YOUR DIRECTORS ARE PLEASED TO PRESENT THE 61st ANNUAL REPORT ON THEPERFORMANCE OF YOUR COMPANY TOGETHER WITH THE AUDIT REPORT AND FINANCIAL STATEMENTS FORTHE YEAR ENDED 31st MARCH 2019 AND THE REPORT THEREON BY THE COMPTROLLER ANDAUDITOR GENERAL OF INDIA.
1. PERFORMANCE HIGHLIGHTS
During the year under review the Company has recorded turnover of Rs. 12153 croresachieved Profit Before Tax (PBT) of Rs. 7199 crores and achieved Profit after Tax (PAT)of Rs. 4642 crores.
The major performance highlights are summarized as under:-
The company achieved record production of 32.36 MT and sales of 32.36 MT.
Turnover for the year under review was Rs. 12153 crores as against Rs. 11615crores in the previous financial year 2017-18 - an increase of 4.63%.
Profit before tax (PBT) from continuing operations was Rs. 7199 crores comparedto Rs. 6180 crores in the previous financial year 2017-18 - an increase of 16.50%.
Profit after tax (PAT) was Rs. 4642 crores compared to
' 3806 crores in the previous financial year 2017-18 - an increase of 21.97%.
Net worth of the Company stood at Rs. 25952 crores as on 31.03.2019 - 6.56 %higher than the previous financial year 2017-18.
The Company declared an Interim Dividend of Rs. 5.52 per share for FY 2018-19.
Capital expenditure of Rs. 2090 crore has been incurred during the year underreview.
Completed Buyback of 102040815 equity shares of Rs. 1/- each @ Rs. 98/- pershare.
Granting extension of ML no.2396 in respect of Donimalai for 20 years from04.11.2018 to 03.11.2038 as per the provision of the Mineral (Mining by GovernmentCompany) Rules 2015
Government of Karnataka issued letter no. CI 78 MMM 2016 dated 2.11.2018 grantingextension of ML no.2396 in respect of Donimalai for 20 years from 4.11.2018 to 3.11.2038as per the provision of the Mineral (Mining by Government Company) Rules 2015. Howeverit imposed a condition of 'payment of an amount 80% of the average sale value as publishedby IBM from time to time on despatch of iron ore being payable along with the royalty andall other applicable taxes'
The impact of the said additional condition makes NMDC's mining operation at Donimalaiunviable the matter was internally discussed and also discussed at the Board level. Legalopinions were sought from Attorney General for India Shri KK Venugopal and Shri BPAcharya Sr. Advocate and former Advocate General of the State of Karnataka. Both haveopined that the condition being imposed by the Government of Karnataka is without theauthority of law.
The matter was taken up with the Government of Karnataka at various levels includingthe Chief Minister of the State by CMD. In spite of continuous follow-up no positiveresponse has come from the Government of Karnataka. Pending the decision on therepresentation by the Karnataka Govt. the operations have been temporarily suspended . Inthe circumstances NMDC was left with no other remedy than approaching the Hon'ble HighCourt of Karnataka by filing a Writ Petition; and as directed the WP No. 53514 of 2018was filed on 29.11.2018.
After hearing the arguments of both the parties the Division Bench of Hon'ble HighCourt of Karnataka on 26-02-2019 reserved the matter for judgment. The Division Bench ofthe Hon'ble High Court of Karnataka Bangalore pronounced the judgement on 10.07.2019. Theoperative portion of the Order is as under:-
i) Writ Petition is allowed;
ii) The condition imposed to levy premium equivalent to 80% of average sale price ofiron ore published by the Indian Burea of Mines while extending the period of lease videCommunication / Order No.CI 78 MMM 2016 dated 02.11.2018 passed by the SecretaryDepartment of Commerce & Industries Govt. of Karnataka as amended by CorrigendumNo.CI 78MMM 2016 dated 15.11.2018 and intimating the same through the letterNo.DMG/MLS/ML-2396/2018- 19/6360 dated 23.11.2018 passed by the Director Department ofMines & Geology Bengaluru is set aside .
Impact of the Hon'ble Supreme Court of India Judgement with reference to the WritPetition (Civil) No.114/2014 dated 02.08.2017
The Company has been legally advised that there is no impact of the Hon'ble SupremeCourt of India Judgement with reference to the Writ Petition (Civil) No.114/2014 dated02.08.2017 on NMDC. However in case it is found applicable to NMDC at a later date itmay impact the profits of the Company. Meanwhile the Bailadila Projects of NMDC havereceived the Show Cause Notices dated 31.07.2018 from District Collector Dantewada as towhy NMDC should not be asked to deposit an amount of Rs. 7241.35 crores as compensationas calculated by Collector based on the above judgement. NMDC has been asked to submit itsresponse by 31.08.2018. As per the legal opinion received the above compensation is notapplicable to NMDC and hence NMDC will seek legal recourse and contest before theCollector Dantewada and other appropriate authorities. The company has contested the ShowCause Notice with District collector South Bastar Dantewada.
2. PHYSICAL PERFORMANCE
|Product || |
|Percentage of change |
| ||2017-18 ||2018-19 || |
|Iron Ore (Million tonnes) ||35.57 ||32.36 ||(-)9.02 % |
|Diamond (Carats) ||39394 ||38149 ||(-)3.16 % |
|Sponge Iron (Tonnes) ||Nil ||2475 || |
|Pellets (Tonnes) ||58070 ||115623 ||99.11 % |
3. SALES OF IRON ORE
|Product || |
Physical (in million tonnes)
Value (Rs. in crore)
| || |
|Percentage || |
| ||2017-18 ||2018-19 ||of change ||2017-18 ||2018-19 ||of change |
|Domestic ||33.48 ||31.18 ||(-) 6.72% ||10421.00 ||11452.33 ||9.90 % |
|Export through MMTC ||2.60 ||1.18 ||(-) 54.62% ||1069.93 ||545.65 ||(-) 49.00% |
|Total Sales ||36.08 ||32.36 ||(-) 10.31% ||11490.93 ||11997.98 ||4.41 % |
3.1 Other Sales
|Products || |
| ||2017-18 ||2018-19 |
|a) Diamond || || |
|Sales (carats) ||33175 ||29346 |
|Value (Rs. in crore) ||35.17 ||38.86 |
|b) Sponge Iron || || |
|Sales (tonnes) ||Nil ||495.58 |
|Value (Rs. in crore) ||Nil ||0.94 |
|c) Wind Power || || |
|Sales (lakh units) ||1.91 ||1.62 |
|Value (Rs. in crore) ||6.50 ||5.51 |
4. FINANCIAL PERFORMANCE
4.1 Operating Results
|Parameter || |
|Percentage of change |
| ||2017-18 ||2018-19 || |
|Profit Before Tax (PBT) (Rs. in crore) ||6180 ||7199 ||16.50 % |
|Profit After Tax (PAT) (Rs. in crore) ||3806 ||4642 ||21.97 % |
|Net Worth (Rs. in crore) ||24354 ||25952 ||6.56 % |
|Book value per share (Rs. ||76.97 ||84.76 ||10.12 % |
|Earnings per Share (?) ||12.03 ||14.70 ||22.20 % |
There has been no change in the nature of business for the year under review
4.2 Profit & Dividend
During the year under review your Company has earned profit before tax from continuingoperations of Rs. 7199 crores on a turnover of Rs. 12153 crores in comparison withprevious year's achievement of Rs. 6180 crores and Rs. 11615 crores respectively.
The Company has declared Interim Dividend for FY 2018-19 @ Rs. 5.52 per share in themonth of March 2019 involving an outgo of Rs. 1690.14 crores. The share of Governmentwith equity stake of 72.28 % is Rs. 1222 crores.
4.3 TRANSFER TO RESERVES
The company proposed to transfer Rs. 2000 crore from net profit to General Reserve.
4.4 MATERIAL CHANGES AND COMMITMENTS IF ANY AFFECTING THE FINANCIAL POSITION OF THECOMPANY WHICH HAVE OCCURRED BETWEEN THE END OF FINANCIAL YEAR OF THE COMPANY TO WHICH THEFINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT: NIL
The company has not accepted any deposits covered under Chapter-V of the Companies Act2013 during the year under review.
5. INTERNAL CONTROL SYSTEMS
Necessary disclosure in respect of Internal Control System and their adequacy has beenmade in Annexure-C to the Independent Auditors' report dated 28th May 2019which forms part of the Annual Report.
6. (a) PARTICULARS OF LOANS GUARANTEES
AND INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT 2013
Necessary details in this regard have been disclosed in the financial statements.
(b) RELATED PARTY DISCLOSURE
Disclosure on related party transactions forms part of the Notes to the Balance Sheetboth of Standalone and Consolidated.
(c) MAINTENANCE OF COST RECORDS
Section 148(1) of the Companies Act 2013 specifies the provisions of maintenance ofCost Records of the company. The company is maintaining such records as per Rule 4(2) ofthe Companies (Cost Records and Audit) Rules 2014 under both regulatory and non-regulatoryservices.
7. (a) STATUTORY AUDITOR'S REPORT
The Audit Report for both Standalone and Consolidated Financial Statements for the year2018-19 is unmodified and does not contain any qualification reservation or adverseremark.
(b) SECRETARIAL AUDIT REPORT
The Secretarial Audit Report for the FY 2018-19 as done by M/s Hanumanta Raju &Co. Company Secretary in whole time practice does not contain any qualificationreservation or adverse remark.
8. NEW PROJECTS & BUSINESS DIVERSIFICATIONS
In line with the Vision plan of augmenting its Production & Evacuation capacitytechnology upgradation diversification & value-added products NMDC has taken up manyambitious projects. Some of the projects have been completed and others are nearingcompletion. Action for new projects have been initiated. During the financial year2018-19 the details of Projects undertaken by NMDC are summarized as under:
A. ONGOING PROJECTS:
1. Screening Plant III - Kirandul Complex
2. Additional Screening Line & up gradation of existing conveyor at Kirandul.
3. 15 MTPA Slurry Pipeline - Bacheli to Nagarnar
4. Doubling of KK line between Kirandul & Jagdalpur
5. Doubling of KK line between Jagdalpur & Ambagaon
B. PROJECTS IN PIPELINE:
1. Screening Plant II- Donimalai Complex
2. Additional Screening Line & up gradation of existing conveyor at Bacheli.
Projects / Schemes for capacity expansion
To augment the production and to improve the quality of product mix from BailadilaSector the schemes like SP-III Kirandul relocating Crushing Plant
of Dep.14 & 11/C and Downhill conveyor additional screening lines in Bacheli &Kirandul Rapid Wagon Loading System (RWLS) etc are envisaged. Waste mining and increasein evacuation capacity being a major areas of focus for enhancing the life of minesschemes like beneficiation plant at Bacheli & Kirandul and Slurry pipeline fromBacheli to Nagarnar has also been taken up.
