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MESCOSTEEL
Partnering Progress
Date:04th September, 2019
To, To,
The General Manager, The Listing Department
Listing Operation, Calcutta Stock Exchange
BSE Limited, P.J. Towers, 7, Lyons Range
Dalal Street, Mumbai - 400 001 Kolkata- 700001
Scrip Code: 5407 44
Sub.: Reeulation 34 (1) -Submission of Annual Report includine Notice of AGM for the
Financial fear 2018~19
Dear Sir,
With reference to the above captioned matter and pursuant to clause 34(1) of SEBI (Listing
Obligation and Disclosure Requirement) Regulations, 2015 we are submitting herewith with this
letter, soft copy of Annual Report 2018-19 containing Notice & Annual Accounts for the financial
year ended on 31st March 2019.
The said Annual Report is also available on the website of the Company i.e. www.mescosteel.com.
This is for your information and records.
Thanking you,
For Mideast Integrated Steels Limited
Director
DIN: 00812380
Encl:AA
MIDEAST INTEGRATED STEELS LIMITED

Corporate Identity No.· L74899DL1992PLC050216
Delhl Regd. Office: Mesco Towers, H·l, Zamrudpur Community Center,Kailash Colony, New Delhi 110 048, India. T: +9111 29241099, 40587083, 40587085
Bhubaneswar Office: Mesco Towers, 3915, Lewis Road, Kedar Gauri Square, Bhubaneswar·751 014, Odisha. T: 0674 · 2432755 / 59, 2433124 Fax: 0674 - 2432256
Mines Office: Mesco Steel, Panchwatl, Near Hero Two WheelersShowroom,Barbi I, Keonjhar - 758039, Orissa, Cell Phone: 9937087666
Plant: Kallnga Nagar Industrial Complex, Khurunti, Jajpur Road, P. 0 Danagadi -755026 Dist Jajpur Odisha. T: 0674-2432759 Fax: 06726-266041
Mumbai Office: 401, 4th Floor, Silver Pearl, Opp. China Gate Restaurants, Water Field Road. Sandra (W), Mumbai-400 050. T: 022 26413269 / 57, 022 26446173/ 72
Kolkata Office: Diamond Heritage, Room No.1412, 14th Floor, 16 Strand Road. Kolkata·700 001. T: 03366451214/1215 I 03366161937 Telefax: 033-2231 3523
W: www.mescosteel.com
Annual Report
2018-19

26ththAnnual
25 Annual Report
Report
2018-2019
2017-2018

NEW DELHI
CONTENTS
S. No. Topics Page No.
1. Corporate information 3
2. Notice 4
3. Directors’ Report 16
4. Management Discussion and Analysis Report 34
5. Corporate Governance Report 36
6. Standalone Auditors’ Report 48
7. Standalone financial statements 54
8. Consolidated Auditors Report 76
9. Consolidated Financial Statements 81
2
Annual Report 2018-2019
CORPORATE INFORMATION
Board of Directors
Chairperson cum Managing Director: Independent Directors:

Mrs. Rita Singh (DIN 00082263)
1) Mr. Sanjiv Batra (DIN:00602669)
Jt. Managing Director & CFO : 2) Mr. Gurjeet Singh Jawandha (DIN:00213573)
Mrs. Natasha Sinha (DIN 00812380)
3) ****Mr. Dipak Chatterjee (DIN:03048625)
Whole Time Director:
*Mr. Sharanapa Neelappa Kambalii 4) *****Mr. Debiprasad Bagchi (DIN:00061648)
(DIN: 08182398) 5) *****Mr. Madhukar (DIN:00558818)
Additional Director 6) *****Mr. Nandanadan Mishra (DIN:00031342)
**Mr. Hawa Singh Chahar
(DIN: 01691383)
***Mr. Sisir Kanta Panigrahi (DIN 08542641)
Company Information Plant Location

CIN: L74899DL1992PLC050216 Kalinga Nagar Industrial Complex, Khurunti, P. O. Dana-
H-1, Zamrudpur Community Centre, Kailash Colony, gadi - 755026 Dist. Jajpur, Odisha
New Delhi-110048
Mines Location
Tel: +91 (11) 40587085
Website: www.mescosteel.com Panchvati, P.O: Barbil Road, Barbil, Keon-
jhar- 758035, Odisha
Registrar and Transfer Agent Other Offices
M/s Skyline Financials Services Pvt. Ltd
1) Mesco Towers, 3915, Lewis Road, Kedar Gauri
Address: D-153A,
Square, Bhubaneswar-751014
Okhla Industrial Area, Phase-II
Tel: +91 (11) 40450193-95 2) 16, Strand Road, Diamond Heritage, 14th Floor,
Email: [email protected] Room-1412, Kolkata- 700001
3) 401, Silver Pearl | Opp. China Gate Restaurants,

Statutory Auditors Waterfield Road | Bandra (W), Mumbai - 400 050
M/s Arun Todarwal & Associates LLP,
Chartered Accountants
104, Maker Bhavan No. 3, 1st Floor
21, New Marine Lines Mumbai-400020
Tel.: 022-43023305/22083115
* Ceased to act as Director and CEO w.e.f 21.06.2019

** Mr. Hawa Singh Chahar (DIN: 01691383) has been appointed as Additional Director w.e.f 21.06.2019
*** Mr. Sisir Kanta Panigrahi (DIN 08542641) has been appointed as Additional Director w.e.f 13.08.2019
**** Ceased to act as Director w.e.f 25.06.2019
***** Ceased to act as Director w.e.f 01.04.2019
3
NOTICE
CIN: L74899DL1992PLC050216
Registered Office: H-1, Zamrudpur Community Centre, Kailash Colony, New Delhi-110048
Website: www.mescosteel.com, Tel No.: 011-40587085
Notice is hereby given that the Twenty Sixth Annual General Meeting of the Members of the Company will be held on
Monday, 30th Day of September, 2019 at 10:30 A.M. at The Executive Club, 439 Village Shahoorpur, P.O. Fatehpur
Beri, New Delhi-110074 to transact the following businesses:-
ORDINARY BUSINESS
1. To receive, consider and adopt audited Financial Statements for the year ended March 31, 2019, together with reports of the
Directors and the Auditors thereon and the Consolidated Financial Statements for the year ended March 31, 2019 along
with the Auditors’ Report thereon.
2. To appoint a Director in place of Mrs. Natasha Sinha (DIN 00812380), J t . M a n a g i n g D i r e c t o r of the Company, who
retires by rotation at this Annual General Meeting and being eligible offers herself for re-appointment.
SPECIAL BUSINESS
3. To re-appoint Mr. Sanjiv Batra (DIN: 00602669) as an Independent Director and if thought fit, pass the following resolution as
a Special Resolution:
“RESOLVED that pursuant to the provisions of Sections 149, 152 and other applicable provisions, if any, of the Companies
Act, 2013 (“Act”), the Companies (Appointment and Qualifications of Directors) Rules, 2014, read with Schedule IV to the
Act and Regulation 17 and other applicable regulations of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), as amended from time to time, Mr. Sanjiv
Batra (DIN 00602669), who was appointed as an Independent Director at the 21st Annual General Meeting of the Company
and who holds office up to conclusions of 26th Annual General Meeting and who is eligible for re-appointment and who
meets the criteria for independence as provided in Section 149(6) of the Act along with the rules framed thereunder and
Regulation 16(1)(b) of SEBI Listing Regulations and who has submitted a declaration to that effect and in respect of whom
the Company has received a Notice in writing from a Member under Section 160(1) of the Act proposing his candidature
for the office of Director, be and is hereby re-appointed as an Independent Director of the Company, not liable to retire by
rotation, to hold office for a second term of five years commencing from the date of 26th Annual General Meeting for a term
up to conclusion of 31st Annual General Meeting of the Company in the calendar year 2024.
4. To appoint Mr. Hawa Singh Chahar (DIN: 01691383) as a Director and a Non-Executive (Independent) Director and in
this regard, to consider and if thought fi t, to pass the following resolution as an Ordinary Resolution.
“RESOLVED that Mr. Hawa Singh Chahar (DIN: 01691383) who was appointed by the Board of Directors as an
Additional Director of the Company with effect from June 21, 2019 and who holds office up to the date of this Annual
General Meeting of the Company in terms of Section 161(1) of the Companies Act, 2013 (“Act”) but who is eligible for
appointment and in respect of whom the Company has received a notice in writing from a Member under Section 160(1)
of the Act proposing his candidature for the office of Director of the Company, be and is hereby appointed as Director of
the Company.”
“RESOLVED FURTHER that pursuant to the provisions of Sections 149, 152 and other applicable provisions, if any,
of the Act, the Companies (Appointment and Qualifications of Directors) Rules, 2014, read with Schedule IV to the Act
and Regulation 17 and other applicable regulations of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”), as amended from time to time, the
appointment of Mr. Hawa Singh Chahar (DIN: 01691383), who meets the criteria for independence as provided in
Section 149(6) of the Act along with the rules framed thereunder, and Regulation 16(1)(b) of SEBI Listing Regulations
and who has submitted a declaration to that effect, and who is eligible for appointment as an Independent Director of the
Company, not liable to retire by rotation, for a term of five years commencing June 21, 2019 to June 20, 2024, be and is
hereby approved.”
5. To consider and if thought fit, to pass with or without modification(s), the following resolution as an Ordinary
Resolution:
“RESOLVED THAT pursuant to the provisions of Section 148 read with Rule 14 of the Companies (Audit and Auditors)
Rules, 2014 and all other applicable provisions, if any, of the Companies Act, 2013 (including any statutory modification(s)
or re-enactment thereof for the time being in force), the payment of remuneration of ₹ 1,00,000 (Rupees One Lakh
only) plus applicable Goods and Service Tax and reimbursement of out of pocket expenses subject to maximum of
₹ 15,000 (Rupees Fifteen Thousand Only) be and is hereby approved to M/s S.S. Sonthalia & Co, Cost Accountants,
(Firm Registration No 00167) who were re-appointed by the Board of Directors of the Company as the Cost Auditors to
conduct the audit of the cost records of the Company for the financial year ending March 31, 2020.
4
RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to do all such acts,
deeds, matters and things and to take all such steps as may be necessary, proper and expedient to give effect to this
resolution.”
6. To consider and if thought fit, to pass, with or without modification(s), the following resolution as a Special Resolution:
RESOLVED THAT pursuant to the provisions of Section 188 of the Companies Act, 2013 (“the Act”) and Regulation
23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (SEBI (LODR) Regulations 2015)
(including any statutory modification(s) or re-enactment thereof for the time being in force), the consent of the Company
be and is hereby accorded to enter into the related party transactions by the Company with the respective related
parties and for the maximum amounts per annum, as mentioned herein below:
( ₹ in Crore)
Sr. Nature of Transactions as per Name of the Director/KMP who Name of
No section 188 of the Companies is related and nature of their the Related
Receipts Payments
Act, 2013 relationship Party
1 sale, purchase or supply of Blooms, Maithan Ispat Limited is subsidiary of Maithan 500
Billets, Sponge Iron, Pig Iron, the Company Ispat Limited
Scrap, Coal or any other goods
and all other types of services to
be received incidental to such
sale, purchase or supply
2 purchase of iron ore or any other Mrs. Rita Singh, Director of the Mesco 200
goods and all other types of Company and Mrs. Natasha Sinha, Steels
services to be received incidental Jt. Managing Director & CFO of the Limited
to such sale, purchase or supply company are common director and
promoters carry shareholding interest
3. purchase of c o k e or any other Mrs. Rita Singh, Director of the Mesco 250
goods and all other types of Company, is a promoter carrying Kalinga
services to be received incidental shareholding interest Steels
to such sale, purchase or supply Limited
( ₹ in Crore)
Sr. Nature of Transactions Name of the Director/KMP who is Name of the
No as per section 188 of the related and nature of their relationship Related Party
Receipts Payments
Companies Act, 2013
4 Leasing/sublease/rent for Mrs. Rita Singh , Director of the Company, is Mesco - 0.10
office sharing of property a promoter carrying shareholding interest Kalinga Steels
Limited
5 Leasing/sublease/rent for Mrs. Natasha Sinha, Jt. Managing Mesco Hotels - 0.10
office sharing of property Director & CFO of the company, is a Limited
common director and promoter carrying
shareholding interest
6 Hiring of Vehicle Mrs. Rita Singh , director of the company, is Mesco - 0.10
a common director and promoter carrying Logistics
shareholding interest Limited
7 Hiring of Vehicle Mrs. Rita Singh, director of the company Mesco Steels - 0.10
and Mrs. Natasha Sinha, Jt. Managing Limited
Director & CFO of the company are
common director and promoters carrying
shareholding interest
RESOLVED FURTHER THAT the Board and audit committee be and is hereby authorised to take all such actions and
to give all such directions as may be necessary or desirable and also to settle any question or difficulty that may arise
in regard to the proposed purchase, sale or supply of goods or materials, Leasing/sublease/rent for office sharing of property,
hiring of vehicle (the “transactions”), either in part or in full, as it may, in its absolute discretion, deem appropriate, subject
to the specified limits for effecting the aforesaid transactions and to do all such acts, deeds, matters and things and to execute
all such deeds, documents and writings as may be necessary, desirable or expedient in connection therewith.
5
RESOLVED FURTHER THAT any director of the Company be and is hereby authorized to negotiate, finalize and execute
and sign the above mentioned agreements and schedules, attachments, documents, appendixes and other writings in
respect thereof, including any amendment thereto for and on behalf of the Company.”
7. To consider and if thought fit, to pass, with or without modification(s), the following resolution as an Ordinary
Resolution:
“RESOLVED THAT pursuant to the provisions of Sections 152,161 and other applicable provisions, if any, of the
Companies Act, 2013 (“the Act”) and the rules made thereunder, SEBI(Listing Obligations and Disclosure Requirements)
Regulations,2015 (including any statutory modification(s) or re-enactment thereof, for the time being in force), Mr. Sisir
Kanta Panigrahi (DIN 08542641), who was appointed as an Additional Director of the Company with effect from August
13, 2019 and who holds office up to the date of this Annual General Meeting and in respect of whom the Company
has received a notice in writing under Section 160 of the Act from a member proposing his candidature for the office of
Director, be and is hereby appointed as an Executive Director of the Company liable to retire by rotation.
RESOLVED FURTHER THAT the Board of Directors (the ‘Board’ which term includes a duly constituted Committee of
the Board) be and is hereby authorised to take all such steps as may be necessary, proper and expedient to give effect
to this Resolution.”
8. Members of the company are requested to take note of the following revised disclosure in respect of the Special Resolution at
Item No. 12 as given in 25th AGM Notice for preferential issue of 67,67,951 Equity Shares of the company to Mr. Jitendra Kumar
Singh, Mrs. Rita Singh, Mrs. Natasha Sinha and Mrs. Shipra Singh Rana.
a. The said preferential allotment will be subject to provisions of Section 42 of the Companies Act, 2013.
b. The total of Promoters post allotment shareholding was mentioned in the Notice as 97268689 which correctly needs
to be read as 97129421.
c. The percentage of post shareholding pattern of Stemcor India Private Limited and Indian Public Trust was wrongly
published as 9.51% and 19.32%, which should be read as 9.53% and 19.37% respectively.
d. In the Annual General Meeting Notice, for item no. 12 Explanatory Statement at Point no. (k) the term Practicing
Company Secretary certificate was published, which is to be read as Statutory Auditor Certificate of the Company
which certifies that Company preferential issue comply with the norms of Chapter VII of SEBI (Issue of Capital and
Disclosure Requirement) Regulations, 2009
By order of the Board
For and on behalf of Mideast Integrated Steels Limited
Rita Singh
Place: New Delhi Chairperson Cum Managing Director
Date : 13.08.2019 DIN: 00082263
6
NOTES:
1. An Explanatory Statement, pursuant to Section 102 of the Companies Act, 2013 relating to the Special Business to be
transacted at the ensuing Annual General Meeting is appended hereto.
2. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of himself
and a proxy need not be a member of the company. The instrument appointing a proxy in order to be effective should
be duly stamped, filled, signed and must be deposited at the Registered Office of the Company not less than 48
hours before commencement of the meeting. A Proxy form is sent herewith. A person can act as a proxy on behalf
of members not exceeding fifty and holding in the aggregate not more than ten percent of the total share capital of the
Company carrying voting rights. A member holding more than ten percent of the total share capital of the Company
carrying voting rights may appoint a single person as proxy and such person shall not act as a proxy for any other
person or shareholder.
3. Corporate Members intending to send their authorised representatives to attend the Meeting pursuant to Section 113
of the Companies Act, 2013 are requested to send to the Company, a certified copy of the relevant Board Resolution
together with their respective specimen signatures authorising their representative(s) to attend and vote on their behalf
at the Meeting.
4. In case of joint holders attending the Meeting, only such joint holder who is higher in the order of names will be entitled
to vote.
5. Annual Report and AGM Notice is available at the website of the Company at www.mescosteel.com in the Investor
Section
6. The Notice of AGM along with the Annual Report 2018-19 is being sent by electronic mode to those members whose
email address is registered with the Company / Depositories, unless any member has requested for a physical copy of
the same. For members who have not registered their email address, physical copies are being sent by the permitted
mode.
7. The Company has engaged the services of CDSL as Agency to provide e-voting facility.
8. The Register of Members and Share Transfer Books of the Company will remain closed from September 23,
2019 to September 30, 2019 (both days inclusive).
Relevant documents referred to in the accompanying Notice and the Statement including Register of Members and
Share Transfer Books are open for inspection by the members at the Registered Office of the Company on all working
days, except Saturdays, during business hours up to the date of the Meeting.
9. Shareholders who are yet to encash their earlier dividend warrants for the years 2011-12, 2012-13 and 2013-14 (Final
Dividend) are requested to contact the Company Secretary immediately for revalidation of the dividend warrant or issue of
fresh demand draft as the dividend amount remaining unclaimed/ unpaid at the expiry of 7 years from the date that becomes
due for payment are required to be transferred by the Company to the Investor Education and Protection Fund.
10. A person who has acquired shares & become a member of the company after the dispatch of notice of AGM & holding shares
as of cut-off date, may obtain the login ID & password by sending a request at [email protected]. However, if the
person is already registered with the CDSL for remote e-voting then the existing user ID & password can be used for casting
vote. Complete details and instructions for e-voting are furnished below as part of the AGM Notice.
11. Members seeking further information about the accounts are requested to write at least 7 days before the date of the meeting
so that it may be convenient to get the information ready at the meeting
12. Members are requested to:
a. Notify immediately any change in their residential address to the Company or to Skyline Financial Services
Private Limited, Company’s Registrar and Share Transfer Agent at D-153/A, 1st Floor, Okhla Industrial Area,
Phase-I, New Delhi-110020 quoting their folio number and also notify their e-mail address for prompt response.
b. Bring their copy of the Annual Report and Attendance Slip with them at the Annual General Meeting.
c. Quote their Regd. Folio Number/DP and Client ID Nos. in all their correspondence with the Company or its
Registrar and Share Transfer Agent.
d. Register their e-mail address for receiving all communications including Annual Report, Notices, Circulars, etc.
from the Company electronically.
e. DEMATERIALISE THEIR SHAREHOLDING.
13. Members may please note that briefcase, bag, mobile phone and/or eatables shall not be allowed to be taken inside
the hall for security reasons.
14. In compliance with provisions of the Companies Act, 2013, the Company is also offering remote e-voting facility to the members
to enable them to cast their votes electronically. Please note that remote e-voting is optional and not mandatory. Remote
7
e-voting facility would remain open only from September 27, 2019 holding shares either in physical form or in dematerialized
form, as on the cut-off date of September 23, 2019, may cast their vote electronically. The e-voting module shall be disabled
by CDSL for voting thereafter. Once the vote on a resolution is casted by the shareholder, the shareholder shall not be allowed
to change it subsequently.
15. The facility for voting through polling paper shall be made available at the AGM & members who have not already cast their
vote by remote e-voting shall be able to exercise their right at the AGM. The members who have ceased their vote by remote
e-voting prior to the AGM may also attend the AGM but shall not be entitled to cast their vote again.
16. The instructions for shareholders for voting electronically are as under:-
i. The voting period begins on September 27, 2019 at 9:00 Hours and ends on September 29, 2019 at 17:00
Hours. During this period shareholders’ of the Company, holding shares either in physical form or in
dematerialized form, as on, September 23, 2019 (cut-off date) may cast their vote electronically. The e-voting
module shall be disabled by CDSL for voting thereafter.
ii. The shareholders should log on to the e-voting website www.evotingindia.com.
iii. Click on Shareholders/Members.
iv. Now Enter your User ID
i. For CDSL: 16 digits beneficiary ID,
ii. For NSDL: 8 Character DP ID followed by 8 Digits Client ID,
iii. Members holding shares in Physical Form should enter Folio Number registered with the Company.
v. Next enter the Image Verification as displayed and Click on Login.
vi. If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an earlier
voting of any company, then your existing password is to be used.
vii. If you are a first time user follow the steps given below:
For Members holding shares in Demat Form and Physical Form

PAN Enter your 10 digit alpha-numeric PAN issued by Income Tax Department (Applicable for
both demat shareholders as well as physical shareholders)
● Members who have not updated their PAN with the Company/Depository Participant are
requested to use the first two letters of their name and the 8 digits of the sequence number
in the PAN field.
● In case the sequence number is less than 8 digits enter the applicable number of 0’s before
the number after the first two characters of the name in CAPITAL letters. Eg. If your name is
Ramesh Kumar with sequence number 1 then enter RA00000001 in the PAN field.
Dividend Enter the Dividend Bank Details or Date Of Birth (in dd/mm/yyyy format) as recorded in
Bank Details your demat account or in the company records in order to login.
or Date of ● If both the details are not recorded with the depository or company please enter the
Birth (DOB) member id / folio number in the Dividend Bank details field as mentioned in instruction (iv)
viii. After entering these details appropriately, click on “SUBMIT” tab.

ix. Members holding shares in physical form will then directly reach the Company selection screen.
However, members holding shares in demat form will now reach ‘Password Creation’ menu wherein they are required to
mandatorily enter their login password in the new password field. Kindly note that this password is to be also used by the
demat holders for voting for resolutions of any other company on which they are eligible to vote, provided that company
opts for e-voting through CDSL platform. It is strongly recommended not to share your password with any other person
and take utmost care to keep your password confidential.
x. For Members holding shares in physical form, the details can be used only for e-voting on the resolutions contained in this
Notice.
xi. Click on the EVSN for Mideast Integrated Steels Limited on which you choose to vote.
xii. On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same the option “YES/NO” for voting.
Select the option YES or NO as desired. The option YES implies that you assent to the Resolution and option NO implies
that you dissent to the Resolution.
xiii. Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details.
xiv. After selecting the resolution you have decided to vote on, click on “SUBMIT”. A confirmation box will be displayed. If you
wish to confirm your vote, click on “OK”, else to change your vote, click on “CANCEL” and accordingly modify your vote.
8
xv. Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your vote.
xvi. You can also take out print of the votes cast by clicking on “Click here to print” option on the Voting page.
xvii. If a Demat account holder has forgotten the login password then enter the User ID and the image verification code and
click on Forgot Password & enter the details as prompted by the system.
xviii. Shareholders can also cast their vote using CDSL’s mobile app m-Voting available for android based mobiles.
The m-Voting app can be downloaded from Google Play Store. Please follow the instructions as prompted by the mobile
app while voting on your mobile.
xix. Note for Non – Individual Shareholders and Custodians
• Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodian are required to log on
to www.evotingindia.com and register themselves as Corporates.
• A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed
to [email protected].
• After receiving the login details a Compliance User should be created using the admin login and password.
The Compliance User would be able to link the account(s) for which they wish to vote on.
• The list of accounts linked in the login should be mailed to [email protected] and on
approval of the accounts they would be able to cast their vote.
• A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in favour of
the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to verify the same.
xx. In case you have any queries or issues regarding e-voting, you may refer the Frequently Asked Questions (“FAQs”)
and e-voting manual available at www.evotingindia.com, under help Section or write an email to helpdesk.evoting@
cdslindia.com.
17. The voting rights of shareholders shall be in proportion to their shares of the paid up equity share capital of the Company
as on the cut-off date (record date).
18. The Board of Directors has appointed Mr. Ravi Shankar, Practicing Company Secretary (Certificate of Practice No18568.),
as the Scrutinizer for conducting remote e-voting in a fair and transparent manner.
19. The Scrutinizer shall, immediately after the conclusion of voting at the AGM, first count the votes cast at the AGM by Ballot
papers and thereafter unlock the votes casted through remote e-voting in the presence of at least two witnesses not in the
employment of the Company. The Scrutinizer shall, within 24 hours from the conclusion of the AGM, prepare and present
a consolidated report of the total votes cast in favour or against, if any, to the Chairman or any other Key Managerial
Personnel who shall countersign the same and declare the results of the voting within 48 hours of conclusion of Annual
General Meeting.
20. The results declared along with the report of Scrutinizer shall be placed on the website of the Company i.e. www.
mescosteel.com and on the website of CDSL immediately after the declaration of results by the Chairman or any other Key
Managerial Personnel. The results shall also be forwarded to the Stock Exchange within 48 hours of the conclusion of Annual
General Meeting.
21. A route map showing directions to reach the venue of the 26th Annual General Meeting of the Company is enclosed as back
cover of Annual Report as per the requirement of the “Secretarial Standards 2” on General Meetings
22. Pursuant to Regulation 36 of the SEBI (LODR) Regulations 2015 and Secretarial Standard 2 Issued by ICSI, the brief
profile of Director eligible for appointment/re-appointment vide item no. 2,3,4 and 7 is as follows:-
Particulars Mrs. Natasha Sinha Mr. Sanjiv Batra

DIN 00812380 00602669
Age 46 Years 69 Years
Date of appointment 04.01.1994 20.09.2014
Qualifications Economic Hons B.Tech (Electrical) from IIT, New Delhi and
MBA from Delhi University. He has also done a
certification course on International Trade from
IIFT.
9
Particulars Mrs. Natasha Sinha Mr. Sanjiv Batra
Expertise in specific Mrs. Natasha Sinha holds a B. A. Mr. Batra has more than 45 years of work
functional areas (Economics) degree and having experience in Public and private sector in
more than 20 years’ experience. She marketing, strategic planning, business
is currently working as Jt. Managing diversification, policy formulation for import
Director & CFO and has been and export of commodities, supply chain,
successfully managing the company. Management and logistics and promoting
She is also actively associated trade related infrastructure. He last served
with the aviation, shipping & mines MMTC Limited as CMD. He was instrumental
businesses of the group. in leading transformation of MMTC into an
integrated conglomerate following public
private partnership route. He is also director on
the Board of Maithan Ispat Limited.
Directorships in other 1. Pahardia Gold Mining Limited Maithan Ispat Limited
Companies 2. Mesco Steels Limited
3. Mesco Logistics Limited
4. Happy Associates Private Limited
Memberships / Chair- Nil Maithan Ispat Limited

manships of commit-
tees of other public
companies (includes
only Audit Committee
and Stakeholders’ Re-
lationship Committee.)
Number of shares held 2300 -

in the
Company
Relationship with any Daughter of Mrs. Rita Singh -
Director(s) of the Com-
pany
Terms & Conditions of Re-Appointment subject to retire by Re appointment subject to not to be retire by
Appointment rotation rotation
Remuneration Details Last drawn remuneration is given in -

the Corporate Governance Section
of the Annual Report.
No. of Board meetings 3 4

attended out of 4 meet-
ings held during the
year
Particulars Mr. Sisirkanta Panigrahi Mr. Hawa Singh Chahar

DIN 08542641 01691383
Age 53 Years 71 Years
Date of appointment 13.08.2019 21.06.2019
Qualifications BE Graduate in Mechanical Engineer- Retired IAS Officer
ing from the pioneer Engineering Col-
lege, Bangolore University in the year
1989
10
Particulars Mr. Sisirkanta Panigrahi Mr. Hawa Singh Chahar

