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NMDC Ltd.

BSE: 526371 Sector: Metals & Mining
NSE: NMDC ISIN Code: INE584A01023
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OPEN 120.65
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VOLUME 405509
52-Week high 131.85
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P/E 5.58
Mkt Cap.(Rs cr) 34,757
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OPEN 120.65
CLOSE 119.60
VOLUME 405509
52-Week high 131.85
52-Week low 70.27
P/E 5.58
Mkt Cap.(Rs cr) 34,757
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

NMDC Ltd. (NMDC) - Director Report

Company director report

Dear Members

Your Directors are pleased to present the 64th Annual Reporton the performance of your Company together with the Audit Report and FinancialStatements for the year ended 31st March 2022 and the Report thereon by theComptroller and Auditor General of India.

1.0 (A) STATE OF COMPANY AFFAIRS & PERFORMANCE HIGHLIGHTS

During the year under review the Company has recorded turnover of Rs25882 crores achieved Profit Before Tax (PBT) of Rs 12981 crores and achieved Profitafter Tax (PAT) of Rs 9398 crores.

The major performance highlights are summarized as under:-

• The company achieved production of 42.19 MT and sales of 40.56MT.

• Turnover for the year under review was Rs 25882 crores asagainst Rs 15370 crores in the previous financial year 2020-21 - an increase of 68.39%.

• Profit before tax (PBT) from continuing operations was Rs 12981crores compared to Rs 8901 crores in the previous financial year 2020-21- an increase of45.84%.

• Profit after tax (PAT) was Rs 9398 crores compared to Rs 6253crores in the previous financial year 2020-21 - an increase of 50.30%.

• Net worth of the Company stood at Rs 34844 crores as on31.03.2022 - 17.10% higher than the previous financial year 2020-21 to Rs 29756 crore.

• The Company declared an Interim Dividend of Rs 14.74 per sharefor FY 2021-22.

• Capital expenditure of Rs 2849 crore has been incurred duringthe year under review.

• The Board of Directors at its 539th meeting held on 13.07.2021inter alia approved the Scheme of Arrangement between the Company and NMDC Steel Limitedand their respective creditors and shareholders entailing inter-alia demerger of NagarnarIron & Steel Plant (NISP).

• The Promoter (President of India acting through and representedby the Ministry of Steel Government of India) has sold 219502378 (7.49% equity shares@ Rs 165/- per share and raised an aggregate net amount of Rs 3651.37 crores through offerfor sale.

• The Promoter (President of India acting through and representedby the Ministry of Steel Government of India) has sold 147942 (0.005%) equity shares @Rs 165.50 per share and raised an aggregate amount of Rs 244.84 crores through EmployeeOffer For Sale.

(B) Scheme of Arrangement between NMDC Limited and NMDC Steel Limitedand their respective shareholders and creditors (Demerger of NISP).

The Board of Directors at its 532nd meeting has inter aliaaccorded in-principle approval for demerger of NMDC Iron & Steel Plant (NISP)Nagarnar.

A 100% subsidiary company by the name NMDC Steel Ltd. having itsregistered office at Nagarnar CG has been incorporated on 02.01.2015 as a Private LimitedCompany. The transfer of NISP shall be by way of a scheme of demerger into the whollyowned subsidiary company as incorporated by the name NMDC Steel Ltd.

The Board of Directors at its 539th meeting held on13.07.2021 inter alia approved pursuant to the provisions of Section 230 to 232 of theCompanies Act 2013 and the Companies (Compromises Arrangements and Amalgamations) Rules2016 and other applicable provisions if any of the Companies Act 2013 and / or anystatutory modification(s) or re-enactment thereof to the Scheme of Arrangement between theCompany and NMDC Steel Limited and their respective creditors and shareholders entailinginter-alia demerger of the Demerged Undertaking (as defined under the Scheme) of theCompany into Resulting Company on a going concern basis as per the terms and conditionsmentioned in the Scheme.

Rationale for the Scheme of Arrangement

Government of India has charted a road map to augment India's steelproduction to 300 MTPA by 2025. To fulfill this vision green-field steel plants are beingpromoted through Special Purpose Vehicles ("SPVs") in mineral rich states ofChhattisgarh Jharkhand Karnataka and Odisha. It has been envisaged that the SPV beingset up at these states would act as a facilitator and developer for the steel plant. Itwould acquire the required land obtain statutory clearances for setting up the plantorganize water & power allocation for the site along with dedicated raw materialsupply agreement. On completion of the above activities the SPV would invite for suitableinvestor/s who would construct develop and operate the steel plant.

As part of expansion value addition and forward integration programmeand also in consonance with the desire of the Government of India and Government ofChattisgarh NMDC Limited is setting up a 3 MTPA capacity Greenfield integrated steelplant ("NMDC Iron & Steel Plant" or "NISP") at Nagarnar located16 km from Jagdalpur in Chhattisgarh State.

The decision to construct the NISP was taken keeping in view withlinkage with iron ore reserves and availability of investable surplus. NISP has progressedsignificantly further than the other Steel SPVs. The only difference is that NISP is beingdeveloped and constructed within NMDC Limited as opposed to being developed in an SPV.Also NMDC Vision 2025 whilst mentioning forward integration has specifically stated thatits role would be that of a developer for steel plants and at suitable time inviteinvestors to commission and operate the plants. NMDC is therefore considering proposedscheme to add more value to Company's stakeholders by demerging NISP into a separatecompany and subsequently inviting investors.

To this effect in October 2020 the Cabinet Committee on EconomicAffairs gave its 'inprinciple' approval to the demerger of NISP from NMDC Limited andstrategic disinvestment of the NMDC Steel Limited by selling entire Government of Indiastake in the NMDC Steel Limited to a strategic buyer.

Accordingly to achieve the above objective the Board of Directors ofNMDC Limited have decided to make requisite applications and/or petitions before theMinistry of Corporate Affairs Government of India under Sections 230 to 232 of the 2013Act (hereinafter defined) and other applicable provisions for the sanction of the Scheme.

The broad contours of the scheme of demerger are briefly outlined asunder:-

• Appointed Date: April 01 2021 or any such other date as may bedecided by the Ministry of Corporate Affairs Government of India ("MCA");

• Effective Date: Date on which the certified copies of the orderof the MCA sanctioning the Scheme are filed with the concerned Registrar of Companies;

• Scheme: Transfer of Demerged Undertaking:

Under the Scheme the NMDC Iron & Steel Plant at NagarnarChhattisgarh ( "Demerged Undertaking") shall be demerged from NMDC Limited("NMDC") into NMDC Steel Limited ("NSL") which is currently a whollyowned Subsidiary of NMDC;

• Scheme: Transfer of Assets and Liabilities:

All assets and liabilities of the Demerged Undertaking except certainassets/liabilities as specified under the Scheme will be transferred to NSL at book valueappearing in accounts of NMDC on the Appointed Date;

• Consideration: As a consideration for transfer of DemergedUndertaking to NSL NSL shall without any further application act instrument or deedissue and allot to all the equity shareholders of NMDC whose names appear in the registerof members as on the Record Date (defined below) 1 (One) equity share of NSL of INR 10each fully paid-up for every 1 (One) equity shares held in NMDC of INR 1 each fullypaid-up.

No cash consideration will be paid to NMDC on account of the transferof Demerged Undertaking and related assets / liabilities. Accordingly demerger of theDemerged Undertaking from NMDC into NSL will be tax neutral on NMDC as NMDC will notreceive any cash consideration;

• Record Date: Date to be fixed by the Board of Directors of NSLand NMDC for determining the shareholders of the NMDC to whom fully paid up equity sharesof the NSL will be issued pursuant to the Scheme;

• Increase in Authorized Share Capital:

Upon the Scheme becoming effective the authorized share capital of NSLwill automatically stand increased to INR 30000000000 (Indian Rupees Three ThousandCrores);

• Cancellation of existing shares of NSL: All the existing sharesof NSL currently held by NMDC shall stand cancelled;

• Mirror Shareholding: After the Scheme becomes effective theshareholding of NSL will 'mirror' that of NMDC; Accordingly upon the scheme beingeffective the issued subscribed and fully paid-up equity share capital of the resultingcompany NMDC Steel Ltd. shall be 2930605850 equity shares of INR 10/- to reflect thesame / equal number of equity shares as NMDC and mirror shareholding pre the proposeddemerger.

• Listing: The new shares of NSL which are issued and allotted tothe shareholders of NMDC shall be listed on BSE Limited National Stock Exchange of IndiaLimited and Calcutta Stock Exchange Limited after obtaining the requisite approvals;

• Employees: All staff / workmen / employees engaged or employedin relation to Demerged Undertaking as identified by the board of NMDC shall be deemed tohave become staff / workmen / employees of NSL from the Appointed Date;

• Shared Assets: NMDC and NSL shall enter into shared servicesagreements and longterm supply agreement as may be necessary on terms and conditionsthat may be agreed between NMDC and NSL and on payment of consideration on an arm's lengthbasis and which is in the ordinary course of business;

• Costs Charges and Expenses: All costs charges taxes includingduties levies and all other expenses if any of NMDC and NSL arising out of or incurredin connection with implementing this Scheme shall be borne by NMDC;

• Conduct of Business: From the Appointed

Date and up to the Effective Date NMDC shall be deemed to have beencarrying on and shall carry on business and activities with respect to the DemergedUndertaking for and on account of and in trust for NSL.

The Scheme of Arragement has been filed with National Stock Exchange ofIndia Ltd BSE Ltd and The Calcutta Stock Exchange Ltd.

Joint Petition dated 18.01.2022 between NMDC Ltd. (Applicant /Demerged Company) and NMDC Steel Ltd. (Applicant / Resulting Company) has been filedbefore the Ministry of Corporate Affairs Govt. of India vide File No.24/1/2022-CL-III u/s230 - 232 of the Companies Act 2013 read with Govt. of India Notification No.GSR.582(E)dated 13.06.2017. Pursuant to an application by the Authorized Signatories of both thecompanies.

The Demerged Company M/s NMDC Limited and Resulting Company M/s NMDCSteel Limited have broadly prayed for relief (s) as detailed below:-

(i) To give directions for convening the meeting of the equityshareholders of the Demerged Company to consider and if though fit to approve with orwithout modifications(s) the Scheme of Arrangement between NMDC Ltd. and NMDC Steel Ltd.and their respective shareholders and creditors (the Scheme)

(ii) To dispense with the requirement of convening the meeting ofsecured creditors of the Demerged Company

(iii) To give directions for convening the meeting of the unsecuredcreditors of the Demerged Company to consider and if thought fit to approve with orwithout modifications(s) the scheme

(iv) To dispense with the requirement of convening the meeting ofequity shareholders of Resulting Company.

(v) To dispense with the requirement of convening the meeting of theunsecured creditors of the Resulting Company.

(vi) Directing issuance of notice of meetings of equity shareholdersand unsecured creditors of the Demerged Company.

(vii) Directing publications of advertisement of the notices of themeeting of the equity shareholders and unsecured creditors of the Demerged Company in thenewspapers namely Times of India (English Edition) Dainik Bhaskar (Hindi Edition) andEenadu (Telugu Edition)

(viii) Directing service of Notice of the application on the RegionalDirector (South East Region) Regional Director (North Western Region) Registrar ofCompanies Hyderabad Registrar of Companies

Chhattisgarh and Jurisdictional Income Tax Department.

MCA after considering the prayers and submissions made by the ResultingCompany directed that the meeting of equity shareholders of the Resulting Company isdispensed with since the Resulting Company has furnished the requisite consentaffidavit(s) of all the equity shareholders.

The Demerged Company has submitted that there was only one securedcreditor as on 30.09.2021 in the name of State Bank of India and the said Bank hasfurnished its consent affidavit for the proposed scheme. Hence the meeting of securedcreditor of the Demerged Company was also dispensed.

The Resulting Company has submitted a certificate from an independentChartered Accountant stating that there are no/nil secured creditor as on 30.09.2021. Withregard to the unsecured creditor the Resulting Company has furnished a certificate froman independent Chartered Accountant stating that there are two unsecured creditors as on30.09.2021 and both the unsecured creditors of the Resulting Company have furnished theirconsent affidavit to this ministry. Hence the meeting of the secured and unsecuredcreditors of the Resulting Company was also dispensed.

Pursuant to the Ministry of Corporate Affairs Order dated 11.04.2022 ameeting of the Equity Shareholders of the Demerged Company has been convened on

07.06.2022 for considering the Scheme of Arrangement and Smt. RasikaChaube Additional Secretary Ministry of Steel Government of India has been appointed asthe Chairperson of the Equity Shareholders meeting. Due to unforeseen circumstances(unavailability of Chairperson) and due to unavailability of quorum the meeting has beenadjourned to 28.06.2022.

Pursuant to the Ministry of Corporate Affairs Order dated 11.04.2022 ameeting of the unsecured creditors of the Demerged Company whose debt is of a value morethan rupees one (1) crore as on 30.09.2021 has been convened on 07.06.2022 for consideringthe Scheme of Arrangement. Smt. Rasika Chaube Additional Secretary Ministry of SteelGovernment of India has been appointed as the Chairperson of the unsecured creditorsmeeting. The meeting was duly convened on 07.06.2022 for seeking the approval of theunsecured creditors in the matter of Scheme of Arrangement and due to unavailability ofthe Chairperson appointed by MCA the meeting of the unsecured creditors is duly adjournedto 28.06.2022.

The Demerged Company NMDC Ltd. published the newspaper advertisementregarding the adjournment of the meetings of Equity Shareholders and Unsecured Creditorsin Times of India Eenadu and Dainik Bhaskar stating the adjourned meetings to be held onTuesday 28.06.2022 at the same time and through the same means (i.e. VC / OAVM).

