|BSE: 533286||Sector: Metals & Mining|
|NSE: MOIL||ISIN Code: INE490G01020|
|BSE 15:53 | 19 Jan||239.05||
|NSE 15:58 | 19 Jan||239.40||
|Mkt Cap.(Rs cr)||6,368|
|Mkt Cap.(Rs cr)||6367.81|
MOIL Ltd. (MOIL) - Director Report
Company director report
On behalf of Board of Directors I feel great pleasure in presenting the 55thAnnual Report of your Company together with the Auditor's Report and FinancialStatements for the year ended on 31st March 2017.
> FINANCIAL RESULTS:
Financial results of 2016-17 and of the previous year are highlighted below :
KEY Financial Ratios : (Standalone)
MOIL is a dividend paying company since many years. Continuing the same during the year2016-17 an Interim Dividend @ 50% i.e. ' 5.00 per Equity Share has been paid in themonth of March 2017.The Board of Directors of your company has further recommended afinal dividend @ 60% i.e. ' 6.00 per Equity Share for the year. The total dividend forthe year 2016-17 thus works out to ' 11.00 per equity share as against '5.00 paid inprevious year. Accordingly the total dividend outlay for the year works out to '146.51Crores (Previous year '84.00 Crores).
> FINANCIAL PERFORMANCE:
Better product mix sales mix and better market conditions during 2016-17 have resultedin improvement in the performance of your company. Your company has recorded gross salesof '989.84 Crores during the financial year 2016-17 as compared to '634.60 Crores ofprevious year. Profit before tax (PBT) for the year has increased by 70.91% to '461.90Crores in comparison to previous year's PBT of '270.26 Crores. The Company has earned aProfit from continuing operations of '305.83 Crores as against '172.98 Crores in theprevious year. Total comprehensive income for the year is '299.28 Crores.
As per Government Guidelines your Company has deployed surplus funds in fixed depositsand earned interest income which is included in total interest received of '185.60 Crores(Previous Year '244.06 Crores) and clubbed under other income. The interest income hascome down mainly due to cash outflow of'863.34 Crores on account of buy back of sharesand also reduction of interest rates.
The financial statements have been prepared adopting Ind-AS (new accounting standardsmade mandatory from 1st April 2016 notified by the Institute ofCharteredAccountants of India.
The fluctuation in prices of imported manganese ore is driving the market of manganeseore for domestic sales to large extent. During the financial year 2016-17 even thoughthere is some recovery in prices in comparison to financial year 2015-16 market did notrecover/stabilise fully. As the prices of the imported ore for each shipment were in aconstant state of fluctuation the company started reviewing the prices on monthly basis.During the year the average sales realisation has increased from ' 5911 to ' 8078 andaccordingly the company's manganese ore sales revenue has increased by 58.33% from '571.79 Crores to ' 905.34 Crores. With prudent marketing and pricing decisions yourcompany has been able to increase the sales of ore by 16.75% from 9.67 lakh MT in thefinancial year 2015-16 to 11.29 lakh MT in Financial year 2016-17. During the year yourcompany has continued to take various positive steps to increase the sales such ascontinuance of partial railway freight reimbursement to the buyers located in far-flungareas regular customer interactions etc.
In respect of manufactured products of the company viz. electrolytic manganesedi-oxide (EMD) ferro manganese (FeMn) and ferro manganese slag the total gross salesduring the year 2016-17 was ' 76.67Crores in comparison to ' 53.69 Crores during the year2015-16. The quantity of sale of EMD has increased from 714 MT in the year 2015-16 to 952MT in the year 2016-17. Similarly the quantity of sale of FeMn has increased from 7922 MTin the year 2015-16 to 9540 MT in the year 2016-17.
> PRODUCTION AND PRODUCTIVITY:
Your Company has produced 10.05 Lakh tonnes of various grades of manganese ore asagainst 10.32 Lakh tonnes in previous year. The output per manshift (OMS) has been at0.722 tonnes (previous year 0.718 tonnes). The lower production in FY 2016-17 is mainlyattributable to (a) shaft deepening activities carried out parallely and the job ofchanging guide rails taken up to ensure safety at Balaghat mine in line with DGMSrequirement; and (b) higher concentration on development activities at Dongri Buzurg mineto achieve the better ore bench availability in subsequent years(s) leading to lowerproduction.
The production of EMD has registered increase of 19.44% at 731 MT as against the 612 MTduring the previous year. The production of FeMn has improved by 52.63% at 9950 MT asagainst the 6519 MT in the previous year.
> CLOSING STOCK :
The company has manganese ore stock of 1.42 lakh MT valued at '81.89 Crores as on31.03.2017 as compared to 2.95 lakh MT valued at '130.46 Crores as on 31.03.2016. Thestock of FeMn stands at 3008 MT valued at' 10.99 Crores as on 31.03.2017 as against 2598MT valued at '10.26 Crores as on 31.03.2016 and the stock of EMD stands at 73 MT valued at'0.58 Crores as on 31.03.2017 as against 294 MT valued at'2.18 Crores as on 31.03.2016
> CAPITAL /VALUEADDITION / DIVERSIFICATION PROJECTS:
In order to meet the increasing demand of manganese ore of the steel industry and toremain a market leader in manganese industry in our country it is necessary to enhancethe manganese ore production. Accordingly MOIL has planned to enhance its production frompresent level of around 1.10 million MT to 2.00 million MT by 2021 2.50 million MT by2025 and 3.00 million MT by 2030 for which a strategic management plan has already beenprepared. In this direction your company has planned investments for development ofexisting mines acquisition of new mines within and outside the country acquisition ofareas adjoining the mines seffing up value addition / diversification projects etc.
For the purpose of sustaining the current level of production of manganese ore andtaking into consideration the anticipated increase in steel demand for taking it to alevel of about 2.00 Million MT by financial year 2020-21 and to about 2.50 Million MT byfinancial year 2024-25 to partially meet the country's growing needs your company hastaken up several vertical shaft sinking/deepening projects at the existing mines and hasalso planned investment in new areas. In order to achieve the target vertical shaftsinking projects at some of the mines will further be required. The projected capacitylevels of 2.00/2.50 Million MT cannot be achieved without making substantial investments.Further MOIL has also planned investment in renewable sources of energy. For thesepurpose MOILwill require substantial investments which are to be met through existingcash reserves and future accruals.
