st March 2020: 1; 31st March 2019: 1) equity shares of
100 each in Anakapalli Rural Elec. Co-operative Society* 0.00 0.00
Total investment in equity instruments at cost (A) 0.00 0.00
B. Other investments
(i) Quoted investments
a) Investments in equity instruments (all fully paid)
H.D.F.C. Bank (March 31, 2020 and March 31, 2019: 1,500 shares of 10 each) 0.27 0.35
I.T.C. Limited (Ordinary Shares of 1 each)
(March 31, 2020 and March 31, 2019 15,000 shares of 10 each) 0.37 0.67
DPSC Ltd (Formally Dishergarh Power Supply Co. Ltd.)
(March 31, 2020 and March 31, 2019: 344,770 shares of 10 each) 0.27 0.46
Steel Authority of India Limited
(March 31, 2020 and March 31, 2019: 1000 shares of 10 each) 0.00 0.01
Reliance Industries Limited
(March 31, 2020 and March 31, 2019: 172 shares of 10 each) 0.03 0.02
Bharat Earth Movers Limited
(March 31, 2020 and March 31, 2019: 200 shares of 10 each) 0.01 0.02
The Associated Cement Company Limited.
(March 31, 2020 and March 31, 2019: 400 shares of 10 each) 0.05 0.07
J S W Limited (formerly, Jindal Vijaynagar Steel)
(March 31, 2020 and March 31, 2019: 30 shares of 10 each) 0.00 0.00
Total - quoted investments in equity instruments (a) 0.99 1.60
b) Investments in mutual funds
Master Share - Unit Trust of India
(March 31, 2020 and March 31, 2019: 2,880 units of 10 each) 0.01 0.01
Capital Growth Unit Scheme 1992 (Master Gain 1992)
(March 31, 2020 and March 31, 2019: 3,000 unit of 10 each) 0.03 0.04
Total - quoted investments in mutual funds (b) 0.04 0.05
180
 ( in Crores)

Particulars 31st March 2020 31st March 2019

(ii) Unquoted investments
a) Investments in equity instruments (all fully paid)
Titagarh Wagon Limited (Formarly Titagarh Industries Limited)**
(March 31, 2020 and March 31, 2019 615 shares of 10 each) 0.17 0.17
Ispat Profiles Limited **
(March 31, 2020 and March 31, 2019: 500 shares of 10 each) 0.00 0.00
The Burrakur Coal Company Limited (In Liquidation) **
(March 31, 2020 and March 31, 2019: 475,300 shares of 10 each) 0.41 0.41
The Kinnison Jute Mills Company Limited **
(March 31, 2020 and March 31, 2019: 25,645 shares of 100 each) 0.27 0.27
Union Jute Company Limited **
(March 31, 2020 and March 31, 2019: 18,028 shares of 100 each) 0.25 0.25
Kumardhubi Fireclay & Silica Works Limited **
(March 31, 2020 and March 31, 2019: 146,764 shares of 10 each) 0.20 0.20
Eastern News Paper (Formaly Chora Investment Co. Ltd.)
(March 31, 2020 and March 31, 2019: 83 shares of 10 each) 0.00 0.00
Holman Climax Manufacturing Limited **
(March 31, 2020 and March 31, 2019: 123,598 shares of 10 each) 0.10 0.10
The Karanpura Development Company Limited **
(March 31, 2020 and March 31, 2019: 79,850 shares of 10 each) 0.06 0.06
Birds Jute & Exports Limited **
(March 31, 2020 and March 31, 2019: 4,650 shares of 100 each) 0.05 0.05
Sijua (Jherriah) Electric Supply Company Limited **
(March 31, 2020 and March 31, 2019: 73,232 shares of 10 each) 0.05 0.05
Woodland Multispeciality Hospital Limited
(March 31, 2020 and March 31, 2019: 1950 shares of 10 each) 0.00 0.00
Sri Aurobindra Sahayog Samity Limited
(March 31, 2020 and March 31, 2019: 1 share of 100 each fully paid up) - -
Kalinga Cement Limited **
(March 31, 2020 and March 31, 2019: 6000 shares of 100 each fully paid up) 0.00 0.00
East India Minerals Limited ** #
(March 31, 2020 and March 31, 2019: 2,811,010 shares of 10 each 2.81 2.81
Total un-quoted investments in equity shares (a) 4.37 4.37
b) Investments in preference shares
7% Birds Jute & Exports Limited **
(March 31, 2020 and March 31, 2019: 263 shares of 100 each fully paid up) 0.00 0.00
5.5% Kumardhubi Fireclay & Silica Works Limited (2nd Preference) **
(March 31, 2020 and March 31, 2019: 1,260 shares of 100 each fully paid up) 0.01 0.01
9.5% Kumardhubi Engineering Works Limited **
(March 31, 2020 and March 31, 2019: 50 shares of 100 each fully paid up) 0.00 0.00
Total un-quoted investments in preference shares (b) 0.01 0.01
c) Investments in debentures
8% Kumardhubi Engineering Works Limited **
(March 31, 2020 and March 31, 2019: 58 units of 500 each) 0.00 0.00
Total un-quoted investments in debentures (c) 0.00 0.00

181
 ( in Crores)

Particulars 31st March 2020 31st March 2019

Aggregate amount of quoted investments and market value thereof 1.03 1.64
Aggregate amount of unquoted investments 4.38 4.38
Aggregate amount of impairment in value of investments (4.38) (4.38)
Total other investments (B) 1.03 1.65
Total non-current investments [(A)+(B)] 1.03 1.65
C. Provision for diminution in value of investments - -
Total Investments (A+B-C) 1.03 1.65
Aggregate book value of quoted investments - -
Aggregate market value of quoted investments NA NA
Aggregate value of unquoted investments - -
Aggregate amount of impairment in value of investments - -

Note:
*Investments in Free Press House Limited amounted to 2280, hence rounded off to zero.
*Investments in Anakapalli Rural Elec. Co-operative Socity amounted to 100, hence rounded off to zero.
** Represents investments which have been provided for impairment.
# The Orissa Minerals Development Company Limited had entered into a joint venture with M/s Usha (India) Ltd.
for managing the assets of M/s East India Minerals Ltd. (EIML). The matter is under dispute and present status of
the company and loss if any on account of diminution in value has been provided for. As the JV agreement expired
on 04.10.2013, investment in JV has been shown as Other Investment. Investment in Woodland Multi-speciality
Hospital Limited and The Sijua (Jherriah) Electric Supply Company Ltd. has also been provided for.
Subsequent to the decision of Board of M/s Power Grid Corporation Ltd for the closure of Joint venture-RINL
Power grid TLT Private Ltd, Board of RINL in the meeting on 08.03.19 also decided for winding up of above JV
and Note seeking approval for closure of RPTPL was sent to Ministry of Steel on 13th May 2019. Subsequent
clarifications sought by MOS were replied vide letter dated 7th June 2019. Request letters to expedite the process
for according approval were sent dated 09.07.2019, 21.11.2019 and 19.12.2019.
MoS was once again requested expedite the approval for closure of RPTPL, vide letter dated 27th February, 2020.
As directed by RPTPL Board a Joint Working Committee (JWC) with representatives from both RINL and
POWERGRID is formed to expedite the process for short closing of all the contracts related to RPTPL Project.
JWC started working on modalities of short closing of all the contracts. Letters written to the contractual agencies
intimating the decision of fore closing of all the contracts related to RPTPL.
During the year 2019-20 holding company's share in the losses of RPTPL exceeds its interest in RPTPL. In line
with Para no. 38 of Ind AS 28, the holding co. restricted its share in the losses to the interest in the RPTPL.
Accordingly, carrying amount of investment of holding co. in RPTPL has eroded. Consequently the provision
created in the Standalone financials of holding co. has been reversed in the consolidated financial statements.
A. The undertakings of the following companies have been taken over by the Government:-
(a) Bird & Company Limited (b) Dishergarh Power Supply Company Limited (Bihar Unit). (c) Kinnison Jute
Mills Company Limited. (d) Kumardhubi Engineering Works Limited. (e) Sijua (Jherriah) Electric Supply
Company Limited. (f) Union Jute Company Limited.
B. Compensation receivable by the Group in respect of its investments in shares and debentures, as the case
may be, in the above companies has not yet been determined. However, investments in Bird & Co. Ltd. in
debentures, preference shares and ordinary shares have already been written off. Investment in other
companies are fully provided for.

182
C. Category-wise other Investments - as per Ind AS 109 classification
( in Crores)
Particulars 31st March 2020 31st March 2019
Financial assets mandatorily carried at fair value through
profit or loss (FVTPL) 5.39 6.01
Less: Impairment in the value of investment classified as FVTPL (4.36) (4.36)
Net financial assets mandatorily carried at fair value through
profit or loss (FVTPL) 1.03 1.65
Amortised cost 0.01 0.01
Less: Impairment classified as amortised cost (0.01) (0.01)
Net amortised cost - -
Total 1.03 1.65
Note
Subsidiary,The Orissa Minerals Development Company Limited had entered into a joint venture with M/s Usha
(India) Ltd. for managing the assets of M/s East India Minerals Ltd. (EIML). However over the period, the company
has not any finance control over the said company.The matter is under dispute and present status of the company
and loss if any on account of diminution in value not ascertained and provided for. Further, in view of the above,
the financial statement of the said joint venture company has not been considered for consolidation of Financial
Statements.

7 Loans
(Unsecured and considered good unless otherwise stated) ( in Crores)
Particulars 31st March 2020 31st March 2019
7A) Non-current loans
Loans to employees 24.93 46.69
Loan to Andhra Pradesh Industrial Infrastructure Corporation 50.48 69.22
(APIIC) (including Accrued interest)
Loans to others 0.07 0.07
75.48 115.98
Loss allowance (0.07) (0.07)
Total long-term loans 75.41 115.91
7B) Current loans
Material issued on loan - -
Loans to employees 0.47 0.41
0.47 0.41
Loss allowance - -
Total short-term loans 0.47 0.41

(i) Particulars of Loans Receivables

(a) Secured and considered good 0.00 0.00
(b) Unsecured and considered good 75.88 116.32
(c) Which have significant increase in credit risk 0.00 0.00
(d) Credit impaired 0.07 0.07
(ii) Loans due by Directors/officers - -
(iii) Loans due by private companies in which director of the Group is a director - -
The loss allowance on loans has been computed on the basis of Ind AS 109, Financial Instruments, which requires such
allowance to be made even for loans considered good on the basis that credit risk exists even though it may be very low.

183
8 Other Financial Assets ( in Crores)
Particulars 31st March 2020 31st March 2019
8A) Non Current other financial assets
Security deposits 1.57 1.64
Accrued interest
Employee loans 22.25 22.99
Term deposits with banks with maturity of more than 1 year 4.20 1.71
Other advances (net of Provision: 2020: 0.01 Crs, 2019: 0.01 Crs) 0.14 0.09
Total non-current other financial assets 28.16 26.43
8B) Current other financial assets
Current maturities of long term loans:
- Employee loans 18.05 20.84
- Loan to APIIC 25.14 27.46
Accrued interest
- Term Deposits 8.13 12.69
- Employee loans 3.04 2.51
- Others 33.81 31.38
Security deposits 377.54 333.08
Term deposits with banks with maturity less than 1 year 1.82 4.31
Advances to related parties
-International Coal Ventures Private Limited* 1.54 1.41
-Rinmoil Ferro Alloys Private Limited* 1.21 1.21
Claims recoverable (net of Provision: 2020: 72.09 Crs, 2019: 52.53 Crs)**# 119.67 138.58
Derivatives not designated as hedges 87.09 -
Other receivables (net of Provision: 2020: 2.22 Crs, 2019: 1.01 Crs) 2.94 2.94
Total current other financial assets 679.98 576.41
(i) Advances due by Directors/ officers - -
(ii) *Advances due by private companies in which director of the Group is a director 2.75 2.62
iii)** This includes an amount of 18.11 crores yet to be received from M/s New India Assurance Company
towards insurance claims.
As against our final claim of 286.34 crore towards property damages caused by Hudhud cyclone, an amount of
170.59 crore being amount recommended by surveyor and under consideration of insurance company has
been accounted till FY-2018-19. In addition to adhoc payment of 140.00 Crore, the Insurance Company has
released 12.48 crore in Oct’19 as final settlement of claim leaving balance of 18.11 Crore receivable as per
recommendation of surveyor. However RINL has not agreed with the settlement made by Insurance Company
and preferred to settle the differences though Conciliation mechanism and informed insurance company accordingly.
RINL has nominated its member to the Conciliatory forum and requested insurance company on 13.01.2020 for
nomination of their representative to forum. After nomination of the representative by Insurance company, the
proceedings of conciliation have commenced. Necessary provision has been made for 18.11 crores.
# This includes 9.57 Crores claimed by the company on Mahanadi Coal Fields Ltd.(MCL) towards underloading
and idle freights. Out of which 5.44 Crores is remaining unsettled for more than 3 years. As the claim is tenable
in terms of fuel supply agreement with MCL, the company has already taken up and continuously followed up with
MCL for their consideration and early settlement of the claim.
9A. Reconciliation of Effective Tax Rate ( in Crores)
Particulars 31st March 2020 31st March 2019
Profit before tax (4,370.26) (1,001.97)
Tax using the Group’s domestic tax rate (Current year 31.2%
(Subsidiary 26%) and Previous Year 31.2%(Subsidiary 29.12%)) (1,311.92) (281.87)
Reduction in tax rate 0.00 0.00
Tax effect of:
Non-deductible tax expenses 3.20 2.98
Income not credited to SOPL 7.94 13.55
Scientific research deduction (0.01) (0.03)
Income exempt/Expenses deductible from income taxes (36.38) 5.51
Recognition/Derecognition of Tax losses 993.84 (350.69)
Others (5.84) 20.52
(349.17) (590.03)
The current year losses for which deferred tax asset has not been recognised in the books shall expire on
31st March, 2028 (Previous Year: 31st March 2027).
184
B. Recognised Deferred Tax Assets and Liabilities ( in Crores)
Particulars 31st March 2020 31st March 2019
Deferred Tax Liabilities
Property, Plant and equipment and intangible assets 2,944.85 2,690.96
Others 0.46 0.62
Total deferred tax liabilities (A) 2,945.31 2,691.58
Deferred tax assets
Provision for Gratuity and other Employee benefits 228.54 174.21
Provision for Doubtful Debts, Advances, Claims, interest, others 190.28 212.39
Deferred Income - PPE 39.27 -
MAT Credit Entitlement 242.41 242.41
Losses available for offsetting future Taxable income 3,967.73 3,403.94
Tax impact on remeasurement gain/(loss) arising from defined
benefit obligation 0.70 0.17
Others 17.23 16.06
Total deferred tax assets (B) 4,686.16 4,049.18
Net Deferred Tax Liability/ (Asset) (A-B) (1,740.84) (1,357.60)
In case of OMDC: Deferred Tax Assets is created for the loss incurred due to payment of Compensation against excess
Mining pursuant to the judgement of Hon'ble Supreme Court dated 02.08.2017 and Provision for Outstanding amount of
Compensation; Future Economic benefit is subject to making payment of full compensation amount towards OMDC Leases,
after which the Company may be permitted to resume mining activities. The amortisation effect of the deferred tax assets
will be given once the mining leases are given permission to resume till the validity of the leases.
10 Other Non-Current Assets ( in Crores)
Particulars 31st March 2020 31st March 2019
Capital advances 62.22 60.72
Advances with public bodies 0.58 0.58
Advance to vendors 0.01 0.00
Others
Prepaid expenses*
Loan to APIIC 11.66 17.49
Employee loan 9.47 1.76
Others - -
Total 83.94 80.55
Less: Allowance for bad and doubtful non financial assets
Capital advances (0.48) (0.48)
Total 83.46 80.07
(i) Advances due by Directors/ officers - -
(ii) Advances due by private companies in which director of the Group is a director - -
In case of Holding Co.
* Prepaid expenses is on account of fair valuation as per IND AS 109 which will be amortised as per the
amortisation schedule.
11 Inventories : (As taken and certified by the management) ( in Crores)
Particulars 31st March 2020 31st March 2019
Raw materials 1,875.97 2,378.39
Add: In-transit/ Under inspection 847.22 1,174.57
Add: Materials given on loan* 34.08 -
Less: Provision for shortages 692.27 573.93
2,065.00 2,979.03
Semi-finished/finished goods 3,960.56 3,313.57
Add: In-transit/ Under inspection 121.41 82.40
4,081.97 3,395.97
Stores and spares 852.39 1,087.73
Add: In-transit/ Under inspection 114.67 100.23
Less: Provision for obsolescence & Non-moving items 53.82 45.23
913.24 1,142.73
Total 7,060.21 7,517.73
* This represents 48436.720 MT of pulverized coal lying with SAIL in terms of agreement for commodity loan.(Holding Co.)
185
Note: Valuation of Inventories
In case of Holding Co.
(i) Quantities of closing stock of Finished / Semi-finished / Raw materials / Coke and Other Byproducts have
been adopted as per book balances after adjusting for shortages / excesses identified on physical verification
at any time during the year.
(ii) Finished / Semi-finished / Coke and Other by products are valued at lower of Cost or NRV.
(iii) The cost of the following By-Products is determined as per the working guidelines approved by CMD:
a) Production Related Steel Scraps 90% of the lower of cost or domestic NRV of Pig Iron.
b) Production Related Iron Scraps 75% of the lower of cost or domestic NRV of Pig Iron.
c) Nut Coke 90% of the production cost of the BF Coke.
d) Coke Breeze 60% of the production cost of the BF Coke.
e) Coke Dust/ Sludge 40% of the production cost of the BF Coke.
(iv) All other By Products are valued at NRV wherever the cost for such products cannot be determined except in
case of stock of BF Granulated slag at dump yard for which no value is assigned other than dump slag
identified for sale.
(v) No credit is taken in the accounts for the stock of run of mines ore and rejects at mines.
(vi) Capital inventory of 82.19 crores lying at different construction zones/ with contractors on the reporting date
are included in CWIP (Refer Note No. 3G).
(vii) Trial run inventory of 21.22 crores (quantity of 5922 tonnes) has been shifted to normal inventory. The
impact of the same is 0.07 crores credit to P&L.
(viii) As an abundant prudence, during the year 3944.208 MT of finished product has been valued at scrap price
( ie., 90% of the lower of cost or domestic NRV of Pig Iron.)
ix) The stock of production related iron scrap and steel scrap has been considered in the accounts on the basis
of visual survey / estimates and are valued at 75 % and 90 % respectively, at lower of the cost of Pig Iron and
of the domestic net realisable value of Pig Iron.
12 Trade Receivables ( in Crores)
Particulars 31st March 2020 31st March 2019
Unsecured, considered good 613.15 1,133.50
Doubtful 29.00 28.52
642.15 1,162.02
Less: Loss allowance
Doubtful 29.00 28.52
Total 613.15 1,133.50
Note:
(i) Debts due by Directors/officers - -
(ii) Debts due by private companies in which director of the Group is a director - -
(iii) The Group's exposure to credit and currency risks, and loss allowances related to trade receivables are
disclosed in Note 39.
13 Cash and Cash Equivalents ( in Crores)
Particulars 31st March 2020 31st March 2019
Cheques in hand 1.73 77.96
Cash on hand 0.06 0.04
Balance with banks :
- Current account 7.29 32.29
- Deposit accounts 46.59 75.36
- Prime Minister's Trophy Award Fund 7.76 7.88
- Earmarked Balance with scheduled banks (includes
deposits of unpaid dividend) 74.35 24.05
- In deposit account (having maturity between 3-12 months) 48.44 245.52
Balance with banks against guarantees and other commitments 8.88 9.08
Total 195.10 472.18

186
14 Other Tax Assets (net) ( in Crores)
st st
Particulars 31 March 2020 31 March 2019
14A Other tax assets
Advance income tax 69.57 65.28
Total 69.57 65.28
14B Other tax liabilities
Income tax payable 28.04 25.68
Total 28.04 25.68
Pending reconciliation and adjustment with respect to The Orissa Minerals Development Company Limited of
Income Tax payment against liability, both the figures have been shown as gross.
15 Other Current Assets ( in Crores)
Particulars 31st March 2020 31st March 2019
Advances to related parties
-Bisra Stone Lime Company Limited - -
- Orissa Mineral Development Corporation - -
Advances other than capital advances
- Government departments# 689.29 996.70
Less: GST Recoverable Pending Adjustment 174.97 514.32 430.89 565.81
- Contractors 6.84 10.89
Less: Provision for doubtful advances 0.20 6.64 0.20 10.69
- Suppliers 79.56 117.00
Less: Provision for doubtful advances 4.84 74.72 4.95 112.05
- Employees 29.19 20.16
Less: Provision for doubtful advances 0.01 29.18 0.01 20.15
- Others** 85.33 108.48
Less: Provision for doubtful advances 9.68 75.65 9.55 98.93
Others
- Prepaid expenses
Employee loan 4.17 5.29
Loan to APIIC 5.83 5.83
Lease payments* - 0.43
Others 17.26 13.39
- Assets held for sale (net of provision for loss) - 0.12
- Export benefits receivable 52.47 53.50
Others 4.63 2.86
Total 784.88 889.04
(i) Advances due by Directors/ officers - -
(ii) Advances due by private companies in which director of the Group is a director - -
# includes an amount of 26.50 crores deposited during current year vide CBDT OM dated 25.03.2020 under the
Direct Taxes Vivad se Vishwas Act, 2020 (VsV Scheme), pending filing of declarations and finalisation of disputed
tax under the Rules notified thereunder and 100.90 crores paid to Chief Electrical Inspector to Govt of AP-
under protest in line with Supreme Court interim order towards electricity duty charges.
* For OMDC , against 2297.01 ha of OMDC Leases and 2068.272 ha Supplementary Lease Deed has not yet been
executed though 3 leases of OMDC have been revalidated. Mining Operation in OMDC is yet to be resumed for want
of statutory clearances. In BSLC, mining operation is being carried on over the area of its land of 793.043 ha.
** In case of OMDC: Other advances includes payment of advance with protest amounting to 27.15 Crore to
DDM, Joda against compensation of excess mining for BPMEL Leases as per the Order of Supreme Court dated
02.08.2017.

