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NMDC Ltd.

BSE: 526371 Sector: Metals & Mining
NSE: NMDC ISIN Code: INE584A01023
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OPEN 147.00
PREVIOUS CLOSE 144.65
VOLUME 851423
52-Week high 213.15
52-Week low 75.60
P/E 4.70
Mkt Cap.(Rs cr) 41,878
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 147.00
CLOSE 144.65
VOLUME 851423
52-Week high 213.15
52-Week low 75.60
P/E 4.70
Mkt Cap.(Rs cr) 41,878
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

NMDC Ltd. (NMDC) - Auditors Report

Company auditors report

To

The Members NMDC Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of NMDC Limited("the Company") which comprise the Balance Sheet as at March 31 2020 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes tothe Standalone financial statement including a summary of significant accounting policiesand other explanatory information (hereinafter referred to as the "standalonefinancial statements").

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015 asamended ("Ind AS") and other accounting principles generally accepted in Indiaof the state of affairs of the Company as at March 31 2020 and its profit othercomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone financialstatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India("ICAI") together with the ethical requirements that are relevant to our auditof the financial statements under the provisions of the Act and the Rules made thereunder and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thestandalone financial statements

Key Audit Matters

Key audit matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. No Key Audit Matter: NISP
1 CWIP
Capital Work-in progress (CWIP) as on 31.03.2020 in the books of the unit is Rs.14970.24 Crores out of which Incidental expenditure during Construction (IEDC) amounts to Rs.1897.03 Crores. Since the amount involved is substantial and the original schedule date of completion has elapsed this is considered to be a key audit matter.
Auditor's Response
We obtained a view of the management and examined the process of capitalisation. We have relied on the management expertise regarding commissioning of the Project.
Key Audit Matter : Donimalai Unit
2 Trade receivables:
As at 31st March 2020 current asset in respect of trade receivable includes receivables from monitoring committee amounting to Rs 2144.64 crores which are pending adjudication. Since it is an area of higher assessed risk of material misstatement this is considered to be a key audit matter. (Ref. Note No.2.34.6 of financial statements)
Auditor's Response
We have involved our internal experts to review the nature of the amounts recoverable the sustainability and the likelihood of recoverability upon final resolution.
3 Mine Closure Obligation (MCO):
The company creates Mine closure obligation liability based on the present cost of closure of mining project of the latest mine. The rate of closure arrived at based on such cost is uniformly applied to other mines for arriving at the total MCO liability.
The matter was considered to be a key audit matter because there is estimate involved as per management's policy.
Auditor's Response
We have involved our internal expertise to review the estimates of the rate of MCO considered by the company and whether any change was required to management's position on these matters.
Sr. No Key Audit Matter : Head Office
4 Investment in Subsidiary Joint Ventures and Associates :
Investment in Subsidiary Joint Ventures and Associates are valued at cost and adjusted for impairment losses after carrying out impairment testing. Since judgment of the management is required to determine if there is any indication of possible impairment we have considered it to be a key audit matter. (Ref. Note No.2.4.1)
Auditor's Response
Our audit procedure comprise of identification and understanding of the reasonableness of the principle assumptions used by the management to judge the need for impairment testing.

Emphasis of Matter

We draw your attention to the followings forming part of the financial statementswithout modifying our opinion in respect of:

1. Note No: 2.34.7 regarding Demand notice for Rs.1623.44 crores having been served onBaildila project by the District Collector South Bastar Dantewada pursuant to judgmentof Honorable Supreme court of India with reference to writ petition (Civil No.114 of 2014dated 2nd August 2017) and the company having paid an adhoc amount of Rs.600Crores under protest and filed writ petition in the Hon'ble High court of BilaspurChattisgarh. The case is in the hearing stage as explained in the said note.

2. Note No.2.34.11 on the Management's assessment of the impact of covid-19 pandemicand the resultant lockdown in Financial Year (FY) 2019-2020 which resulted in a loss insale of revenue and Profit Before Tax (PBT) given in the said note. Further managementassessed that no operational disruptions are anticipated in FY 2020-21.Except for scaledown in operations no material risks are anticipated necessitating their provisioning inthe accounts for FY 2019-2020.

3. Note No: 2.34.12 regarding exceptional items as directed by the Government ofKarnataka in respect of Donimalai project supplementary lease deed was executed forKumaraswamy mines for the period from 18.10.1972 to 17.10.2022 and renewal of Miningleases in respect of Bailadila sector for the period from 2015 to 2035. It is alsomentioned in the said Note regarding capitalization of certain assets which has an impactof Depreciation relating to previous years.

