BHUSHAN POWER AND STEEL LTD.Bhushan Power & Steel Limited, a fully integrated 2.3 Million TPA Steel making Company with turnover of INR 4217 Crores (USD 937 Million) and 7 World Class ISO 9000 Certified State of the Art Plants at Chandigarh, Derabassi, Kolkata and Orissa in India.

A leading manufacturer of flat, rounds and long products including value added products with total steel value chain right from Coal Mining, Billets, HR Coils, Pig Iron, CR Coils, GP/GC, Precision Tubes, Black Pipe/GI Pipe, Cable Tapes, Tor Steel, Wire Rod and Special Alloy Steel.

HISTORY

1970 - Started with very small initial outlay for manufacturing Door Hinges & later on, Rail Track Fasteners.

1973 - Manufacturing facilities set up for Tor Steel and Wire Rod in Chandigarh.

1981 - Rolling Mill Project commissioned at Chandigarh for Round and Narrow Strips.

1985 - Backward Integration Project for Steel Melting facilities.

1986 - Upgrading of Mini Steel Plant with continuous casting and ladle furnace facilities. 1997 - Commissioning of Narrow Width Cold Rolling Project at Chandigarh.

1998 - Commissioning of Precision Pipe Project at Chandigarh.

2001 - Commissioning of Cold Rolling & Galvanizing Complex at Kolkata.

2002 - Addition of narrow width Cold Rolling facilities at Kolkata.

2003 - Expansion of wide width Cold Rolling facilities, ERW Water Pipes & Tubes down stream facilities at Kolkata.

2004 - Further expansion of Cold Rolling facilities at Kolkata.

2005 - Commissioning of Orissa Project consisting of 4 DRI Kilns, Steel Making Facilities, Coal Washery and 100 MW Power Plant.

2007 - Commissioning of further expansion of Orissa Project consisting of HR Coil Mill, Steel making, Blast Furnance, Sinter plant, Coke oven plant, Oxygen plant and Lime & Calcining Plant.

2009 - Commissioning of 3.5 million tpa Coal Washery, 146 MW Power Plant and 0.3 million tpa Sponge Iron under Phase III of Orissa Project.

2010 - Commissioning of 130 MW Power Plant and Electric Arc Furnace under Phase III of Orissa Project and further expansion of Orissa Project under Phase IV consisting of 6 DRI Kilns, 130 MW Power Plant, Steel Making Facilities, 6th strand, 2nd CSP Caster & Tunnel Furnace, Oxygen Plant, Lime Calcining with downstream facilities - Cold Rolling, Galvanizing, Galvalume, Colour Coating, Precision Tube & Black Pipe/GI Pipe.

BOARD OF DIRECTORS

Sh. Sanjay Singal Chairman & Managing Director

Ms Aarti SingalVice Chairperson & Whole Time Director (Admin)

Sh. R.P. Goyal Whole Time Director (Commercial)

Sh. H.C. Verma Whole Time Director (Marketing)

Sh. R.N. YadavWhole Time Director (Technical) 

Sh. Ashwini Kumar SharmaNominee Director - IDBI

Sh. R.D. BatraDirector

Sh. Dinesh Kumar Behal Director

Sh. Jimmy MahtaniDirector

Sh. Anil S. SupanekarDirector

Major Customers in India: Hero Honda, Honda Scooters, Yamaha Motorcycles, JBM, Bajaj Autos, Polar Industries, GE Motors, Amtek, Arihant Ind., Hindustan Motor, GNA group, Hero Cycles, Avon Cycles, Atlas Cycles, Delton Cables, Finolex Cables, Sterlite, Paramount Cables, TVS, Suzuki, Omax Auto, Maruti Udyog Ltd. etc.

Bhushan's products are being exported to China, Singapore, Malaysia, Hong Kong, Indonesia, Philippines, Dubai, Oman, Saudi Arabia, South Africa, Thailand, Korea, Myanmar, Sri Lanka, Nepal, Bangladesh, Vietnam, USA, nepal, England, Belgium, Turkey, Angola, and a host of African countries.

