On behalf of Board of Directors I feel great pleasure in presenting the 58thannual report of your Company together with the auditor's report and financial statementsfor the year ended on 31st March 2020.
A. FINANCIAL RESULTS
Financial results of 2019-20 and of the previous year are highlighted below:
Rs. in crore
|Particulars || |
| ||2019-20 ||2018-19 ||2019-20 ||2018-19 |
|Revenue from operations ||1038.07 ||1440.67 ||1038.07 ||1440.67 |
|Other income ||181.11 ||190.81 ||181.07 ||190.81 |
|Total income ||1219.18 ||1631.48 ||1219.13 ||1631.48 |
|Profit before interest depreciation and tax (EBIDTA) ||436.65 ||786.57 ||436.65 ||791.14 |
|Depreciation ||96.16 ||66.82 ||96.16 ||66.82 |
|Profit before tax (PBT) ||340.49 ||719.75 ||340.49 ||724.32 |
|Less : Provision for taxation ||92.27 ||245.86 ||92.27 ||245.86 |
|Profit after tax (PAT) ||248.22 ||473.89 ||248.22 ||478.46 |
|Total comprehensive income ||253.56 ||454.32 ||253.56 ||458.90 |
|Transfer to general reserve ||80.00 ||270.00 ||80.00 ||270.00 |
Key financial ratios (Standalone results)
|Ratios ||2019-20 ||2018-19 |
|EBIDTA to sales turnover (%) ||42.06 ||54.60 |
|PAT to net worth (%) ||8.98 ||15.37 |
|EBIDTA to average capital employed (%) ||16.46 ||29.43 |
|Earning per share (Face value Rs. 10 each) ||9.80 ||18.40 |
|Book value per share ||116.44 ||119.67 |
MOIL is a dividend paying company since many years. Continuing the same during the year2019-20 an interim dividend @ 30% i.e. Rs. 3.00 per equity share has been paid inFebruary 2020. The Board of Directors of your company has further recommended a finaldividend @ 30% i.e. Rs. 3.00 per equity share for the year. The total dividend for theyear 201920 thus works out to Rs. 6.00 per equity share (Rs. 6 previous year). The totaldividend outlay including dividend distribution tax for the year works out to Rs. 157.03crore (Previous year Rs. 186.34 crore) on reduced share capital post buyback of shares. Incurrent year's total dividend outlay dividend distribution tax on final dividend is notincluded as the Government has withdrawn dividend distribution tax. The Company is havinga dividend distribution policy which is available on company's website www.moil.nic.in.
C. FINANCIAL PERFORMANCE
Your Company has recorded sales of Rs. 1038.07 crore during F.Y. 2019-20 as compared toRs. 1440.67 crore in previous year. Profit before tax (PBT) for the year is Rs. 340.49crore in comparison to previous year's PBT of Rs. 719.75 crore. The Company has earned aprofit after tax (PAT) of Rs. 248.22 crore as against Rs. 473.89 crore in the previousyear. Total comprehensive income for the year is Rs. 253.56 crore. The reduction inturnover and profit during the current reporting period is mainly due to changes inproduct mix containing higher proportion of medium and low grade ores available for saleand sharp fall in prices of manganese ore in international market and reduction in demand.The financial performance is also affected due to stoppage of operations at mines/plantsconsequent to lock down imposed after outbreak of corona virus (detailed elsewhere in thereport).
As per the Investment Policy approved by the Board your Company has deployed surplusfunds in fixed deposits and mutual funds and earned interest income (included in totalinterest received) of Rs. 154.64 crore (previous year Rs. 165.13 crore) and clubbed underother income. The interest income was lower in comparison to last year due to fundutilized for buy back of shares by the Company and also lower rate of interest during theF.Y. 2019-20.
In F.Y. 2019-20 MOIL has achieved turnover of Rs. 1038.07 crore in comparison toprevious year's turnover of Rs. 1440.67 crore. F.Y. 2019-20 was a challenging year formanganese ore industry. Price of imported ore witnessed downward trend during the firstthree quarters of the F.Y. 2019-20. In order to keep in tune with the imported ore priceswhich accounts ~ 50% of domestic consumption MOIL continued reviewing the prices onmonthly basis. However when prices were on trajectory of recovery and started showingupward trend from the beginning of 4th quarter of the year the global economywas hit by the Covid-19 pandemic. By end of the 4th quarter of F.Y. 2019-20the market for the manganese ore started affecting adversely on account of lockdown.
In FY 2019-20 per tonne average sales realisation has decreased from Rs. 10403 to Rs.8217 (a reduction of 21.01%). The sales of manganese ore decreased by 7.08% from 12.70
lakh MT in the 2018-19 to 11.80 lakh MT in 2019-20. During the year the companycontinued to take various positive steps in order to derive the best out of marketconditions to increase the sales such as continuance of partial railway freightreimbursement to the buyers located in far-flung areas credit policy etc.
In respect of manufactured products of the company viz. electrolytic manganesedi-oxide (EMD) and ferro manganese the total net sales during the year 2019-20 was Rs.60.95 crore in comparison to Rs. 111.20 crore during previous year. Sales quantity of EMDhas slightly decreased from 987 MT in the year 2018-19 to 930 MT in the year 2019-20 andsale of Ferro Manganese has also decreased from 12199 MT in the year 2018-19 to 6187 MT inthe year 2019-20. Price as well as demand of Ferro Manganese in the domestic market wasalso not encouraging during F.Y. 2019-20.
E. PRODUCTION AND PRODUCTIVITY
During 2019-20 your Company has produced 12.77 lakh MT of various grades of manganeseore as against 13.01 lakh MT in previous year. Reasons for the lower production areenumerated above. Output per man shift (OMS) was at 1.044 MT (previous year 0.992 MT). Theproduction of EMD was 925 tonnes as against the 992 tonnes during the previous year. Theproduction of ferro manganese was 10421 MT as against the 11003 MT in the previous year.
F. CLOSING STOCK
The Company has a closing stock of 1.91 lakh MT of manganese ore valued at Rs. 115.13crore as on 31.03.2020 as compared to 1.23 lakh MT valued at Rs. 66.13 crore as on31.03.2019. The closing stock of ferro manganese was 5524 MT valued at Rs. 27.26 crore ason 31.03.2020 as against 1290 MT valued at Rs. 8.27 crore as on 31.03.2019. The closingstock of EMD as on 31.03.2020 was 34 MT (previous year 38 MT) valued at Rs. 0.44 crore(previous year Rs. 0.51 crore).
G. COVID-19 AND ITS EFFECT ON THE COMPANY
The pandemic of COVID-19 has engulfed the entire world and has posed serious challengesfor the health and economic security of millions of people worldwide. In India too thespread of coronavirus has been alarming and is posing severe health and economicramifications for the country.
The impact of the COVID-19 pandemic started appearing globally much before it came toIndia. From December 2019 itself the steel industry started showing slowdown whichresulted in fall in demand of steel affecting the prices of manganese ore.
Though the COVID-19 pandemic started affecting the performance of the company as abovefrom December 2019 effect was felt on production from second/third week of March 2020after imposition of lock-down restrictions. It has become more serious in the firstquarter of 2020-21. Due to Corona virus threat lockdown was imposed in entire countrywhich was partially relaxed in stages in June 2020. State of Maharashtra is having thehighest number Corona virus patients in India. Madhya Pradesh state is also widelyaffected with Indore (the state's commercial capital) having the highest numbers of cases.As all the mines of MOIL are located in these
two states the production of the company has impacted badly during lockdown period.
Due to lockdown your company had to temporarily suspend operations at its mines andplants as per the directives of the Government and keeping in mind the paramount need ofsafety of the employees. Hence production and dispatches partially for March 2020 andfor in April-June 2020 suffered severely. The operations though in a scaled down mannerhave since commenced after obtaining permissions from the district authorities concernedand puffing in place all safety measures including social distancing sanitization healthcheck-up etc. As a result of partial lifting of restrictions operating levels haveincreased but it will take some time to reach at normal capacity especially due to socialdistancing norms which pose difficulties in mines' working conditions. It is expected thatnormalcy in operations will be restored only after lifting the lockdown in a considerablemanner. Nonavailability of coke due to transport restrictions ferro manganese plant couldnot be operated during the first quarter of 2020-21. The production and sale quantity ofmanganese ore have come down to 42.30% and 51.09% respectively in comparison tocorresponding 1st quarter of previous year. Similarly the turnover in valueterms has also come down to 53.72% during the period.
