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ANNUAL REPORT | 2018-19 | THE ODISHA MINING CORPORATION4

Sri Sanjeev Chopra, IAS Chairman

Sri R.K. Sharma, IAS Director

Sri R. Vineel Krishna, IAS Managing Director

Sri Deepak Mohanty, IFS Director

Sri P.K. Nanda Director

Sri Yudhisthir Nayak Director

Sri C.R. Das Director

Sri D.K. Roy Director

Sri G.S. Khuntia Director

Sri C.R. Pradhan Director

Sri S.P. Padhi Director

Sri Satyajit Mohanty Director (Finance)

Dr. Santanu Kumar Rath Director (Personnel)

Sri Ramanath Praharaj Director (Project & Planning)

BOARD OF DIRECTORS

(As on 23rd Oct. 2019)

COMPANY SECRETARY

Sri S.R. Mohapatra

AUDITORS

M/s. ABP & Associates

Chartered Accountants,

Bhubaneswar

BANKERS

Andhra Bank

State Bank of India

Bank of India

Union Bank of India

Bank of Baroda

Indian Bank

REGISTERED OFFICEOMC House, Bhubaneswar - 751001,

Odisha, India.

Ph. (0674) 2377400, 2377401

Fax. (0674) 2391629, 2396889

Website : www.omcltd.in

CIN : U13100OR1956SGC000313

REGIONAL OFFICES

JAJPUR ROAD

DAITARI

GANDHAMARDAN

BANGUR

KOIRA

BARBIL

RAYAGADA

ANGUL

ANNUAL REPORT | 2018-19 | THE ODISHA MINING CORPORATION 5

1 STRATEGIC REPORT 10

Our Purpose 10

Business at a Glance 10

Market Overview 12

Summary of Financial Year 2018-19 16

Journey Towards Sustainable Mining 18

Risk Management 31

Five Year Review 31

2 DIRECTOR’S REPORT 32

Financial Highlights 33

Performance Highlights 34

Audit Committee Reports 40

Management Discussion and Analysis 44

3 GOVERNANCE 58

Corporate Governance 58

Names of the Board of Directors 58

Director’s Responsibility Statement 59

Committees of The Board 59

Declaration by an Independent Director 61

Details of Establishment of Vigil Mechanism for Directors and Employees 61

Particulars of Employees 61

Nomination, Remuneration and Stakeholders Relationship Committee 61

4 ADDITIONAL DISCLOSURES 62

Legal Proceedings 62

Security System 62

Particulars of Contracts with related Party Transactions 63

Memorandum of Understanding 63

Acknowledgement 63

5 APPENDIX 65

Appendix 1 - Financial Highlights 65

Appendix 2 - Statement Regarding Unqualifi ed Report of Statutory Auditors 70

Appendix 3 - Replies of Management on C&AG Comments 71

Appendix 4 - Extract of Annual Return 72

Appendix 5 - Annual Report on CSR Activities 79

Appendix 6 - Conservation of Energy and Research & Development 81

Appendix 7 - Employee Welfare Activities 82

Appendix 8 - Comments of the Comptroller and Auditor General of India under

Section 143 (6) (b) of the Companies Act, 2013 on Standalone Accounts 85

Appendix 9 - Comments of the Comptroller and Auditor General of India under

Section 143 (6) (b) of the Companies Act, 2013 on Consolidated Accounts 88

6 FINANCIAL STATEMENTS 91

Independent Auditor’s Report of Standalone Financials 91

Standalone Financials 98

Independent Auditor’s Report of Consolidated Financials 137

Consolidated Financials 144

CONTENTS

Our Purpose


KEY HIGHLIGHTS: 2018-19

₹500CRDIVIDENDS

PAID TO STATE

GOVERNMENT

₹1,439CRNET CASH FLOW

FROM OPERATING

ACTIVITIES

42%(FY 2017: INR 3,167 CR)

REVENUE

INCREASED TO

INR 4,488 CR

31% 50%(FY 2017: 7.9 MT) (FY 2017: 1,701CR)

INCREASE IN IRON

ORE PRODUCTION

TO 10.4 MT

INCREASE IN IRON

ORE SALES TO

INR 2,560 CR

33% 17%(FY 2017: 0.9 MT) (FY 2017: 1,152CR)

INCREASE IN

CHROME ORE

PRODUCTION

TO 1.2 MT

INCREASE IN

CHROME ORE

SALES TO

INR 1,353 CR

2.7MT 139CROPERATIONALIZATION OF

KODINGAMALI MINE

BAUXITE PRODUCTION

IN FY 2018-19

BAUXITE SALES

IN FY 2018-19

FINANCIAL OPERATIONAL SALES

₹

TOTAL INCOME

REVENUE FROM IRON ORE REVENUE FROM CHROME ORE REVENUE FROM BAUXITE ORE OTHER INCOME

₹ IN

CR

OR

E

780 7221,141

2,1142,378

1,826

3,0292,604

2,199 2,435 2,4172,029

2,7063,167

4,488

2014-152004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-10 2011-12 2012-13 2013-14 2015-16 2016-17 2017-18 2018-19

CAG-30%

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

11,000

10,000


STATUTORY CLEARANCES

» Environment Clearance (EC) received for 4 mine blocks.

» Stage-I Forest Clearance (FC) received for 4 mine

blocks.

» Stage-II Forest Clearance (FC) received for 11

mineblocks.

CSR

» 1st Annual Sustainability Report published in 2017-18.

» INR 229.92 Crore dedicated towards Corporate

Social Responsibility (CSR) initiatives, donations/

contributions, peripheral development (PD) &

sponsorships.

» INR 120 Crore contributed to Chief Minister’s Relief

Fund of Odisha.

» Sponsor of Indian Hockey Teams (both men & women)

till 2021.

TECHNOLOGY ENABLEMENT

» E-Offi ce across various offi ces.

» Implementation of Stockyard Management System.

» Upgraded Treasury Management System in SAP for

CPF and Gratuity Trust.

» Implemented Vendor Master upload program work fl ow

for Vendor Master and Material Master in SAP.

» Real-time monitoring of evacuation through analytics

dashboard.

KEY INITIATIVES

FC Mining Exploration Total

Stage I 2 2 4

Stage II 3 8 11

Total 5 10 15


STRATEGIC REPORT01

The OdishaMining Corporation Limited (OMC) is the largest “gold” category PSU of Odisha.

OUR PURPOSE

The Odisha Mining Corporation has come a

long way in the past 63 years from being set

up as a joint venture between Government of

India and the Government of Odisha in 1956 to

a wholly owned corporation of Odisha. Today,

OMC stands tall as the largest “gold” category

PSU of the state working in the mining sector.

The Company has been recording signifi cant

increase in revenues and providing the best

of services in terms of quality, productivity,

profi tability, customer satisfaction, and

environmental sustainability in its core activities

of mining.

We aim to consistently work on becoming

India’s biggest mining company and scale

new heights through its model of sustainable

mining. As the largest “gold” category PSU of

the state, we have been consistently showing

a growing trend in revenues over the last three

years and have observed signifi cant increase

in revenues to INR 4,487.69 Crore in Financial

Year (FY) 2018-19 with a CAGR (compounded

annual growth rate) of 28.79% for the last three

years. Since the Corporation is 100% debt free

and a profi t-making group, it naturally gives

a testament to the excellent processes and

systems put in place by the management team

through the timeline. The Company is currently

in the course of setting up an exemplary growth

story with a reserve of 882 Million Tonne of Iron

Ore, 65 Million Tonne of Chrome Ore, 2 Million

Tonne of Manganese, and 70 Million Tonne of

Bauxite.

BUSINESS AT A GLANCE

OMC’s high growth trajectory is a testament

to its future vision of potential growth

catering to the requirements of mineral based

industries. To achieve this purpose, we have

embraced advanced technologies and adopted

progressive mechanisms by modernizing our

mining operations, while ensuring a sustainable

approach throughout. Several business

improvement measures including optimum

utilization of resources, cost controlling

mechanisms, new techniques of inventory

management, energy audits, asset upgradation

and implementation of best industry practices

have helped the company to increase its

production by 91% in the past 3 consecutive

years to become the largest state public sector

mining company in the country.

OMC continues to strive to be the most

responsible as well as responsive organization

in fulfi lling the State’s aspiration to be an

industrially advanced and resurgent economy.

OMC is producing about 10% of total Iron

Ore production of the state and about 30% of

the total Chrome Ore production of the State.

Presently, Daitari, Gandhamardan and Kurmitar

(Khandadhar) are the major Iron Ore mines

of OMC, while South Kaliapani and Sukrangi

are the major chrome ore mines of OMC. The

Bangur Chrome Ore mine is the fi rst and only

underground mine of OMC. Kodingamali is the

major bauxite mine of OMC.


1.05 MT PRODUCED

15.01 MT IN RESERVE

SOUTH KALIAPANI

0.13 MT PRODUCED

14.91 MT IN RESERVE

SUKRANGI

0.01 MT PRODUCED

6.62 MT IN RESERVE

BANGUR

5.06 MT PRODUCED

200.73 MT IN RESERVE

GANDHAMARDAN B

0.02 MT PRODUCED

50.31 MT IN RESERVE

GANDHAMARDAN A

3 MT PRODUCED


DAITARI

2.4 MT PRODUCED


KURMITAR

2.7 MT PRODUCED

76.86 MT IN RESERVE

KODINGAMALI

Reserve / Resource as of 03.31.2019NOTES:

Production as of FY 2018-2019

BAY OF BENGAL

OPERATIONAL

MINES OF OMC

Chrome Iron Bauxite



MARKET OVERVIEW

IRON ORE

Global Steel Industry and its outlook

In 2018, the global crude industry reported

a total worldwide production of 1,808.60

Million Tonnes, an increase of 4.6% over the

previous year. China, India, Japan, and United

States continued to dominate the crude

steel production in 2018. In 2019, the global

steel demand is expected to grow with low

growth rates as global economy is slowing

down. China’s deceleration, a slowing global

economy and uncertainty surrounding trade

policies and the political situation in many

regions suggest a possible moderation in

business confi dence and investment. In China,

the effect of trade tensions with the US and

economic rebalancing is slowing down the

investment and manufacturing performance.

In the US, the effect of fi scal stimulus and a

monetary policy normalization will moderate

the growth of construction and manufacturing

industry.

(Source: World Steel Association |

https://www.worldsteel.org/)

Indian Steel Industry and its outlook

India’s crude steel production rose to 106.56

Million Tonnes in FY 2018-19, a growth of

3.3% compared to prior period. The Indian

steel sector growth has been driven by the

domestic availability of raw materials such as

Iron Ore and easy availability of cost effective

labour. The steel sector has thus emerged as

a major contributor to India’s manufacturing

output. The industry is technologically

advanced with state-of-the-art steel mills.

There has been continuous modernisation and

upgradation of older plants and improvement

in energy effi ciency levels.

The India Brand Equity Foundation (IBEF)

reported that in FY 2018-19, India exported

6.36 Million Tonnes of fi nished steel. During

the same period, the country’s fi nished steel

imports reached 7.84 Million Tonnes.

(Source: IBEF | https://www.ibef.org/industry/steel.

aspx)

The consumption of steel is expected to grow

with rapid growth in the industrial sector and

rising infra expenditure projects in railways,

roads, and highways, etc. The Government’s

National Steel Policy 2017 has laid down

the roadmap for long-term growth both on

demand and supply sides by 2030-31.

The Government has also announced a policy

for providing preference to domestically

manufactured Iron & Steel products in

Government procurement. This policy seeks to

accomplish PM’s vision of ‘Make in India’ with

objective of nation building and encourage

domestic manufacturing and is applicable

on all government tenders where price bid

is yet to be opened. Further, the policy

provides a minimum value addition of 15%

in notifi ed steel products which are covered

under preferential procurement. In order to

provide fl exibility, Ministry of Steel may review

specifi ed steel products and the minimum

value addition criterion.

(Source: Ministry of Steel, Government of India | www.

steel.gov.in)

Despite the shocks of demonetization and the

Goods & Service Tax, the Indian economy is

expected to achieve faster growth in 2019.

While the fi scal defi cit might weight on public

investment to an extent, the wide range of

continuing infrastructure projects is likely to

support growth in steel demand above 7% in

both 2019 and 2020.

(Source: World Steel Association |

https://www.worldsteel.org/)

TOP 5 CRUDE STEEL PRODUCING COUNTRIES

00CHINA INDIA JAPAN US SOUTH KOREA

300

ST

EE

L P

RO

DU

CT

ION

(M

T)

600

800

1200

2018 (IN MT)

2017 (IN MT)

928.3

106.5 104.386.7 72.5

870.9

101.5 104.781.6 71


Odisha Outlook: Iron Ore

India’s Iron Ore production rose to 220 Million

Tonnes in FY 2018-19 compared to 201

Million Tonnes in FY 2017-18. This growth

is expected from those miners whose mines

would no longer be valid after FY 2019-20

end.

Odisha’s production accounted for more

than half of India’s total Iron Ore production.

Goa reported Iron Ore production of 8 Million

Tonnes in FY 2017-18 but in FY 2018-19,

however, due to the mining ban by Supreme

Court of India no mining activity was carried

out by the state.

OMC produced Iron Ore of 10.4 Million

Tonnes in FY 2018-19, an increase of

31.36% compared to production in FY

2017-18.

IRON ORE PRICE COMPARISON

IRO

N O

RE

PR

ICE

($/D

MT

U)

00

2014-15 2015-16 2016-17 2017-18 2018-19

10

20

30

40

50

60

70

80

90 82.59

52.18

67.81 69.9871.98


CHROME ORE

The markets for Chrome Ore as well as

ferrochrome are shaped primarily by stainless

steel production.

Global Stainless Steel

Worldwide, stainless steel production totalled

50.73 Million Tonnes in 2018, up from the

48.08 Million Tonnes produced in 2017. Its

market size is projected to reach USD 133.84

Billion by 2025, and expand at a CAGR of

5.2% during the forecast period.

This sector is expecting a lot of R&D expense

to improve durability, corrosion resistance

and strength, which in turn is expected to

propel growth over the coming next few years.

The exceptional weldability and formability

characteristics have facilitated stainless steel’s

high utilization in lightweight vehicles. The

market is expected to witness high growth

owing to a substantial increase in automobile,

building and construction industries,

particularly in developing economies, such as

India and China.

Source: International Stainless Steel Forum

Odisha Outlook: Chrome Ore

India’s total chrome ore resources are

estimated to be more than 200 Million Tonnes.

Odisha has more than 95% of the chromite

resources, mostly in the Sukinda valley in

Jajpur district.

OMC produced chrome ore of 1.2 Million

Tonnes in FY 2018-19, a rise of 33.03%

compared to 0.9 Million Tonnes of prior year

period.

BAUXITE

Bauxite ore is the world’s primary source

of aluminum. OMC operationalized the

Kodinagamali mine with 2.7 Million Tonnes

Bauxite production in FY 2018-19.

Global Aluminium Industry

Global production of Aluminium was reported

as 64.34 Million Tonnes in 2018, an increase

of 1.5% over production numbers of 63.40

Million Tonnes in 2017. China was the highest

producer of Aluminium in 2018 with 36.48

Million Tonnes, accounting for approximately

57% of world’s total production. It also depicts

the growth rate of 1.6% in this year compared

to previous period.

Indian Aluminium Industry and its

outlook

Production of primary Aluminium has

increased by 8.9% in FY 2018-19 to reach

at 2.87 Million Tonnes. Total Aluminium

consumption increased by 6.2% but on the

other hand consumption of primary Aluminium

dropped by 1.4% during FY 2018-19.

Aluminium consumption in India is driven by

its use in the power (48%), automobiles (15%),

construction (13%), packaging (8%), industrial

(7%) and consumer durables (7%) sectors.

Aluminium consumption in India at 2.5 kg per

capita is much below the global average of

11 kg per capita. Aluminium contributes 2%

of manufacturing GDP and this is expected to

move up with consumption growth.

India’s Aluminium production is expected to

grow by 3.7% during FY 2019-20 as all the

domestic smelters are now operating at full

capacity and the primary Aluminium producers

will not be ramping up their capacities

anytime soon. Growth in demand (including

secondary demand) is likely to remain stable

and is expected range around 6% to 7%

during FY 2019-20. Reforms proposed by

the Government of India like development of

Smart Cities, Rural Electrifi cation and a focus

on building renewable energy projects under

the National Electricity Policy will support the

demand for Aluminium.

(Source: World Aluminium, Niti Aayog and Care Rating)

Odisha Outlook: Bauxite Ore

OMC produced bauxite of 2.7 Million Tonnes

in FY 2018-19 compared to 0.1 Million Tonnes

of prior year period.

Power

48%Automobiles

15%Construction

13%Packaging

8%Industrial

7%Consumer Durables

7%

ALUMINUM CONSUMPTION IN INDIA

DRIVEN BY ITS USE


SUMMARY OF FINANCIAL

YEAR 2018-19

The Odisha Mining Corporation has witnessed a growth

trend in its top line in last three fi nancial years and

reported the same positive growth of 41.6% in this

fi nancial year as well.

During the fi nancial year, the company earned Profi t

before Tax (PBT) of INR 1259.59 Crore in comparison to

the prior year’s loss of INR 863.53 Crore. Futher, OMC

has reported bottom line of INR 789.88 Crore w.r.t a loss

of INR 463.48 Crore in the previous year.

OMC has been consistently making profi ts with an

exception for FY 2017-18 where the company incurred

losses due to payment of INR 2095.12 Crore as

compensation to the Government for excess mining.

In FY 2018-19, the company reported Iron Ore sales of

INR 2,559.54 Crore, a growth of 50.5% in comparison

to last year. The revenue growth is mostly dependent on

sale quantity growth of 39.3% in this year, compared to

last year cumulated due to positive rate variance.

During this FY 2018-19, the company reported Chrome

Ore sales and production of INR 1353.53 Crore and

1.188 Million Tonnes, an increase of 17.5% and 33.0%,

respectively, compared to 2017-18. OMC reported

Bauxite’s production of 2.700 Million Tonnes with sales

fi gures of INR138.97 Crore.

₹ IN

CR

OR

E

2014-15 2015-16 2016-17 2017-18 2018-19

525525

481481481481

374374374374

314314

436

100

0

200

300

400

500

600

COMPARISON OF OTHER INCOME EARNED BY THE COMPANY

₹ IN

CR

OR

E

2014-15 2015-16 2016-17 2017-18 2018-19

421421

591591569569569569

493493

558

100

0

200

300

400

500

600

VALUE OF INVENTORY (CURRENT) EARNED BY THE COMPANY

The Odisha Mining

Corporation has shown

a positive growth of 41.6%in this fi nancial year.


5252

2014-15 2015-16 2016-17

2017-18

2018-19

2

PE

RC

EN

TA

GE

-10

-20

0

10

20

30

40

50

60

7063636363

51515151

2424

3131

EBITDA MARGIN OF THE COMPANY

28

31

16

11 11

2014-15 2015-16 2017-18 2018-192016-17

10

5

15

20

25

30

PE

RC

EN

TA

GE

0

35

NON-CORE TO CORE REVENUE PERCENTAGE

2014-15 2015-16 2017-18 2018-192016-17

₹ IN

CR

OR

E

500

0

1000

1500

2000

2500

3000

IRON ORE CHROME BAUXITE OTHER INCOME

10841084

797797

535535

838838710710

481481481481

1258125810741074

374374

17011701

11521152

314314

25602560

13531353

139139

436436436436

TOTAL REVENUE EARNED BY THE COMPANY

7.57.5

2.72.72.72.7

2.92.9

4.34.34 34 3

3.83.83 83 8

7.97.9

6.96.9

5.55.5

4.84.84.84.8

6.66.6

₹ IN

CR

OR

E

1

0

2

3

4

5

6

7

8

9

LIQUIDITY RATIOS

QUICK RATIO CURRENT RATIO

2014-15 2015-16 2017-18 2018-192016-17

SUMMARY OF FINANCIAL YEAR 2018-19 (CONT.)


JOURNEY TOWARDS SUSTAINABLE MINING

In pursuit of its journey towards Sustainable Mining, as a Responsible

Corporate Citizen, the Odisha Minning Corporation has made signifi cant

contributions in terms of utilization of mineral resources for rapid

industrialization of the state, touching lives of the people, transforming

societies around its mining regions & above all, putting in well-

coordinated efforts to protect environment.

At OMC, the top management is committed to achieve excellence

in Triple Bottom Line, which are embedded in the policy framework,

integrated management system in a continual improvement mode. With

a view to keeping up its constant focus on principles of Sustainable

Mining and incorporating them in the systems, processes & enterprise-

wide practices, several signifi cant initiatives deserve special mention as

follows:

» Formulating & Articulating Sustainability Strategy: The top

management is conscious of its strategic intent and commitment to

embed the philosophy & principles of Sustainable Mining in systems,

processes & operations.

» Implementation of IBM Star Rating System: Enterprise roll-out of

IBM Star Rating System under Sustainable Development Framework

(SDF) to institutionalize Sustainable Mining across all operative mines

from 2017-18 onward.

» Annual Sustainability Report: In order to highlight disclosure/

reporting of non-fi nancial performance of the Corporation in public

domain, 2nd Annual Sustainability Report for the year 2018-19 in line

with Global Reporting Initiatives (GRI) Standard has been uploaded

on OMC website for wider dissemination of its economic, social &

environmental performance among external stakeholders.

» Implementation of International Standards under Integrated

Management System. The major international standards pertaining

quality management, environment, occupational health, safety

and social performance i.e. ISO 9001, ISO 14001, OHSAS 18001

and Social Accountability 8000 have been deployed which cover a

signifi cant area of Sustainable Development.

» Building a culture of Business Excellence and Continual

Improvement through Total Quality Management (TQM).


SUSTAINABILITY STRATEGY ARCHITECTURE

ROLE OF TOP MANAGEMENT

The sustainability strategy of the Corporation

is based on the premise that building a

sustainable business model is as important

as sustainability performance in the course

of its mining operation, which creates &

delivers value for our shareholder (OMC

has paid INR 2,000 Crore to Govt. Of

Odisha as dividend in the last 5 years)

and stakeholders. Being conscious of

its mandate to mainstream sustainability

in mining operations, the Corporation

effectively manages its broad social and

environmental risks so that the present

needs of the community are addressed

without compromising the needs of the

future.

In order to achieve excellence in Sustainable

Mining, the Corporation has constituted

an Apex Committee under the leadership

of Managing Director to set objectives &

targets, review & measure the performance

on the Sustainable Mining front on quarterly

basis, identify opportunities for improvement

and take corrective action.

Our sustainability efforts are divided into

broad four areas:

» Governance Framework

Responsible Board, strong governance,

ethical and responsible behavior by our

workers, unions and vendors, respect for

human rights, and compliance with all laws,

rules and regulations are essential to secure

our social license to operate and create

value for all stakeholders. The Government,

being the 100% owners/shareholders,

has defi ned strategic objectives for the

Corporation to undertake responsible

mining and achieve 5-Star rating with

constant focus on community engagement

and protection of environment. The Board

of Directors clarifi es its strategic intent by

articulating broad policy guidelines to set

direction for future.

» People

Our people are the prime movers of our

business. We are committed to providing

them a safe & healthy work environment,

supporting their wellbeing and promoting

an inclusive and diverse workforce. Guided

by the principles of Sustainable Mining, our

employees are committed & competent to

contribute to overall business performance

with strong focus on continual improvement

in social & environmental dimensions.

» Economic and Social Performance

The Corporation has contributed INR 2484

crore in FY 2018-19 to State exchequer

toward royalty, DMF, NMET, dividend &

taxes, which is largely utilized for socio-

economic progress of the people. Further,

it has spent INR 229.92 Crore for society

towards donation/contribution, corporate

social responsibility, and peripheral

development & sponsorship expenses in

FY 2018-19.