(C) Extension of Mining Lease of Donimalai Iron Ore Mine (ML No. 2396)for 20 years from 04.11.2018 to 03.11.2038 as per the provision of the Mineral (Mining byGovernment Company) Rules 2015

The Government of Karnataka while renewing the lease of NMDC'sDonimalai Iron Ore Mine had imposed a new condition asking for a premium of 80% on theaverage sale value. As the demand of the State Govt. was not as per the provisions of theMMDR Act -1957 and Mineral (Mining by Government Company) Rules 2015 the companyrequested the State Govt. to reconsider its decision.

Since there was no positive response from the State Govt the companyhas suspended its operations from 4th November 2018 and moved to the Hon'bleHigh Court of Karnataka praying for a suitable direction in the matter. The Hon'ble HighCourt of Karnataka in its judgement dated 10th July 2019 has passed an ordersetting aside the condition imposed for levying 80 % premium. On the basis of thejudgement NMDC has requested the State Govt. to consider the execution of Lease Deed ofDonimalai Mine.

The Government of Karnataka issued an Order dated 17.08.2019withdrawing the approval for extension of the Donimalai mining lease and with a directionto the Director of DMG to auction the said block. In this regard the Company on19.08.2019 filed 'Revision application' before The Hon'ble Mines Tribunal Government ofIndia. Meanwhile the State Government issued a notification dated 20.08 .2019 invitingtender for auction of the Donimalai Mining block. 0n 21.08.2019

Hon'ble Mines Tribunal heard the submissions and stayed the Order dated17.08.2019 issued by the Government of Karnataka withdrawing the extension of lease andany consequent action thereon until the next date of hearing.

On 28.08.2020 a high-level meeting was conducted at Bengaluru betweenthe Hon'ble Chief Minister of Karnataka and Union Minister of Coal & Mines in thepresence of the CMD - NMDC Ltd. and senior officers of Centre and State Governments.

In the meeting it was decided to extend the Mining Lease of DonimalaiIron Ore Mine with a temporary premium of 22.5 % of the average sale value published byIBM. It was also decided in the meeting that Ministry of Mines GoI will review the"Mineral (Mining by Government Company) Rules 2015" for suitable amendments todecide the additional amount payable apart from the royalty / other statutory levies inrespect of Mining Leases of Government Companies granted prior to 12.01.2015 and aHigh-Level Committee shall be constituted to examine the modalities in this respect.

Subsequently on 29.11.2020 Ministry of Mines Government of India hasgiven its approval for extension of Mining Lease of Donimalai Iron Ore Mine in terms ofthe proceeding of the meeting held on 28/08/2020. On 01.12.2020 Government of Karnatakapermitted NMDC to commence mining operations as an interim measure with immediate effectat Donimalai Iron Ore Mine for which NMDC shall unconditionally pay to the StateGovernment 22.5% of the IBM Sale Price (for Karnataka) apart from the Royalty and otherstatutory levies.

On 17.12.2020 Govt. of Karnataka ordered for execution of conditionalmining lease deed of Donimalai Iron Ore Mine with effect from 03.11.2018 for a period of04 years or till the implementation of High-Level Committee report whichever is earlier.

Subsequently on representation of NMDC Ltd. on 10.02.2021 Govt. ofKarnataka issued a modified order for execution of conditional mining lease deed for aperiod of 20 years i.e. up-to 03.11.2038 subject to the conditions in the Govt. Orderdated: 01.12.2020 and 17.12.2020. NMDC executed the conditional Mining Lease deed on12.02.2021 and same has been registered on 16.02.2021.

Donimalai Iron Ore Mine of NMDC Ltd. has resumed mining operationssince 18.02.2021.

Further it may be noted that Govt. of India has amended the MMDR Act -1957 on 28.03.2021 and as per amended provisions all such Government companies orcorporations whose mining lease has been extended after the commencement of the MMDRAmendment Act 2015 shall pay such additional amount as specified in the Fifth Scheduleof the Act for the mineral produced after the commencement of the MMDR Amendment Act2021. For such Mining Leases of Iron Ore an additional amount equivalent to 150 percent ofthe royalty will be payable. The additional amount shall be in addition to royalty orpayment to the District Mineral Foundation and National Mineral Exploration Trust or anyother statutory payment and the same is applicable to Donimalai Iron Ore Mine also.

(D) Impact of the Hon?ble Supreme Court of India Judgement withreference to the Writ Petition (Civil) No.114/2014 dated 02.08.2017 State Govt. ofChhattisgarh had been seeking compensation to be paid on the basis of the Common CauseJudgement of Hon'ble Supreme court (Writ Petition Civil No 114 of 2014 dated 2nd August2017) related to the mines in the State of Odisha. Show-cause notices were issued by theChhattisgarh State Govt. for which the company has all along been reiterating the fact ofnonapplicability of the said judgement of the Hon'ble Supreme Court in the state ofChhattisgarh.

However notwithstanding with the replies submitted by the companyChhattisgarh State Govt. issued Demand notices on 15.11.2019 for an amount of Rs 1623.44Crore (Bacheli - Rs 1131.97 Crore & Kirandul Rs 491.47 Crore) to be deposited within15 days.

The Company paid an adhoc amount of Rs 600 Crore under protest andfiled writ petitions in the Hon'ble High Court of Bilaspur Chhattisgarh and a Revisionapplication with Mines Tribunal Ministry of Mines Government of India New Delhi prayingto set aside the demand notices.

Hon'ble High Court of Bilaspur has heard the WPs on 19.02.2020. Hon'bleHigh Court sought certain clarifications from the respondent & directed no coerciveaction and listed the case for further hearing. Due to COVID-19 situation no furtherhearings could take place.

Revision application with Mines Tribunal Ministry of Mines Governmentof India New Delhi has been heard on 09.03.2022 in which representatives of the StateGovernment are directed to file comments/para wise reply within two weeks.

NMDC is pursuing the matter.

(E) Impact of Covid-19 Pandemic

(a) Production

The production performance of NMDC Ltd. during the FY 2021-22 was notimpacted due to Covid-19 as the company has taken adequate precautions to ensure safety ofthe employees and workers. The company has undertaken an elaborate exercise ofadministering vaccines to all our eligible employees as per the guidelines of Ministry ofHealth & Family Welfare.

(b) Commercial

There was a limited impact of Covid-19 during the FY 21-22. During thesecond wave a partial lockdown was imposed which affected the demand supply dynamics ofiron & steel sector the same affected the demand of raw materials e.g. iron oreduring Q-1 FY 21-22. As the restrictions were lifted in subsequent quarters NMDC volumesincreased exponentially & as a result company could achieve more than 20% growth interms of volume over previous year.

(c) Finance

The COVID-19 had not impacted the operations of the company during theFY 2021-22.

2.0 PHYSICAL PERFORMANCE

2.1 Production

Product Achievement Percentage of change
2020-2021 2021-2022
Iron Ore (Million tonnes) 34.15 42.19 (+) 23.54 %
Diamond (Carats) 13681 0.00 -
Pellets (Tonnes) 83751 182298.77 (+)117.67 %

3.0 SALES OF IRON ORE

Physical (in Million Tones) Value (Rs. in crore)
Particulars Achievement % of change Achievement % Of change
2020-21 2021-22 2020-21 2021-22
Domestic 30.96 40.56 31.00 % 13484.01 25537.47 89.39%
Export through MMTC 2.29 0.00 % 1749.69 9.19 (-) 99.47%
Total Sales 33.25 40.56 21.98% 15233.70 25546.66 67.70 %

3.1 Other Sales

Products Achievement
2020-21 2021-22
a) Diamond
Sales (carats) 22249 25219
Value (' in crore) 21.10 62.93
b) Sponge Iron
Sales (tonnes) - -
Value (' in crore) - -
c) Wind Power
Sales (lakh units) 1.59 1.47
Value (' in crore) 5.17 4.99
d) Pellet (In WMT)
Sales (In WMT) 92773 196972
Value (' in crore) 73.50 222.11

4.0 FINANCIAL PERFORMANCE

4.1 Operating Results

Parameter Achievement Percentage of change
2020-2021 2021-2022
Profit Before Tax (PBT) (' in crore) 8901 12981 (+) 45.84 %
Profit After Tax (PAT) (' in crore) 6253 9398 (+) 50.29 %
Net Worth (Rs. in crore) 29756 34844 (+) 17.10 %
Book value per share (?) 101.53 118.89 (+) 17.10 %
Earnings per Share (?) 20.62 (*) 32.07 (+) 55.53 %
(*) Adjusted on account of buyback)
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 taxfrom continuing operations of Rs 12981 crores on a turnover of Rs 25882 crores incomparison with previous year's achievement of Rs 8901 crores and Rs 15370 croresrespectively.

The Company has declared 1st Interim Dividend for FY 2021-22 @ Rs 9.01per share in the month of Dec 2021 and 2nd Interim Dividend for FY 202122 @ Rs 5.73 pershare in the month of Feb 2022 resulting an outgo of Rs 4319.72 crores. The share ofGovernment with equity stake of 60.79 % is Rs 2626 crores.

4.3 TRANSFER TO RESERVES

The company proposed to transfer Rs 5000 crore from net profit toGeneral Reserve.

4.4 MATERIAL CHANGES AND COMMITMENTS IF ANY AFFECTING THE FINANCIALPOSITION OF THE COMPANY WHICH HAVE OCCURRED BETWEEN THE END OF FINANCIAL YEAR OF THECOMPANY TO WHICH THE FINANCIAL STATEMENTS RELATE AND THE DATE OF THE REPORT: NIL

4.5 DEPOSITS

The company has not accepted any deposits covered under Chapter-V ofthe Companies Act 2013 during the year under review.

4.6 NON-CONVERTIBLE DEBENTURES (NCDs)

During the year under review the company has not issued anyNon-Convertible Debentures (NCDs).

5.0 INTERNAL CONTROL SYSTEMS W.R.T. FINANCIAL STATEMENTS

Necessary disclosure in respect of Internal Control Systems and theiradequacy has been made in Annexure-C to the Independent Auditors' Report dated 26thMay 2022 which forms part of the Annual Report.

6.0 (a) PARTICULARS OF LOANS GUARANTEES AND INVESTMENTS UNDER SECTION186 OF THE COMPANIES ACT 2013

Necessary details in this regard have been disclosed in the financialstatements.

(b) PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIESDISCLOSURES

Disclosure on related party transactions forms part of the Notes to theBalance Sheet both of Standalone and Consolidated.

(c) MAINTENANCE OF COST RECORDS

Section 148(1) of the Companies Act 2013 specifies the provisions ofmaintenance of Cost Records of the company. The company is maintaining such records as perRule 4(2) of the Companies (Cost Records and Audit) Rules 2014 under both regulatory andnon-regulatory services.

7.0 (a) STATUTORY AUDITOR?S REPORT

The Audit Report for both Standalone and Consolidated FinancialStatements for the year 2021-22 is unmodified and does not contain any qualificationreservation or adverse remark.

(b) SECRETARIAL AUDIT REPORT

The Secretarial Audit Report for the FY 2021-22 as done by M/sHanumanta Raju & Co. Company Secretary in whole time practice contains qualificationsand does not contain reservation or adverse remark.

NEW PROJECTS & BUSINESS DIVERSIFICATIONS:

In line with the Vision plan of augmenting its Production &Evacuation capacity technology upgradation diversification & value-added productsNMDC has taken up many ambitious projects. Action for new projects have been initiated.During the financial year 2021-22 the details of Projects undertaken by NMDC aresummarized as under:

A. Ongoing Projects:

1. Screening Plant III - Kirandul Complex

2. Slurry Pipeline Project which includes facilities like 15 MTPASlurry Pipeline from Bacheli to Nagarnar along with 2.0 MTPA Ore Processing Plant atBacheli and 2.0 MTPA Pellet Plant at Nagarnar

3. Doubling of KK line between Kirandul & Jagdalpur

4. Additional Screening Line & up gradation of existing downhillconveyor at Dep-5 Bacheli.

B. Projects in pipeline:

1. Screening Plant II- Donimalai Complex

2. New crushing Plant and Downhill Conveyor system at Dep-14 &11C

3. Town ship project at Kirandul

4. Township project at Donimalai

Projects / Schemes for capacity expansion

To augment the production and to improve the quality of product mixfrom Bailadila Sector the schemes like SPIN Kirandul New Crushing Plant of Dep.14 &11/C and Downhill conveyor additional screening lines in Bacheli Rapid Wagon LoadingSystem (RWLS) etc. are envisaged. Waste mining and increase in evacuation capacity being amajor area of focus for enhancing the life of mines the schemes like beneficiation plantat Bacheli & Kirandul and Slurry pipeline from Bacheli to Nagarnar has been taken up.

In Screening Plant-III project at Kirandul the site work in packageslike site development package MRSS packages Dry circuit (major technological package)and RWLS are in progress.

The upcoming scheme in Donimalai Complex includes a Second ScreeningPlant of 10.0 MTPA capacity for handling the ROM from both Donimalai & Kumaraswamymines in addition to the existing Screening Plant. Statutory clearances for 10.0 MTPAScreening Plant-ll are awaited.

Projects / Schemes to enhance evacuation capacity

To augment the evacuation capacity from Bailadila sector many projects& schemes are taken up like doubling of KK line.

Doubling of KK line between Kirandul & Jagdalpur (150.462 kms) isbeing executed by Railways as a Deposit work and overall progress for this work is 76 %.Doubling of 85 Km rail line is already completed and is in operation. Another 21 km railline doubling is expected to be completed by August-22. Works are in progress in otherreaches and are expected to be completed progressively by FY 2023-24. The completion ofthis project will augment the evacuation capacity of Bailadila sector through railway linefrom 28 to 40 MTPA.

NMDC has taken up an ambitious project of laying Slurry pipeline fromBailadila to Nagarnar and further up to Visakhapatnam. The Capacity of the line is 15 MTPAand this will be associated with facilities like beneficiation plants at Kirandul &Bacheli pellet plant at Nagarnar. Laying of slurry pipeline between Bacheli and Nagarnar 2.0 MTPA Ore Processing plant at Bacheli and 2.0 MTPA Pellet Plant at Nagarnar is takenup in Phase-1 for implementation.