The upcoming scheme in Donimalai Complex includes a Second Screening Plant of 10.0 MTPAcapacity for handling the ROM from Donimalai & Kumarswamy mines in addition to theexisting Screening Plant. Statutory clearances for 10.0 MTPA Screening Plant-ll areawaited.
For improving the rake loading capacity in the Donimalai sector an additional Stacking& Loading facility of 7.0 MTPA is envisaged. Further re-modeling of existingRanjitpura Railway yard is also planned for augmentation of rail despatches. Railwayconsultant is appointed for the same and TEFR has been submitted to South western RailwayHubli for approval.
Projects / Schemes to enhance evacuation capacity
To augment the evacuation capacity from Bailadila sector many projects & schemesare taken up like doubling of KK line Rowghat-Jagdalpur new rail line Slurry Pipelineetc.
Doubling of KK line between Kirandul & Jagdalpur (150.462 km) is executed byRailways as a deposit work and is in advance stage. 45.50 kms line between Jagdalpur &Silakjhori (Section-l) and 7.32 kms line between Dantewada & Gidam (Section-ll) werecompleted during the FY 2017-18 and opened for traffic. Further during FY 2018-19 9.2Kms line between Silakjhori and Kumharsodra (Section-lll) was completed and opened fortraffic. Works are in progress in other reaches of Section ll & Section lll and arescheduled to be completed by FY 2019-20.
Further Doubling of KK line between Jagdalpur & Ambagaon (25 km) is also taken upthrough Customer funding model agreement. Work completed during the FY 2018-19 and openedfor traffic.
For increasing the rake loading & evacuation capacity at Kirandul installation ofadditional rail facilities and line for 2nd RWLS is being planned. Railway consultant isappointed TEFR approved by East Coast Railway Bhubaneswar and DPR work is in progress.
Additional Screening Line & up gradation of existing conveyor at Kirandul isexpected to be commissioned by December 2019.
NMDC has taken up an ambitious project of laying Slurry pipeline from Bailadila toJagdalpur and further up to Visakhapatnam. The Capacity of the line 15 MTPA and this willbe associated with facilities like beneficiation plant at Kirandul & Bacheli pelletplant at Nagarnar and Vizag. The slurry pipeline between Bacheli to Nagarnar is beingexecuted by NMDC and from Nagarnar to Vizag is envisaged to be executed in SPV or BOOmode.
Solar Power Projects
With the green energy initiative of Govt. of India focusing more on renewable energiesNMDC has taken up setting up of Solar Power projects (Rooftop) at its Office premises.This includes:-
(a) 30 KW rooftop solar power generation at Head Office.
(b) 1 MW rooftop solar power generation at production units of NMDC.
The rooftop solar power unit at Head office has been commissioned and is in operationsince April 2017.
Work awarded for Engineering Procurement Supply Construction and Commissioning ofapprox. 1MW capacity RTS Photovoltaic Grid connected power projects at various productionunits of NMDC on turkey basis including Comprehensive Operation & Maintenance for aperiod of 10 years in Sep'2018. Expected to be completed by July 2019.
a) Steel Plant Project at Nagarnar Chhattisgarh
Steel Plant project at Nagarnar is moving towards its commissioning stage and theprogress of civil works structural & equipment erection are in advanced stage of itscompletion.
The operational power supply system is already energized and various sub-stations arealso charged to ensure power supply to such units. Further for the initial inward andoutward movement of the materials plant is already connected with the railway line andprocurement action for initial requirement of raw materials spares consumables etc. areunder process. The activities of conducting cold trials Preliminary Acceptance Testsetc. of equipments of individual facilities are under progress as a preparedness forcommissioning of steel plant. The capex achievement w.r.t. steel plant during thefinancial year 2018-19 is Rs. 1541 Cr. and expenditure incurred so far is about Rs.15426 Cr.
b) Promoting New Steel Plants through SPVs
NMDC is promoting Steel SPVs for setting up new steel plants in the state of Karnatakaand Jharkhand. This initiative is under a collaborative approach of Ministry of Steel GoIand respective State Governments. The Steel SPVs shall acquire land seek water and powerallocation and iron ore linkage for setting up the Steel plant and then invite a strategicpartner to develop and construct the Steel Plant. NMDC shall ensure the ore linkage to theSPVs though JVs with State Mining corporations.
The Steel SPV in Jharkhand has selected the site and has applied for allocation ofland water and power. In the state of Karnataka NMDC has acquired ~ 2800 acres of landacquisition through KIADB. NMDC has also sought for iron ore allocation in the state ofJharkhand and Karnataka for ore linkage to the steel SPVs.
NMDC will take up the next steps on both the SPVs after allocation of iron ore linkage.
Dust Suppression System at Donimalai OCSL Plant:
a) Dust level be maintained within Fugitive Emission Standards for iron ore processingas specified by Ministry of Environment Forests & Climate Change (MOEF&CC) i.e.concentration of particulate matter shall be within 1200 gg/m3.
b) In order to create healthy working environment for the working personnel in andaround the OCSL Plant as per the norms of ISO-14001 (Environment) & OHSAS-18001 andalso avoid IR issues Dust Suppression System is successfully implemented at Crushing andScreening Plant DIOM through CSIR CIMFR Dhanbad during April-2019 and the value of thework is Rs. 271.78 lakhs.
Automatic Fire Detection & Suppression System
a) To effectively control the occurrence of Fire in its incipient stage itself andsafeguard the interest of the installed Equipment deployed manpower and also as per DGMSguidelines and Commissioned in Tunnel Conveyors BC-203 & BC-204 with a length of1.4KM at Kirandul Complex at a cost of Rs. 472.8 lakhs.
b) AFDSS is also under implementation at Bacheli Complex in Tunnel Conveyor BC-29approx length of 2.14 KM at a cost of Rs. 534.46 lakhs.
Installation of Protable Sub-station:
Replacement of Existing 33/6.6/3.3 KV Old Conventional Substation of Dep-14 of BIOMKirandul Complex by 33/6.6/3.3 KV Compact Portable/ Mobile.
This is the first ever Mobile Sub-station of NMDC which includes the followings:-
a. Easter Oil filled Transformers
b. Gas Insulated Switchgears
c. Latest SCADA System
d. Addressable Fire Detectors
e. Automatic Power Factor Controller
f. Utilization of Solar Energy by Hybrid Solar Panels mounted on roof top for Lighting& Control Supply within the E-House.
g. Mounted on temporary structural frame
The said replacement of RLC system of Screening Plant will be beneficial to reduce thedown time of plants due to electrical breakdown/ energy savings/ Eco-friendly & greentechnology.
8.1 OVERSEAS PROJECTS / NMDC GLOBAL
Legacy Iron Ore Perth Australia
Legacy Iron Ore Ltd is an ASX listed entity based in Perth Australia with a focus oniron ore gold and base metals. NMDC has 78.56% equity in the company.
Legacy is holding 21 exploration tenements in Iron Ore Gold Base Metals &Tungstenin Western Australia. Legacy has 60% interest in Mt Bevan Iron Ore Project which has aJORC compliant Indicated and Inferred resource of 1.17 billion tonnes magnetite. Mt Bevantenement also has potential for nickel-copper mineralization. Currently explorationdrilling is being carried out in Nickel Targets.
Legacy's major gold focus lies in the South Laverton region and base metals focus liesin the Koongie Park region of Western Australia. Mt Celia Gold project has identified twogold occurrences namely Kangaroo Bore and Blue Peter deposits. Total 14755m (183 holes)drilling was done in these tenements with a total gold resource of 3.41 mn tonnes @ 1.68g/t (metal content of 184100 ounces). Pit optimization study conducted by AMC consultinghas demonstrated good potential in both these deposits. Further drilling is planned in MtCelia project to fill the gaps identified by pit optimization study.
International Coal Ventures Pvt. Ltd. (ICVL)
ICVL a joint venture company of SAIL RINL & NMDC acquired a coking/thermal coalmine in Mozambique in 2014 and operation of the same was taken over by ICVL. ICVLundertook strategic review of Benga operations & restarted operations from Dec 2017.Benga Mine has produced about 1 MT of Coking coal & 0.32 MT of thermal coal in FY'19.
Venture into Strategic Raw materials
Tungsten metal is of strategic importance due to its essential requirement in defenceand aerospace sector and currently India meets its entire requirement through imports.NMDC has entered into MoUs with both MIDHANI and DMRL to explore tungsten investmentopportunities in India and abroad. NMDC is presently conducting detailed due diligence ofa shortlisted tungsten asset for acquisition of minor stake for defence requirementsubject to committed off-take from defence sector companies.
8.2 Leases for minerals
Iron Ore In Chhattisgarh
NMDC-CMDC Ltd. is a subsidiary of NMDC Ltd. with equity share holding of NMDC Ltd. andCMDC Ltd. in the ratio of 51:49. This subsidiary company has been formed to develop mineprocess raise and sale of iron ore from Deposit No.13 & Deposit No.4 at Bailadila inSouth Bastar Dantewada Chhattisgarh. The present Mining Lease Grant status of both thedeposits are as follows:
Bailadila Iron Ore Deposit No.13
Mining lease was granted for Bailadila Iron Ore Dep- 13 over an area of 413.745 Ha infavor of NMDC Ltd. for 50 Years. Performance security has been deposited with the StateGovernment in the form of a bank guarantee and Mine Development and Production Agreementwas signed on 10.01.2017. The lease deed was executed and registered on 10.01.2017 over anarea of 315.813 Ha. As per ML Grant Order No.F3- 84/95/12 dated 07.01.2017 Mining leasehas been transferred in favor of NMDC - CMDC Limited (NCL) on 04.12.2017. Intimation ontransfer of Mining Lease in Form-N under Rule 50 of MCDR 2017 has been submitted to theRegional Controller of Mines IBM Raipur on 29.12.2017.
