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Notes to Accounts of Gujarat NRE Coke Ltd.

Mar 31, 2016

1. (A). For all Secured Term Loans & Non Convertible Debentures excluding “B”.

i) Primary Security:

a) Pari- passu 1st charge over the entire fixed assets (both present & future) of the company’s coke units at Khambhalia and Bhachau in the state of Gujarat, Dharwad in the state of Karnataka, Waste Heat Recovery Power Plant (along with land) at Dharwad in the state of Karnataka, Steel unit at Bhachau in the state of Gujarat and Windmill units at various locations in the state of Gujarat.

b) Pari passu 2nd charge over the entire fixed assets (both present & future) of Bajrangbali Coke Industries Ltd. (since merged with the Company) at Bhachau in the state of Gujarat.

ii) Collateral Security:

a) Pari-passu 2nd charge over the entire current assets (both present & future) of the company’s coke units at Khambhalia and Bhachau in the state of Gujarat and Dharwad in the state of Karnataka and Steel unit at Bhachau in the state of Gujarat.

b) Along with Working Capital facilities

- First Pari-passu charge on Residential Property at 1, Clyde Row, Hastings, Kolkata in the name of Mr. Arun Kumar Jagatramka

- First Pari-passu charge on Residential-cum-office Property at NRE House, Saru Road, Jamnagar, Gujarat in the name of Mr. Arun Kumar Jagatramka

- Pledge of 78,478,035 Equity shares and 12,357,468 Class "B" Equity Shares of GNCL held by the promoters/ promoter Group Company .

- Personal Guarantees of Promoter Directors viz. Mr. Arun Kumar Jagatramka and Mrs. Mona Jagatramka.

- Corporate Guarantee (to the extent of the value of shares pledged) of promoter group companies namely Bharat NRE Coke Limited (since merger of Gujarat NRE Mineral Resources Ltd.) and Mangal Crystal Coke Pvt. Ltd.

- Corporate Guarantee of Bharat NRE Coke Ltd.

c) The Rupee Term Loan II of Rs. 54 Crores from ICICI Bank Ltd. further secured by Corporate guarantee of Gujarat NRE Pty Ltd.

(B) Term Loan from The Laxmi Vilas Bank Ltd. amounting to Rs. 48.50 Crores Primary Security:

Pari- passu 1st charge over the entire fixed assets (both present & future) of Bajrangbali Coke Industries Ltd. (since merged with the Company) at Bhachau in the state of Gujarat.

Collateral Security:

a) Pari- passu 2nd Charge over the entire fixed assets (both present & future) of the company’s coke units at Khambhalia and Bhachau in the state of Gujarat, Dharwad in the state of Karnataka, Waste Heat Recovery Power Plant (along with land) at Dharwad in the state of Karnataka, Steel unit at Bhachau in the state of Gujarat and Windmill units at various locations in the state of Gujarat.

b) Refer Note No.4(A)(II)(b)

iv General Descriptions of defined benefit plans:

a) Gratuity Plan:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service. The same is payable on Termination of service, or retirement, whichever is earlier. The benefit vests after five years of continuous service.

b) Provident Fund Plan:

The Company contributes 12% of salary for all eligible employees towards Provident Fund managed by the Regional Provident Fund Authority.

In the above statement, paid up Equity & Earning Per Share include both Equity Shares & B Equity Shares since both class of shares are pari-passu in all respect except for voting rights.

2. Debt Restructuring:

During the year 2013-14, the Company was referred to the Corporate Debt Restructuring (CDR) Cell. Pursuant to that a Corporate Debt Restructuring (CDR) Package was approved by the CDR Empowered Group (CDR EG) at its meeting held on 14th March 2014 and communicated vide Letter of Approval dated 22nd March 2014 as amended/modified vide letter dated 7th April 2014.

Sanctions under the CDR package have been received from all the lenders. The Master Restructuring agreement and Supplemental Master Restructuring agreement has been executed by the lenders. Debt owing to all the CDR lenders has been reclassified and interest has been recalculated in accordance with the cDr package. The above reclassifications and interest calculations are subject to reconciliation and approval by the lenders.

As per the terms of the CDR Scheme, the company has allotted 46,78,69,140 Equity Shares of Rs.10 each at a price of Rs.11.03 per share, aggregating to Rs. 516.06 crores (including a premium of Rs. 1.03 per equity share aggregating to Rs. 48.19 crores) on Preferential Basis towards conversion of FITL and WCTL to Corporate Debt Restructuring (CDR) Lenders except for State Bank of Patiala, State Bank of Travancore, IDBI Bank, Bank of Baroda, LICi and Corporation Bank.

Further as per terms of the CDR Scheme the CDR lenders have disbursed an amount of Rs 184.36 crores towards viability gap funding (VGF) during the year.

The aggregate maximum present value of the outstanding sacrifice made/to be made by CDR lenders as per the approved CDR package for the CDR tenure of 10 years is estimated at Rs. 342.39 Crores.

3. During 2007, the company and Armada (Singapore) Pte Ltd (“Armada”) entered into a five year charter party agreement for chartering of vessels. During 2009 Armada entered into Judicial Management, a Singaporean insolvency regime. Hence, the Company did not make further nominations as there was no security for Armada''s performance for the balance period under the Agreement.

During 2010, Armada commenced an arbitration proceeding against the Company in London for the non-performance during 2009 and 2010. The Tribunal passed an order in favour of Armada assessing the liability of the Company for US$ 7.80 million (Rs. 51.74 cr) plus interest w.e.f. 5th April, 2012.

Aggrieved by the aforesaid order, the company has filed a civil suit against Armada with the Hon''ble High Court at Calcutta claiming for damages for an amount of Rs 144 crores and cancellation of the aforesaid order and restraining Armada from giving any effect to the order. An interim order was passed by the Hon''ble High Court at Calcutta restraining Armada to take any further steps to enforce the order passed by the Tribunal in India.

During 2012, Armada filed its claim for the year 2011 before the same Arbitral Tribunal in London which passed a further order assessing the liability of the Company for US$ 4.67 million (Rs. 30.98 cr) plus interest w.e.f 30th November, 2012. A petition was filed in High Court at Calcutta against the said order of the Arbitral Tribunal for its cancellation. Affidavit in oppositions was filed by both the parties and the matter is presently sub judice before the Hon''ble High Court at Calcutta.

Further during 2012, the Company sought Armada''s performance under the agreement for the year 2012. Armada''s failure to perform was taken as repudiation of the agreement and the same terminated by the Company. Inspite of this, Armada filed another claim in March 2013 for the year 2012 before a newly constituted Arbitral Tribunal. The company had filed a counter claim and opposed the claim of Armada. The Tribunal issued orders dated 23.1.14, 26.6.14 and 21.7.14 in favour of Armada for US$ 1.15 million (Rs. 7.63 cr) plus interest. A petition has been filed in High Court at Calcutta against the said orders. Affidavit in opposition has been filed by Armada. The matter is presently sub judice before the Hon''ble High Court at Calcutta.