Site development works of Ore Processing Plant (OPP) at Bacheli andPellet Plant at Nagarnar are completed along with soil investigation studies. Works ordersare already issued for packages like Main Receiving Substation Slurry Pumping systemSlurry pipeline laying package technological package of Pellet plant and Enabling worksof Ore Processing Plant & Pellet plant and construction activities are in progress atsite.

Solar Power Projects

As a part of Govt. thrust to tap renewable energy sources 1 MWcapacity grid connected Roof Top Solar (RTS) power plants are installed in variousproduction units of NMDC (Bailadila Iron Ore Mine Kirandul Complex & Bacheli Complexand Donimalai Iron Ore Mine Donimalai Complex) and are in operation. With this NMDC hasjoined other major corporates in harnessing solar power which has assumed a greatersignificance in recent times. Further tender for Supply Installation and Commissioningof 425 kWp Roof Top Solar Power Plant in Bacheli Complex Dantewada CG was also awardedin Feb-22.

Steel Plant Project at Nagarnar Chhattisgarh:

The State of the art 3.0 MTPA steel plant at Nagarnar is at advancedstage of construction completion and reaching its commissioning phase. Conducting coldtrial preliminary Acceptance Test etc of individual as well as integrated test ofequipment under various Technological packages are in progress as pre-commissioningactivities. Pre-commissioning activity has been started with heating of Coke-Oven battery.MECON has been awarded with the job of O&M (Operation & Maintenance) of plantduring commissioning and subsequent operation of the plant.

The plant will produce an impressive array of products viz. HR PlatesAPI - 5L Quality Plates Sheets HR Coils High Carbon Steel Silicon Steel and AutomotiveSteel.

Initiatives for Technological upgradation

1. Development of Vision Enhancement System for Foggy weather forBailadila Complex (In Collaboration with CSIR-CIMFR)

To overcome the production loss due to foggy weather in the mine wherevisibility will be around 1 to 2 meters during monsoon season NMDC and CSIR- CIMFR hasmade an agreement on 22.07.2019 for R&D collaborative project "Development ofVision Enhancement System for Foggy Weather" at BIOM Bacheli Complex Deposit 5 withtotal project cost of Rs 509.75 Lakhs of which Rs 230.51 lakhs was funded by Ministry ofElectronics and Information Technology (MeitY) for technology development.

"Vision Enhancement System" is an intelligent driverassistance technique for effective visualization of haul road i.e. dump trucktransportation path in the mine as well as loading / unloading areas during foggy weather.

The System was installed last year (FY 21-22) during rainy season andit was found that the vision for dumper operation needs further improvement. Accordinglyfurther intensive lab test and R & D activities have been undertaken for improvementin the system which will be tested during forthcoming monsoon in the month of July-Aug'22.

2. Fleet Management System for BIOM Bacheli & Kirandul Complex

As part of digital transformation to set the legacy in mining sectorand increase efficiency productivity and safety State of the Art Technology driven FleetManagement System (FMS) is being implemented for BIOM Bacheli Complex and BIOM KirandulComplex.

Fleet Management solution includes complete software and hardwarestructure which is designed for online monitoring and control of tracking devicesinstalled on the vehicle being used for carrying out production activity in the mine. Theeffective outputs from the system are available to the user(s) online for quick monitoringand decision making also long-term statistical reports can be extracted for long-termmanagement planning

and integration with ERP (SAP HANA). The features of the system areHigh & Low Precision Guidance System Proximity Awareness Health Monitoring FuelManagement Tire Pressure & Temperature Fatigue Monitoring and Crusher Management

NMDC has issued Letter of Intent (Lol) to M/s. Amnex InfotechnologiesPrivate Limited Ahmedabad for the work of "Implementation of Fleet Management Systemat BIOM-Bacheli Complex and BIOM-Kirandul Complex of NMDC Limited" at a totalcontract price of Rs 47.08 Cr on 27.09. 2021.Letter of award of Contract has been issuedon 04.10.2021 and Contract Agreement has been signed on 14.10.2021.

M/s Amnex has started the work of survey of Mining Machineries forimplementation of Fleet Management System at Bacheli and Kirandul Complex &preparation of Implementation Plan.

The time line for completion of all modules except Health MonitoringSystem is 9 Months. For Health Monitoring Modules additional 6 Months' time will be givenfor implementation.

3. Fully Automated dispatch Iron ore Sampling and Analysing System forBIOM Bacheli Kirandul Complex and DIOM Donimalai

In order to reduce customer dissatisfaction eliminate human errors incollection preparation and analysis of samples transparency & accuracy in qualityanalysis digitalization storage and retrieval of large records along with integration inERP (SAP HANA) and also as part of overall ramp up in production & dispatch of ironore the proposal has been taken up and is under process for issuing tender.

4. Automated Capturing of Production & Dispatch data on real timebasis from OCSL Plant Belt Scales of Kirandul Bacheli & Donimalai Complex.

As part of first phase of digital ERP initiative in mining sector andto reduce human interference increase productivity utilize man power efficientlystorage of historic data in easily retrievable format improve reliability of operationhaving diagnostics centralized control and integration with ERP (SAP HANA) it isproposed to integrate all the relevant belt scales of each OCSL Plant of Kirandul Bacheli& Donimalai Complex with a centralized web based SCADA server for on line collection& display of production & dispatch data on real time basis in all control rooms ofOCSL plants and integration with ERP dashboard.

The work has been awarded to M/s Prudent Automation Pvt. Ltd on07.05.2022 with a completion period of 60 days from the date of approval of drawings i.e.19.05.2022.

5. Implementation of Integrated Print Facility System with FreightOnline Information System (FOIS) of railways at Loading Plant BIOM Bacheli Complex

As part of the drive towards reduction of turnaround times for rakesand to increase dispatches and various other benefits railways (ECoR) had made itmandatory for implementation of integration of wagon loader print facility with FOIS atprivate railway sidings including BIOM Kirandul & Bacheli Complex.

The work was awarded to M/s Prudent Automation Pvt Ltd and theimplementation of the above in NMDC Ltd was taken up and completed first at NMDC Kirandulmechanized railway siding on 15.06.2021.

In a similar way implementation was completed at NMDC Bachelimechanized siding on 25.03.2022 and the system is working satisfactorily.

6. Replacement of existing Relay Logic Circuit (RLC) with AutomationSystem in Crushing Plant & Downhill D-14 of BIOM Kirandul Complex

Crushing Plant & DH-14 of Kirandul Complex was commissioned in theyear 1966 and the existing electrical control system for process is based on Relay LogicCircuit (RLC). The system was initially supplied by M/s YASKAWA Japan and is in operationtill date and has become obsolete.

In view of the digital transformation drive in mining sector and toincrease the efficiency productivity storage of historic data in easily retrievableformat improve reliability of operation having diagnostics centralized control andintegration with other plants & ERP (SAP HANA) it is proposed to upgrade the systemfrom RLC to latest automation system. The proposal is in approval stage and furtherimplementation will be taken up after award of work.

7. Replacement of existing Relay Logic Circuit (RLC) System LTMCCcontrol & communication cables etc with E-House Automation System & IMCC(Intelligent MCC) for Loading Plant of BIOM Kirandul Complex

Loading Plant Kirandul Complex was commissioned in the year 1966 andthe existing electrical control system for process is based on Relay Logic Circuit whichis operated continuously 24 x 7 365 days a year for dispatch of iron ore through rakesand direct feeding through conveyor BC 614 to M/s AMNS. The system was initially suppliedby M/s YASHKAWA Japan.

Complete refurbishment of all Switchgears different types of cablescontrol room LTMCC upgradation of RLC with latest automation has been taken up in twophases. In the first phase replacement of medium voltage switchgears and cables and in thesecond phase the present proposal has been taken up.

The present proposal caters to increase in the efficiencyproductivity storage of historic data in easily retrievable format improving reliabilityof operation having diagnostics centralized control and integration with other plants& ERP (SAP HANA). The proposal also includes supply and commissioning of E-House forautomation & IMCC and is in approval stage and further implementation will be taken upafter award of work.

8.1 OVERSEAS PROJECTS / NMDC GLOBAL Australia

Legacy Iron Ore Perth Australia

Legacy Iron Ore Ltd is an ASX listed entity based in Perth Australiawith a focus on Gold Iron ore and base metals. NMDC has 90.02% equity in the company.

Legacy Iron holds significant interest in Mt Bevan Magnetite projectin Western Australia with 1.17 billion tonnes of JORC Inferred & Indicated resource(@30.6% Fe). Legacy Iron also has Gold Base metals & Tungsten tenements in WesternAustralia. Legacy has 22 tenements-Iron ore (01 tenement) Gold (17 tenements) BaseMetals and Tungsten (04 tenements). All these tenements are in different explorationstages. Mt Celia is reaching Pre-feasibility Stage and Mt Bevan has defined Iron Oreresources. Other projects have valid targets of different commodities.

Exploration: So far Legacy has conducted 19111m of RC and 2850m ofdiamond drilling in Mt Beven Magnetite Project 2429 Mts RC drilling for Mt Bevan Nickelexploration 30173 Mts RC drilling and 1150 Mts diamond drilling in gold tenements and2133 Mts drilling in Base metal tenements.

JORC resource at Mt. Celia Gold project now stands at 312600 ounces@1.39 g/t gold. Legacy Iron is conducting Pre-feasibility studies in its Mt Celia Goldproject with an aim to develop viable gold mining project.

Joint Development of Mt Bevan: To progress Mt Bevan iron ore projectand conduct the prefeasibility studies Legacy (60% stake) along with its partner HawthornResources (40% stake) had signed JV agreement with M/s Hancock Magnetite Prospecting Ltd.Pursuant to this arrangement

M/s Hancock will invest and undertake the developmental works in MtBevan. After completion of the pre-feasibility studies Legacy will have 29.4% stake in MtBevan JV.

International Coal Ventures Pvt. Ltd. (ICVL)

ICVL a joint venture company of SAIL RINL &NMDC acquired acoking/thermal coal mine in Mozambique in 2014 and operation of the same was taken over byICVL. NMDC holds 26% stake in ICVL. Benga mine one of the operational asset of ICVL hasproduced about 1.747 Million tons in FY'22 (Both low ash & high ash) and exported 1.54Million Tons.

8.2 Leases for minerals Iron Ore

lron Ore Mining Leases:

Your Company is having Five Iron Ore Leases in Chhattisgarh and twoIron Ore Leases in Karnataka. The present status is as under:-

In Chhattisgarh

Sl. No. Name of Mining Lease Area in Ha ML Validity
1 Bailadila Deposit-11 (AB & C) 874.924 10/09/2037
2 Bailadila Deposit-14 322.368 11/09/2035
3 Bailadila Deposit-14NMZ 506.742 06/12/2035
4 Bailadila Deposit-5 540.05 10/09/2035
5 Bailadila Deposit-10 309.34 10/09/2035

In Karnataka

Sl. No. Name of Mining Lease Area in Ha ML Validity
1 Donimalai Iron Ore Mines 597.54 03/11/2038
2 Kumaraswamy Iron Ore Mines 639.80 17/10/2022

Kumaraswamy ML No. 1111- Extension of Kumaraswamy ML which is expiringin Oct-2022.

Your Company submitted application to Government of Karnataka on22-02-2021 for extension of Mining Lease of Kumaraswamy Iron Ore Mines M.L. No. 1111 for aperiod of 20 years. Director (Mines) Department of Mines and Geology Government ofKarnataka forwarded the application on 05-01-2022 for the extension of Kumaraswamy IronOre Mining Lease (M.L. No. 1111) to the Secretary (MSME & Mines) Commerce andIndustries Department Govt of Karnataka. Extension of Kumaraswamy ML is awaited.

Iron ore: In Jharkhand

Sasangada

A JV Company (NMDC 60% & JSMDC 40%) Jharkhand National MineralDevelopment Corporation Limited (JNMDC) has been incorporated at Ranchi. DMG Govt ofJharkhand has granted PL for iron ore & Manganese in Sasangada NE area in favour ofJNMDC Ltd for a period of 3 years. Detailed Geological mapping and topographical surveycompleted. Due to delay in grant of forest permission drilling could not be carried outin the lease period. As suggested by Ministry of Mines Govt of India JNMDC requested theSecretary Dept of Industries Mines & Geology GoJ for reservation of Sasangada Ironore and Manganese deposit under Section 17A(2A) of MM(D&R) Amendment Act 2015 forgrant of Prospecting and Exploitation.

Director (Mines) DMG GoJ suggested that JNMDC to submit FreshComposite Licence application after approval from JNMDC Board as per Section 17A ofMM(D&R) Amendment Act2021.The matter is being pursued with Govt. of Jharkhand forreservation.

Ghatkuri

Your Company has submitted a proposal to the Secretary Dept. ofIndustries Mines & Geology Govt. of Jharkhand for reservation of Ghatkuri Iron oredeposit West Singhbum District under Section 17A(2A) of MM(D&R) Amendment Act 2015for Prospecting and Mining operation in favour of JNMDC. As per carrying capacity studiesof Saranda Region conducted by MOEF&CC the applied area falls under Elephant Coridorwhich is no mining zone. Your Company requested Addl. Sec. MoS GoI on 01-02-2021 to takeup the matter with MOEF &CC for exempting the Ghatkuri Iron Ore area from conservationzone and keep it under Mining Zone so that this block can be reserved for NMDC. The Matteris being pursued with GoJ and MoS GOI.