Expertise in specific He is associated with the company for Mr. Hawa Singh Chahar is a Retired IAS
functional areas last more than 20 years. He is having vast Officer. He has 18 years of experience in
experience in the Steel and Mining Industry various Government Departments including
which will be beneficial for the Company. the Agricultural Department, Transport
Presently he is serving the Company in the and Commerce Department, Housing
capacity of General Manager (Project) since and Urban Development Department,
01.04.2018.His outstanding performance Steel and Mines Department, Forest and
in project as well as Plant’s maintenance Environmental Department. He served as
deptt. has been highly commended at Chairman of Bilati (Orissa) Limited and
various occasions served as its Director since July 2005.
Directorships in other - Mideast (India) Limited
Companies Mesco Kalinga Steel Limited
Mesco Mining Limited
Mesco Pharmaceuticals Limited
Memberships / Chair- - Mideast (India) Limited
manships of commit- Mesco Kalinga Steel Limited
tees of other public Mesco Mining Limited
companies (includes Mesco Pharmaceuticals Limited
only Audit Committee
and Stakeholders’
Relationship Com-
mittee.)
Number of shares - -
held in the Company
Relationship with - -
any Director(s) of the
Company
Terms & Conditions Appointment subject to retire by rotation. Re appointment subject to not to be retire
of Appointment by rotation
Remuneration The remuneration details is mentioned in -
Details Appointment letter, available for inspection.
No. of Board meet- - -

ings attended out
of 4 meetings held
during the year

Rita Singh
Place : New Delhi Chairperson Cum Managing Director
Date : 13.08.2019 DIN: 00082263
11
EXPLANATORY STATEMENT
(Pursuant to Section 102 of the Companies Act, 2013)
The following Explanatory Statements, as required under Section 102 of the Companies Act, 2013, set out all material facts
relating to the business under Item Nos. 3 to 7 of the accompanying notice dated August 13, 2019
Item No. 3
Based on recommendation of the Board of Directors proposes the re-appointment of Mr. Sanjiv Batra (DIN 00602669)
as Independent Director, for a second term of five years from 26th AGM of the Company till conclusion of 31st AGM of
the Company, not liable to retire by rotation. Mr. Batra was appointed as Independent Director at the 21st Annual General
Meeting (“AGM”) of the Company. The Company has, in terms of Section 160(1) of the Act received in writing a notice from a
Member, proposing his candidature for the office of Director. The Board considers that given his background, experience and
contribution, the continued association of Mr. Sanjiv Batra would be beneficial to the Company and it is desirable to continue
to avail his services as Independent Director.
The Company has received a declaration from him to the effect that he meets the criteria of independence as provided
in Section 149(6) of the Act and Rules framed thereunder and Regulation 16(1)(b) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”). In terms of Regulation 25(8) of SEBI Listing
Regulations, he has confirmed that he is not aware of any circumstance or situation which exists or may be reasonably
anticipated that could impair or impact his ability to discharge his duties.
In the opinion of the Board, he fulfills the conditions specified in the Act and SEBI Listing Regulations for appointment as an
Independent Director and is independent of the management of the Company. The terms and conditions of his appointment
shall be open for inspection by the Members at the Registered Office of the Company during the normal business hours on
any working day (except Saturday) and will also be kept open at the venue of the AGM till the conclusion of the AGM.
Mr Batra holds B.Tech (Electrical) from IIT, New Delhi and MBA from Delhi University. He has also done a certification course
on International Trade from IIFT.
Mr. Sanjiv Batra has more than 45 years of work experience in Public and private sector in marketing, strategic planning,
business diversification, policy formulation for import and export of commodities, supply chain, Management and logistics and
promoting trade related infrastructure. He last served MMTC Limited as CMD. He was instrumental in leading transformation
of MMTC into an integrated conglomerate following public private partnership route. He is also director on the Board of
Maithan Ispat Limited.
In compliance with the provisions of Section 149 read with Schedule IV to the Act and Regulation 17 of SEBI Listing
Regulations and other applicable Regulations, the re-appointment of Mr. Sanjiv Batra as Independent Director is now being
placed before the Members for their approval by way of Special Resolution.
The Board recommends the Special Resolution at Item No. 3 of this Notice for approval of the Members.
Except Mr. Sanjiv Batra and his relatives, none of the Directors and Key Managerial Personnel of the Company and their
respective relatives is, in any way, concerned or interested, in the Resolution set out at Item No. 3 of the Notice.
Item No. 4
The Board of Directors appointed Mr. Hawa Singh Chahar (DIN: 01691383) as Additional Director of the Company and also
as Independent Directors, not liable to retire by rotation, for a term of 5 years i.e. from June 21, 2019 to June 20, 2024, subject
to approval of the Members.
Pursuant to the provisions of Section 161(1) of the Act, Mr. Chahar shall hold office up to the date of this Annual General
Meeting (“AGM”) and are eligible to be appointed as Directors.
The Company has, in terms of Section 160(1) of the Act, received in writing a notice from Member(s), proposing his candidature
for the office of Director.
The Company has received declaration from Mr. Hawa Singh Chahar to the effect that he meet the criteria of independence
as provided in Section 149(6) of the Act read with the Rules framed thereunder and Regulation 16(1)(b) of the Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing
Regulations”).
In terms of Regulation 25(8) of SEBI Listing Regulations, he has confirmed that he is not aware of any circumstance or
situation which exists or may be reasonably anticipated that could impair or impact his ability to discharge his duties.
In the opinion of the Board, Mr. Chahar fulfill the conditions specified in the Act, Rules and SEBI Listing Regulations for
appointment as Independent Director and he is independent of the management of the Company. The terms and conditions
of his appointment shall be open for inspection by the Members at the Registered Office of the Company during the normal
business hours on any working day (except Saturday) and will also be kept open at the venue of the AGM till the conclusion
of the AGM.
12
Item No 5
The Board of Directors of the Company on the recommendation of the Audit Committee, appointed M/s S.S. Sonthalia
& Co, Cost Accountants, Orissa as Cost Auditors to conduct the audit of the cost records of the Company for the financial
year ended March 31, 2020 at a remuneration of ₹ 1,00,000 (Rupees One Lakh Only) plus service tax and reimbursement
of out of pocket expenses subject to maximum of ₹ 15,000 (Rupees Fifteen Thousand Only). The said auditors have given
their eligibility certificate for appointment as Cost Auditors. In terms of the provisions of Section 148(3) of the Companies
Act, 2013 read with Rule 14(a) (ii) of The Companies (Audit and Auditors) Rules, 2014, the remuneration payable to
the Cost Auditor is to be ratified by the members of the Company. Accordingly, the Members are requested to ratify the
remuneration payable to the Cost Auditors for the financial year ending on March 31, 2020 as specified herein above for
the aforesaid services to be rendered by them.
None of the Directors, Key Managerial Personnel of the Company and their relatives, is in any way concerned or
interested in the said Resolution. The Board of Directors recommends the Ordinary Resolution set out at Item No. 5 of the
Notice for approval by the Members.
Item Nos. 6
As per the provisions of Section 188(1) of the Companies Act, 2013 and Regulation 23 of SEBI (LODR) Regulations,
2015 all material related party transactions require approval of the shareholders and the related parties shall abstain from
voting on such resolution whether the entity is a related party to the particular transactions or not.
In the light of provisions of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015, the Board of Directors of your
Company has approved the proposed transactions along with annual limit that your Company may enter into with the related
parties (as defined under section 2 (76) of the Companies Act, 2013).
The Particulars of the transaction pursuant to Rule 15 of Companies (Meetings of Board and its Powers) Rules, 2014
read with Section 188 of the Companies Act, 2013 are as under:
Name of the Related Party As provided in table below:

Name of the Director or Key Managerial Personnel who is related, if any
Nature of Relationship
Sr. No. Name of the Related Party Name of the Director/KMP who is related and nature of their relationship
1. Maithan Ispat Limited Maithan Ispat Limited is subsidiary of the Company
2. Mesco Steels Limited Mrs. Rita Singh, Director of the Company and Mrs. Natasha Sinha,
3. Mesco Steels Limited Jt. Managing Director & CFO of the company are common director and pro-
moters carry shareholding interest
4. Mesco Kalinga Steels Limited Mrs. Rita Singh, Director of the Company, is a promoters carry shareholding
5. Mesco Hotels Limited interest
6. Mesco Logistics Limited Mrs. Rita Singh, Director of the Company, is a common Director and
promoter carry shareholding interest
Nature, material terms, monetary value and particulars of the contract or arrangement: The details are as mentioned
below:
1. Sale, Purchase & Services to be received from Maithan Ispat Limited, Mesco Kalinga Steels Limited and Mesco
Steels Limited
S. Particulars Maithan Ispat Mesco Kalinga Mesco Steels Limited

No Limited Steels Limited
1. Sale/Purchase Price The price for purchase and sale of the products of the Company shall be
negotiated and agreed to by both parties based on estimated total costs
and risk & return considering prevalent market conditions
2. Payment Schedule:. To be determined by both the parties by mutual consent.
3. Nature, material terms and All the Contracts/transactions are at best negotiated terms/market
particulars of the arrangement: price.
4. Duration of the Contract: The agreement is valid for a period of 1 year
5. Any other information relevant or NA
important for the members to take a
decision on proposed transaction:
13
2. Leasing/ subleasing/ rent for office sharing of property:
The Company has entered/ propose to enter into agreements with respective related parties for leasing/ subleasing/ office
sharing of the property, at such locations where either the property / office or part thereof is/are lying unutilized. The details
of such arrangement(s) are mentioned herein below:
Name of the Particulars Maximum Amount

related party per annum (in Crore)
Mesco Hotels Existing agreement for sharing of office space of a premise situated at 0.10
Limited Kedar Gouri Square, Bhubaneswar. The amount being charged for the
said services is fixed after considering all the relevant factors and are
on arms length basis
Mesco Kalinga Existing agreement for sharing of office space of a premise situated at 0.10
Steel Hill View, Kalinganagar, Jajpur Odisha. The amount being charged for
Limited the said services is fixed after considering all the relevant factors and
are on arms length basis
3) Hiring of Vehicle:
The Company has entered into agreements with respective related parties for hiring vehicle on lease for official use. The
details of such arrangement(s) are mentioned herein below:
Name of the Particulars Maximum Amount per

related party annum (in Crore)
Mesco Logistics Existing agreement for hiring Mercedes S-500 0.10
Limited For company use. The amount being charged for the said
services is fixed after considering all the relevant factors and are
on arms length basis
Mesco Steels Existing agreement for hiring Mercedes E-280 For company use. 0.10
Limited The amount being charged for the said services is fixed after
considering all the relevant factors and are on arm’s length
basis
Any other information relevant or important for the Board/Members to take a decision: The respective resolution
placed above is entered on arm’s length basis and all factors relevant to the respective contracts have been considered by
the Board. Documents relating to above resolution shall be available for inspection by the members at the Registered Office
of the Company during the normal business hours (10 am to 6 pm) on all working days (except Saturdays) upto the date of
Annual General Meeting of the Company.
The members are further informed that no member/s of the Company being a related party or having any interest in the
resolution as set out at item No. 6 shall be entitled to vote on this special resolution.
Except Promoter Directors and their relatives (to the extent of their shareholding interest in the Company), no other director
or Key Managerial Personnel or their relatives, is concerned or interested, financially or otherwise, in passing of this
resolution.
The Board therefore recommends the Special Resolution set out in Item No. 6.
ITEM NO. 7:
The Board of Directors has appointed Mr. Sisir Kanta Panigrahi (DIN: 08542641) as an Additional Director of the Company
w.e.f August 13, 2019 pursuant to Section 161(1) of the Companies Act, 2013(“the Act).In terms of the provisions of Section
161(1) of the Companies Act, 2013, Mr. Sisir Kanta Panigrahi (DIN: 08542641) will hold office only upto the date of ensuing
Annual General Meeting. The Company has also received DIR-2 and DIR-8 as per the requirement of Companies Act,
2013.
Mr. Sisir Kanta Panigrahi (DIN: 08542641) being eligible and offering himself for appointment, is proposed to be appointed as
Executive Director liable to retire by rotation
14
Copy of the draft letter for appointment of Mr. Sisir Kanta Panigrahi (DIN: 08542641), Director setting out the terms and conditions
would be available for inspection without any fee by the members at the Registered Office of the Company during normal business
hours on any working day till the date of AGM.
The Board of Directors of your Company recommends the resolution in relation to appointment of Mr. Sisir Kanta Panigrahi (DIN:
08542641) as an Executive Director, for the approval by the shareholders of the Company.
Except Mr. Sisir Kanta Panigrahi (DIN: 08542641), no other Director and Key Managerial Personnel of the Company and their
relatives is concerned or interested, financial or otherwise, in the resolution set out at Item No. 7.
ITEM NO. 8:
The Company had, vide resolution no. 12 in the notice for 25th Annual General Meeting of the members dated August 13, 2018,
proposed to issue 67,67,951 equity shares of Rs. 10/- each to Mrs. Rita Singh, Mr. Jitendra Kumar Singh, Mrs. Natasha Sinha and
Mrs. Shipra Singh, Promoters of the Company in lieu of their loan outstanding in the books of the Company. In respect of same,
shareholder of the Company had passed the Special Resolution in the 25th AGM of the Company.
Subsequently Company had found that the disclosures made in Explanatory Statement of Item No. 12 were inadequate/incorrect
or wrongly published.
To rectify the same and for true information of shareholders the above disclosure have been reproduced in the 26th AGM Notice.
The purpose and other disclosure remain same as disclosed in the 25th AGM Notice at Item No. 12. Shareholders are requested to
kindly read this resolution and explanatory statement alongwith the Resolution no. 12 of 25th AGM Notice.

Rita Singh
New Delhi Chairperson Cum Managing Director
August 13, 2019 DIN: 00082263
15
DIRECTORS REPORT
To
The Members
Mideast Integrated Steels Limited
Your Directors are pleased to present 26th Annual Report and the Statements of Accounts for the financial year ended on
March 31, 2019.
1. FINANCIAL SUMMARY AND HIGHLIGHTS

The Company’s financial performance for the year ended March 31, 2019 along with previous year’s figures is given
hereunder:
( ₹ in Mn)
Standalone Consolidated
Particulars 2018-19 2017-18 2018-19 2017-18
Gross Sales & Other Income 9113.58 6443.09 13348.38 10800.11
Profit/ (Loss)Before Finance Cost &
212.07 1561.62 1099.12 1985.73
Depreciation
Interest/Finance Cost 45.85 823.43 1089.22 1732.06
Depreciation 564.04 565.35 823.92 828.69
Profit/ (Loss) before Tax 13.38 300.12 (814.02) (575.07)
Tax Expense 52.00 67.20 52.00 66.47
Profit/ (Loss) After Tax (38.62) 232.92 (866.02) (641.54)
Appropriations/Adjustments - - - -
Balance of profit/ (loss) brought forward 2937.49 2,703.97 471.52 1113.74
Profit for the Year (38.62) 232.92 (866.02) (641.54)
Re-measurement gains/ (losses) on defined
0.80 0.60 (0.03) (3.26)
benefit plans
Proposed Final Dividend - - - -
Profit carried to Balance Sheet 2899.67 2937.49 (391.07) 471.52
2. FINANCIAL PERFORMANCE HIGHLIGHTS

Standalone Operations:
During the year under review, the Company’s revenue from operations was ₹ 8702.37 Million as against ₹ 6315.81 Million in
the previous year. The Company’s Profit before Depreciation Interest and Tax (“PBDIT”) was ₹ 212.07 Million in the financial
year ended 31st March, 2019 as opposed to PBDIT of ₹ 1561.62 Million in the immediate preceding year.
Taking into account depreciation and interest cost, profit before tax (PBT) stood at 13.38 Million as against 300.12 Million in
the previous year and total comprehensive income for the year was ( ₹ 37.82) Million against 233.52 Million in the previous
financial year.
Consolidated Operations:
During the year under review, the Company’s revenue from operations was ₹ 12509.92 Million as against ₹ 10663.32 Million
in the previous year. Further, in the financial year ended 31st March, 2019, profit before tax (PBT) was ₹ (814.02) Million as
against ₹ (575.07) Million in the previous year and profit after tax (PAT) was ₹ (866.02) million against ₹ (641.54) Million in
the previous financial year.
The performance and financial position of the subsidiary company is included in the consolidated financial statements of the
Company.
3. COMPANY’S WORKING DURING THE YEAR/ STATE OF COMPANY’S AFFAIRS

In financial year 2019, Gross Sales increased by around 38% to ₹8702.37 from ₹6315.81 in financial year 2018. Company’s
continuous focus on improving operational efficiencies helped in maintaining EBIDTA level. Growth in sales is mainly driven
by restart of production and sale of pig iron. Company’s has incurred a loss of Rs. 37.82 million as compare to the profit of Rs.
233.52 Million in the year 2018.
16
4. SUBSIDIARY COMPANY
Subsidiary As on March 31, 2019, the Company has one wholly owned subsidiary namely Maithan Ispat Limited. A statement
containing the salient features of the financial statement of the subsidiary in the Form AOC-1 is attached with the financial
statements of the Company as per the requirement of Section 129(3) of the Companies Act, 2013.
5. CHANGE IN NATURE OF BUSINESS

During the year under review, there was no change in the nature of the business of the Company.
6. TRANSFER TO RESERVES
The Company has not transferred any amount to General Reserves during the Year.
7. MANAGEMENT DISCUSSION AND ANALYSIS

Pursuant to regulations 34 of the Listing Regulations, Management’s Discussion and Analysis Report for the year is presented
in a separate section forming part of the Annual Report.
8. SHARE CAPITAL
During the year under review shareholders of the company has approved the Special resolution for increasing in Authorised
Share Capital of the company from the exiting Rs. 1,400,000,000/- ( Rupees One Hundred and Forty Crores only ) divided
140,000,000 ( Fourteen Crore) Equity Shares of Rs. 10/- ( Rupees Ten Only) each to Rs. 2,000,000,000 ( Rupees Two Hundred
Crores only) divided into 200,000,000 ( Twenty Crores) Equity Shares of Rs10/- ( Rupees Ten only) each in the Annual General
Meeting held on 30th September, 2018.
During the year under review, there was no change in the Company’s issued, subscribed and paid-up equity share capital. On
March 31, 2019, it stood at ₹ 1378.75 Million divided into 13,78,75,000 equity shares of ₹ 10/- each. The Company has neither
issued shares with differential rights as to dividend, voting or otherwise nor issued shares (including sweat equity shares) to the
employees or Directors of the Company, under any Scheme. No disclosure is required under Section 67(3)(c) of Companies
Act, 2013 in respect of voting rights not exercised directly by the employees of the Company as the provisions of the said
Section are not applicable
9. DIVIDEND
Due to loss incurred during the financial year ended March 31, 2019, your Directors have not recommended any dividend for
the financial year ended March 31, 2019.
10. ANNUAL RETURN

Given is the weblink www.mescosteel.com/admin/investor/2018-19.pdf where annual return referred to in sub-section (3) of
section 92 has been placed.
11. PUBLIC DEPOSIT

The company has not accepted any deposit from the public falling within the ambit of Section 73 of the Companies Act, 2013
and the Companies (Acceptance of Deposit) Rules, 2014.
12. NUMBER OF MEETINGS OF THE BOARD

During the financial year 2018-19, the Board of Directors of the Company, met 4 times i.e. on May 30, 2018 which was
adjourned on 08th June, 2018, August 13, 2018, November 14, 2018 and February 14, 2019. The gap between two consecutive
meetings did not exceed one hundred twenty days. Further, a separate Meeting of the Independent Directors of the Company
was also held on February 14, 2019.
13. DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirement of Section 134(3)(c) and 134(5) of the Companies Act, 2013, with respect to Directors’ Responsibility
Statement, your Directors confirm that:
a. in the preparation of the annual accounts, the applicable accounting standards have been followed with no material
departures;
b. we have selected such accounting policies and applied them consistently and made judgments and estimates that
are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the
financial year and of the loss of the Company for the same period;
c. we have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with
the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
17
d. we have prepared the annual accounts on a going concern basis;
e. we have laid down internal financial controls in the Company that are adequate and are operating effectively; and
f. we have devised proper systems to ensure compliance with the provisions of all applicable laws and that these are
adequate and are operating effectively.
14. DECLARATION OF INDEPENDENCE

The Company has received necessary declaration from each Independent Director under section 149(7) of the Companies Act,
2013 that they meet the criteria of independence laid down in section 149(6) of the Companies Act, 2013 and Regulation 16 of
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Independent Directors have also confirmed that
they are not aware of any circumstance or situation, which exist or may be reasonably anticipated, that could impair or impact
their ability to discharge his duties with an objective independent judgment and without any external influence and that they are
independent of the Management.
Further, Independent Directors have complied with the Code for Independent Directors prescribed in schedule IV of the
Companies Act, 2013 (‘ACT’). Directors and senior management personnel have complied with the code of conduct lay down
by Board for all members of board of directors and senior management of the listed entity.
15. NOMINATION AND REMUNERATION COMMITTEE

The Nomination and Remuneration Committee Comprises of 3 Independent Directors as Members. 2 (Two) meetings were
held during the financial year under review. More details on the committee are given in the Corporate Governance Report.
16. NOMINATION AND REMUNERATION POLICY

Company’s Policy on Directors Appointment and Remuneration including criteria for determining qualification, positive
attributes, independence of directors and other matters provided under section 178(3) of the Companies Act, 2013 there
has been no change in the Policy since the last Financial Year. Given below is the link on the website of company where
in complete policy is placed http://www.mescosteel.com/admin/investor/Nomination%20and%20Remuneration%20
Policy.pdf
17. AUDITORS
a. Statutory Auditors
Under Section 139 of the Companies Act, 2013 and the Rules made therunder, it is mandatory to rotate the statutory
auditors on the completion of the maximum term permitted under the provisions of the Companies Act., 2013
M/s Arun Todarwal & Associates LLP, Chartered Accountants (Firm Regn. No. W100291) was appointed as the
Statutory Auditors of the company to hold office for a period of 4 (Four) Year from the conclusion of 25th Annual
General Meeting of the Company, till the conclusion of 29th Annual General Meeting of the Company to be held in
the year 2022. The requirement for the annual ratification of auditor’s appointment at the AGM has been omitted
pursuant to the Companies (Amendment) Act, 2017 notified on May 07, 2018.
During the year the statutory auditors have confirmed that they satisfy the independence criteria required under Companies
Act, 2013.
Statement on Impact of Audit Qualifications for the Financial Year ended March 31, 2019 along with Management’s
replies thereon is placed at Annexure-A.
b. Cost Auditor
The Board of Directors on the recommendation of the Audit Committee has appointed M/s. S.S. Sonthalia & Company
(Firm Regn. No. 00167), Cost Accountants for auditing the cost records of the Company for the Financial Year 2018-19.
In terms of Section 148 of the Companies Act, 2013 read with the Companies (Audit and Auditors) Rules 2014, appropriate
resolution seeking your ratification of the remuneration of M/s. S.S. Sonthalia & Company, (Firm Regn. No. 00167), Cost
Accountants, as Cost Auditors, is included in the Notice convening the 26th AGM of the Company.
c. Secretarial Auditor
During the year under review, Mr. Robinderpal Singh Batth, Practicing Company Secretary (Certificate of Practice
No.3836), who was appointed as the Secretarial Auditor of the Company has issued the audit report in respect of the
secretarial audit of the Company for the financial year ended March 31, 2019. The Secretarial Audit Report is annexed as
Annexure-B to this Report. Given Below is the management reply on the observations made by the Secretarial Auditor in
their Report.
Observation No.1:
In terms of Securities and Exchange Board of India Circular No. Cir/ISD/3/2011, the 100% Promoter’s holding is to be
in dematerialized form. Promoter holding is not in 100% Demat form.
18
Management’s Reply:
Company is in receipt of declaration from promoters that the shares which are not in demat form are pending adjudication
of dispute before judicial/ quasi-judicial authorities and same would be dematted once the dispute is resolved/settled”
Observation No. 2
During the year under review, the Company has alter the Memorandum of Association of the company under section 61 of
the companies Act, 2013 by increasing the Authorized Share capital of the company from Rs 1,400,000,000/- (Rupees One
Hundred Forty Crore Only) divided into 140,000,000 (Fourteen Crore Only) equity shares of Rs. 10 (Rupees Ten Only) each to
Rs 2,000,000,000/- (Rupees Two Hundred Crore Only) divided into 200,000,000 (Twenty Crores Only) equity shares of Rs 10
(Rupees Ten Only) each.
The Company has not yet filed the SH 7( Notice to Registrar for alteration of Share Capital), pursuant to section 64 (1) of the
Companies Act, 2013 and pursuant to Rule 63 of the Companies Rules, 2014
Management’s Reply:
The Company took note of the matter and considers the same as priority. Management assured the pending fee will be repaid
on immediate basis.”
d. Internal Auditors
Pursuant to the provisions of Section 138 of the Companies Act, 2013 read with Rule 13 of The Companies (Accounts)
Rules 2014 and based on the Audit Committee recommendations, the Board of Directors of the Company have
appointed of Mr. Ranjit Kumar Barik, as the Internal Auditor of the Company for the financial year 2018-19.
18. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

The Details of Loans, Guarantees and Investments covered under the provision of the Section 186 of the Companies Act, 2013
are given in the notes of Financial Statements.
19. SUBSIDIARIES, ASSOCIATE AND JOINT VENTURE COMPANIES & CONSOLIDATED FINANCIAL
STATEMENTS
During the year under review, the Company has only 1 subsidiary i.e. Maithan Ispat Limited material unlisted subsidiary.
Pursuant to Section 129(3) of the Companies Act, 2013 and Accounting Standard issued by the Institute of Chartered
Accountants of India, Consolidated Financial Statements presented by the Company include the Financial Statements of its
Subsidiary. Consolidated Financial Statements form part of this Annual Report. Statement containing the salient feature of the
financial statement of the Company’s subsidiaries in Form AOC-1 is enclosed as Annexure-C.
In terms of provisions of Section 136 of the Companies Act, 2013, the Company shall place separate audited accounts of the
Subsidiary Companies on its website at www.mescosteel.com.
20. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

During the year under review, the Company entered into contracts or arrangements with related parties which were in the
ordinary course of business and on arm’s length basis. All related party transactions are placed before the Audit Committee for
review on a quarterly basis. The details of the related party transactions as required under Accounting Standard are set out in
Notes to the standalone financial statements forming part of this Annual Report.
No transaction with the related party is material in nature except transaction which was approved by Shareholders at 25th
Annual General Meeting held on September 30, 2018, in accordance with Company’s Related Party Transaction Policy and
Regulation 23 of LODR Regulations. As required under Regulation 46 (2) (g) of LODR, the Related Party Transaction Policy
and Company’s Material Subsidiary Policy is disclosed in the Company’s website i.e. www.mescosteel.com
The details of the related party transactions as required under Section 134(3)(h) r/w Rule 8 (2) of the Companies (Accounts)
Rules, 2014 and under Regulation 34(3),Para A of Schedule V of SEBI(LODR) Regulations, 2015 is as per Form AOC 2 is
enclosed as Annexure – D.
21. CONVERSION OF LOAN INTO EQUITY

During the year under review, your Board decided to convert amount due toward unsecured loan of Mrs Rita Singh, Mr Jitendra
Kumar Singh , Mrs Natasha Sinha and Mrs. Shipra Rana promoters of the Company on preferential basis to proposed allotees
into Equity Shares of the Company.
Further, Company has filed application for in-principal approval for issue of allotment of Equity Shares to be issued on a
preferential basis under Regulation 28 (1) of the SEBI ( Listing Obligations and Disclosures Requirements) Regulations, 2015.
The Company has not yet received the In-principal approval from SEBI.
19
22. MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE
COMPANY
There were no material changes and commitments affecting the financial position of the Company between the end of the
financial year of the Company to which the financial statements relate and the date of the report and the date of this Report
except to the extent disclosed below.
• The Hon’ble Supreme Court vide judgment dated August 2, 2017 in Common Cause vs Union of India & Ors., Writ
Petition No. 114 of 2014 upheld the calculation made by Central Empowered Committee (“CEC”) and had directed
all the mine lease holders to pay the entire amount by December 31, 2017, failing which the mining operations of
the mine lease holders will be closed by the State of Odisha. As per this judgment our Company had come under
the violation of production in excess of environmental clearances and as per the CEC calculations had to pay
approximately ₹ 925 Crores.
• Mining operations of Mideast Integrated Steels Limited (herein after referred to “MISL”) mines situated at Roida-I
has been closed from December 31, 2017 till the time company makes the payment of the compensation as passed
in the order dated August 2, 2017 passed by the Hon’ble Supreme Court in Common Cause Vs Union of India &
Ors., Writ Petition No. 114 of 2014 due to non-payment of aforesaid compensation amount. The Company was
supposed to make the payment of this compensation on or before 31st December 2017, failing which the mines of
the Company are closed down wef 1st January 2018. The Company has filed a ‘Curative petition’ (Civil) on 28th
March 2018, before the Honorable Supreme Court of India challenging the Judgment and which is still pending.
23. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
AND OUTGO
The information on conservation of energy, technology absorption and foreign exchange earnings and outgo stipulated under
Section 134(3) (m) of the Companies Act, 2013 read with Rule 8 of The Companies (Accounts) Rules, 2014, is annexed
herewith as Annexure-E
24. RISK MANAGEMENT POLICY
The Board of Directors has constituted a Risk Management Committee which is entrusted with the responsibility of overseeing
various strategic, operational and financial risks that the Organisation faces, along with the adequacy of mitigation plans to
address such risks. There is an overarching Risk Management Policy in place that was reviewed and approved by the Board.
25. CORPORATE SOCIAL RESPONSIBILITY
The CSR Committee consists of three directors including two Independent Director. The CSR Committee has formulated a
CSR policy of the Company for undertaking the activities as specified in Schedule VII of the Companies Act, 2013. The Said
policy has been approved and adopted by the Board of directors of the Company, the contents of which have been displayed
on the Company’s website. (Weblink: www.mescosteel.com).The Annual Report on CSR activities initiated and undertaken by
the Company during the year under review is annexed herewith as an Annexure-F.
26. PERFORMANCE EVALUATION
During the year, the evaluation of the annual performance of individual directors including the Chairman of the Company and
Independent Directors, Board and Committees of the Board was carried out under the provisions of the Act and relevant Rules
and the Corporate Governance requirements as prescribed under Regulation 17 of Listing Regulations, 2015 and the circular
issued by SEBI with respect to Guidance Note on Board Evaluation from time to time.
In a separate meeting of Independent Directors, performance of Non Independent Directors and performance of the Board as
a whole was evaluated. Further, they also evaluated the performance of the Chairman of the Company, taking into account the
views of the Executive Directors and Non-executive Directors.
27. DIRECTORS OR KEY MANAGERIAL PERSONNEL
During the year under review, in accordance with the provisions of the Companies Act, 2013 and Articles of Association of the
Company, Mrs. Natasha Sinha, Joint Managing director retires by rotation at the ensuing Annual General Meeting and being
eligible, offers herself for reappointment.
During the year under review, Ms. Sandhya Sethia, Company Secretary and Compliance Officer of the Company resigned
w.e.f 30th September, 2018. In lieu of the vacancy caused by resignation of Ms. Sandhya, Board of Directors have appointed
Mr Pawan Kumar Thakur, as Company Secretary and Compliance Officer and designated as Key Managerial Personnel of the
Company w.e.f 14th February, 2019.
Further Mr. S N Kambalii had also tender his resignation from the post of Executive Director as well as Chief Executive Officer
of the Company w.e.f 21st June, 2019.
From 01.04.2019 three Independent Directors who are Mr. Nandnandan Misra, Mr. Debi Prasad Bagchi and Mr. Madhukar
has submitted their resignation pursuant to the amendments in SEBI (LODR) Regulations, pursuant to which any director who
attains the age of 75 years will not be able to continue as Director of the Company.
20
Board of directors acknowledged the contribution made by all three Independent Directors of the company in the growth
and progress of the company. Board has also appreciated the contribution made by them in improving the working of the
Company.
In pursuance to resignation submitted by the above 3 directors, board had recommend the name of Mr. Hawa Singh Chahar, as
Additional Independent Director subject to approval of Members in the upcoming Annual General Meeting of the Company.
28. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS OR
TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY’S OPERATIONS IN FUTURE
There are no significant and material orders passed by the regulators or courts or tribunals which impact the going concern
status and Company’s operations in future except to the extent disclosed regarding Supreme Court judgment dated August 2,
2017 in Common Cause vs Union of India & Ors., Writ Petition No. 114 of 2014 as detailed above
29. INTERNAL FINANCIAL CONTROLS
Details of internal financial control and its adequacy in compliance with the provisions of Rule 8 (5)(viii) of Companies (Accounts)
Rules, 2014 are included in the Management Discussion and Analysis Report, which forms part of this Report.
30. DISCLOSURE AS PER THE SEXUAL HARRASMENT OF WOMEN AT WORKPLACE (PREVENTION,

