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50 Mahindra Ugine Steel Company Ltd.
AT A GLANCE
(Rupees in Crores)
Financial Summary 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02
Sales 1340.52 1087.88 1073.42 922.18 717.23 615.04 522.00 356.57 242.67 256.21
Other Income 2.39 1.46 1.76 2.76 1.68 9.73 1.05 2.47 2.56 0.96
Increase/(Decrease) in stocks 8.62 15.78 -11.06 16.13 -4.39 24.92 6.79 -1.45 -5.90 8.34
Manufacturing and other expenses 1287.29 1024.79 1031.83 846.29 617.79 526.07 443.46 328.19 233.23 247.06
Depreciation 31.45 30.87 24.74 26.71 16.73 13.08 9.62 9.26 9.61 9.29
Interest 42.39 40.83 36.06 28.63 11.83 11.15 11.38 13.51 13.71 15.40
!"#[%&'(#))*+,#"+%-.+/.0"+1.,#".+%02 -9.60 8.63 -28.51 44.19 68.17 99.38 65.38 6.63 -17.22 -6.23
Provision for Taxation - Current Tax - 1.00 - 10.55 24.82 32.40 5.13 0.53 — -0.57
'324.))*+5"#67)7#8+,#"+.0"97."+/.0")+:&104;'8.%* -0.30 ------
— Deferred Tax -3.33 2.96 -10.13 4.15 -1.55 -2.13 12.09 — — —
Premium on redemption of Pref.Shares - — — — — 4.04 — — — —
!"#[%&'(#))*+0,%."+%02 -5.97 4.67 -18.83 29.49 44.90 65.06 48.16 6.10 -17.22 -5.67
Equity Dividend - 3.25 — 9.74 14.62 14.62 9.28 — — —
Preference Dividend - — — — 0.22 1.01 1.91 — 1.87 1.07
Gross Fixed Assets 580.40 567.81 455.27 410.22 317.05 269.63 200.09 200.85 202.11 200.05
Net Fixed Assets 300.93 306.10 326.02 292.40 233.00 115.82 68.61 70.34 81.24 87.26
Investments 14.09 14.09 14.09 0.42 0.52 0.52 3.09 3.11 3.29 3.34
Net Current Assets 200.24 200.84 173.03 229.80 156.93 146.04 95.08 73.17 44.98 52.91
Miscellaneous Expenditure - - - 0.03 0.20 0.59 1.04 1.82 2.31 4.55
Equity Share Capital 32.48 32.48 32.48 32.48 32.48 32.48 30.93 30.93 30.93 30.93
Share Capital 32.48 32.48 32.48 32.48 32.48 37.94 47.39 47.39 47.39 47.39
Reserves and Surplus 131.47 137.43 136.56 155.39 137.31 110.77 43.92 8.78 6.10 71.30
Net Worth 165.21 171.21 170.34 189.00 170.16 148.12 90.28 54.35 47.5 62.48
Borrowings 343.53 339.97 335.91 316.46 207.42 99.55 64.41 92.26 82.00 81.02
!"#[%+1.,#".+%02+0)+0+<+#,+)09.) - 0.79 - 4.79 9.50 16.16 12.52 1.86 — —
!"#[%+0,%."+%02+0)+0+<+#,+)09.) - 0.43 - 3.20 6.26 10.58 9.22 1.71 — —
Earnings - Rs. per Equity Share -1.84 1.44 -5.80 9.08 13.75 19.68 15.03 1.81 -6.17 -2.18
Dividend - Rs. per Equity Share - 1.00 - 3.00 4.50 4.50 3.00 — — —
Book Value - Rs. per Equity Share 50.87 52.71 52.44 58.15 52.36 43.93 23.86 12.26 10.03 14.88
1 Mahindra Ugine Steel Company Ltd.
THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK
2 Mahindra Ugine Steel Company Ltd.
NOTICE
The Forty–Eight Annual General Meeting of the Members of appointed as a Director of the Company liable to retire by MAHINDRA UGINE STEEL COMPANY LIMITED will be held on rotation.” th Wednesday, the 27 day of July, 2011 at 3.00 p.m. at Amar Gian L*+ F#+ 4#8)7B."+ 08B>+ 7,+ %-#DG-%+ [%>+ %#+ 50))>+ :7%-+ #"+ :7%-#D%+ Grover Auditorium, Lala Lajpat Rai Marg, Mahalaxmi, Haji Ali, H#B7[40%7#8')*>+ %-.+ ,#99#:78G+ ".)#9D%7#8+ 0)+ 08+ I"B780"/+ Mumbai – 400 034, to transact the following business: Resolution: ORDINARY BUSINESS: “RESOLVED that in accordance with the provisions of 1) To receive and adopt the audited Balance Sheet as at Section 257 and all other applicable provisions, if any, of 31st+=0"4->+?@AA+08B+%-.+!"#[%+08B+(#))+C44#D8%+,#"+%-.+/.0"+ the Companies Act, 1956, Mr. Nikhilesh Panchal, who was ended on that date and the Reports of the Directors and the appointed as an Additional Director by the Board of Directors Auditors thereon. #,+%-.+P#H508/+08B+:-#+-#9B)+#,[4.+D5%#+%-.+B0%.+#,+%-7)+ 2) To appoint a Director in place of Mr. Anand Mahindra, who Annual General Meeting pursuant to Section 260 of the retires by rotation and being eligible, offers himself for Companies Act, 1956 and in respect of whom the Company re-appointment. has received a notice in writing from a member proposing his 408B7B0%D".+,#"+%-.+#,[4.+#,+Q7".4%#"+0)+5."+%-.+5"#67)7#8)+#,+ 3) To appoint a Director in place of Mr. R.R. Krishnan, who section 257 of the Companies Act, 1956, be and is hereby retires by rotation and being eligible, offers himself for appointed as Director of the Company liable to retire by re-appointment. rotation. 4) To appoint a Director in place of Mr. S. Ravi, who retires by R*+ F#+ 4#8)7B."+ 08B>+ 7,+ %-#DG-%+ [%>+ %#+ 50))>+ :7%-+ #"+ :7%-#D%+ rotation and being eligible, offers himself for re-appointment. H#B7[40%7#8')*>+ %-.+ ,#99#:78G+ ".)#9D%7#8+ 0)+ 08+ I"B780"/+ E*+ F#+ 4#8)7B."+ 08B>+ 7,+ %-#DG-%+ [%>+ %#+ 50))>+ :7%-+ #"+ :7%-#D%+ Resolution: H#B7[40%7#8')*>+ %-.+ ,#99#:78G+ ".)#9D%7#8+ 0)+ 08+ I"B780"/+ “RESOLVED that in accordance with the provisions of Resolution: Section 257 and all other applicable provisions, if any, of the “RESOLVED that pursuant to section 224 of the Companies Companies Act, 1956, Mr. Uday Gupta, who was appointed Act, 1956, Messrs. Deloitte Haskins & Sells, Chartered as an Additional Director by the Board of Directors of the C44#D8%08%)+ 'J.G7)%"0%7#8+ KDH1."+ AALMNNO*>+ %-.+ ".%7"78G+ P#H508/+08B+:-#+-#9B)+#,[4.+D5%#+%-.+B0%.+#,+%-7)+C88D09+ Auditors of the Company, be re-appointed as Auditors General Meeting pursuant to Section 260 of the Companies #,+ %-.+ P#H508/+ %#+ -#9B+ #,[4.+ ,"#H+ %-.+ 4#849D)7#8+ #,+ %-7)+ Act, 1956 and in respect of whom the Company has received Annual General Meeting, until the conclusion of the next a notice in writing from a member proposing his candidature Annual General Meeting of the Company at a remuneration ,#"+%-.+#,[4.+#,+Q7".4%#"+0)+5."+%-.+5"#67)7#8)+#,+).4%7#8+?EL+ to be determined by the Board in addition to out of pocket of the Companies Act, 1956, be and is hereby appointed as expenses as may be incurred by them during the course of Director of the Company liable to retire by rotation.” the Audit.” S*+ F#+ 4#8)7B."+ 08B>+ 7,+ %-#DG-%+ [%>+ %#+ 50))>+ :7%-+ #"+ :7%-#D%+ SPECIAL BUSINESS: H#B7[40%7#8')*>+ %-.+ ,#99#:78G+ ".)#9D%7#8+ 0)+ T5.4709+ N*+ F#+ 4#8)7B."+ 08B>+ 7,+ %-#DG-%+ [%>+ %#+ 50))>+ :7%-+ #"+ :7%-#D%+ Resolution: H#B7[40%7#8')*>+ %-.+ ,#99#:78G+ ".)#9D%7#8+ 0)+ 08+ I"B780"/+ “RESOLVED that pursuant to the provisions of sections 269, Resolution: 198, 309, 310, 311, and all other applicable provisions of “RESOLVED that in accordance with the provisions of %-.+P#H5087.)+C4%>+ASEN+'%-.+C4%*>+'7849DB78G+08/+)%0%D%#"/+ Section 257 and all other applicable provisions, if any, of H#B7[40%7#8+ #"+ ".U.804%H.8%+ %-.".#,+ ,#"+ %-.+ %7H.+ 1.78G+ the Companies Act, 1956, Mr. Daljit Mirchandani, who was in force), read with Schedule XIII of the Act and subject to appointed as an Additional Director by the Board of Directors the approval of the Central Government and such other #,+%-.+P#H508/+08B+:-#+-#9B)+#,[4.+D5%#+%-.+B0%.+#,+%-7)+ approvals, permissions and sanctions, as may be required Annual General Meeting pursuant to Section 260 of the 08B+)D1V.4%+%#+)D4-+4#8B7%7#8)+08B+H#B7[40%7#8)>+0)+H0/+1.+ Companies Act, 1956 and in respect of whom the Company imposed or prescribed by any of the authorities in granting has received a notice in writing from a member proposing his such approvals, permissions and sanctions, approval of 408B7B0%D".+,#"+%-.+#,[4.+#,+Q7".4%#"+0)+5."+%-.+5"#67)7#8)+#,+ the Company be accorded to the appointment of Mr. Uday section 257 of the Companies Act, 1956, be and is hereby WD5%0+0)+%-.+=080G78G+Q7".4%#"+#,+%-.+P#H508/+'-.".780,%."+
3 Mahindra Ugine Steel Company Ltd.
".,."".B+%#+0)+O=080G78G+Q7".4%#"P*>+,#"+0+5."7#B+#,+M+'F-"..*+/.0")+:7%-+.,,.4%+,"#H+Eth May, 2011 to 4th May 2014, on the following terms and conditions;
Salary : Basic salary Rs. 1,95,000/- per month in the scale of Rs.1,95,000/- to Rs.3,25,000/- per month. Perquisites : In addition to the salary, the Managing Director shall be entitled to the following perquisites in accordance with the rules of the Company. i) Housing : Furnished residential accommodation or House Rent Allowance of 60% of salary in lieu thereof; ii) Gas, electricity, water : The expenditure incurred on gas, electricity, water will be borne by the Company subject to Income Tax rules; iii) Medical re-imbursement : Expenses incurred for the Managing Director and his family as per the Company’s rules; iv) Leave Travel Concession : For Managing Director and his family, once in a year, incurred in accordance with the Company’s rules; v) Club Fees : Fees of clubs, subject to a maximum of two Clubs. This will not include admission and life membership fees; vi) Personal Accident Insurance : Premium as per the Company’s rules; vii) Contribution to Funds : Contribution to Provident Fund, Superannuation Fund, Gratuity Fund as per the Company’s rules; viii) Encashment of Leave : Encashment of leave not availed of by the Managing Director as per the Company’s rules; ix) Provision of a car and telephone : Provision of a car and telephone at the Managing Director’s residence for his use as per Company’s rules; x) Performance pay : As per the Company’s Rules; xi) I%-."+1.8.[%) :TD4-+#%-."+1.8.[%)>+0H.87%7.)+08B+,04797%7.)+0)+5."+%-.+P#H508/R)+"D9.)[ 1. The value of perquisites would be evaluated as per Income-Tax Rules, 1962 wherever applicable and at cost in the absence of any such Rule. 2. Contribution to Provident Fund, Superannuation fund and Gratuity would not be included in the Computation of ceiling on remuneration to the extent these either singly or put together are not taxable under the Income- tax Act, 1961. 3. Encashment of earned leave at the end of the tenure of Managing Director as per the Rules of the Company shall not be included in the computation of ceiling on remuneration. + !"#67B.B+%-0%+%-.+".HD8."0%7#8+50/019.+%#+%-.+=080G78G+Q7".4%#"+'7849DB78G+%-.+)090"/>+5.",#"H084.+50/>+5."\D7)7%.)>+1.8.[%)+ and amenities) shall not exceed the limits laid down in sections 198 and 309 of the Companies Act, 1956, including any statutory H#B7[40%7#8)+#"+".U.804%H.8%+%-.".#,[ + ]^JF_3J+J3TI(`3Q+%-0%+:-.".+78+08/+[8084709+/.0"+BD"78G+%-.+4D"".84/+#,+%.8D".+#,+%-.+=080G78G+Q7".4%#">+%-.+P#H508/+ -0)+8#+5"#[%)+#"+7%)+5"#[%)+0".+780B.\D0%.>+%-.+P#H508/+H0/+50/+%#+%-.+=080G78G+Q7".4%#"+".HD8."0%7#8+1/+:0/+#,+)090"/>+ 5.",#"H084.+50/>+5."\D7)7%.)+08B+#%-."+099#:084.)+08B+1.8.[%)+0)+)5.47[.B+01#6.+0)+%-.+H787HDH+".HD8."0%7#8+)D1V.4%+%#+%-.+ receipt of requisite approvals, if any. +]^JF_3J+J3TI(`3Q+%-0%+,#"+%-.+5D"5#).+#,+G7678G+.,,.4%+%#+%-7)+".)#9D%7#8+%-.+a#0"B+#,+Q7".4%#")+#,+%-.+P#H508/+'-.".780,%."+ referred to as the ‘Board’ which term shall be deemed to include any duly authorised Committee thereof, for the time being exercising the powers conferred on the Board by this resolution) be authorised to do all such acts, deeds, matters and things 0)+7%+H0/>+78+7%)+01)#9D%.+B7)4".%7#8>+B..H+8.4.))0"/>+5"#5."+#"+B.)7"019.+08B+%#+).%%9.+08/+\D.)%7#8)>+B7,[4D9%7.)+#"+B#D1%)+%-0%+ may arise in this regard and further to execute all necessary documents, applications, returns and writings as may be necessary, proper, desirable or expedient.”
4 Mahindra Ugine Steel Company Ltd.
A@*+ F#+4#8)7B."+08B>+7,+%-#DG-%+[%>+%#+50))>+:7%-+#"+:7%-#D%+H#B7[40%7#8')*>+%-.+,#99#:78G+".)#9D%7#8+0)+T5.4709+J.)#9D%7#8b “RESOLVED that pursuant to the provisions of sections 198, 309, 310, 269 and all other applicable provisions of the Companies C4%>+ASEN+'%-.+C4%*>+'7849DB78G+08/+)%0%D%#"/+H#B7[40%7#8+#"+".U.804%H.8%+%-.".#,+,#"+%-.+%7H.+1.78G+78+,#"4.*>+".0B+:7%-+T4-.BD9.+ XIII of the Act and subject to the approval of the Central Government and such other approvals, permissions and sanctions, as H0/+1.+".\D7".B+08B+)D1V.4%+%#+)D4-+4#8B7%7#8)+08B+H#B7[40%7#8)>+0)+H0/+1.+7H5#).B+#"+5".)4"71.B+1/+08/+#,+%-.+0D%-#"7%7.)+78+ granting such approvals, permissions and sanctions, approval of the Company be accorded for the payment of remuneration to ="[+c[+`[+J0H0"0%-80H+0)+%-.+=080G78G+Q7".4%#"+#,+%-.+P#H508/+'-.".780,%."+".,."".B+%#+0)+O=080G78G+Q7".4%#"P*>+,#"+0+5."7#B+ with effect from 1st April, 2011 upto the remainder of his tenure i.e. 4th May, 2011, as follows:
Salary : Basic salary Rs. 2,91,500/- per month in the scale of Rs.2,00,000/- to Rs.3,50,000/- per month. Perquisites : In addition to the salary, the Managing Director shall be entitled to the following perquisites in accordance with the rules of the Company. i) Housing : Furnished residential accommodation or House Rent Allowance of 60% of salary in lieu thereof; ii) Gas, electricity, water : The expenditure incurred on gas, electricity, water will be borne by the Company subject to Income Tax rules; iii) Medical re-imbursement : Expenses incurred for the Managing Director and his family as per the Company’s rules; iv) Leave Travel Concession : For Managing Director and his family, once in a year, incurred in accordance with the Company’s rules; v) Club Fees : Fees of clubs, subject to a maximum of two Clubs. This will not include admission and life membership fees; vi) Personal Accident Insurance : Premium as per the Company’s rules; vii) Contribution to Funds : Contribution to Provident Fund, Superannuation Fund, Gratuity Fund as per the Company’s rules; viii) Encashment of Leave : Encashment of leave not availed of by the Managing Director as per the Company’s rules; ix) Provision of a car and telephone : Provision of a car and telephone at the Managing Director’s residence for his use as per Company’s rules; x) Performance pay : As per the Company’s Rules; xi) I%-."+1.8.[%) :TD4-+#%-."+1.8.[%)>+0H.87%7.)+08B+,04797%7.)+0)+5."+%-.+P#H508/R)+"D9.)[ 1. The value of perquisites would be evaluated as per Income-Tax Rules, 1962 wherever applicable and at cost in the absence of any such Rule. 2. Contribution to Provident Fund, Superannuation fund and Gratuity would not be included in the Computation of ceiling on remuneration to the extent these either singly or put together are not taxable under the Income- tax Act, 1961. 3. Encashment of earned leave at the end of the tenure of Managing Director as per the Rules of the Company shall not be included in the computation of ceiling on remuneration. + !"#67B.B+%-0%+%-.+".HD8."0%7#8+50/019.+%#+%-.+=080G78G+Q7".4%#"+'7849DB78G+%-.+)090"/>+5.",#"H084.+50/>+5."\D7)7%.)>+1.8.[%)+ and amenities) shall not exceed the limits laid down in sections 198 and 309 of the Companies Act, 1956, including any statutory H#B7[40%7#8)+#"+".U.804%H.8%+%-.".#,[ + ]^JF_3J+J3TI(`3Q+%-0%+:-.".+78+08/+[8084709+/.0"+BD"78G+%-.+4D"".84/+#,+%.8D".+#,+%-.+=080G78G+Q7".4%#">+%-.+P#H508/+ -0)+8#+5"#[%)+#"+7%)+5"#[%)+0".+780B.\D0%.>+%-.+P#H508/+H0/+50/+%#+%-.+=080G78G+Q7".4%#"+".HD8."0%7#8+1/+:0/+#,+)090"/>+ 5.",#"H084.+50/>+5."\D7)7%.)+08B+#%-."+099#:084.)+08B+1.8.[%)+0)+)5.47[.B+01#6.+0)+%-.+H787HDH+".HD8."0%7#8+)D1V.4%+%#+%-.+ receipt of requisite approvals, if any.
5 Mahindra Ugine Steel Company Ltd.
FURTHER RESOLVED that for the purpose of giving effect '.*+ =.H1.")+0".+".\D.)%.B+%#+:"7%.+%#+%-.+P#H508/+T.4".%0"/+ to this resolution the Board of Directors of the Company at least ten days before the Meeting for obtaining any '-.".780,%."+ ".,."".B+ %#+ 0)+ %-.+ Qa#0"BR+ :-74-+ %."H+ )-099+ 1.+ information as regards accounts and operations of the deemed to include any duly authorised Committee thereof, for Company so that the same could be compiled in time. the time being exercising the powers conferred on the Board ',*+ P#8).\D.8%+ D5#8+ %-.+ 78%"#BD4%7#8+ #,+ T.4%7#8+ A@SC+ #,+ %-.+ by this resolution) be authorised to do all such acts, deeds, Companies Act, 1956, shareholders are entitled to make matters and things as it may, in its absolute discretion, deem nomination in respect of shares held by them in physical necessary, proper or desirable and to settle any questions, form. Shareholders desirous of making nomination are B7,[4D9%7.)+#"+B#D1%)+%-0%+H0/+0"7).+78+%-7)+".G0"B+08B+,D"%-."+ requested to send their requests in Form No. 2B in duplicate to execute all necessary documents, applications, returns ':-74-+:799+1.+H0B.+06079019.+#8+".\D.)%*+%#+%-.+J.G7)%"0"+ and writings as may be necessary, proper, desirable or and Transfer Agents of the Company. expedient.” 'G*+ =.H1.")+0".+".\D.)%.B+%#b AA*+ F#+ 4#8)7B."+ 08B>+ 7,+ %-#DG-%+ [%>+ %#+ 50))>+ :7%-+ #"+ :7%-#D%+ H#B7[40%7#8')*>+ %-.+ ,#99#:78G+ ".)#9D%7#8+ 0)+ T5.4709+ + '7*+ 78%7H0%.+ %#+ %-.+ P#H508/+ #"+ 7%)+ J.G7)%"0"+ 08B+F"08),."+ Resolution: CG.8%)+67g[+T-0".5"#+T."674.)+'e8B70*+!6%[+(%B[>+AMCa>+ Samhita Warehousing Complex, 2nd Floor, Sakinaka “RESOLVED THAT the Directors who are neither in the Telephone Exchange Lane, Off: Andheri Kurla whole-time employment of the Company nor the Managing J#0B>+ T0;780;0>+ C8B-."7+ '30)%*>+ =DH107+ M+ i@@+ @L?>+ Director, Executive Directors and such of the remainder as about changes, if any, in their registered address for H0/+8#%+B.)7".+%#+50"%74750%.>+)-099+,#"+0+5."7#B+#,+[6.+/.0")+ correspondence, at an early date, in case of shares held st with effect from 1 April, 2011, be paid remuneration by way in physical form; #,+ 4#HH7))7#8+ D5%#+ #8.+ 5."+ 4.8%+ #,+ %-.+ 8.%+ 5"#[%)+ #,+ %-.+ Company, computed in the manner referred to in Sections + '77*+ 78%7H0%.+ %#+ %-.7"+ ".)5.4%76.+ Q.5#)7%#"/+ !0"%747508%>+ 198, 309 and all other applicable provisions of the Companies about changes, if any, in their registered addresses for Act, 1956, and such commission to be distributed amongst correspondence, at an early date, in case of shares held and paid to the aforesaid Directors concerned in such in dematerialized form; proportions as they may from time to time decide between + '777*+ jD#%.+]#97#+KDH1.")+#"+P97.8%+eQ+08B+Q!+eQ+8DH1.")+78+ themselves. all correspondence. FURTHER RESOLVED THAT the Board of Directors be and '-*+ =.H1.")+ :-#+ -#9B+ )-0".)+ 78+ B.H0%."7097g.B+ H#B.+ 0".+ are hereby authorised to take all such appropriate steps as requested to bring their Client ID and DP ID numbers for may be necessary, desirable and expedient in this regards.” .0)/+7B.8%7[40%7#8+#,+0%%.8B084.+0%+%-.+=..%78G[ NOTES: '7*+ =.H1.")+-#9B78G+)-0".)+D8B."+HD9%759.+,#97#)+78+%-.+7B.8%7409+ '0*+ 3259080%#"/+ )%0%.H.8%+ 5D")D08%+ %#+ T.4%7#8+ ALM'?*+ #,+ %-.+ order of names are requested to consolidate their holdings Companies Act, 1956 is annexed hereto. into one folio. '1*+ C+ =3=a3J+ 3KFeF(3Q+ FI+CFF3KQ+CKQ+ `IF3+CF+ F_3+ 'V*+ C55#78%H.8%&J.U055#78%H.8%+#,+Q7".4%#")[ MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND In respect of the information to be provided under Clause AND VOTE INSTEAD OF HIMSELF/HERSELF AND A 49 of the Listing Agreement pertaining to the Directors being PROXY NEED NOT BE A MEMBER. THE INSTRUMENT appointed/re-appointed, Members are requested to kindly APPOINTING THE PROXY MUST BE DEPOSITED WITH THE COMPANY AT IT’S REGISTERED OFFICE NOT LESS refer the Chapter on Corporate Governance in the Annual THAN 48 HOURS BEFORE THE COMMENCEMENT OF Report. THE MEETING. ';*+ T-0".-#9B78G+ #,+ Q7".4%#")+ )..;78G+ 055#78%H.8%& '4*+ F-.+J.G7)%."+#,+=.H1.")+08B+T-0".+F"08),."+a##;)+#,+%-.+ re-appointment: th Company will remain closed from Saturday, the 16 July, Mr. Daljit Mirchandani, Mr. Nikhilesh Panchal, Mr. R.R. 2011 to Wednesday, the 27th+fD9/>+?@AA+'1#%-+B0/)+7849D)76.*[ Krishnan, Mr. S. Ravi and Mr. Uday Gupta do not hold any 'B*+ e8+ 044#"B084.+ :7%-+ %-.+ 5"#67)7#8)+ #,+ T.4%7#8+ ?@EP+ #,+ shares in the Company. Mr. Anand Mahindra holds 13,617 the Companies Act, 1956, the Company has transferred shares in the Company. D84907H.B+ H0%D".B+ ]72.B+ Q.5#)7%)+ 08B+ 78%.".)%+ #8+ [2.B+ deposits as on 31st March, 2004 to the Investor Education '9*+ !D")D08%+%#+%-.+5"#67)7#8)+#,+).4%7#8+?@EC+#,+%-.+P#H5087.)+ and Protection Fund of the Central Government. C4%>+ASEN>+%-.".+:.".+8#+D84907H.B+B767B.8B)+,#"+%-.+[8084709+
6 Mahindra Ugine Steel Company Ltd.
year ended 31st March, 2003 due for transfer to the Investor Education and Protection Fund. Further, there are no unclaimed dividends for the Financial Year ended 31st March, 2004, which are required to be transferred to the Investor Education and !"#%.4%7#8+]D8B+'e3!]*[ Due dates for transferring unclaimed and unpaid dividends declared by the Company for the year 2004-05 and thereafter to IEPF:
Financial Year ended Date of declaration of dividend Last date for claiming unpaid/unclaimed dividend 31st March, 2005 29th July, 2005 28th August, 2012 31st March, 2006 24th July, 2006 23rd August,, 2013 31st+=0"4->+?@@L+'e8%."7H+B767B.8B* 23rd March, 2007 22nd April,, 2014 31st March, 2007 26th July, 2007 25th August, 2014 31st March, 2008 24th July, 2008 23rd August, 2015 31st March, 2009 N.A N.A 31st March, 2010 27th July, 2010 26th August, 2017 'H*+ F-.+T.4D"7%7.)+08B+324-08G.+a#0"B+#,+e8B70+-0)+H0B.+7%+H08B0%#"/+,#"+099+4#H5087.)+%#+D).+%-.+108;+044#D8%+B.%079)+,D"87)-.B+ 1/+%-.+B.5#)7%#"7.)+,#"+B.5#)7%78G+B767B.8B+%-"#DG-+39.4%"#874+P9.0"78G+T."674.+'3PT*+%#+786.)%#")+:-.".6."+3PT+08B+108;+B.%079)+ are available. In the absence of ECS facilities, the Company will print the bank account details, if available, on the payment instrument for distribution of dividend. The Company will not entertain any direct request from shareholders holding shares in electronic form for deletion of/change in such Bank details. Further, instructions, if any, already given by them in respect of shares held in physical form will not be automatically applicable to shares held in the electronic mode. Members who wish to change such Bank Account details are therefore requested to advise their Depository Participants about such change, with complete details of Bank Account. '8*+ F-.+=787)%"/+#,+P#"5#"0%.+C,,07")+'O=PCP*+-0)+%0;.8+0+OW"..8+e87%70%76.+78+%-.+P#"5#"0%.+W#6."8084.P+1/+099#:78G+505."9.))+ compliances by companies and has issued circulars on April 21, 2011 and April 29, 2011 inter-alia stating that a company would have complied with Section 53 of the Companies Act, 1956, if the service of document has been made through electronic mode. In that case, the company is required to obtain email addresses of its members for sending the notice / documents through email by giving an advance opportunity to every shareholder to register his email address and changes therein, if any, from time to time with the company. The Company expects whole hearted support from its members towards the Green Initiative of MCA and request all its members to communicate their email ID and changes thereto from time to time to the Depository Participant/ Company’s Registrar & Share Transfer Agent, to enable the Company to send all its reports, notices and other communication to its members via email. Please note that the member will be entitled to receive, free of cost, all reports, notices and other communication that may be sent to the member by the Company, from time to time, electronically via email, upon receipt of a requisition from the member of the Company.
By Order of the Board
Ajay Kadhao Company Secretary J.G7)%.".B+I,[4.b 74, Ganesh Apartment, Opp. Sitaladevi Temple, ([f[J#0B>+=0-7H+'O.)%*> Mumbai- 400 016. Date: 16th May 2011
7 Mahindra Ugine Steel Company Ltd.
EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACT, 1956
ITEM NO.6. ITEM NO.7. In accordance with Section 260 of the Companies Act, 1956 In accordance with Section 260 of the Companies Act, 1956 and Article 129 of the Articles of Association of the Company, and Article 129 of the Articles of Association of the Company, Mr. Daljit Mirchandani, was appointed as an Additional Director Mr. Nikhilesh Panchal was appointed as an Additional Director of the Company by the Board of Directors with effect from of the Company by the Board of Directors with effect from 27th+I4%#1.">+?@A@+08B+-#9B)+#,[4.+D5%#+%-.+B0%.+#,+%-.+.8)D78G+ 18th+f08D0"/>+?@AA>+08B+-#9B)+#,[4.+D5%#+%-.+B0%.+#,+%-.+.8)D78G+ Annual General Meeting. Annual General Meeting. Mr. Daljit Mirchandani, born in Karachi on October 26th 1947, is a Mr. Nikhilesh Panchal was born on 21st August 1967 and Graduate Engineer from Birla Institute of Technology. Beginning holds masters degree in law and is practicing as an Advocate his career in 1971 as Graduate Trainee Engineer, in 1992 he for more than 15 years. He is a Solicitor registered as Patent rose to the position of Executive Director in Kirloskar Oil Engines, and Trademark Attorney. He is member of Bar Association of %-.+\0G)-75+4#H508/+#,+%-.+c7"9#);0"+W"#D5[+a.%:..8+ASS?+08B+ Maharashtra & Goa, Incorporated Law Society and the Supreme ASSL>+,#"+%-.+c7"9#);0"+W"#D5>+-.+).%+D5+%-.+[")%+78+0+;78B>+!7G+e"#8+ Court of England and Wales. plant with a capacity of 500 thousand ton integrated to a state -of- the-art Foundry with a capacity of 60 thousand tons per annum. Mr. Panchal has rich experience in acquisitions, takeover and mergers, foreign collaborations, joint ventures and technology In 1998, he joined Ingersoll-Rand India as the Chairman and transfers including connected procedures under Foreign Managing Director and retired in 2008. 324-08G.+=080G.H.8%+C4%+']3=C*l+08B+P#"5#"0%.+(0:)>+P057%09+ In 2005, he was the Chairman of the Karnataka State Council Markets transactions including public offerings; international #,+%-.+P#8,.B."0%7#8+#,+e8B708+e8BD)%"7.)+'Pee*>+08B+78+?@@L+:0)+ offerings by Indian companies, Intellectual Property and related nominated by the CII to be the Chairman of the Task Force formed rights matters etc. by the Ministry of Agriculture, to examine and recommend policy Mr. Nikhilesh Panchal is on the Boards of other companies and interventions and set technical standards for the formation of the is also a Member of Audit Committees of Mahindra Forgings Cold Chain Infrastructure in India for Fresh Fruits and Vegetables. Limited, details whereof are given in the Chapter on Corporate Implementation of these recommendations has been initiated by Governance in the Annual Report. the Ministry of Agriculture. Mr. Nikhilesh Panchal does not hold any shares in the Company. Presently he is working on the development of a scalable model in the space of primary and secondary education for the poorest The Board is of the view that Mr. Nikhilesh Panchal’s knowledge of the poor in Rural India. 08B+ .25."7.84.+ :799+ 1.+ #,+ 7HH.8).+ 1.8.[%+ 08B+ 609D.+ %#+ %-.+ He serves on the advisory and statutory Board of various Company and, therefore, recommends his appointment as the Companies in the space of Bio Fuels, Infrastructure Development, Director of the Company to the members. Infrastructure Finance, Forgings and a MNC. None of the Directors of the Company other than Mr. Nikhilesh Mr. Daljit Mirchandani is on the Boards of other companies and Panchal is deemed to be concerned or interested in this resolution. is also the Chairman and Member of Committees of the Board ITEM NO.8. of Mahindra Forgings Limited, details whereof are given in the In accordance with Section 260 of the Companies Act, 1956 and Chapter on Corporate Governance in the Annual Report. Article 129 of the Articles of Association of the Company, Mr. Uday Mr. Daljit Mirchandani does not hold any shares in the Company. Gupta was appointed as an Additional Director of the Company The Board is of view that Mr. Dalajit Mirchandani’s knowledge and with effect from 5th May, 2011, by the Board of Directors at its .25."7.84.+:799+1.+#,+7HH.8).+1.8.[%+08B+609D.+%#+%-.+P#H508/+ meeting held on 27th+C5"79+?@AA+08B+-#9B)+#,[4.+D5%#+%-.+B0%.+#,+ and, therefore, recommends his appointment as a Director of the the ensuing Annual General Meeting. Company to the members. Mr. Uday Gupta, aged 51 years, holds degree of Bachelors of None of the Directors of the Company other than Mr. Daljit Engineering with 1st class honors, Jadavpur University and Mirchandani is deemed to be concerned or interested in this =0)%."+#,+F.4-8#9#G/+,"#H+eeF+M+=0B"0)>+'P-.8807*+:-.".+-.+:0)+ resolution. the recipient of A Grade Merit Award.