Contributing to State exchequer by paying

taxes and royalties, providing direct/indirect

employment, investing in community

programs and infrastructure, and fostering

mutually benefi cial relationships facilitate

continued community engagement thereby

promoting sustainable socio-economic

development for our long-term success.

» Environmental Stewardship

We make relentless efforts on minimizing

and mitigating the impact of our mining

operation on water, land, air quality and

biodiversity, and working with stakeholders

to work out solutions to safeguard our

environment.


OMC AWARDED

CSR TIMES

AWARD 2018 FOR

BEST PSU IN

EDUCATION


IMPLEMENTATION OF IBM STAR RATING SYSTEM UNDER SUSTAINABLE DEVELOPMENT

FRAMEWORK (SDF)

Final Confi rmation on Star Rating for mine is yet to

receive from IBM. Ratings are based on provisional self-

assessment basis for both FY 17-18 and FY 18-19.

With a view to integrate responsible &

scientifi c mining, environmental accountability

& social responsibility into Sustainable

Development Framework (SDF) in the entire

mining value chain, various initiatives have

been taken to implement SDF in mining

sector across the globe. Many councils like

International Council on Mining & Metals

(ICMM) has articulated basic principles for

mining industry for its members.

In keeping with international norms &

practices, the Ministry of Mines through

Indian Bureau of Mines (IBM) as part of

its endeavor for taking up exhaustive and

universal implementation of the SDF in

mining, has evolved a system of Star Rating

of Mines. The best performing mining leases

will be awarded 5 Star. All the mining leases

which were operating for more than 180 days

in the year, has to fi ll the template designed

by IBM and a provisional Star Rating would

be awarded on self-certifi cation basis of

the evaluation template. And at later stage,

confi rmation of star rating would be given

upon due verifi cation in the next inspection

by IBM offi cial. As per the Rule 35 of amended

Mineral Conservation and Development Rules,

2017:

“Every holder of a mining lease shall monitor

his mining and allied activities as per the

notifi ed template of star rating in the format

prescribed in this behalf by the Indian Bureau

of Mines from time to time, and shall submit

online its self-assessment report before the

1st day of July every year for the previous

fi nancial year.”

The rule empowers the Regional Controller or

the authorized offi cer of the Indian Bureau of

Mines to suspend mining operations in those

mines where at least four star rating has not

been achieved within a period of two years

from the date of notifi cation of these rules or

two years from the date of commencement of

mining operations. Hence, it is essentially very

important to become 4 star mine as soon as

possible and strive for 5 star rating in coming

years. As per the Star rating template, a mine

is assessed based on following parameters:

» Managing impacts at the mine level

» Final/ progressive mine closure &

landscape restoration

» Addressing social impacts & community

engagement

» Assurance and Reporting

Self-assessment under IBM Star Rating

System: In the year 2018-19, OMC has

self-assessed all their working mines. The

provisional star rating of their mines are

given below:

DAITARI

GANDHAMARDAN-B

KURMITAR

SUKRANGI

SOUTH KALIAPANI

BANGUR

**** [88.3%]RATING FOR FY17-18* RATING FOR FY18-19 ****



*** [89.4%]RATING FOR FY17-18* RATING FOR FY18-19 ****

**** [93.1%]RATING FOR FY17-18* RATING FOR FY18-19 *****

- [88.1%]RATING FOR FY17-18* RATING FOR FY18-19 ****

*


ENVIRONMENTAL STEWARDSHIP

The Corporation has taken several initiatives in pursuit

of sustainable mining to improve the star rating of the

mines. Few of the steps are highlighted below:

» Installation of 400 KW Solar Plant at Daitari Mine.

» Installation of Solar Plants across other Mines to

reduce the carbon foot prints of their mines.

» Use of Solar street lights in the mines.

» Various mechanisms for rain water harvesting and

ground water recharging at their mines.

» Drip irrigations in the mines for Conservation of

Water.

» Permanent Water sprinklers to reduce the dust

inside the mines.

» Installation of coir matting on inactive dumps to

stabilize and further start the plantation on the

dumps.

» Installation of STP at their mines to recycle waste

water.

Thus, in the initial phase the Corporation has

achieved the milestone of having at least 4-Star

rating in all its operational mines. OMC aspires to

achieve 5-Star mine rating by FY 2020. To achieve

the same, we have developed sustainable mining

framework through Integrated Management System,

CSR strategy, and various other programs to impact

environment and community. The immediate

strategic objective to achieve 5-Star mine is the

prime focus of the leadership team and executive

management.

IMPLEMENTATION RESPONSIBILITY

In order to achieve 5-Star rating of its mine, OMC

has constituted an Apex Committee under the

leadership of Managing Director to review/measure

the performance on the Sustainable Mining front on

quarterly basis with the internal audits of the mines

based on Star Rating template, identify opportunities

for improvement and take corrective action. The

executive management and Sustainable Development

Unit (SDUs) at each mine have stepped up enterprise-

wide efforts too.


Broadly, the sustainability

report covered OMC’s

performance on economic,

social aspects and

environmental aspects.

Some of the key performance

highlights presented in the

report are as follows:

Importance to Business

Imp

ort

ance t

o S

takeho

lders

Economic Performance

Product & Service Quality

Rehabilitation & Resettlement

Labor Relations

Human Rights

Water Management

Climate Change

Ethics & Transparency

Community Engagement

Health, Safety & Security

Energy Effi ciency

Land Management

Research & Development

Material Management

Indigenous Rights

Workforce Competency &

Engagement

Diversity & Equal Opportunity

Air Emissions

Customer Satisfaction

Compliance

Waste Management

Biodiversity Conservation

Implementation of Social Accountability SA8000

Standard during the year to strengthen OMC’s

performance on social and human rights aspects

Zero fatalityachieved across all mining operations

Employee strength

of 2123 with 14%

women and 20% young

workforce

INR 72.41 crore spent

towards CSR & Periphery

development projects

16,226 no. of days spent on

human development trainings;

No. of Safety Trainings provided

has increased to 1450 man-days

Around 62% increase in mineral

production and 42% increase in

revenue over last year

Identifi cation of opportunities on energy effi ciency,

waste water management, afforestation as part of

Sustainable Development Framework(SDF) for

Star Rating evaluation

Implemented and achieved certifi cation

for Integrated Management System

(IMS) covering environmental, health,

safety, quality & social performance

Extensive Grievance

Management System

incorporated during the

year

ANNUAL SUSTAINABILITY REPORT IN LINE WITH THE GLOBAL

REPORTING INITIATIVE (GRI) STANDARDS

The Corporation has published its 2nd Annual

Sustainability Report in June 2019 for the

reporting period of the fi nancial year 2018-19,

i.e. April 1, 2018 to March 31, 2019 in line with

the Global Reporting Initiative (GRI) Standards

as part of Sustainability Development

Framework presenting information on the

economic, health, safety, environmental and

social performance. It began this journey of

sustainability reporting in FY 2017-18. This

report was prepared in accordance with

the globally acknowledged guidelines for

sustainability reporting - Global Reporting

Initiative (GRI) Standards and Metal & Mining

Sector Supplement.

It is one of the globally accepted standard

and practice to measure the progress on

sustainability, and continually monitor and

assess the impacts and benefi ts of business

operations to stakeholders. The objective

is to give our shareholders, employees,

communities where we operate and other

stakeholders a better understanding of

how we manage our operational safety,

environmental and social risks.

This report also indicates how we are evolving

and improving our corporate responsibility and

risk management systems and performance.

The Sustainability Report FY 2018-19

communicates sustainability performance of

OMC covering its seven operational mines—

Gandhamardhan, Kurmitar, Daitari, Bangur,

South Kaliapani, Sukrangi and Kodingamali.

In the report development process,

stakeholder consultations were conducted for

internal and external stakeholders to identify

and prioritize the sustainability issues that

are most material to OMC. The report was

structured around these material issues, and

the insights were useful in strengthening our

future strategic planning. The Materiality Chart

is illustrated below :

MATERIALITY CHART

KEY PERFORMANCE HIGHLIGHTS


At OMC, we have adopted an approach that is

community centric, emphasizing our willingness to make

this world a better place to live. We strongly believe that

developing strong and meaningful relationships among

communities is the key to sustainable development. In

FY 2018-2019, OMC has spent INR 229.92 Crore for

society towards donation/contribution, corporate social

responsibility, and peripheral development & sponsorship

expenses.

In order to strengthen governance and streamline our

CSR activities, the Corporation has a CSR Committee

of the Board comprising of 5 Directors (2 Independent

Directors and 3 Whole-time Directors) in compliance

with Section 135 of The Companies’ Act 2013. The

mandate of the Committee is to develop and review the

CSR policy, identify thematic areas in alignment with

Schedule VII of The Companies’ Act 2013, determine

CSR expenditure and allocate budget for various CSR

activities. The Committee organizes periodic meetings

to assess and approve suitable CSR proposals, provides

guidance to the implementation team, monitors and

reviews the overall implementation of their CSR activities.

TOTAL MONEY SPENT FOR SOCIETY

(DONATION/CONTRIBUTION, CORPORATE SOCIAL RESPONSIBILITY, AND PERIPHERAL

DEVELOPMENT & SPONSORSHIP EXPENSES)

2014-15

50

100

150

200

250

2015-16 2016-17 2017-18 2018-19

16.87

44.5162.93

143.45

229.92

₹ IN

CR

OR

E

RESPONSIBILITY TOWARDS SOCIETY


Major initiatives during FY 2018-19 are:

» In FY 2018-19, OMC spent INR 10.09 Crore

on CSR in the areas of education, health,

skill development, rural development,

promotion of sports and other themes

covered under Schedule VII of S.135,

Companies Act, 2013. Annual Report on CSR

activities is enclosed in Appendix 5.

» Various projects for promotion of education,

skill development and enhancement of

livelihoods of communities are undertaken

by providing scholarships to the meritorious

students in backward districts of Odisha

(OMC Super), supporting schools in

strengthening their infrastructure and

collaborating with State government for

construction of model schools (Adarsh

Vidyalaya)

» A unique initiative has been launched to

conceptualize & implement Multilingual

Education Programme for 25 schools in

Barbil District to ensure equity and quality

education while preserving our cultural and

linguistic heritage of indigenous people.

» Various healthcare initiatives to improve

primary & secondary services in nearby

villages in the mining regions were taken.

» One of the major focus areas of CSR

activities was improved sanitation, and

various projects were undertaken for water &

sanitation projects by declaring more than 15

villages ODF in South Kaliapani. Successful

implementation of this Project and lessons

learned are being put to use in other Mining

Regions in Keonjhar & Sundargarh mining

districts to roll out scalable & sustainable

programmes.

» In order to widen the green cover of Odisha,

plantation activities were taken up in

collaboration with Forest & Environment

Department, Government of Odisha to plant

10 lakh new saplings across 2640 hectares

in Keonjhar, Cuttack, Dhenkanal, Koraput,

Rayagada, Sundargarh, Jharsuguda and

Kalahandi districts of Odisha.

» OMC has also provided 1300 solar lights and

street lights through the district administration

in the district of Koraput, Odisha.

» In FY 2018-19, OMC sponsored and was

the offi cial partner of the Men’s Hockey

World Cup held in the month of November in

Bhubaneswar. OMC has also contracted with

Hockey India to sponsor the Indian Hockey

Team both Men & Women for the next fi ve

years.

OMC has contributed

INR 120.00 Cr to Chief Minister

Relief Fund of

Odisha.

Sponsor for Indian

Hockey Team both Men

& Women for coming fi ve

years.

AWARDS & ACCOLADES

In recognition of several fl agship and CSR projects/initiatives conceptualized & executed during the year under report, the Corporation has won

various awards at State & National level.

» ET NOW’s Global CSR Excellence & Leadership Award − 2018 under Organizational Categories for Support & Improvement in Quality of

Education from World CSR Sustainability and Economic Times, Mumbai.

» ET NOW’s Global CSR Excellence & Leadership Award − 2018 under Organizational Categories for Best use of CSR practices in Mining

Sector from World CSR Sustainability and Economic Times.

» CSR Times Award 2018 for Best PSU in Education on the occasion of National CSR Summit in New Delhi.

» Biju Patnaik Award for Best Contribution to Promotion of Sports and Games 2017 received from Hon’ble Chief Minister, Odisha on the

occasion of Biju Patnaik Award ceremony.

» National CSR Leadership Award for Outstanding Contributions to the cause of the Sports and CSR in Sept 2018.

» Community Service Initiative Award 2018 at Odisha CSR Forum in recognition of social services rendered in overall interest of the

communities across all mining regions.

» State Level Award for “Maximum CSR outreach in terms of districts covered”at Make in Odisha Conclave 2018.

» The Odisha Mining Corporation Limited’ has been declared as the Winner of ‘Golden Peacock Award for Corporate Social

Responsibility’ for the year 2018 at International Conference on CSR by Institute of Directors in Mumbai.

» OMC rated as ET Challenger 2Good in New Delhi in Feb 2019.


SPONSORSHIP

During the year, the Corporation has

released a total of INR 37.35 Crore towards

sponsorship which majorly includes:

» INR 12.50 Crore towards sponsorship

to Hockey India, New Delhi for Offi cial

Partner of the Odisha Hockey Men’s World

Cup Bhubaneswar 2018.

» INR 10.30 Crore paid to Hockey India,

New Delhi towards sponsorship of Indian

Hockey Team by OMC of which INR 3.33

Crore booked for 1st year sponsorship

contribution to Hockey India.

» INR 3.00 Crore contributed to Municipal

Commissioner, Bhubaneswar Municipality

Corporation (BMC) for Sponsorship for

Implementation of Street Art and Mural

Projects (STAMP) in Bhubaneswar.

» INR 3.00 Crore contributed to

Bhubaneswar Development Authority

(BDA) towards sponsorship for organizing

FEST (Bhubaneswar City Festival)

» INR 1.22 Crore contributed to PCCF,

Odisha towards Sponsorship for

implementation of Urban Tree Plantation

in Anandapur Municipal area by WL

Division, Keonjhar and for the 2nd year

maintenance cost in respect of 40,900

seedlings planted in the Mining District of

Kalahandi, Rayagada, Koraput and Jajpur.

DONATIONS

(INR 120.16 CRORE PAID DURING FY 2018-

19)

» INR 100.00 Crore contributed to the

CMRF, Odisha for the noble cause to

serve people in distress, “Harischandra

Sahayata” and “Mahaprayan Yojana” to

help the people organize the last rites of

their beloved ones.

» INR 20.00 Crore contributed for further

mobilization of fund to the State Aahaar

Society.

» INR 10.00 Lakh contributed to Chief

Minister’s Relief Fund, Kerala for fl ood

affected people of Kerala.

» INR 6.00 Lakh contributed to M/s

Swabhiman towards SASHAKT - First

State level championship on RPWD Act.

ADVERTISEMENT AND

PUBLICITY

During the year, the Corporation has

released a total of INR 2.27 Crores towards

advertisement and publicity.

THE CONSERVATION OF

ENERGY, TECHNOLOGY

ABSORPTION, FOREIGN

EXCHANGE EARNINGS AND

OUTGO AND RESEARCH &

DEVELOPMENT

Details of energy conservation, Foreign

Exchange Earnings & outgo and Research

& Development activities undertaken by the

Company in accordance with the provisions

of Section 134(3) (m) of The Companies Act,

2013, are given in Appendix 6.

PERIPHERY DEVELOPMENT

The total expenditure booked under Periphery

Development is INR 62.32 Crores. The major

areas of expenditures are being mentioned as

below:

» INR 25.60 Crores were spent in Assistance

towards Construction of Model Schools

at different blocks across Odisha.

» INR 7.44 Crores were spent in

Construction of basic infrastructures

(124 nos) in and around Kodingamali Mines

for overall development.

» INR 5.09 Crores were spent for planting 1

tree per 10 metric tonnes of ore extracted

as part of our green initiative.

» INR 2.45 Crores spent for Modernization

of Town Hall, Bhawanipatna and three

other projects.

» INR 1.97 Crores spent in basic

infrastructures in and around Kaliapani

mines.

» INR 1.56 Crores dedicated towards

Construction of vheck dams to support

Agriculture allied activities at Barbil Region


IMPLEMENTATION OF INTEGRATED MANAGEMENT SYSTEM (IMS) BASED ON

INTERNATIONAL STANDARDS

The Corporation has been making consistent

and continuous effort to maintain quality

standards by deploying appropriate

technology and management practices

for optimal use and conservation of

mineral resources. It is also committed to

Environmental protection and all mining

is undertaken in line with the EMP and

environmental approvals. Being committed

to safety, safety system in line with DGMS

guidelines has been put in place. Safety

Management Plan (SMP) at all Mines level

is under implementation and regular safety

audit is carried out by cross-functional internal

team.

As part of its top management commitment

to quality, environment, health and safety at

workplace, the Corporations has developed

an IMS policy. In terms of its IMS Policy, the

major international standards i.e. ISO 9001,

ISO 14001, OHSAS 18001 and SA 8000 have

been deployed which cover a signifi cant area

of Sustainable Development. The extensive

tools associated with these standards

are being utilized towards Sustainable

Development. All the policies are embedded

and aligned with:

• ISO 14001:2004 (Environmental

management systems)

• ISO 9001:2008 (Quality Management

systems)

• OHSAS 18001:2007 (Occupational health

and safety)

• Environmental Policy and CSR policy

The exclusive policy for Corporate Social

Responsibility acts as a strategic tool for

integrating business processes with social

processes for overall development of the

society. The CSR activities are in line with

Sustainable Development Goals (SDG).

Implementation on-ground:

Based on the aforementioned interventions,

procedures/manual have been established

based on which work has been carried out for

smooth & effi cient operation. Internal control

and monitoring mechanisms are strengthened

by regular review meetings and internal

audits. Safety standards at mines have been

improved due to awareness programmes,

safety audits and mock drills conducted in all

operative mines.

Similarly, bio-medical and hazardous waste

disposal mechanisms have been developed

for proper disposal of wastes at all operative

mines. Several stakeholders, customer, vendor

and internal meetings have been conducted

to make them aware of the importance

and benefi ts of the implementation of the

standard. During this process, challenges

were encountered for implementation of

all three standards with regard to resource

allocation, procedural delays due to dispersed

and remotely located mines, changing

mindset of people from status-quo to

continual improvement, documentation of the

work being carried out at different sections,

identifi cation of risks for all the processes etc.


The SA8000® Standard is the leading

social certifi cation standard for industries/

organizations across the globe. Established

by Social Accountability International in 1997

as a multi-stakeholder initiative, the Standard

has evolved into an overall framework that

helps certifi ed organizations demonstrate their

dedication to the fair treatment of workers

across industries and in any country. SA

8000 measures social performance in eight

areas important to social accountability in

workplaces, anchored by a management

system element that drives continuous

improvement in all areas of the Standard.

Top Management Commitment

In line with SDF (Sustainable Development

Framework) guidelines, the Policy for Social

Accountability 8000 has been formulated

followed by setting the objectives and

action plan for fulfi lling those objectives for

achieving SA 8000 certifi cation.

The Corporation has been consistently

committed towards development, maintaining

and applying socially acceptable practices

in the work place. The organization and its

top management ensure all the clauses from

“Child Labour” to “Management System” of

the SA 8000 standard are adhered to across

all the operative mines and at Head Offi ce as

well.

Implementation

The journey of SA 8000 implementation

started in Feb 2018. The Corporation is

committed to improve its working conditions

by providing safe workplace for the

employees, abide by the local and national

laws and respect international instruments

(ILO, UDHR etc.) Pre assessment, gap

analysis, internal audit report and self-

assessment/evaluation, procedures have

been developed as per the requirement of

the SA 8000 standard. Awareness programs

have been conducted at all levels from Top

Management to people working at the Mines

level to make them understand the need and

benefi ts of SA 8000 implementation. During

the process of implementation many aspects

were prioritized with regard to health and

safety of people working at Mines and Head

Offi ce, remuneration, working hours, collective

bargaining, prohibition of “child labour, forced

labour and discrimination”, mechanisms of

grievance redressal, prevention of sexual

harassment and disciplinary actions and

communication at different levels.

The major interventions during the

implementation are as follows:

» Framing of policy and Objectives

» Preparation of SA 8000 Manual, procedures

(09 Nos.) for all the processes and its

review

» Risk identifi cation and Assessment with

respect to Social Accountability standards.

» Implementation of the Action Plan of the

Management Reviews and Internal Audits.

» Awareness programs, Training of Trainers,

Internal Audit Training Programs.

» Effective Communication and record

maintenance

Based on the aforesaid interventions, internal

control and monitoring mechanisms are

strengthened by regular review meetings

by Social Performance Teams constituted

at mines and Head Offi ce level, and internal

audits conducted by trained internal auditors.

The conditions of the people working in the

Mines were reviewed to bring in improvement

wherever necessary. The workers were made

aware of the labor laws and their rights.

Grievance Mechanism has been formalized.

The communication is enhanced both

ways (top to bottom and vice versa). Safety

conditions for the people working in the mines

and Head Offi ce have improved.

The Certifi cation Body (CB), M/s Bureau

Veritas India Limited has completed the Audit,

evaluated the social performance on ground,

merit of the management system and the

top management commitment. The CB has

recommended for SA 8000® certifi cation

which is awaited. The Corporation is

committed to sustain the standard in future

as well.

SOCIAL ACCOUNTABILITY (SA 8000)


Business Context

During the Strategic Planning workshop

held during 2017-18, embracing Business

Excellence (BE) through Continual

Improvement Programs (CIP) as part of

Perspective Plan-2025 emerged as a strategic

objective of the Corporation to build a culture

of continual improvement & excellence on

long-term to maintain the competitiveness and

sustain the practices in line with international

standards. BE is the continuous improvement

of products, services and processes through

incremental or breakthrough improvements.

CIP is the means to attain BE. OMC’s

objective is to establish a culture of continuous

improvement throughout the organization so

as to attain their goal of establishing Business

Excellence in their organization. They key

criteria for establishing a CIP include:

» Foster innovation and creativity

» Promoting culture of idea/ knowledge

exchange

» Collaboration amongst the workforce

» Empowering the workforce to implement

their ideas

» Administrative structure for governing the

idea implementation

» Use of technology to promote internal and

external engagement

The Corporation has launched two parallel

initiatives in order to embrace BE –

1. SaHbhagita – Employee Suggestion

Scheme fostering individual creativity and

ingenuity of employees to help identify

and implement improvement projects

across OMC

2. Quality Circles – Expertise of teams

belonging to various sections/

departments being used to identify and

implement improvement projects across

OMC

IN PURSUIT OF BUSINESS

EXCELLENCE AND CONTINUAL

IMPROVEMENT


SaHbhagita

After extensive consultations, deliberations,

reviews, meetings and workshops with all

stakeholders involved, SaHbhagita scheme

was approved by the Board of Directors on

29th January, 2019. SaHbhagita has been

designed keeping the employees at its core.

It provides an opportunity for everyone to

lend their voice to the Corporation’s growth

story, and benefi t from the successful

implementation of their ideas. The scheme

provides a platform for the employees to

share their ideas and solutions to solve the

problems and issues within the organization.

Every employee is eligible to provide his/ her

suggestions under SaHbhagita. The objective

of SaHbhagita includes:

» Promote employee participation in building

culture of continuous improvement in OMC

» Promote constructive thinking and

knowledge sharing among people.

» Improve quality, compliance, production,

sales, profi tability and sustainability of the

organization.

» Recognize and reward the ingenuity,

wisdom and creativity of employees.

