Rohit Ferro PDF

Contents
Notice Directors Report Management Discussion and Analysis Corporate Governance Report Financial Section Form of Proxy and Attendance Slip 01 06 13 16 27 95
Notice
NOTICE is hereby given that the 13th Annual General Meeting of the members of the Company will be held on Saturday, 28th September, 2013 at 10.00 A.M. at 'Rotary Sadan', 94/2,Chowringhee Road, Kolkata - 700 020 to transact the following business : ORDINARY BUSINESS : 1. To receive, consider and adopt the Audited Balance Sheet of the Company as at 31st March, 2013, the Statement of Profit and Loss for the year ended on that date and the report of the Auditors & Directors' thereon. 2. To appoint a Director in place of Mr. Asoke Kumar Basu, who retires by rotation and being eligible, offers himself for re-appointment. 3. To appoint M/s. S. Jaykishan, Chartered Accountants, as Auditors of the Company, to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting and to authorise the Board of Directors to fix their remuneration. SPECIAL BUSINESS : 4. To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution: RESOLVED THAT Mr. Jay Shanker Shukla who was appointed as an Additional Director of the Company by the Board of Directors on 9th October, 2012 to hold office upto the date of the next Annual General Meeting in terms of Section 260 of the Companies Act, 1956 ('the Act') and in respect of whom the Company has received a notice in writing from a member in terms of the provisions of Section 257 of the Act, proposing his candidature for the office of the Director of the Company, be and is hereby appointed as a Director of the Company, liable to retire by rotation. 5. To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution: RESOLVED THAT Mr. Dinesh Biyanee who was appointed as an Additional Director of the Company by the Board of Directors on 1st April, 2013 to hold office upto the date of the next Annual General Meeting in terms of Section 260 of the Companies Act, 1956 ('the Act') and in respect of whom the Company has received a notice in writing from a member in terms of the provisions of Section 257 of the Act, proposing his candidature for the office of the Director of the Company, be and is hereby appointed as a Director of the Company, liable to retire by rotation. 6. To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary Resolution: RESOLVED THAT subject to the provisions of Section 198, 269 and 309, read with Schedule XIII and other applicable provision, if any, of the Companies Act, 1956, including any statutory modification(s) or re-enactment thereof for the time being in force, consent of the Company be and is hereby accorded to the appointment of Mr. Dinesh Biyanee as an Executive Director (Works) of the Company for a period of 1 (One) year w.e.f. 1st April, 2013 on the terms and conditions including remuneration as set out in the agreement submitted to the meeting. RESOLVED FURTHER THAT the Board of Directors be and is hereby authorised to alter and vary the terms and conditions of the said appointment during the continuance of the tenure and grant such further increases in remuneration from time to time as they may deem fit and agreed by Mr. Dinesh Biyanee, within the limits specified in Schedule XIII of the Companies Act, 1956, as may be amended from time to time. By Order of the Board For Rohit Ferro-Tech Limited
Kolkata, 29th August, 2013
Pradip Kumar Agarwal Company Secretary
Annual Report 2012-13
01
Notice
NOTES : 1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING, IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE, INSTEAD OF HIMSELF AND SUCH PROXY NEED NOT BE A MEMBER OF THE COMPANY. PROXIES IN ORDER TO BE EFFECTIVE SHOULD BE COMPLETED, STAMPED AND SIGNED AND MUST BE DEPOSITED AT THE CORPORATE OFFICE OF THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE COMMENCEMENT OF THE MEETING. 2. Explanatory Statement pursuant to Section 173(2) of the Companies Act, 1956 in relation to the Special Business in Item No. 4, 5 and 6 to be transacted is annexed hereto. 3. The relevant details, as required under Clause 49 of the Listing Agreement entered into with the Stock Exchanges, of person seeking appointment/re-appointment as Director under Item No. 2, 4 and 5 is annexed hereto as additional information. 4. Register of Members and Share Transfer Books shall remain closed from Monday, 23rd September, 2013 to Saturday, 28th September, 2013 (both days inclusive). 5. Pursuant to the provisions of Section 205C of the Companies Act, 1956, the Company has transferred unclaimed refund amount of ` 10,410/- pertaining to Initial Public Offer of Company to the Investor Education and Protection Fund (IEPF) established by the Central Government, which was remained unclaimed/unpaid for a period of seven years from the date it became due for payment. 6. Members are requested to note that pursuant to the provisions of Section 205C of the Companies Act, 1956, the dividend remaining unclaimed/unpaid for a period of seven years from the date it becomes due for payment shall be credited to the Investor Education and Protection Fund (fund) set up by the Central Government. Following table gives information relating to outstanding unclaimed/unpaid dividend and due date for transfer of the same to Investor Education and Protection fund : Financial Year 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Date of Declaration 21.09.2006 28.09.2007 25.09.2008 22.09.2009 27.09.2010 15.09.2011 25.09.2012 Due date of transfer to IEPF 25.10.2013 31.10.2014 26.10.2015 22.10.2016 28.10.2017 19.10.2018 26.10.2019
Members who have so far not claimed the dividend declared as aforesaid, are requested to forward their claims to the Company's Registrar and Share Transfer Agents immediately as no claim shall lie against the fund or the Company in respect of individual amounts once credited to the said fund. 7. Shareholders holding shares in physical form are requested to advice any change of address immediately to the Company's Registrar and Share Transfer Agents, M/s. Maheshwari Datamatics (P) Ltd., 6, Mangoe Lane, 2nd Floor, Kolkata - 700 001 and to their respective DPs in respect of Equity Shares held in dematerialised form. 8. Corporate Members intending to send their authorised representatives to attend the meeting are requested to send a certified copy of the Board Resolution authorising their representative to attend and vote on their behalf at the Meeting. 9. Members/Proxies are requested to bring their Attendance Slip for attending the Meeting. 10. Members who hold shares in dematerialised form are requested to write their Client ID and DP ID and those who hold shares in physical form are requested to write their Folio Number in the attendance slip for attending the meeting. In case of joint holders attending the meeting, only such joint holder who is higher in the order of names will be entitled to vote.
02
Rohit Ferro-Tech Limited
Notice
11. Members desirous of obtaining any information concerning the accounts and operations of the Company are requested to send their queries to the Company at least ten days before the meeting so that the same could be complied in advance. 12. Since the securities of the Company are compulsorily tradable in electronic form, to ensure better investor service and elimination of risk of holding securities in physical form, it is requested that the members holding shares in physical form to get their shares dematerialised at the earliest. Important Announcement to Members Pursuant to Circular No. 17/2011 dated 21.04.2011 and Circular No. 18/2011 dated 29.04.2011, Ministry of Corporate Affairs (MCA) has launched "Green Initiative in Corporate Governance" whereby the Companies are allowed to send notices, documents and other communication to the shareholders in electronic mode. In view of the above circulars issued by MCA, like last year, this year too your company is sending documents like the notice convening the General Meeting, Financial Statements, Directors' Report, Auditors' Report etc. to the email addresses provided by you to your Depository Participant(DP)/ Company's Registrar and Transfer Agent, M/s. Maheshwari Datamatics Private Limited. The Company encourages its shareholders to support the 'Green Initiative' by registering their email address with their respective Depositories/Company's Registrar and Transfer Agent and intimate changes in the email address from time to time. Even after registering the email address, members are entitled to receive such communication in physical form, upon receipt of request for the same, by post/courier free of cost. The Annual Report of 2013 (including notice of Annual General Meeting) will also be available on the Company's website www.rohitferrotech.com for download by the members. Format for request letter for registration/changes of email id is also available in the Investor's Corner of the Company's website. The physical copies of the aforesaid documents will also be available at the Company's Corporate Office for inspection during business hours upto the date of Annual General Meeting. EXPLANATORY STATEMENT AS REQUIRED UNDER SECTION 173(2) OF THE COMPANIES ACT, 1956. Item No. 4 Mr. Jay Shanker Shukla was appointed as an Additional Director in terms of Section 260 of the Companies Act, 1956 by the Board of Directors at their meeting held on 9th October, 2012 to hold office upto the date of next Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 along with the deposit from a member proposing the candidature of Mr. Jay Shanker Shukla as a Director of the Company. None of the Directors except Mr. Jay Shanker Shukla himself are concerned or interested in the aforesaid resolution. The Board of Directors recommends the resolution set out in item no. 4 for your consideration and approval. Item No. 5 & 6 Mr. Dinesh Biyanee was appointed as an Additional Director in terms of Section 260 of the Companies Act, 1956 by the Board of Directors at their meeting held on 1st April, 2013 to hold office upto the date of next Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 along with the deposit from a member proposing the candidature of Mr. Dinesh Biyanee as a Director of the Company. Subject to approval of members at the ensuing Annual General Meeting, the Board of Directors of the Company at its meeting held on 1st April, 2013, based on the recommendation of the Remuneration Committee has appointed Mr. Dinesh Biyanee as an Executive Director (Works) of the Company for a period of 1(One) year w.e.f. 1st April, 2013 on the terms and conditions mentioned in the Agreement dated 1st April, 2013.
03
Notice
Mr. Dinesh Biyanee is a B.Com from Calcutta University. He has been associated with the Company since May, 2008. He is looking after the overall management of the Haldia unit. The Board recommends his induction to the Board. An abstract pursuant to provision of Section 302 of the Companies Act, 1956 setting out the material terms of Mr. Dinesh Biyanee as provided in the agreement dated 1st April, 2013 with respect to his appointment and remuneration payable was sent to all members on 12th April, 2013. The material terms and remuneration payable in terms of Agreement dated 1st April, 2013 are as follows : Tenure : 1(one) year with effect from 1st April, 2013. Remuneration : (a) Salary : ` 75,250/- (Rupees Seventy Five Thousand Two Hundred and Fifty Only) per month. (b) Perquisites/Allowances : He shall be entitled to the following Perquisites/Allowances : i. House Rent Allowance : ` 37,625/- per month. ` 7,500/- per month. ` 1,500/- per month. ` 66,250/- per month. As may be decided by the Board. As per applicable rules of the Company. As may be decided by the Board, provided that it shall not exceed the ceiling limit as envisaged under the Payment of Gratuity Act, 1972.
ii. Transport Allowance : iii. Medical Allowance : iv. Special Allowance : v. Bonus : vi. Leave Encashment : vii. Gratuity :
Leave encashment and Gratuity shall not be included in the computation of ceiling on remuneration. (c) Leave : Executive Director (Works) will be entitled to leave as per applicable Rule of the Company. (d) Power of the Board to increase Remuneration : The Board of Directors shall have an authority to grant such further increases from time to time as they may deem fit, within the limits specified in Part II of Schedule XIII of the Act, as may be amended from time to time. (e) Remuneration in the event of inadequacy or absence of profits : In case of absence or inadequacy of net profits in any financial year, the remuneration payable to Mr. Dinesh Biyanee shall be restricted to the ceiling provided in Section II of Part II of Schedule XIII of the Act. Memorandum of Concern or Interest of the Directors None of the Directors of the Company, except Mr. Dinesh Biyanee, are in any way concerned or interested in the aforesaid appointment. Inspection The relevant Agreement entered into by the Board with Mr. Dinesh Biyanee is available for inspection by members at the Corporate Office of the Company on any working day during business hours. The Board of Directors recommends the resolution set out in item no. 5 & 6 for your consideration and approval.
04
Notice
Additional Information Disclosure pursuant to Clause 49 of the Listing Agreement with regard to the Directors seeking appointment/re-appointment at the ensuing Annual General Meeting (Refer Item No. 2, 4 and 5 of the Notice) : Name of the Director Age Date of Appointment 11th August, 2008 Brief resume and nature of expertise in functional area He is a Bachelor in Engineering (Mechanical) and has 35 years of experience in Ferro Alloys Industry. He has worked with SAIL for 5 years under Alloy Steel Plant in Durgapur, for the expansion project. He also has an experience of 14 years in the field of design, operation and maintenance including commissioning of Cement Industries both in India and abroad. He holds a graduate degree in commerce from Calcutta University and Diploma in International Trade. He has wide experience in the field of finance, marketing, production and procurement. Other Directorship*/Committee Memberships** Directorship : Nil Committee Memberships : Nil
Mr. Asoke Kumar Basu
63 Years
Mr. Jay Shanker Shukla
53 Years
9th October, 2012
Directorships : Impex Ferro Tech Limited Ankit Metal & Power Limited Committee Memberships : Impex Ferro Tech Limited - Audit Committee - Remuneration Committee - Investors Grievance cum Share Transfer Committee Ankit Metal & Power Limited - Audit Committee - Remuneration Committee - Investors Grievance and Share Transfer Committee
Mr. Dinesh Biyanee
49 Years
1st April, 2013
He is a B.Com from Calcutta University. He is associated with the Company since May, 2008 and was instrumental in setting up of Haldia unit of the Company. He is looking after the overall management of the Haldia Unit since its inception.
Directorships : Nil Committee Memberships : Nil
Mr. Asoke Kumar Basu, Mr. Jay Shanker Shukla and Mr. Dinesh Biyanee do not hold any Equity Shares in the Company. * Excludes Directorship in Private/Foreign Companies and Companies under Section 25 of the Companies Act, 1956. ** Committee herein refers Audit Committee/Investors Grievance cum Share Transfer Committee and Remuneration Committee. Annual Report 2012-13 05
Directors Report
Dear Shareholders
Your Directors are pleased to present the 13th Annual Report of the Company together with Audited Accounts for the financial year ended 31st March, 2013. Financial Highlights Particulars Revenue from Operation (net) Other Income Total Revenue Profit before Finance Cost, Depreciation and Tax Less : Depreciation & Amortisation Less : Finance Cost Less : Tax Expenses Net Profit after Tax Less : Exceptional Item Profit for the year Add : Balance brought forward from previous year Profit available for appropriation Appropriation of Profits Proposed Dividend Corporate Dividend Tax Balance carried over to Balance Sheet Financial and Operational Review During the year under review the net sales/income from operation increased from ` 1,677.30 Crores in FY 2011-12 to ` 2,258.54 Crores in FY 2012-13 representing an increase of 34.65%. Profit after tax for the year stood to ` 55.53 Crores as compared to ` 40.31 Crores in previous year registering a growth of 37.75%. Dividend Considering the financial requirements towards the refurbishment and modernisation of Sub-merged Arc furnaces at Bishnupur and Jajpur and increased Working Capital Requirement, which we believe will enhance shareholders value in long term, the Director of your Company do not recommend any Dividend for the financial year 2012-13. Subsidiaries The Company carries a part of its business activity through a Wholly Owned Subsidiary Company M/s. SKP Overseas Pte. Ltd. incorporated at Singapore. During the year under review the Wholly Owned Subsidiary Company has acquired 60% equity stake in a Company M/s. PT Bara Prima Mandiri of Indonesia, a Company in which M/s. SKP Overseas Pte. Ltd. already had 60% economic interest. By virtue of the acquisition of equity stake M/s. PT Bara Prima Mandiri of Indonesia has become a subsidiary of M/s. SKP Overseas Pte. Ltd. Consolidated Financial Statement Pursuant to the provisions of Section 212(8) of the Companies Act, 1956 (Act), the Ministry of Corporate Affairs vide its General Circular No. 2/2011 dated February 8, 2011, has granted a general exemption subject to certain conditions to Holding Companies from complying with the provisions of Section 212 of the Act, which requires attaching of the Balance Sheet, 06 Rohit Ferro-Tech Limited (` in Crores) Standalone Current Year Previous Year 31-03-2013 31-03-2012 2,258.54 11.68 2,270.22 242.81 29.53 143.84 13.91 55.53 26.61 28.92 233.63 262.55 262.55 262.55 1,677.30 7.61 1,684.91 188.15 21.69 106.21 19.94 40.31 197.98 238.29 4.01 0.65 233.63 238.29
Directors Report
Profit & Loss Account and other documents of its Subsidiary Companies to its Balance Sheet. Accordingly, the said documents are not being included in this Annual Report. The financial data of the Subsidiaries forms part of the Annual Report. The Company will make available the said annual accounts and related detailed information of the Subsidiary Companies upon the request by any member of the Company or its Subsidiary Companies. These accounts will also be kept open for inspection by any member at the Corporate Office of the Company and the Registered Office of the Subsidiary Companies. As stipulated in Clause 41 of the Listing Agreement entered into with the Stock Exchanges, the Company has prepared Consolidated Financial Statements in accordance with the relevant Accounting Standards (AS-21) issued by the Institute of Chartered Accountants of India (ICAI). The Audited Consolidated Financial Statements along with the Auditors Report thereon form part of the Annual Report. Changes in Share Capital During the year under review, the Company has allotted 3,35,00,000 equity shares of ` 10/- each on preferential basis at a premium of ` 50/- per share aggregating to ` 201.00 Crores to the entities belonging to promoter group and strategic investors belonging to non promoters group. Consequent to said allotment, the paid up Share Capital of the Company stood increased to ` 1,13,77,61,230. 00. The entire proceeds received from the preferential allotment has been utilised towards the object of the issue. New Projects and Expansions Jajpur Unit- Odisha Captive Power Plant of 67.5 MW The Directors of your Company are pleased to inform that the installation of the 67.5 MW Captive Power Plant at its Jajpur unit is in progress. The basic engineering, civil work and structural fabrication has progressed significantly. All major equipments having long lead time has been received at the site and erection work is under process. 33 MVA Furnace The basic engineering, civil and fabrication work of 33 MVA Arc Furnace at Jajpur unit is under progress. The Company has placed order for all major Plant & Machineries and the delivery of the Plant & Machineries are as per Schedule. Coal Mines The Company has acquired 60% equity stake in a coking coal mine in Indonesia owned by M/s. PT Bara Prima Mandiri through its Subsidiary M/s. SKP Overseas Pte. Ltd., Singapore. The mine located in Central Kalimantan province of Indonesia has a estimated coking coal reserve of 10 MN Tonnes. The Company is also having 60% economic interest in thermal coal mine in Indonesia owned by M/s. PT Palopo Indah Raya through its aforesaid Subsidiary. The mine located in Central Kalimantan Province of Indonesia has an estimated thermal coal reserves of 20 MN Tonnes. Credit Rating The Company has retained CARE BBB (Triple B) credit rating for its long term and medium term debts/facilities and CARE A3 (A Three) credit rating for its short term debts/facilities accorded by the credit rating agency Credit Analysis & Research Ltd. (CARE). Public Deposits The Company has not accepted any fixed deposits from the public and as such, no amount of principal and interest was outstanding as on the date of the Balance Sheet. Insurance The properties and insurable assets and interests of the Company, like building, plant and machinery and stocks, among others, are adequately insured. Awards & Achievements During the year under review the Company was awarded for Export Excellence by EEPC INDIA for star performance in 20102011 in Ferro Alloy Segment (Eastern Region).
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Directors Report
Directors Mr. Asoke Kumar Basu retire by rotation and being eligible, offer himself for re-appointment. Mr. Kailash Chand Jain has resigned from the Directorship of the Company with effect from 9th October, 2012. The Board of the Directors recorded its appreciation for the valuable services rendered by Mr. Kailash Chand Jain. Mr. Jay Shanker Shukla has been appointed as an Additional Director w.e.f. 9th October, 2012 to hold office upto the date of the next Annual General Meeting. The Company has received a notice under Section 257 of the Companies Act, 1956 proposing the candidature of Mr. Jay Shanker Shukla as Director of the Company. Mr. Binit Jain has resigned from the position of Executive Director as well as from the Directorship of the Company with effect from 1st April, 2013. The Board of Directors recorded its appreciation for the valuable services rendered by Mr. Binit Jain to the Company. Mr. Dinesh Biyanee has been appointed as an Additional Director w.e.f. 1st April, 2013 to hold office upto the date of the next Annual General Meeting. The Company has received notice under Section 257 of the Companies Act, 1956 proposing the candidature of Mr. Dinesh Biyanee as Director of the Company. Based on the recommendation of the Remuneration Committee and subject to the approval of the members in the ensuing Annual General Meeting, Mr. Dinesh Biyanee has been appointed as an Executive Director (Works) of the Company for a period of 1 (one) year w.e.f. 1st April, 2013. None of the Directors of the Company are disqualified for being appointed as Directors, as specified in Section 274(1)(g) of the Companies Act, 1956. As required under Clause 49 of the Listing Agreement the additional information on the Directors seeking appointment/re-appointment is annexed as an additional information to the notice. Management Discussion & Analysis and Corporate Governance Report A Management Discussion & Analysis Report and a Report on Corporate Governance along with the certificate from the Company Secretary in Practice regarding compliance with mandatory requirements as stipulated under Clause 49 of the Listing Agreement with Stock Exchanges, is presented in a separate section forming part of the Annual Report. Directors' Responsibility Statement The Directors confirm :
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that in the preparation of the annual accounts, the applicable accounting standards have been followed and no material departures have been made from the same; that they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period; that they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; that they have prepared the accounts for the financial year on a 'going concern' basis.
Auditors The Statutory Auditors, M/s. S. Jaykishan, Chartered Accountants, holds office till the conclusion of the ensuing Annual General Meeting and being eligible, offer themselves for re-appointment. The Company has received a letter from them to the effect that their appointment, if made, would be within the limits prescribed under Section 224(1-B) of the Companies Act, 1956 and they are not otherwise disqualified within the meaning of sub section (3) of Section 226 of the Companies Act, 1956 for such appointment. Auditors Observation Based on the Audit Report issued by the Auditors of the Company's Subsidiary M/s. SKP Overseas Pte Ltd., the Auditors of the Company qualified their report on the Consolidated Accounts of the Company. The observation of the Auditors in case of the Company's subsidiary M/s. SKP Overseas Pte. Ltd. and the comment of the Board of Directors thereon are as here under : a) The Auditors of the Company qualified their report with remarks that due to non receipt of the financial statement of
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Directors Report
M/s. PT Pacific Samudra Perkasa the Auditors are not able to satisfy themselves on the carrying value of the investment at the end of the year. The Board of Directors state that due to non availability of the financial statement of M/s PT Pacific Samudra Perkasa in desired time, the management of the subsidiary company were unable to provide the financial statement of the investee company for the purpose of ascertaining the carrying value of the investment. The Company's investment is however secured by way of pledge of the bond of the said investee company for acquiring economic interest in a coal mine to the extent of investment made by the Company. b) The Auditors of the Company qualified their report with remarks that they are unable to satisfy themselves in the recoverability of the trade receivables amounted to USD 0.91 million due from a Debtors. The Board of Directors state that due to unfavourable market conditions, the payment could not be received within the agreed time as mentioned in the joint minutes with the debtor. The Company has persuaded for the same and is expected to be received very soon. Cost Audit As per the requirement of the Central Government and pursuant to the provision of Section 233B of the Companies Act, 1956, the Company has re-appointed Mr. S. Banerjee, Cost Auditors to audit the cost accounts of the Company for the year 2012-13 from 1st April, 2012 to 31st March, 2013 for which necessary approval from Central Government has been received. The Cost Audit Report in respect of the financial year 2012-13 will be filed within the due date. The Company has reappointed Mr. S. Banerjee as Cost Auditors for the financial year 2013-2014. Particulars of Employees Details of employee drawing remuneration in excess of the limit specified under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Amendment Rules, 2011 is given below: Name Age (Years) 29 Qualification Date of Commencement of employment 27th August, 2007 Designation Remuneration Experience received (Year) (gross) ` 50.00 lacs* 6 Last employment
Mr. Rohit Patni
Engineering (BE) and MBA
Managing Director
* re-appointed as Managing Director w.e.f. 27th August, 2012 at an increased remuneration of ` 5 lacs p.m. Energy Conservation, Technology Absorption and Foreign Exchange Earning and Outgoing A statement giving details of Conservation of Energy, Technology Absorption and Foreign Exchange Earning and Outgo as required under Section 217(1)(e) of the Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 is annexed to this report. Acknowledgement The Board also desires to place on record its appreciation for the support and co-operation received from its Shareholders, Regulatory & Government Authorities, Suppliers, Customers and Bankers. The Company has always looked upon them as partners in its progress. It will be the Company's endeavour to build and nurture strong links with trade based on mutuality, respect and co-operation with each other. The Board wishes to record their deep sense of appreciation for the committed services of all the employees of the Company. For and on behalf of the Board
Suresh Kumar Patni Chairman
09
Annexure to the Directors Report