The arbitration tribunal in London was not constituted in accordance with the arbitration agreement and as such the company has challenged enforcement of such arbitral orders in India and the management is fully confident of successfully resisting enforcement of such orders in India. Based on the Tribunal''s orders Armada has obtained through the Federal Court of Australia, New South Wales a freezing order of the assets held by GNCL in Australia and the Court has appointed receivers on the shares held by the company in Wollongong Coal Limited (formerly Gujarat NRE Coking Coal Ltd.) (WLC) and Gujarat NRE Pty Limited (GNL).

Armada has filed three separate execution petitions before the Hon''ble High Court at Calcutta with respect to orders of the Arbitral Tribunal dated 5.4.12, 30.11.12, 23.1.14, 26.6.14 and 21.7.14 concealing material facts and details of the aforesaid legal proceedings in Australia. The company is strongly contesting the same and is confident of a favourable outcome.

Such orders or proceedings however do not affect any other assets of the Company and its operations in India in any manner. The matter is presently sub-judice.

In September 2011, the Company and Coeclerici Asia (Pte) Ltd. (“Coeclerici”) entered into an agreement for sale of met coke by 31st March 2012 against advance payment of USD 10 million (Rs. 66.33 cr) by Coeclerici, at a price to be mutually agreed. Sluggish market conditions, and no mutual agreement on price, lead to no cargo being supplied by 31st March, 2012 and the entire advance of USD 10 million (Rs. 66.33 cr) was required to be refunded to Coeclerici. The liability has been booked by the company as advance from customer. On or about August 2012, Coeclerici initiated arbitration proceedings in London. The Tribunal passed its order on 14th February, 2013 against the Company for an amount of US$ 8.5 million (Rs. 56.39 cr) and interest. The Company has repaid US$ 3.2 million (Rs. 21.23 cr) during the period June'' 2012 to Sept''2013.

Thereafter Coeclerici had approached the Australian Court to enforce the Tribunal order and the Court has appointed a receiver to the shares held by the company in Wollongong Coal Limited (formerly Gujarat NRE Coking Coal Ltd.) (WLC) and Gujarat NRE Pty Ltd (GNL) and the shares held by Mr. Arun Kumar Jagatramka in WLC. The receivers took control over the 86,092,966 shares held by the company in WLC and have been selling them on Australian Stock Exchange. As on 30th June 2015 38,213,413 shares out of 86,092,966 shares of WLC have been sold by the receivers and an amount of AU$ 883,150 (Rs. 4.49 cr)have been realized by the receivers.

The company has filed a Petition against Coeclerici before the Hon''ble High Court at Calcutta on 3rd March, 2015 under section 34 of The Arbitration and Conciliation Act, 1996 to set aside the order dated 14th February, 2013 passed by the Learned Arbitral Tribunal. The award was passed ignoring the compliance with Reserve Bank guidelines and as such being against public policy in India. The matter is subjudice before the Hon''ble High Court at Calcutta and the management is confident of a favourable outcome.

Further, on or around June 2015 Coeclerici had filed a winding-up petition against the company for an amount of US$ 8.56 million (Rs. 56.78 cr). The company is strongly contesting the same and accordingly, have filed a suit against Coeclerici before the Hon''ble High Court at Calcutta on 16th October 2015 claiming a set off against the claim of Coeclerici in their winding-up petition and a cross claim for an amount of US$ 2.43 million (Rs 16.12 cr). The matter is sub judice before the Hon''ble High Court at Calcutta and the management is confident of a favourable outcome.

The Company had entered into a Time Charter Agreement on January 29, 2008 with Gregarious Estates Incorporated (“Gregarious” or “Owners”), for hire of a vessel for a period of 82 to 86 months. As Gregarious failed to provide the Company with a notice for a change in its management of Gregarious, and also did not provide the calculations for ascertaining super profits, the Company, contended that the said Agreement was illegal, null and void. Accordingly the Company did not take delivery of the vessel.

Gregarious on 18th February, 2013 initiated arbitration proceedings in London against the Company for a claim of US$ 38.94 million (Rs. 258.29 cr) and obtained an order on 30th June 2014 for US$ 36.34 million (Rs. 241.05 cr) plus interest.

The Company has filed an application under section 34 of the Arbitration and Conciliation Act, 1996 before the Hon''ble High Court at Calcutta to set aside the order of the Tribunal. The matter is presently sub judice before the Hon''ble High Court at Calcutta. The management is fully confident of successfully resisting enforcement of this award in India.

During November 2014, Wollongong Coal Ltd (WLC) and Wongawilli Coal Pty Ltd. (WCPL) have filed a Summon and a Commercial List Statement before the Supreme Court of New South Wales, Australia against the Company alleging non-payment by defendant against supply of coking coal by WLC and WCPL under coal purchase agreements and claimed an amount of US$ 54.26 million (Rs. 359.92 cr) from the Company. The Company has filed a Notice of Appearance and Commercial List Response on 23rd March, 2015 claiming set off of the aforesaid claim against (i) Unwashed coal adjustment payable by WLC / WCPL for an amount of US$ 37.26 million (Rs. 247.16 cr) and (ii) Unpaid freight payable by WLC / WCPL for an amount of US$ 9.02 million (Rs. 59.83 cr). Further the company has also claimed a set-off for unpaid corporate guarantee commission for an amount of US$ 42.32 million (Rs. 280.72 cr) and AU$ 16.26 million (Rs. 82.60 cr) filed against WLC and WCPL in its Statement of Claim SC 2014 / 339422 joined to these proceedings.

The matter is pending before the Supreme Court of New South Wales, Australia. The management is confident of the outcome of the case in favour of the company and is expected to recover some amount from them and does not expect any liability on the Company.

On 27th August, 2013 Jindal Steel Power Ltd (JSPL) had entered into a coal purchase agreement with the Company & Gujarat NRE Mineral Resource Ltd. (GNMRL) now known as Bharat NRE Coke Ltd. (since merged) (which was amended further on 12th September, 2013) for sale and supply of 65000 MT of washed NRE Australian hard coking coal to JSPL between 1st September, 2013 and 31st March, 2014 after washing the unwashed coking coal at the washeries of the Company. As per the terms of the purchase agreement, JSPL had made an advance payment of Rs. 39 crores to the Company. The advance secured by pledge of 1 crore shares of Bharat NRE Coke Ltd. each held by the Company and GNMRL.