The Indian Steel Association (ISA) has estimated steel demand in India to fall incalendar year 2020 to around 93.7 million tonne from an estimated actual of 101.50 milliontonne in 2019. This appears to be very challenging and difficult for manganese oreindustry as well.
Your Directors have been closely reviewing the impact of Covid-19 pandemic on theCompany. The dispatches to customers' have also resumed. The Management is in constanttouch with its customers on the evolving situation and making all efforts to service theirrequirements with minimal delays. The situation created by Covid-19 continues to hold someuncertainties for the future; however the Board and the Management will do it's best toaddress the same as the situation evolves in the interests of all stakeholders of theCompany. MOIL is a debt free company with sufficient liquidity and will surely come out ofthis stressed situation and improve its performance.
As a responsible corporate citizen MOIL apart from the other measures enumeratedabove to fight with the Covid-19 with respect to the working conditions for the employeeshas risen to meet the needs of the nation and so far contributed Rs. 45.00 crore to PMCares Fund and Rs. 5.00 crore to Maharashtra Chief Minister's Relief Fund to help in thefight against COVID-19. This is in addition to the contribution of one-day's salary by allthe employees of MOIL for the cause. The Company has also contributed Rs. 3 crore to PMCares Fund under its CSR activities for 2019-20.
H. CAPITAL / VALUE ADDITION / DIVERSIFICATION PROJECTS
In order to meet the future requirement and maintain leadership in the industry MOILhas planned to enhance its production from present level of 1.30 million MT to 2.50million MT by 2025 and 3.00 million MT by 2030 for which a strategic management plan isalready in place. In this direction your company has planned investments for developmentof existing mines acquisition of new mines within and outside the country acquisition ofareas adjoining the mines setting up value addition/ diversification projects etc. Someof the projects have already started and some are in progress. These projects will requireinvestments of about Rs. 2560 crore by 2030.
MOIL is giving utmost thrust on expansion and modernization of its mines to sustainproduction levels and attain capacity enhancement. Projects for deepening of verticalshaft at Balaghat mine and Kandri mine have been completed. These shafts will help theCompany sustain as well as enhance the production from these mines. Projects for shaftsinking at Ukwa and Munsar mines as well as high speed shafts at Balaghat and Gumgaonmines are also in progress.
MOIL has been granted a lease for a period of 50 years from 22.04.2016 to 21.04.2066 invillage Parsoda Tahsil Ramtek Distt over an area of 53.75 Ha (now enhanced to 61.29 Ha).
Nagpur. MOIL commenced exploitation of manganese ore from Parsoda mine over area of53.75 Ha and production from fag-end of March 2019. The mine has achieved productionlevel of 31988 MT as against environmental clearance limit of40000 MT during 2019-20.
During the year under review MOIL got environmental clearance for Mn. Ore mine in anarea of 48.974 hectares for production capacity of 120000 lakh tonnes per annum. Thisarea is adjacent to Ukwa mine of the Company. Mining operations will be carried outthrough underground mining method and necessary steps shall be taken to approach the orebody as early as possible. MOIL also got Environmental Clearance for enhancement ofproduction capacity from 90000 TPA to 203200 TPA for its Gumgaon mine. The productionwill increase gradually from this mine.
The above projects/new leases will help MOIL move ahead towards its ambitious vision ofalmost doubling production to 2.5 million MT by FY 2024-25.
I. CAPEX AND MINE EXPANSION PROJECTS
In order to achieve the production target MOIL has taken up various mine developmentand expansion projects which include setting up of high speed shaft at Balaghat andGumgaon mines with total investment of about Rs. 460 crore. With a view to diversify itsactivities decision has been taken for setting up of ferro alloy plant of total 75000 MTcapacity at Balaghat and Gumgaon mines with total investment of about Rs. 419 crore. Theseprojects are expected to be completed between 2022 and 2023.
Capex plans of the company envisage investments in vertical shaft sinking/deepeningprojects development of new leases/area for mining regular additions/modifications/replacements in fixed assets townships research development etc. Total Capexutilization during the year 2019-20 was Rs. 199.87 (in LDM) crore as against Rs. 208.30crore in previous year. Capex target for 2020-21 is set at Rs. 379.80 crore which isbeing reviewed in the light of work restrictions during Covid-19.
0 PROJECTS COMPLETED DURING 2019-20
a) Sinking of ventilation shaft at Balaghat mine at capital cost of Rs. 8.50 crore.Project has been completed in all respects in August 2019 which ensures better airventilation at south section of the underground mine for the purpose of safety andenhanced productivity.
b) Sinking of ventilation shaft at Kandri mine at capital cost of Rs. 4.50 crore.Project has also been completed in all respects in August 2019 which ensures better airventilation in the underground for the purpose of safety and enhanced productivity.
0 PROJECTS UNDER IMPLEMENTATION
a) Sinking of new vertical shaft 160 mtrs. depth at Munsar Mine at capital cost of Rs.51.32 Crore. Scheduled completion was in April 2020. Shaft sinking & lining upto fulldepth of 160 mtrs completed. Other works are in progress. Expected completion of thisproject shall be in Nov-2020.
b) Sinking of vertical shaft of 324 mtrs. depth at Ukwa Mine at capital cost of Rs.77.15 Crore. Scheduled completion is in Aug. 2020. Shaft sinking & lining upto 200mtrs. Has been completed and other works are in progress.
Expected completion of this project shall be in Aug.-2021.
c) Sinking of large dia. high speed vertical shaft of 330 mtrs. depth at Gumgaon Mineat capital cost of Rs. 194 Crore. Scheduled completion is in Jan.-2021. Shaft sinking& lining upto 180m. depth completed and other works are in progress.
d) Sinking of large dia. high speed vertical of 750 mtrs. depth at Balaghat Mine atcapital cost of Rs. 259 Crore. Scheduled completion is in July-2021. Shaft sinking &lining upto 480m. depth completed and other works are in progress.
Due to prevailing covid-19 pandemic the project at Munsar mine has got delayed.Further other projects are also likely to be delayed due to continued lockdown which isbeyond the control of the company. Even after lifting/ relaxation of lockdown projectsactivities couldn't be carried out with full swing as SOP and other safety measuresrelated with COVID-19 pandemic as issued by Govt. from time to time are followed. YourBoard and Management will take all measures to minimize the delays.
0 UPCOMING / NEW PROJECTS
(a) 50000 MTPA ferro alloys plant at Balaghat mine with an investment of Rs. 263.82crore
(b) 25000 MTPA ferro alloys plant at Gumgaon mine with an investment of Rs. 155.00crore.
These projects have been approved by the Board subject to JV or off take agreement withprospective customers. Entering into off-take agreements is now being explored anddiscussions are underway. Purchase of land for the projects is completed at Gumgaon mineand is in progress at Balaghat mine. After obtaining statutory clearances implementationwill be taken up of projects.
J. ACQUISITION OF MINES IN AND OUTSIDE THE COUNTRY
In line with Strategic Management Plan of the Company there are plans to havestrategic alliances coupled with off-take agreements with manganese ore producers abroad.An open-ended Expression of Interest (EoI) has been hosted on the website of the companywith a view to seek offers in this regard. Offers received are evaluated for furthercourse of action.
As reported last year the company had received an offer from Gabonese Government inrespect of manganese ore assets but now promoters have informed about dropping thedisinvestment proposal.
K. JOINT VENTURE COMPANIES (SAIL & MOIL FERRO ALLOYS PVT. LTD. AND RINMOIL FERROALLOYS PVT. LTD.)
MOIL has two joint ventures (50:50) with Steel Authority of India Limited (SAIL) andRashtriya Ispat Nigam Limited (RINL) for setting up ferro alloys plants. As reportedearlier the projects are not viable at the present power tariffs of State ElectricityBoards. Thus there is no further development on project of both the joint venturecompanies during the year. MOIL is exploring options of having JV/long term off-takeagreement with SAIL and RINL in respect of proposed ferro alloys plant at Gumgaon andBalaghat mines. Since both joint venture companies are in-operative since theirincorporation and the Board has already approved setting up ferro alloys plant at Gumgaonand Balaghat it has been proposed to close these companies. Pursuant to first proviso tosub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules 2014 astatement containing salient features of the financial statement of associate companies(Form AOC-I) are annexed as Annexure-I.