Information pursuant to Section 217(1)(e) of the Companies Act, 1956 A. Conservation of Energy a) i. Energy Conservation Measure : Close monitoring of high energy consuming equipment in plants.
ii. Using power factor controller/capacitors to maintain power factor. iii. Keeping maximum demand under control by scheduling other load during equipment testing, among others. iv. Installation of HT & LT Capacitor bank. v. Installation of VVVF driver with ID fans. vi. Installed energy efficient light fittings in the shop floor, office and other areas. vii. Effective maintenance and daily monitoring of Capacitor bank for improvement of power factor. viii. Replacement of old motors with energy efficient motor. ix. Right sizing of motors. b) Additional investments and proposals, if any, being implemented for reduction of consumption of energy : To install LED lamps, energy efficient equipments, resizing of motors etc. The Company also proposes to install solar power equipments like night lighting systems and solar power pump sets to further conserve carbon emitting thermal power. c) Impact of the measures at (a) and (b) above, for reduction of energy consumption and consequent impact on cost of production of goods. The power requirements in certain products /process has come down and emission level has also come down. d) Total energy consumption and energy consumption per unit of production as per Form A attached. B. Technology Absorption Particulars with respect to technology absorption as per Form B attached C. Foreign Exchange Earning and Outgo a) Activities relating to exports, initiatives taken to increase exports, development of new export markets for products and services and export plans : Sizeable income of the company comes in foreign exchange as a result of export of ferro alloys. The export revenue during the year under review was ` 990.08 Crores against ` 725.96 Crores during the previous year. The Export team regularly visit the international market, customer and end users. The Export team participates in all major trade fairs and events to improve the Company's visibility amongst the global market and geographies. b) Total Foreign Exchange used and earned : Sl. No. 1 2 Particulars Foreign exchange earned Foreign exchange used 31-03-2013 960.26 535.47 (` in Crores) 31-03-2012 707.61 392.54
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FORM - A (Disclosure of Particulars with respect to Conservation of Energy) Particulars A. Power and fuel consumption 1. Electricity Total unit Purchased/Consumed Total Cost (`) Average rate per unit (`) 2. Coal and Coke Quantity (MT) Total Cost (`) Average rate per MT (`) B. Consumption Per Unit of Production Ferro Alloys 1. Electricity (Unit/MT) 2. Coal and Coke (Kg/MT) C. Consumption Per Unit of Production Stainless Steel 1. Electricity (Unit/MT) 597.57 569 3,999.56 528.20 4,027 543 1,18,784 1,41,94,46,718 11,950 1,11,997 1,36,91,15,393 12,225 95,60,49,614 4,81,80,74,549 5.04 86,25,43,800 3,82,36,29,936 4.43 31-03-2013 31-03-2012
FORM - B (Disclosure of Particulars with respect to Technology Absorption) A. Research and Development (R&D) a) Specific Areas in which R & D carried out by the Company : i. Quality Control Management and Technology
ii. Cost & Productivity b) Benefits derived as a result of the above R &D : i. High Chromium recovery in finished goods.
ii. Better Metal recovery from Slag. iii. Reduction in per unit power consumption. iv. Increased acceptability of products in local and global market. c) Future plan of Action : Adoption of new technology to make ore fines suitable for direct charging into furnace. d) Expenditure on R &D : a) Capital b) Recurring c) Total d) Total R& D expenditure as a percentage of total Turnover Nil ` 30.19 lacs ` 30.19 lacs 0.014% Annual Report 2012-13 11

B. Technology Absorption, Adaptation and Innovation 1. Efforts, in brief, made towards technology absorption, adaptation and innovation : The Company has adopted and is continually updating the latest available technology. The technical team visit global market periodically to adopt and update the latest available technology. 2. Benefits derived as a result of the above efforts : The Company is successful in improving the quality of its products and reducing consumption of input. 3. Particulars of imported technology during last 5 years : Nil For and on behalf of the Board
Suresh Kumar Patni Chairman
12
Management Discussion & Analysis Report

Economic Overview The world economy witnessed a major slowdown in 2012 due to the uncertainties of fiscal imbalance in many economies coupled with reduced trade and investments. The report of the International Monetary Fund (IMF) shows that the global GDP expanded at 3.2% in 2012, with average growth rates of 1.2% and 5.1% in advanced and developing economies, respectively. Indian economy growth rate declined from 6.2% in 2011-2012 to 5% in 2012-2013, the slowest growth of the economy in a decade which was mainly due to decline in service and industrial sectors. The subdued performance of service sector was mainly due to slowdown in global economy and the decline in industrial output was due to slow down in mining, manufacturing and capital goods sector. The reforms measures announced by the Government of India in the form of reducing fuel subsidies, implementation of big-ticket infrastructure projects, direct cash transfers of subsidies, recent changes in FDI and several regulatory reforms including the new Companies Bill, Land Acquisition Bill and the Direct Tax Code augurs well for a pick-up in growth in 2013-14. Ferro Alloys Industry Ferro alloys are used in the production of steel as de-oxidant and alloying agents and act as an intermediate industry to the iron & steel industry. The demand and prices of ferro alloys depend on the production and consumption of steel which in turn depends upon its user industries. The product mix of ferro alloys consists of bulk ferro alloys-HC ferro manganese, silico manganese, ferro silicon, HC ferro chrome, charge chrome etc and noble ferro alloys-ferromolybdenum, ferrovanadium, ferrotungsten, ferro-silicon magnesium, ferro-boron and ferro-titanium. The average global consumption of manganese alloys is about 10-12 (kgs) per ton of steel, according to the International Manganese Institute. Over 80% of the world's ferrochrome is utilised in the production of stainless steel. Stainless steel depends on chromium for its appearance and its resistance to corrosion. The average chrome content in stainless steel is approximately 18%. Having abundant availability of key resources comprising chrome ore and manganese ore, trained and cost-effective manpower and access to key consumption markets both within the country and outside, India has emerged as a significant ferro alloys manufacturing nation. Going forward, the demand for Ferro alloys is expected to improve due to increase in investment plan in road sector, expansion in railway, increase in volume by automobile sector, uses of special steel in power sectors and refocus on manufacturing sector. Stainless Steel Industry The Indian iron and steel industry is nearly a century old with the first integrated plant set up in 1907. It was the first core sector to be completely freed from the licensing regime (in 1990-91) and the pricing and distribution controls. The New Industrial policy adopted by the Government of India has opened up the iron and steel sector for private investment by removing it from the list of industries reserved for public sector and exempting it from compulsory licensing. Soaring demand by sectors like infrastructure, real estate, automobiles, railways, airports and other transport system at home and abroad, has put India's steel industry on the world map. As per ISSF, the per capita consumption of stainless steel in India is a little more than 2 kgs. This low per capita consumption of stainless steel in India presents immense opportunities for growth in domestic stainless steel market.
13

Opportunities and Threats The demand for ferro alloys is driven by steel production, which in turn depends on growth from the infrastructure, housing, automobile and consumer durable industries. India, at a per capita steel consumption of 60 kgs, is just above the average across most of Africa and much below the global average of 215 kgs, thereby reflecting massive under-penetration and immense opportunities for growth, which will in turn, drive ferro alloys demand as these are key input resources for iron and steel manufacture. Electrical energy is one of the major input in production of ferro alloys and high power tariff is a threat for the ferro alloys industry. The element of cross subsidisation to agriculture, low power load factor and transmission and distribution losses lead to an increase in power costs. Apart from electrical energy, the industry also faces challenges of acquiring good quality raw materials like high grade ores and coke. The unavailability of rakes for transportation of raw materials from mines and poor infrastructure at ports result in pile-ups and increase in logistic and inventory cost. To mitigate the increasing power cost risk the ferro alloys producers are now focusing on setting up their captive power units. This will help reduce the input cost and ensures continuous supply of power to the downstream project. In the long run this effort of backward integration shall eventually help the domestic ferro alloys producers to compete in the international market. Moreover with India remaining as one of the largest producers of manganese ore, there is adequate availability of the resource for the production of manganese based ferro alloys. Further, it is hoped that the government would recognise the challenges arising out of periodic administered price increases of power and input materials which hamper the competitiveness of this industry and take steps to address them urgently to enable the ferro alloys producers to compete in the domestic as well as international markets. The usage and application of Stainless Steel is fast expanding in various fields like house ware, hardware, furniture, machinery, railways, building, construction and automotive industry. The per capita consumption of stainless steel in India is around 2 kgs. The low per capita consumption of stainless steel, provides ample opportunity for the growth at domestic level. However, the un remunerative prices, high capital cost, high cost of basic input and services, sluggish economic growth, high inflation, tightening of monetary policy, amongst others may effect the growth of industry in the medium term. Risks and Concerns The cost-effective availability and quality of essential raw material resources is a global challenge. India has rich mineral resources. It has abundance of mineral resources including iron ore, coal, chromite and manganese ore and many other raw materials. The Company is maintaining a healthy position in terms of raw material supply having arrangements with domestic and international manganese ore suppliers. The Company has access to coking and thermal coal mine owned through its wholly owned Subsidiary Company. Electricity comprises a key cost component in the total operating cost structure and the high administered prices of this essential input impacts the competitiveness of ferro alloys and iron and steel Industry. The ferro alloys producers are now focusing on making their units self reliant by setting up their own power units. This not only reduces the input cost but ensures continuous supply of power. The 67.5 MW captive power plant under implementation shall enables the Company to emerge self-reliant in its power needs and reduce dependence on the expensive grid electricity. The steel industry is subject to cyclical swing and the industry has experienced only a marginal increase in 2012 due to unfavorable economic condition globally. It is estimated that the world steel consumption will double in next 25 years and the quality improvement of Indian steel combined with low cost advantages will definitely help in export market. There is a enormous scope for increasing the consumption of iron and steel in India in almost all sector. The untapped potential of increasing the consumption, even to reach at the comparable position of developing economy, a quantum jump in the iron and steel will be required. The Company's sales are well-spread to key consumption centers at the domestic and international level . The Company is developing new market segment and enhancing value added services to its customers. 14 Rohit Ferro-Tech Limited

The Company deals in several currencies and the volatility in the currencies may adversely affect the commercial transaction outcome. The Company is having an adequate exchange hedging policy to safeguard the trading margin against the foreign exchange movement. Segment-wise Performance Ferro Alloys During the year under review the Company has produced 2,24,886 MT of ferro alloys against 2,06,227 MT of ferro alloys in previous year registering a growth of 9.05% over previous year. The gross revenue from the ferro alloys segment was ` 1,590.94 Crores. The ferro alloys export during the year under review has increased by 26.87% to 1,62,005 MT. Stainless Steel During the year under review, the Company has produced 94,722 MT of stainless steel against 54,000 MT in previous year registering a growth of 75.41% over previous year. The gross revenue from the stainless steel segment was ` 808.05 crores. The secondary segment details identified as the geographical segment based on the location of customers within India and outside India is given in Notes no. 35 to the Annual Accounts. Internal Controls and Systems The Company has implemented proper and adequate system of internal controls commensurate with the size and nature of its operations to provide reasonable assurance that all assets are safeguarded, transactions are authorised, recorded and reported properly, applicable statutes and corporate policies are duly complied with. Some significant features of internal control systems are :
l l
Adequate documentation of policies, guidelines, authorities and approval procedures covering all important functions. Deployment of an ERP system which covers most operations and is supported by a defined on-line authorisation protocol. Ensuring complete compliance with laws, regulations, standards, and internal procedures and systems. Ensuring the integrity of the accounting system, the properly authorised recording and reporting of all transactions. Ensuring a reliability of all financial and operational information. The Company has an Audit Committee with majority of Independent Directors as members. The committee periodically reviews significant audit findings, adequacy of internal control and compliance with Accounting Standards, amongst others. The Company also takes quarterly compliance certificate in respect of various applicable laws from the concerned departmental heads and place the same before the board.
l l l l
Industrial Relations and Human Resources Human Resource is a critical asset for a Company's growth. Human Resource Management is important, owing to a dearth in skilled and experienced manpower. The Company's human capital comprises a prudent mix of youth and experience. It employs contract labourers in its manufacturing facilities. The Company recruits judiciously through industry contacts, newspaper advertisements and consultancies. The Company also recruits trainees from reputed ITIs, technical and professional institutes. The Company maintained harmonious relationship with all its workers and there were no strikes or lockouts during the year under review. As on date of this report, the Company has 927 employees on its payroll.
15
Corporate Governance Report

Corporate Governance Philosophy We believe that good Corporate Governance is a key driver of sustainable corporate growth and long term value creation of our stakeholders. Corporate Governance involves being responsive to aspirations of our stakeholders besides ensuring compliance with regulatory requirements. The Company has always been taking the spirit of various legislations as guiding principles and proposes to go well beyond statutory compliance by establishing such systems and procedures as are required to make the management completely transparent and institutionally sound. We are committed to conduct the business upholding the core values like transparency, integrity, honesty, accountability and compliance of all statutes. We recognise that this is a conscious and continuous process across the Organisation, which enables the Company to adopt best practices as we incorporate improvements based on the past experience. Board of Directors As on 31st March, 2013 the Board consisted of 7 (Seven) Directors headed by Mr. Suresh Kumar Patni, Non-Executive Chairman with 2 (Two) Executive Directors and 5 (Five) Non-Executive Directors, of which, 4 (Four) are Independent. The composition of the Board during the year was in conformity with Clause 49 of the Listing Agreement executed with the Stock Exchanges. Post 31st March, 2013 the following changes took place in the Board of the Company : l Mr. Binit Jain has resigned from the position of Executive Director as well as from the Directorship of the Company w.e.f. 1st April, 2013. l Mr. Dinesh Biyanee has been appointed as an Additional Director w.e.f. 1st April, 2013 to hold office upto the date of the next Annual General Meeting. Based on the recommendation of the remuneration committee and subject to the approval of the member in the ensuing Annual General Meeting, Mr. Dinesh Biyanee has been appointed as an Executive Director (Works) of the Company for a period of 1 year w.e.f. 1st April, 2013. The composition of the Board post such change remains the same. None of the Directors on the Board are member of more than ten Committees and they do not act as Chairman of more than five Committees across all the Companies of which they are the Directors. The Directors regularly inform the Company about the changes in their positions as and when changes take place, apart from the annual disclosures. The composition and category of the Board of Directors of the Company as on 31st March, 2013 along with the number of Board meetings attended by the Directors during the year 2012-13 are given below : Name of the Director Category No. of Board Meetings Attended No. of Directorship in other Public Limited Companies incorporated in India 12 No. of Committee positions held in other Public Limited Companies $ As Member 2 As Chairman No Whether attended the Last AGM
Mr. Suresh Kumar Patni Mr. Rohit Patni Mr. Jatindra Nath Rudra Mr. Jayanta Kumar Chatterjee Mr. Asoke Kumar Basu Mr. Ankit Patni % Mr. Kailash Chand Jain * Mr. Jay Shanker Shukla ** Mr. Binit Jain # Mr. Dinesh Biyanee ## 16
Promoter/ Non-Executive Chairman Promoter/ Executive Independent/ Non-Executive Independent/ Non-Executive Independent/ Non-Executive Promoter/ Executive Independent/ Non-Executive Independent/ Non-Executive Executive Executive
12
13 12 11 10 2 4 4 5 N.A.
10 1 1 2 1 Nil
1 2 Nil
1 2 Nil
Yes Yes Yes Yes N.A. Yes N.A. No N.A.

Notes : $ Only the two committees viz. Audit Committee and Investors/Grievance Committee are considered for this purpose. % Mr. Ankit Patni has resigned from the post of Joint Managing Director as well as Directorship of the Company w.e.f. 24th August, 2012. * Mr. Kailash Chand Jain has resigned from the Directorship of the Company w.e.f. 9th October, 2012. ** Mr. Jay Shanker Shukla has been appointed as an Additional Director (Independent/Non-Executive) w.e.f. 9th October, 2012 to hold office upto the date of the next Annual General Meeting. # Mr. Binit Jain has resigned from the position of Executive Director as well as from the Directorship of the Company w.e.f. 1st April, 2013.
## Mr. Dinesh Biyanee has been appointed as an Additional Director w.e.f. 1st April, 2013 to hold office upto the date of the next Annual General Meeting. Based on the recommendation of the Remuneration Committee and subject to the approval of the members in the ensuing Annual General Meeting, Mr. Dinesh Biyanee has been appointed as an Executive Director (Works) of the Company for a period of 1 year w.e.f. 1st April, 2013. 1. None of the Non-Executive Directors have any pecuniary relationship or transactions with the Company except for holding Directorship & receiving sitting fee, save and except Mr. Suresh Kumar Patni who is also the promoter of the Companies, which has a business relation with this Company. 2. Mr. Rohit Patni, Managing Director is son of Mr. Suresh Kumar Patni. No other Directors in the Board are related to each other. Meeting Thirteen (13) Board Meetings were held during the year 2012-13 and the gap between two meetings did not exceed four months. The dates on which the Board Meetings were held are as follows: 16th April, 2012; 8th May, 2012; 30th May, 2012; 14th August, 2012; 24th August, 2012; 28th August, 2012; 9th October, 2012; 14th November, 2012; 29th November, 2012; 5th February, 2013; 13th February, 2013; 15th March, 2013 and 28th March, 2013. Notes 1. Board meeting are held at the Corporate Office of the Company. The Agenda along with explanatory notes are sent in advance to the Directors to get their input in the discussion. The information as specified in Annexure-IA to Clause 49 of the Listing Agreement entered into with the Stock Exchange is regularly made available to the Board whenever applicable. 2. The Board periodically reviews compliance reports of all laws applicable to the Company. Steps are taken by the Company to rectify instances of non-compliance, if any. Code of Conduct The Code of Conduct for the Board of Directors and Senior Management Personnel as adopted is available on the Company's website www.rohitferrotech.com. All the Members of the Board and Senior Management Personnel have affirmed the compliances of the Code of Conduct. Declaration In accordance with Clause 49 of the Listing Agreement with the Stock Exchanges, the Board Members and Senior Management Personnel of the Company have affirmed compliances with the Code of Conduct of the Company for the year ended 31st March, 2013. For Rohit Ferro-Tech Limited Rohit Patni Managing Director Annual Report 2012-13 17

Committees of Directors 1. Audit Committee The Company has an Audit Committee within the scope as set out in Clause 49 of the Listing Agreement read with Section 292A of the Companies Act, 1956. The terms of reference of the Audit Committee includes the powers as laid down in Clause 49(II)(C) and the role as stipulated in Clause 49(II)(D) of the Listing Agreement and review of information as laid down in Clause 49(II)(E). The composition of the Audit Committee and the details of meetings attended by the Committee members are given below : Name of the Member Mr. Kailash Chand Jain# Mr. Jay Shanker Shukla# Mr. Jatindra Nath Rudra Mr. Jayanta Kumar Chatterjee Designation Chairman Chairman Member Member Category Independent/Non-Executive Independent/Non-Executive Independent/Non-Executive Independent/Non-Executive No. of Meetings Attended 2 2 4 3
# w.e.f. 9th October, 2012, Mr. Jay Shanker Shukla has been appointed as a member and Mr. Kailash Chand Jain ceases to be member of the Committee. Mr. Jay Shanker Shukla has been appointed as Chairman of the Committee in place of Mr. Kailash Chand Jain. The Managing Director and Chief Financial Officer are permanent invitees to the Committee. The Company Secretary acts as Secretary of the Audit Committee. The representative of internal auditors also attends the meeting. The Audit Committee invites, as and when consider appropriate, the representatives from the Statutory Auditors and Cost Auditors to be present at the meeting of the Committee. The Audit Committee comprises of 3 (three) Directors all of whom are financially literate. All the members of the Committee are Independent/Non-Executive. Mr. Kailash Chand Jain, Independent Director having expertise in finance, chaired the meeting of the Audit Committee till 9th October, 2012 as the Chairman of the Audit Committee and after that Mr. Jay Shanker Shukla, Independent Director having expertise in finance appointed as Chairman of the Audit Committee. The Chairman of the Audit Committee was present at the last Annual General Meeting of the Company held on 25th September, 2012. During the financial year ended 31st March, 2013 four Audit Committee Meetings were held on 30th May, 2012; 14th August, 2012; 14th November, 2012 and 13th February, 2013 . The Annual Accounts (Standalone) for the year ended 31st March, 2013 were duly reviewed by the Audit Committee at its meeting held on 30th May, 2013 prior to adoption by the Board. The financial statement of the Company's wholly owned Subsidiary M/s. SKP Overseas Pte. Ltd. and PT Bara Prima Mandiri, Subsidiary of M/s. SKP Overseas Pte. Ltd. together with consolidated Annual Accounts of the Company for the year ended 31st March, 2013 has been placed before the Audit Committee Meeting dated 7th August, 2013 for review. 2. Remuneration Committee The Company has a Remuneration Committee consisting of 3 (three) Non-Executive/Independent Directors. The Committee met once during the year i.e, on 24th August, 2012. The present composition of the Remuneration Committee and details of the meeting attended by the member are given below : Name of the Member Mr. Jatindra Nath Rudra Mr. Jayanta Kumar Chatterjee Mr. Kailash Chand Jain # Mr. Jay Shanker Shukla # 18 Rohit Ferro-Tech Limited Designation Chairman Member Member Member Category Independent/Non-Executive Independent/Non-Executive Independent/Non-Executive Independent/Non-Executive No. of Meeting Attended 1 1 1

# w.e.f. 9th October, 2012, Mr. Jay Shanker Shukla has been appointed as a member and Mr. Kailash Chand Jain ceases to be member of the committee. The terms of reference of the Remuneration Committee are as follows: a) To determine on behalf of the Board and Shareholders, the Company's policy on specific remuneration packages for Executive Directors. b) Such other matters as may from time to time be required by any statutory, contractual or other regulatory requirements to be attended by the committee. The Chairman of the Committee has attended the last Annual General Meeting for giving replies to shareholder's queries; if any. Remuneration Policy A. For Executive Directors : The Board of Directors on the recommendation made by the Remuneration Committee decides the remuneration of the Executive Directors subject to the approval of members. The remuneration structure comprises only of the salary. No severance fees is payable to the Directors on termination of the employment. The Company does not have any scheme for stock-option either for the Directors or for the employees. B. For Non-Executive Directors : The Non-Executive Directors are paid sitting fees for attending each meeting of the Board and/or Committee thereof and the same is within the limits prescribed by the Companies Act, 1956. Remuneration of Executive Directors The Company has paid remuneration only by way of salary to its Executive Directors and the same is within the limits specified under Schedule XIII of the Companies Act, 1956 and duly approved by the Board as well as by the shareholders of the Company. Details of remuneration paid during 2012-13 are as follows : Name of the Director and Designation Mr. Rohit Patni (Managing Director)* Mr. Ankit Patni (Jt. Managing Director)** Mr. Binit Jain (Executive Director)% * Salary paid (`) 50,00,000/10,00,000/9,50,000/Period of Contract From To 27.08.2012 27.08.2007 01.09.2012 26.08.2017 26.08.2012 31.08.2013 Notice Period 2 months 2 months 2 months
Mr. Rohit Patni has been re-appointed as Managing Director w.e.f. 27th August, 2012 for a period of 5 years.
** resigned from the position of Joint Managing Director as well as from the Directorship of the Company w.e.f. 24th August, 2012. % resigned from the position of Executive Director as well as from the Directorship of the Company w.e.f. 1st April, 2013.
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Remuneration of Non-Executive Directors The remuneration of Non-Executive Directors consists of only sitting fees @ ` 2,500/- for attending each meeting of the Board of Directors or a Committee thereof. The details of fees paid during the year and the equity shares held by them as on 31st March, 2013 are as follows : Name of the Director Mr. Asoke Kumar Basu Mr. Jatindra Nath Rudra Mr. Jayanta Kumar Chatterjee Mr. Kailash Chand Jain* Mr. Suresh Kumar Patni Mr. Jay Shanker Shukla# Sitting Fee paid (`) 25,000 45,000 40,000 17,500 32,500 15,000 No. of Shares held as on 31st March, 2013 Nil Nil Nil Nil 21,86,403 Nil
* resigned from the Directorship w.e.f. 9th October, 2012. # appointed as an Additional Director w.e.f. 9th October, 2012. 3. Investor Grievance cum Share Transfer Committee The Investor Grievance cum Share Transfer Committee was constituted to specifically look into the redressal of investors' complaints like transfer of shares, non-receipt of balance sheet and non-receipt of declared dividends, etc. The Investor Grievance cum Share Transfer Committee consist of three Non-Executive Directors, out of which two are Independent Directors. The Chairman of the Committee is an Independent Director. The broad terms of reference includes the following : a. Redressal of shareholder and investors' complaints including but not limited to transfer of shares and issue of duplicate share certificates, non-receipt of balance sheet and non-receipt of declared dividends, etc. b. Monitoring transfers, transmissions, dematerialisation, rematerialisation, splitting and consolidation of shares issued by the Company. During the year under review, the Committee has met once on 30th March, 2013. The composition of the committee and the attendance of the members in the meeting are given hereunder : Name of the Member Mr. Jayanta Kumar Chatterjee Mr. Jatindra Nath Rudra Mr. Suresh Kumar Patni Designation Chairman Member Member Category Independent/Non-Executive Independent/Non-Executive Promoter/Non-Executive No. of Meeting Attended 1 1 1
Mr. Pradip Kumar Agarwal, Company Secretary has been designated as Secretary to the Committee and as Compliance Officer of the Company. The Committee has delegated the authority to approve the requests for transfers/transmission, split and remat/demat of shares to the Company Secretary. The Committee reviews the transfer/demat/remat approved by the Company Secretary and take note thereof in their subsequent meeting. The Company has received 1 (one) Investor's grievances/complaint during the year ended 31st March, 2013 which was replied/resolved to the satisfaction of the shareholder. No complaints were pending at the end of the year. Subsidiary Companies The Company does not have any material non-listed Indian Subsidiary Company and hence, it is not required to have an Independent Director of the Company on the Board of such Subsidiary Company. Significant issues pertaining to Subsidiary Companies are discussed at Audit Committee meetings of the Company. 20 Rohit Ferro-Tech Limited

