APPENDIX 4D HALF-YEAR REPORT For personal use onlyState Bank of India Export Import Bank of India...

1. Company detailsName of entity:ABN:Reporting period:Previous corresponding period:

2.

down 66.6% to

down 4841.9% to

down 4841.9% to

Dividends

3.

Net tangible assets per ordinary security

4.

Name of entities (or group of entities)

Date control gained

Contribution of such entities to the reporting entity's profit/(loss) from ordinary activities before income tax during the period (where material)

Profit/(loss) from ordinary activities before income tax of the controlled entity (or group of entities) for the whole of the previous corresponding period(where material)

$(74,116,000)

$(74,116,000)

There were no dividends paid, recommended or declared during the current financial period.

Comments

18.09 cents

Gujarat NRE Coking Coal LimitedHalf-year report

APPENDIX 4DHALF-YEAR REPORT

The loss for the consolidated entity after providing for income tax amounted to $74,116,000 (30 September 2012: profit of$1,563,000).

Further information on the review of operations is detailed in the Directors' report attached as part of the Interim Report.

$ -

Revenues from ordinary activities

Results for announcement to the market

Loss from ordinary activities after tax attributable to the owners of Gujarat NRE Coking Coal Limited

Loss for the period attributable to the owners of Gujarat NRE Coking Coal Limited

Gujarat NRE Coking Coal Limited28 111 244 896Half-year ended 30 September 2013Half-year ended 30 September 2012

$ 40,344,000

Not applicable.

23.44 centsReporting period Previous corresponding period

Control gained over entities

Net tangible assets

$ -

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Gujarat NRE Coking Coal LimitedHalf-year report

5.

Name of entities (or group of entities)

Date control lost

Contribution of such entities to the reporting entity's profit/(loss) from ordinary activities after income tax during the period (where material)

Profit/(loss) from ordinary activities after income tax of the controlled entity (or group of entities) whilst controlled during the whole of the previous corresponding period (where material)

6.

Current period

Previous corresponding period

7.

8.

Name of associate / joint venture

Cethana Project

Group's aggregate share of associates and joint venture entities' profit/(loss) (where material)

$ -

$ -

Gujarat NRE Properties Pty Ltd

18 June 2013

There were no dividends paid, recommended or declared during the current financial period.

$ -

Loss of control over entities

Dividends

periodcorresponding

Previous Previous

Current period periodcorresponding

Current period

$ - $ -

$ -

Not applicable.

Dividend reinvestment plans

$ - Income tax on operating activities

There were no dividends paid, recommended or declared during the previous financial period.

On 27 October 2013, the Board approved certain financial and corporate measures regarding, amongst other things, thecompany's dividend policy. Refer to note 8 of the Interim Report for further details.

Details of associates and joint venture entities

percentage holdingContribution to profit/(loss)

(where material)Reporting entity's

30.00% 30.00%

Not applicable.

Profit/(loss) from ordinary activities before income tax

The following dividend or distribution plans are in operation:

$ -

The last date(s) for receipt of election notices for the dividend or distribution plans:

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Gujarat NRE Coking Coal Limited

Half-year report

9.

10.

11.

12.

Details of origin of accounting standards used in compiling the report:

Signed

Corrimal, NSW

Chairman

Jasbir Singh

Signed: ________________________________ Date: 20 December 2013

Details of attachments (if any):

The Interim Report of Gujarat NRE Coking Coal Limited for the half-year ended 30 September 2013 is attached.

Audit qualification or review

Not applicable.

Details of audit/review dispute or qualification (if any):

Attachments

The accounts were subject to a review by the auditors and a qualified review report is attached as part of the Interim

Report.

Foreign entities

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Interim Report - 30 September 2013

ABN 28 111 244 896

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Fx: +61 (02) 9279 0664

383 Kent Street

7 Princes Highway Corrimal, NSW 2518

Directors

Company secretary

www.gujaratnre.com.au

Term Lenders:State Bank of IndiaExport Import Bank of IndiaBank of BarodaUnion Bank of IndiaUCO BankAfra Asia Bank

Gujarat NRE Coking Coal Limited shares are listed on the Australian Securities Exchange (ASX code: GNM)

Website

Stock exchange listing

Bankers

Corrimal, NSW 2518

Ph: +61 (02) 9290 9600

207 Kent StreetLevel 7Boardroom Pty Limited

7 Princes Highway

Axis Bank LimitedDBS Bank LimitedCanara BankPunjab National BankState Bank of MauritiusMauritius Commercial Bank

State Bank of India, Sydney Branch

Sydney, NSW 2000

Grant Thornton Audit Pty LtdAuditorLevel 17

Sydney, NSW 2000

Lot 31Principal place of business

Registered office

Share register

Ph: +61 (02) 4223 6836Fx: +61 (02) 4283 7449


30 September 2013Corporate directory

Mr. Sanjay Sharma (Chief Commercial Officer)

Lot 31

Mr Jasbir Singh (Director appointed on 29 July 2013 and Chairman and Chief Executive Officer on 27 October 2013)Mr Arun Kumar JagatramkaDr Andrew E. FirekMr Maurice AnghieMrs. Mona Jagatramka (resigned on 29 July 2013)

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Gujarat NRE Coking Coal Limited Directors’ report 30 September 2013 The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the ‘consolidated entity’) consisting of Gujarat NRE Coking Coal Limited (referred to hereafter as the ‘company’ or ‘parent entity’) and the entities it controlled for the half-year ended 30 September 2013. Directors The following persons were directors of Gujarat NRE Coking Coal Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated: Mr Jasbir Singh (appointed director on 29 July 2013 and Chairman and Chief Executive Officer on 27 October 2013) Mr Arun Kumar Jagatramka (Executive Chairman till 27 Oct 2013 and Non-executive director since Oct 27 2013) Dr Andrew E. Firek (Independent Non-executive director) Mr Maurice Anghie (Independent Non-executive director) Mrs Mona Jagatramka (resigned on 29 July 2013) Principal activities During the financial half-year the continuing principal activities of the consolidated entity consisted of:

mining and producing coal; selling and exporting coal; and expanding and developing NRE No. 1 and NRE Wongawilli collieries.

Review of operations and operating result The loss for the consolidated entity after providing for income tax amounted to $74,116,000 (30 September 2012: profit of $1,563,000). The above loss is after giving effect to a net foreign exchange loss of $40,237,000 in financial half-year, as compared with a net foreign exchange gain of $826,000 in the corresponding previous half-year. $40,512,000 of the foreign exchange loss is unrealised and relates to the change in exchange rate between the US dollar and Australian dollar. Production The consolidated entity extracted approximately 442,000 tonnes of ROM (run-of-mine) coal during the financial half- year ended 30 September 2013. The production was much lower compared to approximately 906,000 tonnes of ROM coal extracted during the financial half-year ended 30 September 2012 due to hard sill material and igneous dyke encountered while mining Longwall 5 at NRE No. 1 Colliery; production commencing at NRE Wongawilli sometime in June 2013 after longwall had been relocated to a N2, newly developed area in Nebo part of the Wongawilli Colliery; and delay in receiving services and consumables on various occasions due to cash-flow constraints. Development The consolidated entity continued development of Maingate 6 (‘MG6’) during financial half-year, which is required for the extraction of coal from the next block (Longwall 6) at NRE No. 1 Colliery. Approximately 700 metres of development was achieved during the reporting period at MG6. Similarly at NRE Wongawilli Colliery, development for future longwall blocks was undertaken with a progress of 567 metres development in the N4 panel. Approvals NRE No.1 Colliery - A modified application for the Underground Expansion Project Part 3A was submitted to the Department of Planning & Infrastructure (‘DPI’) on 25 September 2013 for determination. The modified application is similar to the original proposal, to increase production to up to 3 million tonnes per annum including upgrading surface infrastructure and extraction of coal from only 8 longwalls in the Wonga East area. To expedite the current approval process the 7 longwalls in the Wonga East area have been removed from the current application. The consolidated entity plans to submit a separate application for those 7 longwalls at a later date. Subject to approval of the currently submitted application for 8 longwalls, the mine life in the Wonga East area will be extended for an additional 5 years. The subsequent application for the further 7 longwalls the mine life will be extended further for up to 18 years. NRE Wongawilli Colliery – All approvals for current longwall operations are in place via an extension plan, which was approved by DPI and a Subsidence Management Plan (‘SMP’) allowing first 800 metres of longwall N2. The consolidated entity is currently working on SMP approval for the entire extraction of this panel.