Manufacturing Units

Industrial AreaChandigarh, Plot No 03: MS Tor Steel, MS Wire Rods, MS Wire

Industrial AreaChandigarh, Plot No 71: Alloy & Non Alloy Steel Billets, Steel Rolled Products

Industrial AreaChandigarh, Plot No 83: Precision Steel Tube

Industrial AreaChandigarh, Plot No 141 – 142: Narrow Cold Rolled Steel Strips in coils and cut length

Derabassi, Punjab Hot Rolled Products, MS Steel Tubes, Galvanized Steel Tubes, Black / Galvanised Pipe, Cable Tapes

Bangihatti Dist. HooghlyWest Bengal: Wider Cold Rolled Strips in coils and cut length, Narrow Cold rolled strips in coils and cut length, Galvanized Sheets in coils and cut Length, Galvanized corrugated sheets, Precision Tubes, Black Pipes, Cable Tape

NH-2, Bangihatti, Mallickpara (Hoogly) Serampore- Kolkata (West Bengal)

Thelkoloi, Orissa: HR Coil, Sponge Iron, Metallurgical Coke, Pig Iron, Billet, Power Generation

ORISSA POWER AND STEEL PROJECT

Highlights

The Company has successfully implemented 2.3 million tpa Integrated Steel and Power Plant in Orrisa comprising 8 DRI Kilns of 500 TPD, 376 MW Power Plant, Coal Washery, CSP Plant, Blast Furnace, Coke Oven Plant, Sinter Plant, Oxygen Plant, Steel Making and Lime & Dolomite Plant.

The integrated power and steel project at Orissa is a landmark in the nation’s infrastructure development.

It combines our deep expertise with the best technology that the world offers to integrate the entire steel manufacturing process – from mining to the production of value-added products. It also generates captive power using gases from the process.

Features• Proposed facilities in close proximity of two bulk inputs i.e. iron ore and coal to minimize input freight

• Already been allotted three adjoining non-coking coal blocks at nearby Jamkhani, Bijhan in Orissa,and Patal East in Jharkhand and has got one coking coal block at Rohne in Jharkhand, providing added logistic advantage in mining. Iron ore mines at Chatupura, Jharkhand has been alloted.

• Captive and inexpensive power generation using hot gases from sponge iron kilns and unusable coal

• Operating synergy enhanced by captive coal washery that processes locally available coal to ensure uninterrupted supplies and lower costs

• Captive limestone reduces cost further.

• Use of Iron Ore fines in making sinter, for use in blast furnace.

• With hot metal infusion into EAF, exothermic reaction gives quicker steel production and enhances capacity without additional capex.

• Captive coke oven plant to reduce import costs

• The power consumption for EAF Steel melting reduces from around 800 units/pmt to about 400 units, providing cost efficiency.

• Large reduction in consumption of expensive consumables like electrodes and refractories.

• With added capacities for both long and flat products, Bhushan Power & Steel will emerge as a completely integrated, wider range player with a long term competitive edge.

Key Technical Associates

SMS Siemag, Germany Supply of CSP Plant

Siemeg, GermanySupply of Electrical, Automation & Spare parts Design

Waldrich Siegen, GermanySupply of Roll Grinding Machine and Design and Training

Techint Tagliaferry, Italy Supply of Electric Arc Furnace, Ladle Furnace / Relevant Auxiliaries

Beijing Sino–Steel & Group Corporation (SSIT), China Industry Supply of Blast furnace plant, Blower for furnace, Sinter Plant & Coke Oven Plant

IMS Messsysteme, Germany Supply of Compact Gauging System for CSP

Techint Italimpianti, GermanySupply of Roller Hearth Tunnel Furnace

Qualical AG, SwitzerlandSupplu of Lime & Dolomite Plant

Air Liquid Engineering, FranceSupply of Oxygen Plant

Humbolt Wedag, GermanyCoal Washery

Lurgi Technology , GermanyThyssen Krupp, GermanyFerry Capital, FranceSponge Iron Kilns

Bolier- Isgec John Thompson, IndiaTurbine- Simens Finspong, GermanyPower Plant

Mecon Ltd, India Technical Consultant

FINANCIALSKey Financial Indicators

2006 2007 2008 2009 2010Gross Sales 2,419.00 3,018.00 3,873.00 4,782.00 4,217.00Export Sales 580.00 655.00 756.00 1,117.00 868.00

EBDITA 347.00 464.00 728.00 1,103.00 1,117.00Net Profit 170.00 201.00 325.00 326.00 256.00

Cash Profit After Tax 256.00 350.00 553.00 701.00 711.00Equity 111.00 136.00 136.00 136.00 136.00