The minutes of the Subsidiary Companies are placed before the Board of Directors of the Company and the attention of the Directors is drawn to significant transactions and arrangements entered into by the Subsidiary Companies. General Body Meetings The last three Annual General Meetings were held as under : Financial Year 2011-2012 Date 25th September, 2012 Place 'ROTARY SADAN' 94/2, Chowringhee Road, Kolkata- 700 020 'ROTARY SADAN' 94/2, Chowringhee Road, Kolkata- 700 020 'ROTARY SADAN' 94/2, Chowringhee Road, Kolkata- 700 020 Items Issue of Equity Shares to the Promoter and Non-Promoter Group on Preferential Basis. None Re-appointment of Executive Director (Mr. Binit Jain) Time 10.00 AM
2010-2011
15th September, 2011
10.30 AM
2009-2010
27th September, 2010
3:00 PM
Special Resolutions Passed at the last three AGMs : Financial Year 2011-2012 2010-2011 2009-2010
No special resolution was passed through postal ballot in the last year. No special resolution requiring postal ballot is being proposed at the ensuing AGM. Disclosures
l
There are no materially significant related party transactions, i.e. transactions of the Company of material nature with its promoters, Directors or the management or relatives etc. that may have potential conflict with the interests of the Company at large. A statement in summary form of transactions with related parties in the ordinary course of business is placed periodically before the Audit Committee. The pricing of all the transactions with the related parties were on an arms length basis. A disclosure of related party relationship and transactions as per AS-18 is given in the Note No : 36 to the Annual Accounts (Standalone) of the Company. The Company follows Accounting Standards issued by the Institute of Chartered Accountants of India and in the preparation of financial statements, the Company has not adopted a treatment different from that prescribed in an Accounting Standard. The Company has complied with all the requirements of the Listing Agreement with the Stock Exchanges as well as regulations and guidelines of SEBI. No strictures or penalty were imposed on the Company by Stock Exchanges or SEBI or any statutory authority, on any matter related to capital markets during the last three years. The risk assessment and minimisation procedures are in place and the Board is regularly informed by the Senior Executives about the business risks, if any occurs, and the steps taken to mitigate the same. Though the Company does not have a whistle blower policy, the Company promotes ethical behavior in its all business activities. All employees are free to approach the Audit Committee to raise their concerns relating to fraud, malpractice or any other activity or event which is against the Company's interest. In terms of clause 49(IV)(F)(ii) of the Listing Agreement, the senior management has disclosed to the Board that they have no personal interest in the material, financial and commercial transactions of the Company that may have potential conflict with the interest of the Company at large. Annual Report 2012-13 21

l
Proceeds from the Preferential Issue : During the year under review, the Company has raised ` 201 Crores by issuing 3,35,00,000 equity shares of ` 10 each at a premium of ` 50 on preferential basis to the entities belonging to Promoter and Strategic Investors belonging to Non-promoter group. The entire proceeds received from the preferential issue were fully utilised towards the object of the issue. Besides this, the Company did not raise any amount through public or right or preferential issues.
All mandatory requirements have been appropriately complied with and the non-mandatory requirements are dealt with at the end of the report.
CEO/CFO Certification The requisite certificate from the Managing Director and the Chief Financial Officer of the Company for the financial year ended 31st March, 2013 required to be given under Clause 49 (V) of the Listing Agreement has been placed before the Board meeting held on 30th May, 2013. Means of Communication 1. Financial Results In compliance with the requirements of the Listing Agreements, the Company has intimated Audited Financial Results as well as the Unaudited Quarterly Results to the Stock Exchanges immediately after they are taken on record by the Board. Further coverage has been given for the information of the shareholders and investors by publication of the financial results in English National daily-"Financial Express" and in a local vernacular newspaper-"Dainik Statesman" widely circulated in the state of West Bengal. The results were also placed on the Company's website at www.rohitferrotech.com. 2. Other Information The Company has its own website www.rohitferrotech.com wherein other related information is available. The Company has a dedicated help desk e-mail id: grievance@rohitferrotech.com in the secretarial department for providing necessary information to the investors as well as for registering any complaints/grievances. The Company posts on its website all its official news releases, important announcements and presentations made before the press meets, analysts and institutional investors from time to time for the benefit of its investors and public at large. Profile of Directors Seeking Appointment/Re-appointment Resume and other information of the Directors seeking appointment/re-appointment at the ensuing Annual General Meeting as required under Clause 49 of the Listing Agreement are given in the notice of ensuing Annual General Meeting as an Additional Information. Management Discussion & Analysis Report A Management Discussion and Analysis Report is given separately, and forms part of Annual report. General Shareholder Information 1. Annual General Meeting (AGM) Day, Date & Time Venue 2. Date of Book Closure : : : Saturday, 28th September, 2013 at 10.00 A.M. Rotary Sadan, 94/2, Chowringhee Road, Kolkata - 700 020 23rd September, 2013 to 28th September, 2013 (both days inclusive) N.A.
3. Dividend payment date : 4. Financial Calendar
Indicative calendar of events for the financial year 2013-2014 is as under : Financial Year 22 Rohit Ferro-Tech Limited 1st April to 31st March

Financial Reporting for the quarters : First Quarter Second Quarter and Half Yearly Third Quarter and Nine Months Fourth Quarter and Annual (Audited) Annual General Meeting Disclosed on 13th August, 2013 Within 45 days from the end of the quarter Within 45 days from the end of the quarter Within 60 days from the end of the quarter/financial year On or before 30th September, 2014
5. Listing of the Equity Shares on Stock Exchange Name of the Stock Exchange BSE Ltd. (BSE) Address "Phiroze Jeejeebhoy Tower" Dalal Street, Mumbai-400 001 "Exchange Plaza" Bandra-Kurla Complex Bandra (E), Mumbai-400 051 Stock Code 532731
The National Stock Exchange of India Ltd. (NSE)
ROHITFERRO
The Company has paid the listing fee for the year 2013-14 to both the Stock Exchanges where the shares of the Company are listed as well as custodial fees to the depository. 6. The International Security Identification Number (ISIN) for NSDL & CDSL : INE248H01012. 7. Market Price Data The Stock Market data on BSE & NSE for the last twelve months are provided herein: Month National Stock Exchange of India Limited High 34.40 31.50 31.50 31.90 33.40 34.80 30.80 35.00 32.70 32.40 27.90 22.95 Low 30.05 25.25 25.55 26.50 25.35 27.05 24.30 25.55 28.20 27.00 21.90 17.30 High 34.35 31.75 30.95 31.80 33.80 33.00 30.95 35.00 32.80 32.30 28.00 22.95 BSE Limited Low 30.30 25.35 25.60 26.50 26.10 27.10 26.60 25.70 28.00 27.05 21.90 17.40
April, 2012 May, 2012 June, 2012 July, 2012 August, 2012 September, 2012 October, 2012 November, 2012 December, 2012 January, 2013 February, 2013 March, 2013
23

8. Performance of the Company in comparison with BSE Sensex
21000 20500 20000 40.00 35.00
BSE Sensex
19000 18500 18000 17500 17000
25.00 20.00 15.00 10.00
May-12
Nov-12
Aug-12
BSE Sensex
RFTL Price
9. Shareholding Pattern as on 31st March, 2013 Category Promoter & Promoter Group Bodies Corporate Individuals Non-Resident Individuals Clearing Member Total Range Upto 500 501 to 1000 1001 to 2000 2001 to 3000 3001 to 4000 4001 to 5000 5001 to 10000 10001 and above Total No. of Shareholders 14,422 1,969 992 370 174 169 260 252 18,608 No. of Shares 8,19,17,842 1,36,99,365 1,76,15,282 5,13,569 30,065 11,37,76,123 % of Total Shareholders 77.50 10.58 5.33 1.99 0.94 0.91 1.40 1.35 100.00 No. of Shares 24,21,389 16,70,195 15,38,189 9,62,072 6,26,425 8,02,241 19,85,905 10,37,69,707 11,37,76,123 % of holding 72.00 12.04 15.48 0.45 0.03 100.00 % of Total 2.13 1.47 1.35 0.85 0.55 0.70 1.75 91.20 100.00
10. Distribution of Shareholding as on 31st March, 2013
11. Dematerialisation of Shares and Liquidity The Company's shares are compulsorily traded in dematerialised form which is available for trading on both NSDL and CDSL. As on 31st March, 2013; 11,37,61,481 equity shares representing 99.99 % of the share capital are held in dematerialised form viz., CDSL- 2,77,45,113 equity shares and NSDL - 8,60,16,368 equity shares. 12. Registrar and Share Transfer Agent M/s. Maheshwari Datamatics Pvt. Ltd. of 6, Mangoe Lane (Surendra Mohan Ghosh Sarani), 2nd Floor, Kolkata - 700 001 are the Registrar and Share Transfer Agent of the Company, both for Physical and Demat Segments. Accordingly, all communications on matters relating to Share Transfers, Dividend etc. may be sent directly to them. Complaints, if any, on these matters may also be sent to the Compliance Officer of the Company.
24
Mar-13
Sep-12
Jun-12
Dec-12
Feb-13
Jan-13
Oct-12
Apr-12
Jul-12
RFTL Price
19500
30.00

13. Share Transfer System The share transfer requests are processed on behalf of the Company by Registrar & Transfer Agent, M/s. Maheshwari Datamatics Pvt. Ltd. and are placed before the Company Secretary who has been delegated the authority by Investor Grievance cum Share Transfer Committee to approve transfers. The Company Secretary addresses all the requests fortnightly. 14. Outstanding ADR's & GDR's, Warrants or any other convertible instruments, conversion date and likely impact on equity shares During the year under review, the Company has not issued any ADR's & GDR's, Warrants or any other convertible instruments. The Company has at present no outstanding ADR's/GDR's/Warrants to be converted that has an impact on the equity shares of the Company. 15. Name, Designation & Address of Compliance Officer for Complaints & Correspondence Mr. Pradip Kumar Agarwal Company Secretary & Compliance Officer Rohit Ferro-Tech Limited SKP House, 132A, S.P. Mukherjee Road, Kolkata - 700 026 Ph : +91 33 4016 8000/8100 Fax : +91 33 4016 8189/8107 Email Id: cs@rohitferrotech.com Address for Correspondence Registered Office : Rohit Ferro-Tech Limited 35, C. R. Avenue, Kolkata - 700 012 Phone : +91 33 2211 0225/0226, 4064 0021/0022 Email Id : grievance@rohitferrotech.com Corporate Office : Rohit Ferro-Tech Limited SKP House, 132A, S. P. Mukherjee Road, Kolkata - 700 026 Phone : +91 33 4016 8000/8100 Fax : +91 33 4016 8189/8107 16. Plant Locations Bishnupur Jajpur Haldia WBIIDC Road, P.O. Dwarika Bishnupur - 722 122, Dist: Bankura (West Bengal) Kalinganagar Industrial Complex Duburi - 755 026, Dist: Jajpur (Odisha) Jaynagar, P.O.: Buniaraichak, PS: Durgachak Dist : Purba Medinipur (West Bengal)
25

Non-Mandatory Requirements 1. The Board : The Non-Executive Chairman has an office at the Company's premises. None of the Independent Directors of the Company has tenures exceeding a period of 9 (nine) years on the Board. 2. Remuneration Committee : The Company has a Remuneration Committee comprising of 3(Three) Independent Non-Executive Directors as stated under 'Committees of Directors' in this report. 3. Audit Qualifications : The Auditors' Report on Annual Accounts (consolidated) of the Company includes certain observations which are based on the Auditors' observations on the financial statement of the Company's Subsidiary in Singapore. The necessary explanations by the Board of Directors on the said observation is given in their report attached with the Annual Report. 4. Other Items : The rest of the non-mandatory requirements such as Shareholder's Rights, training of Board members and Mechanism for evaluation of Non-Executive Board members will be implemented by the Company as and when required. For Rohit Ferro-Tech Limited Suresh Kumar Patni Chairman
Certificate of Compliance with the Corporate Governance requirements under Clause 49 of the Listing Agreement
To The members of Rohit Ferro-Tech Limited We have examined the compliance of conditions of Corporate Governance by Rohit Ferro-Tech Limited, for the year ended 31st March, 2013 as stipulated in Clause 49 of the Listing Agreement(s) of the said Company with the Stock Exchange(s). The compliance of conditions of Corporate Governance is the responsibility of the Company's management. Our examination has been limited to a review of the procedures and implementations thereof adopted by the Company for ensuring compliance of conditions of Corporate Governance as stipulated in the said clause. It is neither an audit nor an expression of opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, and the representations made by the management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in Clause 49 of the above-mentioned Listing Agreement. We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness with which the management has conducted the affairs of the Company. For A J & Associates Company Secretaries Abhijeet Jain Proprietor C.P. No. 3426
Kolkata, 29th August, 2013 26 Rohit Ferro-Tech Limited
Independent Auditors Report

To The Members of Rohit Ferro-Tech Limited Report on the Financial Statements We have audited the accompanying financial statements of Rohit Ferro-Tech Limited ('the Company') which comprise the Balance Sheet as at 31st March, 2013, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion and to the best of our information and according to the explanations given to us, the financial statements, read together with the Notes thereon and attached thereto, give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India : i. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2013;
ii. in the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and iii. in the case of the Cash Flow Statement, of the cash flows for the year ended on that date. Emphasis of Matter Without qualifying our opinion, attention is invited to Note 39 to the financial statements whereby the Company has presented profits after tax before the Exceptional item instead of making disclosure as per the current format in Part-II of Schedule VI (Revised) of the Companies Act, 1956 and the Current tax figure is net of ` 863.33 Lacs, being the tax effect on the Exceptional Item.
27

Report on Other Legal & Other Regulatory Requirements 1. As required by the Companies (Auditor's Report) Order, 2003 ("the Order"), as amended, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Act, and on the basis of such checks as we considered appropriate, and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order to the extent applicable to the Company. 2. As required by Section 227(3) of the Act, we report that: a. we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purpose of our audit; b. in our opinion, proper books of account, as required by law have been kept by the Company so far as appears from our examination of those books; c. the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account; d. in our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956; and e. on the basis of written representations received from the Directors and taken on record by the Board of Directors, none of the Directors is disqualified as on 31st March, 2013, from being appointed as a Director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956. For S. Jaykishan Chartered Accountants FRN : 309005E
Kolkata, 30th May, 2013
CA B. K. Newatia Partner Membership No : 050251
28
Annexure to the Independent Auditors Report

(Annexure referred to in our report of even date to the shareholders of Rohit Ferro -Tech Limited on the financial statements for the year ended 31st March, 2013) (i) (a) The Company has maintained proper records to show full particulars, including quantitative details and situation of its fixed assets. (b) We are informed that fixed assets of significant value have been physically verified by the management at reasonable intervals, in a phased programme and no material discrepancies were noticed in respect of the assets verified. (c) The Company has not disposed off any substantial/major part of Fixed Assets during the year. (ii) (a) As explained to us, inventories have been physically verified by the management during the year at reasonable intervals. (b) In our opinion, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. (c) In our opinion, the Company has maintained proper records of inventories and the discrepancies noticed on physical verification as compared to book records were not material. (iii) (a) Except loan to subsidiary, the Company has not granted any loans, secured or unsecured, to companies, firms or parties covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount outstanding during the year and the year-end balance of the loan to the subsidiary amounted to ` 9.82 Crores. (b) In our opinion and according to the information and explanations given to us, the rate of interest and other terms and conditions on which the loan has been granted as aforesaid are prima facie not prejudicial to the interest of the Company. (c) In case of loan granted, the terms do not stipulate repayment schedule. Accordingly, paragraph 4(iii)(c) of the Order is not applicable to the Company. (d) There is no overdue amount of more than ` 1 Lac in respect of the above loan. (e) The Company has taken interest free Unsecured Loans from six companies covered in the register maintained under Section 301 of the Companies Act, 1956. The maximum amount involved during the year and the year-end balance of the said loans were ` 60.18 Crores and NIL respectively. (f) In our opinion and according to the information and explanations given to us, the terms and conditions of loans taken as aforesaid are prima facie not prejudicial to the interest of the Company. (g) In respect of the above loans, there are no stipulations as to repayment thereof. (iv) In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and nature of its business, for the purchase of inventory and fixed assets and for the sale of goods. Further, on the basis of our examination of the books and records of the Company, we have neither come across nor have we been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system. (v) (a) To the best of our knowledge and belief and according to the information and explanations given to us, we are of the opinion that the particulars of the contracts or arrangements that need to be entered in the register maintained under Section 301 of the Companies Act, 1956, have been so entered. (b) In our opinion, the transactions made in pursuance of such contracts or arrangements and exceeding the value of five lakh rupees in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time. Annual Report 2012-13 29

(vi) (vii) (viii) The Company has not accepted any deposit during the year from the public within the meaning of the provisions of Sections 58A and 58AA of the Companies Act, 1956, and the rules framed there under. In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. We have broadly reviewed the books of account and records maintained by the Company pursuant to the Order made by the Central Government for maintenance of cost records u/s 209(1)(d) of Companies Act, 1956 and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. The contents of these accounts and records have not been examined by us.
(ix) (a) According to the records of the Company examined by us, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Income Tax, Sales Tax, VAT, Service Tax, Custom Duty, Excise Duty, Cess and any other statutory dues. According to the information and explanations given to us, there are no undisputed outstanding statutory dues as at 31st March, 2013 for a period exceeding six months from the date they became payable except for Welfare Cess - ` 49,907 and VAT - ` 53,544. (b) On the basis of our examination of records and according to explanations given to us, there are no dues as on 31st March, 2013, of Sales Tax, VAT, Income tax, Custom Duty, Service Tax, Excise Duty and Cess which have not been deposited on account of any dispute except for the following : Name of Statute Odisha VAT Act, 2004 Odisha VAT Act, 2004 Odisha VAT Act, 2004 Odisha VAT Act, 2004 Odisha Entry Tax Act,1999 Odisha Entry Tax Act,1999 The West Bengal Tax on Entry of Goods into Local Areas Act, 2012 The Central Sales Tax Act, 1956 and West Bengal VAT Act, 2005 Central Excise Act, 1944 Central Excise Act, 1944 Central Excise Act, 1944 Central Excise Act, 1944 Service Tax Act, 1994 Nature of Dues Odisha VAT Odisha VAT Odisha CST Odisha VAT Entry Tax Entry Tax Entry Tax Amount in ` 5,27,442 3,23,48,781 7,10,121 11,95,403 70,357 12,32,156 1,77,97,564 Forum where dispute is pending Division Bench, Appellate Tribunal Additional Commissioner (Revision) Commissioner (Appeal) Commissioner (Appeal) Joint Commissioner of Commercial Taxes (Jajpur, Odisha) Additional Commissioner (Revision) Honble High Court of Calcutta
CST and VAT
4,48,94,908
Member of West Bengal Taxes Appellate Board, Kolkata CESTAT, Kolkata Commissioner of Central Excise (Appeals)- IV Sr. Commissioner of Central Excise Appellate Tribunal, Bhubaneshwar Commissioner of Central Excise (Appeals)- IV
Excise Duty Excise Duty Excise Duty Excise Duty CENVAT
84,85,850 48,11,809 10,000 4,09,58,756 3,40,996
(x)
The Company has neither accumulated losses at the end of the financial year nor has it incurred cash losses in the financial year under report or in the immediately preceding financial year.
30

(xi) According to information and explanation given to us, the Company has not defaulted in repayment of dues to any bank or financial institution. (xii) As explained to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) Clause (xiii) of the Order is not applicable, as the Company is not a chit fund Company or Nidhi/Mutual Benefit Fund/Society. (xiv) In respect of shares, securities, debentures and mutual fund units dealt or traded by the Company and held as investments, proper records have been maintained of the transactions and contracts and timely entries have been made therein. All the investments have been held by the Company in its own name. (xv) According to the information and explanations given to us, the Company has given Corporate Guarantee to secure financial assistance to SKP Overseas Pte. Ltd, a wholly owned subsidiary, which is not prima facie considered prejudicial to the interest of the Company. (xvi) On the basis of review of utilisation of funds pertaining to term loans on an overall basis and related information as made available to us, we are of the opinion that the Company has applied the term loans for the purpose for which they were obtained during the year. (xvii) In our opinion, and according to the information and explanations given to us, the funds raised on short-term basis have not been used for long-term investment. (xviii)The Company has made fresh Preferential Allotment of shares during the year to Companies covered in the register maintained u/s 301 of the Companies Act, 1956 and such allotment is not prima facie prejudicial to the interest of the Company. (xix) No debentures have been issued by the Company and hence the question of creating security or charge in respect thereof does not arise. (xx) The Company has raised funds by way of Preferential Allotment and according to the information and explanations given to us, the proceeds of the same have been utilised for the objects of the issue. (xxi) According to the information and explanations given to us, no fraud on or by the Company has been noticed or reported during the year For S. Jaykishan Chartered Accountants FRN : 309005E
Kolkata, 30th May, 2013
CA B. K. Newatia Partner Membership No : 050251
31
Balance Sheet as at 31st March, 2013

Particulars I EQUITY AND LIABILITIES (1) Shareholders' Funds (a) Share Capital (b) Reserves & Surplus (2) Non-Current Liabilities (a) Long Term Borrowings (b) Other Non-current Liabilities (c) Deferred Tax Liabilities (Net) (3) Current Liabilities (a) Short Term Borrowings (b) Trade Payables (c) Other Current Liabilities (d) Short Term Provisions Total ASSETS (1) Non-Current Assets (a) Fixed Assets (i) Tangible Assets (ii) Capital Work-in-Progress (b) Non-Current Investments (c) Long-Term Loans and Advances (2) Current Assets (a) Current Investments (b) Inventories (c) Trade Receivables (d) Cash and Bank Balances (e) Short-Term Loans and Advances (f) Other Current Assets Total Significant Accounting Policies As per our report of even date attached For S. Jaykishan Chartered Accountants FRN : 309005E CA B. K. Newatia Partner Membership No : 050251 Kolkata, 30th May, 2013 32 Rohit Ferro-Tech Limited S. K. Patni Chairman Note No. 31-03-2013
(` in Lacs) 31-03-2012
2 3
11,377.61 69,365.71 80,743.32 60,685.38 3,921.41 5,541.14 70,147.93 67,398.92 38,986.06 20,924.12 857.00 1,28,166.10 2,79,057.35
8,027.61 49,834.08 57,861.69 43,407.66 226.04 4,619.40 48,253.10 59,732.40 23,063.35 15,070.63 1,727.82 99,594.21 2,05,709.00
4 5 6
7 8 9 10
II
11 12 13 14
55,995.00 38,883.27 94,878.27 7,063.40 14,194.37 1,16,136.04 89,290.70 38,729.02 5,196.23 20,910.46 8,794.90 1,62,921.31 2,79,057.35
58,747.97 7,977.74 66,725.71 5,869.16 13,222.93 85,817.81 500.00 64,914.97 19,675.52 8,667.66 23,221.79 2,911.25 1,19,891.19 2,05,709.00
15 16 17 18 19 20
Accompanying Notes form integral part of the Financial Statements For and on behalf of the Board
Rohit Patni Managing Director
Statement of Profit and Loss for the year ended 31st March, 2013
Particulars I INCOME : Revenue From Operations (Gross) Less : Excise Duty Revenue From Operations (Net) Other Income Total Revenue (I + II) EXPENSES : Cost of Materials Consumed Purchase of Stock-in-Trade Changes in Inventories of Finished Goods & Work-in-Progress Employee Benefits Expense Finance Costs Depreciation and Amortisation Expense Other Expenses Total Expenses (IV) PROFIT BEFORE TAX (III-IV) Less : Tax Expense Current Tax MAT Credit Entitlement Earlier Years' Tax Deferred Tax PROFIT AFTER TAX Less : Exceptional Items (Refer Note No. 39) PROFIT FOR THE YEAR Earnings Per Equity Share [Nominal Value of Share - ` 10/-] Basic & Diluted Significant Accounting Policies Note No. 21 31-03-2013 2,36,326.30 10,471.84 2,25,854.46 1,168.20 2,27,022.66 1,08,446.62 21,388.28 (2,140.54) 2,311.35 14,384.47 2,953.48 72,734.79 2,20,078.45 6,944.21 857.00 (389.00) 1.46 921.74 5,553.01 2,660.91 2,892.10
(` in Lacs) 31-03-2012 1,75,262.62 7,532.10 1,67,730.52 761.33 1,68,491.85 76,310.40 16,016.17 (234.25) 1,944.20 10,620.52 2,169.45 55,640.93 1,62,467.42 6,024.43 1,203.38 (1,203.38) 19.18 1,974.32 4,030.92 4,030.92
II III IV
22
23 24 25 26 27 28
29 1
3.16
6.94
Accompanying Notes form integral part of the Financial Statements As per our report of even date attached For S. Jaykishan Chartered Accountants FRN : 309005E CA B. K. Newatia Partner Membership No : 050251 Kolkata, 30th May, 2013 S. K. Patni Chairman
For and on behalf of the Board
33
Cash Flow Statement for the year ended 31st March, 2013
(` in Lacs) Year Ended 31st March, 2013 A. CASH FLOW FROM OPERATING ACTIVITIES Net Profit Before Tax & Extra-Ordinary Items Adjustments for : Depreciation Finance Costs Interest Received Loss/(Profit) on Redemption of Mutual Funds Loss on sale of Fixed Assets Investment & Advance written off Liabilities no longer required written back Sundry Balances written off / (back) Operating Profit before Working Capital Changes Adjustments for : (Increase)/Decrease in Inventories (Increase)/Decrease in Trade Receivables (Increase)/Decrease in Loans and Advances (Increase)/Decrease in Other Assets Increase/(Decrease) in Trade Payables Increase/(Decrease) in Other Liabilities Cash generated from operations Direct Tax Paid Net Cash from Operating Activities B. CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets (including Capital Work-in-Progress and Capital Advances) Sale of Fixed Assets Interest Income Purchase of Investment Redemption of Mutual Funds Loan to Subsidiary (Increase) / Decrease in Fixed Deposits with Banks Net Cash used in Investing Activities 4,283.30 2,953.48 14,384.47 (889.06) (51.81) 2.99 4.74 16,404.81 20,688.11 (24,375.72) (19,058.23) 4,086.49 (5,883.65) 15,922.71 8,186.03 (21,122.38) (434.27) (1,298.64) (1,732.91) (31,383.25) 3.50 640.95 (1,194.24) 551.81 (35.65) 1,617.95 (29,798.93) (20,003.95) 24.25 738.01 (1,891.05) 9.84 (946.40) (3,009.77) (25,079.07) (19,207.12) (13,698.40) (9,472.91) (312.39) 6,824.45 4,797.10 (31,069.26) (12,826.14) (1,143.72) (13,969.85) 2,169.45 10,620.52 (636.47) 0.16 15.95 66.91 (11.34) (6.47) 12,218.70 18,243.13 Year Ended 31st March, 2012 6,024.43
34
Cash Flow Statement for the year ended 31st March, 2013 (Contd.)
(` in Lacs) Year Ended 31st March, 2013 C. CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Issue of Shares Increase/ (Decrease) in Long Term Borrowings Increase/ (Decrease) in Short Term Borrowings Share Issue Expenses Finance Costs Dividend Paid Corporate Dividend Tax Net Cash from Financing Activities Net Increase/(Decrease) in Cash & Cash Equivalents Cash & Cash Equivalents at the beginning of the year (Refer Note No.18 to the Accounts) Cash & Cash Equivalents at the end of the year (Refer Note No.18 to the Accounts) Notes : 1. The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in the Accounting Standard - 3 on 'Cash Flow Statement' notified by the Companies (Accounting Standards) Rules, 2006. 2. Cash and Cash Equivalents include cash in hand and bank balances on current accounts [Refer Note No.18 to the Accounts]. 3. Figures in brackets indicate cash outflows. 4. Previous year's figures have been regrouped/rearranged, wherever considered necessary to conform to this year's classification. 20,100.00 16,908.87 7,666.52 (14,531.47) (401.38) (65.11) 29,677.43 (1,854.41) 2,215.58 361.17 Year Ended 31st March, 2012 15,000.00 13,690.68 22,597.94 (35.00) (10,505.71) (276.38) (44.84) 40,426.70 1,377.78 837.80 2,215.58
As per our report of even date attached For S. Jaykishan Chartered Accountants FRN : 309005E CA B. K. Newatia Partner Membership No : 050251 Kolkata, 30th May, 2013 S. K. Patni Chairman
35
Notes to and forming part of Financial Statements as at 31st March, 2013