PROHIBITION AND REDRESSAL) ACT, 2013
The Company has adopted a policy on prevention, prohibition and redressal of sexual harassment at workplace in line with the
provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules
thereunder. During the financial year ended March 31, 2019 no complaint pertaining to sexual harassment was received by
the Company. Further company confirms that the company has complied with provisions relating to the constitution of Internal
Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,
2013
31. AUDIT COMMITTEE

The details pertaining to the composition of the audit committee are included in the Corporate Governance Report, which is a
part of this report.
32. PARTICULARS OF EMPLOYEES

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act read with Rule 5(1) of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 are provided as Annexure G to this
report.
In terms of the provisions of Section 197(12) of the Act read with Rules 5(2) and 5(3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, a statement showing the names and other particulars of the employees
drawing remuneration in excess of the limits setout in the said rules forms part of this Annual Report and is attached as
Annexure-H
33. STAKEHOLDERS RELATIONSHIP COMMITTEE

The details pertaining to the composition of the Stakeholder Relationship committee are included in the Corporate Governance
Report, which is a part of this report.
34. RECONSTITUTION OF RISK MANAGEMENT COMMITTEE

During the year under review, the Board reconstituted the Risk Management Committee comprises the followings:
Mr. Hawa Singh Chahar –Non-Executive Independent Director, (Chairman)
Mrs. Natasha Sinha, Jt. Managing Director (Member)
Mrs. Rita Singh – Chairman Cum Managing Director (Member)
35. RECONSTITUTION OF SHARE ALLOTMENT CUM OPEARIONAL COMMITTEE

During the year under review, the Board reconstituted the Share Allotment Cum Operational Committee comprises the
followings:
Mr. Hawa Singh Chahar –Non-Executive Independent Director, (Chairman)
Mrs. Natasha Sinha, Jt. Managing Director (Member)
Mrs. Rita Singh – Chairman Cum Managing Director (Member
21
36. WHISTLE BLOWER POLICY AND VIGIL MECHANISM
Your Company recognizes the value of transparency and accountability in its administrative and management practices. The
Company promotes the ethical behavior in all its business activities. The Company has adopted the Whistle Blower Policy and
Vigil Mechanism in view to provide a mechanism for the directors and employees of the Company to approach Audit Committee
of the Company to report existing/ probable violations of laws, rules, regulations or unethical conduct.The Whistle Blower
Policy has been posted on the website of the Company (www.mescosteel.com)
37. CORPORATE GOVERNANCE

Report on Corporate Governance and Certificate of Practicing Company Secretary regarding compliance of the conditions of
Corporate Governance as stipulated in Part C of Schedule V of the SEBI (LODR) Regulations, 2015 are enclosed as part of
this report.
38. COMPLIANCES WITH SECRETARIAL STANDARDS

During the year, the Company is in compliance of both erstwhile and revised Secretarial Standard -1 (Meetings of the Board of
Directors), Secretarial Standard-2 (General Meetings) effective from 1st October, 2018.
39. FRAUD REPORTING

There have been no frauds reported by the Auditors of the Company to the Audit Committee or the Board of Directors under
sub-section (12) of section 143 of the Companies Act, 2013 during the financial year.
40. ACKNOWLEDGEMENTS
The Board expresses its sincere gratitude to the shareholders, bankers/lenders, Investors, vendors, State and Central
Government authorities and the valued customers for their continued support. The Board also wholeheartedly acknowledges
and appreciates the dedicated efforts and commitment of all employees of the Company.

Rita Singh
Chairperson Cum Managing Director
DIN: 00082263
Place : New Delhi
Date : 21.06.2019
22
Annexure A
Statement on Impact of Audit Qualifications for the Financial Year ended March 31, 2019 [See Regulation 33 / 52 of the
SEBI (LODR) (Amendment) Regulations. 2016
Statement on Impact of Audit Qualifications for the Financial Year ended March 31, 2019 [See Regulation 33 / 52 of
the SEBI (LODR) (Amendment) Regulations, 2016]
Sl. No. Particulars Audited Figures Adjusted Figures (audited figures
(as reported before adjusting after adjusting for qualifications)
for qualifications)
(Rs. In Million)
I. Turnover / Total income 8702.37 8702.37
Total Expenditure 8490.31 8490.31

Net Profit/(Loss) (38.62) (38.62)
Earnings /(Deficit) Per Share (0.28) (0.28)
Total Assets 16583.54 16583.54
Total Liabilities 9984.79 9984.79
Net Worth 6598.73 6598.73
Any other financial item(s) (as felt ap- - -
propriate by the management)
II Audit Qualification (each audit qualification separately):
(a) Details of Audit Qualification: 1. In pursuance to the judgment dated 2nd August, 2017 of Honorable Su-
preme Court of India, in the matter of Writ Petition (Civil) No. 114 of 2014
between Common Cause v/s Union of India & Others, there is a penalty
imposed of Rs 924 crores along with interest on the company for excess
production of Iron Ore during 2000-01 to 2010-11. The Company was
supposed to make the payment of this compensation on or before 31st
December 2017, failing which the mines of the Company are closed
down wef 1st January 2018. The Company has filed a ‘Curative petition’
(Civil) on 28th March 2018, before the Honorable Supreme Court of In-
dia challenging the Judgment and which we have been informed is still
pending. Hence, no provision has been made for the same in the books
of accounts. However, in our opinion, this penalty has been crystalized
and accordingly, a provision should have been made in the books to the
extent of Rs. 924 crores along with interest upto date.
2. Balance confirmations and bank statements have not been provided to
us for some banks accounts and loans. Details are as per Annexure III
attached herewith.
3. The deferred tax working has not been shared with us, hence we are
unable to comment upon the correctness of the same, as on 31st March
2019.
4. The Company has an investment of Rs 179.88 crores in its Subsidiary,
Maithan Ispat Limited. Based on the financials of its subsidiary, the Net
worth is negative and the liabilities exceed the assets of the subsidiary
company. In the absence of any impairment testing done, we are unable
to comment on the investment value taken in the Company’s books.
Emphasis of Matter 1. Balances of Debtors, creditors, loans & advances received & given
and deposits received & given are subject to confirmations and reconcili-
ations.
2. In the absence of complete details and documentation for additions
made to Capital Work in progress, we are unable to comment on the
same.
3. In our opinion, a provision for doubtful debts of Rs 8.87 crores needs
to be made against the balances of non moving old Debtors & Credi-
tors (where advances have been given by the Company), as on 31st
March 2019. No litigation has been initiated by the Company on these
balances.
4. In the absence of complete stock valuation details, we are unable to
comment on the stock valuation taken as on 31st March 2019.
23
(b) Type of Audit Qualification Qualified Opinion and Emphasis of Matter / Disclaimer of Opinion /
Adverse Opinion
(c) Frequency of qualification Appeared First Time
(d) For Audit Qualification(s) Impact has been not been quantified by the Auditor in their Report to
where the impact is quantified the Members
by the auditor: and the , Man-
agement’s Views on same
(e) For Audit Qualification(s) Presently Impact of these qualification/emphasis of matter can not
where the impact is not be quantified; Management view on the Audit Qualification and Em-
quantified by the auditor phasis of Matter are as under:
(i). Management’s estima- 1. The curative petition with Hon’ble Supreme Court of India is still
tion on the impact of audit pending to be finalized. Further Management is of the view that
qualification: the grounds on which penalty was imposed is not so severe and
Company expects to have a positive judgment from the Hon’ble
(ii). If management is unable
Court. Company already has stock of worth of Rs. 500 crore at
to estimate the impact,
mine which is adjustable against the penalty.
reasons for the same:
2. Management is in process to confirmation/reconciliations of bal-
(iii). Auditors’ Comments on
ances of certain secured and unsecured loan and borrowings,
(i) or (ii) above.
balances with banks including certain fixed deposits, trade re-
ceivables, trade payables. Company is certain that on confirma-
tion/reconciliation there will not be any material impact on the
state of affairs of the company. Management has not provided
bank statements of only two bank accounts which is not opera-
tional and have negligible balances. Further Management as-
sured to provide the same by next week.
3. Company is in process of ascertaining the correct value of as-
sets in the market and accordingly carrying out the deferred
tax.
4. Management is of the view that in upcoming year 2019-20, it’s
proposed to revive the plant. Further its worth mentioning here
that assets of the company are in good condition and company
is in niche products/heavy sections which a very high margin
products. Further the fair value of the assets are higher than the
carrying value therefore as per the management view the im-
pairment of assets is not required at this stage. Valuer has been
appointed by the Banker of Maithan Ispat Limited and valuation
is under process, the report is yet to come.
Emphasis of Matter
1. Company is in process to receive the balance confirmation from
Debtors, creditors and some loan and advance as given and
received and/or for the deposits received and given, as soon
as same will be received by the company, the details will be
shared with the Auditors. Further management is of certain view
that on confirmation/reconciliation of the balances, there will not
be any material impact on the state of affairs of the company.
Confirmation are not available where there is dispute between
companies and parties.
2. All records are available at the site bearing very few docu-
ments.
3. Management is very much confident of getting realization,
hence not provided.
4. Stock as per the management verification has been taken and
physical verification is being carried out.
24
Auditors comments on (i) and 1. In view of the pending curative petition before the Supreme
(ii) above Court, we are unable to comment till the disposal of cura-
tive petition.
2, 3 & 4: In the absence of required documents, we are unable to
give the comments.
Emphasis of Matter:
1, 2& 4: In the absence of required documents, we are unable to give
the comments.
3.: The management is of the opinion necessary recoveries
will be made.
Signatories:
• Chairman & Managing Director (Rita Singh)
• Chief Financial Officer (Natasha Sinha)
• Audit Committee Chairman (Hawa Singh Chahar)
• Statutory Auditor (Arun Todarwal)

For Arun Todarwal & Associates LLP
ICAI Reg No.: W100291
Place: New Delhi

Date: 21st June, 2019
25
Annexure B
FORM NO. MR-3

SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED ON March 31, 2019
Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and
Remuneration Personnel) Rules, 2014
To,
The Members,
H-1, Zamrudpur, Kailash Colony,
New Delhi-110048
I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good
corporate practices by Mideast Integrated Steels Limited (hereinafter called the Company or MISL). Secretarial Audit was
conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/statutory compliances and
expressing our opinion thereon.
Based on my verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained
by the Company and also the information provided by the Company, its officers, agents and authorized representatives during the
conduct of secretarial audit, I hereby report that in my opinion, the company has, during the audit period covering the financial year
ended on March 31, 2019 complied with the statutory provisions listed hereunder and also that the Company has proper Board-
processes and compliance- mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns filed and other records maintained by MISL for the financial
year ended on March 31, 2019 according to the provisions of:
1. The Companies Act, 2013 (the Act) and the rules made thereunder;
2. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;
3. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
4. The Securities and Exchange Board of India ( Depositories and Participants) Regulations, 2018
5. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct
Investment, Overseas Direct Investment and External Commercial Borrowings;
6. The Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’) viz. :-
a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
c. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993
regarding the Companies Act and dealing with client;
7. Other Laws specifically applicable to the Company as per the representation made by the Company.
I have also examined Compliance with the following:
i) The Listing Agreements entered into by the Company with Stock Exchanges along with SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015;
ii) Secretarial Standards SS-1 and SS-2 issued by The Institute of Company Secretaries of India.
I further report that during the year under review there are no actions or events in pursuance of the following:
i) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;
ii) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase
Scheme) Guidelines, 1999;
iii) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
iv) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998;
On the basis information provided by the Company and on the basis of representation and explanation made by the
management I report that during the period under review the Company has generally complied with the provisions of the Act,
Rules, Regulations, Guidelines, Standards, etc. mentioned subject to following observations:
26
1. In terms of Securities and Exchange Board of India Circular No. Cir/ISD/3/2011, the 100 percent Promoter’s holding is to be in
dematerialized form. Promoter holding is not in 100% Demat form.
I further report that the Board of Directors of the Company is duly constituted with proper balance of Executive Directors,
Non-Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that took place
during the period under review are carried out in compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda are sent
at least seven days in advance, and a system exists for seeking and obtaining further information and clarifications on the
agenda items before the meeting and for meaningful participation at the meeting.
Majority decision is carried through while the dissenting members views are captured and recorded as part of the minutes.
I, further report that there are adequate systems and processes in the company commensurate with the size and operations
of the company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
I further report that during the audit period there are no action having a major bearing on the company’s affairs in pursuance
of the above referred laws, rules, regulations, guidelines, standards, etc. except as follows:
a) Special Resolutions are passed by the members at the Annual General Meeting of the company held on September 30, 2018
to :
• authorize Board of Directors of the company under section 180(1)(c )of the Companies Act, 2013 to borrow money
from time to time, any sum or sums of monies which together with the monies already borrowed by the Company
may the aggregate of the paid-up capital of the Company and its free reserves provided that the total amount so
borrowed by the Board shall not at any time exceed Rs. 5,000 crore/- (Rupees Five thousand Crore only) or the
aggregate of the paid-up Capital and free reserves of the Company, whichever is higher.
• authorize Board of Directors of the company under section 180(1)(a) of the Companies Act, 2013 to create mortgage,
charge and hypothecation on the assets of the company subject to limit approved under section 180 (1) (c) of the
Companies Act, 2013, together with the existing mortgage, charge and hypothecation created by the company on
the Assets of the company.
• authorize Board of Directors of the company to give loans to any person or other body corporate or (ii) give any
guarantees or to provides security in connection with loan to any other body corporate or persons or (iii) acquire
by way of subscription, purchase or otherwise , the securities of any other body corporate exceeding sixty percent
of company’s paid-up Capital, its free reserves and securities premium account or one hundred per cent of its free
reserves and securities premium account whichever is more provided that the total loans or investments made,
guarantee given and securities provided shall not exceed Rs. 3,000/- Crore ( Rupees Three Thousand Crore).
• authorized Board of Directors to create, issue and allot on preferential basis (“Preferential issue”) upto Mrs Rita
Singh, Mr Jitendra Kumar Singh, Mrs Natasha Sinha and Mrs Shipra Singh , the promoters ( “proposed allottees”)
up to maximum of Rs. 26,00,00,000 (67, 67, 951) Equity Shares of face value of Rs. 10/- ( Rupees Ten) at a price
of Rs. 38/- ( Rupees Thirty eight) per share including premium of Rs. 28/- ( Rupees Twenty Eight only) per equity
shares aggregating to Rs. 25,71,82,133 ( Rupees Twenty Five Crores Seventy One Lakhs Eighty Two Thousand
One Hundred and Thirty Three) or price not less than price to be calculated in accordance with the Regulation 76 of
SEBI ICDR Regulations upon the conversion of unsecured loan outstanding as on date of the respective proposed
allottes.
• to alter the Memorandum of Association of the company under section 61 of the Companies Act, 2013 by
increasing the Authorised Share capital of the company from Rs 1,400,000,000/- (Rupees One Hundred Forty
Crore Only) divided into 140,000,000 (Fourteen Crore Only) equity shares of Rs. 10 (Rupees Ten Only) each to Rs
2,000,000,000/- (Rupees Two Hundred Crore Only) divided into 200,000,000 (Twenty Crores Only) equity shares of
Rs 10 (Rupees Ten Only) each.
The Company has not yet filed the SH 7( Notice to Registrar for alteration of Share Capital), pursuant to section 64 (1) of the
Companies Act, 2013 and pursuant to Rule 63 of the Companies Rules, 2014
b) Company has pledged 114,75,000 Equity Shares, of Rs. 10 each, holding in Maithan Ispat Limited, which constitute as 51%
Equity Shares of Maithan Ispat Limited with SBI CAP Trustee for securing the Borrowing taken by Maithan Ispat Limited, which
is also a material subsidiary of the Company.
For R.S.B Associates
Company Secretary
FCS ROBINDERPALL SINGH BATTH

Date: 06 th May 2019 Practicing Company Secretary
Place: Bhubaneswar CP NO. 3836
The report is to be read with our letter of even date which is annexed as Annexure-A and forms integral part of this report
27
Annexure-A
To,
The Members,
H-1, Zamrudpur, Kailash Colony,
New Delhi-110048
My report of even date is to be read along with this letter.
1. Maintenance of Secretarial record is the responsibility of the management of the Company. Our responsibility is to express an
opinion on these secretarial records based on our audit.
2. I have followed the audit practices and process as are appropriate to obtain reasonable assurance about the correctness of
the contents of the Secretarial records. The verification was done on test basis to ensure that correct facts are reflected in
Secretarial records. I believe that the process and practices, I followed provide a reasonable basis for our opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the Company.
4. Wherever required, I have obtained the Management representation about the Compliance of laws, rules and regulations and
happening of events etc.
5. The Compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. Our examination was limited to the verification of procedure on test basis.
6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness
with which the management has conducted the affairs of the Company

For R.S.B Associates
Company Secretary
FCS ROBINDERPALL SINGH BATTH

Date: 06 th May 2019 Practicing Company Secretary
Place: Bhubaneswar CP NO. 3836
Annexure C
Statement containing salient features of the financial statement of subsidiaries/associate companies /joint ventures (Pursuant
to first proviso to sub section (3) of section 129 read with Rules 5 of Companies (Accounts) Rules, 2014.
Part A Subsidiary : Maithan Ispat Limited
Particulars 2018-19 2017-18

Reporting currency In Mn In Mn
Reporting Period 31.3.2019 31.3.2018
Share capital 3251.38 3,251.38
Reserves & surplus (3,914.66) (2,699.32)
Total assets 7382.48 8,426.48
Total Liabilities 7382.48 8,426.48
Investments 0.03 0.03
Gross Turnover 4318.91 5,980.66
Profit/ (Loss) Before Tax (1,214.51) (875.19)
Tax Provision - 0.73
Profit/(Loss) After Tax (1,214.51) (874.45)
Dividend for the year - -
% of shareholding 99.60 99.60
28
Annexure D
FORM AOC-2
Particulars of Contracts/arrangements made with Related Parties pursuant to Clause (h) of Sub-section (3) of Section
134 of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014
1. Details of contracts/arrangements or transactions not at arm’s length basis:
There were no contracts or arrangements or transactions entered into during the year ended March 31, 2019 which were
not at arm’s length basis.
2. Details of material contracts/arrangements or transactions at arm’s length basis
A. Related Party Transactions with Maithan Ispat Limited
a. Name(s) of the related party and nature of relationship: Maithan Ispat Limited is subsidiary of the Company.
b. Nature of contracts / arrangements / transactions: Purchase and sale of blooms, billets, sponge iron, pig
iron, scarp, coal or any other goods and all other type of services.
c. Duration of the contracts / arrangements / transactions: September 30, 2018 till September 30, 2019.
d. Salient terms of the contracts or arrangements or transactions including the value, if any: In tune with best
negotiated terms/market price upto an amount not exceeding ` 500 Crores.
e. Date(s) of approval by the Board and shareholders, if any: Shareholders Approval- September 30, 2018
f. Amount Paid as advance, if any: Nil
B. Related Party Transactions with Mesco Steels Limited
a. Name(s) of the related party and nature of relationship: Mesco Steels Limited, Mrs. Rita Singh and Mrs.
Natasha Sinha are common directors holding more than 2% of paid up capital of Mesco Steels Limited.
b. Nature of contracts / arrangements / transactions: Purchase and sale of goods and all other type of services
c. Duration of the contracts / arrangements / transactions: September 30, 2018 till September 30, 2019.
d. Salient terms of the contracts or arrangements or transactions including the value, if any: In tune with
best negotiated terms/market price upto an amount not exceeding ` 250 Crores.
e. Date(s) of approval by the Board and shareholders, if any: Shareholders Approval- September 30, 2018
f. Amount Paid as advance as outstanding as on 31.03.2019, if any: ` 2135.70 Million
Annexure E
Particulars of Conservation of Energy, Technology absorption and Foreign earnings and outgo
A) Conservation of Energy:
Sinter Plant:
i) Waste heat of sinter cooler machine is being utilized at sinter machine bed to save coke-breeze in green mix. Savings is 4.6
ton / day.
Blast Furnace:
i) Injection of high alumina mass in between furnace refractory and its shell to reduce heat loss. Savings in terms of coke is 1.0
Kg / thm.
ii) The running life of the main trough runner has been increased from 42 days to 60 days by implementing upgraded materials
and better workmanships.
Plant Canteen:
i) By installing sewage treatment plant (STP), waste water is recycled and reused in plant process. Savings is appx. 20 m³/day.
ii) Re-use of Cooling Tower Blow down water in GCP Clarifier, savings 103 m3/day.
CPP:
i) Cooling tower blades has been replaced from aluminum blade to FRP fan. Savings is 10.9 lakhs / annum.
ii) Maintaining power factor at 0.98 for an average, resulted savings of Rs. 55,000 / month.
B) Foreign Exchange Earnings And Outgo ( ` In Mn)
Particulars 2018-19 2017-18

Foreign Exchange Earned 5.73 16.10
Foreign Exchange Used 39.90 11.26
29
Annexure F
Annual Report on Corporate Social Responsibility (CSR)
Pursuant to Rules 8 & 9 of (Companies Corporate Social Responsibility Policy) Rules, 2014 for the Financial Year 2018-19
1. A brief outline of the Company’s CSR policy
Your Company has been actively involved in activities for the betterment of the community. The Company has identified
health, education & livelihood, animal welfare, rural development projects and social causes as the areas where
assistance is provided on a need-based and case-to-case basis. Your Company persisted with participation in such
activities at the local, grass root level during the year. Company’s CSR Policy is available on the weblink: http:// mescosteel.
in/csr.php?page=initiative.
2. Composition of the CSR Committee:
Name of Director Category Nature of Directorship
Mr. Debiprasad Bagchi* Chairman Independent Director

Mr. Nandanadan Mishra** Member Independent Director
Mrs. Natasha Sinha Member Whole-Time Director
Mr. Hawa Singh Chahar*** Chairman Non-executive Independent Director
Mrs Rita Singh**** Member Chairman & Managing Director
*Resigned w.e.f. 01.04.2019
**Resigned w.e.f 01.04.2019
***. Appointed w.e.f 21.06.2019
**** Appointed w.e.f 21.06.2019
3. Average net profit of the Company for the last 3 Financial Years: ` 169.14 Million
4. Prescribed CSR expenditure (2% of the amount as in item 3 above): ` 3.38 Million
5. Details of CSR spent for the financial year:
a) Total amount to be spent for the Financial Year: ` 3.38 Million.
b) Total amount spent for the Financial Year: ` 21.61 Million
c) Amount unspent, if any: Nil
6. Manner in which the amount spent during the financial year is detailed below: ( ` In Mn)
CSR projects / Activities Sector in Location Amount Amount Cumulative Amount

which the where outlay(budget) Spent Expenditure Spent
Project is project is Project / Project/ upto Directly or
Covered undertaken Programs Wise Programs reporting through
Wise (mn) period agency
Promoting Sanitation & Health care by Health & Od- Direct

conducting projects and programmes Hygiene isha ( Gram 1.48
as follows:- Panchayat-
• Preventive health care and medical Bhadra-
camps sahi, Barbil
• Ambulance service to the community and Jajpur)
at all times 24* 7.
• For Government run Community
Health Centre (CHC), housekeeping
services are being provided for better
facilities and hygienic environment.
Enabling the provision of safe drinking Health & Od- Direct

water to the community Hygiene isha ( Gram 0.06
• Facilitating the electricity connection Care Panchayat-
of the bore well pumps and providing Bhadrasa-
water through tankers. hi, Barbil)
30
CSR projects / Activities Sector in Location Amount Amount Cumulative Amount

which the where outlay(budget) Spent Expenditure Spent
Project is project is Project / Project/ upto Directly or
Covered undertaken Programs Wise Programs reporting through
Wise (mn) period agency
Supporting Education Services by Education Odisha Direct

providing the following services:- (Barbil and 0.16
• Financial assistance to School Jajpur)
Management Committees in schools
for engaging 4 private teachers, for
taking regular and remedial classes.
Skill Development projects in form of :- Odisha Direct
• Basic training of stitching to unem- (Village 0.05
ployed women. Serenda in
Barbil)
• Carrying on Animal Welfare activities Animal Wel- New Delhi 19.86 Through
as per the details given below:- fare Krishna
• Providing shelter to more than 800 Ashram
dogs and daily feeding of 250 dogs
in the vicinity of the shelter.
• Providing quality care, good food and
timely medical care to the resident
dogs.
• Rescue small and large stray/aban-
doned animals and provide medical
treatment and quality care.
• Big or small, all kind of surgery for
stray dogs and other animals.
• Full time OPD with ambulance ser-
vices.
• Sterilization of stray dogs and Anti
rabies vaccine programme for stray
dogs.
• Laboratory for blood testing and X
ray facility.
TOTAL 21.61
7. In case the Company has failed to spend the 2% percent of the average net profit of the last 3 Financial Years or
any part thereof, the Company shall provide the reasons for not spending the amount in the Directors’ Report.
Not applicable
8. Responsibility Statement
The CSR Committee confirms that the implementation and monitoring of the CSR Policy is in compliance with the CSR
objectives and Policy of your Company.
31
Annexure H
Particulars of Employees pursuant to Section 197 of the Companies Act, 2013 read with Rule 5(1) of the Companies
(Appointment And Remuneration of Managerial Personnel) Rules, 2014
1. Ratio of the each remuneration of director to the median remuneration of the employees of the company for
the financial year
Ratio of the remuneration of Whole-time Director to the median

Name of Director remuneration of the employees
Mrs. Rita Singh 42.73:1

Mrs. Natasha Sinha 50.32:1
Mr. S N Kambalii 12.63:1
2. Percentage increase in remuneration of each Director, Chief Financial Officer, Chief Executive Officer, Company
Secretary or Manager, if any, in the financial year
Directors/KMP % Increase
Directors Nil
KMP
Ms. Sandhya Sethia- CS* Nil
Mr. Pawan Kumar Thakur** Nil
Ms. Natasha Sinha-CFO Nil
Mr. S N Kambalii*** Nil
*Resigned from the post of Company Secretary w.e.f 30.09.2018