Intimation on transfer of records to transferee regarding Mining Lease under Rule 52 ofMCDR 2017 has been submitted to the Secretary Mineral Resource Department Govt. ofChhattisgarh on 29.12.2017. 3D Ore Body Modeling & resource estimation has beencompleted by using Surpac mine planning software and Geo-statistical tools in WGS 84datum. MDO has been appointed. The modified mining plan has been approved by IBM Raipur.Action has been initiated for transfer of existing EC & FC in favour of NCL.
Bailadila Iron Ore Deposit No.4
M/s NMDC - CMDC Ltd. (NCL) has submitted the proposal to Secretary MRD Govt. ofChhattisgarh through DMG Govt. of Chhattisgarh on 26.09.2017 for reservation of BailadilaDeposit No. 4 (646.597 ha) in favor of M/s. NCL under section 17A (2A) of MM (D&R)Amendment Act 2015 for grant of ML. MRD Govt. Chhattisgarh forwarded application toMinistry of Mines GoI. The matter is being pursued with MoM GoI
In respect of Bailadila-1 & 3
Your Company has filed Writ Petition before the Hon'ble High Court of Delhi againstallotment of Deposit-1 in favor of Tata Steel & PL of Deposit-3 in favor of ESSARSteels. The Writ Petitions are being heard before the Hon'ble High Court of New Delhi.
In Jharkhand Sasangada
A JV Company (NMDC 60% & JSMDC 40%) Jharkhand National Mineral DevelopmentCorporation Limited (JNMDC) has been incorporated with its registered office at Ranchi.DMG Govt of Jharkhand has granted PL for iron ore & Manganese in Sasangada NE area infavor of JNMDC Ltd for a period of 3 years. M/s JNMDC applied for renewal of PL for aperiod of two years. Detailed Geological mapping and topographical survey has beencompleted. Lol has been issued for carrying out exploratory drilling in PL area. ForestClearance application for conducting drilling and other exploration works was submitted.FAC of MoEF & CC recommended for Forest Clearance subject to renewal of ML. MoM GOIhas returned the proposal to grant relaxation under section 31 of MMDR Act 1957 forrenewal of PL to State Govt. Further MoM GoI has also stated that since JV partners ofJNMDC are PSUs State Govt. may consider a proposal for reservation of Sasangada block toJNMDC under Section 17A of MMDR Act 1957. JNMDC requested to the Secretary Dept ofIndustries Mines & Geology GoJ for reservation of Sasangada Iron ore and Manganesedeposit (1.1546 Sq.Km) under Section 17A(2A) of MM(D&R) Amendment Act 2015 for grantof Prospecting and Mining. The matter is being pursued with Govt. of Jharkhand forreservation.
Other PL/ML Applications:
Your Company is pursuing for reservation for Ghatkuri Iron ore area in West SinghbhumDistrict. JNMDC (a JV company of NMDC & JSMDC) submitted a proposal to the SecretaryDepartment of Industries Mines & Geology Govt. of Jharkhand for reservation ofGhatkuri Iron ore deposit West Singhbum District Jharkhand under Section 17A(2A) ofMM(D&R) Amendment Act 2015 for grant of Prospecting and Mining operation to provideiron ore linkage to upcoming Jharkhand Kolhan Steel Limited. The matter is being pursuedwith Govt. of Jharkhand for reserving Ghatkuri iron Ore deposit in favor of JNMDC.
Your Company is pursuing for ML for Ramandurg and Kumaraswamy Deposit (contiguous to MLNo.1111). Ramandurg iron ore deposit is subjudice and pending in the Hon'ble Supreme Courtof India.
In addition your company has applied for 3 Prospective blocks contiguous to DonimalaiML under reservation route.
Your Company is pursuing for reservation for Mankadnacha Malangtoli KhandadharRakma iron ore deposits and Panduliposi Iron Ore & Manganese Deposit
In Madhya Pradesh
Iron Ore Prospective Blocks
Tripartite MoU among GoMP (MRD through DGM) MPSMCL & NMDC was signed forgeological and geophysical exploration in various Districts of M.P.
Govt. of Madhya Pradesh issued Gazette Notifications of Sidhi-Singrauli Dhuarra andSagar Iron Ore prospective blocks which are applied under MoU for exploration andsubsequent reservation.
Sidhi Block (2279 Sq. km.) in Sidhi & Singrauli Districts:
Geological Mapping in 1:2000 scale has been completed in one block in large Iron oreproject. Completed Ground Geophysical Survey (VLF-EM) in Lohkhanti area of Sidhi-SingrauliIron Ore Block and acquired Ground Magnetic data in (30 line & 20.7 line km).Processed the data to generate 30 nos 2 D depth sections for VLF EM & Magneticprofiles. This indicated a depth of 30 meters of iron ore body in Lohkhanti.
Geological Mapping was completed in identified blocks -Katri Kadi Chitrangi NorthChitragi South and Mahuriya blocks. 877 nos. of samples are collected and analysis isunder progress in Sidhi - Singroli Iron Ore Block.Chemical analysis of 500 samples ofLohkhanti Mauhariya and 2 Katrikadi areas using HH XRF are completed.
In Dhaurra block the team of NMDC Geologists visited the block and geologicaltraverses was taken and Ground Geophysical Survey (Magnetic survey) completed. Anomaly mapprepared depicting the iron ore formation. Geological mapping at 1:10000 scale completedand 100 chip/soil samples collected in grid pattern along the iron ore formation and sentto R &D for analysis.
In Dulchipur-Bagroda block Geological field traverses are completed and 146 nos. ofrock / chip samples were collected and the same are sent to R & D Centre for chemicalanalysis.
In Andhra Pradesh
Your Company has applied for Ramgiri prospective block for Iron Ore in Anantapurdistrict. NMDC has requested State Govt. to reserve this block in favour of NMDC under 17A(2A) of MM (D&R) Amendment Act 2015.
In Andhra Pradesh
Your Company is pursuing for grant of 3 PLs falling in the Forest area (Renewalapplication submitted) in Kalyandurg area Anantapur District. FAC recommended for forestpermission for drilling.
NMDC requested Director DMG for grant of renewal of PL's in favor of NMDC. Once theGovt. of Andhra Pradesh grants the renewal of PL's in favor of NMDC exploration will becommenced in 3 PL areas.
In Madhya Pradesh
Large area Diamond Prospective Blocks
Your company has applied for three large area Prospective Blocks namely Damoh BlockChhattarpur Panna Block-1 and Chhattarpur Panna Block-2 for diamond exploration.Tripartite MoU among GoMP (MRD through DGM) MPSMCL & NMDC was signed for geologicaland geophysical exploration for various Districts of M.P. Govt. of Madhya Pradesh issuedGazette Notifications for above large prospective blocks which are applied under MoU forexploration and subsequent reservation.
Panna Prospective Blocks:
Tripartite MoU among GoMP (MRD through DGM) MPSMCL & NMDC was signed forgeological and geophysical exploration for various Districts of M.P. Govt. of MadhyaPradesh issued Gazette Notifications for Karmatiya Lakshmipur Pali Khirwa South andKhirwa West prospective blocks which are applied under MoU for exploration and subsequentreservation. Exploration will be commenced in 5 Prospective Blocks.
Additional 12 Diamond Prospective Blocks
Your company has applied for 12 additional Diamond Prospective Blocks in Panna DamohSagar and Chhatarpur districts for exploration under Section 4(1) of MMDR Act 1957. GoMPgranted permission for carrying out exploration works. Forest permission has been obtainedfor Reconnaissance Survey. Total 418 SSS collected and it is under process. 800-line kmsMagnetic & 400 line kms VLF-EM data acquired in proposed 45 target areas for suspectedkimberlite rocks and Gravity survey in 3 blocks is completed and in other blocks is underprogress.
NMDC is processing and interpreting the Raw Aeromag data using Geosoft software(acquired by M/s Geoken Kazakithan).
Prospective block for various minerals:
Your company has applied for prospecting of various minerals (Diamond Gold PGENickel etc.) in Jabalpur Katni Block (563 Sq. Km.). Tripartite MoU among
GoMP (MRD through DGM) MPSMCL & NMDC was signed for geological and geophysicalexploration for various Districts of M.P. Govt. of Madhya Pradesh issued GazetteNotifications for prospective block which is applied under MoU for exploration andsubsequent reservation.
Reconnaissance Survey started in Jabalpur -Katni Block for various Minerals (Iron PGEGold Base metals etc).Remote Sensing Studies started and some potential areas identifiedfor iron ores. Detailed Geological traverse have been taken and identified potentialsareas for Iron Ore Manganese and Gold. Geological mapping completed in 5 Iron ore &Manganese areas. Forest permission obtained from APCCF Bhopal for exploration and alsofrom CCF Jabalpur. A total of 550 nos. of rock samples are collected for Fe-Mn analysisand 25.20 line kilometer of ground magnetic survey completed within the two potentialareas and under progress. The geochemical mapping is under progress in potential blocks.
Diamond in Chhattisgarh
Baloda - Belmundi Diamond Block - Your company has submitted the proposal to theSecretary MRD Govt. of Chhattisgarh vide letter dated 12.12.2017 for Baloda - BelmundiDiamond Block over an area of 156.80 sq km in Saraipali Tehsil Mahasamund Dist. forreservation under section 17(A) (2A) of MM (D&R) Amendment Act 2015 for Diamond forProspecting and Exploitation. The matter is being pursued with Govt. of Chhattisgarh.
Copper in Chhattisgarh
NMDC submitted the proposal to the Secretary Govt. of Chhattisgarh vide letter dated29.03.2019 for Nodenar-Modenar Copper Block over an area of 21.24 sq km for prospectingand exploitation in Bastar & South Bastar Dist. for reservation under section 17(A)(2A) of MM (D&R) Amendment Act 2015. The matter is being pursued with Govt. ofChhattisgarh.
Gold: In Jharkhand
Gold & associated mineral Deposit: Vide letter dt. 1.1.2019 NMDC submittedapplication to the Secretary cum Commissioner DMG GoJH for proposal to reserve 24.80 Sq.Km. area in Kuchai Tehsil District Saraikela-Kaswan Jharkahnd under Section 17A (2A) ofMM(D&R) Amend. Act 2015 for prospecting and mining operation of Gold & associatedminerals. Director (Mines) has sent the proposal to District Mining officer (DMO)Saraikela-Kharswan district the matter is being pursued with DMO.