NOTE 1 SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of preparation of financial statements (a) The financial statements are prepared in accordance with Generally Accepted Accounting Principles (Indian GAAP) under the historical cost convention on accrual basis and on principles of going concern. The accounting policies are consistently applied by the Company. The financial statements are prepared to comply in all material respects with the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule VI (Revised) to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current- non current classification of assets and liabilities. The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognised in the period in which the results are known / materialise. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Sales are recognised when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are inclusive of excise duty but net of trade discounts and VAT. However, excise duty relating to sales is reduced from gross turnover for disclosing net turnover. Domestic sales are recognised at the time of despatch of materials to the buyer. Export sales are recognised on the issue of bill of lading. Export Incentives arising out of Export Sales are accounted for on accrual basis. Purchases are inclusive of freight and net of CENVAT / VAT Credit, Trade Discount and Claims. Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Fixed Assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price (net of CENVAT / duty credits availed or available thereon) and any attributable cost of bringing the asset to its working condition for the intended use. Depreciation is provided using the Straight Line Method as per the useful lives of the assets estimated by the management, or at the rates prescribed under Schedule XIV of the Companies Act, 1956, whichever is higher. No write off is made in respect of leasehold land as these are long term leases. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the asset's net selling price and value in use, which is determined by the present value of the estimated future cash flows. Cost of the fixed assets not ready for their intended use at the Balance Sheet date together with all related expenses are shown as Capital Work-in-Progress.
(b) (c)
(d)
1.2 Revenue Recognition (a) (b)
(c) (d) (e)
1.3 Fixed Assets (a)
(b)
(c)
(d)
1.4 Investments Investments classified as long-term investments are stated at cost. Provision is made to recognise any diminution other than temporary in the value of such investments. Current investments are carried at lower of cost and fair value. 1.5 Inventories Inventories are valued at lower of cost and net realisable value. Cost of inventories comprises material cost on FIFO 36 Rohit Ferro-Tech Limited

NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (Contd.) basis, labour and manufacturing overheads incurred in bringing the inventories to their present location and condition. Cost of finished goods includes excise duty. 1.6 Foreign Currency Transactions (a) Initial Recognition : Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. (b) Conversion : Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of the transaction. (c) Exchange Differences : Exchange differences arising on the settlement of monetary items are recognised as income or as expense in the year in which they arise. (d) Forward Exchange Contracts : Forward Exchange Contracts (other than those entered into to hedge foreign currency risk of future transactions in respect of which firm commitments are made or are highly probable forecast transactions) are translated at period end exchange rates and the resultant gains and losses as well as the gains and losses on cancellation of such contracts are recognised in the Statement of Profit and Loss. 1.7 Derivative Instruments and Hedging The Company enters into derivative financial instruments to hedge foreign currency risk of firm commitments and highly probable forecast transactions. All derivative contracts outstanding at the period end are marked to market. The Company has applied the hedge accounting principles set out in AS-30 "Financial Instruments : Recognition and Measurement". The method of recognising the resultant gain or loss depends on whether the derivative is designated as hedging instrument. The gains or losses on designated hedging instruments that qualify as effective hedges are recorded in the Hedging Reserve Account and are recognised in the Statement of Profit and Loss in the period during which the underlying forecasted transactions occur. Gains or losses on the ineffective transactions are immediately recognised in the Statement of Profit and Loss. When a forecasted transaction is no longer expected to occur, the gains and losses that were previously recognised in the Hedging Reserve are transferred to the Statement of Profit and Loss immediately. 1.8 Government Grants Government grants are recognised when there is a reasonable assurance that the Company will comply with the conditions attached thereto and the grants will be received. Government grant in the form of promoters contribution is credited to capital reserve. Capital grant relating to specific assets is reduced from the gross value of the respective fixed assets. Government grants related to revenue are recognised by credit over the period to match them on a systematic basis to the costs, which it intended to compensate. 1.9 Employee Benefits (a) Defined Contribution Plan : Contributions as per the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 towards provident fund and family pension fund are charged to the Statement of Profit and Loss for the year when the contributions to the respective funds are due. There is no other obligation other than the contribution payable to the respective funds. (b) Defined Benefit Plan : Liability with regard to long-term employee benefits is provided for on the basis of an actuarial valuation at the Balance Sheet date. Actuarial gain / loss is recognised immediately in the Statement of Profit and Loss. The Company has an Employees Gratuity Fund managed by the Life Insurance Corporation of India. (c) Short-term Compensated Absences are provided for based on estimates. Annual Report 2012-13 37

NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (Contd.) 1.10 Research & Development Expenses Revenue expenditure on Research and Development is charged as an expense through the normal heads of account in the year in which the same is incurred. Capital expenditure incurred on equipment and facilities that are acquired for research and development activities is capitalised and is depreciated according to the policy followed by the Company. 1.11 Borrowing Costs (a) Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to interest costs and are shown as Applicable Net Gain/Loss in Foreign Currency Transactions and Translations (under Finance Costs). Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalised for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. Other Borrowing costs are recognised as expense in the period in which they are incurred.
(b)
(c)
1.12 Expenditure on new projects & substantial expansion Preliminary project expenditure, capital expenditure, indirect expenditure incidental and related to construction/ implementation, interest on term loans to finance fixed assets and expenditure on start-up of the project are capitalised upto the date of commissioning of project to the cost of the respective assets. 1.13 Taxes on Income Tax expense comprises of current tax and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities, computed in accordance with the applicable tax rates and tax laws. In case of tax payable as per provisions of MAT under Section 115JB of the Income Tax Act, 1961, MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Deferred Tax arising on account of "timing differences" and which are capable of reversal in one or more subsequent periods is recognised, using the tax rates and tax laws that are enacted or substantively enacted. Deferred Tax Asset is recognised only to the extent there is reasonable certainty with respect to reversal of the same in future years as a matter of prudence. 1.14 Earnings per Share (EPS) (a) (b) Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of Equity Shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential Equity Shares.
1.15 Prior Period Items Prior Period and Extraordinary items and Changes in Accounting Policies having material impact on the financial affairs of the Company are disclosed. 1.16 Provisions / Contingencies (a) (b) (c) Provision involving substantial degree of estimation in measurements is recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are shown by way of notes to the Accounts in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable. A Contingent Asset is not recognised in the Accounts.
1.17 Preliminary & Share Issue Expenses Share Issue expenses incurred during the year are adjusted with the balance available in Securities Premium in accordance with Section 78 of the Companies Act, 1956. 38 Rohit Ferro-Tech Limited

NOTE 2 SHARE CAPITAL 31-03-2013 Authorised 15,00,00,000 (P.Y. 15,00,00,000) Equity Shares of ` 10/- each Issued, Subscribed and Paid-up 11,37,76,123 (P.Y. 8,02,76,123) Equity Shares of ` 10/- each fully paid up 15,000.00 11,377.61 (` in Lacs) 31-03-2012 15,000.00 8,027.61
a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period Equity Shares At the Beginning of the Period Issued During the Period At the End of the Period b) Terms/Rights attached to Equity Shares The Company has only one class of Equity Shares having a par value of ` 10 per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount. The distribution will be in proportion to the number of Equity Shares held by the shareholders. c) Details of the shareholders holding more than 5% shares in the Company 31-03-2013 No. of % Shares holding Equity shares of ` 10 each fully paid Suanvi Trading and Investment Co. Pvt. Ltd. Vasupujya Enterprises Pvt. Ltd. Invesco Finance Pvt. Ltd. Poddar Mech Tech Services Pvt. Ltd. Shreyansh Leafin Pvt. Ltd. Whitestone Suppliers Pvt. Ltd. 1,12,37,501 1,13,59,538 1,10,39,317 1,29,79,933 1,09,93,150 1,09,07,765 9.88 9.98 9.70 11.41 9.66 9.59 31-03-2012 No. of % Shares holding 82,37,501 83,59,538 80,39,317 1,04,79,933 79,93,150 79,07,765 10.26 10.41 10.01 13.05 9.96 9.85 31-03-2013 Nos. ` in Lacs 8,02,76,123 3,35,00,000 11,37,76,123 8,027.61 3,350.00 11,377.61 31-03-2012 Nos. ` in Lacs 5,52,76,123 2,50,00,000 8,02,76,123 5,527.61 2,500.00 8,027.61
d) During the year, the Company has made preferential allotment of 3,35,00,000 Equity Shares of ` 10/- each at a premium of ` 50/- per share, aggregating to ` 20,100 Lacs to part finance the setting up of a 33MVA Sub-merged Arc Furnace at Jajpur, to meet long-term working capital requirement of the Company and to invest in the Company's Wholly Owned Subsidiary SKP Overseas Pte Ltd. The proceeds of the issue have been utilised towards the objects of the said issue.
39

NOTE 3 RESERVES AND SURPLUS 31-03-2013 Capital Reserve As per last account - Capital Investment Subsidy - Forfeiture of Deposit against Share Warrants Securities Premium Account At the beginning of the accounting period Additions during the year Share Issue Expenses written off At the end of the accounting period Hedge Reserve [Refer Note 40] At the beginning of the accounting period Additions during the year General Reserve As per last account Surplus (Balance in the Statement of Profit & Loss) Balance as per last Financial Statement Profit for the year Less : Appropriations - Proposed equity dividend (Amount per share Nil (P.Y. ` 0.50)) - Tax on proposed equity dividend Closing Balance NOTE 4 LONG-TERM BORROWINGS Non-current portion 31-03-2013 31-03-2012 Term Loans (Secured) Rupee Loans from Banks Loans from Related Party Loan from Body Corporates (Unsecured) Other Loans and Advances Loan from Body Corporates (Unsecured) Loans against Vehicles & Equipments (Secured) 51,056.87 51,056.87 9,534.50 94.01 9,628.51 60,685.38 33,365.93 33,365.93 2,309.00 2,309.00 7,509.50 223.23 7,732.73 43,407.66 Current Maturities 31-03-2013 31-03-2012 3,908.82 3,908.82 159.09 159.09 4,067.91 4,256.99 4,256.99 179.76 179.76 4,436.75 (` in Lacs) 31-03-2012
240.00 128.14 368.14 25,653.10 16,750.00 42,403.10 42,403.10 (110.48) (110.48) 450.00 23,362.85 2,892.10 26,254.95 69,365.71
240.00 128.14 368.14 13,188.10 12,500.00 25,688.10 (35.00) 25,653.10 450.00 19,798.42 4,030.92 401.38 65.11 23,362.85 49,834.08
40

NOTE 4 LONG-TERM BORROWINGS (Contd.) Non-current portion 31-03-2013 31-03-2012 The above amount includes Secured Borrowings Unsecured Borrowings Amount disclosed under the head "Other Current Liabilities" (Refer Note 9) (A) Details of security (i) Term Loans from banks are secured by way of : a) 1st charge on pari passu basis on the entire Fixed Assets of the Company, both present and future, including equitable mortgage of factory land & building at Bishnupur (West Bengal), Jajpur (Odisha) and Haldia (West Bengal) and second charge on pari passu basis on entire Current Assets of the Company, both present and future. b) Collateral security by equitable mortgage of Land & Building at 1/26, Vidyadhar Nagar, Jaipur, Rajasthan held in the name of Shubham Complex Pvt. Ltd. and Office space measuring 835 sq. ft. located at Flat no. 21B, 4th Floor, Bowbazar, 35, C. R. Avenue, Kolkata - 12, held in the name of Mr. S. K. Patni. c) d) Personal Guarantee of the Promoter/Directors - Mr. S. K. Patni, Mr. Rohit Patni and Mr. Ankit Patni. Corporate Guarantee of the Group Companies - Vasupujya Enterprises Pvt. Ltd., Shubham Complex Pvt. Ltd., Poddar Mech Tech Services Pvt. Ltd., Invesco Finance Pvt. Ltd. and Suanvi Trading and Investment Co. Pvt. Ltd. 51,150.88 9,534.50 60,685.38 33,589.16 9,818.50 43,407.66 (` in Lacs) Current Maturities 31-03-2013 31-03-2012 4,067.91 (4,067.91) 4,436.75 (4,436.75)
(ii) Loans against Vehicles & Equipment are secured by way of hypothecation of the underlying asset financed. (B) Terms of Repayment (i) Term Loans from Banks Bank's Name Amount outstanding (` in Lacs) 2,357.10 4,575.61 2,402.04 6,500.00 Period of Maturity with respect to Balance Sheet date 5 yrs 6 m 13 yrs 6 m 5 yrs 6 m 7 yrs 6 m Repayment Terms with reference to Balance Sheet date 22 Quarterly Installments of ` 107.15 Lacs each. 44 Quarterly Installments of ` 114 Lacs each from Dec, 2015. 22 Quarterly Installments of ` 109.19 Lacs each. 24 Quarterly Installments from Dec, 2014 - 20 of ` 329 Lacs each and 4 of ` 330 Lacs each. 44 Quarterly Installments of ` 227 Lacs each from June, 2014.
Allahabad Bank Allahabad Bank* Canara Bank Exim Bank*
State Bank of India*
9,204.69
12 yrs
41

NOTE 4 LONG-TERM BORROWINGS (Contd.) Bank's Name Amount outstanding (` in Lacs) 6,499.99 Period of Maturity with respect to Balance Sheet date 7 yrs 6 m Repayment Terms with reference to Balance Sheet date 24 Quarterly Installments from Dec, 2014 - 20 of ` 417 Lacs each and 4 of ` 416 Lacs each. 16 Quarterly Installments of ` 312.50 Lacs each. 44 Quarterly Installments of ` 114 Lacs each from June, 2014. 44 Quarterly Installments of ` 114 Lacs each from June, 2014. 22 Quarterly Installments of ` 25 Lacs each. 2 Monthly Installments of ` 14.13 Lacs each. 44 Quarterly Installments from Sept, 2015 - 43 of ` 47.88 Lacs each and 1 of ` 41.16 Lacs. 16 Quarterly Installments of ` 416.67 Lacs each.
State Bank of India*
State Bank of India State Bank of Hyderabad* State Bank of Travancore* United Bank of India United Bank of India United Bank of India*
5,000.00 4,644.18 4,639.64 549.00 26.82 1,900.00
4 yrs 12 yrs 12 yrs 5 yrs 6 m 2m 13 yrs 3 m
United Bank of India
6,666.61
4 yrs
* Part of the Term Loans are yet to be disbursed. Term Loans carry an average interest rate of 14.05% (Previous year - 13.71%) (ii) Unsecured Loan from Bodies Corporate aggregating to ` 9,184.50 Lacs (P.Y. ` 9,818.50 Lacs) are interest free. Other Loans carry interest @ 12% p.a. Such loans are repayable at the option of the Company and are stated by the management to be in the nature of Long Term Borrowings. (iii) Loans against Vehicles & Equipments are repayable by way of Equated Monthly Installments subsequent to taking of such loan. The original period of such loans is 3 years. NOTE 5 OTHER NON-CURRENT LIABILITIES 31-03-2013 Derivative Contracts Payable Other Payables - For Accrued Expenses 511.72 3,409.69 3,921.41 (` in Lacs) 31-03-2012 226.04 226.04
NOTE 6 DEFERRED TAX LIABILITY (NET) Deferred Tax Liability - Related to Fixed Assets Deferred Tax Asset - Unabsorbed Depreciation Net Deferred Tax Liability 42 Rohit Ferro-Tech Limited 5,541.14 5,541.14 4,755.27 135.87 4,619.40

NOTE 7 SHORT-TERM BORROWINGS 31-03-2013 Working Capital Loans from Banks (Secured) - Rupee Loans - Foreign Currency Loans - Buyer's Credit Other Loans and Advances (Unsecured) - Bridge Loan from WBIDC Ltd. (against interest subsidy receivable) (A) Details of Security (i) Working Capital Loans are secured by way of : a) 1st charge on pari passu basis on the entire Current Assets of the Company, both present and future and second charge on pari passu basis on entire fixed assets of the Company including equitable mortgage of factory land & building at Bishnupur (West Bengal), Jajpur (Odisha) and Haldia (West Bengal) both present and future. b) Collateral security and Guarantees as stated against Long Term Borrowings in Note No. 4 (A) (i) b), c) and d). NOTE 8 TRADE PAYABLES Due to Micro, Small & Medium Enterprises [Refer Note below] Due to others 38,986.06 38,986.06 23,063.35 23,063.35 65,446.96 1,930.59 21.37 67,398.92 (` in Lacs) 31-03-2012 49,859.27 9,766.28 106.85 59,732.40
There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. Trade Payables include ` 4,171.64 Lacs (P.Y. ` 5,102.55 Lacs) against pledge of stock of raw materials. NOTE 9 OTHER CURRENT LIABILITIES Current maturities of long-term debt (Refer Note 4) Interest Accrued and due on Borrowings Income Received in Advance Interest Accrued but not due on Borrowings Advance from Parties Unclaimed Dividend * Share Application Money Refundable* Derivative Contracts Payable Other Payables - For Statutory Dues - For Capital Goods - For Accrued Expenses 4,067.91 653.96 11.32 43.42 3,113.80 10.68 0.10 13.97 1,431.73 2,827.11 8,750.12 20,924.12 4,436.75 251.36 190.42 1,111.52 9.75 0.10 205.99 326.61 1,071.17 7,466.96 15,070.63
* Includes uncashed warrants/ECS rejected. There is no amount due and outstanding to be credited to Investor Education & Protection Fund. Annual Report 2012-13 43

NOTE 10 SHORT-TERM PROVISIONS 31-03-2013 For Taxation For Proposed Dividend For Corporate Tax on Dividend 857.00 857.00 (` in Lacs) 31-03-2012 1,261.33 401.38 65.11 1,727.82
NOTE 11 TANGIBLE ASSETS Land Freehold Leasehold Gross Block As at 31st March, 2011 Additions Disposals Other Adjustments - Borrowing Costs As at 31st March, 2012 Additions Disposals Other Adjustments - Borrowing Costs As at 31st March, 2013 Depreciation & Amortisation As at 31st March, 2011 For the year* Deductions As at 31st March, 2012 For the year* Deductions As at 31st March, 2013 Net Block As on 31st March, 2012 As on 31st March, 2013 404.56 676.17 1,080.73 0.77 1,081.50 1,080.73 1,081.50 Building Plant & Furniture Equipment & Fixtures 422.93 11.03 433.96 2.70 436.66 41.29 27.26 68.54 27.57 96.11 365.41 340.55 Vehicles Office Equipments 236.15 119.51 355.66 30.93 386.59 50.26 30.98 81.24 44.35 125.59 274.42 261.01 Others Total
4,059.42 7,484.97 24,029.60 5,495.97 18,909.62 347.74 2,916.17 4,059.42 13,328.68 45,855.39 67.63 47.89 4,059.42 13,396.31 45,903.28 774.10 413.36 1,187.45 439.52 1,626.97 3,702.06 1,666.57 5,368.63 2,405.17 7,773.80
324.33 166.23 73.66 416.90 62.06 13.19 465.77 75.51 35.03 33.46 77.08 41.86 6.70 112.24 339.82 353.53
0.30 0.30 0.30 0.11 0.01 0.12 0.01 0.13 0.18 0.17
36,962.27 25,378.52 73.66 3,263.92 65,531.05 211.98 13.19 65,729.84 4,643.32 2,173.22 33.46 6,783.07 2,958.48 6.70 9,734.85 58,747.97 55,995.00
4,059.42 12,141.23 40,486.76 4,059.42 11,769.35 38,129.49
Note : The original cost of vehicles & equipments includes ` 607.34 Lacs (P.Y. ` 587.38 Lacs) acquired from loans taken from banks & financial institutions, of which ` 253.09 Lacs (P.Y. ` 402.98 Lacs ) were outstanding as at 31st March, 2013. * Includes ` 4.99 Lacs (P.Y. ` 3.77 Lacs) debited to Capital Work-in-Progress.
44

NOTE 12 CAPITAL WORK-IN-PROGRESS 31-03-2013 At the beginning of the year Add : Incurred during the year Less : Capitalised during the year At the end of the year 7,977.74 30,905.53 38,883.27 (` in Lacs) 31-03-2012 24,742.80 9,619.57 26,384.63 7,977.74
Capital work-in-progress includes Pre Operative Expenses as below relating to project under implementation, pending allocation to Fixed Assets : Opening Balance Add : Expenditure incurred during the year Salaries Rent Rates & Taxes Insurance Electricity Charges Printing & Stationary Telephone Expenses Travelling & Conveyance Repairs & Maintainance Labour Charges Security Service Charges Hiring Charges - Equipment License and Application Fees Legal, Professional & Consultancy Charges General Expenses Bank Charges Interest on Term Loan from Banks Depreciation Total Amount allocated to Fixed Assets Closing Balance 1,889.38 118.76 10.38 0.31 25.90 0.89 0.07 0.70 15.19 2.35 46.12 38.21 30.01 147.48 2.30 135.75 3,781.54 4.99 6,250.33 6,250.33 2,865.85 82.36 2.16 28.39 2.08 0.30 5.65 7.46 11.53 0.50 189.32 6.78 2,458.55 3.77 5,664.69 (3,775.31) 1,889.38
45

NOTE 13 NON-CURRENT INVESTMENTS Number of Number of Shares/Units Shares/Units 31-03-2013 31-03-2012 Trade Investments (at cost) Equity Shares - Unquoted (Fully Paid Up) In Subsidiaries SKP Overseas Pte Ltd. (Shares of S$ 1 each fully paid up) Others SKP Power Ventures Ltd. ( F.V. ` 10 /- ) Total of Non-Current Investments NOTE 14 LONG-TERM LOANS & ADVANCES 31-03-2013 (Unsecured, Considered good) Capital Advances (Refer Note No. 30 (ii)) Security Deposits NOTE 15 CURRENT INVESTMENTS Number of Number of Shares/Units Shares/Units 31-03-2013 31-03-2012 Unquoted - Mutual Funds SBI Mutual Fund [NAV ` Nil (P.Y. ` 550.84 Lacs)] Total of Current Investments NOTE 16 INVENTORIES 31-03-2013 (As taken, valued and certified by the management) Raw Materials Intermediates Work-in-Process Finished Goods* Traded Goods Stores & Spares Packing Materials * Includes in transit ` 1,642.83 Lacs (P.Y. ` 1,061.18 Lacs) 66,917.52 4,869.75 10,153.94 5,135.00 104.67 1,982.46 127.36 89,290.70 50,00,000 (` in Lacs) 31-03-2013 (` in Lacs) 31-03-2012 500.00 500.00 (` in Lacs) 31-03-2012 48,938.77 951.74 8,329.99 4,923.09 1,644.20 127.18 64,914.97 12,323.46 1,870.91 14,194.37 (` in Lacs) 31-03-2013 (` in Lacs) 31-03-2012
1,97,00,000 10,000
1,69,50,000 10,000
7,062.40 1.00 7,063.40
5,868.16 1.00 5,869.16 (` in Lacs)
31-03-2012 10,296.79 2,926.14 13,222.93
46

