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NLC India Ltd.

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OPEN 96.25
CLOSE 96.15
VOLUME 11933
52-Week high 123.00
52-Week low 72.60
P/E 5.72
Mkt Cap.(Rs cr) 14,972
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

NLC India Ltd. (NLCINDIA) - Director Report

Company director report

Your Board of Directors have pleasure to present the 60 Annual Report together with theAudited Accounts of the Company for the year ended 31 March 2016. It is pleased to sharethat pursuant to the approval of Members of the Company the name of the Company has beenchanged to "NLC India Limited".

Segment-wise Performance


Your Company is presently operating four lignite mines viz. three lignite mines atNeyveli Tamil Nadu and one lignite mine at Barsingsar in the State of Rajasthan with atotal capacity of 30.60 MTPA.

The total Overburden (OB) removal during the year 2015-16 was 1702.76LM as compared to1592.98LM during the previous year registering a growth of around 6.89%. However thelignite production during the year 2015-16 was 254.51LT as compared to 265.43LT during theprevious year. The reduction in production was mainly due to unprecedented rainfall duringthe months of November and December 2015 coupled with restricted lignite requirement fromTPS-II Expansion owing to non-stabilization of units the reduced off-take from TAQA theIndependent power producer (IPP) besides subdued demand from nearby industries alsocontributed for the restricted production.


Your Company is presently operating four Thermal Power Stations at Neyveli Tamil Naduand one Thermal Power Station at Barsingsar Rajasthan with a total installed capacity of3240 MW. During the year both the Units of TPS-II Expn. (2x250 MW) achieved commercialoperation. As Members may be aware your Company has set its footprint in generation ofrenewable energy through its Wind Power Plant at Kazhuneerkulam Tirunelveli in the Stateof Tamil Nadu and Solar Power Plant at Neyveli. During the year 10 MW Solar Power Plantat Neyveli was commissioned and 8 more Wind Turbine Generators (WTGs) of 1.5 MW each werecommissioned totalling to 17 WTGs.

The power generation (Gross) during the year 2015-16 was 19182.21MU as compared to19729.13MU in the previous year. The export of power during the year 2015-16 was16104.02MU as compared to 16671.23MU in the previous year.

During the year 2015-16 the average Plant Load Factor (PLF) of the Thermal PowerPlants of the Company which were operational for the full year (excluding TPS-IIexpansion) was 76.03% against the All-India average PLF of 62.29%. The unprecedentedrainfall during the months of November & December 2015 affected the power generationand export during the year 2015-16. The operation of TPS-I with reduced Operating PlantLoad Factor (OPLF) owing to ageing of the plant stabilisation process of TPS-II Expn. andthe problems due to tube failures and refractory failures in Barsingsar TPS hadcontributed to lower generation. Moreover the Discoms during the year 2015-16 hadsurrendered 339.38 MU of thermal power which also contributed to lower performance. Theissues relating to the performance of TPS-II Expn. and Barsingsar TPS are being addressedand it is expected that during the current year 2016-17 both the Plants would beperforming to their rated capacity.


The output per man shift achieved during the year 2015-16 as compared with the previousyear is given below:

Product Unit 2015-16 2014-15 %
Lignite Tonne 13.08 12.88 1.55
Power KwHr 22889 22008 4.00

Financial Performance

During the year ended 31 March 2016 the Company registered a total sales of Rs 6669.05crore as against Rs 6087.68 crore recorded in the year 2014-15 registering a growth of9.55%. The sales registered for the year 2015-16 was the highest ever since inception.

The Profit Before Tax (PBT) and the Profit After Tax (PAT) for the year 2015-16 were Rs1925.88 crore and Rs 1204.15 crore respectively as against the PBT and PAT of Rs 2383.33crore and Rs 1579.68 crore respectively registered in the year 2014-15.

The reason for decrease in profit for the year 2015-16 was on account of unprecedentedrainfall and flood during the months of November and December 2015 which resulted in lossof lignite production consequently affecting the power generation.

The details of profit earned for the financial year 2015-16 and appropriation of thesame in comparison with the previous year 2014-15 are as under:

(Rs in crore)

2015-16 2014-15
Profit Before Tax 1925.88 2383.33
Tax provision 721.73 803.65
Profit After Tax 1204.15 1579.68
Appropriation :
Transfer to
Bond Redemption Reserve 15.00 15.00
Interest Differential Fund Reserve 15.00 11.81
General Reserve 120.00 160.00
Interim Dividend 301.99 301.99
Tax on Interim Dividend 60.53 61.83
Proposed Final Dividend 201.33 167.77
Tax on proposed Final Dividend 40.97 35.11


The Board of Directors of your Company has recommended a final dividend of 12% (` 1.20per share) for the year 2015-16 and during the year under review two Interim Dividendswere paid @15% and 3% respectively aggregating to 18%. The total dividend for thefinancial year 2015-16 works out to 30% (previous year 28%) and the total dividend outgoincluding Dividend Distribution Tax works out to Rs 604.82 crore (previous year Rs 566.70crore) which is 50.23% of Profit After Tax (PAT) for the year 2015-16 (previous year35.87%).

MoU Rating for the year 2014-15

Your Company has achieved "Very Good" rating for its performance during2014-15 in terms of the Memorandum of Understanding (MoU) entered into with the Ministryof Coal as per DPE guidelines.

Projects under construction / implementation

Neyveli New Thermal Power Project - 2x500 MW

Members may be aware that your Company is implementing a lignite based 1000 MW thermalpower project at Neyveli as a replacement to the 600 MW TPS-I the oldest lignite firedThermal Power Station in the Country at a capital cost of Rs 5907.11 crore. Due tore-tendering of Steam Generator Package commissioning of Unit-I & II has beenrescheduled to October 2017 and April 2018 respectively.

The Steam Generator (NTA1) and Turbo-Generator (NTA2) Packages have been awarded toM/s. BHEL and the Balance of Plant (NTA3) Package has been awarded to M/s. Essar Projects(I) Limited. Detailed engineering activities civil and mechanical works and supplies arein progress for Steam generator and Turbo generator packages. Erection of Main Boilerstructures ESP ducting power house structures etc. are in progress. Both the EOTcranes in Power House have been commissioned. Erection of TG has commenced. In respect ofBalance of Plant Package Engineering Civil works Structural Fabrication and MechanicalErection works are in progress. The cumulative expenditure incurred upto 31 March 2016 isRs 1813.37 crore.