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Gujarat NRE Coking Coal Limited Directors’ report 30 September 2013 Workplace health and safety Continuous improvement in the development of the Health and Safety management systems throughout the safety regime of the consolidated entity is being rewarded with a positive workplace culture and ultimately continued reductions in workplace injuries and incidents. A continued effort across the workforce to create a proactive thought process, rather than a reactive correction need, is assisting in the continual improvement process. The focus on safety and a positive workplace culture has produced encouraging results with a large number of workgroups across the consolidated entity’s workforce exceeding greater than 500 days loss time injury free, being topped out with two workgroups reaching five years loss time injury free. This is a fantastic achievement by, and congratulations to, all involved.

NRE No.1 mine

NRE Wongawilli Mine

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Gujarat NRE Coking Coal Limited Directors’ report 30 September 2013 Community relations There have been substantial community and agency focus on the activities at NRE No.1 Colliery due to the current Part 3A public exhibition. Two community information days were held, which were attended by 16 community members. During the financial half-year, one complaint was received at NRE No.1 Colliery for an incident unrelated to its operations and NRE Wongawilli received one complaint related to dust emissions from coal trains during a period of dry and windy weather.

Remedial noise control works including installation of a sound absorptive enclosure and acoustic earth bunding was undertaken and completed to comply with current noise emission criteria.

Community Consultative Committees (‘CCC’) of both collieries continues to meet at regular intervals to deal with matters related to community.

Corporate update Funding and finances Due to economic downturn, adverse market conditions especially lower coal prices for an extended period and lower production, the consolidated entity was facing difficulties with its cash-flow for many months resulting in delay and non-payment to its creditors including employees (who were not paid for almost 5 weeks during the month of September 2013). In order to alleviate its difficult cash-flow, the consolidated entity finalised a placement deal with Jindal Steel & Power (Mauritius) Limited (‘JSPL’), approved by the shareholders in a general meeting held on 16 October 2013, to receive approximately $66 million in exchange of issuing 328,500,000 fully paid ordinary shares in the company at a price of $0.20 per share attached with 328,500,000 options exercisable at Nil price within a period of 5 years from the date of allotment. It was also agreed, and approved by the company’s shareholders, that previous off-take agreements between the consolidated entity and Gujarat NRE Coke Limited (‘GNCL’) be replaced with new off-take agreements between JSPL and GNCL. As at 30 September 2013, the company was in receipt of $42 million of new funding. 175,674 new shares issued by the company pursuant to its previous rights issue, which was partially underwritten, to raise up to $68.8 million were cancelled as the company was unable to raise minimum amount. The company also issued a cash bond (in the form of deed) in early July 2013 to Ultrabulk (ship owner) with a guaranteed maturity value of US $2.5 million representing freight and demurrage and maturity date of 16 December 2013 or the bondholder will have a right to convert this bond into 25 million fully paid ordinary shares (Shares) in the company. As at the date of this report, this amount of US $2.5 million remains payable and the company has not received notice for the issue of Shares. However, the company has received the notice of demand to repay full amount. Subsequent to a placement deal with JSPL, the consolidated entity was able to finance US $10 million fresh debt with an option to increase up to $60 million as well as US $106.5 million with an option to increase up to $140 million from its existing lenders for its capital expenditures. Board structure As part of the placement deal with JSPL, Mrs Mona Jagatramka was replaced on the Board by Mr Jasbir Singh who is the nominee director of JSPL. In addition, Mr Arun Kumar Jagatramka acted as the Executive Chairman of the company’s Board of Directors until 27 October 2013 who was replaced by Mr Jasbir Singh (appointed as the Chairman and Chief Executive Officer of the company with effect from 27 October 2013). Auditor’s review report The attached financial statements detail the performance and financial position of the consolidated entity for the half-year ended 30 September 2013. It also contains an independent auditor’s review report which includes an emphasis of matter paragraph in regard to the existence of a material uncertainty that may cast significant doubt about the consolidated entity’s ability to continue as a going concern and also a qualified opinion in respect of the carrying value of deferred tax assets and receivables. For further information, refer to note 1 to the financial statements and the independent auditor's review report. Significant changes in the state of affairs Restatement of comparatives The consolidated entity impaired assets and made other adjustments that related to prior to the beginning of the current half-year period. The statement of financial position as at 31 March 2013 was restated accordingly. Refer to note 2 to the financial statements for further information on the restatement.

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Gujarat NRE Coking Coal Limited Directors’ report 30 September 2013

Events after the reporting period

There have been a number of events after the reporting date including change of control, liquidity and financing issues and a rights issue. Refer to note 8 to the financial statements for further information.

There were no other significant changes in the state of affairs of the consolidated entity during the financial half-year.

Rounding of amounts The company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, the nearest dollar.

Auditor’s independence declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on the following page.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the directors

_____________________________ Jasbir Singh Chairman 20 December 2013 Corrimal, NSW

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Grant Thornton Audit Pty Ltd ACN 130 913 594 Level 19, 2 Market Street Sydney NSW 2000 Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230 T +61 2 8297 2400 F +61 2 9299 4445 E [email protected] W www.grantthornton.com.au

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant

Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered

by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context

only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton

Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

Auditor’s Independence Declaration

To The Directors of Gujarat NRE Coking Coal Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead

auditor for the review of Gujarat NRE Coking Coal Limited for the half-year ended 30

September 2013, I declare that, to the best of my knowledge and belief, there have been:

a no contraventions of the auditor independence requirements of the Corporations Act

2001 in relation to the review; and

b no contraventions of any applicable code of professional conduct in relation to the

review.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

I S Kemp

Partner - Audit & Assurance

Sydney, 20 December 2013

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Lot 317 Princes Highway Corrimal, NSW 2518

A description of the nature of the consolidated entity's operations and its principal activities are included in thedirectors' report, which is not part of the financial report.

The financial report was authorised for issue, in accordance with a resolution of directors, on 20 December 2013. Thedirectors have the power to amend and reissue the financial report.

General information

The financial report covers Gujarat NRE Coking Coal Limited as a consolidated entity consisting of Gujarat NRECoking Coal Limited and the entities it controlled. The financial report is presented in Australian dollars, which isGujarat NRE Coking Coal Limited's functional and presentation currency.

Contents

Financial report

Notes to the financial statementsDirectors' declaration

Independent auditor's review report to the members of Gujarat NRE Coking Coal Limited

The financial report consists of the financial statements, notes to the financial statements and the directors'declaration.