**Appointed as Company Secretary w.e.f 14.02.2019
***Appointed as Executive Director w.e.f 30.09.2018 and Resigned w.e.f 21.06.2019
3. Percentage increase in median remuneration of employees, if any, in the financial year: 15.37%
4. Number of permanent employees on the rolls of Company: 588
5. Average percentile increase already made in the salaries of employees other than the managerial personnel in the last
financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof
and point out if there are any exceptional circumstances for increase in the managerial remuneration:
Average %age : Non-Managerial – 15.37%
Average %age : Managerial - Nil
6. Key parameters for any variable component of remuneration availed by the directors: There is no variable
component in the remuneration
7. This is to affirm that remuneration is as per the remuneration policy of the Company.
32
Annexure I
Particulars of Employees pursuant to Section 197 of the Companies Act, 2013 read with Rule 5(2) of the Companies
(Appointment And Remuneration of Managerial Personnel) Rules, 2014:
Sl Name of Designation Remu- Nature of Qualification & Date of Com- Age Last Employ- % of relative
No Employee neration Employ- Experience mencement of ment held by equity of any
Received/ ment Employment such employee shares director
per month held by or man-
such ager
employ-
ee in the
com-
pany
1 Sanjeev President 833333 Managerial IAS (Retd.) 01.12.2016 58 Development
Nandwani - Global Commissioner-
Business SEZ
Develop-
ment
2 Raj Kedia President- 562578 Managerial B COM, Diploma 10.05.2005 57 AGM, KIC
Sales& (Management) Metalliks LTD.
Marketing
(MESCO I)
3 KBR Sood Director- 499838 Managerial Graduate in Me- 31.03.1993 84 GM, MECON,
Projects chanical Engg. Govt. of India
Enterprise prior
to join MESCO
4 Suresh President- 438750 Managerial BA 13.04.2009 54 AGM, Bhushan
Dhingra Sales& Steels Ltd.
Marketing
5 Vijay Gupta GM- F&A 402683 Managerial CA, EPGM - IIMB 21.11.2005 52 Bhansali
Engineering
Polymers, GM
6 Rajeev President- 400000 Managerial MBA 04.03.2010 55 Sr. Manager,
Moudgil* Business Reliance Com-
Develop- munications Ltd.
ment
7 Ram Sharan DGM- Fi- 377840 Managerial PGDM in Marketing 24.08.2017 38 EA to Director’s
Agarwal** nance & & Finance from Office (AGM,
Accounts IIM, Lucknow & B. Strategy ), Ut-
Sc. Engineering , tam Galva Steel
Metallurgical Engi- Limited
neering from NIT,
Jamshedpur.
8 Munu Jee VP- Com- 290000 Managerial Diploma in Material 01.08.2017 58 Assistant Vice
Dhar mercial & Management from President (Raw
Trading Indian Institute of Materials), Bhu-
Materials Manage- san Steel Ltd
ment , B. Sc. &
M.Sc.
9 S N Kam- VP-Mines 280050 Managerial B Tech(Mining) 05.12.2016 50 VP-Essel
balii*** Mining
10 Digamber VP- Works 275000 Managerial B Tech(Mechanical) 20.08.2012 53 DGM - CPP,
Panda Birla Tyres Ltd., B
Tech(Mechanical),
Energy
Auditor(BEE),
BOE
*Note: Mr. **Note: Mr. ***Note: Mr
R . K Moud- Ram Agrawal S.N. Kam-
gil already already bali already
resigned resigned resigned
& left the & left the and left the
Company on Company on Company on
Dt.30.04.2019 Dt.02.05.2019 21.06.2019
33
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE AND DEVELOPMENT
From its position as the third largest steel producer in 2017 to the second largest producer of crude steel in 2018, India
has definitely seen a positive slope. The nation’s investment in the infrastructure sector is the biggest contributor to its
steel sector growth. The overall steel consumption in India in 2017-18 stood at a healthy 7.8%. According to a report by
the World Steel Association, India produced 79.6 million tonnes of crude steel in the first nine months of 2018, reflecting a
growth of 6.1% as compared with that of previous year. The government’s policy guidelines address the need to create a
conducive environment to improve the efficiency and productivity of the steel sector. Post 2017 National Steel Policy, the
sector embarked upon a capacity expansion spree. By 2030, the capacity is expected to reach 300 mntpa. This will drive the
per capita steel consumption from approximately 61 kg to 160 kg. Recently, this sector has also seen major consolidations.
This has made it easy for global players to enter the domestic markets. According to the Department of Industrial Policy and
Promotion (DIPP), the Indian metallurgical industries attracted FDI to the tune of USD 10.84 billion in the period between
April 2000 and June 2018. According to a report by the World Steel Association, the demand for steel in India is expected to
grow by 7.3% in 2019.
Performance highlights - Indian Steel Industry

(Source: Joint Plant Committee Report, March 2019)
• Steel demand growth at 7.5% y-o-y (to 97.5 MnT) outpaced production growth at 3.3% y-o-y (to 106.6 MnT) in FY
2018-19.
• Total finished steel imports rose 4.6% to 8.8 MnT, displacing 15% of flat steel demand, 9% of total Indian steel
demand.
• Indian exports plummeted 26% to 8.5 MnT in FY 2018-19 due to increased protectionism across the world.
• Per capita steel consumption rose from 69 kg to 73kg; demand for flat products grew 4.2% while that for long
products grew 10.4%. The share of flat and long products remained unchanged at 46% and 54%.
OPPORTUNITY AND THREATS

Several initiatives in the construction, infrastructure and automotive space has forward and backward linkages with the steel
industry. These links will catalyst the country’s total steel demand in the next fiscal.
The fortune of the steel industry is proportionate to the swings in other sectors such as automobile, infrastructure, consumer
durable, sectors that generate high steel demand. Availability of raw materials and cheap labour makes this industry cost
effective. The country produces its own iron ore as well. The country’s steel demand has been on a rise. However, the country
witnessed unprecedented steel imports from several countries such as China, Japan, Russia and South Korea. Free trade
agreement between India and Japan and South Korea eased the process of steel imports.
Consequently, the domestic steel industry suffered resulting in high price cuts. The growing imports into India on account of
trade diversion are matter of concern. Since, certain trade remedial actions have become irrelevant, imposition of safeguard
duty is the need of the hour to stop such imports and corresponding injury to the domestic industry. The government is
expected to continue its long-term vision of giving impetus to the steel industry. Since the steel industry is closely linked to
other industries, development of steel industry influences the national economic development.
OPPORTUNITIES:
The renewed importance given by Government on affordable housing, roads, sagarmala projects and other infrastructure
projects are expected to create steel demand, this will augur well for sponge iron industry also. As per the National steel policy
crafted during FY 2017-18, the crude steel production target for India is set at 300 MT by 2030. Share of sponge iron in steel
making will be 80 MT, which will create huge opportunity for sponge iron industry.
THREATS
Presently there are no visible threats in the short and medium term in the sponge iron industry. Availability of scrap and its
import will be an issue for sponge iron consumption and will affect the demand. Iron ore and coal prices will also play a key
role in profitability as its availability will be an issue if there are closure of mines
OUTLOOK
Post elections and stable Government, it is expected that thrust on infrastructure projects will renew. Also liquidity infusion
and project finance will become easier and spurt growth in housing and infrastructure sectors. This will lead to remunerative
prices and business sustainability. India continues to remain a bright spot and has the distinction of witnessing the highest
growth rate in steel consumption among major steel consuming markets. This, admittedly, has also made India a magnet to
attract higher imports from steel surplus economies, especially from countries like Japan and South Korea who enjoy a Free
Trade Agreement.
34
In India, a strong momentum in government spending on infrastructure is driving an increase in Gross Fixed Capital Formation
(GFCF), this is likely to get an impetus with government policies. While IIP and manufacturing PMI have weakened recently,
and automotive and consumer durables production have corrected sharply, there is an expectation of improvement in H2
financial year 2020. Government is likely to take measures to spur investment and end user demand.
The government announced outlays of ₹ 1 lac crore in the Interim Budget is expected to spur rural spending and aid overall
consumer demand. Further expectations of a normal monsoon bode well for the rural demand. As a result, the Company
expects 6.5% - 7% steel demand growth for Financial Year 2020 in India.
RISK AND CONCERNS

Risk Management and Control System to ensure that the risks of the Company are identified and managed effectively.
The re-constituted management of the Company has adopted risk management framework for identifying and evaluating
risks and opportunities that may have bearing on the organisation. The Company recognizes that these risks need to be
managed and mitigated to protect the shareholders and other stakeholders’ interest.
Although the entire steel industry is under threat due to steel imports from China, Japan, South Korea and Russia yet
consumption in expected to rise due to the boost in infrastructure, construction and automobile sectors. The demand of steel
in the capital good sectors is expected to rise as well. The National Steel Policy, 2017, has envisaged 300 million tonnes of
production capacity by 2030. The Indian Government is giving increased focus to find new markets for Indian manufactured
steel, trying to shift industry’s attention towards special steel production and increasing per capital steel consumption.
INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

The internal control systems include documented policies, checks and balances, guidelines and procedures, that are
supplemented by robust internal audit processes and monitored continuously by periodical reviews by management to
provides reasonable assurance that all assets are safeguarded; transactions are authorized, recorded and reported properly.
Post-acquisition, the reconstituted Board/ Management is in the process of further strengthening the internal controls
framework with an objective to have a best-in-class internal control framework commensurate with the size, scale and nature
of business.
HUMAN RESOURCE AND INDUSTRIAL RELATIONS FRONT

The Human Resources department is committed to recruiting strong candidates and this commitment involves discussing
the needs of a department, advising on recruitment strategies, participating in the selection of the right candidate, checking
references and making job offers. As part of this process, Human Resources analyzes data such as the number of vacant
positions, the number of positions filled and the time it took to fill positions. Tracking this information helps to ensure quality
of service and leads to a better understanding of the time required to fill a position.
DETAILS OF SIGNIFICANT CHANGES IN THE KEY FINANCIAL RATIOS: The details of significant changes in the key
financial ratios during financial year 2018-19 as compared to the immediately previous financial year 2017-18 are given
below:
Particulars 2018-19 2017-18 Change

in %
Debtor Turnover Not calculated as no -

credit sale made
Inventory Turnover 5.63 1.87 3.76
Interest Coverage Ratio 4.63 1.90 2.73
Current Ratio 0.84 0.80 0.04
Debt Equity Ratio 0.12 0.08 0.03
Operating profit margin(%) 2.87 26.80 -23.93
Net Profit Margin (%) 0.18 5.15 -4.97
Return on Net Worth (%) 5.63 1.87 3.76
35
REPORT ON CORPORATE GOVERNANCE
Pursuant to Regulation 34(3) read with Section C of Schedule V to SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015
1. COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCE
Effective corporate governance practices constitute the strong foundation on which successful commercial enterprises are built
to last. The Company’s philosophy on corporate governance oversees business strategies and ensures fiscal accountability,
ethical corporate behavior and fairness to all stakeholders comprising regulators, employees, customers, vendors, investors
and the society at large.
The Company has a strong legacy of fair, transparent and ethical governance practices. The Company is trying its best to
follow the Code of Corporate Governance in letter and spirit. The Company believes that Corporate Governance is about best
practices of business to be imbibed into the culture of the organization and complying with value systems, ethical business
practices, laws and regulations to achieve the main objectives of the Company
The Board of Directors of the company pays highest importance on the philosophies of Corporate Governance. The company
is complying with the disclosure norms pursuant to relevant regulations 34 (3) read with Schedule V and other relevant
provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
(SEBI (LODR) Regulations, 2015).
2. BOARD OF DIRECTORS
a) Composition and Category of Directors: The Board consists of eminent persons with considerable professional
expertise in various fields of finance, banking, taxation, law etc. and has a balanced mix of Executive and Non-
Executive Independent Directors. As on 31st March, 2019 the Board comprises of three (3) Executive Directors
includes One Managing Director, Six (6) Non-Executive Independent Directors. Mrs. Rita Singh, Managing Director
is the chairperson of the Company and more half of Directors are Independent Directors. All the Independent
Directors of the Company at the time of their first appointment to the Board and thereafter at the first meeting of
the Board in every financial year gave a declaration that they meet with the criteria of independence as provided
under Companies Act, 2013 and Regulations 16 of SEBI (LODR) Regulations, 2015. During FY 2019, information
as mentioned in Part A of Schedule II of the SEBI Listing Regulations, has been placed before the Board for its
consideration.
Except the Independent Directors and Managing Director, all other Directors are liable to retire by rotation as per the
provisions of the Companies Act, 2013.
b) Directors’ Attendance Record and Directorships: Structure of Board of Directors during the financial year
2018-19, their attendance at Board meetings, the number of Directorship and chairmanships/memberships
of committee of each Director held in other public companies, relationship inter-se and attendance at Annual
General Meeting (AGM) held during the said year along with requisite information in respect of Directors as per
Regulation 34 of SEBI (LODR) Regulations, 2015 is provided below:
Name of the Di- Category Number Whether Number of Number of Directorship in other
rector of Board attended Director- Committee listed entity
Meetings last AGM ships in positions (Category of
attended other Public held in other Directorship)
during the Companies# Public
FY 2018-19 Companies##
Chairman Member
Rita Singh Chairper- 3 Yes 5 0 0 -
(DIN: 00082263) son cum
Managing
Director
Natasha Sinha Joint 3 No 3 0 0 -
(DIN: 00812380) Managing
Director &
CFO
Nandanadan Indepen- 4 Yes 3 3 2 • United Credit Limited-
Mishra* dent Non- Independent Director
(DIN: 00031342) Executive • Lux Industries Limited-
Director Non Executive Inde-
pendent Director
• Viaan Industries Lim-
ited- Non Executive
Independent Director
36
Name of the Di- Category Number Whether Number of Number of Directorship in other
rector of Board attended Director- Committee listed entity
Meetings last AGM ships in positions (Category of
attended other Public held in other Directorship)
during the Companies# Public
FY 2018-19 Companies##
Debiprasad Indepen- 4 No 2 0 1 Kajaria Ceramics Limited
Bagchi** dent Non- - Non Executive Indepen-
(DIN: 00061648) Executive dent Director
Director
Madhukar*** Indepen- 4 Yes 5 3 0
(DIN: 00558818) dent Non-
Executive
Director
Sanjiv Batra Indepen- 4 Yes 1 1 0 -
Executive
Director
Dipak Chatterjee Indepen- 4 No 1 0 0 -
Executive
Director
G S Jawandha Indepen- 4 Yes 3 1 0 -
Executive
Director
Mr. Sharanappa Executive 1 No - - - -
**** Director
Neelappa Kam-
balii
(DIN :08182398)
*Resigned w.e.f 01.04.2019

**Resigned w.e.f. 01.04.2019
***Resigned w.e.f. 01.04.2019
**** Resigned w.e.f 21.06.2019
Mr Hawa Singh Chahar ( DIN: 01691383) was appointed as Non- Executive Independent Director w.e.f 21st June, 2019.
#
Public Limited Companies excluding Mideast Integrated Steels Limited and excluding Section 8 Company
##
Board Committee includes Audit committee and Stakeholders’ Relationship Committee as per Regulation 26 of the SEBI
(Listing Obligation and Disclosure Requirements) Regulation 2015. None of the Directors on the board is a member
in more than 10 committees or Chairman in more than 5 committees, across all the companies in which he is a
director.
c) Details of Board Meetings held during the year: During the financial year ended on March 31, 2019 four meetings were
held on 30th May, 2018 which got adjourned on June 08, 2018, August 13, 2018, November 14, 2018, and February 14,
2019. The maximum gap between any two meetings had not exceeded 120 days.
d) Disclosure of relationship between director inter-se: Mrs. Rita Singh, Chairperson and Managing Director of the
Company is related to Mrs. Natasha Sinha, Joint Managing Director and CFO of the company as her mother. Apart from
that, there are no relationships existing among other Directors of the Company.
e) Details of shareholding of non-executive Directors in the Company as on March 31, 2019: Except Mrs. Rita
Singh who holds 1,07,910 shares and Mrs. Natasha Sinha who holds 2,300 shares no other directors hold any shares/
convertible instruments in the Company.
f) Meeting of Independent Directors:
Pursuant to Schedule IV of the Companies Act, 2013, the Independent Directors met on February 14, 2019 without the
presence of Non-Independent Directors and Members of the Management. The Independent Directors inter alia evaluated
the performance of the Non-Independent Directors and the Board of Directors as a whole, evaluated the performance of
the Chairman of the Board taking into account the views of Executive and Non-Executive Directors and discussed aspects
relating to the quality, quantity and timeliness of the flow of information between the Company, the Management and the
Board.
g) Familiarisation Programme For Directors
Pursuant to the provisions of the Regulation 25(7) of the SEBI (Listing Obligations and Disclosure Requirement)
Regulations,2015 the web link of the details of Familiarization Programme for Independent Directors is disclosed
37
here below:http://www.mescosteel.com/admin/investor/Familiarization%20of%20Independent%20Directors.pdf.
All new Directors inducted on the Board are given a formal orientation. The Directors are encouraged to visit the plant
locations of the Company and interact with the members of Senior Management as part of the induction programme.
The Senior Management make presentations giving an overview of the Company’s strategy, operations, products,
markets, group structure and subsidiary, Board constitution and guidelines, matters reserved for the Board so as to
enable them with an opportunity to familiarize themselves with the Company, its management, its operations and the
industry in which the Company operates.
h) Code of Conduct
The Board of Directors has adopted a Code of Conduct for Board Members and Senior Management Personnel of the
Company. The said Code has been communicated to all the Directors and members of the Senior Management, who
have affirmed their compliance with it, as approved and adopted by the Board. Declaration by the Managing Director to
this effect is given to the Board and the Board has taken the same on its record and annual certificate in compliance to
the same is annexed as Annexure-I. The Code is placed on the website of the Company,www.mescosteel.com.
i) The Board has identified the following skills/expertise/ competencies fundamental for the effective functioning of
the Company which are currently available with the Board:
A chart or matrix setting out the list of core skills / expertise / competencies identified by the Board of Directors as required
in the context of its business(es) and sector(s) for it to function effectively are as under :-
1. Industry (a) Experience in and knowledge of the industry in which the Company operates
(b) Experience and knowledge of broader industry environment and business planning
2. Professional Expertise in professional areas such as Technical, Accounting, Finance, Legal, Human Re-
sources, Marketing, etc.
3. Governance Experience as director of other companies, Awareness of their legal, ethical, fiduciary and
financial responsibilities, Risk Assessment, Corporate Governance.
4. Behavioural Knowledge and skills to function well as team members, effective decision making pro-
cesses, integrity, effective communication, innovative thinking.
The aforesaid core skills/ expertise / competencies are available with the Board of the Company.
3. COMMITTEES OF THE BOARD

I. Audit Committee
The constitution of the Audit committee is in accordance with the requirements of the Regulation 18 of SEBI(LODR) Regulations,
2015 and Section 177 of the Companies Act, 2013. The committee comprises of 6 directors out of which 5 are independent and
1 is executive director. Mr. Madhukar, Independent Director, acts as the Chairman of the Committee. The Audit Committee met
four times during the year ended March 31, 2019 i.e. on May 30, 2018 adjourned on June 08, 2018, 13th August, 2018, 14th
November, 2018 and on 14th February, 2019. The composition of the committee during the year as well as the particulars of
the attendance at the committee meeting during the year is given below:
Name of the Member Status No of Meetings Held No of Meetings Attended

Mr. Madhukar* Chairman 4 3
Mr. Debiprasad Bagchi** Member 4 4
Mr. Nandanadan Mishra*** Member 4 4
Mr. Sanjiv Batra Member 4 4
Mrs. Natasha Sinha Member 4 3
Mr. Dipak Chatterjee Member 4 3

***Resigned w.e.f 01.04.2019
Note: Mr Hawa Singh Chahar was appointed as Non-Executive Independent Director of the Company w.e.f 21.06.2019 and
accordingly, he was appointed as Chairman of the Audit Committee.
In addition to the above, the committee meetings were also attended and supported by Mr. Arun Todarwal & Ms. Mala Todarwal
(Statutory Auditors), Mr. Vijay Gupta (AVP-Finance), Ms. Aarati Karandikar and Mr. Jignesh Vora ( Sr. GM Finance & Accounts)
as special invitees. The Company Secretary of the Company acts as the Secretary to the Committee.
38
The functioning and terms of reference of the Audit Committee the role, powers and duties, quorum for meeting and frequency
of meetings, have been devised keeping in view the requirements of Section 177 of the Companies Act, 2013 and SEBI
(LODR) Regulations, 2015 as are in force/ applicable from time to time. All the members of the Audit Committee are financially
literate as required by Regulation 18 of SEBI (LODR) Regulations, 2015. The brief description of terms of reference of Audit
Committee is as follows:
• Oversight of financial reporting process.
• Reviewing with the management, the annual financial statements and auditors’ report thereon before submission to the
Board for approval.
• Evaluation of internal financial controls and risk management systems
• Recommendation for appointment, remuneration and terms of appointment of auditors of the Company.
• Approve policies in relation to the implementation of the Insider Trading Code and to supervise implementation of the
same.
4. Nomination and Remuneration Committee
The constitution of Nomination and Remuneration Committee is in compliance of Regulation 19 of SEBI (LODR) Regulations,
2015 and Section 178 of the Companies Act 2013. The Nomination and Remuneration Committee comprises of three
Independent Directors. Mr. Debiprasad Bagchi, the Independent Director of the Company, acts as the Chairman of the
Committee. The Committee met two times during the year ended March 31, 2019 i.e. on 13th August, 2018 and on 14th
February, 2019. The composition of the committee during the year as well as the particulars of the attendance at the committee
meeting during the year is given below:
Name of the Member Designation No. of Meetings Meetings attended

Mr. Debi Prasad Bagchi* Chairman 2 2
Mr. Nandnandan Misra** Member 2 2

** Resigned w.e.f. 01.04.2019
Note: 1. Mr Hawa Singh Chahar was appointed as Chairman of the Nomination & Remuneration Committee w.e.f
21.06.2019
2. Mr Gurjeet Singh Jawandha was appointed as Member of the Nomination & Remuneration Committee w.e.f
21.06.2019.
The powers, role and terms of reference of the Nomination and Remuneration Committee covers the areas as contemplated
under Regulation 19 of SEBI (LODR) Regulations 2015 and Section 178 of the Companies Act, 2013. Brief description of terms
of reference of the committee is as under:
• Recommend to the Board the appointment/re-appointment of Directors and Key Managerial Personnel.
• Support the Board and Independent Directors in evaluation of the performance of the Board, its Committees and
individual Directors.
• Recommend to the Board the Remuneration Policy for Directors, executive team or Key Managerial Personnel as
well as the rest of employees.
• Oversee familiarization programs for Directors.
• Formulation of the criteria for determining qualifications, positive attributes and independence of a director and
recommend to the Board.
The Company has formulated a Nomination and Remuneration Policy which has been uploaded on the website of the Company.
Your Company has not granted any stock options to any of its Directors.
Performance Evaluation Criteria for Independent Directors:
The performance evaluation criteria for independent directors are determined by the Nomination and Remuneration Committee.
An indicative list of factors on which evaluation was carried out includes participation and contribution by a director, commitment,
effective deployment of knowledge and expertise, integrity and maintenance of confidentiality and independence of behavior
and judgment.
5. Remuneration of Directors
a) Non-executive Directors: The Company has no pecuniary relationship or transaction with its Non-executive Directors
other than payment of sitting fees to them for attending Board and Committee meetings.
b) Executive Directors: The remuneration policy is directed towards rewarding performance. It is aimed at attracting and
retaining high caliber talent. The Company does have an incentive plan which is linked to performance and achievement
of the Company’s objectives.
39
c) Details of remuneration paid to the Directors of the Company during the year ended March 31, 2019 is as under:
` In Mn
Name of Director Sitting Fees Salaries & Perqui- Commission Total
sites
Mrs. Rita Singh - 15.68 - 15.68
Mrs. Natasha Sinha - 18.46 - 18.46
Mr. S N Kambali - 04.64 - 04.64
Mr. Nandanadan Mishra 0.50 - - 0.50
Mr. Debiprasad Bagchi 0.44 - - 0.44
Mr. Madhukar 0.32 - - 0.32
Mr. Sanjiv Batra 0.47 - - 0.47
Mr. Dipak Chatterjee 0.32 - - 0.32
Mr. G S Jawandha 0.20 - - 0.20
6. Stakeholders Relationship Committee

The constitution of Stakeholder relationship committee is in compliance of Regulation 20 of SEBI (LODR) Regulations, 2015
and Section 178 of the Companies Act 2013. The Committee comprises of three directors out of which two are Independent
Director and one is Executive Director. Mr. Nandanadan Mishra, Independent Director, acts as the Chairman of the Committee.
The Committee met three times during the year ended March 31, 2019 i.e. on 30th May, 2018, 14th November, 2018 and on
14th February, 2019. The details of composition and attendance at the committee meetings during the year ended March 31,
2019 are as under:
Name of the Member Designation No. of Meetings Meetings attended

Mr. Nandanadan Mishra* Chairman 3 3
Mrs. Rita Singh Member 3 2
* Resigned w.e.f 01.04.2019

Note : Mr Hawa Singh Chahar was appointed as Member of the Stakeholders Relationship Committee w.e.f 21st June
2019
The brief terms of reference of Stakeholders Relationship Committee are as follows:
• oversees, inter-alia, redressal of shareholder and investor grievances,
• transfer / transmission of shares
• issue of duplicate shares, exchange of new design share certificates,
• recording dematerialization/ rematerialization of shares and
• Investor grievance related matters.
Number of investor complaints for the year ended March 31, 2019 is provided below:
Particulars Status
Complaints outstanding as on April 1, 2018 0
Complaints received during the year ended March 31, 2019 17
Complaints resolved during the year ended March 31, 2019 17
Complaints not solved to the satisfaction of Shareholders as on March 31, 2019 0
Complaints Pending as on March 31, 2019 0
Name, designation and address of Compliance Officer:

Mr. Pawan Kumar Thakur
Company Secretary
H-1, Zamrudpur Community Centre, Kailash Colony,
New Delhi- 110048
Tel.: 011-40587085
7. Corporate Social Responsibility

Committee is constituted in line with the provisions of Section 135 of the Act. Mr. Nandnadan Misra, Mr. Debi Prasad Bagchi
and Mrs. Natasha Sinha are three members of the Committee. Two Non-Executive Independent Directors and one Joint
40
Managing Director comprise the CSR Committee. During the year 2018-19, the Committee meets once on 14th February, 2019.
The tabular presentation of the above data is reproduced hereunder:
Name of the Member Status No of Meetings Held No of Meetings Attended

Mr. Debiprasad Bagchi* Chairman 1 1
Mr. Nandanadan Mishra** Member 1 1
Mrs. Natasha Sinha Member 1 1

Note : 1. Mr Hawa Singh Chahar was appointed as Chairman of the Committee w.e.f 21st June, 2019
2. Mrs Rita Singh was appointed as Member of the Committee w.e.f 21st June, 2019.
The functioning and terms of reference of the CSR Committee the role, powers and duties, have been devised keeping in view
the requirements of Section 135 of the Companies Act, 2013 and SEBI (LODR) Regulations, 2015 as are in force/ applicable
from time to time. The brief description of terms of reference of Audit Committee is as follows:
• Formulate and recommend to the Board, a CSR Policy indicating the activities to be undertaken by the Company
as specified in Schedule VII of the Act.
• Recommend the amount of expenditure to be incurred on the activities mentioned in the CSR Policy.
• Monitor the CSR Policy.
8. GENERAL BODY MEETINGS

The last three Annual General Meetings of the Company were held as under :
Year Venue Date Time Special Resolution