Net Worth 780.00 1,406.00 2,142.00 2,876.00 3,735.00Gross Block 3,118.00 4,995.00 6,980.00 9,739.00 12,386.00

EBIDTA to Net Sales 15.92 17.08 20.93 25.20 27.87Debt Equity Ratio 2.08 1.91 2.21 2.29 2.34

Total Debt to Equity 2.82 2.81 2.71 2.75 2.76TOL/TNW 3.51 3.28 3.05 3.05 2.95

Current Ratio 1.36 1.36 1.34 1.33 1.33FACR 1.46 1.69 1.62 1.69 1.63DSCR 1.79 1.58 1.68 1.30 1.26

Interest Coverage 4.79 4.38 4.20 2.76 2.75EPS (Rs.) 16.00 16.00 24.00 24.00 19.00

Book Value (Rs.) 70.00 103.00 143.00 180.00 231.00

BALANCE SHEET AS AT 31ST MARCH 2010   (Rs in Lacs)

SCHEDULE 2010 2009SOURCES OF FUNDSShareholders’ FundsShare Capital 1 13,605.17 13,605.17Reserves and Surplus 2 2,04,611.14 1,79,130.26Advance For Share Capital 57,390.00 27,500.00

2,75,606.31 2,20,235.43Loan Funds 3Secured Loans 8,94,774.29 7,08,358.00Unsecured Loans 1,56,108.42 95,280.88  10,50,882.71 8,03,638.88Deferred Tax Liability (Net) 35,383.09 27,393.09

13,61,872.11 10,51,267.40APPLICATION OF FUNDSFixed Assets 4Gross Block 7,35,644.97 6,71,084.84Less: Depreciation 1,25,215.99 90,774.05Net Block 6,10,428.98 5,80,310.79Capital Work in Progress 5,02,987.44 3,02,787.81

11,13,416.42 8,83,098.60Investment 5 57,913.06 524.09Current Assets, Loans & AdvancesInventories 6 1,05,891.04 1,04,399.80Sundry Debtors 7 79,835.72 79,072.62Cash & Bank Balances 8 48,143.84 46,094.36Loans & Advances 9 71,191.21 52,387.99

3,05,061.81 2,81,954.77Less: Current Liabilities & ProvisionsCurrent Liabilities 10 1,13,056.59 1,13,230.42Provisions 11 1,462.59 1,079.64

1,14,519.18 1,14,310.06Net Current Assets 1,90,542.63 1,67,644.71

13,61,872.11 10,51,267.40Significant Accounting Policies 15Notes forming part of Accounts 16

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010   (Rs in Lacs)

  SCHEDULE 2010 2009

INCOMESale of Products 12 4,21,717.34 4,78,244.21Less: Excise Duty 20,864.75 40,718.27Net Sales 4,00,852.59 4,37,525.94Other Income 5,604.09 4,047.03

4,06,456.68 4,41,572.97EXPENDITUREManufacturing & Other Expenses 13 2,94,736.19 3,32,792.74Profit Before Interest, Depreciation and Tax 1,11,720.49 1,08,780.23Interest & Financial Charges 14 40,629.27 38,512.65Profit Before Depreciation & Tax 71,091.22 70,267.58Depreciation 37,526.15 30,022.34Profit Before Tax 33,565.07 40,245.24Less: Income Tax Expense :- Current Tax 5,750.00 4,600.00- Mat Adjustment 5,750.00 4,600.00

0.00 0.00- Deferred Tax 7,990.00 7,500.00

7,990.00 7,500.00- Fringe Benefit Tax — 110.00

7,990.00 7,610.00- Earlier years 0.60 6.17- Wealth Tax 14.00 8,004.60 13.00 7,629.17Profit After Tax 25,560.47 32,616.07Balance Brought Forward from Previous Year 53,343.61 42,057.13Profit Available for Appropriation 78,904.08 74,673.20APPROPRIATIONSGeneral Reserve 10,000.00 20,000.00Transferred to Debenture Redemption Reserve 13,750.00 1,250.00Proposed Dividend 68.03 68.03Dividend Tax 11.56 11.56Balance Carried to Balance Sheet 55,074.49 53,343.61

78,904.08 74,673.20Basic earning per share (Refer Note No.14) 18.79 23.97Diluted earning per share(Refer Note No.14) 17.62 22.59Nominal value of Equity Shares in (Rs) 10.00 10.00Significant Accounting Policies 15Notes forming part of Accounts 16