2006 2007 2008 2009

Sponge Iron 76 65 76 94

Billets 841 799 910 940

H.B.Wires 91 95 95 110

Ferro alloys 2998 3120 3543 3794

SCHEDULE 18 : OPERATING AND OTHER EXPENSES 2005-06 2006-07 2007-08 2008-09
Consumption of stores and spares 80.0 117.7 181.8 138.7
Process charges 11.4 11.5 25.9 23.4
Power charges 39.0 12.1 49.8 27.5
Water Charges 4.2 10.9 11.9 14.0
Other manufacturing expenses 29.8 44.0 87.1 111.4
CDM Expenses 0.8 7.7 4.7 0.7
Rent 0.9 1.6 1.4 2.7

Rates and taxes 0.0 0.0 0.0 0.0

sales Tax 0.0 2.0 0.0 0.0
Entry Tax 0.5 11.5 53.2 53.1
Excise duty 0.0 0.5 0.5 1.3
elec duty cess 0.0 0.0 2.3 0.8
others
Insurance 1.3 2.2 1.8 1.8

Repairs and maintenance

P& M 27.7 66.3 92.0 122.7
Buildings 1.2 2.0 3.7 16.5
Others 0.4 1.0 1.2 4.7
Rebate, shortage claims & other deductions 0.3 1.7 3.0 9.1
0.0 0.0 0.0 0.0
Commission 0.0 0.0 0.0 0.0
Sole selling agents 1.0 2.0 4.9 11.0
Provision for doubtful debts 0.0 0.0 0.0 4.6
Travelling and conveyance 5.6 5.6 8.5 15.4
Communication expenses 3.4 3.6 6.2 5.4
Printing and stationery 1.3 1.2 1.9 1.1
Legal and professional fees 1.3 1.2 4.7 3.0
Directors’ sitting fees 0.0 0.1 0.1 0.3
Directors’ remuneration 1.1 4.1 5.1 6.9
Frieght and forwarding charges 0.5 0.2 2.1 1.2
Security service charges 1.4 3.8 8.0 7.8
Loss on sale of fixed assets 0.0 0.6 0.3 0.0
Foreign exchange fluctuation 0.0 0.0 0.8 12.4
Loss on Forex derivative transaction 0.0 0.0 74.6 58.8
Miscellaneous expenses 4.6 12.2 22.5 26.0
Miscellaneous expenditure written off 0.8 0.1 0.1 0.0

218.4 327.3 660.3 682.1

10

15523.76
Profit & Loss A/C - Godawari Power & Ispat Ltd.
2006 2007 2008 2009 2010
Sales (Gross) 2707.52 5099.51 9569.01 11624.04 8323.933
Less: VAT and sales tax 0.00 0.00 0.00 0 0
Less: Excise duty 359.42 678.59 1276.00 1268.658 559.638
Net sales 2348.10 4420.92 8293.01 10355.38 7764.30
growth % 88% 88% 25% -25%
Other Income 8.52 22.37 12.77 104.042 30.147
(Increase)/decrease Stock in trade 80.70 -17.94 0.00 -21.894 108.598
Total Income 2437.32 4425.35 8305.77 10437.53 7903.04

Expenditure
Increase/Decrease in stock in trade 0.00 0.00 -405.32 0 0
Purchase of trading goods 0.00 4.63 16.97 0 32.891
Raw Material consumed 1819.14 3228.16 6312.05 8372.1 5670.346
Personnel Expenses 31.21 49.37 94.45 134.593 173.375
Operating and other expenses 218.40 327.33 660.34 672.363 770.103
Total Expenditure 2068.74 3609.50 6678.49 9179.06 6646.72

EBIDTA 368.59 815.86 1627.28 1258.47 1256.33

Depreciation 60.83 108.72 242.52 264.222 316.242
EBIT 307.75 707.13 1384.76 994.25 940.08
Financial expenses 59.49 117.25 303.19 341.692 320.392
PBT 248.26 589.88 1081.57 652.56 619.69
Tax 23.25 67.76 131.00 78.956 105.668
PAT before exceptional items 225.01 522.12 950.57 573.60 514.02

No of Equity shares 161.50 248.44 280.70 280.7 280.70

PAT after exceptional items 225.01 522.12 950.57 573.60 514.02

Exceptional items 148.32 0.00 0.00 0 0
Net Profit 373.33 522.12 950.57 573.60 514.02
Balance brought forward 230.36 424.00 711.13 1379.611 1771.115
Profit available for appropiation 603.70 946.12 1661.70 1953.22 2285.14

Appropriations
Transfer to General Reserve 150.00 150.00 150.00 100 100
Interim Dividend 0.00 24.84 42.11 70.174 70.175
Proposed Dividend 24.84 49.69 70.17 0 0
Tax on Dividend 3.48 10.45 19.08 11.926 11.926
Adjustment to Misc Expenditure 1.37 0.00 0.00 0 0

Surplus carried to B/S 424.00 711.13 1380.34 1771.12 2103.04

Basic EPS excluding exceptional items 13.93 21.02 33.86 20.43 18.31
Diluted EPS including exceptional items 23.12 21.02 33.86 20.43 18.31
CMP 212.00 212.00 212.00 212.00 212.00
Times Interest Earned 5.17 6.03 4.57 2.91 2.93
Gross Profit Margin 15.70% 18.45% 19.62% 12.15% 16.18%
Operating Profit Margin 13.11% 16.00% 16.70% 9.60% 12.11%
Net Profit Margin 13.79% 10.24% 9.93% 4.93% 6.18%
Price/Earnings Ratio 15.22 10.09 6.26 10.37 11.58

COMMON SIZE
Sales (Gross) 100% 100% 100% 100% 100%
Less: VAT and sales tax
Less: Excise duty 13.28% 13.31% 13.33% 10.91% 6.72%
Net sales 87% 87% 87% 89% 93%

Other Income 0.31% 0.44% 0.13% 0.90% 0.36%

(Increase)/decrease Stock in trade 2.98% -0.35% 0.00% -0.19% 1.30%
Total Income 90% 87% 87% 90% 95%

Expenditure
Increase/Decrease in stock in trade 0.00% 0.00% -4.24% 0.00% 0.00%
Purchase of trading goods 0.00% 0.09% 0.18% 0.00% 0.40%
Raw Material consumed 67% 63% 66% 72% 68%
Personnel Expenses 1.15% 0.97% 0.99% 1.16% 2.08%
Operating and other expenses 8.07% 6.42% 6.90% 5.78% 9.25%
Total Expenditure 76% 71% 70% 79% 80%