(A) Capex and Mine Expansion Projects :
Capex plans of the company envisage investments in vertical shaft sinking/deepeningprojects development of new leases/ area for mining regularadditions/modifications/replacements in fixed assets townships research and developmentetc. Total Capex utilization during the year 2016-17 is ' 120.74 Crores as against '119.65Crores in the previous year. MOIL has undertaken various mine expansion projects toenhance the production from its existing mines which are detailed below.
(i) COMPLETED PROJECTS / PROJECTS UNDER IMPLEMENTATION
a) Deepening of Holmes (vertical) shaft from 300 mtrs. to 435 mtrs. with loadingstation at a capital cost of' 28.30 Crores - Shaft deepening and lining works arecompleted in time. Ancillary development works are in progress.
b) Sinking of 2nd vertical shaft of 160 mtrs. depth including headgearstructure winding system and other allied works at Chikla Mine at a capital cost of?48.70 Crores-The project is in progress and running as per schedule.
c) Deepening of vertical shaft at Kandri Mine from 185 mtrs. to 245 mtrs. At a capitalcost of? 14.82 Crores-The project is in progress as per schedule.
d) Sinking of 2nd vertical shaft of 160 mtrs. depth at Munsar Mine at acapital cost of? 51.32 Crores - This project is also in progress as per schedule.
e) Sinking of 2nd vertical shaft of 324 mtrs. depth at Ukwa Mine at acapital cost of ' 77.15 Crores - This project is also in progress as per schedule.
(ii) UPCOMING / NEW PROJECTS :
a) Sinking of large dia. high speed vertical shaft of 330 mtrs. depth at Gumgaon Mineat a capital cost of? 194.92 Crores - Offers received against global tender are underevaluation.
b) Sinking of large dia. high speed vertical shaft of 750 mtrs. depth at Balaghat mineat a capital cost of ' 265.96 Crores - Offers received against global tender are underevaluation.
(B) Acquisition of Mines
In line Strategic Management Plan of the Company there are plans to have strategicalliances coupled with offiake agreements with manganese ore producers abroad. Anopen-ended Expression of Interest (Eol) has been hosted on the website of the company witha view to seek offers in this regard. Evaluation of offers is done as and when the sameare received. So far about 27 offers have been received. However no suitable propertyhas been found for carrying out further due diligence. With the recent amendments in thehe Mines and Minerals (Regulation and Development) Act 1957 the company has signed MoUwith Government of Madhya Pradesh for exploring of manganese ore deposits in the State. Ifand when the reserves are established the company may go ahead with steps resulting inmining of the ores in the near future in terms of the MoU.
(C) Joint Venture Companies (SAIL&MOIL Ferro Alloys Pvt. Ltd and RINMOIL FerroAlloys Pvt. Ltd)
MOIL has two separate Joint Ventures (50:50) with Steel Authority of India Limited(SAIL) and Rashtriya Ispat Nigam Limited (RINL) for seffi'ng up Ferro Alloys Plants. Dueto high power tariff there is no operation in the JV companies. Pursuant to firstproviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules2014 a statement containing salient features of the financial statement of associatecompanies (Form AOC-I) are annexed as Annexure-I - consolidated financial Statementas per provisions of section 129(3) of companies Act 2013.
(D) Exploration Business
Ministry of Mines Government of India has notified MOIL for conducting exploration ofvarious minerals on pan-India basis under per Section 4(1) of the MMDR Act 1957. Thisopens up opportunities to MOIL to expand its business in this new area. MOIL is going tosign an MOU with National Remote Sensing Centre Hyderabad for conducting remote sensingstudy in four districts of Madhya Pradesh after which exploration work will be carriedout as per MoU signed with State Government.
> RESEARCH & DEVELOPMENT (R&D):
MOIL is engaged in exploration exploitation and marketing of various grades ofmanganese ore and value added products such as Electrolytic Manganese Dioxide (EMD) andHigh Carbon Ferro Manganese Alloys. MOIL operates three opencast and seven undergroundmines in narrow manganese ore bodies with varying dip directions with difficult geo-miningconditions associated with poor rock-mass quality of wall rocks. The company has carriedout R&D activities to improve the safety and productivity in the mines by introducingmodern technology with CSIR-R&D Laboratory reputed academic and research institutionsof the country. MOIL has engaged and associated for various R&D projects with theinstitutions like CSIR - Central Institute of Mining & Fuel Research (CIMFR) NationalMetallurgical Laboratory (NML) National Geophysical Research Institution (NGRI) NationalEnvironmental and Engineering Research Institute (NEERI) Indian Institute of Technology(IIT) National Institute of Technology (NIT) National Institute of Rock Mechanics(NIRM) Kolar Gold Fields Indian Institute of Engineering Science& Technology(IIEST) etc.
Some of the R&D projects in MOIL are given below:
(i) Mine Environment: Ventilation reorganization studies for deeper levels havebeen conducted at Gumgaon and Chikla Mine by Indian Institute of Technology (IIT)Kharagpur. Recommendations have already been implemented at Gumgaon and the implementationis in progress at Chikla Mine.
(ii) Mines Safety - Mining Subsidence: In-house scientific 3-D analysis ofsubsidence parameter has been carried out for forest cover of Ukwa Mine. The monitoringstations with 5 (five) subsidence monitoring pillars have been properly erected in linewith strike and dip directions of the ore body on the surface land area and quarterlymeasurement is being done by total station and GPS to monitor the 3-D coordinates.
(iii) Mineral conservation: R&D studies have been conducted at Chikla Mine byNational Institute of Rock Mechanics (NIRM) KGF.
(iv) Mining Technology:
(a) Method of Stoping: R&D project for mechanized stoping operation has beenprepared by IIT (Formerly Indian School of Mines) Dhanbad and implemented for mechanizedstoping operations and support systems at Ukwa Mine. This helps in improvement inproduction safety and productivity by mechanization of stoping operation.