Mine-I 10.5 MTPA (Area Expansion) & Expansion of Mine-IA (from 3.0 MTPA to 7.0MTPA)

Your Company is implementing area expansion of 10.5 MTPA Mine-I and Expansion ofMine-IA from 3.0 MTPA to 7.0 MTPA by adding contiguous lignite blocks to meet the fuelrequirement of the above mentioned Neyveli New Thermal Power Plant TPS-I Expansion andTAQA. Mining Plan for the Project has been accorded approval by Ministry of Coal while theenvironment clearance has been given by the Ministry of Environment & Forest(MOE&F). Mine Development activities in Mine-IA have commenced and the cumulativeexpenditure incurred upto 31 March 2016 is Rs 30.39 crore

Bithnok Thermal Power Project (250 MW) with linked Bithnok Mine (2.25 MTPA)

Your Board of Directors has accorded approval for establishing a lignite based 250 MWThermal Power Project with a linked mine of 2.25 MTPA capacity at Bithnok BikanerDistrict in the State of Rajasthan at an estimated cost of Rs 2709.93 crore with ascheduled commissioning in December 2019. It has been decided to implement this Projectthrough EPC (Engineering Procurement Construction) mode and accordingly a combinedExpression of Interest (EOI) tender was floated along with the Barsingsar Thermal PowerStation Extension Project. Scrutiny of offers received from prospective bidders has beencompleted and bidders shortlisted on Pre-qualification Requirements (PQR) have been issuedTechno-commercial specifications. DGPS survey and demarcation work have been completed forthe Mine and the Ministry of Coal (MOC) has accorded approval for the revised Mining Plan.MoE&F has issued Environmental Clearance to Bithnok Mine Project. The cumulativeexpenditure incurred upto 31 March 2016 is Rs 106.20 crore.

Barsingsar Thermal Power Station Extension (250 MW) with linked Hadla Mine (1.9 MTPA)

Your Board of Directors has also accorded approval for establishing a lignite based 250MW Thermal Power Project in Bikaner District in the State of Rajasthan as an Extension ofthe existing Barsingsar Thermal Power Project at an aggregate cost of Rs 2635.04 crorewith a scheduled commissioning in October 2019. The fuel requirement is proposed to be metfrom Hadla Mine of 1.90 MTPA capacity and the balance 0.40 MTPA from the existingBarsingsar Mine. All statutory clearances for both Power and Mine projects have beenobtained. As stated earlier a combined EOI tender was floated alongwith Bithnok PowerProject for EPC. Bidders have been shortlisted on PQR and Techno-commercial specificationshave been issued to them. The cumulative expenditure incurred upto 31 March 2016 is Rs3.34 crore.

Wind Power Project (51 MW)

Members may be aware that the Company as part of green energy development isimplementing 51 MW Wind Power Project at Kazhuneerkulam Tirunelveli District Tamil Naduat a cost of Rs 347.14 crore. M/s. Leitwind Shriram Manufacturing Limited Chennai theimplementing agency has commissioned 17 Wind Turbine Generators (WTGs) aggregating to25.5 MW till 31 March 2016 against the total capacity of 51 MW and the balance WTGs areexpected to be commissioned in 2016-17. The overall physical progress of the project is75.5%. The cumulative expenditure incurred upto 31 March 2016 is Rs 197.05 crore.

Neyveli Solar Power Project (130 MW)

Your Company had earlier set up a 10 MW Solar Power Project in Neyveli and in order toincrease its presence in generation of green energy your Board of Directors has accordedapproval for installation of 130 MW Solar Power Project at Neyveli at an estimated cost ofRs 830.45 crore. The project is expected to be commissioned in the year 2017-18.

Ministry of New and Renewable Energy (MNRE) Government of India has launched a Schemefor setting up of 1000 MW of Grid-Connected Solar PV Power Projects by Central PublicSector Undertakings (CPSUs) and other Government agencies. The Scheme mandates to procuresolar cells and modules from domestic manufacturers and also provides for Viability GapFunding (VGF) through Solar Energy Corporation of India (SECI).

In terms of the above Scheme MNRE has accorded in-principle approval for grant of VGFfor the setting up of above project. Two bidders viz. M/s.Jakson Engineers Limited andM/s.BHEL have been selected through EPC tender and Reverse Bidding Process at a price ofRs 4.7462 crore/MW. The cost of the project is Rs 687.275 crore. LOA has been issued tothe agencies on 04.06.2016. Site development activities are in progress.

Barsingsar Solar Power Project (130 MW)

Similar to 130 MW Solar Power Project at Neyveli your Board of Directors has alsoaccorded approval for installation of 130 MW Solar Power Project at Barsingsar in theState of Rajasthan at an estimated cost of Rs 830.45 crore. The project is expected to becommissioned in 2017-18. Project registration with Rajasthan Renewable Energy Corporation(RREC) has been completed. In response to the EPC tender floated two bidders viz.M/s.Jakson Engineers Limited and M/s.BHEL have been selected through EPC tender andReverse Bidding Process at a price of Rs 4.9795 crore/MW. The cost of the project is Rs723.62 crore. VGF is not available for this Project so far. However MNRE has beenrequested for VGF coverage.

New Projects under formulation

Acquisition of Power Projects

In order to have an inorganic growth your Company as per the approved Corporate Planaims to acquire power assets of about 3000 MW by the year 2025. In line with the abovePlan a MOU has been entered into with Damodar Valley Corporation (DVC) with the approvalof Board of Directors of your Company for acquisition of 2 x 600 MW Raghunathpur ThermalPower Station (RTPS) set up by DVC in Purulia District of West Bengal through a JointVenture Company (JVC) to be formed with an equity participation of DVC & NLC in theratio of 26% & 74% respectively subject to carrying out due diligence studies andapproval of Competent Authorities.

Both the Units of RTPS have completed the commissioning parameters during the month ofMarch 2016. Power Purchase Agreements have been entered into by DVC with various DISCOMsof Haryana Punjab and the State of Kerala and Long Term Access is available for supply ofpower aggregating to 450 MW and action is being taken for supply of 600 MW of Power to theState of Uttar Pradesh subject to the approval of Ministry of Power. Regarding coal forRTPS both DVC and your Company have approached the Ministry of Power (MoP) / Ministry ofCoal (MoC) for allocation of East of Damagoria (Kalyaneswari) Coal block as linked coalmine under Special Provision of Coal Mines Rules 2014. MoC has been requested to providetapering Coal linkage from the Mines of Barakar area (XII of BCCL) (Dahibari DamagoriaLakhimata) till the allotted Mine is developed and production of coal is commenced.

