Bihar Sponge Iron Ltd — Interim / Quarterly Report 2020

Aug 14, 2019

BIHAR SPONGE IRON LIMITED.

REGISTERED OFFICE 8. PLANT : UMESH NAGAR, CHANDlL-832401, DISTT. SARAIKELA -KHARSAWAN, JHARKHAND PHONE (EPABX) : 06591-232410, 232417, Fax: 06591-232412 E-mail : bsilchandil@gmail.eom I Web : bsil.org.in CIN : L27106JH1982PLC001633

BSIL/CS/SE/2019 14'" August, 2019

The General Manager Listing Centre BSE Limited 1' .I Towers, Dalal Street, MUMBAI- 400 001

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

SCRIP CODE: 500058

Dear Sir / Ma'am,

Pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. please find enclosed herewith a copy of Uri-audited Financial Results for the quarter ended on 30'" June. 2019 duly approved by the Board of Directors of the Company in their meeting held on 14'h August, 2019 along with the copy of the Limited Review Report ofthe Statutory Auditors' of the Company.

The said Board Meeting commenced at 2:00 pm. and concluded at 3:50 p.m.

Kindly acknowledge the receipt.

Thanking you

Yours faithfully

"h For BIHAR SPONG/ fim\

Him iMittal '\ y, ' 5 ~ '1'; 7 Company Secretary &Co_ntpli ée officer E-mail: companysecretary@lrsil.org.in

Encl:a/a

K. K. JAIN & CO. Limited Review Report Chartered Accountants

The Board of Directors Bihar Sponge Iron Limited Umesh Nagar, Chandil Dist. SaraikeIa-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 ended June 30, 2019 (the "Statement") being submitted by the company pursuant to the requirement of Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended.

This Statement, which is the responsibility of the Company's Management and has been approved by the Board of Directors, have been prepared in accordance with the recognition and measurement principles 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 revrew.

• 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 whether the 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.
• Based on our review, we draw attention to the Statement:-

Note No.4: regarding non recognition of liability on account of currency fluctuations on foreign currency loan and interest thereon (as required under Indian Accounting Standard— 21) amounting to Rs. 3141.12 lacs on 30.06.2019 as provided in the BIFR Scheme dated 29.07.2004 and also confirmed by AA/FR and Single Bench of Jharkhand High Court, Ranchi. The company has filed Letters Patent Appellate Jurisdiction (LPA) before the Divisional Bench of High Coun' 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 under writ petition filed by Company before the Hon 'b/e High Court of Chhattisgarh, Bilaspur the amount has been included in long terms loans and advances.

184A, Garud Apartments, Pocket-IV, Mayur Vihar Phase-l, Delhi-l 10091, 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 30.06. 2019 (amount unascertained), and
• b) Interest on Soft Loan taken from the Government of Jharkhand under Jharkhand Industrial Rehabilitation Scheme 2003 amounting to Rs. 3471.32 lacs from 10.08.2013 to 30.06.2019 which is subject to representations for waiver.
• 1. Attention is invited to Note No. 3 of the un-audited financial results, the management has 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 company has initiated 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 incurred in past will get wiped off in due course and the company will 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 finance for 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 described in paragraph 3 above, gives a true and fair view in conformity with the aforesaid Indian accounting standards and other accounting principal generally accepted in India of the net loss for quarter ended June 30, 2019.

For K. K. Jain & Co. Chartered Accounta '- FRN 0002465I\g gLW jaw

(Simmi Jain) Panner M.No. 086496

Place: New Delhi Date: 14.08.2019 {JD/U '9086 \1 quAk/CBNSCE'M'

BIHAR SPONGE IRON LIMITED

Registered Office: Umesh Nagar, Chandil District, Saraikela Khasawan , Jharkand-832401 Email:Companysecretary@bsil.org.in/web:www.bsil.org.in CIN: L27106JH1982PLC001633