187
16 Share Capital ( in Crores)
Particulars 31st March 2020 31st March 2019
Authorised
4,89,00,00,000 (31st March 2019: 4,89,00,00,000)
equity shares of 10 each 4,890.00 4,890.00
3,11,00,00,000 (31st March 2019: 3,11,00,00,000)
7% non-cumulative redeemable preference shares of 10 each 3,110.00 3,110.00
8,000.00 8,000.00
Issued, subscribed and paid-up capital
4,88,98,46,200 (31st March 2019: 4,88,98,46,200)
Equity Shares of 10 each. 4,889.85 4,889.85
Total 4,889.85 4,889.85

(i) Reconciliation of the number of equity shares outstanding at the beginning and at the end of the reporting period:

Particulars 31st March 2020 31st March 2019

No. of shares Amount No. of shares Amount
( in Crores) ( in Crores)
Shares outstanding at the beginning of the year 4,88,98,46,200 4,889.85 4,88,98,46,200 4,889.85

Shares issued during the year - - - -

Shares outstanding at the end of the year 4,88,98,46,200 4,889.85 4,88,98,46,200 4,889.85

Terms and rights attached to equity shares

The Holding Company has only one class of shares referred to as equity shares having a par value of 10 each.
Each holder of the equity share, as reflected in the records of the Holding Company as of the date of the shareholder
meeting, is entitled to one vote in respect of each share held for all matters submitted to vote in the shareholder
meeting. The Holding Company declares and pays dividends in Indian rupees. The Holding Company may declare
dividend in the Annual General Meeting as recommended by the Board of Directors.

In the event of liquidation of the Holding Company, the holders of equity shares will be entitled to receive any of
the remaining assets of the Holding Company after distribution of all preferential amounts. The distribution will be
in proportion to the number of equity shares held by the shareholders.

(ii) Particulars of shareholders holding more than 5% of total number of equity shares
Particulars 31st March 2020 31st March 2019

No. of shares % of holding No. of shares % of holding

Equity shares of 10 each, fully paid up held

President of India 4,88,98,46,200 100% 4,88,98,46,200 100%

(iii) Holding Company does not have any holding company as at 31st March 2020/ 31st March 2019
(iv) For the period of five years immediately preceeding the reporting date -
- The Holding Company has not allotted any shares for consideration other than for cash.
- The Holding Company has neither issued bonus shares nor has bought back any shares .

188
17 Other Equity ( in Crores)
Particulars 31st March 2020 31st March 2019

(A) Reserves and surplus

Retained earnings
Balance at the commencement of the year* (595.45) (575.02)
Add: Surplus as per Statement of Profit and Loss (3,956.48) (54.92)
Add: Other comprehensive income (net of tax) (170.85) 34.49
Add: Additions - -
Less: Appropriations:
- Dividend including dividend distribution tax - (0.00)
- Appropriations of reserves - -
Balance at the end of the year (4,722.78) (595.45)
Other reserves
Capital Redemption Reserve
Balance at the commencement of the year 2,937.47 2,937.47
Movement during the period - -
Balance at the end of the year 2,937.47 2,937.47
Capital reserve
Balance at the commencement of the year (0.46) (0.46)
Addition during the year - -
Balance at the end of the year (0.46) (0.46)
Reserve fund as per RBI Act (Special Reserve)
Balance at the commencement of the year 0.75 0.75
Addition during the year - -
Appropriation to reserves - -
Balance at the end of the year 0.75 0.75
General reserve
Balance at the commencement of the year 3.84 3.84
Addition during the year - -
Balance at the end of the year 3.84 3.84
Total reserves and surplus (A) (1,781.18) 2,346.15
(B) Other comprehensive income
Share of other comphrehensive income of equiy accounted investees
Balance at the commencement of the year 83.25 30.68
Addition during the period 79.79 52.57
Balance at the end of the year 163.04 83.25
Total other comprehensive income (B) 163.04 83.25
Total other equity (A+B) (1,618.14) 2,429.40

* EIL being NBFC shall comply with the Indian Accounting Standards for accounting periods beginning on or after
the 1st April, 2019 as per Rule 4 (b) of The Companies (Accounts) Rules, 2016. RINL Group share in transition
differences to the tune of 2.84 crores is given effect in the opening balance of previous year.

189
18 Borrowings ( in Crores)
st st
Particulars 31 March 2020 31 March 2019
18A Non-current borrowings
Term loan from banks
-Secured bank loans 9,759.77 9,309.26
-Unsecured bank loans - -
Current maturities of term loans 613.70 561.30
10,373.47 9,870.56
Less: Amount included in other financial liabilities-Current 613.70 561.30
Total non-current borrowings 9,759.77 9,309.26
18B Current borrowings
Loans from Banks
-Secured working capital borrowings (by hypothecation of current assets) 5,080.08 5,105.07
-Secured foreign currency facilities (Charge against Current assets) 1,497.62 -
-Loan from IDBI Bank including accrued interest against Fixed Deposit 310.00 123.01
-Unsecured working capital borrowings 4,644.37 2,630.22
-Unsecured foreign currency facilities 145.36 -
Commercial papers (Unsecured) - 1,985.73
Total current borrowings 11,677.43 9,844.03
Information about the Group's exposure to interest rate, foreign currency and liquidity risks is included in Note 39.
A. Terms of Repayment and Nature of Security of Non-Current Borrowings (Holding Co.)
- Indian rupee loan amounting to 600.00 crore from SBI secured by primary security as pari passu first charge on current assets of the company
and collateral security as pari passu first charge on fixed assets of the company with FACR of 1.33. The loan is repayable in structured
consecutive quarterly instalments started from first quarter of FY 2017-18 and the last instalment is due on 31st March 2022.
- Indian rupee loan amounting to 337.50 crore from SBI secured by primary security as pari passu first charge on current assets of the company
and collateral security as pari passu first charge on fixed assets of the company with FACR of 1.33. The loan is repayable in structured
consecutive quarterly instalments started from first quarter of FY 2019-20 and the last instalment is due on 31st March 2023.
- Indian rupee loan amounting to 3564.00 crore from SBI secured by pari passu first charge on entire fixed assets including CWIP of the company
with FACR of 1.33. The loan is repayable in structured consecutive quarterly instalments started from last quarter of FY 2016-17 and the last
instalment is due on 31st March 2031.
- Indian rupee loan amounting to 1412.96 crore from SBI secured by pari passu first charge on entire fixed assets including CWIP of the company
with FACR of 1.33. The loan is repayable in structured consecutive quarterly instalments starting from first quarter of FY 2018-19 and the last
instalment is due on 31st March 2031.
- Indian rupee loan amounting to 1000.00 crore from Canara Bank secured by hypothecation of movable fixed assets including Plant& machinery
created out of proceeds of the term loan. The loan is repayable in structured consecutive quarterly instalments starting from 30th Sep 2022 and
the last instalment is due in 30th June 2027.
- Indian rupee loan amounting to 200.00 crore from Vijaya Bank secured as pari passu first charge on hypothecation of movable fixed assets with
FACR of 1.25:1. The loan is repayable in structured consecutive quarterly instalments starting from 30th June 2022 and the last instalement is
due on 31st March 2027.
- Indian rupee loan amounting to 500.00 crore from IDBI secured by primary security as pari passu first charge by mortgage in favour of IDBI, of all
immovable & movable fixed assets excluding Project land of the Forged Wheel Plant, Lalganj, Uttar Pradesh both present and future. Collateral
security as pari passu first charge on Plant and Machinery of Company's Visakhapatnam Plant to the extent of loan amount.The loan is repayable
in structured consecutive quarterly instalments starting from 28th March, 2022 and the last instalment is due on 28th December 2029.
- Indian rupee loan amounting to 1339.70 crore from Canara Bank secured by primary security as pari passu first charge on movable fixed assets
of the company both present and future including plant and machineries to be purchased out of term loan.The loan is repayable in structured
consecutive quarterly instalments starting from 21st December 2023 and the last instalment is due on 21st September 2028.
- Indian rupee loan amounting to 500.00 crore from Union Bank of India secured as pari passu first charge by hypothecation on all existing/ future
machinery/ plant/ vehicle/ capital goods/ assets/ craft and all those assets/ movable properties and/ or capable of passing by delivery whether
installed or not and whether now lying loose or in cases and now being or at any time brought into or upon or at any time in course of transit to the
premises/ factory of the borrower at Visakhapatnam Steel Plant, Visakhapatnam and their other plants/ branches.The loan is repayable in
structured consecutive quarterly instalments starting from 31st December 2020 and the last instalment is due on 30th September 2025.
- Indian rupee loan amounting to 307.03 crore from Vijaya Bank secured as pari passu first charge by hypothecation of moveable fixed assets
of the company with FACR of 1.25:1. The loan is repayable in structured consecutive quarterly instalments starting from 31st August 2023 and the
last instalment is due on 31st May 2028.
- Indian rupee loan amounting to 432.23 crore from SBI secured by primary security as pari passu first charge over entire movable, immovable and
intangible assets excluding project land of FWP, Lalganj, UP both present & future. Collateral security as pari passu first charge over entire movable,
immovable and intangible assets of company's Visakhapatnam plant to the extent of 133% of loan amount at all times both present & future. The loan
is repayable in structured consecutive quarterly instalments starting from 31st March 2022 and the last instalment is due on 31st December 2029.
- Indian rupee loan amounting to 76.75 crore from Indian Bank secured by primary security as pari passu charge on the entire unspecified
movable fixed assets of the company on as is where basis to all the capex lenders with FACR of 1.20 times of term loan. The loan is repayable
in structured consecutive quarterly instalments starting from 31st October 2022 and the last instalement is due on 31st July 2034.

190
- Indian rupee loan amounting to 47.98 crore from Allahabad Bank secured by primary security as pari passu charge on unspecified movable
fixed assets of the company to the extent of 125% of bank exposure.The loan is repayable in structured consecutive quarterly instalments starting
from month ending January 2025 and the last instalment is due in month ending December 2029.
- Indian rupee loan amounting to 55.32 crore from Union Bank of India secured by hypothecation of all existing / future machinery / plant/ vehicle
/ capital goods / assets / craft and all those assets / movable properties capable of passing by delivery, whether installed or not and whether now
lying loose or in cases and now being or at any time hereafter brought into or upon or at any time in course of transit to the premises / factory of
the borrower at visakhapatnam steel plant, visakhapatnam - 530031 and their other plants / branches.The loan is repayable in structured
consecutive quarterly instalments starting from month ending May 2022 and the last instalment is due in month ending February 2027.
B. Loans guaranteed by Directors and others Nil Nil
C. Default in repayment of Loans and Interest Nil Nil
D.Reconciliation of Liabilities Arising from Financing Activities ( in Crores)
For the year Cash Flows : For the year
Particulars ended 31st Inflow / Non-Cash Changes ended 31st
March 2019 (Outflow) March 2020
- -
Foreign Exchange Fair Value
Movement Change
Long-Term Borrowings 9870.56 502.91 0 - 10373.47
(including Current Maturities)
Short Term Borrowings 9844.03 1,746.51 86.89 - 11677.43
E. Company has availed moratorium provided by RBI in respect of its loan repayments upto 30.06.2020
for a principal amount of 178.13 Crores and interest of 353.17 Crores. The amount outstanding as
on 31.03.2020 towards loan repayment is NIL and interest is 84.61 Crores. (Holding Co.)
19 Other Financial Liabilities ( in Crores)
st st
Particulars 31 March 2020 31 March 2019
19A Non-current other financial liabilities
Security deposits@ 113.49 96.38
Other liabilities# 50.22 -
Total non-current other financial liabilities 163.71 96.38
19B Current other financial liabilities
Current maturities of long-term debt:
- Term loans 613.70 561.30
Interest accrued but not due on borrowings 114.01 7.38
Interest accrued and due on borrowings - -
Earnest money, security & other deposits 421.98 376.02
Capital creditors 66.19 74.17
Employee related payables and recoveries 23.78 4.96
Royalty payable 0.94 0.94
Unpaid dividends** 0.60 0.60
Unclaimed amount on redemption of preference shares 0.02 0.02
Amount payable to related party - -
Other financial liabilities*^ 2,811.65 3,134.08
Total current other financial liabilities 4,052.88 4,159.48
@ This includes performace retention deposits of 108.31 Crores ( FY 2018-19 85.57 Crores) from the contractors
which is repayable upon successful performance as per the terms of the contract.
# This represents lease liability of 50.22 Crore, arised due to implementation of IND AS 116, on account of
Land taken on lease from Indian Railways for establishing FWP.
* Other financial liabilities includes 464.99 Crore (Previous year 472.49 Crore) provision on account of pay
revision(pension) in respect of Executive employees and Non-Executive employees of Holding Co and
^ The current maturities of the said lease is 0.72 Crore and grouped under Current Other Financial Liabiities.
The Group's exposure to currency and liquidity risks related to financial liabilities is disclosed in Note 39.
** Unpaid dividend includes: (a) In case of Eastern Investment Limited dividend relates dividends unpaid for F.Y
2011-12 ( 0.023 Crs), 2012-13 ( 0.019 Crs), 2013-14 ( 0.0014 Crs), 2015-16 ( 0.027 Crs) and 2016-17
( 0.015 Crs) .and (b)In case of, The Orissa Minerals Development Company Limited 0.32 Crore for disputed
dividend as on March 31, 2020.

191
20 Provisions ( in Crores)
Particulars 31st March 2020 31st March 2019
20A Non-current provisions
Provision for employee benefits
Liability for Gratuity 14.76 17.79
Liability for Compensated Absences 405.02 316.91
Liability for Retirement Benefits 645.19 515.20
Liability for Employee Family Benefit Scheme 161.35 168.12
Liability for Service Awards 50.71 40.95
Liability for Leave Travel Concession 5.20 12.86
Liability for Super annuation Fund 0.08 0.07
Total provisions for employee benefits (A) 1,282.31 1,071.90
Other provision
Provision for rates and taxes 0.49 0.49
Provision for mines closure obligation 4.93 3.79
Total other provision (B) 5.42 4.28
Total non-current provisions (A+B) 1,287.73 1,076.18
20B Current provisions
Provision for employee benefits
Liability for gratuity 735.87 556.22
Liability for compensated absences 26.92 21.56
Liability for retirement benefits 16.06 13.47
Liability for employee family benefit scheme 40.45 40.12
Liability for service awards 4.02 3.32
Liability for leave travel concession 6.88 7.31
Liability for Pay Revision 38.55 36.03
Total provisions for employee benefits (A) 868.75 678.03
Other provisions
Provision for Site Reclamation 15.17 14.76
Provision for wildlife conservation plan 5.31 5.16
Provision for lease renewal fees - -
Provision for other legal obligations 8.77 8.77
Other Provisions 12.13 11.15
Total other provisions (B) 41.38 39.84
Total current provisions (A+B) 910.13 717.87
In case of EIL :
1. The company had continued to pay Rent and Cess on Land Revenue on Lawrence Property at Bauria @
2,012 per year till 31.03.2001 with the office of the Revenue Inspector. The company though not accepted
the substantial increase in such charges from 2001-02, continued to provide liability on the basis of claims received.
In absence of any formal claim by the concerned department, amount of such claim, if any, has neither been
ascertained nor considered in the accounts from the financial year 2008 – 09 onwards. Further letter reference
no, EIL / Lawrence property / 01 dt. 14.03.2018 has been issued to Block Land & Land Reform office with a copy
to higher authority, ie, District Land & Land Reform office and to the next higher authority , ie, Director of Land
Record and Service. It has been requested in the letter to provide the land tax dues by BL&LRO for payment by
EIL and also requested to consider the compensation for the land acquired by the Govt. of W.B . which is yet to
be received in accordance with the judgement passed by Additional Distict Judge. Subsequently, another letter
dated 5.4.2018. issued to Additional District Magistrate ( LR & DLLRO, Govt. of W.B with a copy to Principal
secrtary and Land Reform Commissioner , Govt. of W.B to expedite the matter. Subsequently, information through
to RTI Act has been sought on 11.06.2018, where in it has been asked the due land tax for 49.19 Acres and
whether any notice for the same has been issued by the department. A reply was received on 28.06.2018 on the
RTI application which states that “the matter of realistion of land revenue in case of subject land does not arise
and as such there is no question of raising demand of land revenue in respect of said land”.
192
2. Pay Revision of Employees: OMDC
The provision is recognised with respect to the pay revision of the employees of Central Public Sector
Enterprises, the same is provided for in the books of accounts with effect from 1st April, 2010 on basis of the
difference in Basic Pay and Industrial Dearness Allowance between 1997 and 2007 Pay Scale. Calculation
made on basis of the present basic pay and IDA component of the existing employees.
3. Provision for site Reclamation & Restoration: OMDC
Provision for site reclamation is made with respect to the restoration of the mines and are made against the
demand raised by the various mining related departments of Government for site reclamation and restoration
as required under the Mining laws. Balance amount for site reclamation based on revised calculation is
provided in contingent liability.
4. Provision available for legal obligation was 8.77 Crores ( FY 2018-19 19.13 Crores)
Movement in provision for Mine closure obligation / Site Reclamation ( in Crores)
Particulars Mine closure obligation/Site Reclamation
st
Balance at 1 April 2019 18.55
Provisions made during the year 1.55
Balance at 31st March 2020 20.10
Mine closure obligation
A provision for mine closure obligation is recognised considering the future obligation on the Group
for the restoration of mines.
Name of the Mine Lease expiry
Jaggayyapeta 8-Aug-2020
Madharam 13-Jul-2020
Garbham 7-Oct-2022
21A Other Non Current Liabilities ( in Crores)
Particulars 31st March 2020 31st March 2019
Others
Deferred income-Grants
Trophy Fund 7.76 8.12
Total 7.76 8.12
A. Deferred Income (Holding Co.)
The grant relating to Trophy fund represents the unspent amount received on account of Prime Minister
Trophy, Steel Minister Trophy and Steel Minister Development fund including interest earned.The same has
to be spent for specific purposes and will be amortised over the period in which the cost incurred shall be
recognised . Wherever the Trophy Fund deposit is utilised for construction of any asset,the transfer from the
Trophy Fund is effected only on capitalisation of said assets.
PM Trophy Fund and PM Trophy Fund Deposit changes during the year 19-20 of Holding Co.: ( in Crores)
Note:13 Note:21A
Particulars Deposit Trophy Fund Included note ref
Opening balance 8.52 8.52
Add:Interest during the year 0.60 0.60
Less:Utilisation
(a) Providing Acs in CWC-I for
employee welfare -capitalised 1.00 1.00 3.A (Additions to PPE)
(b) Wellness Centre for employee
welfare - CWIP 0.24 0.00 3.G (CWIP)
Closing Balance 7.88 8.12

193
21B Government Grants Deferred - PPE ( in Crores)
Particulars 31st March 2020 31st March 2019
Deferred income-Government Grants
Non Current 119.67 5.21
Current 6.18 0.37
Total Government Grants - PPE 125.86 5.58
The grants relating to PPE represents unamortised Subsidy received from Government towards establishment of
5 MW Solar Power Plant, Government Grant received towards the value of Plant & Machinery supplied free of cost
by NEDO, Nodal Agency of Japan Government, under the MOU entered between Government of India and NEDO
and unamortised value of PPE acquired out of Trophy Fund. This amount will be amortised over the useful life of
the relevant asset. This amount will be amortised over the useful life of the relevant asset as per Accounting policy
no. 2.19
There are no unfulfilled conditions or contingencies attached to these grants.