A comprehensive framework has been built in

order to screen and select the most benefi cial

suggestions. Each suggestion coming

from employees would be evaluated on 3

parameters, namely, Ease of Implementation,

Expected Benefi ts and Time Taken to

Implement.

The scheme also attempts to suitably reward

the OMC employees for their valuable

suggestions and their efforts in implementing

those suggestions. OMC’s management is

committed to ensure that employees are

not only made active participants in OMC’s

growth journey, but they also get a share in

the benefi ts accrued. The suggestion-maker

would get a share of 8% in project benefi ts;

the team members who have worked on

project implementation get a share of 12% in

project benefi ts.

This is in addition to the INR 2,000 that every

shortlisted suggestion would get even before

project implementation. All this is designed

to ensure enthusiastic participation from the

employees in OMC’s growth journey.

A great deal of effort has been taken to ensure

employees across OMC are made aware

about SaHbhagita. More than 35 sessions

have been organized across mines to ensure

that the information about the scheme is

permeated across the organization.

SaHbhagita aims to utilize the wisdom of

OMC employees to solve issues affecting

OMC. It is expected to keep the organization

focused on continuously fi nding solutions to

problems affecting productivity, profi tability,

quality, regulatory concerns and environmental

risks, thereby embracing Excellence in its

operations.

Quality Circles

The rationale behind forming Quality Circles

was to have a team of highly motivated and

trained professionals who are equipped to

solve the day-to-day and systemic issues and

challenges being faced by the organization.

In order to put this into practice, 6 Quality

Circle (QC) teams were formed for 7 mines.

Each Quality Circle was headed by a

Project Team Leader (PTL). The PTLs and

QC members were selected after gauging

the interest of the members in taking part

in improvement initiatives, their prior work

experience and feedback from Regional

Managers, Mines Managers and the OMC

Management at HO. Consequently, the QC

movement was scaled up, and QCs were

formed according to sections in each mines.

More than 30 QCs have been formed till date.

Capacity Building Support

In order to equip the QCs with the right

skillsets and profi ciencies, numerous training

programs were organized throughout the year.

The QC members were trained on Quality

Circle Tools and Methodologies, Leadership,

5S, Microsoft Excel, Microsoft PowerPoint,

etc.

Given the right amount of training and

motivation, QC teams were able to take

up and implement effective and innovative

solutions across different work areas. They

have taken up projects related to sales,

supply chain, skill upgradation, environment,

sustainability, geology, connectivity etc. The

members of the Quality Circles were equipped

with the right kind of tools and training in

order to empower them to identify, ideate and

undertake improvement projects. As on date,

QCs have completed, taken up or plan to take

up more than 60 improvement projects. One

of the QC teams even managed to win the

Bronze award in a pan-India QC competition,

CCQC Raipur, 2018 for their project which

involved preparation of a software for

generating GST Challans online.

Building Quality Orientation

Teams have taken up projects related to

throughput improvement, product mix

optimization, sub-grade liquidation, drip

irrigation, use of discarded materials to

generate solar electricity, replacement of

non-effi cient bulbs with solar lights and

energy effi cient bulbs, ground water recharge

etc. Their efforts have resulted in signifi cant

benefi ts and savings in terms of revenue

growth, energy usage and electricity costs,

use of solar energy, growth of saplings, waste

management, reduced pollution and improved

ground water levels.

Reward & Recognition

As a result, Quality Circles completed 19

different projects in FY 2019. In order to

evaluate the workings of the Quality Circles,

and reward their hard work and ingenuity,

a QC competition was organized for these

completed projects. The Apex Team under

the leadership of Chairman and MD, have

decided to incentivize the unique contributions

of the leading QCs, who have made an impact

on the Corporation’s bottom line and bringing

innovation to workplace.


RISK MANAGEMENT

The mining industry, particularly in emerging markets, is

usually susceptible to operational risks. Workers’ safety,

increasingly stringent regulations, reliance on machinery &

technology, inconsistent demand for raw materials and high

commodity prices are issues that every mining company has

grappled with. At OMC, we have developed a sound risk

management strategy to identify and assess risks across

the mining project lifecycle. We believe that a well-defi ned

risk governance structure serves to communicate the

approach of risk Management throughout the organisation

by establishing clear allocation of roles and responsibilities

for the management of risks on a day to day basis.

The risk management governance at OMC, is headed by the

Board of Directors. The Board is responsible for identifying,

evaluating and managing all signifi cant risks faced by the

company. A robust Risk Management Policy has been

developed and approved by the Board of Directors. The

Board reviews strategic risks and opportunities arising from

changes in the business environment regularly. The Board

conducts timely reviews of key risks and exposures on a

rotating basis, to bring about any required modifi cations in

the risk management practices.

Inform

Ass ist

Attract

E ngage

AttractPOLITICAL

ECONOMIC KEY

BUSINESSESENVIRONMENTAL

RESOURCE

AVAILABILITYOPERATIONAL

CONCERNS

LICENSE TO

OPERATE

FIVE YEAR REVIEW

The selected fi nancial and operational information below has

been derived from the historical audited fi nancial statements

of the The Odisha Mining Corporation.

FINANCIAL DATA

For the years ending 31st

March Amounts

FY 2018-19

(₹ in Crore)

FY 2017-18

(₹ in Crore)

FY 2016-17

(₹ in Crore)

FY 2015-16

(₹ in Crore)

FY 2014-15

(₹ in Crore)

Total Revenue 4,052.05 2,853.09 2,331.43 1,548.08 1,881.26

Total Revenue incl. other

income4,487.69 3,167.38 2,705.57 2,029.30 2,416.52

Profi t Before Tax 1,259.59 -863.53 1,320.51 998.25 1,487.10

Profi t After Tax 789.88 -463.48 776.39 638.09 977.32

Net Worth 5,639.85 5,461.78 5,898.59 5,730.13 5,702.03

Working Capital 3,796.11 3,162.60 4,006.94 3,897.70 4,269.82

OPERATIONAL DATA PRODUCTION

Minerals (In ‘000 tonne) (In ‘000 tonne) (In ‘000 tonne) (In ‘000 tonne) (In ‘000 tonne)

Iron Ore 10,396 7,918 6,366 5,971 3,170

Chrome Ore 1,188 893 1,206 927 732

Bauxite 2,700 53 - - -

OPERATIONAL DATA - SALES

Minerals (In ‘000 tonne) (In ‘000 tonne) (In ‘000 tonne) (In ‘000 tonne) (In ‘000 tonne)

Iron Ore 10,338 7,419 7,162 4,338 3,497

Chrome Ore 1,125 1,039 849 628 615

Manganese Ore - 0.592 - - -

Bauxite 1,690 - - - -


Dear Members,

Your Directors take pleasure in presenting the 63rd Annual Report

of your company along with the audited statement of accounts

including the consolidated accounts and the reports and comments

thereon for the year ended on March, 31 2019.

DIRECTOR’S REPORT02


FINANCIAL HIGHLIGHTS

The fi nancial highlights for the year 2018-19 under review as compared to

the previous year are indicated below in brief.

Total Revenue

INR 4,488 in 2018-19 as

compared to

INR 3,167 in

2017-18

ParticularsFinancial Year

2018-19 (₹ in crore)

Financial Year

2017-18 (₹ in crore)

1. Revenues

Revenue from Operations 4,052.05 2,853.09

Other Income 435.65 314.29

Total Revenue 4,487.70 3,167.38

2. Expenditures

Changes in Inventories (58.34) (43.52)

Employee Benefi t Expenses 227.62 267.06

Finance Costs 5.51 8.73

Excise Duty - 2.20

Other Expenditures 2,943.06 3,688.18

Depreciation, Amortization, and Impairment expenses 110.25 108.26

Total Expenditure 3,228.10 4,030.91

3. Profi t / (Loss) before tax (1 - 2) 1,259.59 (863.53)

4. Less: Provision for Income Tax & DTA 469.71 (400.04)

5. Net Profi t / (Loss) after tax (3 - 4) 789.88 (463.49)

6. Add/ (Less): Other Comprehensive Income (9.03) 26.68

7. Total Comprehensive Income (5 ± 6) 780.85 (436.81)

8. Available Profi t for the period 780.85 (436.81)

9. Add: Opening Balance of Profi t b/f 3,104.59 3,541.40

10. Available Profi t as on year end (8 + 9) 3,885.44 3,104.59

11. Less: Interim Dividend 500.00 -

12. Less: Corporate Dividend Distribution Tax 102.78 -

13. Closing Retained Earning as on year end (10 -11 - 12) 3,282.66 3,104.59

14. Add: General Reserve as on year end 2,308.03 2,308.03

15. Cumulative Profi t as on year end (13 + 14) 5,590.69 5,412.62

16. Add: Capital Reserve 17.71 17.71

17. Other Equity/ Reserves and Surplus (15 + 16) 5,608.40 5,430.33


PERFORMANCE HIGHLIGHTS

COMPARISON OF PROFIT/(LOSS) AFTER TAX AND PROFIT/(LOSS) BEFORE TAX

2014-1500

-500

-1000

500

1000

1500

2015-16 2016-17

2017-18

2018-19₹ IN

CR

OR

E

1487

977 998

638

1321

776

-864

-403

1260

790

₹ IN

CR

OR

E

RESERVES & SURPLUS / OTHER EQUITY

2014-15 2015-16 2016-17 2017-18 2018-19

5300

5400

5500

5600

5700

5800

5900

5671

5699

5867

5430

5608

TOTAL INCOME

REVENUE FROM IRON ORE REVENUE FROM CHROME ORE REVENUE FROM BAUXITE ORE OTHER INCOME

₹ IN

CR

OR

E

780 722 1,141

2,1142,378

1,826

3,0292,604

2,199 2,435 2,4172,029

2,7063,167

4,488

2014-152004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-10 2011-12 2012-13 2013-14 2015-16 2016-17 2017-18 2018-19

CAG-30%

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

11,000

10,000

Profi tability and Reserve and Surplus

Other Equity

» During FY 2018-19, the company earned PBT

of INR 1,259.59 Crore (previous year Loss

of INR 863.53 Crore) and Profi t after Tax of

INR 789.88 Crore (previous year Loss of INR

463.48 Crore).

» Other Comprehensive Income during the year

was INR 9.03 Crore (Actuarial Loss) (Previous

Year INR 26.68 Crore (Actuarial Gain). The

Total Comprehensive Income for the Financial

Year is INR 780.85 Crore (Profi t) (Previous Year

INR 436.81 Crore (Loss)).

» The Retained Earnings stood at INR 3,282.66

Crore at the end of Financial Year 2018-19

as against INR 3,104.59 Crore at the end of

the previous Financial Year 2017-18. The

Retained Earnings is increased by INR 178.07

Crore as compared to last year.

» The General Reserve of the company stood

at INR 2,308.03 Crore at the end of both

the Financial Years as on 31.03.2019 and

31.03.2018. During this period no funds were

transferred to General Reserve.

» The Capital Reserve of the company stood

at INR 17.71 Crore at the end of both the

Financial Years as on 31.03.2019 and

31.03.2018. The Reserves & Surplus/ Other

Equity position of the Company as on

31.03.2019 is INR 5,608.40 Crore (previous

year INR 5,430.33 Crore). The Other Equity/

Reserves & Surplus is increased by INR

178.07 Crore as compared to last year.


PRODUCTION

Actual vs Budgeted

Mineral wise Budgeted production target vis-à-vis

achievement for 2018-19 is as follows:

Production Comparison

» IRON ORE: The production achievement for the

FY 2018-19 in respect of Iron Ore is 10.396 Million

Tonnes against the original budgeted target of 9.720

Million Tonnes. The mining operation resumed at

Gandhamardan Block-A Iron Ore Mine during FY 2018-

19 after 2009.

» CHROME ORE: The production achievement for the

year 2018-19 in respect of Chrome Ore is 1.189 Million

Tonnes against the original budgeted target of 1.163

Million Tonnes.

» BAUXITE: OMC has diversifi ed its business activity

and started Bauxite mining at Kodingamali Bauxite

Mine after obtaining required statutory clearances. The

production achievement for the year 2018-19 is 2.700

Million Tonnes against the original budgeted target of

3.000 Million Tonnes. Now the mine is being operated

at its E.C. limit level of 3.000 Million Tonnes per Annum.

Comparison vis-à-vis Financial Year FY 2017-18

The quantity of production of Iron Ore was 10.396 Million

Tonnes in FY 2018-19 against 7.918 Million Tonnes in FY

2017-18 showing an increase of 31%. The quantity of

production of Chrome Ore was 1.188 Million Tonnes in

FY 2018-19 against 0.893 Million Tonnes in FY 2017-18,

showing an increase of 33.03%. The quantity of production

of Bauxite in FY 2018-19 was 2.700 Million Tonnes,

compared to 0.053 Million Tonnes during FY 2017-18. The

quantity of production of Iron Ore, Chrome Ore and Bauxite

taken together have increased by 61.14% over previous

Financial Year (production quantity of Ores in Financial

Year 2018-19 was 14.284 Million Tonnes & in FY 2017-18

was 8.864 Million Tonnes). The quantity of production of

Manganese Ore, Lime Stone & Gem Stone has been nil

during the previous and current fi scal years.

9.72 MT BUDGETED

10.39 MTACHIEVEDPRODUCTION FOR IRON ORE

1.16 MT BUDGETED1.18 MTACHIEVED

PRODUCTION FOR CHROME ORE

3 MT BUDGETED

2.7 MTACHIEVEDPRODUCTION FOR BAUXITE

PRODUCTION ACHIEVEMENT

QU

AN

TITY

IN 0

00’ M

T

2014-15

2000

4000

6000

8000

10000

12000

14000

16000

2015-16 2016-17 2017-18 2018-19

14284

8864

75726898

3902

FUTURE ROAD MAP OF PRODUCTION

QUANTITY IN MILLION TONNE

252010 1550

1.27

32019-2

0

12.27


SALES

The quantity of sale of Iron Ore,Chrome Ore, and

Bauxite Ore taken together has increased by 55%

over previous Financial Year (Sales quantity of Ores

in FY 2018-19 is 13.152 Million Tonnes & in FY 2017-

18 was 8.459 Million Tonnes). The quantity of sale of

Iron Ore (in FY 2018-19 is 10.338 Million Tonnes & in

FY 2017-18 was 7.419 Million Tonnes) increased by

39.3% over previous fi nancial year. The quantity of

sale of Chrome Ore (in FY 2018-19 is 1.125 Million

Tonnes & in FY 2017-18 was 1.039 Million Tonnes)

increased by 8.2% over previous fi nancial year. In

2018-19, the quantity of Bauxite sales was 1.689

Million Tonnes, which was nil in the previous year.

There has been increase in total Sales during the

Financial Year 2018-19 in terms of value over

previous Financial Year by 42.0% (in FY 2018-19 INR

4,052.04 Crore & in FY 2017-18 INR 2,853.09 Crore).

The sale turnover of Chrome ore (INR 1,353.53 Crore

in FY 2018-19 against INR 1,151.98 Crore in FY

2017-18) has increased by 17.5% over comparing

to previous Financial Year. Sales turnover of Iron

ore (INR 2,559.54 Crore in FY 2018-19 against INR

1,700.94 Crore in FY 2017-18) has increased by

50.5% over previous Financial Year. In FY 2018-19,

Bauxite Ore sales amounted to INR 138.97 Crore,

which was nil in previous year.

With a view to have better, transparent & effective

marketing and pricing, sale of Chrome Ore/Chrome

Concentrate, Iron Ore & Bauxite to end use plants

& traders at present is made through e-auction

conducted through M/s MSTC Limited. OMC

supplies to end use industries of the State through

Long-term Linkage (LTL) Contract as per guidelines

set by the Government.

OMC has signed LTL Agreements with 51 nos. of

Iron Ore buyers, with 9 nos. of Chrome Ore buyers

& with 1 nos. of Bauxite buyers for supply of annual

quantity of 9.0 million tonnes of iron ore, 0.9 million

tonnes of Chrome Ore/Concentrate & 2.1 million

tonnnes of Bauxite respectively.

In order to improve upon the sales turnover, the

Corporation has taken several measures like

relaxation of eligibility criteria, exemption/reduction

of EMDs to be deposited by the buyers, reduction

in the auction period, extension of lifting period to

facilitate lifting, relaxation in penalty provisions,

acceptance of Bank Guarantees and Letter of

Credits etc.

During the Financial Year (2018-19), the market price

for Iron Ore CLO/Fines has shown an increasing

trend with increase in sale quantity and value.

The market price of Chrome Ore/concentrate has

exhibited an increase during the Financial Year

2018-19. However, the sales quantity and value has

increased during the year.

QUANTITATIVE SALES TREND

COMPARISON OF REVENUE TREND

2014-15

500

0

1000

1500

2000

2500

3000

2015-16 2016-17 2017-18 2018-19

CROME ORE

CROME ORE

IRON ORE

IRON ORE

BAUXITE

BAUXITE

₹ IN

CR

OR

E

10841084

797797838838838838

710710

1258125810741074

11521152

1701170117011701

2560

1354

139

2014-15

2

0

4

6

8

10

12

2015-16 2016-17 2017-18 2018-19

QU

AN

TIT

Y I

N M

ILL

ION

S M

T

3.53.53 53 5

0.60.6 0.60.6

4.34.3

7.27.27 27 2 7.47.47 47 4

1.01.0 1.11.11 11 11.71.7

10.310.3

0.80.8


TOTAL INCOME EARNED

2,559.54, 57%435.65,10%

REVENUE FROM IRON ORE

1,353.53,30%REVENUE FROM CHROME ORE

138.97,3%REVENUE FROM BAUXITE ORE

OTHER INCOME

BREAKUP OF OTHER INCOME EARNED

FOR IN FY 2018-19

300.61, 9%

110.25, 3%

EMPLOYEE BENEFIT EXPENSES

227.63, 7%

OTHER EXPENSES

1216.31, 38%SELLING AND DISTRIBUTION EXP.

679.69, 21%PRODUCTION AND PROCESSING EXPENSES

693.61, 22%COMPENSATION FOR MP& CTO

172, 40%

79, 18%

39, 9%

54,12%

INTEREST ON FD

OTHER

INCOME TAX REFUND

INTEREST ON OTHER FINANCIAL ASSETS

WRITE BACK OF OLD LIABILITY

92,21%

CHROME ORE SALES QUANTITY

IN M

ILL

ION

TO

NN

ES

0.7

0.6

1.0

1.1

0.7

0.9

1.0

0.3

0.5

0.7

0.6 0.6

0.8

1.0

1.1

0.1

0.2

0.3

0.4

0.6

0.7

0.8

0.9

1.0

1.2

1.1

1.3

1.4

1.5

0.5

IN M

ILL

ION

TO

NN

ES

3.0 3.1 3.5 4.55.2

6.2

4.2 4.02.7

3.2 3.5 4.3

7.27.4

10.3

CAG-31%

IRON ORE SALES QUANTITY

3

6

9

12

15

18

21

24

27

33

30

2014-152004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2015-16 2016-17 2017-18 2018-19

TOTAL EXPENSES INCURRED

(Amount in INR Crore, Percentage)

2014-152004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2015-16 2016-17 2017-18 2018-19

DEPRECIATION, AMORTISATION AND IMPAREMENT


OTHER INCOME

Other Income of INR 435.65 Crore during the

year (previous year INR 314.30 Crore) mainly

consists of the following:

» Interest on Fixed Deposit of INR 171.76

Crore (previous year of INR 182.05 Crore).

» Interest Income from Inter Corporate Loan

(ICL) provided to M/s GRIDCO INR 40.34

Crore (previous year INR 48.35 Crore),

Interest Income from Inter Corporate Loan

(ICL) provided to M/s NINL INR 19.79 Crore

(previous year INR 22.36 Crore) & Interest

Income from ICL provided to M/s IDCOL

INR 10.68 Crore (Previous year INR 2.12

Crore).

» Write back of excess liability INR 79.29

Crore (previous year INR 7.08 Crore).

» Receivable from M/s IDCOL for INR 16.41

Crore (Previous Year INR 16.41 Crore) on

account of payment for NPV, Stamp Duty

etc.

» Interest income from Income Tax

Department was INR 54.05 Crores in FY

2018-19 (Previous Year NIL.)

CONSOLIDATION

This year OMC has consolidated its

accounts with its Subsidiary/Joint Venture/

Associate Companies i.e. M/s. Odisha

Mineral Exploration Corporation Limited,

M/s. Odisha Thermal Power Corporation

Limited, M/s. Nuagaon Coal Company

Limited, M/s. Mandakini B Coal Corporation

Limited, M/s. Neelachal Ispat Nigam

Limited, M/s Haridaspur Paradeep Railway

Company Limited and M/s Anugul Sukinda

Railway Limited as per Section 129(3) of

The Companies Act 2013 and prepared the

Consolidated Financial Statements which was

approved and authenticated by the Board

of Directors (BoD) as per Section 134 of The

Companies Act 2013 and audited, certifi ed

and reported by the Statutory Auditors as

per Section 143 (2) of The Companies Act,

2013. The C&AG has also conducted the

supplementary audit as per Section 143(6) (b)

of The Companies Act 2013. Other Statistical

& Financial Highlights and Results are

attached to this report as Appendix 1.


2014-15

200

400

600

800

1000

2015-16 2016-17 2017-18 2018-19

ROYALTY PAID TO GOVT.OF ODISHA

₹ IN

CR

OR

E

506

349335

436

892

2014-15

100

200

300

400

500

2015-16 2016-17 2017-18 2018-19

DIVIDEND PAID TO GOVT. OF ODISHA

₹ IN

CR

OR

E

500 500 500 500

0

DIVIDEND

During the current year, the Corporation has paid to the

State Government INR 500 Crore as Dividend for which

Corporate Dividend Distribution Tax of INR 102.78 Crore

was paid to Income Tax Authority during the last year. No

Dividend has been paid to the State Government for the FY

2017-18 in view of Net Loss incurred.

PARTICULARS OF LOANS,

GUARANTEES OR INVESTMENTS

UNDER SECTION 186

Out of total Inter Corporate Loan of INR 1,500 Crore

extended to GRIDCO Limited from 2012-13 to 2015-

16, the Corporation has an outstanding amount of INR

373.13 Crore as on 31st Mar 2019 and INR 306.36 Crore

as on 31st July 2019 towards the principal sum. Also

the Corporation has an outstanding towards principal of

INR 170 Crore as on 31st March 2019 and INR 160.56

Crore as on 31st July 2019 from Neelachal Ispat Nigam

Limited (NINL) on account of Inter-Corporate Loan (ICL)

extended to it in FY 2015-16. Further, the Corporation has

an outstanding principal of INR 119.80 Crore ( INR 107.96

Crore-Interest Bearing and INR 11.84 Crore Non-Interest

bearing) towards loan extended to IDC as on 31st March

2019 and INR 118.77 Crore (INR 107.44 Crore Interest

bearing & INR 11.32 Crore Non-interest bearing) as on 31st

July 2019.

PUBLIC DEPOSITS

The Company has not accepted any deposits from the

public in terms of Section 73 of The Companies Act 2013

read with the Companies (Acceptance of Deposits) Rules

2014.

SHARE CAPITAL

During the year, no allotment of shares has been made

by the Corporation. The Authorized Share Capital of the

Company is INR 1,00,00,00,000 (Rupees One Hundred

Crore Only) divided into 1,00,00,000 (One Crore) number

of equity shares of INR 100 (Rupees One Hundred Only)

each. The issued, subscribed and paid-up capital is INR

31,45,48,000 (Rupees Thirty One Crore Forty Five Lakhs

Forty Eight Thousands Only) divided into INR 31,45,480

(Thirty One Lakhs Forty Five Thousand Four Hundred

Eighty) numbers of equity shares of INR 100 (Rupees

One Hundred Only) each. Government of Odisha and

its nominees hold the entire equity share capital of the

Corporation.