Subsequent to the agreement, the management control of WLC & WCPL, which was originally with the Company, was taken over by the Jindal group and consequently, no shipment of coal was made available to the Company and hence no supply could be made under the agreement by the Company to JSPL.The dispute was referred to arbitration and the matter is presently pending.

The company and Siemens Limited (''Siemens'') had entered into a contracts in 2008 for design, engineering, manufacture, supply and delivery at site of plant and equipment by Siemens of various structure, equipments, parts etc of electrical package and Steel Structures, Commissioning and Insurance spares of Turbine and Auxiliaries package for installation of 15MW power plants each for Phase 1 and Phase 2 at Dharwad and 15 MW power plant at Bhachau adjacent to the existing coke plants of the Company. Some disputes arose between the parties and Siemens had instituted against the company a winding-up proceeding before the Hon''ble High Court at Calcutta and an arbitration proceeding before an arbitral tribunal. The matters are presently pending and the management does not envisage any material impact on its operation / performance out of these proceedings.

On 11th January 2016 National Pension System (NPS) Trust has filed a winding-up petition against the company before the Hon''ble High Court at Calcutta claiming Rs. 16.72 crores plus interest for non-payment of principal and interest amount of matured debentures of the company purchased by NPS from secondary market. The matter is presently pending before the said Hon''ble Court.

Since 2007, the company had entered into long term charter party agreements with various ship owners for multiple vessels for import of coal and export of its coke cargoes across the world. However, owing to sluggish conditions in the commodities market in last few years, the shipping industry faced the similar fate and could not revive thereafter. This has led to defaults and breach in performance under those charter party agreements. However, the company is in regular contact with its counterparties to manage and mitigate the risks in the best possible manner.

4. Scheme of Compromise and Arrangement:

On 5th October 2015, the Board of Directors of the Company had approved a Scheme of Compromise and Arrangement between the Company and its Creditors as mentioned in the Scheme, under the provisions of Sec 391 to 394 of the Companies Act, 1956, with 31st December, 2015 being the appointed date of the Scheme. On receipt of the approvals from the National Stock Exchange of India Ltd (NSE) and BSE Ltd (BSE), the aforesaid Scheme was filed with the Hon''ble High Court at Calcutta and the said Hon''ble Court vide its order dated 17th Feb 2016 had directed to convene a meeting of the creditors. Upon receipt of some observations from the creditors, the company has filed a modified scheme before the said Hon''ble Court which is currently pending for further directions

5. a The indicators of impairment listed in paragraph 8 to 10 of Accounting Standard (AS)- 28 “Impairment of assets” issued by ICAI have been examined by the management and on such examination, it has been found that none of the indicators are present in the case of the Company’s assets . A formal estimate of the recoverable amount has not been made, as there is no indication of a potential impairment loss.

b In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and advances in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

6. The Company has allotted 3,31,85,000 Equity Shares of Rs.10 each, at par, to ICICI Bank Ltd pursuant to request received from ICICI Bank Ltd, Offshore Banking Unit, regarding allotment of equity shares of the Company equivalent to USD 5 million against liability towards corporate guarantee provided by the Company for loans taken by the Australian company Gujarat NRE Pty Ltd. and the same has been duly provided during the year.

7. The company held 8,60,92,966 shares as investment in Wollongong Coal Limited (“WLC”). These shares were transferred to the account of the receivers appointed by the Federal Court of Australia vide order dated 7th August 2013 in the matter of Coeclerici Asia Pte Limited (“Coeclerici”). The trading in the shares of WLC stands suspended since 31st May 2015. As such the company has claimed from Coeclerici the value of these shares as at the date of transfer of such shares to the receiver.”

8. There are no amounts due and outstanding to be credited to Investors Education and Protection Fund as at 31st March 2016.

9. Remittance in Foreign Currency on account of Dividend:

The Company has paid dividend in respect of shares held by Non-resident on repatriation basis. This inter-alia includes portfolio investment and direct investment, where the amount is also credited to Non-Resident External Account (NRE A/c). The exact amount of dividend remitted in foreign currency cannot be ascertained. The total amount remitted in this respect is given herein below:

10. The scheme under section 391 to 394 of the Companies Act 1956 for amalgamation of NRE Metcoke Limited and Bajrang Bali Coke Industries Limited with the Company has been approved by the Hon’ble Calcutta High Court on 21st January'' 2016 and the financial results for the year ended 31st March 2016 include financials of both these companies. Accordingly, the previous year figures may not be comparable.

11. Previous year''s figure have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.


Mar 31, 2014

1.1 Contingent liabilities not provided for in respect of: (Rs. in Crores) As on As on 31st March 31st March 2014 2013

i Letter of Credits outstanding for purchase of materials. - 1.16

ii Outstanding Bank Guarantees and Counter / Corporate Guarantees 2,893.29 2,667.05 given on behalf of various companies.

iii Capital commitments 58.08 59.17

iv Bills discounted under letter of credit with banks 13.36 41.89

v Duty on account of Advance Authorisation against Export obligation. 4.87 4.87

vi On Balance Sheet date, the disputed amount involved in four income-tax 9.02 6.77 demands( Previous Year four) under appeal (The management is of view that the outcome of the appeal would be favourable to the company, hence no provision has been made against these income-tax demands. )

vii A demand raised by the Service tax department, against which company 3.39 0.06 has filed an appeal to the jurisdiction authorities.

viii A demand raised by the Custom department, against which company has 12.50 1.11 filed an appeal to the jurisdiction authorities.

1.2 Greenearth Resources & Projects Limited (formerly known as Austral Coke & Projects Limited) had filed a defamation suit in Hon''ble Bombay High Court against the Company for Rs.600 Crores. The Company had also filed Civil Suit in Hon''ble Calcutta High Court against Austral Coke & Projects Limited, all its Directors, its merchant bankers and Auditors and others claiming for loss of damages worth Rs.4761 crores. Management is confident that outcome of the defamation suit filed by the Austral Coke & Projects Limited would be in favour of the company.

1.3 In the year 2007, the company and Armada Singapore Pte Ltd ("Armada") entered into five year charter party agreement which provided, inter alia, for Armada to provide vessels to ship the company''s tonnage, namely coal from various destinations worldwide. During the year 2009 Armada entered into Judicial Management, a Singaporean insolvency regime. As a result of Armada''s insolvency, the Company did not make further nominations since there was no assurance or security for Armada''s performance for the balance period under the agreement.

In the year 2010 Armada filed its claim submission in an arbitration proceeding against the company in London for the year 2009 and 2010 and after all the repetitive challenges by the company w.r.t the defect in constitution of the Tribunal, the Tribunal passed an award in favour of Armada assessing the liability of the company as equivalent to Rs. 46 Crores (including interest of Rs. 3.7 Crores). Aggrieved by the aforesaid order the company has filed a civil suit against Armada with the Hon''ble High Court at Calcutta claiming for damages for an amount of Rs 144 Crores and cancellation of the aforesaid award being void and restraining Armada from giving any effect to the award passed by the Tribunal. An order was passed by the Hon''ble High Court at Calcutta restraining Armada to take any further steps to enforce the award passed by the Tribunal in India. The matter is presently sub judice before the Hon''ble High Court at Calcutta.