Statement of profit or loss and other comprehensive incomeStatement of financial positionStatement of changes in equityStatement of cash flows


30 September 2013Financial report

Gujarat NRE Coking Coal Limited is a listed public company limited by shares, incorporated and domiciled inAustralia. Its registered office and principal place of business is:

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Note 30/09/2013 30/09/2012$'000 $'000

4 40,344 120,851

5 275 826

(61,046) (82,257)(13,585) (20,111)(11,227) (4,636)(4,284) (1,235)

- (1,894)(6,408) -

(40,512) - (11,158) (9,266)

(107,601) 2,278

33,485 (715)

(74,116) 1,563

150 (340)(45) 102

105 (238)

(74,011) 1,325

Cents Cents

11 (5.386) 0.151 11 (5.386) 0.150

Gain/(loss) on revaluation of available-for-sale financial assetsItems that may be reclassified subsequently to profit or loss

Profit/(loss) after income tax (expense)/benefit for the half-year attributable to the owners of Gujarat NRE Coking Coal Limited

Income tax (expense)/benefit

Other income

Revenue

Net foreign exchange loss unrealisedLoss on disposal of assets

Finance costs

Other comprehensive income


For the half-year ended 30 September 2013Statement of profit or loss and other comprehensive income

Consolidated

Cost of salesDistribution expenses

Environmental expensesImpairment of assets

Expenses

Administrative expenses

Diluted earnings per shareBasic earnings per share

Profit/(loss) before income tax (expense)/benefit

Other comprehensive income for the half-year, net of tax

Total comprehensive income for the half-year attributable to the owners of Gujarat NRE Coking Coal Limited

Income tax on item of other comprehensive income

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

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Note 30/09/2013 31/03/2013$'000 $'000

25,270 2,913 6 73,197 59,618

14,987 17,347 113,454 79,878

2,970 5,062 726,612 726,673 78,910 45,470

360 360 376 366

809,228 777,931

922,682 857,809

7 169,274 115,458 329,228 312,999 66,301 48,821

199 1,067 13,785 14,801

578,787 493,146

68,084 15,786 10,910 10,444 15,868 15,526

- 284 94,862 42,040

673,649 535,186

249,033 322,623

639,634 639,634 21,397 20,871

(411,998) (337,882)

249,033 322,623

Reserves

Property, plant and equipment

Exploration and licensesDeposits

Restoration guarantee

Total liabilities

Liabilities

Loan from related party

Total non-current assets

Current assets

Assets

Cash and cash equivalents

Accumulated losses

Trade and other receivablesInventories

Deferred tax

Total current liabilities

Working capital facilities from banks

Current liabilities

Non-current assets

Total current assets

Available-for-sale financial assets

Total equity

Refer to note 2 for detailed information on restatement of comparatives.

Bonds

Total non-current liabilities

Net assets

Borrowings

Gujarat NRE Coking Coal LimitedStatement of financial positionAs at 30 September 2013

Consolidated

Trade and other payablesBorrowings

Derivative financial instrumentsProvisions

Total assets

Issued capitalEquity

Non-current liabilities

The above statement of financial position should be read in conjunction with the accompanying notes

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Totalequity

$'000 $'000 $'000 $'000

562,240 19,769 3,503 585,512

- - 1,563 1,563

- - - (238) - (238)

- - - (238) 1,563 1,325

32,500 - - 32,500 - (51) - (51)

- - 594,740 19,480 5,066 619,286

Totalequity

$'000 $'000 $'000 $'000

639,634 20,871 (337,882) 322,623

- - (74,116) (74,116)

- - - 105 - 105

- - - 105 (74,116) (74,011)

- 421 - 421

- - 639,634 21,397 (411,998) 249,033

Transactions with owners in their capacity as owners:

Balance at 30 September 2013

Share-based payments

Issuedcapital


Loss after income tax (expense)/benefit for the half-year

Total comprehensive income for the half-year

Balance at 1 April 2013


For the half-year ended 30 September 2013Statement of changes in equity


Profit after income tax (expense)/benefit for the half-year

Total comprehensive income for the half-year

Contributions of equity, net of transaction costs Share-based payments

Balance at 30 September 2012

Consolidated

Transactions with owners in their capacity as owners:

Reserves profitsRetained

capitalIssued

ReservesAccumulated

losses

ConsolidatedBalance at 1 April 2012

The above statement of changes in equity should be read in conjunction with the accompanying notes

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30/09/2013 30/09/2012$'000 $'000

36,316 142,900 (55,615) (132,995)

(19,299) 9,905 (9,709) (9,670)

(29,008) 235

- (14,345)(32,071) (54,548)

- (7)1,752 - 3,750 -

(26,569) (68,900)

- 32,500 71,775 33,857 (9,551) 13,151 42,000 -

(26,280) (10,175)(10) (71)

77,934 69,262

22,357 597 2,913 3,749

25,270 4,346

Receipts from customers Payments to suppliers and employees

Proceeds on sales of properties

Consolidated

Cash flows from operating activities

Payments for mine development

Interest and other finance costs paid

Net cash from/(used in) operating activities


For the half-year ended 30 September 2013Statement of cash flows

Cash and cash equivalents at the beginning of the financial half-year

Cash and cash equivalents at the end of the financial half-year

Cash flows from investing activities

Investment in Cethana Project - JV expenses

Net cash from financing activities

Proceeds from borrowings

Proceeds from sale of investments

Payments for property, plant and equipment

Proceeds from issue of shares

Advance from Jindal

Net increase in cash and cash equivalents

Cash flows from financing activities

Net increase in related party loans receivables

Net cash used in investing activities

Repayment of borrowings:Loan of Axis BankPayment of deposits

The above statement of cash flows should be read in conjunction with the accompanying notes

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The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretationsissued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

New, revised or amending Accounting Standards and Interpretations adopted

AASB 12 Disclosure of Interests in Other Entities

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not beenearly adopted.

Any significant impact on the accounting policies of the consolidated entity from the adoption of these AccountingStandards and Interpretations are disclosed below. The adoption of these Accounting Standards and Interpretationsdid not have any significant impact on the financial performance or position of the consolidated entity.

The following Accounting Standards and Interpretations are most relevant to the consolidated entity:


These general purpose financial statements for the interim half-year reporting period ended 30 September 2013 havebeen prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and theCorporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliancewith International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.

30 September 2013

These general purpose financial statements do not include all the notes of the type normally included in annualfinancial statements. Accordingly, these financial statements are to be read in conjunction with the annual report forthe year ended 31 March 2013 and any public announcements made by the company during the interim reportingperiod in accordance with the continuous disclosure requirements of the Corporations Act 2001.

Notes to the financial statements

The principal accounting policies adopted are consistent with those of the previous financial year and correspondinginterim reporting period, unless otherwise stated.

Note 1. Significant accounting policies

AASB 11 Joint ArrangementsThe consolidated entity has applied AASB 11 from 1 April 2013. The standard defines which entities qualify as jointarrangements and removes the option to account for joint ventures using proportional consolidation. Joint ventures,where the parties to the agreement have the rights to the net assets will use equity accounting. Joint operations,where the parties to the agreements have the rights to the assets and obligations for the liabilities will account for theassets, liabilities, revenues and expenses in accordance with the standards applicable to the particular assets,liabilities, revenues and expenses with interests in other entities, subsidiaries, associates and joint arrangements.

The consolidated entity has applied AASB 10 from 1 April 2013, which has a new definition of 'control'. Control existswhen the reporting entity is exposed, or has the rights, to variable returns (e.g. dividends, remuneration, returns thatare not available to other interest holders including losses) from its involvement with another entity and has the abilityto affect those returns through its 'power' over that other entity. A reporting entity has power when it has rights (e.g.voting rights, potential voting rights, rights to appoint key management, decision making rights, kick out rights) thatgive it the current ability to direct the activities that significantly affect the investee’s returns (e.g. operating policies,capital decisions, appointment of key management). The consolidated entity not only has to consider its holdings andrights but also the holdings and rights of other shareholders in order to determine whether it has the necessary powerfor consolidation purposes.