EBIDTA 14% 16% 17% 11% 15%

Depreciation 2.25% 2.13% 2.53% 2.27% 3.80%
EBIT 11% 14% 14% 9% 11%
Financial expenses 2.20% 2.30% 3.17% 2.94% 3.85%
PBT 9% 12% 11% 6% 7%
Tax 0.86% 1.33% 1.37% 0.68% 1.27%
PAT before exceptional items 8.31% 10.24% 9.93% 4.93% 6.18%

No of Equity shares
2011E
 2006 2007 2008 2009 2010 2011 2012
Sponge Iron Capacity 235000 495000 495000 495000 495000 495000 495000
Production 107023 170340 279533 285833 300124.7
% capacity Utilization 46% 34% 56% 58% 61%

Billets Capacity 250000 250000 400000 400000 400000 400000 400000

Production 92498 130979 108156 56477
% capacity Utilization 37% 52% 27% 14%

H.B.Wire Capacity 41600 62500 120000 120000 120000 120000 120000

Production 23924 53991 74372 74373
% capacity Utilization 57.5% 86.4% 62.0% 62.0%

Ferro Alloys Capacity 16500 16500 16500 16500

Production 2200 9283 9168 4462
% capacity Utilization 13.3% 56.3% 55.6% 27.0%

Pellet Capacity 600000

Production 340000
% capacity utilization 56.7%

Power Capacity 245.28 245.28 464.28 464.28 613.2

Production 111.95 174.31 290.29 315.46 331.23
% capacity Utilization 45.64 71.06 62.52 67.95 54.02

RR Ispat Ltd

MS Round in coils Capacity 70000.00 70000.00 100000.00

Production 66293.79 73267.12 71171.63
% capacity Utilization 95% 105% 71%

HB Wires Capacity 30000 30000 30000

Production 19771.99 23844.19 19602.3
% capacity Utilization 66% 79% 65%
Godawari Power & Ispat - Quarter & Segmented Revenue

Q1FY08 Q2FY08 Q3FY08 Q4FY08

Gross Sales 3024.00 3651.90 3316.10 363.40
Less: Excise Duty/VAT/Sales Tax 389.90 447.50 0.00 (837.40)
Net Sales 2634.10 3204.40 3316.10 1200.80
0.00
Operating Expense 2143.60 2639.60 2791.50 1555.10
Increase / Decrease in stock (321.70) 94.30 (131.20) 380.50
Consumption of Raw Materials 2142.60 2342.40 2695.20 1191.90
Employee Cost 29.70 25.20 32.40 37.50
Other Expenses 293.00 177.70 195.10 (54.80)

EBITDA 490.50 564.80 524.60 (354.30)

Growth 15% -7% -168%
Depreciation & Amortisation 73.00 85.20 69.10 36.90
EBIT 417.50 479.60 455.50 (391.20)
Interest & Finance Costs 87.20 68.00 74.60 111.90
EBT 330.30 411.60 380.90 (503.10)
Other Income 3.40 19.20 7.80 73.60
PBT 333.70 430.80 388.70 (429.50)
Tax 45.40 50.30 43.70 (60.40)
PAT 288.30 380.50 345.00 (369.10)
Exeptional Items 0.00 0.00 27.10 44.00
PAT after Exeptional Items 288.30 380.50 317.90 (413.10)
Growth 32% -16% -230%

Segmental Revenue
Q1FY08 Q2FY08 Q3FY08 Q4FY08
Segment Revenue
a. Steel 307.84 365.61 326.17 176.54
b. Power 35.57 27.2 31.84 45.44
c. Others 0.24 0.7 2.06 1.82

Total 343.65 393.51 360.07 223.8

Less: Inter-segment revenue 41.25 28.32 28.46 12.07

Net Sales 302.4 365.19 331.61 211.73

Segment Result
a.Steel 24.02 33.47 27.36 -46.98
b. Power 26.91 19.2 22.66 35.68
c.Others -0.76 0.01 0.17 -0.11
Total 50.17 52.68 50.19 -11.41

Less: Unallocable expenses less of unallocable income 8.09 1.08 6.57 4.49
Less: Income & Finance charges 8.72 8.52 7.46 9.29

PAT 33.36 43.08 36.16 -25.19

growth % 29% -16% -170%
Capital Employed
a.Steel 298.76 285.29 286.92 223.98
b. Power 82.38 78.15 85.35 94.99
c. Others 4.57 4.1 4.55 6.9

Total 385.71 367.54 376.82 325.87

Add: Unallocable capital 1.61 57.83 80.33 109.07

Total Capital Employed 387.32 425.37 457.15 434.94

growth % 10% 7% -5%

ROCE 9% 10% 8% -6%

 growth(%)
FY09 Q1FY09 Q2FY09 Q3FY09 Q4FY09 FY10 Q1FY10 FY09-10
10355.40 1717.60 1919.00 1531.10 3156.20 8323.90 1782.60 -24%
0.00 0.00 0.00 0.00 559.60 559.60 0.00 100%
10355.40 1717.60 1919.00 1531.10 2596.60 7764.30 1782.60 -33%

9129.80 1545.00 1635.90 1357.40 1999.80 6538.10 1428.30 -40%

21.90 (153.10) (10.90) (100.90) 156.30 (108.60) (90.50) 120%
8372.10 1523.50 1495.50 1272.40 1411.80 5703.20 1167.30 -47%
124.80 24.90 31.40 39.60 77.50 173.40 52.60 28%
611.00 149.70 119.90 146.30 354.20 770.10 298.90 21%

1225.60 172.60 283.10 173.70 596.80 1226.20 354.30 0%

-86% 64% -39% 244% 105%
264.20 57.40 71.30 73.10 114.40 316.20 100.40 16%
961.40 115.20 211.80 100.60 482.40 910.00 253.90 -6%
341.70 89.00 69.80 77.50 84.10 320.40 91.20 -7%
619.70 26.20 142.00 23.10 398.30 589.60 162.70 -5%
104.00 55.70 4.00 6.90 (36.50) 30.10 2.30 -246%
723.70 81.90 146.00 30.00 361.80 619.70 165.00 -17%
79.00 12.90 26.40 5.10 61.30 105.70 32.90 25%
644.70 69.00 119.60 24.90 300.50 514.00 132.10 -25%
71.10 (28.40) 9.30 0.00 19.10 0.00 0.00 0%
573.60 97.40 128.90 24.90 319.60 514.00 132.10 -12%
-239% -83% 32% -81% 1184% 61%