L. RESEARCH AND 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 Alloy. MOIL operates four opencast and seven underground minesin narrow manganese ore body 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 byintroducing modern technology with CSIR-R&D laboratories reputed academic and R&DInstitutions of the country. MOIL has engaged and associated with following institutionsfor many R&D projects.
(1) CSIR-Central Institute of Mining & Fuel Research (CIMFR) Nagpur and Dhanbad
(2) CSIR-National Metallurgical Laboratory (NML) Jamshedpur
(3) CSIR-National Geophysical Research Institution (NGRI) Hyderabad
(4) CSIR-National Environmental and Engineering Research Institute (NEERI) Nagpur
(5) Indian Institute of Technology (IIT) Kharagpur
(6) Indian Institute of Technology (IIT) Dhanbad (Formerly Indian School of Mines)
(7) National Institute of Technology (NIT) Rourkela
(8) Visvesaraya National Institute of Technology (VNIT) Nagpur
(9) National Institute of Rock Mechanics (NIRM) Kolar Gold Fields
(10) Indian Institute of Engineering & Science (IIEST) Shibpur
Significance of the R&D projects in MOIL 0 Mine Ventilation:
Ventilation reorganization studies for deeper levels have been conducted by IndianInstitute of Technology (IIT) (formerly ISM)
Dhanbad for Balaghat Mine. Ventilation drifts have been re-located at Balaghat Mine andsinking has been commenced for 5m diameter ventilation drifts. This will be completed byAugust 2020. It will help improve the face ventilation and productivity of undergroundsections of Balaghat Mine. Moreover as per the recommendations of the IIT Kharagpur fordeeper level ventilation large diameter ventilation fan with energy saving devices hasbeen commissioned at newly constructed evasee at Gumgaon Mine. It has improved theventilation standard in underground section of Gumgaon Mine and resulted in improvement inproduction.
0 Mines Safety - Mining subsidence and Patents
In-house 3-D analysis of subsidence parameters have been carried out by MOIL and foundthat there are no noticeable movements in any orthogonal direction
above the ground at Munsar mine. Accordingly MOIL has filed a Patent for "Amethod used to determine the subsidence at mining site" which is published on12.10.2019. In-house prepared subsidence parameter scientific report has been vetted byIIT Kharagpur. The subsidence monitoring by in-house developed seven pillars formicro-analysis has been designed for better safety.
0 Mineral Conservation
R&D studies conducted by National Institute of Rock Mechanics (NIRM) KGF for stopedesign have been implemented at Munsar mine. The modified stope design has increased thequantity of manganese ore in underground for exploitation by around 20%. Further longhole drill and blast method for semi-mechanized operation is in experimental stage at themine for safety and productivity improvement.
0In House - Mining Technology - Rock Mechanics
a) MOIL has designed in-house rock mechanics software 'MOIL-RMR' for rock masscharacterization and support design. Patent has been filed for 'A system and a method forrock mass characterization and rock support system in mining' for publication on31.01.2020. It is indicating RMR & Q and puffing the values directly in graph withoutany human machine interference (HMI) and indicating roof span stand-up time anddesignated support for method of workings for better safety.
b) Alternative to river sand - R&D wing of MOIL has used old refuse overburdenmaterial with crushing screening and heat treatment of material
at Munsar mine for hydraulic transportation in underground for stowing. Bench scalestudies and field trials confirm that the treated old refuse overburden material could beused for hydraulic transportation for stowing in underground with or without river sand.Further field trials are going on at mine site.
c) MOIL has filed the patent for "A composition useful as an alternative materialfor hydraulic stowing in an underground mine and method thereof" which is publishedon 13.04.2018. This will help reduce the consumption of river sand in substantial quantityin future years. Further trials are going on at mine site with combination of bottom/pondash for substitute of river sand for hydraulic stowing in mines.
Further scientific study has been conducted by CSIR-CIMFR Dhanbad for use of bottom /pond ash for paste filling in June 2019. Accordingly field trials of bottom/ pond ashfor hydraulic stowing have also been completed at Balaghat mine.
>Sustainable Development Framework - Environment and Patent
Collaborative scientific research for evaluation of environmental parameters in andaround Kandri and Munsar mine has been completed for on line continuous monitoring of airwater and noise parameters on experimental basis by Indian Institute of EngineeringScience and Technology (IIEST) Shibpur. The patent has been filed jointly by MOIL-IIESTShibpur for the "Real - time zero waste water quality observing system" on27.02.2020 for publication.
Modern Radar Technology
Time Domain Refractrometry (TDR)-based wireless system for slope stability monitoringhas been installed at Dongri Buzurg open cast mine in collaboration with NIT Raurkela.Studies are going on for better safety and productivity.
Space Technology - Remote Sensing
MOIL has signed MoU with National Remote Sensing Centre (NRSC) Hyderabad for remotesensing studies of four districts of Madhya Pradesh namely Balaghat Chindwada Jabalpurand Jhabua for identification of manganese bearing areas. NRSC has submitted the report.On the basis of the report MOIL has carried out field survey and applied for permissioncore drilling from Govt. of Madhya Pradesh in potential zone. This will help generate newmining leases in the said area.
MOIL has established Geographic Information System (GIS) and Remote Sensing laboratorywith ERDAS ARC GIS and Surpac software along with petrological microscope for capacitybuilding of R&D works and for study of all operating and future mine leases for mineplanning and design. Rock mechanics lab with modern rock testing machines as per ISRMstandards is in progress with rock mechanics numerical modelling softwares at headquartersof the Company at Nagpur.
International Publication of MOIL
MOIL has published a technical article 'Modified Ground Support with Alternative FillMaterial for Ground Control at Munsar Underground Manganese Mine of MOIL Limited India'in a book "New Trends in Production Engineering - Monograph Part-1" ISBN(Print): 978-3-11-067479-8 and ISBN (e-book): 978-3-11-067480-4 published by SciendoWarszawa 2019 Poland. The article has been reviewed by Missouri University of Scienceand Technology Rolla USA and AGH University of Science and Technology Krakow Poland.
R&D expenditure of MOIL during 2019-20 is Rs. 5.48 crore Further details regardingresearch and development activities are given in Annexure - II
M. CONSERVATION OF ENERGY
Various energy saving projects are in progress at different locations of the company.Energy saving will be achieved by implementation of new technology equipment reducingelectricity consumption by proper monitoring and avoiding wastages. Measures taken orproposed for reduction in energy consumption and the future plans to this effect are asunder.
(1) A solar power plant of 5 MW capacity has been installed at Munsar Dist. Nagpur(M.S.)
(2) Solar power plants of 4.5 MW grid-connected and 0.96 MW capacity load-connectedhave been installed in Balaghat District of Madhya Pradesh.
(3) Installation and commissioning of 54.25 KW Solar Tree is in process at MOIL BhawanNagpur.
(4) Installation of energy saving equipment like star rated air conditioners ceilingfans LED-lamps etc. are installed at corporate office and administrative blocks ofvarious mines through EESL.
(5) Procurement of energy efficient transformers is in process for phase-wisereplacement of old units.
(6) Procurement of Active Harmonic Filters is in process. These devices will be used toimprove power factor and reduce harmonics in power system.
(7) Energy Audit at all mines and plants has been executed though PetroleumConservation Research Organization (PCRA). Recommendations of PCRA will be executed incoming years.
Electricity consumption per MT of production for mines/plants of the Company is asunder.
|Sr. Particulars || |
KwH consumption PMT
|No. ||2019-20 ||2018-19 |
|1. Manganese ore (Mn ore) ||22.80 ||20.94 |
|2. Ferro manganese (FeMn) ||2998.98 ||2993.00 |
|3. Electrolytic manganese di-oxide (EMD) ||3830.30 ||3034.32 |
Details regarding conservation of energy have been given in Annexure -II.