Various minerals: In Jharkhand
Tambadungri Copper Nickel cobalt and molybdenum mineral -NMDC submitted the proposalto the Secretary-cum-Commissioner Dept. of Mines &
Geology Govt. of Jharkhand vide letter dated 30.01.2019 to reserve an area of 16.70Sq. Km in Saraikela-Kharswan district Jharkhand under Section 17A(2A) of MM(D&R)Amendment Act 2015 for grant of Prospecting and Mining operation of Copper Nickel cobaltand molybdenum mineral
Nickel: In Odisha
Kansa Block-Vide letter dt. 1.1.2019 NMDC has submitted application to the DMG Govt.of Odisha for proposal to reserve 8.0 Sq. Km. area JajpurDistrict Odisha under Section17A(2A) of MM(D&R) Amendment Act 2015 for prospecting and mining operation of Nickel
Tungsten: In Maharashtra
Khobna Tungsten Block - Your Company has submitted the proposal for reservation ofKhobna Tungsten Block Nagpur District Maharashtra under section 17(A) (2A) of MM(D&R) Amendment Act 2015 for Tungsten for Prospecting and Exploitation. The matter isbeing pursued with Govt. of Maharashtra.
Coal Blocks allocation under Section-5 of the Coal Mines (Special Provision) Act 2015.
As per the Section-5 of the Coal Mines (Special Provision) Act 2015 Your Company istrying to get Coking & Non Coking Coal Blocks for captive and commercial miningthrough auction or allocation.
Exploration under Sub-section (1) of Section (4) of MM (D&R) Act 1957 in MoM GoIallotted Blocks.
Your company has been allocated 5 blocks (2 iron ore blocks in Jharkhand &Maharashtra and 3 Gold blocks 2 in Karnataka & 1 in M.P.) by Ministry of Mines GoIfor G4 level exploration. Exploration work is under progress.
Your company has successfully bidded for Chigargunta-Bisanatham gold block for MiningLease (ML area 263.01 Ha.) located in Chittoor district in Andhra Pradesh throughe-auction route with a final bid offer of 38.25%.
9. SUBSIDIARY / ASSOCIATE / JOINT VENTURE (JV) COMPANIES MONITORING FRAMEWORK
a) NMDC has 8 subsidiaries and stake in 5 Associate and 5 JV Companies. The names ofthese Companies and percentage of NMDC stake in these companies are as follows:
10. ENVIRONMENT MANAGEMENT:
The Company has obtained Amendment to Environment Clearance for Nagarnar IntegratedSteel Plant (NISP) for changes in configuration of some of the units and product mix fromMinistry of Environment Forests and Climate Change (MOEFCC) on 4.08.2018. The Company hasalso obtained Environment Clearance for increase in built up area of NISP Township from1.95 to 2.82 lakh sq.m from State Environment Impact Assessment Authority (SEIAA) on03.12.2018.
The Company has obtained Consent to Operate under Air (Prevention & Control ofPollution) Acts 1981 and Water (Prevention & Control of Pollution) Act 1974 fromChhattisgarh Environment Conservation Board for the following Projects.
(i) Deposit-5 for 10 MTPA RoM Iron ore on 03/04/2018 for 3 years from 01/04/2017 to31/03/2020.
(ii) Deposit-14/11C for 12 MTPA ROM Iron ore on 3/04/2018 for 4 years from 01/01/2016to 31/12/2019.
(iii) Consent to operate for Central Workshop Bacheli on 23/03/2019 for 3 years periodfrom 1/4/2019 to 31/3/2022.
The Company also obtained Consent to Establish and Consent to Operate for railwaysiding cum dispatch facilities at Kumarmarenga Railway Siding for 10 Lakh Ton per Annum on30.03.2019. The Company got valid operating consents for all production projects under Airand Water Acts.
The Company has engaged Indian Council of Forestry Research and Education (ICFRE)Dehradun for preparation of EMP and R&R plans for 3 mining leases of Kirandul complex.
The Company has participated in Chhattisgarh Hariyar plantation programme during theyear 2018-19 and contributed Rs. 5.00 Cr to Hariyar Kosh for undertaking block plantationin the state of Chhattisgarh. The Company is undertaking all environmental pollutioncontrol works such as de-silting of check dams / check bunds tailing dams constructionof buttress walls at toe of waste dumps and geo-coir matting on waste rock dumps forstabilization of dumps. The Company is organizing monitoring studies covering allenvironmental parameters by recognized laboratories. The studies indicated that allenvironmental parameters are found to be well within the limits.
10.1 Sustainable Development Performance
Under SDP Program the company is undertaking construction of STP at Kirandul (3 MLD)and Donimalai (3 MLD). Carbon foot print studies are also conducted for F.Y 2018-19 andGreen House Gas emissions disclosed in Carbon disclosure project.
Mine Safety - Activities
NMDC has its training centers in all its projects. They are equipped withinfrastructure as required under Mines Vocational Training Rules. These centers cater tothe needs of basic training refresher training and training for skilled workers and alsofor those injured on duty.
In each mining project of NMDC sufficient number of workmen inspectors are nominated /appointed for mining operations mechanical and electrical installations as per statutoryrequirements.
Mine Level Tripartite Safety Committee Meetings have been conducted in each of theoperating mines. This meeting is conducted once in a year at project level with seniorofficials Union Representatives and DGMS Officials in which Safety Performance and itsappraisal are made and the recommendations are implemented.
Corporate Level Tripartite Safety Committee Meetings are being held regularly once in ayear at Head Office. 29th Corporate Level Tripartite Safety Committee Meetingof Bailadila Iron Ore Mines / Diamond Mining Project and Donimalai Iron Ore Mine /Kumarswamy Iron Ore Mine was conducted on 21.01.2019.
Safety Committees have been constituted in every operating mine and pit safety meetingsare held every month discussing the safety matters and corrective actions related to workatmosphere.
Man days lost per 1000 man days worked for the year 2018-19 is 7.04 as against 0.43 forthe year 2017-18
Integrated Management System (IMS)
All the NMDC Production Projects viz. BIOM KC; BIOM BC; DIOM; KIOM; DMP Parmaincluding R&D Centre are accredited with Integrated Management System (IMS) whichcomprises of Quality Management System (QMS) - ISO 9001:2015; Environmental ManagementSystem (EMS) - ISO 14001:2015; Occupational Health & Safety Management System (OHSMS)OHSAS 18001:2007 & Social Accountability - SA 8000:2014 Certification Standards.
Occupational Health Services have been provided with adequate manpower andinfrastructure and are functioning in full-fledged manner at all the projects headed byQualified Doctors trained in OHS at Central Labour Institute Mumbai.
Periodical Medical Examination under statute is carried out regularly in all theprojects.
Safety Management System:
Safety Management System has been implemented in all our mines. Risk Assessment studiesare being conducted regularly.
12. IMPLEMENTATION OF INTEGRITY PACT:
With the objective of improving transparency in procurement NMDC had entered into MOUwith Transparency International India for implementation of Integrity Pact Programmeduring September 2007. NMDC is the first Mining Navratna Company entered into IntegrityPact Programme in the year 2007.
Initially the threshold value for procurement & contracts for entering into theIntegrity Pact have been fixed as follows :- Contracts : Rs. 50.00 crores Procurements :Rs. 15.00 crores
To widen the coverage of procurements / contracts under Integrity Pact the thresholdlimits have been revised during 2009 as under:
Contracts : Rs. 20.00 crores Procurements : Rs. 10.00 crores
Subsequently to cover majority of cases under Integrity Pact the threshold limitshave been reduced to Rs. 1.00 crore for procurements / contracts w.e.f September 2018.
12.1 Transparency in procurements handled
In order to enhance transparency in procurements & increasing competitiveness yourcompany adopted the following modes of tendering:-
All procurements of value above Rs. 2 lakh are tendered through e-mode at HO &Projects. Reverse e-auctions are conducted for high value spares & consumableswherever possible by declaring upfront in the tender document
Broad basing of vendors done for high value items viz. Milled Ferro SiliconCrusher Spares Under Carriage parts of Excavators TCRR bits which resulted insubstantial savings in cost.
Mode of Tendering: Efforts are continuously taken to minimize proprietary& single tender purchases. Instead open/global tenders are resorted to by givinggeneralized specifications & drawings wherever possible or with OEM Part Numbers.
Pre-qualifying conditions: PQC for conveyor belts & HEM equipmentstenders have been revisited and a structured PQCs have been made keeping in view widerparticipation.
GeM Portal: Procurement through GeM portal as per the guidelines of GOI isbeing done for the Materials which are available in the Portal.
CPP Portal: MM Dept. is posting tenders in the CPP portal inviting offersfrom other interested parties subject to fulfillment of PQC & can supply as per ourspecifications/ requirement.
13. NMDC'S R&D CENTRE AT HYDERABAD
NMDC has an R&D Centre at Hyderabad which has been bestowed with "Centre ofExcellence" by UNIDO. The centre has capabilities for undertaking studies onmineralogy batch ore dressing mineral beneficiation pilot plant agglomeration pyro andhydro metallurgy bulk solids flowability with facilities for chemical analysiselectronic data processing and development of new products and is endowed with state ofart laboratory equipment to analyse optimum use of minerals. The lab equipment are WD-XRFICP-AES GFAAS SEM CS TGA ring shear tester dry & wet abrasion tester automaticmineral analyzer sink-float analysis petrological / stereo microscope density testerbatch & pilot plant facilities for mineral processing agglomeration etc. For furtherdetails reference may be made to Annexure-I attached to the Directors' Report.
14. GLOBAL EXPLORATION CENTRE RAIPUR
NMDC's Global Exploration Centre at Raipur is continuously doing exploration in themines of NMDC and adding new reserves every year. NMDC has offered to State Governments toundertake free exploration to quantify mineral resources in the State.
15. IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY
NMDC remained in the forefront of effectively implementing Official Language Policy ofGovernment of India in its Headquarters Projects and Units.
Giving a thrust on training in Hindi language "Hindi Parangat" trainingcontinued during the year at Hindi training centre of Head Office. Four batches ofemployees have already completed the course. Hindi Workshops were conducted in everyquarter at Head Office and Projects for practical training of doing day-to-day officialwork in Hindi. Training in "Hindi Unicode" was imparted to work in Hindi oncomputers. Regular classes were held in its premises with the help of Hindi TeachingScheme of Govt. of India to impart Hindi Stenography training to English Stenographers.