EXTRACT OF THE ANNUAL RETURN

The Extract of Annual Return in Form MGT-9 pursuant to

Section 92(3) of the Companies Act 2013 and Rule 12 of

The Companies (Management and Administration) Rules

2014 is attached in Appendix - 4.

2018-192017-182016-172015-162014-15

1734.461517.18

1018.15

2483.63

Royalty+NMET+Dividend+Taxes = Grand Total Paid to Government

CONTRIBUTION TO STATE EXCHEQUER

500

0

1000

1500

2000

2500

3000

₹ IN

CR

OR

E

1650.13


AUDIT COMMITTEE REPORTS

C&AG REPORT

The Comptroller and Auditor General of

India (C&AG) have given their comments on

the Standalone and Consolidated Financial

Statements (Accounts) of the company for

the FY 2018-19 under Section 143 (6) (b) of

The Companies Act 2013 which are placed at

Appendix 8 and 9 respectively.

STATUTORY AUDITORS

M/s. ABP & Associates, Chartered

Accountants, Bhubaneswar were appointed as

Statutory Auditors for the FY 2018-19 by the

Offi ce of the Comptroller and Auditor General

of India vide Letter No.CA. V/COY/ORISSA,

ORMINC (1)/1288 dt.01.10.2018 Under

Section 139 (5) of The Companies Act 2013.

COST AUDITORS

The Board of Directors have re-appointed M/s.

Niran & Co., Cost Accountants, Bhubaneswar

as the Cost Auditor of the company for FY

2018-19.

EXPLANATIONS OR

COMMENTS BY THE BOARD

ON EVERY QUALIFICATION,

RESERVATION MADE BY THE

AUDITORS

The comments of Management on the

observations of Statutory Auditors and C&AG

of India, on fi nancial statements of OMC for

FY 2018-19 as per the provisions of Section

134(3) of The Companies Act 2013 are

enclosed as Appendix 2 and 3 respectively.

SECRETARIAL AUDIT REPORT

Since OMC is a Private Limited Company, it is

not required to obtain Secretarial Audit Report

under Section 204(3) of The Companies Act

2013.

INDUSTRIES SCENARIO M/s.

The Odisha Mining Corporation Limited

(OMC) is a Public Sector Undertaking

Company, owned by the Government

of Odisha, incorporated in the State

of Odisha, vide Corporate Identity No.

U13100OR1956SGC000313 on dated

16th day of May, 1956, by the Registrar of

Companies, Odisha.

CHANGES IN THE NATURE OF

BUSINESS

During the year under review, there were

no changes in the nature of business of the

Company.

MATERIAL CHANGES AND

COMMITMENTS AFFECTING

THE FINANCIAL POSITION OF

THE COMPANY

From the date of the Balance Sheet till the

date of the Board’s Report, there have been

no material changes and commitments that

affect the fi nancial position of the Company.

ADEQUACY OF INTERNAL

FINANCIAL CONTROLS

The Company has an Internal Control System

commensurate with the size, scale and

complexity of its operations. The scope and

authority of the Internal Audit (IA) function

is defi ned in the Internal Audit Charter. To

maintain its objectivity and independence,

the Internal Audit function reports to the

Audit Committee of the Board. The Audit

Committee monitors and evaluates the

effi cacy and adequacy of Internal Control

System in the Company, its compliance with

operating systems, accounting procedures

and policies. Based on the report of Internal

Audit function & process, corrective actions

are undertaken in their respective areas and

thereby strengthen the controls. Signifi cant

audit observations and corrective actions

thereon are periodically presented to the Audit

Committee of the Board.

CERTIFICATION OF INTERNAL

FINANCIAL CONTROLS OVER

FINANCIAL STATEMENTS

The Internal Auditors have examined

and reported the adequacy of Internal

Financial Control for the FY 2018-19. As per

Section-177 (5) of The Companies Act 2013,

the Audit Committee in its 3rd Meeting for the

FY 2018-19 held on 10th July 2018 after due

deliberation, examination and discussions

with the Auditors, had recommended to the

Board of Directors to certify on the adequacy

of the Internal Financial Controls on Financial

Statements. As per Rule-8(5)(viii) of the

Companies (Accounts) Rules 2014, the Board

of Directors in its 432nd Meeting held on 8th

July 2019 have certifi ed for the adequacy

of the Internal Financial Controls over the

Financial Statements. As per Section143(3)(I)

of The Companies Act 2013, the Auditors have

reported the adequacy of Internal Financial

Controls over Financial Reporting subject to

their observations.

EXTERNAL RISK FACTORS TO

THE CORPORATION

The Board of Directors is responsible for

identifying, evaluating and managing all

signifi cant risks faced by the Company. The

risk management policy of the Company was

approved by the Board of Directors.

DETAILS OF SIGNIFICANT AND

MATERIAL ORDERS PASSED

BY THE REGULATORS OR

COURTS OR TRIBUNALS

IMPACTING THE ONGOING

CONCERN STATUS AND THE

COMPANY’S OPERATIONS IN

FUTURE

The ongoing concern status of the Company

was not impacted even after payment of

INR 693.12 Crores towards compensation

for violation of mining plan and consent to

operate.


Introduction

OMC attained Gold Category amongst

State Public Sector Undertakings (PSUs),

owing to the number of initiatives taken

to improve its overall quality, productivity,

profi tability and customer satisfaction.

The focus of OMC management to

align HR Policies in line with company’s

business objectives has helped in dealing

with the emerging multifarious challenges

confronting the mining sector. A number

of HR initiatives have been launched

which have contributed to building a

conducive environment in which the

creativity and innovation of employees

is fully unleashed. Our corporation

recognizes the contribution of its HR in

providing competitive advantage in its

objectives. OMC has achieved its present

level of excellence through investing

in its human resource, whose skill and

knowledge constitute the basis of every

initiative, be it technology or innovation.

Developing skills and capabilities of

employees to improve manpower

utilization and labour productivity is

the key thrust area of Human Resource

Management in OMC.

Steps taken to Become a Model

Employer

OMC has taken giant strides to be a

model employer by:

» Dynamic organizational structure:

Establishing and maintaining a

dynamic organizational structure

suited to meet present and future

company needs.

» Attracting competent personnel:

Attracting competent personnel with

growth potential, and developing their

maximum capabilities in a working

environment through the provision of

opportunities for advancement and

other incentives;

» Favourable employees’ attitude:

Developing and sustaining a

favorable employee attitude and

obtaining maximum contribution

from employees through stable

employment, adequate wages

commensurate with the Company’s

capacity to pay and maintaining good

and safe working conditions and job

satisfaction;

» Employee’s Grievance Redressal

System: Establishing a system for

redressal of employees’ grievances in

the shortest possible time and at the

lowest possible step.

» Employees’ self-development

programme: Providing training

facilities, internal and external,

and other opportunities for self-

development in the current job and for

advancement.

HUMAN RESOURCE (HR) DEVELOPMENT AND STAFF

WELFARE MEASURES / INDUSTRIAL RELATIONS


Human Resources

Manpower strength of the Company and

the detailed break-up is given below:

Contract workers during last fi ve years:

Developing Employee Capabilities &

Competencies: In order to develop its human

resources for harnessing their potential and

providing ample opportunities to employees

individually as well as for organizational

goals, the Corporation has been making

sustained efforts through various training

and development activities. These activities

focus on preservation and transfer of skills

and training in specialized /advanced skills

and technology in collaboration with reputed

organizations. Preparing employees for

tomorrow, for effectively taking up challenges

and discharging new roles and responsibilities

was given a major thrust. Overall, employees

were trained on various contemporary

technical and managerial modules.

The training statistics for the last fi ve years

are given below:

Further, in order to strengthen the industry

academia interface, more vibrant students of

different management/educational institutions

are provided an extensive exposure and hands

on experience in a corporate environment

during their internship, summer project work.

Vocational training to the technical students as

sponsored by BOPT, Kolkata are also taken up

in a phased manner.

Harmonious Employee Relations: The

Company has a glorious tradition of conducive

and fulfi lling employee relations. The healthy

practice of settling the issues through

discussions with trade unions/workers’

representatives enabled workers’ participation

at different levels and facilitated in establishing

a peaceful HR climate. The Company has an

established system of workers’ participation

at different levels right from corporate level

upto shop-fl oor/mines level. Some of these

forums are functioning since its inception

and are suffi ciently empowered to address

different issues related to wage, safety, and

welfare of workers arising from time to time,

thus helping in establishing a conducive work

environment. Communication with employees

at various levels concerning wide range of

issues impacting the Company’s performance

as well as those related to employees’ welfare

is carried out in a structured manner across

the Company. These interactive sessions

help employees to align their work with the

goals and objective of the Company leading

to higher production & productivity and

enhanced employee engagement.

Grievance Redressal Mechanism: Effective

internal grievances redressal machinery exists

in OMC corporate and fi eld units, separately

for executives and non-executives. Majority

of grievances are redressed informally in view

of the participative nature of environment

existing in different units. The system is

comprehensive, simple and fl exible and has

proved effective in promoting harmonious

relationship between employees and

management. A general description of various

benefi t schemes are provided in Appendix-7.

Sexual Harassment of Women at

workplace:

» Procedure for bringing up issues related to

discrimination & harassment and resolving

such issues is an integral part of SA 8000

policy of OMC.

» Awareness workshop conducted at Head

Offi ce/Mines to sensitize employees.

» One complaint of alleged sexual

harassment was received during FY 2018-

19. Enquiry is pending.

Year No of workers

2014 2,500

2015 2,400

2016 3,970

2017 3,500

2018 4,740

Category

Strength

as on

01.04.2019

Deputation 08

Executive(Contractual) 03

Executive (Regular) 382

Senior CSR/CSR Consultant 06

Non-Executive (Regular) 1,630

Non-Executive (Contractual) 59

Piece-rated Miner 400

Total 2,488

YearMan days

(Target)

Man days

(Achievement)

2014-15 810 1,341

2015-16 1,341 3,318

2016-17 3,318 2,929

2017-18 2,929 6,106

2018-19 6,106 13,639


IRON ORE PROJECTS

Design, Engineering, Supply,

Construction, Erection, and

Commissioning & Performance

Guarantee Test of a New 1000 TPH Ore

Handling Plant has been conducted

with 3200 TPH Mechanised Wagon

Loading System including Related

Railway Infrastructure for Iron Ore Mine

at Daitari.

To cater to the rising demand of Iron Ore,

OMC has already signed an agreement with

M/s L&T, Chennai on dated 31st October

2013 for installation of 2.5 Million Tonnes per

annum capacity New Ore Handling Plant with

Mechanised Wagon Loading System at Daitari

at an estimated project cost of about INR 800

Crore considering price escalation. For this

project OMC has already applied for the Forest

Clearance of the required 106.02 Ha. of forest

land on 15th April 2014 to MoEF & CC, GoI.

Construction activity shall soon start after the

clearance. Stage-II Forest Clearance from

MoEF & CC, GoI is awaited. The construction

work shall start after obtaining the FC.

Techno-Economic Feasibility Report (TEFR) for

setting up of a 8.5 Million Tonnes per annum

project with Mechanised Production and

Evacuation mode was prepared by MECON,

Ranchi, in July 2015. The Project Approval

Committee (PAC), GoO approved the project

cost of INR 1,348.47 Crore on 16th August

2016.

Installation of 8.5 MTPA project at

Gandhamardan (Block-B) Iron Ore

Mines.

After obtaining Environmental Clearance of the

forest land in September 2018, the Survey, Soil

Investigation & Railway Study for the proposed

project has started. The Hydrological Study

shall commence soon. After completion of

these works action for selection of a contractor

for execution of the project shall be taken-up.

Mechanised Production and Evacuation

System at Kurmitar Iron Ore Mines.

For its proposed 6 MTPA project at Kurmitar,

basing on the Detailed Feasibility Report (DFR)

prepared by M/s Engineers India Limited

(EIL), OMC opted for execution of the project

through appointment of a Mine Developer-

cum-Operator (MDO) after obtaining In-

principle Approval of the Govt. This selected

MDO shall start production from the mines

from 1st April 2021 and the contract period

shall be till 25 years or till exhaustion of ore,

whichever is earlier. Tender for selection of

MDO was fl oated in March 2019.Through

e-tendering process, M/s Adani Enterprises

Limited., Ahmedabad has been qualifi ed as

L-1 bidder.

Since the contract value over a period of 25

years of contract would be more than INR

5000 Crore and the Board of OMC has its

fi nancial power limited upto INR 100 Crore,

hence matter has been placed before the GoO,

for its approval, vide letter dated 9th July 2019.

Approval from GoO is awaited.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis comprising an overview of the fi nancial results,

operations/ performance and the future prospects of the Company form a part of this report.

Status of different projects are as follow:


CHROME ORE PROJECTS

Recovery of Chromite Values from the

Tailings of COB Plant.

Basing on the Pilot Plant Study result of

the Chromite Tailing at NML, Jamshedpur,

MECON has prepared the Detailed Project

Report (DPR) for establishing a benefi ciation

plant to recover the chromite values from the

tailing. The estimated project cost is approx.

INR 70 Crore as per the DPR. The report

has been deliberated by in-house technical

committee and shall be placed before Board

committee on technical matter shortly for a

decision on further course of action on the

project.

Installation of New COB Plant.

Basing on the kind approval of the PAC, GoO,

the contract with the ex-contractor M/s MBE-

CMT was terminated on 4th February 2018

and fresh agreement was signed with KIOCL

on dated 26th July 2018 for “Completion of

Installation of Balance Portion of Work of

New COBP”. The work is on progress and is

scheduled to be completed by March 2020.

Construction of Tailing Ponds for Both

the COB Plants at South Kaliapani.

In order to operate the Chrome Ore

Benefi ciation Plant at South Kaliapani,

OMC decided to construct a tailing pond

along with ETP and accordingly selected

M/s Iron Triangle (formerly M/s Backbone

Enterprises Limited.) through open tender

process. However due to non-availability of

modifi cation to EC, the work could not be

awarded and BoD in its 420th meeting held

on 27th March 2017 advised to award the

work after obtaining modifi cation to EC, from

MoEF & CC, GoI , which was applied on 15th

May 2015. Till date modifi cation to EC has not

been obtained. Subsequently, the selected

agency expressed its unwillingness to execute

the project unless there is price escalation.

But the tender has no provision for price

escalation.

The matter was deliberated in the 432nd

meeting of the BoD held on 8th July 2019.

OMC has cancelled the tender and is

presently fi nalising the process for selection

of an agency through open tender, with

provision of price escalation/ de-escalation so

that work can be started soon after obtaining

modifi cation to EC.

Development of Underground Mining at

South Kaliapani

M/s DCPL-SRK UK has been selected under

Quality-cum-Cost Based Selection (QCBS),

for providing EPCM Consultancy services for

development of South Kaliapani Underground

Chromite Mine Project. The total contract

price is INR 12,11,92,413 plus applicable

GST and total contract period is 51 months.

The current scope involves preparation of

Detailed Feasibility report for South Kaliapani

Underground Mine after completing detailed

exploration, test works and related technical

studies. It is to be progressed in three phases.

Phase-I(a)-Existing OMC data analysis,

Geological modelling, Open pit optimization

study, Detailed Underground Exploration and

test works proposal with budget estimate for

phase-I(b). Phase-I(b)- Exploratory drilling

contractor selection, testing labs selection,

Detailed Exploration for UG in line with

Phase-I(a) proposal, conducting all fi eld and

lab test works in line with phase-I(a) proposal,

Underground Prefeasibility study. Phase-

II- Conducting Detailed Feasibility study for

Underground mine with Detailed Feasibility

Report submission having cost accuracy of

(+/-) 10 %.

Contract agreement was executed with M/s

DCPL-SRK UK on 18.2.19 and Phase-I(a)

activities of the project is currently ongoing as

per schedule.

BAUXITE PROJECTS

6 MTPA Kodingamali Bauxite Project

For mechanised production & evacuation

from the Kodingamali Bauxite Mines, OMC

has prepared a Detailed Feasibility Report

through M/s Engineers India Limited (EIL) after

completing the required technical studies

related to this project. The draft report from

EIL has been received in July 2019. The same

is under fi nalisation.


SUBSIDIARY

Odisha Mineral Exploration Corporation (OMECL)

OMECL, a 100% subsidiary of OMC, has been

incorporated in Oct 2016 under The Companies Act

2013, which is formed with Government of Odisha and

Steel & Mines Department. It has Government approval

for the sanction of 10 posts and selection of blocks for

exploration with 5 year contingency plan. OMECL is into

exploration of Iron Ore and Bauxite.

OMECL has been assigned 8 (eight) blocks each of

Bauxite and Iron Ore for exploration up to G2 (general

exploration) stage of UNFC by Government of Odisha for

facilitating the auction of the blocks – details of which are

mentioned below:

STATUS OF OMECL’S IRON ORE BLOCKS

STATUS OF OMCEL’S BAUXITE BLOCKS

Khandadhar

Sub Blocks

Deposit

Name

(Explored by

DoG)

Notifi ed

Area (Sq

km)

NMET

Approval

Area (Sq

Km)

Current

level of

Exploration

NMET approved

level of

exploration G2 /

G4 UNFC

Time Period

(Completion of

Project)

Forest Clearnce Status

AIA (Part), IB,

IIA8.55

4.04 G3 G2 T0 + 10 months Forest clearance shall be

applied once the cadastral

map is fi nalized which is

pending due to DGPS survey

by Director Land Records &

Survey

4.506 Unexplored G4 Jun-19

B IA 4.33 4.33 Unexplored G4 Jun-19

C III, IV 11.33 2.93 G3 G2 To + 10 months

8.404 Unexplored G4

Jun-19

Mapping and sampling

completed. Draft report

submitted. Geophysical

survey, Pitting & Trenching is

awaited due to FC

D V (part) 7.32 7.32 Unexplored G4

E V(part) 9.75 9.75 Unexplored G4

F NA 8.29 8.29 Unexplored G4

G NA 8.32 8.32 Unexplored G4

Thakurani Thakurani

area1.21 Unexplored

Mapping done in-house, FC to

be applied

Bauxite Blocks District

“Notifi ed

Area

(sq km)”

Current level

of Exploration

(UNFC)

NMET

approved

level of

Exploration

Final

Exploration

level

Timeline In

MonthsStatus of FC

Keluamali Kalahandi 11.2 G4 G3

Shall be

explored

at G2 level

as per

state

directive

T0 + 10Application forwarded from DFO to

PCCF(N) on 27th May 2019

Majhingamali Rayagada 4.5 G4 G3 T0 + 9Verifi cation by DFO, Kalahandi &

Rayagada is completed.

Nunapaimali Rayagada 4.2 G4 G3 T0 + 9 Cadastral Maps collected. Geo-

referencing of maps is being done.

Applications for FC shall be sent

by 11th June 2019

Tarhapani(W) Koraput 4.3 G4 G3 T0 + 9

Karnapodikonda Koraput 9.062 G4 G3 T0 + 8

Kisanmali Kalahandi 9.7 G4 G3 Within Karlapat Sanctuary

Chintamgundi Koraput 1 G4 G3

Lingapadar Kalahandi 8.5 G4 G3 Within Karlapat Sanctuary


Recent Achievements

» An effective exploration programme

consisting of: remote sensing & gis,

geological mapping, geophysical

survey, topographical survey, core

drilling, logging, sampling, assaying,

geological block modelling and

resource estimations have already

been initiated in both Bauxite and

Iron blocks. Envisaged Core Drilling

Program consists of 10,060 m in

Bauxite blocks and 7,180 m in Iron

ore with sampling and assay of 16,054

numbers of samples.

» Ground geological mapping of

Khandadhar Iron blocks, having an

area of 59.089 Sq Km, has been

completed and high exploration

potential areas are identifi ed for ccore

drilling.

Plan for the FY 2019-20

» Digital Exploration

o Capture Real Time Exploration data

through various state of the art

technology using core scanners, portable

mapping instruments, portable XRFs etc.

for quick decision making.

o Collate exploration data into a highly

secured online Database Software

System with remote access to the end

users.

OMECL will work to develop a

“Data Excellency Centre” wherein all

exploration data from GSI, IBM and

other exploration agencies shall be

incorporated for “New Discoveries”. This

will be achieved by incorporating and

integrating all existing exploration data

into a “Data warehouse Management

System” through validating each step of

exploration refl ecting better Ore Body

Knowledge after appropriate optimization

of data.

» Digital Core Management System

o Faster geological information / faster

decisions – an automated workfl ow

(Mineralogy, Texture, Structure).

o More reliable geology - more objective

mineralogy / textures – delivers improved

resource / production models.

o Increase / decrease drilling activity easily.

o Improved data management – a virtual

core library for better integration and

more effi cient core storage.

» Unmanned Aerial Vehicles (Drone)

o High resolution imaging systems

and satellite guided precision

yields accurate and rapid mapping.

o Surveying: Topographical

o Flexibility in deploying multi-sensing

platforms that encompasses aerial

photography, 3D measurements, and

sensing tools such as Lidar, Near Infrared

Imaging, and Magnetic Gradiometer.

» AI and Big Data to unlock “Mineral Discovery”

o Artifi cial Intelligence and big data are new

tools for solving in mineral exploration.

o Exploration geologists use this massive

data as clues to fi nd new mineral

deposits.

o AI and machine learning can handle

the large amount of data produced by

mineral exploration and analyse it to

produce mineral exploration targets &

uncover hidden Geological Insights.

o Input data is gathered & applied to a

learning algorithm. The machine is then

able to learn from the data and predict

potential targets.


INVESTMENTS

Joint Ventures

OMC has also established joint ventures recently to diversify into coal mining. Some of these ventures include:

1. Baitarni-West Coal Mine

The MoC, GoI allotted Baitarni-West coal

mine in favour of the OMC Limited. vide its

Allotment Order No. 103/03/2016/NA Dt.

29.09.2016. Preparation of Detailed Project

Report (DPR) and EIA/EMP in respect of

Baitarni-West coal mine is under progress by

CMPDI. OMC is undertaking land acquisition

for the coal mine under the CBA (A&D) Act,

1957. Gazette notifi cations for Section 3,

Section 4 & Section 7(1) have already been

issued by the MoC, GoI. Mine Closure Plan of

the coal mine is to be approved by MoC, GoI.

Formation of a new Coal Mining Company

(100% subsidiary of OMC) for development

of Baitarni-West coal mine is under process.

Selection of Mine Developer-cum-Operator

for this coal mine is under process. OMC

has paid INR 78.21 Crore ( INR 46.22 Crore

upfront payment in addition to INR 31.99

Crore paid as Fixed Amount) and has further

given Bank Guarantee of INR 407.40 Crore to

MoC, GoI against the allotment.

Corrigendum to the Allotment Order has

not yet been issued by the MoC, GoI. After

receipt of the same from the MoC, GoI, OMC

is able to progress in acquisition of land (i.e.

submission of Action Taken Report to the

Coal Controller (CCO), issue of NOC by CCO,

application for Section 9(1) etc.). Then, action

will be taken for revision of Mining Plan &

thereafter revised EC & FC applications will be

submitted to the MoEF&CC.

2. Nuagaon-Telisahi Coal Block

The Ministry of Coal, Govt. of India has

allotted Nuagaon-Telisahi Coal Block in

favour of OMC and Andhra Pradesh Mineral

Development Corporation (APMDC) vide

letter No. 13016/2006/CA/I, dtd. 2nd August

2006 on 50:50 sharing basis under Govt.

dispensation scheme. A JV Company namely

Nuagaon Coal Company Limited. (NCCL) was

registered on 11th May 2011.