M/s. SBI Capital Markets Ltd. (SBI Caps) was jointly appointed by DVC and your Companyto carry out necessary due diligence studies on technical legal and financial aspectswith emphasis on risk factors & mitigation measures and also to advice both theParties on the acquisition process. The Project Cost as determined by CERC/APTEL for thepurposes of arriving at the final tariff would be the consideration value for the transferof RTPS Project assets to the JVC. SBI Caps has arrived at Rs 7547 crore as the ProjectCost based on CERC Regulation for Benchmark Cost and other norms etc. and the same mayundergo change while determining the final tariff for this Project by CERC.

The above acquisition proposal has been forwarded to Ministry of Coal for sanction.

Talabira II and III Coal Blocks

Your Board of Directors have pleasure in sharing with the Members that the Governmentof India has allotted Talabira II & III (containing Mineable Coal reserve of about 550Million Tonnes) open cast Coal Mines of capacity 20.5 MTPA in the State of Odishaexclusively to your Company. Members may be aware that the above Mines were earlierallotted to MNH Shakti Limited the joint venture company formed among M/s. MahanadiCoalfields Limited with 70% stake your Company & Hindalco with 15% stake each. Theabove allocation was subsequently cancelled pursuant to Hon'ble Supreme Court of Indiajudgement dated 25 August 2014. As per the allocation order issued to your Company coalproduced from the Talabira II & III Mines is to meet the fuel requirement of theproposed Sirkali TPS and the JV projects of NUPPL and NTPL.

Sirkali Thermal Power Project (3960 MW in two phases of 1980 MW each)

Your Company has proposed to set up a 3960 MW coal based thermal power plant atSirkali Nagapattinam District in the State of Tamil Nadu at an estimated cost of Rs 14482crore. It is envisaged to change the unit configuration from 660 MW (Sub Critical Boiler)to 800 MW (Ultra-super Critical Boiler) in terms of MoP guidelines and action has beeninitiated to revise the Feasibility Report accordingly. Power Purchase Agreements (PPA)have been signed with the beneficiaries. Your Company has submitted application toGovernment of Tamil Nadu for administrative sanction for acquisition of land. The fuelrequired for this project will be met from Talabira II & III coal blocks. Preparationof EIA/EMP Reports and Feasibility Report of the project are in progress.

Thermal Power Station- II Second Expansion (1000 MW) with linked Mine-III (9.0 MTPA)

Your Company has plans to set up a 1000 MW thermal power plant as a second expansion tothe existing TPS-II at Neyveli and to develop a new mine - Mine-III of capacity 9.0 MTPAto meet the fuel requirement. The proposed new mine will exploit 380 MT of lignitereserves available to the South of Mine-II. Ministry of Power has granted exemption fromtariff based competitive bidding for the above project. Preparation of Feasibility Reportand EIA/EMP reports are in progress. PPA has been signed with TANGEDCO Discoms of KeralaAndhra Pradesh & Telangana and Government of Puducherry. Signing of PPA with Discomsof Karnataka is in process. Your Board of Directors have accorded approval for the AdvanceAction Plan for (Phase-I) for Rs 7.05 crore for establishing the Mine-III. AAP activitiesare in progress. Based on the guidelines of Ministry of Power it is proposed to change theunit configuration from sub-critical (2x500 MW) to super-critical (2x600 MW) units.

Mine-II Augmentation from 15.0 MTPA to 18.75 MTPA Neyveli

In order to meet the additional requirement of linked Thermal Power Stations at Neyveliyour Company has proposed to augment the capacity of Mine-II from 15.0 MTPA to 18.75 MTPA.Pre-project related activities are in progress.

Solar Power Projects

With a view to fulfill the green energy commitment given to MNRE the Board of Directorsof your Company has accorded in-principle approval for setting up of Solar Power Projectsin the States of Tamil Nadu Andhra Pradesh Karnataka Kerala Telangana RajasthanPuducherry and Andaman & Nicobar Islands.

M/s. SBI Caps was engaged for preparation of Economic Viability Report (EVR) forestablishing the above projects and action has been initiated with various StateGovernments towards acquisition of land and also for signing PPAs for the proposedprojects.

Solar Project in Andaman & Nicobar Islands

It is proposed to set up a grid connected 50 MW solar power project with pumped hydrostorage system and battery backup in Andaman & Nicobar (A & N) Islands andMinistry of New and Renewable Energy (MNRE) has agreed to provide 40% of the Project Costdiscovered through competitive bidding process as a grant. A MOU has been entered intowith A & N administration and MNRE in this regard. Your Board of Directors haveaccorded approval for the Advance Action Plan for Rs 3.57 crore for taking up certainpreliminary project related activities.

Jilga-Barpali Coal Block

Members may be aware that Government of India had earlier allocated Jilga-Barpali coalblock in the State of Chhattisgarh jointly to your Company and Chhattisgarh PowerGeneration Corporation to develop the mine and share the coal reserves as per GOIallocation. The above coal block was found to be techno-economically not viable and henceyour Company had requested Ministry of Coal to allocate alternate coal block in lieu ofJilga-Barpali and accordingly Talabira II & III blocks have been allotted.

Coal Assets Abroad

Your Company was in the process of acquiring coal assets abroad for its coal basedthermal power stations. Further as stated above Talabira II & III coal blocks havebeen allotted to your Company to meet the fuel requirements of the coal based SirkaliPower Project of your Company and also the power projects of the Subsidiary Companies andhence it has been decided by the Board of Directors of your Company not to pursue theacquisition of coal assets abroad as envisaged earlier.