4. Note No: 2.34.14 on test of impairment of investment in Legacy Iron Ore Ltd (LIOL)though there is a difference between the net assets of the company and the marketcapitalization as at the year end NMDC felt that test of market capitalization forimpairment of Exploration and Evaluation (E&E) assets may not be appropriate as theinvestment was made to maximize the cash flow by exploring the mines in line with the coreactivity and to reach main objective of NMDC. As such no impairment of investment in LIOLis felt necessary as explained in the said note.

5. Note No: 2.34.15 regarding test of impairment of investment and Loan to NeelachalIspat Nigam Ltd (NINL) Cabinet Committee on Economic Affairs (CCEA) had accorded inprinciple approval for strategic disinvestment of 100% shareholding of NMDC and otherPublic Sector Undertakings (PSUs) along with transfer of Management control to a StrategicBuyer and as per the loan agreement dated 30th December 2019 the loan amountoutstanding along with interest shall be paid back to NMDC as first charge from thedisinvestment proceeds as per the applicable laws before payment of other liabilities ofNINL. As such no impairment of investment and Loan to NINL is felt necessary as explainedin the said note.

Our opinion is not modified in respect of these matters.

Information Other than the Standalone Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Business Responsibility ReportCorporate Governance Report and Shareholder Information but does not include thestandalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the Indian Accounting Standards (Ind-AS) prescribed under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amendedand other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)0) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern.

If we conclude that a material uncertainty exists we are required to draw attention inour auditor's report to the related disclosures in the standalone financial statements orif such disclosures are inadequate to modify our opinion. Our conclusions are based onthe audit evidence obtained up to the date of our auditor's report. However future eventsor conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards. From the matters communicated withthose charged with governance we determine those matters that were of most significancein the audit of the standalone financial statements of the current period and aretherefore the key audit matters. We describe these matters in our auditor's report unlesslaw or regulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Other Matter

We did not audit the financial statements and other financial information of 6 branchesincluded in the accompanying standalone financial statements of the Company whosefinancial statements/financial information reflect total assets of Rs.24570.51 Crores asat March 31 2020 and total revenues of Rs. 11693.82 Crores for the year ended on thatdate. The financial statements and other financial information of these branches have beenaudited by the branch auditors whose reports have been furnished to us and our opinion inso far as it relates to the amounts and disclosures included in respect of these branchesis based solely on the report of such branch auditors. Our opinion is not qualified inrespect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act based on our audit we report that;

a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit;

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.

c) The reports on the accounts of the branch offices of the Company audited underSection 143(8) of the Act by branch auditors have been sent to us and have been properlydealt with by us in preparing this report.

d) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) Statement of changes in equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account and with the returns received from thebranches not visited by us.

e) In our opinion the aforesaid standalone financial statements comply with the IndianAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

f) The provisions of Section 164(2) of the Act in respect of disqualification ofdirectors are not applicable to the company being a Government company in terms ofnotification no:- G.S.R.463(E) dated 5th June 2015 issued by Ministry of CorporateAffairs Government of India.

g) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure -A".

h) With respect to the other matters to be included in the auditor's report inaccordance with the requirements of Section 197(16) of the Act as amended:

We are informed that the provisions of section 197 read with Schedule V of the Actrelating to managerial remuneration are not applicable to the company being a GovernmentCompany in terms of Ministry of Corporate Affairs notification no-G.S.R. (E) 5th June2015.

i) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements - Refer Note 2.31 to the financialstatements.

ii. The company has made provisions as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the company.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure B" a statement on the matters specified in paragraphs 3 and 4 of theOrder to the extent applicable.

3. We are enclosing our report in terms of section 143(5) of the Act on the basis ofsuch checks of books and records of the company as we consider appropriate and accordingto the information and explanations given to us in "Annexure-C" on thedirections issued by the Comptroller & Auditor General of India.

