Bihar Sponge Iron Ltd — Interim / Quarterly Report 2020

Nov 13, 2019

BIHAR SPONGEIRONLIMITED.

REGISTERED OFFICE & PLANT : UMESH NAGAR, CHANDIL-832401, DISTT. SARAIKELA - KHARSAWAN, JHARKHAND PHONE (EPABX) : 06591-232410, 232417, Fax : 06591-232412 E-mail ; bsilchandil@gmail.com / Web: bsil.org.in, CIN : L27106JH1982PLC001633

BSIL/CS/SE/2019 13" November, 2019

The General Manager Listing Centre BSE Limited P J Towers, Dalal Street, MUMBAI- 400 001

SUB: REGULATION 33 OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS,2015.

SCRIP CODE:500058

DearSir / Ma'am,

Pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, please find enclosed herewith a copy of Un-audited Financial Results for the quarter and half year ended on 30" September, 2019 duly approved by the Board of Directors of the Company in their meeting held on 13" November, 2019 along with the copyofthe Limited Review Report of the Statutory Auditors' of the Company.

The said Board Meeting commenced at 3:00 p.m. and concluded at 4.00 p.m.

Kindly acknowledgethereceipt.

Thanking you

Yours faithfully

For BIHAR"

ONGEJRON LTD Him littal | ee x} Company Secretary & Complianceofficer E-mail: companysetretary@bsil.org.in

Encel:a/a

Limited Review Report

The Board of Directors Bihar SpongeIron Limited Umesh Nagar, Chandil Dist. Saraikela-Kharsawan Pin-832401

1. We have reviewed the accompanying statement of Un-audited Financial Results of Bihar Sponge Iron Limited ('the Company), for the quarter and half year ended September30, 2019 (the "Statement") being submitted by the company pursuantto the requirement of Regulation 33 of SEB! (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended.

This Statement, which is the responsibility of the Company's Managementand has been approved by the Board of Directors, has been prepared in accordance with the recognition and measurementprinciples laid down in Indian Accounting Standards 34 (Ind AS-34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder: or by the Institute of Chartered Accountants of India, as applicable and other accounting principles generally accepted in India. Our responsibility is to issue a report on the Statement based on our review.

• 1. We conducted our review in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whetherthe financial results are free of material misstatement(s). A review is limited primarily to inquiries of Company personnel and analytical procedures applied to financial data and provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.
• 1. Based on our review, we draw attention to the Statement:-

Note No.4: regarding non recognition of liability on account of currencyfluctuations on foreign currency loan and interest thereon (as required under Indian Accounting Standard- 21) amounting to Rs. 3196.40 lacs on 30.09.2019 as provided in the BIFR Scheme dated 29.07.2004 and also confirmed by AAIFR and Single Bench of Jharkhand High Court, Ranchi. The companyhasfiled Letters Patent Appellate Jurisdiction (LPA) before the Divisional Bench of High Court of Jharkhand, Ranchi against the order of Single Bench of High Court, Ranchi:

Note No. 5: no provision has been made on penalty recovered by South East Coalfields Ltd. for Rs. 215.28 lacs on account of short lifting of coal quantity in term of FSA, since the matter is pending underwrit petition filed by Companybefore the Hon'ble High Court of Chhattisgarh, Bilaspur the amount has been included in long terms loans and advances.

184A, Garud Apartments, Pocket-IV, Mayur Vihar Phase-1, Delhi-110091, Ph.: 42448514

Note No. 6: regarding non provision of the undernoted items of expense in view of suspension of operations of plant since 10" August, 2013 as well as other reasons contended by the company :-

• a) Interest on unsecured loan from Promoters and other parties from 10.08.2013 to 30.09.2019 (amount unascertained), and
• b) Interest on Soft Loan taken from the Government of Jharkhand under Jharkhand Industrial Rehabilitation Scheme 2003 amounting to Rs. 3660.56 lacs from 10.08.2013 to 30.09.2019 which is subject to representations for waiver.
• 1. Attention is invited to Note No. 3 of the un-audited financial results, the managementhas explained its reasons for preparing financial statements on 'going concern basis'. The explanation is as under:-

With the revival of the steel industry, considering the substantial accumulated losses, full erosion of working capital and the liabilities including long term borrowings having matured fully along with interest having fallen due, the companyhasinitiated requisite steps for making the plant ready for operations, with a view to generate revenue and make the plant operational. The company has on 01-04-2017 entered in to a Facility User Agreement with a company specializing in contract manufacturing. As per the said agreement, part of the plant and machinery are operated by the said company. With the restart of the plant by them, the management believes that the losses incurredin past will get wipedoff in due course and the companywill be able to operate in normal course of its business. The financial statements, as such have been prepared on going concern basis on the strength of management's plan of revival including reorganization of business and providing the adequate financefor the operations.

In our opinion and to the best of information and according to the explanation given to us, the Statement:

• i) iS prepared in accordance with the requirements of regulation 33 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015; and
• ii) except for the possible effects of the matter describedin paragraph 3 above,gives a true and fair view in conformity with the aforesaid Indian accounting standards and other accounting principal generally acceptedin India of the net loss for quarter and half ended September30, 2019.