Joint Venture Projects

NLC TamilNadu Power Limited (NTPL) - Tuticorin Power Project (1000 MW)

Your Board of Directors are very happy to inform that the coal based thermal powerproject at Tuticorin Tamil Nadu consisting of two units of 500 MW capacity implementedthrough NLC Tamil Nadu Power Limited (NTPL) a Subsidiary of your Company jointly set upwith TANGEDCO has successfully achieved commercial operation on 18 June 2015 (Unit-I) and29 August 2015 (Unit-II) and since the commissioning of the Units

3655.41 MU of power was generated and 3313.30 MU was exported to the grid.

Neyveli Uttar Pradesh Power Limited (NUPPL) - Ghatampur Thermal Power Project (1980 MW)linked to Pachwara South Coal Block

Your Board of Directors is pleased to inform that the sanction of the Government ofIndia has been received for setting up of a 1980 MW coal based thermal power plantconsisting of 3 units of 660 MW each at Ghatampur Tehsil Kanpur Nagar District in theState of Uttar Pradesh at an estimated cost of Rs 17237.80 crore through its SubsidiaryCompany Neyveli Uttar Pradesh Power Limited (NUPPL) a joint venture with Uttar PradeshRajya Vidyut Utpadan Nigam Limited (UPRVUNL). As a fuel linkage to the above powerproject the Government of India has allocated Pachawara South Coal Block with a capacityof 11.0 MTPA in the State of Jharkhand. Due to difficulties faced in carrying outexploratory drilling work by M/s CMPDIL and DGPS Survey work by M/s. Total SurveyConsultancy owing to local law and order problems it is proposed to carry out the entireactivities from detailed exploration to project sanctioning and Mine developmentactivities through Mine Development Operators (MDO).

Consequent to the delay in obtaining Stage-I forest clearance for the linked PachwaraSouth Coal block which is a pre-requisite to consider environmental clearance for ThermalProject a revised proposal for using imported coal till the commencement of productionfrom the linked mine was submitted to MoE&F and based on that the EnvironmentClearance for the Thermal Project has been received.

It has been decided to implement the Project under three Package Mode viz. SteamGenerator & Auxiliaries and Steam Turbine Generator & Auxiliaries Package (GA2Package) and Balance of Plant Package (GA3 Package). Work has been awarded on M/s. L&TMHPS Boilers Private Limited for the GA1 Package and on M/s.Alstom Bharat Forge PowerLimited for the GA2 Package. The GA3 Package is under techno-commercial evaluation. Otherpreliminary / enabling works including railway siding for coal receipt & unloading andwater route alignment & water carrying system are under various stages offinalisation.

MNH Shakti Limited

This Joint Venture Company was promoted jointly by your Company MCL and HINDALCO. Asalready stated the Talabira II & III coal blocks which were earlier allotted to thisJV Company has been cancelled as per Hon’ble Supreme Court order and MOC has allottedthe said blocks to your Company.

Long-term borrowings & Credit Rating

Your Company had earlier obtained funding of Euro 215.10 Million from KfW Germany forMine-I TPS-I TPS-I Expansion & Mine-I Expansion. Further as part of funding for theMine-II Expansion TPS-II Expansion Barsingsar Mines & Barsingsar Thermal PowerProjects your Company had earlier entered into Rupee Term Loan (RTL) Agreements for Rs3750 crore (RTL I Rs 2500 crore and RTL II of Rs 1250 crore) and had also issued 8.83%Neyveli Bonds 2009 aggregating to Rs 600 crore. All these borrowings have been rated with'AAA/Stable' indicating highest safety by CRISIL and ICRA. During the year theoutstanding amount under these loans amounting to Rs 1400 crore has been repaid byrefinancing the same from SBI (` 467 crore) HDFC Bank (` 466.50 crore) and ICICI Bank (`466.50 crore) at a lower interest rate. Power Finance Corporation Limited has sanctioneda RTL of Rs 3000 crore for the NNTPS project and this has been rated with 'AAA/Stable'(highest safety) by Brick Works.


Steps taken by the Company to recover dues from Discoms in a time bound manner

Rebate Scheme

To encourage early realisation your Company formulated a special scheme called"Graded Rebate Scheme" (w.e.f. 01.04.2014) which provided for a graded rebatefrom a maximum of 2% for the payment upto two days including the date of billing to 0% onthe 60 day of billing.

One time waiver of surcharge settlement / Payment Priority Clause inclusionin PPA

A MoU for realisation of 50% of surcharge dues and revision of Power Purchase Agreement(PPA) for incorporating payment priority clause for appropriation of receipts were enteredinto with Puducherry Electricity Department (PED) in line with the MoU / PPA entered intowith other Discoms in the previous year.

Land Acquisition and R&R Policy

The extensive land requirement for the integrated projects of the Company necessitatesacquisition of private properties leading to involuntary displacement of people. YourCompany is sensitive to the painful and involuntary relocation of displaced families dueto the projects of your Company and strives to minimise the trauma of displacement. YourCompany is continuously and consciously balancing the techno-economic and thesocio-economic goals of its projects.

Your Company has developed several Resettlement Centres (RCs) in the vicinity of itsProjects and these RCs are provided with good infrastructure facilities and amenities andalso are well connected to the main roads. The eligible Project affected families havesmoothly resettled in these RCs and have also been provided with rehabilitation measuresin addition to legal compensation for loss of assets as directed by the appropriateGovernment from time to time and with the cooperation of the District Administration. YourCompany is following the National Policy on Rehabilitation and Resettlement 2007 for theongoing projects with certain enhancements aimed at minimising the adverse impacts of theprojects on the affected people and for the benefit of the project affected population.

The R&R measures are being implemented as directed by the R&R Administrator asper the National Policy on Rehabilitation and Resettlement 2007 and/or as per the R&RPolicy/Act announced by the appropriate Government from time to time.

Research and Development (R&D)

Centre for Applied Research & Development (CARD) is the In-house R&D centre ofyour Company. CARD has been granted National Accreditation Board for Testing andCalibration Laboratories (NABL) accreditation for chemical and mechanical testing ( forcertain parameters only). This accreditation is based on the international standardISO/IEC 17025:2005 and meets the principles of ISO 9001 that are relevant to scope oftesting services as well as technical competency of the laboratory.

The total R&D expenditure incurred during the year 2015-16 was Rs 13.82 crore andCARD has complied with the MoU guidelines on R&D.

Human Resource Management

Your Company takes pride in its competent and highly motivated human resourcesignificantly contributing to the growth and mission of the Company. Your Companymaintains harmonious and cordial relationship among its employees and with other stakeholders that leads to achieving organisational as well as individual goals. Human resourcehas been the backbone of the Company and the thrust on achieving higher growth and optimalutilisation of manpower continued in the year under review also. The total manpower of theCompany as on 31 March 2016 stood at 15880.