FY09 Q1FY09 Q2FY09 Q3FY09 Q4FY09 FY10 Q1FY10

969.41 145.85 151.13 141.03 165.52 681.31 151.67

135.04 29.87 45.19 21.42 34.93 129.07 31.32
4.89 0.99 0.46 0.76 1.04 0

1109.34 176.71 196.78 163.21 201.49 810.38 182.99

73.8 4.95 4.88 10.1 4.6 33.95 4.73

1035.54 171.76 191.9 153.11 196.89 776.43 178.26

20.69 6.84 -5.79 3.12 10.02 34.57 11.76

92.6 14.88 30.39 12.5 17.76 75.54 18.49
0.16 0.09 0.03 0.05 0.19
113.45 21.81 24.63 15.67 27.97 110.11 30.25

14.02 1.88 2.12 4.92 4.35 16.1 4.63

34.17 8.9 6.98 7.75 7.19 32.04 9.12

65.26 11.03 15.53 3 16.43 61.97 16.5

-144% 41% -81% 448% -5% 0%

378.65 378.65 370.07 381.02 400.2 366.13 373.75

95.27 95.27 107.25 109.58 105.85 96.49 101.07
3.75 3.75 4.15 4.55 4.76 0

477.67 477.67 481.47 495.15 510.81 462.62 474.82

-41.21 -41.21 -32.12 -43.31 -45.5 17.04 18.05

436.46 436.46 449.35 451.84 465.31 479.66 492.87

0.35% 3% 1% 3% 10% 6%

15% 3% 3% 1% 4% 13% 3%
Balance Sheet - Godawari Power & Ispat Ltd.
2006 2007 2008 2009
SOURCES OF FUNDS
Shareholders' Funds
Capital 161.49 248.44 280.70 280.70
Share warrants 32.40 32.40
Reserves and surplus 813.73 1802.66 3560.05 4051.56
Net Worth 975.22 2051.10 3840.75 4332.25

Loan Funds 1614.98 2774.90 2842.10 3317.63

Secured Loans 1441.98 2774.90 2842.10 3317.63
Unsecured Loans 173.00 0.00 0.00 0.00

TOTAL 2590.20 4826.00 6715.25 7682.28

APPLICATION OF FUNDS
Fixed Assets 1889.63 3660.49 3963.78 5513.60
Gross Block 1593.04 2910.31 4360.96 4587.58
Less : Accumulated Depreciation/amortisation 174.21 281.72 523.62 787.84
Net Block 1418.83 2628.59 3837.34 3799.74
Capital work-in-progress including capital advances 470.80 1031.90 126.44 1713.86

Investments 93.59 208.64 319.67 445.76

Current Assets, Loans and Advances 809.31 1392.23 3133.87 2463.25
Inventories 421.96 710.97 1660.44 1348.10
Sundry debtors 159.52 234.51 476.09 302.82
Cash and bank balances 31.25 120.34 634.00 410.14
Loans and advances 196.58 326.42 363.34 402.19

Less : Current Liabilities and Provisions 211.00 435.45 702.07 740.32

Current Liabilities 171.50 345.54 487.78 555.54
Provisions 39.49 89.92 214.29 184.78

Net Current Assets 598.31 956.78 2431.80 1722.93

Miscellaneous Expenditure 8.67 0.09
(to the extent not written off or adjusted)
TOTAL 2590.20 4826.00 6715.25 7682.28
Notes to Accounts
check 0.00 0.00 0.00 0.00

Current Ratio 3.84 3.20 4.46 3.33

Quick Ratio 1.84 1.56 2.10 1.51

Inventory Turnover 18% 16% 20% 13%

Average Collection Period 24.46 19.10 20.67 10.53
Fixed Asset Turnover 68% 66% 53% 44%
Total Asset Turnover #REF! -18.194 #REF!

Debt Ratio 12.79 11.60 10.11 10.77

Debt-to-Equity 1.66 1.35 0.74 0.77

Return on Total Assets (ROA) 9.69% 12.34% 13.04% 8.55%

Return on Equity (ROE) 166% 135% 74% 77%
 2010

280.70
0.00
4515.88
4796.58

3914.98
3914.98
0.00

8711.56

6407.44
6906.75
1100.97
5805.78
601.66

715.42
2554.00
1586.38
358.38
136.69
472.56

965.30
779.31
185.98

1588.71

8711.57

2.65
1.00

20%
16.62
 89%

9.28
0.82

5.66%
82%
 2007 2008
CASH FLOW FROM OPERATING ACTIVITIES
Net Profit before Tax 589.878 1081.247
ADJUSTMENTS FOR:
Depreciation 108.72 242.52
Misc. Expenses Written off (Net) 0.09 0.09
Provision for Gratuity 2.01 0.94
Provision for loss on derivative contracts 0.00 0.00
Provision for doubtful debts 0.00 0.00
Interest Charges 117.25 303.19
Interest Received -5.48 -8.33
Dividend Received -0.03 -0.08
(Profit)/Loss on sale of Investments 0.00 0.00
(Profit)/Loss on sale of Fixed Assets 0.60 0.32

OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES 813.06 1619.90

ADJUSTMENTS FOR:
(Increase)/Decrease in Receivables and Advances -204.824 -278.5
(Increase)/Decrease in Inventories -289.008 -949.474
Increase/(Decrease) in Trade payables 174.032 216.889

CASH GENERATED FROM OPERATIONS 493.26 608.82

Direct Taxes Paid/Deducted at Source -47.674 -108.053
NET CASH FROM OPERATING ACTIVITIES 445.59 500.76

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets/Capital Expenditure -1886.693 -548.057
Proceeds from Sale of Fixed Assets 6.508 1.925
Interest received 5.475 8.325
Dividend Received 0.026 0.078
(Increase)/Decrease in Investments -115.05 -111.031
NET CASH USED IN INVESTING ACTIVITIES (1989.73) (648.76)