2017-18 Lakshmipat Singhania September 11:00 1 To Approve borrowing limits under Section 180(1)(c)
Auditorium, 4/2 PHD House, 30, 2018 AM of the Companies Act, 2013
August Kranti Marg, Siri Insti- 2) To approve limits under section 186 to grant loans ,
tutional Area, Block A, Nipccd invest or give guarantee or security
Campus, Hauz Khas, New
Delhi-110016 3) To approve limits under Section 180(1)(a) to transfer,
sell, lease, assign, deliver or otherwise dispose off,
pledge, hypothecate, mortgage etc.
4) To approve related party transactions as Section 188
of the Companies Act, 2013
5) To alter memorandum and articles of association of
the Company
6) To create, issue and allot on preferential basis (“Pref-
erential Issue”) to promoters/promoters group
2016-17 The Claremont, Mehrauli September 11.00 1) To re- appoint Mrs. Rita Singh, as Managing Director
Gurgaon Road, Aaya Nagar, 27, 2017 A.M. of the Company for a period of 5 years with effect
Aya Nagar Phase 2, New from August 1, 2018
Delhi -110047 2) To re-appoint Mrs. Natasha Sinha, as Whole Time
Director of the Company for a period of 5 years with
effect from April1, 2018
3) To appoint Mr. Priyabrata Patnaik, as Whole Time
Director of the Company for a period of 5 years with
effect from August1, 2018
4) To re-appoint Mr. Hanumantha Rao Ravipati (DIN-
00044028) as Whole- time Director of the Company
for a period of 3 years with effect from September
30, 2018
5) To increase the borrowing power of the Board under
Section 180(1)(c) of the Companies Act, 2013
6) To approve related party transactions under Section
188 of Companies Act, 2013
2015-16 Kamani Auditorium, 1 September 11.30 1. To approve related party transactions under Section
Copernicus Marg, New Delhi- 27, 2016 A.M. 188 of Companies Act, 2013
110001
41
II. Postal Ballot
During financial year ended March 31, 2019 no resolution was passed through postal ballot. During previous year ended
March 31, 2018, No Special Resolutions were passed through Postal Ballot.
9. MEANS OF COMMUNICATION
a) Quarterly Results:
The quarterly, half-yearly and yearly financial results of the Company are sent to the Stock Exchanges immediately
after they are approved by the Board through the modes specified by the respective stock exchanges.
b) Newspapers wherein results normally published:
Un-audited and Audited Financial Results are normally published in the Financial Express and Jansatta.
c) Website:
The results of the company are also displayed on the Company’s Website www.mescosteel.com.
d) Official News Releases: All disclosure/release, if any are uploaded on the website of the
company
e) Presentations:
Presentation(s) made to Institutional Investors or analysts, if any are also put up on Company’s web site i.e. www.
mescosteel.com. No presentations have been made to institutional investors/ analysts during the financial year.
10. GENERAL SHAREHOLDER INFORMATION
A. Annual General Meeting details 30th September, 2019, Monday at 10:30 AM at The Executive Club, 439 Vil-
(Date, Time and Venue lage Shahoorpur, P.O. Fatehpur Beri, New Delhi-110074
B. Financial Year 2019-20
C. Dividend Payment Date Not applicable
D. Book Closure Dates 23-09-2019 to 30-09-2019
E. Listing Fees The Company has paid the listing fees for financial year 2019-20 to BSE Lim-
ited, where the shares of the company are listed.
F. Listing on Stock Exchanges and BSE Ltd. (BSE) Calcutta Stock Exchange
Stock Code Phiroze Jeejeebhoy Towers, Dalal Street, (CSE)
Mumbai – 400001 7, Lyons Range, Kolkata-
Scrip Code: 540744 700001
Scrip Code:23143
G. Registrars and Transfer Skyline Financial Services Private Limited

Agents D-153 A, 1st Floor, Okhla Industrial Area, Phase-I, New Delhi - 110020. Tel.:
+91 11 40450193-95, Fax: +91 11 26812682
Email: [email protected] Website: www.skylinerta.com
H. Share Transfer System As per SEBI notification effective from April 01, 2019 requests for Transfer of
Securities held in physical form would be carried out in dematerialized form
only except in case of transmission or transposition of securities. Therefore,
Registrar and Share Transfer Agent and Company will not accept any request
for transfer of shares in physical form. The processes for shares held in de-
materialized form are dealt by the depository participants without any involve-
ment of the Company.
I. Dematerialization of Shares and 27.94.% of the Paid-up Equity Share Capital is held in Dematerialized form
Liquidity with National Securities Depository Limited and Central Depository Services
(India) Limited as on March 31, 2019
J. Outstanding GDRs/ ADRs/ War- NIL

rants or any Convertible Instru-
ments, Conversion Date and likely
impact on
Equity
K. Commodity price risk or Foreign The Company does not deal in commodities and hence the disclosure pur-
exchange risk and hedging activi- suant to SEBI Circular dated November 15, 2018 is not required to be given.
ties For a detailed discussion on foreign exchange risk and hedging activities,
please refer to Management Discussion and Analysis Report.
42
L. Plant Location a) Factory : b) Mines :

Kalinga Nagar Industrial Complex, Panchvati, P.O: Barbil Road, Barbil
Khurunti, P. O. Keonjhar: 758035, Odisha
Danagadi - 755026
Dist. Jajpur, Odisha
M. Address for correspondence Registered Office of Company: Registrar and Transfer Agent:
Mideast Integrated Steels Limited Skyline Financial Services
Private Limited
Mesco Tower H -1, Zamrudpur Com-
munity Centre, Kailash Colony, New D-153 A, 1st Floor, Okhla
Delhi – 110 048. Industrial Area, Phase-I,
New Delhi - 110020.
Ph. No.- 011- 40587085
Tel.: +91 11 40450193-95,
Email:[email protected] Fax: +91 11 26812682
Email: [email protected]
Website: www.skylinerta.com
N. List of all credit rating NIL NIL
M. MARKET PRICE DATA: The Market price data was as under:
MARKET PRICE DATA (SCRIP CODE: 540744)

Month Open Price High Price Low Price Close Price
Apr-18 46.00 53.40 44.35 49.90
May-18 48.00 50.80 35.70 41.10
June 18 39.40 42.45 25.50 26.25
July 18 24.95 26.30 18.40 26.30
Aug 18 27.60 30.30 19.75 20.05
Sept 18 19.80 21.25 16.70 16.70
Oct 18 16.70 19.25 14.15 15.25
Nov 18 15.80 22.15 14.40 16.10
Dec 18 16.10 23.90 14.70 21.45
Jan 19 20.40 22.25 14.00 15.05
Feb 19 14.70 15.65 11.95 13.75
Mar 19 13.75 17.75 13.70 14.15
N. Performance Comparison to Broad Based Indices such as Sensex
10 lW 1M H
RA.>IGE N •S IO
--
• I - 3)
0 I 8 9
~~)
P>t'Y CloW .........,,..,,...,.no
·~ S5 69.60%
1 ·._
·11.36%
low
16() I~~
(\S7 31li.) 97 QA($ T1 ~~SD4\$ f-2269n)
43
O. Distribution of Shareholding as on March 31, 2019
No. of equity shares No. of Shareholders % of Shareholders No. of Shares % to Total

(Rs.) (Rs.)
1 2 3 4 5
Up To 5,000 177436 98.02 225679420 16.37
5001 To 10,000 2131 1.18 16900250 1.23
10001 To 20,000 795 0.44 11829350 0.86
20001 To 30,000 234 0.13 5877180 0.43
30001 To 40,000 104 0.06 3750460 0.27
40001 To 50,000 73 0.04 3442910 0.25
50001 To 1,00,000 133 0.07 9404440 0.68
1,00,000 and Above 116 0.06 1101865990 79.92
Total 181022 100 1378750000 100
P. Categories wise shareholding as on March 31, 2019
Particulars No of shares %
Promoters Shareholding 90361470 65.54
Non promoters holding
Mutual Funds and UTI 0 0
Banks, Financial Institution, Insurance Companies, Clearing Members 284600 0.21
India Public 27950668 20.27
NBFC 1000 0
Bodies Corporate 16529639 11.99
Non-resident Indians 2460189 1.78
Resident Indian HUF 199724 0.15
Trust 300 0
Clearing Member/House 87410 0.06
Grand Total 137875000 100
11. DISCLOSURES
a) During the financial year ended March 31, 2019 there were no materially significant related party transactions that
may have potential conflict with the interests of the Company at large. However there were certain unsecured loans
given to related parties on which no interest was charged as well as no schedule of repayment of principal and
interest has been stipulated.
b) Neither were any penalties imposed, nor were any strictures passed by Stock Exchange or SEBI or any statutory
authority on any capital market related matters during the last three years
c) The Company has a Whistle Blower Policy and has established the necessary vigil mechanism for directors and
employees to report concerns about unethical behavior. No person has been denied access to the Chairman of the
Audit Committee. The said policy has been uploaded on the website of the Company.
d) The Company has adopted and complied with mandatory requirements as per SEBI (LODR) Regulations, 2015.
e) The Company has framed a Material Subsidiary Policy and the same is placed on the Company’s website and the
web link for the http://mescosteel.com/admin/investor/Policy%20on%20Material%20Subsidiary.pdf
f) The company has framed Related Party Transaction Policy and is placed on the Company’s website and the web
link for the http://mescosteel.com/admin/investor/Related%20Party%20Transaction%20Policy.pdf
g) During the financial year ended March 31, 2019 the company did not engage in commodity hedging activities.
h) The company has not raised any amount through preferential allotment or qualified institutions placements as
specified under Regulation 32(7A):
i) A certificate has been received from Robinderpall Singh Batth, Practicing Company Secretaries, that none of the
Directors on the Board of the Company has been debarred or disqualified from being appointed or continuing as
directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such
statutory authority.
j) There were no such instance to be reported where any recommendation made by any committee was not accepted
by the Board Members.
44
k) M/s Arun Todarwal & Associates has been appointed as the Statutory Auditors of the Company. The particulars of
Statutory Auditors fees on consolidated basis is given below:
Particulars As at 31 March, 2019

₹ in Mn
Payments to the auditors comprises
For statutory audit 1.65
For Taxation Matters 0.04
Total 1.69
l) There were no complaints received during the year under Sexual Harassment of Women at Work place (Prevention,
Prohibition and Redressal) Act, 2013
12. There has been no instance of non-compliance of any requirement of Corporate Governance Report except regarding
the appointment of Compliance Officer. Ms. Sandhya Sethia has resigned from the post of Company Secretary cum
Compliance Officer w.e.f 30.09.2018 whereas the new Company Secretary cum Compliance Officer Mr. Pawan Kumar
Thakur was appointed by the Board of Directors w.e.f 14.02.2019.
13. STATUS OF COMPLIANCE WITH NON-MANDATORY REQUIREMENTS

Part E of Schedule II of SEBI (LODR) Regulations, 2015, also requires disclosures of adoption by the Company of
non-mandatory requirements specified in the said clause, the implementation of which is discretionary on the part of the
Company. Accordingly, the adoption of non-mandatory requirements is given below:-
• The Board: An office with required facilities for the non-executive Chairperson is not provided and maintained by the
Company.
• Shareholders Rights: The half-yearly financial results are not sent to the shareholders as the same are posted on
the web site of the Company.
• Audit Qualifications: During the year under review, the Statutory Auditors has issued modified opinion on the
Standalone and Consolidated Financial Statements.
• Reporting of Internal Auditor: The Internal Auditor reports directly to the Audit Committee.
14. The Company has fully complied with the applicable requirement specified in Regulation 17 to
27 and clause (b) to (i) of sub-regulation (2) of Regulation 46 of SEBI (LODR) Regulations, 2015.
D. The CMD and CFO Certification of the financial statements for the year, is enclosed at the end of the report.
E. The Company has followed the treatment laid down in the Accounting Standards prescribed by the Institute of
Chartered Accountants of India, in the preparation of financial statements. The Statutory Auditors’ has issued
modified opinion on the Standalone Financial Statements and Consolidated Financial Statements during the year
under review
F. Disclosures with respect to demat suspense account/ unclaimed suspense account
a) Aggregate number of shareholders and the outstanding shares in the suspense account lying at the beginning of
the year : NIL
b) Number of shareholders who approached listed entity for transfer of shares from suspense account during the
year : NIL
c) Number of shareholders to whom shares were transferred from suspense account during the year : NIL
d) Aggregate number of shareholders and the outstanding shares in the suspense account lying at the end of the
year : NIL
Annual Compliance with the Code of Conduct for the Financial Year 2018-19
This is to confirm that the Company has adopted a Code of Conduct for its employees including the Managing Director and
Executive Directors. In addition, the Company has adopted a Code of Conduct for its Non-Executive Directors and Independent
Directors. These Codes are available on the Company’s website.
I confirm that the Company has in respect of the year ended March 31, 2019, received from the Members of the Board and
Senior Management Personnel of the Company, a declaration of compliance with the Code of Conduct as applicable to
them.
Rita Singh
Chairperson Cum Managing Director DIN: 00082263
Place: New Delhi
Date: 21.06.2019
45
CERTIFICATE BY CHAIRPERSON CUM MANAGING DIRECTOR (CMD) AND CHIEF
FINANCIAL OFFICER (CFO) UNDER REGULATION 17(8) OF SEBI
(LISTING OBLIGATIONS & DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
We hereby certify that we have reviewed financial statements and the cash flow statements for the financial year ended
on March 31, 2019, and to the best of our knowledge and belief:
• These statements do not contain any materially untrue statement or omit any material fact or contain statement that might
be misleading.
• These statements together present a true and fair view of the Company’s affairs and are in compliance with existing
accounting standards, applicable laws and regulations.
• To the best of our knowledge and belief, no transactions entered into by the Company during the above said period are
fraudulent, illegal or violating Company’s Code of Conduct.
• We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the
effectiveness of the internal control systems of the Company pertaining to financial reporting and we have disclosed to the
Auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are
aware and the steps we have taken or propose to take to rectify these deficiencies.
• We further certify that we have indicated to the Auditors and the Audit Committee:-
a) Significant changes in internal control over financial reporting during the period.
b) Significant changes in accounting policies during the year and that the same has been disclosed in the notes to
the financial statement
c) Instances of significant fraud of which we have become aware and the involvement therein, of management or
an employee having a significant role in the Company’s internal control system over financial reporting.
Rita Singh Natasha Sinha

Chairperson cum Managing Director Joint Managing Director & CFO
DIN: 00082263 DIN: 00812380
Place: New Delhi

Date: 21.06.2019
REPORT OF AUDITORS ON CORPORATE GOVERNANCE

To the Members
New Delhi
We have examined the compliance of the conditions of Corporate Governance by Mideast Integrated Steels Limited for the
year ended 31st March 2019, as stipulated in Regulation 15(2) of SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was
limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions
of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and explanations given to us, we certify that the Company has complied
with the conditions of Corporate Governance as stipulated in the above mentioned Listing Regulations, as applicable We
further state that such compliance is neither an assurance as to the future viability of the Company nor as to the efficiency
or effectiveness with which the management has conducted the affairs of the Company.
For Arun Todarwal & Associates LLP

(Registration No. 104184W)
Arun Todarwal
Partner
Membership No. 032822
46
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10) (i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015)
To,
The Members of
H-1, Zamrudpur Community Centre,
Kailash Colony, New Delhi- 110048
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of Mideast
Integrated Steels Limited having CIN L74899DL1992PLC050216 and having registered office at H-1, Zamrudpur
Community Centre, Kailash Colony, New Delhi- 110048 (hereinafter referred to as ‘the Company’), and produced before
us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule
V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification
Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the
Company & its officers, We hereby certify that none of the Directors on the Board of the Company as stated below for
the Financial Year ended on March 31, 2019 have been debarred or disqualified from being appointed or continuing as
Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other
Statutory Authority.
Following are the Directors on the Board of the Company as on the date of this certificate:
S. No Name of Director DIN

1. Mrs. Rita Singh 00082263
2. Mr. Gurjeet Singh Jawandha 00213573
3. Mr. SanjivBatra 00602669
4. Mrs. Natasha Sinha 00812380
5. Mr. Hawa Singh Chahar 01691383
6. Mr. Dipak Chaterjee 03048625
Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion on this based on our verification. This certificate is neither an
assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has
conducted the affairs of the Company.
For RSB & Associates

Company Secretary
Robinderpall Singh Batth

FCS: 6586, CP No. 3836
Date: 21.06.2019
Place: Bhubneswar
47
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF MIDEAST INTEGRATED STEELS LIMITED
Report on the Audit of the Standalone Financial Statements Qualified Opinion
1. We have audited the accompanying standalone financial statements of M/s Mideast Integrated Steels Limited (“the Company”),
which comprise the Balance Sheet as at March 31, 2019, the Statement of Profit and Loss (including Other Comprehensive
Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary
of the significant accounting policies and other explanatory information (hereinafter referred to as “the standalone financial
statements”).
2. In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the
matter described in the Basis for Qualified Opinion section of our report, the aforesaid standalone financial statements
give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view,
in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian
Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles generally accepted in India, of
the state of affairs of the Company as at March 31, 2019, and total comprehensive loss (comprising of the loss and other
comprehensive loss), changes in equity and its cash flows for the year ended on that date.
Basis for Qualified Opinion
3. We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing specified
under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent of the
Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together
with the independence requirements that are relevant to our audit of the standalone financial statements under the provisions
of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our qualified audit opinion on the standalone financial statements.
Qualifications
1. In pursuance to the judgement dated 2nd August, 2017 of Honorable Supreme Court of India, in the matter of Writ
Petition (Civil) No. 114 of 2014 between Common Cause v/s Union of India & Others, there is a penalty imposed of
Rs 924 crores along with interest on the company for excess production of Iron Ore during 2000-01 to 2010-11. The
Company was supposed to make the payment of this compensation on or before 31st December 2017, failing which
the mines of the Company are closed down wef 1st January 2018. The Company has filed a ‘Curative petition’ (Civil)
on 28th March 2018, before the Honorable Supreme Court of India challenging the Judgement and which we have
been informed is still pending. Hence, no provision has been made for the same in the books of accounts. However,
in our opinion, this penalty has been crystalized and accordingly, a provision should have been made in the books
to the extent of Rs 924 crores along with interest upto date.
2. Balance confirmations and bank statements have not been provided to us for some banks accounts and loans.
Details are as per Annexure III attached herewith.
3. The deferred tax working has not been shared with us, hence we are unable to comment upon the correctness of
the same, as on 31st March 2019.
4. The Company has an investment of Rs 179.88 crores in its Subsidiary, Maithan Ispat Limited. Based on the
financials of its subsidiary, the Net worth is negative and the liabilities exceed the assets of the subsidiary company.
In the absence of any impairment testing done, we are unable to comment on the investment value taken in the
Company’s books.
Emphasis of Matter
1. Balances of Debtors, creditors, loans & advances received & given and deposits received & given are subject to
confirmations and reconciliations.
2. In the absence of complete details and documentation for additions made to Capital Work in progress, we are
unable to comment on the same.
3. In our opinion, a provision for doubtful debts of Rs 8.87 crores needs to be made against the balances of non
moving old Debtors & Creditors (where advances have been given by the Company), as on 31st March 2019. No
litigation has been initiated by the Company on these balances.
4. In the absence of complete stock valuation details, we are unable to comment on the stock valuation taken as on
31st March 2019.
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone
financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial
48
statements, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. There are no matters
determined to be the key audit matters to be communicated in our report.
Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
5. The Company’s Board of Directors is responsible for the preparation of the other information. The other information comprises
the information included in the Management Discussion and Analysis, Board’s Report including Annexures to Board’s Report,
Business Responsibility Report, Corporate Governance and Shareholder’s Information, but does not include the standalone
financial statements and our auditor’s report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our
knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact.
Since we have not been provided with the other information, we will not be able to report on the same.
Responsibilities of management and those charged with governance for the Standalone Financial Statements
6. The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the
preparation of these standalone financial statements that give a true and fair view of the financial position, financial
performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the Ind
AS and other accounting principles generally accepted in India. This responsibility also includes maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing
and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
7. In preparing the standalone financial statements, management is responsible for assessing the Company’s ability to continue
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative
but to do so.
The Board of Directors are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
8. Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these standalone financial statements.
9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing
our opinion on whether the Company has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the standalone financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
49
evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the standalone financial statements, including the
disclosures, and whether the standalone financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
• Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may
be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work
and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial
statements.
10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
12. From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the standalone financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Report on Other Legal and Regulatory Requirements
13. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in terms
of Section 143(11) of the Act, we give in “Annexure I” a statement on the matters specified in paragraphs 3 and 4 of the
Order
14. As required by Section 143(3) of the Act, based on our audit, subject to the qualified opinion given above, we report
that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from
our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of
Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant
books of account.
d. In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the directors as on March 31, 2019 taken on record by the
Board of Directors, none of the directors is disqualified as on March 31, 2019 from being appointed as a director in
terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the
operating effectiveness of such controls, refer to our separate Report in “Annexure II”.
g. With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration
paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the
explanations given to us, subject to the qualified opinion given above:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial
statements.
ii. The Company has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, if required to be transferred, to the Investor Education and
Protection Fund by the Company.
50
ANNEXURE I TO AUDITORS’ REPORT
[Referred to in above the Auditor’s Report of even date for M/s Mideast Integrated Steels Limited on the Financial Statements
for the year ended 31st March 2019]
1 (a) The Company is maintaining proper records showing full particulars including quantitative details and situation of
fixed assets.
(b) As per the information and explanation given to us, fixed assets are physically verified by the management according
to a phased programme designed to cover all the locations which in our opinion, is reasonable having regard to the
size of the company and the nature of its assets. As informed to us, the management during the year had physically
verified the fixed assets at certain locations.
(c) According to the information and explanation given to us, the title deeds of immovable properties are held in the
name of the company.
2 As per the information provided to us, Inventory has been physically verified by the management during the year.
The discrepancies noticed on verification between the physical stocks and the book records were not material.
3 According to information and explanation given to us, the Company has granted unsecured loans to parties covered
in the register maintained under Section 189 of the Act, however in our opinion:
• The terms and conditions of the grant of such loans are prejudicial to the company’s interest as no interest is
being charged on the same upto year ended 31st March 2019.
• There is no schedule of repayment of principal and payment of interest that has been stipulated.
4 In our opinion and according to information and explanation given to us, the company has, in respect of loans, investments,
guarantees, and security provisions, complied with section 185 and 186 of the Companies Act, 2013.
5 According to the information and explanation given to us, the company has not accepted any public deposits, within
the meaning of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013. Hence the provisions
of clause 3(v) are not applicable to the company.
6 Pursuant to the rules made by the Central Government, the maintenance of Cost Records have been prescribed
u/s. 148(1) of the Companies Act, 2013. We are of the view that prima facie the prescribed accounts and records
have been maintained. We have, however, not made a detailed examination of the records with a view to determine
whether they are accurate or complete.
7 (a) According to the books and records as produced and examined by us in accordance with generally accepted auditing
practices in India and also management representations, undisputed statutory dues in respect of Provident fund,
employees’ state insurance, Income Tax, Sales Tax, Service tax, Custom duty, Excise duty, Value added tax, Cess
and other statutory dues, if any, applicable to it, has been regularly deposited with the appropriate authorities.
(b) According to the records of the Company, the disputed dues in respect of Excise Duty, Service Tax, Sales Tax,
Entry Tax and Customs duty as at March 31st, 2019 have not been deposited with appropriate authorities and no
provision has been made for the same. Details are as follows:
Sr. Dues pertaining to Amount Amount Forum where

No. (In Crores) (In Crores) dispute is pending
March 2019 March 2018
1 Excise Duty 114.26 28.77 Various Authorities
2 Service Tax 3.00 3.87 Various Authorities
3 Sales and Entry Tax 24.84 24.68 Various Authorities
4 Income Tax 5.77 5.77 Various Authorities
Total 147.87 63.09
8 In our opinion and according to the information and explanation given to us and the books of accounts verified by us,
the company has defaulted in repayment of dues to a financial institution, bank, Government or dues to debenture
holders, details are as below:
Sr. Bank / Financial Institution Default Amount Currency Default made for the
No. month of
1 SREI Equipment Finance Limited 18,26,000 INR March 2019
2 BanyanTree Bank Limited (Loan no 0024) 3,12,500 USD December 2018
3 BanyanTree Bank Limited (Loan no 0126) 58,333 USD March 2019
4 BanyanTree Bank Limited (Loan no 0046) 66,667 USD December 2018
51
9 As per information given to us, no money was raised by way of initial public offer or further public offer (including
debt instruments). As per the information and explanation given to us, the fresh term loans taken by the Company
during the year have been applied for the purpose for which those were raised.
10 During the course of our examination of the books of account carried in accordance with the generally accepted
auditing standards in India, we have neither come across any instance of fraud on or by the Company, either noticed
or reported during the year, nor have we been informed of such case by the Management.
11 According to the information and explanation given to us and the books of accounts verified by us, the Managerial
remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of
section 197 read with Schedule V to the Companies Act.
12 The Company is not a Nidhi Company, hence the provision of clause 3(xii) are not applicable to the company.
13 According to the information and explanation given to us and the record produced before us, all transactions with
the related parties are in compliance with sections 177 and 188 of Companies Act, 2013, where applicable and the
details have been disclosed in the Financial Statements etc., as required by the applicable accounting standards.
14 According to information and explanation given to us, the Company during the year, has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures, hence the provision of clause
3(xiv) are not applicable to the company.
15 According to the information and explanation given to us and the books of accounts verified by us, the company has
not entered into any non-cash transactions with directors or persons connected with him.
16 The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
ANNEXURE II TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF
M/S MIDEAST INTEGRATED STEELS LIMITED AS ON 31ST MARCH 2019
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 (“the Act”)
To the Members of M/s Mideast Integrated Steels Limited
We have audited the internal financial controls over financial reporting of M/s Mideast Integrated Steels Limited (“the
Company”) as of March 31, 2019 in conjunction with our audit of the standalone financial statements of the Company for the
year ended on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s Management is responsible for establishing and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of
Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate
internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including
adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the
accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required
under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our
audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the “Guidance Note”) and the Standards on Auditing as specified under section 143(10) of the Companies Act,
2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls
and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was established and maintained and if such controls operated effectively
in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls
system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial
reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.
52
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on
the internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A company’s internal financial control over financial reporting includes those
policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and
that receipts and expenditures of the company are being made only in accordance with authorizations of management and
directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion
or improper management override of controls, material misstatements due to error or fraud may occur and not be detected.
Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the
risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an internal financial controls system over financial reporting however
they need to be strengthened and comprehensively documented, based on the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For and on behalf of

Arun Todarwal & Associates LLP
ICAI Reg No: W100291
Arun Todarwal
Partner
M. No.: 032822
Dated : 21st June, 2019

Place: Mumbai
ANNEXURE III TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF
M/S MIDEAST INTEGRATED STEELS LIMITED AS ON 31ST MARCH 2019
Details for Qualification in the Audit report – Point no 2:
Details of banks and loans where balance confirmations and bank statements have not been provided to us for
verification:
Bank balances:
Srn Particulars Account number Closing Amount as per

books (Rs)
1 Punjab National Bank XXXXXXXXXX1037 6,68,550
2 Central Bank of India (EEFC) XXXXXX4776 9,778
3 ICICI Bank XXXXXXXX2008 72,62,055
5 ICICI Bank XXXXXXXX3764 2,204
Loans by Other financial institutions:
Srn Particulars Closing Amount as per

books (Rs)
1 SREI Equipment Finance Limited (51,912,169)
53
Balance Sheet as at 31 March, 2019
Particulars Note As at 31 March, As at 31 March,
No. 2019 2018
₹ in Mn ₹ in Mn
ASSETS
Non current assets
Property, plant and equipment 3 8,115.00 8,677.78
Capital work-in-progress 241.13 141.32
Non current investments 4 1,918.92 1,918.92
Financial assets
Security deposits 5 62.43 53.17
Other financial assets 6 2,526.70 2,429.26
Other non current assets 7 872.32 918.32
Current assets
Inventories 8 1,129.26 1,158.88
Financial assets
Trade receivables 9 730.50 237.07
Cash and cash equivalents 10 534.95 222.41
Advances 11 558.56 369.48
Other financial assets 12 280.88 191.46
16,970.65 16,318.09
EQUITY AND LIABILITIES
Equity
Equity share capital 13 1,378.75 1,378.75
Other equity 14
Securities premium 677.70 677.70
Retained earnings 2,899.67 2,937.49
Other reserves 1,642.61 1,642.61
Total equity 6,598.73 6,636.55
Non current liabilities
Financial liabilities
Borrowings 15 353.10 399.36
Trade payables 16 387.11 548.50
Other financial liabilities 17 4,957.01 5,199.63
Deferred tax liabilities (net) 30.5 739.48 737.48
Employee benefit obligations 18 65.97 57.38
Current liabilities
Trade payables 19 2,045.55 1,711.19
16,970.65 16,318.09
Notes forming part of the financial statements 1 - 33
The accompanying notes are an integral part of the financial statements.