8 Mahindra Ugine Steel Company Ltd.
="[+ ^B0/+ WD5%0+ -0)+ "74-+ 08B+ 60)%+ .25."7.84.+ 78+ %-.+ [.9B+ #,+ and terms and conditions thereof including the remuneration manufacturing sector particularly metal and alloy industry. payable to Mr. Uday Gupta, subject to requisite approvals, is now Mr. Uday Gupta was appointed as the CEO of Steel Division of being placed before the Members in this Annual General Meeting the Company in the year 2008. As the CEO of Steel Division, for their approval by way of a special resolution. Mr. Uday Gupta has taken various initiatives to streamline the e8+ 4#H597084.+ :7%-+ %-.+ ".\D7".H.8%)+ #,+ ).4%7#8+ M@?+ '?*+ #,+ %-.+ operations and infuse technical expertise for enhancing the Companies Act, 1956, an abstract of the terms of appointment of overall working of the Division. Prior to his appointment as the Mr. Uday Gupta as the Managing Director has already been sent P3I+ 'T%..9*>+ ="[^B0/+ WD5%0+ :0)+ 32.4D%76.+ Q7".4%#"+ #,+ ]7")%+ to all the Members of the Company. Aluminum Nigeria Plc Group, the Company listed on the Nigeria Stock Exchange, where he was a member of the Audit Committee Your Directors recommend this resolution as a special resolution #,+%-.+a#0"B+08B+09)#+-.0B78G+%-.+!"#[%+P.8%".+#,+J#9978G+=799+m+ for approval of the Members. Coating Division. Apart from Mr. Uday Gupta, who would be interested as an Mr. Uday Gupta has long association with Indian Aluminum appointee none of the other Directors is concerned or interested Company Ltd., where he has worked in various capacities and in this resolution. The following additional information as required has certain major achievements to his credit, details whereof are under Schedule XIII to the Companies Act, 1956 is given below – given in the Chapter on Corporate Governance in the Annual I. General Information: Report. 1. Nature of Industry Mr. Uday Gupta is not on the Board of any other Company. He The Company is engaged in the manufacture of alloy is a Member of Investors’ Grievance Committee of the Board and special steel products and also pressed sheet metal th with effect from 5 May 2011. Mr. Uday Gupta does not hold any components and assemblies. shares in the Company. 2. Date or expected date of commencement of The Board is of the view that Mr. Uday Gupta’s knowledge and commercial production: May, 1968. .25."7.84.+:799+1.+#,+7HH.8).+1.8.[%+08B+609D.+%#+%-.+P#H508/+ and, therefore, recommends his appointment as the Director of 3. In case of new companies expected date of the Company to the members. commencement of activities as per project !""#$%&'()*([,!,-.!/(.,01.121.$,0(!""&!#.,3(.,(14&( None of the Directors of the Company other than Mr. Uday Gupta, prospectus: Not applicable. is deemed to be concerned or interested in this resolution. 4. 5.,!,-.!/( 6$#8!,-&( )!0&'( $,( 3.%&,( .,'.-!1$#0( ITEM NO.9. !0("&#(!2'.1&'([,!,-.!/(#&02/10(7$#(14&(*&!#(&,'&'( The Board of Directors at its meeting held on 27th April 2011 31st March, 2011: appointed Mr. Uday Gupta as the Managing Director with effect Particulars (Rs. in Crores) from 5th May 2011, subject to the approval of members of the Company. The Remuneration Committee has also approved Sales & Other Income 1342.91 the terms and conditions including the remuneration payable to (#))+0,%."+F02+0)+5."+!"#[%+m+(#))+ 'S[AE* Mr. Uday Gupta, as the Managing Director of the Company for Account Loss as computed under 0+5."7#B+#,+M+'%-"..*+/.0")+:[.[,[+Eth May 2011 to 4th May 2014, T.4%7#8+ M@S'E*+ ".0B+ :7%-+ T.4%7#8+ subject to approval of the members and the Central Government, 198 of the Companies Act. if required. Net Worth 165.21 The Remuneration payable to Mr. Uday Gupta as the Managing 5. 9:"$#1( 6$#8!,-&( !,'( ;&1( 5$#&.3,( 9:-4!,3&( Director is in line with the current compensation paid by other Collaborations: companies in the Mahindra Group and also taking into account The FOB Value of Exports of the Company for the year the market trends. ended 31st March, 2011 was Rs.26.91 Crores. The terms of remuneration including salary, performance pay, The Company does not have any collaboration that has 5."\D7)7%.)>+08B+1.8.[%)+50/019.+%#+="[+^B0/+WD5%0+0".+).%+#D%+ resulted in any earnings or outgo of foreign exchange. in the special resolution under Item No.9 of this notice. 6. 5$#&.3,(.,%&018&,10($#(-$//!)$#!1$#0<(.7(!,*= Pursuant to sections 269, 198, 309, 310, 311 and all other 055974019.+ 5"#67)7#8)+ #,+ %-.+ P#H5087.)+ C4%>+ ASEN+ 'O%-.+ C4%P*>+ Not applicable. including Schedule XIII to the Act, the item relating to appointment
9 Mahindra Ugine Steel Company Ltd.
II. Information about the appointee: exports, new business development, streamlined HR Mr. Uday Gupta functions etc. 1. >!-?3#$2,'('&1!./0(@ 5. E&82,&#!1.$,("#$"$0&'(@ Mr. Uday Gupta, aged 51 years, holds degree of Salary of Rs.1,95,500/- p.m. in the basic scale of Bachelors of Engineering with 1st class honors, Jadavpur Rs. 1,95,000/- to Rs. 3,25,000/- per month and other University and Master of Technology from IIT – Madras, 5."\D7)7%.)>+099#:084.)+08B+#%-."+1.8.[%)>+0)+,D99/+).%+ 'P-.8807*+:-.".+-.+:0)+%-.+".4757.8%+#,+C+W"0B.+=."7%+ out in item No.9 of this notice. Award. 6. H$8"!#!1.%&( #&82,&#!1.$,( "#$[/&( F.14( #&0"&-1( 1$( Mr. Gupta was appointed as the CEO of Steel Division of .,'201#*<(0.I&($7(14&(H$8"!,*<("#$[/&($7(14&("$0.1.$,( the Company in the year 2008. Prior to his appointment and person (in case of expatriates the relevant 0)+%-.+P3I+'T%..9*>+="[+WD5%0+:0)+32.4D%76.+Q7".4%#"+#,+ details would be with respect to the country of his First Aluminum Nigeria Plc Group, the Company listed $#.3.,J(@ on the Nigeria Stock Exchange, where he was a member Taking into consideration the size of the Company, the of the Audit Committee of the Board and also heading 5"#[9.>+;8#:9.BG.>+);799)+08B+".)5#8)71797%7.)+)-#D9B.".B+ %-.+!"#[%+P.8%".+#,+J#9978G+=799+m+P#0%78G+Q767)7#8[ by Mr. Uday Gupta, the remuneration proposed to be Mr. Uday Gupta has long association with Indian paid is commensurate with the remuneration packages Aluminum Company Ltd., where he has worked in paid to his similar level counterparts in other companies. various capacities and has certain major achievements 7. Pecuniary relationship directly or indirectly with to his credit, details whereof are mentioned in the Annual 14&( H$8"!,*( $#( #&/!1.$,04."( F.14( 14&( 8!,!3&#.!/( Report in the Corporate Governance Report section "�$,,&/<(.7(!,*(@ under the heading “Directors seeking appointment/re- Besides the remuneration proposed to be paid to appointment”. Mr. Uday Gupta, he does not have any other pecuniary 2. 6!01(#&82,&#!1.$,('2#.,3(14&([,!,-.!/(*&!#(&,'&'( relationship with the Company or relationship with any 31st(A!#-4<(BCDD(@ other managerial personnel and Directors. + + QD"78G+%-.+[8084709+/.0"+.8B.B+MAst March, 2011, a sum III. Other Information: of Rs. 61,62,493/- was paid to Mr. Uday Gupta, CEO- 1. E&!0$,($7(/$00($#(.,!'&K2!1&("#$[10(@ Steel, as the remuneration which includes a component of superannuation and Provident Fund of Rs. 6,31,000/- + + F-.+ [8084709+ /.0"+ D8B."+ ".67.:+ :7%8.)).B+ )-0"5+ and performance pay of Rs. 3,30,000/- for FY 2009-10. increase in cost of input, power, fuel and borrowings, resulting in escalation in cost of production. Moreover, 3. E&-$3,.1.$,($#(!F!#'0(@ due to competitive pressure and muted demand growth + + C+W"0B.+M+=."7%+C:0"B+M+eeFU=0B"0)+'P-.8807*[ for steel products, the Company was unable to pass on fully this increased cost of production to its customers 4. G$)("#$[/&(!,'(02.1!)./.1*(@ affecting the overall performance. The Company had Mr. Uday Gupta has rich and vast experience in the to pay for high power cost as the expected contracted [.9B+#,+H08D,04%D"78G+).4%#"+50"%74D90"9/+H.%09+08B+099#/+ power supply at a lower rate was not received in the industry. Mr. Gupta was appointed as the CEO of Steel year. This was another major reason for pressure on Division of the Company in the year 2008. As the CEO operating margins. of Steel Division, Mr. Gupta has taken various initiatives to streamline the operations, cost control measures, 2. Steps taken or proposed to be taken for improvement improving quality of products, initiatives to bring new !,'(&:"&-1&'(.,-#&!0&(.,("#$'2-1.%.1*(!,'("#$[10(.,( technology and hiring technological experts. With his 8&!02#!)/&(1P(@ engineering background and in-depth knowledge and The Company has taken steps and initiatives for rich experience of metal manufacturing industries he has improving its sales to high margin steel products of taken various steps like formulating strategies for sales engineering, oil & gas and mining sectors. The Company and marketing of the steel division, initiative to increase 7)+ ,#4D)78G+ #8+ .25#"%)+ 08B+ -0)+ :7%8.)).B+ )7G87[408%+ growth in exports of its steel products on year on year
10 Mahindra Ugine Steel Company Ltd.
basis. New customers are added in Steel as well as The terms of remuneration including salary, performance pay, in Ring business and efforts are on to improve the 5."\D7)7%.)>+1.8.[%)+50/019.+%#+="[+J0H0"0%-80H+0".+).%+#D%+78+ customer base at Steel plus Ring Division and Stampings the special resolution under Item No.10 of this notice. Division. The Company is rigorously pursuing to get the Pursuant to sections 198, 309, 310, 269 and all other applicable contracted power supply at lower rate which will improve 5"#67)7#8)+ #,+ %-.+ P#H5087.)+ C4%>+ ASEN+ 'O%-.+ C4%P*>+ 7849DB78G+ the operating margins. Various initiatives are taken to Schedule XIII to the Act, the item relating to remuneration payable 7H5"#6.+ %-.+ #"B."+ 5#)7%7#8>+ 5"#BD4%767%/>+.,[47.84/+ 08B+ to Mr. Ramarathnam, subject to requisite approvals, is now being margin with optimum metallic cost of production, cost placed before the Members in this Annual General Meeting for control, process improvement, and technological up- their approval by way of a special resolution. gradation and saving power cost. The Ring business of the Company has succeeded in getting orders from e8+ 4#H597084.+ :7%-+ %-.+ ".\D7".H.8%)+ #,+ ).4%7#8+ M@?+ '?*+ #,+ %-.+ oveseas customers. The Stampings Division has also Companies Act, 1956, an abstract of the terms of remuneration taken various steps to upgrade its capacity to meet has already been sent to all the Members of the Company. growing demand of stampings products. The Company Your Directors recommend this resolution as a special resolution 7)+ 4#8[B.8%+ %-0%+ %-.).+ 787%70%76.)+ 08B+ )%.5)+ :799+ )%0"%+ for approval of the Members. yielding better results and increase the productivity and Apart from Mr. K.V. Ramarathnam, who is deemed to be 5"#[%01797%/+#,+%-.+P#H508/[ interested, none of the other Directors is concerned or interested IV. Disclosures: in this resolution. The information and disclosures of the remuneration The following additional information as required under Schedule package of the managerial personnel have been mentioned XIII to the Companies Act, 1956 is given below – in the Annual Report in the Corporate Governance Report I. General Information: Section under the Heading “Remuneration to the Managing Please refer to General Information given in the explanatory Director for the year ended 31st March, 2011”. statement for Item No. 9 of this Notice. ITEM NO.10. II. Information about the appointee: The Remuneration Committee and the Board of Directors Mr. K. V. Ramarathnam at their respective meetings held on 28th April, 2009 have 1. >!-?3#$2,'('&1!./0(@ revised the terms and conditions of remuneration payable to Mr. K.V. Ramarathnam as the Managing Director, for the period of 3 Mr. K. V. Ramarathnam is a Graduate in Mechanical years with effect from 1st April, 2008 upto 31st March, 2011, subject to Engineering from University of Madras and has rich approval of the members and the Central Government. Accordingly, experience of 40 years in Steel and related industries. the Company has obtained necessary approval from shareholders + + ="[+ c[+ `[+ J0H0"0%-80H+ :0)+ Ta^+ _.0B+ 'T%..9+ as well as Central Government. However, the tenure of service of Division) of Perkasa Indobaja, Subang, Indonesia, Mr. K.V. Ramarathnam as the Managing Director of the Company 'F.2H04#+ W"#D5*+ ,#"+ H#".+ %-08+ E+ /.0")+ -.0B78G+ was upto on 4th May, 2011 and for payment of the remuneration Seamless Tubes, Hot Rolling Mill, Steel Melting Shop. Mr. K. V. Ramarathnam was also associated as a Key for the remainder of his period of tenure i.e. from 1st April, 2011 to Personnel for more than 17 years with Kalyani Steels 4th May, 2011, requires approval of the members as well the Ltd. and Kalyani Seamless Tubes Ltd. Central Government. Mr. K. V. Ramarathnam has handled all areas The Board of Directors of the Company, at its Meeting held of operations including Production, Marketing, on 21st March, 2011 has, pursuant to the approval of the Process and equipment selection, Project appraisal Remuneration Committee of the Board and subject to approval and implementation, Cost Control, Recruitment & of the Members and the Central Government, approved Training, review of all MIS & action plans, Funds Flow the payment of remuneration for the period with effect from management etc. Mr. K. V. Ramarathnam has widely 1st April, 2011 till his remainder period of his tenure as the traveled on different assignments and is an effective Managing Director i.e. till 4th May, 2011, payable to Mr. K. V. team leader. Ramarathnam, Managing Director of the Company at the same 2. 6!01(#&82,&#!1.$,('2#.,3(14&([,!,-.!/(*&!#(&,'&'( 9.6.9+0)+-.+:0)+".4.7678G+BD"78G+%-.+[8084709+/.0"+?@A@+UAA[+F-.+ 31st(A!#-4<(BCDD(@ remuneration payable to Mr. K. V. Ramarathnam is in line with the + + QD"78G+ %-.+ [8084709+ /.0"+ .8B.B+ MAst March, 2011, current compensation paid by other companies in the Mahindra %-.+ P#H508/+ 507B+ 0+ )DH+ #,+ J)[+ LM>LE>E@L&U+ 0)+ [2.B+ Group and also taking into account the market trends. component of remuneration to Mr. K. V. Ramarathnam
11 Mahindra Ugine Steel Company Ltd.
which includes a component of superannuation, IV. Disclosures: Provident Fund and gratuity of Rs. 9,44,460/-. Apart The information and disclosures of the remuneration ,"#H+ %-.+ 01#6.+ [2.B+ 4#H5#8.8%>+ %-.+ H080G78G+ package of the managerial personnel have been mentioned director is entitled to receive an amount not exceeding in the Annual Report in the Corporate Governance Report Rs. 22,17,600/- as performance pay, being the upper limit Section under the Heading “Remuneration to the Managing #,+%-.+!.",#"H084.+!0/+[2.B+1/+%-.+a#0"B+#,+Q7".4%#")>+ Director for the year ended 31st March, 2011”. 50/019.+ %#+ %-.+ =080G78G+ Q7".4%#"+ ,#"+ %-.+ [8084709+ year 2010-11 depending on individual and Company’s ITEM NO.11. performance. The actual amount, not exceeding the !D")D08%+%#+).4%7#8+M@S+'i*+#,+%-.+P#H5087.)+C4%>+ASEN>+0+Q7".4%#"+ above upper limit, of the performance pay will be who is neither in the whole time employment of the company determined by the Remuneration Committee, based on nor a Managing Director may be paid remuneration by way of his individual performance and the performance of the commission if the Company by a Special Resolution authorises Company for the year 2010-11. The Company has paid an amount of Rs.13,30,560/- to the Managing Director, such payment. Provided that the commission shall not exceed towards performance pay for the year 2009-10. #8.+5."4.8%+#,+%-.+8.%+5"#[%+#,+%-.+P#H508/>+0)+4#H5D%.B+D8B."+ section 198 of the companies Act, 1956, if the Company has a 3. E&-$3,.1.$,($#(!F!#'0(@ Managing Director or Whole time Director. There was no external recognition or award. The Company at its 43rd Annual General Meeting held on 24th July 4. G$)("#$[/&(!,'(02.1!)./.1*(@ 2006 has approved the resolution of payment of commission to Mr. K V Ramarathnam was managing day to day affairs its Non-Executive Directors subject to above statutory provisions. of the Company under the control supervision of the The said resolution was valid for 5 years and can be renewed Board. He was involved in strategic initiatives and for a period of further 5 years. Even though the Company has business development process of the Company. He has not paid any commission till date to any of its Non-Executive taken various initiatives and measures like effective cost Q7".4%#")>+50"%74D90"9/+:-.8+5"#[%)+:-.".+06079019.>+%-.+a#0"B+#,+ control, streamlining delivery mechanism, upgrading of Directors of the Company has always received valuable advises, technology in manufacturing processes, strengthening sales and marketing strategies etc. contributions and support from its Non-Executive Directors. The vast and varied experience and rich knowledge of Non-Executive 5. E&82,&#!1.$,("#$"$0&'(@ Directors has always been helpful for smooth and effective Salary of Rs.2,91,500/- p.m. in the scale of Rs. 200,000/- management of various facets of operations of the Company, to Rs.3,50,000/- per month and other perquisites, from time to time. allowances as fully set out in item No.10 of this notice. In the view of above, your Board of Directors felt it appropriate 6. H$8"!#!1.%&( #&82,&#!1.$,( "#$[/&( F.14( #&0"&-1( 1$( to propose the renewal of the resolution for your approval so .,'201#*<(0.I&($7(14&(H$8"!,*<("#$[/&($7(14&("$0.1.$,( as to retain, encourage and attract talented, experience and and person (in case of expatriates the relevant details would be with respect to the country of his knowledgeable people as Non-Executive Directors of the $#.3.,J(@ Company. This approval will enable the Board to decide in future on any proposal for remunerating the Non-Executive Directors, Taking into consideration the size of the Company, the B.5.8B78G+#8+5"#[%)+08B+5.",#"H084.+#,+%-.+P#H508/[ 5"#[9.+ #,+ ="[+ c[+ `[+ J0H0"0%-80H>+ %-.+ ".)5#8)71797%7.)+ shouldered by him, the remuneration proposed to be Your Directors recommend the resolution set out in item No. 11 of paid is commensurate with the remuneration packages this Notice for approval of the members as a Special Resolution. paid to his similar level counterparts in other companies. The Directors who would be entitled to receive a commission may 7. Pecuniary relationship directly or indirectly with be deemed to be concerned or interested in this resolution. 14&( H$8"!,*( $#( #&/!1.$,04."( F.14( 14&( 8!,!3&#.!/( "�$,,&/<(.7(!,*(@ By Order of the Board Besides the remuneration proposed to be paid to Mr. K. V. Ramarathnam, he does not have any other pecuniary relationship with the Company or relationship Ajay Kadhao with any other managerial personnel and Directors. Company Secretary III. Other Information: J.G7)%.".B+I,[4.b 74, Ganesh Apartment, Opp. Sitaladevi Temple, Please refer to Other Information given in the explanatory statement for Item No. 9 of this Notice. ([f[J#0B>+=0-7H+'O.)%*>+=DH107Ui@@+@AN[ Date:.16th May, 2011.
12 Mahindra Ugine Steel Company Ltd.
DIRECTORS’ REPORT
The Directors present their Forty-eight Report together with the overall performance of the Company, in general and particularly audited accounts of your Company for the year ended 31st March, the steel business . 2011. During the year under review your Company suffered a net loss FINANCIAL RESULTS #,+ J)[E[SL+ 4"#".)+ 0)+ 4#H50".B+ %#+ 8.%+ 5"#[%+ #,+ J)+ i[NL+ 4"#".)+ + 'JD5..)+78+4"#".)* earned in the corresponding previous year. The gross income of the Company grew by 23.28% from Rs.1089.34 crores to BCDC@DD 2009-10 Rs.1342.91 crores. The earnings before other Income, Interest Gross Income 1342.91 1089.34 08B+ B.5".470%7#8+ '3aeQFC*+ ,#"+ %-.+ /.0"+ D8B."+ ".67.:+ :0)+ !"#[%+1.,#".+e8%.".)%+08B+Q.5".470%7#8 64.24 80.33 Rs.61.85 crores as compared to Rs.78.87 crores in the previous year. Less: Interest 42.39 40.83 Less: Depreciation 31.45 30.87 STEEL & RING BUSINESSES: !"#[%&'(#))*+1.,#".+F02 (9.60) 8.63 During the year under review, your Company sold 1,23,447 Less: Provision for Taxation tonnes of alloy steel products as compared to 1,21,654 tonnes sold in the previous year, registering a growth of around 1.5%. - Current Tax @ 1.00 Your Company registered sales revenue of Alloy and Steel U+]"78G.+a.8.[%+F02 (0.30) - products aggregating Rs. 749.79 crores for the year under review - Deferred Tax (3.33) 2.96 as compared to Rs. 617.61 crores of the previous year posting a !"#[%&'(#))*+0,%."+F02 (5.97) 4.67 growth of 21%. The rise in sales revenue is largely attributable to enriched product mix in the year 2010-11 as compared to that of a09084.+#,+5"#[%+1"#DG-%+,#":0"B+ the previous year. from earlier years 46.25 45.38 !"#[%+06079019.+,#"+C55"#5"70%7#8 40.28 50.05 Your Company also registered sales of 2785 tonnes of Ring 'a.0"78G+J04.)*+,#"+0+609D.+#,+J)[?i[M?+4"#".)+BD"78G+%-.+/.0"+ Less: Proposed Dividend on Equity under review as compared to sales of 983 tonnes for a value of Shares @ 3.25 Rs. 8.49 crores recorded in the previous year. (.))b+ F02+ #8+ Q767B.8B+ '.24.))+ ,#"+ During the year under review, the Company has stabilized the earlier year written back) (0.01) 0.55 production of the Continuous Mill. The Company is also expected Less: Transfer to General Reserves @ - %#+B."76.+1.8.[%+#,+9#:."+5#:."+4#)%+,"#H+).4#8B+-09,+#,+[8084709+ Balance Carried Forward to Balance /.0"+']n*+?@AAUA?>+#84.+%-.+".GD90%#"/+055"#609)+0".+78+5904.>+ Sheet 40.29 46.25 at an agreed rate from Wardha Power Company Limited, in DIVIDEND whose equity your Company has invested. The management continuously takes all efforts and initiatives to improve the In view of losses incurred during the year under review and to 6#9DH.>+609D.+0BB.B+5"#BD4%)>+5"#BD4%767%/>+.,[47.84/+08B+785D%+ conserve reserves for the future growth of the Company, your cost of production to maintain growth of the business. Q7".4%#")+B#+8#%+".4#HH.8B+08/+B767B.8B>+,#"+%-.+[8084709+/.0"+ 2010-11. Your Company had paid a dividend of Re. 1 per share STAMPINGS BUSINESS: ,#"+%-.+5".67#D)+[8084709+/.0"[ During the year under review, the sales volume of the Stampings PERFORMANCE 1D)78.))+#,+%-.+P#H508/+G".:+,"#H+E@>@AM+=F+'5".67#D)+/.0"*+ to 55,364 MT registering a growth of 10.70%. The sales value The Indian economy has maintained its growth momentum by for the Stampings business for the year under review was posting a 8.6% growth for the year under review. The alloy steel Rs. 473.49 crores as compared to Rs. 374.96 crores recorded in industry also recovered from the slow down of the previous year. the previous year, registering a growth of around 26%. The robust However, the recovery of the alloy steel industry was affected in growth witnessed by the Stampings business is on account of the second half of the year under review due to the sharp rise in various initiatives taken by the management to expand its cost of input raw material, power and fuel. The Company was business and, by exploiting the growth in the automobile industry. able to recover from its customers only part of the rise in these 4#)%)[+ ]D"%-.">+ BD.+ %#+ 78\0%7#80"/+ 08B+ 97\D7B7%/+ 5".))D".+ #8+ %-.+ F-.+G"#:%-+#,+%-.+T%0H578G)+1D)78.))+7)+.25.4%.B+%#+".H078+["H+ economy, the cost of borrowing witnessed rise and impacted the in the near future, as it has product orders in the pipeline for new
13 Mahindra Ugine Steel Company Ltd.
models of Mahindra & Mahindra Limited and Tata Motors Ltd. The DIRECTORS: !08%80G0"+!"#V.4%+7)+.25.4%.B+%#+)%0"%+#5."0%7#8+78+%-.+[8084709+ Mr. Anand Mahindra, Mr. R.R. Krishnan and Mr. S. Ravi, Directors, year 2011-12, which will further strengthen the business volumes retire by rotation at the ensuing Annual General Meeting and of the Stampings division. The Stampings Division is committed being eligible, offer themselves for re-appointment. to improve its performance by improving customer centricity, \D097%/+ 08B+ .,[47.84/[+ F-.+ )%0H578G)+ 1D)78.))+ 7)+ .25.4%.B+ %#+ Dr. Homi N. Sethna, Director resigned from the th 5#)%+1.%%."+5.",#"H084.+78+[8084709+/.0"+?@AAUA?+1/+50"%74750%78G+ Directorship of the Company with effect from 9 July, 2010. in the growth momentum of the automobile industry. Mr. M.R. Ramachandran, Director, ceased to the Director of the Company as he had expressed his desire not to seek MANAGEMENT DISCUSSION AND ANALYSIS REPORT: re-appointment at the last Annual General Meeting. The Board has A detailed analysis of the Company’s performance is mentioned placed on record its sincere appreciation of the services rendered by in the Management Discussion and Analysis Report, which forms Dr. Homi N. Sethna and Mr. M.R. Ramachandran during their part of this Annual Report. tenure as Directors of the Company. CORPORATE GOVERNANCE: The Board places on record its condolences for the sad demise th Your Company is committed to follow the best of the corporate of Dr. Homi N. Sethna, who has passed away on 5 September, governance practices and follows the same while conducting the 2010. affairs of the Company. A Report on Corporate Governance along Mr. Daljit Mirchandani and Mr. Nikhilesh Panchal were appointed :7%-+0+4."%7[40%.+,"#H+%-.+CDB7%#")+#,+%-.+P#H508/+".G0"B78G+%-.+ as Additional Directors of the Company with effect from compliance of conditions of Corporate Governance as stipulated 27th October, 2010 and 18th January, 2011 respectively and they under Clause 49 of the Listing Agreement forms part of the -#9B+#,[4.+D5%#+%-.+B0%.+#,+.8)D78G+C88D09+W.8."09+=..%78G[ Annual Report. The tenure of Mr. K.V. Ramarathnam as the Managing Director FINANCE: is upto on 4th May 2011. The Board acknowledges the long During the year under review, the liquidity position of the Company association of Mr. Ramarathnam with the Company and places was satisfactory. In-spite of spurt in cost of borrowing in the year on record its appreciation of the valuable services rendered by under review, your Company comfortably met its borrowing need him to the Company. for capital expenditure as well as for working capital requirements Mr. Uday Gupta, who is associated with the Company since 2008, through its bankers. 0)+%-.+P-7.,+32.4D%76.+I,[4."U+T%..9+Q767)7#8>+:0)+055#78%.B+0)+ th STOCK OPTIONS: an additional director of the Company with effect from 5 May 2011, by the Board of Directors at its meeting held on 27th April No Stock Options have been granted during the year under ?@AA+ 08B+ -.+ -#9B)+ #,[4.+ D5%#+ %-.+ B0%.+ #,+ %-.+C88D09+ W.8."09+ review. Meeting. The Board at the same meeting appointed Mr. Uday Details required to be provided under the Securities and Gupta as the Managing Director of the Company with effect 324-08G.+a#0"B+#,+e8B70+'3H59#/..+T%#4;+I5%7#8+T4-.H.+08B+ from 5th May, 2011, subject to approval of the members of the Employee Stock Purchase Scheme) Guidelines,1999 are set out Company. The terms and conditions including remuneration of in Annexure I to this Report. Mr. Uday Gupta as the Managing Director, stated in the notice of INDUSTRIAL RELATIONS: ensuing Annual General Meeting, are subject to the approval of the members and the Central Government, if required. The relations with the workers and their respective unions remained cordial. The Company has received Notices from Members under Section ?EL'A*+#,+%-.+P#H5087.)+C4%>+ASEN>+)7G87,/78G+%-.7"+78%.8%7#8+%#+ SAFETY, HEALTH AND ENVIRONMENTAL PERFORMANCE: propose the candidature of Mr. Daljit Mirchandani, Mr. Nikhilesh F-.+ P#H508/+ -0)+ 0+ B.[8.B+ 5#974/+ #8+ G.8."09+ -.09%->+ )0,.%/+ !084-09+ 08B+ ="[+ ^B0/+ WD5%0>+ ,#"+ %-.+ #,[4.+ #,+ Q7".4%#"+ #,+ %-.+ and environmental conservation through which every employee Company at the forthcoming Annual General Meeting. is responsible for the observance of the measures designed to DIRECTORS’ RESPONSIBILITY STATEMENT: prevent accidents, damage to health and to avoid environmental pollution. !D")D08%+%#+T.4%7#8+?AL'?CC*+#,+%-.+P#H5087.)+C4%>+ASEN>+%-.+ Board of Directors, based on the representations received from The Safety committee members comprising representatives %-.+I5."0%78G+=080G.H.8%+08B+0,%."+BD.+.8\D7"/>+4#8["H+%-0%+b of workers and executives from various departments meet periodically to review the situation. Detailed review is stated in '7*+ 78+ %-.+ 5".50"0%7#8+ #,+ %-.+ 088D09+ 044#D8%)>+ %-.+ 055974019.+ the Management Discussion Analysis report. accounting standards have been followed;