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from issue of equity shares including premium 704.295 1000
Proceeds/(Payment) of Long Term Borrowings from Banks 1082.303 -2.112
Proceeds/(Payment) of Short Term Borrowings from Banks 235.922 69.555
Proceeds/(Payment) of Other Borrowings -158.303 -0.241
Share Issue Expenses -57.065 -28.832
Refund of Share Application Money 0 32.4
Dividend and tax thereon Paid -56.657 -105.917
Interest Charges -117.254 -303.193
NET CASH USED IN FINANCING ACTIVITIES 1633.24 661.66
NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS (A+B+C) 89.09 513.66
Cash and Cash Equivalents at the beginning of the year 31.246 120.34
Cash and Cash Equivalents at the end of the year 120.34 634.00
Components of cash and cash equivalents as at

Cash in hand 1.005 3.95

With banks- on current account 12.91 7.421
 - On deposit account 105.278 620.26
- on unpaid dividend account* 0.931 2.184
- on public issue refund account* 0.216 0.189
120.34 634.00
 10
2009 2010

652.56 619.691

264.22 316.24
0.00 0.00
-0.32 2.50
19.67 -10.26
4.61 0.00
341.69 320.39
-68.38 -4.91
-1.23 -0.16
0.00 0.00
0.00 4.88

1212.84 1248.39 10

129.804 -125.926
312.338 -238.278
67.761 223.772

1722.74 1107.95
-127.821 -96.706
1594.92 1011.25

-1814.035 -1217.592
0 2.62
68.376 4.906
1.228 0.156
-126.087 -269.657
(1870.52) (1479.57)

0 0
310.298 642.218
173.328 -43.559
-8.097 -1.3
0 0
0 0
-82.101 -82.101
-341.692 -320.392
51.74 194.87
(223.86) (273.45)
634.004 410.142
410.14 136.69

6.321 0.38
27.312 37.773
375.808 97.606
0.513 0.771
0.188 0.157
410.14 136.69
 2006 2007 2008
INCOME
Turnover (Gross) 2708 5100 9569
Less: Excise duty 359 679 1276
Turnover (Net) 2348 4421 8293
Other Income 9 22 13
2357 4443 8305
EXPENDITURE
Increase/(Decrease) in Stock in trade -81 18 -405
Purchase of Trading Goods - 5 17
Raw material consumed 1819 3228 6312
Personnel expenses 31 49 94
Operating and other expenses 218 327 660
1988 3627 6678

EBIDTA 369 816 1627

Depreciation 61 109 243
EBIT 308 707 1384
Financial expenses 59 117 303
PBT 248 590 1081
Provision for Current Tax 22 67 125
Frienge Benefit Tax 1 1 1
Tax related to earlier year 1 0 5
Total Tax Expense/income 23 68 131
Profit after tax and before exceptional items 225 522 950
Adjustment relating to depreciation on account of change in accounting 148 - 0
Net profit 373 522 0

Balance brought forward from previous year 230 424 711

Profit available for appropriation 604 946 1661
Appropriations:
Transfer to General Reserve 150 150 150
Interim dividend - 25 42
Proposed dividend 25 50 70
Tax on dividend 3 10 19
Adjustment of Miscellaneous Expenditure 1 - 0
Surplus carried to Balance Sheet 424 711 1380
Earning Per Share
Basic & Diluted EPS
13.93 21.41 37.18
23.12 21.41 36.77
 10
2009

11624
1269
10355
104
10459

22
-
8372
125
682
9201

1258
264
994
342
653
74
1
4
79
574
0
0

1380
1953

100
-
70
12
0
1771

20.43
19.73
 2006 2007 2008 2009
Steel
Iron Ore Consumption 215484 377266 630625 729816
Per tonne consumption 2.01 2.21 2.26 2.55
Total cost 467699000 915941000 2039886000 2907404000
Total Cost (In Mn) 468 916 2040 2907
Per tonne cost 2170 2428 3235 3984

Coal Consumption 124147 257213 452843 494491

Per tonne consumption 1.16 1.51 1.62 1.73
Total cost 216139369.9 465556254 923347814.94 1269358628.03
Total Cost (In Mn) 216 466 923 1269
Per tonne cost 1741 1810 2039 2567

Total Coal consumption 229525 339276 658265 674397

Total Coal Cost 399726000 613603000 1306549000 1689396000
1742 1809 1985 2505

Scrap & Pig Iron consumption 22467 27808 50131 33519

Sponge iron Per tonne requirement 0.21 0.16 0.18 0.12
Total cost 297489000 403032000 851207000 920942000
Total Cost (In Mn) 297 403 851 921
Per tonne cost 13241 14493 16980 27475
2780 2366 3045 3222
Power
Capacity 245.28 245.28 464.28 464.28
production 111.95 174.31 290.29 315.46
% capacity Utilization 45.64 71.06 62.52 67.95

Coal Consumption 105379 82063 205422 179906

in kgs Per unit consumption 0.72 0.55 0.41 0.43

H.B.Wire
M.S. Round consumption 23550 54536 67314 75261
Per tonne 0.98 1.01 0.91 1.01
Total cost 454003000 1112073000 1745807000 2458329000
Total Cost (In Mn) 454.003 1112.073 1745.807 2458.329
Per tonne cost 19278 20392 25935 32664

Ferro Alloys
managnese Ore consumption 5698 23571 27670 11299
Per tonne 2.59 2.54 3.02 2.53

RR Ispat Ltd
Billets consumption
Per tonne
Total cost
Total Cost (In Mn)
Per tonne cost
 2010 2011 2012 100000

900000
3.00 #DIV/0! #DIV/0!
Sponge Iron 2006 2007 2008 2009

Iron Ore 4370.08 5377.13 7297.48 10171.69

Coal 2019.56 2733.1 3303.18 4440.91
scrap 2779.67 2366.04 3045.10 3221.96
Total RM cost 9169.31 10476.28 13645.76 17834.56

Coal cost for power 1.25352 0.9955 0.83599 1.10381

depreciation 0.5 0.5 0.5 0.5
1.75352 1.4955 1.33599 1.60381
Power cost 133.26752 97.2075 101.53524 150.75814

Total Cost 9302.58 10573.49 13747.30 17985.31

Sales Prices 11093 12904 16864 17778

Margin 1790.60 2330.34 3116.33 -207.27

16% 18% 18% -1%
Billets
Sales Realizations 18699 20557 26303 37439
power cost 1475 1195 1216 1508
Total Cost 10777.29 11768.39 14963.05 19492.90
Margins 7922 8789 11340 17946