For Sagar & Associates
Chartered Accountants
(Firm's Registration No: 003510S)
B Aruna
Place: Hyderabad Partner
Date: June 16 2020 (Membership No.216454)
UDIN: 20216454AAAABW7621

"ANNEXURE - A" TO THE AUDITORS' REPORT

(Referred to in paragraph 1(g) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of NMDC Limited of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of NMDCLimited ("the Company") as of March 31st' 2020 in conjunction withour audit of the standalone financial statements of the company for the year ended on thatdate.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under section 143 (10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Sagar & Associates
Chartered Accountants
(Firm's Registration No: 003510S)
B Aruna
Place: Hyderabad Partner
Date: June 16 2020 (Membership No.216454)
UDIN: 20216454AAAABW7621

"ANNEXURE - B" TO THE AUDITORS' REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of NMDC Limited of even date)

(1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all the fixed assets are physically verified by the management over a period ofthree years. In our opinion the periodicity of the physical verification is reasonablehaving regard to the size of the company and the nature of fixed assets. In accordancewith this program certain fixed assets were verified during the year and no materialdiscrepancies have been noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the company as to whether the title deeds of immovableproperties are held in the name of the company our observations are listed below:

Sr.No. Description of Leasehold Land Property Area in Acres/ Hectares Gross Block (Amount in Rs.) as on 31.03.2020 Issues* (if any)
KIRANDU JL
1402 LAND LEASE HOLD (General)
1. Land Lease Hold Dep-14 Mines 322.368 Hectares 4131186 Unit Holds Possession Letter issued by Joint Secretary Mining resources Department Raipur.
2. Land Lease Hold Dep-14 Non Mining 506.742 Hectares 6649906 Unit Holds Possession Letter issued by Joint Secretary Mining resources Department Raipur.
3. Land Lease Hold of Dep No. 14 For Float Ore 317.79 Hectares 1 Unit Holds Possession Letter issued by Chief Secretary Mining resources Dept.M.P.
4. Land Lease Hold Dep-11C Mines & Fine Ore Dump 122.619 Hectares 2184430 No documents were made available for our verification therefore we are unable to comment.
5. Cap. of 11B Expenditure Dep- 11B Mines - 11913706 No documents were made available for our verification therefore we are unable to comment.
6. Stamp Duty & Registration Charges For 14ML - 366994 Unit Holds Challan No. 5805085 on dated 28.08.2007 for the amt. paid.
7. Stamp Duty & Registration Charges For 14NML 676128 Unit Holds Challan No. 5804857 on dated 28.08.2007 for the amt. paid.
8. Add. Stamp Duty & Registration Charges For 11ML 41944 Unit Holds Challan No. 5805150 on dated 28.08.2007 for the amt. paid.
9. Mining Lease of Dep-14 17.81 Hectares 5731352 No documents were made available for our verification therefore we are unable to comment.
10. Add. NPV Charges 14ML - 242962127 Unit Holds Deposit of amt. as recorded in minutes of meeting dated. 18.08.2015.
11. Additional NPV Charges for 11ML 821553636 Unit Holds Deposit of amt. as mentioned in letter of GM for 11ML forest clearance.
12. Addl. Stamp Duty for 14ML 6160499 Unit Holds e-Stamp dated 18.09.2015.
13. Addl. Registration Fee14ML 4620374 Unit Holds Challan No. 329067 dated 18.09.2015.
14. Add Reg fees 14NML 6068860 Unit Holds Challan No.12329241 dated 01.01.2016.
15. Addl. Stamp Duty for 14NML 8091813 Unit Holds e-Stamp dated 01.01.2016.
16. Addl. Stamp Duty for 14NMZ 475830738 Unit Holds Deposit of Amt. on dated 21.08.2015 as mentioned in letter of GM for 14NMZ forest clearance.
17. Stamp duty of lease hold land 11ML 874.924 hectares 345012057 Unit holds the payment receipt.
18. Reg fees of leasehold land 11ML 874.924 hectares 258759044 Unit holds the payment receipt.
19. Application fees of leasehold land 11ML 874.924 hectares 3207075 Unit holds the payment receipt.
20. Reg. Fees of LeaseHold Land -14ML(12.09.2015 TO 11.09.2035) 322.368 hectares 394042045 The Unit holds Possession Letter Issued by Mining Officer District South Bastar Dantewada.
21. Stamp Duty Fee Of Lease Hold Land-14ML 322.368 hectares 525389460 The Unit holds Possession Letter Issued by Mining Officer District South Bastar Dantewada.