Gold: In Jharkhand

Gold & associated mineral Deposit:

Your company submitted application to the Secretary cum CommissionerDMG GoJ on 0101-2019 for proposal to reserve 24.80 Sq. Km. area in Kuchai TehsilDistrict Saraikela-Kaswan Jharkahnd under Section 17A (2A) of MM(D&R) Amend. Act2015 for prospecting and mining operation of Gold & associated minerals. The matter isbeing pursued with Govt. of Jharkhand for reservation.

Various minerals: In Jharkhand

Tambadungri Copper Nickel cobalt and molybdenum mineral -

Your Company submitted the proposal to the Secretary-cum-CommissionerDept. of Mines & Geology Govt. of Jharkhand vide letter dated 30.01.2019 to reservean area of 16.70 Sq. Km in Saraikela-Kharswan district Jharkhand under Section 17A(2A) ofMM(D&R) Amendment Act 2015 for grant of Prospecting and Mining operation of CopperNickel cobalt and molybdenum mineral. The matter is being pursued with Govt. of Jharkhandfor reservation.

In Karnataka Iron ore

Ramandurg Iron Ore Mine- Your company requested to Ministry of SteelGovt of India on 20-06-2020 to take up the matter with MoM GoI to reserve Ramandurg Ironore deposit (area - 5.17 sq. km) in favour of NMDC Ltd under section 17A(1A) ofMM(D&R) Act1957. Matter is being pursued with MoS Govt. of India and Govt. ofKarnataka.

Other Minerals

Your company has submitted a proposal to the Director DMG Govt ofKarnataka to reserve 24.95 Sq. Km. area for lithium and other associated elements inRaichur District Karnataka under Section 17A (2A) of MM (D&R) Amendment Act 2015 forgrant of prospecting and mining operation. Sr. Geoologist DMG Raichur has submitted hisrecommendation along with Technical Report to Director DMG GoK for reservation ofapplied area in favour of NMDC for Prospecting and Mining Operations. The matter is beingpursued with Govt. of Karnataka.

In Odisha

Iron & Manganese Ore

Your Company is pursuing for reservation for Malangtoli MankadnachaKhandadhar (A &

B Blocks) & Rakma iron ore deposits and Panduliposi Iron Ore &Manganese Deposit and Kansa block for Nickel. NMDC has carried out detailed exploration ofMalangtoli Iron ore deposit Odisha during 1972-77 and established mineable reserve of 340Million tonnes.

Your Company is putting efforts and persuing the matter with Ministryof Mines Govt of India through MoS GoI for reservation of Malangtoli Iron Ore Block infavour of NMDC. Due to continuous persuasion of your Company Ministry of Mines

Govt of India sent a letter to Govt of Odisha on 0401-2022 regardingtheir comments on the instant proposal and observation made by IBM Nagpur.

The matter is being pursued with Govt of Odisha for reservation infavour of NMDC Ltd.

In Madhya Pradesh

Tripartite MoU among GoMP (MRD through DGM) MPSMCL & NMDC wassigned for geological and geophysical exploration in various Districts of M.P. In thisregard Govt. of Madhya Pradesh issued Gazette Notifications of 3 iron ore prospectiveblocks 20 diamond prospective blocks and 1 for various minerals prospective which areapplied under MoU for exploration and subsequent reservation.

Status of Exploration Works:

Iron Ore Prospective Blocks:

Sidhi Block in Sidhi & Singrauli Districts

a) Identified 5 iron ore sub blocks. Geological mapping GeophysicalSurveys and Geochemical Mapping completed in 5 potential sub-blocks. Topographic Surveysusing SP2 60 GNSS completed. To establish the quantity and grade a total of 964 meters ofcore drilling carried out. Chemical analysis of core samples is under process.

b) Dhaurra block - Based on Geophysical survey Geological mapping andsurface geochemical sampling one low grade iron ore body has been identified.

c) Dulchipur-Bagroda block- Based on Geological field traverses andsurface geochemical sampling one low grade iron ore body has been identified.

Diamond Prospective Blocks (3 Large Block

5 Small Blocks and 12 Additional Blocks):

Remote Sensing Studies have been completed in collaboration with NRSC.Chhattarpur Panna Block 1 Chhattarpur Panna Block 2 and Damoh Block Panna (5 ProspectiveBlocks) and Additional 12 Diamond Blocks.

> Established several target areas after conducting ground magneticVLF-EM & Gravity surveys and stream sediment sampling. Also demarcated severaladditional anomalous areas in the diamond blocks by processing the Raw Aeromagnetic Dataobtained from GSI in Diamond Blocks.

> APCCF (LM) Bhopal granted permission for drilling in 5 Blocks (2Large Blocks & 3 Additional Blocks). Drilling party selected through open ternder.Total 3882 meters of drilling completed in 5 blocks and balance drilling in revenue areasis under progress.

> Matter is being pursued with Forest Dept. for obtaining permissionfor drilling in 4 Additional Blocks.

Prospective block for various minerals:

After Remote Sensing Studies and detailed Geological traverses oneFerro -Manganese block identified in Jabalpur -Katni Block. Large scale geologicalmapping surface Geochemical Mapping and Ground Geophysical Survey (Magnetic survey) andTopographical survey completed in one identified Ferro -Manganese sub block. Core drillingplanned to establish the quantity and grade. Forest Permission obtained for core drillingin one Manganese Block (14 BHs) from APCCF (LM)

Bhopal. Exploratory drilling will be conducted shortly.

Govt. of M.P. granted working permission for reconnaissance survey forvarious minerals in Jabalpur Katni and Mandla Districts and NMDC identified areas forManganese Ferro-Manganese and Bauxite for further exploration. Geological mappingcompleted in 2 identified bauxite sub blocks and chemical analysis is under progress.

In Andhra Pradesh

Your Company has applied for Ramgiri prospective block for Iron Ore inAnantapur district. NMDC has requested State Govt. to reserve this block in favour of NMDCunder 17A (2A) of MM (D&R) Amendment Act 2015.

Your Company has applied for Peravali - Betapalli in Kurnool &Anantapur Districts; Rajagollapalli in Chittoor district and Konetirajupalem -Kundam blockin Nellore district for Gold and associated elements. NMDC has requested State Govt. toreserve these blocks in favour of NMDC under 17A (2A) of MM (D&R) Amendment Act 2015for Prospecting & Mining. The matter is being pursued with Govt of AP.

In Bihar

Your Company requested Chief Secretary Govt. of Bihar (GoB) forprovision of free area/ block for exploration for Gold & Associated Elements in JamuiDist. Bihar. Chief Secretary forwarded the application to Prin. Sec Mines & GeologyDept. GoB for further necessary action. The matter is being pursued with Govt of Bihar.

Exploration under Sub-section (1) of section (4) of MM (D&R) Act1957 in MoM Gol allotted Blocks Under NMET.

Your company was allocated 5 blocks (one iron ore block each inJharkhand & Maharashtra; and 2 Gold blocks in Karnataka & 1 Gold block in M.P.) byMoM Gol for G4 level exploration.

All the blocks were explored successfully and Geological Reports weresubmitted to NMET & concerned State Governments. NMET reimbursed an amount of Rs 3.42Crores to NMDC as per Schedule of Charges fixed by MoM Gol and claim made by NMDC.

Your Company is putting efforts to get approval from NMET Ministry ofMines Govt of India for the project proposal entitled "Reconnaissance Survey (G4)for Genesis of BIF hosted high grade iron ore of Bailadila Deposits with special referenceto geological controls on mode of occurrence of ORE- BENEATH-ORE and implication on futuregame changing exploration in India".

Chigargunta-Bisanatham gold block-

Your Company has become preferred bidder for Chigargunta-Bisanathamgold block for Mining Lease (ML area 263.01 Ha.) located in Chittoor Dist. in AndhraPradesh through e-auction route with a final bid offer of 38.25%. The matter is subjudicedue to pendency of Writ Petition filed by M/s Bharath Gold Mines All Employees IndustrialCooperative Society Ltd. before Hon'ble High Court of Andhra Pradesh. The matter is beingpursued with Govt. of Andhra Pradesh for issuing LOI in favour of NMDC.

Drone based Mineral Exploration NMDC-IIT Kharagpur.

Your Company has signed Contract research agreement on 16/03/2022 withGeology & Geophysics Dept. & Mining Dept. of IIT Kharagpur.

NMDC-CMDC Limited (NCL) a JV Company of NMDC Limited & CMDC Ltd:

NMDC-CMDC Limited (NCL) is a Joint venture Company of NMDC Limited andCMDC Limited with a share capital ratio of 51% and 49% respectively. The present status ofall the projects of the Company is as follows:-

Bailadila Deposit-4

Ministry of Mines GOI has reserved Bailadila Iron Ore Deposit-4 anarea of 646.596 ha in favour of NMDC-CMDC limited (NCL) under section 17A (1A) of MMDRAct 1957 vide their Gazette Notification no. 697(E) dated 30/09/2019 for a period of 05years for prospecting and mining operation. MRD GoCG has issued LOI for grant of ML videletter dated 26/06/2021 in favour of NCL for five years. The Mining Plan of Dep-4 has beenapproved by IBM Raipur on 24/09/2021. NCL has applied for obtaining environment clearanceunder Environment Protection Act 1986 and Forest Clearance under Forest Conservation act1980.

Bailadila Deposit -13

Mining Lease was granted for Bailadila Iron Ore Deposit-13 over an areaof 413.745 Ha in favour of NMDC Limited for 50 years by State Govt. of Chhattisgarh videorder no. F3-84/05/12 dated 07/01/2017 and Lease deed for the same has been executed on10/01/2017.

As per JV agreement dated 27th March 2007 by and betweenCMDC and NMDC Ltd. mining lease for Bailadila Iron Ore Deposit-13 had to be transferredin the name of NMDC-CMDC Limited (NCL) and then NCL would undertake all the required stepsfor development and operation of the Mine. Further Mining Lease Grant Order No.F3-84/95/12 dated 07/01/2017 in respect of Deposit-13 issued by

State Government of Chhattisgarh stipulate that after the execution ofthe lease deed NMDC will transfer the Mining Lease to the JV Company NMDC-CMDC limited'.

Mineral Resource Department Government of Chhattisgarh has issued anorder no. F3- 84/1995/12 dated 06/11/2017 for transferring the mining lease of BailadilaIron Ore Deposit-13 in favor of NMDC-CMDC Limited. Mining Lease of Deposit-13 has beentransferred in favour of NMDC-CMDC Limited (NCL) on 04.12.2017. On 02.07.2018 M/s AdaniEnterprises Limited has been appointed as MDO for Bailadila Iron Ore Deposit-13.

MoEF&CC GOI has accorded transfer of Environmental Clearance inname of NMDC-CMDC Limited from NMDC on 12.12.2019. Final FC under Section 2(ii) of ForestConservation Act 1980 was granted over an area of 315.813 Ha. in favour of NMDC Limited byMoEF&CC on 09.01.2017. Action has been initiated for transfer of existing FC in favourof NCL. CECB granted approval to NCL for consent to Operate 2MTPA on 27.04.2019.

The Revised Mine Plan of NCL was approved by IBM Raipur on 06.03.2019for a capacity of 10 MTPA. The validity of the Mining Plan of Deposit-13 was up to March2021. Hence Revised Mining Plan for the period 2021-26 has been prepared by NMDC and thesame was approved by IBM Raipur on 12.01.2021.

District administrator Dantewada issued orders to stop all projectactivities of Dep-13 on 11.06.2019 due to protest by local villagers against MDO anddemanding enquiry against FRA certificate issued by Gram Sabha. Forest Department GOCGRaipur has issued show cause notice to NMDC for cancelling the Stage-II Forest clearanceof Deposit-13 on 06.03.2020 considering the report of District Administrator Dantewada tonullify the Gram Sabha proceedings. NMDC-CMDC Limited (NCL) has submitted the reply to theforest Department Govt. of Chhattisgarh against the show cause notice issued forcancelling the Stage- II Forest clearance of Deposit-13.

MRD Govt. of Chhattisgarh has issued a notice to NMDC-CMDC Limited(NCL) for lapsing the Mining Lease of Deposit-13 for non-commencement of mining operationwithin 2 years from grant of mining lease under Rule 20(3) of MCR 2016 on 05.03.2020.NMDC-CMDC Limited (NCL) has submitted the reply to the MRD GOCG against the notice issuedfor lapsing the Mining Lease of Deposit-13 for non-commencement of mining operation within2 years from grant of mining lease under Rule 20(3) of MCR 2016.

NCL vide letter no. NCL/HO/Dep-13/ ML/2020/833/01 dated 25.03.2021 hassubmitted Rs 100000/- (Rs. One Lakh) towards revival of mining Lease of Bailadila IronOre Deposit-13 under Rule 20(5) of MCR (other than atomic and hydro carbons energyminerals) 2016 vide Challan no: 146803648 dated 23.03.2021.

NCL vide letter no. NCL/HO/Dep-13/ML/2022/1014 dated 14.02.2022 hasagain requested Under Secretary MRD GoCG for providing suitable decision in the matterof lapsing of mining lease so as to start the development and operation of Deposit-13.Also NCL vide letter no. NCL/HO/Dep- 13/ML/2022/1015 dated 14.02.2022 has requested Dy.Secretary (Forest) GoCG for providing suitable decision in the matter of cancelling theStage-II Forest clearance of Deposit-13 so as to start the development and operation ofDeposit-13.

Baloda - Belmundi Diamond Block

The Company has submitted the proposal to the Secretary MRD Govt. ofChhattisgarh for Baloda - Belmundi Diamond Block over an area of 156.80 sq km in SaraipaliTehsil Mahasamund Dist. for reservation under section 17A (2A) of MM (D&R) AmendmentAct 2015 for prospecting and exploitation.

Ministry of Mines GOI vide G.S.R.744(E) dt 14.10.2021 grantedreservation of Baloda-Belmundi Diamond Block for PL or ML in favour of NMDC- CMDC limitedunder section 17A(1A) of MMDR Act 1957. NCL vide letter dated 13.01.2022 submittedapplication to Secretary MRD GoCG for grant of Prospecting License for Baloda-BelmundiDiamond Block.