NOTE 17 TRADE RECEIVABLES 31-03-2013 (Unsecured, Considered Good) Debts outstanding for a period exceeding six months from the date they are due for payment Other Debts (` in Lacs) 31-03-2012
824.73 37,904.29 38,729.02
810.03 18,865.49 19,675.52
Trade Receivables include ` 123.78 Lacs (P.Y. ` 258.24 Lacs) from Related Parties and ` 145.04 Lacs (P.Y. ` Nil) from the Subsidiary. NOTE 18 CASH AND BANK BALANCES i) Cash & Cash Equivalents (A) Cash in Hand (as certified) (B) Balances with Banks - In Current Accounts Cash & Cash Equivalents ii) Other Bank Balances (A) Term Deposits with Banks * (Includes ` 3,790.04 Lacs (P.Y. ` 3,253.72 Lacs) having maturity greater than 12 months) (B) Earmarked Balances with Banks Other Bank Balances Total * Held as Margin against Bank guarantee and letter of credit. NOTE 19 SHORT-TERM LOANS & ADVANCES (Unsecured, Considered Good) Loan to Subsidiary Advances recoverable in cash or in kind or for value to be received - To Related Parties - To Subsidiary - To Others Balance with Central Excise and Cenvat Receivable Sales Tax / VAT Receivable / Refundable Income Tax Payments (Including TDS) Income Tax Refundable MAT Credit Entitlement [Refer Note below] Prepaid Expenses Derivative Contracts Receivable Accrued Interest on Deposits 220.50 245.44 5,827.88 5,373.22 5,498.23 103.34 22.86 1,896.53 166.76 75.43 498.22 20,910.46 930.42 2.55 12,665.81 3,144.60 3,613.77 67.48 22.86 1,507.53 81.58 238.79 23,221.79 982.04 946.40 181.04 180.13 361.17 4,824.27 79.94 2,135.64 2,215.58 6,442.22
10.79 4,835.06 5,196.23
9.86 6,452.08 8,667.66
47

NOTE 19 SHORT-TERM LOANS & ADVANCES (Contd.) The Company has made current tax provision for Minimum Alternate Tax (MAT) u/s 115JB of the Income Tax Act, 1961. As per the provisions of Section 115JAA, MAT Credit receivable for the amount in excess over tax liability as per normal computation has been recognised as an asset. MAT credit is recognised as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to the Statement of Profit & Loss and shown as MAT Credit Entitlement. NOTE 20 OTHER CURRENT ASSETS 31-03-2013 (Unsecured, Considered Good) Export Incentive Receivable Subsidy/Power Incentive Receivable 4,330.08 4,464.82 8,794.90 (` in Lacs) 31-03-2012 2,110.32 800.94 2,911.25
NOTE 21 REVENUE FROM OPERATIONS Sale of Products Sale of Manufactured Goods - Export Sales - Domestic Sales Sale of Raw Materials Sale of Traded Goods Other Operating Revenues - Export Incentives [includes ` 698.14 Lacs (P.Y. Nil) for earlier years] Details of Sale of Products Sale of Manufactured Goods - Ferro Alloys - Iron and Steel Products Sale of Raw Materials - Manganese Ore - Coal & Coke - Others Sale of Traded Goods - Ferro Alloys - Manganese Ore - Coal & Coke - Iron and Steel Products
99,007.63 95,212.32 10,902.35 24,537.51 2,29,659.81
72,596.23 79,610.40 1,598.31 18,251.94 1,72,056.88
6,666.50 2,36,326.30
3,205.74 1,75,262.62
1,31,084.02 63,135.93 7,783.64 1,794.02 1,324.69 76.36 423.43 24,037.72 2,29,659.81
1,18,185.52 34,021.11 1,425.11 93.41 79.79 257.65 8,186.28 994.63 8,813.37 1,72,056.88
48

NOTE 22 OTHER INCOME 31-03-2013 Interest Income - On Credit Sales - On Fixed Deposits - Other Deposits - On Loan given - On Loan to subsidary Commission Income Premium on Forward Contracts Profit on redemption of Mutual Fund Sundry Balances Written Back Liabilities no longer required written back Prior Period Income [Refer Note (a) Below] Lease Rent Received Insurance Claim Received Miscellaneous Income a) Prior period items for the year comprise of the following : Commission on Sales Purchases Insurance Power & Fuel Total NOTE 23 COST OF MATERIALS CONSUMED (including cost of Raw Materials sold) Opening Stock of Raw Materials & Intermediates Purchases during the year (including freight) Less : Closing Stock of Raw Materials Cost of Raw Materials consumed Less : Closing Stock of Intermediates Cost of Materials consumed Details of Raw Materials Consumed Chrome Ore Manganese Ore Coal & Coke Sponge Iron, Scrap & Billets Others 49,890.51 1,30,343.38 1,80,233.89 66,917.52 1,13,316.37 4,869.75 1,08,446.62 26,839.94 32,491.68 16,183.21 20,990.40 16,811.14 1,13,316.37 31,944.67 94,256.24 1,26,200.91 48,938.77 77,262.14 951.74 76,310.40 23,782.92 22,731.02 13,691.15 8,514.20 8,542.85 77,262.14 121.62 442.62 260.61 25.27 38.93 152.00 51.81 34.17 3.60 37.44 0.13 1,168.20 150.61 2.00 (118.44) 34.17 (` in Lacs) 31-03-2012 100.31 351.14 185.02 76.23 6.47 11.34 (0.62) 3.60 26.31 1.53 761.33 (0.62) (0.62)
49

NOTE 23 COST OF MATERIALS CONSUMED (Contd.) 31-03-2013 % Break up into Imported & Indigenous Imported Indigenous 47.37% 52.63% 100.00% (` in Lacs) 53,672.98 59,643.39 1,13,316.37 31-03-2012 % 44.07% 55.93% 100.00% (` in Lacs) 34,046.63 43,215.51 77,262.14
NOTE 24 PURCHASES OF STOCK IN TRADE 31-03-2013 Ferro Alloys Manganese Ore Coal & Coke Iron and Steel Products 175.11 349.10 20,864.07 21,388.28
(` in Lacs) 31-03-2012 120.90 6,722.05 992.88 8,180.34 16,016.17
NOTE 25 CHANGES IN INVENTORIES OF FINISHED GOODS & WORK-IN-PROGRESS Opening Stock Finished Goods Ferro Alloys Iron & Steel Products Work-in-Progress Ferro Alloys Iron & Steel Products Traded Goods Ferro Alloys Iron & Steel Products Closing Stock Finished Goods Ferro Alloys Iron & Steel Products Work-in-Progress Ferro Alloys Iron & Steel Products Traded Goods Ferro Alloys
3,432.17 1,488.03 7,231.92 1,098.07 2.89 13,253.08
6,781.61 5,697.02 123.00 417.19 13,018.82
3,636.79 1,498.22 8,011.63 2,142.31 104.67 15,393.62 (2,140.54)
3,432.17 1,488.03 7,231.92 1,098.07 2.89 13,253.08 (234.25)
50

NOTE 26 EMPLOYEE BENEFIT EXPENSE 31-03-2013 Salaries, Wages, Bonus & Allowances Contribution to Provident & Other Funds Gratuity [Refer Note 34] Directors' Remuneration Welfare Expenses NOTE 27 FINANCE COSTS Interest Expense To Banks - On Fixed Loans - On Others [Refer Note (a) below] To Others Other Borrowing Costs Vehicles and Equipment Finance Charges Applicable Net Gain/Loss on Foreign Currency Transactions and translations 2,067.70 86.96 21.06 69.50 66.13 2,311.35 (` in Lacs) 31-03-2012 1,689.34 80.33 34.79 66.00 73.74 1,944.20
2,842.89 8,843.76 707.48 1,451.99 36.51 501.84 14,384.47
2,474.86 5,662.68 833.45 1,364.73 26.64 258.16 10,620.52
a) Interest to Banks is net of ` 600 lacs receivable as Interest Subsidy recognised on receipt of Eligibility Certificate under the West Bengal Incentive Scheme, 2000. NOTE 28 OTHER EXPENSES Labour Charges Power & Fuel Water Supply Charges Stores, Spares and Consumables [Refer Note (a) below] Packing Materials Material Handling Expenses Excise Duty on Variation in Stock [Refer Note (b) below] Repairs - To Factory Shed & Building - To Plant & Machinery Rent Rates & Taxes Electricity Expenses Insurance Printing and Stationery Postage and Courier Telephone Charges Travelling & Conveyance 2,505.87 48,180.75 86.15 7,414.39 509.27 1,535.96 (33.06) 56.07 450.23 104.19 17.42 28.83 176.78 49.05 12.02 58.53 132.44 1,704.14 38,236.30 65.86 4,696.88 481.96 1,395.76 171.73 29.71 358.18 99.20 76.17 23.15 183.61 54.13 12.17 48.83 186.18
51

NOTE 28 OTHER EXPENSES (Contd.) 31-03-2013 Car Running and Maintenance Other Repairs and Maintenance Security Service Charges Membership and Subscription Internal Audit Fees Legal and Professional Charges Auditors' Remuneration [Refer Note Below (c)] Directors' Sitting Fees Miscellaneous Expenses Processing Fees to WBIDC Ltd Testing & Inspection Charges Donations Advertisement & Sales Promotion Freight & Forwarding on Export Transportation & Delivery Charges Commission on Sales Discounts & Rebates Excise Duty / Sales Tax for earlier years Corporate Social Responsibility Investment & Advance Written off Loss on Sale of Fixed Assets Loss on Redemption of Mutual Funds Short Recovery & Damages Sundry Balances Written Off Foreign Exchange Fluctuation Loss Irrecoverable Claims Written Off 130.87 110.34 331.80 41.91 8.50 256.60 14.83 1.75 243.94 3.92 172.79 8.14 71.67 4,453.20 3,152.79 233.20 10.93 12.38 2.99 222.51 4.74 1,909.50 50.60 72,734.79 (` in Lacs) 31-03-2012 128.63 33.49 343.53 32.39 10.58 118.70 10.78 2.05 238.95 11.63 113.04 2.01 131.92 2,752.57 2,156.53 211.18 0.20 13.30 6.00 66.91 15.95 0.16 42.75 1,373.74 55,640.93
a) Stores, Spares & Consumables 31-03-2013 % Break up into Imported & Indigenous Imported Indigenous 4.48% 95.52% 100.00% ` in Lacs 332.18 7,082.21 7,414.39 31-03-2012 % 0.55% 99.45% 100.00% ` in Lacs 25.67 4,671.21 4,696.88
b) Amount of excise duty on variation in stock represents differential excise duty on opening and closing stock of finished goods.
52

NOTE 28 OTHER EXPENSES (Contd.) c) Auditors Remuneration : 31-03-2013 i) As Auditor [includes tax audit fees of ` 2.00 Lacs (P.Y. ` 1.50 Lacs)] ii) For Taxation matters iii) For Other services Total NOTE 29 EARNINGS PER SHARE Weighted average number of Equity Shares outstanding during the year Number of Shares considered as weighted average shares and potential shares outstanding for calculation of Diluted Earnings Per Share Profit after Tax attributable to Equity Shareholders (` in Lacs) Nominal Value of Ordinary Shares (`) Earnings Per Share (Basic) (`) Earnings Per Share (Diluted) (`) NOTE 30 CONTINGENT LIABILITIES AND COMMITMENTS (i) Contingent Liabilities not provided for in the books of accounts in respect of : (a) Bills discounted, outstanding as on 31st March, 2013 - ` 5,446.15 Lacs (P.Y. - ` 6,097.24 Lacs). (b) Corporate Guarantee to Indian Overseas Bank, Hongkong to secure the financial assistance to SKP Overseas Pte Ltd, a Wholly Owned Subsidary. Amount payable by SKP Overseas Pte Ltd. to Indian Overseas Bank, Hongkong as on 31st March 2013 is USD. 5.35 Million (P.Y. USD 8.35 Million). (c) Claims against the Company not acknowledged as debt : 31-03-2013 Disputed Excise Duty/Service Tax under appeal Disputed Sales Tax/ VAT under appeal Disputed Entry Tax under appeal Disputed Income Tax Demands under appeal Excise Duty demand for which show cause notice issued Excise Demand, pending showcause Disputed ESI under Settlement Commission Irregular Claim of Export Incentives, pending show cause from DRI 546.07 836.77 16.03 20.78 20.00 150.00 31-03-2012 576.91 533.95 0.70 21.68 4.31 10.25 150.00 9,15,65,164 9,15,65,164 2,892.10 10 3.16 3.16 5,80,76,669 5,80,76,669 4,030.92 10 6.94 6.94 10.00 0.80 4.03 14.83 (` in Lacs) 31-03-2012 7.50 0.70 2.58 10.78
(d) The Company has challenged the consitutional validity of Entry Tax levied by the Government of West Bengal w.e.f. 1st April, 2012. In view of the stay granted by the Hon'ble High Court of Calcutta, the Company has not provided amount of ` 177.98 Lacs for the same in the accounts. (ii) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (Net of Advances) ` 9,551.28 Lacs (Previous Year ` 15,155.45 Lacs). (iii) Estimated amount of export obligations to be fulfilled in respect of goods imported under Duty Free Import Authorisation Scheme - ` Nil (Previous Year ` 988.22 Lacs) and under Export Promotion Capital Goods Scheme (EPCG) - ` 1,849.09 Lacs (Previous Year ` 4,885.35 Lacs). Annual Report 2012-13 53

NOTE 31 In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts. Adequate provisions have been made for all known losses and liabilities. NOTE 32 Certain balances of Sundry Creditors, Sundry Debtors, Unsecured Loans and Advances are subject to confirmation. NOTE 33 RESEARCH AND DEVELOPMENT EXPENSES Research and Development expenses aggregating to ` 30.19 Lacs ( P.Y. ` 17.84 Lacs) in the nature of revenue expenditure have been included under the appropriate account heads. NOTE 34 EMPLOYEE BENEFITS Disclosure pursuant to Accounting Standard- 15 (Revised) " Employee Benefits" : Contribution to Defined Contribution Plan, recognised as expense for the year is as under : 31-03-2013 Employers Contribution to Provident and Other Funds 86.96 (` in Lacs) 31-03-2012 80.33
The employees gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method as on 31st March, 2013 which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Gratuity (Funded) 31-03-2013 (i) Reconciliation of Opening and Closing Balances of the present value of Defined Benefit Obligation : Defined Benefit obligation at beginning of the year Interest Cost Current Service Cost Actuarial (Gain)/Loss Benefits paid Defined Benefit obligation at the year end (ii) Reconciliation of Opening and Closing Balances of fair value of plan assets : Fair value of plan assets at beginning of the year Expected return on plan assets Actuarial Gain/(Loss) Employers contribution Benefits paid Fair value of plan assets at the year end Actual return on plan assets Gratuity (Funded) 31-03-2012
58.00 4.64 17.54 (0.20) 79.99
27.80 2.22 10.16 17.82 58.00
79.38 7.27 21.06 107.70 7.27
40.73 3.86 34.79 79.38 3.86
54

NOTE 34 EMPLOYEE BENEFITS (Contd.) Gratuity (Funded) 31-03-2013 (iii) Reconciliation of fair value of assets and obligation : Fair value of plan assets Present value of obligation Amount recognised as liability/ (asset) in Balance Sheet* (*Excess of assets not recognised as the same is lying in an irrevocable trust fund) (iv) Expenses recognised during the year in the Statement of Profit & Loss : (shown in Note - 26 under the head 'Gratuity') Current Service Cost Interest Cost Expected return on plan assets Actuarial (Gain)/Loss Net asset (surplus) not recognised as above Recognised in the Statement of Profit and Loss (v) Break-up of Plan Assets as a percentage of total plan assets : Insurer Managed Funds (vi) Actuarial Assumptions : Mortality Table Discount rate (per annum) Rate of escalation in salary (per annum) (vii) Other Disclosures 31-03-2013 Defined Benefit Obligation Plan Assets Surplus/(Deficit) Experience Adjustment on Plan Liabilities 79.99 107.70 27.72 (0.20) 31-03-2012 58.00 79.38 21.37 17.82 31-03-2011 27.80 40.73 12.93 (4.39) 31-03-2010 23.46 30.34 6.88 (1.98) 31-03-2009 17.43 21.16 3.73 (0.24) 107.70 79.99 (` in Lacs) Gratuity (Funded) 31-03-2012 79.38 58.00
17.54 4.64 (7.27) (0.20) 6.34 21.06 100% LIC 1994-96 Ultimate 8% 4%
10.16 2.22 (3.86) 17.82 8.45 34.79 100%
8% 4%
(viii) (a) The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. (b) The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency in terms of the post employment benefit obligations. (c) Expected rate of return assumed by the insurance company is generally based on their investment pattern as stipulated by the Government of India. (ix) The above information is certified by the actuary. (x) The Company expects to contribute ` 23.13 Lacs to the Gratuity Fund managed by the Life Insurance Corporation of India during the Financial Year 2013 - 2014. Annual Report 2012-13 55

NOTE 35 SEGMENT REPORTING (i) Business segments : Based on the synergies and in terms of Accounting Standard - 17, the Company is mainly engaged in the business segment of manufacture & sale of Ferro Alloys and Iron & Steel Products. The risks and returns of Captive Power Plant is directly associated with the manufacturing operations of Ferro Alloys and hence treated as a part of Ferro Alloys segment. (` in Lacs) 31-03-2013 Segment Revenue (Net) Ferro Alloys Iron and Steel Inter Segment Revenue Total Segment Results (Profit before Finance Cost & Tax) Ferro Alloys Iron and Steel Unallocated Total Less : Finance Cost Less : Exceptional Items Profit before tax Less : Tax Expense Profit after tax Other Information Assets Liabilities Capital Expenditure 31,058.30 864.31 59.21 11,013.06 31,117.51 11,877.37 Depreciation Non-cash Exps (other than Depreciation) 2,450.38 1,751.66 503.10 417.79 2,953.48 2,169.45 66.91 66.91 66.91 1,59,093.62 80,805.20 (14,044.36) 2,25,854.46 31-03-2012 1,39,852.13 39,626.44 (11,748.05) 1,67,730.52
13,861.52 7,411.62 55.54 21,328.68 14,384.47 2,660.91 4,283.30 1,391.20 2,892.10
12,234.93 4,395.11 14.92 16,644.95 10,620.52 6,024.43 1,993.51 4,030.92
Ferro Alloys Iron and Steel Unallocated Total (31-03-2013) Total (31-03-2012)
2,15,004.35 1,59,273.67 54,966.87 38,458.29 9,086.13 7,977.04 2,79,057.35 2,05,709.00
43,909.88 23,694.94 15,199.84 9,976.97 6,398.14 6,347.23 65,507.86 40,019.14
# figures in italics represent data for Previous Year.
56

NOTE 35 SEGMENT REPORTING (Contd.) (ii) Geographical segments : The Company's secondary geographical segments have been identified based on the location of customers and are disclosed based on revenues within India and revenues outside India. Secondary segment assets are based on the location of such asset. (` in Lacs) Segment Period Segment Revenue (Gross) 1,37,318.67 1,02,666.39 99,007.63 72,596.23 2,36,326.30 1,75,262.62 Segment Assets 2,65,125.16 1,93,513.09 13,932.19 12,195.91 2,79,057.35 2,05,709.00 Capital Expenditure 31,117.51 11,877.37 31,117.51 11,877.37
Within India Outside India Total
Year ended Year ended Year ended Year ended Year ended Year ended
31-03-2013 31-03-2012 31-03-2013 31-03-2012 31-03-2013 31-03-2012
NOTE 36 RELATED PARTY DISCLOSURE i) Name of the related parties where control exists irrespective of whether transactions have occurred or not (a) Enterprise on which the Company has control SKP Overseas PTE Ltd. Wholly Owned Subsidiary PT Bara Prima Mandiri Subsidiary of SKP Overseas PTE Ltd. (b) Entities / Individuals owning directly or indirectly an interest in the voting power that gives them control None ii) Names of the other related parties with whom transactions have taken place during the year (a) Key Managerial Personnel (KMP) Mr. Suresh Kumar Patni Mr. Rohit Patni Mr. Ankit Patni (upto 24.08.2012) Mr. Binit Jain (b) Relatives of KMP Mrs. Sarita Patni Mr. Ankit Patni (from 25.08.2012) (c) Enterprises owned or significantly influenced by KMP or their relatives Arin Minerals Pvt. Ltd. Impex Metal & Ferro Alloys Ltd. Impex Ferro Tech Ltd. Ankit Metal & Power Ltd. Nucore Exports Pvt. Ltd. Arthodock Vinimay Pvt. Ltd. Whitestone Suppliers Pvt. Ltd. Vasupujya Enterprises Pvt. Ltd. Marble Arch Properties Pvt. Ltd. SKP Power Ventures Ltd. VNG Mercantiles Pvt. Ltd. Invesco Finance Pvt. Ltd. Poddar Mech Tech Services Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. Hira Concast Ltd. Impex Steel Ltd. Shreyansh Leafin Pvt. Ltd. Mahabali Ispat Pvt. Ltd. SKP Stock Broking Pvt. Ltd. Sarita Steel & Power Ltd. Shubham Complex Pvt. Ltd. Annual Report 2012-13 57

NOTE 36 RELATED PARTY DISCLOSURE (Contd.) 31-03-2013 1,194.24 582.24 613.88 242.89 50.00 2.50 73.53 0.19 (` in Lacs) 31-03-2012 1,881.05 1,483.86 582.11 2.55 100.00 200.00 1,340.00 709.00 iii. Nature of Transactions Investment in Equity Shares SKP Overseas PTE Ltd. Loans Given SKP Overseas PTE Ltd. Loans Refunded SKP Overseas PTE Ltd. Advances Given SKP Overseas PTE Ltd. Sarita Steel & Power Ltd. SKP Stock Broking Pvt. Ltd. Advance Refunded Suanvi Trading & Investment Co. Pvt. Ltd. Loans Taken* Invesco Finance Pvt. Ltd. Nucore Exports Pvt. Ltd. Poddar Mech Tech Services Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. (*Excludes subsequent transfers to Share Application Money) Loans Repaid Invesco Finance Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. Share Application money received & Shares alloted* Ankit Patni Rohit Patni Sarita Patni Suresh Kumar Patni Arthodock Vinimay Pvt. Ltd. Invesco Finance Pvt. Ltd. Nucore Exports Pvt. Ltd. Poddar Mech Tech Services Pvt. Ltd. Vasupujya Enterprises Pvt. Ltd. VNG Mercantiles Pvt. Ltd. Shreyansh Leafin Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. Whitestone Suppliers Pvt. Ltd. (*Includes conversion of loans) Interest Received on Sales Impex Steel Ltd. Interest Received on Loan SKP Overseas PTE Ltd. 58 Rohit Ferro-Tech Limited 38.93 1.82 210.00 210.00 270.00 390.00 2,400.00 1,800.00 660.00 1,500.00 1,800.00 306.00 1,800.00 1,800.00 1,800.00 750.00 1,477.49 156.96 285.00 4,795.89 4,744.66 100.19 40.00

NOTE 36 RELATED PARTY DISCLOSURE (Contd.) 31-03-2013 2,094.06 1.41 3,754.11 6,842.89 92.18 575.48 1,487.49 876.61 6,015.11 3,096.75 474.50 145.04 5.23 39.58 111.18 14.25 3.60 6.00 50.00 10.00 9.50 0.33 (` in Lacs) 31-03-2012 55.04 2.93 5,770.63 3,097.10 6,966.50 4.29 8.22 441.15 1,529.99 25.00 1,892.20 2,673.43 325.08 1,002.39 78.08 23.15 127.23 3.60 0.05 6.00 36.00 24.00 6.00 0.40 59 iii. Nature of Transactions Interest Paid on Purchases Ankit Metal & Power Ltd. Impex Metal & Ferro Alloys Ltd. Purchases Ankit Metal & Power Ltd. Arin Minerals Pvt. Ltd. Impex Ferro Tech Ltd. Impex Metal & Ferro Alloys Ltd. Impex Steel Ltd. Mahabali Ispat Pvt. Ltd. SKP Overseas PTE Ltd. Purchases of Capital Goods Ankit Metal & Power Ltd. Sales of Goods Ankit Metal & Power Ltd. Hira Concast Ltd. Impex Ferro Tech Ltd. Impex Metal & Ferro Alloys Ltd. Impex Steel Ltd. SKP Overseas PTE Ltd. DEPB Licence Purchased Ankit Metal & Power Ltd. Impex Ferro Tech Ltd. Impex Metal & Ferro Alloys Ltd. DEPB Licence Sold Impex Ferro Tech Ltd. Impex Metal & Ferro Alloys Ltd. Lease Rent Received Impex Metal & Ferro Alloys Ltd. Commission Paid Impex Ferro Tech Ltd. Rent Paid Marble Arch Properties Pvt. Ltd. Managerial Remuneration Rohit Patni Ankit Patni Binit Jain Sitting Fees Suresh Kumar Patni