Incentive Schemes for writing noting letters Registers in Hindi and giving dictationin Hindi were implemented throughout the year. Hindi Fortnight was celebrated. VariousHindi competitions were conducted and prizes distributed to the participants.
Meetings of Official Language Implementation Committees were held in every quarter atHead Office and all the Projects. To monitor use of Rajbhasha and suggest measures toaugment the same inspections and Desk training programs were conducted at variousprojects and units. Rajbhasha contact programs were held every month at variousdepartments of HO by Officers of Rajbhasha Department to increase awareness towardsOfficial Language. Desk training in Hindi was also imparted during such programs."Rajbhasha Karya Sahayika" booklet was uploaded on the website of NMDC as readyreference for routine work in Hindi. A trilingual glossary "NMDC TrilingualGlossary" (English-Hindi-Telugu) has been prepared inhouse.
NMDC also continued its efforts for propagation of Rajbhasha at town level. A JointHindi workshop for small undertakings of Twin cities of Hyderabad-Secunderabad wasconducted at Head Office under the agis of Town Official Language Committee(Undertakings) Hyderabad- Secunderabad. Also an "Inter-Undertaking HindiCompetition" was organized for employees of all the undertakings.
"Rajbhasha Vichar Goshthee" was organised at Head Office for officers ofvarious undertakings in presence of honourable members of Hindi Salahakar Samiti of MOS.All India Conference of NMDC Rajbhasha Officers was also conducted at Head Office.Rajbhasha Technical Seminars were conducted at Donimalai Iron Ore Project SIU Palonchaand Diamond Mining Project Panna. House journal dedicated to Official language"Khanij Bharati" was published. Various Hindi / Bilingual / Trilingualmagazines news magazines were also published from Head Office and Projects viz SarjanaBaila Samachar Bacheli Samachar
Doni Samachar Heera Samachar She News etc. To encourage usage of Rajbhasha inProjects and units shields were distributed under "NMDC Rajbhasha Shield"Scheme.
NMDC was awarded "Rajbhasha Samman - First Prize" by Ministry Of Steel Govt.of India for excellent implementation of Rajbhasha for the Year 2017-18. Rajbhasha KirtiPuraskar (Second) for PSU's in 'C' region was conferred on NMDC by Government of IndiaMinistry of Home Affairs for the year 2017-18. NMDC also received FirstPrize-"Rajbhasha Shield" from Town Official Language Implementation Committee(U) Hyderabad-Secunderabad in mid-sized category for outstanding implementation ofRajbhasha during 2017-18. NMDC's Hindi Magazine "Khanij Bharati" was awarded"Best Magazine Award" in printed magazine category among all the PSUs ofHyderabad- Secunderabad.
16. DETAILS REQUIRED TO BE FURNISHED IN TERMS OF MICRO SMALL AND MEDIUM ENTERPRISESDEVELOPMENT ACT 2006 (MSMED).
Your company has taken the following steps to procure goods and services from MSEfirms MSE SC/ST & Women entrepreneurs. NMDC has conducted exclusive MSE SC
/ ST vendor meets at its projects in Chhattisgarh and Karnataka to understand thetendering process and our requirement. NMDC has participated in the various vendor meetsorganised by Ministry of Micro Small & Medium Enterprises in association with FICCI.Besides NMDC has organised a Vendor Meet at Raipur during June 2018 and also at HeadOffice during December 2018. The projects at Bailadila and Donimalai Sectors have alsoconducted meets / programmes. NMDC has participated in 11 programmes in total during2018-19. NMDC interacted with prospective MSE entrepreneurs encouraging them for supply ofgoods for various plants at Bailadila & Donimalai.
For encouraging MSE SC/ST firms exclusive trials are being conducted and aftersuccessful trials the firms are given tender enquiry in Limited Tender.
Moreover against the qualification criteria in tenders we have not received anycomplaint / request with regard to relaxing tender terms & conditions. For the last 3years NMDC is achieving the targets as per Public Procurement Policy.
Further it is to state that NMDC received Best Performer under the Navratna Categoryduring the year 2019 for our exemplary work towards promotion of SC/ST entrepreneurs basedon the performance parameters namely (i) procurement from SC/ST entrepreneurs (ii) No. ofVendor Development Programs for SC/ST and (iii) Number of SC/
ST entrepreneurs benefitted as per the data uploaded on Sambandh Portal.
17.1 Employee-Employer relations
The overall industrial relations situation was peaceful and cordial during the year.There was no strike/ lockout against the Company's policies affecting production andproductivity
17.2 Scheduled Castes & Scheduled Tribes
32 candidates belonging to Scheduled Caste and 118 candidate belonging to ScheduledTribes were appointed in the year 2018 against 319 posts filled by direct recruitment.
17.3 Strength of SCs & STs as on 31st March 2019
|1. Total number of employees ||5887 |
|2. Scheduled Castes amongst them ||922 |
|3. Scheduled Tribes amongst them ||1446 |
|4. Total SCs and STs ||2368 |
|5. Physically challenged employees ||100 |
17.4 Particulars of employees drawing remuneration of Rs. 8.5 lakhs per month or Rs.1.02 crores per annum under Section 197 of the Companies Act 2013 read with Companies(Appointment and Remuneration of Managerial Personnel) Rules 2014 as amended. - NIL
17.5 Staff Welfare activities
Adequate facilities for education health accommodation and recreation were in place.
Various Bipartite fora have been functioning satisfactorily.
17.6 Promotion of Sports
Inter Project tournaments both indoor and outdoor for employees and games &sports for the wards of employees were held in different Projects and Corporate Officeduring the year apart from promoting sports events under CSR.
17.7 Disclosure under Section 22 of the Sexual Harassment of Women at Workplace(Prevention Prohibition and Redressal)
NMDC has complied with the provisions relating to the constitution of InternalComplaints Committee under the Sexual Harassment of Women at Workplace (PreventionProhibition and Redressal) Act 2013. It has constituted Internal Complaints Committees atCorporate Office and its Projects. These Committees are headed by senior level womanofficers and have been constituted in accordance to the provisions of the SexualHarassment of Women at Workplace (Prevention Prohibition and Redressal Act 2013.
18. HUMAN RESOURCES DEVELOPMENT
At NMDC Limited people are our biggest strength. They are driven by purpose and arefully empowered to excel in the fast-changing environment. We continuously strive todevelop the right capabilities and skills needed for different ways of working and newentrepreneurial leadership qualities. To strengthen the People's agenda through HumanResources Development we are creating a more flexible and agile mindset in theorganisation. It involves more collaboration experimentation through test- and-learnembracing failure to gain insight. An 'owner's mindset' empowers our people to takeresponsibility for delivering business results. They are empowered and provided with theresources to develop innovations with speed. Our success depends largely on our ability toattract and retain the most talented individuals. We motivate and inspire them with amission and a purpose that resonates with the long-term aims and the values of theCompany.
Capability Building Programmes:
NMDC Limited believes that education training mentoring and ongoing skilldevelopment are each important elements contributing to the continual growth of ouremployees. NMDC provides world class learning opportunities to all levels of executives indifferent disciplines commencing with induction training for new Executive traineesCapability Building programmes to middle and senior level executives in technicaltechnomanagerial and managerial domains certification programmes project managementtraining and leadership development programmes through a planned calendar of trainingprogrammes with pre-identified training partners. In addition to the calendar ofprogrammes arranged in India executives are also being nominated for a vast number oftraining programmes seminars and workshops organized in India and abroad.
Capability Building at NMDC endeavours to create value for the business functionsthrough progressive learnings and building capabilities of employees. The key focus areasof the Human Resource Development Department at NMDC include enhancement of competenciesstrengthening the leadership pipeline cultural interventions to enhance collaboration andleveraging technology for learning & development. To enhance the competencies ofworkforce and make them future ready NMDC has partnered with various reputed TrainingPartners like ASCI Hyderabad COD Hyderabad ESCI Hyderabad ni-msme Hyderabad IPEHyderabad and ISB Hyderabad for programs aligned to the business requirements.
Corporate HRD has Organized 19 Nos of Customised In House Training Programmes covering308 Executives during 2018-19 171 Nos of External Training Programmes covering 494executives on various subjects 44 Nos of Executives were sent abroad for Foreign TrainingProgrammes / AMP.
General Management Programmes:
To develop leaders at various levels of Management Cadre 42 executives at differentlevel have undergone one week long training such as Advanced Leadership Programme andGeneral Management Programme in the centers of excellence like IIT -ISM Dhanbad and ASCIHyderabad
Advanced Management Programmes for Senior Management
To develop the perspectives and skills necessary for managing organization effectivelyin a rapidly changing business environment 10 senior executives in the level of Jt.GM andabove were nominated to attend Advanced Management Programs conducted by AdministrativeStaff College of India (ASCI) - Hyderabad Management Development Institute (MDI)-GurgaonIndian Institute of Public Administration (IIPA) - New Delhi SCOPE-New Delhi and LEADcentre - Gurgaon and IPE Hyderabad.
Succession Management Policy:
Board approved "Succession Management Policy" is in place in NMDC Limited tocreate Leadership Pipeline that would address the envisioned business growth upcomingvacancies in leadership roles due to Superannuation and Potential contingency scenarios ofthe future.
Assessment of Level of People Capability Maturity Model (PCMM):
The company has carried out the exercise of Assessment of the level of PeopleCapability Maturity Model (PCMM) in NMDC Limited and the framework has helped to guide ourorganization in improving processes for managing and developing human workforces. It alsohelped the organization to characterize the maturity of our workforce practices establisha program of continuous workforce development set priorities for improvement actionsintegrate workforce development with Process Improvement and to establish a culture ofexcellence.
Employee Engagement Initiatives for Young Executives (You Thrive):
To develop a sense of camaraderie amongst the Young Executives at NMDC who are fromacross the Projects/ Units/ROs You' Thrive' - A unique Engagement Initiative for YoungExecutives have been implemented at NMDC. Under the You Thirve Platform NMDC DiamondJubilee Young Executives Business Quiz is organised for the Young executives across theOrganisation.
Knowledge Management Framework (Samanvay):
Department of Public Enterprises (DPE) has developed Common Knowledge Management Portal"Samanvay" for 54 selected CPSEs in collaboration with ONGC with the intent togenerate a platform for all CPSEs to collaborate and learn.
The Knowledge Management Portal (https://samanvay. cpse.in) was smoothly implemented inNMDC Limited on which we can share our Best Practices Case Studies tacit knowledgebreakthrough innovations etc. This portal also has a separate section on Infrastructurefacilities such as R&D Training and Equipment etc which can be shared with otherCPSEs.