Breakup of Value of grants relating to PPE : ( in Crores)

st st
Particulars 31 March 2020 31 March 2019
5 MW Solar Power Plant 4.43 4.64
PM Trophy Fund 1.73 0.94
NEDO Grant 119.70 -
Total 125.86 5.58

22 Trade and Other Payables ( in Crores)

st st
Particulars 31 March 2020 31 March 2019
Trade payables
-Micro Enterprises and Small Enterprises 48.41 109.63
-Other than Micro Enterprises and Small Enterprises 3,456.02 2,481.01
Total 3,504.43 2,590.64
All Trade Payables are 'current'.
The Group's exposure to currency and liquidity risks related to trade payables is disclosed in Note 39.
In case of Holding Co.
Note : Information relating to 'Supplier' under the provisions of Micro, Small and Medium Enterprise
Development Act, 2006

Particulars 31st March 2020 31st March 2019

(i) The amounts due thereon remaining unpaid to any supplier
as at the end of the year
- Principal Nil Nil
- Interest Nil Nil
(ii) Payments made beyond the appointed day and interest thereon during the year Nil Nil
(iii) The amount of interest due and payable for the period of delay
in making payments but without adding the interest specified in the act. Nil Nil
(iv) The amount of interest accrued and remaining unpaid at
the end of the year Nil Nil
(v) The amount of further interest remaining due and payable in the
succeeding year until the date such interest is actually paid Nil Nil

23 Derivatives - Liabilities ( in Crores)

Particulars 31st March 2020 31st March 2019
Foreign exchange contracts - -
Total - -

194
24 Other Current Liabilities ( in Crores)
Particulars 31st March 2020 31st March 2019
Income Received in advance 1.59 1.71
Advances from customers 245.95 305.84
Statutory Liabilities 220.76 358.89
Other advances/liabilities 0.63 1.26
Total 468.93 667.70
25 Revenue from Operations ( in Crores)
Particulars For the year ended
31st March 2020 31st March 2019
A. Sale of products
Domestic sales$ 14,365.93 19,563.14
Less: Sale of trial run production (transferred to CWIP)* - 506.32
14,365.93 19,056.82
Export sales 1,479.85 1,305.04
Less: Sale of trial run production (transferred to CWIP) - -
1,479.85 1,305.04
Total Sale of Products (A) 15,845.78 20,361.86
B. Other Operating Revenues
Internal Consumption 17.15 19.03
Export benefits 53.11 113.07
Dividend Income 0.02 0.02
Interest Income 19.20 53.00
Others 30.96 21.87
Total Other Operating Revenues (B) 120.44 206.99
Total Revenue from Operations (A+B) 15,966.22 20,568.85
*There is no trial run sales during the year, as the trial run inventory is transferred to normal inventory.(Holding Co.)
$ Excluding inter Co.transactions
26 Other Income ( in Crores)
Particulars For the year ended
31st March 2020 31st March 2019
Interest income under the effective interest method on:
Banks 0.30 0.30
Loans to employees 8.66 9.82
Others * 56.17 75.53
Dividend income on equity instruments - -
Claims for finished goods (shortages and missing wagons) -
Rent income from property subleases 37.27 35.01
Liquidated damages 94.55 75.54
Net gain on sale of property, plant and equipment 0.85 0.99
Write back of provisions no longer required 3.96 2.56
Licence fee 0.14 0.24
Sundry receipts ** 45.14 147.38
Total 247.04 347.37
Note: In case of Holding Co
(a) * includes an amount of 13.12 crore of accrued interest upto 31.03.2019 accounted based on relief given by CIT(A)-9
Hyderabad vide common order dt.30.04.2019 for AY 2012-13 to AY 2014-15 in line with IND AS-10.
(b) ** includes an amount of (i) 54.75 Crore refund received from M/s. NMDC during the year towards DMF (District Mineral
Fund) for the period 12.01.2015 to 16.09.2015 (ii) 1.74 Crore rebate received from Indian railways during the year
towards fulfillment of Gross Freight Revenue (GFR) and volume discount pertaining to the year 2018-19. (iii) 26.38
Crore of GST Compensation cess refund claimed during the year for the FY 2018-19 as per circular no.79/53/2018- GST
dated 31.12.2018.

195
(c) **As against our final claim of 286.34 crore towards property damages caused by Hudhud cyclone, an amount of
170.59 crore being amount recommended by surveyor and under consideration of insurance company has been accounted
till FY-2018-19. In addition to adhoc payment of 140.00 Crore, the Insurance Company has released 12.48 crore in
Oct’19 as final settlement of claim leaving balance of 18.11 Crore receivable as per recommendation of surveyor.
However RINL has not agreed with the settlement made by Insurance Company and preferred to settle the differences
though Conciliation mechanism and informed insurance company accordingly. RINL has nominated its member to the
Conciliatory forum and requested insurance company on 13.01.2020 for nomination of their representative to forum.
After nomination of the representative by Insurance company, the proceedings of conciliation have commenced. Necessary
provisions of 18.11 crores has been made as stated under note 8B.
27 Cost of Material Consumed ( in Crores)
Particulars For the year ended
31st March 2020 31st March 2019
Raw materials
Coal 5,908.68 7,513.52
Coke and Coke breeze 612.62 530.30
Iron ore 3,867.84 4,539.45
Limestone* 217.83 217.46
Dolomite 166.19 145.90
Silico manganese 537.21 622.73
Ferro silicon 80.39 111.10
Aluminium 107.22 145.04
Manganese ore 2.33 3.86
Petroleum coke 40.98 53.25
Sea Water magnesite 20.86 11.25
Others 66.35 66.64
Total 11,628.49 13,960.50
Add: Output from trial run production 21.22 14.48
Less: Material Consumed for trial run production - 193.97
Less: Inter account adjustments - raw material mining cost 68.49 65.84
Total 11,581.22 13,715.17
* Excluding intercompany transactions
28 Changes in Inventory of Finished Goods and Work-In-Progress ( in Crores)
Particulars For the year ended
31st March 2020 31st March 2019
Opening stock 3,395.97 2,438.20
Less: Closing stock 4,081.97 3,395.97
Total (686.00) (957.77)

Note : In case of Holding Co: ( in Crores)

st st
Particulars 31 March 2020 31 March 2019
Cost of inventories valued at net realisable value 2,070.16 447.31
Inventories valued at net realisable value 1,928.71 446.96
Write down of inventories charged as expense 141.45 0.35
29 Employee Benefits Expense ( in Crores)
Particulars For the year ended
31st March 2020 31st March 2019
Salaries and wages 2,197.17 2,076.47
Contribution to provident fund and other funds 299.92 252.75
Expenses related to compensated absences - -
Staff welfare expenses 165.76 152.26
Total 2,662.85 2,481.48

196
Note:
(i) In the case of Holding Co, Expenditure on Employee benefits not included above and charged to :
( in Crores)
st st
Particulars 31 March 2020 31 March 2019
Capital Work in Progress / Expenditure During Construction
Salaries and wages 19.97 (0.36)
Company's contribution - provident fund & other funds 2.72 1.03
Staff Welfare expenses 0.88 0.56
Total 23.57 1.23

30 Finance Costs ( in Crores)

Particulars For the year ended
31 March 2020 31st March 2019
st

Interest Expense on Financial Liabilities :

Foreign Currency Facilities 48.71 39.03
Bank loans and commercial papers* 1443.04 1,240.30
Others 18.32 1.25
Other borrowing costs 9.61 1.31
Total 1519.68 1,281.89

Note:
(i) In the case of Holding Co, Expenditure on Finance Cost not included above and charged to :
( in Crores)
Particulars 31st March 2020 31st March 2019
Capital Work in Progress / Expenditure During Construction
Interest - Banks 263.53 216.87
Interest on Lease Liability 4.47 0.00
Total 268.00 216.87
(ii) In case of general borrowings of Holding Co., the weighted average rate of borrowing cost for the year
2019-20 is 9.38% ( FY 2018-19 : 9.23%)

31 Depreciation and Amortisation Expense ( in Crores)

Particulars For the year ended
31st March 2020 31st March 2019
Depreciation of property, plant and equipment 1,108.83 1,049.41
Amortisation of intangible assets 2.71 23.36
Total 1,111.54 1,072.77

197
32 Other Expenses ( in Crores)
Particulars For the year ended
31st March 2020 31st March 2019
Consumption of stores and spare parts 1,168.71 874.54
Power and fuel (Refer note 32.1) 1,152.04 1,152.23
Repairs and maintenance (Refer note 32.2) 530.67 500.94
Remuneration to auditors 0.36 0.40
Rent 2.86 3.07
Rates and taxes 7.45 10.37
Insurance 21.09 18.00
Handling and scrap recovery 233.00 234.43
Freight outward 472.33 597.27
Research and development expense 0.49 0.22
Provisions
Shortage/damaged material/obsolescence/non-moving items of stores 8.59 6.36
Doubtful advances and claims 19.84 1.00
Doubtful Debts 1.86 5.42
Provision for Investments* 0.10 -
Non Recoverable Interest 0.01 0.59
Write-offs
Property, plant and equipment written off 2.96 1.24
Shortage /damaged material /obsolescence /non-moving items of stores - 0.01
Sundries 96.93 732.56
Net (Gain) /Loss arising on Financial instruments designated as FVTPL (86.33) (103.36)
Donation 4.47 3.65
Miscellaneous expenses (Refer note 32.3) 546.49 481.46
Total 4,183.94 4,520.40
Note:-
In respect of The Orissa Minerals Development Company Limited:-
(a) Compensation against Excess Mining:-
Pursuant to the Judgement of Hon'ble Supreme Court dated 02.08.2017, Dy. Director of Mines, Odisha had issued
different demand notices dated 02.09.2017, 23.10.2017 & 13.12.2017 to OMDC for OMDC Leases and to BPMEL for
BPMEL Leases towards compensation. The amount of Demand for OMDC Leases is 702.19 Crs and for BPMEL
Leases is 861.57 Crs, totalling 1563.76 Crs towards EC, FC and MP/CTO. OMDC had been operating BPMEL
Leases backed by Power of Attorney to sign and execute all mining leases and other mineral concessions from time to
time. OMDC has paid the compensation of OMDC Leases of 876.22 Crs towards OMDC Leases ( 14.80 Crs on
29.12.2017, 130.93 Crs on 16.11.2018, 6.93 Crs on 30.01.2019, 400.00 Crs on 01.03.2019, 1.00 Crs on 20.09.2019
and 322.56 Crs on 03.10.2019) in 2017-18, 2018-19 and 2019-20 out of its own fund of 566.22 Crs and borrowed fund
from Bank 310.00 Crs . OMDC has paid a sum of 27.15 Crs ( 25.15 Crs on 29.12.2017 and 2.00 Crs on 16.11.2018)
towards BPMEL Leases as advance. The remaining amount of compensation including interest upto 31.3.2020 against
BPMEL Leases amounting 1268.79 Crs are shown under Contingent Liability.
In case of Holding Co:
(i) Development expenditure is capitalized only if it can be measured reliably and the related asset and process are
identifiable and controlled by the Company.
(ii) Expenditure towards research and other development is accounted under the primary heads of account and is expensed
as and when incurred.
(iii) Capital Expenditure on Research and Development is included in the Intangible assets.
* The Board of Joint Venture Company RPTPL has directed to form a Joint Working Committee to expedite the process
for short closing of all contracts. Further the company has not prepared Financial Statements on the assumption of
Going Concern and the compay will not be able to do further any activity in near future. During the year 2019-20 holding
company's share in the losses of RPTPL exceeds its interest in RPTPL. In line with Para no. 38 of Ind AS 28, the
holding co. restricted its share in the losses to the interest in the RPTPL. Accordingly, carrying amount of investment of
holding co. in RPTPL has eroded. Consequently the provision created in the Standalone financials of holding co. has
been reversed in the consolidated financial statements.

198
32.1 Power and Fuel ( in Crores)
Particulars For the year ended
31 March 2020 31st March 2019
st

Purchased power 395.67 405.75

Coal 753.84 741.86
Furnace oil/ LSHS/ LDO 2.53 4.62
Total 1,152.04 1,152.23
Cost of Power and fuel does not include the cost of generation of power and production of certain fuel
elements in the plant of Holding Co. which are internally consumed. The related expenses have been
included under the primary heads of account.
32.2 Repairs and Maintenance ( in Crores)
Particulars For the year ended
31st March 2020 31st March 2019
Plant and Equipment 365.59 331.86
Buildings 31.18 34.55
Others 133.90 134.53
Total 530.67 500.94
32.3 Miscellaneous Expenses ( in Crores)
Particulars For the year ended
31st March 2020 31st March 2019
Technical services 33.39 9.49
Travelling expenses 74.08 69.63
Printing and Stationery 2.17 2.31
Postage and telephone 3.03 3.29
Water Charges 107.61 101.32
Legal expenses 6.98 8.60
Bank charges 12.08 10.61
Community Development Welfare 3.60 6.07
Security expenses 111.11 98.37
Entertainment expenses 1.90 1.99
Advertisement 6.74 21.35
Demurrages and wharfages 5.23 26.34
ISO Audit Expenses 0.23 0.14
Selling expenses 15.82 19.57
Exchange differences (Net) 162.52 102.38
Total 546.49 481.46

32.4 Details of Corporate Social Responsibility Expenditure ( in Crores)

Holding Co. Subsidiary
Particulars For the year ended For the year ended
31 st March 2020 31 st March 2019 31 st March 2020 31 st March 2019
(a) Amount required to be spent by the Company during the year Nil Nil 0.30 0.36
(b) Amount spent during the year
- Construction/ acquisition of any asset 0.00 0.00 0.00 0.00
- On purpose other than above 7.96 10.30 0.11 0.06
Total 7.96 10.30 0.11 0.06

199
32.5 In the case of Holding Co. Expenditure on Other expenses not included above and charged to :
( in Crores)
Particulars For the year ended
31st March 2020 31st March 2019
Capital Work in Progress / Expenditure During Construction
Power and fuel 1.60 -
Repairs and maintenance - Plant and equipment and others - -
Security expenses - -
Travelling expenses 1.15 0.94
Postage and telephone - -
Water charges 1.96 13.82
Advertisement - -
Total 4.71 14.76
32A Exceptional Items ( in Crores)
Particulars For the year ended
31 March 2020 31st March 2019
st

Liability towards GRID Support charges* 181.97

Write back of pension liabilities** (62.53)
Reversal of wages and salary*** (162.87)
Total 181.97 (225.40)
In case of Holding Co.:
* APERC passed the final order on 08-02-2002 for 181.97 Crores for Grid Support Charges on certain High
tension Consumers based on the proposal of APTRANSCO.

RINL challenged the said Order dated 08-02-2002 in High Court of AP in CMA No.1200 of 2002. CMA was allowed
in favour of RINL on 14.11.2003. APERC & APTRANSCO filed two separate suits vide Civil Appeal No. 1946/2004
& 1947/2004 in Supreme Court.

Supreme Court while disposing the case on 29.11.2019 maintained that the judgement and orders passed by the
High Court relating to wheeling charges and Grid support charges and that passed by the APTEL regarding
continuance of incentive as per GO MS dated 18.11.1997 and 22.12.1998 are set aside. The appeals are allowed,
and the orders passed by APERC are restored.

The Company has recognised this amount as a liability as on 31-03-2020 in its books of Accounts pending the
claim raised by APERC.

** The following note relates to FY 2018-19

Subsequent to the approval of the pension scheme of the company by Ministry of Steel ,the Board of Directors of
the Holding Company, keeping in view affordability and financial sustainability to pay by the Company, revised
pension benefits to 3% of Basic Pay + DA for Executives and 2% of Basic Pay + DA for Non-Executives in the year
of Loss and and 9% of Basic Pay + DA for Executives and 6% of Basic Pay + DA for Non-Executives in the year
of Profits. Accordingly the provision for pension has been reworked and an amount of 62.53 crore provided upto
st
31 March, 2018 has been written back during the current year and shown as exceptional item.

200
 Write back of PensionLiabilities Details: ( in Crores)

Executive Pension Non-Executive Pension Total

Pension to be
Pension To be Actual Excess(-)/ provided @ Actual Excess(-)/ Excess(-)/
Period provided @ 9% for Provided in Short (+) 6% for Profit Provided in Short (+) Short (+)
Profit years and 3% the books provision Years and 2% the books provision provision
for Loss years for Loss years

Jan' 2007 to 295.37 280.09 15.28 15.28

Mar'2018
Jan' 2012 to
Mar'2018 144.88 225.09 (80.21) (80.21)
Excess provision to be written off: (64.93)
Add: Amount transferred to EDC /CWIP 2.40
Net amount shown under Exceptional items. (62.53)
*** As per Department of Public Enterprise’s (DPE) guidelines, pay revision of executives and non- executive employees of
the company are subject to fulfilment of affordability and financial sustainability clause. The company made provision
for pay revision during the year 2018-19 taking into consideration the representations made by Employees’ Associations
of the Company to various Govt authorities including Administrative Ministry (Ministry of Steel) which in turn created
constructive obligation on the company as on 31.03.2018. However, subsequent to the clarification during the financial
year 2019-20 given by DPE vide Office memorandum dt. 10.1.2019 on the applicability of affordability clause exemption
from which could be obtained only by Cabinet approval, provision made towards salary revision of 162.87 crores for
executive and non executives employees during the year 2018-19, was been written back during the current year since
the said constructive obligation was no more existing as on 31.03.2019. The said write back was disclosed under
‘Exceptional Item’ in the P & L Account. In the opinion of the Company’s management no liability is envisaged on
account of the said pay revision on the date of this Balance Sheet.
33 (a) Statement of Compliance
These are the Group's consolidated financial statements prepared in accordance with IND AS.
The financial statements were authorized for issue by the Board of Directors on 04.09.2020.
(b) The Subsidiary Companies, Joint Ventures and Associate Companies considered in the
Consolidated Financial Statements are as Follows:
Name of the Company Ownership in % either Ownership in % either
directly or through directly or through Country of
Subsidiaries@ Subsidiaries@ Incorporation
2019-20 2018-19
A. Subsidiaries:
Eastern Investments Limited (EIL) 51.00 51.00 India
Subsidiaries of EIL:
1 The Orissa Minerals Development
Company Limited (OMDC) 50.01 50.01 India
2 The Bisra Stone Lime
Company Limited (BSLC) 50.22 50.22 India
The accounts of The Borrea Coal Company Ltd, another subsidiary and two associate companies namely The
Burrakur Coal Co. Ltd and The Karanpura Development Co. Ltd of EIL have gone into liquidation and official
liquidators have taken possession of all the Books and as a result, no account of the above said companies have
been prepared and considered in group Consolidated Financial Statements.

201
B. Joint ventures
RINMOIL Ferro Alloys Pvt. Ltd 50.00 50.00 India
RINL POWERGRID TLT Pvt. Ltd* 50.00 50.00 India
C. Associate
International Coal Ventures Pvt Ltd (ICVL) 25.94 25.94 India
*The Board of Joint Venture Company RPTPL has directed to form a Joint Working Committee to expedite the
process for short closing of all contracts. Further the company has not prepared Financial Statements on the
assumption of Going Concern and the compay will not be able to do further any activity in near future. During the
year 2019-20 holding company's share in the losses of RPTPL exceeds its interest in RPTPL. In line with Para no.
38 of Ind AS 28, the holding co. restricted its share in the losses to the interest in the RPTPL
34 Use of Estimates and Judgement
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment within the next financial year are included in the following notes:
Note 9 – utilization of tax losses
Note 35 – measurement of defined benefit obligations
Notes 20 and 40 – provisions and contingencies
35 Employee Benefits
A In case of Holding Co.
(i) a) Contribution to Superannuation Benefit Scheme
An amount of 39.84 Crore (31st March 2019: 6.93 Crore) recognised in the Statement of Profit and Loss
Account and 0.45 Crore (31st March 2019: 0.04 Crore) in Capital Work in Progress towards Superannuation
Benefit Scheme (Post Employment Benefit - Defined Contribution Plan).
b) Pension
The cumulative provision/liability towards pension benefit (Post Employment Benefit - Defined Contribution
Plan) for executive & non-executive employees, amounting to 462.89 Crore for FY 2019-20.
(ii) General description of the post employment benefits
a) Provident Fund
The holding co. pays fixed contribution to Provident Fund, at predetermined rates, to a separate Trust,
which invests the funds in permitted securities. On the contributions, the trust is required to pay a minimum
rate of interest, to the members, as specified by Government of India. The obligation of the holding co. is
limited to the shortfall in the rate of interest on the Contribution based on its return on investments as
compared to the declared rate.
The defined benefit plans expose the holding co. to actuarial risks, such as longevity risk, currency risk,
interest rate risk and market (investment) risk.
b) Gratuity
The holding co. has a defined benefit gratuity plan in India, governed by the Payment of Gratuity Act, 1972.
The Gratuity plan entitles an employee, who has rendered at least five years of continuous service, to
receive 15 days salary for each year of completed service at the time of retirement/ exit (In case of Holding
Co.). The defined benefit gratuity is fully funded by the holding co.. The funding requirements are based on
the gratuity fund's actuarial measurement framework set out in the funding policies of the plan. Employees
do not contribute to the plan.
c) Retirement Settlement Benefits
The retired employees, their dependents, as also the dependents of the employees expired of Holding Co.
while in service are entitled for travel and transport expenses to their place of permanent residence.