For K. K. Jain & Co. Chartered Accountants FRN 0002465N ea Nes: (Simmi Jain) Partner M.No. 086496 UDIN: 19086496AAAAEI2081 %

Place: New Delhi Date: 13.11.2019

BIHAR SPONGEIRONLIMITED

STATEMENT OF UN-AUDITED FINANCIAL RESULTS FOR THE QUARTER ANDHALF YEAR ENDED ON 30TH SEPTEMBER, 2019

	BIHARDistrict,Nagar,ChandilOffice:UmeshRegisteredEmail:Companysecretary@bsil.org.in/web:www.bsil.org.in	SPONGEIRONLIMITEDSaraikelaCIN:	KhasawanL27106JH1982PLC001633	Jharkand-832401
	RESULTSFINANCIALUN-AUDITEDOFSTATEMENT	FORTHE	ANDHALFQUARTER	YEAR	30THONENDED	SEPTEMBER,	2019
	Particulars	September	Quarter Ended	September	Half Year EndedSeptember30,	September30,2018	(Rs. In LakhsYear EndedMarch31,2019
		ao:3osg(Unaudited)	ee(Unaudited)	0Gots(Unaudited)	2019(Unaudited)	(Unaudited)	(Audited)
	Revenue from operationsOther Income	144.68144.68	174.58174.58	°247.57247.57	319.26319.26	"440.27440.27	864.97864.97
	Total Income(I+I!)Expenses:a) Cost of materials consumed	-	-	-	-	-	:
	b) Changesininventories of finished goods,work-in-progress and Stock-in-Tradec) Employee benefits expensed) Finance costs	-39.683.78	-40.273.45	-41.903.98	-79.957.23	-82.197.56	>177.278.61
	e) Depreciation and amortization expensef) Other expensesTotal Expenses(IV)	82.2839.39165.13	$2.3128.07154,10	107.2332.44185.55	164.5967.46319.23	214.4763.67367.89	428.95130.49745.32
	Profit / (Loss) before exceptional items and tax(III - IV)	(20.45)	20.48	62.02	0.03	72.3875.94	119.65130.52
	Exceptional Items -Expenses/(Income)netProfit / (Loss) before tax (V - VI)	(16.48)(3.97)	23.16(2.68)	61.600.42	6.68(6.65)	(3.56)	(10.87
	Tax expense:Current taxDeferred tax	-:-	-::	-S:	°<i:</i	-:	3E:
	TotalProfit/(Loss) for the periodOther Comprehensive IncomeTotal Comprehensive Incomefortheperiod	(3.97)NIL(3.97)	(2.68)NIL(2.68)	0.42NIL0.42	(6.65)NIL(6.65)	(3.56)NIL(3.56)	(10.87NIL(10.87
Sr. NoiH]WlIVVvivilvillIXxxiXiiXiii	Paid up Equity Share Capital(Face value of Rs.10/each))Earning per equity share: (Not annualised	902,054(0.00)	902,054(0.00)	902,0540.00	902,054(0.01)	902,054(0.00)	902,054(0.01)

STATEMENTOF ASSETS & LIABILITIES AS AT 30TH SEPTEMBER, 2019.

ASATLIABILITIESASSETS&	SEPTEMBER,30TH	2019.
	As30that	LacsRs.inAs31stat
	September'2019Unaudited	March'2019Audited
Non-CurrentAssets
andEqipmentwork-in-progess	4,625.97282.07	4,790.56282.07
non-currentassets	366.305,274.34	366.305,438.93
CurrentAssets	416.92	463.25
Assetsreceivables	52.7814.12	48.0257.34
andcashequivalents©abovethanBankotherbalances	46.4010.56	46.4010.56
assetsSub-total	318.03858.81	218.09843.66
ANDLIABILITIES	6,133.15	6,282.59
FundsCapital	9,025.31(17,705.13)	9,025.31(17,698.48)
STATEMENTOFParticularsIlLASSETS(1)(a) Property,Plant(b)Capital(c) OtherSub-total(2)(a) Inventories(b) Financial(i) Trade(ii) Cash(iii) Other(iv) Others(c) Other'otal Assets1. EQUITY(1) Shareholder's(a) Share(b) OtherEquitySub-total(2) Non-CurrentLiabilities	(8,679.82)	(8,673.17)
Liabilities(i) Otherfinancialliabilities	6,165.60	6,204.59
non-currentliabilities	295.0781.55	278.0781.55
(a) Financial(b) Provisions(c) OtherSub-totalCurrentLiabilities(3)	6,542.22	6,564.21
(a)FinancialLiabilities(i) Tradepayables	870.526,992.99	928.586,985.99
(ii) Otherfinancial liabilities(b) Othercurrentliabilities(c) Provisions	378.3128.93	450.3026.68
Sub-total&EquityTotalLiabilities	8,270.756,133.15	8,391.556,282.59
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CASH FLOW STATEMENTFORTHE HALF YEAR ENDED30TH SEPTEMBER,2019