NOTE 36 RELATED PARTY DISCLOSURE (Contd.) (` in Lacs) 31-03-2013 8.17 1.46 13.62 39.34 70.81 145.04 982.04 31-03-2012 566.50 45.22 262.49 1.46 258.24 946.40 (iv) Outstanding Balances Nature of Transactions Sundry Creditors Ankit Metal & Power Ltd. Impex Ferro Tech Ltd. Impex Metal & Ferro Alloys Ltd. Marble Arch Properties Pvt. Ltd. Sundry Debtors Ankit Metal & Power Ltd. Impex Steel Ltd. Impex Ferro Tech Ltd. Hira Concast Ltd. SKP Overseas PTE Ltd. Loan Given * SKP Overseas PTE Ltd. * Including accrued interest Loan Taken Nucore Exports Pvt. Ltd. Poddar Mech Tech Services Pvt. Ltd. Invesco Finance Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. Advances / Deposits Given Ankit Metal & Power Ltd. Impex Metal & Ferro Alloys Ltd. Marble Arch Properties Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. SKP Overseas PTE Ltd. Sarita Steel & Power Ltd. SKP Stock Broking Pvt. Ltd. Advances Received Impex Metal & Ferro Alloys Ltd. Impex Ferro Tech Ltd. Ankit Metal & Power Ltd. Investment in Equity Shares SKP Overseas PTE Ltd. SKP Power Ventures Ltd. 7,062.40 1.00 5,868.16 1.00 313.25 3.84 6.69 168.00 245.44 50.00 2.50 0.65 688.25 168.00 73.53 2.55 200.00 1,340.00 100.00 669.00
Term Loans and Working Capital Loans from banks are secured by way of Corporate Guarantee of the Related Parties Vasupujya Enterprises Pvt. Ltd., Shubham Complex Pvt. Ltd., Poddar Mech Tech Services Pvt. Ltd., Invesco Finance Pvt. Ltd. and Suanvi Trading and Investment Co. Pvt. Ltd. and Personal Guarantee of the Directors/Promoters - Mr. S.K.Patni, Mr. Rohit Patni and Mr. Ankit Patni. 60 Rohit Ferro-Tech Limited

NOTE 36 RELATED PARTY DISCLOSURE (Contd.) Corporate Guarantee is given to Indian Overseas Bank, Hongkong to secure the financial assistance to SKP Overseas Pte Ltd. Amount payable by SKP Overseas Pte Ltd. to Indian Overseas Bank, Hongkong as on 31st March, 2013 is USD. 5.35 Million (P.Y. USD 8.35 Million). NOTE 37 FOREIGN EXCHANGE EARNINGS AND OUTGO 31-03-2013 Earnings in Foreign Currency : F.O.B. Value of Exports Expenditure in Foreign Currency : Travelling & Conveyance Membership & Subscription Commission on Purchase Salaries Interest on Buyer's Credit Interest on Purchase Analysis Charges Commission on Sales Advertisement & Sales Promotion CIF Value of Imports : Raw Materials Stores & Spares Capital Goods 52,662.52 328.72 38,582.86 24.18 21.22 23.98 22.40 1.11 168.72 222.05 11.15 105.58 0.98 5.73 22.49 3.28 2.69 404.36 118.52 68.24 0.65 96,026.11 70,761.75 (` in Lacs) 31-03-2012
NOTE 38 AMOUNTS RECEIVABLE / PAYABLE IN FOREIGN CURRENCY Forward contracts/ hedging instruments outstanding as at the Balance Sheet date are as follows : Nature (Nos.) of Contract Forward Contracts (1, P.Y. 1) Forward Contracts (12, P.Y. 10) Foreign Currency EURO USD Buy/ Sell Sell Sell Amount in Foreign Currency (in Lacs) 13.24 (P.Y.- 20) 158.78 (P.Y.- 156.20) Purpose Hedging Purpose Hedging Purpose
Particulars of unhedged foreign currency exposure as at 31st March, 2013 are as follows : Currency a) Amount payable in foreign currency b) Amount payable in foreign currency EURO USD 31-03-2013 0.92 2,258.82 31-03-2012 516.28
61

NOTE 39 Exceptional Item represents provision for additional power charges for the period upto 31st March, 2012 on retrospective revision of power tariff, net of waiver of Electricity Duty and Power Incentive recognised, on receipt during the current year of Eligibilty Certificate, under the West Bengal Incentive Scheme 2000 and other approvals. Since the exceptional item relates to the previous periods, the management treated the same as a rare circumstance and, to reflect the true and fair representation of the performance of the Company for the year, considered it appropriate that the profits after tax be presented before the exceptional item, and then give effect to the exceptional item instead of making disclosure as per the current format in Part-II of Schedule VI (Revised) to the Companies Act, 1956. The Current tax figure is net of ` 863.33 Lacs, being the tax effect on the Exceptional item. NOTE 40 Effective 1st April 2012, the Company has adopted the principles of Hedge Accounting as set out in Accounting Standard (AS) 30 on Financial Instruments: Recognition and Measurement, in respect of foreign exchange forward contracts which have been taken against forecasted transactions and which are not covered by the requirements of Accounting Standard (AS) 11- The Effects of changes in Foreign Exchange Rates. Accordingly, net loss of ` 110.48 lacs arising on fair valuation of outstanding derivatives as on 31st March 2013 that are designated as effective cash flow hedges has been adjusted against Hedging Reserve. NOTE 41 The Company has not made any remittance in foreign currencies on account of dividend during the year and does not have information as to the extent to which remittance in foreign currencies on account of dividends have been made on behalf of non resident shareholders. NOTE 42 Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary to conform to this year's classification. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to amounts and other disclosures relating to the current year.
As per our report of even date attached For S. Jaykishan Chartered Accountants FRN : 309005E CA B. K. Newatia Partner Membership No : 050251 Kolkata, 30th May, 2013 S. K. Patni Chairman
62

To The Board of Directors of Rohit Ferro-Tech Limited We have audited the accompanying consolidated financial statements of Rohit Ferro-Tech Limited ("the Company"), and its subsidiaries (collectively referred to as "the Group"), which comprise the Consolidated Balance Sheet as at 31st March, 2013, and the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's responsibility for the Consolidated Financial Statements Management is responsible for the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Company in accordance with accounting principles generally accepted in India. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company's preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Basis for Qualified Opinion In the case of the Company's subsidiary, SKP Overseas Pte Ltd., the audit report issued by their auditor includes the following observation: a) Due to non receipt of audited financial statements relating to the investment in PT Pacific Samudra Perkasa amounting to USD 6 million (INR 3,263.36 lacs), they are not able to satisfy themselves on the carrying value of the investment as at year end. b) Trade Receivable includes USD 0.91 million (INR 494.94 lacs) due from supplier for claim for breaching contract terms. They are unable to satisfy themselves on the recoverability of the amount at the date of the report. Qualified Opinion In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors on the financial statements of the subsidiaries as noted below, except for the effects of the matters described in the Basis for Qualified Opinion paragraph, the consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India : (i) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group as at 31st March, 2013; (ii) in the case of the Consolidated Statement of Profit and Loss, of the profit for the year ended on that date; and (iii) in the case of the Consolidated Cash Flow Statement, of the cash flows for the year ended on that date. Annual Report 2012-13 63

Emphasis of Matter Attention is invited to Note 42 to the consolidated financial statements whereby the Company has presented profits after tax before the exceptional item instead of making disclosure as per the current format in Part-II of Schedule VI (Revised) of the Companies Act, 1956 and the Current tax figure is net of ` 863.33 Lacs, being the tax effect on the exceptional item. Our opinion is not qualified in respect of this matter. Other Matters We did not audit the financial statements and other financial information of subsidiaries incorporated outside India. These subsidiaries account for 2.18% of total assets and 0.56% of total revenues and other income as shown in these consolidated financial statements. The financial statements and other financial information of these subsidiaries, as drawn up in accordance with the generally accepted accounting principles of the respective countries ('the local GAAP') have been audited by other auditors duly qualified to act as auditors in those countries. For the purposes of preparation of consolidated financial statements, the aforesaid local GAAP financial statements have been restated by the management so that they conform to the generally accepted accounting principles in India. Our opinion on the consolidated financial statements, in so far as it relates to these subsidiaries, is based solely on the reports of these other auditors. For S. Jaykishan Chartered Accountants FRN : 309005E CA B. K. Newatia Partner Membership No : 050251
64
Consolidated Balance Sheet as at 31st March, 2013