0Wind power generation
To generate and promote clean and green energy MOIL has commissioned wind farms of 4.8MW and 15.2 MW situated at Nagda Hills and Ratedi Hills respectively in District Dewasnear Indore (M.P.) during 2006-2008. Power generated from 4.8 MW wind farm is beingwheeled to Balaghat mine and is consumed in the mine as well as ferro manganese plant ofthe company. Wind power generated was 313.06 lakh KWh during 2019-20 as against 346.77lakh KWh in 2018-19. Out of total generation captive consumption is 85.61 lakhs KWh inthe Balaghat mine and ferro manganese plant of the company. Rest of the power generated issold to utility i.e. Madhya Pradesh Power Management Company Limited.
N. MINING LEASES AND EXPLORATION
MOIL is having total 1743.77 Ha lease area as on 31.03.2020 in Maharashtra and MadhyaPradesh (excluding forest area of Ukwa Balaghat Tirodi and Dongri Buzurg which are yetto be executed). An area of 814.71 Ha. has been reserved by Maharashtra Government infavour of MOIL for prospecting of manganese ore in Nagpur and Bhandara districts. Out ofthis 814-71 Ha area the State Government has granted prospecting license (P.L.) overeleven areas aggregating to 597.44 Ha in first phase. Geophysical survey by gravity andmagnetic method has been conducted in these areas by National Geophysical ResearchInstitute (NGRI) Hyderabad. Based on the results of the survey core drilling has beenconducted by MOIL where the presence of manganese ore has been proved in three PL areas.Accordingly the Company has applied for three Mining Leases (M.L.) over 176.86 Ha. Out ofthese the Government has communicated in-principle approval of two M.L. areas covering132.46 Ha. and one application is under process. In 2nd phase balance area hasbeen granted by Government of Maharashtra comprising of 212.931 Ha. in four PL areas. Theexploration in these PL areas by core drilling is expected to start soon.
In addition Government of M.P. has also reserved as area of 372.701 Ha.in favour ofMOIL in Balaghat for exploitation of manganese ore. Your company has taken necessary stepsto convert these areas into mining leases so as to open new mines/expand existing mines.During the year 2018-19 your company started a new mine in village Parsoda TahsilRamtek District Nagpur over an area 53.75Ha (now enhanced to 61.29 Ha). The mine hasachieved production level of 31988 MT as against environmental clearance limit of 40000MT during 2019-20.
MOIL has signed a detailed MoU with Gujarat Mineral Development Corporation Limited(GMDC) a Gujarat State enterprise on 01.10.2019 to explore the possibility of mining ofmanganese ore in the State of Gujarat. For detailed exploration and analysis MoU has alsobeen signed with Mineral Exploration Corporation Limited (MECL) a CPSE underadministrative control of Ministry of Mines. After completion of the exploration work andits analysis a Techno Economic Feasibility Report (TEFR) will be prepared. Based on theTEFR if project is viable a joint venture company will be formed between MOIL and GMDCwith shareholding of 51% and 49% respectively. Exploration by core drilling has alreadycommenced in January 2020 and initial results indicate availability of good quality ofmanganese ore.
Tripartite MoU has also been signed amongst MOIL Govt. of
Madhya Pradesh M.P. State Mining Corporation Ltd. (MPSMC) for conducting explorationin four districts i.e. Jabalpur Jhabua Balaghat Chhindwara in Madhya Pradesh State.This MoU also envisages formation of a joint venture company with 51:49 MOIL: MPSMCshareholding for manganese mining. In this context MOIL has signed MoU with NationalRemote Sensing Centre (NRSC) - a unit of ISRO Hyderabad to carry out remote sensing studyover four districts to delineate the potential Manganese zone within the district.National Remote Sensing Centre has submitted report on remote sensing study. Based onremote sensing study MOIL has carried out geological mapping and field survey within theareas and identified some blocks for exploration. Accordingly MOIL has applied forreservation under sub rule (1) of rule 67 of the Mineral (Other than Atomic andHydrocarbon Energy Mineral Concession) Rules 2016 to Govt. of Madhya Pradesh forexploration.
During the year 2019-20 MOIL has carried out 7205 mtrs. exploratory core drilling bydepartmental drill rig. With continuous drilling and exploration works MOIL has been ableto add to its reserves and resources of manganese ore which have increased from 89.41million tonnes as on 01.04.2019 to 90.00 million tonnes as on 01.04.2020 (92.59 milliontonnes as on 01.04.2019 to 93.06 million tonnes as on 01.04.2020 including dumps). Withthis MOIL is very well positioned to contribute to the India's Steel demand growth givenit's dominant position medium to high grade ore reserves centrally located mines andstrong customer ties.
O. DEVELOPMENT OF INFORMATION TECHNOLOGY AND USAGE
The Company has set-up a full-fledged Systems Department in order to ensure aneffective computerization and digitisation of all the functional areas of the Company. Inorder to ensure an adequate IT infrastructure steps taken by the System Department are asunder.
Installation Computers and other IT equipment at all its offices andMines/plants.
Ethernet based Local Area Networks (LAN) on Windows and Linux platform is inplace at Head Office Nagpur and at all Mines of the Company.
For effective sharing of Applications databases/ information and otherresources on regular basis all the Mines and HO are connected through MPLS VPN and VPNover Leased line.
For continuous knowledge acquisition e-mailing and for inter unit data transferfacilities all the concerned officials of Head Office have been provided with internetconnection through internet leased line on OFC. All the Mines are provided with leasedline internet connections on OFC.
Procurement of goods and services through e-procurement portal of MSTC to bringtransparency in procurement process.
Implementation of ERP in the Company. In addition to core modules viz. FICO MMSD PP PM HRM of SAP the company has also implemented File Lifecycle ManagementDocument Management System and Employee Self Service Portal.
State of the art Data center for ERP is designed and commissioned at Corporateoffice Nagpur.
Use of File Lifecycle Management (FLM) for effective file tracking and reductionin paper work.
Use of Video Conferencing for communication with Mines Ministry and otheragencies.
Marketing of high value product such as dioxide ore Ferro Manganese and FerroManganese Slag through e-action on MSTC on behalf of MOIL.
ENTERPRISE RESOURCE PLANNING (ERP)
ERP implementation at MOIL envisages seamless integration of all businessprocesses effective decision making based on information that is visible and transparentacross all levels. With a single transaction base that is shared updated and drawn uponby the entire organization standardization of all the master data across businessfunctions is expected to be achieved.
State of the art data centre for ERP is designed and commissioned at corporateoffice Nagpur.
In addition to core modules viz. FICO MM SD PP PM HRM of SAP the companyhas also implemented File Lifecycle
Management Document Management System and Employee Self Service Portal.
All the routine business transactions are shifted to SAP from the existinglegacy systems.
All payments except to such government department that accept only physicalinstruments are made online. Cash payments have been replaced by online payment except incase of emergency medical advances.
P. SAFETY AND OCCUPATIONAL HEALTH
Your Company lays special emphasis to ensure safety in the mines/plants and also takescontinuous efforts to reduce 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 workers to inculcate safety consciousness.
Regular meetings of Safety Committees which meticulously review safetymanagement plan of the mine with a view to zero harm to the persons and work at mines.
A close inter-action with employees at all levels to prevent accidents to themaximum extent possible. SOPs prepared for each operation at mines plants etc. andprovided to all employees for their concerned jobs in the mines and plants for their safeworking.
Vocational and refresher training is imparted to all employees regularly apartfrom specialized training.
Training programs on role of safety in sustainable development and mining andenvironmental law.
In the area of occupational health and management system MOIL received OHSAS18001:2007 for Occupational Health and Safety Management Systems ISO 14001:2015 forEnvironmental Management System ISO 9001:2015 for Quality Management System SA 8000 forSocial Accountability International Standard Certificate and Certification in accordancewith GRI Standards for Sustainability Report for the mines in Balaghat Bhandara &Nagpur District.
Conducting risk assessment study for all its underground as well as opencastmines and review of safety management plan by internal safety management committee of themine and outside experts.
Puffing in place a disaster management plan for mines plants schoolshospitals and administrative offices.
Prestigious National Safety Awards (Mines) are conferred to various Mines ofMOIL.
Q. 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 or designated offices. Your company with a goal of achievingsustainable development has taken proactive measures to reduce global warming. TheCompany is conscious of its responsibility towards environmental protection in and aroundits leasehold areas. The cumulative plantation at various mines as on 31.03.2020 is 21.46lakhs saplings. In order to be eco-friendly organization MOIL has set up Wind Energy Farmof total 20 MW capacity at Dewas in Madhya Pradesh. It has also installed 48 KW roof topsolar panel at MOIL Bhawan Nagpur. The company has also installed 10.50 MW capacity solarpower
projects at its mines. It has replaced conventional lights with LED lights in most ofthe working places.