Ferro Alloys
Manganese
Power
2010 2011 2012
In crores 2008-09 2008-09
Total Sales 1162.4 Total Purchases 837.21

sales to: Purchases from

Subsidiary 133.51 Subsidiary 64.05
Associate 197.64 Associate 23.68
Other related Parrties 32.2 Other related Parrties 210.63
Total 363.35 Total 298.36

31% 36%
PRODUCT WISE REVENUE BREAKUP
FY 2010 FY 2009
Products Gross Sales Excise Duty Net Sales Gross Sales Excise Duty Net Sales

Pellets 5.17 0.45 4.72 0 0 0

Sponge Iron 341.44 26.79 314.65 303.54 33.54 270
Steel Billets 135.76 26.79 108.97 416.48 52.77 363.71
HB Wire 221.04 17.15 203.89 295.7 34.15 261.55
Ferro Alloys 6.72 0.58 6.14 45.91 4.96 40.95
By Products 27.12 0.28 26.84 26.38 1.44 24.94
Power 95.12 0 95.12 74.39 74.39

Total 832.37 72.04 760.33 1162.4 126.86 1035.54

Product wise revenue as a %tage of Total Sales

Products 2010 2009 2008 2007

Pellets 1% 0%
Sponge Iron 41% 26%
Steel Billets 14% 36%
HB Wire 27% 25%
Ferro Alloys 1% 4%
By Products 3% 0%
Power 13% 6%
Pellets
Sponge Iron
Steel Billets
HB Wire
Ferro Alloys
By Products
Power
Valuation Matrix
(Rs. mn) FY08 FY09 FY10 FY11E
Market Cap 6106.6285 6106.6285 6106.6285 0
Net Sales 8293.01 10355.38 7764.3
EBITA 1627.28 1258.47 1256.33
Net Profit 950.57 573.60 514.02
EPS 33.86 20.43 18.31
P/E(x) 6.26 10.37 11.58
Price/Book(x) 0.89 1.26 1.37
EV/EBITA(x) 5.11 7.16 7.87
RoE(%) 33.9 20.4 18.3
RoCE(%) 14% 7% 6%
POWER & FUEL CONSUMPTION
Particulars Units/Mts million Total Amount Rs. In million
2007 2008 2009 2010 2007 2008
Electricity (Units)
Purchased 9.9 8.5 3.4 0 40.9 35.9
Own generation 174.3 290.3 184.7 141.8 0 0
Coal and Coke (Mts) 0.3 0.7 0.7 0.6 613.6 1358.9

CONSUMPTION PER UNIT OF PRODUCTION (PER MT)

Production Consumption of Electricty in Un
2007 2008 2009 2010 2007 2008
Power
Sponge Iron (MTs) 170340 285862 279533 285833 11092872 21840442
Steel ignots and Billets (MTs) 130979 209167 108156 56477 104598986 190515321
Ferro Alloys (MTs) 9283 9169 4462 48305 28970350 32492358
HB Wires 53991 66636 74372 72545 5129167 6328821
Power (Units) 174305276 290290384 315455876 332438426 19502969 30937752

Coke and Coal

Sponge Iron (MTs) 170340 285862 279533 285833 258031 463033
Power (Units) 174305276 290290384 315455876 332438426 95898 119907

PRODUCTION & SALES VOLUME OF PRODUCTS

Item Unit Production (Qty.) Sales
FY07 FY08 FY07
Sponge Iron MT 173040 285862 36226
growth % 65%
Steel Billets MT 130979 209167
growth % 60%
Power Generation Lac Units 1743.05 2902.9
growth % 67%
HB Wire MT 53991 66636
growth % 23%
Ferro Alloys MT 9283 9169
growth % -1%
tal Amount Rs. In million Average Amount per unit/MT
2009 2010 2007 2008 2009 2010

17 0 4.14 4.23 5 0
0 0 0 0 0 0
1739.8 1783.2 1810 2039 2567 2744

mption of Electricty in Units Average consumption of electricity units per MT or unit

2009 2010 2007 2008 2009 2010

26257835 29347934 65 76 94 103

101648915 55142090 910 799 940 976
0 3730250 3120 3543 0 77
8204049 7951921 95 95 110 110
33335196 33910877 0.11 0.11 0.11 0.1

482352 496833 1.51 1.62 1.73 1.74

136506 157320 0.55 0.41 0.43 0.47

Sales (Qty.) % of Sales to Production

FY08 FY07 FY08
63635 21% 22%
76%
0% 0%
#DIV/0!
0% 0%

#DIV/0!