202
 d) Retirement Medical Benefits
Medical benefits are available to retired employees at the Holding Company's hospital/ under the health
insurance policy.
e) Farewell Scheme
Employees superannuating from the service of the Holding company shall be given 10 Gms of gold each.The
scheme shall cover all regular employees of the Holding company.
B In case of EIL
(i) Defined Contribution Plan
a) Provident fund: Company pays fixed contribution to Provident Fund at the rate of 12 % on Basic and
dearness allowance.
(ii) Defined Benefit Plans
a) Gratuity: Payable on separation @ 15 days pay for each completed year of service to eligible employees
who render continuous service of 5 years or more and maximum payable amount is calculated as per
Gratuity Act. The gratuity amount is not covered and the provision on account of gratuity is being made
as per the actuarial valuation.
These plans typically expose the group to actuarial risks such as actuarial risk, investment risk, interest
risk, longetivity risk and salary risk.
i. Actuarial risk: It is the risk that benefits will cost more than expected. This can arise due to one of the
following reasons:
Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will
result into an increase in Obligation at a rate that is higher than expected.
Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption
than the Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the
death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative
values of the assumed salary growth and discount rate.
Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate
assumption than the Gratuity benefits will be paid earlier than expected.The impact of this will depend on
whether the benefits are vested as at there signation date.
ii. Investment risk: For funded plans that rely on insurers for managing the assets, the value of assets
certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the
present value of the assets is independent of the future discount rate. This can result in wide fluctuations
in the net liability or the funded status if there are significant changes in the discount rate during the inter-
valuation period.
iii. Interest risk: A decrease in interest rate will increase the plan liability; however, this will be partially offset
by an increase in the return on the plan assets.
iv. Longevity risk: The present value of the defined benefit plan liability is calculated by refernce to the best
estimate of the mortality of plan participants both during and after their employment. An increase in the
life expectancy of the plan participants will increase the plan's liability.
v. Salary risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of plan participants. As such, an increase in the salary of the plan participants will increase the
plan's liability.
No other post-retirement benefits are provided to these employees.
The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation
were carried out as at March 31, 2020 by M/s. Kapadia Actuaries and Consultants, a firm with fellow of the
Institute of Actuaries of India. The present value of defined benefit obligation and the related current service
cost were measured using the projected unit credit method.
203
(iii) Other disclosures, as required under IND AS 19 on "Employee Benefits", in respect of post
employment defined benefit obligations are
- Gratuity ( in Crores)
Particulars 31st March 2020 31st March 2019

Reconciliation of present value of defined benefit obligation

Balance at the beginning of the year 1,453.65 1,424.52
Benefits paid (97.69) (79.78)
Current service cost 29.88 23.89
Past service cost - -
Interest cost 108.04 109.99
Actuarial loss/ (gain) on obligation 106.23 (24.98)
Balance at the end of the year 1,600.10 1,453.65
Reconciliation of the present value of plan assets
Balance at the beginning of the year 878.84 862.74
Contributions paid into the plan 3.10 35.40
Benefits paid (97.69) (79.78)
Expected return 66.43 59.84
Interest income - -
Actuarial gain/ (loss) on plan assets (3.09) 0.62
Balance at the end of the year 847.59 878.84
Net defined benefit liability (asset) 752.51 574.81
Expense recognised in profit and loss
Current service cost 29.88 23.89
Interest cost 41.66 50.19
Past service cost
Charged to P & L - -
Charged to Capital Work in Progress /
Expenditure During Construction - -
Interest income - -
Total 71.54 74.08
Remeasurements recognised in other comprehensive income
Actuarial (gain) / loss on defined benefit obligation 106.23 (24.98)
Difference between actual return and
interest income on plan assets - (gain)/loss 3.04 (0.66)
Total 109.27 (25.64)
Plan assets
Cash and cash equivalents 2.74 3.41
Funds managed by Insurer 844.85 875.43

204
- Retirement Medical Benefits ( in Crores)
Particulars 31st March 2020 31st March 2019

Reconciliation of present value of defined benefit obligation

Balance at the beginning of the year 473.85 449.74
Benefits paid (10.63) (7.44)
Current service cost 13.44 14.15
Interest cost 36.01 34.81
Actuarial loss/(gain) on obligation 100.48 (17.41)
Balance at the end of the year 613.15 473.85
Expense recognised in profit and loss
Current service cost 13.44 14.15
Interest cost 36.01 34.81
Total 49.45 48.96
Remeasurements recognised in other comprehensive income
Actuarial (gain) / loss on defined benefit obligation 100.48 (17.41)
Total 100.48 (17.41)

- Retirement Settlement Benefits ( in Crores)

Particulars 31st March 2020 31st March 2019

Reconciliation of present value of defined benefit obligation

Balance at the beginning of the year 54.82 47.41
Benefits paid (3.18) (2.94)
Current service cost 4.05 3.95
Interest cost 4.16 3.69
Actuarial loss/(gain) on obligation (11.76) 2.71
Balance at the end of the year 48.10 54.82
Expense recognised in profit and loss
Current service cost 4.05 3.95
Interest cost 4.16 3.69
Total 8.21 7.64
Remeasurements recognised in other comprehensive income
Actuarial (gain) / loss on defined benefit obligation (11.76) 2.71
Total (11.76) 2.71

205
- Farewell Scheme ( in Crores)
st st
Particulars 31 March 2020 31 March 2019

Reconciliation of present value of defined benefit obligation

Balance at the beginning of the year 41.05 40.32
Benefits paid (2.23) (1.52)
Current service cost 1.09 1.01
Interest cost 3.08 3.04
Actuarial loss/(gain) on obligation 8.36 (1.80)
Balance at the end of the year 51.35 41.05
Expense recognised in profit and loss
Current service cost 1.09 1.01
Interest cost 3.08 3.04
Total 4.17 4.05
Remeasurements recognised in other comprehensive income
Actuarial (gain) / loss on defined benefit obligation 8.36 (1.80)
Total 8.36 (1.80)
Actuarial assumptions in case of Holding Company
Principal actuarial assumptions at the reporting date (expressed as weighted averages):
Particulars 31st March 2020 31st March 2019
Discount rate 6.65% 7.57%
Rate of increase in compensation levels 7.00% 7.00%
Expected return on plan assets 6.65% 7.57%
Medical Inflation Rate 5.00% 5.00%
Actuarial Assumptions in case of Subsidiary Company
Particulars 31st March 2020 31st March 2019
Discount rate
- Eastern Investment Limited 6.85% 7.70%
- The Bisra Stone Lime Company Limited 6.25% 7.20%
- The Orissa Minerals Development Company Limited 6.45% 7.20%
Expected rate (s) of salary increase
- Eastern Investment Limited 5.00% 5.00%
- The Bisra Stone Lime Company Limited 5.00% 5.00%
- The Orissa Minerals Development Company Limited 5.00% 5.00%
Withdrawal Rate
- Eastern Investment Limited 3% at younger ages 3% at younger ages
reducing to 1% at older ages reducing to 1% at older ages
- The Bisra Stone Lime Company Limited 3% at younger ages 3% at younger ages
reducing to 2% at older ages reducing to 2% at older ages
- The Orissa Minerals Development 3% at younger ages 3% at younger ages
Company Limited reducing to 1% at older ages reducing to 1% at older ages
Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligation and current service cost by the amounts shown below:
206
- Gratuity ( in Crore)
st st
Particulars 31 March 2020 31 March 2019
Increase Decrease Increase Decrease
1. Effect of 0.5% Change in the assumed discount rate
- Defined benefit obligation (50.29) 53.60 (47.86) 51.04
- Current service cost - - 23.95 26.79
2. Effect of 0.5% Change in the assumed salary escalation rate
- Defined benefit obligation 24.40 (27.01) 23.58 (27.24)
- Current service cost - - 24.16 27.03

- Retirement Medical Benefits ( in Crore)

st st
Particulars 31 March 2020 31 March 2019
Increase Decrease Increase Decrease
1. Effect of 0.5% Change in the assumed discount rate
- Defined benefit obligation (43.24) 50.55 (36.89) 40.97
- Current service cost - - - -
2. Effect of 0.5% Change in the assumed medical inflation rate
- Defined benefit obligation 52.68 (49.19) 42.39 (38.62)
- Current service cost - - - -

- Retirement Settlement Benefits ( in Crore)

st st
Particulars 31 March 2020 31 March 2019
Increase Decrease Increase Decrease
Effect of 0.5% Change in the assumed discount rate
- Defined benefit obligation (1.38) 1.47 (1.60) 1.70
- Current service cost - - - -

- Farewell Scheme ( in Crore)

Particulars 31st March 2020 31st March 2019
Increase Decrease Increase Decrease
Effect of 0.5% Change in the assumed discount rate
- Defined benefit obligation (1.61) 1.84 (1.38) 1.54
- Current service cost - - - -

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does
provide an approximation of the sensitivity of the assumptions shown.
(iv) Provident Fund :
The Holding Co.'s contribution paid/ payable during the year to Provident Funds are recognised in the
Statement of Profit & Loss. The company's Provident Fund Trusts are exempted under section 17 of the
Employees' Provident Fund and Miscellaneous Provisions Act, 1952. The conditions for grant of exemption
stipulated that the employer shall make good, deficiency if any, in the interest rate declared by the Trusts vis-a-vis
statutory rate. The Company does not anticipate any further obligations in the near forseeable future having
regard to the assets of the funds and return on investment. This Note is to be read with Note No 35 (ii) (a).

207
36 Capital Management
The Group aims to maintain a strong capital base so as to maintain the confidence of investor, creditor
and market and to sustain future development of the business.
The Group monitors capital using a ratio of 'adjusted net debt' to 'adjusted equity'. For this purpose, adjusted
net debt is defined as total liabilities, comprising interest-bearing loans and borrowings and obligations under
finance leases, less cash and cash equivalents. Adjusted equity comprises all components of equity other than
amounts accumulated in the effective portion of cash flow hedges and cost of hedging, if any.
The Group’s adjusted net debt to equity ratio at the reporting dates were as follows: ( in Crores)
st st
Particulars 31 March 2020 31 March 2019

Total net debt 22,101.83 19,714.59

Less: Cash and Cash Equivalents 195.10 472.18
Adjusted net debt 21,906.73 19,242.41
Total Equity 3,235.49 7,349.18
Less: Cost of Hedging - -
Adjusted Equity 3,235.49 7,349.18
Adjusted Net Debt to Adjusted Equity Ratio 6.77 2.62
37 Earnings per share (not annualised)
Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the group
- by the weighted average number of equity shares outstanding during the financial year:

The calculations of profit attributable to equity shareholders and weighted average number of equity shares
outstanding for purposes of basic earnings per share calculation are as follows:
( in Crores)
Particulars 31st March 2020 31st March 2019

i. Profit/ (loss) attributable to equity shareholders ( in Crore) (3,956.49) (54.92)

ii. Weighted average number of Equity Shares
outstanding during the year 4,88,98,46,200 4,88,98,46,200
iii. Face value per share ( ) 10 10
Basic and Diluted EPS ( ) (8.09) (0.11)
The Holding Company does not have any potentially dilutive equity shares outstanding during the year.
38 Leases
In case of Holding Co.
Company as a Lessee
Other Informations:
1. Nature of Lease: The Company has entered into Long term lease which are as follows:
a) Land measuring 1.00 acre at Mumbai taken on Lease from CIDCO towards operation of stockyard for
storing and selling steel materials for a period of 60 years.

208
 b) Land measuring 40.47 acres at Rai Bareli from Indian Railways towards establishment of Forged Wheel
Plant for a period of 30 years.
c) Area Measuring 350.396 square meter in Multistorey Building taken on lease from M/s NBCC(India)
Limited for a period of 99 years.
2. Interest Expenses on Lease Liabilities for the year 2019-20 is 4.47 Crores (FY 2018-19 : NA)
3. Total Cash outflow for leases for the year 2019-20 is 5.14 Crores (FY 2018-19 : NA)
4. Restrictions or covenants imposed by leases,
a) Forged Wheel Plant Lease
- The lessee shall not create any lien or charge or encumbrance on the site except as permitted in
this Land Lease Agreement.
- After the expiry or termination of the Land Lease Agreemnt , the site should be handed over to the
Lessor.
b) Mumbai stockyard Lease - NIL
5. Sale and Lease back transactions.- NIL.
6. Future cash outflows that are not reflected in the measurement of lease liability - NIL
7. Lease liability outstanding as on 31.03.2020 50.93 Crores. Current maturities of lease liability is 0.72 Crores.
8. Maturity analysis of lease liability from 01.04.2020 (undiscounted)
( in Crores)
Particulars < 12 Months 01-05 Years Over 5 Years Total Cash Flow Carrying Amount

Lease Liability 5.14 25.68 87.31 118.13 50.93

Company as a Lessor
1. Nature of Lease: - The Company has given land on Operating lease basis to various agencies. The details
of major lease are as follows:
a) 149.25 acres of land allotted to Power Grid Corporation of India Ltd for installation of Grid & Staff Quarters
for a period of 33 years
b) 49.50 acres of land allotted to NTPC Ltd.(Simhadri) for Rai Road Corridor for a period of 99 years
c) 5.00 acres of land allotted to APIIC for Laying Water Pipeline for Pump House for a period of 33 years
d) 3.33 acres of land allotted to Gangavaram Port Ltd. For laying Railway Track for a period of 33 years
e) 9.27 acres of land alloted to M/s Air Liquide India Holding Pvt Ltd. For Construction of Air Separation
Plant (BOO basis) for a period of 18.5 years.
2. Lease Income during the year 2019-20 is 0.07 Crores (FY 2018-19: 0.07 Crores )
3. Income relating to variable lease receipts (not depending on index or rate) during the year 2019-20 is NIL
(FY 2018-19: NIL )
4. Risk Management strategy ie., Buy back agreements, Guaranteed residual value, variable lease receipts- NIL
5. Undiscounted lease receipts.
( in Crores)
Particulars < 12 Months 01-05 Years Over 5 Years Total Cash Flow

Lease Receipts 0.07 0.35 1.14 1.56

209
 39 Financial Instruments - Fair Values and Risk Management
A. Accounting Classifications and Fair Values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.
31st March 2020 ( in Crores)
Carrying Amount Fair Value

Particulars Other Other

Fair value Mandatorily financial financial Total
assets - liabilities -
hedging at FVTPL amortised amortised carrying Level 1 Level 2 Level 3 Total
instruments others cost cost amount
Financial assets measured
at fair value
Forward Contracts* 87.09 87.09
- 87.09 - - 87.09 - - - -
Financial assets not
measured at fair value
Security deposits* 380.93 380.93 -
Employee loans 42.98 42.98 -
Loans and advances 78.98 78.98 -
Trade receivables* 613.15 613.15 -
Accrued interest* 71.43 71.43 -
Cash and cash equivalents* 195.10 195.10 -
Other receivables* 122.61 122.61 - - - -
- - 1,505.18 - 1,505.18 - - - -
Financial liabilities
measured at fair value
Interest rate swaps - - - - - -
Forward exchange contracts - - - - - -
- - - - - - - - -
Financial liabilities not
measured at fair value*
Secured bank loans 17,261.17 17,261.17 - -
Unsecured bank loans 4,789.73 4,789.73 -
Commercial papers - - -
Accrued interest 114.01 114.01 -
Accrued income - - -
Trade payables 3,504.43 3,504.43 -
Security deposits received 113.49 113.49 -
Earnest money deposits 421.98 421.98 -
Claims payable - - -
Capital creditors 66.19 66.19 -
Other liabilities 2,887.21 2,887.21 - - -
- - - 29,158.22 29,158.22 - - - -

210
* The carrying amounts of these financial instruments recognized in the financial statements are a reasonable approximation of their fair values.
 31st March 2019 ( in Crores)

211
Carrying Amount Fair Value

Particulars Other Other

Fair value Mandatorily Financial Financial Total
Assets - Liabilities -
Hedging at FVTPL Amortised Amortised Carrying Level 1 Level 2 Level 3 Total
Instruments Others Cost Cost Amount
Financial assets
measured at fair value - - - - -
Forward Contracts* - -
- - - - - - - - -
Financial assets not
measured at fair value
Security deposits* 339.03 339.03
Employee loans 67.53 67.53
Loans and advances 99.80 99.80 - - - -
Trade receivables* 1,133.50 1,133.50
Accrued interest* 71.28 71.28
Cash and cash equivalents* 472.18 472.18 - - - -
Other receivables* 141.52 141.52
- - 2,324.84 - 2,324.84 - - - -
Financial liabilities
measured at fair value
Interest rate swaps - - - - - -
Forward exchange contracts - - - -
- - - - - - - - -
Financial liabilities not
measured at fair value*
Secured bank loans 15,098.64 15,098.64 - - - -
Unsecured bank loans 2,630.22 2,630.22
Commercial papers 1,985.73 1,985.73 - - - -
Accrued interest 7.38 7.38
Accrued income - -
Trade payables 2,590.64 2,590.64
Security deposits received 96.38 96.38
Earnest money deposits 376.02 376.02
Claims payable - -
Capital creditors 74.17 74.17
Other liabilities 3,140.61 3,140.61
- - - 25,999.79 25,999.79
* The carrying amounts of these financial instruments recognized in the financial statements are a reasonable approximation of their fair values.
B. Measurement of Fair Values
The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values for financial
instruments measured at fair value in the balance sheet, as well as the significant unobservable inputs used.
Significant Inter-relationship between
Type Valuation technique unobservable significant unobservable
input inputs and fair value
measurement
Forward exchange Forward pricing: The fair value is Not applicable Not applicable
contracts determined using quoted forward
exchange rates at the reporting date.
Interest rate swaps Swap models: The fair value is Not applicable Not applicable
determined using quoted swap
rates at the reporting date.
Financial liabilities Discounted cash flows:The valuation Not applicable Not applicable
model considers the present value
of expected payment, discounted
using a risk-adjusted discount rate.

C. Financial Risk Management

Risk Management Framework
The Group is exposed to various risk in relation to financial instruments. The Group's financial asset and
liabilities by category are summarised in note 39A. The main types of risks are market risk, credit risk and
liquidity risk.The Group’s risk management is coordinated at its headquarters, in close cooperation with the
board of directors, and focuses on actively securing the Group’s short to medium-term cash flows by minimising
the exposure to volatile financial markets. Long-term financial investments are managed to generate lasting
returns. The Group does not actively engage in the trading of financial assets for speculative purposes nor
does it write options. The most significant financial risks to which the Group is exposed are described below.
The Group has exposure to the following risks arising from financial instruments:
i) Credit Risk
ii) Liquidity Risk
iii) Market Risk
i) Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Group's receivables from customers and
loans.
The carrying amounts of financial assets represent the maximum credit risk exposure.
Trade receivables and loans
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the factors that may influence the credit risk of its customer base,
including the default risk associated with the industry in which customers operate.
Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable progressing
through successive stages of delinquency to write-off. Roll rates are calculated separately for exposures in
different segments based on the common credit risk characteristics.

212
Movements in the allowance for impairment in respect of trade receivables and loans
The movement in the allowance for impairment in respect of trade receivables and loans is as follows:
( in Crores)
Particulars 31st March 2020 31st March 2019
Balance at 1st April 23.31 23.46
Net measurement of loss allowance 0.48 (0.15)
Balance at 31st March 23.79 23.31

Cash and cash equivalents

The Group holds cash and cash equivalents of 195.10 Crs at 31st March 2020 (31st March 2019: 472.19
crore). The cash and cash equivalents are only held with highly rated banks.
Impairment on cash and cash equivalents has been measured on the 12-month expected loss basis and
reflects the short maturities of the exposures. The Group considers that its cash and cash equivalents have
low credit risk based on the external credit ratings of the counterparties.