AASB 10 Consolidated Financial Statements

The consolidated entity has applied AASB 12 from 1 April 2013. The standard contains the entire disclosuresrequirements associated with interests in other entities, subsidiaries, associates and joint arrangements. Thedisclosure requirements have been significantly enhanced when compared to the disclosures previously located inAASB 127 'Consolidated and Separate Financial Statements', AASB 128 'Investments in Associates', AASB 131'Interests in Joint Ventures' and Interpretation 112 'Consolidation - Special Purpose Entities'.

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30 September 2013Notes to the financial statements

AASB 127 Separate Financial Statements (Revised)AASB 128 Investments in Associates and Joint Ventures (Reissued)The consolidated entity has applied AASB 127 and AASB 128 from 1 April 2013, which have been modified to removespecific guidance that is now contained in AASB 10, AASB 11 and AASB 12.

AASB 2012-2 Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial Assets andFinancial LiabilitiesThe consolidated entity has applied AASB 2012-2 from 1 April 2013, which enhanced the disclosure requirements ofAASB 7 'Financial Instruments: Disclosures' (and consequential amendments to AASB 132 'Financial Instruments:Presentation') to provide information about netting arrangements, including rights of set-off related to an entity'sfinancial instruments and the effects of such rights on its statement of financial position.

AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 2009-2011 CycleThe consolidated entity has applied AASB 2012-5 from 1 April 2013. The amendments affect five AustralianAccounting Standards as follows: Confirmation that repeat application of AASB 1 'First-time Adoption of AustralianAccounting Standards' is permitted; Clarification of borrowing cost exemption in AASB 1; Clarification of thecomparative information requirements when an entity provides an optional third column or is required to present athird statement of financial position in accordance with AASB 101 'Presentation of Financial Statements'; Clarificationthat servicing of equipment is covered by AASB 116 'Property, Plant and Equipment', if such equipment is used formore than one period; clarification that the tax effect of distributions to holders of equity instruments and equitytransaction costs in AASB 132 'Financial Instruments: Presentation' should be accounted for in accordance withAASB 112 ‘Income Taxes’; and clarification of the financial reporting requirements in AASB 134 Interim FinancialReporting' and the disclosure requirements of segment assets and liabilities.

AASB 2012-9 Amendment to AASB 1048 arising from the Withdrawal of Australian Interpretation 1039The consolidated entity has applied AASB 2012-9 amendments from 1 April 2013. The amendments removereference in AASB 1048 following the withdrawal of Interpretation 1039 'Substantive Enactment of Major Tax Bills inAustralia'.

AASB 2012-10 Amendments to Australian Accounting Standards - Transition Guidance and Other AmendmentsThe consolidated entity has applied AASB 2012-10 amendments from 1 April 2013, which amends AASB 10 andrelated standards for the transition guidance relevant to the initial application of those standards. The amendmentsclarify the circumstances in which adjustments to an entity’s previous accounting for its involvement with other entitiesare required and the timing of such adjustments.

The consolidated entity has applied AASB 119 and its consequential amendments from 1 April 2013. The standardeliminates the corridor approach for the deferral of gains and losses; streamlines the presentation of changes inassets and liabilities arising from defined benefit plans, including requiring remeasurements to be presented in othercomprehensive income; and enhances the disclosure requirements for defined benefit plans. The standard alsochanged the definition of short-term employee benefits, from 'due to' to 'expected to' be settled within 12 months.Annual leave that is not expected to be wholly settled within 12 months is now discounted allowing for expected salarylevels in the future period when the leave is expected to be taken.

Note 1. Significant accounting policies (continued)

AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting Standards arising fromAASB 13The consolidated entity has applied AASB 13 and its consequential amendments from 1 April 2013. The standarddoes not prescribe when to use fair value. Instead it provides a single robust measurement framework, with clearmeasurement objectives, for measuring fair value using the 'exit price' and it provides guidance on measuring fairvalue when a market becomes less active. The 'highest and best use' approach would be used to measure assetswhereas liabilities would be based on transfer value.

AASB 119 Employee Benefits (September 2011) and AASB 2011-10 Amendments to Australian AccountingStandards arising from AASB 119 (September 2011)

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Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine and AASB 2011-12 Amendments toAustralian Accounting Standards arising from Interpretation 20The consolidated entity has applied Interpretation 20 and its consequential amendments from 1 April 2013. TheInterpretation clarifies when production stripping costs should lead to the recognition of an asset and how that assetshould be initially and subsequently measured. ‘Stripping’ refers to the process where waste is removed from thesurface to gain access to the mine deposits underneath. If the benefit from the stripping activity will be realised in thecurrent period, the consolidated entity is required to account for the stripping activity costs as part of the cost ofinventory. When the benefit is the improved access to ore, the consolidated entity recognises these costs as a non-current ‘stripping activity ‘asset, if certain criteria are met. The stripping activity asset is accounted for as an additionto, or as an enhancement of, an existing asset. If the costs of the stripping activity asset and the inventory producedare not separately identifiable, the consolidated entity allocates the cost between the two assets using an allocationmethod based on a relevant production measure. After initial recognition, the stripping activity asset is carried at itscost or revalued amount less depreciation or amortisation and less impairment losses, in the same way as theexisting asset of which it is a part.

Going concern

The consolidated entity financial result at 30 September 2013 is as follow:

• Loss after income tax of $74,116,000 (September 2012 half-year: profit of $1,563,000).The net loss includes a netforeign exchange loss of $40,237,000 in the financial half-year, as compared to a net foreign exchange gain of$826,000 in the corresponding previous half-year. $40,512,000 of the net foreign exchange loss is unrealised andrelates to the change in exchange rate between the US dollar and Australian dollar.

• Net current assets deficiency of $465,333,000 (31 March 2013: $413,268,000) including current borrowings of$329,228,000 (31 March 2013: $312,999,000) from which $329,228,000 (31 March 2013: $231,910,000) have beenreclassified as current liabilities to comply with Accounting Standards AASB101 'Presentation of FinancialStatements', due to breach of financial covenants, and an advance from Jindal Steel & Power of $42,000,000 whichwas converted to equity subsequent to the end of the financial period.

The current adverse performance of the consolidated entity was primarily due to:• Significant adverse financial market conditions; • The high Australian dollar resulting in lower revenues;• Lower coking coal prices during the financial period;• Reduced production due to development activities carried out at the mine; and• Delay in receiving services and consumables on various occasions due to liquidity issues.

The directors consider the consolidated entity to be a going concern on the basis of the following:

Production at NRE Wongawilli CollieryThe consolidated entity is expecting relatively smoother and continuous production at its NRE Wongawilli colliery as itis currently mining Longwall N2 and it has all the necessary approvals in place to continue mining up to 2015-16. Theconsolidated entity is also in process of obtaining further approvals to extend the mining activities for up to 15 years.The consolidated entity has successfully negotiated/renegotiated payment plans with most of its creditors andexpecting to avoid unnecessary delays that were experienced in past due to liquidity issue.

Production at NRE No.1 CollieryNRE No.1 Colliery currently has approval to extract coal from LW 5 up to December 2013 and anticipating to receivelong term approvals to extract coal from further longwalls in February 2014. In the meantime, the consolidated entitywill be focusing on completion of MG6 development that is necessary for mining of Longwall 6 and also relocation ofLongwall equipment from Longwall 5 to Longwall 6. Again the consolidated entity is expecting to avoid unnecessarydelays that were experienced in past due to liquidity issue.