14 Mahindra Ugine Steel Company Ltd.
'77*+ %-./+ -06.>+ 78+ %-.+ ).9.4%7#8+ #,+ %-.+ 044#D8%78G+ 5#9747.)>+ discontinued acceptance of and renewal of deposits under the consulted the Statutory Auditors and these have been provisions of the Companies Act, 1956 read with Companies applied consistently and reasonable and prudent judgments 'C44.5%084.+#,+Q.5#)7%)*+JD9.)>+ASLE[ and estimates have been made so as to give a true and fair The Company has not made any loans/advances and investments st view of the state of affairs of the Company as at 31 March, which are required to be disclosed in the Annual Accounts of the 2011 and of the loss of the Company for the year ended on Company pursuant to Clause 32 of the Listing Agreement. that date; CORPORATE SOCIAL RESPONSIBILITY (CSR): '777*+ 5"#5."+08B+)D,[47.8%+40".+-0)+1..8+%0;.8+,#"+%-.+H078%.8084.+ of adequate accounting records in accordance with the Your Company is committed to its social responsibilities and provisions of the Companies Act, 1956 for safeguarding the always takes initiatives to serve the society at large with its best assets of the Company and for preventing and detecting possible efforts. The Company is a part of Mahindra Group, fraud and other irregularities; which is known for maintaining high standards of CSR. Your Company, during the year under review, has undertaken various '76*+ %-.+088D09+044#D8%)+-06.+1..8+5".50".B+#8+0+G#78G+4#84."8+ social initiatives. Steel division has undertaken several CSR basis. activities, by entering into contract with the M.K.Foundation, HOLDING COMPANY: Pune for development of teaching technology in J. C. Mahindra The shareholding of Mahindra & Mahindra Limited in the Company Memorial School at Khopoli, arranged Energy saving programme is 1,64,66,789 equity shares of Rs.10/- each representing 50.69% in School by Tata Energy Club, conducted health check up Camp/ of the paid up capital of the Company. awareness programme on serious disease, engaged in plantation of trees, arranged free check up for old people at old age home SUBSIDIARIES: once in a month. st The Company had no subsidiary as on 31 March, 2011. The Stampings division has undertaken various CSR initiatives AUDITORS: like providing educational aid for computer literacy and to create =&)[+ Q.9#7%%.+ _0);78)+ m+ T.99)+ 'Q_T*>+ P-0"%.".B+ C44#D8%08%)>+ awareness by organizing educational program and activities for retire as the Statutory Auditors of the Company at the ensuing villagers on Health and Education. Distribution of plants seeds to Annual General Meeting and have given their consent for re- villagers, for plantation near school, temples etc., with an objective appointment as the Statutory Auditors of the Company. The of creating awareness amongst the people about importance of Shareholders will be required to elect Auditors for the current year environment and sustainability. The MUSCO Stampings, Kanhe 08B+[2+%-.7"+".HD8."0%7#8[ has won various prestigious awards in garden competitions including Pune and Pimpri – Chinchwad Municipal Corporation C)+ ".\D7".B+ 5D")D08%+ %#+ %-.+ 5"#67)7#8)+ #,+ T.4%7#8+ ??i+ 'Aa*+ #,+ for creating awareness amongst the locals about importance of the Companies Act, 1956, the Company has obtained a written green environment. These initiatives were part of Employees’ 4."%7[40%.+,"#H+%-.+01#6.+0DB7%#")+5"#5#).B+%#+1.+".U055#78%.B+ T#4709+I5%7#8)+!"#G"0H+'3TI!*+#,+%-.+=0-78B"0+W"#D5[ to the effect that their re-appointment, if made, would be in 4#8,#"H7%/+:7%-+%-.+97H7%)+)5.47[.B+78+%-.+)07B+).4%7#8[ SUSTAINABILITY INITIATIVES: Your Company embarked on the sustainability journey in COST AUDIT REPORT: November 2007 as a part of the Mahindra Group’s Sustainability F-.+ P#H508/+ -0)+ 055#78%.B+ ="[+ c7)-#".+ a-0%70>+ 0+ \D097[.B+ Reporting, and over the last four years has laid a foundation for practicing Cost Accountant holding valid Membership No.8241 developing a sustainable enterprise. Conscious efforts have been ,#"+ %-.+ [8084709+ /.0"+ ?@@SUA@+ :7%-+ %-.+ 055"#609+ #,+ %-.+ P.8%"09+ made to understand the challenges of business growth from a multi Government, Ministry of Corporate Affairs, New Delhi to carry dimensional perspective i.e. consider the impact of business on #D%+4#)%+0DB7%+#,+)%..9+5908%[+F-.+P#)%+CDB7%#"+-0)+[9.B+%-.+P#)%+ the environment, responsibility towards the communities in which th CDB7%+J.5#"%+,#"+%-.+[8084709+/.0"+?@@SUA@+#8+N August, 2010 the Company operates besides looking at economic progress. to the Central Government, Ministry of Corporate Affairs, New QD"78G+%-.+/.0"+%-.+%"759.+1#%%#H+978.+5.",#"H084.+,#"+%-.+[8084709+ Q.9-7[+ F-.+ BD.+ B0%.+ ,#"+ [978G+ %-.+ )07B+ P#)%+ CDB7%+ J.5#"%+ :0)+ year 2009-10 was published as a part of the Mahindra Group’s th 27 September, 2010. Sustainability Report, in accordance with the latest guidelines PUBLIC DEPOSITS AND LOANS/ADVANCES: of the internationally accepted Global Reporting Initiative or the An amount of Rs.1.81 Lakhs in the aggregate consisting of GRI standards and like the previous 2 reports, this report was AM+ H0%D".B+ [2.B+ B.5#)7%)+ -0B+ ".H078.B+ D84907H.B+ 0)+ 0%+ externally assured by E&Y with an A+ rating and GRI checked. 31st March, 2011. The Company had, from 1st May, 2005 In order to ensure that the progress on your triple bottom line
15 Mahindra Ugine Steel Company Ltd.
performance is focused, various sustainability project were 1956 and rules framed thereunder. Any shareholder interested 7B.8%7[.B>+59088.B+m+.2.4D%.B+,#"+".BD478G+.8."G/+4#8)DH5%7#8>+ in obtaining a copy of the Statement may write to the Company resource consumption and GHG emissions, and commitments Secretary of the Company. for making business processes more conducive to sustainable ENERGY CONSERVATION, TECHNOLOGY ABSORPTION development were taken. AND FOREIGN EXCHANGE EARNINGS AND OUTGO: QD"78G+%-.+[8084709+/.0"+?@@SUA@>+0+P0"1#8+,##%U5"78%78G+.2."47).+ Particulars required to be disclosed under the Companies was undertaken to inventorize GHG emissions from your business 'Q7)49#)D".+ #,+ !0"%74D90")+ 78+ %-.+ J.5#"%+ #,+ a#0"B+ #,+ Q7".4%#")*+ operations, under scope I, II & III emissions as per internationally Rules, 1988 are set out in Annexure II to this Report. accepted standards. This has enabled development of baseline data on emissions and undertake initiatives towards improving ACKNOWLEDGEMENTS: carbon intensive processes that offer reduction potential. This will Your Directors wish to express their appreciation of the continued be an ongoing exercise in reducing GHG intensity of our products. support and co-operation received from the Banks, Financial PARTICULARS OF EMPLOYEES: Institutions, Government Departments, Vendors, Customers and Employees of the Company. The Company had 4 employees who were employed throughout %-.+[8084709+/.0"+D8B."+".67.:+08B+:-.".+78+".4.75%+#,+".HD8."0%7#8+ #,+ 8#%+ 9.))+ %-08+ J)[+ N@>@@>@@@+ BD"78G+ %-.+ [8084709+ /.0"+ .8B.B+ For and on behalf of the Board 31st March, 2011 or not less than Rs. 5,00,000 per month during any part of the said year. However, as per the provisions of ).4%7#8+?AS'A*'1*'76*+#,+%-.+P#H5087.)+C4%>+ASEN>+%-.+Q7".4%#")R+ Keshub Mahindra Report and Accounts are being sent to all the shareholders of the Chairman Company excluding the Statement of particulars of employees th 0)+".\D7".B+5D")D08%+%#+T.4%7#8+?AL'?C*+#,+%-.+P#H5087.)+C4%>+ Mumbai: 27 April, 2011.
16 Mahindra Ugine Steel Company Ltd.
ANNEXURE I TO THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31st MARCH, 2011 e8,#"H0%7#8+%#+1.+B7)49#).B+D8B."+%-.+T.4D"7%7.)+08B+324-08G.+a#0"B+#,+e8B70+'3H59#/..+T%#4;+I5%7#8+T4-.H.+08B+3H59#/..+T%#4;+ Purchase Scheme) Guidelines 1999:
'0* Options granted 10,98,000 '1* The Pricing Formula 1st Tranche 2nd Tranche Discount of 15% on the Discount of 15% on the average Price preceding the average Price preceding the )5.47[.B+ B0%.+ UARth August )5.47[.B+ B0%.+ U?ith October 2006 2007 Average Price: Average of the daily high and low of the prices for the Company’s Equity Shares quoted on Bombay Stock 324-08G.+(7H7%.B+BD"78G+%-.+AE+B0/)+5".4.B78G+%-.+)5.47[.B+ date. F-.+ )5.47[.B+ B0%.b+ Q0%.+ #8+ :-74-+ %-.+ J.HD8."0%7#8+ Committee decided to grant options to eligible employees of the Company. '4* Options vested 6,91,875 Options stand vested on 31st March, 2011. 'B* Options Exercised Nil '.* The Total number of shares arising as a result of exercise of Nil Options ',* Options Lapsed 3,86,000 'G* Variation of terms of Options At the Annual General Meeting held on 26th July, 2007, the Company has passed a special resolution to provide for ".4#6."/+#,+]"78G.+a.8.[%+F02+,"#H+.H59#/..)[+C44#"B78G9/+ the terms of options of ESOS scheme of the Company were 60"7.B+)#+0)+%#+.8019.+%-.+P#H508/+%#+".4#6."+]"78G.+a.8.[%+ Tax from employees. '-* Money realised by exercise of Options Nil '7* Total number of Options in force as on 31.03.11 7,12,000 'V* Employee-wise details of Options granted to: '7*+ T.87#"+=080G."709+5.")#88.9[ As per Statement. '77*+ C8/+#%-."+.H59#/..+:-#+".4.76.)+0+G"08%+78+08/+#8.+/.0"+ None of Option amounting to 5% or more of Option granted during that year. '777*+ eB.8%7[.B+ .H59#/..)+ :-#+ :.".+ G"08%.B+ #5%7#8>+ BD"78G+ None any one year, equal to or exceeding 1% of the issued 4057%09+'.249DB78G+#D%)%08B78G+:0""08%)+08B+4#86.")7#8)*+ of the company at the time of grant. ';* Q79D%.B+ 30"878G)+ !."+ T-0".)+ '3!T*+ 5D")D08%+ %#+ 7))D.+ #,+ J)[+'A[RM* shares on exercise of option calculated in accordance with C44#D8%78G+T%08B0"B+'CT*+?@+Q30"878G)+5."+T-0".R[
17 Mahindra Ugine Steel Company Ltd.
'9* Where the company has calculated employee compensation The Company has calculated the employee compensation cost using the intrinsic value of the stock options, the difference cost using the intrinsic value of stock options. Had the fair between the employee compensation cost so computed value method been used, in respect of stock options granted, and the employee compensation cost that shall have been the employee compensation cost would have been higher by recognized if it had used the fair value of the Options, shall be Rs. 0.06 crores. Loss after tax would have been higher by B7)49#).B[+F-.+7H504%+#,+%-7)+B7,,.".84.+#8+5"#[%)+08B+#8+3!T+ Rs. 0.04 crores and both the basic and diluted earnings per of the Company shall also be disclosed. share would have been higher by Rs. 0.01. 'H* Weighted – average exercise prices and weighted average - fair values of options shall be disclosed separately for options whose exercise price either equals or exceeds or is less than the market price of the stock. '8* C+B.)4"75%7#8+#,+%-.+H.%-#B+08B+)7G87[408%+0))DH5%7#8)+D).B+ - during the year to estimate the fair values of options, including the following weighted – average information : '7*+ "7);U,"..+78%.".)%+"0%.> - '77*+ .25.4%.B+97,.> - '777*+ .25.4%.B+6#90%797%/> - '76*+ .25.4%.B+B767B.8B)>+08B - '6*+ %-.+5"74.+#,+%-.+D8B."9/78G+)-0".+78+H0";.%+0%+%-.+%7H.+#,+ - option grant. During the year the Company has not granted any options to employees or senior managerial personnel.
STATEMENT ATTACHED TO ANNEXURE I TO THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH, 2011. ;!8&($7(L&,.$#(A!,!3&#.!/(6�$,0(1$(F4$8(L1$-?(M"1.$,0(4!%&()&&,(3#!,1&' M"1.$,0(3#!,1&'($,( 18.08.06 Mr.K.V.Ramarathnam 100000 Mr. Deepak Dheer* 75000 Mr.Hemant Luthra 125000 Mr.R.R.Krishnan 15000 Mr.M.R.Ramachandran* 15000 Dr.H.N.Sethna* 15000 Mr.S.Ravi 15000 Mr. Rajeev Dubey* 15000 Mr. N.V.Khote* 15000 *ceased to be director of the Company.
18 Mahindra Ugine Steel Company Ltd.
ANNEXURE II
STATEMENT PURSUANT TO SECTION 217(1)(e) OF THE COMPANIES ACT, 1956 READ WITH THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 AND FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31ST MARCH, 2011.
A. CONSERVATION OF ENERGY
( N!J( 9,*(-$,0&#%!1.$,(8&!02#&0(1!?&,=
+ + A[+ _7G-+9DH78#D)+97G-%+[%%78G)+-06.+1..8+78%"#BD4.B+78+a9##H78G+=799+a0/+'a(=*+".590478G+AiM+KDH1."+#,+i@@+:0%%+)#B7DH+ vapor lamps, with 47 numbers of metal halides lamps.
+ + ?[+ `0"7019.+]".\D.84/+Q"76.+'`]Q*+78)%099.B+78+,D"804.+08B+#8.+4#H1D)%7#8+19#:."+78+a(=[
+ + M[+ I8.+M@+=`C+%"08),#"H."+9/78G+7B9.+:0)+04%760%.B+,#"+)-0"78G+%-.+9#0B+:7%-+#%-."+%:#+%"08),#"H.")+%#+7H5"#6.+.,[47.84/+ and saving no load losses.
4. Keeping switch yard secondary voltage on 22KV within ± 5% to save energy consumption.
( N)J( O''.1.$,!/(.,%&018&,10(!,'("#$"$0!/0<(.7(!,*<()&.,3(.8"/&8&,1&'(7$#(#&'2-1.$,($7 H$,028"1.$,($7(9,*=
+ + 38."G/+0DB7%+4#8BD4%.B+1/+F3Je+'F-.+38."G/+J.).0"4-+e8)%7%D%.*>+!"#V.4%)+7B.8%7[.B+,#"+7H59.H.8%0%7#8+78+[8084709+/.0"+ 2011-12.
( N-J( P8"!-1($7(14&(8&!02#&0(1!?&,(!1(N!J(Q(N)J(!)$%&(7$#(#&'2-1.$,($7(&,*(-$,028"1.$,(!,'(-$,0&K2&,1(.8"!-1($,(14&( -$01($7("#$'2-1.$,($7(3$$'0=
There was overall energy saving of around 95390 Kwh during the year due to various energy saving initiatives and measure taken by the Company as stated above. This has resulted in saving of energy cost to the Company.
19 Mahindra Ugine Steel Company Ltd.
N'J( R$1!/(&,*(-$,028"1.$,(!,'(&,*(-$,028"1.$,("&#(2,.1($7("#$'2-1.$,(!0("&#(5$#8MO($7(14&(O,,&:2#&(1$(14&(E2/&0( .0(!0(7$//$F0=@
FORM A
Financial Year 2010-2011 Financial Year 2009-2010
STEEL STAMPINGS TOTAL STEEL STAMPINGS TOTAL
A POWER & FUEL CONSUMPTION
1 ELECTRICITY
a) PURCHASED
^KeFT+'cO_* 186,700,927 15,310,590 202,011,517 163,573,121 14,264,920 177,838,041
FIFC(+C=I^KF+'J)* 1,051,628,005 77,111,331 1,128,739,336 835,806,603 65,888,449 901,695,053
JCF3&^KeF+'J)* 5.63 5.04 5.59 5.11 4.62 5.07
b) OWN GENERATED (KWH) 49,048 1,588,241 1,637,289 57,698 926,814 984,512
2PIC(+]IJ+WCTe]e3J+'+=F* 10,419 N.A 10,419 7,311 N.A 7,311
FIFC(+C=I^KF+'J)* 58,393,082 N.A 58,393,082 33,559,398 N.A 33,559,398
JCF3&^KeF+'J)* 5,604 N.A 5,604 4,590 N.A 4,590
3 FURNACE OIL K.LTRS 19,991 N.A 19,991 16,908 N.A 16,908
FIFC(+C=I^KF+'J)* 502,158,584 N.A 502,158,584 370,214,069 N.A 370,214,069
JCF3&^KeF+'J)* 25,119 N.A 25,119 21,896 N.A 21,896
4IF_3J+]^3(+Ie(+'([Q[I[*+c[(FJT 404 N.A 404 323 N.A 323
FIFC(+C=I^KF+'J)* 16,890,706 N.A 16,890,706 11,702,798 N.A 11,702,798
JCF3&^KeF+'J)* 41,809 N.A 41,809 36,232 N.A 36,232
B) CONSUMPTION PER UNIT OF PRODUCTION
1!JIQ^PFT+'=F*+o 126,232 55,305 181,537 122,637 50,522 173,159
23(3PFJePeFn+'cO_&=F* 1,479 306 1,122 1,334 301 1,033 Total for the Plant
3]^JKCP3+Ie(+'c[(FJT&=F* 0.158 N.A 0.110 0.138 N.A 0.098 Total for the Plant
4PIC(+]IJ+WCTe]e3J+'+=F&=F* 0.083 N.A 0.057 0.060 N.A 0.042 Total for the Plant
5IF_3J+]^3(+Ie(+'c[(FJT&=F* 0.0032 N.A 0.0022 0.0026 N.A 0.0019 Total for the Plant
6FIFC(+]^3(+']^JKCP3+Ie(p([Q[I[* 0.162 N.A 0.112 0.141 N.A 0.100 'c[(7%".)+&=F*
* Indicates in house production only. 20 Mahindra Ugine Steel Company Ltd.
B. TECHNOLOGY ABSORPTION: + '.*+ 3,,#"%)+H0B.+78+%.4-8#9#G/+01)#"5%7#8+0)+5."+]#"H+a+#,+%-.+C88.2D".+%#+%-.+JD9.)+7)+0)+,#99#:)b
FORM B RESEARCH & DEVELOPMENT (R&D) DT( L"&-.[-(!#&!0(.,(F4.-4(E(Q(U(-!##.&'($21()*(14&(-$8"!,*('2#.,3(14&(*&!#(BCDC@DD(!,' BT( >&,&[10('&#.%&'(!0(#&02/1($7(14&(0!8&=@
Sr. Product & process improvement >&,&[10('&#.%&' No.
1. Installed Oxygen measurement CELOX equipment at Arc Reduction in aluminum consumption thereby reduction in Furnace. cost.
2. Conveyor system for copper and nonferrous material Increase in shredded scrap usage and lower copper segregation from shredded scrap. levels in steel.
3 Developed micro alloyed stainless steel for power plant Enabled the entry into niche product market. turbine blades.
4 Developed bearing steels with low volume fraction of Enabled to meet requirement of global customers. inclusions. Developed new global customer.
5 Developed homogenization treatment for ingots for tool Improved microstructure and impact properties thereby steel dies application. improving product quality.
6=#B7[.B+4##978G+50%%."8+78+PP+19##H)+,#"+H.B7DH+40"1#8+ Improved surface quality of product and its marketability. nickel steel grades.
7=#B7[.B+-.0%+%".0%H.8%+5"#4.))+,#"+#79+[.9B+)%..9+G"0B.)[ Improved the ability of machining the product thereby improving the manufacturing process.
8 Networking with Premier Institutes for Research & This has enabled to develop new products, improve and Development. control of waste and improve quality of products.
VT( 5212#&(6/!,($7(!-1.$,=@ + #+ P#86.")7#8+#,+3aF+,DH.)+.2%"04%7#8+BD)%+78%#+50678G+19#4;)[ + #+ FD8B7)-+:0%."+H#B.978G+%#+7H5"#6.+/7.9B+08B+)%..9+\D097%/[
+ #+ =#B7[40%7#8+#,+)D95-7B.+7849D)7#8+H#"5-#9#G/+78+H74"#+099#/.B+)%..9+G"0B.[ + #+ Q.6.9#5+9#:+#2/G.8+1.0"78G+)%..9)+,#"+G9#109+0559740%7#8)[
+ #+ e8)%099+5"7H0"/+)90G+B.408%0%7#8+)/)%.H+%#+7H5"#6.+)%..9+49.08978.))[
+ #+ e8)%099+#8978.+D9%"0)#874+%.)%78G+H04-78.+,#"+B.6.9#578G+8.:+4D)%#H.")[ + #+ Q.6.9#5+8.:+)-"#DB78G+)/)%.H+,#"+78G#%+40)%78G+%#+".BD4.+#2/G.8+9.6.9)[
+ #+ =#B7,/+,##%+"#99.")+78+4#8%78D#D)+40)%78G+H04-78.+'PP*+%#+7H5"#6.+78%."809+\D097%/+#,+PP+5"#BD4%[ + #+ Q.6.9#5+10,\.+,#"+%D8B7)-+%#+7H5"#6.+49.08978.))+#,+)%..9[
+ #+ ]D"%-."+7H5"#6.H.8%+78+H74"#)%"D4%D".+78+_AM+%#+.8-084.+B7.+97,.[ + #+ e8)%099+)90G+B.%.4%7#8+)/)%.H+%#+7H5"#6.+78%."809+\D097%/+#,+)%..9[
21 Mahindra Ugine Steel Company Ltd.
4. Expenditure on R&D:
BCDC@DD 2009-10 (Rs. in Lacs) 'J)[+78+(04)* a) Capital @ - b) Recurring 148 105 c) Total 148 105 d) Total R&D expenditure as percentage of total turnover 0.110% 0.097%
WT( R&-4,$/$3*(O)0$#"1.$,<(O'!"1!1.$,(!,'(P,,$%!1.$, + '3,,#"%)+78+1"7.,+%#:0"B)+%.4-8#9#G/+01)#"5%7#8>+0B05%0%7#8+08B+788#60%7#8+08B+1.8.[%)+B."76.B+0)+0+".)D9%+#,+%-.+01#6.+.,,#"%)[*
Sr. R&-4,$/$3* >&,&[10 No. 1 Commissioning of CELOX equipment Reduction in aluminium consumption and improved productivity. 2 Commissioning of Conveyor system. Increase usage of shredded scrap.
XT( P8"$#1($7(R&-4,$/$3*(7$#(14&(/!01([%&(*&!#0=(Nil C. FOREIGN EXCHANGE EARNINGS AND OUTGO The Company continues to strive to improve its export earnings. Further details in respect of exports are set out elsewhere in the Report.
Particulars with regard to Foreign Exchange Earnings and outgo are given in the notes to Accounts.
For and on behalf of the Board
Keshub Mahindra Chairman
Mumbai: 27th April, 2011.
22 Mahindra Ugine Steel Company Ltd.
MANAGEMENT DISCUSSION AND ANALYSIS (MDA)
COMPANY OVERVIEW Mahindra Ugine Steel Company Limited (MUSCO) operates in two business segments: Maharashtra. ANALYSIS OF STEEL AND RINGS (BEARING RACES) sales. BUSINESS SEGMENT Industry Structure and Development growth. PERFORMANCE, OPPORTUNITIES AND OUTLOOK Steel and Rings (Bearing Races) business Performance
23 Mahindra Ugine Steel Company Ltd.
tap the potential business opportunities. THREATS AND RISKS Opportunities and Outlook engineering and energy and the Company is well poised to Strategy Summary strategy is outlined below:
24 Mahindra Ugine Steel Company Ltd.
ANALYSIS OF STAMPINGS BUSINESS SEGMENT Industry Structure and Development PERFORMANCE, OPPORTUNITIES AND OUTLOOK Performance THREATS AND RISKS Opportunities and Outlook Strategy Summary strategy is outlined below: all plants
25 Mahindra Ugine Steel Company Ltd.
FINANCIAL PERFORMANCE Summary of Financial Performance
Steel Stampings Total HEALTH, SAFETY AND ENVIRONMENT Safety Health Material development in Human Resources / Industrial Relations
26 Mahindra Ugine Steel Company Ltd.
Training & Development Relationship with Mahindra Group Performance Management System Communication Internal Control Systems and their adequacy Our Endeavour – Help our stakeholders ‘RISE’ “We will challenge conventional thinking and innovatively use all our resources to drive positive change in the lives’ of our stakeholders and communities across the world, to enable them to Rise. accepting no limits, alternative thinking, and driving positive change. Cautionary Statement Synergies with Parent Synergies within Mahindra Systech
27 Mahindra Ugine Steel Company Ltd.
CORPORATE GOVERNANCE REPORT Company’s philosophy on code of Corporate Governance Khaitan & Co., Advocates & Solicitors, in which Mr. Nikhilesh Panchal, Non-Executive Director is a partner, amounts to The Company’s philosophy on Corporate Governance is based Rs. 84,25,225/-. on fair and transparent governance and disclosure practices. The Company has infused the philosophy of Corporate Governance Mr. Harsh Kumar, Non-Executive Director of the Company, in all its activities so as to conduct the affairs of the company in is the Managing Director of Mahindra Intertrade Limited, a ,07"8.))+%#+099+)%0;.-#9B.")+08B+%-0%+7%)+5#9747.)+1.8.[%+0+G".0%."+ subsidiary of M&M and he draws remuneration from it. number of stakeholders. The Company’s essential character Apart from the above and the reimbursement of expenses revolves around values based on transparency, integrity, incurred in the discharge of their duties and the remuneration ethics, professionalism and accountability. The Company has that these Directors would be entitled to under the Companies :.99+B.[8.B+P#B.)+#,+P#8BD4%+,#"+7%)+.H59#/..)+0)+:.99+0)+7%)+ Act, 1956 as Non-Executive Directors, none of the Directors Directors. Both these codes are available on the website of the and Independent Directors, have any other material pecuniary Company. The Company makes prompt, complete and accurate relationship or transaction with the Company, its Promoters, B7)49#)D".)+ D8B."+ %-.+ 055974019.+ 90:)+ 01#D%+ 7%)+ [8084709)>+ its Directors, its Senior Management, its holding Company, shareholding and other material information for knowledge of its and its associates which, in their judgment, would affect their stakeholders. The corporate structure, business and disclosure independence. The Independent Directors are not related practices at the Company are in complete adherence to its to Promoters or senior management of the Company. The Corporate Governance Philosophy. Directors of the Company are not inter-se related to each As required under the Listing Agreement, a report on compliance other. with the Code of Corporate Governance is given below. The Senior Management have made disclosures to the PT( >MOEU(M5(UPE9HRMEL(@(H$,01.121.$,(!,'(H$8"$0.1.$, a#0"B+ 4#8["H78G+ %-0%+ %-.".+ 0".+ 8#+ H0%."709>+ [8084709+ 08B& or commercial transactions between them and the Company The Board of Directors of your Company comprises of :-74-+ 4#D9B+ -06.+ 5#%.8%709+ 4#8\74%+ #,+ 78%.".)%+ :7%-+ %-.+ twelve directors and the composition of the Board is in Company at large. accordance with the requirements of the Clause 49 of the Listing Agreement. All Directors have extensive experience, A. Composition of Board knowledge and expertise in their respective functional areas. The total strength of the Board is Twelve Directors comprising The Company has a Non-Executive Chairman and the a Managing Director, a Non-Executive Chairman, four Non- 8DH1."+#,+e8B.5.8B.8%+Q7".4%#")+4#H5"7).)+[,%/+5."4.8%+#,+ Independent Non-Executive Directors and Six Independent the total number of Directors and the number of Non-Executive Non-Executive Directors. All Directors including Independent Q7".4%#")+ 7)+ H#".+ %-08+ [,%/+ 5."4.8%+ #,+ %-.+ %#%09+ 8DH1."+ #,+ Q7".4%#")+ 0".+ 5"#,.))7#809)+ 78+ %-.7"+ ".)5.4%76.+ [.9B)+ :7%-+ Directors. The Managing Director along with CEO and the expertise and experience in general corporate management, Key Management Personnel of the Company, manage the [8084.>+ 108;78G+ 08B+ #%-."+ 0997.B+ [.9B)[+ F-.+ %.8D".+ #,+ day-to-day affairs of the Company. The Managing Director Mr. K.V. Ramarathnam, Managing Director of the Company functions under the supervision and control of the Board. is upto 4th May, 2011. The Board at its meeting held on 27th April, 2011, has appointed Mr. Uday Gupta as the Managing The Chairman and the Vice-Chairman of the Company, Director with effect from 5th May, 2011. though professional Directors in their own individual capacities belong to the promoter group of the holding The names and categories of Directors, the number of 4#H508/+=0-78B"0+m+=0-78B"0+(7H7%.B+'=m=*[+="[+_.H08%+ Directorships and Committee positions held by them in Luthra, Non-Executive Director of the Company, is in the the Companies are given below. None of the Directors on whole time employment of M&M, and draws remuneration the Board is a Member of more than 10 Committees and from it. Mr. R. R. Krishnan, a Non-Executive Director of the P-07"H08+#,+H#".+%-08+E+P#HH7%%..)+'0)+)5.47[.B+78+P90D).+ Company is a consultant with M&M and draws consultancy/ 49 of the Listing Agreement), across all the companies in advisory fees from it. Professional fees for the year paid to which he/she is a Director.
28 Mahindra Ugine Steel Company Ltd.
The Constitution of the Board as on 31st March, 2011 is as under:
Directors H!1&3$#* Total number Total number of Directorships of of Committee Chairmanships of Public Companies as Memberships of Committees of Public on 31st March, 2011.* Public Companies as Companies as on on 31st March, 2011. + 31st March, 2011.+ ;$,(@(9:&-21.%& Mr. Keshub Mahindra - Chairman Non Independent 1 1 6 Mr. Anand G. Mahindra -Vice Chairman Non Independent 1 Nil 8 Mr. Hemant Luthra Non independent 2 Nil 7 Mr. R.R.Krishnan Non Independent 2 1 2 Mr. Harsh Kumar Non Independent Nil Nil 4 Mr. S. Ravi Independent 6 2 8 Mr. Manoj Kumar Maheshwari Independent 4 Nil 6 Mr. Sanjiv Kapoor Independent 5 5 6 Ms. Sarojini S. Dikhale '8#H78..+#,+(eP* Independent Nil Nil 1 Mr. Daljit Mirchandani ':[.[,[+?LUA@U?@A@* Independent 3 1 2 Mr. Nikhilesh Panchal ':[.[,[+ARU@AU?@AA* Independent 1 Nil 2 Executive Mr. K.V. Ramarathnam - Managing Director Non Independent 2 1 2 * Excludes Directorships/membership in Private Companies, Foreign Companies, Companies registered under Section 25 of the Companies Act 1956, trusts and Government Bodies but includes Directorships in Mahindra Ugine Steel Company Limited. + Committees considered are Audit Committee and Shareholders/Investors’ Grievance Committee, including in Mahindra Ugine Steel Company Limited.