Bailadila Deposit No.1 and 3 & 8

The Company has submitted proposal to the Secretary MRD GoCG dated06/10/2021 & 25/10/2021 to reserve Dep. No. 1 3&8 respectively in favour ofNMDC-CMDC Limited (NCL) under section 17A (2) of MM (D&R) Act 1957.

MRD GoCG vide letter dated 24.11.2021 has recommended to MoM GOI forreservation of 21.3 Sq.km area of Dep-1 mine in favour of NMDC- CMDC Limited under rule17A(2) of MMDR Act 1957 (as amended) for undertaking prospecting followed by miningoperations.

9.0 SUBSIDIARY / ASSOCIATE / JOINT VENTURE (JV) COMPANIES MONITORINGFRAMEWORK

a) As on 31.03.2022 NMDC has 6 subsidiaries and stake in 5 Associateand 5 JV Companies. The names of these Companies and percentage of NMDC stake in thesecompanies are as follows:

*Under closure.

# Voluntary Liquidation - NCLT Hyderabad bench dissolved NMDC PowerLimited vide order dated 14.10.2021.

## Voluntary Liquidation - NCLT Kolkata bench disposed of JharkhandKolhan Steel Limited vide order dated 17.12.2021

###Govt. of India Ministry of Corporate Affairs vide its letter dated16.08.2021 inter alia communicated that pursuant to sub-section (5) of section 248 of theCompanies Act 2013 the name of M/s. NMDC- SAIL Ltd. has been struck off by Registrar ofCompanies and the said company is dissolved.

The subsidiaries of NMDC are Board managed with the primary interest tomanage such Companies in the best interest of the shareholders. The framework forSubsidiary / Associate / JV Companies are as under:-

i) All investments in these Companies are approved by the Board ofDirectors.

ii) The Company nominates its representatives on the Board of theseCompanies.

iii) The minutes of the Board meeting of these Companies are placedbefore the Board of NMDC Limited.

Notes:

Subsidiary / Associate / Joint Venture Companies have been categorizedin line with disclosures as made in the financial statements.

10.0 ENVIRONMENT MANAGEMENT:

NMDC has obtained the Environmental Clerance (EC) under EIAnotification 2006 from MOEF&CC for regularisation of Deposit-11 ML for the productioncapacity of 11.30 MTPA ROM Iron Ore. Amendment of existing Environmental Clerance of14/11C by excluding 11C part (1.5 MTPA Iron Ore Production) modifying toDeposit-14&14NMZ for the production capacity of 10.5 MTPA ROM production obtained fromMOEF&CC on 1.12.2021.

Your company has also obtained TOR from MOEF&CC on 22/3/2022 forcapacity expansion of Deposit-14 ( from 5 to 10 MTPA ROM Iron Ore) & Deposit-14 NMZ(from 5.5 to 8.5 MTPA ROM Iron Ore). The work order was issued for appointment ofQCI/NABET consultant for preparation of EIA/ EMP report. The baseline studies are underprogress covering pre-monsoon season'2022.

Your company is in the process of enhancing the ROM Iron ore productioncapacity of Kumaraswamy Iron Ore Mine from 7 to 10 MTPA. The public hearing wassuccessfully held on 22.3.22 at KIOM. The action plan is under progress for the publichearing demands. The final EIA/EMP report Form- II etc will be uploaded in PARIVESHshortly for Expert Appraisal Committee for obtaining of EC.

Your company is in the process of enhancing the ROM Iron Ore productioncapacity of Bailadila

Deposit-5 from 10 to 12 MTPA of ROM Iron Ore. QCI/NABET accreditedconsultant has been appointed for preparation of EIA/EMP report in line with theMOEF&CC circular issued on 11.4.2022 upto 20% based on the environmental safeguardconditions. The baseline studies are under progress covering pre-monsoon'2022.

Your company has got valid operating consents from State PollutionControl Boards for all production projects. The Company obtained renewal of Consent toOperate under Air (Prevention & Control of Pollution) Acts 1981 and Water (Prevention& Control of Pollution) Act 1974 for all projects.

Your company also obtained the consent for operation of 100 beddedHospital at Bacheli and is valid till 27/8/2026.

Your company also obtained authorization under Hazardous WasteManagement & Transboundary movement Rules 2016 from CECB for Bailadila Deposit-5 forhandling 100 KL used oil. The authorization is valid till 2/8/2025.

Your company obtained final forest clearance from MoEF&CCIntegrated Regional Office Raipur on 21/12/2021 for diversion of 7.116 Ha of forestlandfor associated facilities for Iron Ore Beneficiation Plant at Bacheli.

The sub-committee comprising of Expert Appraisal Committeerepresentatives of MOEF&CC Delhi Representatives of MOEF&CC Nagpur & Bhopaland Field Director (Panna Tiger Reserve) visited the Panna Diamond Mining Project Pannaon 29th-31st October'2021.

Your Company has amended Tripartite agreement and released Rs 699 Lakhsin December 2021 for implementation of Dhurli Samuh Gramin Jal Praday Yojana in 24 no.svillages under Dantewada District Chhattisgarh. The total revised cost for implementationof the above water supply scheme is Rs 5453.85 Lakhs.

Your company is taking utmost care for environmental protection andecological restoration work that includes plantation in and around the lease areasconstruction and repair of buttress walls check dams check bunds garland drainsrainwater harvesting pits broadcasting of seedlings and laying of geo-coir matting on theinactive waste dumping sites are being implemented.

Your Company is carrying out greenhouse gas (GHG) accounting studiesfor the three iron ore mining projects environmental monitoring studies covering allenvironmental attributes ground water quality & water levels by recognizedlaboratories. The studies indicated that all environmental parameters are found wellwithin the limits.

11.0 SAFETY

Mine Safety - Activities

NMDC has its training centers in all its projects. They are equippedwith infrastructure as required under Mines Vocational Training Rules. These centers caterto the needs of basic training refresher training and training for skilled workers andalso for those injured on duty.

In each mining project of NMDC sufficient number of workmen inspectorsare nominated/appointed for mining operations mechanical and electrical installations asper statutory requirements.

Mine Level Tripartite Safety Committee Meetings (MLTSCM) are beingconducted once in a year at Project Level with Senior Officials Union Representatives andDGMS Officials in which Safety Performance and its appraisal are made and therecommendations are implemented.

Corporate Level Tripartite Safety Committee Meeting is being heldregularly once in a year at Head Office after completing the Mine Level meetings at allMines.

Safety Committees have been constituted in every operating mine and pitsafety meetings are held every month for discussing the safety matters and correctiveactions related to work atmosphere. Man days lost per 100000 man days worked for the year2021-22 is 2.16 and 3.69 for the year 2020-2021.

Integrated Management System (IMS)

Comprising of Quality Management System (QMS) - ISO 9001:2015;Environmental Management System (EMS) - ISO 14001:2015; Occupational Health & SafetyManagement System (OHSMS) - ISO 45001:2018 & Social Accountability - SA 8000:2014Certification Standards.

All the NMDC Production Projects viz. Bailadila Iron Ore Mine KirandulComplex (BIOM KC); Bailadila Iron Ore Mine Bacheli Complex (BIOM BC); Donimalai IronOre Mine & Kumarswamy Iron Ore Mine Donimalai Complex (DIOM & KIOM); DiamondMining Project Panna (DMP Panna) including Research & Development Centre (R&DCentre) are accredited with Integrated Management System (IMS).

OHS Activities:

Occupational Health Services have been provided with adequate manpowerand infrastructure and are functioning in full-fledged manner at all the Projects headedby Qualified Doctors trained in OHS at Central Labour Institute Mumbai.

Periodical Medical Examination under statute is carried out regularlyin all the projects.

Safety Management System:

Safety Management system has been implemented in all our mines. RiskAssessment studies are being conducted regularly.

12.0 IMPLEMENTATION OF INTEGRITY PACT:

With the objective of improving transparency in procurement NMDC hadentered into MOU with Transparency International India for implementation of IntegrityPact Programme during September 2007. NMDC is the first Mining Navratna Company whichentered into Integrity Pact Programme in the year 2007.

Initially the threshold value for procurement & contracts forentering into the Integrity 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 threshold limits 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 thethreshold limits have been reduced to Rs 1.00 crore for procurements / contracts w.e.fSeptember 2018.

During 2021-22137 tenders valuing Rs 2862.68 crores were covered underthis category.

12.1 Transparency in procurements handled

In order to enhance transparency in procurements & increasingcompetitiveness our company adopted the following modes of tendering:> e-Procurement:

• All procurements of value above Rs 2 lakh are tendered throughe-mode at HO & Projects. Reverse e-auctions are conducted for high value spares &consumables wherever possible by declaring upfront in the tender document

• Broad basing of vendors done for high value items viz. MilledFerro Silicon Crusher Spares Under Carriage parts of Excavators TCRR bits conveyerbelts and plant items which resulted in substantial savings in cost.

> Mode of Tendering: Efforts are continuously taken to minimizeproprietary & single tender purchases. Instead open/global tenders are resorted to bygiving generalized specifications & drawings wherever possible or with OEM PartNumbers. Single Tender

/ Proprietary purchases have been reduced from Rs 1579.15 lakhs (85cases) during

2017- 18 to Rs 287.67 lakhs (34 cases) during

2018- 19. Rs 271.85 lakhs (26 cases) during

2019- 20 Rs 3975.96 Lakhs (33 cases) during

2020- 21 Rs 13939.95 Lakhs (56 cases) during

2021- 22.The Increase during FY 2021-22 is due to implementation of MIIPolicy in NMDC.

> Pre-qualifying conditions: PQC for conveyor belts & HEMequipments tenders have been reviewed and structured PQCs have been made keeping in viewwider participation.

> GeM Portal: Procurement through GeM portal as per the guidelinesof GOI is being done for the Materials which are available in the GeM Portal. Total 1713orders valuing Rs 172.42 crores were placed during the year 2021-22.

> CPP Portal: MM Dept. is posting tenders in the CPP portal exceptSingle tender and proprietary items. All the bidders approaching through CPP portal forentering in NMDC are invited for registration with NMDC or conducting trial with NMDC forensuring their quality product.

13.0 NMDC?S R&D CENTRE AT HYDERABAD

NMDC R&D centre is dedicated to undertake product and technologydevelopment projects related to ores minerals and steel making to maintain its excellencein process performance. R&D centre has made significant contribution not only to NMDCoperating projects but also to Indian industries and is recognized by Department ofScientific and Industrial Research (DSIR).

R&D centre undertakes works related to mineral processing flowsheet development mineralogical studies material handling & storage metallurgicalstudies of iron ore and coal chemical analysis etc. It is a pioneer in the field ofbeneficiation and continuously working for development of dry beneficiation technology fordifferent ores and minerals. It is endowed with state of art laboratory equipment toanalyze different minerals coals metals and non-metals. For further details referencemay be made to Annexure-II attached to the Directors' Report.

"Hindi Parangat" training continued unabated through teamsapp following all the safety measures in view of the COVID-19 pandemic.

During the year Hindi Workshops were organized online in every quarterat headquarters and various projects. Meetings of the Official Language ImplementationCommittee were held on-line every quarter at headquarters and projects.

Hindi week/fortnight was organized at NMDC Headquarters and all theprojects and offices. During this some Hindi competitions were held online and some withphysical presence. CMD's messages were circulated through social media channels likeTwitter Facebook YouTube.

Rajbhasha half yearly house journal of Headquarter "KhanijBharati" and various Hindi/bilingual/tri- lingual magazines namely Baila SamacharBacheli Samachar Doni Samachar Heera Samachar were also published from the projects andunits of NMDC.

Monthly Hindi competitions were held in all production projects topromote the use of official language.

A short documentary film on "Journey of RajbhashaImplementation" in NMDC was made and screened at the meeting of the Hindi AdvisoryCommittee of the Ministry of Steel.

Diamond Mining Project Panna organized various programs as theConvenor of Town Official Language Implementation Committee.

The project also organized Hindi Kavi Sammelan. Official LanguageTechnical Seminars were held at Kirandul Complex Bacheli Complex and Diamond MiningProject Panna and magazines of technical articles were published in Hindi.

The Government of India Ministry of Steel conferred "IspatRajbhasha First" award on NMDC Ltd Headquarters for the year 2020-21. NMDC received"Official Language Shield" as the 'First Prize' for the year 2020-21 in thecategory of Mid- Sized Undertakings for the outstanding implementation of officiallanguage from Town Official Language Implementation Committee (Undertaking)Hyderabad-Secunderabad. "Khanij Bharati" received the First prize of TownOfficial Language Implementation Committee (TOLIC) Hyderabad-Secunderabad. Khanij BharatiMagazine also received the National First Award of The Public Relations Society of India.

16.0 DETAILS REQUIRED TO BE FURNISHED IN TERMS OF MICRO SMALL ANDMEDIUM ENTERPRISES DEVELOPMENT ACT 2006 (MSMED).

The company has taken the following steps to procure goods and servicesfrom MSE firms

MSE SC/ST & Women entrepreneurs. NMDC has conducted exclusive MSESC / ST vendor meets at its projects in Chhattisgarh and Karnataka to understand thetender 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 08 Nos. Vendor Meets / programmes at various places in totalduring 2021-22. NMDC interacted with prospective MSE entrepreneurs encouraging them forsupply of goods for various plants at Bailadila & Donimalai.

For encouraging MSE SC/ST firms exclusive trials are being conductedand after successful trials the firms are given tender enquiry in Limited Tender.