Hon’ble Supreme Court of India has de-

allocated 204 coal blocks including Nuagaon-

Telisahi Coal Block on dated 24th September

2014. As per the advice of the MoC, GoI,

OMC submitted necessary information/

documents for valuation of compensation

payable to the prior allottee/JV Company for

Nuagaon-Telisahi Coal Block. Claim amount

is yet to be received. This company has been

converted to a dormant company.

3. Mandakini-B Coal Block:

The Ministry of Coal, Govt. of India vide letter

No. F.No. 13016/8/2007-CA-I dated. 25th July

2007 was allotted Mandakini-B Coal Block in

favour of OMC, Assam Mineral Development

Corporation, Meghalaya Mineral Development

Corporation and Tamil Nadu Electricity Board

on equal sharing basis for power generation.

A new JV Company namely Mandakini-B Coal

Corporation Limited. (MBCCL) was formed.

MoC, GoI has de-allocated Mandakini-B Coal

Block on 5th December 2012 and invoked

50% Bank Guarantee. As per the advice of

the MoC, GoI, OMC submitted necessary

information/documents for valuation of

compensation payable to the prior allottee/JV

Company for Mandakini-B Coal Block. Claim

amount is yet to be received. This company

has been converted to a dormant company.


Power- Odisha Thermal Power

Corporation Limited

OMc and Odisha Hydro Power Corporation

Limited., (OHPC), the two Gold category

State PSUs have promoted the Joint Venture

Company i.e. Odisha Thermal Power

Corporation Limited (OTPCL) with 50%

shareholding by each of them. OTPCL is

setting up a coal based Super Critical Thermal

Power Plant of 3 x 800 + 1 x 800 MW in

Kamakhyanagar Tahsil of Dhenkanal District,

Odisha with an estimated project outlay of INR

18,218 Crore. So far, OMC has invested INR

134.20 Crore as equity.

Rail - Angul Sukinda Railway Limited

(SPV Project)

OMC has invested INR 63 Crore constituting

10.5% of the share capital of INR 600 Crore in

this SPV Project which is promoted jointly by

RVNL, JSPL, IDCO, Container Corporation of

India Limited and Govt. of Odisha to develop

the BG rail link Budhapank-Sukinda Road

which trasverses through Angul, Dhenkanal &

Jajpur districts of Odisha over a route length

of 104 Km.

The revised envisaged project cost is INR

1,921 Crore excluding IDC, out of which INR

600 Crore Equity has been received.

Rail - Haridaspur Paradip Railway

Company Limited (SPV Project)

Haridaspur Paradip Railway Company Limited,

an SPV, has been incorporated by RVNL for

developing, fi nancing, construction, operation

and maintenance of an 82 km broad gauge

single railway link between Haridaspur and

Paradip stations in Odisha to establish a

direct link between the Iron-ore rich areas

of Odisha viz Barbil Region to Paradip Port.

The Rail Link traverse through three districts

of Odisha, namely Kendrapada, Jajpur and

Jagatsinghpur.

The revised TPC is INR 2,230.92 Crore,

which includes the cost of land, civil works,

buildings, plant & machinery, S&T engineering,

electrical engineering, preliminary expenses

and RVNL charges including IDC.

OMC has contributed its full commitment of

INR 92.92 Crore which is 13.02% of the total

Equity capital of INR 713.71 Crore. The other

shareholders in this SPV project are RVNL,

IDCO, PPT, EMIL, JSPL, SAIL, MSPL, Rungta

Mines and Govt. of Odisha.


GEOLOGICAL ACTIVITIES DURING FY 2018-19

PROGRESS ON STATUTORY CLEARANCES (FY 2018-19)

OMC has taken approval from Forest and Environment authorities on various mines. Below are the details of mines with area and granted date.

STAGE-II FC (F&E PROGRESS)

STAGE-I FC (F&E PROGRESS)

ENVIRONMENTAL CLEARANCE (F&E PROGRESS)

Mine Area (ha) Authority Grant Date

Gandhamardan-B 1177.211 MoEF & CC 09/10/18

Block-III 1.502 ERO 16/10/18

Kurmitar 517.888 MoEF & CC 29/11/18

Base of Mahagiri 6.5495 MoEF & CC 13/12/18

Mine Area (ha) Authority Grant Date

PL Chrome Block-III 1.502 ERO 24/04/18

Roida-78 5.597 MoEF & CC 07/08/18

Dalki 7.94 MoEF & CC 16/08/18

Parlipada 6.699 MoEF & CC 16/08/18

PL Chrome Block-II 5.782 MoEF & CC 14/09/18

PL Chrome Block-I 7.54 MoEF & CC 17/09/18

Unchabali 68 MoEF & CC 16/11/18

Khandbandh 345.189 MoEF & CC 31/01/19

Roida-C 4.62 MoEF & CC 08/02/19

Mine Production

(MTPA)

Authority Grant Date

Unchabali 0.07 to 1 MoEF & CC 17/07/2018

Sukurangi 0.13 to 0.3 MoEF & CC 13/11/2018

Daitari 3 to 6 MoEF & CC 16/01/2019

Kurmitar 2.4 to 6 MoEF & CC 16/01/2019

Prospecting Leases Mining Leases

Chrome 3 Iron 11

Bauxite 1 Chrome 11

Bauxite 1

Manganese 3

Limestone 1

Gemstone 2

Iron &

Manganese

5

Total 4 Total 34

Exploration

The Corporation has demonstrated

consistency in production of ore and ore

concentrate over the last fi ve years.

» The production of Iron Ore has been

growing substantially and it increased

from 79,18,057 tonne in FY 2017-18 to

1,03,95,800 tonne in FY 2018-19.

» Likewise, the production of chrome ore

has increased consistently over the last

fi ve years with a signifi cant increase from

8,93,316 tonne in FY 2017-18 to 11,88,395

tonne in FY 2018-19.

» Bauxite production has increased

signifi cantly from 53,000 tonne in FY 2017-

18 to 27,00,000 tonne in FY 2018-19.

The total overall production at OMC has

increased dramatically over the last three

years with 91% growth from FY 2016-17 to FY

2018-19.

Mineral Concession

Apart from the 34 mining leases that OMC

has taken over, supplementary lease deed has

extended the validity of Mining Lease (ML)

area under MMDR Ammendment Act, 2015

which have been executed in 5 MLs. Besides,

1 ML, i.e. Kodingamali ML for Bauxite has

been executed. Authenticated DGPS lease

maps in respect of 1ML and 3 prospecting

licenses have been fi nalised.

10

5 5

1 1 1 1 1 1

2014-152005-06 2006-07 2008-09 2013-14 2015-16 2016-17 2017-18 2018-19NU

MB

ER

OF

DIV

ER

SIO

N P

RO

PO

SA

LS

STAGE I FC

NO FOREST

CLEARANCE IN

4 YEARS

01

02

03

05

06

07

08

09

10

04

1 1 1 1 1 1 1

STAGE II FC

NU

MB

ER

OF

DIV

ER

SIO

N P

RO

PO

SA

LS

01

02

03

05

06

07

08

09

10

11

12

13

04

2

4

2014-152004-05 2007-08 2008-09 2011-12 2015-16 2016-17 2017-18 2018-19


OMC’s MISSION:

“Environmental protection, energy conservation

and sustainable development should go hand in

hand”

Environmental protection has a very high priority

at OMC. OMC is on its journey to build an

effective and robust environment management

system with a strong vision and mission of

Environmental Protection and Sustainable

Development.

The mining operations at various leasehold

areas of OMC in Gandhamardan, Daitari,

South-Kaliapani, Sukurangi, Kurmitar, Bangur

and Kodingamali mines are being carried out

in accordance with the necessary statutory

compliances which are being continuously

monitored for all the environmental components

like air, water (surface and ground), waste water,

soil and noise. Strict compliance of stipulated

conditions in the consents & clearances granted

from SPCB, Odisha & MoEF, Govt. of India, is

also being ensured by conducting checks on

pollution control measures adopted at respective

sites. OMC actively minimize the environmental

impacts during mining operations and our

environment strategy outlines a clear framework

for abatement of Pollution.

OMC considers the economical use of all

resources as part of its mission and mandates

all its contractors on effi cient usage and

management of energy resources which caused

a reduction in energy consumption year after year

in all our mines.

OMC has engaged M/s Centre For Envotech

And Management Consultancy Pvt. Limited,

Bhubaneswar, Odisha for carrying out various

Environmental Monitoring and Analysis Work at

different mining leases of OMC located in Jajpur,

Keonjhar and Sundergarh districts. M/s Centre

for Envotech and Management Consultancy Pvt.

Limited possesses MoEF&CC Recognition, NABL

accreditation and SPCB, Odisha empanelment

for its laboratory division. Environmental

monitoring & analysis work includes monitoring

& analysis of air environment, water environment,

land environment such as ambient air quality,

work zone air quality, noise level, water quality,

waste water quality, vehicular emission and soil

quality.


OMC Development Initiatives

Operation and Technology

New Computers with updated Windows

10 and 64-bit operating system have been

procured with Routine steps like HO LAN

reconfi guration, Antivirus server confi guration

and process oriented incident management

has been carried out keeping network security

in mind. Recommended fi rewall deployment

at gateway level has been implemented to

enhance security level. The availability of ERP

system for transactions has been improved

with implementation of cloud hosting and

MPLS network.

OMC has upgraded its System from SAP ECC

6.0 to SAP ECC 6.0 EHP 8 and migrated the

data base from Oracle 10g to SAP HANA,

hosted in private cloud i.e. HANA Enterprise

Cloud (HEC) and implemented SAP Enterprise

portal system to facilitate employee self-

services.

E-Offi ce implementation

E-Offi ce has been implemented at Head

Offi ce (HO), Rayagada and JK Road regions,

by virtue of which fi le handling operation is

being carried out electronically instead of

physical fi le movement. This transformation

achieves in saving resources in terms of man

hours, paper handling, physical space, and

also facilitates resource sharing. Transparent

and faster decision making has been achieved

due to centralized digitized automated fi le

processing. This facilitates in electronic record

keeping and fi le tracking.

Customized Solution in SAP

Customized solution has been developed in

SAP to maintain the Bank guarantee in SAP,

by virtue of which tracking of bank guarantees

along with relevant tender documents are

online.

Customized solution has been developed

in SAP to maintain, analyse and report

cost details of various components in SAP,

which helps in tracking and reporting cost

components in timely & transparent manner.

ERP in OMC

As a result of implementation of ERP – a

modern business tool in OMC, the processes

in different departments like Material

Procurement, Inventory Management, Sales

& Distribution, Production Planning, Financial

Management and Personal Administration

has been streamlined to a great extent. The

Software tool as SAP ECC 6.0 platform

implemented in OMC has facilitated

the handling of the expanding tonnage

volume, fi nancial turn over and has ensured

effective monitoring, control and decision

making. Having integration of the aforesaid

departments through the above software tool

and extended with Wide Area Networking,

Local Area Networking (LAN) and adequate

hardware facilities, OMC has been able to

handle its expanding business transactions

with better monitoring and control of different

activities.

Materials Management (MM)

MM functionality implemented throughout the

organization has facilitated maintaining the

inventory on real time basis and has facilitated

a systematic and transparent procurement

process. Procurement of spares, Material

Management Department, Civil departments

etc. are undertaken through the SAP system

starting from raising of purchase requisition

to request for quotation & fi nding appropriate

source of supply, creation of purchase order

including material receipt, invoice verifi cation

and release of payment. Annual physical

inventory is taken up through the system on

the basis of annual store verifi cation done by

a committee. Vendors for supply of different

spares, materials and vendors for providing

services for each kind of job are enlisted

and vendor master is maintained centrally

once in every three years and as and when

necessary basing on due verifi cation of the

credentials as per eligible norms defi ned by

OMC. Materials like fuel, lubricants, common

spares, equipments, hardware, and explosives

etc. and services like raising and excavation

of over burden and ore, transportation, hiring

of vehicles, geological exploration etc. are

done centrally at HO through contract which

eliminates frequent manual approval process

on an annual basis. Depending upon the

fi nancial power delegated to the Mines and

Regional Offi ce level, procurement of materials

and services are also done at their level &

SAP ensures limiting the fi nancial delegation.

The release strategy adopted has facilitated

speedier disposal of different POs and

Contracts.

Integration of different functions in SAP

system has facilitated the monitoring of the

status of supply of materials and settlement

of bills of the vendors. Scrap material is also

maintained for auction sale. Action has been

taken to customise the Scrap sale cycle in

the SAP system. Valuation of stock has been

facilitated maintaining moving average price of

the materials automatically. Integration of MM

with Finance facilitate passing of information

automatically to fi nance and reduces error.

The annual budget incorporated against each

head of account is adhered to in case of

purchase order creation and payment. This

ensures due adherence to budgeting and

cost analysis gets simplifi ed. Monitoring of

every transaction is made through SAP which

helps in faster transmission of information and

enables taking necessary steps in real time.

As a result, better control is ensured.

Sales & Distribution (SD)

The Sales and Distribution function

implemented has facilitated creation of

contract at HO, sales order, fi nancial

document and billing at the RO level and issue

of DO at the Mines level online in the system

and has facilitated capturing the status of

lifting of the material by the customers on real

time basis. Appropriate guidelines, monitoring

and control have facilitated effective control

over sale of the material produced by OMC

right from allotment to lifting and billing.

Customer master is maintained in the

system which facilitates sale of material to all

OMC DEVELOPMENT INITIATIVES OPERATION AND TECHNOLOGY


customers, mines-wise and maintaining the

customer balance. Scrap sales has been

taken up. Customer Balances & Contracts

are intimated to the customers online.

Generation of Reports & MIS have helped in

quicker decision making.

Production Planning (PP-SOP)

Implementation of Production Planning

module has facilitated creation of production

plan for fi nished material in the system,

material-wise and mines-wise separately so

as to meet sales requirement. The annual

plan is broken down to monthly plan and

entered into the system. Daily production of

ore is captured in the system in unanalyzed

material code. After analysis, the stock

is posted in fi nished material code. Daily

transport, dispatch and consumption of ore

are also captured in the system.

Updated stock overview facilities, sale of

materials, MIS reports containing annual

production plan, revised plan up to the

month, plan for the month, achievement for

the month, and cumulative achievement up

to the month are generated from the system

which are submitted to statutory authorities

and the Government. These reports facilitate

monitoring of production activities and

taking timely decision for achievement of

production target.

Finance & Controlling (FICO)

Finance and Controlling system

implementation has ensured online posting

and updating of GL account and sub-ledger

accounts. It ensures online check of budget

availability and online updating of controlling

data. Due to integration of functions of

different departments, automatic fl ow of

documents from other modules is ensured.

Further due to online updating of GL

accounts, Trial Balance, Balance Sheet and

Statement of Profi t & Loss can be generated

at periodic intervals.

HR Functionality

Implementation of SAP India Pay Roll

system has facilitated processing of pay

roll of all categories of employees of OMC

including the DRMP and PR miners and

posting of all such payments in fi nance.

Similarly implementation of HR and ESS

function has facilitated the viewing by

employees, of their personal information,

salary slip, loan balance, leave balance and

IT Form-16. Annual Self-Appraisal in respect

of all executives and CCRs of non-executive

employees are submitted and reporting/

reviewing done through online system. All

type of leave data, automatic calculation

of accrued leave, submission and approval

of leave application are all done online. All

types of loans and advances applications

are received online and approval accorded

and payment advice realized making the

process easier and faster.

Asset Management (AM)

Implementation of Asset Management has

facilitated maintaining of Asset Register and

appropriate charging of depreciation as per

Company Act & Income Tax Act. Business

area wise asset accounting is being done

currently.

It is now possible to maintain up-to-date

Asset Register in the system. The process of

capitalization of Asset and the maintenance

of sub-category of assets is capitalized, WIP

has become effi cient. Various reports as per

the need of various statutory requirements

are generated with greater agility and

correctness.

Recent Achievements of IT Section

» Detail DPR for implementation of IT

enablement of Sales & Marketing System

has been prepared for implementation of

the project. Vendor selection process is in

progress for implementation.

» Detail DPR for implementation of Stockyard

Management System has been prepared

for implementation of the project. Vendor

selection process is in progress to start the

implementation.

» Implemented Business Excellence and

Continuous Improvement Plan (BE/CIP)

application and integrated with OMC

website.

» Upgraded Treasury Management System

in SAP for CPF and gratuity trust as per

enhanced scope of work.

» Implemented Bank guarantee monitoring in

SAP.

» Implemented Vendor master upload program

work fl ow for Vendor master and Material

Master in SAP.

» Implemented automatic conveyance

calculation in SAP HR pay-roll.

» Cost Record & Cost Analysis Report in SAP.

(As it is) for a period i.e. Monthly, Quarterly

& Yearly.

» New management information reports

developed in different functional module i.e.

FI (Cash fl ow), SD (Lifting, Turnover, buyers

wise sales), PP (Daily Production) and HR

(Retirement statement).

» E-Offi ce implemented to facilitate online fi le

processing Rayagada and Jajpur Regional

Offi ce.

» IT enablement at Kodingamali green

fi eld project of bauxite mine for online

transactions.

» Installation & Commissioning of Video wall in

Board Hall at the Head Offi ce.

Plan for the year 2019-20

» Implementation of IT Enablement of Sales

& Marketing, (Customer On boarding Sales

Management)

» Implementation of Stockyard management

System

» E-Offi ce implementation in regional offi ces

» Implementation of Enterprise Mailing System

» Implementation of Contract life Cycle

management System in SAP as per the

revised plan of action


Integrated Management System

OMC has put continuous effort to maintain

quality standards by deploying appropriate

technology and management practices for

optimal use and conservation of mineral

resources. OMC is also committed to

Environmental protection and all mining

is undertaken in line with the EMP and

environmental approvals. Being committed to

safety, OMC has put in place a safety system

that is compliant with DGMS guidelines

and developed a Safety Management plan

at all Mines Level and regular safety audit

is being carried out by internal team with

cross functional members in it. In line with

its commitment to quality, environment and

safety, OMC has established an Integrated

Management System that is compliant with

the ISO 9001, ISO 14001 and OHSAS 18001

international standards.

Methodology-PDCA Cycle

The principle of ISO standards have been

followed i.e, the PDCA cycle for IMS

implementation as mentioned in below.

The major interventions during the project

are as follows:


» Preparation of IMS Manual, procedures (22

Nos.), Work Instructions (27 Nos.) for all the

processes and its review


respect to 3 ISO standards

» Preparation of Emergency Management

Plan for all 6 operative mines

» Conducting Mock Drills for different

emergency situations


Management Reviews and Internal Audits

» Conducted Awareness programs, Training

of Trainers, Internal Audit Training

Programs


maintenance

Recent Achievements

Based on the interventions mentioned above,

many procedures have been established

based on the work been carried out which is

followed for smooth operation. Review and

monitoring mechanisms are strengthened by

regular review meetings and internal audits.

Safety standards at mines have been

improved due to awareness programmes,

safety audits and mock drills conducted in all

operative mines. Similarly bio-medical and

hazardous waste disposal mechanisms have

been developed for proper disposal of wastes

at all operative mines.For achieving these

international standards, many stakeholder,

customer, vendor and internal meeting

have been conducted to make all aware of

the benefi ts of the implementation of the

standard. During this process, challenges was

faced for implementation of all three standards

as in resource utilization for implementation,

procurement delays due to remotely located

mines, changing mind set of people,

documentation of the work being carried out

at different section, identifi cation of risks for all

the processes etc.

OMC has put continuous effort to achieve the

certifi cate for all three international standard

i.e. ISO 9001:2015, 14001:2015 and OHSAS

18001:2007 as Integrated Management

System (IMS) after overcoming the above

hurdles and is committed to sustain the

standards in future also.

Business Excellence

Background

During the Perspective Planning workshop

held on June 7-8, 2017, embracing Business

Excellence (BE) through Continuous

Improvement Programs (CIP) emerged as a

strategic objective of OMC.

BE is the continuous improvement of

products, services and processes through

incremental or breakthrough improvements.

CIP is the means to attain BE. OMC’s

objective is to establish a culture of

continuous improvement throughout the

organization so as to attain their goal of

establishing Business Excellence in their

organization. They key criteria for establishing

a CIP include:

» Foster innovation and creativity

» Promoting culture of idea/ knowledge

exchange

» Collaboration amongst the workforce

» Empowering the workforce to implement

their ideas

» Administrative structure for governing the

idea implementation

» Use of technology to promote internal and

external engagement

Monitoring/Measurement |

Nonconformance/Corrective/

Preventive Action | Records | Audits

Organizational structure

| Responsibility Training |

Communication Document Control |

Operational Control

DO

Objective and Target and Policy of

Quality | Environment and Health and

Safety management | Organization

Structure & Responsibility

PLAN

Management Review

ACT/IMPROVE

DOCUMENTS

DOCUMENT

CONTROL/RECORDS

COMMUNICATION

TRAINING CORRECTIVE/

PREVENTIVE ACTION

CONTINUAL IMPROVEMENT

CHECK/CORRECT


Human Resources

OMC is currently reviewing and restructuring

the existing HR policies like recruitment

and promotion, medical attendance rules,

conduct discipline and appeal rules,

standing orders, separation rules, etc. and

in a process of implementing competency

based Performance Management System

(PMS), Learning & Development, reward and

recognition, mentoring and coaching policies,

job rotation and transfer, higher education and

professional development policy, succession

planning, etc. The focus of incorporating

such developmental policy aspects for OMC

employees is to prepare a strong Human

Resource backbone to sustain the exponential

growth envisaged in next few years.

A structured approach has been adopted

to develop a competency framework for

OMC Executives so to enable a scientifi c

methodology for recruitment, retention, growth

of the employees of OMC.

Employee diagnostics survey and organization

culture survey has been conducted to assess

the voice of the employees and to understand

their expectations from the organization

and Human Resource department so

that the policies and the practices may

be implemented in a most effective and

effi cient manner. Regular communication

and a series of agenda based workshops are

being organized across the mines location to

educate the employees upon changing policy

framework and implications therein.

Social Accountability (SA 8000)

The Odisha Mining Corporation has been

consistently committed towards development,

maintaining and applying socially acceptable

practices in the work place. The organization

and its Top Management ensures all the

clauses from “Child Labour” to “Management

System” of the SA 8000 standard are abided

by all the operative mines and at Head Offi ce

level.

In line with SDF (Sustainable Development

Framework) guidelines to adopt international

standards, OMC (The Odisha Mining

Corporation) has engaged National

Productivity Council Bhubaneswar to render

advisory, policy and capacity building support

to achieve the certifi cations SA 8000:2014

standards. NPC, Bhubaneswar has provided

guidance and support from framing the policy

statement for Social Accountability 8000,

setting the objectives and action plan for

fulfi lling those objectives to implementation for

getting SA 8000 certifi cation for OMC’s Head

Offi ce and six operative mines (3 Nos. of Open

cast Iron Ore Mines, 2 Nos. of Open cast

Chromite Ore Mines, 1 No. of Underground

Chromite Ore Mines).

Methodology

The journey of SA 8000 implementation

started one and half years ago wherein OMC

wants to improve its working conditions by

providing safe workplace for the employees

abiding the local and national laws and

respecting international instruments( ILO,

UDHR etc.) Pre assessment has been carried

out to understand the gap in the systems.

Based on the internal audit report and self-

assessment/evaluation, few procedures have

been developed as per the requirement of

the SA 8000 standard. Awareness programs

have been conducted at all levels from Top

Management to people working at the Mines

level to make them understand the need and

benefi ts of SA 8000 implementation. During

the process of implementation many facets

were given importance like health and safety

of people working at mines and head offi ce,

remuneration, working hours, collective

bargaining, no to “child labour, forced labour

and discrimination”, mechanisms of grievance,

sexual harassment and disciplinary actions

and communication at different levels.