22. Reg. Fee Of Lease Hold Land -14nmz(07.12.2015 To 06.12.2035) 506.742 hectares 396557615 The Unit holds Possession Letter Issued by Mining Officer District South Bastar Dantewada.
23. Stamp Duty Fee Of Lease Hold Land -14nmz (07.12.2015 To 06.12.2035) 506.742 hectares 528743553 The Unit holds Possession Letter Issued by Mining Officer District South Bastar Dantewada.
1502 LAND LEASE HOLD (Social Amenities!
1 Land Lease Hold (for Town Ship) Type Ii Qtr. In Kirandul 20.81 Hectares Nil No documents were made available for our verification therefore we are unable to comment.
1401 Land Free Hold (General)
1. Land-Area in Bacheli Pargana 1.00 Acre 338 No documents were made available for our verification; therefore we are unable to comment.
2. Land-Area in Bacheli Pargana (Kameli Kala) 2.10 Acres 557 No documents were made available for our verification therefore we are unable to comment.
3. Land- Area in Bacheli Pargana (Poro Kameli) 3.27 Acres 1341 No documents were made available for our verification therefore we are unable to comment.
4. Land-Area in Bacheli Pargana 2.58 Acres 958 No documents were made available for our verification therefore we are unable to comment.
5. Land-Area in Bacheli Pargana 0.09 Acre 31 No documents were made available for our verification therefore we are unable to comment.
6. Land-Area in Bacheli Pargana 0.80 Acre 212 No documents were made available for our verification therefore we are unable to comment.
7. Land- Area in Bacheli Pargana 0.22 Acre 58 No documents were made available for our verification therefore we are unable to comment.
8. Land- Area in Bacheli Pargana 5.44 Acres 2216 No documents were made available for our verification therefore we are unable to comment.
9. Land- Area in Kodenar Pargana 1.03 Acres 419 No documents were made available for our verification therefore we are unable to comment.
10. Land-Area in Kodenar Pargana 0.65 Acre 271 No documents were made available for our verification therefore we are unable to comment.
11. Land-Area in Kirandul Pargana 0.93 Acre 514 No documents were made available for our verification therefore we are unable to comment.
12. Land-Area in Kirandul Pargana 11.50 Acres 8525 No documents were made available for our verification therefore we are unable to comment.
13. Land-Area in Kirandul Pargana 2.20 Acres 1866 No documents were made available for our verification therefore we are unable to comment.
14. Land- Area in Kirandul Pargana 4.59 Acres 3090 -do-
15. Land- Area in BadaBacheli 1.46 Acres 384 -do-
16. Land- Area in Bada Bacheli Pargana 1.35 Acres 355 -do-
17. Land- Area in Bada Bacheli Pargana 0.32 Acre 158 -do-
18. Land- Area in Bada Bacheli Pargana 0.70 Acre 433 -do-
19. Land- Area in Bada Bacheli Pargana 1.40 Acres 663 No documents were made available for our verification therefore we are unable to comment.
20. Land- Area in Bada Bacheli Pargana 1.81 Acres 477 No documents were made available for our verification therefore we are unable to comment.
21. Land- Area in Bada Bacheli Pargana 1.07 Acres 382 No documents were made available for our verification therefore we are unable to comment.
22. Land- Area in Bacheli Pargana 4.27 Acres 1140 No documents were made available for our verification therefore we are unable to comment.
23. Land- Area in Padapur Pargana 1.00 Acre 263 No documents were made available for our verification therefore we are unable to comment.
24. Land- Area in Padapur Pargana 1.00 Acres 1580 No documents were made available for our verification therefore we are unable to comment.
25. Land- Area in Padapur Pargana 1.06 Acres 279 No documents were made available for our verification therefore we are unable to comment.
26. Land- Area in Padapur Pargana 1.22 Acres 321 No documents were made available for our verification therefore we are unable to comment.
27. Land- Area in Kodenar Pargana 3.48 Acres 916 No documents were made available for our verification therefore we are unable to comment.
28. Land- Area in Jagdalpur 5.823 Hectares 105778 No documents were made available for our verification therefore we are unable to comment.
29. Land for Accumulation of Slimes 39.58 Acres 709502 No documents were made available for our verification therefore we are unable to comment.
30. Land at Madadi VIL 15.79 Acres 446722 No documents were made available for our verification therefore we are unable to comment.