Meanwhile Armada executed an enforcement proceeding before the Federal Court of Australia, New South Wales which passed a freezing order of the assets held by the company in Australia. The company had challenged such enforcement proceedings before the same court and the final judgment is reserved by the court and is pending till date.

Armada later on filed its claim submission against the company for the non-performance of contract for the year 2011 before the same arbitral tribunal in London which passed a further award in favour of Armada assessing the liability of the company as equivalent to Rs.25.4 Crores (including interest of Rs. 1.2 Crores). An appeal was filed by the company against said order before High Court of Justice, Queen''s Bench Division, Commercial Court in England which is pending before the said court. Thereafter, a petition was filed in High Court at Calcutta against the said award of the arbitral tribunal for its cancellation. Affidavit in oppositions were filed by both the parties and the matter is presently sub judice before the Hon''ble High Court at Calcutta.

During the year 2012, the company sought performance under the agreement from Armada, who failed to perform as per the terms of the agreement, which event was taken as repudiation of the agreement and the agreement was terminated. On the contrary, Armada filed another claim in March 2013 for non-performance for the year 2012 for an amount equivalent to Rs. 27 Crores and interest thereupon. The company has filed a counter claim for an amount equivalent to Rs 60 Crores and strongly opposed the claim of Armada before a newly constituted Arbitral Tribunal.

The Arbitration hearing was held in London in the month of December 2013 and the order was published in January 2014 wherein the argument of Armada in regard to five vessels out of six vessels nominated by Armada in 2012 was turned down by the Tribunal. As per the order the precise quantum of the claim in regard to one vessel which Armada succeeded will be determined jointly by the expert of both parties. The determination of such quantum is pending.

1.4 In September 2011 the company and Coeclerici Asia (Pte) Ltd ("Coeclerici") entered into an agreement of sale and purchase of met coke as per which the company had to supply the cargo to Ceoclerici at a mutually agreed price by 31st March 2012. As per the terms of the agreement Coeclerici made an advance of USD 10 million to the company in Sept 2011. Owing to the sluggish market conditions, the parties could not arrive at a mutually agreed price, as such no cargo was supplied by 31.03.2012 and the entire advance of USD 10 million was required to be refunded by the company to Coeclerici. The company has already refunded USD 3.2 million till Sept''13 to Coeclerici.

The company does not dispute the repayment of the balance amount to Coeclerici and have been trying to make the balance payment. However, to secure its payment position, Coeclerici proceeded with the arbitration in London by filing its claim against the company. After all the arbitration proceedings, the Tribunal finally passed its order against the company for an amount equivalent to Rs. 46.2 Crores and interest thereupon.

Thereafter an application was filed by Coeclerici in Australia to enforce the English Award and the Australian Court made orders recognizing and enforcing the Award, including the appointment of receiver to the shares held by the company in Gujarat NRE Coking Coal Ltd. (GNCCL) and Gujarat NRE Ltd (GNL) and the shares held by Mr. Arun Kumar Jagatramka in GNCCL. The company thereafter filed an appeal against such order. However, the appeal was ultimately dismissed. Presently, receivers have control over the shares held by the company in GNCCL and GNL and Mr. Arun Kumar Jagatramka in GNCCL for the purpose of sale to recover the judgment debt.

1.5 The company had filed proceedings before the High Court, Calcutta against Gregarious Estates Incorporated ("Gregarious" or "Owners"), Gabriel Petridis (President / Director of Gregarious), Tapas Kumar Mukhopadhay (Director of Gregarious), Arun Dua (Director of Gregarious) and Bhatia International Pte. Limited in relation to the Time Charter Agreement dated January 29, 2008 entered into between GNCL and Gregarious whereby Gregarious agreed to give on hire and GNCL agreed to hire a vessel for a period of 82 to 86 months.

In view of the fact that there was a change in management of Gregarious without the consent of the company, it was contended that as per the terms of the agreement the company has the right to terminate the said Agreement. Further the Agreement never came into effect as per the terms of the agreement Gregarious had failed to provide the calculations for ascertaining super profits (as described therein) to the company. The company had filed a suit in Calcutta High Court for a decree of Rs. 56.25 Crores and prayed for declaration that the arbitration agreement between the company and Gregarious be rendered illegal, null and void.

During pendency of above proceedings, Gregarious initiated arbitration proceedings against the company and served a claim submission for an amount equivalent to Rs 212 Crores and interest thereupon.

The matter was never heard on merits at all and only the matter of jurisdiction of English Courts/ Arbitral Tribunal in London was decided by the Indian Courts. The matter after being discharged by the Indian Court was referred to Arbitration Tribunal. The Arbitration hearing was held in London in the month of January 2014 and the order is presently reserved by the Tribunal. The management is confident of the outcome of case in favour of the company.

1.6 On 8.1.14 Wollongong Coal Ltd. ("WCL") (Formerly Gujarat NRE Coking Coal Ltd.) issued a demand notice to the company and its other group companies claiming over AUD 63 million being amount claimed due to WCL by the company.

On 14.2.14 the company issued a counter demand for payment of USD 23.71 million being amount due by WCL and its subsidiary Wongawilli Coal Pty Ltd. (WCPL) to the company as on 31.1.14 on account of corporate guarantee commission for the corporate guarantees given by our company to the lender of WCL for the loans / facilities taken by WCL and on account quality claims. The said demand was refuted by WCL vide its letter dated 21.2.14. The management is taking necessary proactive steps in the matter and is confident of a favourable outcome.

ii Exchange difference Gain/ (Loss) of Rs. Nil (Previous Year Rs. (1.34) Crores) in respect of unexpired period of forward cover contracts will be recognised in the Statement of Profit & Loss in subsequent year.

2 Related Party Disclosures as required by Accounting Standard (AS-18) issued by the Institute of Chartered Accountants of India (ICAI), are given below:

A. Particulars of the Related Parties:

Subsidiary Companies

Wholly Owned i Gujarat NRE Limited (Ceases to be subsidiary of the Company during the year)

ii Huntervalley Coal (P) Ltd.

iii Manor Dealcom (P) Ltd.

Sub-Subsidiary Companies (All Sub-Subsidiaries ceases to be Sub-subsidiaries of the Company during the year)

i Gujarat NRE Coking Coal Ltd.

ii Gujarat NRE Wonga Pty. Ltd.

iii Wonga Coal Pty. Ltd.

iv Gujarat NRE Resources NL

v Gujarat NRE Coal (NSW) Pty. Ltd.

vi South Bulli Holdings Pty. Ltd.

vii Gujarat NRE Properties Pty. Ltd.

viii Gujarat NRE India Pty. Ltd.