Moreover against the qualification criteria in tenders we have notreceived any complaint / request with regard to relaxing tender terms & conditions.For the last 3 years NMDC is achieving the targets as per Public Procurement Policy. Theresults of 2021-22 are given below:-

Category of MSE Firm Norms Achievement
Procurement from MSE firms 25% 44.67 %
Procurement from SC / ST MSE firms 4% 4.90 %
Procurement from Women Entrepreneurs MSE firms 3% 3.07 %

NMDC also received the Best Performer under the Navratna Categoryduring the year 2019 for our exemplary work towards promotion of SC/ ST entrepreneursbased on the performance parameters namely

(i) procurement from SC/ST entrepreneurs

(ii) No. of Vendor Development Programs for SC/ST and

(iii) Number of SC/ST entrepreneurs benefitted as per the data uploadedon Sambandh Portal.

17.0 MANPOWER

17.1 Employee-Employer relations

The overall industrial relations situation was peaceful and cordialduring the year. There was no strike / lockout against the Company's policies affectingproduction and productivity.

17.2 Scheduled Castes & Scheduled Tribes

01 candidates belonging to Scheduled Caste was appointed in the year2021-22 against 10 posts filled by direct recruitment.

17.3 Strength of SCs & STs as on 31st March 2022

1. Total number of employees : 5539
2. Scheduled Castes : 827
3. Scheduled Tribes : 1395
4. Other Backward Class : 1137
5. PwDs (Divyangjan) 100

17.4 Particulars of employees drawing remuneration of Rs 8.5 lakhs permonth or Rs 1.02 crores per annum under Section 197 of the Companies Act

2013 read with the Companies (Appointment and remuneration ofManagerial Personnel) Rules

2014 as amended.

NIL

17.5 Staff Welfare activities

Adequate facilities for education health accommodation and recreationwere in place. Various Bipartite fora have been functioning satisfactorily.

17.6 Promotion of Sports

Sports tournaments were arranged by respective Projects for theemployees the wards of employees and also for the local youth apart from promoting sportsevents under CSR.

17.7 Disclosure under Section 22 of the Sexual

Harassment of Women at Workplace (Prevention Prohibition andRedressal) Act 2013

No complaint has been received and no case has been filed under theSexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Act 2013during the financial year 20212022.

18.0 HUMAN RESOURCES DEVELOPMENT

At NMDC we believe in building a learning culture to foster highperformance and an agile workforce. A robust Learning culture is imperative in NMDC whichseeks to be defined by its performance capabilities.

• We believe that business sustainability has become a crucialcomponent of long-term business goals. It involves figuring out newer ways to remainproductive in a fast-changing landscape. But as both technological change and employeepreferences evolve keeping up to date with the required skills and more holistic ways ofaddressing such changes becomes an important means to ensure businesses remainsustainable. At the core of addressing such business needs a robust learning culture isneed of the hour.

• At NMDC we have created high impact learning culture whichreflects both in the rising size of the learning needs and its demands within the businessas an important part of our future goals.

• NMDC Corporate HRD department plays a vital role in enabling itsworkforce to deal with market uncertainty and ensure its businesses can continuouslyinnovate. Throughout our learning and development programs have always played a pivotalrole in helping business by fine-tuning our employee's capabilities.

• NMDC strongly believes in a strong learning mechanism which canimpart skills in a timely and effective manner and minimize the impact of the variousthreats posed by external forces and uncertainties.

• Keeping in mind the need to have a robust learning mechanism inNMDC Corporate HRD function at the forefront is playing an important role in ensuring theorganizational workforce is trained and equipped with requisite skills and can face futurechallenges.

Productivity today in NMDC is related to how efficiently andeffectively our employees can use new-age digital technologies to make their work moreefficient impactful and meaningful. And to do so knowledge and skills play an importantrole. Keeping this in view NMDC is investing on its workforce by means of variouslearning and development programmes to retain and add its value. Bolstering this NMDCspentRs 15 Crores (approx.l on Learning and Development during the year 2021-22.

For a high-performance organization it's imperative that theseknowledge and skills are continuously replenished by virtue of imparting new age learningtechnologies.

It is pertinent to mention here that towards

2021-22 Learning and Development initiatives we were aligned with ourbusiness goals. Despite the pandemic the on-going core programmes were revitalised toreflect the emerging capability requirements. In addition to core programmes customisede-learning programmes were also offered to address the needs expressed by businessesaimed at building specific capabilities at various levels of the organisation.

A. TRAINING PROGRAMMES [In-House / External)

Corporate HRD has organised customized In House Training as well asExternal Training programmes covering 3575 Executives during 2021-22.

Corporate HRD Conducted several specialized & curated Programmeson:

> Reservation Policy for SC/ST OBC Ex Servicemen PWD and EWS inPSE

> Sexual Harassment of Women at Work Place (Prevention Prohibition& Redressal ACT2013]

> Online Training programme for Inquiry Officers (IOs] &Presenting Officers (POs] by CBI Academy

> Curated Business Leader Programme by Art of Living.

> Workshop on Arbitration and Contract Management NegotiationSkills.

> Workshop on Recent Amendments in Arbitration and Conciliation Act1966.

> Communication Skills for Managers.

No executives were sent abroad for Foreign Training Programmes during2021-22 /AMP/Visits due to COVID-19 pandemic.

B. WEB BASED LEARNING INITIATIVES

Successfully organised and conducted various specialised programmeduring the year viz. Web based learning programmes Professional Residential programmewith Premier Institutions Specialised Curated programmes Technical Managerial &Behavioural and also on Health and Wellness.

C. STRENGTHENING OF QUALITY CIRCLES

Strengthened the Quality Circles Movement in NMDC by giving morethrust on Quality Circles activities by adding 5% more QCs this year. We have bagged 18Gold Awards in CCQC. Also Excellence and Par Excellence award in National Convention onQuality Concepts (NCQC)-2021. NMDC also participated in Internal Convention on QualityControls Circles (ICQCC-2021).

D. TALENT MANAGEMENT

> Corporate HRD has drawn a plan to conduct various TrainingProgramme on Talent Management.

> New Learning and Development Intervention Induction TrainingProgramme for Young Executive Trainees (Finance) & Executive Trainees (GATE) withIndian Business School (ISB] one of its kind done by any of the PSU in Country.

E. TRAINING ON PREVENTIVE VIGILANCE

> Conducted Preventive Vigilance Training Module for mid-careerExecutives by covering a total of 400 plus executives sensitising them on variousPreventive vigilance aspects.

F. CULTURE BUILDING & HAPPINESS WORKSHOPS

COVID-19 has thrown unprecedented challenges before us alongside FearStress & Anxiety. To overcome and tackle this happiness programme was conducted byNMDC for the employees not only to be better equipped to identify the level of happinesswithin organisation and help employees at various levels to understand why happiness isworthwhile goal for achieving high performance in life and work.

Covered 240 executives DGM & above executives in a unique tailoredprogramme namely "IKIGAI- A Happy Workforce Programme- Phase 1". Keeping in viewthe feedback from the phase-1 participants the programme is the further extended to 500executives (AGM & Sr Manager level)"IKIGAI- A Happy Workforce Programme- Phase2"

These types of programmes equipped our people to support engagement andproductivity within NMDC and strengthen their sense of belongingness purpose meaning andsatisfaction -not only at the offices but in their life as a whole.

G. SKILL DEVELOPMENT TRAINING

NMDC and NSDC has entered into MoU on 01.11.2021 for imparting trainingand RPL certification for 1600 employees in 4 years (400 each) in mining and steel sector.

Your Company is also playing a pivotal role to support the NationalSkill Development Mission through active participation in the activities of Skill Councilfor Mining Sector (SCMS) and providing Training and Recognition of Prior Learning (RPL) inall Projects.

H. DIGITAL INITIATIVES

Introduction of SAP Learning Solutions & HRD Dash Board.

Lifelong learning is a challenge that learners employees andemployers are equally faced with. Traditional classroom training ties up time andresources takes employees away from their day- to-day tasks and drives up expenses.

This situation calls for new strategies leading directly to the workspace and centers of employees. The employee's PC at work or at home becomes a personaltraining center. E-learning can be used in a wide variety of areas. It can help to cut thecost of training by providing more learners with easier access to training measures.

In this line keeping under the ambit of ERP-SAP implementation inNMDC Corporate HRD working on the SAP Learning Solution Module which paves the way forthis development. It opens up new learning possibilities for learners trainerscompanies and educational institutions.

I. REWARDS & RECOGNITION

NMDC was conferred 2nd prize for innovative trainingpractices at National level for the year 2019-20 by Indian Society for Training and

Development received on 10.04.2021 Further NMDC was also conferredcash prize towards the same.

19.0 VIGILANCE

Vigilance department has taken several initiatives during the year.Emphasis was laid on adequate checks and balances in the form of well-defined systems andprocedures. Various programmes were conducted for awareness on vigilance matters for theemployees of the Corporation.

The vigilance functionaries at the projects have conducted regulartraining classes for the employees on vigilance matters. Executives of the VigilanceDepartment were nominated for training/ workshops being organized in India.

The systems and procedures including the document handling maintenanceof records are done to ensure that the Vigilance Department is conforming to the QualityManagement Systems as per ISO 9001:2015 Standards.

Vigilance Department in NMDC has upgraded to ISO 9001:2015 standards ofQuality Management System (QMS) for which M/s Vexil Business Process Services PrivateLimited Delhi was engaged for routine surveillance audits and Quality Certification.

During the year (April 2021 - March 2022) 55 surprise checks 68regular inspections was conducted by Vigilance Department. Complaints received were takenup for investigation and necessary suggestions for system improvement/ disciplinary actionwherever required were recommended. A total of 57 complaints were received through varioussource information during the period which were handled / disposed off as per CVCguidelines / complaint handling procedure.

As part of the implementation of "Leveraging of Technology fortransparency" in all the transactions details of contracts concluded above Rs 10lakhs all works awarded on nomination basis single tender basis above Rs 1 lakhinformation regarding bill payments to the contractors etc. are provided on the company'swebsite. Vigilance department made allout efforts for E-Procurements through onlinee-procurement platforms like MSTC GeM etc. and it has now been ensured at NMDC that alltenders of value 2 lakhs and above shall be floated / issued through E-Procurementplatform. In this regard Vigilance dept. is regularly creating awareness by intimatingfresh guidelines issued by statutory authorities / agencies and advising/ involving theconcerned departments for compliance.

NMDC has adopted the Integrity Pact since November 2007. As per thesuggestions given by Vigilance Department the threshold value has been decreased to 1.0Crore w.e.f. 07.09.2018 for both Procurement and Contracts as against the earlierthreshold limit of Rs 20 crores in case of Civil works and Contracts and Rs 10 crores incase of Procurement on approval of NMDC Board. The Integrity Pact has been entered into in476 contracts with a value of Rs 28918.77 Crores for the period April 2021-March 2022.All the contracts wherein the Integrity Pact was to be signed as per the threshold limitwas adhered to and more than 90% of the total values of the contracts are covered underIntegrity Pact.

To ensure transparency in vigilance works necessary action has beeninitiated for rotation / repatriation of vigilance officers and for inducting of newofficers in Vigilance department for compliance of CVC guidelines by 30.06.2022. Therotational transfer of officers of other departments was also effected during the periodin compliance of CVC guidelines and a total of 95 officers were rotated / transferred.

The Quarterly Review-cum-Coordination meeting of the Vigilance dept.with CVO was held in June 2021 at Hyderabad in September 2021 at Raipur in December 2021at Hospet and in March 2022 at Hyderabad for the first quarter second quarter thirdquarter and fourth quarter respectively. The said meeting was attended by all theVigilance Officers posted at Head Office and Projects like Kirandul Bacheli DonimalaiPanna & NISP. Project-wise presentations were made and matters pertaining to vigilanceinspections and system improvements recommended / implemented etc. were discussed. Fewcommon matters were also discussed in open-house wherein all VOs exchanged their views andgave valuable suggestions.

In pursuance of CVC directions / guidelines received during the monthof August / September 2020 a 02 days module and Road map for imparting training onPreventive Vgilance Module separately for Induction level (new entrants) and Mid-careerlevel Executives were drawn up and was integrated with our HRD's regular training plan.The said training programs on Preventive Vigilance is being arranged every month at NMDCin compliance of CVC guidelines covering Induction level and mid-career level executivesof HO ROs and all Projects. Keeping in view the present scenario of the pandemic thesessions for training on PV has been arranged through Hybrid mode i.e. through off lineclass-room mode at few locations like Head office and through online relay under theconcept of extended classrooms at remote locations & Projects. A total of 56 trainees/new inductees(executives) were covered for the Induction level training and 408trainees/mid-level executives were covered under mid-career level training in the trainingprogrammes conducted under the Preventive Training Module as suggested by CVC.

SYSTEM IMPROVEMENTS UNDERTAKEN / IMPLEMENTED DURING THE YEAR 2021-22

As per the Action Plan of the Vigilanec dept. viz-a-viz the actionplan of individual vigilance officers for the year 2021-22 surprise and regular checkswere conducted besides the study of files. Irregularities and omissions under theprovisions of the rules were identified and improvements in the systems were suggestedwherever required.

The initiatives/system improvements studies/suggestions/recommendations made during the period are briefed as below:-

1. Write-off of Handling Losses against the issue of Motor Spirit (MSIand High-Speed Diesel (HSDl:

A study was conducted to evaluate the effectiveness of the currentwrite-off technique for reconciling the handling losses against the issue of Motor Spirit(MS) and High-Speed Diesel at Projects. It was observed that the conventional method ofrecording and calculating the losses was incongruent with recent technologicaldevelopments. The vigilance department advised revising the internal circular onwrite-offs and employing an IT-based solution such as FMS to record fuel levels or forreceipt of fuel etc.

2. System improvements suggested in the Contract Award Process:

An online/offline demonstration for evaluating techno-commercialproposals of any specialty software may be required at the procurement stage. Nonethelessa vigilance investigation revealed that the existing MM Manual contains

no guidelines or provisions to be followed in such cases. The Vigilancedepartment has suggested recording Online/Offline demonstrations and draftingSOPs/Guidelines to be followed in instances where Online/Offline demonstrations wereincluded in tender documents for evaluating techno-commercial offers.