As per our report of even date
For Arun Todarwal & Associates LLP For and on behalf of the Board of Directors
ICAI Reg No. W100291
Arun Todarwal Natasha Sinha Rita Singh
Partner Jt. Managing Director & CFO CMD
M. No. 32822 DIN 00812380 DIN 00082263
Place : New Delhi S N Kambali Pawan Kumar Thakur

Date : 21 June 2019 Director & CEO Company Secretary
DIN 08182398
54
Statement of Profit and Loss for the year ended 31 March, 2019
Particulars Note For the year ended For the year ended
No. 31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
Revenue from operations (Gross) 22 8,702.37 6,315.81
Total revenue 8,702.37 6,315.81
Expenses
Cost of materials consumed 23a 6,356.51 2,165.32
Changes in inventories of finished goods, work-in-progress and stock-in-trade 23b (24.29) (243.51)
GST on sales 22 1,318.92 489.72
Employee benefit expenses 24 286.09 448.01
Other expenses 25 553.07 1,894.65
Total expenses 8,490.31 4,754.19
Earnings before interest, tax, depreciation and amortization (EBITDA) 212.07 1,561.62
Less:
Depreciation and amortisation expenses 3 564.04 565.35
Finance costs 26 45.85 823.43
Add:
Other income (Net) 27 411.21 127.28
Profit before extraordinary items, exceptional items and Prior Period Items and tax 13.38 300.12
Exceptional/Extraordinary items - -
Profit before tax 13.38 300.12
Tax expenses:
Current tax net of MAT - 64.70
Tax expense relating to prior years 50.00 -
Deferred tax 2.00 2.50
Profit for the year (38.62) 232.92
Other Comprehensive Income:
Not to be reclassified to profit or loss in subsequent periods:
Re-measurement gains/ (losses) on defined benefit plans 0.80 0.60
Less: Income tax effect - -
Other comprehensive income for the year, net of tax 0.80 0.60
Total Comprehensive income (37.82) 233.52
Earnings per Equity share (₹ 10/- each)
Basic & Diluted (₹) (0.28) 1.69

M. No. 32822 DIN 00812380 DIN 00082263

DIN 08182398
55
Cash Flow Statement for the year ended 31 March, 2019
For the year ended For the year ended
Particulars 31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn ₹ in Mn ₹ in Mn
A. Cash flow from operating activities
Net Profit / (Loss) before extraordinary items and tax 13.38 300.12
Adjustments for
Depreciation and amortisation 564.04 565.35
Finance costs 45.85 63.43
Interest income (8.78) (18.27)
Rental income - (7.00)
Liabilities / provisions no longer required written back (393.67) (102.01)
Net unrealised exchange (gain) / loss 40.22 1.95
Operating profit / (loss) before working capital changes 247.66 503.45
Adjustments for (increase) / decrease in operating assets 261.04 803.57
Inventories 29.62 (198.52)
Trade receivables (493.43) (227.37)
Short-term loans and advances (189.07) (316.03)
Long-term loans and advances (97.43) (631.81)
Other non-current assets 46.00 36.03
Other current assets 35.71 188.48
Adjustments for increase / (decrease) in operating liabilities
Trade payables 172.96 813.45
Other current liabilities 540.76 265.45
Other long-term liabilities (242.62) (211.87)
Short-term provisions 1.13 2.58
Long-term provisions 8.59 4.55
(187.77) (275.06)
Cash generated from operations 73.27 525.56
Net income tax (paid) / refunds (103.23) (109.61)
Net cash flow from / (used in) operating activities (A) (29.96) 416.95
B. Cash flow from investing activities
Purchase/Sale of fixed assets including capital advance (101.06) (71.02)
Investment in subsidiaries and joint ventures 0.00 (225.00)
Rental receipt 0.00 7.00
Interest received 8.78 18.27
Investment in fixed deposit/Proceeds from fixed deposits 283.33 (13.10)
191.05 (283.86)
Net cash flow from / (used in) investing activities (B) 191.05 (283.86)
C. Cash flow from financing activities
Proceeds/(Repayment) of borrowings 186.20 (138.47)
Finance cost (45.85) (63.43)
140.35 (201.90)
Net cash flow from / (used in) financing activities (C) 140.35 (201.90)
Net increase / (decrease) in Cash and cash equivalents (A+B+C) 301.44 (66.87)
Cash and cash equivalents at the beginning of the year 117.35 184.22
Cash and cash equivalents at the end of the year 418.79 117.35

M. No. 32822 DIN 00812380 DIN 00082263

DIN 08182398
56
Notes forming part of the financial statements

Note 1 Corporate Information
Mideast Integrated Steel Ltd, “The Company” is domiciled in India and was incorporated under the provisions of The Companies
Act,1956. The Company is having its Registered Office in New Delhi with iron ore mining at Barbil and manufacturing unit at
Jajpur, Odisha. The Company is primarily engaged in extraction of iron ore and production of pig iron. As a part of backward
integration, the Company has Sinter production facilities and a gas based power plant.
On 31st March 2015, the Company has acquired 181,029,798 (99.28%) Equity Shares and 30,000,000 of 10% Cumulative
Redemable Preference Shares of M/s. Maithan Ispat Limited and thus became Holding Company.
Note 2 Significant accounting policies
a Basis of accounting and preparation of financial statements
The financial statements of the company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified
under the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Companies Act, 2013
“the Act”. For all periods upto and including the year ended March 31, 2016 were prepared in accordance with the accounting
standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts)
Rules, 2014 (Indian GAAP) and other relevant provisions of the Act. The date of transition to Ind AS is April 1, 2016. The financial
statements have been prepared on a historical cost basis, except where the financial assets and liabilities had to be measured
at fair value.
b Use of estimates
The preparation of the financial statements is in conformity with Ind AS which requires the management to make judgments,
estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and the disclosure of
contingent liabilities at the end of the reporting period. Although these estimates are based on the managements’ best knowledge
of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a
material adjustment to the carrying amount of assets or liabilities in future periods.
c Inventories
Inventories are valued at the lower of cost on weighted average basis and the net realisable value after providing for obsolescence
and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including
octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate
proportion of overheads and, where applicable, taxes.
d Depreciation and amortisation
Depreciation of tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule
II to the Companies Act, 2013 except in respect of the following categories of assets, in whose case the life of the assets has
been assessed as under, based on technical advice, taking into account the nature of the asset, the estimated usage of the
asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers
warranties and maintenance support, etc.:
Class of assets Years
Plant and Machinery 8 to 35 years

Leasehold Assets are amortised over the duration of the lease.
e Revenue recognition
Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer,
which generally coincides with the delivery of goods to customers.
Other income is accounted on accrual basis. Dividend income is accounted for when the right to receive income is established.
f Property, Plant and Equipment
Fixed assets, are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes
interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use
and other incidental expenses incurred up to that date. Machinery spares which can be used only in connection with an item of
fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of
the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase
in the future benefits from such asset beyond its previously assessed standard of performance. Fixed assets acquired and put to
use for project purpose are capitalised and depreciation thereon is included in the project cost till commissioning of the project.
Capital work-in-progress
57
Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising
direct cost, related incidental expenses and attributable interest.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all its property, plant and equipment
recognised as at April 1, 2015 measured as per previous GAAP and use that carrying value as the deemed cost of the
property, plant and equipment.
g Intangible assets
Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an intangible asset
comprises its purchase price, including any import duties and other taxes and any directly attributable expenditure on making the
asset ready for its intended use and net of any trade discounts and rebates.
Transition to Ind AS
On transition to Ind AS, the Company has elected that to continue with the carrying value of all intangible assets recognised as
at April 1, 2015 measured as per previous GAAP and use that carrying value as the deemed cost of intangible assets.
h Foreign currency transactions and translations

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of
the transaction. Year end balances of foreign currency monetary item is translated at the year end rates. Exchange differences
arising on settlement of foreign currency monetary items of the Company are recognised as income or expense in the Statement
of Profit and Loss. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating
to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining
useful life of such assets.
i Employee benefits
Employee benefits of short term nature are recognised as expense as and when these accrue. Long term employee benefits and
post employment benefits, whether funded or otherwise, are recognised as expenses based on actuarial valuation at year end
using the projected unit credit method. For discounting purpose, market yield of Government Bonds, at the balance sheet date,
is used. Re-measurement gain or losses arising from experience adjustments changes in actuarial assumptions are recognised
in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement
of changes in equity and in the balance sheet. Re measurements are not reclassified to profit or loss in subsequent periods.
j Borrowing costs
Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalised. Other borrowing costs
are recognised as expenses in the period in which they are incurred. In determining the amount of borrowing costs eligible for
capitalisation during the period, any income earned on the temporary investment of those borrowings is deducted from the
borrowing cost incurred.
k Leases
Assets leased by the Company in its capacity as lessee where substantially all the risks and rewards of ownership vest in the
Company are classified as finance leases. Such leases are capitalised at the inception of the lease at the lower of the fair value and the
present value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated
between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are
recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a
straight-line basis.
l Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items,
if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by
dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest
and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity
shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have
been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their
conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity
shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive
potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average
market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period.
58
m Taxes on income
The Income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable
income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
Income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The
tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in India.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes at the reporting date. ‘The carrying amount of deferred tax assets is reviewed at
each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all
or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.’Current tax and
deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive
income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in
equity.
n Research and development expenses
Expenditure incurred during research and development phase is charged to the Statement of Profit and Loss when no
intangible asset arising from such research.
o Impairment of Non Financial assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in use
and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life of the
assets. An impairment loss is recognised as an expense in the Statement of Profit and Loss in the year in which an asset is
identified as impaired. The Impairment loss recognised in prior accounting period is reversed if there has been an improvement
in recoverable amount.
p Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow
of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding
retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle
the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best
estimates. Contingent liabilities are disclosed in the Notes.
q Measurement Of Profit Before Depreciation/Amortization, Interest And Tax (PBDIT)

As per Ind AS 1 “Presentation of financial statements”, the Company has elected to present PBDIT as a separate line item on the
face of the statement of profit and loss. The Company measures PBDIT on the basis of profit/loss from continuing operations. In
its measurement, the Company does not include depreciation and amortisation expenses, finance costs and tax expenses.
r Fair Value measurement of financial instruments

The financial assets and liabilities are valued at fair values based on Ind AS 39, 109 and 113.
59
Note 3 Property, plant and equipment
₹ in Mn
Gross Block Depreciation Net Block
Particulars As at March Additions Deductions As at March As at March During the Deductions As at March As at March As at March
31, 2018 31, 2019 31, 2018 year 31, 2019 31, 2018 31, 2019

Land (Free hold) 25.55 - - 25.55 - - - - 25.55 25.55

Land and Site Development 953.39 - - 953.39 380.99 140.90 - 521.87 572.50 431.62

Building 1,476.52 - - 1,476.52 388.59 54.44 - 443.02 1,088.03 1,033.60

Plant and Machinery 10,038.49 5.05 - 10,043.94 3,610.29 296.34 - 3,906.61 6,428.30 6,137.52

Furniture and Fixtures 157.94 0.61 - 158.85 101.42 14.08 - 115.49 56.62 43.46
60

Office Equipment 33.44 1.21 - 34.65 22.74 3.36 - 26.09 10.80 8.65

Computer 81.05 0.52 - 81.77 77.98 0.55 - 78.52 3.17 3.55

Vehicles 107.42 - 13.22 94.20 57.60 8.91 5.71 60.80 49.84 33.42

V Sat 0.82 - - 0.82 0.82 - - 0.82 - -

Railway Siding 683.14 - - 683.14 240.27 45.46 - 285.72 442.97 397.62

Total 13,557.76 7.39 13.22 13,553.73 4,880.70 564.04 5.71 5,438.94 8,677.78 8,115.00
Previous Year 13,309.34 248.42 - 13,557.76 4,315.35 565.35 - 4,880.70 8,994.24 8,677.78

Note 4 Non current investments
Particulars As at 31 March, 2019 As at 31 March, 2018
₹ in Mn ₹ in Mn
Investments (At cost)
Trade and Unquoted
a. Investment in equity shares
Subsidiaries
Maithan Ispat Limited * 1,798.85 1,798.85
32,38,26,010 (PY - 32,38,26,010) equity shares of ` 10 each fully paid up
Others
Keonjhar Infrastructure Development Company Ltd 0.07 0.07
7,200 (PY - 7,200) equity shares of ` 10 each fully paid up
Mesco Steel Limited 100.00 100.00
2,50,000 (PY - 2,50,000) equity shares of ` 10 each fully paid up
b. Investment in preference shares
Subsidiaries
Maithan Ispat Limited - -
30,000,000 (PY- 30,000,000) 10% cumulative redeemable preference shares of
` 10 each fully paid up
Others
Keonjhar Infrastructure Development Company Ltd 20.00 20.00
2,000,000 (PY - 2,000,000) 6% cumulative redeemable preference shares of
` 10 each fully paid up
Total 1,918.92 1,918.92
* Out of which 15,43,45,526 (PY 15,43,45,526) equity shares have been pledeged with the lenders of Maithan Ispat Limited and
balance of 1,14,75,000 equity shares would be pledged, totalling to 16,58,20,526 being 51% of equity shares to be pledged as per
Agreement.
Note 5 Security deposits
₹ in Mn ₹ in Mn
Security deposits
Unsecured, considered good 62.43 53.17
Total 62.43 53.17
Note 6 Other financial assets

₹ in Mn ₹ in Mn
Loans and advances to related parties
Unsecured, considered good 2,526.70 2,429.26
Total 2,526.70 2,429.26
Note 7 Other non current assets

₹ in Mn ₹ in Mn
MAT credit entitlement
Total 872.32 918.32
Note 8 Inventories (At lower of cost and net realisable value)

₹ in Mn ₹ in Mn
Raw materials 136.26 206.77
Finished goods 931.84 901.71
Goods-in-transit - FG - 0.51
Stores and spares 61.17 49.90
Total 1,129.26 1,158.88
61
Note 9 Trade receivables
₹ in Mn ₹ in Mn
Trade receivables outstanding for a period exceeding six months from the date they
were due for payment
Other Trade receivables
Total 730.50 237.07
Note 10 Cash and cash equivalents

₹ in Mn ₹ in Mn
Cash and cash equivalents
Cash on hand 40.43 38.40
Balances with banks
In current accounts 72.79 45.62
In deposit accounts 305.56 33.33
In deposit accounts * 63.31 60.46
In earmarked accounts
- Unclaimed dividend accounts 37.48 33.72
Interest on Bank Deposits 15.38 10.88
Total 534.95 222.41
* Deposit includes the deposits with 100% margin issued by way of Bank Gurantee to various authorities & parties.
Note 11 Advances
₹ in Mn ₹ in Mn
Loans and advances to Suppliers
Loans and advances to employees
Total 558.56 369.48

₹ in Mn ₹ in Mn
Prepaid expenses
Balances with government authorities
Others Receivables
Unsecured, considered good - 10.00
Income Tax (Net of Provisions) 156.11 52.88
Total 280.88 191.46
Note 13 Equity share capital

Particulars As at 31 March, As at 31 March,
2019 2018
₹ in Mn ₹ in Mn
Authorised
200,000,000 (PY -140,000,000) Equity shares of ₹ 10 each 2,000.00 1,400.00
Issued , Subscribed and Paid up
137,875,000 (PY -137,875,000) Equity shares of ₹ 10 each 1,378.75 1,378.75
Total 1,378.75 1,378.75
62

A) Reconciliation of shares outstanding at the beginning and at the end of the reporting period
No. of shares ₹ in Mn No. of shares ₹ in Mn
Equity Shares
Opening Balance 137,875,000 1,378.75 137,875,000 1,378.75
Changes during the year - - - -
Closing Balance 137,875,000 1,378.75 137,875,000 1,378.75
B) Shareholders holding more than 5% of the ordinary shares in the company

No. of shares % No. of shares %
Equity Shares
Mideast (India) Limited 32,549,940 23.61 32,549,940 23.61
Mesco Mining Limited 17,000,000 12.33 17,000,000 12.33
Moorgate Industries India Private Limited 13,787,500 10.00 13,787,500 10.00
Mesco Steels Limited 13,146,800 9.54 13,146,800 9.54
Mesco Logistics Limited 12,151,700 8.81 12,151,700 8.81
Mesco Kalinga Steels Limited 10,000,000 7.25 10,000,000 7.25
Total 98,635,940 71.54 98,635,940 71.54
C) Right, preferences and restrictions attached to shares

Equity Shares- The company has one class of equity shares having par value of Rs. 10 each, rank pari passu in all respects including
voting rights and entitlement to dividend.
Note 14 Other equity
2019 2018
₹ in Mn ₹ in Mn
Capital Reserve
Opening balance 1,642.61 1,642.61
Add: Changes during the year - -
Closing balance 1,642.61 1,642.61
Securities premium account
Opening balance 677.70 677.70
Add : Premium on shares issued during the year - -
Closing balance 677.70 677.70
Surplus / (Deficit) in Statement of Profit and Loss
Add: Profit / (Loss) for the year (38.62) 232.92
Add / Less: Re-measurement gains/ (losses) on defined benefit plans 0.80 0.60

Total 5,219.98 5,257.80
63
Note 15 Borrowings
Non- Non-
Current Current
Current Current
Secured
Term loans from Banks (Refer note 1) 12.01 296.97 6.16 79.75
Term loans from Other Parties (Refer note 2) 32.79 19.19 50.23 18.61
44.80 316.16 56.39 98.36
Unsecured
From Promoters 283.99 - 262.64 -
From Banks (Refer note 2) 24.31 91.83 80.32 55.83
308.30 91.83 342.96 55.83
Total 353.10 408.00 399.36 154.19
Notes
(1) Term loans from banks
Particulars Terms of repayment and security As at 31 March, 2019 As at 31 March, 2018
Non- Current Non- Current
Current Current
ICICI Bank Limited Vehicle loan of ₹ 1.19 Mn (PY ₹ 1.56 Mn) are secured 0.78 0.41 1.19 0.37
by first charge by way of hypothecation of the respective
vehicles. Number of balance EMI payable is 32.
ICICI Bank Limited Vehicle loan of ₹ 4.33 Mn (PY ₹ 5.96 Mn) are secured by 2.56 1.77 4.33 1.63
first charge by way of hypothecation of the respective
ICICI Bank Limited Vehicle loan of ₹ 3.50 Mn (PY ₹ NIL) are secured by 2.46 1.04 - -
Kotak Bank Limited Term loan of ₹ NIL(PY ₹ 56.63 Mn) is secured by 2nd - 290.92 - 56.63
charge on assets of Pig Iron Plant and residential flat at
Bhubneswar.
Bank Of India Loan against FD - - - 20.80
Total 12.01 296.97 6.16 79.75
64
Term loans from other parties

Daimler Financial Vehicle loan of ₹ 0.07 Mn (PY ₹ 1.56 Mn) are secured - 0.07 0.12 1.44
Services Pvt. Ltd. by first charge by way of hypothecation of the respective
vehicles. Number of balance EMI payable is 1
Srei Equipment Equipment loan of ₹ 51.91 Mn (PY ₹ 67.28 Mn) are 32.79 19.12 50.11 17.17
Finance Limited secured by first charge by way of hypothecation of the
respective equipment. Number of balance EMI payable
is 43.
Total 32.79 19.19 50.23 18.61

(2) Details of borrowings guranteed by directors or others
Particulars Terms of repayment As at 31 March, 2019 As at 31 March, 2018
Non- Current Non- Current
Current Current
Banyantree Bank Ltd, External Commercial Borrowing (ECB) of USD Mn (PY - 65.10 40.65 40.65
Mauritius USD 1.88 Mn) is payable in 8 equitable installments
starting June 2016.
Banyantree Bank Ltd, External Commercial Borrowing (ECB) of USD 0.21 Mn - 14.58 9.32 7.59
Mauritius (PY USD 0.335 Mn) is payable in 12 installments. Number
of instalments payable is 2.
Banyantree Bank Ltd, External Commercial Borrowing (ECB) of USD 0.53 Mn 24.31 12.15 30.35 7.59
Mauritius (PY USD 0.7 Mn) is payable in 12 installments. Number of
instalments payable is 8.
Total 24.31 91.83 80.32 55.83
Note 16 Trade payables

₹ in Mn ₹ in Mn
Trade payables 387.11 548.50
Total 387.11 548.50
Note 17 Other financial liabilities

₹ in Mn ₹ in Mn
Advances from customers 4,957.01 5,199.63
Total 4,957.01 5,199.63
Note 18 Employee benefit obligations

₹ in Mn ₹ in Mn
Provision for employee benefits
Provision for gratuity 54.19 46.68
Provision for leave encashment 11.78 10.70
Total 65.97 57.38
65

₹ in Mn ₹ in Mn
Micro, Small & Medium enterprises - -
Others 2,045.55 1,711.19
Total 2,045.55 1,711.19

₹ in Mn ₹ in Mn
Current maturities of long-term debt 408.00 154.19
Interest accrued and due on borrowings 1.39 -
Unclaimed dividends 37.49 33.73
Statutory Dues 772.65 339.45
Trade / security deposits received 31.08 35.28
Advances from customers 520.16 412.78
Employee related liabilities 43.76 44.54
Total 1,814.55 1,019.97

₹ in Mn ₹ in Mn
Total 9.15 8.02
Note 22 Revenue from operations

Particulars As at As at
31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
Sale of products 8,702.37 6,315.81
Less: GST on sales 1,318.92 489.72
Total 7,383.45 5,826.09
As at 31 March, 2019 As at 31 March, 2018

Particulars ₹ in Mn ₹ in Mn
Sale of products comprises
Plant-Manufactured Goods 6,854.74 2,731.53
Plant-Traded Goods 528.70 13.50
Mines - 3,081.06
Total 7,383.45 5,826.09
66

Note 23a Cost of materials consumed
2019 2018
₹ in Mn ₹ in Mn
Opening stock 206.77 172.60
Add: Purchases 6,286.00 2,199.49
Less: Closing stock 136.26 206.77
Cost of material consumed 6,356.51 2,165.32

Material consumed comprises
Raw material -Iron ore 1,319.05 365.89
Raw material - Coke 4,545.08 1,720.40
Other items 492.38 79.03
Total 6,356.51 2,165.32
Note 23b Changes in inventories of finished goods, work-in-progress and stock-in-trade

2019 2018
₹ in Mn ₹ in Mn
Inventories at the end of the year
Stock-in-transit - FG - 0.51
931.84 902.22
Inventories at the beginning of the year
Work-in-progress - 28.63
Stock-in-transit - FG 0.51 -
902.22 704.71
Less: Excise duties on increase / (decrease) of finished goods 5.33 (46.00)
Net increase / (decrease) 24.29 243.51
Note 24 Employee benefits expenses

31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
Salaries and wages 255.46 415.45
Contributions to provident and other funds 16.33 18.11
Provision for leave 0.82 (2.23)
Staff welfare expenses 4.56 5.60
Total 286.09 448.01
67
Note 25 Other expenses
2019 2018
₹ in Mn ₹ in Mn
Consumption of stores and spare parts 92.32 98.93
Royalty cost - 934.73
Mining cost - 416.20
Power and fuel 119.33 76.74
Water charges 13.58 11.24
Material handling charges 8.48 32.39
Rent & plot hiring charges 27.74 26.78
Repairs and maintenance - Buildings 1.96 3.69
Repairs and maintenance - Machinery 6.03 43.41
Repairs and maintenance - Others 26.95 6.75
Labour charges 22.65 35.77
Insurance 19.63 11.24
Rates and taxes 11.04 14.39
Communication 4.17 3.87
Travelling and conveyance 39.57 36.86
Selling & distribution 10.39 16.00
Donations and contributions 19.86 23.99
Legal and professional 53.99 64.80
Net loss on foreign currency transactions and translation 40.22 1.95
Payments to auditors (Refer Note below) 1.69 1.65
CSR expenses 1.75 3.71
Miscellaneous expenses 31.72 29.55
Total 553.07 1,894.65
Note
2019 2018
₹ in Mn ₹ in Mn
Payments to the auditors comprises
For statutory audit 1.65 1.63
For Taxation Matters 0.04 0.02
Total 1.69 1.65
Note 26 Finance costs

2019 2018
₹ in Mn ₹ in Mn
Interest expense on
Borrowings 43.69 800.42
Interest on delayed / deferred payment of statutory dues 2.16 10.42
Other borrowing cost - 12.58
Total 45.85 823.43
68

Note 27 Other income
31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
Interest income (Refer Note below) 8.78 18.27
Rental Income - 7.00
Liabilities / provisions no longer required written back 393.67 102.01
Others 8.76 -
Total 411.21 127.28

Note
31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
Interest income comprises
Interest from banks deposits 8.78 7.43
Interest from others - 10.84
Total 8.78 18.27
Note 28 Additional information to the financial statements

31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
28.1 Contingent liabilities (to the extent not provided for)
(a) Claims against the company not acknowledged as debt
(i) Central excise, customs and service tax 1,172.66 326.45
(ii) Sales tax and entry tax 248.39 246.80
(iii) Income Tax 57.76 57.76
(b) Guarantee provided in respect of obligations of a subsidiary 7,829.50 7,829.50

28.2 Capital Commitments
31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
Estimated amount of contracts remaining to be executed on capital account 105.34 99.90
and not provided for (net of advances)
28.3 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006
The Company has not received intimation from vendors regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006. Consequently the amount paid/payable to these parties is NIL.
28.4 Details on unhedged foreign currency exposures
The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below
As on 31st March 2019 As on 31st March 2018

Receivable /(Payable) ₹ in Mn Receivable /(Payable) USD in Mn Receivable / Receivable /
(Payable) (Payable)
₹ in Mn USD in Mn
(115.99) (1.67) (576.76) (8.87)
69
Note 28 Additional information to the financial statements (contd.)
28.5 Value of imports calculated on CIF basis

Particulars For the year ended For the year ended
31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
Raw materials - -
Spare parts - -
Capital goods - -
28.6 Expenditure in foreign currency
Interest 35.65 7.95
Travelling 4.25 3.15
Consultancy - 0.16
28.7 Details of consumption of imported and indigenous items

Particulars For the year ended 31 March, 2019

₹ in Mn %
Imported
Raw Materials - -
Spare parts - -
Indigenous
Raw materials - -
Spare parts - -
Total - -
Note: Previous year figures are NIL

28.8 Earnings in foreign exchange
Particulars For the year ended For the year ended
31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
Export of goods calculated on FOB basis 6.73 16.10
Note 29 Disclosures under Accounting Standards

29.1 Post retirement benefit plans
29.1a Defined contribution plans
The Company makes Provident Fund contribution to defined contribution plans for qualifying employees. Under the Schemes,
the Company is required to contribute a specified percentage of the payroll costs to fund the benefit. The Company recognised
₹ 16.33 Mn (PY - ₹ 18.11 Mn) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable
to the plan by the Company is at rate specified in the rules of the scheme.
29.1b Defined benefit plans
The Company’s post retirement defined benefit plans include Gratuity which is unfunded. The following table sets out the
provision for gratuity amount recognised in the financial statements.
70

Note 29 Disclosures under Accounting Standards (contd.)
Particulars Year ended Year ended
31 March, 2019 31 March, 2018
Gratuity Gratuity
₹ in Mn
Components of employer expense
Current service cost 5.91 5.27
Interest cost 3.74 3.28
Past service cost - 1.96
Actuarial losses/(gains) 1.19 (4.44)
Total expense recognised in the Statement of Profit and Loss 10.84 6.07
Actual contribution and benefit payments for year
Actual benefit payments 1.94 0.53
Actual contributions - -
Net asset / (liability) recognised in the Balance Sheet
Present value of defined benefit obligation (62.10) (53.19)
Fair value of plan assets - -
Funded status [Surplus / (Deficit)] - -
Unrecognised past service costs - -
Net asset / (liability) recognised in the Balance Sheet (62.10) (53.19)
Change in defined benefit obligations (DBO) during the year
Present value of DBO at beginning of the year 53.19 47.66
Actuarial (gains) / losses 1.19 (4.44)
Benefits paid (1.94) (0.53)
Present value of DBO at the end of the year 62.10 53.19
Actuarial assumptions
Discount rate 7.50% 7.50%
Salary escalation 6% 6%
Mortality tables IALM(2006-08) Ult IALM(2006-08) Ult
29.2 Segment information
The Company’s business activity primariliy falls within a single business segment i.e, Iron and Steel business and hence there
are no disclosures to be made under Ind AS 108.
Related party transactions

Details of related parties
Note Description of relationship Names of related parties
29.3a Subsidiaries Maithan Ispat Limited
Key Management Personnel (KMP) Mrs. Rita Singh (Chairperson cum Managing Director)
Mrs. Natasha Singh Sinha (Joint Managing Director))
Ms. Sandhya Sethia *
Mr. S. N. Kambali
Mr. Pawan Kumar (Company Secretary)
Relatives of KMP Mr. Jitendra Kumar Singh
Mrs. Shipra Singh Rana
Company in which KMP / Relatives of KMP a) Mesco Steels Limited
can exercise significant influence b) Mesco Logistics Limited
c) Mesco Kalinga Steels Limited
d) Mesco Mining Limited
e) Mideast India Limited
f) Mesco Pharmaceuticals Limited
g) Mesco Hotels Limited
71
h) Mesco Aerospace Limited

i) Mesco Laboratories Limited
j) Mesco Shoes Limited
k) Twenty First Century Finance Limited
l) Mesco India Limited
m) Chhindwara Coal Washing Private Limited
n) Forrester Foods Private Limited
o) Chhindwara Energy Limited
p) Chhindwara Power Limited
q) Gondwana Energy Limited
r) SAARC Helicopters Private Limited
s) Mesco Magic Cement Ltd
t) SS & R Films Private Limited
Note: Related parties have been identified by the Management.
* Ms. Sandhya Sethia ceases to be Company Secretary from 1st October 2018.
₹ in Mn
Note Details of related party transactions during the year ended 31 March, 2019 and balances outstanding as at 31 March,
2019:
29.3b Transaction during the year Subsidiary KMP Relatives of Entities in
KMP which KMP
/ relatives
of KMP have
significant
influence
Rentals services
Mesco Steels Limited 0.41
(0.41)
Mesco Logistics Limited 0.68
(0.68)
Mesco Hotels Limited 0.82
(0.82)
Mesco Kalinga Steels Limited 0.82
(0.82)
Mrs. Rita Singh 6.00
(6.00)
Mrs. Natasha Singh Sinha 6.00
(6.00)
Mrs. Shipra Singh Rana 0.60
(0.60)
Remuneration
Mr. Jitendra Kumar Singh 13.94
(30.04)
(33.36)
(18.46)
(8.37)
Mr. Ravipati Hanumantha Rao -
(1.20)
Mr. Priyabrata Patnaik -
(9.00)
Ms. Sandhya Sethia 0.64
(1.21)
Mr. Pawan Thakur 0.62
72

₹ in Mn
Purchase of Goods
Maithan Ispat Limited 220.66
(including duties & taxes) (467.49)
Mesco Kalinga Steels Limited 1,141.32
(including duties & taxes)
Sale of Goods
(including duties & taxes) -
(including duties & taxes) -
Loans and Advances given
(52.13)
Mesco Magic Cement Limited 20.31
(19.64)
Mesco Mining Limited 59.37
(61.29)
Mesco Aerospace Limited 48.49
(54.36)
Mesco Pharmaceuticals Limited 3.58
(0.33)
Investment in shares
Maithan Ispat Limited -
(1,798.85)
Rental Income
(6.00)
Corporate guarantees given
Maithan Ispat Limited -
(7,829.50)
Balances outstanding at the end of the year
Advances
Mesco Steels Limited 2,135.70
(2,093.07)
(266.00)
(54.36)
Mesco Logistocs Limited -
(81.36)
S S & R Films Private Limited 0.01
(0.01)
Saarc Helicopters Private Limited 0.02
(0.02)
(0.33)
21st Century Finance Limited 1.71
(1.71)
Mideast India Limited -
(3.69)
73
₹ in Mn
Forrester Foods Private Limited 6.88
(6.88)
(61.29)
Kayaana Constructions Limited 3.20
(3.20)
-
-
Mesco Logistocs Limited 0.44
-
Mesco Laboratories Limited 0.01
-
Payables
(1.31)
Mesco Hotels Limited -
(0.05)
Mesco Magic Cement Limited -
(0.67)
Mesco Shoes Limited 0.76
(0.76)
Mideast India Limited 1.91
-
* Remuneration includes perquisites computed as per Income Tax Act.
Note: Figures in bracket relates to the previous year
Particulars For the year For the year

ended 31 ended 31
March, 2019 March, 2018
29.4 Earnings per share
Basic & Diluted
Net profit / (loss) for the year attributable to the equity shareholders (₹ in Mn) (38.62) 232.92
Weighted average number of equity shares 137,875,000 137,875,000
Par value per share (₹) 10 10
Earnings per share (₹) (0.28) 1.69

31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
29.5 Deferred tax (liability) / asset
Tax effect of items constituting deferred tax liability
On difference between book balance and tax balance of fixed assets (757.28) (753.98)
Tax effect of items constituting deferred tax liability (757.28) (753.98)
Tax effect of items constituting deferred tax assets
Provision for compensated leaves, gratuity and disallowances under Income Tax 17.80 16.50
Tax effect of items constituting deferred tax assets 17.80 16.50
Net deferred tax (liability) / asset (739.48) (737.48)
74

Note 30 In pursuance to the Judgement dated 2nd August, 2017 of Honorable Supreme Court of India, in the matter of Writ Petition
(Civil) No. 114 of 2014 (Common Cause v/s Union of India & Others), an amount of ₹ 924.75 crores has been imposed on
the Company towards ‘Compensation’ as determined in the said Judgement which was to be paid by 31st December
2017, eventhough the Government Taxes and Royalty was paid on the ores extracted. Since the amount was not paid by
the stipulated date, the Honorable Supreme Court ordered to stop mining operations with effect from 1st January 2018.
The Company has however filed a ‘Curative petition’ (Civil) before the Honorable Supreme Court of India challenging the
Judgement and which is still pending. Hence provision has not been made for the same in the books of accounts.
Note 31 The company intends to convert unsecured loans received from Promoters into Equity in compliance with the provisions of
Companies Act 2013 and SEBI (ICDR) Regulations 2009 subject to approval of requisite authority.
Note 32 The balances of Debtors, creditors, loans & advances received & given and deposits received & given and inter company
balances are subject to confirmations and reconciliations.