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Cash injection of $110 million plus cash advances facility of up to $50 millionJindal Steel and Power (Mauritius) Pty Ltd ('JSPL') has injected over $110 million in to the company over the pastthree months. As the company’s largest shareholder pursuant to a placement deal whereby the company issued328,500,000 fully paid ordinary shares and 328,500,000 options to JSPL on 11 November 2013 (these options wereexercised and converted into fully paid ordinary shares by JSPL on 15 November 2013), JSPL increased its equitystake to 53.63% (majority control). Since then, JSPL has further invested around $58 million by participating in theaccelerated rights issue launched by the company on 25 November 2013 further increasing its stake to 65.84% on 2December 2013. In addition to such equity inflows, JSPL has provided a credit facility of up to $50 million whereby thecompany can borrow up to $50 million for a period of two months on an as needed basis so as to allow it to meet itsobligations to its creditors, etc. as well as finance its working capital needs. As per the credit facility agreement, thecompany drew down $14 million which it repaid from funds raised (around $58 million) from the accelerated rightsissue that was subscribed by JSPL. i.e. entire $50 million is currently available for the company to draw if needed.

Creditors – settlements, payment plans and better terms going forwardThe consolidated entity has negotiated with most of its creditors for better liquidity management along the followinglines:• Receiving discount on past balances incurred prior to 28 October 2013;• Agreeing to repay outstanding amounts in tranches over periods ranging between 6 months to 24 months;• Negotiating better prices for future services and products; and• Negotiating better and longer credit terms.

This has provided major relief to the consolidated entity in terms of its liquidity needs while ensuring that theconsolidated entity works with its creditors’ community in an amicable manner. This includes working withGovernment agencies one of which had garnishee orders on the consolidated entity as well as some of its directors.There are currently no garnishee orders on the consolidated entity.

Rescheduling of bank debtsThe consolidated entity has successfully negotiated with its bankers for rescheduling its bank loans to a longer period.This arrangement has mitigated consolidated entity’s current liquidity risk. Refer to note 10 Events after the reportingperiod for further information.

Liquidity generation – Ongoing business and productionSince JSPL taking over the consolidated entity on 28 October 2013, operating metrics of production and developmenthave been significantly improved. Production levels including longwall mining and development work have beenbrought to normal level.

Cost control and productivity improvementA Voluntary Redundancy Scheme ('VRS') with an aim to rationalise manpower was announced on 12 December 2013with an aim to achieve aound 20% reduction across the entire workforce without affecting the proposed productionplans and development activities. A VRS, which is now in progress, consists of formal procedures includingconsultation with and presentation to union representatives and employees.

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Employees interested in VRS need to provide their Expression of Interest ('EOI') by 24 December 2013. Responsereceived from those interested employees shall be then scrutinised and finalised by 10 January 2014.

A committee of technical experts has been formed to improve the productivity by benchmarking the industryparameters and looking at process improvements.

The consolidated entity believes that with all measures put in place recently including injection of cash liquidity,reduction of cost, introduction of operational efficiency and negotiations/relegations with suppliers etc., theconsolidated entity would be able to put its liquidity troubles behind it and move to the more productive aspect ofrunning a profitable business. Management are pleased at the progress made over the period of last few weeks andbelieve that the consolidated entity will become healthy and strong going forward.

From above, the directors consider that the consolidated entity to be a going concern and able to meet its debts andobligations as they fall due.

Notwithstanding the above, if one or more of the planned measures do not eventuate or are not resolved in theconsolidated entity’s favour, then in the opinion of the directors, there will be significant uncertainty regarding theability of the consolidated entity to continue as a going concern and pay its debts and obligations as and when theybecome due and payable.

If the consolidated entity is unable to continue as a going concern, it may be required to realise its assets andextinguish its liabilities other than in the normal course of business at amounts different from those states in thefinancial statements.

No adjustments have been made to the financial statements relating to the recoverability and classification of therecorded asset amounts or the amounts and classification of liabilities that might be necessary should theconsolidated entity not continue as a going concern.

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Note 2. Restatement of comparatives

The consolidated entity obtained an independent valuation for its mining assets and mining licenses (Assets) todetermine their carrying value for the year ended 31 March 2013. The initial valuation range (low, medium and high)for the Assets was considered and the consolidated entity used the value which was on the higher side of the rangewhen issuing the 31 March 2013 financial statements. The consolidated entity’s auditor raised certain concerns inrelation to valuation used by the consolidated entity as well as on some of the assumptions on which the valuationwas based upon. Noting the auditor's concerns and to ensure the adequacy of carrying value of its assets, theconsolidated entity obtained a revised valuation and accepted to use more conservative value. Consequently inaccordance with AASB136 'Impairment of Assets', the consolidated entity has taken a carrying value $726 million forits Assets. i.e. The consolidated entity impaired its mining Assets by additional $273,846,000 compared to impairmentreported on 31 March 2013.

The revised report, which suggested $726 million as a preferred value for the consolidated entity’s Assets, was basedon several assumptions including but not limited to:

• Discounting rate of 9.5% (based on WACC);• Long-term coking coal prices of $197;• Long-term exchange rate of US $1.00: Aus $0.85;• Life of each mine over 25 years; and• Permitted rate of extraction of up to 3.2 Mpta for both the mines, in accordance with the current mining plans.

Deferred tax assets and deferred tax liabilities have also been netted in accordance with AASB 112 ‘Income Taxes’.The deferred tax balance increased as a result of management finalising and updating the tax workings.

The impact of the above adjustments had no effect on the statement of financial position at the beginning of theimmediately preceding period (1 April 2012) nor on the statement of profit or loss and other comprehensive incomefor the half-year to 30 September 2012.

The effect on the statement of financial position at the end of the immediately preceding period (31 March 2013) wereas follows:

Increase Capital WIP (PPE) $3,593,000Amortisation of mine assets $2,541,000 Impairment of mine assets $127,338,000Impairment of Avondale lease $146,508,000Additional accruals and creditors $5,270,000Increase in deferred tax asset $13,277,000

Following the issuance of the 31 March 2013 financial statements, the new management have reassessed thecarrying value of its assets and liabilities and made the following adjustments:

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31/03/2013 31/03/2013$'000 $'000 $'000

Reported Adjustment Restated

2,913 - 2,913 59,618 - 59,618 17,347 - 17,347 79,878 - 79,878

5,062 - 5,062 999,467 (272,794) 726,673 32,193 13,277 45,470

360 - 360 366 - 366

1,037,448 (259,517) 777,931

1,117,326 (259,517) 857,809

110,188 5,270 115,458 312,999 - 312,999 48,821 - 48,821 1,067 - 1,067

14,801 - 14,801 487,876 5,270 493,146

15,786 - 15,786 10,444 - 10,444 15,526 - 15,526

284 - 284 42,040 - 42,040

529,916 5,270 535,186

587,410 (264,787) 322,623

639,634 - 639,634 20,871 - 20,871

(73,095) (264,787) (337,882)587,410 (264,787) 322,623

587,410 (264,787) 322,623

Consolidated

Statement of financial position at the end of the earliest comparative period

Equity attributable to the owners of Gujarat NRE Coking Coal Limited

Total equity

Trade and other payables

Loan from related party

Borrowings

Current assets

Total current assets

Note 2. Restatement of comparatives (continued)

Issued capital

Total non-current liabilities

Total assets

Current liabilities

Bonds

Available-for-sale financial assets

Total liabilities

Accumulated losses

Non-current liabilities

Trade and other receivables

Property, plant and equipment

Total current liabilities

Deferred tax

Liabilities

Net assets

Equity

Non-current assets

Cash and cash equivalents

Reserves

Provisions

Deposits

Inventories

Assets

Exploration and licenses

Borrowings

Total non-current assets

Derivative financial instruments

Restoration guarantee

Working capital facilities from banks

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unallocated Total$'000 $'000 $'000 $'000 $'000 $'000

- - - - (20,968) (20,968)(10,285)(9,808)

(19,620)(40,512)

(6,408)

(107,601)33,485

(74,116)

Adjusted EBITDA

Note 3. Operating segments

Previous Management Committee was comprised of Chairman, Chief Financial Officer (of Gujarat NRE CokeLimited) and a non-executive director of Gujarat NRE Coke Limited. The current Management Committee comprisesof Chairman, Chief Commercial Officer, Operations Manager, HR Representative, Head Project and OperationalMonitoring, Group Environmental Approvals Manager.

