Annual Report for 2011-2012 - Vizag Steel

30 th Annual Report 2011-12
volume with this annual report of the company.
The Company's Joint Ventures:
The Company is one of the PSU's as a joint venture
partner in ICVL which was incorporated for acquiring
Overseas Coal assets.
The Company has also formed a Joint Venture with
MOIL (another PSU) with 50:50 shares for the purpose
of setting up of a Ferro Alloys Unit at Bobbili in Andhra
Pradesh.
Implementation of Revised Schedule VI
Ministry of Corporate Affairs vide their Notification No.
S.O. 447 (E) dt. 28 th Feb. 2011 and as amended by
Notification No. F.NO 2/6/2008- CL-V, dt. 30 th March,
2011 has replaced the existing Schedule VI with a
new Schedule VI, effective for the financial statements
to be prepared for the financial years commencing or
on after 1 st April, 2011. Accordingly, the Annual
Accounts for the Financial Year 2011-12 were
prepared and presented as per the new Schedule VI.
The Change between Old Schedule VI is basically a
change in the presentation and disclosure
requirements. However, the application of Accounting
Standards and adopted Accounting Policies remain the
same.
Auditors:
B V Rao & Co, Visakhapatnam has been appointed as
the Statutory Auditors of the Company for the year
2011-12 by the Comptroller and Auditor General of
India.
Auditors' Report :
The Statutory Auditors' Report on the Accounts of the
Company for the financial year ended 31 st March,
2011 is enclosed to the Directors' Report at
Annexure-VI.
C & A G Comments:
The Comptroller and Auditor General of India (C&AG)
vide its letter No. PDCA/ACDesk/AA-RINL/2011-12/
1.01/190 Dt. 6 th July, 2012 has given ‘NIL’ comments
on the accounts of the Company for the year 2011-
12 under Section 619(4) of Company’s Act 1956. A
copy of the above letter of C&AG is enclosed at
Annexure-VII.
Consolidated Financial Statements:
As the Company is a fully owned Government of India
undertaking and is an unlisted Company, the
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requirements in this regard as stipulated under the
guidelines of SEBI for consolidation of accounts are
not applicable.
However, a statement pursuant to section 212 of the
Companies Act 1956, relating to Subsidiary Company
i.e. EIL is placed at Annexure -VIII
Cost Audit:
Ministry of Corporate Affairs, Govt. of India vide Order
No.52/124/CAB-2005 dt. 07-07-2006 notified RINL,
for conduct of Audit of cost records as maintained
under Cost Accounting Records (Electricity Industry)
Rules, 2001 for the financial year ending 31 th March
2006 and thereafter every year. Further, Ministry of
Corporate Affairs, Govt. of India, vide their order no
52/26/CAB-2010 dt. 30 th June, 2011 prescribed Cost
Audit for Iron & Steel industries w.e.f. 1 st April, 2012.
As prescribed, the Cost Accounting Records are being
maintained by the Company and Cost Audit reports
are being submitted by the Cost Auditor.
Report on Conservation of Energy,
Technology Absorption, etc.
Information required under Section 217(1)(e) of the
Companies Act, 1956 read with the Companies
(Disclosures of Particulars in the Report of Board of
Directors) Rules, 1988 regarding Energy Conservation,
Technology Absorption and Foreign Exchange earnings
and outgo during the Financial year 2011-12 are
furnished in the Annexure-A to the report and also in
Form-A and Form-B annexed to this report.
Foreign Exchange Earnings and Outgo:
The Foreign Exchange Earnings during the year
2011-12 is ` 544.51 Crore and the Foreign Exchange
Outgo during the year was ` 5,569.86 Crore (Includes
`193.40 Crore on Expansion activities)
Particulars of Employees:
There was no employee of the Company who received
remuneration in excess of the limits prescribed under
Section 217(2A) of the Companies Act 1956 read with
the Companies (Particulars of employees) Rules, 1975,
as amended from time to time.
Directors' Responsibility Statement:
Statements / Data which do not relate to RINL
and are used / made in this report are from sources
which are considered reliable and Company cannot
be held for its authenticity. Further, statement
describing the Company's projections, estimates,