Particulars I EQUITY AND LIABILITIES (1) Shareholders' Funds (a) Share Capital (b) Reserves & Surplus (2) Minority Interest (3) Non-Current Liabilities (a) Long Term Borrowings (b) Other Non-current Liabilities (c) Deferred Tax Liabilities (Net) (4) Current Liabilities (a) Short Term Borrowings (b) Trade Payables (c) Other Current Liabilities (d) Short Term Provisions II Total ASSETS (1) Non-Current Assets (a) Fixed Assets (i) Tangible Assets (ii) Intangible Assets (iii) Capital Work-in-Progress (iv) Intangible Assets under Development (b) Non-Current Investments (c) Long-Term Loans and Advances (d) Other Non-Current Assets (2) Current Assets (a) Current Investments (b) Inventories (c) Trade Receivables (d) Cash and Bank Balances (e) Short-Term Loans and Advances (f) Other Current Assets Total Significant Accounting Policies Note No. 31-03-2013
(` in Lacs) 31-03-2012
2 3
11,377.61 69,792.42 81,170.03 152.18 61,881.93 4,335.02 5,541.14 71,758.10 68,429.90 39,180.43 23,734.44 857.00 1,32,201.76 2,85,282.07
8,027.61 49,836.31 57,863.92 46,144.53 226.04 4,619.40 50,989.97 60,743.38 23,469.77 16,608.25 1,727.82 1,02,549.23 2,11,403.12
4 5 6 7 8 9 10
11 12 13 14 15 16 17 18 19 20 21 22 23 1
56,726.01 2,962.75 38,910.99 3,318.14 1,01,917.89 3,264.36 14,236.58 1,456.71 1,20,875.54 89,290.70 39,206.22 5,490.07 21,624.64 8,794.90 1,64,406.53 2,85,282.07
58,747.97 7,977.74 66,725.71 5,628.21 13,222.93 1,370.12 86,946.98 500.00 64,914.97 19,675.52 8,942.66 27,511.74 2,911.25 1,24,456.14 2,11,403.12
Accompanying Notes form integral part of the Consolidated Financial Statements As per our report of even date attached For S. Jaykishan Chartered Accountants FRN : 309005E CA B. K. Newatia Partner Membership No : 050251 Kolkata, 7th August, 2013 S. K. Patni Chairman For and on behalf of the Board
65
Consolidated Statement of Profit and Loss for the year ended 31st March, 2013
Particulars I INCOME : Revenue from Operations (Gross) Less : Excise Duty Revenue from Operations (Net) Other Income Total Revenue (I + II) EXPENSES : Cost of Materials Consumed Purchase of Stock-in-Trade Changes in Inventories of Finished Goods & Work-in-Progress Employee Benefits Expense Finance Costs Depreciation and Amortisation Expense Other Expenses Total Expenses (IV) PROFIT BEFORE TAX (III-IV) Less : Tax Expense Current Tax MAT Credit Entitlement Earlier Years' Tax Deferred Tax PROFIT AFTER TAX Less : Exceptional Items (Refer Note No. 42) PROFIT FOR THE YEAR (BEFORE ADJUSTMENT OF MINORITY INTEREST) MINORITY INTEREST PROFIT FOR THE YEAR Earnings Per Equity Share [Nominal Value of Share - ` 10/-] Basic & Diluted Significant Accounting Policies Note No. 24 31-03-2013 2,37,587.79 10,471.84 2,27,115.95 1,181.20 2,28,297.15 1,08,354.44 22,168.59 (2,140.56) 2,386.85 14,664.22 2,953.48 72,941.41 2,21,328.43 6,968.72 857.00 (389.00) 1.46 921.74 5,577.52 2,660.91 2,916.61 (23.90) 2,940.51 31-03-2012 1,78,102.40 7,532.10 1,70,570.30 761.33 1,71,331.63 76,310.40 18,622.72 (234.25) 1,976.93 10,865.35 2,169.45 55,668.57 1,65,379.17 5,952.45 1,203.38 (1,203.38) 19.18 1,974.32 3,958.95 3,958.95 3,958.95
(` in Lacs)
II III IV
25
26 27 28 29 30 31
32 1
3.21
6.82
Accompanying Notes form integral part of the Financial Statements As per our report of even date attached For S. Jaykishan Chartered Accountants FRN : 309005E CA B. K. Newatia Partner Membership No : 050251 Kolkata, 7th August, 2013 S. K. Patni Chairman For and on behalf of the Board
66
Consolidated Cash Flow Statement for the year ended 31st March, 2013
(` in Lacs) Year Ended 31st March, 2013 A. CASH FLOW FROM OPERATING ACTIVITIES Net Profit before Tax & Extra-Ordinary Items Adjustments for : Depreciation Foreign Currency Translation Reserve Finance Costs Interest Received Loss/(Profit) on Redemption of Mutual Funds Loss on Sale of Fixed Assets Investment & Advance written off Liabilities no longer required written back Sundry Balances written off / (back) Operating Profit before Working Capital Changes Adjustments for : (Increase)/Decrease in Inventories (Increase)/Decrease in Trade Receivables (Increase)/Decrease in Loans and Advances (Increase)/Decrease in Other Assets Increase/(Decrease) in Trade Payables Increase/(Decrease) in Other Liabilities Increase/(Decrease) in Minority Interest Cash generated from operations Direct Tax Paid Net Cash from Operating Activities B. CASH FLOW FROM INVESTING ACTIVITIES Purchase of Fixed Assets (including Capital Work-in-Progress and Capital Advances) Sale of Fixed Assets Interest Income Purchase of Investment Redemption of Mutual Funds (Increase) / Decrease in Fixed Deposits with Banks Net Cash used in Investing Activities 4,331.72 2,953.48 376.07 14,664.22 (852.99) (51.81) 2.99 4.74 17,096.70 21,428.41 (24,375.72) (19,535.44) 7,627.33 (5,883.65) 15,710.66 9,693.78 152.18 (16,610.87) 4,817.55 (1,299.30) 3,518.25 (35,499.58) 3.50 602.04 (598.90) 551.81 1,346.01 (33,595.12) (20,003.96) 24.25 738.01 (725.70) 9.84 (3,009.77) (22,967.33) (19,207.12) (13,698.40) (12,791.89) (312.39) 6,315.54 4,796.95 (34,897.31) (15,912.29) (1,143.71) (17,056.00) 2,169.45 569.02 10,865.35 (636.47) 0.16 15.95 66.91 (11.34) (6.47) 13,032.56 18,985.02 Year Ended 31st March, 2012 5,952.46
67
Consolidated Cash Flow Statement for the year ended 31st March, 2013 (Contd.)
(` in Lacs) Year Ended 31st March, 2013 C. CASH FLOW FROM FINANCING ACTIVITIES Proceeds from Issue of Shares Increase/ (Decrease) in Long Term Borrowings Increase/ (Decrease) in Short Term Borrowings Deferred Expenses Share Issue Expenses Finance Costs Dividend Paid Corporate Dividend Tax Net Cash from Financing Activities Net Increase/(Decrease) in Cash & Cash Equivalents Cash & Cash Equivalents at the beginning of the year (Refer Note No.21 to the Accounts) Cash & Cash Equivalents at the end of the year (Refer Note No.21 to the Accounts) Notes : 1. The above Consolidated Cash Flow Statement has been prepared under the "Indirect Method" as set out in the Accounting Standard - 3 on 'Cash Flow Statement' notified by the Companies (Accounting Standards) Rules, 2006. 2. Cash and Cash Equivalents include cash in hand and bank balances on current accounts [Refer Note No.21 to the Accounts]. 3. Figures in brackets indicate cash outflows. 4. Previous year's figures have been regrouped/rearranged, wherever considered necessary to conform to this year's classification. 20,100.00 15,547.13 7,686.53 (86.58) (14,811.22) (401.38) (65.11) 27,969.35 (2,107.52) 2,490.58 383.06 Year Ended 31st March, 2012 15,000.00 14,233.98 23,608.91 (352.86) (35.00) (10,750.54) (276.38) (44.84) 41,383.27 1,359.94 1,130.64 2,490.58
As per our report of even date attached For S. Jaykishan Chartered Accountants FRN : 309005E CA B. K. Newatia Partner Membership No : 050251 Kolkata, 7th August, 2013 S. K. Patni Chairman
68
Notes to and forming part of Consolidated Financial Statements as at 31st March, 2013
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to the periods presented in these consolidated financial statements. 1.1. Basis of accounting and preparation of consolidated financial statements The consolidated financial statements relate to Rohit Ferro-Tech Limited ('the Company') and its subsidiaries (collectively referred to as 'the Group'). The consolidated financial statements are prepared in accordance with Accounting Standard 21 - "Consolidated Financial Statements" prescribed in the Companies (Accounting Standard), Rules 2006 notified by the Central Government. The consolidated financial statements are prepared by adopting uniform accounting policies between the group companies for like transactions and other events in similar circumstances and are presented to the extent possible, in the same manner as the Company's separate financial statements. Appropriate disclosure, as applicable, is made of significant deviations from the Company's accounting policies, which have not been adjusted. The consolidated financial statements are prepared under the historical cost convention, on the accrual basis of accounting to comply with the applicable accounting principles in India, the mandatory Accounting Standards prescribed by the Companies (Accounting Standard), Rules 2006, the relevant provisions of the Companies Act, 1956 ('the Act') and the guidelines issued by the Securities and Exchange Board of India (SEBI). The consolidated financial statements are presented in Indian rupees (in Lakhs), in the same format as that adopted by the Parent Company for its standalone financial statements. Subsidiaries considered in the consolidated financial statements : Name of the Company Country of incorporation Singapore Indonesia Current Year Percentage Holding - Share 100% 60% Previous Year Percentage Holding - Share 100% NIL
SKP Overseas Pte. Limited PT Bara Prima Mandiri 1.2. Principles of consolidation
The consolidated financial statements have been prepared on the following basis : a) The financial statements of the Company and its subsidiaries are consolidated on a line-by-line basis after fully eliminating the intra-group transactions and intra-group balances in accordance with Accounting Standard 21 - "Consolidated Financial Statements" prescribed by the Companies (Accounting Standard), Rules 2006. The difference between the cost of investment in the subsidiaries, over the net assets at the time of acquisition of shares in the subsidiaries, is recognised in the financial statements as Goodwill or Capital Reserve as the case may be. Minority Interest's share of net profit of consolidated subsidiaries for the year is identified and adjusted against the income of the group in order to arrive at the net income attributable to shareholders of the Company. In case of foreign subsidiaries, being non-integral foreign operations, revenue items are consolidated at the average rate prevailing during the year. All assets and liabilities are converted at rates prevailing at the end of the year. Any exchange difference arising on consolidation is recognised in the Foreign Exchange Translation Reserve. The difference between the proceeds from disposal of investment in a subsidiary and the carrying amount of its assets less liabilities as of the date of disposal is recognised in the Consolidated Statement of Profit and Loss as exceptional item being the profit or loss on disposal of investment in subsidiary.
b)
c) d)
e)
69
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (Contd.) 1.3. Investment Investments other than in subsidiaries and associates have been accounted as per Accounting Standard (AS) 13 "Accounting for Investments". 1.4. Intangible Asset Intangible Asset includes Goodwill which represents the excess of the cost of the acquisition over the fair value of identifiable net assets of a subsidiary at the date of acquisition. It is reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Mine Development Expenses has been recognised as intangible assets under development and includes expenses on account of prospecting, expenses for regulatory clearances, exploration and evaluation of mines etc. These expenses are carried forward and will be capitalised once the mine starts the commercial production. 1.5. Other Accounting Policies These are set out under "Significant Accounting Policies" as given in the Standalone Financial Statements of Rohit Ferro-Tech Limited. NOTE 2 SHARE CAPITAL 31-03-2013 Authorised 15,00,00,000 (P.Y. 15,00,00,000) Equity Shares of ` 10/- each Issued, Subscribed and Paid-up 11,37,76,123 (P.Y. 8,02,76,123) Equity Shares of ` 10/- each fully paid up 15,000.00 11,377.61 (` in Lacs) 31-03-2012 15,000.00 8,027.61
a) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period Equity Shares At the Beginning of the Period Issued During the Period At the End of the Period b) Terms/Rights attached to Equity Shares The Company has only one class of Equity Shares having a par value of ` 10 per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount. The distribution will be in proportion to the number of Equity Shares held by the shareholders. 31-03-2013 Nos. ` in Lacs 8,02,76,123 3,35,00,000 11,37,76,123 8,027.61 3,350.00 11,377.61 31-03-2012 Nos. ` in Lacs 5,52,76,123 2,50,00,000 8,02,76,123 5,527.61 2,500.00 8,027.61
70
NOTE 2 SHARE CAPITAL (Contd.) c) Details of the shareholders holding more than 5% shares in the Company 31-03-2013 No. of % Shares holding Equity shares of ` 10 each fully paid Suanvi Trading and Investment Co. Pvt. Ltd. Vasupujya Enterprises Pvt. Ltd. Invesco Finance Pvt. Ltd. Poddar Mech Tech Services Pvt. Ltd. Shreyansh Leafin Pvt. Ltd. Whitestone Suppliers Pvt. Ltd. 1,12,37,501 1,13,59,538 1,10,39,317 1,29,79,933 1,09,93,150 1,09,07,765 9.88 9.98 9.70 11.41 9.66 9.59 31-03-2012 No. of % Shares holding 82,37,501 83,59,538 80,39,317 1,04,79,933 79,93,150 79,07,765 10.26 10.41 10.01 13.05 9.96 9.85
d) During the year, the Company has made preferential allotment of 3,35,00,000 Equity Shares of ` 10/- each at a premium of ` 50/- per share, aggregating to ` 20,100 Lacs to part finance the setting up of a 33MVA Sub-merged Arc Furnace at Jajpur, to meet long-term working capital requirement of the Company and to invest in the Company's Wholly Owned Subsidiary SKP Overseas Pte Ltd. The proceeds of the issue have been utilised towards the objects of the said issue. NOTE 3 RESERVES AND SURPLUS 31-03-2013 Capital Reserve As per last account - Capital Investment Subsidy - Forfeiture of Deposit against Share Warrants Securities Premium Account At the beginning of the accounting period Additions during the year Share Issue Expenses written off At the end of the accounting period Hedge Reserve [Refer Note 43] At the beginning of the accounting period Additions during the year General Reserve As per last account (` in Lacs) 31-03-2012
240.00 128.14 368.14 25,653.10 16,750.00 42,403.10 42,403.10 (110.48) (110.48) 450.00
240.00 128.14 368.14 13,188.10 12,500.00 25,688.10 (35.00) 25,653.10 450.00
71
NOTE 3 RESERVES AND SURPLUS (Contd.) 31-03-2013 Foreign Currency Translation Reserve At the beginning of the accounting period Additions during the year Deductions during the year At the end of the accounting period Surplus (Balance in the Consolidated Statement of Profit & Loss) Balance as per last Financial Statement Profit for the year Less : Appropriations - Proposed equity dividend (Amount per share Nil (P.Y. ` 0.50)) - Tax on proposed equity dividend Closing Balance 600.11 376.07 976.18 22,764.97 2,940.51 25,705.48 69,792.42 (` in Lacs) 31-03-2012 31.09 569.02 600.11 19,272.52 3,958.95 401.38 65.11 22,764.97 49,836.31
NOTE 4 LONG-TERM BORROWINGS Non-current Portion 31-03-2013 Term Loans (Secured) Rupee Loans from Banks Foreign Currency Loan Loans from Related Party Loan from Body Corporates (Unsecured) Other Loans and Advances Loan from Body Corporates (Unsecured) Loans against Vehicles & Equipments (Secured) 51,056.87 1,196.56 52,253.43 9,534.50 94.00 9,628.50 61,881.93 52,347.43 9,534.50 61,881.93 31-03-2012 33,365.93 2,736.87 36,102.80 2,309.00 2,309.00 7,509.50 223.23 7,732.73 46,144.53 36,326.03 9,818.50 46,144.53 Current Maturities 31-03-2013 3,908.82 1,713.26 5,622.08 159.09 159.09 5,781.17 5,781.17 (5,781.17) 31-03-2012 4,256.99 1,534.70 5,791.69 179.76 179.76 5,971.45 5,971.45 (5,971.45)
The above amount includes Secured Borrowings Unsecured Borrowings Amount disclosed under the head "Other Current Liabilities" (Refer Note 9)
72
NOTE 4 LONG-TERM BORROWINGS (Contd.) (A) Details of security (i) Rupee Term Loans from banks are secured by way of : a) 1st charge on pari passu basis on the entire Fixed Assets of the Company, both present and future, including equitable mortgage of factory land & building at Bishnupur (West Bengal), Jajpur (Odisha) and Haldia (West Bengal) and second charge on pari passu basis on entire Current Assets of the Company, both present and future. b) Collateral security by equitable mortgage of Land & Building at 1/26, Vidyadhar Nagar, Jaipur, Rajasthan held in the name of Shubham Complex Pvt. Ltd. and Office space measuring 835 sq. ft. located at Flat no. 21B, 4th Floor, Bowbazar, 35, C. R. Avenue, Kolkata - 12, held in the name of Mr. S. K. Patni. c) Personal Guarantee of the Promoter/Directors - Mr. S. K. Patni, Mr. Rohit Patni and Mr. Ankit Patni. d) Corporate Guarantee of the Group Companies - Vasupujya Enterprises Pvt. Ltd., Shubham Complex Pvt. Ltd., Poddar Mech Tech Services Pvt. Ltd., Invesco Finance Pvt. Ltd. and Suanvi Trading and Investment Co. Pvt. Ltd. (ii) Foreign Currency Loan from Indian Overseas Bank is secured by assignment of shares of mining companies, pledge of investments in exchangeable bonds of PT Pacific Samudra Perkasa, personal guarantees given by certain promoters and directors of the parent company and as well as 25% of deposit margin for working capital limits. (iii) Loans against Vehicles & Equipment are secured by way of hypothecation of the underlying asset financed. (B) Terms of Repayment (i) Term Loans from Banks Bank's Name Amount outstanding (` in Lacs) Period of Maturity with respect to Balance Sheet date Repayment Terms with reference to Balance Sheet date
Rupee Loan Allahabad Bank Allahabad Bank* Canara Bank Exim Bank* 2,357.10 4,575.61 2,402.04 6,500.00 5 yrs 6 m 13 yrs 6 m 5 yrs 6 m 7 yrs 6 m 22 Quarterly Installments of ` 107.15 Lacs each. 44 Quarterly Installments of ` 114 Lacs each from Dec, 2015. 22 Quarterly Installments of ` 109.19 Lacs each. 24 Quarterly Installments from Dec, 2014 - 20 of ` 329 Lacs each and 4 of ` 330 Lacs each. 44 Quarterly Installments of ` 227 Lacs each from June, 2014. 24 Quarterly Installments from Dec, 2014 - 20 of ` 417 Lacs each and 4 of ` 416 Lacs each. 16 Quarterly Installments of ` 312.50 Lacs each. 44 Quarterly Installments of ` 114 Lacs each from June, 2014. 44 Quarterly Installments of ` 114 Lacs each from June, 2014. Annual Report 2012-13 73
State Bank of India* State Bank of India*
9,204.69 6,499.99
12 yrs 7 yrs 6 m
State Bank of India State Bank of Hyderabad* State Bank of Travancore*
5,000.00 4,644.18 4,639.64
4 yrs 12 yrs 12 yrs
NOTE 4 LONG-TERM BORROWINGS (Contd.) Bank's Name Amount outstanding (` in Lacs) 549.00 26.82 1,900.00 Period of Maturity with respect to Balance Sheet date 5 yrs 6 m 2m 13 yrs 3 m Repayment Terms with reference to Balance Sheet date
Rupee Loan United Bank of India United Bank of India United Bank of India* 22 Quarterly Installments of ` 25 Lacs each. 2 Monthly Installments of ` 14.13 Lacs each. 44 Quarterly Installments from Sept, 2015 - 43 of ` 47.88 Lacs each and 1 of ` 41.16 Lacs. 16 Quarterly Installments of ` 416.67 Lacs each. 4 Quarterly Installments of ` 407.92 Lacs each and 2 of ` 543.89 Lacs 5 Quarterly Installments of ` 108.78 Lacs each, 6 of ` 135.97 Lacs, 3 of ` 163.17 Lacs and 4 of ` 217.56 Lacs.
United Bank of India Foreign Currency Loan Indian Overseas Bank*
6,666.61
4 yrs
1,278.15
1 yrs 6m
Indian Overseas Bank*
1,631.68
4 yrs 6m
* Part of the Term Loans are yet to be disbursed. Term Loans carry an average interest rate of 14.05% (Previous year - 13.71%) Foreign Currency Term Loans carries an average interest rate of 6 months LIBOR + 4.5% (Previous year - 6 months LIBOR + 4.5%) (ii) Unsecured Loan from Bodies Corporate aggregating to ` 9,184.50 Lacs (P.Y. ` 9,818.50 Lacs) are interest free. Other Loans carry interest @ 12% p.a. Such loans are repayable at the option of the Company and are stated by the management to be in the nature of Long Term Borrowings. (iii) Loans against Vehicles & Equipments are repayable by way of Equated Monthly Installments subsequent to taking of such loan. The original period of such loans is 3 years. (` in Lacs) NOTE 5 OTHER NON-CURRENT LIABILITIES 31-03-2013 Derivative Contracts Payable Advance from Parties Other Payables - For Accrued Expenses 511.72 413.61 3,409.69 4,335.02 31-03-2012 226.04 226.04
NOTE 6 DEFERRED TAX LIABILITY (NET) Deferred Tax Liability - Related to Fixed Assets Deferred Tax Asset - Unabsorbed Depreciation Net Deferred Tax Liability 74 Rohit Ferro-Tech Limited 5,541.14 5,541.14 4,755.27 135.87 4,619.40
NOTE 7 SHORT-TERM BORROWINGS 31-03-2013 Working Capital Loans from Banks (Secured) - Rupee Loans - Foreign Currency Loans - Buyer's Credit Other Loans and Advances (Unsecured) - Foreign Currency Loan - Bank Overdraft - Bridge Loan from WBIDC Ltd. (against interest subsidy receivable) (A) Details of Security (i) Working Capital Loans are secured by way of : a) 1st charge on pari passu basis on the entire Current Assets of the Company, both present and future and second charge on pari passu basis on entire fixed assets of the Company including equitable mortgage of factory land & building at Bishnupur (West Bengal), Jajpur (Odisha) and Haldia (West Bengal) both present and future. b) Collateral security and Guarantees as stated against Long Term Borrowings in Note No. 4 (A) (i) b), c) and d). NOTE 8 TRADE PAYABLES Due to Micro, Small & Medium Enterprises [Refer Note below] Due to others 39,180.43 39,180.43 23,469.77 23,469.77 65,446.96 1,930.59 1,030.98 21.37 68,429.90 (` in Lacs) 31-03-2012 49,859.27 9,766.28 1,010.98 106.85 60,743.38
There are no Micro, Small and Medium Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. Trade Payables include ` 4,171.64 Lacs (P.Y. ` 5,102.55 Lacs) against pledge of stock of raw materials. NOTE 9 OTHER CURRENT LIABILITIES Current maturities of long-term debt (Refer Note 4) Interest Accrued and due on Borrowings Income Received in Advance Interest Accrued but not due on Borrowings Advance from Parties Unclaimed Dividend * Share Application Money Refundable* Derivative Contracts Payable Other Payables - For Statutory Dues - For Capital Goods - For Accrued Expenses 5,781.17 653.96 11.32 43.42 4,210.02 10.68 0.10 13.97 1,431.74 2,827.11 8,750.93 23,734.44 5,971.45 251.36 190.42 1,111.52 9.75 0.10 205.99 326.61 1,071.17 7,469.88 16,608.25
* Includes uncashed warrants/ECS rejected. There is no amount due and outstanding to be credited to Investor Education & Protection Fund. Annual Report 2012-13 75
NOTE 10 SHORT-TERM PROVISIONS 31-03-2013 For Taxation For Proposed Dividend For Corporate Tax on Dividend 857.00 857.00 (` in Lacs) 31-03-2012 1,261.33 401.38 65.11 1,727.82
NOTE 11 TANGIBLE ASSETS Land Freehold Leasehold Gross Block As at 31st March, 2011 Additions Disposals Other Adjustments - Borrowing Costs As at 31st March, 2012 Acquisition Additions Disposals Other Adjustments 404.56 676.17 1,080.73 0.77 4,059.42 Building Plant & Furniture Equipment & Fixtures 422.93 11.03 433.96 2.70 436.66 41.29 27.26 68.54 27.57 96.11 365.41 340.55 Vehicles Office Equipments 236.15 119.51 355.66 34.69 30.97 (0.63) 420.69 50.26 30.98 81.24 13.05 46.42 (0.23) 140.48 274.42 280.22 Others Total
7,484.97 24,029.60 5,495.97 18,909.62
324.33 166.23 73.66 416.90 144.51 62.68 13.19 (2.61) 608.28 75.51 35.03 33.46 77.08 46.11 49.17 (0.81) 6.70 164.85 339.82 443.43
0.30 0.30 0.30 0.11 0.01 0.12 0.01 0.14 0.18 0.16
36,962.27 25,378.52 73.66 3,263.92 65,531.05 893.59 212.63 13.19 (16.18) 66,607.90 4,643.32 2,173.22 33.46 6,783.07 129.55 2,978.25 (2.28) 6.70 9,881.89 58,747.97 56,726.01
347.74 2,916.17 4,059.42 13,328.68 45,855.39 365.46 15.36 333.56 67.63 47.89 (6.62) (0.28) (6.04) 4,418.27 13,411.40 46,230.81 774.10 413.36 1,187.45 0.77 439.70 (0.01) 1,627.91 3,702.06 1,666.57 5,368.63 69.62 2,415.38 (1.23) 7,852.40
- Exchange translation adjustments - Borrowing Costs As at 31st March, 2013 1,081.50 Depreciation As at 31st March, 2011 For the year* Deductions As at 31st March, 2012 Acquisition For the year* Exchange translation adjustments Deductions As at 31st March, 2013 Net Block As on 31st March, 2012 1,080.73 As on 31st March, 2013 1,081.50
4,059.42 12,141.23 40,486.76 4,418.27 11,783.49 38,378.41
Note : The original cost of vehicles & equipments includes ` 607.34 Lacs (P.Y. ` 587.38 Lacs) acquired from loans taken from banks & financial institutions, of which ` 253.09 Lacs (P.Y. ` 402.98 Lacs ) were outstanding as at year end. * Includes ` 4.99 Lacs (P.Y. ` 3.77 Lacs) debited to Capital Work-in-Progress and ` 19.78 Lacs (P.Y. ` Nil) debited to Intangible Assets under development.
76
NOTE 12 INTANGIBLE ASSETS 31-03-2013 Goodwill At the beginning of the year Add : On Acquisition Add : Incurred during the year At the end of the year NOTE 13 CAPITAL WORK-IN-PROGRESS At the beginning of the year Add : On Acquisition Add : Incurred during the period Less : Exchange translation adjustments Less : Capitalised during the year At the end of the year 7,977.74 28.23 30,905.53 (0.51) 38,910.99 24,742.80 9,619.57 (26,384.63) 7,977.74 2,962.75 2,962.75 (` in Lacs) 31-03-2012
Capital Work-in-Progress includes Pre-operative Expenses as below relating to project under implementation, pending allocation to Fixed Assets : Opening Balance Add : Expenditure incurred during the year Salaries Rent Rates & Taxes Insurance Electricity Charges Printing & Stationary Telephone Expenses Travelling & Conveyance Repairs & Maintainance Labour Charges Security Service Charges Hiring Charges - Equipment License and Application Fees Legal, Professional & Consultancy Charges General Expenses Bank Charges Interest on Term Loan from Banks Depreciation Total Amount allocated to Fixed Assets Closing Balance 1,889.38 118.76 10.38 0.31 25.90 0.89 0.07 0.70 15.19 2.35 46.12 38.21 30.01 147.48 2.30 135.75 3,781.54 4.99 6,250.33 6,250.33 2,865.85 82.36 2.16 28.39 2.08 0.30 5.65 7.46 11.53 0.50 189.32 6.78 2,458.55 3.77 5,664.69 (3,775.31) 1,889.38
77
NOTE 14 INTANGIBLE ASSETS UNDER DEVELOPMENT 31-03-2013 Intangible Assets under development represents expenses incurred for development of mines under the following heads : On Acquisition Add : Expenditure incurred during the period Salaries & Wages Rent Rates & taxes Insurance Travelling & Conveyance Field Operations License and Permit Fees Environment Analysis General Expenses Depreciation Total Exchange Translation Adjustments Closing Balance NOTE 15 NON-CURRENT INVESTMENTS Number of Number of Shares/Units Shares/Units 31-03-2013 31-03-2012 Trade Investments (at cost) Equity Shares - Unquoted (Fully Paid Up) SKP Power Ventures Ltd. ( F.V. ` 10 /- ) Exchangeable Bonds - Unquoted PT Pacific Samudra Perkasa (F.V. 10,00,000 USD) Total of Non Current Investments (` in Lacs) 31-03-2013 (` in Lacs) 31-03-2012 (` in Lacs) 31-03-2012
3,255.00 28.00 0.66 1.03 1.32 5.54 18.76 38.66 0.13 7.11 19.78 3,375.98 (57.84) 3,318.14
10,000
10,000
1.00
1.00
11
3,263.36 3,264.36
5,627.21 5,628.21
* Investments in PT Pacific Samudra Perkasa (Incorporated under the laws of Republic of Indonesia) represent investments in exchangeable bonds which can be exchanged for shares in the subsidiaries of that Company. These subsidiaries hold mining rights in coal mines in Indonesia. NOTE 16 LONG-TERM LOANS & ADVANCES 31-03-2013 (Unsecured, Considered good) Capital Advances (Refer Note No. 34 (ii)) Security Deposits 12,362.90 1,873.68 14,236.58 (` in Lacs) 31-03-2012 10,296.79 2,926.14 13,222.93
78
NOTE 17 OTHER NON-CURRENT ASSETS 31-03-2013 Unamortised Expenses Deferred Expenses 1,456.71 1,456.71 (` in Lacs) 31-03-2012 1,370.12 1,370.12
NOTE 18 CURRENT INVESTMENTS Number of Units 31-03-2013 Unquoted - Mutual Funds SBI Mutual Fund [NAV ` Nil (P.Y. ` 550.84 Lacs)] Total of Current Investments NOTE 19 INVENTORIES 31-03-2013 (As taken, valued and certified by the management) Raw Materials Intermediates Work-in-Process Finished Goods* Traded Goods Stores & Spares Packing Materials * Includes in transit ` 1,642.83 Lacs (P.Y. ` 1,061.18 Lacs) NOTE 20 TRADE RECEIVABLES (Unsecured, Considered Good) Debts outstanding for a period exceeding six months from the date they are due for payment Other Debts Trade Receivables include ` 123.78 Lacs (P.Y. ` 258.24 Lacs) from Related Parties. 66,917.52 4,869.75 10,153.94 5,135.00 104.67 1,982.46 127.36 89,290.70 Number of Units 31-03-2012 50,00,000 (` in Lacs) 31-03-2013 (` in Lacs) 31-03-2012 500.00 500.00 (` in Lacs) 31-03-2012 48,938.77 951.74 8,329.99 4,923.09 1,644.20 127.18 64,914.97
693.47 38,512.75 39,206.22
810.03 18,865.49 19,675.52
79
NOTE 21 CASH AND BANK BALANCES 31-03-2013 i) Cash & Cash Equivalents (A) Cash in Hand (as certified) (B) Balances with Banks - In Current Accounts Cash & Cash Equivalents ii) Other Bank Balances (A) Term Deposits with Banks * (Includes ` 3,790.04 Lacs (P.Y. ` 3,253.72 Lacs) having maturity greater than 12 months) (B) Earmarked Balances with Banks Other Bank Balances Total * Held as Margin against Bank Guarantee, Letter of Credit and other credit facilities. NOTE 22 SHORT-TERM LOANS & ADVANCES (Unsecured, Considered Good) Advances recoverable in cash or in kind or for value to be received - To Related Parties - To Others Balance with Central Excise and Cenvat Receivable Sales Tax / VAT Receivable / Refundable Income Tax Payments (Including TDS) Income Tax Refundable MAT Credit Entitlement [Refer Note below] Prepaid Expenses Derivative Contracts Receivable Accrued Interest on Deposits Other Deposits 220.50 7,676.02 5,373.22 5,498.23 103.99 22.86 1,896.53 252.41 75.43 501.05 4.40 21,624.64 930.42 17,902.61 3,144.60 3,613.76 67.48 22.86 1,507.53 81.58 238.79 2.11 27,511.74 185.69 197.37 383.06 5,096.22 (` in Lacs) 31-03-2012 81.10 2,409.47 2,490.58 6,442.22
10.79 5,107.01 5,490.07
9.86 6,452.08 8,942.66
The Company has made current tax provision for Minimum Alternate Tax (MAT) u/s 115JB of the Income Tax Act, 1961. As per the provisions of Section 115JAA, MAT Credit receivable for the amount in excess over tax liability as per normal computation has been recognised as an asset. MAT credit is recognised as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India. The said asset is created by way of a credit to the Consolidated Statement of Profit & Loss and shown as MAT Credit Entitlement. NOTE 23 OTHER CURRENT ASSETS 31-03-2013 (Unsecured, Considered Good) Export Incentive Receivable Subsidy/Power Incentive Receivable 4,330.08 4,464.82 8,794.90 31-03-2012 2,110.32 800.94 2,911.25
80
NOTE 24 REVENUE FROM OPERATIONS 31-03-2013 Sale of Products Sale of Manufactured Goods Sale of Raw Materials Sale of Traded Goods Other Operating Revenues - Export Incentives [includes ` 698.14 Lacs (P.Y. Nil) for earlier years] Compensation Details of Sale of Products Sale of Manufactured Goods - Ferro Alloys - Iron and Steel Products Sale of Raw Materials - Manganese Ore - Coal & Coke - Others Sale of Traded Goods - Ferro Alloys - Manganese Ore - Coal & Coke - Iron and Steel Products 1,94,074.90 10,902.35 25,447.82 2,30,425.07 6,666.50 496.22 2,37,587.79 (` in Lacs) 31-03-2012 1,51,190.70 1,598.32 22,107.64 1,74,896.66 3,205.74 1,78,102.40
1,30,938.97 63,135.93 7,783.64 1,794.02 1,324.69 776.59 423.43 210.09 24,037.71 2,30,425.07
1,17,169.59 34,021.11 1,425.11 93.41 79.79 1,971.69 8,186.28 3,136.31 8,813.37 1,74,896.66
NOTE 25 OTHER INCOME Interest Income - On Credit Sales - On Fixed Deposits - Other Deposits - On Loan given Commission Income Premium on Forward Contracts Profit on redemption of Mutual Fund Sundry Balances Written Back Liabilities no longer required written back Prior Period Income [Refer Note (a) Below] Lease Rent Received Insurance Claim Received Miscellaneous Income 121.62 445.47 260.61 25.27 201.08 51.81 34.17 3.60 37.44 0.13 1,181.20 100.31 351.14 185.02 76.23 6.47 11.34 (0.62) 3.60 26.31 1.53 761.33
81
NOTE 25 OTHER INCOME (Contd.) 31-03-2013 a) Prior period items for the year comprise of the following : Commission on Sales Purchases Insurance Power & Fuel Total NOTE 26 COST OF MATERIALS CONSUMED (including cost of Raw Materials sold) Opening Stock of Raw Materials & Intermediates Purchases during the year (including freight) Less : Closing Stock of Raw Materials Cost of Raw Materials consumed Less : Closing Stock of Intermediates Cost of Materials consumed Details of Raw Materials Consumed Chrome Ore Manganese Ore Coal & Coke Sponge Iron, Scrap & Billets Others 49,890.51 1,30,251.20 1,80,141.71 66,917.52 1,13,224.19 4,869.75 1,08,354.44 26,839.94 32,491.68 16,091.03 20,990.40 16,811.14 1,13,224.19 31-03-2013 % Break up into Imported & Indigenous Imported Indigenous 47.32% 52.68% 100.00% (` in Lacs) 53,580.80 59,643.39 1,13,224.19 31,944.67 94,256.24 1,26,200.91 48,938.77 77,262.14 951.74 76,310.40 23,782.92 22,731.02 13,691.15 8,514.20 8,542.85 77,262.14 31-03-2012 % 44.07% 55.93% 100.00% (` in Lacs) 34,046.63 43,215.51 77,262.14 (` in Lacs) 31-03-2013 Ferro Alloys Manganese Ore Coal & Coke Iron and Steel Products 680.26 349.10 275.16 20,864.07 22,168.59 31-03-2012 726.22 6,722.05 2,994.11 8,180.34 18,622.72 150.61 2.00 (118.44) 34.17 (` in Lacs) 31-03-2012 (0.62) (0.62)
NOTE 27 PURCHASES OF STOCK IN TRADE
82
NOTE 28 CHANGES IN INVENTORIES OF FINISHED GOODS & WORK-IN-PROGRESS 31-03-2013 Opening Stock Finished Goods Ferro Alloys Iron & Steel Products Work-in-Progress Ferro Alloys Iron & Steel Products Traded Goods Ferro Alloys Iron & Steel Products Closing Stock Finished Goods Ferro Alloys Iron & Steel Products Work-in-Progress Ferro Alloys Iron & Steel Products Traded Goods Ferro Alloys (` in Lacs) 31-03-2012
3,432.17 1,488.03 7,231.92 1,098.07 2.89 13,253.08
6,781.61 5,697.02 123.00 417.19 13,018.82
3,636.79 1,498.22 8,011.63 2,142.31 104.67 15,393.62 (2,140.56)
3,432.17 1,488.03 7,231.92 1,098.07 2.89 13,253.08 (234.25)
NOTE 29 EMPLOYEE BENEFIT EXPENSE Salaries, Wages, Bonus & Allowances Contribution to Provident & Other Funds Gratuity [Refer Note 38] Directors' Remuneration Welfare Expenses NOTE 30 FINANCE COSTS Interest Expense To Banks - On Fixed Loans - On Others [Refer Note (a) below] To Others Other Borrowing Costs Vehicles and Equipment Finance Charges Applicable Net Gain/Loss on Foreign Currency Transactions and Translations 2,099.77 86.96 21.06 99.36 79.70 2,386.85 1,696.73 80.33 34.79 86.97 78.11 1,976.93
3,117.06 8,843.76 707.48 1,457.57 36.51 501.84 14,664.22
2,657.98 5,664.08 833.45 1,425.05 26.64 258.17 10,865.35
a) Interest to Banks is net of ` 600 lacs receivable as Interest Subsidy recognised on receipt of Eligibility Certificate under the West Bengal Incentive Scheme, 2000. Annual Report 2012-13 83
NOTE 31 OTHER EXPENSES 31-03-2013 Labour Charges Power & Fuel Water Supply Charges Stores, Spares and Consumables [Refer Note (a) below] Packing Materials Material Handling Expenses Excise Duty on Variation in Stock [Refer Note (b) below] Repairs - To Factory Shed & Building - To Plant & Machinery Rent Rates & Taxes Electricity Expenses Insurance Printing and Stationery Postage and Courier Telephone Charges Travelling & Conveyance Car Running and Maintenance Other Repairs and Maintenance Security Service Charges Membership and Subscription Internal Audit Fees Legal and Professional Charges Auditors' Remuneration [Refer Note (c) below] Directors' Sitting Fees Miscellaneous Expenses Processing Fees to WBIDC Ltd. Testing & Inspection Charges Donations Advertisement & Sales Promotion Freight & Forwarding on Export Transportation & Delivery Charges Commission on Sales Discounts & Rebates Excise Duty / Sales Tax for earlier years Corporate Social Responsibility Investment & Advance Written off Loss on Sale of Fixed Assets Loss on Redemption of Mutual Funds Short Recovery & Damages Sundry Balances Written Off Foreign Exchange Fluctuation Loss Irrecoverable Claims Written Off 2,505.87 48,180.75 86.15 7,414.39 509.27 1,535.96 (33.06) 56.07 450.23 104.19 17.42 28.83 177.03 49.06 12.27 59.47 152.58 130.87 110.34 331.80 41.91 8.50 391.01 16.74 1.75 245.96 3.92 172.79 8.14 73.55 4,453.20 3,152.79 233.20 10.93 12.38 2.99 222.51 4.74 1,954.30 50.60 72,941.41 (` in Lacs) 31-03-2012 1,704.14 38,236.30 65.86 4,696.88 481.96 1,395.76 171.73 29.71 358.18 99.20 76.17 23.15 183.61 54.16 12.19 48.95 201.08 128.63 33.49 343.53 32.39 10.58 129.28 11.74 2.05 239.99 11.63 113.04 2.01 132.07 2,752.57 2,156.53 211.18 0.20 13.30 6.00 66.91 15.95 0.16 42.75 1,373.59 55,668.57
84
NOTE 31 OTHER EXPENSES (Contd.) a) Stores, Spares & Consumables 31-03-2013 % ` in Lacs Break up into Imported & Indigenous Imported Indigenous 4.48% 95.52% 100.00% 332.18 7,082.21 7,414.39 31-03-2012 % ` in Lacs 0.55% 99.45% 100.00% 25.67 4,671.21 4,696.88
b) Amount of excise duty on variation in stock represents differential excise duty on opening and closing stock of finished goods. c) Auditors Remuneration (` in Lacs) 31-03-2013 i) As Auditor [includes tax audit fees of ` 2.00 Lacs (P.Y. ` 1.50 Lacs)] ii) For Taxation matters iii) For Other services Total NOTE 32 EARNINGS PER SHARE Weighted average number of Equity Shares outstanding during the year Number of Shares considered as weighted average shares and potential shares outstanding for calculation of Diluted Earnings Per Share Profit after Tax attributable to Equity Shareholders (` in Lacs) Nominal Value of Ordinary Shares (`) Earnings Per Share (Basic) (`) Earnings Per Share (Diluted) (`) 9,15,65,164 9,15,65,164 2,940.51 10 3.21 3.21 5,80,76,669 5,80,76,669 3,958.95 10 6.82 6.82 11.91 0.80 4.03 16.74 31-03-2012 8.46 0.70 2.58 11.74
NOTE 33 The Consolidated Financial Statement includes the financial statements of the Parent Company, its wholly-owned subsidiary, M/s. SKP Overseas Pte. Ltd., incorporated in Singapore and its step down subsidiary, M/s. P.T. Bara Prima Mandiri., incorporated in Indonesia. Subsidiaries are consolidated from the date on which effective control is acquired and are excluded from the date of transfer/disposal. Further the details of the subsidiary in terms of General Circular no. 2/2011 dtd: 8th February, 2011 issued by Government of India, Ministry of Corporate Affairs under Section 212(8) of the Companies Act, 1956, are disclosed in Annexure I to these financial statements. NOTE 34 CONTINGENT LIABILITIES AND COMMITMENTS (i) Contingent Liabilities not provided for in the books of accounts in respect of : (a) Bills discounted, outstanding as on 31st March, 2013 - ` 5,446.15 Lacs (P.Y. - ` 6,097.24 Lacs). (b) Claims against the Company not acknowledged as debt : Disputed Excise Duty under appeal Disputed Sales Tax/ VAT under appeal Disputed Entry Tax under appeal Disputed Income Tax Demands under appeal Excise Duty demand for which show cause notice issued Excise Demand, pending showcause Disputed ESI under Settlement Commission Irregular Claim of Export Incentives, pending show cause from DRI 546.07 836.77 16.03 20.78 20.00 150.00 576.91 533.95 0.70 21.68 4.31 10.25 150.00
(c) The Company has challenged the consitutional validity of Entry Tax levied by the Government of West Bengal w.e.f. 1st April, 2012. In view of the stay granted by the Hon'ble High Court of Calcutta, the Company has not provided amount of ` 177.98 Lacs for the same in the accounts. Annual Report 2012-13 85
NOTE 34 CONTINGENT LIABILITIES AND COMMITMENTS (Contd.) (ii) Estimated amount of contracts remaining to be executed on Capital Account and not provided for (Net of Advances) ` 9,551.28 Lacs (Previous Year ` 15,155.45 Lacs). (iii) Estimated amount of export obligations to be fulfilled in respect of goods imported under Duty Free Import Authorisation Scheme - ` Nil (Previous Year ` 988.22 Lacs) and under Export Promotion Capital Goods Scheme (EPCG) - ` 1,849.09 Lacs (Previous Year ` 4,885.35 Lacs). NOTE 35 In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts. Adequate provisions have been made for all known losses and liabilities. NOTE 36 Certain balances of Sundry Creditors, Sundry Debtors, Unsecured Loans and Advances are subject to confirmation. NOTE 37 RESEARCH AND DEVELOPMENT EXPENSES Research and Development expenses aggregating to ` 30.19 Lacs ( P.Y. ` 17.84 Lacs) in the nature of revenue expenditure have been included under the appropriate account heads. NOTE 38 EMPLOYEE BENEFITS Disclosure pursuant to Accounting Standard- 15 (Revised) " Employee Benefits" : Contribution to Defined Contribution Plan, recognised as expense for the year is as under : 31-03-2013 Employers Contribution to Provident and Other Funds 86.96
(` in Lacs) 31-03-2012 80.33
The employees gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method as on 31st March, 2013 which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Gratuity (Funded) 31-03-2013 (i) Reconciliation of Opening and Closing Balances of the present value of Defined Benefit Obligation : Defined Benefit obligation at beginning of the year Interest Cost Current Service Cost Actuarial (Gain)/Loss Benefits paid Defined Benefit obligation at the year end (ii) Reconciliation of Opening and Closing Balances of fair value of plan assets : Fair value of plan assets at beginning of the year Expected return on plan assets Actuarial Gain/(Loss) Employers contribution Benefits paid Fair value of plan assets at the year end Actual return on plan assets 86 Rohit Ferro-Tech Limited Gratuity (Funded) 31-03-2012
58.00 4.64 17.54 (0.20) 79.99
27.80 2.22 10.16 17.82 58.00
79.38 7.27 21.06 107.70 7.27
40.73 3.86 34.79 79.38 3.86
NOTE 38 EMPLOYEE BENEFITS (Contd.) Gratuity (Funded) 31-03-2013 (iii) Reconciliation of fair value of assets and obligation : Fair value of plan assets Present value of obligation Amount recognised as liability/ (asset) in Balance Sheet* (*Excess of assets not recognised as the same is lying in an irrevocable trust fund) (iv) Expenses recognised during the year in the Consolidated Statement of Profit & Loss : (shown in Note - 29 under the head 'Gratuity') Current Service Cost Interest Cost Expected return on plan assets Actuarial (Gain)/Loss Net asset (surplus) not recognised as above Recognised in the Consolidated Statement of Profit and Loss (v) Break-up of Plan Assets as a percentage of total plan assets : Insurer Managed Funds (vi) Actuarial Assumptions : Mortality Table Discount rate (per annum) Rate of escalation in salary (per annum) (vii) Other Disclosures 31-03-2013 Defined Benefit Obligation Plan Assets Surplus/(Deficit) Experience Adjustment on Plan Liabilities 79.99 107.70 27.72 (0.20) 31-03-2012 58.00 79.38 21.37 17.82 31-03-2011 27.80 40.73 12.93 (4.39) 31-03-2010 23.46 30.34 6.88 (1.98) 107.70 79.99 (` in Lacs) Gratuity (Funded) 31-03-2012 79.38 58.00
17.54 4.64 (7.27) (0.20) 6.34 21.06 100% LIC 1994-96 Ultimate 8% 4%
10.16 2.22 (3.86) 17.82 8.45 34.79 100%
8% 4% (` in Lacs)
31-03-2009 17.43 21.16 3.73 (0.24)
(viii) (a) The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. (b) The discounting rate is considered based on market yield on government bonds having currency and terms consistent with the currency in terms of the post employment benefit obligations. (c) Expected rate of return assumed by the insurance Company is generally based on their investment pattern as stipulated by the Government of India. (ix) The above information is certified by the actuary. (x) The Company expects to contribute ` 23.13 Lacs to the Gratuity Fund managed by the Life Insurance Corporation of India during the Financial Year 2013 - 2014.
NOTE 39 SEGMENT REPORTING (i) Business Segments : Based on the synergies and in terms of Accounting Standard - 17, the Company is mainly engaged in the business segment of manufacture & sale of Ferro Alloys and Iron & Steel Products. The risks and returns of Captive Power Plant is directly associated with the manufacturing operations of Ferro Alloys and hence treated as a part of Ferro Alloys segment. Annual Report 2012-13 87
NOTE 39 SEGMENT REPORTING (Contd.) 31-03-2013 Segment Revenue (Net) Ferro Alloys and Minerals Iron and Steel Inter Segment Revenue Total Segment Results (Profit before Finance Cost & Tax) Ferro Alloys and Minerals Iron and Steel Unallocated Total Less : Finance Cost Less : Exceptional Items Profit before tax Less : Tax Expense Profit after tax Share of profit/(loss) transferred to Minority Interest Profit after tax Other Information Assets Liabilities Capital Expenditure 35,440.37 864.31 59.21 11,013.06 35,499.58 11,877.37 Depreciation Non-cash Exps (other than Depreciation) 2,450.38 1,751.66 503.10 417.79 2,953.48 2,169.45 66.91 66.91 14,165.79 7,411.62 55.54 21,632.95 14,664.22 2,660.91 4,307.82 1,391.20 2,916.62 (23.90) 2,940.52 12,407.79 4,395.11 14.92 16,817.82 10,865.35 5,952.46 1,993.51 3,958.95 3,958.95 1,60,355.11 80,805.20 (14,044.36) 2,27,115.95 (` in Lacs) 31-03-2012 1,42,691.91 39,626.44 (11,748.05) 1,70,570.30
Ferro Alloys and Minerals Iron and Steel Unallocated Total (31-03-2013) Total (31-03-2012)
223,570.75 163,838.62 54,966.87 38,458.29 6,744.45 9,106.22 2,85,282.07 2,11,403.13
45,614.92 24,104.29 15,199.84 9,976.97 6,398.14 6,347.23 67,212.90 40,428.49
# figures in italics represent data for Previous Year.
88
NOTE 39 SEGMENT REPORTING (Contd.) (ii) Geographical Segments : The Company's secondary geographical segments have been identified based on the location of customers and are disclosed based on revenues within India and revenues outside India. Secondary segment assets are based on the location of such asset. (` in Lacs) Segment Period Segment Revenue (Gross) 1,37,318.67 1,02,666.39 1,00,269.12 75,436.01 2,37,587.79 1,78,102.40 Segment Assets 2,65,125.16 1,93,513.09 20,156.91 17,890.03 2,85,282.07 2,11,403.12 Capital Expenditure 31,117.51 11,877.37 4,382.07 35,499.58 11,877.37
Within India Outside India Total
Year ended Year ended Year ended Year ended Year ended Year ended
31-03-2013 31-03-2012 31-03-2013 31-03-2012 31-03-2013 31-03-2012
NOTE 40 RELATED PARTY DISCLOSURE i) Name of the related parties where control exists irrespective of whether transactions have occurred or not (a) Entities / Individuals owning directly or indirectly an interest in the voting power that gives them control None ii) Names of the other related parties with whom transactions have taken place during the year (a) Key Managerial Personnel (KMP) Mr. Suresh Kumar Patni Mr. Rohit Patni Mr. Ankit Patni (upto 24.08.2012) Mr. Binit Jain Mr. Pramod Kumar Jain Mrs. Sarita Patni Mr. Ankit Patni (from 25.08.2012) Arin Minerals Pvt. Ltd. Impex Metal & Ferro Alloys Ltd. Impex Ferro Tech Ltd. Ankit Metal & Power Ltd. Nucore Exports Pvt. Ltd. Arthodock Vinimay Pvt. Ltd. Whitestone Suppliers Pvt. Ltd. Vasupujya Enterprises Pvt. Ltd. Marble Arch Properties Pvt. Ltd. SKP Power Ventures Ltd. VNG Mercantiles Pvt. Ltd. Invesco Finance Pvt. Ltd. Poddar Mech Tech Services Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. Hira Concast Ltd. Impex Steel Ltd. Shreyansh Leafin Pvt. Ltd. Mahabali Ispat Pvt. Ltd. SKP Stock Broking Pvt. Ltd. Sarita Steel & Power Ltd. Shubham Complex Pvt. Ltd. Impex Metal (Singapore) Pte. Ltd. Annual Report 2012-13 89
(b) Relatives of KMP (c) Enterprises owned or significantly influenced by KMP or their relatives
NOTE 40 RELATED PARTY DISCLOSURE (Contd.) 31-03-2013 135.97 135.97 135.97 13.60 50.00 2.50 73.53 0.19 (` in Lacs) 31-03-2012 290.23 290.23 100.00 200.00 1,340.00 709.00 iii. Nature of Transactions Advances Received Impex Ferro Tech Ltd. Impex Metal & Ferro Alloys Ltd. Ankit Metal & Power Ltd. Impex Metal (Singapore) Pte Ltd. Advance Refunded Ankit Metal & Power Ltd. Impex Metal & Ferro Alloys Ltd. Advances Given Sarita Steel & Power Ltd. SKP Stock Broking Pvt. Ltd. Advance Refunded by the party Suanvi Trading & Investment Co. Pvt. Ltd. Loans Taken* Invesco Finance Pvt. Ltd. Nucore Exports Pvt. Ltd. Poddar Mech Tech Services Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. (*Excludes subsequent transfers to Share Application Money) Loans Repaid Invesco Finance Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. Share Application money received & Shares alloted* Ankit Patni Rohit Patni Sarita Patni Suresh Kumar Patni Arthodock Vinimay Pvt. Ltd. Invesco Finance Pvt. Ltd. Nucore Exports Pvt. Ltd. Poddar Mech Tech Services Pvt. Ltd. Vasupujya Enterprises Pvt. Ltd. VNG Mercantiles Pvt. Ltd. Shreyansh Leafin Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. Whitestone Suppliers Pvt. Ltd. (*Includes conversion of loans) Interest Received on Sales Impex Steel Ltd. 1.82 210.00 210.00 270.00 390.00 2,400.00 1,800.00 660.00 1,500.00 1,800.00 306.00 1,800.00 1,800.00 1,800.00 750.00 1,477.49 156.96 285.00 4,795.89 4,744.66 100.19 40.00
90
NOTE 40 RELATED PARTY DISCLOSURE (Contd.) 31-03-2013 2,094.06 1.41 3,769.24 6,979.87 575.48 1,487.49 876.61 6,015.11 3,096.75 474.50 5.23 39.58 111.18 14.25 3.60 6.00 50.00 10.00 9.50 29.86 0.33 (` in Lacs) 31-03-2012 55.04 2.93 5,770.63 3,097.10 7,574.99 4.29 8.22 441.15 2,808.09 25.00 1,892.20 2,673.43 325.08 78.08 23.15 127.23 3.60 0.05 6.00 36.00 24.00 6.00 20.97 0.40 iii. Nature of Transactions Interest Paid on Purchases Ankit Metal & Power Ltd. Impex Metal & Ferro Alloys Ltd. Purchases Ankit Metal & Power Ltd. Arin Minerals Pvt. Ltd. Impex Ferro Tech Ltd. Impex Metal & Ferro Alloys Ltd. Impex Steel Ltd. Mahabali Ispat Pvt. Ltd. Purchases of Capital Goods Ankit Metal & Power Ltd. Sales of Goods Ankit Metal & Power Ltd. Hira Concast Ltd. Impex Ferro Tech Ltd. Impex Metal & Ferro Alloys Ltd. Impex Steel Ltd. DEPB Licence Purchased Ankit Metal & Power Ltd. Impex Ferro Tech Ltd. Impex Metal & Ferro Alloys Ltd. DEPB Licence Sold Impex Ferro Tech Ltd. Impex Metal & Ferro Alloys Ltd. Lease Rent Received Impex Metal & Ferro Alloys Ltd. Commission Paid Impex Ferro Tech Ltd. Rent Paid Marble Arch Properties Pvt. Ltd. Managerial Remuneration Rohit Patni Ankit Patni Binit Jain Pramod Kumar Jain Sitting Fees Suresh Kumar Patni
91
NOTE 40 RELATED PARTY DISCLOSURE (Contd.) (` in Lacs) 31-03-2013 15.09 8.17 1.46 13.62 39.34 70.81 168.00 50.00 2.50 135.97 135.97 135.97 13.60 1.00 31-03-2012 566.50 45.22 262.49 1.46 258.24 200.00 1,340.00 100.00 669.00 0.65 688.25 168.00 73.53 313.25 3.84 6.69 1.00 (iv) Outstanding Balances Nature of Transactions Sundry Creditors Ankit Metal & Power Ltd. Impex Ferro Tech Ltd. Impex Metal & Ferro Alloys Ltd Marble Arch Properties Pvt. Ltd. Sundry Debtors Ankit Metal & Power Ltd. Impex Steel Ltd. Impex Ferro Tech Ltd. Hira Concast Ltd. Loan Taken Nucore Exports Pvt. Ltd. Poddar Mech Tech Services Pvt. Ltd. Invesco Finance Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. Advances / Deposits Given Ankit Metal & Power Ltd. Impex Metal & Ferro Alloys Ltd. Marble Arch Properties Pvt. Ltd. Suanvi Trading & Investment Co. Pvt. Ltd. Sarita Steel & Power Ltd. SKP Stock Broking Pvt. Ltd. Advances Received Impex Metal & Ferro Alloys Ltd. Impex Ferro Tech Ltd. Ankit Metal & Power Ltd. Impex Metal (Singapore) Pte. Ltd. Investment in Equity Shares SKP Power Ventures Ltd. Term Loans and Working Capital Loans from banks are secured by way of Corporate Guarantee of the Related Parties Vasupujya Enterprises Pvt. Ltd., Shubham Complex Pvt. Ltd., Poddar Mech Tech Services Pvt. Ltd., Invesco Finance Pvt. Ltd. and Suanvi Trading and Investment Co. Pvt. Ltd. and Personal Guarantee of the Directors/Promoters - Mr. S.K.Patni, Mr. Rohit Patni and Mr. Ankit Patni.
92
NOTE 41 AMOUNTS RECEIVABLE / PAYABLE IN FOREIGN CURRENCY Forward contracts/ hedging instruments outstanding as at the Balance Sheet date are as follows : Nature (Nos.) of Contract Forward Contracts (1, P.Y. 1) Forward Contracts (12, P.Y. 10) Foreign Currency EURO USD Buy/ Sell Sell Sell Amount in Foreign Currency (in Lacs) 13.24 (P.Y.- 20) 158.78 (P.Y.- 156.20) Purpose Hedging Purpose Hedging Purpose
Particulars of unhedged foreign currency exposure as at 31st March, 2013 are as follows : Currency a) b) c) d) Amount payable in foreign currency (in Lacs) Amount payable in foreign currency (in Lacs) Amount payable in foreign currency (in Lacs) Amount receivable in foreign currency (in Lacs) EURO USD SGD SGD USD 31-03-2013 0.92 2,326.85 0.10 0.09 0.10 31-03-2012 516.28 0.05
e) Amount receivable in foreign currency (in Lacs)
NOTE 42 Exceptional Item represents provision for additional power charges for the period upto 31st March, 2012 on retrospective revision of power tariff, net of waiver of Electricity Duty and Power Incentive recognised, on receipt during the current year of Eligibilty Certificate, under the West Bengal Incentive Scheme, 2000 and other approvals. Since the exceptional item relates to the previous periods, the management treated the same as a rare circumstance and, to reflect the true and fair representation of the performance of the Company for the year, considered it appropriate that the profits after tax be presented before the exceptional item, and then give effect to the exceptional item instead of making disclosure as per the current format in Part-II of Schedule VI (Revised) to the Companies Act, 1956. The Current tax figure is net of ` 863.33 Lacs, being the tax effect on the Exceptional item. NOTE 43 Effective 1st April 2012, the Company has adopted the principles of Hedge Accounting as set out in Accounting Standard (AS) 30 on Financial Instruments: Recognition and Measurement, in respect of foreign exchange forward contracts which have been taken against forecasted transactions and which are not covered by the requirements of Accounting Standard (AS) 11- The Effects of changes in Foreign Exchange Rates. Accordingly, net loss of ` 110.48 lacs arising on fair valuation of outstanding derivatives as on 31st March, 2013 that are designated as effective cash flow hedges has been adjusted against Hedging Reserve. NOTE 44 Previous year's figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary to conform to this year's classification. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to amounts and other disclosures relating to the current year. As per our report of even date attached For S. Jaykishan Chartered Accountants FRN : 309005E CA B. K. Newatia Partner Membership No : 050251 Kolkata, 7th August, 2013 S. K. Patni Chairman For and on behalf of the Board
93
Annexure - I The details of Subsidiary in terms of General Circular No. 2/2011 dated 8th February, 2011 issued by Government of India, Ministry of Corporate Affairs under Section 212 (8) of the Companies Act, 1956, is as under : Table - A (` in Lacs) Particulars 1. Reporting Currency 2. Share Capital 3. Reserves and Surplus 4. Total Assets 5. Total Liabilities 6. Details of Investments Bonds Subsidiary 7. Turnover and Other Income 8. Profit before Taxation 9. Provision for Taxation 10. Profit after Taxation 11. Proposed Dividend Note : Table - A a. Items Nos. 2 - 6 are translated at exchange rate as on 31st March, 2013, 1 USD = ` 54.3893 and 1 INR = 178.96 IDR. b. Items Nos. 7 - 11 are translated at annual average rate of 1 USD = ` 54.53 and at an average rate of 1 INR = 179.53 IDR. SKP Overseas Pte. Ltd. USD 8,224.65 (712.07) 13,951.06 6,438.48 3,263.36 3,208.97 1,551.25 74.84 74.84 PT Bara Prima Mandiri IDR 838.18 (457.71) 4,657.58 4,277.12 0.01 (59.75) (59.75)
94
Registered Office : 35, Chittaranjan Avenue, 4th Floor, Kolkata - 700 012 Corporate Office : SKP House, 132A, S. P. Mukherjee Road, Kolkata - 700 026 FORM OF PROXY I/We ......................................................................................................................................................................................................................................................................................... of ...................................................................................................................................................................................................... being a Member(s) of the above named Company, hereby appoint ..................................................... of......................................................................................................... or failing him ........................................................................................ of as my/our proxy to vote for me/us on my/our behalf at the 13th Annual General Meeting of the Company to be held at "Rotary Sadan", 94/2, Chowringhee Road, Kolkata - 700 020 on Saturday, the 28th September, 2013 at 10.00 A.M. and at any adjournment thereof. Signed this .................................................. day of ................................................ 2013 Affix Signature ....................................... ................................................................................................................................................................ Revenue Stamp Folio No ............................ DP ID No ............................ Client ID No ................................ Note : This Form of Proxy must be deposited at the Corporate Office of the Company, SKP House, 132A, S.P.Mukherjee Road, Kolkata - 700 026, not less than 48 hours before the time of holding the meeting.
Rohit Ferro- Tech Limited
Registered Office : 35, Chittaranjan Avenue, 4th Floor, Kolkata - 700 012 Corporate Office : SKP House, 132A, S. P. Mukherjee Road, Kolkata - 700 026 ATTENDANCE SLIP (To be handed over at the entrance of the Meeting Hall) I/We hereby record my/our presence at the 13th Annual General Meeting of the above named Company held at "Rotary Sadan", 94/2, Chowringhee Road, Kolkata - 700 020 on Saturday, the 28th September, 2013 at 10.00 A.M. Full Name of Member/Proxy attending the meeting .................................................................................... Full Name of First Holder (if Joint Holder/Proxy attending) ............................................................ Folio No ............................ DP ID No ............................ Client ID No ............................
.......................
Rohit Ferro- Tech Limited
Signature of the Member/Proxy