The major interventions during the

implementation are as follows:


» Preparation of SA 8000 Manual, procedures

(09 Nos.) for all the processes and its

review


respect to Social Accountability standards.


Management Reviews and Internal Audits.

» Conducted Awareness programs, Training

of Trainers, Internal Audit Training

Programs.


maintenance

Key Achievements and challenges

Based on the interventions mentioned above,

many procedures have been established

based on the work been carried out which is

followed for smooth operation. Review and

monitoring mechanisms are strengthened

by regular review meetings by Social

Performance Team constituted at Mines

and Head Offi ce level and internal audits

conducted by the trained internal auditors.

The conditions of the people working in the

Mines have improved. The workers are aware

of the labor laws and their rights. Grievance

Mechanism has been formalized. The

communication is enhanced both ways (top

to bottom and vice versa). Safety conditions

for the people working in the mines and Head

Offi ce have improved.

For achieving this international standard, many

stakeholder, customer, vendor and internal

meetings have been conducted to make all

aware of the benefi ts of the implementation of

the standard. During this process, challenges

was faced for implementation of SA 8000 as it

involves both regular and contractual workers,

changing mindset of people, awareness of the

employees to make them know their rights,

identifi cation of risks for all the processes etc.

OMC has put effort to achieve certifi cation

of SA 8000 standard in word and spirit and

committed to sustain it in future.


GOVERNANCE

Name of the DirectorsCategory of

DirectorshipsDesignation

No. of Board

Meetings during

the tenure

No. of Board

Meetings

attended

No. Of

Directorships

in other Boards

(Excluding OMC)

Sri Sanjeev Chopra, IAS

(01.04.2018-31.03.2019)Govt. Nominee Chairman 5 5 6

Sri R.K.Sharma, IAS

(01.04.2018-31.03.2019)-do-

Director/Addl. Chief Secy. To Govt.,

Steel & Mines Dept., GoO5 2 4

Sri Vijay Arora, IAS

(01.04.18-22.09.18)-do-

Director/ Pr. Secy. To Govt. PE

Dept., GoO1 - 3

Sri R. Vineel Krishna, IAS

(01.04.18-31.03.19)-do- Managing Director 5 5 6

Sri A.K.K. Meena, IAS (01.04.18-

22.09.18)-do-

Director/Pr.Secy. To Govt. Finance

Dept., GoO1 - 3

Sri Pravat Kumar Lenka, IAS

(22.09.18-31.03.19)-do-

Director/ Addl. Secy. to Govt., PE

Dept., GoO4 3 6

Sri Deepak Mohanty, IFS

(01.04.18-31.03.19)-do- Director/ Director of Mines, GoO 5 2 2

Sri P.K.Nanda

(22.09.18-31.03.19)-do-

Director/ Addl. Secy to Govt.,

Finance Dept., GoO4 4 3

Sri C.R.Das

(01.04.18-31.03.19)Ind. Director Director 5 4 1

Sri D.K.Roy

(01.04.18-31.03.19)-do- Director 5 5 4

Sri G.S.Khuntia

(01.04.18-31.03.19)-do- Director 5 5 -

Sri C.R.Pradhan

(01.04.18-31.03.19)-do- Director 5 4 2

Sri S.P.Padhi

(01.04.18-31.03.19)-do- Director 5 5 -

Sri Satyajit Mohanty

(01.04.18-31.03.19)

Whole Time

DirectorDirector (Fin.) 5 5 3

Sri (Dr.) Santanu Kumar Rath

(01.04.18-31.03.19)

Whole Time

DirectorDirector (Persnl.) 5 5 -

Sri Ramanath Praharaj

(01.12.18-31.03.2019)

Whole Time

DirectorDirector (P&P) 5 4 2

INFORMATION OF DIRECTORS AND BOARD MEETINGS

03CORPORATE GOVERNANCE

The philosophy of the company in relation

to Corporate Governance is to ensure

transparency, disclosures and Reporting that

conforms fully to the laws, regulations and

guidelines in order to promote ethical conduct

throughout the organization. We at OMC are

in consonant with the highest standards of

Corporate Governance and recognise that

each member of the Board owes his fi rst duty

towards protecting and furthering the interest

of the company.

NAME OF THE BOARD OF

DIRECTORS

The composition of the Board of Directors

during the Financial Year 2018-19 is given in

the table below. The day to day management

of the Company is vested with Managing

Director and Chairman and is subject to the

overall superintendence and control of the

Board.

During the fi nancial year 2018-19, Board

meetings were held for 5 (Five) times i.e.

on 13.07.2018, 22.09.2018, 30.10.2018,

29.01.2019 & 29.03.2019.

The Director’s attendance at the Board

meetings and number of their Directorship

in other companies during the fi nancial year

(2018- 2019) were as follows:


AUDIT COMMITTEE

DIRECTOR’S RESPONSIBILITY

STATEMENT

To the best of their knowledge and belief and

according to the information and explanations

obtained by them, the Directors make the

following statements in terms of section 134(3)

(c) of the Companies Act, 2013.

» That in the preparation of the Annual

Accounts for the fi nancial year ended 31st

March 2019, the applicable Accounting

Standards have been followed along with

the proper explanation relating to material

departures.

» That the Directors have selected such

Accounting Policies and applied them

consistently and made judgments and

estimates that are reasonable and prudent

so as to give a true and fair view of the

state of affairs of the Company at the end

of the fi nancial year and of the profi t or loss

of the Company for the year under review.

» That the Directors have taken proper

and suffi cient care for the maintenance

of adequate Accounting Records in

accordance with the provisions of the

Companies Act, 1956/ Companies Act,

2013 for safeguarding the assets of the

Company and for preventing and detecting

fraud and other irregularities.

» That the Directors have prepared the

Accounts for the fi nancial year ended 31st

March,2019 on a going concern basis.

» That proper internal fi nancial controls were

in place and that the fi nancial controls were

adequate and were operating effectively.

» And the system to ensure compliance with

the provisions of all applicable laws were

in place and were adequate and operating

effectively.

COMMITTEES OF THE BOARD

Audit Committee of Directors

Although the Audit Committee is not a

statutory requirement for the OMC Limited, in

the interest of good Corporate Governance,

an Audit Committee has been constituted

by the Board of Directors in their 337th

meeting held on 27th March 2003 to oversee

the Company’s fi nancial reporting process,

disclosure of fi nancial information, reviewing

internal controls, the process of compilation

of Annual Accounts, laying down of proper

accounting, auditing, costing and various

fi nancial policies, reviewing of statutory and

C&AG Auditors, comments and observations,

submitting proper compliance against the

same and suggestions for improvement of the

system.

The Audit Committee comprises of 3 (three)

Independent Directors. Sri D. K. Roy, is the

Chairman of the Committee. He retired as

Chief Commissioner, Income Tax. He was also

the Chairman of OERC.

The Audit Committee of the Board met 14

(Fourteen) times during the fi nancial year

2018-2019 i.e. on 09.05.2018, 08.06.2018,

10.07.2018, 17.07.2018, 27.07.2018,

10.08.2018, 22.09.2018, 25.10.2018,

29.12.2018, 15.01.2019, 05.02.2019,

20.03.2019, 21.03.2019 & 27.03.2019 The

particulars of the members including their

attendance in the Audit Committee meetings

during the year were as follows:

Members of Audit CommitteeNo. of Meetings

during the tenure

No. of Meetings

attended

Sri D. K. Roy, Director & Chairman of the

Committee

14 14

Sri C. R. Das 14 12

Sri S.P. Padhi 14 14

Sri Satyajit Mohanty 14 14


Personnel Committee of Directors

The Personnel Committee of Directors discusses

different issues relating to Human Resource

Development Activists in the organisation. It

deliberates and recommends HR Policies to the

Board and non-executives, makes promotional

avenues for the existing employees and reviews

delegation of powers to different authorities for

smooth functioning and quick discharge of duties

as and when required.

The Personnel Committee of the Directors met

6 (Six) times during the fi nancial year 2018-19

i.e. on 22.06.2018, 24.07.2018, 11.10.2018,

22.11.2018, 10.01.2019 & 15.02.2019

Technical Committee of Directors

The Technical Committee of Directors discuss

important technical issues relating to production,

transport safety matters at mines of OMC. It

also analyses the technical reports submitted

by different agencies who have been engaged

by OMC to study technical aspects relating

to smooth operation at mines keeping pace

with rules and regulations framed by different

statutory authorities. It reviews the model

tender documents and deliberates on techno

commercial terms of high value tenders. During

the fi nancial year 2018-19, the Committee met

11 (Eleven) times i.e. on 24.04.2018, 08.05.2018,

04.07.2018, 18.09.2018, 22.10.2018, 27.10.2018,

20.12.2018, 15.01.2019, 22.01.2019, 08.03.2019

& 25.03.2019.

Sri D.K.Roy & Sri S.P. Padhi Independent Directors

attended the meeting(s) held on 24.04.2018, 08.05.2018,

15.01.2019, 22.01.2019, 08.03.2019 & 25.03.2019 as

Special Invitees.

Sales Committee of Directors

The Sales Committee of Directors deliberate and

fi x the e-auction fl oor price of various minerals

like Iron Ore, Chromite Ore, Bauxite etc. raised by

OMC keeping in view its cost of production and

also the demand of the minerals in the domestic

and global market and the ruling prices in the

said market compiled by the sales of Marketing

Department. It also suggests means for increase

in sale of minerals.

During the fi nancial year 2018-19, the Committee

met 18 (Eighteen) times on 03.04.2018,

01.05.2018, 28.05.2018, 21.06.2018, 29.06.2018,

26.07.2018, 03.08.2018. 30.08.2018, 01.09.2018,

27.09.2018, 29.10.2018, 29.11.2018, 28.12.2018,

12.01.2019, 28.01.2019, 02.02.2019, 26.02.2019

& 27.03.2019

Members of Technical CommitteeNo. of Meetings

during the tenure

No. of Meetings

attended

Sri R. Vineel Krishna IAS, MD & Chairman

of the Committee 11 8

Sri C. R. Das 11 9

Sri G. S. Khuntia 11 11

Sri C. R. Pradhan 11 11


Sri Ramanath Praharaj 11 9

Members of Personnel CommitteeNo. of Meetings

during the tenure

No. of Meetings

attended

Sri R. Vineel Krishna IAS, MD & Chairman

of the Committee 06 04

Sri C. R. Das 06 06

Sri D. K. Roy 06 04

Sri C.R. Pradhan 06 06


Dr. Santanu Kumar Rath 06 06

Members of Sales CommitteeNo. of Meetings

during the tenure

No. of Meetings

attended

Sri R.Vineel Krishna, IAS, MD & Chairman

of the Committee18 15

Sri C. R. Das 18 14

Sri D. K. Roy 18 15

Sri G. S. Khuntia 18 17

Sri C.R.Pradhan 18 16

Sri S.P.Padhi 18 17



CSR Committee of the Board

The Ministry of Corporate Affairs, Govt. of India,

vide notifi cation dated 27th February 2014,

has notifi ed Section 135, Schedule VII ofThe

Companies Act 2013 (Provisions relating to

CSR) and The Companies (Corporate Social

Responsibility Policy) Rules 2014. The same

is effective from 1st April, 2014. The Company

has realigned the CSR Policy and outlined the

activities to be undertaken.

The composition of the CSR Committee and

the number of meetings during the FY 2018-

19 is given in table below. As per the existing

delegation, two Independent Directors are being

inducted in this Committee on rotation basis

every 12 months. The Committee met twice on

29.10.2018 & 20.02.2019.

Special Committee

The management of OMC depending upon the

exigency refer to any specifi c matter(s) to Special

Committee for deliberation/recommendation. The

composition of the Special Committee and the

No. of meetings during the FY 2018-19 is given in

table below. The Committee met on 09.05.2018,

30.06.2018 & 03.07.2018.

Members of CSR CommitteeNo. of Meetings

during the tenure

No. of Meetings

attended

Sri R. Vineel Krishna, IAS, MD & Chairman

of the Committee

2 2

Sri C.R.Pradhan (20.05.2018-31.03.2019) 2 2

Sri S.P.Padhi (22.06.2018-31.03.2019) 2 2


Dr. Santanu Kumar Rath 2 2

Members of Special CommitteeNo. of Meetings

during the tenure

No. of Meetings

attended

Sri C.R.Das 3 3

Sri C.R.Pradhan 3 3

Sri S.P.Padhi 3 3

DECLARATION BY AN

INDEPENDENT DIRECTOR

In terms with section 149(7) of The Companies

Act 2013, the Independent Directors of the

Company have submitted a declaration that

they meet the criteria of Independence.

DETAILS OF ESTABLISHMENT

OF VIGIL MECHANISM FOR

DIRECTORS AND EMPLOYEES

As per provisions of Section 177(9) of The

Companies Act 2013 and Rule 7 ofThe

Companies (Meetings of Board and its

Powers) Rules, 2014, establishment of Vigil

Mechanism for directors and employees is not

compulsory for the Company.

PARTICULARS OF EMPLOYEES

Furnishing of particulars of employees as

required in terms of the provisions of Section

197 of The Companies Act 2013, read with the

Rule 5(2) of the Companies (Appointment and

Remuneration of Managerial Personnel) Rules,

2014 is not applicable to the Company since it

is not a listed company.

NOMINATION, REMUNERATION

& STAKEHOLDERS

RELATIONSHIP COMMITTEE

The Company is not required to constitute a

Nomination and Remuneration Committee

under Section 178(1) of The Companies Act

2013 and Rule 6 of the Companies (Meetings

of Board and its Powers) Rules, 2014 and

Stakeholder Particulars of employees as

required in terms of the provisions of Section

197 of The Companies Act 2013, read with the

Rule 5(2) of the Companies (Appointment and

Remuneration of Managerial Personnel) Rules,

2014 which is not applicable to the company.


LEGAL PROCEEDINGS

The Hon’ble Supreme Court of India vide

it’s order dated 2nd August 2017 in Writ

Petition (Civil) No. 114 of 2014 – Common

Cause v. Union of India & Ors. held that

the compensation shall be payable for

mining without/in violation of Environmental

Clearance or Forest Clearance at 100% of

the price of the mineral as rationalized by the

CEC. Further, it was clarifi ed that in case there

is overlapping violation of EC/FC , only 100%

and not 200% compensation will be payable.

It was further directed that the compensation

shall be paid latest by 31st December 2017,

subject to and only after compliance with

statutory requirements and full payment of

compensation and other dues, the mining

lease holders can re-start their mining

operations.

As per the judgement dtd. 2nd August 2017,

The OMC had received the fresh demand

notices from DDM, Joda/Koira/ Jajpur Road

and Mining offi cer, Keonjhar in respect of

Koira-Kasira, Koira-Bhanjpali, Banspani,

BPJ, Dubna, Khandbandh, Seremada,

Bhadrasahi, Sekradahi, Gandhamardan, Block

A & B, Daitari, Kurmitar & Roida- C Mines.

Accordingly, a total amount of INR 2,095.12

Crore was paid to the State Government in a

phased manner towards total compensation

amount for violation of Environment Clearance

(E.C) and Forest Clearance (F.C) except for

Roida-C Mines as it was operated by IDCOL

and IDCOL took necessary action in the

matter.

Further, on receipt of demand notices for 8

Iron and Manganese mines towards violation

of CTO and Mining Plan, OMC has fi led

revision applications before the Revisional

Authority, Ministry of Mines, Government of

India challenging the said demand notices. On

20th December 2017, Mines Tribunal granted

stay operation of impugned demand raised in

these eight cases and stay orders are in force.

In the FY18-19, no signifi cant and material

orders have been passed by the regulators

or courts or tribunals under review which will

impact the ongoing concern status of the

Company.

SECURITY SYSTEM

OMC has established an Integrated Security

& Communication Management System.

The Lease Protection Task Force have been

monitoring the various leases of OMC in

real time environment. The Company also

proposes to create a compact and coherent

industrial security system, to meet the

futuristic challenges of mines security. Efforts

are on to induct Odisha Industrial Security

Force (OISF) personnel, in various Mines/

Regional Offi ces of OMC. The aim would

be to augment the existing resources of

Departmental Security Personnel with the

OISF, so that an orchestrated and foolproof

Security Plan is put in place which can

effectively thwart any kind of pilferage of

minerals.

ADDITIONAL DISCLOSURES4


PARTICULARS OF CONTRACTS WITH RELATED PARTY TRANSACTIONS

During the year there were no Contract or Arrangements with Related parties referred to in Section 188(1) of The Companies Act 2013 except with

NINL. Details of the transactions are provided in Form AOC – 2 which is submitted below.

FORM NO. AOC -2

(Pursuant to clause (h) of sub-section (3) of section 134 of the Act and Rule 8(2) of The Companies (Accounts) Rules, 2014.

Form for Disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in Sub Section (1) of

Section 188 of The Companies Act 2013 including certain arm’s length transaction under third provision thereto.

Details of contracts or arrangements or transactions not at Arm’s length basis.

MEMORANDUM OF UNDERSTANDING

In line with the guide lines prescribed under the Corporate Governance Manual of Government of Odisha, the Company has entered into a

Memorandum of Understanding with the Department of Steel & Mines, Government of Odisha for FY 2018-19.

ACKNOWLEDGEMENT

I take this opportunity to thank all my colleagues on the Board for their valuable advice, guidance and support in managing the affairs of the

Company. On behalf of the Board and on my behalf, I extend my gratitude to the employees of the Company for their committed services to

the Company for all round progress during the FY 2018-19. I would also like to express my gratitude to our Customers, Vendors, Statutory

Auditors, Comptroller & Auditor General of India, New Delhi, Principal Accountant General, Bhubaneswar, Internal Auditors, Business

Associates, Bankers and in particular to IBM, East Coast Railways, MMTC and Paradeep Port Trust Authorities and other Government of

India and Odisha Authorities and Agencies for their continued co-operation/support and patronage.

I also thank our esteemed shareholders for their continued support in guiding and steering ahead the affairs of the Company. For and on

behalf of the Board of Directors.

Sd/-

Sanjeev Chopra, IAS

CHAIRMAN


Place : Bhubaneswar

Date : 23rd October, 2019

Particulars Details

Name of the related party & nature of relationshipNeelachal Ispat Nigam Limited, Co-Promoter. 2 Directors of

OMC are Directors in NINL.

Nature of contracts/arrangements/transactionsSale of Raw material and funding arrangement in Loan and

Equity.

Duration of the contracts/arrangements/transactions 5 years agreement w.e.f 1st July 2015 for sale of Iron Ore.

Salient terms of the contracts or arrangements or transactions

including the value, if any

Agreement for sale of Iron Ore (CLO & Fines). Funding in Equity

amount of INR127crore and short term loan of INR170 crore.

Justifi cation for entering into such contracts or arrangements

or transactions

To carter to the Iron ore requirement for production of Pig Iron &

funding requirement for NINL.

Date of approval by the Board 22nd September 2018

Amount paid as advances, if any Short term loan amounting to INR170 crore

Date on which the ordinary resolution was passed in General

meeting as required under fi rst provision to section 1884th Decemebr 2018


Following tabular statements indicate the achievements during 2018-19 as compared to previous years:

IRON ORE

YearProduction

(in ‘000 MT)

Sales

(in ‘000 MT)

Sales Value

(₹ in Crores)

2014-15 732 615 797.34

2015-16 927 628 710.04

2016-17 1,206 849 1,073.63

2017-18 893 1,039 1,151.98

2018-19 1,188 1,125 1,353.53

YearProduction

(in ‘000 MT)

Sales

(in ‘000 MT)

Sales Value

(₹ in Crores)

2014-15 - - -

2015-16 - - -

2016-17 - - -

2017-18 - 0.592 0.17

2018-19 - - -

YearProduction

(in ‘000 MT)

Sales

(in ‘000 MT)

Sales Value

(₹ in Crores)

2014-15 - - -

2015-16 - - -

2016-17 - - -

2017-18 53 - -

2018-19 2,700 1,690 138.97

CHROME ORE

MANGANESE ORE

YearProduction

(in ‘000 MT)

Sales

(in ‘000 MT)

Sales Value

(₹ in Crores)

2014-15 3,170 3,497 1,083.92

2015-16 5,971 4,338 838.04

2016-17 6,366 7,162 1,257.80

2017-18 7,918 7,419 1,700.94

2018-19 10,396 10,338 2,559.54

From 2014-15 to 2016-2017, Production & Sales for Bauxite Ore have

been NIL

APPENDIX 1FINANCIAL HIGHLIGHTS

BAUXITE

From 2014-15 to 2016-17, Production & Sales for Manganese Ore have

been NIL.


