BIHAR SPONGE IRON LIMITED

Board Meeting Outcomes (13th November 2026)

The Board of Directors meeting commenced at 12:30 PM and concluded at 14:40 PM with the following approvals:

  • Approved Un-Audited Financial Results (Standalone) for Q2 and half year ended 30th September 2026 along with Limited Review Report from statutory auditors
  • Noted resignation of Mr. Sachin as Chief Financial Officer (KMP) effective 1st November 2026 (previously informed to BSE on 29th October 2026)
  • Appointed Mr. Chirag Goel as Chief Financial Officer (KMP) effective 13th November 2026
  • Noted resignation of Mr. Aditya Kumar Modi (DIN: 09303804) as Whole Time Director (KMP) and director effective 1st December 2026
  • Appointed Mr. Raj Kumar Sharma (DIN: 07741845) as Director and Whole Time Director (KMP) effective 1st December 2026 (subject to shareholder approval via Postal Ballot)
  • Appointed Mr. Raj Kumar Sharma as Occupier of the company's plant at Umesh Nagar, Chandil effective 1st December 2026
  • Reconstituted Audit Committee, Stakeholders' Relationship Committee and Share Transfer Committee effective 1st December 2026

Management Appointments Details

Mr. Chirag Goel (New CFO): ICAI Membership No. 472841, qualified Chartered Accountant with approximately 2.5 years of professional experience. Previously worked with G Pharmbutor Private Limited as Deputy Manager and joined Bihar Sponge Iron Limited as Manager (Accounts) from 1st January 2026.

Mr. Raj Kumar Sharma (New Whole Time Director): Holds Master's Degree in Social Work (MSW) from Lucknow University with approximately 43 years of professional experience in industrial relations, personnel management, human resource management and general administration. Previously worked with Modi Threads Limited, U.P. State Textile Corporation Limited, SBEC Modi Distillery, and Modi Steel. Currently serving as Senior General Manager with Bihar Sponge Iron Limited. Not related to any existing directors.

Financial Results Summary (Standalone)

Quarter Ended 30th September 2026 (Unaudited):

  • Net Revenue from Operations: ₹0 (Nil)
  • Other Income: ₹116.69 lakh
  • Total Income: ₹116.69 lakh
  • Total Expenses: ₹1,190.29 lakh
  • Loss before tax: ₹(1,073.61) lakh
  • Tax expense: ₹0
  • Loss for the period: ₹(1,073.61) lakh
  • Other Comprehensive Income: ₹0.23 lakh
  • Loss after comprehensive income: ₹(1,073.37) lakh
  • Basic EPS: ₹(1.19)
  • Diluted EPS: ₹(1.19)

Half Year Ended 30th September 2026 (Unaudited):

  • Net Revenue from Operations: ₹0 (Nil)
  • Other Income: ₹755.95 lakh
  • Total Income: ₹755.95 lakh
  • Total Expenses: ₹1,581.46 lakh
  • Loss before tax: ₹(825.52) lakh
  • Tax expense: ₹0
  • Loss for the period: ₹(825.52) lakh
  • Other Comprehensive Income: ₹0.47 lakh
  • Loss after comprehensive income: ₹(825.04) lakh
  • Basic EPS: ₹(0.92)
  • Diluted EPS: ₹(0.92)

Comparative Figures:

  • Q2 September 2025: Net Revenue ₹6,375.58 lakh, Profit ₹174.77 lakh
  • H1 September 2025: Net Revenue ₹14,125.56 lakh, Profit ₹386.48 lakh
  • FY2026: Net Revenue ₹24,547.73 lakh, Profit ₹1,132.28 lakh

Balance Sheet Position (as at 30th September 2026)

  • Total Assets: ₹8,788.08 lakh (vs ₹9,227.14 lakh as at March 2026)
  • Share Capital: ₹9,020.54 lakh
  • Other Equity: ₹(13,247.54) lakh
  • Total Equity: ₹(4,226.99) lakh
  • Non-Current Liabilities: ₹9,085.83 lakh
  • Current Liabilities: ₹3,929.25 lakh

Cash Flow Statement (Six Months Ended 30th September 2026)

  • Cash used in operating activities: ₹(82.77) lakh
  • Cash from investing activities: ₹127.37 lakh
  • Cash used in financing activities: ₹(25.87) lakh
  • Net increase in cash: ₹18.73 lakh
  • Cash and equivalents at end: ₹85.72 lakh

Auditor's Qualified Review Report

Doogar & Associates issued a qualified review report citing four key matters:

1. Note 2: No provision made for penalty of ₹215.28 lakh recovered by South East Coalfields Ltd. for short lifting of coal under FSA. Writ petition filed before Chhattisgarh High Court was disposed on 5th March 2025 with directions for hearing. Meeting held on 19.06.2025 where SECL did not consider company's representation. New Writ Petition (WPC/24721 of 2025) dismissed on 27-10-2025. Company planning to file appeal. Amount included in long-term loans and advances pending settlement.

2. Note 3: Company approached promoters for one-time settlement of loans, to be subsequent to settlement with Government of Jharkhand for soft loans. Amount neither quantified nor disclosed.

3. Note 4: Jharkhand High Court order dated 09.06.2022 directed payment of ₹125 lakh per month towards principal. Principal amount of Soft Loan from Government of Jharkhand fully paid. Interest of ₹12,361.81 lakh as on 30.09.2026 provided only to extent of ₹2,746.19 lakh (until 10th August 2013), subject to waiver approval.

4. Note 6: Management claims legitimate recoverable dues from plant operator under Facility User Agreement. Company initiated legal course and management does not foresee impairment. Auditor unable to comment on necessary adjustments to carrying value.

Additional Notes to Financial Results

5. Board decided to install and maintain Waste Heat Recovery Plant as per Jharkhand State Pollution Board consent.

6. Facility User Agreement dated 30 December 2020 with Vanraj Steels Private Limited (VSPL) Group for plant operation (commenced 12 January 2022). Disputes arisen under agreement. Company has outstanding claims recoverable from VSPL Group, while claims against company are denied and subject to adjudication. Company pursuing legal remedies.

7. Executed new Facility User Agreement with Amalgam Steel & Power Limited dated 23 March 2026. Plant under revamping and major maintenance, resulting in zero revenue from operations during Q2 and H1 FY27.

8. Plant operator (VSPL) abruptly abandoned plant in February 2026. Company regained access and conducted physical verification revealing inventory discrepancies. Inventory sold: ₹63.81 lakh. Inventory not physically available: ₹341.79 lakh written off as "Other Expenses".

9. Previous year inventory figures based on operator representations without independent verification.

10. Financial results reviewed by Audit Committee and approved by Board on 13.11.2026, reviewed by statutory auditors.

11. Previous period figures regrouped/recast where necessary.

Financial Impact Assessment

  • Operational impact: Zero revenue due to plant revamping and maintenance
  • Loss impact: ₹1,073.61 lakh for Q2 FY27; ₹825.52 lakh for H1 FY27
  • Contingent liabilities: ₹215.28 lakh penalty dispute; ₹12,361.81 lakh interest waiver sought
  • Inventory write-off: ₹341.79 lakh