R. VIGILANCE ACTIVITIES / EVENTS FOR THE YEAR 2019-20
The functioning of vigilance department includes preventive as well as proactivevigilance having the main thrust on systems improvement in the organization with theobjective to ensure that the management gets the maximum out of its various efforts andtransaction. Some of the important activities of the vigilance department during the year2019-20 are as under.
0 ISO 9001-2015 Certification
Vigilance department has been awarded by ISO-9001:2015 certificate by the InternationalCertification Services Pvt. Ltd. Mumbai accredited by Joint Accreditation System ofAustralia and New Zealand for Quality Management System to provide vigilance services tothe management of MOIL Ltd.
General and surprise inspections are being carried out regularly to ensure adherence tonorms during execution and to suggest improvements in the system. During the year 2019-2046 periodic and surprise inspections have been carried out.
During the period April 19 to March 20 the vigilance department has handled 68complaints and on the basis of outcome of the investigation management was given 9advisories for corrective action and system improvement.
Scrutiny of procedures and systems
During the period April 19 to March 20 the vigilance department has studied theprocedures related to purchases contract recruitment etc. and on the basis ofexamination management was given 8 advisories for corrective action and systemimprovement.
Mobile App 'Vigilance MOIL'
MOIL has provided a mobile app namely "Vigilance
MOIL" which is available at Google App for the free downloading and makingcomplaint from any place at any time.
Toll free number
A toll free number 18002333606 has been commissioned for receiving of Vigilance relatedinformation.
E-procurement is being done for purchases and work contracts above threshold value. Thethreshold value for purchase and works contract is Rs. 2 lakhs.
Structure Meeting of Vigilance
As per the instructions of CVC and Ministry of Steel structured meetings of vigilancewith CMD were done in which issues related to e-governance leveraging technologiestendering management awards of work recruitment policies and contract management werediscussed.
With reference to commission's circular emphasized on the effective use of website andleveraging technology in discharge of regulatory enforcement activities and dealing withcomplaints. The main thrust areas for leveraging technologies are procurement of goods andcontracts. Also the status of bill payments to contractors/suppliers posted on website.All tender documents Promotion list transfer list CSR works seniority listapplications for recruitment notices and other pro-forma were posted on the website.
Updation of Manuals
Various manuals such as Purchase Manual Work and Contract Manual Personnel Manualetc. have been prepared and put in practice. Purchase Manual Work and Contract ManualPersonnel Manual are posted on the Company's website/intranet. Marketing Manual andAccounts Manual are under preparation. Updation of manuals is carried out on continuousbasis as a part of proactive vigilance and is being pursued with the management.
During the period April 2019 to March 2020 Vigilance Department conducted 11 trainingprograms at Hotel Tuli International Corporate Training Center Munsar Training Centerand various mines covering 1083 Man Hours on vigilance awareness. In one of trainingprogram conducted at Hotel Tuli International on 24.02.2020 Shri R N Nayak Director CVCaddressed the conclave of MOIL officials on Vigilance related issues.
Bi-annual Vigilance Conclave at Hyderabad from 5th to 7th Sept was attended by MOILofficials from various departments including Vigilance.
Sensitive posts have been identified for rotation of officials working on sensitiveposts for more than 3 years and are being rotated by the management.
As an outcome of investigations relating to complaints study inspections etc.advisories and suggestions were given to the management for system improvement in thefollowing areas.
Verification of Caste Certificate for claim of reservation benefit.
In theft prone zone like O/C mine Boundry wall and CCTV at select location andregular rotation of security person.
Biometric system for attendance.
Updation of Manual on regular basis.
Procurement of Secondary items through GeM wherever possible.
E-procurement for tender value Rs. 2.00 Lacs and above.
Regular Updation of personal file and service book of employees.
Protection of information system i.e. ERP/SAP & Data recourses managementcontrols. Third party audit of ERP.
All the information regarding paid bill status to be uploaded on MOIL website.
Timely payment to contractors/vendors.
In-house preparation of reduced ore for EMD plant.
Recruitment through on line process.
Old record to be weeded out as per policy to avoid procedural complication.
Duly approved TOC and TEC by competent authority to be informed of their scopeand schedule well in time.
Annual Property Return
As per CVC guidelines all executives in the organization have to submit their AnnualProperty Returns and 20% of the above have to be scrutinized every year. Accordinglyscrutiny of Annual Property Returns of 70 executives has been carried out during theperiod April 2019 to Nov 2019.
Vigilance Awareness Week
Vigilance Awareness Week was observed from 28th October to 2ndNovember 2019 at all Mines/Offices of MOIL Limited in which following activities were heldin accordance with CVC guidelines with the theme "Integrity -A way of Life ".
As required vide OM No. F. No. 28(1)/2016-Leg.I dated 24.01.2018 details related todisposed off and pending vigilance cases during the year 2019 are as follows:
|Cases during calendar year 2019 || |
Nature of cases
| ||Having vigilance angle ||Administrative |
|Cases disposed off ||49 ||06** ||55 |
|Pending* ||19 ||NIL ||19 |
* At present all pending cases are disposed off
** All administrative cases are forwarded to management to deal at their end
S. 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 / APIOs have also beenappointed in all its Mines. Executive Director (Personnel) has been appointed/designatedas Appellate Authority under the Act. The names of all the PIOs / APIOs and the AppellateAuthority has been also hoisted in Company's website www.moil.nic.in.
The information in respect of company its employees etc. has been prepared under 17heads as prescribed in Section 4(1) (b) of the RTI Act and the same been hoisted inCompany's portal. MOIL has been submiffing necessary information and returns to theprescribed authorities and updating the same regularly.
A lot of awareness has been generated in order to make Company's employees aware aboutthe intention and true spirit of this Act. The various provisions of the Act has beenhighlighted by issue of the circulars and asked them to keep transparency in day-to-daywork and maintain all the records in a proper/systematic manner. Further the Company hasalso hoisting/updating in Company's website as much information suo-moto at regularintervals for the public so that public has minimum resort to use the various provisionsunder the RTI Act to obtain information.
For the awareness of employees at large seminars have been organised to make themunderstand the importance of RTI Act in the present scenario and highlighted theprovisions of the Act.
During the year under report the company has received total 168 applications under RTIAct out of which 121 applications were disposed 31 were rejected and 16 are underprocess. Appellate authority has received 31 RTI appeals out of which 25 appeals weredisposed-off and 06 rejected.
T. TRAINING PROGRAMMES AND SKILL DEVELOPMENT
During 2019-20 total 117 training programmes (internal and external) were conductedfor employees at Munsar training centre Corporate Training Centre Nagpur and at externalcentres of excellence. Total of 2596 Man-days' of training was imparted with the break-upbeing 1571 man-days for executives and 1025 man-days for non-executives. There has been86% growth this year. There has been special emphasis on Women Empowerment and varioussuch programs have been conducted for Leadership Development & Work Life Balance forfemale workforce.
In addition MOIL is imparting training to apprentices under various designated trades.As on 31st March 2020 MOIL has engaged 576 apprentices ~8.25% of total workforceincluding contract labour.
MOIL has imparted training under Recognized Prior Learning program i.e. RPL (one of theprograms under Skill Development) to 408 employees 65 local youth and 152 contractualemployees. Under this scheme a total of 6414 man-days' training has been imparted by MOILduring 2019-20
U. SWACHHATA ABHIYAN
MOIL is taking active part in promoting and participating in Swachh Bharat Abhiyan(Clean India Campaign) on the call given by Hon'ble Prime Minister for the biggestcleanliness mission of our country a dream of Mahatma Gandhi "Swachh Bharat".
As a part of Swachh Bharat Abhiyan MOIL is observing Swachhta Diwas (Clean Day) on 1stWednesday of every month and Swachhata Pakhwada from 1st to 15th ofevery month in one or the other Mines by organising various activities like awarenesscamps on health and hygiene by displaying banners slogans nukkad nattak and posters notonly in mines and housing colonies but also nearby villages in and around Mines. Alsospecial attention among school children through posters slogans Ghandian ideology andphilosophy and the importance of cleanliness.