EQUITY AND LIABILITIES

1. Shareholders’ Funds/Equity

A. Equity Share Capital 31.45 31.45

B. Other Equity 5,608.40 5,430.33

Total Equity (A + B) 5,639.85 5,461.78

2. Non-Current Liabilities

A. Provisions 241.40 152.58

B. Deferred Tax Liabilities (Net) - -

Total Non-Current Liabilities (A + B) 241.40 152.58

3. Current Liabilities

A. Financial Liabilities

Trade Payables

– Total outstanding dues of Micro Enterprises and Small Enterprises - -

– Total outstanding dues of creditors other than Micro Enterprises and Small

Enterprises190.47

310.20

Other Financial Liabilities 99.53 70.57

B. Other Current Liabilities 276.68 308.24

C. Provisions 11.29 10.44

Total Current Liabilities (A + B + C) 577.97 699.45

TOTAL (1 + 2 + 3) 6,459.23 6,313.81

Particulars As at 31.03.2018 (₹ in Crores) As at 31.03.2017 (₹ in Crores)

ASSETS

1. Non-Current Assets

Property, Plant & Equipment 168.78 149.44

Capital work-in-Progress 49.44 45.59

Other Intangible Assets 392.57 394.12

Intangible Assets under development 117.51 140.10

Financial Assets

– Investments 417.50 417.30

– Loans 402.22 512.83

Deferred Tax Assets (Net) 53.81 298.94

Other Non-Current Assets 483.31 493.44

Total Non-Current Assets 2,085.14 2,451.76

2. Current Assets

Inventories 558.24 492.56

Financial Assets - -

Trade Receivables 107.66 142.61

Cash & Cash equivalents 80.05 47.54

Bank Balances other than Cash and Cash equivalents 943.77 365.76

Loans 266.66 431.04

Others 1,270.02 1,435.62

Current Tax Assets (Net) 797.31 811.98

Other Current Assets 350.38 134.94

Total Current Assets 4,374.09 3,862.05

TOTAL (1+2) 6,459.23 6,313.81

EXTRACT OF BALANCE SHEET


Particulars 2018-19 (₹ In crores) 2017-18 (₹ In crores)

What We Owned

Fixed Assets (PPE & Intangible Assets) - -

Gross Block (Including CWIP & Intangible Assets under

development)1,238.50 1,129.22

Less: Depreciation 510.20 399.97

Net Block (Including CWIP & Intangible Assets) 728.30 729.25

Financial Assets

Investment net of Diminution 417.50 417.31

Non-Current Loans ( Net) 402.22 512.83

Deferred Tax Assets/(Liabilities) – Net 53.81 298.94

Net off of Other Non-Current Assets & Liabilities 241.90 340.85

Sub Total 1,843.73 2,299.18

Add: Working Capital (Current Assets – Current Liabilities) 3,796.12 3,162.60

TOTAL: (NET WORTH) 5,639.85 5,461.78

REPRESENTED BY:

Equity 31.45 31.45

Reserve & Surplus 5,608.40 5,430.33

TOTAL: 5,639.85 5,461.78

SUMMARY OF BALANCE SHEET


Particulars 2018-19 ( In crores) 2017-18 (₹ In crores)

WHAT WE EARNED FROM

Revenue from Operations 4,052.04 2,853.09

Other Income 435.65 314.29

TOTAL: 4,487.69 3,167.38

w

WHAT WE SPENT/PROVIDED FOR

1. Change in Inventories - -

A. Opening Stock 606.26 562.74

B. Closing Stock 664.60 606.26

Difference (A - B) (58.34) (43.52)

2. Employee Benefi t Expenses 227.62 267.06

3. Finance Costs 5.51 8.73

4. Depreciation / Amortization 110.25 108.26

5. Excise Duty - 2.20

6. Other Expenditures

A. Production & Processing Expenses

Ore Raising 541.93 381.59

Exploration & Prospecting Expenses 9.65 5.25

Transportation 39.42 15.96

Mine Closure Liability 73.51 35.76

Surface Rent 3.24 3.69

Energy Charges 2.74 2.12

Compensation for Excess Mining for Iron & Manganese Ore 693.61 2,095.12

Consent Fees, Other Mining & Statutory Expenses 9.20 8.35

Sub-Total 1,373.30 2,547.84

B. Stores and Spares consumed

POL Consumed 6.90 5.94

Mech. Spares Consumed 0.28 0.32

Explosive 0.0009 0.01

Provision against Slow Moving Stores 4.55 0.03

Provision against Non Moving Stores (6.52) 1.01

Other Stores Consumed 1.42 1.30

Sub-Total 6.63 8.61

C. Administrative Expenses

Repair & Maintenance 19.31 11.70

Travelling Expenses including Directors 1.41 1.37

ERP & SAP Expenses 11.45 5.78

Auditor’s Remuneration including Cost Audit Fees 0.12 0.14

Insurance, Rent, Dead Rent, Rates & Taxes 9.58 8.75

Watch & Ward 43.26 37.49

Hire Charges 12.55 9.48

Vehicle Hire Charges 1.57 2.08

Legal Expenses 120.16 70.08

Donation - 6.36

Fees, Tariff, Electricity, GH, etc. 7.85 6.36

Sub-Total 227.26 153.23

WHAT WE EARNED AND WHAT WE SPENT


Particulars 2018-19 ( In crores) 2017-18 (₹ In crores)

D. Selling & Distribution Expenses

Royalty 892.15 505.94

DMF 267.64 149.82

NMET 17.84 9.99

Transport, Railway Freight & Wagon Loading 27.06 20.98

Sales Commission 2.84 2.48

Analysis Charge, Advertisement, etc. 6.51 4.13

Sub-Total 1,216.31 828.07

E. Other Expenses

Net Present Value 37.35 11.26

Penalty & Fines 4.35 -

Prov for Diminution in Investment 10.09 29.38

Prior Period Expenses /(Income) 62.32 32.73

Corporate Social Responsibility 0.10 2.86

Peripheral Development Expenses (0.09) 70.34

Reconciliation effect of old balances - 2.00

Miscellaneous Expenses 5.44 1.86

Sub-Total 119.56 150.43

TOTAL (A + B + C + D + E) 2,943.06 3,688.18

TOTAL: (1 to 6) 3,228.10 4,030.91

NET MARGIN (A - B) : 1,259.59 (863.53)

Less: Provision for Income Tax & DTA (469.71) (400.04)

Profi t After Tax/Profi t for the Period 789.88 (463.49)

Less: Other Comprehensive Income (9.03) 26.68

Total Comprehensive Income 780.85 (436.81)

Less: Transferred to General Reserve - -

Available Profi t for the period 780.85 (436.81)

Add: Opening Balance of Profi t b/f 3,104.59 3541.40

Available Profi t as on year end 3,885.44 3,104.59

Less: Dividend & Tax on Dividend (602.78) -

Closing Retained Earnings as on year end 3,282.66 3,104.59

Add: General Reserve 2,308.03 2,308.03

Cumulative Profi t as on year end 5,590.69 5,412.62

Add: Capital Reserve 17.71 17.71

Other Equity/Reserve & Surplus 5,608.40 5,430.33

Add: Equity 31.45 31.45

Total Equity 5,639.85 5,461.78


The Statutory Auditors have given an unqualifi ed report during the Audit of both Standalone and

Consolidated Annual Accounts for the Financial Year 2018-19.

APPENDIX 2STATEMENT REGARDING UNQUALIFIED REPORT OF STATUTORY AUDITORS

Observation Reply Of The Management

The company has not accepted any deposits from the public. However, out of the

total advances received against sale by the company amounting to ₹ 97.91 Crore,

the advances amounting to ₹ 13.13 Crore are pending for more than 365 days

from the date of advance and is to be considered as Deemed Deposits under the

Companies Act, 2013.

The outstanding advances are being scrutinised on case to case basis and

the undisputed amount, if any, arising out of reconciliation/ scrutiny shall be

refunded to the buyers.

Reply to observation of Statutory Auditors made vide point no. V of Annexure-A as required by CARO 2016.


APPENDIX 3REPLIES OF MANAGEMENT ON C&AG - COMMENTS

Comments of C&AG Replies of Management

A. Comments on Profi tability:

Statement of Profi t and Loss

Other Income (Note No-23) : ₹435.65crore

1. The above is overstated by ₹6.29 crore due to wrong accounting of accrued

interest on debtors and others related to previous years, received during

current fi nancial year 2018-19. This has also resulted in overstatement of Profi t

for the year and Current Asset by ₹6.29 crore each.

The Corporation have taken note of the observations of C&AG. The interest

pertains to the FY 2017-18 and had been accounted for in the FY 2017-18

under the head accrued interest. The amount has been inadvertently booked

as interest in the FY 2018-19. However, as the amount constitutes 0.15% of

turnover, the impact is not material considering the size of the transactions.

Comments on Profi tability

Statement of Profi t and Loss

Tax Expenses : ₹469.71 crore

2. The above includes ₹6.41 crore being penal interest deposited under

Section 234 B and 234C of Income Tax Act,1961 for delay in payment of

Advance Tax for the year 2018-19. This has resulted in understatement of

‘Other Expenses’ and overstatement of ‘Profi t Before Tax’ by ₹6.41 crore each.

Interest payable under section 234 B and 234 C have been booked

inadvertently under the head of tax expense instead of other expense.

However, there is no impact on the amount of Profi t After Tax for the year.

B. Comments on Disclosure

3. The Company was disclosing Contingent liabilities by reducing the amount

paid on protest against the demand (in case of Income tax matters) since

2017-18. As the amount paid on protest /adjustments were not accounted for

as expenses/liabilities/provisions and shown as advance, the same should not

have been reduced from Contingent liabilities. The Company reduced ₹439.65

crore (Income Tax, Central excise & service Tax, commercial Tax) during 2017-

18 and ₹73.58 crore (Income Tax) during 2018-19 from contingent liability,

which is not correct depiction of amount of contingent liability.

A part of the disputed liabilities has been discharged by way of Payment

and thus, if the outcome goes unfavourable, then OMC would be liable for

the remaining amount only. Hence, there is no under reporting of Contingent

Liabilities.

4. The company was including annual provisions towards Mining Closure plan

in the cost for valuation of Inventories (Finished Goods-Ores) up to 2017-18.

But, during the year, the company excluded expenses towards Mines Closure

liability (₹ 35.07 crore) while arriving at the cost of Finished Goods-Ores of

different mines. However, the reason for exclusion of such expenses from the

cost of inventory during the year have not disclosed in the fi nancial statement

nor the accounting policy on valuation of inventory has been modifi ed.

As per Ind AS 2, inventories are assets which are in the process of production

for sale:

The mine closure plan provisions created are towards the future estimated

cost to be incurred during the time of closure of mines and have no relation

with the present cost of purchase, cost of conversion and other cost as

stipulated under Ind AS-2 ‘Inventories’ in bringing the inventories to its present

position for sale. Therefore, provision of mine closure plan expenses is not

included in valuation of inventory during fi nancial year 2018-19.

5. A reference is invited to Note No. 2.7.3 (Mining Rights) as per which the

company includes stamp duty, registration charges, land premium and land

alienation charges under the head mining rights and discloses the same under

intangible assets. The above accounting treatment is not correct as expenditure

on stamp duty, registration charges, land premium are incurred for acquiring

leasehold land. Hence, these expenditures should have been included as part

of Leasehold land and amortized along with Leasehold land.

The amount incurred to acquire mining rights includes NPV for diversion of

forest land, stamp duty ,registration fees, cost of compensatory afforestation,

premium paid for non forest Govt land as per Govt Of Odisha guidelines for

compensatory afforestation, Cost of land alienation of private land, cost of

wild life plan etc. All those charges are capitalised as mining rights in the year

they are incurred.

Stamp Duty & Registration Charges are directly linked to extraction of mineral

from the lease hold. The amount are calculated based on the anticipated

royalty to be paid to the State Govt in terms of Section 9 of the MMDR Act,

which states inter alia “ holder of a mining lease shall pay royalty in respect of

any mineral removed or consumed by him....”

The lease deeds executed between Govt of Odisha and OMC clearly mention

the anticipated royalty. Again the extractable quantity of mineral from a lease

hold area is not dependent on the size of the leasehold area but linked to

Geological resources of the minerals which may vary widely for the same size

of leasehold area depending on depositional features of the minerals .

The land premium charges paid to the State Government for non-forest Govt

land for compensatory afforestation in lieu of permission for diversion of

mineral possessing forest land is as per guide lines of Govt of Odisha.

The Lease holder has to pay NPV for diversion of the forest land as per

directive of the Hon’ble Supreme Court of India.

The non forest Govt land used for compensatory afforestation is handed

over to forest department. The diverted forest land used for mining operation

reverts back to forest department after mining of ore.

It will be seen from the above that none of the expenses as mentioned here

have any relationship with the lease hold area.

Therefore, though the payment is related to land, the same does not belong to

OMC and is part of Forest Diversion Proposal by which OMC gets permission

for mining.

Thus, this is treated as Mining Right & not Lease Hold Land.


Name and description of main Product/Services NIC code of the product/service % to total turnover of the company

Iron Ore 1,310 -

Chrome Ore & Concentrate 1,320 -

Bauxite 1,320 -

NAME AND ADRESS OF THE COMPANY CIN/GLNHOLDING/SUBIDIARY/

ASSOCIATE

% OF SHARE

HELD

APPLICABLE

SECTION

Odisha Mineral Exploration Corporation Limited (OMECL) U13209OR2016SGC025960 SUBSIDIARY 100% 2(87)

Mandakini-B Coal Corporation Limited (MBCCL) U10200OR2009SGC010604 ASSOCIATE 25% 2(6)

Kalinga Coal Mining Pvt. Limited (KCMPL) U10101OR2004PTC007476 ASSOCIATE 26% 2(6)

South West Orissa Bauxite Mining Company (Pvt.) Limited U13203OR2009PTC010954 ASSOCIATE 26% 2(6)

Rio Tinto Orissa Mining Pvt. Limited U14219OR1995PTC004140 ASSOCIATE 49% 2(6)

Lanjigarh Project Area Development Fund (A company

created u/s 25 on Companies Act 1956)U85300OR2009NPL011190 ASSOCIATE 25% 2(6)

Nuagaon Coal Company Limited U10100OR2011SGC013609 ASSOCIATE 50% 2(6)

Odisha Thermal Power Corporation Limited U40102OR2007SGC009145 ASSOCIATE 50% 2(6)

East Coast Bauxite Mining Company (Pvt.) Limited U13203OR2007PTC009597 ASSOCIATE 26% 2(6)

PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANYAll the business activities contributing 10% or more of the total turnover of the company shall be stated:-

REGISTRATION AND OTHER DETAILSCIN:- U13100OR1956SGC000313

Registration Date:- 16.05.1956

Name of the Company:- The Odisha Mining Corporation Limited

Category/Sub-Category of the Company:- State Govt. Company

Address of the Registered offi ce and contact details:- OMC House, Bhubaneswar-751001, Ph NO. 0674-2377400, Website : www.omcltd.in

Whether listed company Yes / No:- No

Name, Address and Contact details of Registrar and Transfer Agent:- N/A

AS ON THE FINANCIAL YEAR ENDED ON MARCH 31, 2019[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]

APPENDIX 4EXTRACT OF ANNUAL RETURN


Category of Shareholders

No. of Shares held at the beginning of the year No. of Shares held at the end of the year% Change

during the

yearDemat Physical Total % of total share Demat Physical Total % of shares

1. Promoters − Indian

Individual/ HUF - 90 90 0.01 - 90 90 0.01 -

Central Govt. - - - - - - - - -

State Govt. - 31,45,390 31,45,390 99.99 - 31,45,390 31,45,390 99.99 -

Bodies Corp. - - - - - - - - -

Banks/FI - - - - - - - - -

Any Other - - - - - - - - -

Total Shareholding of

Promoter - 31,45,390 31,45,390 100 - 31,45,390 31,45,390 100 -

2. Public Shareholding

A. Instructions

– Mutual Funds

– Banks/FIs

– Central Govt.

– State Govt(s)

– Venture Capital Funds

– Insurance Companies

– FIIs

– Foreign Venture

– Capital Funds

– Others(specify)

- - - - - - - - -

Sub-total (A) - - - - - - - - -

B. Non- Institutions

Bodies Corporate

– Indian

– Overseas

Individuals

– Individual shareholders

holding nominal share

capital upto Rs. 1 lakh

– Individual shareholders

holding nominal share

capital in excess of 1 lakh

Others (Specify)

- - - - - - - - -

Sub-total (B) - - - - - - - - -

Total Public Shareholding =

(A + B)- - - - - - - - -

Shares held by custodian for

GDRS & ADRS- - -

GRAND TOTAL (1 + 2 + 3) 31,45,390 31,45,390 100 - 31,45,480 31,45,480 100 - -

SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY)

A. CATEGORY-WISE SHARE HOLDING


Shareholder’s Name

Shareholding at the beginning of the year Shareholding at the end of the year

No. of

Shares

% of total

Shares of

the company

%of Shares Pledged

/ encumbered to

total shares

No. of

Shares

% of total

Shares of

the company

%of Shares Pledged

/ encumbered to

total shares

% change in

shareholding

during the year

Hon’ble Governor of Odisha 31,45,390 99.99 - 31,45,390 99.99 - -

Sri R. Vineel Krishna, IAS, MD,

OMC Limited30 0.00095 - 30 0.00095 - -

Sri Tuhin Kanta Pandey, IAS,

Pr.Secy. to Govt.Fin.Dept.15 0.00047 - 15 0.00047 - -

Sri R.K Sharma, Ias, Principal

Secy. to Govt. Steel & Mines

Department Odisha

15 0.00047 - 15 0.00047 - -

Sri Biranchi Narayan Rath

Addl. Secy. to Govt. Steel &

Mines Department Odisha

15 0.00047 - 15 0.00047 - -

Sri K.C. Sethi

FA-Cum-Joint Secy. to Govt.

Steel & Mines Department Odisha

15 0.00047 15 0.00047 - -

Total 31,45,480 100 31,45,480 100 - -

B. SHAREHOLDING OF PROMOTERS

C. CHANGE IN PROMOTERS’ SHAREHOLDING ( PLEASE SPECIFY, IF THERE IS NO CHANGE)

D. SHAREHOLDING PATTERN OF TOP TEN SHAREHOLDERS (OTHER THAN DIRECTORS, PROMOTERS AND HOLDERS OF GDRS AND ADRS)

Shareholding at the beginning of the year Cumulative Shareholding during the year

No. of

shares% of total shares of the company No. of shares

% of total shares of

the company

At the beginning of the year - - - -

Date wise Increase / Decrease in promoters shareholding

during the year specifying the reasons for increase / decrease

(e.g. allotment / transfer / bonus/ sweat equity etc

- - - -

At the end of the year (or on the date of separation, If

separated during the year)- - - -


No. of

shares% of total shares of the company No. of shares

% of total shares of

the company

At the beginning of the year - - - -

Date wise Increase / Decrease in promoters shareholding

during the year specifying the reasons for increase / decrease

(e.g. allotment / transfer / bonus/ sweat equity etc

- - - -


separated during the year)- - - -


E. SHAREHOLDING OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

Sri R.K Sharma, IAS, Principal Secy. to Govt. Steel &

Mines Department Odisha


No. of shares % of total shares of the company No. of shares % of total shares of the company

At the beginning of the year 15 0.00047 - -

Date wise Increase / Decrease in promoters

shareholding during the year specifying the reasons for

increase / decrease (e.g. allotment / transfer / bonus/

sweat equity etc

- - - -


separated during the year)15 0.00047 - -

Sri R. Vineel Krishna, IAS, MD, OMC LIMITEDShareholding at the beginning of the year Cumulative Shareholding during the year

No. of shares % of total shares of the company No. of shares % of total shares of the company

At the beginning of the year 30 0.00095 - -

Date wise Increase / Decrease in promoters

shareholding during the year specifying the reasons for

increase / decrease (e.g. allotment / transfer / bonus/

sweat equity etc

- - - -


separated during the year)30 0.00095 - -

Secured Loans excluding deposits Unsecured Loans Deposits Total Indebtedness

Indebtedness at the beginning of the fi nancial year ( In Lakhs)

Principal Amount 73,700 - 73,700

Interest due but not paid - - -

Interest accrued but not due - - -

Total 73,700 73,700

Change in Indebtedness during the fi nancial year ( In Lakhs)

Addition - - -

Reduction 73,700 73,700

Net Change - - -

Indebtedness at the end of the fi nancial year ( In Lakhs)

Principal Amount - 73,700

Interest due but not paid - -

Interest accrued but not due - -

Total - -

INDEBTEDNESSIndebtedness of the Company including interest outstanding/accrued but not due for payment.


REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. REMUNERATION TO MANAGING DIRECTOR, WHOLE TIME DIRECTORS AND/OR MANAGER

Particulars of Remuneration Name: R. Vineel Krishna (Managing Director) Total Amount (in ₹)

Gross salary

– Salary as per provisions contained in section 17(1) of the Income-tax Act,1961

– Value of perquisites u/s 17(2) Income-tax Act,1961

– Profi ts in lieu of salary under section 17(3) Income- tax Act, 1961

- -

Stock Option - -

Sweat Equity - -

Commission

– as % of profi t

– others, specify…

- -

Others, please specify - -

Total - -

Ceiling as per the Act - -

Particulars of Remuneration Name: Satyajit Mohanty (Whole Time Director) Total Amount (in ₹)

Gross salary




- 33,00,131

Stock Option - -

Sweat Equity - -

Commission

– as % of profi t


- -


Total - 33,00,131


Particulars of Remuneration Name: Santanu Kumar Rath (Whole Time Director) Total Amount (in ₹)

Gross salary




- 43,43,424

Stock Option - -

Sweat Equity - -

Commission

– as % of profi t


- -


Total - 43,43,424


Particulars of Remuneration Name: Ramanath Praharaj (Whole Time Director) Total Amount (in ₹)

Gross salary




- 28,53,897

Stock Option - -

Sweat Equity - -

Commission

– as % of profi t


- -


Total - 28,53,897



Particulars of Remuneration Total Amount (in ₹)

Name: C.R.Das (Independent Director)

Independent Directors

– Fee for attending Board & Committee meetings

– Commission

– Others, please specify

4,16,000

Sub-total 4,16,000

Other Non-Executive Directors


– Commission


-

Sub-total -

Total 4,16,000

Total Managerial Remuneration -

Overall Ceiling as per the Act -


Name: G.S Khuntia (Independent Director)



– Commission


2,64,000

Sub-total 2,64,000



– Commission


-

Sub-total -

Total 2,64,000




Name: D.K.Roy (Independent Director)



– Commission


3,52,000

Sub-total 3,52,000



– Commission


-

Sub-total -

Total 3,52,000




Name: C.R.Pradhan (Independent Director)



– Commission


3,36,000

Sub-total 3,36,000



– Commission


-

Sub-total -

Total 3,36,000




Name: S.P.Padhi (Independent Director)



– Commission


4,08,000

Sub-total 4,08,000



– Commission


-

Sub-total -

Total 4,08,000



B. REMUNERATION TO OTHER DIRECTORS


C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES

TypeSection of the

Companies ActBrief Description

Details of Penalty/Punishment/

Compounding fees imposed

Authority[RD/NCLT/

COURT]

Appeal Made, if any(give

details)

COMPANY NIL

Penalty - - - - -

Punishment - - - - -

Compounding - - - - -

DIRECTORS NIL

Penalty - - - - -



OTHER OFFICERS IN DEFAULT NIL

Penalty - - - - -



Particulars of Remuneration Key Managerial Personnel Total Amount (in ₹)

CEO Company Secretary CFO -

Gross salary (in ₹) – Salary as per provisions contained in section 17(1) of the Income-tax Act,1961



- 33,13,843 - -

Stock Option - - - -

Sweat Equity - - - -

Commission

– as % of profi t


- - - -

Others, please specify - - - -

Total (in ₹) - 33,13,843 - -


A BRIEF OUTLINE OF THE COMPANY’S

CSR POLICY, INCLUDING OVERVIEW OF

PROJECTS OR PROGRAMS PROPOSED TO BE

UNDERTAKEN AND REFERENCE TO THE WEB-

LINK TO THE CSR POLICY AND PROJECTS OR

PROGRAMS.

OMC`s policy is balancing the economic and

fi nancial goals and optimization of shared value by

creating holistic and lasting impacts to improve the

community. As a responsive corporate entity, OMC

is taking up different Socio-economic development

works guided by its well defi ned CSR Policy.

Since its inception, the Company has taken up

various activities in the areas of Education, Rural

development, Health, Art and Culture, Drinking

water, Games and Sports, Infrastructure, Disaster

relief etc.in conformity to the provisions under the

section.

A detailed CSR Policy, approved by the Board, is placed in

Company’s website i.e. www.omcltd.in.

AVERAGE NET PROFIT OF THE COMPANY FOR

LAST THREE FINANCIAL YEARS.

Average net profi t (PBT) of last three fi nancial years

is INR 485.08 Crore.

PRESCRIBED CSR EXPENDITURE (TWO

PERCENT OF THE AMOUNT AS IN ITEM 3

ABOVE)

The two percent of the Average net profi t of last

three fi nancial years is INR 9.70 Crore.

DETAILS OF CSR AMOUNT SPENT DURING

THE FINANCIAL YEAR IS ENCLOSED AS

ANNEXURE TO THIS REPORT.

a. Total CSR amount estimated for the fi nancial

year: The minimum amount @ 2% of the net

profi t of the last three fi nancial year is INR

9.70 crore against which the Company has

spent INR 10.09 crore which is 2.08% of

average net profi t (PBT) of last three fi nancial

years.

b. Amount unspent ,if any: The unspent CSR

amount is NIL.

IN CASE THE COMPANY HAS FAILED TO

SPEND THE TWO PERCENT OF THE AVERAGE

NET PROFIT OF THE LAST THREE FINANCIAL

YEARS OR ANY PART THEREOF, THE

COMPANY SHALL PROVIDE THE REASONS

FOR NOT SPENDING THE AMOUNT IN ITS

BOARD REPORT.

N/A

A RESPONSIBILITY STATEMENT OF THE CSR

COMMITTEE THAT THE IMPLEMENTATION

AND MONITORING OF CSR POLICY, IS IN

COMPLIANCE WITH CSR OBJECTIVES AND

POLICY OF THE COMPANY.

This is to certify that the implementation and

monitoring of CSR Policy, is in compliance with

CSR objectives and Policy of the Company.