The CODM reviews adjusted EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation plus share-based payments and unrealised exchange loss) to make decisions. The accounting policies adopted for internalreporting to the CODM are consistent with those adopted in the financial statements.

The following table summarises key reconciling items between adjusted EBITDA and statutory profit after taxattributable to the shareholders of Gujarat NRE Coking Coal Limited.

Loss on disposal of investments

Depreciation and amortisation

Operating segment information

Income tax benefit

Unrealised exchange loss

Amortisation (including unwinding of restoration and borrowing cost)

eliminations/

Loss after income tax benefit

Intersegment

Consolidated - 30/09/2013

Loss before income tax benefit

Finance costs

Identification of reportable operating segmentsThe consolidated entity operates in one segment being the mining, preparation and export of coal. This is based onthe internal reports that are reviewed and used by the Management Committee (who are identified as the ChiefOperating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources.There is no aggregation of operating segments.

The consolidated entity operates predominately in one geographical region being Australia.

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unallocated Total$'000 $'000 $'000 $'000 $'000 $'000

- - - - 40,678 40,678 (6,800)(1,894)(8,547)

(22,838)1,628

51

2,278 (715)

1,563

30/09/2013 30/09/2012$'000 $'000

40,233 120,018 - 662

- - 40,233 120,680

15 82 8 7

88 82 - - 111 171

- - 40,344 120,851

30/09/2013 30/09/2012$'000 $'000

275 826

Freight revenue from chartering

Revenue

Export sales

Other revenue

Income tax expense

Intersegment

Profit before income tax expense

eliminations/

Amortisation (including unwinding of restoration and borrowing cost)

Consolidated - 30/09/2012

Depreciation and amortisation

Note 3. Operating segments (continued)

Interest

Consolidated

Foreign exchange gain

Unrealised exchange gainShare-base payments

Profit after income tax expense

Note 4. Revenue

Sales revenue

Other revenue

Consolidated

Rent

Impairment of assets

Adjusted EBITDA

Finance costs

Note 5. Other income

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30/09/2013 31/03/2013$'000 $'000

31,584 31,590 3,202 3,684

21,480 19,163 13,299 3,748 3,541 1,093

3 10 88 330

- - 73,197 59,618

30/09/2013 31/03/2013$'000 $'000

67,839 60,921 26,610 25,253 74,825 29,284

- - 169,274 115,458

Loans related party

Employee loan / Share application moneyPrepayment

Bills discounted against receivable from major buyer

FBT receivable

Trade receivables

Trade payables

Note 7. Current liabilities - trade and other payables

Consolidated

Trade and other receivables above includes $63,036,000 from Gujarat NRE Coke Limited and associates.

Consolidated

Other receivables

Note 6. Current assets - trade and other receivables

Accruals and othersOther payables

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• A bank guarantee of $440,222 has been provided to Commonwealth Bank of Australia to Port Kembla CoalTerminal ('PKCT') in respect of site rectification levy by way of the Rectification charge incorporated in the financialyear 2014.

Note 9. Contingent liabilities

The consolidated entity has given bank guarantees as at 30 September 2013 as follows;

• A bank guarantee of $600,000 has been provided to The Sydney Catchment Authority to cover possible mininginduced damage to Sydney Catchment Authority infrastructure.

• A bank guarantee has been provided to the Department of Primary Industries in respect of the restoration liability forNRE No. 1 Colliery for $5,657,000. The restoration liability for this has been accounted at its present value in theconsolidated entity’s financial statements.

• The consolidated entity has provided $40,010,000 as a bank guarantee to the Department of Primary Industries.The amount is for rehabilitation of the new NRE Wongawilli mine (previously known as Eloura mine) purchased fromBHP Billiton by the subsidiary Gujarat NRE Wonga Pty Ltd. This site rehabilitation guarantee is large due to the largearea of land of the mine site. This estimated rehabilitation will be reviewed by the consolidated entity within two yearsand may result in a decrease in the said liability. The restoration liability has been accounted at its present value in theconsolidated entity’s financial statements.

Note 8. Equity - dividends

(b) Gujarat NRE Group holding is less than 700,000,000 sharesIf the Gujarat NRE Group holds less than 700,000,000 shares, subject to the rights of any preference shareholdersand to the rights of the holders of any shares created or raised under any special arrangement as to dividend, thedirectors may from time to time declare a dividend to be paid to the shareholders entitled to the dividend which shallbe payable on all shares according to the proportion that the amount paid (not credited) is of the total amounts paidand payable (excluding amounts credited) in respect of such shares.

The directors may from time to time pay to the shareholders any interim dividends as they may determine. Nodividend shall carry interest as against the company. The directors may set aside out of the profits of the companyany amounts that they may determine as reserves, to be applied at the discretion of the directors, for any purpose forwhich the profits of the company may be properly applied.

There were no dividends paid, recommended or declared during the current or previous financial half year.On 27 October 2013, the Board approved certain financial and corporate measures regarding, amongst other things,the company's dividend policy. The updated dividend policy depends on whether or not the consolidated entity holdsat least 700,000,000 shares.

(a) Gujarat NRE Group holding is at least 700,000,000 sharesSo long as the Gujarat NRE Group holds at least 700,000,000 shares, the dividend policy of the company shall be asfollows:

(i) the company shall not declare any dividends if total outside liabilities are greater than 3.0 times of EBITDA ofthat year or if the company has to fund investments and capital expenditure on its existing assets, mining areas andexploration areas. Otherwise dividends will be paid in accordance with clause (ii) below;

(ii) subject to clause (i) above, the company will declare a dividend each financial year equivalent to at least 50% ofits profits after taxes statutory appropriations, provided it conforms with all relevant laws and regulations relating to thepayment of dividends including, without limitation the obligations imposed on the company under section 254T of theCorporations Act 2001.

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Gujarat NRE Minerals Limited ats Great Investments Limited – Federal Court Case NSD 405/2013

The dispute involves an application by Great Investments Limited for orders that the consolidated entity redeemcertain convertible bonds registered in its name (“Great Investments Bonds”). Great Investments Limited also seeksorders that the consolidated entity convert the Great Investment Bonds or alternatively damages or equitablecompensation.

The proceedings have been adjourned at large pending finalisation of the Federal Court proceedings NSD1063/2013(“the related proceedings”).

Yet to be quantified but estimated at a claim of $1,372,785.

Following matters earlier reported in financial statements for year ended on 31 March 2013 have been successfullyresolved and/or negotiated and actual liabilities been recognised in the books of the consolidated entity.

1. Gujarat NRE Wonga Pty Limited ats Grindley Properties Pty Limited – Supreme Court Case 2012/386603;2. Gujarat NRE Wonga Pty Limited v RUS Mining Services Pty Limited – Supreme Court Case 129908 of 2013;3. Gujarat NRE Coking Coal Limited v RUS Mining Services Pty Limited – Supreme Court Case 129853 of 2013;4. Gujarat NRE Wonga Pty Limited v Ellton Mine Services Pty Limited – Supreme Court Case 396358/2012;5. Gujarat NRE Coking Coal Limited v Ellton Mine Services Pty Limited – Supreme Court Case 396379/2012;6. Gujarat NRE Coking Coal Limited v Ellton Conveyors Pty Limited – Supreme Court Case 31877/2013; and7. Farrell Mining Pty Limited v Gujarat NRE Coking Coal Limited – Local Court Case 2013/137851.