B. Board Procedure exposure limits, compliance reports of all laws applicable A detailed Agenda folder is sent to each Director in advance to the Company, as well as steps taken by the Company to of Board and Committee Meetings. To enable the Board rectify instances of non-compliances if any, review of major to discharge its responsibilities effectively, the Managing legal issues, adoption of quarterly/half-yearly/annual results, Director briefs the Board at every Meeting on the overall )7G87[408%+901#D"+7))D.)>+%"08)04%7#8)+5."%07878G+%#+5D"4-0).& performance of the Company, followed by presentations disposal of property, major accounting provisions and write- by other Senior Executives of the Company. A detailed offs, corporate restructuring, Minutes of Meetings of the functional report is also placed at Board Meetings. The Board Audit and other Committees of the Board, information on also inter alia reviews strategy and business plans, annual ".4"D7%H.8%+#,+I,[4.")+VD)%+1.9#:+%-.+a#0"B+9.6.9>+7849DB78G+ operating and capital expenditure budgets, investment and %-.+P#H597084.+I,[4."[
29 Mahindra Ugine Steel Company Ltd.
HT( ;28)&#( $7( >$!#'( A&&1.,30<( !11&,'!,-&( #&-$#'( $7( 14&( During the year Mr. Daljit Mirchandani and Mr. Nikhilesh U.#&-1$#0(!1(A&&1.,30($7(14&(>$!#'(!,'(!1(14&(/!01(O,,2!/( Panchal were appointed as Additional Directors of the Y&,&#!/(A&&1.,3T Company. Their appointment, as Directors liable to retire Five Meetings of Board of Directors were held during the year by rotation, is proposed at the forthcoming annual general 1st April, 2010 to 31st March, 2011 on the following dates: H..%78G[+F-./+-#9B+#,[4.+D5+%#+%-.+B0%.+#,+%-.+,#"%-4#H78G+ Annual General Meeting. Notices have been received th th - 29 April, 2010 - 25 January, 2011 ,"#H+=.H1.")+5"#5#)78G+%-.7"+408B7B0%D".+,#"+%-.+#,[4.+#,+ - 27th July, 2010 - 21st March, 2011 Director at the ensuing Annual General Meeting. - 27th October, 2010 Further, Mr. Uday Gupta was appointed as an additional th The gap between two Meetings did not exceed four months. director of the Company with effect from 5 May, 2011 and These meetings were well attended by Directors. -#9B)+ #,[4.+ D5%#+ %-.+ B0%.+ #,+ ,#"%-4#H78G+ C88D09+ W.8."09+ Meeting. + F-.+ ]#"%/+ M+ ).6.8%-+C88D09+ W.8."09+ =..%78G+ 'CW=*+ :0)+ held on 27th July, 2010. Brief resume of these Directors are presented below: The attendance of the Directors at these Meetings is as Mr. Daljit Mirchandani under: Mr. Daljit Mirchandani was appointed as an Additional Director of the Company with effect from 27th October, 2010. Director Number Attendance th of Board at the last Mr. Daljit Mirchandani, born in Karachi on October 26 1947, A&&1.,30( AGM is a Graduate Engineer from Birla Institute of Technology. Attended Mr. Mirchandani began his career in 1971 as Graduate Mr. Keshub Mahindra 2 No Trainee Engineer, in 1992 and rose to the position of Mr. Anand G. Mahindra 4 Yes 32.4D%76.+ Q7".4%#"+ 78+ c7"9#);0"+ I79+ 38G78.)>+ %-.+ \0G)-75+ Mr. K.V.Ramarathnam 5 Yes company of the Kirloskar Group. Between 1992 and 1997, Dr. H.N.Sethna* - No ,#"+%-.+c7"9#);0"+W"#D5>+-.+).%+D5+%-.+[")%+78+0+;78B>+!7G+e"#8+ Mr. M.R. Ramachandran** 2 No plant with a capacity of 500 thousand ton integrated to a Mr. Hemant Luthra 4 Yes state -of- the-art Foundry with a capacity of 60 thousand tons Mr. R.R.Krishnan 5 Yes per annum. Mr. S. Ravi 2 No In 1998, he joined Ingersoll-Rand India as the Chairman and Mr. Manoj Kumar Maheshwari 4 Yes Managing Director and retired in 2008. In 2005, he was the Mr. Harsh Kumar 5 Yes Chairman of the Karnataka State Council of the Confederation Mr. Sanjiv Kapoor 3 Yes #,+ e8B708+ e8BD)%"7.)+ 'Pee*>+ 08B+ 78+ ?@@L+ :0)+ 8#H780%.B+ 1/+ Ms. Sarojini S. Dikhale the CII to be the Chairman of the Task Force formed by the 'K#H78..+#,+(eP* 5 Yes Ministry of Agriculture, to examine and recommend policy Mr. Daljit Mirchandani*** 2 NA interventions and set technical standards for the formation Mr. Nikhilesh Panchal**** 2 NA of the Cold Chain Infrastructure in India for Fresh Fruits and Vegetables. Implementation of these recommendations has * resigned as director with effect from 9th July, 2010. been initiated by the Ministry of Agriculture. Presently he is th ** retired as director with effect from 27 July, 2010. working on the development of a scalable model in the space *** appointed as additional director with effect from 27th October, of primary and secondary education for the poorest of the 2010. poor in Rural India. **** appointed as additional director with effect from 18th January, He serves on the advisory and statutory Board of various 2011. Companies in the space of Bio Fuels, Infrastructure Development, Infrastructure Finance, Forgings and a MNC. UT( U.#&-1$#0(0&&?.,3(!""$.,18&,1Z#&@!""$.,18&,1 Mr. Daljit Mirchandani holds Directorships of other Indian Mr. Anand G.Mahindra, Mr. R.R. Krishnan and Mr. S. Ravi companies namely Mahindra Forgings Limited and Civilia retire by rotation and, being eligible, have offered themselves India Educational Programmes Pvt. Ltd. for re-appointment.
30 Mahindra Ugine Steel Company Ltd.
Mr. Daljit Mirchandani is a member of the following During his stint at MUSCO, he initiated the Mahindra Group’s committees: B76.")7[40%7#8+ 78%#+ %-.+ 8.:+ 1D)78.))+ 0".0)+ #,+ ".09+ .)%0%.+ development and hospitality management. Sr. Name of the Type of the Committee Chairman/ No. Company Member In the summer of 1991, he was appointed Deputy Managing Director of Mahindra & Mahindra Ltd., the country’s dominant 1. Mahindra Audit Committee Member producer of off-road vehicles and agricultural tractors. He Forgings Ltd. Investors’ Grievance Committee Chairman initiated a comprehensive change programme in Mahindra 2. Mahindra Ugine Audit Committee Member m+ =0-78B"0+ (%B[+ %#+ H0;.+ %-.+ 4#H508/+ 08+ .,[47.8%+ 08B+ Steel Co. Ltd. Remuneration Committee Member aggressive competitor in the new liberalized economic environment in India. Mr. Daljit Mirchandani does not hold any shares in the Company. In April 1997, he was appointed Managing Director of Mr. Nikhilesh Panchal Mahindra & Mahindra Ltd, and in January 2003 given the Mr. Nikhilesh Panchal holds masters degree in law and is additional responsibility of Vice Chairman. practicing as an Advocate for more than 15 years. He is During Mr. Mahindra’s tenure, Mahindra has also grown a Solicitor registered as Patent and Trademark Attorney. inorganically, seizing opportunities across the globe. Recent He is member of Bar Association of Maharashtra & Goa, acquisitions include Ssangyong Motors, Reva Electric Car Incorporated Law Society and the Supreme Court of England Company, Satyam Computer Services, Aerostaff Australia, and Wales. He is a partner in M/s. Khaitan & Co. and M/s. and Gippsland Aeronautics among others. Khaitan & Co. LLP. Mr. Mahindra is the co-founder of the Harvard Business Mr. Panchal has rich experience in acquisitions, takeover School Association of India, an association dedicated to and mergers, foreign collaborations, joint ventures and the promotion of professional management in India. He is a technology transfers including connected procedures under member of the supervisory board of Schneider Electric SA. ]#".7G8+324-08G.+=080G.H.8%+C4%+']3=C*l+08B+P#"5#"0%.+ Law, Capital Markets transactions including public offerings; He was a co-promoter of Kotak Mahindra Finance Ltd., international offerings by Indian companies Intellectual which in 2003 was converted into a bank. Kotak Mahindra is Property and related rights matters etc. one of the foremost private sector banks today. Mr. Nikhilesh Panchal holds Directorships of other Indian + C)+0+9.0B78G+78BD)%"/+[GD".>+-.+-0)+)."6.B+0)+!".)7B.8%+#,+ companies namely Mahindra Forgings Limited and Bhalakh the Confederation of Indian Industry in 2003-04 and has also Realtors Private Limited. been President of the Automotive Research Association of e8B70+'CJCe*[+_.+09)#+)."6.B+#8+%-.+a#0"B)+#,+%-.+K0%7#809+ Mr. Nikhilesh Panchal is a member of the following Stock Exchange of India and the National Council of Applied committees: Economic Research. Sr. Name of the Type of the Committee Chairman/ E&-$3,.1.$, No. Company Member Mr. Mahindra continues to receive several honours, a few of 1. Mahindra Forgings Audit Committee Member which are: Ltd. + #+ Qc87G-%+ #,+ %-.+ I"B."+ #,+ =."7%R+ 1/+ %-.+ !".)7B.8%+ #,+ %-.+ Mr. Nikhilesh Panchal does not hold any shares in the French Republic. Company. + #+ J0V76+W08B-7+C:0"B+?@@i+,#"+#D%)%08B78G+4#8%"71D%7#8+78+ Mr. Anand Mahindra %-.+1D)78.))+[.9B Mr. Anand G. Mahindra, Vice Chairman of the Company, + #+ ?@@E+ (.0B.")-75+ C:0"B+ ,"#H+ %-.+ CH."7408+ e8B70+ G"0BD0%.B+ :7%-+ _#8#D")+ '=0G80+ 4DH+ 90DB.*+ ,"#H+ _0"60"B+ Foundation for his, and the Mahindra Group’s College, Cambridge, Massachusetts, in 1977. In 1981 he commitment to corporate social responsibility. secured an MBA degree from the Harvard Business School, + #+ PKaP+C)70+aD)78.))+(.0B."+C:0"B+,#"+%-.+/.0"+?@@N[ Boston, Massachusetts. He returned to India that year and V#78.B+ =0-78B"0+ ^G78.+ T%..9+ P#H508/+ (%B+ '=^TPI*>+ %-.+ + #+ F-.+=#)%+e8)57"78G+P#"5#"0%.+(.0B."+#,+%-.+n.0"+?@@L+ country’s foremost producer of specialty steels, as Executive ,"#H+KQF`+!"#[%[ Assistant to the Finance Director. In 1989 he was appointed + #+ aD)78.))+=08+#,+%-.+n.0"+?@@L+,"#H+aD)78.))+e8B70[ President and Deputy Managing Director of the company.
31 Mahindra Ugine Steel Company Ltd.
+ #+ _0"60"B+ aD)78.))+ T4-##9+ C9DH87+ C4-7.6.H.8%+ C:0"B+ University of Delhi and has also done his GPMD course 2008. from Michigan Business School. Mr. R. R. Krishnan was with Mahindra Group for around 47 years and has held several + #+ K0%7#809+T%0%.)H08+,#"+324.99.84.+78+aD)78.))+!"04%74.)+ senior positions during his stint with Mahindra Group. He M+ j7H5"#+ !90%78DH+ T%08B0"B+ ?@@R+ C:0"B+ 1/+ j7H5"#+ was Member of the Group Management Board of Mahindra Foundation. & Mahindra Limited, until March 2005 and was also the + #+ PKaP+F`AR+ID%)%08B78G+aD)78.))+(.0B."+#,+%-.+n.0"+ Managing Director of Mahindra Intertrade Ltd. and Mahindra 2009 T%..9+ T."674.+ P.8%."+ (%B[+ '=TTP(*[+ ="[+ c"7)-808+ :0)+ responsible for the activities of the then Intertrade Division of + #+ aD)78.))+(.0B."+#,+%-.+n.0"+?@@S+1/+34#8#H74+F7H.) =0-78B"0+08B+=0-78B"0+(7H7%.B+'=m=*>+:-74-+)D1).\D.8%9/+ + #+ 3"8)%+m+n#D8G+38%".5".8.D"+#,+%-.+n.0"+e8B70+0:0"B+,#"+ 1.40H.+Q=0-78B"0+e8%."%"0B.+(7H7%.B+'=e(*[+QD"78G+-7)+%.8D".+ 2009 he was responsible for setting up the facilities of MSSCL and + #+ e8B708+#,+%-.+n.0"+0:0"B+?@@S+1/+KQF` the expansion thereof. MIL also expanded globally to set up a facility in UAE – Mahindra Middleeast Electrical Steel + #+ e=P+ fD"08+ jD097%/+ =.B09+ ?@A@+ 1/+ e=P+ J0H;"7)-80+ Service Centre -FZC. Mr. R.R. Krishnan carries with himself a0V0V+K0%7#809+jD097%/+C:0"B+F"D)%[ rich experience and expert knowledge of steel industry. Mr. A#T(A!4.,'#!(!/0$(4$/'0(14&(U.#&-1$#04."($7(14&(7$//$F.,3( Krishnan was a senior advisor in M&M. Companies: Mr. R.R. Krishnan holds Directorship of Mahindra Composites 1. Mahindra & Mahindra Limited, Ltd. He is a member of the following Board Committees: 2. Mahindra Navistar Automotives Ltd., Sr. Name of the Name of the Committee Position held 3. Tech Mahindra Ltd., No. Company 4. Tech Mahindra Foundation. 1 Mahindra Ugine Steel Audit Committee Member 5. Avion Aerosols Pvt. Ltd., Co. Ltd. 6. M.A.R.K. Hotels Pvt. Ltd. 2 Mahindra Composite Shareholders/Investors Chairman 7. Angular Constructions Pvt. Ltd., Ltd. Grievance Committee 8. Prana Holdings Inc., Mr. Krishnan does not hold shares in the Company. 9. Mahindra Holdings Ltd., Mr. S. Ravi 10. Mahindra First Choice Wheels Ltd., Mr. S. Ravi is a Post Graduate in Commerce and is a 11. Mahindra Two Wheelers Ltd. Chartered Accountant by Profession. He has promoted the 12. Araku Originals Ltd. ["H+J067+J0V08+m+P#[+78+ASRS>+:-74-+7)+5".).8%9/+.H508.99.B+ 13. Defence Land Systems India Pvt. Ltd. with Reserve Bank of India, Securities Exchange Board of 14. Prudential Management & Services Pvt. Ltd. India, Comptroller & Auditor General of India and with premier 15. Naandi Community Water Services Pvt. Ltd. Financial Institution and Banks in India. The Group staff )%".8G%-+#,+%-.+["H+7)+055"#27H0%.9/+-D8B".B+:-74-+7849DB.+ 16. Schneider Electric SA, France - Supervisory Board PC)>+=aC)>+PT+08B+#%-."+\D097[.B+5"#,.))7#809)+0)+:.99+0)+ Mr. Mahindra is a member of the following committees: 0))#470%.)[+C50"%+ ,"#H+ 0DB7%)>+ %-.+ ["H+ -0)+ 0+ )%"#8G+ ,#4D)+ and exposure in strategic alliances, regulatory compliances, Sr. Name of the Name of the Committee Position M&As, due diligence studies and valuations. During the No. Company held course of practice, he has handled various assignments in the 1. Mahindra & Share Transfer & Shareholders/ Member [.9B+#,+a08;78G+08B+]78084.>+J.)%"D4%D"78G+m+J.-01797%0%7#8+ Mahindra Ltd. Investors Grievance Committee of companies and turnaround strategies, Takeover, Mergers Research & Development Member & Acquisitions, valuations, auditing of companies and banks. Committee His experience in the banking sector includes tenure as Loans & Investment Committee Member Government Nominated Director of UCO Bank, wherein as a 2. Mahindra Navistar Remuneration Committee Chairman member of the Strategic Revival Group, he was instrumental Automotives Ltd. in the formulation of the revival plan and its subsequent 3. Mahindra Two Remuneration Committee Member implementation. Mr. Ravi was also a member of the strategic Wheelers Ltd. Revival Committee of Dena Bank apart from Asset Liability Management Committee, Risk Management Committee Mr. Anand Mahindra holds 13,617 shares in the Company. and Committee for Monitoring Non Performing Assets and Mr. R.R. Krishnan member of Audit Committee during his tenure as shareholder Mr. Krishnan is an Honours graduate in Mathematics from director of the Dena Bank and he was also a Chairman of
32 Mahindra Ugine Steel Company Ltd.
Board’s Financial Review Committee for its turnaround. Mr. and has certain major achievements to his credit as listed Ravi is a Chairman of the Technical Experts Committee of below; Punjab & Sind Bank, for its strategic turnaround approved by + #+ T%"0%.G/+eH59.H.8%0%7#8+,#"+G"#:78G+".6.8D.+,"#H+^TQ+ Government of India and RBI. 53 million in 2006 to USD 100 million in 2009 by product Mr. S. Ravi holds the Directorships of the following body – market stretch – installation of a new colour coating corporate viz. IDBI Capital Market Services Limited, UTI 978.+':7%-+P-78.).+)#,%+4".B7%*+78+f08D0"/+?@@L[ Trustee Company Private Limited, LIC Housing Finance Limited, Union Bank of India, Bharat Heavy Electricals + #+ !078%+%7.UD5+:7%-+aCT]+,#"+)D5."7#"+%.4-8#9#G/>+\.271797%/+ Ltd., SME Rating Agency of India Ltd., Maharishi Housing of colours to customers in terms of range & delivery – Development Finance Corporation Limited, Canbank stay ahead of the competition and strengthen brand. Venture Capital Fund Limited, GMR Chennai Outer Ring '?@@?+M+?@@N* Road Private Limited and S. Ravi Financial Management + #+ 3)%0197)-+08+#5."0%78G+f`+,#"+609D.+0BB.B+%"0B78G+78+%-.+ Serices Pvt. Ltd. He is a member of the following Board Committees; Manufacturing & Oil and Gas sectors. This germinated a separate SBU within First Aluminum. Sr. Name of the Company Name of the Committee Position held + #+ e84".0)78G+ %-.+ 4D)%#H."+ 10).+ 1/+ :0/+ #,+ 784".0)78G+ No. delivered value and maintaining customer relationship 1. Mahindra Ugine Steel Audit Committee Member in Nigeria to market 12,000 TPA in 2006 from 6,000 TPA Co. Ltd. Investors’ Grievance Member in 1998. Committee Remuneration Member + #+ T.9.4%76.9/+ D5G"0B.+ 5908%+ m+ H04-78."/+ #,+ N@)+ 678%0G.+ Committee with state of the art technology for volume enhancement, 2. IDBI Capital Market Audit Committee Chairman quality upgrade and increased customer satisfaction – Services Ltd. in collaboration with VAI, UK – Project Cost – USD 10 3. LIC Housing Finance Audit Committee Chairman million. This modernization was done to retain market Ltd. Investors’ Grievance Member share. This also included building of a 33 KV sub-station Committee & gas generating plant to leverage the low cost of natural 4. Maharishi Housing Audit Committee Chairman G0)+08B+%-.".1/+".BD4.+,01"740%7#8+4#)%[+'?@@@+M+?@@M* Development Finance + #+ e8%"#BD4.B+Qa.4#H78G+W9#1099/+P#H5.%7%76.R+4#84.5%+#,+ Corporation Ltd. Fj=+'0)+:0)+5"04%74.B+1/+]#"B+m+#%-."+4#H5087.)*+78+ Mr. S. Ravi does not hold shares in the Company. First Aluminum Nigeria for overall process improvement Mr.Uday Gupta across the value chain. Mr. Uday Gupta, 51 years, Bachelors of Engineering with1st + #+ e8)%0990%7#8+ &+ P#HH7))7#878G+ #,+ 0+ )%0%.+ #,+ %-.+ 0"%+ class honors, Jadavpur University and Master of Technology Aluminum Cold Rolling Mill in Indal, Belur at a project ,"#H+eeF+M+=0B"0)>+'P-.8807*+:-.".+-.+:0)+%-.+".4757.8%+#,+C+ cost of USD 7 million. The project was done in consortium Grade Merit Award. :7%-+T=T'W."H08/*>+Caa+'T:.B.8>+W."H08/+m+e8B70*+ and L & T. The plant capacity of INDAL, Belur moved + ="[+^B0/+WD5%0+-0)+"74-+08B+60)%+.25."7.84.+78+%-.+[.9B+#,+ from 20,000 TPA to 40,000 TPA. manufacturing sector particularly metal and alloy industry. Mr. + #+ P057%09+ 325.8B7%D".+ !"#V.4%)+ b+ C88.0978G+ ]D"804.)>+ Uday Gupta was appointed as the CEO of Steel Division of Slitters, Cut to Lengths, Layout Changes of plant for the Company in the year 2008. As the CEO of Steel Division, 784".0)78G+ H0%."709+ -08B978G+ .,[47.84/+ 'ASR?+ M+ ASRR*>+ Mr. Uday Gupta has taken various initiatives to streamline the Product Development operations and infuse technological expertise for enhancing the overall working of the Divisions. Prior his appointment Mr. Gupta has also taken various initiatives in his past 0)+%-.+P3I+'T%..9*>+="[^B0/+WD5%0+:0)+32.4D%76.+Q7".4%#"+ .H59#/H.8%)+)7G87[408%9/+4#8%"71D%78G+%#+%-.+G"#:%-+#,+)D4-+ of First Aluminum Nigeria Plc Group, the Company listed organizations. on the in Nigeria Stock Exchange. There Mr. Uday Gupta Mr. Uday Gupta is not on the Board any other Company. was a member of the Audit Committee of the Board and also He is a Member of Investors’ Grievance Committee of the -.0B78G+%-.+!"#[%+P.8%".+#,+J#9978G+=799+m+P#0%78G+Q767)7#8[ Company with effect from 5th May, 2011. Mr. Uday Gupta Mr. Uday Gupta has long association with Indian Aluminum does not hold any shares in the Company. Company Ltd., where he has worked in various capacities
33 Mahindra Ugine Steel Company Ltd.
E. Codes of Conduct Director L.11.,3(5&&0( No. of Equity The Board has laid down two separate Codes of Conduct- for Board and shares held as one for Board Members and the other for Senior Management Committee on 31st March, and Employees of the Company. These Codes have been A&&1.,30(6!.'( 2011 posted on the Company’s website www.muscoindia.com. '2#.,3(14&(*&!#( All Board Members and Senior Management Personnel (Rs.) -06.+0,["H.B+4#H597084.+:7%-+%-.).+P#B.)+#,+P#8BD4%[+C+ Mr. R. R. Krishnan 67500 - declaration signed by the Managing Director to this effect is Mr. S. Ravi 41250 - enclosed at the end of this report. Mr. Manojkumar Maheshwari 60000 - 5T( H9MZH5M(H.[-!1.$,T Mr. Harsh Kumar 37500 - As required under clause 49 V of the Listing Agreement with Mr. Sanjiv Kapoor 45000 - Stock Exchanges, the Managing Director and Chief Finance I,[4."+ -06.+ 4."%7[.B+ %#+ %-.+ a#0"B+ ".G0"B78G+ %-.+ [8084709+ Ms. Sarojini S. Dikhale@ 37500 - statements for the year ended 31st March, 2011. Mr. Daljit Mirchandani*** 26250 II. REMUNERATION TO DIRECTORS Mr. Nikhilesh Panchal**** 15000 A. Remuneration Policy * resigned as director with effect from 9th July, 2010. While deciding on the remuneration of Directors, the Board, ** ceased as director with effect from 27th July, 2010. Remuneration Committee considers the performance of the *** appointed as additional director with effect from 27th October, P#H508/>+%-.+4D"".8%+%".8B)+78+%-.+78BD)%"/>+%-.+\D097[40%7#8)+ 2010. #,+%-.+055#78%..')*>+%-.7"+.25."7.84.>+50)%+5.",#"H084.+08B+ **** appointed as additional director with effect from 18th January, other relevant factors. The Board/Remuneration Committee 2011 and sitting fees paid to M/s. Khaitan & Co. regularly keeps track of the market trends in terms of compensation levels and practices in relevant industries @ Sitting fees paid to LIC. through participation in structured surveys. This information A total of 2,15,000 Stock Options have been granted to is used to review the Company’s remuneration policies. Non-Executive Directors under the Company’s Stock >T( E&82,&#!1.$,( 1$( ;$,@9:&-21.%&( U.#&-1$#0( 7$#( 14&( *&!#( Option Scheme on 18th August, 2006. The Stock options ended 31st March, 2011. were granted at 15% discount to the average of high and low share prices of the Company on the Bombay Stock Non-Executive Directors are paid a sitting fee of Rs.7,500/- Exchange Limited during 15 days preceding the date of each for every Meeting of the Board and Audit Committee grant of options. Details of these are given in the Statement attended and a sitting fee of Rs.3,750/- each is paid per attached to Annexure I to the Directors’ Report. Apart from Meeting in case of Investors’ Grievance and Remuneration the above sitting fees, Non-Executive Directors received no Committee Meetings. The fees paid to Non-Executive remuneration during the year under review. Directors for the year ended 31st March, 2011 along with their shareholdings are as under: HT( E&82,&#!1.$,("!.'Z"!*!)/&(1$(14&(A!,!3.,3(U.#&-1$#
Director L.11.,3(5&&0( No. of Equity A. Mr. K.V. Ramarathnam for Board and shares held as Remuneration paid/payable to Mr. K.V. Ramarathnam, Committee on 31st March, %-.+ =080G78G+ Q7".4%#"+ :0)+ [2.B+ 1/+ %-.+ J.HD8."0%7#8+ A&&1.,30(6!.'( 2011 Committee and approved by the Board of Directors and the '2#.,3(14&(*&!#( same was also approved by the shareholders at a General (Rs.) Meeting and the Central Government. Mr. Keshub Mahindra 15000 1231 Mr. Anand G. Mahindra 30000 - Dr. Homi N. Sethna* - - Mr. M. R. Ramachandran** 30000 - Mr. Hemant Luthra 41250 5906
34 Mahindra Ugine Steel Company Ltd.
Following Remuneration paid/payable to Mr. K.V. Ramarathnam, Managing Director for the year ended 31st March, 2011.
Director Salary (Rs.) Company’s Perquisites Performance Total (Rs.) Contract basic contribution and pay Period to funds (Rs.) allowances (Rs.) Mr. K. V. Ramarathnam 34,98,000 9,44,460 29,33,047 22,17,600* 95,93,107 5th May, 08 to Managing Director 4th May, 2011. Note: 1. *The total remuneration includes the provision of amount of Rs. 22,17,600/-, being the upper limit of the Performance Pay [2.B+1/+%-.+a#0"B+#,+Q7".4%#")>+50/019.+%#+%-.+=080G78G+Q7".4%#"+,#"+%-.+[8084709+/.0"+?@A@UAA[+F-.+P#H508/+-0)+507B+08+ amount of Rs.13,30,560/- to the Managing Director, towards performance pay for the year 2009-10. 2. The Company in August 2006 has granted 1,00,000 stock options to Mr. K.V. Ramarathnam. The stock options granted would vest in four equal installments on the expiry of 12, 24, 36 & 48 months from the date of grant which is 18th August, 2006 and 408+1.+.2."47).B+0%+0+5"74.+#,+J)[+SS&U+5."+)-0".+#8+%-.+B0%.+#,+6.)%78G+#"+#6."+0+5."7#B+#,+[6.+/.0")+,"#H+B0%.+#,+6.)%78G+#,+ the options. Details of the stock options granted including discount are given in the statement attached to Annexure I to the Directors Report. Mr. K. V. Ramarathnam has not exercised any of the vested options during the year. 3. Notice period applicable to Managing Director is three months. 4. The overall remuneration payable to the Managing Director is approved by the Remuneration Committee, the Board of Directors, the shareholders and Central Government. + E[+ !.",#"H084.+50/+7)+%-.+#89/+4#H5#8.8%+#,+".HD8."0%7#8+%-0%+7)+5.",#"H084.+978;.B[+C99+#%-."+4#H5#8.8%)+0".+[2.B[+F-.+ Remuneration Committee, on the basis of detailed appraisal of the performance of the Company and the Managing Director ".4#HH.8B)+08B+055"#6.)+%-.+5.",#"H084.+50/H.8%+,#"+08/+50"%74D90"+[8084709+/.0"[ 6. Mr. K. V. Ramarathnam, Managing Director, does not hold any shares in the Company. B. Mr. Uday Gupta Mr. Uday Gupta was appointed as the Managing Director of the Company w.e.f. 5th May 2011 by the Board of Directors at its meeting held on 27th April 2011, subject to approval of the members. As required under the provisions of the Schedule XIII of the Companies Act, 1956, the following is the disclosure regarding remuneration payable, for the year 2011-12 w.e.f. 5th May 2011 to 4th May 2012, to Mr. Uday Gupta, Managing Director, as approved by the Remuneration Committee and the Board of Directors, subject to the approval of the shareholders and the Central Government, if required.
A!,!3.,3(U.#&-1$# Salary (Rs.) Company’s Perquisites Performance Total (Rs.) Contract basic contribution and pay Period to funds (Rs.) allowances (Rs.) Mr. Uday Gupta 23,40,000 7,48,800 41,11,200 18,00,000* 90,00,000 5th May, 11 to Managing Director 4th May, 2014. w.e.f. 5th May 2011 to 4th May, 2012 Note: 1. *The total remuneration includes the provisional amount of Rs. 18,00,000/-, being the upper limit of the Performance Pay [2.B+1/+%-.+a#0"B+#,+Q7".4%#")>+50/019.+%#+%-.+=080G78G+Q7".4%#"+,#"+%-.+[8084709+/.0"+?@AAUA?[ 2. The Company has not granted any stock option to Mr. Uday Gupta. 3. Notice period applicable to Managing Director is three months.