Employee Development

Your Company is continuously promoting training learning initiatives for skill andcompetency building for not only its own employees but also for the surrounding society.The training programmes and module include areas of Management Computer functional areasof thermal and mining skill development safety CSR etc.

Envisaging the importance of skill development among the society especially youthsvarious measures and initiatives are taken under its CSR plan for capacity building andpromoting entrepreneurial skills by imparting training and developmental activities invarious trades. Besides your Company provide Apprenticeship Training every year as perStatutory Guidelines of the Regional Director of Apprenticeship Training Chennai (RDAT)and the Board of Apprenticeship Training (BOAT) of Southern Region Chennai. The detailsof training imparted to the employees are as under:

In-house Programmes 32401 Man days including 3545 man days for women employees
Deputation Training Programmes 249 programmes covering 730 employees
Foreign Programmes 18 Foreign training programmes covering 31 Executives

Industrial Relations

Your Company continued its faith in participative management and has a regular systemof holding bipartite meetings with the Recognised Unions/Associations in addressing thecommon issues of the employees. Certain trade unions including the recognised unionsresorted to illegal strike during the year under review in pursuance of certain demandsincluding wage revision settlement with effect from 1 January 2012 and had called off thestrike on their own. Subsequently a MoU was reached with the recognised unions. Besidesthe above in general the industrial relations scenario of the organisation remainedcordial during the year 2015-16. During the period of strike production activities werenot affected.

Implementation of Official Language Policy

In line with the Policy of Government of India and the provisions prescribed under theOfficial Language Act 1963 all concerted efforts were made to implement the Policy andpromote the Official Language. Hindi workshops on various topics were organised besidesconducting Hindi regular courses and Hindi Typewriting courses for the employees topromote the Official language. Hindi Fortnight was celebrated in the month of September2015 and Hindi competitions were held during that period. Your Company was awarded with"Vishwamukti Rashtriya Rajbhasha Samman-2015" at Visakhapatnam for its excellentperformance in the progressive use of Official Language. Your Company has organised a twoday Official Language Conference and Kavi Sammelan on 17 & 18 August 2015 at Bangaloreinviting participants from all coal Companies under the Ministry of Coal.

Reservation of Posts

Your Company continues to follow the directives of the Government of India with regardto reservation for SCs STs & OBCs. The details of group-wise Men-in-Position (MIP) ason 31 March 2016 stands as follows:

Group Total Strength Strength of SC/ST / OBC % of SC/ST/OBC
A 3905 812 280 344 20.79 7.17 8.81
B 206 47 16 60 22.82 7.77 29.13
C 10358 1990 102 2817 19.21 0.98 27.20
D 1411 306 4 676 21.69 0.28 47.91
Total 15880 3155 402 3897 19.87 2.53 24.54

*Strength of OBCs appointed under OBC reservation which came into effect from08.09.1993. However adequate strength of persons belonging to Backward Communities wererecruited prior to the reservation for OBCs came into effect.

NLC Scholarship Schemes

Your Company has instituted scholarship schemes to support the cause of education andfor the benefit of the children of employees and the contract workmen deployed in NLC.Scholarships are awarded for pursuing under graduate degree / diploma / professionalcourses for a period of three and four years respectively. Totally 725 fresh scholarshipsare earmarked every year under various schemes for the above categories with a financialoutlay of Rs 3.10 crore. Besides the above your company reimbursed the tuition fees of1423 students belonging to SC/ST/OBC category studying in Jawahar Science College Neyvelito the tune of Rs 2.0 crore.

Sports Control Board

Your Company promotes sports activities among the Neyveli school students and NLCpersonnel through NLC Sports Control Board. Neyveli school students are regularly trainedin various games/athletics. Students were sponsored to participate in many StateNational International level events and have won various medals and trophies.


Your Company's Township at Neyveli spread over around 50 Sq.Kms with a total populationof about 135000 and 20400 residential quarters is a self-contained unit with allinfrastructural facilities that include schools college sophisticated 365 bed GeneralHospital library swimming pools air-conditioned auditorium stadium community welfarecentres recreation clubs reading rooms parks banks shopping complexes offices ofGovt. agencies etc. Similar Townships with all facilities have also been established inBarsingsar and Tuticorin.

IT Initiatives

During the year 2015-16 installation of Video Surveillance System / CCTV acrossNeyveli has been taken up. Video Conferencing System for use across the Company is underimplementation. Auto refunding of Earnest Money Deposits (EMD) to the bidders in PurchaseTenders has been implemented since December 2015. Auto refund of EMDs for servicesprocurement is expected to be completed during the current year.

Environment Management & Sustainable Development Projects

Your Company practices and promotes the best environment management covering theCompany’s objectives scope and structure of the environment interaction of naturesociety & the enterprise environment impact assessment economics of pollutionprevention environmental management standards etc. The environment policy of your Companyis in line with the Vision and Mission Statement and is committed to environment friendlymining and power generation. The three Thermal Power Stations and the three Mines atNeyveli are certified with ISO 14001 (Environment Management System) ISO 9001 (QualityManagement System) and OHSAS 18001 (Occupational Health and Safety Management System).

Excavation of soil for the purpose of extracting lignite is a pre-requisite for miningoperation. Your Company adopts different methods to reclaim the sterile soil filled areas.Integrated Farming System (IFS) is a technique jointly developed with Tamil NaduAgricultural University and successfully implemented in reclaiming the mined out landsuitable for agricultural horticulture crops and development of forestry pasture landetc. During the year 2015-16 97.50 Ha of land has been reclaimed in all the mines ofNeyveli. Orchards and herbal cultivation are undertaken in the reclaimed area. Slopestabilisation of the Mines Overburden dumps has been undertaken with a view to convert themine spoil fit for cultivation of vegetables.

Over 19.1 million trees have been planted in and around Neyveli Township and ProductionUnits which helps in maintaining clean environment dust suppression noise controllowering the atmospheric temperature and maintaining ecological balance.

As a measure of clean environment your Company imposed ban on usage of plastic bagsinside the Neyveli Township.


