Bihar Sponge Iron Ltd — Interim / Quarterly Report 2019

Feb 17, 2020

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/2020 17" February, 2020

The General Manager Listing Centre BSELimited P J 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 Un-audited Financial Results for the quarter and nine months ended on 31 December , 2019 duly approved by the Board of Directors of the Company in their adjourned meeting held on 17" February, 2020 along with the copy of the Limited Review Report of the Statutory Auditors' of the Company.

Kindly acknowledgethe receipt.

Thanking you

Yoursfaithfully

For BIHAR SRONeETresXN UTD Vaeo" Fog \ ZR(s jharkhand ;

Hiseani Mittal ~" Company Secretary & Compince officer E-mail: companyseeret:"s!!.org.in

Encl: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 SpongeIron Limited ("the Company), for the quarter and nine months ended December 31, 2019 (the "Statement") being submitted by the company pursuantto 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, 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 acceptedin 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 currency fluctuations on foreign currency loan and interest thereon (as required under Indian Accounting Standard- 21) amounting to Rs. 3271.16 lacs on 31.12.2019 as provided in the BIFR Scheme dated 29.07.2004 and also confirmed by AAIFR and Single Bench of Jharkhand High Court, Ranchi. The company hasfiled 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 accountof short lifting of coal quantity in term of FSA, since the matter is pending underwrit petition filed by Company before the Hon'ble High Court of Chhattisgarh, Bilaspur the amount has been included in long terms loans and advances.

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184A, Garud Apartments. Pocket-IV, Mayur Vihar Phase-1, Delhi-1 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 31.12.2019 (amount unascertained), and
• b) Interest on Soft Loan taken from the Government of Jharkhand under Jharkhand Industrial Rehabilitation Scheme 2003 amounting to Rs. 3855.29 lacs from 10.08.2013 to 31.12.2019 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 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 managementbelieves that the losses incurred in past will get wiped off 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 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 & nine months ended December31, 2019.

For K. K. Jain & Co. Chartered Accountants FRN 0002465N

2 . oe

(Simmi Jain) Partner M.No. 086496 UDIN:20086496AAAABI4351

Place: New Delhi Date: 17.02.2020

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

STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTH ENDED ON 31ST DECEMBER,2019

	BIHARRegistered	SPONGEIRON	LIMITED,CHANDIL
	Office:UmeshNagar,Email:Companysecretary@bsil.o	ChandilDistrict,rg.in/web:www.bsil.org.in	Saraikela	KhasawanCIN:	Jharkand-832401L27106JH1982PLC001633
	STATEMENTOF UNAUDITEDFINANCIALRESULTS	FOR THEQUARTER	AND NINE	MONTHENDED	ON 31STDECEMBER,2019
Sr.ae	'Particulars		QUARTERENDED		MONTHSNINE	ENDED	Rs. in Lacs
		December31,/2019Unaudited	September30, 2019	December31,2018	December31,2019	December31, 2018	March31,2019
I	Revenuefromoperations		Unaudited-	Unaudited	Unaudited	Unaudited	Audited
llMl	Other IncomeTotal Income(1 +11)	170.81170.81	144.68144.68	229.91229.91	490.07490.07	670.18670.18	864.97864.97
IV	Expenses:a) Cost of materials consumedChangesininventoriesoffinishedgoods,	-	-	-	:	"
	b)]work-in-progress andStock-in-Tradec)}Employeebenefits expense	-41.45	-39.68	-34.92	-	-	-
	d) Finance costse) Depreciation andamortization expense	0.3282.28	3.7882.28	2.10107.78	121.407.55246.87	117.119.66322.25	177.278.61428.95
	f)/Other expensesExpenses(IV)TotalProfit / (Loss) before exceptionalitems andtax	34.40158.45	39.39165.13	27.50172.30	101.86477.68	91.17540.19	130.49745.32
VVl	(Ill - IV)Exceptional Items-Expenses/(Income)net	12.36	(20.45)	57.61	12.39	129.99	119.65
Vil	{Profit / (Loss) before tax (V -VI)	23.16	(16.48)	58.17	29.84	134.11	130.52
Vill	Tax expense:Current tax	(10.80)-	(3.97)-	(0.56)-	(17.45)-	(4.12)	(10.87)
Ix	Deferred taxTotalProfit/(Loss) for the period	--	--	-:	-:	::	ms:-
xxi	Other ComprehensiveIncomeTotal Comprehensive Incomefor	(10.80)NIL	(3.97)NIL	(0.56)NIL	(17.45)NIL	(4.12)NIL	(10.87)NIL
XiiXiii_	the periodPaid upEquity Share Capital(Face valueof Rs.10/¢perequity share: (Not annualised_ Earning)	(10.80)902,054	(3.97)902,054	(0.56)902,054	(17.45)902,054	(4.12)902,054	(10.87)902,054
	(1) Basic (Rs.)(2) Diluted (Rs.)	(0.01)(0.01)	(0.00)	(0.00)(0.00)	(0.02)	(0.00)	(0.01)

• Notes:

  • On conservative basis, the Deferred Tax Assets have not been recognised. The Companyis a single location single product Company and hence the requirements of IND 108 are not applicable. 3 The Companyhad fuel Supply agreement with Central Coalfields Limited and thereafter the Supply of coal was Scontinued. Due t di 0 stoppageof coal 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 in due course the companywill be able to operate in normalcourseofits business. The financial statements, as such have been prepared on going concernbasis on the strength of management's plan ofrevival including reorganization of business and providing the adequatefinancefor the operations.
• • (a) Interest on Unsecured Loans taken from Promoters and Other Parties (amounts unascertained),

(b) Interest on Soft Loan from Governmentof Jharkhand under JharkhandIndustrial Rehabilitation Scheme, 2003 amounting to Rs.3855.29 lacs which is subject to representations for waiver,

• Exceptional items include Rs. 23.16 Lacs related to the write down in value of the inventories of Raw material and Stores & Sparesto net realisable value during the quarter.
• Previousperiod figures have been regrouped / recast / rearranged wherever necessary. The abovefinancial results have been reviewed by the Audit Committee and approved by the Board of Directors in their adjourned meetings held on February 17, 2020.
• 10 2015 The Limited has been review completed , as required by Statutory under Regulation 33 of SEBI (Listing Obligations & Disclosure Requirements) Regulations Auditors for the Quarter and Nine Month ended 31st December 2019.

DIRECTOR For BIHAR SPONGE IRO 4 " (UMESH DIN: Ga 00002757 "W#

Place New Delhi Date: Te Meet