3. System improvements suggested in Empanelment of Contractor:

The contractors were empaneled for various types and values of worksbased on eligibility criteria at respective projects of the Corporation. During one of theinvestigation it was discovered that most of the new contractors visited the office toinquire about the empanelment procedure since they were unaware of its existence. Thevigilance department suggested standardizing the format for empanelment across allprojects and putting it in public domain.

4. System improvements suggested for PMC for large contracts:

The vigilance department suggested for appointment of PMC for largeprojects and for developing a proper SOP in cases where PMC consultant withdraws fromproject for any reason. The same has been implemented by the concerned departments.

5. As per the CVC guidelines all the companies coming under thecategory of Navratna or having the turnover of Rs 10000 crores and above are required tohave three IEMs in their panel. Vigilance department ensured the compliance of the aboveguidelines and appointment of third IEM at NMDC was made on 29.04.2022.

6. A Complaint Handling Policy was prepared and uploaded in VigilancePortal of NMDC with SOP / guidelines for lodging Vigilance complaints. It got implementedw.e.f. 01.01.2022.

Vigilance Awareness Week

As per CVC Circular No. 05/09/2021 dt. 01/09/2021 Vigilance Awarenessweek-2021 was observed at NMDC Limited from 26th Oct - 1st Nov 2021 on the theme"Independent India @75 " Self Reliance with Integrity".

On the Inaugural day of VAW-2021 Integrity Pledge was administered tothe employees of NMDC at HO by CMD and by respective Project Heads / Regional Managers inthe Projects and ROs respectively.

Various activities including sensitization programmes andindividual/inter-departmental competitions like Slogan writing Essay writing ElocutionQuiz competition inter-departmental House-keeping competition and Drawing of e-posters onthe VAW theme were arranged for the employees during the Vigilance Awareness Week-2021. Aworkshop on 'Corporate

Governance and Technology and Whistle Blower Mechanism in PSUs' wasorganized on 28.10.2021 at HO wherein Ms. Praveen Kumari Singh Addl. Secretary

CVC was the keynote speaker and CMD NMDC was the chief guest. Inaddition to this workshops on E-Tendering and use of GeM Portal and Statutory compliancesand Contract labour management were conducted as a part of VAW-2021. Awareness andsensitization programmes on use of PIDPI for employees school / college children andother stakeholders were conducted at Head Office/ Regional Offices & all Projects. Allthe winners / participants of various activities / competitions were given away the prizesduring the Valedictory Function held on the concluding day of VAW-2021 on 1stNov 2021 at HO and all Projects.

During the observance of VAW-2021 all the precautions as per COVID-19guidelines were strictly followed.

20.0 DIRECTORS? RESPONSIBILITY STATEMENT

Pursuant to Section 134(5) of the Act the Board of Directors to thebest of its knowledge and ability confirm that:

i) in the preparation of the annual accounts the applicable accountingstandards have been followed and there are no material departures;

ii) they have selected such accounting policies and applied themconsistently and made judgments and estimates that are reasonable and prudent so as togive a true and fair view of the state of affairs of the Company at the end of thefinancial year and of the profit of the Company for that period;

iii) they have taken proper and sufficient care for the maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities;

iv) they have prepared the annual accounts on a going concern basis;

v) they have laid down internal financial controls to be followed bythe Company and such internal financial controls are adequate and operating effectively;

vi) they have devised proper systems to ensure compliance with theprovisions of all applicable laws and that such systems are adequate and operatingeffectively.

Based on the framework of internal financial controls and compliancesystems established and maintained by the Company the work performed by the internalstatutory and secretarial auditors and external consultants including the audit ofinternal financial controls over financial reporting by the statutory auditors and thereviews performed by management and the relevant board committees including the auditcommittee the Board is of the opinion that the Company's internal financial controls wereadequate and effective during FY 2022.

21.0 DECLARATION ON MEETING THE CRITERIA OF INDEPENDENCE AS PER THECOMPANIES ACT 2013 AND SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS)REGULATIONS 2015.

The Independent Directors have given a declaration on meeting thecriteria of independence as stipulated in Section 149(6) of the Companies Act 2013 andRegulation 25(8) of SEBI (Listing Obligations and Disclosure Requirements) Regulations2015 in the FY 2021-22.

22.0 COMPANY?S POLICY ON DIRECTORS APPOINTMENT AND REMUNERAITON

All Directors are appointed by Govt. of India including fixation oftheir remuneration.

23.0 NUMBER OF BOARD MEETINGS HELD

During the year under review 9 meetings of the Board were held. Forfurther details reference may kindly be made to Corporate Governance Section of theAnnual Report.

24.0 NMDC STRATEGIC MANAGEMENT PLAN (NMDC VISION 2025).

A long-term strategic management plan (SMP) 'Vision 2025' has beenformulated which envisages an iron ore production capacity of 67 MTPA. This expansion planincludes brownfield expansion of existing mines and developing greenfield mines inpartnership with Chhattisgarh Mineral Development Corporation. A joint venture of NMDC& CMDC (NCL) is in process of starting operations from Dep-13 Iron Ore Mine in theBailadila Region. The Government of Chhattisgarh has notified the allocation of Dep-4 toNMDC in Sep'19 for prospecting and mining operations.

India is presently the world's second-largest producer of crude steel.In FY'22 the production of crude steel stood at 120 MT with a growth of 18% over theprevious year. The growth in the Indian steel sector has been driven by the domesticavailability of raw materials such as iron ore and cost-effective labour. Consequentlythe steel sector has been a major contributor to India's manufacturing output.

The Government of India announced a production- linked incentive (PLI)scheme for speciality steel. The scheme is expected to attract investment worth ~Rs. 400billion (US$ 5.37 billion) and expand

speciality steel capacity by 25 million tonnes (MT) to 42 MT by FY'27.NMDC is also reviewing its long-term plan based on the increase in demand & growth inthe iron & steel industry after the pandemic. As per National Steel Policy thecountry has envisaged increasing its steel production capacity to 300 MTPA by FY'31. Thewide range of continuing infrastructure projects could support growth in steel demand toreach our envisaged target of per capita steel consumption of 158 Kg by FY'31 in the longterm. NMDC is actively pursuing an Iron Ore Production ramp-up plan to further increaseits iron ore production capacity to 100 MTPA by FY'30.

In FY'22 the Company has progressed significantly on variousactivities to enhance its production capacity with the start of full-scale operation ofDonimalai Mine and laying of the foundation stone for a 7.0 MTPA Screening andBeneficiation Plant at NMDC's Donimalai Iron Ore Mine by Hon'ble Minister of SteelGovernment of India. There is also progress in the construction of the fifth line inScreening Plant Dep-5 & up-gradation of the downhill conveyor system in BIOM BacheliComplex. Rapid Wagon Loading System (RWLS-I) and New Screening Plant (SP-III) at BIOMKirandul Complex are under construction. Further NMDC is planning to enhance the ECcapacities of mines in the mining complexes of Bailadila and Donimalai.

To augment the evacuation capacity from the Bailadila sector manyprojects & schemes are being taken up like doubling of KK line Rowghat- Jagdalpurline Slurry Pipeline etc. Doubling of KK line is being executed by Railways as depositwork is in full swing and few completed sections have been opened for traffic. Out of 150km of planned doubling of railway line 76% of work has already been completed & theproject is likely to be completed by FY'24. The completion of this project will augmentthe evacuation capacity of the Bailadila sector through the Railway line from 28 MTPA to40 MTPA.

Activities for Phase-1 of Slurry Pipe Line including 2 MTPA capacityOre Processing Plant (OPP) at Bacheli 15 MTPA capacity Slurry Pipeline System (130 km)from Bacheli to Nagarnar and 2 MTPA capacity Pellet Plant at Nagarnar have also beeninitiated. The project is likely to be completed in FY'24.

Ministry of Coal has allocated two Coal Blocks namely Tokisud NorthCoal block & Rohne Coal Block on 17th March 2020 for commercial sale & captivepurposes. NMDC has appointed MDO for Tokisud North Coal Block and plans to start itsoperations in FY'23.

NMDC is in the advanced stages of setting up a

3.0 MTPA greenfield Steel Plant at Nagarnar in Chhattisgarh which isexpected to operationalize in FY'23. Commissioning activities started with the start ofcoke oven heating in Jan'2022. Testing & trials are in progress in each package.Packages like operational power facilities operational water packages and plant &instrument air packages are commissioned.

Besides the expansion plan the SMP also envisaged the introduction ofsystemic interventions in six strategic transformation areas - Business OperationsSustainability Capital Projects Human Resource and IT. NMDC has implemented an ERPsystem across all projects & steel plant in FY'21 License-to-Operate (thecomputer-based model in which all the statutory approvals will be brought under oneumbrella). Implementation of Mines Transport Surveillance System (MTSS)- Weighbridgeautomation/ Virtual Fencing/ Geo-Fencing/ GPS/ Proximity Warning Device for dumpers/ CCTVSurveillance/ Wireless Networking has been completed at Donimalai. NMDC has further takeninitiative to venture into the fleet management system and it is being implemented inBailadila Sector. Efforts are being made to install an automatic (robotic) sampling &analysis system vision enhancement system conveyor monitoring system and 3D Volumetricand Laser Scanner System to enhance its digital strength.

NMDC is publishing Sustainability Report as per the Global ReportingInitiative (GRI) Standards capturing initiatives taken by NMDC over the years inEconomic Environmental and Social aspects. As the world is now traversing moreuncertainty than ever NMDC is focusing on building sustainable and resilient businessesto survive in the long run and to make a meaningful contribution to the battle againstclimate change through an increasing investment in environment social and governance(ESC) initiatives. All Mines of NMDC have been Awarded 5 Star Rating by the Ministry ofMines.

The following Directors ceased to be Directors on the Board of theCompany:-

upto
i) Shri P.K. Satpathy Director (Production) 31.08.2021
ii) Shri Alok Kumar Mehta Director (Commercial) 30.09.2021
The following Directors were appointed on the Board of the Company:-
w.e.f.
i) Shri Dilip Kumar Mohanty Director (Production) 05.10.2021
ii) Smt. Sukriti Likhi Govt. Nominee Director 23.04.2021
iii) Shri Sanjay Tandon Independent Director 01.11.2021
iv) Dr. Anil Kamble Independent Director 01.11.2021
v) Shri Vishal Babber Independent Director 01.11.2021
vi) Shri Sanjay Singh Independent Director 29.12.2021

The Board places on record its deep appreciation for the valuablecontribution made by Shri P K Satpathy and Shri Alok Kumar Mehta during their tenure onthe Board of the Company.

26.0 AUDIT

a. Statutory Auditors

On the advice of the Comptroller and Auditor General of India NewDelhi your Company appointed the following firms of Chartered Accountants as StatutoryAuditors of the Company for the year 2021-2022:

1 Head Office R & D Center SIU & Consolidation M/s SAGAR & ASSOCIATES Chartered Accountants House No.6-3-244/5 Saradadevi Street Premnagar Hyderabad Telangana: 500 004
2 Kiradul Complex Bacheli Complex NISP Jagdalpur Vizag Office M/s AGASTI & ASSOCIATES Chartered Accountants C-37 Sector-1 Raipur Chhatishgarh: 492007
3 Donimalai Complex M/s YOGANANDH & RAM LLP Chartered Accountants Third Floor Shri Narasimha Nilaya No. 263/1 Second Cross T. Mariappa Road Second Block Jayanagar Bengaluru Karnataka : 560 011
4 Panna Project M/s Neeraj Prakash & Associates Chartered Accountants 328/208 Lukerganj Purosottam Kunj Near Dr. Banerjee Allahabad Uttarpradesh : 211 001

b. Cost Auditors

M/s B Mukhopadhyay & Co

Cost Accountants B 20 Amarabati

Sodepur

Kolkata - 700 110.

c. Secretarial Auditors

M/s D. Hanumanta Raju & Co.

Company Secretaries B-13 F1 P.S. Nagar Vijaynagar Colony Hyderabad -500 057

27.0 IMPLEMENTATION OF RIGHT TO INFORMATION ACT 2005

All the provisions of the RTI Act 2005 are being complied with by theCompany. In order to ensure timely disposal of RTI applications PlOs have been appointedin each of NMDC's Units. A close monitoring of the RTI applications received is done toensure that the replies are sent in time.

The details of RTI applications received in Head Office and all theUnits of the Company during the period 01.04.2021 to 31.03.2022 are as follows:

Opening balance as on 01.04.2021 Applications received during the year Information Provided/denied/ forwarded Balance as on 31.03.2022
Online applications 34 373 386 21
Offline applicaitons 04 158 158 04
TOTAL 38 531 544 25

28.0 DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY THEREGULATORS OR COURTS OR

TRIBUNALS IMPACTING THE GOING CONCERN STATUS AND COMPANY?SOPERATION IN FUTURE - NIL

29.0 AWARDS RECEIVED BY THE COMPANY

The details of awards received by the Company are as follows:-

1. NMDC bagged Runners Award in 30th National Award for InnovativeTraining Practices Award 2019-20 held at SCOPE Complex New Delhi on 10.04.2021.

2. NMDC sweeped eight awards at the Governance Now 8th PSU AwardsCeremony conducted virtually on 29.07.2021. Under the Leadership Category the company wonthe CMD Leadership and Emerging Communication Leader of the Year awards besides sixawards under the Organization Category for CSR Commitment Nation Building Digital PSUResearch and Innovation HR Excellence and Communication Outreach.

3. NMDC received "Rajbhasha Kirti Award" on 14.09.2021 forimplementation of Rajbhasha for the year 2019-20 at a function held at Vigyan Bhawan NewDelhi. NMDC has been winning this accolade for the last three years in a row which goeson to show its dedication towards the implementation of Hindi as the Official Language.