35 Mahindra Ugine Steel Company Ltd.
4. Performance pay is the only component of remuneration as a link between the Statutory and the Internal Auditors and that is performance linked. All other components are the Board of Directors of the Company. It is authorised to [2.B[+ F-.+ J.HD8."0%7#8+ P#HH7%%..>+ #8+ %-.+ 10)7)+ #,+ select and establish accounting policies, review reports of detailed appraisal of the performance of the Company the Statutory and the Internal Auditors and meet with them and the Managing Director recommends and approves %#+ B7)4D))+ %-.7"+ [8B78G)>+ )DGG.)%7#8)+ 08B+ #%-."+ ".90%.B+ %-.+ 5.",#"H084.+ 50/H.8%+ ,#"+ 08/+ 50"%74D90"+ [8084709+ matters. The Committee is empowered inter alia to review year. the remuneration payable to the Statutory Auditors and to 5. Mr. Uday Gupta, Managing Director, does not hold any recommend a change in Auditors, if felt necessary. It is also shares in the Company. empowered to review Financial Statements, Management Discussion & Analysis and Material individual transactions III. RISK MANAGEMENT with related parties not in normal course of business or which + F-.+ P#H508/+ -0)+ 08+ .,,.4%76.+ 08B+ .,[47.8%+ ,"0H.:#";+ are not on an arm’s length basis. All items listed in Clause of Risk management. The said framework comprises 49 II D of the Listing Agreement are covered in the terms of objectives of the Risk framework, the process through which reference. The Audit Committee has been granted powers "7);+ 'e8%."809+ 0)+ :.99+ 0)+ 32%."809+ J7);)*+ %#+ %-.+ P#H508/+ as prescribed under Clause 49 II C. 08B+ 7%)+ 1D)78.))+ 0".+ 7B.8%7[.B+ 08B+ )%.5)+ %#+ 1.+ %0;.8+ ,#"+ The Meetings of the Audit Committee are also attended by mitigating such risks and threats to the Company. The frame- %-.+=080G78G+Q7".4%#">+P-7.,+]78084.+I,[4.">+%-.+T%0%D%#"/+ work has proper procedure for reporting the risks to various Auditors, Internal Auditors and the Company Secretary. levels of operating management depending on the criticality and sensitivity of risk to the business of the Company. The The Chairman of the Committee, Mr. M.R. Ramachandran, ,"0H.:#";+B.[8.)+%-.+"#9.)+#,+%-.+"7);+4#8%"#9+#:8.")>+"7);+ due to his illness as on the date of the Annual General th committee, risk manager, audit committee and the Board. Meeting held on 27 July, 2010, was unable to remain The policy also describes in detail the process of risk present at the said meeting. However, other three members 7B.8%7[40%7#8>+0)).))H.8%+#,+"7);>+"7);+)409.)>+"7);+-08B978G+ of the audit committee were present to answer queries of & monitoring process, response strategy, etc. The operating shareholders. management periodically places before the Board, a detailed + ]#D"+'i*+=..%78G)+#,+P#HH7%%..+:.".+-.9B+BD"78G+%-.+/.0"+ report on the Risk Assessment and Management process 1st April, 2010 to 31st March, 2011 on the following dates: undertaken by the management for identifying, eliminating - 29th April, 2010 - 25th January, 2011 and mitigating the risk to the Company and its business from th th time to time. The broad threats and risks to the businesses of - 27 July, 2010 - 27 October, 2010 the Company are discussed in the Management Discussion The gap between two Meetings did not exceed four months. and Analysis chapter of this Annual Report. The attendance at the Meetings are as under:
IV. COMMITTEES OF THE BOARD OF DIRECTORS Sr. Members A&&1.,30( Remarks A. Audit Committee No. Attended 1 Mr. M. R. 2 Ceased to be member of the The Audit Committee has been re-constituted by the Ramachandran Committee w.e.f. 27th July, Board of Directors and presently it comprises Mr. Sanjiv 2010. c05##"+ 'P-07"H08*>+ ="[+ J[J[+ c"7)-808>+ ="[+ =08#V+ cDH0"+ 2 Dr. H. N. Sethna — Ceased to be member of the Maheshwari, Mr. S. Ravi and Mr. Daljit Mirchandani. Except Committee w.e.f. 9th July, Mr. R. R. Krishnan, who is a Non-Independent Director, the 2010. rest of the members of the Committee are Independent-Non- Executive Directors. All the Members of the Committee have 3 Mr. R. R. Krishnan 4 — vast experience and knowledge of corporate affairs and 4 Mr. S. Ravi 3 — [8084709+H080G.H.8%+08B+5#)).))+)%"#8G+044#D8%78G+08B+ 5 Mr. Manoj Kumar 4— [8084709+ H080G.H.8%+ .25."%7).[+ F-.+ P#H508/+ T.4".%0"/+ Maheshwari acts as Secretary to the Committee. 6 Mr. Sanjiv Kapoor 3— – Chairman The terms of reference of this Committee are very wide. 7 Mr. Daljit 1 Appointed as member of the Besides having access to all the required information from Mirchandani Audit Committee w.e.f. 8th within the Company, the Committee can obtain external January, 2011. professional advice whenever required. The Committee acts
36 Mahindra Ugine Steel Company Ltd.
B. Investors’ Grievance Committee Employee Stock Option Scheme of the Company. The Investors’ Grievance Committee has been re-constituted The Remuneration Committee comprises of Mr. Hemant by the Board of Directors and it comprises Mr. S. Ravi, Luthra, Mr. S. Ravi, Mr. Sanjiv Kapoor and Mr. Daljit Mr. Hemant Luthra and Mr. K.V. Ramarathnam. Mr. Hemant Mirchandani. The Company Secretary acts as the Secretary Luthra is the Chairman of the Committee. Mr. Uday Gupta to the Committee. th was appointed as the member of the committee w.e.f. 5 Mr. Sanjiv Kapoor is the Chairman of the Committee May, 2011. + F:#+ P#HH7%%..+ =..%78G)+ :.".+ -.9B+ BD"78G+ [8084709+ /.0"+ Mr. Ajay Kadhao the Company Secretary, is the Compliance 2010-11. The attendance at these Meetings are as under: I,[4."+#,+%-.+P#H508/[ Sr. Members A&&1.,30( The Committee meets as and when required, to deal with No. Attended matters relating to transfers/transmissions of shares, issue #,+ BD59740%.+ )-0".+ 4."%7[40%.)+ .%4[+ 08B+ H#87%#")+ ".B".))09+ 1. Dr. H.N. Sethna* - of complaints from shareholders relating to transfers, non- 2. Mr. M. R. Ramachandran** - receipt of balance-sheet, non-receipt of dividends declared 3. Mr. Hemant Luthra 2 etc. 4. Mr. S. Ravi*** 1 One Committee Meeting was held during the year 2010-11. 5. Mr. Sanjiv Kapoor - The attendance at these Meetings was as under: 6. Mr. Daljit Mirchandani**** 1 Sr. Members A&&1.,30( * Ceased to be member of the Committee with effect from 9th No. Attended July, 2010. 1. Mr. S. Ravi - ** Ceased as member of the Committee on 27th July, 2010. 2. Mr. K. V. Ramarathnam 1 *** Appointed as member of the Committee on 27th July, 2010. 3. Mr. Hemant Luthra 1 **** Appointed as member of the Committee on 25th January, The Board of Directors has authorized the Managing 2011. Q7".4%#">+ %-.+ P-7.,+ ]78084.+ I,[4."+ 08B+ %-.+ P#H508/+ Secretary to deal jointly with the matters relating to approval V. Subsidiary Companies of the transfer, transmission, replacement, consolidation The Company had no subsidiary as on 31st March, 2011. of shares etc., in order to expedite the process of Share VI. DISCLOSURES F"08),."&F"08)H7))7#8[+K#"H099/+%-.+)07B+#,[4709)+H..%+#84.+ in 15 days to approve share transfers and other related OT( U.0-/$02#&0(#&/!1.,3(1$(#&/!1&'("!#1* matters. The details of share transfer/transmission approved + QD"78G+%-.+[8084709+/.0"+?@A@UAA>+%-.".+:.".+8#+H0%."7099/+ 1/+01#6.+#,[4709)+0".+5"#5."9/+".4#"B.B+78+%-.+T-0".-#9B.")+ )7G87[408%+%"08)04%7#8)+.8%.".B+78%#+1.%:..8+%-.+P#H508/+ Grievance Committee meetings and are also placed before and its promoters, Directors or the management, relatives, Board, for its record. .%4[>+ %-0%+ H0/+ -06.+ 5#%.8%709+ 4#8\74%+ :7%-+ %-.+ 78%.".)%)+ #,+ During the year, 6 Letters/complaints were received from the the Company at large. Further, details of related party shareholders, all of which were attended to/resolved to date. transactions are presented in note no. “21” in Schedule “L” to Annual Accounts of the Annual Report. As on date, there were no pending share transfers pertaining to the year under review. >T( U.0-/$02#&( $7( O--$2,1.,3( R#&!18&,1( .,( 6#&"!#!1.$,( $7( Financial Statements C. Remuneration Committee. The Company has followed the Guidelines of Accounting The role of the Remuneration Committee is to review market T%08B0"B)+ 0)+ 8#%7[.B+ D8B."+ %-.+ P#H5087.)+ 'C44#D8%78G+ practices and to decide on remuneration packages applicable T%08B0"B)*+ JD9.)+ ?@@N+ 78+ 5".50"0%7#8+ #,+ 7%)+ [8084709+ to the Managing Director/Executive Director. During the statements. course of its review, the Committee also decides on the Commission or Performance pay and/or other incentives HT( H$'&(7$#(6#&%&,1.$,($7(P,0.'&#@R#!'.,3(6#!-1.-&0 payable, taking into account the individual’s performance as In compliance with SEBI’s regulation on prohibition and well as that of the Company. The Remuneration Committee prevention of insider trading, the Company has instituted is also empowered to decide on the matters relating to a comprehensive Code of Conduct for prohibition and
37 Mahindra Ugine Steel Company Ltd.
prevention of Insider Trading for its designated employees. (vii) Stock Market price data: The Code lays down Guidelines, which advises them on + + _7G-&9#:+5"74.)+BD"78G+.04-+H#8%-+78+90)%+[8084709+/.0"+ procedures to be followed and disclosures to be made, while on Bombay Stock Exchange Limited/National Stock dealing with shares of the Company and cautioning them of Exchange of India Limited. the consequences of violations. Month Bombay Stock National Stock VII. SHAREHOLDER INFORMATION 9:-4!,3&([1'T 9:-4!,3&($7(P,'.!([1'T ( N.J( O,,2!/(Y&,&#!/(A&&1.,3 \.34(NE0TJ Low (Rs.) \.34(NE0TJ Low (Rs.) The Forty-eighth Annual General Meeting of the April 2010 74.95 66.50 75.00 63.95 Company will be held on Wednesday, the 27th July, May 2010 71.60 53.15 71.70 52.70 2011 at 3.00 p.m. at Amar Gian Grover Auditorium, Lala Lajpat Rai Marg, Haji Ali, Mumbai-400 034 to transact June 2010 68.00 56.70 67.50 55.10 such business as stated in the Notice of the Meeting. July 2010 78.00 62.10 77.50 61.00 (ii) Financial Year of the Company August 2010 73.70 64.90 73.00 64.60 + + F-.+ [8084709+ /.0"+ 4#6.")+ %-.+ 5."7#B+ Ast April to 31st September 2010 77.25 66.00 77.40 65.60 March. October 2010 75.80 65.80 75.40 65.70 Financial Reporting for: November 2010 77.80 58.00 75.15 60.10 + + N+ jD0"%."+.8B78G+M@[@N[?@AA+U+1/+.8B+#,+fD9/>+?@AA[ December 2010 69.00 55.10 69.10 56.30 January 2011 69.50 54.10 69.60 55.50 — Half-year ending 30.09.2011 - by end of October, 2011. February 2011 62.10 50.40 64.50 49.50 + + N+ jD0"%."+ .8B78G+ MA[A?[?@AA+ U+ 1/+ .8B+ #,+ f08D0"/>+ March 2011 55.20 49.00 54.50 48.10 2012. N%...J(L1$-?( 6$#8!,-&( .,( -$8"!#.0$,( 1$( >L9( @( — Year ending 31.03.2012 - by end of April, 2012. Sensitive Index. Note: The above dates are indicative. 22,000.00 80.00 (iii) Date of Book Closure 21,000.00 70.00 20,000.00 19,000.00 th th Saturday, the 16 July, 2011 to Wednesday, the 27 60.00 18,000.00 17,000.00 fD9/>+?@AA+'1#%-+B0/)+7849D)76.*[ 50.00 16,000.00 15,000.00 40.00 14,000.00 Value in Rs.
(iv) Dividend Payment date MUSCO Price 13,000.00 30.00 12,000.00 BSE Sensex Points Not applicable. 11,000.00 20.00 10,000.00 N%J( [.01.,3($7(9K2.1*(L4!#&0($,(L1$-?(9:-4!,3&0 9,000.00 10.00 8,000.00 1. Bombay Stock Exchange Limited. - 7,000.00 Apr-10 May-10Jun-10 Jul-10 Aug-10Sep-10 Oct-10Nov-10Dec-10Jan-11 Feb-11 Mar-11 Months 2. National Stock Exchange of India Limited. MUSCO Price BSE Sensex Points Closing Price on Last trading day of the Month The Company has paid the Listing Fees to Bombay Stock Exchange Limited and National Stock Exchange
of India Limited. 80.00 7,000.00 6,000.00 (vi) Stock Codes: 70.00 60.00 5,000.00 + + '0*+ a#H10/+T%#4;+324-08G.+(7H7%.B+'aT3*UE@iR?M 50.00 4,000.00 40.00
+ + '1*+ K0%7#809+ T%#4;+ 324-08G.+ #,+ e8B70+ (%B[+ 'KT3*+ U+ 3,000.00 NSE Nifty Value in Rs. MUSCO Price 30.00 MAHINDUGIN 2,000.00 20.00 1,000.00 + + '4*+ e8%."80%7#809+ T.4D"7%7.)+ eB.8%7[40%7#8+ KDH1."+ 10.00 - - 'eTeK*+78+KTQ(+08B+PQT(+,#"+3\D7%/+T-0".)+U+eK3+ Apr-10 May-10Jun-10 Jul-10 Aug-10Sep-10 Oct-10Nov-10Dec-10Jan-11 Feb-11 Mar-11 850A01010 Months M USCO Price S&P CNX Nif t y Closing Price on Last trading day of the Month
38 Mahindra Ugine Steel Company Ltd.
( .:J( E&3.01#!#(!,'(R#!,07&#(O3&,10@ N:..J(U.01#.)21.$,($7(04!#&4$/'.,3(!0($,(VDst March, 2011
+ + T-0".5"#+T."674.)+'e8B70*+!"760%.+(7H7%.B[ Shares Held No. of % to Share No. of % to Shares Unit: Mahindra Ugine Steel Co. Ltd. Share holders Shares 13AB, Samhita Warehousing Complex, holders 2nd Floor, Sakinaka Telephone Exchange Lane, Up to – 500 24201 87.99 3145322 9.68 Off Andheri Kurla Road, Sakinaka, + + C8B-."7+'30)%*>+=DH107+U+i@@+@L? 501 – 1000 1855 6.74 1485481 4.57 Tel. No. 022-67720300/67720400 1001 - 2000 752 2.73 1167776 3.60 Fax No. 022-28591568/28508927 2001 – 3000 229 0.83 588955 1.81 E-mail: [email protected] 3001 – 4000 111 0.41 402621 1.24 (x) Share Transfer System 4001 – 5000 111 0.41 533476 1.64 The Board of Directors has authorized the Managing 5001 – 10000 132 0.48 1005906 3.10 Q7".4%#">+ %-.+ P-7.,+ ]78084.+ I,[4."+ 08B+ %-.+ P#H508/+ 10001-and above 112 0.41 24152992 74.36 Secretary to deal jointly with the matters relating to TOTAL 27503 100.00 3,24,82,529 100.00 approval of the transfer, transmission, replacement, consolidation of shares etc., in order to expedite the (xiii) Dematerialization of Shares and Liquidity as on process of Share Transfer/Transmission. Normally the 31st March, 2011. )07B+ #,[4709)+ H..%+ #84.+ 78+ AE+ B0/)+ %#+ 055"#6.+ )-0".+ Physical Form : 2.14% transfers and other related matter. The details of share Dematerialized Form : 97.86% %"08),."&%"08)H7))7#8+ 055"#6.B+ 1/+ 01#6.+ #,[4709)+ are properly recorded in the Shareholders Grievance Trading in equity shares of the Company is permitted in Committee meetings and are also placed before Board, B.H0%."7097g.B+,#"H+#89/+0)+5."+%-.+8#%7[40%7#8+7))D.B+ for its record. 1/+T.4D"7%7.)+08B+324-08G.+a#0"B+#,+e8B70+'T3ae*[ ( N:.J( 6!11&#,($7(04!#&4$/'.,3(!0($,(VDst March, 2011 (xiv)(M2101!,'.,3( OUE0ZYUE0Z( ]!##!,10( $#( !,*( Convertible Instruments, conversion date and likely Sr. Description Number of % to capital impact on Equity. No. Shares The Company has not issued any ADRs/GDRs/Warrants 1 Promoters and Promoter 18019489 55.47 or any convertible instruments. Group (xv) Plant Locations : 2 Mutual Funds/UTI 9716 0.03 3 Financial Institutions/Banks 1910 0.01 1. Steel Division:- Jagdish Nagar, Khopoli- 410 216, 4 Insurance Companies 1777770 5.47 District-Raigad, Maharashtra. 5 Foreign Institutional Investors 18450 0.06 2. Stampings Divisions:- 6 Bodies Corporate 1401286 4.32 a) 371, Takwe Road, At & Post-Kanhe, Tal. Maval, 7 Foreign Company 1000 0.00 Dist. Pune- 412 106. 8 Non Resident Indian/ Foreign 221410 0.68 b) D-2, MIDC, Ambad, Nashik- 422 010. National 9e8B708+!D1974+'e8B767BD09)*11031267 33.96 c) Maharajapur Road, Lalpur, Rudrapur, ++++'^[T[+K0G0"*>+^%%0"0;-08B[ 10 Trusts 231 0.00 (xvi) Address for correspondence TOTAL 3,24,82,529 100.00 + + J.G7)%.".B+I,[4.bU 74, Ganesh Apartment, Opp. Sitaladevi Temple, L. J. Road, + + =0-7H+'O*>+=DH107Ui@@+@AN[ Tel.: 022-24444287, Tele fax: 022-24458196 Email: [email protected]
39 Mahindra Ugine Steel Company Ltd.
For all investor related matters, Mr. Ajay Kadhao, 3. Means of Communication: P#H508/+ T.4".%0"/+ m+ P#H597084.+ I,[4."+ #"+ The quarterly, half yearly & yearly results are published Mr. Pradeep Salian, Deputy Company Secretary can be in Business Standard and Sakal which are national and contacted at the above address. local dailies respectively. These are not sent individually %#+ %-.+ T-0".-#9B.")[+ F-.+ P#H508/R)+ [8084709+ ".)D9%)+ Email:[email protected] and 08B+ #,[4709+ 8.:)+ ".9.0).)+ 0".+ B7)590/.B+ #8+ %-.+ [email protected] Company’s website http://www.muscoindia.com. VIII. OTHER DISCLOSURES During the year ended 31st March, 2011, no presentations were made to institutional investors or 1. Annual General Meetings held during the past three analysts. years: ^T( A!,!3&8&,1( U.0-200.$,( !,'( O,!/*0.0( E&"$#1( Financial Year Date Time (MDA): 2007-08 24.07.2008 3.00 p.m. The Management Discussion and Analysis Report 2008-09 28.07.2009 3.00 p.m. '=QC*>+-0)+1..8+0%%04-.B+08B+,#"H)+50"%+#,+%-7)+C88D09+ Report. 2009-10 27.07.2010 3.00 p.m. WT( H$8"/.!,-&( F.14( 8!,'!1$#*( Q( ,$,@8!,'!1$#*( All the above Meetings were held at Amar Gian Grover requirements: Auditorium, Lala Lajpatrai Marg, Mahalaxmi, Mumbai - The Company has complied with all the mandatory 400 034. requirements of Clause 49 of the Listing Agreement The following Special Resolutions were passed in the previous relating to Corporate Governance. three Annual General Meetings: Further, the Company has adopted the following non- mandatory requirements of the Clause: Financial Date of Special Resolutions passed I The Company has set up the Remuneration Year A&&1.,3 Committee. 2007-08 24.07.2008 1. Approval of revision in remuneration payable II During the year under review, there is no audit to Mr. K.V. Ramarathnam with effect from 1st \D097[40%7#8+78+%-.+P#H508/R)+[8084709+)%0%.H.8%)[ April, 2007. The Company has not adopted the other non-mandatory 2. Approval of re-appointment of ".\D7".H.8%)+0)+)5.47[.B+78+C88.2D".+eQ+#,+%-.+490D).+ Mr. K.V. Ramarathnam as the Managing 49. Director of the Company with effect from 5th XT( H$8"/.!,-&( F.14( 14&( H$#"$#!1&( Y$%&#,!,-&( M( May, 2008. Voluntary Guidelines, 2009: 2008-09 28.07.2009 1. Approval of revision in remuneration payable In December, 2009 the Government of India, Ministry to Mr. K.V. Ramarathnam with effect from 1st #,+ P#"5#"0%.+ C,,07")+ 'O=PCP*+ -0B+ 7))D.B+ P#"5#"0%.+ April, 2008 for the period of 3 years. Governance Voluntary Guidelines 2009. MCA has 2. To keep Registers and Index of Members 490"7[.B+ %-0%+ %-.+ WD7B.978.)+ :.".+ 5".50".B+ 08B+ and Debenture Holders and copies of Annual disseminated for consideration and adoption by J.%D"8)+%#G.%-."+:7%-+%-.+4#57.)+#,+4."%7[40%.)+ Corporates and may be voluntarily adopted by public 08B+ B#4DH.8%)+ 0%+ %-.+ #,[4.+ 5".H7).)+ #,+ %-.+ companies with the objective to enhance not only the Company’s Registrars & Share Transfer agent economic value of the enterprise but also the value for 67g[+T-0".5"#+T."674.)+'e8B70*+!6%[+(%B[ every stakeholder who has contributed in the success 2009-10 27.07.2010 Nil of the enterprise and set a global benchmark for good Postal Ballot Corporate Governance. MCA after taking into account the experience of adoption of these guidelines by The Company has not proposed any special resolution Corporate and after consideration of the feedback to be conducted through postal ballot. No resolutions received from them would review these guidelines for were passed by the Postal Ballot during the year under further improvements after a period of one year. review. The Company has been a strong believer in good BT( U&1!./0($7(,$,@-$8"/.!,-&(&1-T corporate governance and has been adopting the best The Company has complied with all the requirements practices that have evolved over the last two decades. of regulatory authorities. During the last three years, The Company is in compliance with some of the there were no instances of non-compliance by the requirements of the voluntary guidelines and it will Company and no penalty or strictures were imposed on always be the Company’s endeavour to attain the best the Company by the Stock Exchanges or SEBI or any practices in corporate governance. statutory authority, on any matter related to the capital markets. Mumbai, 27th April, 2011.
40 Mahindra Ugine Steel Company Ltd.
DECLARATION BY THE MANAGING DIRECTOR PURSUANT TO CLAUSE 49 OF THE LISTING AGREEMENT To The Members of Mahindra Ugine Steel Company Limited I, K.V. Ramarathnam, Managing Director of Mahindra Ugine Steel Company Limited, declare that all the members of the Board of Q7".4%#")+08B+T.87#"+=080G.H.8%+!.")#88.9+-06.+0,["H.B+4#H597084.+:7%-+%-.+P#B.)+#,+P#8BD4%+,#"+%-.+/.0"+.8B.B+MAst March, 2011.
K.V. Ramarathnam A!,!3.,3(U.#&-1$# Place : Mumbai Date : 27th April, 2011.
CERTIFICATE To the Members of Mahindra Ugine Steel Company Limited
We have examined the compliance of the conditions of Corporate Governance by Mahindra Ugine Steel Company Limited for the year ended 31st March, 2011, as stipulated in Clause 49 of the Listing Agreements of the said Company with relevant stock exchanges '-.".780,%."+".,."".B+%#+0)+490D).+iS*[ The compliance of the conditions of Corporate Governance is the responsibility of the Management. Our examination has been limited to a review of the procedures and implementation thereof, adopted by the Company for ensuring compliance of the conditions of P#"5#"0%.+W#6."8084.[+e%+7)+8.7%-."+08+0DB7%+8#"+08+.25".))7#8+#,+#5787#8+#,+%-.+[8084709+)%0%.H.8%)+#,+%-.+P#H508/[ In our opinion and to the best of our information and according to the explanations given to us and the representations made by the directors and the management, we certify that the Company has complied, in all material respects, with the conditions of Corporate Governance as stipulated in clause 49.
O.+)%0%.+%-0%+)D4-+4#H597084.+7)+8.7%-."+08+0))D"084.+0)+%#+%-.+,D%D".+6701797%/+#,+%-.+P#H508/+8#"+%-.+.,[47.84/+#"+.,,.4%76.8.))+:7%-+ which the management has conducted the affairs of the Company.
For Deloitte Haskins & Sells Chartered Accountants Reg. No.117366W
R K Hiranandani Partner Membership No.: 36920 Place : Mumbai Date : 27th April, 2011.
41 Mahindra Ugine Steel Company Ltd.
ACCOUNTS
42 Mahindra Ugine Steel Company Ltd.
AUDITORS’ REPORT TO THE MEMBERS OF MAHINDRA UGINE STEEL COMPANY LIMITED
1. We have audited the attached Balance Sheet of MAHINDRA + 'B*+ 78+#D"+#5787#8>+%-.+a09084.+T-..%>+%-.+!"#[%+08B+(#))+ UGINE STEEL COMPANY LIMITED (“the Company”) as at C44#D8%+08B+%-.+P0)-+]9#:+T%0%.H.8%+B.09%+:7%-+1/+%-7)+ 31st+=0"4->+?@AA>+%-.+!"#[%+08B+(#))+C44#D8%+08B+%-.+P0)-+ ".5#"%+0".+78+4#H597084.+:7%-+%-.+C44#D8%78G+T%08B0"B)+ Flow Statement of the Company for the year ended on that ".,."".B+%#+78+T.4%7#8+?AA'MP*+#,+%-.+P#H5087.)+C4%>+ date, both annexed thereto. These financial statements ASENl are the responsibility of the Company’s Management. Our (e) in our opinion and to the best of our information and ".)5#8)71797%/+7)+%#+.25".))+08+#5787#8+#8+%-.).+[8084709+ according to the explanations given to us, the said statements based on our audit. accounts give the information required by the Companies 2. We conducted our audit in accordance with the auditing C4%>+ASEN+78+%-.+H088."+)#+".\D7".B+08B+G76.+0+%"D.+08B+ standards generally accepted in India. Those Standards fair view in conformity with the accounting principles require that we plan and perform the audit to obtain reasonable generally accepted in India: 0))D"084.+01#D%+:-.%-."+%-.+[8084709+)%0%.H.8%)+0".+,"..+#,+ (i) in the case of the Balance Sheet, of the state of affairs H0%."709+H7))%0%.H.8%[+C8+0DB7%+7849DB.)+.20H7878G>+#8+0+%.)%+ of the Company as at 31st March, 2011; basis, evidence supporting the amounts and the disclosures 78+%-.+[8084709+)%0%.H.8%)[+C8+0DB7%+09)#+7849DB.)+0)).))78G+ ++'77*+78+%-.+40).+#,+%-.+!"#[%+08B+(#))+C44#D8%>+#,+%-.+9#))+ %-.+044#D8%78G+5"784759.)+D).B+08B+%-.+)7G87[408%+.)%7H0%.)+ of the Company for the year ended on that date; and made by the Management, as well as evaluating the overall (iii) in the case of the Cash Flow Statement, of the cash [8084709+)%0%.H.8%+5".).8%0%7#8[+O.+1.97.6.+%-0%+#D"+0DB7%+ \#:)+#,+%-.+P#H508/+,#"+%-.+/.0"+.8B.B+#8+%-0%+B0%.[ provides a reasonable basis for our opinion. E[+ I8+%-.+10)7)+#,+:"7%%.8+".5".).8%0%7#8)+".4.76.B+,"#H+%-.+ M[+ C)+".\D7".B+1/+%-.+P#H5087.)+'CDB7%#"R)+J.5#"%*+I"B.">+ Directors as on 31st March, 2011 taken on record by the Board ?@@M+'PCJI*+7))D.B+1/+%-.+P.8%"09+W#6."8H.8%+78+%."H)+#,+ #,+Q7".4%#")>+8#8.+#,+%-.+Q7".4%#")+7)+B7)\D097[.B+0)+#8+MAst T.4%7#8+??L'iC*+#,+%-.+P#H5087.)+C4%>+ASEN>+:.+.849#).+78+%-.+ March, 2011 from being appointed as a director in terms of C88.2D".+0+)%0%.H.8%+#8+%-.+H0%%.")+)5.47[.B+78+50"0G"05-)+ T.4%7#8+?Li'A*'G*+#,+%-.+P#H5087.)+C4%>+ASEN[ i+08B+E+#,+%-.+)07B+I"B."[ i[+ ]D"%-."+%#+#D"+4#HH.8%)+78+%-.+C88.2D".+".,."".B+%#+78+ paragraph 3 above, we report as follows: For DELOITTE HASKINS & SELLS (a) we have obtained all the information and explanations P-0"%.".B+C44#D8%08%) which to the best of our knowledge and belief were 'J.G7)%"0%7#8+K#[AALMNNO* necessary for the purposes of our audit; (b) in our opinion, proper books of account as required by law have been kept by the Company so far as it appears Rajesh K. Hiranandani from our examination of those books; Partner '=.H1.")-75+K#[+MNS?@* +'4*+%-.+a09084.+T-..%>+%-.+!"#[%+08B+(#))+C44#D8%+08B+%-.+ Cash Flow Statement dealt with by this report are in agreement with the books of account; =^=aCe>+?Lth+C5"79>+?@AA
43 Mahindra Ugine Steel Company Ltd.
ANNEXURE TO THE AUDITORS’ REPORT TO THE MEMBERS OF MAHINDRA UGINE STEEL COMPANY LIMITED (Referred to in paragraph 3 of our report of even date)
'7*+ e8+".)5.4%+#,+7%)+[2.B+0)).%)b 50"%7.)+97)%.B+78+%-.+J.G7)%."+H078%078.B+D8B."+T.4%7#8+M@A+ (a) The Company has maintained proper records showing #,+%-.+P#H5087.)+C4%>+ASEN[ full particulars, including quantitative details and (iv) In our opinion and according to the information and )7%D0%7#8+#,+%-.+[2.B+0)).%)[+e8+".)5.4%+#,+,D"87%D".>+ explanations given to us, having regard to the explanations [2%D".)+08B+#,[4.+.\D75H.8%>+9#40%7#8+7)+1"#0B9/+ that some of the items purchased are of special nature indicated unit-wise. and suitable alternative sources are not readily available + '1*+ F-.+[2.B+0)).%)+:.".+5-/)74099/+6."7[.B+BD"78G+%-.+ for obtaining comparable quotations, there is an adequate year by the Management in accordance with a regular internal control system commensurate with the size of the programme of verification which, in our opinion, Company and the nature of its business with regard to 5"#67B.)+,#"+5-/)7409+6."7[40%7#8+#,+099+%-.+[2.B+0)).%)+ 5D"4-0).)+ #,+ 786.8%#"/+ 08B+ [2.B+ 0)).%)+ 08B+ %-.+ )09.+ #,+ 0%+".0)#8019.+78%."609)[+C44#"B78G+%#+%-.+78,#"H0%7#8+ goods and services. During the course of our audit, we have and explanation given to us, no material discrepancies not observed any major weakness in such internal control :.".+8#%74.B+#8+)D4-+6."7[40%7#8[ system. + '4*+ F-.+[2.B+0)).%)+B7)5#).B+#,,+BD"78G+%-.+/.0">+78+#D"+ '6*+ C44#"B78G+%#+%-.+78,#"H0%7#8+08B+.259080%7#8)+G76.8+%#+D)>+:.+ #5787#8>+B#+8#%+4#8)%7%D%.+0+)D1)%08%709+50"%+#,+%-.+[2.B+ are of the opinion that there are no contracts or arrangements assets of the Company and such disposal has, in our that need to be entered into the register maintained under opinion, not affected the going concern status of the ).4%7#8+M@A+#,+%-.+P#H5087.)+C4%>+ASEN[ Company. '67*+ C44#"B78G+%#+%-.+78,#"H0%7#8+08B+.259080%7#8)+G76.8+%#+ (ii) In respect of its inventory: us, the Company has not accepted any deposit from the public during the year. In respect of unclaimed deposits, the + '0*+ C)+ .259078.B+ %#+ D)>+ %-.+ 786.8%#"7.)+ :.".+ 5-/)74099/+ P#H508/+-0)+4#H597.B+:7%-+%-.+5"#67)7#8)+#,+T.4%7#8)+ERC+ verified during the year by the Management at m+ERCC+#"+08/+#%-."+".9.608%+5"#67)7#8)+#,+%-.+P#H5087.)+ reasonable intervals. The stock of scrap, having regard C4%>+ASEN[ %#+7%)+80%D".+08B+H088."+#,+)%#"0G.>+:0)+6."7[.B+1/+ the Management by visual estimation (relied upon (vii) In our opinion, the internal audit functions carried out during by us). In respect of materials lying with third parties, %-.+/.0"+1/+0+["H+#,+P-0"%.".B+C44#D8%08%)+055#78%.B+1/+ 0+)7G87[408%+5#"%7#8+#,+786.8%#"/+7%.H)+-06.+1..8+ the Management have been commensurate with the size of 4#8["H.B+1/+%-.H[ the Company and the nature of its business. (b) In our opinion and according to the information (viii) We have broadly reviewed the books of account maintained and explanation given to us, having regard to our by the Company pursuant to the rules made by the Central comments with regard to stock of scrap referred in W#6."8H.8%+,#"+%-.+H078%.8084.+#,+4#)%+".4#"B)+D8B."+ '77*+'0*+01#6.>+%-.+5"#4.BD".)+#,+5-/)7409+6."7[40%7#8+ T.4%7#8+?@S'A*+'B*+#,+%-.+P#H5087.)+C4%>+ASEN+08B+0".+#,+ of inventories followed by the Management were the opinion that prima facie the prescribed accounts and reasonable and adequate in relation to the size of the records have been made and maintained. We have, however, Company and the nature of its business. not made a detailed examination of the records with a view to determining whether they are accurate or complete. We (c) In our opinion and according to the information are informed that the cost statements as at the end of the and explanations given to us, the Company has [8084709+/.0"+0".+78+%-.+5"#4.))+#,+1.78G+H0B.+D5[ H078%078.B+5"#5."+".4#"B)+#,+7%)+786.8%#"7.)[+C)+%-.+ )%#4;+#,+)4"05+7)+6."7[.B+1/+67)D09+.)%7H0%7#8+'".97.B+ '72*+ C44#"B78G+%#+%-.+78,#"H0%7#8+08B+.259080%7#8)+G76.8+%#+D)+ upon by us), no adjustments have been made for the in respect of statutory dues: difference between the stocks so determined and (a) The Company has generally been regular in depositing the book records as it has been explained to us by undisputed statutory dues, including Provident Fund, the Management that such an adjustment would not Investor Education and Protection Fund, Employees’ 1.+5"#5."+-0678G+".G0"B+%#+%-.+H.%-#B+#,+6."7[40%7#8+ State Insurance, Income-tax, Sales Tax, Wealth Tax, 08B+%-.+\D08%DH+#,+B7)4".5084/+8#%74.B[+K#+H0%."709+ Service Tax, Custom Duty, Excise Duty, Cess and B7)4".50847.)+:.".+8#%74.B+#8+5-/)7409+6."7[40%7#8[ other material statutory dues applicable to it with the (iii) The Company has neither granted nor taken any loans, appropriate authorities. ).4D".B+ #"+ D8).4D".B>+ %#&,"#H+ 4#H5087.)>+ ["H)+ #"+ #%-."+ (b) There were no undisputed amounts payable in respect
44 Mahindra Ugine Steel Company Ltd.
of Income-tax, Wealth Tax, Custom Duty, Excise Duty, (c) Details of dues of Income-tax, Sales Tax, Wealth Tax, Cess and other material statutory dues in arrears as at Service Tax, Custom Duty, Excise Duty and Cess 31st March, 2011 for a period of more than six months which have not been deposited as on 31st March, 2011 from the date they became payable. on account of disputes are given below:
Statute Nature of Dues Forum where Dispute is Period to which the amount relates Amount pending involved (Rs. in Crores) Income Tax Income Tax Commissioner of Income- ][n[+?@@?U?@@M>+][n[+?@@iU?@@E+08B+][n[+ N[?A (0:) %02+'C55.09)* ?@@SUA@ Sales Tax Sales Tax Maharashtra Sales Tax ][n[+?@@NU?@@L+08B+][n[+?@@LU?@@R R[EA (0:) Tribunal Excise Duty Excise Duty Customs, Excise & Service C5"79+ASSN+%#+I4%#1."+ASSS>+C5"79+ASSS+%#+ R[N? (0:) F02+C55.990%.+F"71D809 March 2004, January 2003 to February 2004 08B+C5"79+?@@M+%#+=0"4-+?@@L Excise Duty Deputy Commissioner July 2001 to June 2003 @[SM Excise Duty C))7)%08%+P#HH7))7#8." f08D0"/+?@@i+%#+T.5%.H1."+?@@i+08B+C5"79+ 0.47 ?@@R+%#+fD8.>+?@A@ Excise Duty Joint Commissioner I4%#1."+?@@i+%#+I4%#1."+?@@N A[iS Excise Duty Commissioner K#6.H1."+?@@N+%#+fD9/+?@@L @[EM Excise Duty CBB7%7#809+P#HH7))7#8." fD9/+?@@M+%#+Q.4.H1."+?@@M+08B+CDGD)%+ @[NL ?@@L+%#+=0"4-+?@@R
(x) The Company does not have accumulated losses as at 8#%+)7G87[408%9/+B7,,.".8%+,"#H+%-.+9#8G+%."H+0559740%7#8+08B+ 31st March, 2011 and the Company has not incurred cash accordingly, we report that funds raised on short-term basis 9#)).)+78+%-.+[8084709+/.0"+08B+78+%-.+7HH.B70%.9/+5".4.B78G+ -06.+8#%+)7G87[408%9/+1..8+D).B+BD"78G+%-.+/.0">+,#"+9#8GU [8084709+/.0"[ term investments. (xi) In our opinion and according to the information and '26777*+C44#"B78G+%#+%-.+78,#"H0%7#8+08B+.259080%7#8)+G76.8+%#+D)>+ explanations given to us, the Company has not defaulted in the Company has not made preferential allotment of shares %-.+".50/H.8%+#,+BD.)+%#+108;)+08B+[8084709+78)%7%D%7#8)[ %#+50"%7.)+08B+4#H5087.)+4#6.".B+78+%-.+J.G7)%."+H078%078.B+ (xii) In our opinion and according to the information and D8B."+T.4%7#8+M@A+#,+%-.+P#H5087.)+C4%>+ASEN[ explanations given to us, the Company has not granted '272*+ C44#"B78G+%#+%-.+78,#"H0%7#8+08B+.259080%7#8)+G76.8+%#+D)>+ any loans and advances on the basis of security by way of the Company has not issued any debentures during the year pledge of shares, debentures and other similar securities. and also there are no debentures outstanding as at year end. '2777*+ F-.+P#H508/+7)+8#%+0+4-7%+,D8B+#"+0+87B-7&HD%D09+1.8.[%+ (xx) The Company has not raised any money by public issue fund/society. during the year. (xiv) In our opinion and according to the information and (xxi) To the best of our knowledge and according to the information explanations given to us, the Company is not dealing and explanations given to us, no fraud by the Company in or trading in shares, securities, debentures and other and no fraud on the Company has been noticed or reported investments. during the year. (xv) In our opinion and according to the information and For DELOITTE HASKINS & SELLS explanations given to us, the Company has not given any GD0"08%..)+,#"+9#08)+%0;.8+1/+#%-.")+,"#H+108;)+#"+[8084709+ P-0"%.".B+C44#D8%08%) institutions. 'J.G7)%"0%7#8+K#[AALMNNO* (xvi) In our opinion and according to the information and explanations given to us, the term loans have been applied for the purposes for which they were obtained. Rajesh K. Hiranandani Partner '2677*+ C44#"B78G+%#+%-.+78,#"H0%7#8+08B+.259080%7#8)+G76.8+%#+D)+ and on an overall examination of the Balance Sheet, prima '=.H1.")-75+K#[+MNS?@* facie, the quantum of long term funds of the Company is =^=aCe>+?Lth+C5"79>+?@AA