#DIV/0!
10
Date Close Price Mcap Debt Cash EV EBIDTA 2x 4x
3/25/2008 174.15 0
3/26/2008 170.00
3/27/2008 172.40
3/28/2008 180.35
3/31/2008 165.65
4/1/2008 165.50
4/2/2008 167.65
4/3/2008 172.75
4/4/2008 170.80
4/7/2008 172.55
4/8/2008 171.60
4/9/2008 174.70
4/10/2008 179.25
4/11/2008 182.20
4/15/2008 183.10
4/16/2008 186.35
4/17/2008 187.00
4/21/2008 224.40
4/22/2008 223.20
4/23/2008 211.35
4/24/2008 205.95
4/25/2008 204.90
4/28/2008 213.95
4/29/2008 216.15
4/30/2008 209.35
5/2/2008 209.85
5/5/2008 218.20
5/6/2008 222.95
5/7/2008 221.20
5/8/2008 223.00
5/9/2008 213.00
5/12/2008 200.25
5/13/2008 196.10
5/14/2008 193.90
5/15/2008 197.85
5/16/2008 204.65
5/20/2008 205.35
5/21/2008 213.85
5/22/2008 206.90
5/23/2008 200.80
5/26/2008 197.15
5/27/2008 194.00
5/28/2008 192.05
5/29/2008 196.75
5/30/2008 193.45
6/2/2008 193.40
6/3/2008 191.25
6/4/2008 188.10
6/5/2008 194.75
 6/6/2008 197.05
6/10/2008 190.30
6/11/2008 193.20
6/12/2008 193.20
6/13/2008 195.10
6/16/2008 195.45
6/17/2008 200.00
6/18/2008 195.85
6/19/2008 192.40
6/20/2008 192.80
6/23/2008 192.20
6/24/2008 193.65
6/25/2008 202.70
6/26/2008 211.95
6/27/2008 207.35
6/30/2008 201.50
7/1/2008 198.85
7/2/2008 196.50
7/3/2008 189.35
7/4/2008 190.30
7/7/2008 195.05
7/8/2008 199.00
7/9/2008 205.95
7/10/2008 197.95
7/11/2008 197.60
7/14/2008 198.80
7/15/2008 198.30
7/16/2008 193.20
7/17/2008 196.65
7/18/2008 193.05
7/21/2008 193.45
7/22/2008 195.40
7/23/2008 201.55
7/24/2008 198.00
7/25/2008 194.30
7/28/2008 204.20
7/29/2008 198.25
7/30/2008 199.85
7/31/2008 200.80
8/1/2008 205.20
8/4/2008 210.70
8/5/2008 226.15
8/6/2008 219.40
8/7/2008 220.35
8/8/2008 216.75
8/11/2008 223.00
8/12/2008 217.75
8/13/2008 220.55
8/14/2008 213.50
8/18/2008 210.55
8/19/2008 210.00
8/20/2008 214.95
8/21/2008 205.25
8/22/2008 203.90
8/25/2008 208.05
8/26/2008 204.80
8/27/2008 198.65
8/28/2008 197.50
8/29/2008 198.60
9/1/2008 198.50
9/2/2008 202.40
9/4/2008 200.65
9/5/2008 198.65
9/8/2008 200.20
9/9/2008 199.90
9/10/2008 197.10
9/11/2008 189.15
9/12/2008 182.90
9/15/2008 172.30
9/16/2008 161.40
9/17/2008 157.80
9/18/2008 151.95
9/19/2008 157.40
9/22/2008 157.00
9/23/2008 151.45
9/24/2008 151.05
9/25/2008 148.70
9/26/2008 143.00
9/29/2008 132.00
9/30/2008 129.10
10/1/2008 132.90
10/3/2008 128.50
10/6/2008 121.35
10/7/2008 118.95
10/8/2008 113.05
### 102.80
### 106.00
### 106.55
### 95.75
### 94.40
### 91.35
### 87.70
### 88.50
### 84.70
### 79.50
### 72.90
### 66.55
### 74.50
### 70.25
### 75.55
11/3/2008 79.55
11/4/2008 89.25
11/5/2008 86.90
11/6/2008 82.65
11/7/2008 84.95
### 89.35
### 81.65
### 77.75
### 74.80
### 71.15
### 67.40
### 64.75
### 65.00
### 65.15
### 59.90
### 59.10
### 60.00
### 60.20
12/1/2008 60.05
12/2/2008 60.40
12/3/2008 60.40
12/4/2008 60.80
12/5/2008 59.90
12/8/2008 60.10
### 60.80
### 62.15
### 64.35
### 65.65
### 69.65
### 67.45
### 68.25
### 68.30
### 68.70
### 72.05
### 66.95
### 63.20
### 61.00
### 62.60
### 63.45
1/1/2009 65.95
1/2/2009 66.55
1/5/2009 71.05
1/6/2009 72.80
1/7/2009 65.30
1/9/2009 62.45
1/12/2009 61.50
1/13/2009 59.65
1/14/2009 60.10
1/15/2009 57.70
1/16/2009 57.10
1/19/2009 59.20
1/20/2009 61.15
1/21/2009 58.40
1/22/2009 57.10
1/23/2009 57.25
1/27/2009 53.75
1/28/2009 54.55
1/29/2009 54.90
1/30/2009 53.45
2/2/2009 50.55
2/3/2009 49.65
2/4/2009 49.30
2/5/2009 49.05
2/6/2009 51.05
2/9/2009 51.60
2/10/2009 52.80
2/11/2009 51.50
2/12/2009 50.05
2/13/2009 49.85
2/16/2009 48.50
2/17/2009 46.55
2/18/2009 44.40
2/19/2009 44.00
2/20/2009 44.20
2/24/2009 43.85
2/25/2009 45.05
2/26/2009 45.75
2/27/2009 45.25
3/2/2009 45.00
3/3/2009 45.20
3/4/2009 45.05
3/5/2009 45.15
3/6/2009 45.05
3/9/2009 45.35
3/12/2009 45.75
3/13/2009 46.00
3/16/2009 48.10
3/17/2009 47.70
3/18/2009 48.90
3/19/2009 49.25
3/20/2009 47.75
3/23/2009 50.15
3/24/2009 51.95
3/25/2009 52.40
3/26/2009 53.50
3/27/2009 53.35
3/30/2009 51.05
3/31/2009 52.80
4/1/2009 54.20
4/2/2009 58.10
4/6/2009 62.70
4/8/2009 64.95
4/9/2009 65.00
4/13/2009 75.95
4/15/2009 83.50
4/16/2009 79.50
4/17/2009 75.85
4/20/2009 75.50
4/21/2009 71.90
4/22/2009 72.25
4/23/2009 73.30
4/24/2009 73.40
4/27/2009 73.05
4/28/2009 68.15
4/29/2009 67.25
5/4/2009 70.60
5/5/2009 71.50
5/6/2009 70.00
5/7/2009 75.35
5/8/2009 78.40
5/11/2009 75.15
5/12/2009 75.05
5/13/2009 72.90
5/14/2009 74.55
5/15/2009 74.95
5/19/2009 84.25
5/20/2009 93.85
5/21/2009 105.55
5/22/2009 116.10
5/25/2009 118.05
5/26/2009 112.60
5/27/2009 115.45
5/28/2009 112.95
5/29/2009 113.65
6/1/2009 124.90
6/2/2009 131.80
6/3/2009 127.75
6/4/2009 128.30
6/5/2009 126.15
6/8/2009 115.25
6/9/2009 119.20
6/10/2009 118.25
6/11/2009 117.70
6/12/2009 113.05
6/15/2009 110.65
6/16/2009 113.90
6/17/2009 107.40
6/18/2009 102.05
6/19/2009 103.55
6/22/2009 109.50
6/23/2009 107.20
6/24/2009 111.75
6/25/2009 110.85
6/26/2009 112.00
6/29/2009 116.55
6/30/2009 111.50
7/1/2009 112.20
7/2/2009 112.65
7/3/2009 112.95
7/6/2009 102.90
7/7/2009 98.80
7/8/2009 102.40
7/9/2009 96.55
7/10/2009 90.90
7/13/2009 84.65
7/14/2009 88.55
7/15/2009 98.75
7/16/2009 94.90
7/17/2009 96.95
7/20/2009 100.70
7/21/2009 98.95