As a part of promotion of Swachh Bharat Abhiyan Sewage treatment plants bio-septictanks conventional toilets were constructed not only at mines but also in nearby villagesand schools. Total of
Rs. 80.00 Lakh was spent under Swachh Bharat Activities during the year 2019-20.
V. USHERING IN CASHLESS TRANSACTIONS
All employees are being paid wages/salaries and other payments through banks only. 100%wages of contract labour is also being paid through banks only. MOIL is also propagatingthe advantages of cashless transactions in the villages around its mines throughworkshops posters nukkad nattak etc.
W. WELFARE SCHEMES AND FACILITIES
MOIL is carrying out numerous Welfare Scheme as housing drinking water electricityhospital health camps schools home loans and interest subsidies on home loans etc. forthe benefit of the employees as well as people residing in the adjacent areas of mineswhich are situated in the remote areas. Salient features of such schemes are as follows:-
For improvement of living standard and taking into consideration of aspirationof the employees residential quarters have been constructed and allotted to majority ofthe employees.
Adequate supply of drinking water is being provided to the employees residing inthe mine colonies.
Colonies and streets of the camps are well illuminated. The employees have beenprovided with electricity for their residence on concessional rate.
Hospitals have been setup at all the Mine maintained by qualified Doctors andsupported by trained paramedical staff. The arrangement of OPD as well as indoor wardseparately for male and female are provided. Ambulance is also provided to all thehospitals for attending emergencies. The patients are also being referred for medicaltreatments to specialized hospital as and when required.
Scheme of post-retirement Medical Insurance for retired employees is existing inthe company for extending the medical facility to the separated employees.
MOIL Group superannuation cash Accumulation Scheme (defined contribution) Fundis in operation in the company implemented w.e.f. 01.01.2007.
Assistance is extended in running Primary Schools at some of the Mines wherefree education is imparted. School buses are provided at all the Mines so as to takechildren to nearby areas for High School/College.
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.
X. WELFARE MEASURES TAKEN FOR SC/ST
MOIL is a labour intensive organization with 5982 employees on its rolls as on31.03.2020. More than 80% of the total strength belongs to SC/ST/OBC (SC 19.91% ST 25.33%OBC 35.49%). Our Company is also taking keen interest in development of the tribalpopulation living in the vicinity of the mines situated in remote areas by adoptingfollowing measures.
Adopting villages near the mines and provided drinking water facilities roadmaintenance periodical medical checkups and treatment to the people living in thesevillages.
Providing financial aid stationery books etc. to the school adjacent to themining areas.
Organizing training classes for self-employment scheme.
Other welfare measures for the development and upliftment of tribal women suchas conducting sewing classes adult literacy classes AIDS awareness programmespropagating such other programmers by display of posters notices and I banners leprosyawareness programmes etc.
Providing training to the physically challenged persons under Person withDisabilities Act 1995.
Y. EMPOWERMENT OF WOMEN MOIL is having 797 women employees which comprising 13.32% ofits total workforce of 5982 as on 31.03.2020.
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 Complaint Committeecomprising of three officials (including a lady Doctor) and an independent member is inexistence.
Mahila Mandals are working effectively at all the mines of the Company. Variouscultural social educative and community
activities such as adult education blood donation camps eye camps family planningetc. are being organized regularly mostly for the benefit of women residing in theremote mine areas.
Every year 8th March is celebrated as International Women Day and variousprogrammes are organized to mark the day.
Company also grants Maternity Leave and Special Casual Leave for Family Planning.
As part of its CSR activities Self Help Groups have been created at the 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.
Z. DISCLOSURE REQUIREMENTS UNDER THE PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT THEWORKPLACE (PREVENTION PROHIBITION & REDRESSAL) ACT 2013
As per the provisions of the Sexual Harassment of Woman at the Workplace (PreventionProhibition & Redressal) Act 2013 Internal Complaint Committees have been set up inthe Company to deal with the cases received under Act. The Committee members are as
|Place ||Name ||Designation |
|Head Office ||Mrs. Preeti A. Joshi ||Chairperson |
| ||Mr. Deepak Shrivastav ||Member |
| ||Mrs. Heena Noor ||Member |
| ||Mrs. Asha Singh ||Independent Member |
|Group I Mines ||Dr. Balya Naktode ||Chairperson |
| ||Mr. Asim Sheikh ||Member |
| ||Ms. Akansha Singh ||Member |
| ||Shri Randheer Javeri (Jt. Secretary RST Cancer Hospital Nagpur) ||Independent Member |
|Group II Mines ||Dr. Bharti Rangari ||Chairperson |
| ||Mr. Ritesh Mane ||Member |
| ||Mrs. Gurpreet Patel ||Member |
| ||Shri Randheer Javeri (Jt. Secretary RST Cancer Hospital Nagpur) ||Independent Member |
|Group III Mines ||Dr. Leela Kusre ||Chairperson |
| ||Mr. Rajeev Sharma ||Member |
| ||Mr. Sachin Ramteke ||Member |
| ||Mrs. Asha Singh ||Independent Member |
The names of the Committee Members have been uploaded on Company's web sitewww.moil.nic.in. Summary of the Sexual Harassment complaints received during the year2019-20 is as under.
|No. of complaints received ||No. of complaints disposed off ||No. of complaints pending |
|Nil ||Nil ||Nil |
The directives have been widely circulated to bring awareness amongst the womenworkers. AA. PERSONNEL
The manpower as on 31.03.2020 of our Company is given below:
|Category ||Executives ||Non-Executives ||P.R. Workers ||Total |
|Male ||305 ||2017 ||2863 ||5185 |
|Female ||27 ||98 ||672 ||797 |
|Total ||332 ||2115 ||3535 ||5982 |
The category-wise details of employees' strength as on 31.03.2020 are as under:
|Group ||Scheduled caste ||Scheduled tribe ||O.B.C. ||Others ||Total |
|A ||55 ||9 ||78 ||155 ||297 |
|B ||28 ||8 ||62 ||72 ||170 |
|C ||300 ||207 ||409 ||362 ||1278 |
|D ||750 ||1291 ||1574 ||564 ||4179 |
|Safai Karamcharis ||58 ||0 ||0 ||0 ||58 |
|Total ||1191 ||1515 ||2123 ||1153 ||5982 |
|Total % ||19.91% ||25.33% ||35.49% ||19.27% ||100% |
0 Citizen's charter and grievance redressal mechanism :
a] Employees grievances - MOIL has its own grievance redressal procedure for Executivesas well as non-executive employees. The grievances of employees are accordingly dealt withas 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 received are to be disposed off.The system adopted for dealing the grievance of Public was constituted on the basis ofinstructions received from various authorities in the past.
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 at the units for their effective performance.
d] Monthly/quarterly grievances are reviewed and dealt with by designated Publicgrievance officers at mines and corporate office & disposed off with stipulated periodof one month.
e] The data related to grievances at the units are submitted by unit grievance Officersin monthly / quarterly returns to the Head Office. The same are examined and submitted toMinistry.
0 Status of Public Staff Grievances for the period 01.04.2019 to 31.03.2020
|Sr Type of Grievances N. ||Grievances outstanding as on 01.04.2019 ||No. of grievances as received during the period ||No. of cases disposed off ||No. of cases pending on 31.03.2020 |
|1] Public Grievances ||Nil ||2 ||2 ||Nil |
|2] Staff Grievances ||Nil ||3 ||3 ||Nil |
|TOTAL ||Nil ||5 ||5 ||Nil |
BB. 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 past several years. The Company has framed aCSR policy duly approved by the Board of Directors. Several schemes have been taken upand being implemented under CSR which broadly include the following:
In education and skill development initiative MOIL is supporting variousschools near its mines in Balaghat district of Madhya Pradesh and Bhandara district ofMaharashtra.
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 with the overwhelming response for DAV-MOIL school of
Sitasaongi Company is in process to open one more branch of this school at MunsarDist. Nagpur which will cater to the need of quality education of the rural children.
Skill development program: Training on logistic skills mine mate and blastershas been imparted to 217 youths including contractors' workers. As per NSDC's (NationalSkill Development Council) guidelines MOIL has been engaging around 460 trainees eachmonth for Apprentice Training.