Strengthening of Quality Circles:
To further strengthen the Quality Circles Movement the company has given more thruston Quality Circles activities by adding 5% target population (workers Only). Total 43Quality Circles participated in CCQC out of which 37 Teams won Gold Awards and 6 Teamswon Silver Awards.
CMD Trophy for Young Managers:
With an Objective to hone the Technical and managerial excellence among the YoungManagers in NMDC by encouraging self development a new scheme " CMD's
Trophy for Young Managers" has been implemented across the Company. This scheme isa Competition based on a "Research Paper and Its presentation" for YoungManagers under the age of 40. This initiative has been designed to promote literature-survey research & innovative thinking among the Young Managers along with theirpresentation skills.
REWARDS & RECOGNITION FOR HRD INITIATIVES (2018-19)
NMDC was conferred Best Supporting Organization Award in Quality Movement during32nd Annual Chapter Convention held during 06-07 Sep 2018 in Hyderabad.
NMDC limited was conferred with Platinum Award from Green Tech Foundation NewDelhi for "Training Excellence -2018" for Customizing and Excelling in itsInnovative interventions in 8th Annual Green Tech HR Conference in Feb 2019.
NMDC Was Conferred with National level Best Supporting Organization Award inQuality Movement during 32nd Annual National Convention on Quality Circles (NCQC) heldduring 21-24 December 2018 in Gwalior.
ISTD New Delhi in FY 2018-19 conferred Certificate of Merit to NMDC limitedHyderabad for Innovative Training Practices adopted and Implemented in NMDC on 26thJune 2018 at SCOPE Complex New Delhi
NMDC Vigilance Department guides and facilitates impartial fair and transparentdecision making and gives priority to preventive vigilance with proactive measures.Department had taken several initiatives during the year. Emphasis was laid on adequatechecks and balances in the form of well-defined systems and procedures. Various programmeswere conducted for awareness on vigilance matters for the employees of the Corporation.The vigilance functionaries at the projects have conducted regular training classes forthe employees on the vigilance matters. Executives of Vigilance Department were nominatedfor training / workshops being organized in India.
Vigilance Department in NMDC was upgraded to ISO 9001:2015 standards of QualityManagement System (QMS) and certificate issued by the certifying authority was receivedwhich is valid up to Feb'2022.
As part of implementation of "Leveraging of Technology for transparency" inall the transactions details of contracts concluded above Rs. 10 lakhs all works awardedon nomination basis single tender basis above Rs. 1 lakh information regarding billpayments to the contractors etc. are provided on the company's website. Efforts toencourage e-procurement e-tender & e-auction are being made continuously.
NMDC has adopted implementation of Integrity Pact since November 2007. As per thesuggestions given by Vigilance
Department the threshold value has been brought down to 1.0 Crore w.e.f. 07.09.2018for both Procurement and Contracts as against the earlier threshold limit of Rs. 20 croresin case of Civil works and Contracts and Rs. 10 crores in case of Procurement on approvalof NMDC Board. The Integrity Pact has been entered into 193 contracts with a value of Rs.24445.82 Crores. All the contracts wherein the Integrity Pact was to be signed as per thethreshold limit was adhered to and more than 90% of the total values of the contracts arecovered under Integrity Pact.
The Vigilance Awareness Week 2018 was celebrated from 29.10.2018 to 03.11.2018.
Awareness among the employees to take Integrity Pledge online was created by sendingSMS. A link was also provided on NMDC website for taking online Integrity Pledge.
During the Vigilance Awareness Week as desired by the Commission Integrity Club wasformed at Schools and Colleges and competitions were conducted at Projects and HeadOffice. Competitions included Debate Panel Discussions Poster Competitions Elocutionand Essay Writing on topics like Eradicate corruption- Build a New India Moral Values andEthics My Vision - Corruption Free India Role of Youth in Fighting CorruptionImportance of morals and ethics in students etc. for inculcating greater awareness onprevention of corruption and anti-corruption measures. Similar competitions were also heldfor employees in HO and Projects.
Display of Banners and Slogans related to Vigilance Awareness were done at Offices andPlant / Mine areas and also at various places in the School / College premises during theentire Week.
Outreach activities like Seminar on "Combating Corruption - Technology as anenabler" and Workshop on Procurement through GeM Portal Marathon Race etc. at BIOMKirandul Complex Workshop on GST and Tendering at DIOM Donimalai Workshop on"Eradicate Corruption - Build a New India" at NISP Nagarnar etc. weresuccessfully conducted.
Shri N. Baijendra Kumar CMD NMDC in his address had urged for the need of seriouswill for zero tolerance for corruption effective implementation of laws publicresponsiveness towards corruption free society and ended his message by a quote "Itis better to light a candle than curse the darkness".
A Quarterly meeting of Vigilance Officers in NMDC is being conducted regularly and thelast meeting was conducted on 26th & 27th March 2019.
Initiatives / studies / system improvements / suggestions / recommendations made duringthe period:-
As per the Action Plan surprise and regular checks were conducted besides study offiles. Irregularities and omissions under the provisions of the rules are identified andimprovements in the systems suggested wherever required. Based on the observations ofVigilance recoveries from the contractor's bills for not conforming to the contractualterms were suggested.
The initiatives / system improvements studies / suggestions / recommendations madeduring the period are briefed as below:-
1) Manuals / Policies and its review / updation
i. Recruitment & Promotion
Given the history of issues cropped up during past phases of recruitment and promotionsand in view of recommendations given by Vigilance Department from time to time in thisconnection it was suggested to frame policy and detailed guidelines for Recruitment &Promotion. Accordingly NMDC Recruitment & Promotion Policy 2018 and the rules framedthere under in the Company was approved by the Competent Authority and O.O. No.1(7)/R/2015 dt. 12.09.2018 has been issued by Personnel Department to this effect.
ii. NMDC Fraud Prevention Policy
"NMDC Fraud Prevention Policy" with an objective to provide a system fordetection prevention and reporting of a fraud detected or suspected and handling of suchmatters pertaining to fraud was approved by NMDC Board on 13.11.2018.
iii. SOP for Diamond Mining Project Panna
The Standard Operating Procedure for handling of rough Diamonds incorporating thesuggestions given by Vigilance department was approved by Competent Authority and wascirculated on 17.09.2018.
iv. Amendment in CDA Rules
It was suggested to form a Committee consisting of members from Personnel Departmentrepresentatives from Contracts Materials Vigilance and Finance Departments.Representative from the Finance Department may head the Committee.
v. Rotation in sensitive posts
As per CVC guidelines rotation of Personnel in sensitive posts is being done onregular basis to avoid generation of vested interest.
vi. Online Vigilance Clearance System
Online Vigilance Clearance System for Executives below board level was started in July2017. During the Year 2018 strengthening of the system was done by carrying outmodifications to simplify the system and by incorporating various modules such asVigilance clearance for HBA deputation foreign travel etc.
vii. Online Complaint Registration Facility
Strengthening of Online Complaint Registration facility by incorporating additionalfeatures to authenticate the complainant was done and is made available on the NMDCwebsite.
viii. Panel of Inquiry Officers and Presenting Officers
It was suggested to develop a panel for Inquiry Officers and Presenting Officers byPersonnel Department in consultation with Vigilance Department and appropriate training isto be imparted to these Inquiry Officers as well as Presenting Officers so that anyinquiry is conducted impartially and as per norms of CVC and CDA Rules of NMDC.
In this regard a Workshop on "Disciplinary Matters" was conducted from 4thto 6th September 2018. The action to form Panel of Inquiry Officers andPresenting Officers is being taken up.
2) Leveraging Technology for Transparency
i. Surveillance of weighment sampling & Transport in Mining Areas
On Vigilance observation it was suggested to initiate urgent steps for installingsurveillance equipment to cover round the clock the area of weighment instruments as wellas whole process of sampling and analysis for quality control at Kirandul BacheliDonimalai and Kumaraswamy Mines. Further it was suggested that the non-working Automaticsampling machine at Kirandul Complex should be brought into service and if any problem isthere in using it a committee comprising Personnel from Geology Mining Mechanical andVigilance Departments in addition to personnel from concerned manufacturer of machine beconstituted and in their presence its functioning be tested. Further
it was suggested to install the weightometer on NMDC conveyor instead of Essar Conveyorat Kirandul Complex.
Mine Transport and Surveillance System (MTSS) has been installed in all ProductionWeigh Bridges of Donimalai Mines and MTSS is proposed to be installed at Mines ofBailadila.
To sort out the issue of non-working Automatic Sampling Machine committee has beenformed and the issue is being taken up. Weightometer has been installed on NMDC Conveyorfor weighment of material dispatched to Essar.
ii. Vigilance Inspection Management System (VIMS)
Vigilance Inspection Management System (VIMS) a software application has beendeveloped to facilitate processing of the studies/ inspections carried out by theVigilance Officers and action taken there upon.
iii. System for Online submission of Certificates
System for online submission of Certificate regarding award of contracts on nominationbasis has been implemented.
iv. Study on Estate Matters
Based on an elaborate and corrective study Vigilance department had submittedsuggestions for streamlining the Estate Matters so that valuable resources like MiningAreas Potential Mines (Green field areas) Boundaries etc. are not embroiled in legaltangle.
In view of the Vigilance recommendations Domain experts were appointed for dealing withmatters pertaining to Estate in the organization.
v. Sanctioned posts and Vacancy position in NMDC
In order to bring in transparency it was suggested that total sanctioned posts andvacancy position along with details such as place designation of the sanctioned as wellas vacancy position may be exhibited on NMDC website in public domain.
Action in this regard is being taken up.
20. DIRECTORS' RESPONSIBILITY STATEMENT
Pursuant to Section 134(5) of the Companies Act 2013 with respect to DirectorsResponsibility Statement it is hereby confirmed that:-
(a) in the preparation of the annual accounts for the financial year ended 31.03.2019the applicable accounting standards had been followed along with proper explanationrelating to material departures;
(b) the Directors had selected such accounting policies and applied them consistentlyand made judgments and estimates that are reasonable and prudent so as to give a true andfair view of the state of affairs of the Company at the end of the financial year and ofthe profit and loss of the Company for that period;
(c) the Directors had taken proper and sufficient care for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;
(d) the Directors had prepared the annual accounts on a going concern basis; and
(e) the Directors had laid down internal financial controls to be followed by theCompany and that such internal financial controls are adequate and were operatingeffectively.