Derivatives

The derivatives are only entered into with highly rated scheduled banks.
ii) Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation.
The Group aims to maintain the level of its cash and cash equivalents at an amount in excess of expected
cash outflows on financial liabilities (other than trade payables). The Group also monitors the level of expected
cash inflows on trade receivables and loans together with expected cash outflows on trade payables and
other financial liabilities.
In case of Holding Co.
Further in the current circumstances, the company is meticulously monitoring the payments to creditors,
vendors, employees dues, statutory dues, etc. and efforts are made to make the payments in time during the
lockdown period (due to COVID-19) also. Even in the year of crisis during the year 2019-20, the company
made the commited payments to the Financial Institutions and MSME units as per commitments. The company
also made arrangements with major creditors (PSU units) for deferment of payments whereas payments to
other small creditors are made in time.
To improve the liquidity position, the Company has availed the moratorium on payment of principal and
interest, deferred GST Payments as announced by the Government of India in view of the COVID - 19
pandemic. Company also achieved cash flow improvements by increasing the sales volume and collections
from May 2020 onwards.
Exposure to Liquidity Risk
The following are the remaining contractual maturities of long term financial liabilities at the reporting date.
The amounts reflect the principal amounts that are gross and undiscounted, and exclude the impact of
netting agreements.

213
In case of Holding Co.
31st March 2020 ( in Crore)
Contractual Cashflows
Particulars Carrying Total 12 months 1-2 Years 2-5 Years More than
Amount or less 5 years
Non-derivative financial liabilities
Secured bank loans 9,759.77 9,759.77 - 897.96 4,423.25 4,438.56
Unsecured bank loan - - - - - -
9,759.77 9,759.77 - 897.96 4,423.25 4,438.56
Derivative financial liabilities
Interest rate swaps - - - - - -
Other forward exchange contracts - - - - - -
- - - - - -

31st March 2019 ( in Crore)

Contractual Cashflows
Particulars Carrying Total 12 months 1-2 Years 2-5 Years More than
Amount or less 5 years
Non-derivative financial liabilities
Secured bank loans 9,309.26 9,309.26 - 613.71 3,370.96 5,324.59
Unsecured bank loan - - - - - -
9,309.26 9,309.26 - 613.71 3,370.96 5,324.59
Derivative financial liabilities
Interest rate swaps - - - - - -
Other forward exchange contracts - - - - - -
- - - - - -
Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur
significantly earlier, or at significantly different amounts.
iii) Market Risk
Market risk is the risk that results from changes in market prices – such as foreign exchange rates, interest
rates and equity prices – will affect the Group’s income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return.
The Group uses derivatives to manage market risks.
Currency Risk
The Group is exposed to currency risk to the extent that there is a mismatch between the currencies in which
sales, purchases and borrowings are denominated. The currencies in which these transactions are primarily
denominated is Indian Rupee ( ), which is also the company's functional and presentation currency.
The Group uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one
year from the reporting date.
Currency risks related to the principal amounts of the US dollar bank loan, which have been fully hedged using
forward contracts that mature on the same dates as the loans are due for repayment. These contracts are
designated as derivative contracts.
Interest Rate Risk
The Group aims to minimise its interest rate risk exposure by maintaining a balance of fixed/ floating rate of
interest.

214
 Exposure to Interest Rate Risk
The interest rate profile of the Group's interest-bearing financial instruments as reported to management is as
follows:
( in Crores)
Particulars 31st March 2020 31st March 2019
Fixed rate instruments
Financial assets 75.41 115.91
Financial liabilities 10,892.98 6,723.74
10,968.39 6,839.65
Variable rate instruments
Financial assets - -
Financial liabilities 11,157.91 12,990.82
11,157.91 12,990.82
Cash flow sensitivity analysis for variable-rate instruments
A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / (decreased)
equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign
currency exchange rates, remain constant. ( in Crores)
Profit or loss Equity, pre tax
Particulars
100 bp increase 100 bp decrease 100 bp increase 100 bp decrease
31st March 2020
Variable-rate instruments (111.57) 111.57 NIL NIL
31st March 2019
Variable-rate instruments (129.90) 129.90 NIL NIL
In the case of EIL
Financial Risk Management Objectives
The Company’s principal financial instruments comprise financial liabilities and financial assets. The Company’s
principal financial liabilities comprises trade payable and other financial liabilities. The main purpose of these
financial instruments is to manage short-term cash flow and raise finance for the Company’s capital expenditure
program. The Company has various financial assets such as trade receivable and cash and short-term deposits,
which arise directly from its operations.
Risk exposures and responses
The Company manages its exposure to key financial risks in accordance with the Company’s financial risk
management policy. The objective of the policy is to support the delivery of the Company’s financial targets
while protecting future financial security. The main risks that could adversely affect the Company’s financial
assets, liabilities or future cash flows are market risks, comprising commodity price risk, cash flow interest rate
risk and foreign currency risk and liquidity risk and credit risk. Management reviews and agrees policies for
managing each of these risks which are summarised below.
The Board of Directors reviews and agrees policies for managing each of these risks which are summarised
below.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. The Company's financial instrument Market prices comprise three types of risk:
currency risk, interest rate risk and other price risk which include equity price risk and commodity price risk.
Financial instruments affected by market risk include loans, trade receivables, other financial assets, trade
payables and other financial liabilities.
The sensitivity analyses have not been prepared as there is no amount outstanding as debt, having either fixed
or floating interest rates, no derivatives financial instruments and no financial instruments in foreign currencies.

215
Foreign Currency Risk Management
The Company does not undertake any transaction in foreign currency. Consequently, exposures to exchange
rate fluctuation does not arise. The Company has entered all the transaction in currency which is the functional
currency and accordingly the foreign currency risk has been minimised to a very low level.
Foreign currency sensitivity analysis has not been performed considering the fact that there will not be any
impact on the profit or loss of the Company, as there are no foreign currency monetary items.
Interest Rate Risk Management
Interest rate risk is the risk that the fair value or future cashflows of a financial instrument will fluctuate because
of changes in market interest rates. As the Company does not have any borrowings there is not a significant
exposure to the interest rate risk but only to the extent of recognition interest portion of financial instrument
classfied at amortised cost. The Company manages it interest risk exposure relating to the financial instrument
classified at amortised cost by using the market interest rate as the effective interest rate and the changes in
the assets liabilities is accounted for as interest income/expenses with respect to financial assets/financial
liabilities respectively.
However, as there is no primary exposure to the interest rate risk the sensitivity analysis has not been performed
by the Company.
Other Price Risks
The Company is exposed to other price risks which include equity price risk and commodity price risks. The
Company holds investment for strategic rather than trading purposes. The senstivity analysis on the profit due
changes in equity prices has been performed below:-
Equity Price Sensitivity Analysis
The Company’s listed and non-listed equity securities are susceptible to market price risk arising from
uncertainties about future values of the investment securities. The Company manages the equity price risk by
placing limits on individual and total equity instruments which is made subject to the approval of Board of
Directors. Reports on the equity portfolio are submitted to the Company’s senior management on a regular
basis. The Company’s Board of Directors reviews and approves all equity investment decisions. At the reporting
date, the exposure to unlisted equity securities was 4.20 Crs including investment in joint ventures at cost
amounting to 2.81 Crs. The sensitivity analysis based on the equity price risk at the end of the reporting
period for the investment in these equity securities other than investment in joint venture is given below:-
If equity price had been 5% higher/lower profit for the year ended March 31, 2017 would increase/decrease by
0.13 Crs (for the year ended March 31, 2016: increase/decrease by 0.07 Crs) as a result of change in the
fair value of equity instrument which have been classified as FVTPL.
Credit Risk Management
The Company trades only with recognised, credit worthy third parties and only on advance payment basis. It is
the Company’s policy that all customers who wish to trade are required to pay the entire amount in advance.
The Company does not perceive any risk of default as there is no instance of credit sale. In addition, receivable
balances are monitored on an ongoing basis, with the result that the Company’s exposure to bad debts is not
significant.
With respect to credit risk arising from the other financial assets of the Company, which comprise cash, bank
balances, short-term investments and other receivables, the Company’s exposure to credit risk arises from
default of the counterparty, with a maximum exposure equal to the carrying amount of these instruments.
Refer to Note 12 for analysis of trade receivables ageing.
Liquidity Risk Management
The Company has huge investment in term deposits with banks and has sufficient owned funds to finance its
existing and continuing commitments. New investments and advances are likely to be funded similarly. Major
capital investments, if any, would be funded by through the terms deposits and further requirement if any will
be addressed through the use of bank overdrafts and bank loans. The Company has deposited signficant
amount in term deposits and have sufficient funds required to meet the liquidity requirements of the Companny
and accordingly the Company has not applied for any short-term financing facilities during the FY 2015-16 and
FY 2016-17.
216
40 Contingent Liabilities and Commitments
Contingent Liabilities
A. Claims against Group not acknowledged as debts ( in Crores)
Particulars 31st March 2020 31st March 2019
Contractors/Suppliers/Customers
CPSE 89.42 60.67
Other than CPSE ^ 578.64 803.94
Local Authorities - State Govt. 1,994.88 1,701.91
Sales tax matters* 1,027.24 1,439.13
Income tax*** 137.48 137.55
Customs / excise duty 217.19 254.84
Others
CPSE - -
Other than CPSE 628.37 572.85
Total 4,673.21 4,970.89

In case of Holding Company, Contingent Liabilities as on 31.03.2020 are after considering a reduction of
378.97 Crs from balance as on 31.03.2019.
* No liability is expected to arise as the movement of goods were on stock transfer and sales tax is paid on
eventual sales.
*** In case of Holding Company, NIL for FY 2019-20 ( 36.24 Crs for FY 2018-19 reduced during the year
based on relief given by CIT(A)-9 Hyderabad vide common order dt.30.04.2019 for AY 2012-13 to AY 2014-
15 inline with IND AS-10)
^ In case of Holding Company, differential price as claimed by Central Coalfields Limited (CCL) for the indigenous
coking coal supplied during 13.01.2017 to 31.03.2017 amounting to 59.03 Crore being the amount billed
over and above MOU 2016-17 agreed prices has not been accounted for. Pending settlement of dispute, the
above liability has been treated as contingent liability.
B. Claims in Courts in connection with Land Acquisition:
Case filed by M/s Aquamarine before District Judge Court, Visakhapatnam claiming the ownership of 14.5
acres of land as referred in Note No. 3C (Holding Co.)
C. Show cause notices issued by various Government Authorities are not considered as contingent liabilities.
D. In the case of Eastern Investment Limited:-
a) Rent & Cess on Land Revenue:
Lawrence Jute Mill Co. Ltd was a company under the erstwhile BIRD & Co. Ltd. This Company had 76.77
Acre of land at Chackasi, Mouza- Bauria , JL No:4 in the P.S Bauria, Dist: Howrah, W.B acquired 27.58 Acres
of land in the year 1976 uner the provision of Sec 6(3) of WB States Acquisition Act 1953. The name of the
Jute Mill was subsequently changed to Lawrence Investment & Property Company Ltd w.e.f 09.12.1970. In
1984 Lawrence Investment & Property Company Ltd alongwith five other companies was dissolved and
amalgamated with EIL, a company under erstwhile BIRD Group , by virtue of order of the Company Law
Board under provision of Sec 396 of the Companies Act vide No: SO/688E dated 04.09.1984. By virue of this
order all properties and asset including rights and interest as well as liabilities of Lawrence Investment &
Property Company Ltd were vested in EIL. The change of name of the owner of the property from Lawrence
Investment & Property Company Ltd to EIL on the basis of the order of amalgamation has not yet been
effected, i.e the property is yet to be mutated in the name of EIL. The Company had continued to pay Rent
and Cess on Land Revenue on Lawrence Property at Bauria @ 2,012 per year till 31.03.2001 with the office
of the Revenue Inspector. The company though not accepted the substantial increase in such charges from
2001-02, continued to provide liability on the basis of claims received. In absence of any formal claim by the
concerned department, amount of such claim, if any, has neither been ascertained nor considered in the
accounts from the financial year 2008-09 onwards. Further letter ref No EIL/Lawrence Property/01 dated
217
 14-03-2018 has been issued to Block Land & Land Reform Office with a copy to higher authority, i.e. District
Land & Land Reform Office and to the next higher authority, i.e. Director of Land Records & Service. It has
been requested in the letter to provide the Land Tax dues by BL&LRO for payment by EIL and also requested
to consider the compensation for the land acquired by the Govt of WB which is yet to be received in accordance
with the judgement passed by Additional District Judge. Subsequently another letter dated 05-04-2018 issued
to Additional District Magistrate (LR) & DLLRO, Govt. of West Bengal with a copy to Principal Secretary and
Land Reforms Commissioner, Govt. of West Bengal to expedite the matter. Subsequently, information through
RTI Act has been sought on 11-Jun-18, wherein it has been asked the due Land Tax for 49.19 acres and
whether any notice for the same has been issued by the department. A reply was received on 28.06.2018 on
the RTI Application which states that “The matter of realisation of land revenue in case of subject land does
not arise and as such there is no question of raising demand of land revenue in respect of said land”.
(b) Stamp Duty on Share Transfer :
There is demand from Additional Commissioner of Stamp Revenue Govt of West Bengal for 0.59 Crs as
regards transfer of shares from President of India in The Orissa Minerals Development Company Ltd (OMDC)
and The Bisra Stone Lime Company Ltd (BSLC) to Eastern Investments Ltd (EIL) to make BSLC and OMDC
subsidaries of EIL.The transaction is exempted from Stamp duty and the same is communicated to Additional
Inspector General of Registration and Additional Commissioner of Stamp Revenue West Bengal vide Letter
No EIL/AS/STAMP DUTY/10-2012/01 dated 17th Oct 2012 by the authorised signatory of EIL. As there is no
response to the letter of the Company till date, the amount of 0.59 Crs is shown as contingent liability.
Further correspondence was made with the Dy. Secretary, Finance(Revenue) Dept., Govt. of W.B. on
23.02.2018 with a reminder on 11.04.2018.Subsequently, two letters were issued on 10.07.2018 and on
14.05.2019 but no response has been received till finalisation of this Balance Sheet.
(c) Income Tax :
Income tax demand in respect of A.Y. 2008 - 09, A.Y. 2009 - 10, A.Y. 2010 - 11 amounting to 0.63 Crs has
not been deposited as the cases are pending before the Assessing Officer of the Income Tax Department.
(P.Y. 0.69 Crs).
E. In the case of The Bisra Stone Lime Company Limited:-
(a) Sales tax related :
Demand of 0.93 Crs ( 0.93 Crs) in respect of Odisha Sales Tax and Odisha Entry Tax, challenged in
appeal against which a sum of 0.60 Crs ( 0.60 Crs) is deposited with the Sales Tax Authority, balance
0.33 Crs ( 0.33 Crs) remaining unpaid.
(b) Stamp Duty related :
Demand towards stamp duty amounting to 99.42 Crore have been received from Sub-Divisional Magistrate,
Sundargarh, as per provision of Indian Stamp (Odisha Amendment) Act 2013, however all the demands
raised under the said Act has been stayed by The Hon’ble Orissa High Court vide its order dated 12 th July
2013. Subsequently in the F.Y. 2015-16 Sub-District Magistrate, Sundargarh, has raised a demand as per
Indian Stamp (Odisha Amendment) Act 2012 for the mine lease period up to 31/03/2020, which has been
duly paid by the Company. Since the matter is sub-judice and subsequently new demand was raised by the
same authority, provision of original stamp duty have not been made.
(c) Provident Fund related :
Provident Fund Claim of 1.03 Crore which is as per letter dated 21.08.2014. Regional Provident Fund
Commissioner has raised a demand of 1.03 Crore towards differential Provident Fund contribution, being
the difference between 12% & 10% for the period from September, 2009 to October, 2010 u/s 7A & 7Q of
Employees Provident Fund & Miscellaneous Provisions Act, 1952 on the ground that contribution rate of 12%
is applicable instead of 10%, since the Company had reported profit in the year 2009-10. The Company had
declared surplus in the year 2009-10, as a result of waiver of accumulated interest on Government Loan in
terms of approved Capital Restructuring Scheme. The profit being notional and not supported by any cash
inflow, the demand has been contested before the Honourable High Court of Odisha. Subsequently, as per
the directives of The Employees Provident Fund Appellate Tribunal, New Delhi vide its Order reference ATA
No.286 (10) 2014 dated 03-04-2014 a Bank Guarantee was issued on for 30.93 Lakhs favoring Regional
Provident Fund Commissioner, Rourkela.

218
(d) Bank Guarantee :
Bank Guarantee issued on behalf of the Company 8.88 Crore (P.Y. 8.58 crore).
Term Deposits with Scheduled Banks disclosed under Cash and Bank balances (Note 13.00) are pledged
with bank against 100% Margin Money towards Bank Guarantees as detailed below:
Amount Reason Favouring
Date ( in Crore)
2019-20 2018-19
01.09.2014 0.15 0.15 Demand Notice by PFAT towards PF dues u/s APFC, ROURKELA
14-B of EPF Act, 1952 for the period from
03/2003 to 09/2007, for delay.
23.09.2014 0.31 0.31 Demand Notice by RPFC, ROURKELA towards RPFC, ROURKELA
differential 2% PF dues u/s 7-A of EPF Act,
1952 for the period from 06/2009 to 10/2010,
due to notional profit during 2009-10.
12.03.2018 8.13 8.13 Scheme of Mining including progressive mining
Regional Controller of Mines, Indian
Bureau of Mines, Bhubaneswar.
18.02.2020 0.30 - Scheme of Mining including progressive mining Regional Controller of Mines, Indian
Bureau of Mines, Bhubaneswar.
(e) The Company has received a show cause notice for 40.90 Crore form Deputy Director of Mines, Rourkela
for illegal and excess mining during the period 2000-01 to 2010-11.
(f) Non-Provisioning of Interest amounting to 0.71 Crore (P.Y. 1.37 Crore) towards award decided by various
courts against creditors of the Company.
(g) As informed to us, the Company BSLC has taken measures to ensure legal compliances and filing the annual
legal compliance report. The annual legal compliance report is placed before the Board for review. Further,
reports on the progress of Arbitration cases are put up for information. Moreover, an internal reporting
system has been introduced to indicate the progress of cases in various Courts along with their status from
time to time. The age-wise analysis of pending cases is given below.
High Court Other Courts Tahsildar, Birmitrapur
Year No. Year No. Year No.
1996 1 1990 2 2010 1
2000 1 1991 1 2011 2
2001 1 2003 1 2019 14
2002 0 2007 1
2003 2 2008 6
2009 2 2009 1
2013 2 2013 0
2014 1 2014 0 2nd Civil Judge.
2015 1 2017 2 Sr. Division, Barasat, Kolkata
2017 2 2018 12 Year No.
2018 1 2019 8 2016 1
Regional Labour Commissioner, Revision Authority Ministry of Mines, CGIT, Cum Labour
Rourkela Delhi Court, Bhubaneswar
2014 1 Year No. Year No.
2015 1 2015 1 2004 1
2009 1
Supreme Court of India 2014 2
2018 1

219
F. In the case of The Orissa Minerals Development Company Limited:-
(a) Arbitration:
Arbitration Cases include 3.21 Crs Claims of contractors for supply of materials/services pending with
arbitration/courts which have arisen in the ordinary course of business. The Company reasonably expect that
these legal actions when ultimately concluded and determined will be in favour of the Company and will not
have material adverse effect on the Company's results of operation or financial position.
(b) Bank Guarantee is given to Indian Bureau of Mines 74.17 Crs.
(c ) For Demand from various statutory authorities towards income tax, sales tax, excise duty, custom duty,
service tax, entry tax and other government levies for 2.37 Crore and 0.26 Crore respectively. The Company
is contesting the demand at appellate authorities. It is expected that the ultimate outcome of these proceedings
will be in favour of the Company and will not have any material adverse effect on the Company's financial
position and results of operation.
(d) Pursuant to the amendments of the Orissa Land Reforms Act, the Sub-Collector, Champua had served a
Notice against the Company for alleged unauthorized possession of 10.79 acres of leasehold land on the
ground that the said land belongs to Adivasis and based on that, the Revenue Inspector asked OMDC to
vacate the land. The Company filed an appeal before the Addl. District Magistrate but the appeal was not
allowed. During April, 1999 the Company filed a writ application and obtained Stay Order from the Hon’ble
High Court of Orissa to maintain the status quo about the possession of the land until further order. No
specific liability could be ascertained.
(e) Out of the Total Claim of Odisha Govt. demand for BPMEL Leases with interest amounting 1268.79 crore (PY
1067.98 crore) have been shown in contingent liability as the cases are pending in different courts of law.
Commitments ( in Crores)
st st
Particulars 31 March 2020 31 March 2019
Estimated amount of contracts remaining to be executed on
capital account and not provided 1,640.18 2,909.13
Total 1,640.18 2,909.13

Others :
1. (i) Holding Co.,Rashtriya Ispat Nigam Limited ("RINL") and Air Liquide India Holding Private Limited ("ALIH")
entered into a Contract dated 26 November 2010 for supply of Oxygen and Nitrogen gases and liquids for
captive consumption of RINL on a build, own and operate basis ("BOO") with an option to transfer.The production
facility envisaged to be installed and commissioned by ALIH consisted of two air separation units, each of 850
TPD capacity. The contractual time for completion of the entire scope of work was 28 months for the first ASU
along with common facility and 30 months for second ASU from the date of the receipt of the letter of acceptance
i.e. 6 July 2010. Vide letter dated 16 December 2014, ALIH terminated the contract and proposed to transfer the
ownership of ASU plant to RINL subject to payment of around 455 Crores. Thereafter, RINL vide its letter
dated 6 January 2015, rejected the termination of the Contract by ALIH and called upon ALIH to perform its
obligations under the BOO Contract. However, since ALIH did not withdraw the termination notice, RINL was
compelled to agree for in principle takeover of ASP from ALIH subject to inter alia, technical audit of the ASP.
Post the termination of the BOO Contract, several meetings and exchange of correspondences between
RINL and ALIH took place in relation to the modalities for the takeover of the ASP by RINL. However, the
parties could not agree on the final terms of the takeover. Because of the failure of the negotiations primarily
due to unreasonable conduct of ALIH, RINL was compelled to invoke arbitration under Clause No. 32 of the
Contract dated 26 November 2010.
The Arbitral Tribunal, which was constituted, issued the First Partial Award (Liability) on 12 June 2020. The
Arbitral Tribunal has ruled that the ASP BOO Contract was validly terminated by ALIH’s Termination Notice
dated 16 December 2014. The ASP BOO will be transferred by ALIH to RINL (“Takeover”) at a price (“the
Takeover Price”) and on terms to be determined by the Arbitral Tribunal in a further Award.