CASHFLOWSTATEMENTFORTHEHALFYEARENDED30TH	SEPTEMBER,2019	Rs. in Laces
	ATASSEPTEMBER30,2019	ATASSEPTEMBER30,2018
OPERATINGACTIVITIES:FLOWFROMandProfit/(Loss) before taxextraordinaryitemsAdjustments for:	(6.65)
DepreciationInterest Expense	164.587.23
Debit /Credit balanceswrittenoffAmountUnclaimedWritten BackMineIron OreDevlopmentChargesWrtten Off	(98.88)(39.64)	(3.56)214.477.56(216.27)-
Write DowninExceptionalItems-(Expenses-Valueof Inventories)	-46.3279.61
profit/(Loss) before workingcapital changesCapital:Changein working(Increase) /Decrease inTradeReceivables /Long/Short TermLoansAdvancesand	72.96	47.2528.6981.7078.14
excluding TDSInventories except Write Downin(Increase)/Decrease inValue	(104.69)-	(9.47)-
Increase /(Decrease) inTradePayable andProvisions/ Generatedfrom(used in)operations	27.73(76.96)	(79.15)(88.62)
A. CASHNetOperatingCashTax/ TDSIncomePaid/RefundNetCash(used) in /generationfromoperating activities	(4.00)-(4.00)	(10.48)-(10.48)
FLOWSFROMINVESTINGACTIVITIESassets (including CWIP)	-	-
Sales of fixedassetsNetCash(used) in/flowfrominvesting activities	--	---
FLOWFROMFINANCINGACTIVITIESProceeds fromLong/Short termborrowings	-
Interest paidRepayamentoflong /Short termborrowings	(0.23)(38.99)	-(7.56)-
B, CASHInterest receivedPurchaseoffixedProceeds fromC. CASHFROM(USED)NETCASHFLOWSFINANCINGINACTIVITIESNetCashandCashincrease/(decrease) inEquivalents (A+B+C)CashandCashequivalentsat beginning ofperiod	(39.22)(43.22)	(7.56)(2.92)

Notes:

• 1 On conservative basis, the Deferred Tax Assets have not been recognised.
• 2 The
• The Company

Company is a single location single product companyand hencethe requirements of IND 108 are not applicable. hadfuel supply agreement with Central Coalfields Limited and thereafter the supply of coal was 3 discontinued. Due to stoppage ofcoal supply the operations of the plant were Suspended w.e.f 9th August,2013. With the revival of the steel industry, considering the substantial accumulatedlosses,full erosion of working capital and the liabilities including long term borrowings having maturedfully along with interest having fallen due,the company has initiated requisite steps for making the plant ready for operations and with a view to generate revenue and make the plant

As loans on obtained 30.09.2019 by the Disputed company liability andinterest amounting to Rs.3196.40 Lacs on accountof currency fluctuations on Foreign currency thereon, as per BIFR scheme dated 29.07.2004 and also confirmed by AAIFR/ 4

Jurisdiction Single Bench (LPA) of Jharkhand filed before High the Court, larger has not been provided by the company pending disposalof Letters Patent Applent bench of Jharkhand High Court, Ranchi, against the above order.

No provision has been made for penalty

• 5 lifting of coal qty. in terms of FSA ,Since recovered by South East Coalfields Ltd.for Rs. 215.28 lacs on accountof short the matteris pending underwrit petition filed by Companybefore the Hon'ble High Court of Chattisgarh,Bilaspur and hence the amount has beenincluded in long term loans and advances.
• 6 accordingly In view of the the facts provisions stated under for undernoted Note No 3 above,the Operation of the Plant was suspended w.e.f. 9th August ,2013 and August, 2013 to 30th September, 2019. items of expense have not been madein the accounts for the period from 10th
  • (a) Interest on Unsecured Loans taken from Promoters and Other Parties (amounts unascertained),

amounting (b) Interest to on Rs.3660.56 Soft Loan lacs from Governmentof Jharkhand under JharkhandIndustrial Rehabilitation Scheme, 2003 whichis subject to representations for waiver.

• and Exceptional Stores items & Spares include to net expenses realisable of Rs. 46.32 lacs related to the write downin valueof the inventories of Raw material value and Rs.39.64 lacs. For unclaimed amounts written back. 8 Previousperiod figures have been regrouped/ recast / rearranged wherever necessary.
• meeting The above held financial on November results have 13 2019. been reviewed by the Audit Committee and approved by the Board ofDirectors in their
• 2015 The Limited has been review completed , as required by under Regulation 33 of SEBI (Listing Obligations & Disclosure Requirements) Regulations Statutory Auditors for the Quarter and half year ended 30th September,2019. 10

For BIHAR SPONGEIRONLIMITED Va'

peace 8 ' fs t; Shar, © | Date : 13.11.2019 R.K. AGAR' AC ang: DIRECTOR \ DIN: 00298252,

Place New Delhi