45 Mahindra Ugine Steel Company Ltd.
BALANCE SHEET AS AT 31st MARCH, 2011 31st March, 2011 31st March, 2010 Schedule Rs. Crores Rs. Crores J)[+P"#".) SOURCES OF FUNDS SHAREHOLDERS’ FUNDS Share Capital C M?[iR M?[iR Employees Stock Options Outstanding A[?N 1.30 J.)."6.)+08B+TD"59D) B 131.47 137.43 ANE[?A 171.21 LOAN FUNDS T.4D".B+(#08) CASM[AS 207.13 ^8).4D".B+(#08) D AE@[Mi AM?[Ri MiM[EM MMS[SL Q.,."".B+F02+(701797%/+sK.%t+')..+8#%.+AS* N[E? S[RE EAE[?N E?A[@M APPLICATION OF FUNDS FIXED ASSETS E W"#))+a9#4; ER@[i@ ENL[RA (.))+b+Q.5".470%7#8 ?SM[NM ?NM[AR K.%+a9#4; ?RN[LL M@i[NM Capital Work-in-progress Ai[AN 1.47 M@@[SM M@N[A@ INVESTMENTS FAi[@S Ai[@S CURRENT ASSETS, LOANS AND ADVANCES W Inventories ANM[AE AEi[@R Sundry Debtors ?NE[S? ?MA[SE Cash and Bank Balances A[S? E[@i (#08)+08B+CB6084.) EL[L@ iL[RE iRR[NS iMR[S? LESS : CURRENT LIABILITIES AND PROVISIONS H PD"".8%+(701797%7.) ?LS[MR ??R[?N Provisions S[@L S[R? ?RR[iE ?MR[@R K.%+PD"".8%+C)).%) 200.24 ?@@[Ri EAE[?N E?A[@M K#%.)+%#+%-.+C44#D8%) ( T7G87[408%+C44#D8%78G+!#9747.) M
The Schedules referred to herein form an For and on behalf of the Board integral part of the Balance Sheet Keshub Mahindra Chairman In terms of our report attached K. V. Ramarathnam Managing Director For Deloitte Haskins & Sells Hemant Luthra Chartered Accountants Manoj Maheshwari Rajesh K. Hiranandani Partha Sarathi Roy Ajay Kadhao Harsh Kumar Directors Partner !"#$%&'#()(*$&+%[*$-Company Secretary Sanjiv Kapoor Sarojini Dikhale Mumbai : 27th+C5"79>+?@AA Mumbai : 27th+C5"79>+?@AA Daljit Mirchandani
46 Mahindra Ugine Steel Company Ltd.
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31st MARCH, 2011 31st March, 2011 31st March, 2010 Schedule Rs. Crores Rs. Crores J)[+P"#".) INCOME TC(3+I]+!JIQ^PFT&IF_3J+eKPI=3+]JI=+I!3JCFeIKT T09.+#,+5"#BD4%)+'W"#))*+')..+8#%.+AA* A>MEE[ME A>@LN[AA (.))+b+3247).+QD%/ AAi[RS LS[ME A>?i@[iN SSN[LN e84#H.+,"#H+5"#4.))78G+'W"#))*+')..+8#%.+AA* R[?R E[MA (.))+b+3247).+QD%/ 1.14 1.01 7.14 4.30 C"7)78G>+B7.)+08B+#%-."+)09.)+'W"#))* SR[Ai SA[LM (.))+b+3247).+QD%/ L[EA N[RN S@[NM Ri[RL =7)4.9908.#D)+J.4.75%)+')..+8#%.+A?* ?[?S A[SE A>Mi@[E? A>@RL[RR Other Income I ?[MS A[iN A>Mi?[SA A>@RS[Mi EXPENDITURE Manufacturing and other expenses J A>?RL[?S A>@?i[LS (Increase) / decrease in stocks K 'R[N?* 'AE[LR* Depreciation E MA[iE M@[RL Interest (see note 7) i?[MS i@[RM A>ME?[EA A>@R@[LA PROFIT / (LOSS) BEFORE TAX 'S[N@* R[NM Provision for tax - Current Tax - 1.00 - (Excess) provision for earlier years written back (net) (0.30) - U+Q.,."".B+F02+4-0"G.+&+'4".B7%*+')..+8#%.+AS* (3.33) ?[SN 'M[NM* M[SN PROFIT / (LOSS) AFTER TAX 'E[SL* i[NL Balance brought forward iN[?E iE[MR BALANCE AVAILABLE FOR APPROPRIATION i@[?R E@[@E Proposed Dividend on Equity Shares -M[?E F02+#8+Q767B.8B+s324.))+,#"+.0"97."+/.0")+:"7%%.8+104;t (0.01) @[EE BALANCE CARRIED FORWARD i@[?S iN[?E 30"878G)+5."+)-0".+'10)74*+',04.+609D.+J)[A@* 'A[Ri* 1.44 30"878G)+5."+)-0".+'B79D%.B*+',04.+609D.+J)[A@* 'A[Ri* 1.43 (see note 20) K#%.)+%#+%-.+C44#D8%) ( T7G87[408%+C44#D8%78G+!#9747.) M
The Schedules referred to herein form an For and on behalf of the Board integral part of the Balance Sheet Keshub Mahindra Chairman In terms of our report attached K. V. Ramarathnam Managing Director For Deloitte Haskins & Sells Hemant Luthra Chartered Accountants Manoj Maheshwari Rajesh K. Hiranandani Partha Sarathi Roy Ajay Kadhao Harsh Kumar Directors Partner !"#$%&'#()(*$&+%[*$- Company Secretary Sanjiv Kapoor Sarojini Dikhale Mumbai : 27th+C5"79>+?@AA Mumbai : 27th+C5"79>+?@AA Daljit Mirchandani
47 Mahindra Ugine Steel Company Ltd.
CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2011 31st March, 2011 31st March, 2010 Rs. Crores Rs. Crores J)[+P"#".) A. CASH FLOW FROM OPERATING ACTIVITIES K.%+!"#[%&'(#))*+1.,#".+%02 'S[N@* R[NM CBVD)%H.8%+,#"b Depreciation MA[iE M@[RL Dividend Income 0.00* (0.00)* Interest and commitment charges i?[MS i@[RM !"#67)7#8+&+'O"7%.+104;*+,#"+Q.1%)&CB6084.) (0.47) @[SN Employees Stock Option Charge/(credit) (0.04) - ^8".097).B+]#".7G8+324-08G.+'W078*&9#)) @[NN '@[R?* '!"#[%*&(#))+#8+)09.+#,+[2.B+0)).%)+'8.%* (0.01) 0.01 C)).%)+O"7%%.8+#,, @[@N @[NL Interest income '@[S?* '@[iR* 73.12 72.04 I5."0%78G+!"#[%+1.,#".+O#";78G+P057%09+4-08G.) NM[E? R@[NL Changes in: Trade and other receivables 'MN[?@* 'NE[LL* Inventories 'S[@L* '?S[LL* Trade and other Payables iS[AE ER[S? M[RR 'MN[N?* Cash generated from operations NL[i@ ii[@E Income-tax paid 'E[?N* '?[R?* NET CASH FROM OPERATING ACTIVITIES N?[Ai 41.23
B. CASH FLOW FROM INVESTING ACTIVITIES !D"4-0).+#,+[2.B+0)).%) '?i[AR* 'AE[?i* T09.+#,+[2.B+0)).%) @[AS 0.02 Dividends received (0.00)* 0.00* Interest received @[S? @[iR NET CASH USED IN INVESTING ACTIVITIES (23.07) (14.74)
C. CASH FLOW FROM FINANCING ACTIVITIES Proceeds from long term borrowings 4.00 M?[RR J.50/H.8%+#,+9#8G+%."H+1#""#:78G) 'i@[RN* 'NE[iN* K.%+5"#4..B)&'50/H.8%*+,"#H&#,+)-#"%+%."H+1#""#:78G) i@[E? MN[RS Dividends paid including taxes (3.77) (0.01) Interest and commitment charges paid 'i?[@R* (42.00) NET CASH USED IN FINANCING ACTIVITIES 'i?[AS* (37.70)
48 Mahindra Ugine Steel Company Ltd.
31st March, 2011 31st March, 2010 Rs. Crores J)[+P"#".) NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS : (3.12) (11.21) Opening Balance E[@i AN[?E Closing Balance A[S? E[@i o+B.8#%.)+0H#D8%)+9.))+%-08+J)[+E@>@@@
NOTES TO CASH FLOW STATEMENT FOR THE YEAR ENDED 31st MARCH, 2011 1 Cash and cash equivalents include: Cash and cheques on hand @[@N @[@R Balances with scheduled banks: + e8+PD"".8%+C44#D8%) A[Ri i[SE + e8+Q.5#)7%+C44#D8%) 0.02 0.01 Total cash and cash equivalents A[S? E[@i ?+ !".67#D)+/.0"R)+[GD".)+-06.+1..8+".G"#D5.B+:-.".6."+8.4.))0"/+%#+4#8,#"H+%#+%-7)+/.0"R)+490))7[40%7#8)[
In terms of our report attached For and on behalf of the Board
For Deloitte Haskins & Sells Keshub Mahindra Chairman Chartered Accountants K. V. Ramarathnam Managing Director Hemant Luthra Manoj Maheshwari Rajesh K. Hiranandani Partha Sarathi Roy Ajay Kadhao Harsh Kumar Directors Partner !"#$%&'#()(*$&+%[*$-Company Secretary Sanjiv Kapoor Sarojini Dikhale Mumbai : 27th+C5"79>+?@AA Mumbai : 27th+C5"79>+?@AA Daljit Mirchandani
49 Mahindra Ugine Steel Company Ltd.
SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET
31st March, 2011 31st March, 2010 Rs. Crores Rs. Crores J)[+P"#".) SCHEDULE ‘A’ - SHARE CAPITAL C^F_IJeT3Qb AAS>@@@>@@@ 3\D7%/+T-0".)+#,+J)[A@+.04- AAS[@@ AAS[@@ 3,100,000 J.B..H019.+PDHD90%76.+ !".,.".84.+T-0".)+#,+J)[+A@@+.04- 31.00 31.00 AE@[@@ AE@[@@ eTT^3Q>+T^aTPJea3Q+CKQ+!CeQU^! (see note 1) M?>iR?>E?S 3\D7%/+T-0".)+#,+J)[A@+.04->+,D99/+507BUD5 M?[iR M?[iR M?[iR M?[iR sAN>iNN>LRS+.\D7%/+)-0".)+'?@@SUA@+U+AN>iNN>LRS*+0".+-.9B+1/+=0-78B"0+ m+=0-78B"0+(7H7%.B+'=+m+=+(%B[*>+%-.+_#9B78G+P#H508/t[
SCHEDULE ‘B’ - RESERVES AND SURPLUS
P057%09+J.)."6.+'#8+".B.H5%7#8+#,+5".,.".84.+)-0".)> being the amount originally paid-up on shares forfeited) U+C)+5."+90)%+a09084.+T-..% 0.00* 0.00* P057%09+J.B.H5%7#8+J.)."6.+C44#D8% U+C)+5."+90)%+a09084.+T-..% AN[iN AN[iN T5.4709+J.)."6.+'78+%."H)+#,+T.4%7#8+iEeP+#,+%-.+J.)."6.+a08;+#,+e8B70+ C4%>+ASMi*+'#8+0H09G0H0%7#8* U+C)+5."+90)%+a09084.+T-..% - 0.17 (.))b+F"08),."+%#+W.8."09+J.)."6. - 0.17 - - W.8."09+J.)."6. U+C)+5."+90)%+a09084.+T-..% 74.72 Li[EE CBBb+F"08),."+,"#H+T5.4709+J.)."6. - 0.17 74.72 74.72 a09084.+78+!"#[%+08B+(#))+C44#D8% i@[?S iN[?E 131.47 137.43 o+B.8#%.)+0H#D8%)+9.))+%-08+J)[+E@>@@@
50 Mahindra Ugine Steel Company Ltd.
SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET
31st March, 2011 31st March, 2010 Rs. Crores J)[+P"#".) SCHEDULE ‘C’ - SECURED LOANS+')..+8#%.+R* (#08)+08B+CB6084.)+,"#H+a08;) - Term loans iN[?L RM[AM '".50/019.+:7%-78+#8.+/.0"+J)[+?E[AR+P"#".)l ?@@SUA@+U+J)[+i@[?E+P"#".)* -P0)-+P".B7%+08B+O#";78G+P057%09+Q.H08B+(#08+109084.) AiN[S? 124.00 ASM[AS 207.13 F-.+01#6.+9#08)+7849DB.)+78%.".)%+044"D.B+08B+BD.+#,+J)[+@[SL+P"#".l '?@@SUA@+U+J)[+A[@L+P"#".)*
SCHEDULE ‘D’ - UNSECURED LOANS T-#"%+F."H+CB6084.)+,"#H+a08;) N?[Ri iE[Mi I%-."+(#08)+,"#H+a08;) RL[E@ RL[E@ AE@[Mi AM?[Ri
SCHEDULE ‘E’ - FIXED ASSETS + 'J)[+P"#".)*
COST Q3!J3PeCFeIK OJeFF3K+QIOK+`C(^3 CTT3FT C)+#8+ CBB7%7#8)+ Deductions C)+#8+ Upto For the Deductions Upto C)+#8+ C)+#8+ 1.4.2010 and and 31.3.2011 31.3.2010 year and 31.3.2011 31.3.2011 31.3.2010 adjustments adjustments adjustments Tangible: Freehold land 1.01 - - 1.01 - - - - 1.01 1.01 (.0).-#9B+908B @[SE --@[SE @[AS @[@E - 0.24 0.71@[LN Buildings ER[Si A[?N -N@[?@ AS[N@ A[LN -?A[MN MR[Ri MS[Mi Plant and Machinery iRR[Ri11.73 0.44 E@@[AM 230.04 ?R[@N 0.40 ?EL[L@ 242.43 ?ER[R@ ]D"87%D".>+[2%D".)+08B+ #,[4.+.\D75H.8% A@[@E 0.43 0.20 A@[?R L[AN @[ER @[AS L[EE 2.73 ?[RS `.-749.) M[SN @[ME @[N@ 3.71 ?[NA @[EL 0.41 2.77 @[Si A[ME Intangible: Software i[@N @[@N - 4.12 M[ER 0.43 - 4.01 0.11 @[iR 567.81 13.83 1.24 580.40 263.18 31.45 1.00 293.63 286.77 Previous year iEE[?L AAM[NA1.07 ENL[RA 233.03 M@[RL0.72 ?NM[AR M@i[NM Capital work-in-progress Ai[AN 1.47 M@@[SM M@N[A@
51 Mahindra Ugine Steel Company Ltd.
SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET
31st March, 2011 31st March, 2010 Rs. Crores J)[+P"#".) SCHEDULE ‘F’ - INVESTMENTS (at cost - Long term) (Unquoted, unless otherwise stated) Trade Investments: Shares (fully paid up) -I"7))0+T5#8G.+e"#8+(%B[ ?LRE+.\D7%/+)-0".)+#,+J)[+A@+.04-+'\D#%.B*
- Dena Bank S>SAL+.\D7%/+)-0".)+#,+J)[+A@+.04-+'\D#%.B* 0.03 0.03
-O0"B-0+!#:."+P#H508/+(%B[ NA>SA>MSE+490))+C+.\D7%/+)-0".)+#,+J)[+A@+.04- N[AS - LR>@R>N@E+490))+C+".B..H019.+5".,.".84.+)-0".)+#,+J)[+A@+.04- L[RA -
Other Investments : Shares (fully paid up) -=0-78B"0+_#%.9)+08B+J.)#"%)+(%B[ iS>SS@+.\D7%/+)-0".)+#,+J)[+A@+.04- @[@E @[@E -=0-78B"0+m+=0-78B"0+P#8%.4-+(%B[ ME>@@@+.\D7%/+)-0".)+#,+J)[+A@+.04- 0.04 0.04 -O78B#:+#,+%-.+O#"9B+=#%.9)+!6%[+(%B[ ?+.\D7%/+)-0".)+#,+J)[+A@@+.04- 0.00* 0.00* -=0-78B"0+P#8)%"D4%7#8+P#[+(%B[ M@@>@@@+.\D7%/+)-0".)+#,+J)[+A@+.04- 0.30 0.30 - Kotak Mahindra Bank N>@@@+.\D7%/+)-0".)+#,+J)[+E+.04-+'\D#%.B* 0.00* 0.00* -F-.+e8B708+08B+30)%."8+38G78.."+P#[+(%B[ M+#"B780"/+)-0".)+#,+J)[+A@+.04- 0.00* 0.00* A@>@@@+.\D7%/+)-0".)+#,+J)[A@+.04- 0.02 0.02 T-0".+C559740%7#8+=#8./b -O0"B-0+!#:."+P#H508/+(%B[ - 14.00 14.44 14.44 (.))+b+!"#67)7#8+,#"+B7H78D%7#8+78+609D.+#,+786.)%H.8%) @[ME @[ME Ai[@S Ai[@S K#%.)+b+'A*+CGG".G0%.+#,+\D#%.B+786.)%H.8%)+b - Cost 0.03 0.03 U+=0";.%+`09D. @[iN 0.40 '?*+CGG".G0%.+#,+D8\D#%.B+786.)%H.8%)+b - Cost 14.41 14.41 o+B.8#%.)+0H#D8%)+9.))+%-08+J)[+E@>@@@
52 Mahindra Ugine Steel Company Ltd.
SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET
31st March, 2011 31st March, 2010 Rs. Crores Rs. Crores J)[+P"#".) SCHEDULE ‘G’ - CURRENT ASSETS, LOANS AND ADVANCES Inventories : Stores and spare parts (includes material in %"08)7%+#,+J)[+?[AR+4"#".)l+?@@SUA@+U+J)[+A[AA+4"#".*[ ?N[@N ?E[NM (##).+%##9) A[AS A[?R J0:+H0%."709)+'7849DB.)+H0%."709+78+%"08)7%+#,+J)[+A?[A@+ 4"#".)l+?@@SUA@+U+J)[+Ai[NE+4"#".)*[ EE[NA EE[E@ T.H7U[87)-.B+G##B) LM[ES NE[RL Finished goods N[L@ E[R@ ANM[AE AEi[@R Sundry Debtors : (unsecured) Over six months - considered good AE[S@ A[E? - considered doubtful L[N? S[NL Others - considered good ?E@[@? 230.43 - considered doubtful ?[Ni A[@N ?LN[AR ?i?[NR (.))+b+!"#67)7#8+,#"+B#D1%,D9+B.1%) A@[?N 10.73 ?NE[S? ?MA[SE Cash and Bank Balances : Cash on hand @[@N @[@R Balances with Scheduled Banks - in Current accounts A[Ri i[SE - in Fixed Deposit accounts 0.02 0.01 A[RN i[SN A[S? E[@i (#08)+08B+CB6084.)+b (unsecured) CB6084.)+".4#6."019.+78+40)-+#"+78+;78B or for value to be received - considered good ME[@E 30.72 - considered doubtful ?[LE ?[LE ML[R@o 33.47* (.))+b+!"#67)7#8+,#"+B#D1%,D9+0B6084.) ?[LE ?[LE ME[@E 30.72 Taxation - advance payments less provision ??[Ei AN[SL Balances - Excise, Port Trust, etc. 0.11 @[AN EL[L@ iL[RE iRR[NS iMR[S? * including capital advances of E[MN M[LR
53 Mahindra Ugine Steel Company Ltd.
SCHEDULES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET
31st March, 2011 31st March, 2010 Rs. Crores Rs. Crores J)[+P"#".) SCHEDULE ‘H’ - CURRENT LIABILITIES AND PROVISIONS P^JJ3KF+(eCae(eFe3T+b+oo C44.5%084.) 134.31 AAi[?R Sundry Creditors Total outstanding dues of : - micro enterprises and small enterprises (see note AR* 3.13 A[Ni -creditors other than micro enterprises and small enterprises AMS[AM A@S[SL Ai?[?N AAA[NA Dividend warrants posted but not encashed 0.37 0.34 =0%D".B+[2.B+B.5#)7%+:0""08%)+5#)%.B+1D%+8#%+.840)-.B 0.02 0.02 Interest warrants posted but not encashed 0.02 0.02 Interest accrued but not due on loans 2.40 A[SS ?LS[MR ??R[?N !JI`eTeIKT+b Provision for taxation (net of payments) 0.14 0.14 !"#67)7#8+,#"+3H59#/..+a.8.[%)+')..+8#%.+?E* R[SM E[RR Provision for proposed dividend on equity shares - M[?E Provision for tax on dividend - @[EE S[@L S[R? ?RR[iE ?MR[@R
** There is no amount due and outstanding to be credited to the Investor Education and Protection Fund.
SCHEDULES ANNEXED TO AND FORMING PART OF THE PROFIT AND LOSS ACCOUNT
SCHEDULE ‘I’ - OTHER INCOME Dividends from long term investments: - Trade - 0.00* - Other 0.00* 0.00* 0.00* 0.00* Interest : U+ I8+e84#H.+F02+J.,D8B @[NE - U+ I%-."+s7849DB78G+%02+B.BD4%.B+0%+)#D"4. + J)[@[@?+P"#".+'?@@SUA@+U+J)[@[@E+P"#".*t 0.27 @[iR J.8% @[AR @[AS !"#[%+#8+)09.+#,+[2.B+0)).%)+'8.%* 0.01 - Miscellaneous Income A[?R @[LS ?[MS A[iN o+B.8#%.)+0H#D8%)+9.))+%-08+J)[+E@>@@@
54 Mahindra Ugine Steel Company Ltd.
SCHEDULES ANNEXED TO AND FORMING PART OF THE PROFIT AND LOSS ACCOUNT
31st March, 2011 31st March, 2010 Rs. Crores Rs. Crores J)[+P"#".) SCHEDULE ‘J’ - MANUFACTURING AND OTHER EXPENSES 1) J0:+H0%."709)+08B+1#DG-%+#D%+4#H5#8.8%)+4#8)DH.B s7849DB78G+#D%)7B.+5"#4.))78G+4#)%)+J)[+AM[ML+4"#".) ?@@SUA@+U+J)[+S[EN+4"#".)+u)..+8#%.+S'0*vt RRN[LR 707.04 2) Payment to and provision for employees : (a) salaries, wages, bonus, etc. NS[LE NA[@R (b) company’s contribution to provident and other funds M[NR M[E@ (c) staff welfare expenses S[iM N[Li (d) gratuity A[MR (0.32) Ri[?i 71.00 3) Operating and other expenses: (a) stores consumed NL[EA N?[M@ (b) repairs and maintenance to buildings (including stores 4#8)DH.B+b+J)[+A[SA+4"#".)+?@@SUA@+U+J)[+@[LA+4"#".* 2.77 1.33 (c) repairs and maintenance to machinery (including stores 08B+)50".+50"%)+4#8)DH.B+J)[+AE[SL+4"#".)l+?@@SUA@+U+ J)[+R[M@+4"#".)* ?@[iE 11.22 (d) repairs and maintenance to others N[RL M[RE (e) power and fuel AL?[SN AM?[SM (f) rent (net of recoveries) 1.34 1.40 (g) rates and taxes A[?N 2.22 (h) insurance charges 0.72 @[EM (i) bad debts/advances written off A[EA A[N? (j) provision for doubtful debts/advances (net) (0.47) @[SN (k) other expenses (see note 4 and note 17) 41.33 ?N[N@ MAN[?E ?ii[SN 4) (#))+#8+)09.+#,+[2.B+0)).%)+'8.%* - 0.01 E* ]72.B+C)).%)&+P057%09+:#";U78U5"#G".))+:"7%%.8+#,, @[@N @[NL N*Excise duty charge/ (credit) (0.04) 1.11 A>?RL[?S A>@?i[LS o+B.8#%.)+0H#D8%)+9.))+%-08+J)[+E@>@@@
SCHEDULE ‘K’ - (INCREASE) / DECREASE IN STOCKS (Increase) / Decrease in stock of ]787)-.B+G##B)+08B+T.H7U[87)-.B+G##B) Opening stock : T.H7U[87)-.B+G##B) NE[RL EM[@A Finished goods E[R@ ?[RR Total LA[NL EE[RS (.))b Closing stock : T.H7U[87)-.B+G##B) LM[ES NE[RL Finished goods N[L@ E[R@ R@[?S LA[NL (Increase) / decrease in stocks 'R[N?* 'AE[LR*
55 Mahindra Ugine Steel Company Ltd.
SCHEDULE ‘L’ NOTES TO ACCOUNTS
1. The Subscribed Capital includes: a) 30,000 Equity shares allotted as fully paid-up pursuant to contracts without payment having been received in cash; + 1*+ N@@>@@@+3\D7%/+)-0".)+099#%%.B+4#8).\D.8%+%#+%-.+T4-.H.+#,+CH09G0H0%7#8+:7%-+a08;+#,+a0"#B0+(%B[l + 4*+ R?A>MAS+3\D7%/+)-0".)+099#%%.B+#8+4#86.")7#8+#,+A@<+P#86."%719.+T."7.)+QWR+Q.1.8%D".)+#,+%-.+,04.+609D.+#,+J)[+?[@E+P"#".)+ 0%+0+5".H7DH+#,+J)[+AE+5."+)-0".[+F-.).+B.1.8%D".)+:.".+#"7G78099/+7))D.B+4#8).\D.8%+%#+%-.+T4-.H.+#,+CH09G0H0%7#8+:7%-+ a08;+#,+a0"#B0+(%B[l + B*+ AA>@@@>@@@+3\D7%/+)-0".)+099#%%.B+0)+,D99/+507BUD5+'0%+0+5".H7DH+#,+J)[+ME+5."+)-0".*+5D")D08%+%#+0+4#8%"04%+%#+B7)4-0"G.+50"%+ of the consideration for acquisition of the Company’s Stamping Unit at Kanhe; + .*+ M>NE@>RNN+3\D7%/+)-0".)+099#%%.B+0)+,D99/+507BUD5+a#8D)+)-0".)+1/+:0/+#,+4057%097)0%7#8+#,+)-0".+5".H7DH+044#D8%+08B+ 044DHD90%.B+5"#[%)l + ,*+ A>EE@>Ri@+3\D7%/+)-0".)+099#%%.B+4#8).\D.8%+%#+%-.+T4-.H.+#,+CH09G0H0%7#8+#,+!"080/+T-..%H.%09+T%0H578G)+(7H7%.B>+ `09D.978.+_#%.9)+08B+J.)#"%)+(7H7%.B+08B+P#8)#9.+3)%0%.+08B+e86.)%H.8%)+(7H7%.B+:7%-+%-.+P#H508/[ 2. Estimated amount of contracts remaining to be executed on capital account and not provided for as on 31st+=0"4->+?@AA+J)[+M?[Ri+ P"#".)+'?@@SU?@A@b+J)[+N[EM+P"#".)*[ 3. Invoices raised during the period for price differences/interest on delayed payments, which are under negotiation, are accounted for if and when realised. i[+ I%-."+.25.8).)+78+T4-.BD9.+QfR+7849DB.+b
31st March, 2011 31st March, 2010 Rs. Crores J)[+P"#".) (a) J.HD8."0%7#8+#,+0DB7%#")+oo CDB7%+,..) 0.23 0.21 P#H508/+(0:+=0%%.") 0.00* 0.00* Other services 0.11 0.10 J.7H1D").H.8%+#,+#D%+#,+5#4;.%+.25.8).) 0.01 0.00* (b) (i) Cash discount on sales 0.11 @[?N (ii) Commission to other selling agents 0.97 0.13 (c) Donation 0.03 0.01 + K#%.b++o+Q.8#%.)+0H#D8%+9.))+%-08+J)[+E@>@@@&U + + + oo+CH#D8%)+H.8%7#8.B+0".+8.%+#,+)."674.+%02 E[+ 0*++ =080G."709+".HD8."0%7#8+,#"+%-.+/.0"+%#+%-.+=080G78G+Q7".4%#"+7849DB.B+78+%-.+!"#[%+08B+(#))+044#D8%+7)+J)[+@[SN+P"#".+ '?@@SU?@A@b+J)[+@[RS+P"#".*+7849DB78G+4#8%"71D%7#8+%#+5"#67B.8%+,D8B+08B+#%-."+,D8B)+J)[+@[@S+P"#".+'?@@SU?@A@+b+J)[+@[@S+ P"#".*>+5."\D7)7%.)+J)[+@[?S+P"#".+'?@@SU?@A@b+J)[+@[?N+P"#".*+08B+5.",#"H084.+50/+J)[+@[??+P"#".+'?@@SU?@A@+b+J)[+@[??+ P"#".l+)D1).\D.8%9/+507B+J)[+@[AM+P"#".+08B+.24.))+5"#67)7#8+#,+J)[+@[@S+P"#".+".6.").B*[+F-.+5"#67)7#8)+,#"+G"0%D7%/+08B+ 9.06.+.840)-H.8%+0".+8#%+7849DB.B+01#6.+0)+).50"0%.+[GD".)+0".+8#%+06079019.[+F-.+".HD8."0%7#8+,#"+?@A@UAA+7)+507B+0,%."+ #1%07878G+%-.+8.4.))0"/+055"#609)+,"#H+%-.+P.8%"09+W#6."8H.8%+08B+%-.+)-0".-#9B.")[ + 1*+ T7%%78G+,..)+50/019.+%#+8#8U:-#9.U%7H.+B7".4%#")+7849DB.B+78+%-.+!"#[%+08B+(#))+044#D8%+7)+J)[+@[@i+P"#".+'?@@SU?@A@+b+ J)[+@[@i+P"#".* N[+ P#8%78G.8%+(701797%7.)+8#%+5"#67B.B+,#"+78+".)5.4%+#,+b + 0*+ a799)+B7)4#D8%.B+1D%+8#%+H0%D".B+J)[+MA[NM+P"#".)+'?@@SU?@A@b+J)[+AM[SM+P"#".)*[ + + U+J.5".).8%)+4D)%#H.")R+1799)+B7)4#D8%.B[ b) Excise duty: + + 3247).+H0%%.")+,#"+:-74-+%-.+P#H508/+7)+4#8%78G.8%9/+97019.+0H#D8%78G+J)[+AM[iN+P"#".)+'?@@SU?@A@b+J)[+R[RR+P"#".)*[+F-7)+ includes:
56 Mahindra Ugine Steel Company Ltd.
++7*+J)[+@[E?+P"#".+'?@@SU?@A@b+J)[+@[E?+P"#".*+U+".90%78G+%#+%-.+H.%-#B+#,+609D0%7#8+#,+4D)%#H."+5"#4.)).B+[87)-.B+G##B)+ for the purpose of discharge of excise duty, where the customer supplies raw material. This matter has been settled 1/+PD)%#H>+3247).+m+T."674.+F02+C55.990%.+F"71D809+'P3TFCF*+78+,06#D"+#,+%-.+P#H508/[+F-.+Q.50"%H.8%+-0)+G#8.+78+ further appeal in the Supreme Court. ++77*+J)[+?[LL+P"#".)+'?@@SU?@A@b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i[i@+P"#".)+'?@@SU?@A@+b+J)[+K79*U+".90%78G+%#+099.G.B+06079H.8%+#,+P.860%+4".B7%+#8+786#74.)+7))D.B+1/+4."%078+".G7)%.".B+ B.09.")+:7%-#D%+04%D099/+".4.7678G+%-.+H0%."709+4#6.".B+%-.".78[+F-.+4#HH7))7#8."+-0)+"07).B+0+B.H08B+#,+J)[+A[ML+P"#".)+ with an equal amount of interest and penalty. + + 76*+ J)[+A[NR+P"#".)+'?@@SU?@A@b+J)[+A[EL+P"#".)*+U+1.78G+#%-."+H0%%.")[ In respect of (b) (i) above and other valuation issues, the Department has continued to issue show cause cum demand notices ,#"+)D1).\D.8%+5."7#B)+0GG".G0%78G+J)[+i[@S+P"#".)+'?@@SU?@A@b+J)[+i[@?+P"#".)*[ c) Sales Tax: + + T09.)+F02+H0%%.")+,#"+:-74-+%-.+P#H508/+7)+4#8%78G.8%9/+97019.+0H#D8%78G+J)[+S[@S+P"#".)+'?@@SU?@A@b+J)[+@[ER+P"#".*[+F-7)+ includes: + + 7*+ 0+B.H08B+#,+J)[+R[EA+P"#".)+'?@@SU?@A@+b+J)[+K79*+,#"+][n[+?@@NU@L+08B+][n[+?@@LU@R+1/+%".0%78G+%-.+1"084-+%"08),."+ #,+G##B)+0)+)09.)+H0B.+1/+%-.+P#H508/+08B+,#"+8#8+)D1H7))7#8+#,+QPR+,#"H)[+F-.+0H#D8%+7)+7849D)76.+#,+78%.".)%+08B+ penalty. + + 77*+ I%-."+)09.)+%02+H0%%.")+J)[+@[ER+P"#".+'?@@SU?@A@+b+J)[+@[ER+P"#".*[ + B*+ F020%7#8+B.H08B)+0G078)%+:-74-+%-.+P#H508/+7)+78+055.09+J)[+AL[AS+P"#".)+'?@@SU?@A@b+J)[+AN[Ri+P"#".)*[ + .*+ I%-."+H0%%."+,#"+:-74-+%-.+P#H508/+7)+4#8%78G.8%9/+97019.+7)+J)[+AL[@?+P"#".)+'?@@SU?@A@b+J)[+Ai[AR+P"#".)*[+F-7)+".5".).8%)+ the dispute in the rate of water charges demanded by the Irrigation Department based on a unilateral increase in rates and %-.+0H#D8%+:-74-+%-.+P#H508/+-0)+1..8+50/78G[+F-.+01#6.+0H#D8%+7849DB.)+08+787%709+B.H08B+#,+J)[+@[EL+P"#".+D5+%#+MAst =0"4->+ASSE+"07).B+1/+%-.+e""7G0%7#8+Q.50"%H.8%+:-74-+:0)+B.47B.B+78+,06#D"+#,+%-.+P#H508/+78+%-.+4#D"%+#,+%-.+P7679+fDBG.>+ T.87#"+Q767)7#8+!086.9[+F-.+109084.+#,+J)[+AN[iE+P"#".)+'?@@SU?@A@b+J)[+AM[NA+P"#".)*+".5".).8%)+B7,,.".8%709+B.H08B)+ raised by the Irrigation Department and interest computed thereon by the company for subsequent periods. f) Other claims against the Company not acknowledged as debts: + + 7[+ J)[+K79+'?@@SU?@A@b+J)[+S[?R+P"#".)*+5."%07878G+%#+)-#:+40D).+8#%74.+,#"+50/H.8%+#,+4D)%#H+BD%/+78+".)5.4%+#,+%-.+`09D.+ a0).B+CB6084.+(74.8).)+'`aC(*+5D"4-0).B+1/+%-.+P#H508/+08B+D).B+,#"+7H5#"%+#,+G##B)[+C)+%-.+.25#"%+#197G0%7#8+ 0G078)%+%-.+01#6.+`aC(+:0)+09".0B/+,D9[99.B+1/+%-.+).99."+#,+%-.+974.8).>+%-.+P#H508/+055.09.B+0G078)%+%-.+)07B+8#%74.+ :7%-+P3TFCF+:-#+-0B+G"08%.B+0+)%0/[+QD"78G+%-.+/.0"+%-.+P3TFCF+-0)+).%+0)7B.+%-.+7H5DG8.B+#"B."+08B+099#:.B+%-.+ appeal. + + 77[+ P907H+5."%07878G+%#+H0%."709+)D559/+4#8%"04%+J)[+S[?R+P"#".)+'?@@SU?@A@b+J)[+S[@R+P"#".)*[ + + 777[+ P907H)+".90%78G+%#+9.0).+".8%09)+J)[+@[RL+P"#".+'?@@SU?@A@b+J)[+@[RM+P"#".*[ 7. Interest:
31st March, 2011 31st March, 2010 Rs. Crores J)[+P"#".) I8+[2.B+9#08) 26.27 ?i[MR On others 16.12 AN[iE 42.39 i@[RM R[+ '0*+ F."H+9#08)+,"#H+a08;)+0".+).4D".B+1/+0+[")%+.\D7%019.+H#"%G0G.+#8+099+7HH#6019.+5"#5."%/+08B+5908%+08B+H04-78."/+0%%04-.B+ to the earth, both present and future, ranking pari-passu. + '1*+ CB6084.)+,#"+:#";78G+4057%09+,"#H+a08;)+0".+).4D".B+1/+-/5#%-.40%7#8+#,+"0:+H0%."709)>+[87)-.B+G##B)>+G##B)+78+5"#4.))>+ stores, book debts, etc.
57 Mahindra Ugine Steel Company Ltd.
S[+ J0:+H0%."709)+08B+1#DG-%+#D%+4#H5#8.8%)+4#8)DH.Bb
31st March, 2011 31st March, 2010 Qty Value Qty `09D.+ M/T Rs. Crores M/T J)[+P"#".) a) 1) Ferrous scrap 146,028 292.85 AiN>SRN ?iR[M? 2) Ferro alloys 5,801 139.95 E>AiR Si[@S 3) Other metals 4,003 11.78 M>NAR S[MM 4) Slag making materials 12,289 7.21 10,073 E[AE E*Metal sheets 76,692 356.70 L@>MMN ?SA[AR N*Purchased billets 353 3.03 MS? 2.41 7) Components and tools - 61.88 - 47.00 R*Processing charges - 13.37 - S[EN 886.78 707.04
31st March, 2011 31st March, 2010 Rs. Crores % J)[+P"#".) < b) Imported – at landed cost 162.50 18 A?S[NE AR Indigenously obtained 724.28 82 ELL[MS R? 886.78 100 707.04 100 10. Stores and spares consumed :
31st March, 2011 31st March, 2010 Rs. Crores % J)[+P"#".) < Imported – at landed cost 9.82 11 R[AN 11 Indigenously obtained 75.57 89 NM[AE RS 85.39 100 71.31 100 + P#8)DH5%7#8+78+\D08%7%/+08B+78+609D.+7)+0,%."+4#8)7B."78G+.24.)).)+08B+)-#"%0G.)+0)4."%078.B+#8+5-/)7409+6."7[40%7#8+08B+:"7%.+ off for deterioration, unserviceable items. 11. Information for class of goods manufactured : Particulars in respect of goods manufactured: P90))+#,+W##B) Unit of (74.8).B+ Installed C4%D09+ Opening Stock Closing Stock T09.)+s)..+8#%.+'76*t Measure- Capacity Capacity production Qty `09D.+ Qty `09D.+ Qty `09D.+ ment !."+C88DH+ +!."+C88DH+ s)..+8#%.+ J)[+P"#".) J)[+P"#".) J)[+P"#".) s)..+8#%.+ s)..+8#%.+ '76*t '7*+08B+'77*t '777*t Tool, alloy and M/T 180,000 180,000 126,232 - - - - 126,232 774.11 Special steel M/T 'AR@>@@@* 'AR@>@@@* 'A??>NML* (-) (-) (-) (-) 'A??>NML* 'N?N[A@* Pressed Sheet metal M/T 66,400 66,400 55,275 948 5.80 859 6.70 55,364 473.49 components and M/T 'NN>i@@* 'NN>i@@* 'E@>E??* 'iMS* '?[RR* 'SiR* 'E[R@* 'E@>@AM* 'MLi[SN* assemblies Total 948 5.80 859 6.70 181,596 1,247.60 'iMS* '?[RR* 'SiR* 'E[R@* 'AL?>NE@* 'A>@@A[@N* Notes : (i) In respect of Tool, alloy and Special Steel, the industrial licence permits manufacture of castings and forgings up to 2,000 M/T within the above overall licensed capacity. +'77*+e8+".)5.4%+#,+!".)).B+T-..%+H.%09+4#H5#8.8%)+08B+0)).H197.)>+%-.+974.8).B+405047%/+7)+0)+5."+%-.+=.H#"08BDH+[9.B+:7%->+ 08B+BD9/+04;8#:9.BG.B+1/+%-.+T.4".%0"70%+,#"+e8BD)%"709+C))7)%084.[ +'777*+F-.+78)%099.B+405047%/+#8+08+78%.G"0%.B+10)7)+7)+4."%7[.B+1/+%-.+=080G78G+Q7".4%#">+:-74-+%-.+0DB7%#")+-06.+".97.B+#8+:7%-#D%+ 6."7[40%7#8+1.78G+0+%.4-87409+H0%%."[
58 Mahindra Ugine Steel Company Ltd.
(iv) Production and Sales in respect of Pressed Sheet metal components and assemblies includes customer’s materials processed. + '6*+ !".67#D)+/.0"R)+[GD".)+-06.+1..8+B7)49#).B+78+50".8%-.)7)[ 12. Miscellaneous receipts includes : 31st March, 2011 31st March, 2010 Rs. Crores J)[+P"#".) Income from services rendered 0.69 @[NN 13. P[e[][+`09D.+#,+eH5#"%) 31st March, 2011 31st March, 2010 Rs. Crores J)[+P"#".) (a) J0:+H0%."709) 178.14 AiM[LS (b) Stores and spares 9.70 R[R@ (c) Capital goods 0.35 - 14. Expenditure in foreign currency (on payment basis) 31st March, 2011 31st March, 2010 Rs. Crores J)[+P"#".) Interest 0.71 A[MN Others 0.16 @[@S AE[ Earnings in foreign exchange 31st March, 2011 31st March, 2010 Rs. Crores J)[+P"#".) (a) ][I[a[+`09D.+#,+.25#"%) 26.91 N[ML (b) Freight and insurance 0.62 @[AR AN[+ J.).0"4-+08B+Q.6.9#5H.8%+.25.8B7%D".+B.17%.B+%#+!"#[%+08B+(#))+C44#D8%+0GG".G0%.)+J)[+A[iR+P"#".)+'?@@SU?@A@b+J)[+A[@E+ Crores) consisting of salaries and power, based on allocations made by the Company and materials. AL[+ F-.+8.%+B7,,.".84.+78+,#".7G8+.24-08G.+B.17%.B+%#+%-.+!"#[%+08B+(#))+C44#D8%+7)+J)[+@[NA+P"#".)+'?@@SU?@A@b+4".B7%.B+%#+%-.+!"#[%+ 08B+(#))+044#D8%+7)+J)[+A[iM+P"#".)*[ AR[+ Q7)49#)D".+".\D7".B+D8B."+=74"#>+TH099+08B+=.B7DH+38%."5"7).)+Q.6.9#5H.8%+C4%>+?@@N+'%-.+C4%*+0".+0)+,#99#:)b J)[+P"#".)
Sr. No. Particulars 31st March, 2011 31st March, 2010 (a) !"7847509+CH#D8%+ID%)%08B78G 3.13 A[Ni (b) e8%.".)%+QD.+#8+%-.+01#6.+J)[+L>iNN+'?@@SU?@A@b+J)[+L>MSE&U* 0.00* 0.00* (c ) Principal amount paid during the year beyond appointed day 3.66 AM[E? (d) Interest paid during the year beyond the appointed day 0.08 - (e) CH#D8%+ #,+ 78%.".)%+ BD.+ 08B+ 50/019.+ ,#"+ %-.+ 5."7#B+ #,+ B.90/+ 78+ H0;78G+ 0.02 @[@R 50/H.8%+:7%-#D%+0BB78G+%-.+78%.".)%+)5.47[.B+D8B."+%-.+C4% (f) CH#D8%+#,+78%.".)%+044"D.B+08B+".H07878G+D8507B+0%+%-.+.8B+#,+%-.+/.0" 0.02 @[@R (g) CH#D8%+#,+,D"%-."+78%.".)%+".H07878G+BD.+08B+50/019.+.6.8+78+%-.+ - - succeeding years, until such date when the interest dues as above are actually paid to the small enterprise for the purpose of disallowance as a B.BD4%719.+.25.8B7%D".+D8B."+).4%7#8+?M+#,+%-.+C4%[ + o+Q.8#%.)+0H#D8%+9.))+%-08+J)[+E@>@@@&U Note: + 0[+ F-.+01#6.+78,#"H0%7#8+08B+%-0%+G76.8+78+T4-.BD9.+U+_+QPD"".8%+(701797%7.)+08B+!"#67)7#8)R+".G0"B78G+H74"#+.8%."5"7).)+08B+ small enterprises has been determined on the basis of information available with the Company. This has been relied upon by the auditors. + 1[+ F-.+78%.".)%+4#H5D%0%7#8+,#"+6.8B#")>+:-#+-06.+)D1H7%%.B+%-.7"+".G7)%"0%7#8+4."%7[40%.)+BD"78G+%-.+/.0">+7)+B#8.+,"#H+%-.+B0%.+ #,+".4.75%+#,+)D4-+4."%7[40%.)+1/+%-.+P#H508/[
59 Mahindra Ugine Steel Company Ltd.
AS[+ F-.+4#H5#8.8%)+#,+Q.,."".B+%02+9701797%/+08B+0)).%)+0)+0%+MAst March, 2011 are as under: 31st March, 2011 31st March, 2010 Rs. Crores J)[+P"#".) Deferred tax liability: U+I8+[)409+099#:084.)+#8+[2.B+0)).%) 25.21 ?i[SE 25.21 ?i[SE (.))b+Q.,."".B+%02+0)).%) - On employee separation and retirement 2.28 A[RS - On provision for doubtful debts 3.32 M[NE - On unabsorbed depreciation 13.09 S[iE - On other timing differences - 0.11 K.%+(701797%/ 6.52 S[RE The Deferred tax asset on unabsorbed depreciation has been recognised since the company has timing differences, the reversal #,+:-74-+:799+".)D9%+78+)D,[47.8%+784#H.+78+,D%D".+%#+).%+#,,+%-.+0)).%+4".0%.B[ 20. Earnings per share have been computed as under: 31st March, 2011 31st March, 2010 a) K.%+!"#[%&'(#))*+,#"+%-.+/.0"+0,%."+%02+'J)[+P"#".)* (5.96) i[NL b) O.7G-%.B+C6."0G.+3\D7%/+T-0".)+'K#)[* 32,482,529 M?>iR?>E?S c) Q79D%.B+3\D7%/+T-0".)+'K#)[* 32,595,451 M?>NA?>A?i d) i) a0)74+30"878G)+5."+)-0".+'J)[*+'0*&'1* (1.84) 1.44 ii) Q79D%.B+30"878G+5."+)-0".+'J)[*+'0*&'4* (1.84) 1.43
?A[+ J.90%.B+50"%7.)+B7)49#)D".)b 0*+ J.90%.B+50"%7.)+:-.".+P#8%"#9+.27)%)b + _#9B78G+P#H508/++ + =0-78B"0+m+=0-78B"0+(7H7%.B 1*+ K0H.)+#,+#%-."+".90%.B+50"%7.)+:7%-+:-#H+%"08)04%7#8)+-06.+%0;.8+5904.+BD"78G+%-.+/.0" + A*+ ].99#:+)D1)7B70"7.)+ =0-78B"0+]#"G78G)+(%B + + + =0-78B"0+WDV0"0%+F"04%#")+(%B + + + =0-78B"0+e8%."%"0B.+(7H7%.B + + + a"7)%9.4#8.+e8B70+(7H7%.B + + + =0-78B"0+(#G7)%74)+(%B + + + =0-78B"0+W.0")+m+F"08)H7))7#8+!6%[+(%B + + + =0-78B"0+`.-749.+=08D,04%D".")+(7H7%.B+']#"H."9/+=0-78B"0+CD%#H#%76.+(7H7%.B* + + + =0-78B"0+T%..9+T."674.+P.8%".+(%B + + + =0-78B"0+K067)%0"+CD%#H#%76.)+(7H7%.B[ + + + =0-78B"0+P0)%78G)+(%B+']#"H."9/+=0-78B"0+_78#B0/+e8BD)%"7.)+(%B* + + + =0-78B"0+CD%#H#179.+Q7)%"71D%#")+!6%[+(%B+']#"H."9/+=0-78B"0+J.80D9%+!6%[+(%B* + + + ]09;.8"#%-+DH,#"H%.4-87;+W=a_ + + + =0-78B"0+P#8)D9%78G+38G78..")+(%B Mahindra Metalcastello S.r.l. + + + W.).8;)4-H7.B.+T4-8.7B."+WH1_ + + + =0-78B"0+_#97B0/)+m+J.)#"%)+e8B70+(%B[ + + + =0-78B"0+]7")%+P-#74.+O-..9)+(%B + + + =0-78B"0+38G78.."78G+m+P-.H7409+!"#BD4%)+(%B + + + =0-78B"0+]7")%+P-#74.+T."674.)+(%B + ?*+ I%-."+W"#D5+P#H5087.)+ =0-78B"0+P#H5#)7%.)+(%B + + + =0-78B"0+T#80+(%B+'f#78%+`.8%D".+#,+_#9B78G+P#H508/* + M*+ c./+=080G.H.8%+!.")#88.9+ ="[+c[+`[+J0H0"0%-80H>+=080G78G+Q7".4%#"
60 Mahindra Ugine Steel Company Ltd. Key Mr. K V Mr. Rs. Crores Personnel Management Ramarathnam -- Co. Group Others - Sona Ltd Mahindra Ltd Co. Group Mahindra Composites Composites Ltd First Choice Services Mahindra Engg & Mahindra Chemical Prod.s Ltd Prod.s Ltd First choice Wheels Mahindra Ltd. India Holidays Mahindra & Resorts Sch- GmbH neider Gesenk- schmiede S.r.l. Mahindra Metalcastello Ltd Mahindra Engineers Consulting GMBH technik umform- Falkenroth Ltd.) Pvt Ltd Mahindra Mahindra (Formerly Distributor Automobile Renault Pvt Ltd Castings Mahindra Limited. Navistar Mahindra Automotives Fellow Subsidiaries Ltd Steel Center Service Mahindra tive Manu- Vehicle Vehicle Limited Limited) Automo- facturers (formerly Mahindra Mahindra Pvt Ltd Gears & Mahindra Transmission Transmission Ltd Logistics Mahindra India Ltd Bristlecone Ltd Mahindra Intertrade (-) (0.04) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (0.07) (-) (-) (-) (-) (-) Ltd Gujarat Tractors Tractors Mahindra FS FS FS FS FS FS FS FS FS FS FS FS FS FS FS FS FS FS FS Others - Ltd Forgings Mahindra - 26.63 - 318.19 - - - - 0.05 1.87 ------0.01 ------0.96 ------5.85 ------0.87 ------& (-) (-)(-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (5.00) (-) (-) (5.00) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (13.94) (-) (253.19) (-) (-) (-) (-) (0.01) (-) (-) (-) (-) (-) (-) (0.15) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (0.20) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (1.12) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) Co Ltd 0.11 1.60 - - - - 0.16 ------0.02 - 0.11 6.52 ------0.04 ------0.05 - 0.57 ------4.57 0.05 - 24.74 - 0.19 - - 0.01 ------0.01 0.01 - - 0.23 ------0.27 ------0.20 8.12 - - - - 0.16 - - 0.03 ------0.07 - 1.65 ------82.99 33.50 0.16 0.00 - - 0.30 2.69 - 2.66 - 1.42 - - 0.02 ------0.24 - (0.11) (-) (-) (0.20) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (1.81) (-) (-) (11.61) (0.07) (0.24) (-) (-) (-) (0.81) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (0.57) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (0.02) (-) (-) (-) (-) (-) (-) (-) (-) (0.01) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (0.64) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (0.50) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) 4.44 *(1.22) - (-) - (-) (0.10) - (0.61) (0.88) - 0.65 (-) - (-) (-) - - (-) (-) - (-) - (-) - (0.05) - (-) - (-) (0.01) - (-) - (-) - (-) - (-) - (-) 0.01 (-) - - - (1.31) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (0.02) (-)(1.00) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (0.01) (-) (-) (0.05) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (-) (62.97) (42.04) (0.07) (0.05) (-) (-) (0.02) (0.10) (-) (-) (0.88) (1.33) (-) (-) (0.00) (-) (-) (-) (-) (-) (-) (0.54) (-) (378.62) (140.41) (1.19) (3.84) (-) (-) (0.02) (-) (-) (6.02) (10.80) (2.52) (0.09) (-) (0.00) (-) (-) (-) (-) (-) (-) (3.63) (-) Mahindra Mahindra outstanding Credit Balances receivables / Other Debtors doubtful debts and advances ii) Deposits Particulars Holding ICD receivedICD refunded -Payables - -i) Other payables / - -Receivables i) Other ------20.00 - 10.00 20.00 10.00 ------Assets / Capex Services iii) Provision for and Services Personnel charge Services/Share of Corporate expenses key managerial personnel Services Doubtful Debts written back Received Doubtful Debts made during the year Equity Dividend Paid Interest expenses ------0.40 0.12 - - - - 14 Outstandings Sr. Sr. No. 7 Purchase of Fixed 1 Purchases of Goods 8 Deputation of 2 Receiving of 9 Remuneration to 3 Rent Paid5 1.31 Rendering of ------11 Provision for 12 Cash Discount 4 Sale of Goods 456.796 145.30 Rent Income 1.41 0.13 - - - - - 0.05 0.60 - - - - - 9.59 - - 8.96 - - - - - 0.10 ------1.27 - - - - 10 Provision for 13 Finance: c) carried out with the related parties referred to in (a) and (b) above ordinary course of business: Transactions FS :
61 Mahindra Ugine Steel Company Ltd.
22. Derivative Instruments: + F-.+P#H508/+-0)+.8%.".B+78%#+]#":0"B+324-08G.+P#8%"04%)+s1.78G+0+B."760%76.+78)%"DH.8%t>+:-74-+0".+8#%+78%.8B.B+,#"+%"0B78G+#"+ speculative purpose, but for hedge purpose, to establish the amount of reporting currency required or available at the settlement date of certain payables and receivables. The following are the outstanding Foreign Exchange Contracts entered into by the Company as on 31st March, 2011:
Currency CH#D8%+78+P"#".)Buy/Sell Cross Currency US Dollar 1.64 Buy Rupees (US Dollar) 'A[AR* (Buy) 'JD5..)* US Dollar - Sell Rupees (US Dollar) (0.04) (Sell) 'JD5..)* The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below: + 0[+ CH#D8%)+50/019.+78+,#".7G8+4D"".84/+#8+044#D8%+#,+%-.+,#99#:78Gb
e8B708+JD5..) Foreign Currency (in Crores) (in Crores) Import of goods and services 6.08 US $ 0.14 'E[SR* (US $ 0.13) 0.44 Euro 0.01 (0.23) (Euro 0.00*) 0.01 GBP 0.00* 'Ke(* 'Wa!+Ke(* 0.03 CHF 0.00* 'Ke(* 'P_]+Ke(* + + F-.).+0H#D8%)+".5".).8%+W##B)+78+%"08)7%+08B+50"%+#,+%-.+0H#D8%+7)+978;.B+%#+5.",#"H084.+#,+H0%."709[ + 1[+ CH#D8%)+".4.76019.+78+,#".7G8+4D"".84/+#8+044#D8%+#,+%-.+,#99#:78Gb
e8B708+JD5..) Foreign Currency (in Crores) (in Crores) Export of goods and services 3.68 US $ 0.08 (1.14) (US $ 0.03) 0.35 EURO 0.01 'Ke(* '3^JI+Ke(* + F-.+P#H508/+-0)+#D%)%08B78G+1#""#:78G)+#,+f!n+?ME[L?+P"#".)+:-74-+7)+.\D7609.8%+#,+^T+w+?[@@+P"#".)+'?@@SU?@A@b+f!n+?ME[L?+ Crores which is equivalent of US $ 2.00 Crores) under the External Commercial Borrowing facility. These foreign currency loans 08B+78%.".)%+%-.".#8+-06.+1..8+4#H59.%.9/+-.BG.B+D)78G+0+):05+)%"D4%D".+4#86."%78G+%-.+9701797%/+78%#+0+,D99+\.BG.B+JD5..+9701797%/[ + !".67#D)+/.0"R)+[GD".)+-06.+1..8+B7)49#).B+78+50".8%-.)7)[ + o+Q.8#%.)+0H#D8%)+9.))+%-08+J)[+E@>@@@&U
62 Mahindra Ugine Steel Company Ltd.
?M[+ T3W=3KF+J3!IJFeKWb + 0*+ !Je=CJn+T3W=3KF+eK]IJ=CFeIK + + 'a^TeK3TT+T3W=3KF*
2010-11 ?@@SUA@ 2010-11 ?@@SUA@ External Sales Total Rs. Crores J)[+P"#".) Rs. Crores J)[+P"#".) 1T.GH.8%+J.6.8D.+'K.%* - Steel 786.73 NML[N? 786.73 NML[N? - Stamping 553.79 iE@[?N 553.79 iE@[?N - Segment Total 1,340.52 A>@RL[RR 1,340.52 A>@RL[RR 2T.GH.8%+J.)D9% - Steel - - 10.54 M@[E@ - Stamping - - 31.35 ?i[?N - Segment Total - - 41.89 Ei[LN Unallocated corporate expenses net of unallocated - - (10.02) 'E[LR* income !"#[%+1.,#".+78%.".)%+08B+%020%7#8 - - 31.87 iR[SR Interest expenditure - - (42.39) 'i@[RM* Interest income - - 0.92 @[iR (Charge)/Credit for Taxation - - 3.63 'M[SN* 3!"#[%+&+'(#))*+0,%."+F020%7#8 - - (5.97) i[NL Other Information 1T.GH.8%+C)).%) - Steel - - 506.24 E@i[LL - Stamping - - 258.88 ?AL[R? - Segment Total - - 765.12 L??[ES Unallocated corporate assets - - 38.59 MN[E? F#%09+C)).%) - - 803.71 LES[AA 2T.GH.8%+(701797%7.) - Steel - - 210.61 ARE[RE - Stamping - - 71.40 iE[MR - Segment Total - - 282.01 231.23 Unallocated corporate liabilities - - 357.75 MEL[SL F#%09+(701797%7.) - - 639.76 ERS[?@ 3 Capital Expenditure - Steel - - 7.84 N[iE - Stamping - - 18.68 i[RE - Segment Total - - 26.52 11.30 4 Depreciation / Impairment - Steel - - 18.44 AN[S@ - Stamping - - 13.01 AM[SL - Segment Total - - 31.45 M@[RL E K#8+40)-+.25.8B7%D".+'8.%*+#%-."+%-08+B.5".470%7#8 - Steel - - (0.79) ?[iE - Stamping - - 0.32 'A[iS* - Segment Total - - (0.47) @[SN b) T3PIKQCJn+T3W=3KF+eK]IJ=CFeIK+ 'W3IWJC!_ePC(+T3W=3KF* 1T.GH.8%+J.6.8D. - Within India - - 1,312.99 A>@RA[MM - Outside India - - 27.53 N[EE U+F#%09+J.6.8D. - - 1,340.52 A>@RL[RR 2T.GH.8%+C)).%) - Within India - - 799.68 LEN[MR - Outside India - - 4.03 2.73 U+F#%09+T.GH.8%+C)).%) - - 803.71 LES[AA 3 Capital Expenditure - Within India - - 26.52 11.30 - Outside India - - - - - Total Capital Expenditure - - 26.52 11.30
63 Mahindra Ugine Steel Company Ltd.
NOTES: A[+ F-.+P#H508/+-0)+4#8)7B.".B+1D)78.))+).GH.8%+0)+5"7H0"/+).GH.8%+,#"+B7)49#)D".[+F-.+).GH.8%)+-06.+1..8+7B.8%7[.B+%0;78G+ into account the organisational structure as well as the differing risk and returns of the segments. Steel segment comprises sale of alloy steel and rings. Stamping segment comprises sale of pressed metal components. Inter segment revenue is market led. There are no inter segment transactions during the year and in the previous year. 2. The geographical segments considered for disclosure are : - Sales within India - Sales outside India ?i[+ F-.+P#H508/+-0B+G"08%.B+Ai?>E@@+08B+SEE>E@@+I5%7#8)+BD"78G+%-.+/.0"+.8B.B+MAst+=0"4->+?@@R+08B+MAst March, 2007 respectively %#+.97G719.+.H59#/..)+7849DB78G+Q7".4%#")+#,+%-.+P#H508/[+ID%+#,+%-.+01#6.+I5%7#8)+G"08%.B>+MRN>@@@+I5%7#8)+-06.+905).B+%799+ 31st+=0"4->+?@AA+:-74-+7849DB.)+AE>@@@+I5%7#8)+905).B+BD"78G+%-.+/.0"[ +F-.+.\D7%/+).%%9.B+I5%7#8)+6.)%+#8.+/.0"+,"#H+%-.+B0%.+#,+%-.+G"08%+08B+0".+.2."47)019.+#8+)5.47[.B+B0%.)+78+i+%"084-.)+:7%-78+0+ 5."7#B+#,+E+/.0")+,"#H+%-.+B0%.+#,+6.)%78G[+F-.+.97G719.+.H59#/..+HD)%+.2."47).+0+H787HDH+#,+E@+']7,%/+I89/*+I5%7#8)+#"+I5%7#8)+ vested, whichever is lower; and the Options in respect of each tranche may be exercised on the date of vesting or at the end of .04-+/.0"+,"#H+%-.+B0%.+#,+6.)%78G>+5"#67B.B+%-0%+0%+%-.+.8B+#,+[6.+'E*+/.0")+,"#H+%-.+B0%.+#,+6.)%78G+'#"+)D4-+.2%.8B.B+5."7#B+0)+ H0/+1.+B.47B.B+1/+%-.+J.HD8."0%7#8+P#HH7%%..*>+%-.+.97G719.+.H59#/..+H0/+.2."47).+099+I5%7#8)+6.)%.B+1D%+8#%+.2."47).B+1/+ him/her failing which all the unexercised Options shall lapse. The Compensation costs of stock Options granted to employees are accounted by the Company using the intrinsic value method.