220
2. In the case of The Bisra Stone Lime Company Limited:-
(a) Term Deposits with Scheduled Banks disclosed under Non-current other financial assets (Note 8) and Cash
and cash equivalents (Note 13) are pledged with bank against 100% Margin Money towards Bank Guarantees
(b) Provision for Royalty amounting to 0.94 Crore is lying for more than 13 years which was created in the year
2005-06 against shortage of Stock which was found on Physical Verification. In absence of any details/
confirmation genuineness of this liability is doubtful in nature.
(c) The Company has right to mine 270.832 hectare of land till March, 2020. It has already mined 243.386
hectare of land till January 2015. As per the Mineral Conservation and Development Rules 2017, the Company
has given financial assurance in form of bank Guarantee of 8.13 Crore in regard to Progressive Mine
Closure Plan and final closure plan. The Company had provided for Mine Closure Plan for 8.13 Crore till
March 2020 . [P.Y 7.71 Crore.]
(d) The Company is not in a position to pay any monthly installment towards repayment of principal due to
financial crisis. Aggregate amount of principal falling due for payment but remaining unpaid as at the year-
end is 11.99 Crore ( 10.49 Crore). The Company could not repay interest since June 2013. The holding
company EIL a Non Banking Financial Company declared the entire loan as Non Performing Asset as on 30th
Sep 2014 and stopped recognizing interest income thereon from October 2014. The Company has requested
EIL to waive the loan amount as well as interest thereon in view of poor financial status of the company. The
amount in default towards repayment of interest as at the year-end is 7.45 Crore ( 6.51 Crore). The above
balances of loan & interest from EIL are subject to confirmation.
(e) As per Tripartite Memorandum of Settlement dated 30th December 2009 with Recognised Workmen’s Union
and Regional Labour Commissioner, the wage revision is due from 1st January 2012. However, in view of
Office Memorandum of Department of Public Enterprise Nos.2(11)/96-DPE(WC)-GL-1 dated 11th February
2004 and 2(70)/08-DPE(WC) dated 26th November 2008 the Company is barred to carry out wage revision
due to recurring losses, negative worth and inability to pay incremental wages out of its own sources. In view
of the above, no provision on account of pay revision has been made in the accounts. The possibility of wage
revision being remote, the same is not considered even as Contingent Liability.
(f) The Company pursuant to approval of Environmental Clearance from competent authority for enhancement
of its annual production capacity from 0.96 MTPA to 5.26 MTPA, has received a total outlay plan of 5.50
Crore towards cost of implementation of site specific wild life conservation. The Company, as a matter of
prudence has made necessary provision in the books of account accordingly.
(g) The Company has received an order from Hon’ble High Court of Odhisa in case of O.J.C. No. 9561/2000 BSL
Co. Ltd Vs Daharu Oram & Others related to eviction proceedings over 2.33 acers of land. As per the said
order the Company have to pay balance amount of 0.13 crores to the legal heir of the deceased claimant for
1.48 acres of land over which Executive Director’s Bungalow has been constructed and to vacate the remaining
0.85 acres of vacant Land.
The Company has approached to OSD (LR) Rourkela to intimate the details of legal heirs to whom compensation
is to be paid. In absence of details of present legal heirs, the company has neither provided any liability for
payment of compensation nor has any addition been made to the asset under the head Land. However this
is not going to affect the actual loss of the company for the year.
(h) Balance Confirmation (BSLC)
The Company has a system of sending request letters to all debtors and creditors for confirming their balance
as appearing in the books of the Company with a remark that unless the reply is received within a cut-off date,
the balance intimated will be treated as confirmed by the debtors/creditors. However during the year only
some written confirmation was received from any of such parties. In the opinion of the management and to
the best of their knowledge and belief, the receivable or payable values of the assets or liabilities in the

221
 ordinary course of business will not be less than the amounts at which they are stated in the Balance Sheet.
There are balances both debit and credit lying for more than 3 years under the heads of Trade Receivables,
Trade Payables and other current and non-current liabilities and assets and Loans & Advances. The company
is not in a position to confirm the actual realisability of assets and genuiness of liability to pay as no written
confirmation from any of the party is available.
(i) Term Deposit (BSLC)
Term Deposits with Scheduled Banks disclosed under Cash and Bank balances (Note 13.00) are pledged
with bank against 100% Margin Money towards Bank Guarantees as detailed below:

Amount Reason Favouring

Date ( in Crore)
2019-20 2018-19
04-06-2013 0.83 0.83 Scheme of Mining including Regional Controller of Mines,
Progressive Mines Closure Plan, Indian Bureau of Mines,
Bhubaneswar.
01-09-2014 0.15 0.15 Demand Notice by PFAT towards
PF dues u/s 14-B of EPF Act, 1952 APFC, ROURKELA
for the period from 03/2003 to
09/2007, for delay.
23-09-2014 0.31 0.31 Demand Notice by RPFC, ROURKELA
towards differential 2% PF dues u/s RPFC, ROURKELA
7-A of EPF Act, 1952 for the period
from 06/2009 to 10/2010, due to
notional profit during 2009-10.

(j) Regional Provident Fund Commissioner has raised a demand of 1.03 Crores towards differential Provident
Fund contribution, being the difference between 12% & 10% for the period from September, 2009 to October,
2010 u/s 7A & 7Q of Employees Provident Fund & Miscellaneous Provisions Act, 1952 on the ground that
contribution rate of 12% is applicable instead of 10%, since the Company had reported profit in the year
2009-10. The Company had declared surplus in the year 2009-10, as a result of waiver of accumulated
interest on Government Loan in terms of approved Capital Restructuring Scheme. The profit being notional
and not supported by any cash inflow, the demand has been contested before the Honourable High Court of
Orissa. Subsequently, as per the directives of The Employees Provident Fund Appellate Tribunal, New Delhi
vide its Order reference ATA No.286 (10) 2014 dated 03-04-2014 a Bank Guarantee was issued on for 0.31
Crore favoring Regional Provident Fund Commissioner, Rourkela.
(k) The Company has not received intimation from vendors regarding their status under Micro, Small and Medium
Enterprises Development Act, 2006 and hence disclosure relating to amounts unpaid as at the end of the
year together with interest payable under this Act could not be given.
(l) The Company has substantial carried forward losses and unabsorbed depreciation under the Income Tax
Act, 1961 and accordingly Deferred Tax Asset of 5.70 Crore (previous year 12.89 Crore) has arisen as on

222
 31st March 2019. However, as per AS-22 and in consideration of prudence, the Deferred Tax Asset has not
been recognised in the financial statements owing to uncertainty of the availability of sufficient taxable income
in future against which such Deferred Tax Assets can be realised.
(m) The COVID-19 pandemic has adversely impacted the economy and business. Supply Chain disruptions in
India as a result of the outbreak started with restrictions on movement of goods, closure of borders etc., in
several states followed by a nationwide lockdown to stem the spread of COVID-19. Due to this, the operations
of mining and extraction along with supply and distribution got temporarily disrupted.
In light of these circumstances, the Management has evaluated the impact on the carrying amounts and
recoverability of its assets including financial assets, inventory, property plant and equipment, Intangibles etc.
as at the balance sheet date, and has concluded that there are no material adjustments required in the
financial statements. Management believes that it has taken into account all the possible impact of known
events arising from COVID 19 pandemic in the preparation of the financial statements upto the date of
approval of accounts.
However, the impact assessment of COVID 19 is a continuing process given the uncertainties associated with
its nature and duration. The Company will continue to monitor any material changes to future economic
conditions.
(n) The company is not regular in repaying principal amount of term loan and interest thereon to its holding
company Eastern Investments Ltd. (EIL). The company was accomodated with a loan to tide over financial
crisis due to closure of the mines for some period during 2011-12. As per the terms, principal is repayable
after one year from the resumption of mining operations in 120 equal monthly installments. Simple interest on
the loans is payable on monthly basis but RBI interest rates prevailing on the date of disbursement for the
year of disbursement and thereafter for subsequent years at the prevailing RBI interest rates as on 1st April of
that year. The loan was disbursed during 2012-13 on different dates aggregating to 13.75 Crores and also
in April 2013 for 1.25 Crores. Effectively principal repayment falls due from April 2013 in respect disbursements
during 2012-13 and from May 2013 for disbursement in April 2013.
o) The company has incurred loss of 11.21 Crores for the year ended 31st March 2020 and accumulated loss
as on 31st March 2020 is 243.01 Crores which is in excess of the entire Net Worth of the company. Presently,
the company is incurring this loss due to excess employee cost. Further, the company believes that they will
be able to recover such loss once there will be the substantial improvement in market scenario considering
the above improvements in the market scenario the company expects that there will be a favourable impact
on the company's operations and the Financials in the future. Hence, company has prepared the Financial
results on the basis of "Going Concern" assumption. Moreover BSLC has done a revival plan by M/s Mecon
Ltd. to inject more fund to the company by obtaining bank's loan and from internal support of RINL to continue
as going concern.
3. In case of The Orissa Minerals Development Co. Ltd :-
(a) Term Deposits with Scheduled Banks of 23.56 crore(PY: 22.81 Crore) disclosed under Cash and cash
equivalents (Note 13) are pledged with bank against Bank Guarantees for IBM Bhuwaneswar for scheme of
mining including progressive mines closure plan.
(b) Due to non-renewal of mining leases in the name of the Company, there are no operations carried out by the
Company relating to mining activities.

223
LEASE STATUS
OMDC LEASES :
1. Bagiaburu Iron Ore Mines (21.52 Ha.)
Requirement Status
Reserve (in Million Tonne) Iron-4.907
Renewal of Mining Lease Period of 1st RML from 01.10.1980 to 30.09.1990
Period of 2nd RML from 01.10.1990 to 30.09.2010
Period of 3rd RML from 01.10.2010 to 30.09.2030, applied on 10.08.2009.
Extension order of the Bagiaburu mining lease validity period upto 10.10.2021 has
been received from Govt. of Odisha on 06.02.2020.
Govt. of Odisha extended another 3 months time for execution of supplementary
lease deed up to 06.08.2020 vide letter dated 14.05.2020.
Forestry Clearance(FC) Stage-I FC compliance of Bagiaburu mines has been forwarded from PCCF,
Bhubaneswar to Regional MoEF, Bhubaneswar on 29.05.2020 for obtaining Stage-II
forest clearance of Bagiaburu mines. DIGF (Central), MoEF, Bhubaneswar visited
Bagiaburu mines on 10.06.2020.
Environment ToR was issued on 09.03.2020 by MoEF & CC.
Clearance(EC) OMDC submitted ToR along with EIA & EMP report to the State Pollution Control
Board (SPCB), Odisha on 16.03.2020.
Letter has been sent through e-mail on 07.05.2020 from SPCB, Odisha to Collector,
Keonjhar for fixation of date and venue for conducting Public Hearing (PH).
Referring to the SPCB’s letter, OMDC also submitted a letter to Collector, Keonjhar
on 12.05.2020 for conducting PH.
Date and venue for conducting Public Hearing (PH) is awaited.
Mining Plan Mining Plan for the period from 01.04.2020 to 31.03.2025 was approved by IBM on
06.01.2020.
Site Specific Wild Life Conservation Plan. Granted on 05.02.2011 for a period of 10 years
Consent to Establish Not available.
Consent to Operate Not available.
2. Bhadrasahi Iron & Manganese Ore Mines (998.70 Ha.)
Requirement Status
Reserve (in Million Tonne) Iron-73.95, Manganese-11.94
Renewal of Mining Lease Period of 1st RML from 01.10.1960 to 30.09.1980
Period of 2nd RML from 01.10.1980 to 30.09.1990
Period of 3rd RML from 01.10.1990 to 30.09.2010
Period of 4th RML from 01.10.2010 to 30.09.2030, applied on 10.08.2009.
Extension order of the Bhadrasahi mining lease validity period upto 30.09.2030 has
been received from Govt. of Odisha on 06.02.2020.
Govt. of Odisha extended another 3 months time for execution of supplementary
lease deed up 06.08.2020 vide letter dated 14.05.2020.
Mines operated up to 30.09.2010
Forestry Clearance(FC) Available up to 30.09.2010 for an area of 702.053 Ha. Applied on 22.09.2009 for
forest area 877.310 Ha.
Proposal submitted offline returned by DFO, Keonjhar on 07.12.2019. DFO suggested
for on line submission of forest diversion proposal including Sabik forest land, and
modified DGPS Map.
Sabik land records has been submitted to Tahsildar, Barbil. After due verification of
records by Tahsildar, Barbil a report has been submitted to DFO, Keonjhar.
A demand notice has been received for payment of NPV of 3.65 Crore towards
50.02 Ha. Sabik Forest Land.
Payment will be deposited after uploading of necessary documents. Accordingly, DGPS
survey will be conducted and consequently online submission will be made.

224
 Environment EC proposal was apprised before EAC on 22.05.2019 at MoEF& CC. As per the
Clearance(EC) minutes 9 points were to be complied by OMDC.
Compliance of all the points of observation of EAC is prepared except (i) Submission
of R&R details along with action plan (ii) Certificate from local DFO that mining activity
was not carried out in the non-diverted forest land.
Action taken:-Preparation and approval of R&R plan is under process by consultant.
An inspection has been conducted by Forest range Officer and Tahsildar, Barbil for
sabik forest land in Bhadrasahi mines on 29.05.2020.
The inspection report will be submitted to DFO, Keonjhar for issuance of certificate
by DFO, Keonjhar regarding mining activity not carried out in non diverted forest land
for obtaining ToR.
EIA study by the consultant is completed on 31.12.2019. EIA & EMP report will be
submitted to OSPCB after obtaining formal ToR from MoEF & CC.
Mining Plan Mining Plan was valid up to 31.03.2025.
Site Specific Wild Life Conservation Plan. Granted on 30.09.2014 for a period of 10 years.
Consent to Establish Not available.
Consent to Operate Not available.
3. Belkundi Iron & Manganese Ore Mines (1276.79 Ha.)
Requirement Status
Reserve (in Million Tonne) Iron-20.017, Manganese-12.269
Renewal of Mining Lease Period of 1st RML from 16.08.1956 to 15.08.1986
Period of 2nd RML from 16.08.1986 to 15.08.2006.
Period of 3rd RML from 16.08.2006 to 15.08.2026, applied on 12.08.2005.
Extension order of the Belkundi mining lease validity period upto 15.08.2026 has
been received from Govt. of Odisha on 03.02.2020.
Govt. of Odisha extended another 3 months time for execution of supplementary
lease deed up to 03.08.2020 vide letter dated 14.05.2020.
Mines operated up to 09.12.2009.
Forestry Clearance(FC) Available for 2nd RML period for an area of 384.54 Ha. Applied on 31.08.2005 for
forest area 448.276 Ha. Proposal submitted offline returned by DFO, Keonjhar on
07.12.2019. DFO suggested for on line submission of forest diversion proposal
including Sabik forest land, and modified DGPS Map.
Sabik land records has been collected from Settlement Office, Keonjhar and
submitted to Tahsildar, Barbil. After due verification of records by Tahsildar,
Barbil a report will be submitted to DFO, Keonjhar.
Accordingly DGPS survey will be conducted and consequently online submission will be made.
Environment ToR was issued on 25.05.2020 by MoEF & CC
Clearance(EC) ToR along with EIA & EMP report to be submitted to the State Pollution Control Board
(SPCB), Odisha.
Mining Plan Mining Plan was approved on 19.02.2019. Valid up to 31.03.2021.
Site Specific Wild Life Conservation Plan. Mining Plan was approved on 19.02.2019. Valid up to 31.03.2021.
Consent to Establish Not available.
Consent to Operate Not available.
4. Status of Brahmani Coal Block, Dist: Dhenkanal, State-Odisha.
Status of Block Detail Exploration being continued by CMPDIL
Reserve 58.90 Million Tonnes as per Regional Exploration.
Area 13.20 sq. Km
Date:- Event Description
21.07.2016 Approval of MOC for commercial Mining in Brahmani Coal Block .
04.09.2017 Signing of Agreement with Ministry of Coal, Govt. of India for Coal Block Development
and Production
20.03.2018 Notification U/s 4(1) of the CBA (A&D) Act, 1957 was issued by MOC.
Hence PL granted for prospecting of Coal.
20.11.2018 Work order issued to CMPDIL for Exploration, Preparation & Submission of Geological
Report

225
02.01.2019 Deposit of 13,46,050 at ORSAC for DGPS Survey of the block.
06.06.2019 DGPS Survey by ORSAC completed
10.05.2019 Exploration by CMPDIL commenced.10 Boreholes out of proposed 50 Boreholes
completed.
24.01.2020 Extension of work order up to 30th June 2020. During the period 06 Boreholes
completed.
21.05.2020 Request of CMPDIL for extension of contract up to 31st Dec. 2020 which is under
consideration.
11.06.2020 Availability of permission from DFO, Dhenkanal to drill in forest area
BPMEL LEASES : OMDC HAD BEEN OPERATING BPMEL LEASES BY VIRTUE OF POWER OF ATTORNEY.
MINING RIGHTS OF BPMEL LEASES ARE SUBJUDICE. THE STATUS OF BPMEL LEASES ARE AS FOLLOWS :-
1. Kolha-Roida Iron & Manganese Ore Mines (254.952 Ha.)
Requirement Status
Renewal of Mining Lease Period of 1st RML from 15.08.1956 to 14.08.1976
Period of 2nd RML from 15.08.1976 to 14.08.1996
Period of 3rd RML from 15.08.1996 to 14.08.2016
The 3rd RML application (15.08.1996 to 14.08.2016) was rejected by Govt. of Odisha
on 16.11.2006.
Revisional Authority set aside the impugned order.
Govt. of Odisha has challenged Revisional Authority’s Order in Cuttack High Court.
Forestry Clearance (FC) Applied on 13.12.2013 for forest area 207.096 Ha.
Proposal is pending at DFO, Keonjhar
Environment Clearance (EC) Available, obtained on 23.07.2012 for 3 MTPA Iron ore & 0.24 MTPA Manganese ore.
2. Dalki Manganese Ore Mines (266.77 Ha.)
Requirement Status
Renewal of Mining Lease Period of 1st RML from 01.10.1954 to 30.09.1974
Period of 2nd RML from 01.10.1974 to 30.09.1994
Period of 3rd RML from 01.10.1994 to 30.09.2014
The 3rd RML application (01.10.1994 to 30.09.2014) was rejected by Govt. of Odisha on
24.08.2006.
Revisional Authority set aside the impugned order.
Govt. of Odisha has challenged Revisional Authority’s Order in Cuttack High Court.
Forestry Clearance (FC) Applied on 17.09.2012 for forest area 232.936 Ha.
Proposal is pending at DFO, Keonjhar.
Environment Clearance (EC) Available, obtained on 11.09.2013 for 0.24 MTPA Manganese ore.
3. Thakurani Iron & Manganese Ore Mines (778.762 Ha.)
Requirement Status
Renewal of Mining Lease Period of 1st RML from 01.10.1954 to 30.09.1984
Period of 2nd RML from 01.10.1984 to 30.09.2004
Period of 3rd RML from 01.10.2004 to 30.09.2024
3rd RML pending.
3rd RML is awaited for approval from Department of Steel & Mines, Govt. of Odisha.
Applied on 10.11.2003 for forest area 402.899 Ha
Forestry Clearance (FC) Proposal is pending at DFO, Keonjhar
Environment Expert Appraisal committee (EAC) has recommended EC on 24.05.2012 for production
Clearance (EC) of 3 MTPA Iron ore and 0.06 MTPA Manganese ore subject to submission of Stage-1
Forestry Clearance and Site Specific Wild Life Management Plan. Stage 1 Forestry
Clearance was not submitted in due time.
Applied on 07.09.2017 as per MoEF guideline dated 14.03.2017. The next date of
appraisal before EAC shall be intimated by MoEF & CC.