1501 Land Free Hold (Social Amenities!
1 Land Freehold in Kirandul Pargana 47.18 Acres 22569 No documents were made available for our verification therefore we are unable to comment.
2 Land Freehold (Construction of 100 Permanent Type-C Qtrs) 75.90 Acres 46200 No documents were made available for our verification therefore we are unable to comment.
3 Land Free Hold for Construction of K.V. School Near Praleosh Vidyalaya 21.62 Acres 2239610 No documents were made available for our verification therefore we are unable to comment.
4 BUILDINGS (Social Amenities) Gross Block-82 04 76 261 Net Block- 758742071 Documents for construction have been verified. However these buildings have been over the above land for which no title deeds have been made available for verification.
BACHELI
1402 : LAND LEASE HOLD (General)
1 Land Magazine Building & Service Centre. Location : Hiltop 755.27 Acres Nil The Unit holds Possession Letter Dated 24.01.1977 M.P. Govt. gazette Notification dated 07.06.1977
2 Land acquisition for Screening Plant 470 Acres Nil No documents were made available for verification; therefore we are unable to comment.
3 Land acquisition for Intake arrangement Location-Bacheli 28.13 Acres Nil Original Sale Deed is available for Private Land of 14.13Acres (i.e. 5.718Hec.). Mutation of Land in favour of NMDC is under process with Tehsildar Bacheli. However paper for 14Acres Govt. Land not available.
4 Mining Lease of DEP.-05 1334.463 Acres 539996215 The Unit holds Possession Letter Issued by Mining Officer District South Bastar Dantewada.
5 Mining Lease of DEP.-10 764.379 Acres 298900815 The Unit holds Possession Letter Issued by Mining Officer District South Bastar Dantewada.
6 Mining Lease of DEP.-10(FO) 352.858 Acres 139164937 The Unit holds Possession Letter Issued by Mining Officer District South Bastar Dantewada.
7 Mining Lease of DEP.-11A 764.379 Acres 3845514 The Unit holds Possession Letter Issued by Mining Officer District South Bastar Dantewada.
8 Land for Sankini Nalla W/ supply scheme for 10 & 11 a proj. 2 Hectares 103528 No documents were made available for verification; therefore we are unable to comment.
9 Land for Sankini Nalla W/supply scheme for 10 & 11 a proj. 3 Hectares Nil No documents were made available for verification; therefore we are unable to comment.
10 Land acquired for Central workshop Location : Bacheli 23.39 Acres 62594 The Unit Holds Possession Letter of Lease Deed Dated 19.07.1991 From Tahsildar Bastar M.P.
11 Stamp Duty and Registration charges for Mining Lease renewal of Deposit 5 upto 10.09.2035 1530777029 The Unit holds Possession Letter Issued by Mining Officer District South Bastar Dantewada.
12 Mining Lease Renewal of deposit 11A (stamp duty registration fees application fees) 38479242 The Unit holds Possession Letter Issued by Mining Officer District South Bastar Dantewada.
13 Stamp Duty and Registration charges for mining lease renewal of Deposit 10 upto 10.09.2035 694248381 The Unit holds Possession Letter Issued by Mining Officer District South Bastar Dantewada.
LAND LEASEHOLD TOTAL 3245578255
1401 - LAND FREEHOLD (Generali
1 Land for Bhansi Camp Location : Bacheli Under recon ciliation 7840 Khasra Documents for Holding available
2 Land acquired for Const. Of Intake water supply to Screening-Plant Location : Bacheli 14 Acres 18987 No documents were made available for our verification; therefore we are unable to comment.
3 Value of Private Land from Adivasi for Pipe Line from Nerli Dam to Screening-Plant. Location : Bacheli 1.54 Acres 7375 No documents were made available for our verification; therefore we are unable to comment.
4 Value of Pvt. Land for Oxidation-Pond Location : Bacheli 17.77Acres 13294 Sale Deed for the Land 17.77 Acres (i.e. 7.191Hect) available; Mutation is under process with Tehsildar.
5 4 Acres land for Rly Siding at Bacheli Location : Bacheli 4.00 Acres 5502 Original Sale Deed is available Mutation application for Land is under process with Tehsildar.
6 Land acquired from Adivasi for Tailing Dam near Parapur 81.35 Acres 211395 Attested copy of Sale Deed obtained from Registrar Dantewada is available; Mutation application is under process with Tehsildar.
7 Acquisition of Land for Tailing Dam and diff of Amt. paid vide JV NO/1246 1/88. Under Reconciliation 30635 No documents were made available for our verification; therefore we are unable to comment.