MOIL has also initiated "Saksham Balika Programme" in which 15 girlsbelonging to Below Poverty Line families (BPL) have been selected for Nursing course inassociation with Apollo College of Nursing Hyderabad.
Company has tied up with Lata Mangeshkar Hospital etc. for carrying out freecataract surgeries for needy people.
Ten Organic Waste Converter Machines are being installed under CSR in variousGardens of Nagpur Municipal Corporation which are used for converting organic gardenwaste to manure.
Company has associated with a professional agency BAIF and Maharashtra Instituteof Technology Transfer for Rural Areas (MITTRA) an associate organization of BAIF Punehaving vast experience in rural development programmes. MOIL has
entered into MoU with MITTRA who has prepared a detailed project report for theproject. Initially 21 villages have been identified in Nagpur (5 villages) Bhandara (11villages) districts in Maharashtra and Balaghat (5 villages) district in Madhya Pradesh.Major areas of developmental activities are as under:-
| Livelihood || Education |
| Women Empowerm ent || Anganwadi based intervention |
| Water Resources Manageme nt || Community Resources Dev. |
| Agricultural Training || Infrastructure Development |
| Livestock Development Traini ng || Health Cleanliness & Sanitation |
| Quality of Life || |
MOIL has taken up various infrastructural development works like construction ofvillage roads personal toilets community halls etc. in the vicinity of the operationalarea of MOIL's mines.
A report on CSR activities as required under Companies Act 2013 is attached asAnnexure-III.
CC. PROCUREMENT AS PER MICRO SMALL AND MEDIUM ENTERPRISES DEVELOPMENT (MSMED) ACT2006
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 25% of total annual purchase of products produced and services renderedby MSEs. It further requires that 4% out of 25% shall be earmarked for procurement fromMSEs owned by Scheduled Castes or Scheduled Tribe entrepreneurs 3% of which shall beearmarked for procurement from MSEs owned by women. It also requires
the PSUs to report goals set with respect to aforesaid procurement and achievement madethereto in its Annual Report.
Total procurement of goods during 2019-20 has been at Rs. 114.59 crore (previous yearRs. 92.07 crore) out of which total value of goods procured from MSEs (including MSEsowned by scheduled castes or scheduled tribes or women entrepreneurs) is Rs. 40.97 crore(previous year Rs. 42.47 crore) which amount to 35.75% of total annual procurement.
Thus the company is complying with requirement of Micro Small and Medium EnterprisesDevelopment (MSMED) Act 2006. For FY
2020-21 MOIL has a goal to procure products produced/services rendered by MSMEs asmentioned in the first para above.
DD. PROGRESSIVE USE OF HINDI
In MOIL maximum correspondence is done in Hindi.
Unicode system has been implemented in all the processors. The company hasinstalled software related to Hindi in all the computer systems.
More than 55% of the amount consumed on the purchase of books is on Hindi.
In order to encourage the provisions contained in the Official Language Act1963 various types of Hindi Competitions are held on Dr. Baba Saheb Ambedkar JayantiSwachh Bharat Abhiyan Campaign Quami Ekta Diwas and Vigilance Awareness Week.
By conducting workshops and training more and more people are trained to workin Hindi.
Kavya Gosti and Rajbhasha Seminars have been organized to promote Hindi.
The employees working in Hindi language are being given the benefit of thePromotional Scheme at Head office and the Mines Units thereby encouraging them to promoteHindi Language.
The staff members of MOIL are awarded by the Nagar Rajbhasha Karyanven Samiff.
MOIL Bharff and Suchita Magzine of MOIL Limited are awarded second and thirdprize by the Nagar Rajbhasha Karyanven Samiff.
Contributory fund is provided by MOIL for the publication of the magazineWainganga and Rajbhasha Darpan published by the Nagar Rajbhasha Karyanven Samiff Balaghatand Nagpur.
EE. AWARDS AND ACCOLADES
MOIL is one of the public sector enterprises in the country known for its continuousexcellent performance. The Company has been getting naffonal/regional recognition for itsgood work in almost all the spheres of activities. The following are some of recognitionswhich the company has received at the national level.
MOIL CMD Shri M P Chaudhari has been honoured with 'Leader of the Year' Awardin Miniratna category for taking MOIL to new heights of success in 2018-19 in 7thedition of PSU Awards organized.
MOIL has bagged second prize for Best Rescue and Recovery team award in The 50thAll India Mines Rescue Competition.
MOIL's Gumgaon Mine and Ukwa Mine have bagged winner's trophy at National SafetyAwards for "Longest Accident Free Period" Category for the Year 2016. AlsoBeldongri Mine stood runner -up in "Lowest Injury Frequency Rate" category forthe year 2015.
MOIL bagged "Best Growth Performance Award" in Mineral & Metalscategory at Dun & Bradstreet PSU award 2019
MOIL has also bagged 'HR Excellence Award' for the innovative and consistent HRpractices.
MOIL has got the award for best practice in CSR for the Community DevelopmentProgramme in 21 villages of Nagpur Bhandara & Balaghat Districts in the 6thInternational CSR Conference and Best Practices in CSR Awards organized by the Centre forCSR at the Institute of Public Enterprise Hyderabad.
MOIL bagged Commendable Award in Brand Building through inclusive growthinitiatives category in SCOPE Corporate Communication Awards.
Smt. Usha Singh Director (HR) was honoured with Top Rankers Excellence Awardfor HR leadership for her contribution in the field of People Management Human Resourcesin 21st National Management Summit organised by Top Rankers Management Club.
MOIL got Vishwa Hindi Parishad Award for "best implementation of officiallanguage".
During the year under review (a) the Government of India has appointed Dr. Deepak Singhand CA Mangesh P. Kinare as Independent Directors for a period of three years. (b) ShriSatish Gavai (Nominee of Govt. of Maharashtra) being an exofficio Director has ceased tobe Director due to his superannuation (c) Smt. Sangita Gairola and Smt. Sunanda PrasadIndependent Directors have ceased to be Directors of the company on completion of theirtenure (d) Smt. G. Latha Krishna Rao Independent Director has resigned from directorshipdue to her appointment as an administrative member in the Karnataka State AdministrativeTribunal. Shri T.K. Pattnaik Director (Commercial) has ceased to be Director due to hissuperannuation on 31.07.2020. The Government of India has appointed Shri PVV Patnaik asDirector (Commercial) who took charge w.e.f. 01.08.2020.
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 and Disclosure Requirements) Regulations 2015. In the opinion of theBoard the Independent Directors possess the requisite expertise and experience and arethe persons of high integrity and repute. CA Mangesh P. Kinare has completed onlineproficiency self-assessment test conducted by the Indian Institute of Corporate Affairsand other independent director will also complete the test within the time limit providedunder the Companies Act 2013 and Rules made thereunder. They fulfil the conditionsspecified in the Companies Act 2013 and the Rules made thereunder and are independent ofthe management. Independent Directors are generally appointed for a period of three yearsby Government of India.
Pursuant to section 134(3)(q) read with rule (8)(5)(iii) of Companies (Accounts) Rules2014 and section 203(1) the Board has designated Chairman-cum-Managing Director [ChiefExecutive Officer (CEO)] Director (Finance) [Chief Finance Officer (CFO)] and CompanySecretary as Key Managerial Personnel (KMP). There is no change in KMPs during the year.
GG. APPOINTMENT PERFORMANCE EVALUATION AND REMUNERATION POLICY
Being a Central Public Sector Undertaking the appointment tenure performanceevaluation remuneration etc. of Directors are made/fixed by the Government of India.
Ministry of Corporate Affairs has exempted Government companies from applicability ofsome of provisions/sections of the Companies Act 2013 vide notification dated June 52015. As per the notification the Nomination and Remuneration Committee is not requiredto formulate the criteria for appointment of Directors their remuneration policy andcarrying out their performance evaluation. In MOIL being a Government Company theappointment of Directors and their performance evaluation are undertaken by administrativeministry i.e. Ministry of Steel Government of India as such performance evaluation bythe Board of its own performance that of its Committees and individual Directors are notapplicable/required.
The remuneration of officers (executives) is decided as per Government guidelines onpay revision and remunerations of the nonexecutives are decided as per Wage SettlementAgreement entered into periodically with their Union. Appointments/promotions etc. ofthe employees are made as per Recruitment and Promotion Policy approved by the Board.