(b) Alternative to Cartage Explosives:To reduce the ground vibrations fly rockand noise as also to increase operational efficiency Site Mix Emulsion (SME) Explosiveshave been used with shock tubes at Dongri Buzurg opencast mine on experimental basis. Theresults are encouraging and it is now planned to switch over to the new blasting method.
(v) Collaborative work with Academic and Research Institutions:
(a) MOIL is carrying out joint collaborative R&D project with VNIT Nagpur foralternative to sand for fill material. Bench scale hydraulic stowing plant has beeninstalled at Department of Mining Engineering VNIT Nagpur. This project has given a newavenue for paste fill engineering. Further studies for paste fill are going on.
(b) MOIL is also making collaborative research for slope stabilization with NITRourkela for Slope Monitoring Instruments (under S & T Scheme of Ministry of Mines).
(vi) In house -R&D works:Substitute of fill material -
(a) R&D wing has conducted the study for filling of underground sections at UkwaMine by bottom ash on experimental basis. Around 400 cum (m3) of bottom ashhave been filled in underground by hydraulic stowing. Further trials are continued forconfirmation of the outcome.
(b) Mill tailings of Malanjkhand Copper Project of Hindustan Copper Limited have beenutilized for hydraulic stowing operation at Ukwa Mine. Mill tailings have been used toreplace sand by in-house R&D studies.
Pre-cast RCC Columns & Sections: In-house developed pre-cast RCC columnsand sections have been rapidly erected in drift development and thus improved the safetystandard of drift development in underground besides increasing efficiency in concretingoperations
Further details regarding R&D activities are given in Annexure - II >CONSERVATION OF ENERGY:
Various energy saving project are under process at different locations in the company.Energy saving can be achieved by implementation
of new technology equipment reducing electricity consumption by proper monitoring andavoiding wastages. Measures taken/
proposed for reduction in energy consumption are as under.
(i) 48 KW rooftop solar power project has been installed at MOIL Bhawan Nagpur.
(ii) Installation of solar roof top at administrative blocks of all mines.
(iii) 5 MW solar power project in mines areas in Maharashtra and 5.5 MW solar powerproject in Madhya Pradesh.
(iv) Feasibility of 20 MW solar power project near Rajgarh in Madhya Pradesh.
(v) Installation of 250 KVR 11 KV capacitor banks at Balaghat mine for power factorimprovement and electricity saving.
(vi) Installation of solar panels at residential colonies.
(vii) At Dongri Buzurg opencast mine conversion of all conventional lights to LEDlight.
(viii) Occupancy sensors in administrative blocks.
(ix) Regenerative control systems for operation of battery locomotives in underground.
(x) Installation of small size compressors in underground mine for energy saving atBalaghat mine.
Electricity consumption per tonne of production for mines and plants of the Company.
KwH consumption PMT of the electricity has gone up for mining activities mainly due toincreasing depth of operations requiring more energy consumption and reduction inproduction during the year under reporting. Further details regarding conservation ofenergy have been given in Annexure -II.
MOIL has two wind farms of4.8 MW and 15.2 MW situated at Nagda Hills and Ratedi Hillsrespectively in District Dewas near Indore (M.P.). The power from 4.8 MW wind farm isbeing wheeled to Balaghat mine and is consumed in the mine as well as ferro manganeseplant of the company. Power generated from 15.2 MW wind farm is sold to utility i.e.Madhya Pradesh Power Management Company Limited. The company could generate 3.23 CroresKwH electricity in comparison to 3.64 Crores KwH in previous year mainly due to poor windvelocity.
> MINING LEASES AND EXPLORATION:
MOIL is having total 1743.77 Ha lease area as on 31-03-2017 out of which 704.22 Ha isin Maharashtra and 1039.55 Ha is in Madhya Pradesh (excluding of Forest area of UkwaBalaghat Tirodi and Dongri Buzurg which are yet to be executed). An area of 814.71hectare has been reserved by the Government in favour of MOILfor prospecting of Manganeseore in Nagpur and Bhandara districts of Maharashtra State. Out of 814.71 hectare areaState Government of Maharashtra has granted 584.309 hectare for prospecting of manganeseore covering 11 P.L areas and remaining areas are under process.
Geophysical survey by Gravity and Magnetic method was conducted within 11 P.L. areas byNational Geo-Physical Research Institute (NGRI) Hyderabad. Based upon the results ofGravity and Magnetic survey core drilling was conducted by MOIL within 3 P.L. areas andthe presence of manganese ore has been proved within these areas. Accordingly the Companyhas applied for Mining Lease (M.L.) over 211.60 Ha. Out of 3 M.L. applications Governmentof Maharashtra has communicated in-principal approval of two M.L. areas covering 132.46Ha. and one application is under process. Core drilling for remaining P.L areas is to betaken up after requisite approvals from State authorities.
During the year the Government of Madhya Pradesh has granted Mining lease over 76.409hectare in village Bharveli & Awlajhari in District Balaghat (Madhya Pradesh) infavour of the Company. MOIL has executed and registered the lease.
In addition to above Govt of Madhya Pradesh has also reserved an area of 372.701 Hain favour of MOIL in village Tavejhari Manjhara District Balaghat (M.P.) forexploitation of manganese ore.
> DEVELOPMENT OF INFORMATION TECHNOLOGY AND USAGE
The Company has set-up a full-fledged Systems Department in order to ensure aneffective computerization of all the functional areas of the Company. In order to ensurean adequate IT infrastructure steps taken by the System Department are as under.
Installation of computers at head office and all its mines at Maharashtra andMadhya Pradesh.
Ethernet based Local Area Networks (LAN) on Windows and Linux platform is inplace at all locations.
It has designed developed and hosted a dynamic internet website on NIC Server.
It has also designed developed and hosted a dynamic intranet website onin-house MOILNET Server
For effective sharing of applications databases/ information and otherresources on regular basis all the operational locations are connected through MPLS VPNand VPN over Leased line and Broadband.
For continuous knowledge acquisition communication and for inter-unit datatransfer facilities internet connections have been provided.