Summary of stock options No. of stock options Weighted average exercise price (Rs.) Options outstanding on 1st+C5"79>+?@A@ 727,000SN Options granted during the year - - Options forfeited/lapsed during the year AE>@@@ SS Options exercised during the year - - Options outstanding on 31st March, 2011 712,000 SN Options vested but not exercised on 31st March, 2011 NSA>RLE SL Information in respect of options outstanding as at 31st March, 2011:
Exercise price Number of Options Weighted average Remaining life J)[+SS[@@ NMA>E@@ 0.42 Yrs J)[+LM[@@ R@>E@@ A[ES+n") + F-.+,07"+609D.+#,+#5%7#8)+G"08%.B+#8+ARth+CDGD)%>+?@@N+7)+J)[+NL[?E+5."+)-0".[ The fair value of options granted during the year on 24th+I4%#1.">+?@@L+7)+J)[+iM[MS+5."+)-0".[ + F-.+,07"+609D.+-0)+1..8+4094D90%.B+D)78G+%-.+a904;+T4-#9.)+I5%7#8)+!"7478G+H#B.9+08B+%-.+)7G87[408%+0))DH5%7#8)+H0B.+78+%-7)+ regard are as follows:
Grant dated Grant dated 24th October, 2007 18th August, 2006 J7);+,"..+78%.".)%+"0%. L[SE< L[?L< 325.4%.B+(7,. M[E+n") M[E+n") 325.4%.B+`#90%797%/ N@[@@< LM[Ei< Expected dividend yield i[M?< i[NE< Exercise price J)[+LM[@@ J)[+SS[@@ Stock Price J)[+RE[E@ J)[+AAL[iE + F-.+6#90%797%/+7)+4094D90%.B+4#8)7B."78G+%-.+B079/+6#90%797%/+#,+%-.+)%#4;+5"74.)+#8+K0%7#809+)%#4;+.24-08G.>+#6."+0+5."7#B+5"7#"+%#+%-.+ date of grant, corresponding with the expected life of the options.
64 Mahindra Ugine Steel Company Ltd.
In respect of options granted under the Employee Stock Options Plan, in accordance with guidelines issued by the SEBI, since the scheme provides for graded vestings, the vesting period is determined separately for each vesting portion of the option, as if the option was, in substance a multiple option and the amount of employee compensation cost is accounted for and amortised 044#"B78G9/+#8+0+)%"07G-%+978.+10)7)+#6."+%-.+6.)%78G+5."7#B)[+P#8).\D.8%9/+)090"7.)>+:0G.)>+1#8D)>+.%4[+7849DB.)+4".B7%+#,+J)[+@[@M+ P"#".+'?@@SUA@b+J)[+K79*+1.78G+%-.+0H#"%7g0%7#8+#,+B.,."".B+.H59#/..)+4#H5.8)0%7#8>+0,%."+0BVD)%78G+,#"+".6.")09)+#8+044#D8%+#,+ options lapsed. Had the Company adopted fair value method in respect of Options granted, the employee compensation cost would have been -7G-."+1/+J)[+@[@N+P"#".+'?@@SUA@b+9#:."+1/+J)[+@[A@+P"#".*>+(#))+C,%."+F02+-7G-."+1/+J)[+@[@i+P"#".+'?@@SUA@+b+!"#[%+0,%."+%02+ -7G-."+1/+J)[+@[@L+P"#".*+08B+1#%-+%-.+10)74+08B+B79D%.B+.0"878G)+5."+)-0".+:#D9B+-06.+1..8+9#:."+1/+J)+@[@A+'?@@SUA@b+-7G-."+ 1/+J)[+@[@?*[ + F-.+01#6.+B7)49#)D".)+-06.+1..8+H0B.+4#8).\D.8%+%#+%-.+7))D.+#,+WD7B084.+K#%.+#8+C44#D8%78G+,#"+3H59#/..+T-0".U10).B+ !0/H.8%)+7))D.B+1/+%-.+e8)%7%D%.+#,+P-0"%.".B+C44#D8%08%)+#,+e8B70+78+%-.+/.0"+?@@E+08B+055974019.+,#"+%-.+5."7#B+#8+#"+0,%."+A)%+ C5"79>+?@@E[ ?E[+ 98"/$*&&(>&,&[1(6/!,0= ( O( U&[,&'(>&,&[1(6/!,0= ++F-.+4#H508/+H0;.)+088D09+4#8%"71D%7#8)+%#+%-.+3H59#/..)R+W"#D5+W"0%D7%/U4DHU(7,.+C))D"084.+T4-.H.+#,+%-.+(7,.+e8)D"084.+ P#"5#"0%7#8+#,+e8B70>+0+,D8B.B+B.[8.B+1.8.[%+5908+,#"+\D097,/78G+.H59#/..)[+F-.+)4-.H.+5"#67B.)+,#"+9DH5+)DH+50/H.8%+%#+ 6.)%.B+.H59#/..)+0%+".%7".H.8%+#"+#8+%."H780%7#8+#,+.H59#/H.8%+#,+08+0H#D8%+.\D7609.8%+%#+AE+B0/)+)090"/+,#"+.04-+4#H59.%.B+ year of service or part thereof in excess of six months. In case of one unit, the company pays two -third months salary to executives who have completed 10 years of service payable for each completed year of service or part thereof in excess of six months. In case of death of the employee while in service, gratuity is paid for an amount equivalent to 30 days salary for each completed year of service or part thereof in excess of six months. The ceiling limit for gratuity payment at the Steel Division is restricted to 20 months salary and for Stampings Division is as 5."+%-.+W"0%D7%/+C4%>+ASL?+.24.5%+,#"+.2.4D%76.)+0%+#8.+D87%+:-#+.8V#/+8#+4.7978G+97H7%[+`.)%78G+#44D")+D5#8+4#H59.%7#8+#,+[6.+ years of service. The company makes monthly contributions to Provident Fund managed by MUSCO Staff Provident Fund Trust for qualifying .H59#/..)[+^8B."+%-.+)4-.H.)>+%-.+4#H508/+7)+".\D7".B+%#+4#8%"71D%.+0+)5.47[.B+5."4.8%0G.+#,+%-.+50/"#99+4#)%)+%#+,D8B+%-.+ 1.8.[%)[+QD"78G+%-.+/.0"+4#H508/+-0)+4#8%"71D%.B+J)[+A[LM+P"#".)+'?@@SUA@b+J)[+A[iL+P"#".)*+%#+%-.+!"#67B.8%+]D8B+F"D)%[ + + e8+;..578G+:7%-+%-.+WD7B084.+#8+eH59.H.8%78G+C44#D8%78G+T%08B0"B+'CT*+AE+'J.67).B*+#8+3H59#/..+a.8.[%)+8#%7[.B+1/+%-.+ P#H5087.)+'C44#D8%78G+T%08B0"B)*+JD9.)>+?@@N>+.H59#/."+.)%0197)-.B+5"#67B.8%+,D8B+%"D)%)+0)+Q.[8.B+a.8.[%+!908)>+)784.+ %-.+P#H508/+7)+#197G.B+%#+H..%+78%.".)%+)-#"%,099>+7,+08/>+:7%-+".)5.4%+%#+4#6.".B+.H59#/..)[+C44#"B78G+%#+%-.+=080G.H.8%>+ %-.+C4%D0"/+-0)+#578.B+%-0%+04%D0"709+609D0%7#8+4088#%+1.+05597.B+%#+".97019/+H.0)D".+5"#67B.8%+,D8B+9701797%7.)+78+%-.+01).84.+ #,+GD7B084.+,"#H+%-.+C4%D0"709+T#47.%/+#,+e8B70[+C44#"B78G9/>+%-.+P#H508/+7)+4D"".8%9/+8#%+78+0+5#)7%7#8+%#+5"#67B.+#%-."+".90%.B+ B7)49#)D".)+0)+".\D7".B+1/+%-.+0,#".)07B+CTAE+".0B+:7%-+C44#D8%78G+T%08B0"B)+a#0"B+WD7B084.[+_0678G+".G0"B+%#+%-.+0)).%)+ #,+%-.+,D8B+08B+%-.+".%D"8+#8+786.)%H.8%)>+%-.+.8%7%/+5"#67B.)+,#"+)-#"%,099+78+78%.".)%+#8+08+.)%7H0%.B+10)7)[+C44#"B78G9/+0+ 5"#67)7#8+#,+J)[+@[RN+P"#".+-0)+1..8+H0B.+BD"78G+%-.+/.0"+'?@@SUA@b+J)[+K79*+%#:0"B)+%-.+GD0"08%..+G76.8+,#"+8#%7[.B+78%.".)%+ rates. The major categories of plan assets in which the contributions are invested by MUSCO Staff Provident Fund Trust are as under:
Category % of each to total plan assets 2010-11 ?@@SUA@ a#8B)+m+T.4D"7%7.)+#,+P.8%"09+W#6."8H.8% 13.36 Ai[AR a#8B)+m+T.4D"7%7.)+#,+T%0%.+W#6."8H.8% 9.74 S[E? Bonds & Securities of Public Sector Undertakings 36.23 M?[RM Special Deposits with Banks 40.67 43.47
65 Mahindra Ugine Steel Company Ltd.
U&1!./&'('.0-/$02#&0($,(U&[,&'(>&,&[1(6/!,@(Y#!12.1*(!#&(!0(7$//$F0= Particulars GRATUITY 31st March, 2011 31st March, 2010 Rs. Crores J)[+P"#".) I325.8).)+&+'e84#H.*+".4#G87).B+78+%-.+)%0%.H.8%+#,+!"#[%+08B+(#))+C44#D8%+,#"+%-.+ /.0"+.8B.B+MA)%+=0"4->+?@AA+'Q7)49#).B+78+)4-.BD9.+QfR+D8B."+%-.+-.0B+Q!0/H.8%+ to and provision for employees’) 1. Current Service Cost 0.78 @[RL 2. Past Service Cost 0.42 - 3. Interest Cost 1.15 1.00 4. Expected return on plan assets (1.21) (1.00) E[ C4%D0"709+'W078)*&+(#)).) 0.22 'A[AS* N[Total Expense / (Income) 1.36 (0.32) IIK.%+C)).%+&+'(701797%/*+".4#G87).B+78+%-.+a09084.+T-..%+0)+0%+MA)%+=0"4->+?@AA 1. !".).8%+`09D.+#,+Q.[8.B+a.8.[%+I197G0%7#8+0)+0%+MA)%+=0"4->+?@AA 16.19 AE[@A 2. Fair value of plan assets as at 31st March, 2011 (15.15) 'AE[MM* 3. K.%+C)).%&'(701797%/*+0)+0%+MA)%+=0"4->+?@AA (1.04) 0.32 III Change in Obligation during the year ended 31st March, 2011 1. !".).8%+`09D.+#,+Q.[8.B+a.8.[%+I197G0%7#8+0%+%-.+1.G78878G+#,+%-.+/.0" 15.01 Ai[RN 2. Current Service Cost 0.78 @[RL 3. Past Service Cost 0.42 - 4. Interest Cost 1.15 1.00 E[ C4%D0"709+'W078)*&+(#)).) (0.04) '@[RE* N[ a.8.[%+!0/H.8%) (1.13) '@[RL* 7. !".).8%+`09D.+#,+Q.[8.B+a.8.[%+I197G0%7#8+0)+0%+%-.+.8B+#,+%-.+/.0" 16.19 AE[@A e` P-08G.+78+C)).%)+BD"78G+%-.+/.0"+.8B.B+MA)%+=0"4->+?@AA 1. Plan assets at the beginning of the year 15.33 AA[SS 2. Expected return on plan assets 1.21 1.00 3. Contributions by employer - ?[RL 4. C4%D09+1.8.[%)+507B (1.13) '@[RL* E[ C4%D0"709+W078)&+'(#)).)* (0.26) 0.34 N[Plan assets at the end of the year 15.15 AE[MM ` C4%D09+".%D"8+#8+!908+C)).%)+'Ap?* 0.95 1.34 1. Expected return on plan assets 1.21 1.00 2. C4%D0"709+W078)&+'(#)).)* (0.26) 0.34 `e The major categories of plan assets as a percentage of total Plan ]D8B.B+:7%-+(eP+#,+e8B70+')..+K#%.+1.9#:* 100% A@@< `ee C4%D0"709+C))DH5%7#8)b As at C)+0%+ 31st March, 2011 31st March, 2010 1. Q7)4#D8%+J0%. 8.10% L[S@< 2. Expected rate of return on plan assets 8.50% R[E@< 3. Mortality pre-retirement 1994-96 ASSiUSN Mortality base Mortality base 4. Mortality post-retirement - - E[Turnover rate 1 to 2% A+%#+?< N[Salary escalation rate 7.50% L[E@< Note: The Company is unable to obtain the details of major category of plan assets from the Insurance Company (LIC of India) and hence the disclosure thereof is not made.
66 Mahindra Ugine Steel Company Ltd.
B. Net Assets/ (Liability) recognised in the Balance Sheet as at respective year ends and experience adjustments:
Particulars 31st March, 31st March, 31st March, 31st March, 31st March, 2011 2010 ?@@S ?@@R 2007 Rs. Crores J)[+P"#".) J)[+P"#".) J)[+P"#".) J)[+P"#".) 1. !".).8%+`09D.+#,+Q.[8.B+a.8.[%+I197G0%7#8+ 16.19 AE[@A Ai[RN AA[NA S[iS 2. Fair value of plan assets (15.15) 'AE[MM* 'AA[SS* 'A@[?R* 'S[RS* 3. ]D8B.B+T%0%D)+sTD"59D)&'Q.[47%*t (1.04) 0.32 '?[RL* (1.33) 0.40 4. K.%+C)).%&'9701797%/*+ (1.04) 0.32 '?[RL* (1.33) 0.40 E[Experience adjustment arising on: a. !908+(701797%7.) 0.18 0.42 0.14 @[NM @[AS b. !908+C)).%) (0.26) 0.34 0.02 0.40 (0.13) C. Basis used to determine expected rate of return on assets: This is based on expectation of the average long term rate of return expected on investments of the Fund during the estimated term of the obligations. D.+F-.+.)%7H0%.)+#,+,D%D".+)090"/+784".0).)>+4#8)7B.".B+78+04%D0"709+609D0%7#8>+%0;.)+78%#+044#D8%+%-.+78\0%7#8>+).87#"7%/>+5"#H#%7#8+ and other relevant factors such as supply and demand in the employment market. E.+ F-.+4#H508/+.25.4%)+%#+,D8B+%-.+.8%7".+)-#"%,099+78+%-.+3H59#/..)R+W"#D5+W"0%D7%/U4DHU(7,.+C))D"084.+T4-.H.+:7%-+(7,.+ e8)D"084.+P#"5#"0%7#8+#,+e8B70+BD"78G+%-.+[")%+\D0"%."+#,+%-.+8.2%+[8084709+/.0"[ 5T( U&[,&'(H$,1#.)21.$,(6/!,0= + + F-.+P#H508/+H0;.)+!"#67B.8%+]D8B>+TD5."088D0%7#8+]D8B+08B+3TeP+4#8%"71D%7#8)+%#+B.[8.B+4#8%"71D%7#8+".%7".H.8%+1.8.[%+ 5908)+,#"+\D097,/78G+.H59#/..)[+^8B."+%-.+)4-.H.)>+%-.+P#H508/+7)+".\D7".B+%#+4#8%"71D%.+0+)5.47[.B+5."4.8%0G.+#,+%-.+ 50/"#99+4#)%)+%#+,D8B+%-.+1.8.[%)[ + + P#H508/R)+4#8%"71D%7#8+507B&50/019.+BD"78G+%-.+/.0"+%#+I,[4."R)+TD5."088D0%7#8+]D8B>+!.8)7#8+]D8B+08B+3TeP+0".+".4#G87g.B+ 78+%-.+!"#[%+08B+(#))+C44#D8%[+F-.).+0H#D8%)+0".+".4#G87g.B+0)+08+.25.8).+08B+7849DB.B+78+%-.+T4-.BD9.+QfR+#,+%-.+!"#[%+08B+ (#))+C44#D8%+D8B."+%-.+-.0B78G+O!0/H.8%+%#+08B+5"#67)7#8+,#"+.H59#/..)P+78+978.+7%.H+P#H508/R)+4#8%"71D%7#8+%#+5"#67B.8%+ and other funds.
31st March, 2011 31st March, 2010 Rs. Crores J)[+P"#".) i) I,[4."R)+TD5."088D0%7#8+]D8B 0.56 0.77 ii) Family Pension Fund 0.98 @[SA iii) Employees State Insurance Scheme 0.30 0.23 ?N[+ CBB7%7#809+78,#"H0%7#8+5D")D08%+%#+%-.+5"#67)7#8)+#,+!0"%+e`+#,+T4-.BD9.+`e+%#+%-.+P#H5087.)+C4%>+ASEN+'T..+T4-.BD9.+QKR* ?L[+ !".67#D)+/.0"R)+[GD".)+-06.+1..8+".G"#D5.B+:-.".6."+8.4.))0"/+%#+4#8,#"H+%#+%-7)+/.0"R)+490))7[40%7#8[
67 Mahindra Ugine Steel Company Ltd.
SCHEDULE ‘M’ SIGNIFICANT ACCOUNTING POLICIES 1. Basis for preparation of accounts : The accounts have been prepared to comply in all material respects with the applicable accounting principles in India, the relevant 5"#67)7#8)+#,+%-.+P#H5087.)+C4%>+ASEN+7849DB78G+C44#D8%78G+T%08B0"B)+8#%7[.B+D8B."+%-.+)07B+C4%[ ?[+ 'C*+ ]72.B+C)).%)+b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on the remaining balance of the liability. Depreciation is provided for as follows: + + F-.+P#H508/+5"#67B.)+B.5".470%7#8+#8+T%"07G-%+(78.+=.%-#B+0%+%-.+"0%.)+08B+78+%-.+H088."+5".)4"71.B+78+T4-.BD9.+xe`+%#+ %-.+P#H5087.)+C4%>+ASEN>+.24.5%+0)+)%0%.B+78+8#%.+'7*+1.9#:+b + + 7*+ F-.+P#H508/+5"#67B.)+B.5".470%7#8+#8+T%"07G-%+(78.+=.%-#B+#8+-.06/+6.-749.)>+#%-."+6.-749.)+08B+B0%0+5"#4.))78G+ .\D75H.8%+0%+?E<>+?@<+08B+MM<+#,+4#)%+".)5.4%76.9/[ ii) In respect of extra shift, depreciation is provided on the basis of the actual utilisation of assets. In determining actual utilisation, it has been assumed that the individual items of plant in each shop have worked for the same number of hours as the main plant in that shop, except where separate records are maintained for any item. When an asset is disposed off, the cost and related depreciation are removed from the books of account and the resultant 5"#[%+'7849DB78G+4057%09+5"#[%*+#"+9#))+7)+".\.4%.B+78+%-.+!"#[%+08B+(#))+C44#D8%[ + 'a*+ e8%08G719.+C)).%)+b + + T#,%:0".+.25.8B7%D".+784D"".B+7)+0H#"%7).B+#6."+%-.+5."7#B+#,+MN+H#8%-)+.\D099/+4#HH.8478G+,"#H+%-.+/.0"+78+:-74-+%-.+ expenditure is incurred. 3. Investments : + C99+9#8G+%."H+786.)%H.8%)+0".+609D.B+0%+4#)%[+!"#67)7#8+,#"+B7H78D%7#8+7)+H0B.+%#+".4#G87).+0+B.4978.>+#%-."+%-08+%.H5#"0"/>+78+%-.+ value of long term investments. Dividend income is recognised when the right to receive payment is established. 4. Inventories : Inventories are stated at cost or net realisable value, whichever is lower. Cost of inventories is arrived at on a weighted average basis and is inclusive of overheads and duties, where appropriate. Scrap generated at Stamping units is valued at net realisable value. E[+ ]#".7G8+324-08G.+F"08)04%7#8)+b + ]#".7G8+.24-08G.+%"08)04%7#8)+0".+787%7099/+".4#G87).B+0%+%-.+.24-08G.+"0%.+5".607978G+#8+%-.+%"08)04%7#8+B0%.[+C%+.04-+109084.+ sheet date foreign currency monetory items are translated at the relevant rates of exchange prevailing at the date. In respect of forward contracts, the premium or discount arising at the inception of such a contract is amortised as expense or income over the life of the contract. + e8+40).+#,+H#8.%0"/+7%.H)>+%-.+.24-08G.+B7,,.".84.)+0".+".4#G87).B+78+%-.+!"#[%+08B+(#))+C44#D8%[ N[+ J.6.8D.+J.4#G87%7#8+b Sales of products and services are recognised when the products are shipped or the services rendered. + 3247).+QD%7.)+'7849DB78G+.BD40%7#8+4.))*+".4#6.".B+0".+7849DB.B+78+%-.+T09.+#,+!"#BD4%)+'W"#))*[+3247).+QD%/+'7849DB78G+.BD40%7#8+ 4.))*+78+".)5.4%+#,+]787)-.B+W##B)+0".+)-#:8+).5."0%.9/+0)+08+7%.H+#,+=08D,04%D"78G+08B+I%-."+325.8).)+08B+7849DB.B+78+%-.+ 609D0%7#8+#,+[87)-.B+G##B)[
68 Mahindra Ugine Steel Company Ltd.
L[+ 3H59#/..+a.8.[%)+b i) Provident Fund: + + F-.+P#H508/R)+P#8%"71D%7#8+%#+%-.+".4#G87).B+!"#67B.8%+]D8B>+507B&50/019.+BD"78G+%-.+/.0">+7)+B.17%.B+%#+%-.+!"#[%+08B+(#))+ C44#D8%[+F-.+)-#"%,099>+7,+08/>+1.%:..8+%-.+".%D"8+GD0"08%..B+1/+%-.+)%0%D%.+08B+04%D09+.0"878G)+#,+%-.+]D8B+7)+5"#67B.B+,#"+ by the Company and contributed to the Fund. ii) Superannuation and Other funds: ++P#H508/R)+4#8%"71D%7#8)+507B&50/019.+BD"78G+%-.+/.0"+%#+I,[4."R)+TD5."088D0%7#8+]D8B>+3H59#/..)+!.8)7#8+T4-.H.>+ 3H59#/..)+T%0%.+e8)D"084.+T4-.H.+08B+(01#D"+O.9,0".+]D8B+0".+".4#G87).B+78+%-.+!"#[%+08B+(#))+C44#D8%[ + 777*+ W"0%D7%/+08B+P#H5.8)0%.B+C1).84.)b Company’s liability towards gratuity and compensated absences is determined using the projected unit credit method which 4#8)7B.")+.04-+5."7#B+#,+)."674.+0)+G7678G+"7G-%)+%#+08+0BB7%7#809+D87%+#,+1.8.[%+.8%7%9.H.8%+08B+H.0)D".+.04-+D87%+).50"0%.9/+ %#+1D79B+D5+%-.+[809+#197G0%7#8[+!0)%+)."674.)+0".+".4#G87).B+#8+)%"07G-%+978.+10)7)+#6."+%-.+06."0G.+5."7#B+D8%79+%-.+1.8.[%)+ 1.4#H.+6.)%.B[+C4%D0"709+G078+08B+9#)).)+0".+".4#G87).B+7HH.B70%.9/+78+%-.+)%0%.H.8%+#,+!"#[%+08B+(#))+C44#D8%+0)+784#H.+ #"+.25.8).[+I197G0%7#8+7)+H.0)D".B+0%+%-.+5".).8%+609D.+#,+.)%7H0%.B+,D%D".+40)-+\#:+D)78G+B7)4#D8%.B+"0%.+7[.[+B.%."H78.B+ by reference to market yield at the balance sheet date on government bonds where the currency and terms of the government 1#8B)+0".+4#8)7)%.8%+:7%-+%-.+4D"".84/+08B+%-.+.)%7H0%.B+%."H)+#,+%-.+B.[8.B+1.8.[%+#197G0%7#8[ R[+ a#""#:78G+4#)%)+b Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalised for the period until the asset 7)+".0B/+,#"+7%)+78%.8B.B+D).[+C+\D097,/78G+0)).%+7)+08+0)).%+%-0%+8.4.))0"79/+%0;.)+)D1)%08%709+5."7#B+#,+%7H.+%#+G.%+".0B/+,#"+7%)+ 78%.8B.B+D).[+I%-."+1#""#:78G+4#)%)+0".+".4#G87).B+0)+08+.25.8).+78+%-.+5."7#B+78+:-74-+%-./+0".+784D"".B[+K#+1#""#:78G+4#)%)+ are eligible for capitalisation during the year. S[+ F02.)+#8+784#H.+b Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax assets and liabilities are recognised, subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising on account of unabsorbed depreciation or carry forward of losses under tax laws are recognised only to the extent %-0%+%-.".+7)+67"%D09+4."%078%/+)D55#"%.B+1/+4#8678478G+.67B.84.+%-0%+)D,[47.8%+,D%D".+%02019.+784#H.+:799+1.+06079019.+0G078)%+:-74-+ such deferred tax assets can be realised. Deferred tax assets on account of other timing differences are recognised to the extent that there is a reasonable certainty of its realisation. A@[+ T.GH.8%+J.5#"%78G+b +F-.+044#D8%78G+5#9747.)+0B#5%.B+,#"+).GH.8%+".5#"%78G+0".+78+978.+:7%-+%-.+044#D8%78G+5#9747.)+#,+%-.+P#H508/+08B+0".+7B.8%7[.B+ having regard to the dominant nature of risks and returns and internal organisation and management structure. + J.6.8D.)+08B+.25.8).)+-06.+1..8+7B.8%7[.B+%#+%-.+).GH.8%)+10).B+#8+%-.7"+".90%7#8)-75+%#+%-.+1D)78.))+04%767%/+#,+%-.+).GH.8%[+ Income and Expenses relating to the enterprise as a whole and not allocable on a reasonable basis to the business segments are ".\.4%.B+0)+D8099#40%.B+4#"5#"0%.+.25.8).)+08B+784#H.[ +T.GH.8%+0)).%)+08B+9701797%7.)+7849DB.+%-#).+B7".4%9/+7B.8%7[019.+:7%-+%-.+".)5.4%76.+).GH.8%)[+^8099#4019.+4#"5#"0%.+0)).%)+08B+ liabilities represent the assets and liabilities that relate to the company as a whole and not allocable to any segment. 11. Provisions : + C+5"#67)7#8+7)+".4#G87).B+:-.8+08+.8%."5"7).+-0)+0+5".).8%+#197G0%7#8+0)+0+".)D9%+#,+50)%+.6.8%+08B+7%+7)+5"#1019.+%-0%+08+#D%\#:+#,+ resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their present values and are determined based on management estimate required to settle the obligation at the balance sheet B0%.[+F-.).+0".+".67.:.B+0%+.04-+109084.+)-..%+B0%.+08B+0BVD)%.B+%#+".\.4%+%-.+4D"".8%+H080G.H.8%+.)%7H0%.)[
69 Mahindra Ugine Steel Company Ltd.
SCHEDULE ‘N’ ADDITIONAL INFORMATION PURSUANT TO THE PROVISIONS OF PART IV OF SCHEDULE VI TO THE COMPANIES ACT, 1956 >!/!,-&(L4&&1(O)01#!-1(!,'(H$8"!,*R0(Y&,&#!/(>20.,&00(6#$[/& I Registration Details J.G7)%"0%7#8+K#[ 12E42 State Code 11 Balance Sheet Date 31 03 2011 Date Month Year II Capital Raised During the Year (Amount in Rs. Crores): Pubic Issue J7G-%)+e))D. KI( KI( Bonus Issue Private Placement KI( KI( III Position of Mobilisation and Deployment of Funds (Amount in Rs. Crores): F#%09+(701797%7.)+'7849DB78G+T-0".-#9B.")R+]D8B)* F#%09+C)).%)+'7849DB78G+=7)4.9908.#D)+ Expenditure not written-off and adverse 109084.+#,+5"#[%+08B+9#))+044#D8%*++ R03 . 71 R03 . 71 Sources of Funds: Paid-up Capital J.)."6.)+m+TD"59D) 32 . 4R 132 . 73 T.4D".B+(#08) ^8).4D".B+(#08) 1S3 . 1S 1E0 . 34 Application of Funds: K.%+]72.B+C)).%) Investments 300 . S3 14 . 0S K.%+PD"".8%+C)).%) Miscellaneous Expenditure 200 . 24 KI( C44DHD90%.B+(#)).) KI( IV Performance of Company (Amount in Rs. Crores): Turnover Total Expenditure (Sales and Other income) se849DB78G+B.4".0).&'784".0).*+78+T%#4;)t 1342 . S1 13E2.E1 p+&+U+++!"#[%&(#))+1.,#".+F02 ++p+&++U++++!"#[%&(#))+0,%."+F02+ -S.N0 -E.S7 30"878G)+5."+T-0".+78+JD5..) Q767B.8B+J0%.+< -1.R4 KI( V Generic Names of Three Principal Products/Services of Company (As per monetary terms): e%.H+P#B.+K#[+'eFP+P#B.* L??R Product Description Other bars and rods of other alloy steel
e%.H+P#B.+K#[+'eFP+P#B.* RL@R Product Description Parts and accessories of motor vehicles
e%.H+P#B.+K#[+'eFP+P#B.* 7214 Product Description Other bars and rods of iron or non-alloy steel
e%.H+P#B.+K#[+'eFP+P#B.* RiR? Product Description ]787)-.B+J78G)+&+J04.)
For and on behalf of the Board T7G80%D".+%#+T4-.BD9.)+QCR+%#+QKR Keshub Mahindra Chairman K. V. Ramarathnam Managing Director Hemant Luthra Manoj Maheshwari Harsh Kumar Directors Partha Sarathi Roy Ajay Kadhao Sanjiv Kapoor !"#$%&'#()(*$&+%[*$- Company Secretary Sarojini Dikhale Mumbai : 27th+C5"79>+?@AA Daljit Mirchandani
70 Mahindra Ugine Steel Company Ltd.
NOTES
71 Mahindra Ugine Steel Company Ltd.
NOTES
72 MAHINDRA UGINE STEEL COMPANY LIMITED Registered Office : 74, Ganesh Apartment, Opp. Sitaladevi Temple, L.J. Road, Mahim, Mumbai - 400 016. Attendance Slip I hereby record my presence at the 48th Annual General Meeting of the Company at Amar Gian Grover Auditorium, Lala Lajpat Rai Memorial Trust, Lala Lajpat Rai Marg, Haji Ali, Mumbai - 400 034, on Wednesday, the 27th July, 2011 at 3.00 p.m.
Name of the Member
Registered Folio No. No. of Shares
Client ID No.
DP ID No.
Name of the Proxy
Signature of the Member or Proxy
Note: The Member/Proxy/Representative attending the 48th Annual General Meeting is requested to bring this slip duly filled in and present the same at the entrance to the Meeting.
MAHINDRA UGINE STEEL COMPANY LIMITED Registered Office : 74, Ganesh Apartment, Opp. Sitaladevi Temple, L.J. Road, Mahim, Mumbai - 400 016. Proxy Form
I/We ...... of ...... in the District of ...... being a member/members of the above named Company hereby appoint ...... of ...... in the District of ...... or failing him/her ...... of ...... in the district of ...... as my/our proxy/proxies to vote for me/us on my/our behalf at the 48th Annual General Meeting of the Company to be held at Amar Gian Grover Auditorium, Lala Lajpat Rai Memorial Trust, Lala Lajpat Rai Marg, Haji Ali, Mumbai - 400 034, on Wednesday, the 27th July, 2011 at 3.00 p.m. and at any adjournment thereof.
Signed this ...... ………...... day of ...... 2011
Registered Folio No. : ...... Fifteen paise Client ID No. : ...... Revenue Stamp
DP ID No. : ...... Signature of the Member No. of Shares : ......
Note: This Proxy Form in order to be effective should be duly filled in, stamped and signed and must be deposited at the Registered Office of the Company not less than 48 hours before the time for holding the meeting. The proxy need not be a member of the Company.