2.-Annual-Report-2014-1

Environment ANNUAL REPORT 2014 ANNUAL REPORT Viable Bearable Sustainable Economic BSRM STEELS LIMITED Equitable Social SUSTAINABILITY IS THE KEY TO PROGRESS ANNUAL REPORT 2014 BSRM STEELS LIMITED ANNUAL REPORT 2014 BSRM STEELS LIMITED THE 3 PILLARS OF SUSTAINABILITY 33 Key Management The quality of life on the planet depends on adequate energy generation and consumption; safe and dependable mass transportation and extraction of Chairman’s Message 35 mineral resources from the bowels of the earth. All these activities come at a price for the environment. There is a limit to the extent the environment can 39 From the desk of endure human activity Managing Director Sustainability is based on a simple principle: Everything that we need for Directors’ Report 43 survival and well-being depends, either directly or indirectly, on our natural CONTENTS Corporate Social environment. Sustainability creates and maintains the conditions under which 67 Responsibilities human beings and nature can exist in productive harmony, that permit fulfilling Sustainable Growth-Green BSRM Vision, Values Environment, Human 05 Resource and Information 73 the social, economic and other requirements of present and future generations. and Code of Conduct Technology Developmen BSRM Group’s 11 75 Corporate Sustainability is important to making sure that we have and will continue to milestones Governance Report have, the water, materials, and energy resources to protect human health and Certificate on Compliance with the our environment for generations to come. 13 Awards & Recognitions conditions of Corporate 77 Governance Guideline Report of the The 3 pillars of sustainability are Economic, Social and Environment. The Performance at 17 78 a Glance - 2014 Audit Committee interaction of economic and social factors develops Equitable distribution of Statement of CEO & resources. The interaction of social and environmental factors makes human 19 Key Financial Highlights CFO on 80 development Bearable. Finally, the interactions of economic and environmental Financial Statements factors make human life Viable. All the 3 factors combine to make Sustainable Key Performance Indicators Auditors’ Report 20 83 & Financials 2014 development a reality. Value Added Board of Directors’ 133 22 Statement & EVA Report – BISCO Auditors’ Report & Products & Markets 23 134 Financial of Subsidiary – 2014 Shareholders’ 26 Letter of Transmittal Information 157 Notice of AGM 27 161 Events and Images Corporate & Glossary of terms 163 29 Contact Information Attendance & Board of Directors 30 167 Proxy Form SOLAR POWER Solar power is an important and relatively inexpensive source of electrical energy where grid power is inconvenient, unreasonably expensive to connect, or simply unavailable. Solar power is also increasingly being used even in grid-connected situations as a way to feed low-carbon energy into the grid. These systems use no fuel and typically last 25 to 40 years. BSRM VISION We at BSRM group aspire to... Maintain our leadership position in the steel industry by producing the best quality steel products, continuously enhancing customer satisfaction and becoming a reliable business partner of our customers and suppliers. Be an employer of choice, with focus on nurturing talent and developing future leaders of the organization. Protect the interest of our shareholders through sustainable growth and value creation. Preserve the trust of all our stakeholders by adopting ethical business practices. Support the society through Corporate Social Responsibility initiatives. BSRM Steels Limited Annual Report 2014 05 BSRM Values SUSTAINABLE GROWTH Consistent improvement in the quality of products and services, efficiency of processes and profitability of business; continuously anticipating and responding to the changing business and environmental needs using innovation and sharing knowledge and experience within the organization. QUALITY Creating products and services valued by our customers, constantly improving our processes through innovation and adopting best practices, reducing wastage, minimizing costs, investing in systems and technology and developing our people to build a highly capable workforce. Reliability Be the preferred business partner of our customers and suppliers by offering quality products, providing our best timely services before, during and after the business transactions and honouring all our commitments despite challenges. Trust Preserve the faith and goodwill of all our stakeholders - customers, shareholders, suppliers, employees, regulatory bodies and society by adopting ethical and transparent business practices, being fair and honest in all our dealings and building robust governance and risk management processes. DEEP SEA PORT Leadership Be a role model, by