Your Company is taking pioneering efforts to provide a safe work place for itsemployees. Risk Assessment and Safety Audit are conducted for Mines and Thermal PowerStations on a regular basis by engaging accredited external agency. Safety relatedtrainings Basic Refresher on the job and job related briefing are being carried out toall sections of employees through well-designed training centres like Group VocationalTraining Centre for Mines Thermal Training Centre and Learning & Development Centre.Pit Safety Committee Unit Safety Committee and Central Safety Council are functioningwith a view to cultivate safety awareness among the employees and to minimise theaccidents.

Risk Management

In order to identify assess prioritize the threats to business and to create ways toreduce or mitigate their impact your Company has an approved Risk Management Policy andas per the policy the risks are classified broadly into three categories viz. StrategicRisks Business Risks and Operational Risks and further categorised based on their impactand the frequency.

Your Company has developed a comprehensive Integrated Risk Management (IRM) frameworkheaded by a Functional Director and under this framework Risk Management is practiced inall the units and the possible risks associated with its business are identified andmitigation plans are evolved. The risk together with the mitigation plans and itsimplementations are reviewed by the Risk Management Committee Audit Committee and by theBoard periodically.


In order to sensitize the employees of your Company measures such as Pro-activePreventive and Punitive vigilance activities were undertaken by Vigilance Department.Besides surprise checks regular checks CTE type examinations quality check andstudy/inspection have been conducted and various system improvements were achieved.

Various IT initiatives such as Bill Tracking System Payment to Contract Workmen by theContractors through Bank GPS based Vehicles Tracking System for lignite transportationAuto refund of EMD for unsuccessful bidders for Purchase of Materials throughe-procurement online vendors empanelment and installation of surveillance camera wereundertaken. Corruption Mapping is done in NLC.

Students Ethical Programme was introduced to impart ethical awareness and ethicalcharacter education programme to the school students of Neyveli Township. Customisedtraining programmes are conducted to sensitise the employees.

For the third consecutive year Vigilance department has been conferred with CorporateVigilance Excellence


MOU with Transparency International

Your Company has signed a Memorandum of Understanding with Transparency InternationalIndia part of Asia Pacific forum comprising 20 nations. Transparency International Indiais the Indian chapter of Transparency International based at Berlin. During the year2015-16 two review meetings of the Independent External Monitors were held with thesenior executives of the Company.

Corporate Social Responsibility (CSR)

Your Company as a socially responsible corporate citizen has continued to carry outdevelopment works in the surrounding villages right from its inception focusing on thesocio economic development of the operating regions for achieving inclusive growth.

• In the year 2015-16 your Company has adopted a Corporate Social ResponsibilityPolicy covering the various sectors of sustainable socio-economic development. The Policyis available in your Company’s Website:

• Your Company outlays funds for the CSR projects programmes and activitiesselected for implementation under the CSR Policy.

• The CSR Committee of the Board is monitoring the implementation of the CSRProjects. The Board of Directors reviews the same and ensures that your Company spends inevery financial year at least 2% of the average net profits of the Company for the lastthree years.

• Timeframes and milestones are fixed through Baseline Survey before commencementof the CSR Projects.

• Initiatives of State/Central Government Departments/Agencies aredovetailed/synergized with the CSR activities of the Company.

The CSR expenditure of your Company for the year 2015-16 is Rs 81.93 crore.

The major CSR initiatives undertaken during the year 2015-16 are given below:-

CSR - Peripheral

Members may be aware that a structured system is in operation for executing capitalworks for developing social infrastructure and building sustainable community assets whichbenefit the villages surrounding Neyveli in Tamil Nadu and Barsingsar in Rajasthan State.Under this scheme infrastructure development works like drinking water facility bysinking/maintaining the bore-wells constructing RCC water tanks providing roads bridges& access additional school buildings laboratories libraries additionalInfrastructure for primary health centres developing medical facilities de-silting oflakes etc. are being carried out on the basis of needs and priorities. Various works havebeen carried out during the year under review for the benefit of the population in theareas surrounding the operating localities. This includes the construction of 1414 toiletblocks in the Government High Schools in the States of Tamil Nadu and Rajasthan at anexpenditure of Rs 36.72 crore. Your Company also provides access to the social facilitiesof the Company’s Townships to the public in the surrounding areas.

CSR - Community

Your Company continues to extend all assistance including grant and infrastructure toSneha Opportunity Services at Neyveli to run a day-care education and training centre forspecial children of the region.

Neyveli Health Promotion and Social Welfare Society patronised by your Company has beenserving the society by supplying artificial limbs / calipers to the differently abledapart from running a school for the hearing impaired and a Computer Centre impartingtraining for differently abled widows and destitutes and gainfully employing them.

During the year 2015-16 CSR focused training programmes were organised for the benefitof the students teachers and the population of Neyveli locality in which 3953 personsparticipated. 327 women from various peripheral villages were trained in Light MotorVehicle driving tailoring and beautician trades. Around 300 men from various peripheralvillages were trained in trades of operation & maintenance of Light Motor VehiclesHeavy Transport Vehicles and Earth Moving Equipment Operation Welding and House Wiring.

Your Company has contributed Rs 100.81 lakh during the year 2015-16 under CSR towardsthe Relief and rehabilitation of areas affected by floods in the operating State of TamilNadu. This is apart from the contribution of Rs 148.19 lakh made by the employees of yourCompany for the same purpose.

CSR - Education

Your Company offers best education through its 10 schools - 3 Higher Secondary Schools2 High Schools 3 Middle Schools and 2 Elementary Schools and also through the KendriyaVidyalaya at Neyveli to the students from surrounding villages and also to the wards ofemployees. During the year under review the students’ strength in these 11 schoolswas 6894.

Your Company has imparted motivational and exam skills training in the year to 2029girls and 1796 boys of X and XII Standards in Neyveli and 14 peripheral village schools.

Your Company provides infrastructural support and also periodical financial support toRajiv Gandhi Education Society Barsingsar for providing quality education and technicaltraining to the children of villages around your Company’s project-sites in additionto the Jawahar Education Society at Neyveli.

During the year 112 students have been imparted Industrial / Technical Training inIndustrial Training Institute in Barsingsar village.

CSR - Health

Your Company provides quality medical treatment and occupational health servicesthrough its General Hospital to all inhabitants of the Neyveli Township and itssurrounding villages including comprehensive medical treatment to the Contract Workmenand their family members.