7/22/2009 97.15
7/23/2009 98.45
7/24/2009 104.10
7/27/2009 111.00
7/28/2009 109.65
7/29/2009 103.90
7/30/2009 106.00
7/31/2009 108.70
8/3/2009 115.10
8/4/2009 115.25
8/5/2009 113.30
8/6/2009 110.65
8/7/2009 107.00
8/10/2009 105.45
8/11/2009 105.50
8/12/2009 102.20
8/13/2009 109.00
8/14/2009 109.50
8/17/2009 104.55
8/18/2009 109.05
8/19/2009 113.95
8/20/2009 113.75
8/21/2009 115.55
8/24/2009 122.50
8/25/2009 129.65
8/26/2009 127.75
8/27/2009 128.45
8/28/2009 127.85
8/31/2009 135.85
9/1/2009 130.05
9/2/2009 139.45
9/3/2009 134.85
9/4/2009 134.60
9/7/2009 139.30
9/8/2009 140.20
 9/9/2009 138.90
9/10/2009 137.00
9/11/2009 133.70
9/14/2009 135.65
9/15/2009 144.40
9/16/2009 144.35
9/17/2009 144.00
9/18/2009 146.80
9/22/2009 156.40
9/23/2009 156.70
9/24/2009 174.60
9/25/2009 170.85
9/29/2009 174.80
9/30/2009 177.30
10/1/2009 171.10
10/5/2009 169.60
10/6/2009 168.75
10/7/2009 164.90
10/8/2009 170.85
10/9/2009 168.05
### 165.30
### 170.60
### 169.00
### 172.95
### 177.00
### 173.55
### 169.60
### 170.15
### 168.85
### 154.20
### 155.20
### 151.35
### 148.60
11/3/2009 129.50
11/4/2009 130.70
11/5/2009 133.80
11/6/2009 141.50
11/9/2009 143.90
### 144.10
### 142.35
### 138.85
### 141.25
### 141.55
### 139.25
### 138.85
### 135.10
### 136.85
### 135.40
### 134.30
### 134.35
### 137.15
 ### 135.90
### 143.35
12/1/2009 146.20
12/2/2009 146.30
12/3/2009 148.05
12/4/2009 146.05
12/7/2009 146.90
12/8/2009 146.75
12/9/2009 161.30
### 158.75
### 165.75
### 168.50
### 165.45
### 171.40
### 170.05
### 182.15
### 179.40
### 178.10
### 183.90
### 193.05
### 206.45
### 211.85
### 207.40
1/4/2010 224.25
1/5/2010 227.00
1/6/2010 231.85
1/7/2010 235.20
1/8/2010 230.55
1/11/2010 234.45
1/12/2010 224.35
1/13/2010 224.30
1/14/2010 237.00
1/15/2010 234.75
1/18/2010 232.00
1/19/2010 235.00
1/20/2010 231.45
1/21/2010 226.00
1/22/2010 227.55
1/25/2010 225.85
1/27/2010 206.00
1/28/2010 202.45
1/29/2010 198.10
2/1/2010 215.55
2/2/2010 220.95
2/3/2010 224.00
2/4/2010 216.35
2/5/2010 204.85
2/8/2010 208.50
2/9/2010 207.00
2/10/2010 211.05
2/11/2010 210.35
2/15/2010 208.00
2/16/2010 206.50
2/17/2010 207.35
2/18/2010 206.85
2/19/2010 200.50
2/22/2010 197.15
2/23/2010 195.20
2/24/2010 188.65
2/25/2010 188.70
2/26/2010 200.75
3/2/2010 204.40
3/3/2010 220.85
3/4/2010 227.40
3/5/2010 222.15
3/8/2010 223.65
3/9/2010 215.60
3/10/2010 210.10
3/11/2010 216.15
3/12/2010 212.80
3/15/2010 213.10
3/16/2010 215.40
3/17/2010 228.30
3/18/2010 235.15
3/19/2010 234.40
3/22/2010 225.85
3/23/2010 236.30
3/25/2010 232.60
3/26/2010 242.60
3/29/2010 253.15
3/30/2010 262.45
3/31/2010 262.85
4/1/2010 261.10
4/5/2010 276.90
4/6/2010 272.15
4/7/2010 272.10
4/8/2010 265.00
4/9/2010 264.80
4/12/2010 260.40
4/13/2010 259.65
4/15/2010 270.60
4/16/2010 272.05
4/19/2010 262.60
4/20/2010 270.60
4/21/2010 269.50
4/22/2010 287.25
4/23/2010 308.90
4/26/2010 309.65
4/27/2010 304.75
4/28/2010 299.75
4/29/2010 299.45
4/30/2010 287.00
 5/3/2010 281.00
5/4/2010 275.60
5/5/2010 267.20
5/6/2010 263.65
5/7/2010 245.75
5/10/2010 256.85
5/11/2010 254.40
5/12/2010 247.00
5/13/2010 248.20
5/14/2010 243.30
5/17/2010 237.30
5/18/2010 236.75
5/19/2010 226.10
5/20/2010 218.50
5/21/2010 216.20
5/24/2010 222.50
5/25/2010 210.80
5/26/2010 213.15
5/27/2010 216.80
5/28/2010 222.70
5/31/2010 224.35
6/1/2010 217.30
6/2/2010 215.95
6/3/2010 224.55
6/4/2010 222.20
6/7/2010 212.30
6/8/2010 207.50
6/9/2010 205.50
6/10/2010 197.15
6/11/2010 200.75
6/14/2010 206.95
6/15/2010 206.25
6/16/2010 212.15
6/17/2010 218.65
6/18/2010 213.00
6/21/2010 221.55
6/22/2010 219.55
6/23/2010 220.00
6/24/2010 220.80
6/25/2010 219.15
6/28/2010 233.60
6/29/2010 240.90
6/30/2010 236.35
7/1/2010 232.80
7/2/2010 227.90
7/5/2010 226.55
7/6/2010 221.45
7/7/2010 221.75
7/8/2010 224.15
7/9/2010 225.05
7/12/2010 226.05
7/13/2010 226.60
7/14/2010 233.65
7/15/2010 232.10
7/16/2010 234.30
7/19/2010 232.55
7/20/2010 235.40
7/21/2010 254.15
7/22/2010 250.95
7/23/2010 244.80
7/26/2010 242.95
7/27/2010 238.85
7/28/2010 238.20
7/29/2010 238.15
7/30/2010 240.30
8/2/2010 249.80
8/3/2010 236.25
8/4/2010 236.20
8/5/2010 235.35
8/6/2010 230.25
8/9/2010 232.05
8/10/2010 228.40
8/11/2010 226.30
8/12/2010 222.00
8/13/2010 227.30
8/16/2010 226.95
8/17/2010 223.75
8/18/2010 229.55
8/19/2010 231.95
8/20/2010 236.75
8/23/2010 234.90
8/24/2010 230.55
8/25/2010 223.35
8/26/2010 217.30
8/27/2010 212.80
8/30/2010 213.85
8/31/2010 208.05
9/1/2010 210.55
9/2/2010 215.85
9/3/2010 216.45
9/6/2010 221.40
9/7/2010 221.55
9/8/2010 220.55
9/9/2010 219.95
9/13/2010 221.75
9/14/2010 219.95
9/15/2010 217.55
9/16/2010 214.15
9/17/2010 218.65
9/20/2010 217.55
9/21/2010 212.80
9/22/2010 212.35
9/23/2010 211.65
9/24/2010 211.10
9/27/2010 210.35
9/28/2010 210.90
9/29/2010 210.70
9/30/2010 208.90
10/1/2010 210.35
10/4/2010 214.35
10/5/2010 215.20
10/6/2010 215.35
10/7/2010 213.35
10/8/2010 213.00
### 215.85
### 214.55
### 222.45
### 219.20
6x 8 x EV/EBIDTA EBIDTA
FY08 1627.3
FY09 1258.5
FY10 1256.3
FY11E
FY12E
Diff Count
Schedules forming part of Balance Sheet & Profit/Loss A/C
Schedules 2007 2008 2009 2010