Procurement of goods and services costing over' 2 lakhs is through e-procurementportal of MSTC to bring transparency in procurement process.
ERP at MOIL envisages seamless integration of all business processes enable decisionmaking based on information that is
visible and transparent across all levels. With a single transaction base that isshared updated and drawn upon by the entire organization standardization of all themaster data across business functions is achieved.
State of the art Data centre for ERP is designed and commissioned at corporate officeNagpur.
In addition to core modules viz. Finance and Controlling (FICO) Materials Management(MM) Sales & Distribution (SD) Production & Planning (PP) Plant Maintenance(PM) Human Resource Management (HRM) of SAP the company has also implemented FLM DMSand ESS/MSS.
All the routine business transactions are shifted to SAP from the existing legacysystems from January 2017 and the system is geffi'ng stabilised. With this new MIS isbeing developed for better monitoring and transparency in operations.
> SAFETY AND OCCUPATIONAL HEALTH :
Your Company lays special emphasis to ensure safety in the mines and also takescontinuous efforts to reduce the accidents by constantly improving the standards of safetyequipment through introduction of latest mining techniques and mechanization of miningoperations. Following steps have been taken to improve the safety standards at the mines.
Training and re-training of employees to inculcate safety consciousness.
Regular meetings of Safety Committees in which accident analysis are mademeticulously with a view to reduce/eliminate injury and accidents.
A close inter-action is done with employees at all levels to prevent accidentsto the maximum extent possible.
Vocational and refresher training is imparted to each employee regularly apartfrom specialized training.
Training programs on role of safety in sustainable development and mining andenvironmental law are conducted regularly.
In the area of occupational health and management system MOIL has receivedOHSAS 18001:2007 certificate for Balaghat Dongri Buzurg Chikla Kandri Munsar GumgaonTirodi and Ukwa mines.
Risk Assessment studies are conducted for all underground as well as opencastmines by outside experts and safety management planis prepared as per the requirements ofDGMS.
Disaster management plan has been prepared for mines plants school hospitaland administrative offices.
Mines Environment & Mineral Conservation Week has been celebrated under theaegis of Indian Bureau of Mines Nagpur for year 2016-17.
Safety audit of Balaghat Ukwa and ferro manganese plant has been conducted.
> ENVIRONMENTAL PROTECTION AND RENEWABLE ENERGY:
Ecology conservation is crucial in today's era. It is imperative that the developmentprocess in a community is compatible with its environment as well as with the particularculture of that community. All the mines of MOIL including sand ghats have got EnvironmentClearance from the MoEF New Delhi. Your company with a goal of achieving sustainabledevelopment has taken proactive measures to reduce global warming. The Company isconscious of its responsibility towards environmental protection in and around itsleasehold areas. The cumulative plantation at various Mines as on 31.03.2017 is 19.23Lakhs sapling. In order to be an eco-friendly organization MOIL has set up Wind EnergyFarm ofTotal 20 MW at Dewas (M.P.). it has also installed 48 KW rooftop solar panel atMOIL Bhawan Nagpur. The company is also in the process of installation of 10.50 MWcapacity solar power projects at its mines. The company has replaced conventional lightswith LED lights in some of its working places and the same will be done in remainingplaces in a phased manner.
> VIGILANCE ACTIVITIES / EVENTS
The objective of vigilance is to ensure that the management gets the maximum out of itsvarious efforts and transaction. The functioning of vigilance department includespreventive as well as proactive vigilance with the main thrust on systems improvements inthe organization. Some of the important activities of the vigilance department during theyear 2016-17 are as under:
(1) SO 9001-2008: ISO certificates.
(2) Inspections: General and surprise inspections are being carried out regularly toensure adherence to norms during execution and to suggest improvements in the system.During 2016-17 total 60 periodic and surprise inspections and studies were carried out.
(3) E-governance: E-procurement is being done for purchases and work contracts abovethreshold value. The threshold value for purchases and work contracts is ' 2 lakhs.
(4) Structured meetings of vigilance: As per the instructions of CVC and Ministry ofSteel structured meetings of vigilance with CMD are conducted regularly. During theperiod 2 meetings were conducted. Issues related to e-governance leveragingtechnologies tendering management awards of work recruitment policies etc. werediscussed.
(5) Leveraging Technology: With reference to Central Vigilance Commission's circularemphasized on the effective use of website and leveraging technology in discharge ofregulatory enforcement activities and dealing with complaints. The main thrust areas forleveraging technologies are procurement of goods and services also the status of billpayments to contractors /suppliers is posted on website. All tender documents promotionlists transfer lists CSR works seniority list in applications for recruitment noticesand other pro-forma are regularly posted on the website.
(6) Updation of Manuals: Various manuals such as Purchase Manual Works and ContractManual Personnel Manual etc. have been prepared and put in practice. Purchase ManualWorks and Contract Manual Personnel Manual are posted on the Company's website /intranet. Updation of manuals is carried out on continuous basis as a part of proactivevigilance and is being perused with the management.
(7) Tender & Contracts: As per CVC circulars action is taken to ensure thattenders / contracts issued above a threshold value are posted on the website regularlyevery month and the same is being monitored.
(8) Training Programmes: During 2016 vigilance department conducted 4 trainingprograms at Corporate Training Center and at Munsar Training Center covering 167employees (612 Hrs.) on vigilance awareness.
(9) Job Rotation: Posts have been identified for job rotation considering thesensitivity of the posts and the officials working on these posts more than 3 years arebeing rotated by the management.
(10) Vigilance clearance: Vigilance clearances were issued to 1085 employees during theperiod for different purposes.
(11) System Improvements: As an outcome of different investigations relating tocomplaints study inspection etc. advisories and suggestions were given to themanagement for systems improvements in the following areas.
Preparation of estimates and rate schedules in works contracts.
Repeat orders and single entity working with large numbers of contracts.
Online submission and refund of EMD.
Scrutiny of caste and other relevant documents for recruitment under castecategory.
Procedures related to recruitment of medically unfit cases.
(12) Annual Property Return: As per CVC guidelines all executives in the organizationhave submitted their Annual Property Returns and 20% of the above have to be scrutinizedevery year. Accordingly 72 executives' Annual Property Returns' scrutiny has been carriedout during the period.