During the year 2015-16 :

• Free medical consultation with minimum antibiotic therapy and vitamins wasextended in about 86000 instances to out-patients from the rural public. About

32000 patients were given emergency treatment for various causes. Community HealthScreening for diabetes Hypertension and HIV covering about 12000 persons during theAnnual Book Fair and Safety Week Celebration were carried out.

• 21 medical camps were conducted in peripheral villages located in the areasurrounding Neyveli Township in Cuddalore District. 6358 persons of these villages werescreened and given medical advice and medicines by organising medical camps. During suchcamps 603 Random Blood Sugar Tests were taken 203 Electro Cardio Grams were generatedand 438 persons were provided with vision glasses. 595 patients were referred forin-patient treatment of which 183 persons underwent treatment.

• One Blood Donation Camp was conducted in Neyveli and 67 Students donated bloodfor the stock of Government Hospital at Vridhachalam.

• From February 2013 onwards your Company is providing nutritious food supplementto the HIV affected children belonging to the Cuddalore District HIV Positive Society. 285such children were provided with food supplements during the year 2015-16.

In addition to the above the details on specific Corporate Social Responsibilityprojects undertaken in compliance with Section 135 of the Companies Act 2013 are placedas Annexure -1.

Contribution to the cause of women

Your Company’s human resource is represented by 7.36% of Women employees.Programmes on women empowerment were organised during the year under review. Your Companyactively participated and deputed women employees for the programmes organised by"Women in Public Sector" (WIPS) under the aegis of SCOPE. Your Company is theonly organisation that provides workers education exclusively for women employees underguidance of Central Board for Workers Education (CBWE). Women are imparted with variousvocational skills at the "Women Empowerment Centre".

Visit of Parliamentary Committees

During the year 2015-16 the following Parliamentary Committees visited your Company.

1. Committee on papers laid on the table of the Rajya Sabha.

2. Standing Committee on labour.

Awards & Recognition

In recognition of its various activities your Company has been conferred with thefollowing awards during the year 2015-16 :

1. "Excellence in Cost Management Award 2014" from the Institute of CostAccountants of India in recognition of cost control measures undertaken by your Company.

2. "Star PSU Award" from Bureaucracy Today for excellence in CorporateSocial Responsibility in recognition of commitment and continuous engagement by yourCompany with communities towards empowering development for a sustainable growth.

3. "Viswamukti Rashtriya Rajbhasha Samman 2015" for effective implementationof Hindi as Official Language.

4. "Excellence in Integrated Water Resource Management Award" from CentralBoard of Irrigation and Power.

5. "National Golden Peacock Award for CSR-2015" from the Institution ofDirectors New Delhi.

6. "Gold Award" for outstanding achievement in CSR from Greentech Foundation.

Compliance under Persons with Disabilities Act 1995

Your Company ensures compliance of provisions under the Persons with Disabilities(Equal opportunities Protection of rights and full participation) Act1995. Your Companyhas evolved a comprehensive policy for Persons with Disabilities (PwDs) as per theguidelines of DoPT for providing certain facilities/amenities to PwDs to meet theirrequirements and enable them to effectively discharge their duties.

Your Company has resorted to a special recruitment drive during the year 2015-16 forappointing persons with disabilities as per reservation policy and till March 2016 112persons with various disabilities have been appointed.

Compliance under the Right to Information Act 2005

Your Company ensures compliance under the Right to Information Act 2005. 18 CentralAssistant Public Information Officers representing different functional areas one NodalOfficer one Central Public Information Officer two Appellate Authorities and oneTransparency Officer have been nominated to attend to the queries and appeals receivedunder the RTI act in a time bound manner.

During the year 2015-16 under the above Act 552 applications containing 2114 querieswere received and 508 applications covering 1840 queries have been replied.

Compliance under Public Procurement Policy

The Ministry of Micro Small and Medium Enterprises has notified the Public ProcurementPolicy and in terms of the said notification the target set for the financial year 2015-16for procurement of such items which are within the scope of MSEs was 20% and as againstthe same the achievement was 26.67%.

Citizen's Charter

Your Company maintains Citizen's Charter indicating details of clients customersunder different heads system of redressal of grievance etc. and the same is regularlyupdated.

Conservation of Energy Technology absorption and Foreign Exchange Earnings and Outgo

The particulars required under Section 134(3) (m) of the Companies Act 2013 regardingconservation of energy technology absorption and Foreign Exchange earnings and outgo arefurnished in Annexure-2.

Management Discussion & Analysis Report and Report on Corporate Governance

The Management Discussion & Analysis Report is furnished in Annexure-3. The reporton the compliance of Corporate Governance conditions stipulated by SEBI (ListingObligations and Disclosure Requirements) Regulations 2015 and the DPE guidelines isfurnished in Annexure-4. The Auditor’s certificate on the compliance of the aboveCorporate Governance conditions is furnished in Annexure-5.

Statutory Disclosures Under Companies Act 2013 and Listing Agreement

Extract of Annual Return

The extract of Annual Return in terms of Section 134(3) read with 92(3) of theCompanies Act 2013 is placed in Annexure-6.

Declaration by Independent Directors

The Independent Directors have given a declaration on meeting the criteria ofindependence as stipulated in Section 149(6) of the Companies Act 2013.

Particulars of Employees

Particulars of Employees as required under Rule 5(2) of the Companies (Appointment andRemuneration of Managerial Personnel) Rules 2014 - Nil.

Loans Guarantees and Investments

During the year 2015-16 your Company had subscribed to the equity share capital for anamount of Rs 238.41 crore and Rs 142.44 crore in NTPL & NUPPL respectively. As on 31March 2016 the share capital held by your Company in NTPL & NUPPL is Rs 1746.43 croreand Rs 189.92 crore respectively. During the year 2015-16 your Company has agreed toextend a Short Term Loan of Rs 500 crore for a period of 6 months to NTPL to meet itsworking capital requirements. Out of which an amount of Rs 320 crore has been drawn byNTPL during 2015-16 and besides the above your Company has not granted any loan orguarantee or made any investments (other than short-term deposits with the bank in theordinary course of business) during the year 2015-16.

Transfer to Reserves

During the year 2015-16 Rs 120 crore has been transferred to general reserves.


The Company has not accepted any deposit from public.

Disclosure with respect to demat suspense account/unclaimed suspense account

There were 1100 equity shares pertaining to 6 shareholders lying unclaimed as on01.04.2015. During the year 2015-16 no claim was received from any of the aboveshareholders and that the voting rights on these shares shall remain frozen till therightful owner of such shares claims the shares.