Associates

i Bharat NRE Coke Ltd. (Ceases to be Associate of the Company during the year)

ii NRE Metcoke Ltd.

iii Surajbari Traders Pvt. Ltd.

iv Dharwad Traders Pvt. Ltd.

v Mandvi Traders Pvt. Ltd.

vi Lunva Traders Pvt. Ltd.

vii Critical Mass Multilink Ltd

viii Gujarat NRE Limited (Part of the year)

Enterprises in which key management personnel have significant Influence i Bajrangbali Coke Industries Ltd.

ii Bhachau Traders Pvt. Ltd.

iii Bharat NRE Coke Ltd.(Part of the Year)

iv Gujarat NRE Mineral Resources Ltd.

v Khambhalia Traders Pvt. Ltd.

vi Mahanidhi Vyapaar Pvt. Ltd.

vii Mangal Crystal Coke Pvt. Ltd. viii Russel Vale Traders Pvt. Ltd. ix Wonga Traders Pvt. Ltd.

Enterprise in which key management personnel is a trustee i Girdharilal Arun Kumar Family Trust

B. Key Management Personnel & Relatives thereof

i Mr. A. K. Jagatramka – Chairman & Managing Director

ii Mrs. Mona Jagatramka – Director

ii Mr. P. R. Kannan – Chief Financial Officer

* None of the directors of the company are interested in such banks.

3 The Shareholders of Gujarat NRE Coke Ltd.(GNCL) & Bharat NRE Coke Ltd.(BNCL) at their respective Shareholders meeting held on 28.01.13 approved and adopted the scheme of amalgamation of BNCL with GNCL. However in view of subsequent development of reference of GNCL TO CDR EG for its debt restructuring the said merger was not allowed by Hon''ble High Court of Calcutta.

4 a The indicators of impairment listed in paragraph 8 to 10 of Accounting Standard (AS)- 28 "Impairment of assets" issued by ICAI have been examined by the management and on such examination, it has been found that none of the indicators are present in the case of the Company''s assets . A formal estimate of the recoverable amount has not been made, as there is no indication of a potential impairment loss. b In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets,

Loans and advances in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

5 Exceptional items for the year ended 31st March''2014 represents net foreign exchange loss of Rs.73.32 Crores , including Rs. 25.85 Crores included in Finance Cost,(Previous Year 60.11 Crores including Rs. 12.15 Crores included in Finance Cost) has been incurred due to unusual diminution in the value of Rupee as against the US Dollar during the year.

6 There are no amounts due and outstanding to be credited to Investors Education and Protection Fund as at 31st March 2014

7 Remittance in Foreign Currency on account of Dividend:

The Company has paid dividend in respect of shares held by Non-resident on repatriation basis. This inter-alia includes portfolio investment and direct investment, where the amount is also credited to Non-Resident External Account (NRE A/c). The exact amount of dividend remitted in foreign currency cannot be ascertained. The total amount remitted in this respect is given herein below:

Notes:

The Ministry of Corporate Affairs vide its circular no.2/2011 dated 8th February 2011 has granted a general exemption under section 212(8) of the Companies Act 1956, from attaching the Balance Sheet, Profit & Loss Account and other documents of the subsidiary companies to the balance sheet of any company upon compliance of certain conditions, the Balance Sheet, Profit & Loss Account and other documents of the subsidiaries are not attached to the Annual Reports & Accounts. The Annual Accounts of the Subsidiaries Companies are available for inspection by any investor at the Registered Office of the Company & the concerned subsidiary of the Company.


Mar 31, 2013

1.1 Greenearth Resources & Projects Limited (formerly known as Austral Coke & Projects Limited) had filed a defamation suit in Hon''ble Bombay High Court against the Company for Rs.600 Crores. The Company had also filed Civil Suit in Hon''ble Calcutta High Court against Austral Coke & Projects Limited, all its Directors, its merchant bankers and Auditors and others claiming for loss of damages worth Rs.4761 crores. Management is confident that outcome of the defamation suit filed by the Austral Coke & Projects Limited would be in favour of the company.

1.2 In the year 2007, the company and Armada Singapore Pte Ltd ("Armada") entered into five year charter party agreement which provided, inter alia, for Armada to provide vessels to ship the company''s tonnage, namely coal from various destinations worldwide. During the year 2009 Armada entered into Judicial Management, a Singaporean insolvency regime. As a result of Armada''s insolvency, the Company did not make further nominations since there was no assurance or security for Armada''s performance for the balance period under the agreement.

In the year 2010 Armada filed its claim submission in an arbitration proceeding against the company in London for the year 2009 and 2010 and after all the repetitive challenges by the company w.r.t the defect in constitution of the Tribunal, the Tribunal passed an order in favour of Armada assessing the liability of the company as equivalent to Rs. 46 cr (including interest of Rs. 3.7 cr). Aggrieved by the aforesaid order the company has filed a civil suit against Armada with the Hon''ble High Court at Calcutta claiming for damages for an amount of Rs 144 crores and cancellation of the aforesaid order being void and restraining Armada from giving any effect to the order passed by the Tribunal. An order was passed by the Hon''ble High Court at Calcutta restraining Armada to take any further steps to enforce the award passed by the Tribunal in India. The matter is presently sub judice before the Hon''ble High Court at Calcutta.

Meanwhile Armada executed an enforcement proceeding before the Federal Court of Australia, New South Wales which passed a freezing order of the assets held by the company in Australia. The company had challenged such enforcement proceedings before the same court and the final judgment is reserved by the court and is pending till date. Armada later on filed its claim submission against the company for the non-performance of contract for the year 2011 before the same arbitral tribunal in London which passed a further order in favour of Armada assessing the liability of the company as equivalent to Rs.25.4 cr (including interest of Rs. 1.2 cr). An appeal was filed by the company against said order before High Court of Justice, Queen''s Bench Division, Commercial Court in England which is pending before the said court.

During the year 2012, the company sought performance under the agreement from Armada, who failed to perform as per the terms of the agreement, which event was taken as repudiation of the agreement and the agreement was terminated. On the contrary, Armada filed another claim in March 2013 for non-performance for the year 2012 for an amount equivalent to Rs. 27 cr and interest thereupon.

The company has filed a counter claim for an amount equivalent to Rs 60 cr and strongly opposed the claim of Armada before a newly constituted Arbitral Tribunal. The matter is presently subjudice before the said Arbitral Tribunal and the management is confident of the outcome of case in favour of the company.

