MANAGEMENT DESCUSSION AND ANALYSIS

The financial statements have been prepared in compliance with the requirements of the Companies Act, 1956, and Generally Accepted Accounting Principles in India. Our management accepts responsibility for the integrity and objectivity of these financial statements, as well as for various estimates and judgments used therein. The estimates and judgments relating to the financial statements have been made on a prudent and reasonable basis, in order that the financial statements reflect in a true and fair manner the form and substance of transactions, and reasonably present our state of affairs and profit / loss for the year.


Product: Sponge Iron

The process of sponge iron making aims to remove oxygen from iron ore. When that occurs, the departing oxygen causes micro pores in the ore body making it porous. The final product, when observed under a microscope, resembles a honeycomb structure looking spongy in texture, hence the name sponge iron.

High Quality

The quality of sponge iron is primarily ascertained by the percentage of metallization (removal of oxygen), which is the ratio of metallic iron to the total iron present in the product. The properties of sponge iron typically produced at BPSPL are as shown below:

Constituent     Percentage A     Chemical Fe, Total     91 (±2)     Fe, Metallic     81 (±2)     Metallization     89 (±2)     Sulphur     0.03 max     Phosphorus     0.05 max     Carbon     0.10 – 0.15     Gangue content     5.5 (+1) B     Physical     Size Lump     +3 mm     Fines     - 3 mm     Bulk density     1.8 (±0.1) MT/m3

Sponge iron produced at BPSPL is distinct due to its high metallic iron content and consistent chemical and physical characteristics. This provides secondary steel makers a flexibility in preparing their furnace charge to produce finer quality steels than what is possible using steel scrap only. Some of the features of the sponge iron produced at BPSPL are:

• High iron content and high degree of metallization
• Uniform and consistent quality
• Lower sulphur and phosphorus content
• Negligible tramp element
• Minimum dust generation during material handling
• Good flowability in bins, pipes and conveyors for continuous and trouble free charging
• Superior technical support to induction furnace operators

Customer Support

BPSPL also helps in resolving technical and operational problems faced by customers. Its qualified and experienced technical staff suggest ways & means to optimise sponge iron feed in furnaces and enhance steel output.