8 Forest Land for Uniflowrly. Dispatch system 4.94Acres 1240000 Ministry of Env. And Forest (MOEF) issued Letter No. 8B/007/2002/FCW/1313 dated 07.06.2002 is available.
TOTAL 1535028
1 BUILDINGS (General) Gross Block - 391398545 Net Block - 325358760 No documents were made available for our verification; therefore we are unable to comment.
1502 - Land lease Hold (Social Amenities)
1 Land for Bhansi Base Camp Location : Bacheli 30.00 Acres Nil The Unit holds Possession Letter Dated 03.06.1966 M.P. Govt. Gazette Notification Dated 03.06.1966
2 Land for Bacheli town - Ship (Lease paid to DFO & cost of stamp for regn. 200.00 Acres Ni The Unit holds Possession Letter Dated 20.06.1976 M.P. Govt. Gazette Notification Dated 09.02.1976
3 Land for Bailadila Estate at Jagdalpur Location : Jagdalpur 10.00 Acres Ni No documents were made available for our verification; therefore we are unable to comment.
4 Land for Operation Township at Hill Top Location : Hilltop 307.06 Acres Ni Copy of Gazette Notification issued by issued by Madhya Pradesh Govt. Dated 07.06.1977 de- notifying the area is available.
TOTAL 0.00
1 BUILDINGS (Social Amenities ) Gross Block - 1041234441 Net Block - 965022596 No documents were made available for our verification; therefore we are unable to comment.
PANNA
LAND:FREEHOLD GENERAL
1 Land NA 268392 No measurement details and documents available
2 Plot No. 1236/3 Land at Panna 2.063 Acres 5176 No comments could be offered for the reason no document were made available for our verification.
3 Plot No. 76/2 Land at Panna 1.821 Acres 3304 No comments could be offered for the reason no document were made available for our verification.
4 Plot No. 1237/2 Land at Panna 2.063 Acres 7370 No comments could be offered for the reason no document were made available for our verification.
5 Plot No. 1236/2 Land at Panna 15.873Acres 30085 No comments could be offered for the reason no document were made available for our verification.
NISP
LAND: FREEHOLD GENERAL
1 Land at villages Nagarnar kasturi Amaguda & Maganpur 289 Acres 72758374 Freehold land in favour of NMDC Ltd.Nagarnar. Possession Letter issued by (Kabja Praman Patra) Tahasildar Jagdalpur
2 Land at villages Bhamani 1.82 Acres 136380 Freehold land in favour of NMDC Ltd.Nagarnar. Possession Letter issued by (Kabja Praman Patra) Tahasildar Jagdalpur
3 Land at villages Nagarnar Bijaput Upanpal Kasturi Amaguda Madpal Chokawada & Maganpur 318.74 Acres 880816636 Freehold land in favour of NMDC Ltd.Nagarnar. Possession Letter issued by (Kabja Praman Patra) Tahasildar Jagdalpur
4 Karanpur 0.42 Acres 1326750 Freehold land in favour of NMDC Ltd.Nagarnar. Possession Letter issued by (Kabja Praman Patra) Tahasildar Jagdalpur
5 Land at villages Nagarnar Bijaput Upanpal Kasturi Amaguda Madpal Chokawada & Maganpur 145.95 Acres Not finalised 104.41 Freehold land for which allotment letter issued by GM DIC in 2001.41.54 freehold land allotted by district collector to GMDIC in 2010 for construction of steel plant
LAND: LEASEHOLD GENERAL
1 Land at Chokawada village 7.2 Acres 2631600 Leasehold land in favour of NMDC Ltd. Nagarnar for 30 years w.e.f 2010. Possession letter issued by (Kabja Praman Patra) Tahasildar Jagdalpur
2 Land at village Dhanpunji 20.28 Acres 34151520 Leasehold land in favour of NMDC Ltd. Nagarnar for 30 years w.e.f 2010. Possession letter issued by (Kabja Praman Patra) Tahasildar Jagdalpur
3 Dhanpunji 6.26 Acres 8045352 Leasehold land for 30 years w.e.f 2010 for which allotment letter issued by Upper Secretary Raipur
4 Nagarnar 9.6 Acres 700000 Freehold land for which allotment letter was issued from GM DIC in 2001. Later the matter has been challenged in Hon. HC of CG Bilaspur and decision is pending.
5 Jhanj Raipur 0.60 Acres 6902294 Leasehold land for which possession letter has been issued by Raipur Development Authority
6 Kopaguda Garavandkala 22.49 Acres Not finalised Leasehold land for 30 years w.e.f 2010 for which allotment letter issued by Upper Secretary Raipur
HEAD OFFICE
1 R&D Centre (Leased Premises) 0.12 Acres Nil Lease period completed but lease agreement to be extended.
PALONCHA
1 SIU NMDC Ltd Paloncha 11.35 Acres Nil Not yet registered
2 SIU NMDC Ltd Paloncha 2.08 Acres Nil During the survey 2.08 Acres found shortage out of 10.43 Acres is pending confirmation from APIIC.