Material Changes affecting financial position occurring between the date of FinancialStatement and Directors’ Report

• Inspector General of Registration-cum-Chief Controlling Revenue Authority issuedan order set aside the claim of Rs 120.00 crore demand made by the Sub-RegistrarKammapuram Vridhachalam towards short fall in stamp duty and registration charges inconnection with the indenture of mortgage of charges for the loan availed from PowerFinance Corporation.

• Commissioner of Income-tax (Appeals) issued favourable orders by rejecting partof the demand made by the Department in the assessment orders thereby Rs 271.94 crore ofthe claim against the Company will decrease.

Sexual harassment of women at work place

An exclusive Committee has been constituted for looking into the complaints relating tosexual harassment of woman at work place. During the year 2015-16 no complaint wasreceived in this regard.


Statutory Audit

M/s. P.B. Vijayaraghavan & Co. Chartered Accountants Chennai and M/s.Chandran& Raman Chartered Accountants Chennai were appointed by the Comptroller and AuditorGeneral of India (C&AG) as the Joint Statutory Auditors for the year 2015-16 underSection 139 of the Companies Act 2013. The Board of Directors of your Company has fixedRs 24 lakh plus applicable service-tax as the Statutory Audit fees to be shared equallyby the Joint Statutory Auditors.

Branch Audit

M/s. Surender K Goyal & Co. Chartered Accountants Jaipur has been appointed asthe Branch Auditor for the year 2015-16 by C&AG for conducting the audit of Mine andThermal Units at Barsingsar.

Secretarial Audit

Shri. R. Balasubramaniam Practising Company Secretary Chennai was appointed as theSecretarial Auditor for the year 2015-16. The Secretarial Audit report for the year2015-16 and the reply to observations of the Secretarial Auditor are furnished inAnnexure-7.

Cost Audit

M/s. M. Krishnaswamy & Associates Cost Accountants Chennai were appointed as theCost Auditor for the year 2015-16 to conduct the cost audit for Mines & PowerStations of the Company. The Cost Audit Report for the year 2014-15 was filed with MCA on28.09.2015.

C&AG’s Comments

C&AG’s Comments on the accounts for the year ended 31 March 2016 is furnishedin Annexure-8.

Directors’ Responsibility Statement as per Section 134(3) (c) of the CompaniesAct 2013

The Board of Directors declares that :

(a) in the preparation of the annual accounts the applicable accounting standards hadbeen followed along with proper explanation relating to material departures;

(b) the Directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe profit of the Company for that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the annual accounts on a going concern basis;

(e) the Directors had laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and were operatingeffectively;

(f) the Directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.

Board of Directors

On attaining the age of Superannuation Shri. B. Surender Mohan laid down the Office ofChairman and Managing Director on 30.09.2015. Shri. Sarat Kumar Acharya earlierfunctioning as Director/HR has been appointed as the Chairman and Managing Director by theMinistry of Coal w.e.f. 01.10.2015.

Shri. Rajesh Lakhoni former Secretary to Govt. of Tamil Nadu Energy Departmentrelinquished the Office w.e.f. 11.12.2015 and Shri. N.S. Palaniappan Principal Secretaryto Govt. of Tamil Nadu/Public Works Department and Energy Department was inducted as aDirector on the Board of the Company w.e.f. 23.12.2015.

Shri. S. Rajagopal Director/Power and Shri. S. Boopathy Director (P&P)relinquished their Office on 31.08.2015 and 31.12.2015 respectively on attaining the ageof superannuation and in their places Shri. V. Thangapandian and Shri. P. Selvakumar havebeen appointed w.e.f. 01.09.2015 and 01.01.2016 respectively.

Shri. Chandra Prakash Singh Shri. Azad Singh Toor and Shri. K. Madhavan Nair wereinducted as Independent Directors of the Company w.e.f. 17.11.2015 03.12.2015 and11.12.2015 respectively.

Smt. Sujata Prasad Joint Secretary & Financial Advisor Ministry of Coal and ShriN.S. Palaniappan Principal Secretary to Govt. of Tamil Nadu/Public Works Department &Energy Department who were on the Board of the Company relinquished the office w.e.f.20.06.2016 and 06.07.2016 respectively.

The Board places on record its appreciation for the valuable contribution made by Shri.B. Surender Mohan Shri. S. Rajagopal Shri. S. Boopathy Shri. Rajesh Lakhoni Smt.Sujata Prasad and Shri. N.S. Palaniappan during their tenure as Directors on the Board ofthe Company.

Shri. Rakesh Kumar Director retires by rotation at the forthcoming Annual GeneralMeeting and being eligible offers himself for re-election.


The Board of Directors of your Company places on record its sincere appreciation forthe continued support and guidance extended by the Ministry of Coal Ministry of PowerMinistry of Finance Ministry of Environment & Forest Ministry of Industry Ministryof Labour Ministry of Heavy Industries NITI AayogCentral Electricity Authority CentralElectricity Regulatory Commission State Electricity Boards and beneficiaries ofTamilnadu Andhra Pradesh Telangana Karnataka Kerala Puducherry and Rajasthan and alsothe Joint Venture Promoters viz. Tamilnadu Generation and Distribution CorporationLimited(TANGEDCO) Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited(UPRVUNL) MahanadiCoalfields Limited (MCL) and Hindalco.

The Board of Directors of your Company is pleased to acknowledge with gratitude theco-operation and continued support extended by the Governments of Tamilnadu &Rajasthan and the District Administration of Cuddalore and Bikaner. The support andco-operation by the Comptroller and Auditor General of India the Statutory AuditorsBranch Auditor Cost Auditor Secretarial Auditor Director General of Mines Safety theFactory & Boiler Inspectorates Chief Inspector of Factories the Director of BoilersCentral Pollution Control Board State Pollution Control Board Chief Controller ofExplosives Regional Labour Commissioner Regional Provident Fund Commissioner theCompany's Bankers and KfW of Germany need special mention and the Directors acknowledgethe same.

Your Directors also wish to place on record their appreciation for the dedicated workput forth by the employees at all levels. The positive roles played by the recognisedTrade Unions and Associations of the Engineers and Officers in maintaining cordialindustrial relations deserve special mention.

for and on behalf of the Board of Directors