CAPITAL
Authorised 2500 3500
Issued 2484.4 2806.98
Paid-up 2484.4 2806.98

RESERVES & SURPLUS

Securities Premium
Balance as per last account 1,397.37 6,915.30
Add: on account of QIP(Public issue) during the year 6,173.45 9,677.42
Less: Utilized against QIP (Public issue) Expenses 655.52 288.32
6,915.30 16,304.40
General Reserve 2,500.00 4,000.00
Add: Transfer from P & L A/C 1,500.00 1,500.00

P & L A/c 7,111.30 13,796.11

18,026.60 35,600.51
SECURED LOANS
Loans and advances from Banks
- Cash credit facilities
- Term Loans
- Foreign currency buyers credit facility
- ECBs
Other Loans & Advances

INVENTORIES
Raw Materials and components
Stores and spares
WIP
Finished Goods and By-products
Trading Goods

CASH & BANK

Cash in Hand
Balances with Schedule Banks
- on current accounts
- on deposit accounts
- on unpaid dividend account
- on public issue refund account

CURRENT LIABILITIES
Acceptances
Sundry creditors for goods, services and expenses
Subsidiary company
Advances from customers
Creditors for capital goods.
Investor education and protection fund shall be credited
namely
- unclaimed dividend
- unclaimed public issue refund application money

Interest accured but not due on loans

Others

Due to micro and SME

Due to other micro and SME

GROSS TURNOVER
Sale of Mfg. goods
Sale of trading goods
Sale of Electricity
Sale of Carbon Credit

% of Gross Turnover

Sale of Mfg. goods

Sale of trading goods
Sale of Electricity
Sale of Carbon Credit

INCREASE/DECREASE IN STOCK-IN-TRADE
Closing Stock
- WIP
- Finished goods and by-products
- Traded goods

Opening Stock
- WIP
- Finished goods and by-products
- Traded goods

Net Increase/ Decrease in Stock in trade

Excise duty on stocks

RAW MATERIALS CONSUMED

Opening Stock
Add:Purchases

Less: Closing Stock

 2006 2007 2008 2009 2010
Sponge Iron
Prodcution 107023 170340 279533 285833

Sales 21217 36226 63635 170740

20% 21% 23% 60%
Rs 235364000 467454000 1073117000 3035423000
Per tonne Realizations 11093 12904 16864 17778

Transfer for manufacturing Billets 82787 135058 215489 107667

77% 79% 77% 38%

Balance 3019 -944 409 7426

3% -1% 0% 3%

Billets
Prodcution 92498 130979 108156 56477
Sales 91494 132024 206527 111243
Rs 1710843000 2714015000 5432222000 4164778000
Per tonne Realizations 18699 20557 26303 37439

Sales to R.R. Ispat 72222 81106 80025

Sales To RR Ispat in Ruppes 1256626015 1779862455 2075266921
Per tonne to RR 17399 21945 25933
Balance of Total sold to RR 55% 39% 72%

Outside Sales 1457388985 3652359545 2089511079

Balance sales 59802 125421 31218
Per tonne for merchandise 24370 29121 66933
45% 61% 28%

H.B Wire
Prodcution 23924 53991 74372 74373
Sales 22915 54229 65330 75661
Rs 548691000 1401863000 2091037000 2956964000
Per tonne Realizations 23945 25851 32007 39082

Ferro Alloys
production 2200 9283 9168 4462
sales 2031.2 9198.2 8300.45 5556
Rs 58019000 294421000 444394000 459189000
Per tonne Realizations 28564 32009 53539 82647

Power
production 112 174 290 315
sales 9 6 15 123
transfer 104
Total Realizations 33 21 32 744
Per unit Realizations 3.43 3.30 2.19 6.05

RR Ispat
MS Rounds Coil
Prodcution 66293.79 73267.12 71171.63
Sales 42533.025 46872.49 50623
Rs 1014457160 1414179550 1762853934
Per tonne Realizations 23851 30171 34823

HB Wire
Prodcution 19771.99 23844.19 19602.3
Sales 19935.635 23616.46 19825.8
Rs 505323572 737846007 755765729
Per tonne Realizations 25348 31243 38120

Waste and Scrap

Prodcution 3689.825 4080.2
Sales 3643.66 4145.545
Rs 83347328 115437395
Per tonne Realizations 22875 27846
2011 2012 100000