(2) (a) The management has conducted the physical verification of inventory atreasonable Intervals.

(b) The discrepancies noticed on physical verification of the inventory as compared tobooks records which has been properly dealt with in the books of account were notmaterial.

(3) According to the information and explanations given to us and on the basis of ourexamination of the records of the company the company has not granted any loans securedor unsecured to companies firms Limited Liability Partnerships or other parties coveredin the register maintained under section 189 of the Companies Act 2013. Accordingly theprovisions of clause (3) (iii) (a) to (c) of the order are not applicable to the companyand hence not commented upon.

(4) In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of section 185 and 186 of the Companies Act 2013in respect of grant of loans making investments and providing guarantees and securitiesas applicable.

(5) The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

(6) The Central Government has prescribed the maintenance of cost records under section148(1) of the Act. Company is generally maintaining proper cost records as specified bythe Central Government under subsection (1) of section 148 of the Companies Act 2013.

(7) According to the information and explanations given to us in respect of statutorydues:

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees' State Insurance Income Tax Sales Tax Service TaxGoods and Service Tax Value Added Tax Customs Duty Excise Duty Cess and other materialstatutory dues applicable to it with the appropriate authorities except the following:

i. Donimalai Unit does not collect/remit GST on

a. Liquidated damage/penalty collected from the suppliers and

b. Interest received from Monitoring Committee.

ii. Also the branch could not deduct/remit TDS on commission charges levied byMonitoring Committee

(b) There were no undisputed amounts payable in respect of Provident Fund Employees'State Insurance Income Tax Sales Tax Service Tax Goods and Service Tax Value AddedTax Customs Duty Excise Duty Cess and other material statutory dues in arrears as atMarch 31 2020 for a period of more than six months from the date they became payable.

(c) According to the information and explanation given to us there are no dues ofincome tax sales tax duty of customs duty of excise value added tax goods andservices tax outstanding on account of any dispute except the following:

Unit Name of Statue Nature of Dues Period Forum where Dispute is Pending Amount (In Rs. Crorel
Kirandul The Finance Act 1994 Service Tax July 2012 - June 2014 Service tax Appellate Tribunal 17.44
The Finance Act 1994 Service Tax 2017 - 2018 CESTAT New delhi 0.65
MP Commercial Tax Act Commercial Act 2002-03 2005-06 2008-09 Dy. Commissioner of Commercial Tax (Appeal) 1.6
Nagar Palika Kirandul Export tax 1995-96 1996-97 2008-09 to 2019-20 Hon'ble High Court of Bilaspur 5.72
Nagar Palika Kirandul Interest on Export tax 1995-96 1996-97 2008-09 to 2019-20 Hon'ble High Court of Bilaspur 12.16
Nagar Palika Kirandul Conservancy Tax 1997-98 to 2005-06 2014-15 to 2017-18 Hon'ble High Court Bilaspur 0.79
Nagar Palika Kirandul Property Tax 2013-14 to 2016-17 Hon'ble High Court Bilaspur 74.4
Goods & Services Tax GST 2017-18 to 2019-20 Hon'ble High Court Bilaspur 8.85
DFO Dantewada and State of Chhattisgarh Forest Permit Fee 14.06.2002 to 31.10.2012 Bilaspur bench of Hon'ble High Court Chhattisgarh 63.29
MMDR Act Common Cause Notice 2018-19 Hon'ble High Court Bilaspur 317.47
Donimalai Karnataka Forest Act 1963 Forest Development Tax 2008-09 to 2010-11 Hon'ble Supreme Court of India 243.69
Karnataka Sales Act 1957 Tax on ERP Licenses 1991-92 1992-93 Dy. Commissioner of commercial Tax Bellary 0.51
Central sales tax 1956 CST on FDT FY 2011-12 JCCT Davangere Karnataka 0.25
Karnataka value added Tax Act 2003 VAT-on FDT 2011-12 JCCT Davangere Karnataka 0.47
Central Excise Customs and Service Tax Service tax on services provided to CISF 2012-13 to 201718 Commissioner of Central Excise (Appeals) 0.27
Central Excise Customs and Service Tax Service Tax on LD and penalty 2013 - 14 to 201718 Commissioner of Central Excise (Appeals) 0.96
Indirect taxes and customs Trans-1 Credit FY 2017-18 Super indent of central tax (CGST) Hospet 0.49
Panna Commercial Tax Sales & Entry tax 2016 - 2017 DCIT Sagar 0.05
Commercial Tax Sales & Entry tax 2013-14 DCIT Sagar 0.23
Bacheli Nagar Palika Kirandul Export tax March-2010 to March-2020 Hon'ble High Court of Chhattisgarh 1.2
Nagar Palika Kirandul Interest on export tax March-2010 to March-2020 Hon'ble High Court of Chhattisgarh 1.41
Nagar Palika Kirandul Property tax 2015-16 Hon'ble High Court of Chhattisgarh 24.85
Finance Act' 1994 Service tax 2017-18 Joint Commissioner Raipur Commissionerate 1.43
Finance Act' 1994 Service Tax refund on freight related to export July-2012 to June 2014 Service tax appellate tribunal 64.41
Finance Act' 1994 Service tax under RCM on CISF service 2013-14 to 2016-17 Commissioner (Audit) Raipur 3.68
Goods & Service Tax Interest on GST for DMF and NMET Trans-1 Credit 1.7.2017 to 31.03.2020 2017 GST Authority 9.3
Director(C) GST 0.13
DFO Dantewada and State of Chhattisgarh Forest permit fees 14.06.2002 to 31.10.2012 Hon'ble High Court of Chhattisgarh 80.51
MMDR Act Common Cause Notice 2018-2019 Hon'ble High Court of Chhattisgarh 705.97
RO Vizag The Finance Act 1994 Service Tax 2007-2008 to 2011- 2012 Service Tax -Vishakapatam Sales Tax-Hyderabad 2.94
Total 1645.12