1.3 In September 2011 the company and Coeclerici Asia (Pte) Ltd ("Coeclerici") entered into an agreement of sale and purchase of met coke as per which the company had to supply the cargo to Ceoclerici at a mutually agreed price by 31st March 2012. As per the terms of the agreement Coeclerici made an advance of USD 10 million to the company in Sept 2011. Owing to the sluggish market conditions, the parties could not arrive at a mutually agreed price, as such no cargo was supplied by 31.03.2012 and the entire advance of USD 10 million was required to be refunded by the company to Coeclerici.The company has already refunded USD 2 million till Sept''12 to Coeclerici and for the balance refund of USD 8 million, the company is awaiting the approval from Reserve Bank of India ("RBI").

The company does not dispute the repayment of the balance amount to Coeclerici but has been unable to make any further payment until RBI approval. However, to secure its payment position, Coeclerici proceeded with the arbitration in London by filing its claim against the company. After all the arbitration proceedings, the Tribunal finally passed its order against the company for an amount equivalent to Rs. 46.2 cr and interest thereupon. The Amount of advance received is already accounted for under Advance received from Customers.

1.4 The company had filed proceedings before the High Court, Calcutta against Gregarious Estates Incorporated ("Gregarious" or "Owners"), Gabriel Petridis (President / Director of Gregarious), Tapas Kumar Mukhopadhay (Director of Gregarious), Arun Dua (Director of Gregarious) and Bhatia International Pte. Limited in relation to the Time Charter Agreement dated January 29, 2008 entered into between GNCL and Gregarious whereby Gregarious agreed to give on hire and GNCL agreed to hire a vessel for a period of 82 to 86 months.

In view of the fact that there was a change in management of Gregarious without the consent of the company, it was contended that as per the terms of the agreement the company has the right to terminate the said Agreement. Further the Agreement never came into effect as per the terms of the agreement Gregarious had failed to provide the calculations for ascertaining super profits (as described therein) to the company. The company had filed a suit in Calcutta High Court for a decree of Rs. 56.25 cr and prayed for declaration that the arbitration agreement between the company and Gregarious be rendered illegal, null and void.

During pendency of above proceedings, Gregarious initiated arbitration proceedings against the company and served a claim submission for an amount equivalent to Rs 212 cr and interest thereupon.

The matter was never heard on merits at all and only the matter of jurisdiction of English Courts/ Arbitral Tribunal in London was decided by the Indian Courts.

The matter is now pending before the Arbitral Tribunal in London to be heard on merits and the management is confident of the outcome of case in favour of the company.

2 [32] Related Party Disclosures as required by Accounting Standard (AS-18) issued by the Institute of Chartered Accountants of India (ICAI), are given below:

A. Particulars of the Related Parties:

Subsidiary Companies Wholly Owned

i Gujarat NRE Limited

ii Hunter Valley Coal (P) Ltd.

iii Manor Dealcom (P) Ltd.

Sub-Subsidiary Companies

i Gujarat NRE Coking Coal Ltd.

ii Gujarat NRE Wonga Pty. Ltd. (formerly Gujarat NRE FCGL Pty. Ltd.)

iii Wonga Coal Pty. Ltd.

iv Gujarat NRE Resources NL

v Gujarat NRE Coal (NSW) Pty. Ltd.

vi South Bulli Holdings Pty. Ltd.

vii Gujarat NRE Properties Pty. Ltd.

viii Gujarat NRE India Pty. Ltd.

Associates

i Bharat NRE Coke Ltd.

ii NRE Metcoke Ltd.

iii Surajbari Traders Pvt. Ltd.

iv Dharwad Traders Pvt. Ltd.

v Mandvi Traders Pvt. Ltd.

vi Lunva Traders Pvt. Ltd.

Enterprises in which key management personnel have significant Influence

i Gujarat NRE Mineral Resources Ltd.

ii Gujarat NRE Energy Resources Ltd.

iii Russell Vale Traders Pvt. Ltd.

iv Bulli Coke Ltd.

v Bajrang Bali Coke Industries Ltd.

vi Mangal Crystal Coke Pvt. Ltd.

Enterprise in which key management person is a trustee

i Girdharilal Arun Kumar Family Trust

B. Key Management Personnel

i Mr. A. K. Jagatramka – Chairman & Managing Director

ii Mr. P. R. Kannan – Chief Financial Officer

4 [34] A Scheme of arrangements under section 391 to 394 of the Companies Act''1956 for amalgamation of Bharat NRE Coke Ltd., an associate of the Company, has been approved by the shareholders of the company on 28.01.2013 and the matter is pending for disposal by the Hon''ble Calcutta High Court. This Financial Statement does not carry the effect of the said amalgamation.

5 [36] Exceptional items for the year ended 31st March''2013 represents net foreign exchange loss of Rs. 60.11 Crores ,including Rs.12.15 Crores included in Finance Cost, (Previous Year Rs. 74.40 Crores including Rs.14.24 Crores included in Finance Cost) has been incurred due to unusual diminution in the value of Rupees as against US Dollar during the year.

6 [39] Previous year''s figure have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

1. Contingent liabilities not provided for in respect of:

(Rs. in Crores)

As on As on 31st March 2012 31st March 2011

i Letter of Credits outstanding for purchase of materials. 18.67 50.92

ii Outstanding Bank Guarantees and Counter / Corporate Guarantees 2,458.56 1,550.55 given on behalf of subsidiary companies.

iii Capital commitments 58.73 137.17

iv Bills discounted under letter of credit with banks 85.04 32.41

v Duty on account of Advance Authorisation against Export obligation. 0.73 1.03

vi On Balance Sheet date, the disputed amount involved in four income-tax 8.29 4.42 demands( Previous Year - three) under appeal. The management is of view that the outcome of the appeal would be favourable to the company, hence no provision has been made against these income-tax demands.

vii A demand raised by the Service tax department, against which company 0.06 0.06 has filed an appeal to the jurisdiction authorities.

viii A demand raised by the Custom department, against which company has 2.55 – filed an appeal to the jurisdiction authorities.

2. Green earth Resources & Projects Limited (formerly known as Austral Coke & Projects Limited) had filed a defamation suit in Hon'ble Bombay High Court against the Company for Rs.600 Crores. The Company had also filed Civil Suit in Hon'ble Calcutta High Court against Austral Coke & Projects Limited, all its Directors, its merchant bankers and Auditors and others claiming for loss of damages worth Rs.4761 crores. Management is confident that outcome of the defamation suit filed by the Austral Coke & Projects Limited would be in favour of the company.