(13) Vigilance Awareness Week: Vigilance Awareness Week was observed from 31st Octoberto 5th November 2016 at all Mines /offices of MOIL Limited. On this occasion vigilancedepartment came out with the 5th annual issue of vigilance magazine Shuchita.Various competitions workshops seminars and vigilance awareness rally were organizedduring the week for employees students of school and colleges and public at large.
> IMPLEMENTATION OF RTI
With the advent of the Right to Information Act 2005 in India MOIL has taken the majorinitiatives towards its effective implementation.
MOIL has appointed CPIOs at the Corporate Office and PIOs at Mines. Head of personneldepartment has been appointed / designated as Appellate Authority under the Act. The namesof all the PIOs and the Appellate Authority have been hosted in Company's website
The information in respect of the company its employees etc. has been prepared under17 heads as prescribed in Section 4(1) (b) of the RTI Act and the same been hosted inCompany's portal. MOIL has been submiffing necessary information and returns to theprescribed authorities and updating the same regularly.
Awareness has been generated amongst employees about the intention and true spirit ofthis Act. The various provisions of the Act have been highlighted by issue of thecirculars to keep transparency in day-to-day work and maintenance of all the records in aproper/systematic manner. Further the Company has also been hoisting/updating inCompany's website as much information suo motu at regular intervals for the publicso that public has minimum resort to use the various provisions under the RTI Act toobtain information.
During the year under report the company has received total 66 applications under RTIAct out of which 28 applications were disposed and 38 were rejected in terms ofprovisions of RTI Act. Appellate authority has received 14 RTI appeals out of which 12appeals were disposed of during the year and 2 cases were pending as on 31.03.2017 whichhave been disposed.
> TRAINING PROGRAMMES AND SKILL DEVELOPMENT
During the year 2016-17 total 52 training programmes (internal& external) wereconducted for employees at Munsar Training Centre and at Corporate Training CentreNagpur. The participants who were imparted training during the year in various programmesinclude 344 mandays of executives and 311 mandays of non-executives. The company hasinstalled ERP System under which SAP training for one month was imparted to executivesand non-executives. In addition to this the company has also imparted training toapprentices under Apprentices Act 1961.MOIL has been encouraging its Trade apprentices toshow their inherent skills and has been providing various platforms to exhibit theirskill.
The Company has signed Moll with National Skill Development Corporation (NSDC) tocollaborate and support skill development initiatives in the vicinity of MOIL mines tomake available skilled manpower for the development of the industrial ecosystem in thearea. Under this programme training has been imported by channel partners of NSDC to 443on roll employees 153 contractual workers and 126 Local Youth residing nearby villages ofthe Mines. Accordingly total 722 participants was imparted training for 6296 mandays.
At MOIL as a part of Swachhata Abhiyan "Clean Day" (Swachhata Diwas) isobserved every month on 1st Wednesday at all Mines situated in Madhya PradeshMaharashtra including Corporate Office at Nagpur. On Swachhata Diwas the employees havebeen cleaning office premises work place residential premises roads drains and heapsof garbage's disposed of for maintaining health and hygiene.
All the mines observe Swachhata week from 27th September to 2ndOctober every year on the eve of Gandhi Jayanti. Swachhata Pakhwada is also being observedin the company every month at one of the mines of MOIL Ltd. from 1st to 15thof each month in which date-wise various activities regarding cleanliness drive at minesand nearby villages has been observed.
> USHERING IN CASHLESS TRANSACTIONS:
In line with Govt of India's move towards less cash transactions MOIL is conductingawareness propaganda not only to its employees and contract labour but also conductingawareness programmes for the shopkeepers and local villagers through seminars postersnukkad natak etc. by involving bank officials and NGO's.
> LABOUR WELFARE SCHEMES RECREATION & MEDICAL FACILITIES
MOIL is carrying out numerous welfare activities such as provision of housing drinkingwater electricity hospital health camps schools home loans and interest subsidies onhome loans etc. for the benefit of the employees. Salient features of such schemes are asfollows.
For improvement of living standard and taking into consideration of aspirationof the employees residential quarters have been constructed and allotted to majority ofthe employees.
Providing adequate supply of drinking water to the employees residing in mines'colonies.
The colonies and streets of the camps are well illuminated. The employees havebeen provided with subsidised units of electricity for their residence.
Hospitals/dispensaries have been setup at all the mines and are maintained byqualified doctors and supported by trained paramedical staff. The arrangement of OPD aswell as indoor ward separately for male and female employees is provided. Ambulance arealso provided to all the hospitals for attending to emergencies. The patients are alsobeing referred for medical treatments to specialized hospitals as per the requirement.
The scheme of post-retirement medical insurance for retired employees extendsmedical facilities.
Group superannuation cash accumulation scheme (defined contribution) i.e.pension scheme is in operation in the company w.e.f. 01.01.2007.
Assistance is extended for running primary schools at some of the mines wherefree education is imparted. School buses are provided at all the mines to facilitatetransport of children to nearby areas for schools/colleges.
DAV MOIL Public School has been set up at Chikla Mine. Total strength of theschool is 864 students during academic session 2016-17.
Reimbursement of tuition fees and scholarship are being provided to meritoriousstudents. Reimbursement of tuition fees to the children of staff and the workers areprovided for taking education in professional courses.
Two school buildings (at Ukwa and Bharveli) have been renovated and providedinfrastructure for better environment to the local children under CSR Scheme.
> WELFARE MEASURES TAKEN FOR SC/ST
MOIL is a labour intensive organization with 6201 employees on its rolls as on31.03.2017 out ofwhich around 80% belong to SC/ST/ OBC (including 45.96% belonging toSC/ST). Your Company is also taking keen interest in development of the tribal populationliving in the vicinity of the mines situated in remote areas by taking following actions.
Adopting villages near the mines and providing drinking water facilities roadmaintenance periodical medical check-ups and treatment to the people living in thesevillages.
Providing financial aid stationery books etc. to the school adjacent to themining areas.