(To be signed at the time of handing over this slip)
Members who come to attend the meeting are requested to bring their copies of the Annual Report with them. Annual Report 2012-13 95
Corporate Information
Board of Directors Mr. Suresh Kumar Patni Mr. Rohit Patni Mr. Binit Jain (Resigned w.e.f. 1st April, 2013) Mr. Dinesh Biyanee (Appointed w.e.f. 1st April, 2013) Mr. Jatindra Nath Rudra Mr. Jayanta Kumar Chatterjee Mr. Asoke Kumar Basu Mr. Kailash Chand Jain (Resigned w.e.f. 9th October, 2012) Mr. Jay Shanker Shukla (Appointed w.e.f. 9th October, 2012) Company Secretary Mr. Pradip Kumar Agarwal Auditors M/s. S. Jaykishan Chartered Accountants 12, Ho-Chi Minh Sarani Kolkata - 700 071 Bankers State Bank of India State Bank of Travancore State Bank of Hyderabad United Bank of India UCO Bank Allahabad Bank Canara Bank Bank of Baroda Punjab National Bank Central Bank of India Exim Bank Andhra Bank Registered office 35, Chittaranjan Avenue, Kolkata - 700 012 Phone : +91 33 2211 0225/0226, 4064 0021/0022 Non-Executive Chairman Managing Director Executive Director Executive Director (Works) Independent/Non-Executive Director Independent/Non-Executive Director Independent/Non-Executive Director Independent/Non-Executive Director Independent/Non-Executive Director
Corporate office SKP House, 132A, S. P. Mukherjee Road, Kolkata - 700 026 Phone : +91 33 4016 8000/8100 Fax : +91 33 4016 8189 E-mail : grievance@rohitferrotech.com Website : www.rohitferrotech.com Plant Information Bishnupur WBIIDC Road, P.S.: Bishnupur P.O. : Dwarika - 722 122 Dist: Bankura, West Bengal Jajpur Kalinganagar Industrial Complex P.O. : Duburi - 755 026, Dist : Jajpur, Odisha Haldia Jaynagar, PS: Durgachak P.O.: Buniaraichak, Dist: Purba Medinipur, West Bengal
DISCLAIMER In this annual report we have disclosed forward-looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements - written and oral - that we periodically make contain forward-looking statements that set out anticipated results based on the managements plans and assumptions. We have tried wherever possible to identify such statements by using words such as anticipates, estimates, expects, projects, intends, plans, believes and words of similar substance in connection with any discussion of future performance. We cannot guarantee that these forward-looking statements will be realised, although we believe we have been prudent in our assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialise, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

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Contents

Kolkata, 29th August, 2013

Pradip Kumar Agarwal Company Secretary

Annual Report 2012-13

Rohit Ferro-Tech Limited

Annual Report 2012-13

Rohit Ferro-Tech Limited

Mr. Asoke Kumar Basu

Mr. Jay Shanker Shukla

9th October, 2012

Mr. Dinesh Biyanee

1st April, 2013

Directorships : Nil Committee Memberships : Nil

Annual Report 2012-13

Rohit Ferro-Tech Limited

Mr. Rohit Patni

Engineering (BE) and MBA

Kolkata, 29th August, 2013

Suresh Kumar Patni Chairman

Annual Report 2012-13

Annexure to the Directors Report

Rohit Ferro-Tech Limited

Annexure to the Directors Report

Annexure to the Directors Report

Kolkata, 29th August, 2013

Suresh Kumar Patni Chairman

Rohit Ferro-Tech Limited

Management Discussion & Analysis Report

Annual Report 2012-13

Management Discussion & Analysis Report

Management Discussion & Analysis Report

Annual Report 2012-13

Corporate Governance Report

Yes Yes Yes Yes N.A. Yes N.A. No N.A.

Rohit Ferro-Tech Limited

Corporate Governance Report

Kolkata, 29th August, 2013

Corporate Governance Report

Corporate Governance Report

Annual Report 2012-13

Corporate Governance Report

Corporate Governance Report

15th September, 2011

27th September, 2010

Corporate Governance Report

3. Dividend payment date : 4. Financial Calendar

Corporate Governance Report

The National Stock Exchange of India Ltd. (NSE)

Annual Report 2012-13

Corporate Governance Report

19000 18500 18000 17500 17000

25.00 20.00 15.00 10.00

10. Distribution of Shareholding as on 31st March, 2013

Rohit Ferro-Tech Limited

Corporate Governance Report

Annual Report 2012-13

Corporate Governance Report

Kolkata, 29th August, 2013