(8) In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of loans and borrowing to any financialinstitution banks government or dues to debenture holders.

(9) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3 (ix)of the Order is not applicable to the Company.

(10) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company or no material fraud on the Company by its officersor employees has been noticed or reported during the year.

(11) In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

(12) The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of theOrder is not applicable to the Company.

(13) In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the standalone financial statements as required by theapplicable accounting standards.

(14) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

(15) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of section 192 of theCompanies Act 2013 are not applicable to the Company.

(16) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For Sagar & Associates
Chartered Accountants
(Firm's Registration No: 003510S)
B Aruna
Partner
Place: Hyderabad (Membership No. 216454)
Date: June 16 2020 UDIN: 20216454AAAABW7621

"ANNEXURE - C" TO THE AUDITORS' REPORT

(Referred to in paragraph 3 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of NMDC Limited of even date)

Report on the Directions of the Comptroller and Auditor General of India required undersub section 5 of Section 143 of the Companies Act 2013 ("the Act")

S No. Point Reply
Whether the company has system in place to process all the accounting transactions through 1 IT system? If yes the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications if any may be stated. Yes. The company has a ERP system (Oracle) to process all the accounting transactions through IT system. However for preparation of financial statements some manual interventions are carried.
Whether there is any restructuring of an existing loan or cases of waiver /write off of debts/loans 2/interest etc. made by a lender to the company due to the company's inability to repay the loan? If yes the financial impact may be stated. Not Applicable
Whether funds received /receivable for specific 3 schemes from central/ state agencies were properly accounted for/ utilized as per its term and conditions? List the cases of deviation. Not Applicable
Report on the Central Public Sector Enterprises (CPSEs) Specific Directions of the Comptroller and Auditor General of India required under sub section 5 of Section 143 of the Companies Act 2013 ("the Act")
S No. Point Reply
1 Examine and Comment on whether the Company has tested the Investment made in "Legacy Iron Ore Limited Australia (LIOL) and provided for impairment loss if any together with appropriate disclosures. Company has done the test of impairment of investment in LIOL as per latest Financials of LIOL for the Financial Year 2019-2020. As per operational report and auditor's report included in the audited annual report of LIOL no impairment of the Investment in LIOL is felt necessary for the current Financial year 2019-2020. Disclosure was made in Note No: 2.34.14 of audited financials of 2019-2020 and auditor opinion is mentioned in the audit report in "emphasis of matter".

 

For Sagar & Associates
Chartered Accountants
(Firm's Registration No: 003510S)
B Aruna
Partner
Place: Hyderabad (Membership No. 216454)
Date: June 16 2020 UDIN: 20216454AAAABW7621

.