Note 33 Disclosure in respect of Corporate Social Resonsibility under section 135 of the Companies Act and the Rules thereon:
₹ in Mn
Particulars Cash Yet to Total
be paid
in cash
Amount spent during the year ending March 31, 2019
i) Construction/acquisition of any asset - - -
ii) On purpose other than (i) above 0.10 - 0.10
Amount spent during the year ending March 31, 2018
i) Construction/acquisition of any asset - - -
ii) On purpose other than (i) above 0.07 - 0.07


Natasha Sinha
Arun Todarwal Jt. Managing Director & CFO Rita Singh
Partner DIN 00812380 CMD
M. No. 32822 DIN 00082263

Place : New Delhi S N Kambali Pawan Kumar

Date : 21 June 2019 Director & CEO Thakur
DIN 08182398 Company Secretary

75
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF MIDEAST INTEGRATED STEELS LIMITED
Report on the Audit of the Consolidated Financial Statements Qualified Opinion
1. We have audited the accompanying Consolidated financial statements of M/s Mideast Integrated Steels Limited (“the
Company”), which includes its subsidiary (the Company and its subsidiary, together referred to as “the Group”) which
comprise the Consolidated Balance Sheet as at March 31, 2019, the Consolidated Statement of Profit and Loss (including
Other Comprehensive Income), the Consolidated Statement of Changes in Equity and the Consolidated Statement of
Cash Flows for the year ended on that date, and a summary of the significant accounting policies and other explanatory
information (hereinafter referred to as “the Consolidated financial statements”).
2. In our opinion and to the best of our information and according to the explanations given to us, except for the effects
of the matter described in the Basis for Qualified Opinion section of our report, the aforesaid Consolidated financial
statements, give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a
true and fair view, in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with
the Companies (Indian Accounting Standards) Rules, 2015, as amended, (“Ind AS”) and other accounting principles
generally accepted in India, of the consolidated state of affairs of the Group as at March 31, 2019, and total consolidated
comprehensive loss (comprising of the consolidated loss and consolidated other comprehensive loss), consolidated
changes in equity and its consolidated cash flows for the year ended on that date.
Basis for Qualified Opinion
3. We conducted our audit of the Consolidated financial statements in accordance with the Standards on Auditing specified
under section 143(10) of the Act (SAs). Our responsibilities under those Standards are further described in the Auditor’s
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the
Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together
with the independence requirements that are relevant to our audit of the Consolidated financial statements under the
provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI’s Code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our qualified audit opinion on the Consolidated financial statements.
Qualifications
In the audit report of the Holding Company – Mideast Integrated Steels Limited
1. In pursuance to the judgement dated 2nd August, 2017 of Honorable Supreme Court of India, in the matter of Writ
Petition (Civil) No. 114 of 2014 between Common Cause v/s Union of India & Others, there is a penalty imposed of
Rs 924 crores along with interest on the company for excess production of Iron Ore during 2000-01 to 2010-11. The
Company was supposed to make the payment of this compensation on or before 31st December 2017, failing which
the mines of the Company are closed down wef 1st January 2018. The Company has filed a ‘Curative petition’ (Civil)
on 28th March 2018, before the Honorable Supreme Court of India challenging the Judgement and which we have been
informed is still pending. Hence, no provision has been made for the same in the books of accounts. However, in our
opinion, this penalty has been crystalized and accordingly, a provision should have been made in the books to the extent
of Rs 924 crores along with interest upto date.
2. Balance confirmations and bank statements have not been provided to us for some banks accounts and loans. Details
are as per Annexure I attached herewith.
3. The deferred tax working has not been shared with us, hence we are unable to comment upon the correctness of the
same, as on 31st March 2019.
4. The Company has an investment of Rs 179.88 crores in its Subsidiary, Maithan Ispat Limited. Based on the financials of
its subsidiary, the Net worth is negative and the liabilities exceed the assets of the subsidiary company. In the absence
of any impairment testing done, we are unable to comment on the investment value taken in the Company’s books.
In the audit report of the Subsidiary Company – Maithan Ispat Limited
1. The deferred tax working has not been shared with us, hence we are unable to comment upon the correctness of the
same, as on 31st March 2019.
2. Balance confirmations and bank statements have not been provided to us for some banks, fixed deposits and loans.
Details are as per Annexure I attached herewith.
3. The internal audit report has not been shared with us, for the year ended 31st March 2019.
Emphasis of Matter
76
2. In the absence of complete details and documentation for additions made to Capital Work in progress, we are unable to
comment on the same.
3. In our opinion, a provision for doubtful debts of Rs 8.87 crores needs to be made against the balances of non moving old
Debtors & Creditors (where advances have been given by the Company), as on 31st March 2019. No litigation has been
initiated by the Company on these balances.
4. In the absence of complete stock valuation details, we are unable to comment on the stock valuation taken as on 31st
March 2019.
1. The total assets of the company stand at Rs 738.25 crores, and the total liabilities as on 31st March 2019 are Rs 765.86
crores. The plant has been shut down since January 2019. The accumulated losses for the company as on 31st March
2019 are Rs 811.76 crores and the Net worth is negative Rs 27.62 crores. However, the Company has entered into a job
work agreement (as Operation, Maintenance & Sales – OM&S) subsequently after the year end which would revive the
plant of the Company. In view of the above, the Company may be considered as a going concern.
3. In our opinion, a provision of Rs 10.56 crores for doubtful debts needs to be made against the old non moving debtor &
supplier balances (where advances have been given by the Company) as on 31st March 2019. Further, no litigation has
been initiated by the Company on these amounts
Key Audit Matters
4. Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
Consolidated financial statements of the current period. These matters were addressed in the context of our audit of
the Consolidated financial statements, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. We do not have any matters determined to be the key audit matters to be communicated in our report.
Information Other than the Consolidated Financial Statements and Auditor’s Report Thereon
5. The Company’s Board of Directors is responsible for the preparation of the other information. The other information
comprises the information included in the Management Discussion and Analysis, Board’s Report including Annexures
to Board’s Report, Business Responsibility Report, Corporate Governance and Shareholder’s Information, but does not
include the Consolidated financial statements and our auditor’s report thereon.
Our opinion on the Consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the Consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the Consolidated financial
statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
are required to report that fact.
Since we have not been provided with the other information, we will not be able to report on the same.
Responsibilities of management and those charged with governance for the Consolidated Financial Statements
6. The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to
the preparation of these Consolidated financial statements that give a true and fair view of the consolidated financial
position, consolidated financial performance, total consolidated comprehensive income, consolidated changes in equity
and consolidated cash flows of the Group in accordance with the Ind AS and other accounting principles generally
accepted in India. This responsibility also includes maintenance of adequate accounting records in accordance with
the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are
reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the Consolidated financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
7. In preparing the Consolidated financial statements, management is responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
The Board of Directors are responsible for overseeing the Group’s financial reporting process.
77
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
8. Our objectives are to obtain reasonable assurance about whether the Consolidated financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these Consolidated financial statements.
9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that
are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing
our opinion on whether the Group has adequate internal financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Consolidated financial statements, including the
disclosures, and whether the Consolidated financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.
• Materiality is the magnitude of misstatements in the Consolidated financial statements that, individually or in
aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial
statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements
in the financial statements.
10. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
11. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
12. From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the Consolidated financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
Report on Other Legal and Regulatory Requirements
13. As required by Section 143(3) of the Act, subject to the qualified opinion given above, based on our audit, we report
that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept so far as it appears from our examination
of those books.
c. The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including Consolidated Other
Comprehensive Income, Consolidated Statement of Changes in Equity and the Consolidated Statement of Cash
Flow dealt with by this Report are in agreement with the relevant books of account.
78
d. In our opinion, the aforesaid Consolidated financial statements comply with the Ind AS specified under Section 133
of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of the written representations received from the directors as on March 31, 2019 of the Group, taken on
record by the Board of Directors, none of the directors are disqualified as on March 31, 2019 from being appointed
as a director in terms of Section 164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness
of such controls, in our opinion and to the best of our information and according to the explanations given to us, the
Group, have, in all material respects, internal financial controls system over financial reporting however they need
to be strengthened, as at March 31, 2019, based on the internal control over financial reporting criteria established
by the respective companies considering the essential components of internal control stated in the Guidance Note
on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
g. With respect to the other matters to be included in the Auditor’s Report in accordance with the requirements of
section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration
paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
h. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies
(Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the
explanations given to us, subject to the qualified opinion given above:
i. The Group has disclosed the impact of pending litigations on its financial position in its Consolidated financial
statements.
ii. The Group has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts.
iii. There has been no delay in transferring amounts, if required to be transferred, to the Investor Education and
Protection Fund by the Group.
For and on behalf of
Arun Todarwal & Associates LLP
ICAI Reg No: W100291
Arun Todarwal
Partner
M. No.: 032822
Dated : 21st June, 2019
Place: Mumbai
79
ANNEXURE I TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE CONSOLIDATED FINANCIAL
STATEMENTS OF M/S MIDEAST INTEGRATED STEELS LIMITED AS ON 31ST MARCH 2019
Details of banks and loans where balance confirmations and bank statements have not been provided to us for
verification:
Bank balances:
Sr Particulars Account number Closing Amount as per

No. books (Rs)
1 Punjab National Bank XXXXXXXXXX1037 6,68,550
2 Central Bank of India (EEFC) XXXXXX4776 9,778
5 ICICI Bank XXXXXXXX3764 2,204
Loans by Other financial institutions:
Sr Particulars Closing Amount as per

No. books (Rs)
1 SREI Equipment Finance Limited (51,912,169)

Details of banks, fixed deposits and loans where balance confirmations or bank statements have not been provided to us for
verification:
Bank balances:
Sr Particulars Account number Closing Amount as per

No. books (Rs)
1 State Bank of India XXXXXXX7143 Nil
Fixed Deposit, Bank Guarantees (BG) Margin and Letter of Credit (LC) Margin balances:
Sr Particulars Closing Amount as per books

No. (Rs)
1 State Bank of India – BG Margin 23,99,500
2 State Bank of India – LC Margin 67,764,662
3 State Bank of India Fixed Deposit (55,809,082)
4 Allahabad Bank – BG Margin 78,96,000
5 Allahabad Bank – LC Margin (31,05,000)
6 Punjab National Bank – BG Margin 44,40,000
7 Punjab National Bank – LC Margin 15,155,450
Secured Loans and LC Acceptances by Banks:
Sr Particulars Loan Account number Closing Amount as per

No. books (Rs)
1 Indian Overseas Bank XXXXXXXXXXX0001 (486,735,631)
2 Dena Bank XXXXXXXX3811 (459,900,000)
3 Dena Bank XXXXXXXX3826 (15,805,664)
4 Punjab National Bank – LC Acceptance (259,385,600)
5 State Bank of India – LC Acceptance (62,000,014)
6 Allahabad Bank – LC Acceptance (50,737,847)
80
Consolidated Balance Sheet as at 31 March, 2019

Particulars Note As at As at
No. 31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
ASSETS
Non current assets
Property, plant and equipment 3 11,925.35 12,682.22
Capital work-in-progress 702.29 536.87
Non current investments 4 120.10 120.10
Financial assets
Security deposits 5 116.60 107.94
Other financial assets 6 2,401.70 2,304.26
Other non current assets 7 1,179.18 1,209.46
Deferred tax assets (Subsidiary) 1,398.05 1,398.05
Current assets
Inventories 8 2,104.58 2,579.58
Financial assets
Trade receivables 9 481.92 120.88
Cash and cash equivalents 10 695.89 694.12
Advances 11 731.52 537.07
Other financial assets 12 310.00 389.16
22,167.18 22,679.71
EQUITY AND LIABILITIES
Equity
Equity share capital 13 1,378.75 1,378.75
Other equity
Securities premium 14 677.70 677.70
Retained earnings (391.07) 471.52
Other reserves 1,642.61 1,642.61
Equity attributable to equity shreholders of parent 3,307.99 4,170.58
Non-controlling interests 991.80 517.29
Total Equity 4,299.79 4,687.87
Non current liabilities
Borrowings 15 3,563.67 3,873.10
Trade payables 16 - 548.50
Deferred tax liabilities 30.5 739.48 737.48
Capital reserves on consolidation 1,396.71 1,315.39
Current liabilities
Trade payables 19 3,534.37 3,681.34
22,167.18 22,679.71
Notes forming part of the financial statements 1-33




M. No. 32822 DIN 00812380 DIN 00082263

Date : 21 June, 2019 Director & CEO Company Secretary
DIN 08182398
81
Consolidated Statement of Profit and Loss for the year ended 31 March, 2019
Particulars Note No. For the year For the year

ended ended
31 March, 31 March,
2019 2018
₹ in Mn ₹ in Mn
Revenue from operations (Gross) 22 12,509.92 10,663.32
Total revenue 12,509.92 10,663.32
Expenses
Cost of materials consumed 23a 8,502.82 4,686.12
Changes in inventories of finished goods, work-in-progress and stock-in-trade 23b 64.33 (488.78)
GST on Sales 22 1,888.01 1,186.20
Employee benefits expense 24 423.26 588.26
Other expenses 25 1,370.84 2,842.61
Total expenses 12,249.25 8,814.40
Earnings before interest, tax, depreciation and amortization (EBITDA) 260.66 1,848.91
Less:
Depreciation and amortisation expense 3 823.92 828.69
Finance costs 26 1,089.22 1,732.06
Add:
Other income (Net) 27 838.46 136.79
Profit before extraordinary items, exceptional items and Prior Period (814.02) (575.07)
Items and tax
Exceptional/Extraordinary items - -
Profit before tax (814.02) (575.07)
Tax expense:
Current tax (Net of MAT) - 64.70
Tax expense relating to prior years 50.00 -
Deferred tax 2.00 1.77
Profit for the year (866.02) (641.54)
Other Comprehensive Income
Not to be reclassified to profit or loss in subsequent periods:
Re-measurement gains/ (losses) on defined benefit plans (0.03) (3.26)
Less: Income tax effect - -
Other comprehensive income for the year, net of tax (0.03) (3.26)
Total Comprehensive income (866.05) (644.80)
Attributable to:
Equity Shareholders of Parent (862.59) (642.22)
Non Controlling interest (3.46) (2.58)
Earnings per Equity share (of ₹ 10/- each)
Basic & Diluted (₹) (6.28) (4.65)




M. No. 32822 DIN 00812380 DIN 00082263

DIN 08182398
82
Consolidated Cash Flow Statement for the year ended 31 March, 2019
Particulars For the year ended 31 For the year ended 31

A. Cash flow from operating activities
Net Profit / (Loss) before extraordinary items and tax (814.02) (575.07)
Adjustments for
Depreciation and amortisation 823.92 828.69
Finance costs 491.18 1,316.78
Interest income (8.78) (18.27)
Rental income - (7.00)
Liabilities / provisions no longer required written back (428.86) (102.17)
Interest/Dividend MEGA sales tax incentive received (8.41) (1.85)
Interest & Fianacial Charges 6.11
Net unrealised exchange (gain) / loss 58.43 2.77
927.48 2,025.06
Operating profit / (loss) before working capital changes 113.46 1,449.99
Adjustments for (increase) / decrease in operating assets
Inventories 475.00 (612.20)
Trade receivables (367.58) (325.28)
Short-term loans and advances (189.07) (316.03)
Long-term loans and advances (97.43) (631.81)
Other non-current assets 46.00 36.03
Other current assets 35.71 188.48
Adjustments for increase / (decrease) in operating liabilities
Trade payables (676.81) 1,939.01
Other current liabilities 540.76 265.45
Other long-term liabilities (242.62) (211.87)
Short-term provisions 1.13 2.58
Long-term provisions 8.59 4.55
(466.32) 338.91
Cash generated from operations (352.86) 1,788.90
Net income tax (paid) / refunds (104.07) (113.59)
Net cash flow from / (used in) operating activities (A) (456.93) 1,675.31
B. Cash flow from investing activities
Purchase of fixed assets including capital advance (232.45) (217.14)
Rental receipt - 7.00
Interest received 8.78 18.27
Interest/Dividend MEGA sales tax incentive received 16.70 (5.13)
Investment in fixed deposit/Proceeds from fixed deposits 379.58 27.01
172.61 (169.99)
Net cash flow from / (used in) investing activities (B) 172.61 (169.99)
C. Cash flow from financing activities
Proceeds/(Repayment) of borrowings 751.79 63.11
Finance cost (405.77) (1,319.10)
346.02 (1,255.99)
Net cash flow from / (used in) financing activities (C) 346.02 (1,255.99)
Net increase / (decrease) in Cash and cash equivalents (A+B+C) 61.70 249.33
Cash and cash equivalents at the beginning of the year 441.87 192.54
Cash and cash equivalents at the end of the year 503.55 441.87



M. No. 32822 DIN 00812380 DIN 00082263
DIN 08182398
83
Note 1 Corporate Information
Mideast Integrated Steel Ltd, “The Company” is domiciled in India and was incorporated under the provisions of The Companies
Act, 1956. The Company is having the its Registeres Office in New Delhi with iron ore mining at Barbil and manufacturing unit
at Jajpur, Odisha
On 31st March 2015, the Company has acquired 181,029,798 (99.28%) Equity Shares and 30,000,000 of 10% Cumulative
Redemable Preference Shares of M/s. Maithan Ispat Ltd and thus became Holding Company.
The Company is primarily engaged in extraction of iron ore and production of pig iron. As a part of backward integration, the
Company has Sinter production facilities and a gas based power plant
Note 2 Significant accounting policies

a Basis of accounting and preparation of financial statements
The financial statements are prepared under the historical cost convention, on an accrual basis and in accordance with the
Generally Accepted Accounting Principles in India. The Company has prepared these financial statements to comply in all
material aspects with the Accounting Standards as notified under section 133 of the Companies Act, 2013 read together
with paragraph 7 of the Companies (Accounts) Rules 2014. The Company follows the mercantile system of accounting
and recognises income and expenditure on accrual basis to the extent measurable. The accounting polices adopted in the
preparation of financial statements are consistent with those used in the previous year.
b Use of estimates
The preparation of the financial statements in conformity with Indian GAPP requires the management to make judgments,
estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and the disclosure
of contingent liabilities at the end of the reporting period. Although these estimates are based on the managements’ best
knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amount of assets or liabilities in future periods.
c Inventories
Raw materials and stores & spares are valued at lower of cost on weighted average basis and the net realisable value. Cost
includes the purchase price as well as incidental expenses. However, materials and other items held for use in the productionof
finished goods are not written down below cost if the finished products in which they will be incorporated are expected to be
sold at or above cost. Work-in-progress and Finished Goods are valued at lower of cost and net realisable value. Cost include
direct materials, labour cost and a appropriate proportion of overheads. Cost of finished goods includes excise duty.
d Depreciation and amortisation

Depreciation of tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in
Schedule II to the Companies Act, 2013 except in respect of the following categories of assets, in whose case the life of the
assets has been assessed as under, based on technical advice, taking into account the nature of the asset, the estimated
usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes,
manufacturers warranties and maintenance support, etc.
Class of assets Years

Plant and Machinery 8 to 35 years
Estimated useful lifeas specified in Schedule II to the Companies Act, 2013 is adjusted in respect of plant and machinery
working on shift basis.
Leasehold Assets are amortised over the duration of the lease.
Computer software are amortised over a period of three years on straight line basis.
e Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue
can be reliably measured.
Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been
passed to the buyer, usually on delivery of the goods. The Company collects sales taxes and value added taxes (VAT) on behalf
of the government and, therefore, these are not economic benefits flowing to the company. Hence, they are excluded from
revenue. Excise duty deducted from revenue (gross) is the amount that is included in the revenue (gross) and not the entire
amount of liability arising during the year.
84

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable
interest rate. Interest income is included under the head “other income” in the statement of profit and loss.
Other income is accounted on accrual basis. Dividend income is accounted for when the right to receive income is
established.
f Tangible fixed assets

Fixed assets, are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes
interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended
use and other incidental expenses incurred up to that date. Machinery spares which can be used only in connection with
an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the
principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure
results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.
Capital work-in-progress:
Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost,
comprising direct cost, related incidental expenses and attributable interest.
g Intangible assets
Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an intangible
asset comprises its purchase price, including any import duties and other taxes and any directly attributable expenditure on
making the asset ready for its intended use and net of any trade discounts and rebates.
h Foreign currency transactions and translations
Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the
date of the transaction. Year end balances of foreign currency monetary item is translated at the year end rates. ‘Exchange
differences arising on settlement of foreign currency monetary items of the Company are recognised as income or expense
in the Statement of Profit and Loss. Exchange differences arising on restatement / settlement of long-term foreign currency
borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated
over the remaining useful life of such assets.
i Investments
Long-term investments are carried at cost less provision for diminution, other than temporary, in the value of such investments.
Current investments are carried at the lower of cost and fair value.
j Employee benefits
Employee benefits of short term nature are recognised as expense as and when these accrue. Long term employee benefits
and post employment benefits, whether funded or otherwise, are recognised as expenses based on actuarial valuation at
year end using the projected unit credit method. For discounting purpose, market yield of Government Bonds, at the balance
sheet date, is used. Actuarial gains or losses are recognised immediately in the statement of Profit and Loss.
k Borrowing costs
Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalised. Other borrowing costs
are recognised as expenses in the period in which they are incurred. In determining the amount of borrowing costs eligible for
capitalisation during the period, any income earned on the temporary investment of those borrowings is deducted from the
borrowing cost incurred. Other borrowing costs incurred during the year are charged to the statement of profit & loss.
l Leases
Assets leased by the Company in its capacity as lessee where substantially all the risks and rewards of ownership vest in the Company
are classified as finance leases. Such leases are capitalised at the inception of the lease at the lower of the fair value and the present
value of the minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between
the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.
Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are
recognised as operating leases. Lease rentals under operating leases are recognised in the Statement of Profit and Loss on a
straight-line basis.
m Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary
items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is
computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for
dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive potential equity shares.
85
n Taxes on income
Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the
provisions of the Income Tax Act, 1961. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if
there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset
in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.
Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting
income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured
using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are
recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses
are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such
assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty
exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and
liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a
legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.
o Research and development expenses
Expenditure incurred during research and development phase is charged to the Statement of Profit and Loss when no
intangible asset arising from such research.
p Segment reporting
Identification of segments
The Company’s operating businesses are organized and managed separately according to the nature of products, with each
segment representing a strategic business unit that offers different products and serves different markets. The analysis of
geographical segments is based on the areas in which major operating divisions of the Company operate.
Allocation of common costs
Common allocable costs are allocated to each segment on case to case basis by applying the ratio, appropriate to each
relevant case. Revenue and expenses which relates to the enterprise as a whole and are not allocable to segments on a
reasonable basis, are included under the head “Unallocated – Common”
Unallocated items
Unallocated items include general corporate income and expense items which are not allocated to any business segment.
Segment accounting policies
The Company prepares its segment information in conformity with the accounting policies adopted for preparing and
presenting the financial statements of the Company as a whole.
q Impairment of assets
An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value being higher of value in
use and net selling price. Value in use is computed at net present value of cash flow expected over the balance useful life
of the assets. An impairment loss is recognised as an expense in the Statement of Profit and Loss in the year in which an
asset is identified as impaired. The Impairment loss recognised in prior accounting period is reversed if there has been an
improvement in recoverable amount.
r Cash & cash equivalents
Cash & Cash equivalents as indicated in the cash flow statement comprise of cash in hand, cash at bank, drafts in hand and
short term deposits with an original maturity of three months or less.
s Provisions and contingencies
A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an
outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions
(excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate
required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to
reflect the current best estimates. Contingent liabilities are disclosed in the Notes.
86
Note 3 Property, plant and equipment
₹ in Mn
Gross Block Depreciation Net Block
Particulars
As at March 31, As at March As at March During the As at March As at March As at March
Additions Deductions Deductions
2018 31, 2019 31, 2018 year 31, 2019 31, 2018 31, 2019
Land (Free hold) 25.55 - - 25.55 - - - - 25.55 25.55
Land and Site Development 1,014.42 - - 1,014.42 389.49 142.20 - 531.68 766.90 482.80
Building 2,503.56 - - 2,503.57 690.59 86.03 - 776.61 1,842.64 1,727.04
Plant and Machinery 15,830.13 70.28 - 15,900.41 6,179.92 521.97 - 6,701.88 9,995.87 9,198.71
Furniture and Fixtures 179.69 0.67 - 180.37 119.85 14.96 - 134.80 74.60 45.63
87
Office Equipment 38.08 1.34 - 39.43 27.03 3.43 - 30.45 14.17 9.06
Computer 95.76 0.89 - 96.66 92.04 0.80 92.83 4.06 4.43
Vehicles 113.02 - 13.22 99.81 62.54 9.07 5.71 65.89 48.44 34.32
V Sat 0.82 - - 0.82 0.82 - - 0.82 - -
Railway Siding 683.14 - - 683.14 240.26 45.46 - 285.71 488.37 397.49
Total 20,484.17 73.18 13.22 20,544.18 7,802.54 823.92 5.71 8,620.67 13,260.60 11,925.35
Previous Year 20,234.31 249.81 - 20,484.17 6,973.93 828.69 - 7,802.54 13,997.25 13,260.60
Note 4 Non current investments
₹ in Mn ₹ in Mn
Investments (At cost)-Trade and Unquoted
Investment in equity shares 100.10 100.10
Investments in preference shares 20.00 20.00
Total 120.10 120.10
Note 5 Security deposits