226
 4. In case of International Coal Ventures Limited (ICVL) :-
ICVL has given Corporate guarantee to EXIM Bank on behalf of ICVL Mauritius, a wholly owned subsidiary of
ICVL to secure a short term working capital loan of US$ 30 million to meet working capital requirement of
Mozambique operations. The loan was taken in the FY 2015-16. The loan has been renewed for a period of two
years in December, 2017 and again renewed till July, 2020. Application for renewal for another two years is
under process with EXIM Bank.
41 Equity Accounted Investees ( in Crores)
Particulars Note 31st March 2020 31st March 2019
Interest in joint venture See (A) below 0.07 4.04
Interest in associates See (B) below 614.82 559.37
A. Joint Ventures
i) RIN MOIL Ferro Alloys Private Limited is a joint arrangement in which the Group has joint control and a 50%
ownership interets. It is principally engaged in the supply of ferro manganese and silico maganese. RIN MOIL
is structured as a separate legal entity and the Group has an interest in the net assets of the entity. Accordingly,
the Group has classified its interest in RIN MOIL as a joint venture. The company has not commenced
commercial operations.
The following table summarises the financial information of RINLMOIL Ferro Alloys Pvt Ltd and the carrying
amount of the Group’s interest in the entity.

( in Crores)
Particulars 31st March 2020 31st March 2019
Percentage ownership interest 50% 50%
Non-current assets 1.66 1.66
Curent assets (including cash and cash equivalents –
31st March 2020: 0.03 crore 31st March 2019: 0.02 crore) 0.04 0.03
Non-current liabilities - -
Current liabilities (Other financial liabilities) (1.55) (1.55)
Net assets 0.15 0.14
Group's share of net assets (50%) 0.07 0.07
Carrying amount of interest in joint venture 0.07 0.07

( in Crores)
Particulars 31st March 2020 31st March 2019
Revenue - -
Interest income 0.00 0.01
Depreciation and amortisation expense 0.00 0.01
Income tax expense - -
Other Expenses 0.01 0.01
Profit/(loss) (0.01) (0.01)
Other comprehensive income - -
Total comprehensive income (0.01) (0.01)
Group's share of profit (50%) (0.01) (0.00)
Group's share of OCI (50%) - -
Group's share of total comprehensive income (50%) (0.01) (0.00)

227
ii) RINL Powergrid TLT Private Limited (RPTPL) is a joint arrangement in which the Group has joint control and
a 50% ownership interest. RPTPL has been incorporated in the financial year 2015-16. It has been established
for setting up a transmission line tower manufacturing unit (including Research & Development). RPTPL shall
manufacture transmission line towers for supplying to various customers in India and abroad. The company
has not commenced commercial operations.
( in Crores)
st st
Particulars 31 March 2020 31 March 2019
Percentage ownership interest 50% 50%
Non-current assets - 8.30
Curent assets (including cash and cash equivalents –
31st March 2020 & 31st March 2019: 0.20 crore) 0.20 0.20
Share application money pending allotment - -
Current liabilities (including other current financial liabilities –
31st March 2020 & 31st March 2019: 0.56 crore) (0.56) (0.56)
Net assets (0.36) 7.94
Group's share of net assets (50%) (0.18) 3.97
Carrying amount of interest in the Joint Venture 3.97
RINL Share in RPTPL Losses restricted to its investments* (3.97) 3.97
Carrying amount of interest in the Joint Venture as on 31.03.2020 - 3.97

( in Crores)
Particulars 31st March 2020 31st March 2019
Revenue - -
Depreciation and amortisation expense 0.00 0.00
Interest income - 0.00
Interest expense - 0.00
Other Expenses 8.31 0.03
Income tax expense - 0.00
Profit/(loss) (8.31) (0.03)
Other comprehensive income - -
Total comprehensive income (8.31) (0.03)
Group's share of profit (50%) (4.15) (0.01)
Group's share of OCI (50%) - -
Group's share of total comprehensive income restricted
to its investment (50%)* (3.97) (0.01)

* Note: The Board of Joint Venture Company RPTPL has directed to form a Joint Working Committee to expedite
the process for short closing of all contracts. Further the company has not prepared Financial Statements
on the assumption of Going Concern and the compay will not be able to do further any activity in near
future. During the year 2019-20 holding company's share in the losses of RPTPL exceeds its interest in
RPTPL. In line with Para no. 38 of Ind AS 28, the holding co. restricted its share in the losses to the
interest in the RPTPL. Accordingly, carrying amount of investment of holding co. in RPTPL has eroded.
Consequently the provision created in the Standalone financials of holding co. has been reversed in the
consolidated financial statements.

228
B. Associates
International Coal Ventures Limited (ICVL) was set up as a special purpose vehicle for acquistion of coal
mines/ blocks overseas for securing coal supplies.

The following table summarises the financial information of ICVL and the carrying amount of the Group’s
interest in the entity.
( in Crores)
st st
Particulars 31 March 2020 31 March 2019

Percentage ownership interest 25.94% 25.94%

Non-current assets 2,614.78 2,370.98
Current assets (including cash and cash equivalents –
31st March 2020: 18.76 crore 31st March 2019: 18.25 crore) 69.27 83.53
Non-current liabilities (16.96) (17.00)
Current liabilities (current financial liabilities –
31st March 2020: 297.16 crore 31st March 2019: 281.33 crore) (297.26) (281.42)
Net assets 2,369.82 2,156.09
Group's share of net assets 614.82 559.37
Carrying amount of interest in associate 614.82 559.37

( in Crores)
st st
Particulars 31 March 2020 31 March 2019

Revenue - -
Depreciation and amortisation expense 0.11 0.11
Other income (10.52) (33.46)
Interest expense 89.57 107.46
Other Expenses incl. Exceptional items 14.67 40.10
Income tax expense - -
Profit/(loss) (93.83) (114.22)
Other comprehensive income 307.56 202.63
Total comprehensive income 213.73 88.41
Group's share of profit / (loss) (24.34) (29.63)
Group's share of OCI 79.79 52.57
Group's share of total comprehensive income 55.45 22.94

42 Non-Controlling Interests
The following table summarises the information relating to Group's subsidiary that has material NCI, before
any intra-group eliminations.

229
Eastern Investments Limited ( in Crores)
Particulars 31st March 2020 31st March 2019
NCI percentage 49% 49%
Non-current assets 264.85 288.25
Current assets 255.04 434.42
Non-current liabilities (22.96) (26.65)
Current liabilities (560.11) (670.52)
Net assets (52.85) (8.69)
NCI in subsidiaries books (10.33) 34.19
Net assets attributable to NCI (36.22) 29.93
Revenue 61.87 91.91
Profit (86.59) (478.97)
OCI (2.08) (0.49)
Total comprehensive income (88.67) (479.45)
Profit allocated to NCI (64.60) (357.03)
OCI allocated to NCI (1.55) (0.36)
Total comprehensive income allocated to NCI (66.15) (357.39)
Cash-flow from (used in) operating activities (82.52) (235.66)
Cash-flow from (used in) investing activities (80.51) (125.57)
Cash-flow from (used in) financing activities (11.25) (2.10)
Net increase (decrease) in cash & cash equivalents (174.28) (363.32)
43 Related Parties
A. List of Related Parties and Nature of Relationship
Name of the Related Party Nature of Relationship
RINMOIL Ferro Alloys Pvt Ltd Joint ventures
RINL Powergrid TLT Pvt Ltd Joint ventures
International Coal Ventures Pvt Ltd (ICVL) Associate
MINAS DE BENGA LIMITADA Joint Venture of ICVL
B-I. Key Management Personnel as on 31st March 2020
Name of the Related Party Nature of Relationship
Shri P K Rath Chairman-cum-Managing Director
Shri Kishore Chandra Das Director (Personnel)
Shri V V Venugopal Rao Director (Finance) & CFO
Shri Deb Kalyan Mohanty Director (Commercial)
Shri Kanak Kumar Ghosh Director (Projects)
Shri Ajit Kumar Saxena Director (Operations)
B-II. Independent Directors as on 31st March 2020
Name of the Related Party Nature of Relationship

Shri Ashwini Mehra Independent Director

Dr. Sita Sinha Independent Director

C. Post Employment Plans of Group

Name of the Related Party Country

RINL Employees' Group Gratuity Fund Trust India

Vishakhapatnam Steel Project Employees' Provident Fund Trust India
RINL Employees' Superannuation Benefit Fund Trust India

230
 D. Transactions with Related Parties during the year ended ( in Crores)
Name of the Related Party Nature of Nature of 31 March 31st March
st

Relationship Transactions 2020 2019

International Coal Ventures Pvt Ltd ( ICVL) Associate Receipt of equity shares - -
RINL Powergrid TLT Pvt Ltd Joint ventures Receipt of equity shares - 0.60
RINMOIL Ferro Alloys Pvt Ltd Joint ventures Receipt of equity shares 0.01 0.01
MINAS DE BENGA LIMITADA ICVL's Joint Venture Purchases 237.59 346.19
MINAS DE BENGA LIMITADA ICVL's Joint Venture Demurrages/ Despatches 1.10 -
International Coal Ventures Pvt Ltd ( ICVL) Associate Salaries Recoverable 0.11 0.83
International Coal Ventures Pvt Ltd ( ICVL) Associate Board meeting exp recoverable 0.01 0.03
RINL Employees' Group Gratuity Fund Trust Post Employment Contribution towards trust 2.00 35.20
Benefit Plan
Vishakhapatnam Steel Project Employees' Post Employment Contribution towards trust 163.21 151.71
Provident Fund Trust Benefit Plan
RINL Employees' Superannuation Post Employment Contribution towards trust 40.29 6.97
Benefit Fund Trust Benefit Plan

E. Balances Outstanding (Unsecured & Considered Good) ( in Crores)

Name of the Related Party Nature of Nature of 31 March 31st March
st

Relationship Transactions 2020 2019

International Coal Ventures (p) Ltd Associate Investment in Associate 376.36 376.36
RINL Powergrid TLT Pvt Ltd Joint ventures Investment in Joint Venture 4.00 4.00
RINMOIL Ferro Alloys Pvt Ltd Joint ventures Investment in Joint Venture 0.12 0.11
RINMOIL Ferro Alloys Pvt Ltd Joint ventures Other financial assets 1.21 1.21
International Coal Ventures (p) Ltd Associate Other financial assets 1.54 1.41
MINAS DE BENGA LIMITADA ICVL's Joint Venture Advances recoverable 1.10 -
MINAS DE BENGA LIMITADA ICVL's Joint Venture Amounts payable 65.50 51.75
RINL Employees' Group Gratuity Fund Trust Post Employment Other financial liability/ 703.87 555.62
Benefit Plan (asset)
Vishakhapatnam Steel Project Employees' Post Employment Other financial liability 14.23 13.20
Provident Fund Trust Benefit Plan
RINL Employees' Superannuation Post Employment Other financial liability 6.04 3.10
Benefit Fund Trust Benefit Plan

NOTE : ( in Crores)
st st
Particulars 31 March 2020 31 March 2019
Provision for doubtful debts related to the amount
of outstanding balances Nil Nil

231
F. Key Management Personnel Compensation & Sitting Fee Paid ( in Crores)
Particulars 31st March 2020 31st March 2019
Short-term employee benefits 1.61 1.36
Post-employment benefits 0.55 0.20
Other long-term benefits 0.71 0.11
Termination benefits - -
Share-based payment - -
Sitting fee paid to Independent Directors 0.24 0.26
3.11 1.93
44 Operating Segments
A Basis for Segmentation
An operating segment is a component of the Group that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the
Group’s other components, and for which discrete financial information is available. All operating segments
results are reviewed regularly by the holding Company’s Chief Executive Officer (CEO) to make decisions
about resources to be allocated to the segments and assess their performance.
The Group has two reportable segments, as described below, which are the Group's strategic business units.
These business units offer different services, and are managed separately because they require different
technology and marketing strategies. For each of the business units, the holding Company's CEO reviews
internal management reports on at least a quarterly basis.
The following summary describes the operations in each of the Group's reportable segments:
Reportable Segments Operations
Steel products Manufacturing of steel products
Others Mining and investment activities
B Information about Reportable Segments
Information regarding the results of each reportable segment is included below. Performance is measured
based on segment profit (before tax), as included in the internal management reports that are reviewed by
the Group's CEO. Segment profit is used to measure performance as management believes that such
information is the most relevant in evaluating the results of certain segments relative to other entities that
operate within these industries. Inter-segment pricing is determined on an arm's length basis.
Year ended 31st March 2020 ( in Crores)
Particulars Steel products Others Total
Segment revenue:
- External revenue 15,920.46 61.87 15,982.33
- Inter-segment revenue - (16.11) (16.11)
Total Segment Revenue 15,920.46 45.76 15,966.22
Segment profit (loss) before income tax (4,311.83) (58.43) (4,370.26)
Segment profit (loss) before income tax includes:
Interest revenue 65.12 0.01 65.13
Interest expense 1,498.23 21.45 1,519.68
Depreciation and amortisation 1,108.81 2.73 1,111.54
Share of profit (loss) of equity accounted investees (28.32) - (28.32)
Other material non-cash items:
- Impairment losses on non-financial assets - - -
- Reversal of impairment losses on non financial assets - - -
Segment Assets 34,704.99 517.16 35,222.15
Segment assets include:
Investments accounted for using equity method 614.89 - 614.89
Capital expenditure during the year 1,164.01 0.94 1,164.95
Segment Liabilities 31,406.32 580.34 31,986.66

232
Year ended 31st March 2019 ( in Crores)
Particulars Steel Products Others Total
Segment Revenue:
- External revenue 20,492.03 91.91 20,583.94
- Inter-segment revenue (15.09) (15.09)
Total Segment Revenue 20,492.03 76.82 20,568.85
Segment profit (loss) before income tax (336.54) (665.43) (1,001.97)
Segment profit (loss) before income tax includes:
Interest revenue 85.64 0.01 85.65
Interest expense 1,277.61 4.28 1,281.89
Depreciation and amortisation 1,057.59 15.18 1,072.77
Share of profit (loss) of equity accounted investees (29.65) - (29.65)
Other material non-cash items: -
- Impairment losses on non-financial assets - - -
- Reversal of impairment losses on non financial assets - - -
Segment Assets 35,130.38 719.72 35,850.10
Segment assets include:
Investments accounted for using equity method 563.41 - 563.41
Capital expenditure during the year 1,712.52 0.49 1,713.01
Segment Liabilities 27,806.70 694.22 28,500.92

C Reconciliation of information on Reportable Segments to Ind AS Measures ( in Crores)

Particulars 31st March 2020 31st March 2019
i. Revenues
Total revenue for reportable segments 15,966.22 20,568.85
Revenue for other segments - -
Elimination of inter-segment revenue 16.11 15.09
Consolidated Revenue 15,982.33 20,583.94
ii. Profit before Tax
Total profit before tax for reportable segments (4,370.26) (1,001.97)
Profit before tax for other segments - -
Elimination of inter-segment profits - -
Unallocated amounts:
- Corporate expenses - -
Consolidated Profit from continuing operations before tax (4,370.26) (1,001.97)
iii. Assets
Total assets for reportable segments 35,222.15 35,850.10
Assets for other segments - -
Unallocated amounts - -
Consolidated Total Assets 35,222.15 35,850.10
iv. Liabilities
Total liabilities for reportable segments 31,986.66 28,500.92
Liabilities for other segments - -
Unallocated amounts - -
Consolidated Total Liabilities 31,986.66 28,500.92

233
v. Other Material Items
31st March 2020 ( in Crores)
Particulars Reportable Adjustments Consolidated
Segments total Totals
Interest revenue 68.76 3.63 65.13
Interest expense 1,519.68 - 1,519.68
Capital expenditure during the year 1,164.95 - 1,164.95
Depreciation and amortisation expense 1,111.54 - 1,111.54
Impairment losses on non-financial assets - - -
Reversal of impairment losses on non-financial assets - - -

31st March 2019 ( in Crores)

Particulars Reportable Adjustments Consolidated
Segments Total Totals
Interest revenue 88.62 2.97 85.65
Interest expense 1,281.89 - 1,281.89
Capital expenditure during the year 1,713.01 - 1,713.01
Depreciation and amortisation expense 1,072.77 - 1,072.77
Impairment losses on non-financial assets - - -
Reversal of impairment losses on non-financial assets - - -

D Major Customer
Revenue from any customer of the Group's steel products and other segments does not exceed 10% of the
total revenue reported and hence, the management believes there are no major customers to be disclosed.
45 A) Going Concern Assessment (In case of Holding Co.)
Going Concern is one of the fundamental principles of accounting. Taking into the account the performance of
the company during the year, and the situation created by Novel Coronavirus (COVID-19) coupled with significant
business disruptions for entities across almost all sectors, there may exist material uncertainty about the
entity’s ability to continue as a going concern. In due consideration thereof, the management has made its
assessment of entity’s ability to continue as a going concern. In doing so, the company has taken into due
consideration its liquidity position, its obligations to repay its loan and interest thereon, to pay its creditors
reasonably on time, its ability to collect its recoverables and to keep its assets and other operating facilities to
be productive continuously in line with the normal business requirements, etc., among others. In this process,
the Management has based its conclusions of its ability to meet the above obligations on the following.
a. To improve the liquidity position, the Company has availed of the moratorium on repayment of principal
and payment of interest, deferred GST Payments as announced by the Government of India in view of the
COVID - 19 pandemic. Company also achieved cash flow improvements by increasing the sales volume
and collections from May 2020 onwards. Company has also taken various cost control measures to improve
the performance.
Further in the current circumstances, the company is meticulously monitoring the payments to creditors,
vendors, employees dues, statutory dues, etc. and efforts are made to make the payments in time during
the lockdown period (due to COVID-19) also. Even in the year of crisis during the year 2019-20, the
company made the committed payments to the Financial Institutions and MSME units as per commitments.

234
 The company also made arrangements with major creditors (PSU units) for deferment of payments whereas
payments to other small creditors are made in time.
b. The company has considered the possible effect that may result from the pandemic related to COVID -19
on the carrying amounts of current and non-current assets. In developing the assumptions relating to the
possible uncertainities in the global economic condition because of this pandemic, the company has used
internal and external source of information. The company has reviewed the impact of COVID - 19 and
expects the carrying amount of these assets are recoverable.
As per the company's current assessment, no significant impact on carrying amounts on Property, plant
and equipment, Right of use assets, inventories, intangible assets, trade receivables, investments and
other financial assets is expected consequent to the COVID -19, and it continues to monitor the changes in
the future economic conditions.
However the situation arising from COVID-19 being an unprecedented event the consequences of which
are difficult to estimate, the actual outcome there from could vary from the said estimates.
c. The Company while entering MOU with ministry for the year 2020-21, made a production and sales plan
which indicates scope for improvements in the performance of the company.
d. The company has entered long term agreements/ MOUs with major suppliers for the supply of key raw
materials for un-interrupted supply.
e. The company is working upon improving its market share thereby projecting an increased volume of sale
of saleable steel.
f. The management of the company does not have any intention to liquidate the entity or cease the operations.
In fact, the company has engaged M/s. Mc Kinsey a leading consultants to explore the opportunities available
to the company for further improvements. The company is reaping out the benefits based on their suggestions
in the different fields.
Management is of the opinion that the company is capable of mobilising adequate resources to continue
its operation in the foreseeable future and the going concern basis for preparation of these financial
statements is appropriate.
45 B Going Concern Assessment (In case of BSLC)
The company has incurred loss of 11.21 Crores for the year ended 31st March 2020 and accumulated loss
as on 31st March 2020 is 243.01 Crores which is in excess of the entire Net Worth of the company.
Presently, the company is incurring this loss due to excess employee cost. Further, the company believes
that they will be able to recover such loss once there will be the substantial improvement in market scenario
considering the above improvements in the market scenario the company expects that there will be a
favourable impact on the company's operations and the Financials in the future. Hence, company has
prepared the Financial results on the basis of "Going Concern" assumption. Moreover BSLC has done a
revival plan by M/s Mecon Ltd. to inject more fund to the company by obtaining bank's loan and from
internal support of RINL to continue as going concern.
46 a) For a substantial portion of Loans and Advances, Trade payables/ Trade receivables / Other payables,
letters seeking confirmation of balances were sent and no material discrepancies were found in respect
of balances confirmed.
b) Previous year's figures have been rearranged / regrouped wherever necessary to conform to current
year's classification.