Skill development training programmes for SC /ST local youth under skilldevelopment programmes.
> EMPOWERMENT OF WOMEN
MOIL has 731 women employees which constitute 12.38% of its total workforce of 6201 ason 31.03.2017.
In compliance of the directives of the Hon'ble Supreme Court guidelines relating toprevention of sexual harassment of women workers at work place were issued by Govt ofIndia Ministry of Human Resources Development. Accordingly a Sexual HarassmentPreventive Committee has been formed. The directives have been widely circulated to bringawareness amongst the women employees. No case of any harassment has since been reportedat any of the Mines of the Company or its Corporate Office.
Mahila Mandals are working effectively at all the Mines of the Company. Variouscultural social educative and community activities are being organized regularly mostlyfor the benefit of women residing in the remote mine areas. The Company also grantsMaternity Leave and Special Casual Leave for Family Planning.
As part of its CSR activities Self Help Groups have been formed at mines whichcomprise women hailing from the remote villages. They are trained to make candles washingpowder washing soaps bamboo baskets tailoring and various other vocational activitiesin order to make them self-reliant. This programme in MOIL has got very good response anda huge success.
> DISCLOSURES UNDER THE PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE(PREVENTION PROHIBITION & REDRESSAL) ACT 2013
As per the provisions of the Sexual Harassment of Woman at The Workplace (PreventionProhibition & Redressal) Act 2013 a Sexual Harassment Prevention Committee has beenset up in the Company to deal with the cases of sexual harassment. The Committee membersare as under.
The names of the Committee Members have been uploaded on Company's website.
The summary of the sexual harassment complaints received during the year 2016-17 is asunder.
The manpower as on 31.03.2017 ofyour Company is given below.
The category-wise details of employees' strength as on 31.03.2017 are as under:
> CITIZEN'S CHARTER AND GRIEVANCE REDRESSAL MECHANISM :
(a) Employees' grievances - MOIL has its own grievance redressal procedure forExecutives as well as non-executive employees. The grievances of employees are accordinglydealt with as per the rule.
(b) Public Grievance - Any citizen can submit his grievance through online CentralizedPublic Grievance Redressal and Monitoring System (CPGRAMS). All Grievance officials havebeen apprised of the manner in which the public grievance is to be disposed off. Thesystem adopted for dealing the grievance of public was constituted if any on the basisof instructions received from various authorities from time to time.
(c) The redressal of grievance machinery in MOIL consists of one Grievance Officernominated for each unit/mine. The Grievance Officer nominated at Head Office co-ordinateswith the Grievance Officers of the units/mines for their effective performance.
(d) Monthly/quarterly grievances are reviewed and dealt with by designated Publicgrievance officers at mines and corporate office and disposed ofwithin stipulated periodofone month.
(e) The data related to grievances at the units/mines are submitted by respectivegrievance Officers in monthly/quarterly returns to the Head Office.
Status of public and staff grievances for the period 01.04.2016 to 31.03.2017 -
> CORPORATE SOCIAL RESPONSIBILITY (CSR) AND SUSTAINABILITY
Corporate Social Responsibility in MOIL is a continuous process. MOIL has been carryingout CSR activities in a resolute manner for several years. It has framed a CSR Policy dulyapproved by the Board of Directors. Several schemes have been taken up and beingimplemented under CSR in the current financial year which broadly include the following.
In a major step towards providing quality education to rural children MOIL inassociation with DAV Group of Schools has constructed a large school at VillageSitasaongi in Bhandara district.
In its education and skill development initiative MOIL is supporting variousschools near its mines in District Balaghat of Madhya Pradesh and Bhandara District ofMaharashtra.
Training on logistic skills Minemates' and Blasters' training has been impartedto 130 local youths as per NSDC (National Skill Development Council) guidelines.
Under its Light to Lives program free cataract surgeries and Paediatric eyesurgeries have been carried out on needy rural people.
MOIL has also taken up various infrastructural development works likeconstruction of village roads community halls renovation of schools support forplantations etc. in the vicinity of the operational area of MOIL mines. A report on CSRactivities as required under Companies Act 2013 is attached as Annexure-lll.
> PROCUREMENT FROM MICRO SMALLAND MEDIUM ENTERPRISES
As per requirement of Micro Small and Medium Enterprises Development (MSMED) Act 2006and notification issued by Central Government in this regard PSUs are required topurchase minimum 20% of total annual purchase of products produced/services rendered byMSMEs. It further requires that 4% out of 20% shall be earmarked for procurement from MSEowned by Scheduled Castes or Scheduled Tribes entrepreneurs.
I t also requires the PSUs to report goals set with respect to aforesaid procurementand achievement made thereto in its Annual Report. In this regard it is to mention thatthe total procurement of goods which are produced by MSEs amounts to ' 47.99 Crores(previous year ' 53.75 Crores) out of which total value of goods procured from MSE(including MSE owned by Scheduled Castes or Scheduled Tribes entrepreneurs) is ' 20.86Crores (previous year ' 17.07 Crores) which amounts to 43.46% of total annual procurementof products produced by MSE.
Thus the Company is complying with requirement of Micro Small and Medium EnterprisesDevelopment (MSMED) Act 2006. For financial year 2017-18 MOIL has a goal to procureproducts produced / services rendered by MSMEs as mentioned in the first para above.
> PROGRESSIVE USE OF HINDI
In MOIL about 97% works are being done in Hindi at mine. The Unicode system has beeninstalled in all computers of the company. Hindi language software has been provided incomputers and training has been imparted to its employees so that the can use the same intheir day to day working.
For propagating and implementation of the provisions of Official Language Act 1963the company is continuously organizing Hindi competitions like essay writing notingdrafting poetry and articles etc. and the same are published in different magazines.Employees are being given re-training under the HINDI EDUCATION SCHEME of the HomeMinistry; so far 312 employees have already been given training for Pragya (High level)which is a continuous process in the company.
Company also promoted/contributed towards hindi magazines like "VAINGANGA"published by Nagar Rajbhasha Karyanven Samiti Balaghat and "RAJBHASHA DARPEN"published by Nagar Rajbhasha Karyanven Samiti Nagpur.