₹ in Mn ₹ in Mn
Security deposits
Total 116.60 107.94

₹ in Mn ₹ in Mn
Loans and advances to related parties
Unsecured, considered good 2,401.70 2,304.26
Total 2,401.70 2,304.26
Note 7 Other non current assets

₹ in Mn ₹ in Mn
Capital advances
MAT credit entitlement
Balances with government authorities - 26.31
Advances to other parties 13.54 11.75
Indirect Tax Recoverable 23.33 -
Advance Income Tax of Prior Years (net) 4.04 -
Total 1,179.18 1,209.46
Note 8 Inventories
(At lower of cost and net realisable value)
₹ in Mn ₹ in Mn
Finished goods 1,118.55 1,344.28
Goods-in-transit - FG 316.87 0.51
Stores and spares 61.17 359.99
By products 452.95 257.95
Total 2,104.58 2,579.58
88

Note 9 Trade receivables
₹ in Mn ₹ in Mn
Trade receivables outstanding for a period exceeding six months from the date
they were due for payment
Doubtful 3.15 3.15
Less: Provision for doubtful trade receivables (3.15) (3.15)
204.13 28.14
Other Trade receivables-Unsecured, considered good 277.79 92.74
Total 481.92 120.88
Note 10 Cash and cash equivalents
₹ in Mn ₹ in Mn
Cash and cash equivalents
Cash on hand 40.47 39.06
Balances with banks
In current accounts 157.52 369.48
In deposit accounts 305.56 33.33
503.55 441.87
Other bank balances
In deposit accounts * 102.06 195.45
In earmarked accounts
- Unclaimed dividend accounts 37.48 33.72
Interest on Deposits 52.80 23.08
192.34 252.25
Total 695.89 694.12
* Deposit & Interest includes the deposits with 100% margin issued by way of Bank Gurantee to various authorities & parties.
Note 11 Advances
₹ in Mn ₹ in Mn
Loans and advances to Suppliers
Loans and advances to employees
Total 731.52 537.07
₹ in Mn ₹ in Mn
Prepaid expenses
Unsecured, considered good 4.21 -
Unsecured, considered good - 270.90
Others Receivables
Income Tax (Net of provisions) 156.11 56.91
Total 310.00 389.16
89
Note 13 Share capital
31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
Authorised
200,000,000 (P.Y. 140,000,000) Equity shares of ₹ 10/- each 2,000.00 1,400.00
Issued , Subscribed and Paid up
137,875,000 (P.Y. 137,875,000) Equity shares of ₹ 10/- each 1,378.75 1,378.75
Total 1,378.75 1,378.75
A) Reconciliation of shares outstanding at the beginning and at the end of the reporting period
No. of shares ₹ in Mn No. of shares ₹ in Mn
Equity Shares
Opening Balance 137,875,000 1,378.75 137,875,000 1,378.75
Changes during the year - - - -
Closing Balance 137,875,000 1,378.75 137,875,000 1,378.75
B) Shareholders holding more than 5% of the ordinary shares in the company

No. of shares % No. of shares %
Equity Shares
Mideast (India) Limited 32,549,940 23.61 32,549,940 23.61
Mesco Mining Limited 17,000,000 12.33 17,000,000 12.33
Moorgate Industries India Private Limited 13,787,500 10.00 13,787,500 10.00
Mesco Steels Limited 13,146,800 9.54 13,146,800 9.54
Mesco Logistics Limited 12,151,700 8.81 12,151,700 8.81
Mesco Kalinga Steels Limited 10,000,000 7.25 10,000,000 7.25
Total 98,635,940 71.54 98,635,940 71.54
C) Right, preferences and restrictions attached to shares

Equity Shares-The company has one class of equity shares having par value of ₹ 10 each, rank pari passu in all respects including
voting rights and entitlement to dividend.
Note 14 Reserves and surplus
31 March, 2019 31 March, 2018
₹ in Mn ₹ in Mn
Capital Reserve
Add: Changes during the year - -
Securities premium account
Opening balance 677.70 677.70
Add : Premium on shares issued during the year - -
Closing balance 677.70 677.70
Surplus / (Deficit) in Statement of Profit and Loss
Opening balance 471.52 1,113.74
Add: Profit / (Loss) for the year (862.59) (642.22)
Closing balance (391.07) 471.52
Total 1,929.24 2,791.83
90

Note 15 Long-term borrowings
Non-Current Current Non-Current Current
Secured
Term loans from Banks 3,222.58 1,424.35 3,479.90 875.52
Term loans from Other Parties 32.79 19.19 50.23 18.61
3,255.37 1,443.54 3,530.13 894.13
Unsecured
From Promoters 283.99 - 262.64 -
From Banks 24.31 91.83 80.33 55.83
308.30 91.83 342.97 55.83
Total 3,563.67 1,535.38 3,873.10 949.96
₹ in Mn ₹ in Mn
Trade payables - 548.50
Total - 548.50

₹ in Mn ₹ in Mn
Advances from customers 4,957.01 5,199.63
Total 4,957.01 5,199.63
₹ in Mn ₹ in Mn
Total 74.20 65.70
₹ in Mn ₹ in Mn
Micro, Small & Medium enterprises 8.18 9.58
Others 3,154.07 2,820.28
Acceptances 372.12 851.48
Total 3,534.37 3,681.34
Note 20 Other current liabilities
₹ in Mn ₹ in Mn

Current maturities of long-term debt 1,535.38 1,051.68
Interest accrued and not due on borrowings 1.39 -
Unclaimed dividends 37.49 33.73
Statutory Dues 1,293.59 789.21
Payables against purchase of fixed assets - -
Trade / security deposits received 31.08 35.28
Advances from customers 645.40 603.41
Employee related liabilities 43.76 44.54
Total 3,588.10 2,557.85
₹ in Mn ₹ in Mn
Total 13.85 12.85
91
Note 22 Revenue from operations
₹ in Mn ₹ in Mn
Sale of products 12,509.92 10,663.32
Less: Excise duty 1,888.01 1,186.20
Total 10,621.91 9,477.12

₹ in Mn ₹ in Mn
Sale of products comprises
Plant-Manufactured Goods 11,027.71 2,063.74
Plant-Traded Goods 605.95 2,268.34
Billets - 4,700.39
Lam Coke - 406.99
Others 68.69 37.66
Total 11,702.37 9,477.12
Note 23a Cost of materials consumed
₹ in Mn ₹ in Mn
Opening stock 610.80 408.56
Add: Purchases 8,146.63 4,704.31
Less: Coal Consumption in Captive Power Plant 173.82
(Shown as Coal Consumption in note no. 26) - 227.53
Less: Closing Stock 155.04 610.80
Add: Traded goods consumed 74.25 411.57
Cost of material consumed 8,502.82 4,686.12
Note 23b Changes in inventories of finished goods, work-in-progress and stock-in-trade

₹ in Mn ₹ in Mn
Inventories at the end of the year
Finished goods 1,118.55 1,344.28
Stock-in-transit-FG - 0.51
1,571.50 1,608.79
Inventories at the beginning of the year
Finished goods 1,344.28 817.16
Work-in-progress 6.05 31.97
Stock-in-transit-FG 0.51
1,608.79 1,157.74
Less: Excise duties on increase / (decrease) of finished goods 27.04 (37.73)
Net increase / (decrease) (64.33) 488.78
Note 24 Employee benefits expenses

₹ in Mn ₹ in Mn
Salaries and wages 382.31 544.29
Contributions to provident and other funds 21.15 23.70
Provision for leave 0.82 (2.23)
Staff welfare expenses 10.06 11.42
Total 423.26 588.26
92

Note 25 Other expenses
₹ in Mn ₹ in Mn
Consumption of stores and spare parts 186.15 230.95
Royalty cost - 934.73
Mining cost - 416.20
Coal Consumption cost 173.82 227.53
Power and fuel 346.60 372.47
Water 23.43 28.55
Material handling charges 48.90 62.19
Labour charges 201.75 159.79
Rent & plot hiring charges 30.36 20.78
Repairs and maintenance - Buildings 5.45 9.22
Repairs and maintenance - Machinery 13.67 84.26
Repairs and maintenance - Others 31.91 16.57
Security charges 10.71 8.37
Insurance 24.60 18.78
Rates and taxes 25.77 33.59
Communication 4.17 3.87
Travelling and conveyance 47.57 47.56
Selling & Distribution 10.39 16.00
Independent directors sitting fee - 0.68
Donations and contributions 19.93 24.05
Legal and professional 67.28 74.83
Net loss on foreign currency transactions and translation 58.43 3.22
Payments to auditors 1.69 1.75
CSR expenses 1.75 3.71
Miscellaneous expenses 36.50 42.94
Total 1,370.84 2,842.61
Note 26 Finance costs

₹ in Mn ₹ in Mn
Interest expense on
Borrowings 446.06 1,243.44
Interest on delayed / deferred payment of statutory dues 2.16 10.42
Other borrowing cost 81.71 129.94
Finance cost on fair valuation 559.29 348.26
Total 1,089.22 1,732.06
Note 27 Other income

₹ in Mn ₹ in Mn
Interest income 18.93 27.61
Rental income 0.56 1.00
Liabilities / provisions no longer required written back 809.40 102.01
Others 9.57 6.17
Total 838.46 136.79
93
Note 28 Additional information to the financial statements
₹ in Mn ₹ in Mn
28.1 Contingent liabilities (to the extent not provided for)
Claims against the company not acknowledged as debt
Central excise, customs and service tax 1,415.68 595.07
Sales tax and entry tax 287.20 265.54
Income Tax 412.65 354.89
Electricity Duty # 94.74 94.74
Others 18.50 18.50
Customs duty on import of equipment and spare parts under Export
164.75 164.75
Promotion Capital Goods scheme
# Maithan Ispat Limited had applied for exemption of electricity duty on power generated from its captive power plant in
earlier year as per the provisions of Orissa Industrial Policy Resolution, 2001. However, during the year 2011-12, the Company
has received demand for duty for the period from March, 2008 to June, 2011. Against the above demand, the Company has
filed writ application in the Hon’ble High Court of Orissa, which is pending disposal. The management is hopeful to receive such
exemption, pending which duty liability has not been accounted for in these financial statements. In respect of above cases
based on favourable decisions in similar cases/legal opinions taken by the Company/discussions with the solicitors etc., the
management is of the opinion that it is possible, but not probable, that the action will succeed and accordingly no provision for
any liability has been made in the financial statements.

28.2 Capital Commitments
₹ in Mn ₹ in Mn
Estimated amount of contracts remaining to be executed on capital 209.11 310.99
account and not provided for (net of advances)

28.3 Details on unhedged foreign currency exposures
The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below
Receivable /(Payable) ₹ in Mn Receivable /(Payable) USD Receivable /(Payable) Receivable /(Payable)
in Mn ₹ in Mn USD in Mn
(115.99) (1.67) (576.76) (8.87)

Forward Contracts to buy
₹ in Mn USD in Mn ₹ in Mn USD in Mn
36.71 0.53 41.19 0.64

28.4 Arrears of fixed Cumulative Redeemable Preference Shares (CRPS)
Particulars
₹ in Mn ₹ in Mn
Arrear Dividend (including tax) on 10% Cumulative Redeemable Preference
240.64 200.19
Shares (CRPS)
28.5 Value of imports calculated on CIF basis
Particulars For the year ended For the year ended 31
31 March, 2019 March, 2018
₹ in Mn ₹ in Mn
Spare parts 2.21 2.61
28.6 Expenditure in foreign currency
Interest 35.65 7.95
Travelling 4.25 3.15
Consultancy - 0.16
94

28.7 Details of consumption of imported and indigenous items
Particulars For the year ended 31 March, 2019
₹ in Mn %
Imported
Raw Materials 718.20 25.89
(1009.75) (16.16)
(2.90) (0.05)
Indigenous
Raw materials 1,962.35 70.73
(5009.20) (80.15)
(228.05) (3.65)
Total 2,774.38 100.00
(6249.90) (100.00)
Note: Figures / percentages in brackets relates to the previous year

28.8 Earnings in foreign exchange
Particulars For the year ended For the year ended 31
31 March, 2019 March, 2018
₹ in Mn ₹ in Mn
Export of goods calculated on FOB basis 6.73 16.10
Note 29 Disclosures under Accounting Standards
Note
29.1 Post retirement benefit plans
29.1.a Defined contribution plans
The Company makes Provident Fund contribution to defined contribution plans for qualifying employees. Under the Schemes,
the Company is required to contribute a specified percentage of the payroll costs to fund the benefit. The Company recognised
₹ 21.15 Mn (PY ₹ 23.70 Mn) for Provident Fund contributions in the Statement of Profit and Loss. The contributions payable
to the plan by the Company is at rate specified in the rules of the scheme.
29.1 b Defined benefit plans
The Company’s post retirement defined benefit plans include Gratuity which is unfunded. The following table sets out the

provision for gratuity amount recognised in the financial statements
Particulars Year ended 31 March, Year ended 31 March,
2019 2018
Gratuity Gratuity
₹ in Mn
Components of employer expense
Actuarial losses/(gains) (0.04) (4.58)
Total expense recognised in the Statement of Profit and Loss 11.43 7.85
Actual contribution and benefit payments for year
Actual benefit payments 2.71 0.53
Actual contributions - -
Net asset / (liability) recognised in the Balance Sheet
Present value of defined benefit obligation (62.10) (53.19)
Present value of defined benefit obligation-Subsidiary (8.49) (8.68)
Net asset / (liability) recognised in the Balance Sheet (70.59) (61.87)
Change in defined benefit obligations (DBO) during the year
Present value of Consolidated DBO at beginning of the year 61.87 55.70
Actuarial (gains) / losses (0.04) (4.58)
Benefits paid (2.71) (1.67)
Present value of Consolidated DBO at the end of the year 70.59 61.87
Actuarial assumptions
Discount rate 7.5%-8.0% 7.5%-8.0%
Mortality tables IALM(2006-08) Ult IALM(2006-08) Ult
29.2 Segment information
The Company’s business activity primariliy falls within a single business segment i.e, Iron and Steel business and hence there
are no disclosures to be made under Ind AS 108.
95
Related party transactions
Details of related parties
Note Description of relationship Names of related parties
29.3a Subsidiaries Maithan Ispat Limited
Key Management Personnel (KMP) Mrs. Rita Singh (Chairperson cum Managing Director)
Mrs. Natasha Singh Sinha (Joint Managing Director))
Ms. Sandhya Sethia *
Mr. S. N. Kambali
Mr. Pawan Kumar (Company Secretary)
Relatives of KMP Mr. Jitendra Kumar Singh
Mrs. Shipra Singh Rana
Company in which KMP / Relatives of KMP a) Mesco Steels Limited
can exercise significant influence b) Mesco Logistics Limited
c) Mesco Kalinga Steels Limited
d) Mesco Mining Limited
e) Mideast India Limited
f) Mesco Pharmaceuticals Limited
g) Mesco Hotels Limited
h) Mesco Aerospace Limited
i) Mesco Laboratories Limited
j) Mesco Shoes Limited
k) Twenty First Century Finance Limited
l) Mesco India Limited
m) Chhindwara Coal Washing Private Limited
n) Forrester Foods Private Limited
o) Chhindwara Energy Limited
p) Chhindwara Power Limited
q) Gondwana Energy Limited
r) SAARC Helicopters Private Limited
s) Mesco Magic Cement Ltd
t) SS & R Films Private Limited
Note: Related parties have been identified by the Management.
* Ms. Sandhya Sethia ceases to be Company Secretary from 1st October 2018.
₹ in Mn
Note Details of related party transactions during the year
ended 31 March, 2019 and balances outstanding as
at 31 March, 2019:
29.3b Transaction during the year Subsidiary KMP Relatives Entities in which KMP
of KMP / relatives of KMP have
significant influence
Rentals services
(0.41)
Mesco Logistics Limited 0.68
(0.68)
(0.82)
(0.70)
(6.00)
(6.00)
96

₹ in Mn
Remuneration*:
Mr. Jitendra Kumar Singh 13.94
(30.04)
(33.36)
(18.46)
(8.37)
Mr. Ravipati Hanumantha Rao -
(1.20)
Mr. Priyabrata Patnaik -
(9.00)
Ms. Sandhya Sethia 0.64
(1.21)
Mr. Pawan Thakur 0.62
Balances outstanding at the end of the year
Advances
Mesco Steels Limited 2,135.70
(2,093.07)
(54.36)
Mesco Logistocs Limited -
(81.36)
S S & R Films Private Limited 0.01
(0.01)
Saarc Helicopters Private Limited 0.02
(0.02)
(0.33)
21st Century Finance Limited 1.71
(1.71)
Mideast India Limited -
(3.69)
Forrester Foods Private Limited 6.88
(6.88)
(61.29)
Kayaana Constructions Limited 3.20
(3.20)
-
-
Mesco Logistocs Limited 0.44
-
Mesco Laboratories Limited 0.01
-
Payables
(1.31)
Mesco Hotels Limited -
(0.05)
Mesco Magic Cement Limited -
(0.67)
Mesco Shoes Limited 0.76
(0.76)
Mideast India Limited 1.91
* Remuneration includes perquisites computed as per Income Tax Act.
Note: Figures in bracket relates to the previous year
97
Note Particulars For the year ended 31 For the year ended 31
29.4 Earnings per share
Basic & Diluted
Net profit / (loss) for the year attributable to the equity shareholders (₹ in (866.02) (641.54)
Mn)
Weighted average number of equity shares 137,875,000 137,875,000
Par value per share (₹) 10 10
Earnings per share (₹) (6.28) (4.65)

Note Particulars As at 31 March, 2019 As at 31 March, 2018
₹ in Mn ₹ in Mn
29.5 Deferred tax (liability) / asset
Tax effect of items constituting deferred tax liability
On difference between book balance and tax balance of fixed assets (757.28) (753.98)
Tax effect of items constituting deferred tax liability (757.28) (753.98)
Tax effect of items constituting deferred tax assets
Provision for compensated leaves, gratuity and disallowances under Income 17.80 16.50
Tax
Tax effect of items constituting deferred tax assets 17.80 16.50
Net deferred tax (liability) / asset (739.48) (737.48)

Note During the year ended 31st March, 2019, operation of Maithan Ispat Limited were severely impacted by continued
30 weak steel industry scenario and also non availability of working capital for running the operations at full capacity. The
company has incurred loss after taxes of Rs, 828.24 Millions (Rs. 878.32 Millions) and accumulated loss as on 31st March,
2019 is Rs. 8,117.64 million (Rs. 7,289.40 Millions) and its current liabilities exceeded its current assets as at the balance
sheet date. As a part of its financial revival process, the lenders of the company have already approved capex facility
loan of Rs 1,700.00 Millions. Mideast Integrated Steels Limited (MISL), the holding Company, is committed to provide
suitable financial support to the company for the near future and has also contributed capital amounting to Rs. 1203.00
Millions in the form of equity up to the FY 2016-17 as per terms agreed with the lenders. Again the company has received
Rs.225.00 million in the financial year 2017-18.The Company is also confident of improvement in the industry scenario.
Considering the above, the financial statements of Maithan Ispat Limited have been drawn up as per the Going Concern
assumption, which is appropriate in the opinion of the management.
Note In pursuance to the Judgement dated 2nd August, 2017 of Honorable Supreme Court of India, in the matter of Writ Petition
31 (Civil) No. 114 of 2014 (Common Cause v/s Union of India & Others), an amount of ₹ 924.75 crores has been imposed on
the Company towards ‘Compensation’ as determined in the said Judgement which was to be paid by 31st December
2017, eventhough the Government Taxes and Royalty was paid on the ores extracted. Since the amount was not paid by
the stipulated date, the Honorable Supreme Court ordered to stop mining operations with effect from 1st January 2018.
The Company has however filed a ‘Curative petition’ (Civil) before the Honorable Supreme Court of India challenging the
Judgement and which is still pending. Hence provision has not been made for the same in the books of accounts.
Note Net deferred tax assets (DTA) of Rs. nil Millions (Prev year Rs.0.73 Millions) as at 31st March, 2019 has not been
32 recognised in the accounts on account of provisions for Gratuity & Leave Encashment, as a matter of prudence.
With fresh capital infused in the company on account of takeover by Mideast Steels Limited, the company has started with the
expansion work on the project front. In F.Y 2020-21, the company will start its Heavy Section Mill which will produce heavy
sections and structural steel having production capacity of 3,79,000 tonne per annum. The company also plans to install a Rebar
Mill which will have a production capacity 1,66,000 tonnes per annum. Net deferred tax Liability (DTL) of Rs 576.70 Millions as
at 31st March, 2019 has not been recognised in the accounts. The break up of which is as follows:
Components of Deferred Tax Asset/(Liability) As on 31st March 2019 (₹ in Mn)
Timing Difference in Depreciable Assets (812.75)
Accumulated Loss & Unabsorbed Depreciation for the year 236.05
Total (576.70)
98

During the year ended March 31, 2016 and March 31,2015, the Company has supplied surplus generation of power from its
captive power plant to GRIDCO Limited. The said supply has not been given acceptance by GRIDCO. Therefore, in accordance
with IND AS on Revenue Recognition, the Company has postponed the recognition of revenue amounting to Rs 6.60 Millions
and Rs. 3.73 millions approx for respective years and also same has been postponed for the FY 2018-19 against above supply
considering significant uncertainty in its ultimate collection. The same would be recognised in the period in which it is reasonably
certain that the ultimate collection will be made. During previous year GRIDCO has paid partly of total dues against export of
power to Gridco earlier year and therefore current financial year 2018-19, company has not shown any surplus power sold to
GRIDCO .

Note Previous year’s figures
33
Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s
classification / disclosure.


M. No. 32822 DIN 00812380 DIN 00082263


DIN 08182398
99
100
CIN: L74899DL1992PLC050216
Ph. No: 011-29241099, 40587085, 40587083. W: www.mescosteel.com
ATTENDANCE SLIP
(To be presented at the entrance)
26 Annual General Meeting of the Company Held on Monday, September 30, 2019 at 10:30 A.M. at The Executive Club,
th
439 Village Shahoorpur, P.O. Fatehpur Beri, New Delhi-110074
DP ID* Folio No.
Client id* No. of Shares
Name of the Shareholder: ......................................................................................................................................................................
Address of the Shareholder: ..................................................................................................................................................................
................................................................................................................................................................................................................
.................................................................................................................................................................................................................
I hereby record my presence at the 26th Annual General Meeting of the Company held on Monday Sepetember 30, 2019 At 10:30
A.M. at The Executive Club, 439 Village Shahoorpur, P.O. Fatehpur Beri, New Delhi-110074
*Applicable for investors holding shares in electronic form.
Signature of Shareholder/Proxy
1. Only Member/Proxy holder can attend the Meeting.

2. Member/Proxy holder should bring his/her copy of the Annual Report for reference at the Meeting.
CIN: L74899DL1992PLC050216
Ph. No: 011-29241099, 40587085, 40587083. W: www.mescosteel.in
PROXY FORM
Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3)
of the Companies (Management and Administration) Rules, 2014
Name of the Folio No:

Shareholder
Client ID*:
DP ID:
Registered E-mail id:

address
I/We, being the member(s) of_________________ Shares of Mideast Integrated Steels Limited, hereby appoint:
1. .................................................................. of ...................................... having e-mail id ...................................... or failing him

2. .................................................................. of ...................................... having e-mail id ...................................... or failing him
3. .................................................................. of ...................................... having e-mail id ...........................................................
and whose signature(s) are appended below as my/our proxy to attend and vote (on a poll) for me /us and on my/our behalf at the
26th Annual General Meeting of the Company held on Monday, September, 30 2019 At 10:30 AM at The Executive Club, 439 Village
Shahoorpur, P.O. Fatehpur Beri, New Delhi-110074
Sl. No Particulars For Against
1. To receive, consider and adopt audited Financial Statements for the year ended March
31, 2019, together with reports of the Directors and the Auditors thereon and the
Consolidated Financial Statements for the year ended March 31, 2019 along with the
Auditors’ Report thereon.
2. To appoint a Director in place of Mrs. Natasha Sinha (DIN 00812380), Jt. Managing
Director of the Company, who retires by rotation at this Annual General Meeting and
being eligible offers herself for re-appointment.
3. To re-appoint Mr. Sanjiv Batra (DIN: 00602669) as an Independent Director
4. To appoint Mr. Hawa Singh Chahar (DIN: 01691383) as a Director
5. To approve the remuneration of the cost auditor for conducting cost audit of the
Company for FY 2018-19
6. To approve related party transactions as Section 188 of the Companies Act, 2013
7. To appoint Mr. Sisir Kanta Panigrahi (DIN 08542641) as a Director
8. To take note of Revised Disclosure in respect of Item no. 12 of previous AGM Notice
Dated 13.08.2018
*Applicable for investors holding shares in electronic form Affix
Revenue
Signed this .............................. day of ............................ 2019 ......................................... ............................................... Stamp of
Rs. 1
Signature of Shareholder
................................................... ..................................................... ........................................................

Signature of the 1st Proxy Holder Signature of the 02nd Proxy Holder Signature of the 03rd Proxy Holder
Notes:
1. This form of Proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company
not less than 48 hours before the commencement of the meeting.
2. A Proxy need not be a member of the Company.
3. A person can act as a proxy on behalf of members not exceeding fifty and holding in the aggregate not more than 10% of the
total share capital of the Company carrying voting rights may appoint a single person as proxy and such person shall not act as
proxy for other person or share-holder.
4. Appointing a proxy does not prevent a member from attending the meeting in person if he so wishes.
5. In case of joint holders, the signatures of any holder will be sufficient, but names of all joint holders should be stated.
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Annual Report
2018-19

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~

Date:04th September, 2019

Scrip Code: 5407 44

This is for your information and records.

MIDEAST INTEGRATED STEELS LIMITED

MIDEAST INTEGRATED STEELS LIMITED

MIDEAST INTEGRATED STEELS LIMITED

S. No. Topics Page No.

4. Management Discussion and Analysis Report 34

5. Corporate Governance Report 36

6. Standalone Auditors’ Report 48

7. Standalone financial statements 54

8. Consolidated Auditors Report 76

9. Consolidated Financial Statements 81

Chairperson cum Managing Director: Independent Directors:

Company Information Plant Location

3) 401, Silver Pearl | Opp. China Gate Restaurants,

* Ceased to act as Director and CEO w.e.f 21.06.2019

For Members holding shares in Demat Form and Physical Form

viii. After entering these details appropriately, click on “SUBMIT” tab.

xix. Note for Non – Individual Shareholders and Custodians

Particulars Mrs. Natasha Sinha Mr. Sanjiv Batra

Memberships / Chair- Nil Maithan Ispat Limited

Number of shares held 2300 -

Remuneration Details Last drawn remuneration is given in -

No. of Board meetings 3 4

Particulars Mr. Sisirkanta Panigrahi Mr. Hawa Singh Chahar

Particulars Mr. Sisirkanta Panigrahi Mr. Hawa Singh Chahar

No. of Board meet- - -

By order of the Board

Name of the Related Party As provided in table below:

S. Particulars Maithan Ispat Mesco Kalinga Mesco Steels Limited

Name of the Particulars Maximum Amount

Name of the Particulars Maximum Amount per

By order of the Board

1. FINANCIAL SUMMARY AND HIGHLIGHTS

2. FINANCIAL PERFORMANCE HIGHLIGHTS

3. COMPANY’S WORKING DURING THE YEAR/ STATE OF COMPANY’S AFFAIRS

5. CHANGE IN NATURE OF BUSINESS

7. MANAGEMENT DISCUSSION AND ANALYSIS

10. ANNUAL RETURN

11. PUBLIC DEPOSIT

12. NUMBER OF MEETINGS OF THE BOARD

13. DIRECTORS’ RESPONSIBILITY STATEMENT

14. DECLARATION OF INDEPENDENCE

15. NOMINATION AND REMUNERATION COMMITTEE

16. NOMINATION AND REMUNERATION POLICY

18. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

20. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES

21. CONVERSION OF LOAN INTO EQUITY

30. DISCLOSURE AS PER THE SEXUAL HARRASMENT OF WOMEN AT WORKPLACE (PREVENTION,

31. AUDIT COMMITTEE

32. PARTICULARS OF EMPLOYEES

33. STAKEHOLDERS RELATIONSHIP COMMITTEE

34. RECONSTITUTION OF RISK MANAGEMENT COMMITTEE

35. RECONSTITUTION OF SHARE ALLOTMENT CUM OPEARIONAL COMMITTEE

37. CORPORATE GOVERNANCE

38. COMPLIANCES WITH SECRETARIAL STANDARDS