235
46 Additional information pursuant to paragraph 2 of Division II of Schedule III to the Companies Act, 2013-
General instructions for the preparation of consolidated financial statements’ of Division II of Schedule III
As at 31st March 2020 ( in Crores)
Net Assets Share in profit or Share in other Share in total
comprehensive comprehensive
(loss) income ( OCI) income
Name of the Entity As % of
As % of As % of As % of
consolidated Amount consolidated Amount consolidated Amount consolidated Amount
profit or
net assets (loss) other OCI total OCI
Parent
Rashtriya Ispat Nigam Limited 101.12% 3,275.79 98.83% (3,906.17) 187.04% (170.32) 100.81% (4,076.49)
Subsidiaries ( Group's share)
Indian
Eastern Investments Limited (1.63%) (52.85) 0.56% (21.99) 0.58% (0.53) 0.56% (22.52)
Non controlling interest
Eastern Investments Limited (1.12%) (36.22) 0.53% (21.13) 1.70% (1.55) 0.56% (22.68)
Associates (investment as per
the equity method)
Indian
International Coal Ventures
Private Limited 7.36% 238.47 0.62% (24.34) (87.63%) 79.79 (1.37%) 55.45
Joint Ventures (investment as
per the equity method)
Indian
RINMOIL Ferro Alloys
Private Limited 0.00% (0.05) 0.00% (0.01) 0.00% - 0.00% (0.01)
Eliminations (5.7%) (185.68) (0.53%) 21.13 (1.7%) 1.55 (0.56%) 22.68
Total 100.00% 3,239.46 100.00% (3,952.51) 100.00% (91.06) 100.00% (4,043.57)

As at 31st March 2019 ( in Crores)

Net Assets Share in profit or Share in other Share in total

(loss) comprehensive comprehensive
income ( OCI) income
Name of the Entity As % of
As % of As % of As % of
consolidated Amount consolidated
profit or Amount consolidated Amount consolidated Amount
net assets (loss) other OCI total OCI
Parent
Rashtriya Ispat Nigam Limited 100.13% 7,352.28 (174.56%) 96.71 39.76% 34.61 414.76% 131.32
Subsidiaries ( Group's share)
Indian
Eastern Investments Limited (0.21%) (15.20) 220.98% (122.42) (0.14%) (0.12) (387.05%) (122.54)
Non controlling interest
Eastern Investments Limited 0.36% 26.74 212.31% (117.62) (0.42%) (0.36) (372.64%) (117.98)
Associates (investment as per
the equity method)
Indian
International Coal Ventures
Private Limited 2.49% 183.02 53.49% (29.63) 60.39% 52.57 72.45% 22.94
Joint Ventures (investment as
per the equity method)
Indian
RINMOIL Ferro Alloys Private Limited 0.00% (0.04) 0.01% (0.00) 0.00% - (0.02%) (0.00)
RINL Power Grid TLT Private Limited 0.00% (0.03) 0.02% (0.01) 0.00% - (0.03%) (0.01)
Eliminations (2.78%) (204.10) (212.24%) 117.58 0.42% 0.36 372.51% 117.94

Total 100.00% 7,342.67 100.00% (55.40) 100.00% 87.06 100.00% 31.66

236
 RASHTRIYA ISPAT NIGAM LIMITED
(CIN: U27109AP1982GOI003404)
Regd.Office: Administrative Building, Visakhapatnam Steel Plant (VSP), Visakhapatnam 530 031.
Website: www.vizagsteel.com; email: jagadeeshm@vizagsteel.com; Tel & Fax: (0891) 2518249.

NOTICE
NOTICE is hereby given that the 38th Annual General Meeting of the Members of Rashtriya Ispat Nigam Limited is scheduled
to be held at 15.30 hrs on Wednesday, the 30th day of September, 2020 at the Registered Office of the Company at
Administrative Building, Visakhapatnam Steel Plant, Rashtriya Ispat Nigam Limited (RINL), Visakhapatnam - 530 031, to
transact the following business:
ORDINARY BUSINESS:
1. To receive, consider and adopt the Audited Financial Statements including Consolidated Financial Statements of the
Company for the year ending with March 31, 2020, together with the Directors’ Report, the Reports of Auditors' and
Comments of the Comptroller & Auditor General of India (C & AG) thereon.
2. No dividend declaration for the Financial Year 2019-20.
3. To authorize Board of Directors of the Company to fix the Remuneration of the Statutory Auditors of the Company
appointed by Comptroller & Auditor General of India (C&AG) for the financial year 2020-21, in terms of provisions of
Section 139(5) read with Section 142 of the Companies Act, 2013 and in this regard to consider and if thought fit, to
pass with or without modification the following Resolution as an Ordinary Resolution.
"RESOLVED THAT
The Board of Directors of the Company be and are hereby authorized to decide and fix the Remuneration, Out of pocket
expenses, Travelling expenses and other living expenses appropriately with the recommendations of Audit Committee from
time to time, for the Statutory Auditors of the Company for the financial year 2020-21, who will be appointed by the C&AG."
SPECIAL BUSINESS:
4. To appoint Shri Ajit Kumar Saxena, (DIN: 08588419) as Director (Operations) of the Company and in this regard to
consider and if thought fit, to pass with or without modification(s), the following Resolution as an Ordinary Resolution:
"RESOLVED THAT
Pursuant to the provisions of Section 149, 152,161 and other applicable provisions, if any, of the Companies Act, 2013
and rules made thereunder, Shri Ajit Kumar Saxena, (DIN: 08588419) who was appointed as Director (Operations) by
President of India pursuant to powers vested under Article No.75 of the Articles of Association of Rashtriya Ispat Nigam
Limited and assumed charge on 17th October, 2019 be and is hereby appointed as Director (Operations) of the Company.
5. To appoint Smt. Sita Sinha (DIN: 08678880) as Independent Director of the Company and in this regard to consider and
if thought fit, to pass with or without modification(s), the following Resolution as an Ordinary Resolution:
RESOLVED THAT
Pursuant to the provisions of Section 149, 152, 161 and other applicable provisions, if any, of the Companies Act, 2013
and rules made thereunder, Smt. Sita Sinha (DIN: 08678880) who was appointed as Non-Official Independent Director
by President of India pursuant to powers vested under Article No.75 of the Articles of Association of Rashtriya Ispat
Nigam Limited and assumed charge on 24th January, 2020 be and is hereby appointed as Director of the Company.
6. To appoint Shri Vijoy Kumar Singh, I.A.S (DIN: 00592638), AS & FA, Ministry of Textile having additional charge of FA,
Ministry of Steel as Government Director of the Company and in this regard to consider and if thought fit, to pass with
or without modification(s), the following Resolution as an Ordinary Resolution:
RESOLVED THAT
Pursuant to the provisions of Section 149, 152, 161 and other applicable provisions, if any, of the Companies Act, 2013
and rules made thereunder, Shri Vijoy Kumar Singh, I.A.S (DIN: 00592638), AS & FA, Ministry of Textile having

237
 additional charge of FA, Ministry of Steel, who was appointed as Part-time Official Director (i.e. Govt. Director) by
President of India pursuant to powers vested under Article No.75 of the Articles of Association of Rashtriya Ispat
Nigam Limited and assumed charge on 17th March, 2020 be and is hereby appointed as Director of the Company.
7. To ratify the remuneration of the Cost Auditors for the financial year 2020-21 and in this regard to consider and if thought
fit, to pass, with or without modification(s), the following resolution as an Ordinary Resolution:
"RESOLVED THAT
Pursuant to the provisions of Section 148 and all other applicable provisions of the Companies Act, 2013 read with the
Companies (Audit and Auditors) Rules, 2014 (including any statutory modification(s) or re-enactment thereof for the
time being in force), the remuneration of the Cost Auditors appointed by the Board of Directors of the Company for the
financial year 2020-21 as set out in the Statement annexed to the Notice convening this Meeting, be and is hereby
ratified.
RESOLVED FURTHER THAT
The Board of Directors of the Company be and are hereby authorised to do all such acts, deeds and things as may be
necessary, proper or expedient to give effect to this resolution."
By order of the Board
Sd/-
M.Jagadeeshwara Rao
Company Secretary
Registered office:
Administrative Building,
Rashtriya Ispat Nigam Limited (RINL),
Visakhapatnam Steel Plant (VSP),
Visakhapatnam 530 031.
Date: 05th September, 2020
NOTE:
1. A Member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of
himself/herself and the proxy need not be a Member.
2. The President of India may appoint one or more person(s) to represent at the Meeting.
3. Statutory Registers and documents referred to in the accompanying Notice and the Statement are open for inspection
by the Members at the Registered Office of the Company on all working days during business hours.
4. Brief resume of the Directors seeking appointment or re-appointment is annexed hereto and forms part of the
Notice.
5. The relevant explanatory statement pursuant to Section 102 of the Companies Act, 2013, in respect of items of
Special Business, as set out above is annexed hereto.
6. None of the Directors of the Company is in any way related with each other.
In view of the COVID 19 pandemic, the Ministry of Corporate Affairs vide its Circular dated 5th May, 2020 read with Circulars
dated 8th April, 2020 and 13th April, 2020 (collectively referred to as 'Circulars'), permitted the holding of the Annual General
Meeting ("AGM") through Video Conferencing ("VC") / Other Audio- Visual Means ("OAVM"), without the physical presence
of the Members at a common venue and also send notice of the Meeting and other correspondences related thereto, through
electronic mode. In compliance with the said requirements of the MCA Circulars, the AGM of the Company is being held
through VC / OAVM and electronic copy of the Notice along with the Annual Report for the financial year ended 31st March,
2020 consisting of financial statements including Board's Report, Auditors' Report and other documents required to be
attached therewith (Collectively referred to as Notice) have been sent to the members through electronic means.

238
 ANNEXURE TO NOTICE
EXPLANATORY STATEMENT TO THE SPECIAL BUSINESSES PROPOSED IN THE NOTICE
(Pursuant to Section 102(1) of the Companies Act, 2013)
Item No.4:
Shri Ajit Kumar Saxena was appointed as Director (Operations) in the scale of pay of 75,000 - 1,00,000/
- on the Board of RINL by the President of India vide Order F.No. 2(3)/2018-BLA dated 14th October, 2019
issued by Ministry of Steel (MoS) for a period of Five years from the date of his assumption of charge of the
post, i.e., 17th October, 2019 till the date of his superannuation or until further orders from the Ministry of
Steel (MoS), whichever is the earliest.
In terms of the provisions of the Section 149, 152, 161 of the Companies Act, 2013 and rules made there
under, every director of the Company has to be appointed in the general meeting of the Company. Therefore,
regularization of the appointment of Shri Ajit Kumar Saxena as Director (Operations) on same terms and
conditions as determined by Government of India is placed for the approval of shareholders.
His brief resume, inter-alia, giving nature of expertise in specific functional area is provided which forms part
of this Notice.
Shri Ajit Kumar Saxena is not disqualified from being appointed as a Director in terms of Section 164(1) of
the Companies Act, 2013. None of the Directors or Key Managerial Personnel of the Company or their
relatives except Shri Ajit Kumar Saxena is in any way, concerned or interested, financially or otherwise, in
the resolution set out at item no.4 of the Notice.
The Board recommends the resolution for the approval of Shareholders.
Item No.5:
Smt. Sita Sinha was appointed as Non-Official Independent Director on the Board of RINL with effect from
17th January, 2020 by the President of India vide Order.No.1/10/2015-BLA (Vol-IV), dt. 17th January, 2020
issued by Ministry of Steel (MoS) for a period of three years from the date of notification or until further
orders from the MoS, whichever is earlier.
In terms of the provisions of the Section 149, 152, 161 of the Companies Act, 2013 and rules made there
under, every director of the Company has to be appointed in the general meeting of the Company. Therefore,
regularization of the appointment of Smt. Sita Sinha, as Non-Official Independent Director on same terms
and conditions as determined by Government of India is placed for the approval of shareholders.
Her brief resume, inter-alia, giving nature of expertise in specific functional area is provided elsewhere
which forms part of this Notice.
Smt. Sita Sinha is not disqualified from being appointed as a Director in terms of Section 164(1) of the
Companies Act, 2013. None of the Directors or Key Managerial Personnel of the Company or their relatives
except Smt. Sita Sinha is in any way, concerned or interested, financially or otherwise, in the resolution set
out at item no.5 of the Notice.
The Board recommends the resolution for the approval of Shareholders.
Item No.6:
Shri Vijoy Kumar Singh,I.A.S AS & FA, Ministry of Textile having additional charge of FA, Ministry of Steel
was appointed as Government Director on the Board of RINL with effect from 17th March, 2020 by the
President of India vide Order.No.1/16/2015-BLA, dt. 17th March, 2020 issued by Ministry of Steel (MoS) with
immediate effect until regular incumbent joins the post of FA, Ministry of Steel or further orders vice Shri
Rohit Yadav, former Joint Secretary, Ministry of Steel.
In terms of the provisions of the Section 149, 152, 161 of the Companies Act, 2013 and rules made there
under, every director of the Company has to be appointed in the general meeting of the Company. Therefore,

239
 regularization of the appointment of Shri Vijoy Kumar Singh as Government Director on same terms and
conditions as determined by Government of India is placed for the approval of shareholders.
His brief resume, inter-alia, giving nature of expertise in specific functional area is provided elsewhere which
forms part of this Notice.
Shri Vijoy Kumar Singh is not disqualified from being appointed as a Director in terms of Section 164(1) of
the Companies Act, 2013. None of the Directors or Key Managerial Personnel of the Company or their
relatives except Shri Vijoy Kumar Singh is in any way, concerned or interested, financially or otherwise, in
the resolution set out at item no.6 of the Notice.
The Board recommends the resolution for the approval of Shareholders.
Item No.7:
Section 148(3) of the Companies Act, 2013 read with Rule 14 of the Companies (Audit & Auditors) Rules,
2014 requires that remuneration of the Cost Auditors as recommended by the Audit Committee shall be
considered and approved by the Board of Directors to be ratified subsequently by the shareholders.
The Board of Directors in its 332nd Meeting held on 24th July, 2020 on the recommendation of the Audit
Committee in its 95th meeting held on 23rd July, 2020, has approved the appointment and remuneration of
the Cost Auditors to conduct the audit of the Cost Records of the company for the financial year 2020-21.

The Cost Auditors appointed for the financial year 2020-21 along with the details of their fees are as under:
Name of the Cost Auditor Remuneration for the financial year 2020-21
M/s S Dhal & Co,
51,000/- (Rupees Fifty One Thousand only) (inclusive of
Cost Accountants, Travelling and other incidental expenses and all taxes and duties)
plus applicable GST and Boarding, Lodging and local conveyance
Bhubaneswar
at Visakhapatnam during the audit period.

Accordingly, consent of the Members is sought by passing of an Ordinary Resolution for ratification of the
remuneration payable to the Cost Auditors for the financial year 2020-21.
None of the Directors or Key Managerial Personnel of the Company or their relatives is in any way, concerned
or interested, financially or otherwise, in the resolution as set out at Item no.7 of the notice.
The Board recommends the resolution for approval of the shareholders.

By order of the Board

Sd/-
M.Jagadeeshwara Rao
Company Secretary
Registered office:
Administrative Building,
Rashtriya Ispat Nigam Limited (RINL)
Visakhapatnam Steel Plant (VSP)
Visakhapatnam 530 031
Date: 05th September, 2020

240
 FORM No. MGT-11
Proxy form
[Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies
(Management and Administration) Rules, 2014]
CIN : U27109AP1982GOI003404
Name of the company : RASHTRIYA ISPAT NIGAM LIMITED
Registered office : Administrative Building, Visakhapatnam Steel Plant (VSP), Visakhapatnam 530 031.
Website : www.vizagsteel.com; Tel: (0891)251 8015/8249
Email : jagadeeshm@vizagsteel.com;
Name of the member (s) :
Registered address :
E-mail Id :
Folio No/ Client Id :
DP ID :
I/We, being the member (s) holding...................................shares of the above named company, hereby appoint:

1. Name:
Address:
E-mail Id:
Signature: ..................................................................................., or failing him

2. Name:
Address:
E-mail Id:
Signature: ...................................................................................., or failing him

3. Name:
Address:
E-mail Id:
Signature: ......................................................................................,

as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 38th Annual General Meeting of the company, to
be held on Wednesday, the 30th Day of September, 2020 at 15.30 Hrs at Registered Office, Administrative Building, RINL/VSP,
Visakhapatnam and at any adjournment thereof in respect of such resolutions as are indicated below:
Sl.No. RESOLUTIONS VOTE
(Please mention no. of shares)
ORDINARY BUSINESS For Against Abstain
1 To receive, consider and adopt the Audited Financial Statements including Consolidated
Financial Statements of the Company for the year ended March 31, 2020, together with the
Directors Report, the Reports of Auditors' and comments of the Comptroller & Auditor
General of India (C & AG) thereon
2 No dividend declaration for the Financial Year 2019-20
3 To authorize Board of Directors of the Company to fix the Remuneration of the Statutory
Auditors of the company appointed by Comptroller & Auditor General of India (C&AG) for
the financial year 2020-21, in terms of provisions of Section 139(5) read with Section 142
of the Companies Act, 2013
SPECIAL BUSINESS
4 To appoint Shri Ajit Kumar Saxena, (DIN: 08588419) as Director(Operations) of the Company
5 To appoint Smt. Sita Sinha (DIN: 08678880) as Independent Director of the Company
6 To appoint Shri Vijoy Kumar Singh (DIN: 00592638), AS & FA, Ministry of Textile having
additional charge of FA, Ministry of Steel as Government Director of the Company
7 To ratify the remuneration of the Cost Auditors for the Financial Year 2020-21
Signed on this ......................day of .............2020

Signature of shareholder

Signature of Proxy holder(s) _____________,_______________,____________

Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the
Company, not less than 48 hours before the commencement of the Meeting. However in view of COVID-19 this may
not be applicable for this notice.

241
 ANNEXURE TO NOTICE
Brief Resume of the Directors proposed in the Resolutions to the Notice of 38th AGM for the F.Y. 2019 - 20
Name Ajit Kumar Saxena Dr. Sita Sinha Shri Vijoy Kumar Singh, IAS
Director (Operations) Independent Director Government Director
DIN 08588419 08678880 00592638
Date of Birth & Age 02/12/1965 & 54 years 05/07/1962 & 58 years 15/11/1964 & 55 years
Date of Appointment 17.10.2019 17.01.2020 (dt of assumption 24.01.2020) 17.03.2020
Qualifications B.Tech, MBA M.A. (Political Science), Ph.D Graduate (Mech.Engg.), MBA
Expertise in specific Shri Ajit Kumar Saxena has taken charge as Dr. Sita Sinha has 24 years of Shri V K Singh is an IAS Officer
functional Area Director (Operations) of RINL-Visakhapatnam Steel experience as Professor and also who worked in various
Plant. Prior to this assignment, Shri Saxena has capacities in State and Central
worked as Chief General Manager, Mills, IISCO, served as MLA and as Bihar State
Minister. Besides this, She was also Governments. He won various
Burnpur, Steel Authority of India Ltd. He started awards at national level.
his career as a Management Trainee (Technical) Chair Person of Bihar Social Welfare
in 1986. He worked in various assignments in SAIL Board for Three Years.
starting with Bhilai Steel Plant and worked in
various positions during his long tenure of 33 years
in SAIL. Sri Saxena hold B Tech degree from
Institute of Technology, Banaras Hindu University
in Metallurgy and also acquired an MBA. He has
received "Young Metallurgist of the year Award"
for the year 2000 from Ministry of Steel, GOI.
Directorship held in NIL NIL National Jute Manufactures
other Companies Corporation Limited
National Textile Corpn Limited
SAIL, NMDC Ltd.
MECON Ltd., KIOCL

Membership/ Member of Chairman of NIL

1. Board Sub Committee on Marketing. 1. Stakeholders/Investors Grievance Committee
Chairmanship of 2. Board Sub Committee on Expansion and
Committees in RINL 2. Committee of Management (COM)
Related Projects
Member of
1. Nomination and Remuneration Committee
2. Ethics/HR Committee
3. Board Sub Committee on Marketing
4. CSR & Sustainability Committee
5. Audit Committee
6. Board Sub Committee on Raw Material
Security and Joint Ventures & Acquisitions
Membership/ Chairmanship NIL NIL NIL
of Committees of other
Companies(other than RINL)
No.of Shares held in RINL NIL NIL 100
The details in the above table are as on notice date.

242