Bihar Sponge Iron Limited (BSIL) has found itself embroiled in a legal dispute as 18 former employees have filed a petition against the company in the Labour Court, Jamshedpur. The ex-employees are seeking payment of wages amounting to Rs 3.64 crore, alleging that their employment has not been terminated but their wages remain unpaid.

Legal Notice Details

The company received a notice from the Presiding Officer of the Labour Court, Jamshedpur on September 3, 2025. The petition, filed under Section 15(2) of the Payment of Wages Act, 1936, claims that wages payable to the ex-employees have not been disbursed, despite their employment status allegedly remaining intact.

Company's Response

BSIL has stated that it plans to contest the matter and is in the process of filing an appropriate response before the concerned authority or court. The company emphasized that it will defend its position in accordance with applicable laws.

Financial Implications

In a disclosure to the BSE, Bihar Sponge Iron Limited addressed the potential financial impact of the claim:

"Considering the size of Company's operations, there will not be a material impact or impact will be limited to the extent of claim," the company stated in its filing.

Company's Stance

BSIL has made it clear that by disclosing this information, it is neither recognizing the claim nor confirming any amount related to the petition. The company stated, "This is just a purpose of information to BSE Ltd., Company is neither recognizing the claim nor confirming any amount in this reference."

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. BSIL has assured that the information provided in 'Form-A' is true, correct, and complete to the best of their knowledge and belief.

As the legal proceedings unfold, stakeholders will be watching closely to see how this wage dispute impacts Bihar Sponge Iron Limited's operations and financial standing in the coming months.

Bihar Sponge Iron Limited (BSIL) has announced its unaudited financial results for the first quarter ended June 30, 2025, along with several key board appointments and re-appointments.

Financial Performance

The company reported a decline in its financial performance for Q1 FY2026 compared to the same period last year:

The net revenue from operations decreased by 25.38% to Rs. 7,749.98 lakhs in Q1 FY2026 from Rs. 10,385.48 lakhs in Q1 FY2025. Total income also saw a decline of 25.09%, standing at Rs. 8,378.93 lakhs compared to Rs. 11,185.45 lakhs in the corresponding quarter of the previous year.

Profit after comprehensive income for Q1 FY2026 was Rs. 211.70 lakhs, down by 42.59% from Rs. 368.72 lakhs in Q1 FY2025. Consequently, the basic earnings per share decreased to Rs. 0.23 from Rs. 0.41 year-over-year.

Board Appointments and Re-appointments

The Board of Directors approved several key appointments during their meeting held on August 12, 2025:

1. Re-appointment of Mrs. Kumkum Modi: Mrs. Kumkum Modi has been re-appointed as a Non-Executive Non-Independent Director, effective October 1, 2025. This re-appointment is subject to shareholder approval at the upcoming Annual General Meeting (AGM). Mrs. Modi, who holds an M.A. from the University of Delhi, brings extensive experience in pharmaceuticals, cosmetics, sugar, and iron & steel industries.

2. Appointment of Secretarial Auditors: M/s Soniya Gupta & Associates have been appointed as the Secretarial Auditors for a term of five consecutive years, from FY 2025-26 to FY 2029-30, subject to shareholder approval at the ensuing AGM.

3. Re-appointment of Cost Auditors: M/s. M.K. Singhal & Co. have been re-appointed as Cost Auditors for the financial year 2025-26.

4. Re-appointment of Internal Auditors: M/s. Sarat Jain & Associates have been re-appointed as Internal Auditors for the financial year 2025-26.

Auditor's Review Report

The independent auditor's review report highlighted several qualifications:

1. No provision has been made for a Rs. 215.28 lakhs penalty recovered by South East Coalfields Ltd. (SECL) for short lifting of coal. The company is planning to file a petition in the High Court regarding this matter.

2. The company has approached its promoters for a one-time settlement of loans, but the amount is neither quantified nor disclosed.

3. Interest on a Soft Loan from the Government of Jharkhand, amounting to Rs. 8,272.61 lakhs, has been provided in the books only to the extent of Rs. 2,746.19 lakhs (until August 2013) and is subject to approval for waiver of the entire amount.

The Board Meeting, which commenced at 12:30 P.M. and concluded at 13:45 P.M. on August 12, 2025, approved these results and appointments. The company will hold its 43rd Annual General Meeting, for which the Notice and Directors Report have been prepared.

Investors and stakeholders should note these financial results and board changes as they assess the company's performance and future prospects.