setting benchmarks through our products, processes and people, constantly moving A deep sea port will not only increase ahead of competition by differentiating our products, innovating our processes, increasing our market share and nurturing talent to develop leaders within the organization. Bangladesh’s capacity to handle sea borne trade, but also make Social Responsibility Bangladesh a major economic hub, Acknowledge and fulfill our obligations towards society by undertaking initiatives for the general owing to its strategic location around upliftment, building capability and making facilities available to the underprivileged. the Bay of Bengal. This will boost the economy of the country, ensuring Customer Satisfaction Bangladesh’s place in the world as a Delight our external and internal customers at every stage of our interaction with them by truly middle-income country in the understanding their needs, offering them our best products and services, treating them with respect and foreseeable future. actively seeking and acting on their feedback. BSRM Steels Limited Annual Report 2014 07 NUCLEAR POWER PLANT A nuclear power plant will help Bangladesh meet the accelerating demand for electricity and reduce its dependency on natural gas. Nuclear power is an environmentally-friendly and cost-effective option for generating electricity. It would bring a revolutionary change in Bangladesh’s economy and improve the standard of life of its people. CODE OF CONDUCT BSRM always adopt the best, ethical and transparent business practices to be fair and honest all our dealings. We always acknowledge and fulfill our obligations towards the society and offer our best services to our coustomers and treat them with respect and honor. BSRM Steels Limited Annual Report 2014 09 WIND BSRM Group's Milestones TURBINES Wind energy offers many advantages 2014 1996 and is the fastest-growing energy 2006 ST source in the world. Wind energy Oracle e-BS -12 went GO LIVE on 1 Commissioned the then largest March 2014. Oracle Financials, Introduced micro reinforcement doesn't pollute the air nor produce Costing, purchasing, Manufacturing, billet making plant in the country atmospheric emissions that cause EAM, Inventory & order management wires, below 8mm, for low cost - Meghna Engineering Works are now integrated on a single rural construction. Limited, now known as Steel acid rain or greenhouse gasses. It is platform which ensure the accuracy, Melting Works (SMW) unit of one of the lowest-priced renewable accountability and reliability of the Bangladesh Steel Re-rolling energy technologies available today, Group. Mills Ltd. costing between four and six cents per kilowatt-hour. 2013 2008 1987 BSRM Steels Limited A syndicated term loan of US$ 40 commenced production of Introduced High Strength million and BDT 5,908 million, raised by a consortium of 25 banks and internationally recognized Deformed reinforcing steel bars financial institutions, for BSRM Steel Grade 500 steel bars branded conforming to ASTM 615 Grade Mills Limited. It is the largest ever as “Xtreme500W” conforming 60 for the construction industry. syndicated loan facility arranged for to ISO 6935-2. a private company in Bangladesh. The Plant will produce billets. 1984 2012 2009 Introduced high strength cold Production capacity of BSRM Entrance in the Capital Market twisted steel bars (TORSTEEL) to the construction industry. Steels Limited enhanced to Shares of BSRM Steels Limited, 600,000 MT per year. the flagship company of BSRM Group was listed with the country’s premier bourses Dhaka Stock Exchange (DSE) Ltd. and Chittagong Stock Exchange (CSE) Ltd. as on 18 January 2009. 2010 Market Capitalization as on 31 1952 December 2014 is Tk. 29,974 million. The public shareholding BSRM Iron and Steel Co. Ltd. including institutional investors is The BSRM saga began with the largest billet making plant in 29.13%. first steel re-rolling mills to the country started commercial emerge in the then East production on June 01, 2010. Bengal. What’s Next? Start of commercial production of world’s largest induction furnace based billet casting project –“BSRM Steel Mills Limited” to 1 feed BSRM Steels Limited and Bangladesh Steel Re-Rolling Mills Limited. 2 Enhancing capacity of BSRM Steels Limited to 700,000 M. Ton per annum by July, 2015. Increasing capacity of Bangladesh Steel Re-Rolling Mills to 540,000 M. Ton per annum which will be the first and largest 3 merchant mill in Bangladesh. 4 Completion of all process for listing Bangladesh Steel Re-Rolling Mills Limited with the stock exchanges. 5 Setting up a coal based 150 MW power plant to meet the internal demand as well as to supply to the national grid. BSRM Steels Limited Annual Report 2014 11 AWARDS AND RECOGNITIONS MONORAIL

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