Ladies & Gentlemen
Very Good Morning!
On behalf of the Board of Directors of the Company it is a great honour and privilegefor me to extend a very warm welcome to all ofyou at the 100th Annual General Meeting ofYour Company.
The Directors' Report and the Audited Statement of the Accounts for the year 2017-18and the Notice to the Shareholders have already been circulated and with your permissionI take them as read.
1) Operating Performance of Your Company:
As you know this year also there was no mining activity in any of the mines of OMDCowing to nonrenewal of mining leases and non-availability of other statutory clearanceshe legal issues are being addressed with utmost care by engaging experienced and senioradvocates/legal professionals to settle the cases i n favour of the Company at the earliest.
As mines remained inoperative your company could not earn any revenue from operationsin this year. By prudent cash planning taking into consideration the GovernmentGuidelines your Company has earned an interest income of Rs. 53.56 crores during the yearon its Surplus funds parked in Term Depositswith different banks. However pursuant to theJudgement of Hon'ble Supreme Court dated 02/08/2017 Dy. Director of Mines Odisha issueddemand notices to OMDC and BPMEL towards compensation against excess mining amounting toRs.1418.56 Crs. The amount of demand for OMDC mines based on recalculation made by OMDC isRs.235.28 Crs. And the same has been provided in the books of account. As a result yourCompany has incurred loss during the Financial Year 2017-18. (Loss) after tax for 2017-18stood at (Rs 252.95) crores as compared to profit of Rs. 6.56 crores during the previousyear.
2) Looking Ahead
Company's future plan could not take desired shape mainly because of uncertainties withthe renewal of mining leases of the company. The company is committed and would put inrelentless efforts for securing renewal of mining leases of the Company. Further theCompany has initiated actions for exploration of BrahmaniCoal Block allotted to theCompany.
3) Dividend for the year 2017-18
Based on the financial results the company did not recommend dividend for theFinancial year 2017- 18.
4) Corporate Governance
OMDC believes that good Corporate Governance practices ensure ethical and efficientconduct of the affairs of the Company. OMDC aims at not only its own growth but alsomaximization of benefits to the shareholders employees customers government and alsothe general public at large. Forthis purpose the company is continuously striving toimprove its level of overall efficiency through good corporate governance which envisagestransparency professionalism and accountability in all its operations which are vital toachieve its Vision.
5) Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) has been an integral part of our businessphilosophy and the Company has been following it much before it became a norm for thecorporate sector in India. The Company has been allocating CSR budget as perthe guidelinesof DPE.
Your Company's CSR activities are focused in areas such as Health EducationEmployment generation Empowerment of women and Drinking Water etc.
On behalf of your Company's Board of Directors I wish to convey earnest thanks to thevalued Share holders for their continuous support and reposing trust on us. This motivatesus to excel in all our pursuits and constant endeavour to create value for thestakeholders.
I take this opportunity to thank the Government of India Ministry of Steel Ministryof Mines Ministry of Environment and Forest Ministry of Corporate Affairs otherDepartments of Government of India Government of West Bengal and Odisha and all otherAuthorities and Regulatory bodies for their unstinted support and valuable guidance.
I thankyou all once again and offer my best wishes for a very joyous festive seasonahead.
Thankyou and Jai Hind.
Dated: 26th September 2018