(f) the Directors had devised proper systems to ensure compliance with the provisionsof all applicable laws and that such systems were adequate and operating effectively.
21. DECLARATION ON MEETING THE CRITERIA OF INDEPENDENCE AS PER THE COMPANIES ACT 2013AND SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS 2015.
The Independent Directors have given a declaration on meeting the criteria ofindependence as stipulated in Section 149(6) of the Companies Act 2013 and Regulation25(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 in theFY 2019-20. The Board of Directors at its 519th meeting held on 28.05.2019 hastaken on record the declaration as made by the Independent Directors.
22. COMPANY'S POLICY ON DIRECTORS APPOINTMENT AND REMUNERATION
All Directors are appointed by Govt. of India including fixation of their remuneration.
23. NUMBER OF BOARD MEETINGS HELD
During the year under review 8 meetings of the Board were held. For further detailsreference may kindly be made to Corporate Governance Section of the Annual Report.
24. NMDC STRATEGIC MANAGEMENT PLAN (NMDC VISION 2025).
A long-term strategic management plan (SMP) 'Vision 2025' has been formulated whichenvisages iron ore
production capacity of 67 MTPA by 2021-22. This expansion plan includes brownfieldexpansion of existing mines and developing greenfield mines in partnership withChhattisgarh Mineral Development Corporation. A joint venture of NMDC & CMDC (NCL) isin process of starting operations from Dep-13 Iron Ore Mine in Bailadila Region.
The above expansion plan of NMDC takes into account the high prospects of the growth ofthe Indian Steel Industry in the coming years with several factors indicating the samesuch as thrust of the government on infrastructure development growing urbanizationsmart cities housing for all extensive plans of rail network expansion improving powergeneration etc. Low per capita steel consumption in the country at 63 kg vis-a-vis theworld average of 208 kg in 2016 has increased to 70.9 Kg and 224 Kg in 2018 whichindicate the huge growth potential the Indian steel industry has.
In the financial year 2018-19 the Company has progressed significantly on variousactivities to enhance its production capacity and there is extensive progress in theconstruction of the fifth line in Screening Plant II Rapid Wagon Loading System (RWLS-I)and Site Development work for New Screening Plant (SP-III) at BIOM Kirandul Complex. Workon the 5th line in Screening Plant Dep-5 & up-gradation of the downhillconveyor system in BIOM Bacheli Complex is likely to commence in 2019-20.
To augment the evacuation capacity from Bailadila sector many projects & schemesare taken up like doubling of KK line Rowghat-Jagdalpur line Slurry Pipeline etc.Doubling of KK line is being executed by Railways as a deposit work. In 2017-18 theentire Section I Jagdalpur to Silakjhori 45.5 km of railway line was completed and wasopened for traffic. In 2018-19 the section between Silakjhori & Kumharsodra (9.2 Kms)was completed in October 2018 and opened for traffic. The completion of this project willaugment the evacuation capacity of Bailadila sector through Railway line from 28 MTPA to40 MTPA.
Activities for Phase-1 of Slurry Pipe Line has also been initiated. This includes 2MTPA capacity Ore Processing Plant (OPP) at Bacheli 15 MTPA capacity Slurry PipelineSystem (130 km) from Bacheli to Nagarnar and 2 MTPA capacity Pellet Plant at Nagarnar.Site Levelling work for Pellet Plant at Nagarnar & Ore processing plant has beenalmost completed.
Besides the expansion plan the SMP also envisaged the introduction of systemicinterventions in six strategic transformation areas - Business OperationsSustainability Capital Projects Human Resource and IT. NMDC has implementedLicense-to-Operate (the computer-based model in which all the statutory approvals will bebrought under one umbrella) and implementation of ERP has also started across all MiningProjects and Steel Plant. Implementation of Mines Transport Surveillance System (MTSS)-Weighbridge automation/ Virtual Fencing/ Geo Fencing/ GPS/ Proximity Warning Device fordumpers/
CCTV Surveillance/ Wireless Networking has been completed at Donimalai and will beimplemented across all Mines in a phased manner.
NMDC has also published its second Sustainability Report "Expanding Horizons"as per the Global Reporting Initiative (GRI) Standards. The report captures theinitiatives taken by NMDC over the years in Economic Environmental and Social aspects.The report also ushers in a new resolve in the organization to take SustainableDevelopment to greater heights. The report highlights the efforts done by NMDC intransforming people and societies in the vicinities of its operating mines. Five Mines ofNMDC Donimalai Bailadila Deposit-5 Deposit -10 Deposit-14 and Deposit- 11C have alsobeen conferred 5-star ratings by Indian Bureau of Mines which is testimony to theSustainable practices deployed by NMDC ushering in a new resolve in the organization totake Sustainable Development to greater heights by leveraging the efforts in achievingtriple bottom line excellence and our commitment to achieve greater heights in future tocome.
25. DETAILS OF DIRECTORS OR KMP APPOINTED OR RESIGNED DURING THE YEAR.
The following Directors ceased to be Directors on the Board of the Company:-
| ||upto |
|i) Shri D.S. Ahluwalia Director (Finance) ||30.04.2018 |
|ii) Shri Sunil Barthwal Govt. Nominee Director ||23.05.2018 |
|iii) Shri Puneet Kansal Govt. Nominee Director ||15.07.2018 |
|iv) Shri Rajesh Kumar Mangal Independent Director ||12.11.2018 |
|v) Shri Bahram Navroj Vakil Independent Director ||18.06.2018 |
The following Directors were appointed on the Board of the Company:-
| ||w.e.f. |
|i) Shri Amitava Mukherjee Director (Finance) ||20.11.2018 |
|ii) Smt. Rasika Chaube Govt. Nominee Director ||16.07.2018 |
The Board places on record its deep appreciation for the valuable contribution made byShri D.S. Ahluwalia Shri Sunil Barthwal Shri Puneet Kansal Shri Rajesh Kumar Mangal andShri Bahram Navroj Vakil during their tenure on the Board of the Company.
a. Statutory Auditors
On the advice of the Comptroller and Auditor General of India New Delhi your Companyappointed the following firms of Chartered Accountants as Statutory Auditors of theCompany for the year 2018-19
|Unit ||Statutory Auditors |
|1 ||Head Office |
R & D Center SIU & Consolidation
|M/s TEJ RAJ & PAL Chartered Accountants Plot No. 1278/2256/4294 Govinda Prasad Bomikhal Bhubaneswar- 751 010 Odisha |
|2 ||Kiradul Complex Bacheli Complex NISP Jagdalpur Vizag Office ||M/s O P Totla & Co Chartered Accountants C-16 First Floor Shyam Market Near LIC Building. Pandri Raipur :- 492 004 (CG) |
|3 ||Donimalai Complex ||M/s Vijay Panchappa & Co Chartered Accountants Maruthi Complex II Floor Line Bazar Dharwad Dharwad-580 001 Karnataka |
|4 ||Panna Project ||M/s Amit OM & Co Chartered Accountants 2nd Floor Dr. Bajaj Complex 17/12 Tashkhand Margh-SP Next to PVR Campus Civil Line Allahabad-211 001(UP) |
b. Cost Auditors
M/s. Tanmaya S Pradhan & Co Cost Accountants 'SWASTHAN' Brooks Hill SambalpurOdisha- 768001
c. Secretarial Auditors
M/s D. Hanumanta Raju & Co.
Company Secretaries B-13 F1 P.S. Nagar Vijaynagar Colony Hyderabad - 500 057
27. IMPLEMENTATION OF RIGHT TO INFORMATION ACT 2005
All the provisions of the RTI Act 2005 are being complied with by the Company. In orderto ensure timely disposal of RTI applications PIOs have been appointed in each unit ofNMDC. A close monitoring of the RTI applications received is done to ensure that thereplies are sent in time.
The details of RTI applications received in Head Office and all the Units of theCompany during the period 01.04.2018 to 31.03.2019 are as follows:
|Month ||No of Applications received ||Information |
|April ||23 ||17 ||1 |
|May ||29 ||13 ||3 |
|June ||20 ||12 ||0 |
|July ||19 ||17 ||0 |
|August ||23 ||34 ||1 |
|September ||15 ||15 ||0 |
|October ||17 ||7 ||2 |
|November ||7 ||9 ||0 |
|December ||15 ||3 ||0 |
|January ||14 ||19 ||0 |
|February ||32 ||19 ||0 |
|March ||14 ||34 ||0 |
|TOTAL ||228 ||199 ||7 |
Pending applications as on 01.04.2019: 4 Nos.
Eighteen (18) applications transferred u/s 6(3) to other PIOs during the FY 2018-19.
28. DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS OR COURTS ORTRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY'S OPERATION IN FUTURE - NIL
29. AWARDS RECEIVED BY THE COMPANY
The details of awards received by the Company are as follows:-
i) NMDC received the prestigious S&P Platts Global Metal Award 2018 under CSRcategory organized by Platts at London.
ii) NMDC received Hindustan Ratan Award in the category of Best Financial PerformingPSE.
iii) NMDC received Rajbhasha Samman (First Prize) amongst PSEs of Ministry of Steelduring the meeting of Hindi Advisory Committee of Ministry of Steel.
iv) NMDC received Finalist Award in "Cloud Migration & Data CentreOperation" at Webscale Conference organized by Data Centre Dynamics Bengaluru.
v) NMDC received "Dun & Bradstreet PSU Award 2018 under the sector Mining -Metals & Minerals category" organized by Dun & Bradstreet.
vi) NMDC's Bacheli Complex received "Tata Steel Mining Sustainability Award"for the year 2017-18 during 52nd AGM of Federation of Indian Mineral Industries.
vii) NMDC received "India Green Energy Award - 2018" in the category ofOutstanding Renewable Energy Generation Projects by Public Sector-Wind Organized by IndianFederation of Green Energy (IFGE).
viii) NMDC received Rajbhasha Award (2nd Prize) in PSU category of 'C' Region.
ix) NMDC received four Awards from Public Relations Society of India(PRSI) in thecategory of Corporate Sustainability Report CSR Project of Women Empowerment Best PSUOrganization and Corporate Film.
x) NMDC received Quality Circle Forum of India (QCFI) Award in the category of"Best Supporting Organization Award in Public Sector".
xi) NMDC received two Governance Now PSU awards for Best Performer (Financial) and BestPerformer (CSR) under Navratna category.
xii) NMDC received Swachh Abhiyaan Award (First Prize) amongst PSEs of Ministry ofSteel.
xiii) NMDC received Public Relations Council of India (PRCI) Excellence Awards 2019 forits CSR Brochure Corporate Advertising Campaign Corporate Diary 2017 Wall Calender& Television Commercials.
xiv) NMDC awarded with 8th Annual Greentech HR Platinum Award 2018 underTraining Excellence category during 8th Annual Greentech HR conference.