The Company also publishes in-house bilingual magazine "SANKALP" inHindi/English highlighting its performance achievements activities etc. The officersand employees of MOIL are sent to participate in various competitions organized by theHindi Samiti. Employees of the company are encouraged to participate in variouscompetitions in Hindi conducted by other institutes too.
> AWARDS AND ACCOLADES
MOIL is one of the public sector enterprises in the country known for its continuousexcellent performance. The Company has been geffing national /regional recognition for itsgood work in almost all the spheres of activities. The following are some of recognitions;the company has received at the national level.
4 Mines of MOIL received 5-Star Rating Award under Sustainable Development atthe hands of Hon'ble Minister for State l/C Power Coal and New Renewable Energy andMines Shri Piyush Goyal on 15th February 2017 at the event National Conclaveon Mines and Minerals held at New Delhi.
Corporate Governance - Excellent grading by DPE for 2015-16 received this year.
Four prizes in 47th All India Rescue Competition-2016 held at MinesRescue Station WCL Nagpur.
During the year under review Shri G.P. Kundargi (Chairman-cum-Managing Director)Shri. S.S. Shukla (Nominee Director Govt of Madhya Pradesh) Dr. Ashok Kumar LomasShri. J.P. Dange Shri. G.S. Grover and Smt. Sunanda Prasad (Independent Directors) haveceased to be directors of the company after attaining superannuation age or completion oftheir tenure. The Board places on records its sincere appreciation of their invaluablecontribution and guidance during their tenure.
Shri M.P. Chaudhari who was Director (Finance) has been appointed asChairman-cum-Managing Director of MOIL w.e.f. September 1 2016.
The Government of India has appointed Smt. Sunanda Prasad Retired IAS Officer asIndependent Director for a period of three years which shall expire on 30/01/2020 andShri. Manaohar Lai Dubey Secretary Govt of MP Mineral Resource Department as Govt.Nominee Director till 06.03.2018.
Shri D. S. Ahluwalia Director (Finance) of NMDC Ltd has been assigned additionalcharge of the post of Director (Finance) of MOIL Ltd for a period of three months i.e.till 30.11.2017 or till regular incumbent joins the post or until further orderwhichever is the earliest.
All Independent Directors have given declarations that they meet the criteria ofindependence as laid down under Section 149(6) of the Companies Act 2013 and SEBI(Listing Obligations & Disclosure Requirements) Regulations 2015. IndependentDirectors are generally appointed for a period of three years.
Pursuant to section 134(3)(q) read with rule (8)(5)(iv) of Companies (Accounts)Rules2014 the Board has designated Chairman-cum- Managing Director [Chief ExecutiveOfficer (CEO)] Sr. DGM (Finance) [Chief Finance Officer (CFO)] and Company Secretary asKey Managerial Personnel.
> APPOINTMENT PERFORMANCE EVALAUTION AND REMUNERATION POLICY
Being a Central Public Sector Undertaking the appointment tenure performanceevaluation remuneration etc. of Directors are made/tixed by the Government of India.
Ministry of Corporate Affairs vide its notification dated June 5 2015 has exemptedGovernment Companies from applicability of some of provisions/sections of the CompaniesAct 2013. As per the above notification the Nomination & Remuneration Committee isnot required to formulate the criteria for appointment of Directors their remunerationpolicy and carrying out their performance evaluation. In MOIL being a government companythe appointment of directors and their performance evaluation are undertaken byadministrative ministry i.e. Ministry of Steel Government of India as such performanceevaluation by the Board of its own performance that of its Committees and individualdirectors are not applicable/required.
The remuneration of officers is decided as per Government guidelines on pay revisionand remuneration of other employees of the company is decided as per Wage SettlementAgreement entered into periodically with the recognised Union. Appointments/ promotionsetc. of the employees are made as per Recruitment and Promotion Policy approved by theBoard.
> RISK MANAGEMENT POLICY
MOIL recognizes that risk is inherent to any business activity and that managing riskeffectively is critical to the immediate and future success of the Company. The RiskManagement Policy of the company establishes a system which helps in overseeing the risksmanagement of material business risks and also helps in internal control of the company.The same is also uploaded in the company's website www.moil.nic.in.
> DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors state that
(i) in the preparation of the financial statements the applicable accounting standardshave been followed and there are no material departures from the same;
(ii) they have selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair viewof the state of affairs of the company as at March 31 2017 and of the profit and loss ofthe company for the year ended on that date;
(iii) they have taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act2013 forsafeguarding the assets of the company and for preventing and detecting frauds or otherirregularities;
(iv) they have prepared the financial statements on a going concern basis;
(v) they have laid down internal financial controls to be followed by the company andthat such internal financial controls are adequate and were operating effectively;
(vi) they have devised proper systems to ensure compliance with the provisions of allapplicable laws and that such systems were adequate and operating effectively.
> STATUTORY AUDITORS
In terms of Section 143 (5) of the Companies Act 2013 M/s J. S. Uberoi & Co.Chartered Accountants Nagpur have been appointed by the Comptroller & Auditor Generalof India as Statutory Auditors of the Company for the year 2016-17.There is no fraudreported by auditors of the company under sub-section (12) of section 143 of the Act. TheStatutory Auditors' Reports are attached which are self-explanatory. CAG has also issuedNIL comment letter inrespect of inancial statements of 2016-17. Copy of the same isenclosed.
> SECRETARIAL AUDITORS
The Board had appointed M/s A. Mehta and Co. Indore as Secretarial Auditors for2016-17. Their Report is enclosed herewith which is self-explanatory. There are noqualification in the report except on composition of the Board of the company and itscommittees during the year. Being a Government Company all the directors are appointed bythe Government of India. At present the composition of committee is as per the statuaryrequirement.