4. NMDC received runner up award and another thirteen CorporateCommunication Excellence Awards on 20.09.2021 at the Global Communication Conclaveorganised by Public Relations Council of India (PRCI) in Goa.

5. NMDC is bestowed with best PSE for CSR initiatives award atD&B's India's top PSU awards on 27.09.2021.

6. Donimalai Complex NMDC Ltd. has been awarded for "PLATINUMAWARD" in "10th Exceed Environment Award 2021" under "EnvironmentPreservation" Category in Mining & Metallurgy Oil Sector on 07.10.2021 atDehradhun.

7. NMDC has bagged Gold Award in Environmental Sustainability categoryand Kumaraswamy Iron Ore Mine bagged Platinum Award in Environment Management category.The function was organised by Sustainable Development Foundation (a unit of EK KAAM DESHKE NAAM) and the awards were presented in the 10th conference held on 08.10.2021 atDehradun.

8. NMDC Head Office received First Prize of TOLIC (U) under mid-sizedCentral PSU category. Rajbhasha Shield for 2019-20 and 2020-21 were received for the sixthyear consecutively and "Khanij Bharati" Rajbhasha Patrika of Head Office wasalso awarded First Prize for 2020-21 among the Published Magazine category on 25.10.2021at Hyderabad.

9. NMDC received nine 5-star ratings for three years for all itsoperating iron ore mines viz. Kumaraswami Bacheli Deposit-5 Deposit 14 NMZ and DepositNo 10 at the

5th National Conclave on Mines and Minerals on 24.11.2021.

10. SIU Paloncha received First Prize of Southern Region forimplementation of Rajbhasha in the Conference organized at Hyderabad on 04.12.2021 by GolMinistry of Home Affairs Rajbhasha Department.

11. NMDC received 1st prize in the Ispat Rajbhasha Award for 2018-19and 2020-21 and the Ispat Rajbhasha Prerna Award for 2019-20 in the meeting of the HindiSalahakar Committee of the Ministry of Steel held in Madurai on 03.03.2022. The HonourableUnion Minister of Steel Shri Ram Chandra Prasad Singh presented the accolades to ShriSumit Deb Chairman and Managing Director NMDC.

12. The Director (Finance) Shri Amitava

Mukherjee was awarded the 'FE CFO of the Year Award' by FinancialExpress for the year 2022.

30.0 VIGIL MECHANISM

NMDC being a PSU the guidelines of Central Vigilance Commission (CVC)are applicable which provides adequate safeguard against victimization of the employees.The Board of Directors at its 451st meeting held on 20.09.2012 approved the internalWhistle Blower Policy of NMDC. NMDC has effectively implemented its internal WhistleBlower Policy under CVO NMDC the designated Nodal Officer for the purpose.

31.0 DETAILS IN RESPECT OF FRAUDS REPORTED BY AUDITORS UNDER SECTION143(12) OTHER THAN WHICH ARE REPORTABLE TO CENTRAL GOVT - NIL

32.0 Offer for Sale (OFS) in F.Y. 2021-22

Pursuant to the Offer for Sale (OFS) the President of India (actingthrough and represented by the Ministry of Steel Government of India) the Promoter ofNMDC Limited sold equity shares aggregating to 219502378 (nos.) on 6th July2021 and 7th July 2021 representing 7.49% of the total paid up equity sharecapital of the company. The Floor Price for the Offer was Rs 165.00 per equity share. TheTransaction value of the OFS was of Rs 36513722349.08. Post completion of the said OFSthe equity stake of the Promoter in NMDC Limited stands reduced from 68.29% to 60.80% ason 8th July 2021.

Employee OFS in F.Y. 2021-22:

In accordance with the approval given by Alternative Mechanism on 5thJuly 2021 the President of India acting through Ministry of Steel Government of Indiaoffered up to 89108907 equity shares of face value of Rs 1/- each to the eligibleemployees of the Company at a price Rs 165.50 per equity share. Accordingly the Promoterof NMDC Limited sold 147942 (no.s) equity shares to the eligible employees of theCompany on 20th July 2021 at an offer price of Rs 165.50 per equity share.Transaction value of the Employee OFS is of Rs 24484401.00 (Gross of stock exchangetransaction charges and all applicable taxes and charges). Post completion of the employeeOFS the equity stake of the Promoter in NMDC Limited stands reduced from 60.80% to 60.79%as on 23rd July 2021.

33.0 FORMAL ANNUAL EVALUATION OF BOARD COMMITTEES AND INDIVIDUALDIRECTORS.

NMDC being a Government Company the terms and conditions ofappointment and remuneration of Functional Directors and Independent Directors aredetermined by the Government through its administrative Ministry Ministry of Steel.

In terms of notification dated 5th June 2015 and 13th June 2017issued by Ministry of Corporate Affairs Govt. of India Government Companies have beenexempted from applicability of some of the provisions /sections of the Companies Act 2013inter alia Sub-sections (2)(3) & (4) of Section 178 regarding appointmentperformance evaluation and remuneration.

34.0 IMPLEMENTATION OF RISK MANAGEMENT POLICY

The Board at its 442nd meeting held on 19.01.2012 hasapproved the Risk Assessment and Risk Mitigation Policy / Enterprise Risk Management (ERM)of the Company. Accordingly the Company has constituted a Board level Risk ManagementCommittee comprising of Functional Directors (excluding CMD). The Company as a part of itscurrent Risk Management Policy has identified top Risks That Matters (RTMs) and documentedMitigation Plan / Strategy for the same

During the year under review two meetings of the Board level RiskManagement Committee were held.

35.0 DIVIDEND DISTRIBUTION POLICY

The Board of Directors has approved Dividend Distribution Policy whichhas been uploaded on the website of the company under the link https://www.nmdc.co.in/cms-admin/Upload/Policies- Document/ ae4bb5f07e7e4654a3f881ccec7b9163_20210920060806207.pdf.

36.0 ERP Implementation Digitalization and IT Infrastructure

NMDC went Live on SAP S/4 Hana in January 2021. ERP Projectchristened Kalpataru made NMDC the first CPSE in India to implement Enterprise ResourcePlanning on the SAP S/4 HANA platform. This Project was undertaken to address NMDC's corebusiness requirements through a strong ERP backbone which will provide a fully integratedsolution encompassing all the business functions of the organization. It is atransformational advancement in the digital journey of NMDC and will improve the overallbusiness process of the company. This will also act as a lighthouse project for thedomestic mining sector ushering into an era of automation and digitalization drivengrowth.

The modules / functionalities implemented are Production Planning (PP)Plant Maintenance (PM) Quality Management (QM) Sales & Distribution (SD) MaterialManagement (MM) Human Capital Management (HCM) Finance & Control (FICO) EnvironmentHealth & Safety (EHS) Project System (PS) Industry Solution for Mining.

FY 2021-22 is the first year when the entire account closing activityhas been done in SAP.

Post Go-Live SAP Digital Compliance Solution (DCS) have beenimplemented for generation of E-Invoicing E-Way Bill transactions in real time and filingof GST returns. HR functionalities have been made available to employees through EmployeeSelf Service (ESS). Management Dashboard for Production Iron Ore Sales/ Dispatches andCSR has been launched and the same for other functionalities will be made functionalshortly.

All the transactions are happening smoothly and the focus now is toincrease the digital footprint bringing in more and more of automation for automated datacapture in real time like integrating Belt Scale and PLC system for Plant Data andintegration of Fleet Management System(FMS) with SAP for Mining field operation dataleading to IT/ OT integration.

Roll out of functionalities like Supplier Relationship Management (SRM)for E-Tendering and Vendor Invoice Management (VIM) solution for automated capture ofpayment invoices into SAP and parking for payment is underway. Vendor through this systemwill be able to know the status of their invoice and payment thru the portal. Ex-Employeeportal will also be made functional soon. Focus will be also on utilizing the fullpotential of Document Management and Mobility Solutions. ERP solution will be rolled outin the Coal Division of NMDC in next few months. Technology refresh of IT infrastructureto support ERP and future digital initiative alongwith best in class IT security solutionswill also be our top priority.

36.1 COMPUTER & INFORMATION TECHNOLOGY INITIATIVES

1. The corporate website tender website exemployees portal andintranet website of the company has been revamped and launched on 26.01.2022. This hasbeen developed using the latest technologies and responsive design. It is GIGW compliantsecurity auditec and very user friendly. It has a video header and uses CDN to deliver it.It also has SEO friendly CMS. The press release section also has integration with socialmedia.

2. A Virtual Data Room (VDR) has been commissioned for NISP Demergeractivity. This facilitates the various stakeholders like Legal Advisor TransactionAdvisor User Departments to share and exchange information.

3. The email mailboxes of top management and common departmental mailids have been moved to the cloud (Microsoft O'365). This provides enhanced mailbox size of50 GB and it is hosted in the cloud.

4. Facial Biometric Attendance Recording System has been recentlyimplemented at HO R&D Panna NISP and Ros. Implementation is in progress at BacheliKirandul and Donimalai.

5. Microsoft Teams is being used extensively to conduct virtualmeetings webinars. One conference room at HO and Donimalai have been revamped with largedisplay PTZ camera Wi-Fi ceiling mics etc. The same setup is being implemented atBacheli and Kirandul also.

37.0 REPORT ON MANAGEMENT DISCUSSIONS AND ANALYSIS

A Report on Management discussions and Analysis as required in terms ofRegulation 34 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015is at Annexure-I.

38.0 REPORT ON CONSERVATION OF ENERGY TECHNOLOGY ABSORPTION FOREIGNEXCHANGE EARNINGS AND OUTGO UNDER THE COMPANIES (ACCOUNTS) RULES 2014 IS AT -Annexure-II.

39.0 CORPORATE GOVERNANCE

Report on Corporate Governance is at Annexure-III

40.0. EXTRACT OF ANNUAL RETURN UNDER SECTION 92(3) OF THE COMPANIESACT 2013.

As required under the provisions of the Companies Act 2013 the AnnualReturn is hosted on the Company's website and can be accessed from the linkhttps://www.nmdc.co.in/investors/financial- details/annual-return

41.0 BUSINESS RESPONSIBILITY REPORT

In compliance with Regulation 34 of SEBI (Listing Obligations andDisclosure Requirements) Regulations 2015 Business Responsibility Report (BRR) is atAnnexure-IV.

42.0 SECRETARIAL AUDIT REPORT

Secretarial Audit Report in Form No.MR-3 pursuant to Section 204(1) ofthe Companies Act 2013 and Regulation 24A of SEBI (Listing Obligations and DisclosureRequirements) Regulations 2015 is at Annexure-V.

The Observations of the Secretarial Auditors are relating to theComposition of the Board of Directors with respect to the requisite number of IndependentDirectors of the Company Constitution of the committees and quorum for the meeting whichis not as per the requirements of SEBI (LODR) Regulations 2015 and the Companies Act2013 during the financial year 2021-22.

In this regard it is stated that NMDC Limited being a Central PublicSector Enterprise under administrative control of Ministry of Steel Govt. of India and asper Articles of Association the President of India shall appoint all members on the Boardof Directors. The present composition of the Board of NMDC Ltd. consists of 4 (Four)Executive Directors including Chairman and Managing Director and 2 (Two) GovernmentNominee Directors and 4 (Four) Independent Directors. At present there is a vacancy of 2(Two) Independent Directors including vacancy of atleast one Woman Independent Directorneeds to be filled in by Ministry of Steel Govt. of India. All the observations are dueto not having requisite number of Independent Directors. The Company is regularlyfollowing up with Ministry of Steel Govt. of India for appointment of requisite number ofIndependent Directors on the Board of the Company. The Board of the Company has also beeninformed in this regard at regular intervals.

43.0 GLOBAL COMPACT - COMMUNICATION ON PROGRESS

Report on compliance with principles of Global Compact is atAnnexure-VI.

44.0 STATEMENT CONTAINING SALIENT FEATURES OF THE FINANCIAL STATEMENT /HIGHLIGHTS OF PERFORMANCE OF SUBSIDIARIES / ASSOCIATE COMPANIES / JOINT VENTURES (FORMAOC-1) IS ENCLOSED AT ANNEXURE-VII.

45.0 REPORT ON CSRACTIVITIES

Report in terms of the Companies (Corporate Social ResponsibilityPolicy) Rules 2021 is at Annexure-VIII. The Report on CSR inter alia outlines details ofCSR Policy and various CSR initiatives of the company for the year under review.

46.0 RECOMMENDATIONS MADE BY THE COMMITTEE ON PAPERS LAID ON THE TABLE(RAJYA SABHA) IN ITS 150TH REPORT - DETAILS TO BE PROVIDED IN THE ANNUAL REPORT.

Details to be provided in the Annual Report in terms of recommendationsmade by the Committee on Papers laid on the Table (Rajya Sabha) in its 150th Report isenclosed at Annexure-IX.

47.0 ACKNOWLEDGEMENT

Your Directors gratefully acknowledge the support cooperation andguidance received from the Ministry of Steel Ministry of Mines and Ministry of Forests& Environment and other Departments of Government of India and the State Governmentsof Andhra Pradesh Chhattisgarh Karnataka Madhya Pradesh Jharkhand and Telangana.

Your Directors acknowledge the support extended by the valued andesteemed international and domestic customers Shareholders stakeholders MMTC ChennaiPort Trust Visakhapatnam Port Trust Railways and other Departments of the Central andState Governments. We believe that oui long-term success is dependant on our domesticcustomer relationship and responsiveness. We will do everything possible to provide ourcustomers better timely and value added services.

The success of your Company is due to the commitment and dedicatedefforts of the managers and employees at all levels. Your Directors place on record theirappreciation and also acknowledge the support and co-operation of All India NMDC Workers'Federation and their members for the smooth functioning of the Company's operations.

Place : New Delhi
Date : 27.06.2022 SUMIT DEB
Chairman and Managing Director
DIN:08547819

.