Note 9. Contingent liabilities (continued)

Gujarat NRE Minerals Limited ats Warner & Kugel (as Liquidators of Bellpac Pty Limited) & Bellpac Pty Limited –Federal Court Case NSD 1063/2012 (“All Bonds”)

During 2008, the consolidated entity settled Bellpac’s claims in relation to the Remediation Obligation and the RoyaltyObligations by way of a Deed dated 23 July 2008 (“Settlement” or “Deed”). Pursuant to this Deed, the companyissued 200 Convertible Bonds aggregating to $10 million in Bellpac’s favour. Since then Bellpac Pty Ltd has appointedReceivers and Managers and there is a dispute as to the real ownership of the Bonds. The dispute involves theapplication by the Liquidators against all of the third party registered bondholders for a correction of the Register intoBellpac’s name (the total value of the bonds is AUD$10 million – “Bonds”).

The Liquidators claim that title to all transferred Bonds has not properly passed. The Liquidators also claim, inter alia,that the transactions related to the transfer sought were void and/or voidable against them.

The first and second defendants’ appeal of the final orders made in Federal Court proceedings NSD34/2010 hasbeen dismissed.

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UIL has substituted the original proceedings that were commenced by RUS against the consolidated entity and LendLease has commenced separate wind-up proceedings against the consolidated entity, which was listed for hearing on18 December 2013.

The consolidated entity is under a belief that it has in-principal reached an agreement with Lend Lease andaccordingly Lend Lease has applied for and the Court has adjourned the proceedings commenced by them till 20December 2013. As on the date of this report the consolidated entity has entered into a formal agreement and LendLease has agreed to withdraw these proceedings. The Court has approved UIL’s application to substitute the original proceedings that were commenced by RUS andthe matter is now listed for further hearing on 3 February 2014. No other party has notified their interest in any ofthese proceedings. The consolidated entity will continue trying to resolve the matter with UIL.

The consolidated entity has faced severe cash constraints during the financial half-year resulting in delay and non-payment to its creditors, employees, government and banks. Consequently, the consolidated entity has been servedwith number of legal notices, proceedings, statement of claims, statutory demands and winding up proceedings.

Winding up proceedingsWinding up proceedings in the Supreme Court of New South Wales have been commenced against the consolidatedentity by a creditor, RUS Mining Services Pty Ltd (‘RUS’) for the amount of $4,247,000. Notwithstanding that RUS hasnow applied to the Court to be granted leave and withdrawn these proceedings, the New South Wales Office of StateRevenue and UIL (Singapore) Pte Ltd (‘UIL’) have lodged Notices of Appearance with the Court and indicated theirintention to appear and support the application. The consolidated entity has now come to an “in-principal” agreementwith the Office of State Revenue who has agreed to remove their application regarding appearing and supporting thewinding-up application against the consolidated entity pending execution of a formal agreement. The consolidatedentity is confident that a similar outcome will be achieved with RUS.

Statutory demandsThe consolidated entity has been served with number of statutory demands with most of them been paid and/orresolved. However, there are 3-4 statutory demands which have expired (i.e. 21 days period for responding haspassed) and the consolidated entity is currently negotiating with the relevant parties to have these statutory demandswithdrawn. The consolidated entity believes that none of those parties will take any further action against theconsolidated entity as long as those arrangements and payment plans are met.

Legal proceedingsThe consolidated entity is currently the subject of various claims and demands from various creditors seekingpayment of amounts claimed to be outstanding from the consolidated entity. These claims range from letters ofdemand, statutory demands and formal court proceedings. The directors are in the process of actively dealing withand managing these matters.

Coal sector jobs fundingThe Commonwealth recently withdrew funding under the Coal Sector Jobs Package due to applications to windup theconsolidated entity. On the basis that discussions and action has been undertaken with the aim of having the windupnotice withdrawn, the consolidated entity is investigating all possible options for gaining ongoing funding as part of theGovernment’s Coal Sector Jobs Package, with the long term aim of using this to offset current carbon tax liabilities.

Note 10. Events after the reporting period

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Facility agreement (cash advances) and rights issue To assist the consolidated entity with its immediate and critical funding requirements, the new majority shareholderJSPL agreed and provided the consolidated entity with an advance facility to borrow up to $50 million at an interestrate of 15% per annum for a period two months. The consolidated entity was provided with $14 million under thefacility, which is proposed to be repaid from the funds raised from the rights issue. The company proposed andlaunched institutional and retail rights issue offer to issue 2 new shares for every 3 shares held at the record date at aprice of $0.08 per share to raise up to $108 million. The institutional component for $58 million offered to JSPL on 25November 2013 was successfully closed on 27 November 2013 and 726,875,915 fully paid ordinary shares wereissued to JSPL on 2 December 2013. The Prospectus has been lodged with the Australian Securities Exchange(‘ASX’) on 28 November 2013 for the retail component of the issue. As on the date of this report, the issue isscheduled to close on 10 January 2014.

Note 10. Events after the reporting period (continued)

Change in controlling shareholderOn 11 November 2013, pursuant to placement deal with Jindal Steel & Power (Mauritius) Limited (‘JSPL’) and uponreceipt of remaining funds $24 million (including an off-set of US $15 million) of the $66 million ($42 million wasreceived pre-30 September and recorded as a current liability), the company issued 328,500,000 fully paid ordinaryshares and 328,500,000 options to JSPL. On 15 November 2013 the options were exercised, increasing JSPLshareholding to 53.63% (majority control). Mr Singh was also nominated and appointed as the Chairman and ChiefExecutive Officer of the company. Since then, JSPL has further invested around $58 million by participating in theaccelerated rights issue launched by the company on 25 November 2013 and increasing their stake to 65.84% on 2December 2013.

Creditors – settlements, payment plans and better terms going forwardThe consolidated entity has negotiated with most of its creditors for better liquidity management along the followinglines:• Receiving discount on past balances incurred prior to 28 October 2013;• Agreeing to repay outstanding amounts in tranches over the period ranging between 6 months to 24 months;• Negotiating better prices for future services and products; and• Negotiating better and longer credit terms

This has provided major relief to the consolidated entity in terms of its liquidity needs while ensuring that theconsolidated entity works with its creditors’ community in an amicable manner. This includes working withGovernment agencies one of which had garnishee orders on the consolidated entity as well as some of its directors.There are currently no garnishee orders on the consolidated entity.

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No other matter or circumstance has arisen since 30 September 2013 that has significantly affected, or maysignificantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity'sstate of affairs in future financial years.

Receipt of outstanding amounts owing to the consolidated entityThe consolidated entity is owed in excess of $63 million from Gujarat NRE Coke Limited and/or associates primarilyfor sale of coal by the consolidated entity to Gujarat NRE Coke Limited. The inability of the consolidated entity torecover these funds could have a significant impact on the financial position of the consolidated entity. As at the dateof this report, the consolidated entity is exploring all possible options to recover these outstanding amounts at theearliest time possible.

The consolidated entity has received various claims on or around 20 August 2013 totaling to approximately US$37million for the quality claims in respect of the shipments made by the consolidated entity and its subsidiary under theoff-take contracts during the period between 2010 and 2011 and claims totaling to approximately AUD$5 million andUS$12 million as fees charged for corporate guarantee provided by Gujarat NRE Coke Limited since 2006. In theboard meeting on 27 October 2013 the Board of director have rejected those claims totaling to US$37 million and alsorejected claims for corporate guarantee fees for approximately AUD$4.26 million and US$7.72million.