3. On 16 October 2007, the company and Armada Singapore Pte Ltd ("Armada") entered into five year charter party agreement which provided, inter alia, for Armada to supply vessels to ship the company's tonnage, namely coal or coking coal from various destinations worldwide. Between late 2008 and early 2009, following the worldwide economic crisis, Armada experienced serious financial losses resulting into a large number of third party defaults under its shipping agreements. As a result, during the course of 2009 Armada entered into Judicial Management, a Singaporean insolvency regime. As a result of Armada's insolvency, the Company refused to make further nominations since there was no assurance or security for Armada's performance for the balance period under the agreement.

Armada later on filed its claim submission in an arbitration proceeding against the company before Arbitration Tribunal in London. Although there was no specific clause on jurisdiction or applicable law in the agreement and also the constitution of Arbitration Tribunal was not in accordance with the agreement and even after the company's repetitive challenges to aforesaid, the Tribunal passed an order in favour of Armada assessing the liability of the company towards Armada as Rs.42.85 Crores (including interest of Rs.3.42 Crores).

Aggrieved by the aforesaid order the company has filed a civil suit against Armada with the Hon'ble High Court at Calcutta claiming for damages for an amount of Rs 144 crores and cancellation of the aforesaid order being void and restraining Armada from giving any effect to the order passed by the Tribunal. Subsequently, an order was passed by the Hon'ble High Court at Calcutta restraining Armada to take any further steps to enforce the award passed by the Tribunal in India. The matter is presently sub judice before the Hon'ble High Court at Calcutta.

4 Related Party Disclosures as required by Accounting Standard (AS-18) issued by the Institute of Chartered Accountants of India (ICAI), are given below:

A. Particulars of the Related Parties:

Subsidiary Companies

Wholly Owned

i Gujarat NRE Limited

ii Huntervalley Coal (P) Ltd.

iii Manor Dealcom (P) Ltd.

Sub-Subsidiary Companies

i Gujarat NRE Coking Coal Ltd.

ii Gujarat NRE Wonga Pty. Ltd. (formerly known as Gujarat NRE FCGL Pty. Ltd.)

iii Wonga Coal Pty. Ltd.

iv Gujarat NRE Resources NL

v Gujarat NRE Coal (NSW) Pty. Ltd.

vi South Bulli Holdings Pty. Ltd.

vii Gujarat NRE Properties Pty. Ltd.

viii Gujarat NRE India Pty. Ltd.

Associates

i Bharat NRE Coke Ltd.

ii NRE Metcoke Ltd.

iii Bajrang Bali Coke Industries Ltd.

iv Surajbari Traders Pvt. Ltd.

v Dharwad Traders Pvt. Ltd.

vi Mandvi Traders Pvt. Ltd. vii Lunva Traders Pvt. Ltd.

Enterprises in which key management personnel have significant Influence

i Gujarat NRE Mineral Resources Ltd.

ii Gujarat NRE Energy Resources Ltd.

iii Russell Vale Traders Pvt. Ltd. iv Bulli Coke Ltd.

Enterprise in which key management person is a trustee

i Girdharilal Arun Kumar Family Trust

5. a The indicators of impairment listed in paragraph 8 to 10 of Accounting Standard (AS)- 28 "Impairment of assets" issued by ICAI have been examined by the management and on such examination, it has been found that none of the indicators are present in the case of the Company's assets . A formal estimate of the recoverable amount has not been made, as there is no indication of a potential impairment loss.

b In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business will not be less than the amount at which they are stated in the Balance Sheet.

6. Exceptional items for the year ended 31st March, 2012 represents net foreign exchange loss of Rs. 60.13 Crores due to unusual diminution in the value of Rupee as against the US Dollar during the year.

7. There are no amounts due and outstanding to be credited to Investors Education and Protection Fund as at 31st March 2012

8. Remittance in Foreign Currency on account of Dividend:

The Company has paid dividend in respect of shares held by Non-resident on repatriation basis. This inter-alia includes portfolio investment and direct investment, where the amount is also credited to Non-Resident External Account (NRE A/c). The exact amount of dividend remitted in foreign currency cannot be ascertained. The total amount remitted in this respect is given herein below:


Mar 31, 2011

1. All amounts in the financial statements are presented in Rupees Crores, unless otherwise stated. The note numbers appeared in the "[ ]" are as they appear in the complete set of Financial Statements. These abridged financial statements have been prepared in accordance with the requirements of Rule 7A of the Companies (Central Government's) General Rules & Forms, 1956 and clause 32 of the Listing Agreement. These abridged financial statements have been prepared on the basis of the complete set of financial statements for the year ended March 31, 2011.

2. [B2]Contingent liabilities not provided for in respect of:

a. Letter of Credits outstanding for purchase of materials aggregating to Rs. 50.92 crores (Previous Year- Rs. 162.75 crores).

b. Outstanding Bank Guarantees and Counter / Corporate Guarantees given on behalf of subsidiary/associates companies aggregating to Rs. 1550.55 crores (Previous Year - Rs. 886.06 crores).

c. Capital commitments - Rs. 137.17 crores (Previous Year - Rs. 164.64 crores).

d. Bills discounted with banks aggregating to Rs. 32.41 crores (Previous Year - Rs. 40.62 crores).

e. Duty on account of Advance Authorisation against Export Obligation is Rs. 1.03 crores. (Previous Year - Rs. 1.61 crores).

f. Disputed amount involved in three income-tax demands under appeal - Rs. 4.42 crores (Previous Year - Rs. 4.09 crores). The management is of view that the outcome of the appeal would be favourable to the company, hence no provision has been made against these income-tax demands.

g. A demand raised by the Service tax department of Rs. 0.06 crores (Previous Year Rs. 0.06 crores), against which company has filed an appeal to the jurisdiction authorities.

3. [B6]Greenearth Resources & Projects Limited (formerly known as Austral Coke & Projects Limited) had filed a defamation suit in Hon'ble Bombay High Court against the Company for Rs.600 Crores. The Company had also filed Civil Suit in Hon'ble Calcutta High Court against Greenearth Resources & Projects Limited, all its Directors, its merchant bankers and Auditors and others claiming for loss of damages worth Rs.4761 crores. Management is confident that outcome of the defamation suit filed by the Greenearth Resources & Projects Limited would be in favour of the company.

4. [B12]The company uses forward contracts to hedge its risks associated with foreign currencies relating to foreign currency liabilities. The company does not use forward contracts for speculative purpose.

5. [B13]Exchange difference Gain/ (Loss) of Rs. (0.03) Crores (Previous Year Rs. 0.58 Crores) in respect of unexpired period of forward cover contracts will be recognised in the Profit & Loss accounts in subsequent year.

6. [B14]Foreign Currency Convertible Bonds (FCCB)

The Company issued 600, Zero Coupon Unsecured Foreign Currency Convertible Bonds (FCCB) of US$ 100,000 each aggregating US$ 60 Million at par on 11th April, 2006. These bonds are convertible into equity shares of the Company at the option of bondholders at a price of Rs. 44.64 per share, If not converted then they are redeemable on 12th April, 2011 at 139.36% of the face value.