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

Sr.	Particulars		Quarter Ended
		June 30, 2019	March 31, 2019	June 30, 2018	March 31, 2019
		(Unaudited)	(Audited)	(Unaudited)	(Audited)
$\blacksquare$	Revenue from operations
$\vert \mathbf{II} \vert$	Other Income	174.58	194.79	192.70	864.97
$\vert$ III	Total Income (1 +II)	174.58	194.79	192.70	864.97
IV	Expenses:
	a) Cost of materials consumed
	b) Changes in inventories of finished goods,
	work-in-progress and Stock-in-Trade
	c) Employee benefits expense	40.27	60.16	40.29	177.27
	d) Finance costs	3.45	(1.05)	3.58	8.61
	e) Depreciation and amortization expense	82.31	106.70	107.24	428.95
	$f$ ) Other expenses	28.07	39.32	31.23	130.49
	Total Expenses (IV)	154.10	205.13	182.34	745.32
	Profit / (Loss) before exceptional items and tax
$\vee$	$(III - IV)$	20.48	(10.34)	10.36	119.65
VI	Exceptional Items - Expenses/(Income)net	23.16	(3.59)	14.34	130.52
VII	Profit / (Loss) before tax (V - VI)	(2.68)	(6.75)	(3.98)	(10.87)
VIII	Tax expense:
	Current tax	÷	ŵ
	Deferred tax
	Total
IX	Profit/(Loss) for the period	(2.68)	(6.75)	(3.98)	(10.87)
X	Other Comprehensive Income	NIL	NIL	NIL	NIL
xi	Total Comprehensive Income for the period	(2.68)	(6.75)	(3.98)	(10.87)
Xii	Paid up Equity Share Capital(Face value of Rs.10/each)	9,02,054	9,02,054	9,02,054	9,02,054
Xiii	Earning per equity share: (Not annualised)
	$(1)$ Basic $(Rs.)$	(0.00)	(0.01)	(0.00)	(0.01)
	(2) Diluted (Rs.)	(0.00)	(0.01)	(0.00)	(0.01)

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Notes :

• On conservative basis, the Deferred Tax Assets have not been recognised.
• The Company is a single location single product company and hence the requirements of ND 108 are not. applicable.
• The Company had fuel supply agreement with Central Coalfields Limited and thereafter the supply of coal was discontinued. Due to stoppage of coal supply the operations of the plant were suspended wet 9th Au~gust.201 3.

With the revival of the steel industry, considering the substantial accumulated losses, full erosion of working capital and the liabilities including long term borrowing-s having lured fully along with interest having fallen duathe company has initiated requisite steps for making the plant ready for operations and with a View to generate revenue and make the plant operational, the company has, on OHM-2017 entered in to a facility user agreement with a company specializing in contract manufacturing. Under the said agreement, part of the plant and machinery are to be operated by the said company. With the restart of the plant by them, the » management believea that losses incurred in past will get wiped off and in due course the company will 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 finance for the operations.

• As on 30.06.2019 Disputed liability amounting to Rs.314l.l2 Lacs on account of currency fluctuations on Foreign currency loans obtained by the company and interest thereon, as per Bl-FR scheme dated 29.07.2004 and also confirmed by AAlFR/ Single Bench of J'harkhand High Court, has not been provided by the company pending disposal of Letters Patent App-lent Jurisdiction (LPA) filed before the larger bench of
• No provision has been made for penalty recovered by South East Coalfields Ltdfor Rs. 215.28 lacs on account of short lifting of coal qty. in terms of FSA ,Since the matter is pending under writ petition filed by Company before the Hon'ble High Court of Chattisgathilaspur and hence the amount has been included in long term loans and advances.
• in View of the facts stated under Note No 3 abovethe operation of the Plant was suspended wet. 9th August .2013 and accordingly the provisions for undernoted items of expense have not been made in the accounts for the period from 10th August, 2013 to 30th June, 2019.

(a) Interest on Unsecured Loans taken from Promoters and Other Parties (amounts unascertained),

(b) interest on Soft Loan from Government of Jharkhand under Jharkhand industrial Rehabilitation Scheme, 2003 amounting to Rs.3471.32 lacs which is subject to representations for waiver.

• Exceptional items ineiude expenses of Rs. 23.16 lacs related to the write down in value of the inventories of Raw material ans Stores & Spares to net realisable value.
• Previous period figures have been reg-roupied I recast f rearranged wherever necessary.
• The above financial results have been reviewed by the Audit. Committee and approved by the Board of Directors in their meeting held on August 14, 2019.
• 10 The Limited review , as required under Regulation 33 of SEBl (Listing Obligations & Disclosure Requirements) Regulations 2015 has been completed by Statutory Auditors for the Quarter ended 30th June .2019;

For Bil-MR SPQNGE lRDN LTD.

Place : Date : 14.03.2019

New Delhi. Chairman om: 050'00'2'gs'5i "3

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