Fresh loan facilities and rescheduling of bank debts

Term loan facility of US $140 millionWe are pleased to advise that the consortium of existing banks have sanctioned and availed the consolidated entitywith a fresh facility of around US $106.5 million (with an option to increase to US $140 million) (“Facility”) towards thecapital expenditures previously incurred. This facility will enable the consolidated entity to ensure time paymentsand/or prepayments of installments on other facilities that are falling due over the period of next 18 to 24 months.

Extended current termsThe Bank of Baroda has sanctioned (and currently working on documentation and execution) to extend current twoyear tenure of repayment of existing US $25 million loan to five years. Ad-hoc Facility and extending the period offacilities with State Bank of India State Bank of India (‘SBI”) has recently availed with an Ad-hoc Facility of Aus $16.5million for a short term to assist with the consolidated entity’s immediate funding requirements. SBI is also reviewingand working on possible extending of tenure of various facilities for around US $33 million availed to the consolidatedentity.

Note 10. Events after the reporting period (continued)

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30/09/2013 30/09/2012$'000 $'000

(74,116) 1,563

Number Number

1,376,138,678 1,038,027,968

- 1,260,000

1,376,138,678 1,039,287,968

Cents Cents

(5.386) 0.151 (5.386) 0.150 Diluted earnings per share

22,638,000 (2012: 25,768,000) options were omitted from the above calculations, as they were anti-dilutive.

Profit/(loss) after income tax attributable to the owners of Gujarat NRE Coking Coal Limited

Consolidated

Dilutive options over ordinary sharesAdjustments for calculation of diluted earnings per share:

Weighted average number of ordinary shares used in calculating diluted earnings per share

Weighted average number of ordinary shares used in calculating basic earnings per share

Note 11. Earnings per share

Basic earnings per share

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Directors' declaration


there are reasonable grounds to believe that the company will be able to pay its debts as and when they

become due and payable.

In the directors' opinion:

the attached financial statements and notes thereto comply with the Corporations Act 2001, Australian

Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other

mandatory professional reporting requirements;

the attached financial statements and notes thereto give a true and fair view of the consolidated entity's

financial position as at 30 September 2013 and of its performance for the financial half-year ended on that

date; and

Corrimal, NSW

20 December 2013

Jasbir Singh

Chairman

________________________________

Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the directors

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Grant Thornton Audit Pty Ltd ACN 130 913 594 Level 19, 2 Market Street Sydney NSW 2000 Correspondence to: Locked Bag Q800 QVB Post Office Sydney NSW 1230 T +61 2 8297 2400 F +61 2 9299 4445 E [email protected] W www.grantthornton.com.au

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant

Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered

by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context

only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton

Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation. Liability is limited in those States where a current scheme applies.

Independent Auditor’s Review Report

To the Members of Gujarat NRE Coking Coal Limited

We have reviewed the accompanying half-year financial report of Gujarat NRE Coking Coal

Limited (“Company”), which comprises the consolidated financial statements being the

statement of financial position as at 30 September 2013, and the statement of profit or loss

and other comprehensive income, statement of changes in equity and statement of cash

flows for the half-year ended on that date, notes comprising a statement or description of

accounting policies, other explanatory information and the directors’ declaration of the

consolidated entity, comprising both the Company and the entities it controlled at the half-

year’s end or from time to time during the half-year.

Directors’ responsibility for the half-year financial report

The directors of Gujarat NRE Coking Coal Limited are responsible for the preparation of

the half-year financial report that gives a true and fair view in accordance with Australian

Accounting Standards and the Corporations Act 2001 and for such controls as the directors

determine is necessary to enable the preparation of the half-year financial report that is free

from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express a conclusion on the consolidated half-year financial report

based on our review. We conducted our review in accordance with the Auditing Standard

on Review Engagements ASRE 2410 Review of a Financial Report Performed by the

Independent Auditor of the Entity, in order to state whether, on the basis of the procedures

described, we have become aware of any matter that makes us believe that the half-year

financial report is not in accordance with the Corporations Act 2001 including: giving a true

and fair view of the Gujarat NRE Coking Coal Limited consolidated entity’s financial

position as at 30 September 2013 and its performance for the half-year ended on that date;

and complying with Accounting Standard AASB 134 Interim Financial Reporting and the

Corporations Regulations 2001. As the auditor of Gujarat NRE Coking Coal Limited,

ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of

the annual financial report.

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A review of a half-year financial report consists of making enquiries, primarily of persons

responsible for financial and accounting matters, and applying analytical and other review

procedures. A review is substantially less in scope than an audit conducted in accordance

with Australian Auditing Standards and consequently does not enable us to obtain assurance

that we would become aware of all significant matters that might be identified in an audit.

Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we complied with the independence requirements of the

Corporations Act 2001.

Basis for qualified conclusion

i Trade and Other Receivables - included in Trade and Other Receivables are amounts

of $63,036,000 (31 March 2013: $50,989,000) due from the consolidated entity’s

former ultimate parent company and associated entities. No allowance for doubtful

debts has been made in respect of these amounts as at reporting date as the directors

believe the amounts to be fully recoverable. There is insufficient evidence to support

the carrying value as required under AASB 139: Financial Instruments: Recognition

and Measurement, and consequently we believe that the amount should be impaired

in full.

ii Deferred Tax Assets - included in non-current assets are net Deferred Tax Assets of

$78,910,000 (31 March 2013: $45,470,000). In accordance with AASB 112: Income

Taxes, the recognition of deferred tax assets when an entity has incurred tax losses

requires convincing other evidence that sufficient taxable profit will be available

against which the unutilised tax losses can be utilised by the consolidated entity. The

directors have not provided sufficient appropriate evidence of the consolidated

entity’s ability to recover these losses, and consequently we believe the amount

should not be recognised and impaired in full.

Qualified conclusion

Based on our review, which is not an audit, with the exception of the matters described in

the preceding paragraph, we have not become aware of any matter that makes us believe

that the half-year financial report of Gujarat NRE Coking Coal Limited is not in accordance

with the Corporations Act 2001, including:

a giving a true and fair view of the consolidated entity’s financial position as at 30

September 2013 and of its performance for the half-year ended on that date; and

b complying with Accounting Standard AASB 134 Interim Financial Reporting and

Corporations Regulations 2001.

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Emphasis of matter regarding going concern

Without qualifying our conclusion, we draw attention to Note 1 in the financial report

which indicates that the consolidated entity incurred a net loss of $74,116,000, and has net

current liabilities of $465,333,000 at 30 September 2013, which includes current bank

borrowings of $329,228,000. These conditions, along with other matters as set forth in Note

1, indicate the existence of a material uncertainty which may cast significant doubt about the

consolidated entity’s ability to continue as a going concern and therefore, the consolidated

entity may be unable to realise its assets and discharge its liabilities in the normal course of

business, and at the amounts stated in the financial report.

Other Matter: Corresponding financial information as at 31 March 2013

As part of our review of the financial report for the 6 month period ended 30 September

2013, we also audited the adjustments described in Note 2 of the financial report that were

applied to amend the 31 March 2013 financial report issued on 15 August 2013. In our

opinion, except for the matters described in the qualification paragraph above regarding

Trade and Other Receivables and Deferred Tax Assets, such adjustments are appropriate

and have been properly applied. We were not engaged to audit, review or apply any

procedures to the 31 March 2013 financial report of the consolidated entity other than the

adjustments, and accordingly, we do not express an opinion or any other form of assurance

on the 31 March 2013 financial report, issued on 15 August 2013, taken as a whole.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

I S Kemp

Partner - Audit & Assurance

Sydney, 20 December 2013

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APPENDIX 4D HALF-YEAR REPORT For personal use onlyState Bank of India Export Import Bank of India...

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Transcript of APPENDIX 4D HALF-YEAR REPORT For personal use onlyState Bank of India Export Import Bank of India...