HH. 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 identified risks are reviewed periodically and elements of risk if any which in theopinion of the Board may threaten the existence of the company. The policy is alsouploaded in the company's website www.moil.nic.in.
II. BUYBACK OF SHARES
Your Company has bought back fully paid 20281009 equity shares of Rs. 10 each at aprice of Rs. 152 per share payable in cash for an aggregate consideration not exceedingRs. 3082713368 (Rupees Three Hundred Eight Crore Twenty Seven Lakh Thirteen ThousandThree Hundred Sixty Eight Only) during 2019-20. The buyback was completed in accordancewith provisions contained in Companies Act 2013 and SEBI (Buyback of Securities)Regulation 1998. Govt. of India (Promoter of the Company) had participated in the buybackof
JJ. DIRECTORS' RESPONSIBILITY STATEMENT
Your Directors state that -
(i) in the preparation of 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 2020 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 Act
2013 for safeguarding the assets of the company and for preventing and detecting fraudsor other irregularities
(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 and
(vi) they have devised proper systems to ensure compliance with the provisions of allapplicable laws including applicable Secretarial Standards and that such systems wereadequate and operating effectively.
In terms of Section 143 (5) of the Companies Act 2013 M/s Demble Ramani & Co.Chartered Accountants Nagpur have been appointed by the Comptroller & Auditor Generalof India (CAG) as Statutory Auditors of the Company for the year 2019-20. There is nofraud reported by auditors of the company under sub-section (12) of section 143 of theAct. The Statutory Auditors' Reports are attached which are self-explanatory. Thecomments of the CAG shall form part of this Board Report.
0 SECRETARIAL AUDITORS
The Board had appointed M/s P.S Tripathi & Associates Indore as SecretarialAuditors for 2019-20. Their Report is enclosed herewith which is self-explanatory. Thereis no qualification in the report except on composition of the Board of the company. Beinga Government Company all Directors are appointed by the Government of India. AccordinglyGovernment of India will make appointment of requisite number of directors on the Board ofMOIL.
The company is required to maintain cost records as specified by the Central Governmentunder sub-section (1) of section 148 of the Companies Act 2013. Accordingly such accountsand records are made and maintained. M/s Phatak Paliwal & Co. Cost AccountantsNagpur have been appointed as the Cost Auditor of the Company to conduct audit of costaccounting records maintained by the Company for the year ended 31st March 2020. The duedate for filing the Cost Audit Reports for the said year is 27th September 2020 if notextended by the Government. The report will be submitted within prescribed time limit. TheCost Audit Report and Compliance Report for the year 2018-19 were filed within the timelimit as prescribed by the Ministry of Corporate Affairs.
LL. 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. 6 and 7 of Note No.14.4 of notes to the accounts. Hence no disclosure is made in form AOC-2 as required inSection 134(3) read with Rule 8 of Companies (Accounts) Rules 2014.The Company hasRelated Party Transaction Policy and the same is uploaded in its website www.moil.nic.in.
The Company has a Whistle Blower Policy and the same is uploaded in its websitewww.moil.nic.in. The company has a competent and independent vigilance department headedby Chief Vigilance Officer (CVO) for monitoring any unethical behaviour actual orsuspected fraud or violation of the company's code of conduct or ethics policy. All thepersonnel are having the access to the vigilance department for their complaintsgrievances etc. Vigil mechanism has been established for Directors and employees toreport genuine concerns. The vigil mechanism provides for adequate safeguards againstvictimization of persons who use such mechanism.
NN. CONSOLIDATED FINANCIAL STATEMENTS
Your company has no subsidiaries. However it has two joint ventures namely RINMOILFerro Alloys Pvt. Ltd and SAIL & MOIL Ferro Alloys Pvt. Ltd.
Pursuant to provisions of Section 129 (3) of the Companies Act 2013 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.
OO. OTHER DISCLOSURES:
(i) Particulars with respect to R&D and technology absorption etc. : Particularsas required under the provisions of Section 134(3) (m) of the Companies Act 2013 readwith the Companies (Accounts) Rules 2014 forming part of this report are enclosed asAnnexure- II to this report.
(ii) Foreign Exchange earnings and outgo : The Company has not made any export ofmanganese ore or its other products during 201920. During the year under review theCompany has incurred expenditure of Rs. 105.73 lakhs in foreign currency as against Rs.67.39 lakhs in the previous year.
(iii) Particulars of employees : There are no employees covered within the purview ofSection 134(3) of the Companies Act 2013 read with Companies (Appointment andRemuneration of Managerial 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 investmentsas provided under 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 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) for F.Y. ended on 31st March 2020 is annexed asAnnexure- IV.
(ix) Material Changes and Commitments if any affecting the financial position of theCompany: There were no material changes and commitments affecting the financial positionof the Company which have occurred between the end of the financial year and the date ofthis Report except enumerated elsewhere in the report.
(x) Significant and material Orders passed by the Regulators or Courts or Tribunal:There is no significant and material order passed by the Regulators/Courts/Tribunalimpacting the going concern status and company's operations in future.
PP. DETAILS OF SHARES IN SUSPENSE ACCOUNT
The details of shares in suspense account are as follows.
|Description ||No. of Shareh olders ||No. of Shares |
|Aggregate number of shareholders and the outstanding shares in the suspense account lying as on 01.04.2019 ||0 ||0 |
|Shareholders who approached the company for transfer of shares from suspense account during the year ||0 ||0 |
|Shareholders to whom shares were transferred from suspense account during the year ||0 ||0 |
|Shares transferred to unclaimed suspense account ||0 ||0 |
|Aggregate number of shareholders and the outstanding shares in the suspense account lying as on 31.03.2020 ||0 ||0 |
The details of unpaid/unclaimed dividend amount and shares transferred to InvestorEducation and Protection Fund (IEPF) account during 2019-20 are as under.
|Particulars ||Amount Transferred (in Rs.) ||Shares Transferred |
|Final Dividend 2011-12 ||977559 ||2043 |
|Interim Dividend 201 2-13 ||750288 ||3074 |
Details of the resultant benefits (i.e. Dividend) arising out of shares alreadytransferred to the IEPF account are as under.
|Particular ||Amount (in Rs.) |
|Final Dividend 2018-19 ||81465 |
|Interim Dividend 2019-20 ||87594 |
QQ. MEMORANDUM OF UNDERSTANDING (MoU) WITH MINISTRY OF STEEL
MOIL has been signing MoU with Ministry of Steel since more than 20 years. The MoU setsforth various targets and parameters of performance which are assessed against actualachievements after close of the year. From the year 1995-96 the company has beencontinuously getting excellent ratings (except for the year 2015-16 and 2016-17 due toworst/poor market conditions). The rating for 2019-20 is not yet finalised and is impacteddue to factors stated elsewhere in the report. Continuing the practice MOIL is in theprocess of signing MoU with the Ministry of Steel for the year 2020-21 also.
RR. 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 qualification in thecertificate except on composition of the Board of the company during the year. Being aGovernment Company all the Directors are appointed by the Government of India. The Boardbelieves that the Government of India will make appointment of requisite number ofDirectors on the Board of MOIL including woman Independent Directors.
SS. MANAGEMENT DISCUSSION AND ANALYSIS AND BUSINESS RESPONSIBILITY REPORT
A report on Management Discussion and Analysis is placed at Annexure-VI. In compliancewith Regulation 34 of SEBI (Listing obligations and Disclosure Requirements Regulations)2015 Business Responsibility Report is also annexed at Annexure-VII.
TT. INDUSTRIAL RELATIONS
Industrial relations in MOIL continued to be cordial and peaceful during the year2019-20. There has not been any stoppage of work or any such labour agitation in theCompany. The tempo for better production and productivity has been maintained. VariousCommittees have been constituted at the mine level and corporate level for discussingvarious issues for smooth functioning of the organization and expeditious decisions forthe settlement of grievances have been functioning satisfactorily.
Your Directors acknowledge the support cooperation 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 shareholdersbankers valued customers suppliers and all other stakeholders.
The employees of the Company have continued to display 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 theircommitment dedication and enthusiasm to enable the Company to scale even greater heights.
|Date : 20.08.2020 ||On behalf of the Board of Directors |
|Place : Nagpur || |
| ||M. P. Chaudhari |
| ||Chairman-cum-Managing Director |