> RELATED PARTY TRANSACTIONS
The Company has not entered into any materially significant related party transactionsthat may have potential conflict with the interests of the company at large. Nonethelesstransactions with related parties have been disclosed in point No. 23 in Note No. 1.1 ofnotes to the accounts. Hence no disclosure is made in Form AOC-2 as required in Section134(3) read with Rule 8 of Companies (Accounts) Rules 2014.The Company has Related PartyTransaction Policy and the same is uploaded in its website
The Company has a Whistle Blower Policy and the same is uploaded in its website
> COST AUDIT
As per provisions of the Companies Act 2013 and rules made thereunder M/s Ujwal P.Loya & Co. Cost Accountants Nagpur have been appointed as the Cost Auditor of theCompany to conduct audit of cost accounting records maintained by the Company for the yearended 31.03.2017. The due date for filing the Cost Audit Reports for the financial yearended 31stMarch 2017 is 27th September 2017. The Cost Audit Reportand Compliance Report for the year 2016-17 will be filed within the time limit asprescribed by the Ministry of Corporate Affairs.
> CONSOLIDATED FINANCIAL STATEMENTS
Your company has no subsidiary company. However it has two Joint Ventures namelyRINMOIL Ferro Alloys Pvt. Ltd and SAIL & MOIL Ferro Alloys Pvt. Ltd.
Pursuant to provisions of Section 129 (3) of the Companies Act2013 the duly auditedConsolidated Financial Statements are also placed herewith together with necessary notesannexures and disclosures as applicable and required.
Both the joint ventures have not yet commenced project/operations.
> OTHER DISCLOSURES
(i) R&D and Technology Absorption etc.: Particulars as required under theprovisions of Section 134(3) (m) of the Companies Act 2013 read with the Companies(Accounts) Rules 2014 forming part of this report are enclosed as Annexure-ll tothis report.
(ii) Foreign Exchange earnings and outgo: The Company has not made any export ofmanganese ore or its other products during the financial year 2016-17. During the yearunder review the Company has incurred expenditure on foreign travel/others of ?13.51lakhs in foreign currency as against ?33.50 lakhs in the previous year.
(iii) Particulars of Employees: MOIL being a Government Company has been exemptedfrom certain provisions of the Section 196 (2) (4) (5) and also Section 197 of theCompanies Act 2013. As such there are no employees covered within the purview of Section134(3) of the Companies Act 2013 read with Companies (Appointment and Remuneration ofManagerial Personnel)
2014 as amended from time to time.
(iv) Deposits: During the year under review MOIL has not accepted any deposits asprovided under the Act.
(v) Loans guarantees and investments: There are no loans guarantees and investmentsunder section 186 of the Act.
(vi) Composition of Audit Committee: The details regarding composition of AuditCommittee are mentioned in Clause No. 3.1(A) of the Corporate Governance Report which is apart of this Report.
(vii) Number of meetings of the Board: The details in this respect are given in ClauseNo. 2.2 of the Corporate Governance Report which is a part of this Boards' Report.
(viii) Extract of Annual Return: Pursuant to section 92(3) of the Companies Act 2013and rule 12(1) of the Companies (Management and Administration) Rules 2014 an Extract ofAnnual Return (Form MGT-9) as on 31.03.2017 is annexed as Annexure- IV.
(ix) In order to save papers and contribute in green initiatives of the Government thecompany is opting for sending Abridged Financial Statement (AOC- 3) to the shareholders.
> DETAILS OF SHARES IN SUSPENSE ACCOUNT
The details of shares in suspense account are as follows.
The voting rights on these shares in suspense account as on 31.03.2017 shall remainfrozen till the rightful owner of such shares claims the shares.
> MEMORANDUM OF UNDERSTANDING (MoU)
MOIL has been signing Memorandum of Understanding (MoU) with Ministry of Steel sincemore than 20 years. The MoU sets forth various targets and parameters of performancewhichare assessed against actual achievements after close of financial year. From the year1995-96 the company has been continuously geffing excellent ratings (except in2015-16 where it has got good due to worst market conditions in the decade). Therating for 2016-17 has not been issued so far. Continuing the practice MOIL has signedMoU with the Ministry of Steel for the year 2017-18 also.
> CORPORATE GOVERNANCE
The Company strives to attain high standards of Corporate Governance. A separatesection on Corporate Governance is annexed and forms part of the Boards' Report andenclosed as Annexure-V. Certificate of Corporate Governance is also attached withCorporate Governance Report which is self-explanatory. There is no other qualification inthe certificate except on composition of the Board of the company during the year. TheCompany however is in compliance of the requirement as on 31st March 2017. Being aGovernment Company all the directors of the Company including that of IndependentDirectors are appointed by the Government of India.
> MANAGEMENT DISCUSSION AND ANALYSIS AND BUSINESS RESPONSIBILITY REPORT
A report on Management Discussion and Analysis is placed at Annexure - VI. Incompliance with Regulation 34 of SEBI (Listing obligations and Disclosure Requirments)Regulations 2015 Business Responsibility Report in also Annexed as Annexure-VII.
> INDUSTRIAL RELATIONS
Industrial relations in MOIL continued to be cordial and peaceful during the year2016-17. There has not been any stoppage of work or any such labour agitation in theCompany. The tempo for better production and productivity was maintained. VariousCommittees are constituted at the mine level and corporate level for discussing variousissues for smooth functioning of the organization and expeditious decisions for thesettlement of grievances had been functioning satisfactorily.
> BUYBACK OF SHARES
Your Company has done buyback of 34812196 fully paid equity shares (representing20.72% of the total number of equity shares outstanding before buyback) at a price of? 248per share for an aggregate consideration of? 863.34 Crores during 2016-17. The buyback wasdone in accordance with provisions contained in Companies Act 2013 and SEBI (Buyback ofSecurities) Regulation 1998. Govt of India and Govt of Maharashtra have alsoparticipated in the buyback of shares.
Your Directors acknowledge the support co-operation and guidance received from theGovt of India Ministry of Steel Ministry of Environment and Forest State Governmentsof Maharashtra and Madhya Pradesh all Government Departments Company's shareholdersUnions/Associations of Employees Bankers valued customers suppliers and all otherstakeholders.
The employees of the Company have continued to show their commitment towards thepursuit of excellence. Your Directors take this opportunity to place on record theirappreciation for the valuable contribution made by the employees and look forward to theirservices with zeal and dedication in the years ahead to enable the Company to scale evengreater heights.