As on 31.03.2011, 426 Bonds has been converted into 3,18,98,284 equity shares leaving balance of 174 bond as on 31.03.2011. Subsequently, these bonds have also been converted and consequently 1,74,07,793 Equity Shares & 17,40,778 "B" Equity Shares have been allotted on 8th April 2011. With these conversions, all the FCCB's have been fully converted.

7. [B16]Secured Non-Convertible Debentures:

- 11.90% Secured Redeemable Non Convertible Debentures of Rs. 100.00 Crores (Previous Year Rs. 100.00 Crores) are redeemable at par in 4 equal annual installments commencing from 07th February 2012.

- 11.00% Secured Redeemable Non Convertible Debentures of Rs. 250.00 Crores (Previous Year Nil) are redeemable at par in 8 equal half yearly installments commencing from 29th April 2013.

- 12.50% Secured Redeemable Non Convertible Debentures of

- Rs. 10.00 Crores (Previous Year 10.00 Crores) are redeemable at par in 4 equal annual installments commencing from 30th May 2012,

- Rs. 10.00 Crores (Previous Year 10.00 Crores) are redeemable at par on 30th May 2012,

- Rs. 10.00 Crores (Previous Year 10.00 Crores) are redeemable at par on 30th May 2013,

- Rs. 10.00 Crores (Previous Year 10.00 Crores) are redeemable at par on 30th May 2014,

- Rs. 10.00 Crores (Previous Year 10.00 Crores) are redeemable at par on 30th May 2015

8. [B19]For the Convenience of operations, Bajrang Bali Coke Industries Ltd has appointed the Company as 'Operator' to operate and manage their plants at Bhachau Gujarat w.e.f. 1st April 2010 as per terms of an agreement dated 1st April 2010. Pursuant to the said agreement and supplementary agreement dated 28th March, 2011 the Company has given an interest free Security Deposit of Rs. 30 Crores to Bajrang Bali Coke Industries Ltd. Consequently, additionals capacity of 90,000 MT per annum of Metallurgical Coke has been available to the company.

9. [B24] Previous Year figures have been regrouped / rearranged wherever considered necessary.


Mar 31, 2010

1. [B11] Segment Information

a) Primary Segment Reporting ( by Business Segment):

The Company has two reporting segments i.e. -Coal & Coke” & “Steel” as primary segments.

2. [B13] The company uses forward contracts to hedge its risks associated with foreign currencies relating to foreign currency liabilities. The company does not use forward contracts for speculative purpose.

3. [B14] Exchange difference (gain) of Rs.0.58 Crores (Previous Year Nil) in respect of unexpired period of forward cover contracts will be recognised in the Profit & Loss accounts in subsequent year.

4. [B15] Foreign Currency Convertible Bonds (FCCB)

a) The Company issued 600, Zero Coupon Unsecured Foreign Currency Convertible Bonds (FCCB) of US$ 100,000 each aggregating US$ 60 Million at par on 11th April, 2006. These bonds are convertible into equity shares of the Company at the option of bondholders at a price of Rs. 44.64 per share, If not converted then they are redeemable on 12th April, 2011 at 139.36% of the face value. As on 31.03.10, 425 Bonds has been converted into 3,17,98,240 equity shares leaving balance of 175 bond as on 31.03.2010.

b) Out of the above FCCBs of Rs. 267.96 crores, a sum of Rs. 0.11 crores remain unutilised at the balance sheet date.

5. [B17] Secured Non-Convertible Debentures:

- 10.60% Secured Redeemable Non Convertible Debentures of Rs. 75.00 Crores (Previous Year Rs. 95.00 Crores) were redeemable at par in 15 equal quarterly installments by 27th November 2013. The same are being redeemed since 27th February 2009.

- 11.90% Secured Redeemable Non Convertible Debentures of Rs. 100.00 Crores (Previous Year Rs. 100.00 Crores) are redeemable at par in 4 equal annual installments commencing from 7th February 2012.

- 12.50% Secured Redeemable Non Convertible Debentures of

- Rs. 50.00 Crores (Previous Year Rs. 50.00 Crores) were redeemable at par in 4 equal annual installments commencing from 6th March 2012,

- Rs. 10.00 Crores (Previous Year NIL) are redeemable at par in 4 equal annual installments commencing from 30th May 2012,

- Rs. 10.00 Crores (Previous Year NIL) are redeemable at par on 30th May 2012,

- Rs. 10.00 Crores (Previous Year NIL) are redeemable at par on 30th May 2013,

- Rs. 10.00 Crores (Previous Year NIL) are redeemable at par on 30th May 2014,

- Rs. 10.00 Crores (Previous Year NIL) are redeemable at par on 30th May 2015

6. [B19] The Company has exercised the option granted vide notification No. GSR 225(E) dated 31st March’2009 issued by the Ministry of Corporate Affairs and accordingly the exchange differences arising on revaluation of long term foreign currency monetary items have been recognised over the shorter of the maturity period or 31st March’ 2011, due to this, profit for the current year is lower by Rs.1.94 Crores.

7. [B21] For the Convenience of operations, NRE Metcoke Limited has appointed the Company as ‘Operator’ to operate and manage their plants at Bhachau, Gujarat w.e.f. 1st April 2010 vide an agreement dated 8th March 2010. Pursuant to the said agreement the Company has given an interest free Security Deposit of Rs. 35 Crores to NRE Metcoke Limited. Consequently, additional capacity of 90,000 MT of Low-Ash Metallurgical Coke has been available to the company from 1st April 2010.

8. [B25] Additional information Pursuant to the provision of Part II of Schedule VI of the Companies Act, 1956 to the extent applicable to the Company :

A) Particulars of Capacity and Production :

Note : Weighted Average capacity utilisation based on weighted average installed capacity Low-Ash Metallurgical Coke - 68.41% (Previous Year – 78.38 %) Rolled & Alloy Steel Products - 26.06 % (Previous Year – 25.52 %) Electricity Power - Windmill 19.35 % (Previous Year – 16.19 %)

B) Particulars of Stocks and Sales :

C) Particulars of Raw Materials Consumed :

E) Other Additional Information :

iv ) Value of imported / indigenous raw materials consumed :

F) Remittance in Foreign Currency on account of Dividend :

The Company has paid dividend in respect of shares held by Non-resident on repatriation basis. This inter-alia includes portfolio investment and direct investment, where the amount is also credited to Non-Resident External Account (NRE A/c). The exact amount of dividend remitted in foreign currency cannot be ascertained. The total amount remitted in this respect is given herein below:

9. [B26] Previous Year figures have been regrouped / rearranged wherever considered necessary.

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