30. VIGIL MECHANISM
NMDC being a PSU the guidelines of Central Vigilance Commission (CVC) are applicablewhich provides adequate safeguard against victimization of the employees. The Board ofDirectors at its 451st meeting held on 20.09.2012 approved the internal WhistleBlower Policy of NMDC. In terms of the said Policy CVO NMDC has been designated as theNodal Officer for implementation of Internal Whistle Blower Policy. The internal WhistleBlower Policy has also been uploaded on the website and intranet of the Company forinformation of all the employees. In terms of Whistle Blower Policy the ScreeningCommittee will comprise of CMD and Chairman of Audit Committee. No complaint has beenreceived by the Company under Whistle Blower Mechanism for the year under review. In orderto spread awareness about Whistle Blower Policy awareness programmes were conductedduring the Vigilance Awareness Week 2018 at Projects and Head Office.
31. DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SECTION 143(12) OTHER THANWHICH ARE REPORTABLE TO CENTRAL GOVT - NIL
32. MOU SIGNED BETWEEN NMDC AND CHIPS RAIPUR
An MoU has been signed on 24.04.2018 between NMDC and Government of Chhattisgarhthrough CHiPS Raipur for innovation in Information Technology and Electronic SystemsDriven Automation in the area of Mining and Plant.
The following initiatives have been taken up as part of this MOU:-
i. Fleet Management System (FMS)
ii. Digital Secretariat Software implementation
iii. Draft of IT policies and IT roadmap for NMDC
iv. Quickwins that can be implemented in the short term that include:
a. Conveyor or Belt Monitoring System
b. Real time Energy Monitoring
c. Workers Health & Safety
d. Asset Management System
v. Enterprise Data Hub
vi. ERP Implementation
33. BUYBACK OF EQUITY SHARES OF THE COMPANY
The Board of Directors of the Company at its meeting held on 8th January2019 approved buyback of not exceeding 102040815 (Ten Crore Twenty Lakh Forty ThousandEight Hundred Fifteen) fully paid-up equity shares of face value of Rs. 1 each(representing 3.23% of the total number of Equity Shares in the paid-up share capital ofthe Company) from all the existing shareholders / beneficial owners of Equity Shares as onthe record date i.e. 18th January 2019 on proportionate basis through the"Tender Offer" route at a price of Rs. 98 (Rupees Ninety Eight only) per EquityShare payable in cash for an aggregate consideration not exceeding Rs. 1000 Crore (RupeesOne Thousand Crore).
The Buyback shall be not exceeding 10% of the aggregate of fully paid up share equitycapital and free reserves of the Company as per audited financial statements of theCompany for the financial year ended 31st March 2018.
Public Announcement dated 8th January 2019 was published in newspapers on 10thJanuary 2019. The Draft Letter of Offer (DLOF) dated 15th January 2019 wasfiled with SEBI on 17th January 2019 for comments. The Letter of Offer dated 4thFebruary 2019 was despatched to the Shareholders as on record date. Buyback offer openedon 13th February 2019 and closed on 27th February 2019.
All valid bids were considered for the purpose of acceptance in accordance with theBuyback Regulations. The total number of Equity Shares bought back under the Buyback Offerare 102040815 at a price of Rs. 98 per Equity Share. The total cash outflow in theBuyback of Equity Shares is Rs. 9999999870 (Rupees Nine Hundred Ninety Nine CroreNinety Nine Lakh Ninety Nine Thousand Eight Hundred Seventy only) excluding transactioncosts viz. brokerage applicable taxes such as securities transaction tax GST stampduty etc. Government of India received Rs. 7696512222 out of the buyback transaction.
The settlement of all valid bids was completed on 7th March 2019. Theextinguishment of 102040815 Equity Shares accepted under the Buyback has been completedon 8th March 2019. The paid-up capital of the Company post Buyback is Rs.3061849659 (pre buyback paid-up capital was Rs. 3163890474). Post completion of theBuyback the share of Govt. of India in NMDC stands at 72.28%.
The details of Buyback offers received are summarized as under:
|Category of Investor ||Number of Equity Shares reserved in Buyback ||Number of Valid Bids ||Total Equity Shares validly tendered ||% Response |
|Reserved category for Small Shareholders ||15306123 ||17725 ||13981064 ||91.34 |
|General category of other Shareholders ||86734692 ||886 ||125123856 ||144.26 |
|TOTAL ||102040815 ||18611 ||139104920 ||136.32 |
34. INCORPORATION OF NMDC CSR FOUNDATION
During the year under review a 100% subsidiary of the Company by the name 'NMDC CSRFoundation' was incorporated on 10th May 2018 under Section 8 of the CompaniesAct 2013 (Company Limited by Shares Not for Profit). The Authorised and Paid-up ShareCapital of the Company is Rs. 2 Crores. The objects of the Company are to undertake theCSR activities in terms of Schedule VII of the Companies Act 2013 and the CSR activitiesas provided in the MOA of the Company.
35. FORMAL ANNUAL EVALUATION OF BOARD COMMITTEES AND INDIVIDUAL DIRECTORS.
All the Directors on the Board of NMDC are appointed by Govt. of India. In the previousfinancial year as desired by Ministry of Steel Govt. of India assessment / evaluation ofperformance of 6 Non-official Directors (Independent) was submitted to Ministry of SteelGovt. of India.
Ministry of Steel Government of India vide Order No.1/10/2015-BLA(Vol-III)(Pt) dated19.11.2018 has communicated that the following officials are re-appointed as Non-OfficialIndependent Directors on the Board of NMDC Ltd. for a period of one year from the date ofcompletion of their existing tenure or until further orders whichever is earlier:-
i) Shri A.K. Srivastava
ii) Smt. Bhagwati Mahesh Baldewa
iii) Shri Pradip Bhargava
iv) Dr. Syamal K. Sarkar
v) Shri S.M. Nigam
36. IMPLEMENTATION OF RISK MANAGEMENT POLICY
The Board at its 442nd meeting held on 19.01.2012 has approved the Risk Assessment andRisk Mitigation Policy / Enterprise Risk Management (ERM) of the Company. Accordingly theCompany has constituted a Board level Risk Management Committee comprising of FunctionalDirectors (excluding CMD). The Company as a part of its current Risk Management Policy hasidentified top 15 Risks That Matters (RTMs) and documented Mitigation Plan / Strategy forthe same
During the year under review four meetings of the Board level Risk ManagementCommittee were held.
37. DIVIDEND DISTRIBUTION POLICY
The Board of Directors has approved Dividend Distribution Policy which has beenuploaded in the website of the company under the link https://www.nmdc.co.in/Docs/Dividend%20Distribution%20 Policy.pdf.
38. REPORT ON MANAGEMENT DISCUSSION AND ANALYSIS
A Report on Management discussion and Analysis as required in terms of Regulation 34 ofSEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 is at Annexure-I.
39. REPORT ON CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGN EXCHANGE EARNINGSAND OUTGO UNDER THE COMPANIES (ACCOUNTS) RULES 2014 IS AT - ANNEXURE-II.
40. CORPORATE GOVERNANCE
Report on Corporate Governance is at Annexure-III
41. EXTRACT OF ANNUAL RETURN UNDER SECTION 92(3) OF THE COMPANIES ACT 2013.
The extract of Annual Return as provided under SubSection (3) of Section 92 read withRule 12(1) of the Companies (Management & Administration) Rules 2014 is atAnnexure-IV. The extract is also placed on the website of the company under the linkhttps://www.nmdc.co.in/ Financial%20 Information/Default.aspx
42. BUSINESS RESPONSIBILITY REPORT
In compliance with Regulation 34 of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 Business Responsibility Report (BRR) is at Annexure-V.
43. SECRETARIAL AUDIT REPORT
Secretarial Audit Report in Form No.MR-3 pursuant to Section 204(1) of the CompaniesAct 2013 and Regulation 24A SEBI (Listing Obligations and Disclosure Requirements)Regulations 2015 is at Annexure-VI.
44. GLOBAL COMPACT - COMMUNICATION ON PROGRESS
Report on compliance with principles of Global Compact is at Annexure-VII.
45. STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT OF SUBSIDIARIES /ASSOCIATE COMPANIES / JOINT VENTURES (FORM AOC-1) IS ENCLOSED AT ANNEXURE-VIII.
46. REPORT ON CSR ACTIVITIES
Report in terms of the Companies (Corporate Social Responsibility Policy) Rules 2014is at Annexure-IX.
47. RECOMMENDATIONS MADE BY THE COMMITTEE ON PAPERS LAID ON THE TABLE (RAJYA SABHA) INITS 150TH REPORT - DETAILS TO BE PROVIDED IN THE ANNUAL REPORT.
Details to be provided in the Annual Report in terms of recommendations made by theCommittee on Papers laid on the Table (Rajya Sabha) in its 150th Report isenclosed at Annexure-X.
Your Directors gratefully acknowledge the support cooperation and guidance receivedfrom the
Ministry of Steel Ministry of Mines and Ministry of Forests & Environment andother Departments of Government of India and the State Governments of Andhra PradeshChhattisgarh Karnataka Madhya Pradesh Jharkhand and Telangana.
Your Directors acknowledge the support extended by the valued and esteemedinternational and domestic customers Shareholders stakeholders MMTC Chennai Port TrustVisakhapatnam Port Trust Railways and other Departments of the Central and StateGovernments. We believe that our long-term success is dependant on our domestic customerrelationship and responsiveness. We will do everything possible to provide our customersbetter timely and value added services.
The success of your Company is due to the commitment and dedicated efforts of themanagers and employees at all levels. Your Directors place on record their appreciationand also acknowledge the support and co-operation of All India NMDC Workers' Federationand their members for the smooth functioning of the Company's operations.
|Place: Hyderabad ||N. BAIJENDRA KUMAR |
|Date: 16th July 2019 ||Chairman-cum-Managing Director |