[Pursuant to clause (o) of sub-section (3) of section 134 of the Companies Act 2013 and Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014]

APPENDIX 5ANNUAL REPORT ON CSR ACTIVITIES

Members Period

Sri R. Vineel Krishna, IAS, MD OMC Limited, Chairman of the Committee. 31.03.16 – Continuing

Dr. Santanu Ku. Rath, Director Personnel OMC Limited - Member of the

Committee.

09.10. 17-Continuing

Sri Satyajit Mohanty, Director Finance OMC Limited - Member of the Committee 09.10. 17-Continuing

Sri G.S Khuntia, Independent Director of OMC Board - Member of the Committee 1.4.2018 to 19.05

2018.

Sri C. R Pradhan Independent Director of OMC Board - Member of the Committee. 20.05.2018 to 31.03

2019

Sri C. R Das Independent Director of OMC Board - Member of the Committee. 1.4.2018 to 21.06

2018.

Sri S.P Padhi, Independent Director of OMC Board - Member of the Committee 22.06.2018 to 31.03

2019

Sd/- Sd/-

CVO (CSR) I/c Managing Director

(Chairman of the Committee)

THE COMPOSITION OF THE CSR COMMITTEE

The members of the Committee for the F.Y. 2018-19 are as under:


Manner in which through amount spent during the fi nancial year in detailed below:

Notes: Cumulative amount spent on the projects or programmes upto current reporting period has been calculated from Financial Year 2014-15 onwards.

CSR Project

activities

identifi ed

Sector in which the

project is covered

Projects or Programs

(1) local area or others

(2) specify the State and

District where projects or

programs were undertaken

Amount outlay

(Budget)

project or

Program wise

(₹ in lakhs)

Amount spent on the

projects or programs sub

Head (1) Direct expenditure

on projects or programs (2)

overheads (₹ in lakhs)

Cumulative

expenditure up

to the reporting

period (₹ in lakhs)

Amount

spent Directly

or through

Implementing

agency

Patient

Information

& Assistance

Centre

Preventive health

care – Schedule

VII (i)

Districts – Bhubaneswar,

Puri and Cuttack, Odisha42.96 35.93 46.02 Directly

Health Camp

/ Distribution

of Medicine

Preventive health

care – Schedule

VII (i)

District – Keonjhar, Odisha 25.00 20.83 20.83 Directly

Water supply

through Bore

well

Making available

safe drinking water

– Schedule VII (i)

Districts – Keonjhar , Jajpur

and Sundargarh, Odisha80.00 67.72 94.61 Directly

Promotion of

education

Promoting education

including special

education –

Schedule VII (ii)

Districts – Keonjhar , Puri,

Jajpur and Sundargarh,

Odisha

35.00 29.66 29.66

Directly/

Implementation

Agency

OMC Super

Promoting education

and employment

enhancing –

Schedule VII (ii)

District – Khorda, Odisha 350.00 300.00 776.40Implementation

Agency

Livelihoods

improvement

Livelihoods

enhancement

projects – Schedule

VII (ii)

District – Keonjhar, Odisha .50 .50 .50 Directly

Infrastructure

Development

Rural development

projects – Schedule

VII (x)

Districts – Keonjhar , Puri,

Jajpur and Sundargarh,

Odisha

600.00 519.59 1119.59

Directly/

Implementation

Agency

Other

activities 50.00 34.95 34.95 Directly

Total (in ₹) 1,183.46 1,009.18 2,122.56


ParticularsFinancial Year

2018-19

Financial Year

2017-18

(₹ in crore) (₹ in crore)

Income in Foreign Currency Nil Nil

Expenditure incurred in Foreign Currency (USD 2000 in FY

2017-18 and USD 7351 & 200 Singapore Dollar in FY 2018-19)0.05 0.01

CONSERVATION OF ENERGY

1. Energy Conservation measures taken:

a. Earlier OMC had installed Automatic

Power Factor Correction (APFC) panel

at Daitari, COB Plant, Gandhamardan,

Khandbandh (Barbil Region), Bangur

as well as at Head Offi ce. During last

year OMC has installed APFC panel at

COBP and another HT APFC installed

at Daitari to improve power factor.

b. We have replaced LED light fi ttings

in all our mines in phased manner

including high mast lights & mobile

tower lights.

c. We are using LED Bulb, LED Tube Light

and Ceiling Fans under UJALA Scheme

of Ministry of Power, Govt. Of India.

d. 5 Star-rated Air Conditioners,

Refrigerators, Star rated transformers

etc have been procured and are in use

at different mines/camps for energy

conservation

e. OMC has already signed NET-metering

agreement with CESU for setting up of

roof top solar plant at H.O.

f. As per IBM norm we have installed

solar power plants 625 KW solar power

plants at Daitari, Bangur & J.K Road

Region of OMC

g. We are in process of installation of

another 75KW solar power plant at

GDMN & Kurmitar Mines along with

another 200KW solar power plant at

South Kaliapani Mines.

h. We are in process of procurement

of energy effi cient transformers for

Daitari Mines for energy consumption

purpose.

i. As per Govt. Of India directive, we

are displaying posters on getting Air

Conditioning temperature at 24°C.

2. Additional Investments and proposals, if

any being implemented for reduction of

consumption of energy: For the roof top solar

project at Head Offi ce Building, OMC has not

incurred any expenditure as this is a Govt.

Scheme.

FOREIGN EXCHANGE TRANSACTIONS

Foreign Exchange Transactions are shown in the

table below:

RESEARCH & DEVELOPMENT (R&D)

1. Title: “Characterization & Benefi ciation of

Low Grade PGE Ores of Bangur ML of the

OMC Limited” has been carried out by CSIR-

IMMT, Bhubaneswar.

2. Three years of R&D project has been

completed till 2018-19. A feed material of

3.047ppm PGE has been studied and pre-

concentration studies carried out on -150

microns feed material following series of

gravity tables and magnetic separators. The

PGE content of heavy non-magnetic fraction

was 9.71 ppm.

3. Further benefi ciation studies on Fine (-45μm)

feed material was carried out with low

magnetic separator of 2000 gauss to remove

the magnetic materials. The non-magnetic

fraction was subjected to two-stages of

Falcon followed by Knelson concentrator

and fl oatation studies and the PGE values

enriched to 147.839ppm. The Falcon tailing

1 and 2 samples were subjected to fl otation

studies to enrich the PGE values to 83 and

278ppm respectively. Benefi ciation Studies

on Coarse (-45μm) fraction of Feed Material

shows heavy mineral concentrated in layer

1 (bottom) is 2.748 ppm whereas Layer 6

(top) is 0.729 ppm which indicates increased

chromium content increases PGE values.

The information in accordance with the provisions of section 134 (3) (m) of the Companies’ Act, 2013, the

following development and Energy Conservation Activities undertaken by OMC.

APPENDIX 6CONSERVATION OF ENERGY AND RESEARCH & DEVELOPMENT


HOUSING

OMC provides rent free accommodation for the

employees and the members of their families in

mines and at regional offi ces and corporate offi ce

on nominal rents. Where accommodation is not

provided, the employees are paid house rent

allowance, at 20% of basic pay for HO, 10% for

Regional Offi ces and 5% for the fi eld.

OMC also provides house building advances for

its employees to build their own houses at such

locations as suitable to them.

HEALTH

OMC gives full and free medical care to its

employees and the eligible members of their

families. A 36-bedded hospital is functioning in

Chrome Zone. In most of the Mines and at HO,

hospital/dispensaries are functioning equipped

with X-Ray, Pathological Test equipment.

Annual Health check-up for Executives above 40

years is also introduced in order to monitoring the

health standards of executives working in different

fi elds. Non-Executives and workers are covered

under Initial Medical Examination /Periodical

medical examination as prescribed under the

Mines Rules, 1955. Provision of Medical Insurance

of INR 5.00 lakh is provided to the employees and

their dependant family members.

POST-RETIREMENT MEDICAL BENEFIT

The benefi t is available to retired employees and

their spouses who have opted for the benefi t.

1. If both the spouses are alive- INR 6,000.00

and

2. If one of the spouses is alive - INR 3,000.00

per annum. The amount shall be credited

to the joint Bank account of all retired

employees during beginning of each year.

However, the concerned employee shall

submit living certifi cate in each year to OMC

& in case of Death of either of the retired

employee or his/her spouse, the amount will

be limited to INR 3,000.00 per annum.

Further, Medical Insurance of ₹5.00 Lakh is also

extended to the retired employee and spouse.

SAFETY

1. Being basically a mining organization, OMC

attaches greater importance for safety of the

employees. In its mining projects, OMC has

its own Training Centers equipped with the

infrastructure as required under the Mines

Vocational Training Rules. These centers

cater to the needs of basic training, refresher

training, and training for skilled trades and

also for those injured on duty.

2. Suffi cient number of workmen inspectors are

nominated/appointed for mining operations,

mechanical installations and electrical

installations in terms of the statutory

requirement

3. Occupational Health Centers have been

provided in the 05 mines.

4. Doctors have been given specialized training

in occupational health.

5. Periodical medical examinations of

employees are done in accordance with the

prescribed schedule.

6. Safety appliances such as safety shoes,

helmets, rain suits, goggles, etc, are

provided to employees periodically.

7. Every month safety committee meetings

are conducted and accident analysis

is discussed and remedial measures

implemented.

EDUCATION

1. OMC encourages its employees to

better their educational and professional

qualifi cation by giving suitable incentives,

study leave, etc.

2. OMC takes care of the school education

of the employees’ children in its mines and

gives incentives and scholarships for their

higher education. As its mines are located in

remote areas, OMC has arranged for quality

schooling facilities at some of the mines

itself.

3. The schooling facilities available at the

mines are extended to the children of the

surrounding villages as well.

4. Cash award of amount INR 4,000/- is

being given to each best student among

the children of OMC employees who

secures highest marks in the annual H.S.C.

Examination and CBSE every year on the

OMC Day falling on 16th May every year.

SCHOLARSHIP SCHEME

In order to encourage the children of the

employees, OMC has introduced a scholarship

scheme. Scholarships are being sanctioned to

the meritorious students for higher studies after

Matriculation. The rates of Scholarships are

indicated below.

GENERAL DESCRIPTION OF VARIOUS DEFINED BENEFIT SCHEMES ARE AS UNDER:

Description of Scholarship Per Month (in ₹)

At Intermediate level 11th& 12th Std.300

400

Students securing above 90% marks in 10th class Exam, 500

At Graduate level for ordinary courses i.e. B.A., B. Com., B.Sc., LLB & other

courses where Bachelor’s degree is awarded500

At Diploma level in professional courses in Engineering/Pharmacology 500

At Post-graduate level i.e. M.A., M. Com., M. Sc., LLM etc. 600

At Graduate/PG in Medicine/Pharmacology/ Dentistry/ Engineering/

Architecture/Management Studies/Agriculture /Veterinary Science.900

Special Scholarship for exceptionally brilliant/talented students for

technical/professional studies, where admission is through National level

competitions.

1,500

2,000

Rates of Scholarships

APPENDIX 7EMPLOYEE WELFARE ACTIVITIES


LIVERIES:

Liveries are being provided to all employees

including executives. Two pairs of dresses are

also being provided to the PR Miners and DRMP

workers.

Liveries washing allowance is also being paid to

the eligible executives and non-executives and

PR Miners. INR 300/-per month and INR 130/- per

month respectively.

RECREATION & CULTURAL PROGRAMME

In order to conduct various cultural programmes,

Community centers in Head Offi ce and each

Mines/Camps are being maintained.

OMC is sanctioning a substantial amount for

different recreation and cultural activities of its

employees. Regular fi lm shows, opera shows and

drama are being conducted by the employees.

Besides, recreation clubs with TV and Dish

Antenna facilities are being provided in each mine.

PRESENTATION TO RETIRED EMPLOYEES

The employees at the time of their retirement

are being presented with presentation worth INR

20,000 (Rupees Twenty Thousand).

EX-GRATIA FOR FUNERAL RITES

In case of death of an employee in service, a sum

of INR 40,000.00 is being sanctioned towards ex-

gratia for funeral rites.

PROVIDENT FUND:

The company pays fi xed contribution to Provident

Fund at predetermined rates, to a separate trust,

which invests the funds in permitted securities.

On contributions, the trust is required to pay a

minimum rate of interest, to the members, as

specifi ed by Govt. of India. Where the trust is

unable to pay interest at the declared rate for the

reasons that the return on investment is less or

for any other reason, then the defi ciency shall be

made good by the company.

PENSION FUND

The Company pays fi xed contribution to the

Regional Provident Commissioner towards

pension. The company’s liability is limited only to

the extent of fi xed contribution.

Provision of one time fi nancial benefi t to the

tune of 06 (six) months salary towards pension

at the time of retirement of employees on

superannuation.

GRATUITY

Gratuity payable to employees as per The

Payment of Gratuity Act and Gratuity Fund Trust

Rules of OMC. The gratuity scheme is funded by

the company and is managed by a separate trust.

SETTLING-IN-BENEFIT

On superannuation/ retirement/termination, the

employees who have opted for the benefi t and/or

family shall be entitled to get travelling allowance

as fi xed by the company (as per TA rule) from the

last headquarters to the home town or any other

Place of settlement.

LONG SERVICE REWARD

The employee who completes 15 years of service

in OMC are entitled for a long service reward and

honored with presentation of a wrist watch.

LEAVE ENCASHMENT

The accumulated earned leave, half pay leave &

sick leave is payable on separation, subject to

maximum permissible limit as prescribed in the

leave rules of the company. During the service

period encashment of accumulated leave of 300

days is also allowed as per company’s rule.

GROUP INSURANCE SCHEME

OMC has adopted the Group Insurance Scheme of

LIC for all the employees with a uniform assurance

benefi t of INR 6.02 lakh in case of premature death

while in service.

GROUP HEALTH INSURANCE POLICY

A customized Group Health Insurance Policy has

been developed as Proposed by P.E. Dept. Govt.

of Odisha coverage upto 80 years up to 5 lakhs,

coverage of all existing diseases from day one.

A total 2082 employees (Regular & Retired have

already covered under the policy).

CONVEYANCE ALLOWANCE

HARDSHIP ALLOWANCES

Normal Mines - 10% of Basic Pay (REVISED)

Without ceiling

Diffi cult Mines – 12.5% of Basic Pay (REVISED)

Without ceiling

Most Diffi cult Mines -15% of Basic Pay (REVISED)

Without ceiling

REIMBURSEMENT OF MOBILE EXPENSES

CANTEEN

Canteens are functioning in no profi t-no loss basis

in all Mines, Regional Offi cers including HO. OMC

has provided building, utensils, staff etc. to the

canteens free of cost.

REHABILITATION SCHEME

The Rehabilitation scheme of Government has

been adopted to provide employment to the legal

heir of the regular deceased employees.

BONUS SCHEME

Bonus is paid as per Payment of Bonus Act, 1965.

However, since last twenty years 20% bonus is

being paid the employees.

PRODUCTIVITY LINKED INCENTIVE SCHEME

The employees who are not eligible for bonus

are being paid incentive which is equivalent to

one month’s gross salary subject to a maximum

of INR16,800.00. This is linked to corporate

productivity and Effi ciency Index.

GIFT

INR 30,000/- as gift is being paid to all the

employees on corporation roll for the fi nancial year

2017-18.

Type of

Conveyance

Price of Quantity of

Fuel per Month

Car Cost of 45 Liters of

Petrol

Motor Cycle/Scooter Cost of 25 Liters of

Petrol

Moped Cost of 15 Liters of

Petrol

Cycle ₹ 500.00 per month

Category of EmployeePer Month

(in ₹)

Functional Directors, EDs & CGMs 1,200

GMs, Sectional Heads & Regional

Managers / Unit Heads1,000

AGMs & DGMs 800

Sr. Managers & Managers 600

Executives in E-1 & E-2 Grade 400

Non-executives (Special

categories / essential services)400


AWARDS & ACHIEVEMENT

OMC has been recognizing the Best Mines and

the Best Prospecting Division by awarding Cash

Prizes and Memento including the Best Employee

Awards amongst the employees of OMC on

the OMC Foundation Day every year. Basing on

the decision taken by OMC management, one

person prominence in the fi eld of Social Activities,

contributions in the fi eld of Technical/Educational/

Sports & Games etc. are being felicitated on the

OMC Foundation Day.

HOLIDAY HOME FACILITY

Holiday Home facility for both Executives

and Non-Executives are provided at Puri. For

Executives one AC family room has beenReserved

at the Hotel Hans Coco palm, and two Rooms at

Gundichha Bhakta Niwas, Puri.

VRS

The Voluntary Retirement Scheme is being

implemented exclusively for the workers with

approval of Board of Directors and Government.

The benefi ts under the scheme is 60 days wages

for each completed year of service plus additional

benefi ts @ 20% to 50% applicable as per the

norms of remaining period of service and other

terminal dues like gratuity, leave wages etc.

A Voluntary Retirement Scheme (Golden

Handshake) has also been introduced for regular

employees of the Corporation in 1993 as per the

provision under the scheme; the benefi ciary gets

one and half month’s salary for each completed

year of service or salary for the remaining period of

service whichever is less as ex-gratia.

PROVISION OF BUS SERVICE- IN JK ROAD,

GANDHAMARDAN, KOIRA, DAITARI, BARBIL

Buses are engaged through hire vehicle agency for

providing conveyance facilities to the employees

and their family members for marketing purpose

to nearby market for twice a week preferably

Wednesday and Friday.

TRADE UNION AND INDUSTRIAL RELATIONS.

Different Trade unions are actively functioning

in different units of OMC. Bipartite forums

like Works Committee, Welfare Committee,

Canteen Managing Committee and Safety

Committee on Safety, Health and Environment

with representation from major central trade

unions as well as representative Unions of Mines/

Units meet on a periodic basis and jointly evolve

recommendations/ action plans for ensuring

a safe & harmonious work culture which gets

substantiated from the harmonious Industrial

Relations enjoyed over the years by OMC Mines/

Units, marked with diverse work culture at multi-

locations. So far, there is no mandays lost due

to strikes and lock-outs. The list of Trade Unions

functioning is enclosed herewith.

ADVANCES

OMC is extending different types of advance with

nominal rates of interest as indicated below.

Type of Advance Amount (in ₹) Rate of Interest

House Building

Up to 7.5 lakhs

Addl. up to 1.6 lakhs

Up to ₹ 50, 000/-(7.5%)

Up to ₹ 1.5 Lakh (9.0%)

Up to ₹ 5 lakh-(11%, )

Up to ₹ 7.5 lakhs (12%)

Car Advance15 months of Basic pay or 4 lakhs or the anticipated

cost of the car which ever is less12.5%

Motor Cycle/Scooter 50,000 11.5%

Moped 25,000 11.5%

Marriage 6 months salary or 1 lakh which ever is less. 8%

Medical Advance As per Estimate Interest Free

Festival 15,000 (up to GP 4200) Interest Free

TV Advance 15,000 8%

Special Advance One month salary Interest Free

Misc. Advance One & half month’s basic pay Interest Free

Computer Advance 30,000 8%


APPENDIX 8COMMENTS OF THE COMPTROLLER & AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(B) OF THE COMPANIES ACT, 2013 ON STANDALONE ACCOUNTS


APPENDIX 9COMMENTS OF THE COMPTROLLER & AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(B) OF THE COMPANIES ACT, 2013 ON CONSOLIDATED ACCOUNTS


STANDALONE FINANCIALSINDEPENDENT AUDITOR’S REPORT

TO THE GOVERNOR OF ODISHA / MEMBERS OF THE ODISHA MINING CORPORATION LIMITED.

REPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS

OPINION

We have audited the accompanying standalone

fi nancial statements of The Odisha Mining

Corporation Limited (“the Company”), which

comprise the Balance Sheet as at March 31, 2019,

and the Statement of Profi t and Loss (including

Other Comprehensive Income), the Statement

of Changes in Equity and the Statement of Cash

Flows for the year then ended and Notes to the

fi nancial statements, including a summary of

the signifi cant accounting policies and other

explanatory information.

In our opinion and to the best of our information

and according to the explanations given to us, the

aforesaid standalone fi nancial statements give the

information required by the Companies Act, 2013

in the manner so required and give a true and fair

view in conformity with the accounting principles

generally accepted in India, of the state of affairs

of the Company as at March 31, 2019, and its

profi t/loss, changes in equity and its cash fl ows for

the year ended on that date.

BASIS FOR OPINION

We conducted our audit in accordance with the

Standards on Auditing (SAs) specifi ed under

section 143(10) of the Companies Act, 2013. Our

responsibilities under those Standards are further

described in the Auditor’s Responsibilities for the

Audit of the Financial Statements section of our

report. We are independent of the Company in

accordance with the Code of Ethics issued by

the Institute of Chartered Accountants of India

together with the ethical requirements that are

relevant to our audit of the fi nancial statements

under the provisions of the Companies Act, 2013

and the Rules thereunder, and we have fulfi lled our

other ethical responsibilities in accordance with

these requirements and the Code of Ethics. We

believe that the audit evidence we have obtained

is suffi cient and appropriate to provide a basis for

our opinion.

INFORMATION OTHER THAN THE

STANDALONE FINANCIAL STATEMENTS AND

AUDITOR’S REPORT THEREON

The Company’s Board of Directors is responsible

for the preparation of the other information. The

other information comprises the information

included in the Management Discussion and

Analysis, Board’s Report including Annexures

to Board’s Report, Business Responsibility

Report, Corporate Governance and Shareholder’s

Information, but does not include the standalone

fi nancial statements and our auditor’s report

thereon.

Our opinion on the standalone fi nancial statements

does not cover the other information and we do

not express any form of assurance conclusion

thereon.

In connection with our audit of the standalone

fi nancial statements, our responsibility is to read

the other information and, in doing so, consider

whether the other information is materially

inconsistent with the standalone fi nancial

statements or our knowledge obtained during the

course of our audit or otherwise appears to be

materially misstated.

If, based on the work we have performed, we

conclude that there is a material misstatement of

this other information; we are required to report

that fact. We have nothing to report in this regard.

RESPONSIBILITIES OF MANAGEMENT AND

THOSE CHARGED WITH GOVERNANCE FOR

THE STANDALONE FINANCIAL STATEMENTS

The Company’s Board of Directors are responsible

for the matters stated in Section 134(5) of the

Companies Act, 2013 (“the Act”) with respect

to the preparation of these standalone fi nancial

statements that give a true and fair view of the

fi nancial position, fi nancial performance including

other comprehensive income, cash fl ows and

changes in equity of the Company in accordance

with the Indian Accounting Standards (Ind AS)

prescribed under section 133 of the Act read with

the Companies (Indian Accounting Standards)

Rules, 2015, as amended, and other accounting

principles generally accepted in India.

This responsibility also includes maintenance

of adequate accounting records in accordance

with the provisions of the Act for safeguarding

the assets of the Company and for preventing

and detecting frauds and other irregularities;

selection and application of appropriate

accounting policies; making judgments and

estimates that are reasonable and prudent; and

design, implementation and maintenance of

adequate internal fi nancial controls, that were

operating effectively for ensuring the accuracy

and completeness of the accounting records,

relevant to the preparation and presentation of

the standalone fi nancial statements that give

a true and fair view and are free from material

misstatement, whether due to fraud or error.

In preparing the fi nancial statements, the Board

of Directors is responsible for assessing the

Company’s ability to continue as a going concern,

disclosing, as applicable, matters related to going

concern and using the going concern basis of

accounting unless the Board of Directors either

intends to liquidate the Company or to cease

operations, or has no realistic alternative but to

do so.

Those Board of Directors are also responsible

for overseeing the company’s fi nancial reporting

process .

AUDITOR’S RESPONSIBILITIES FOR THE

AUDIT OF THE STANDALONE FINANCIAL

STATEMENTS

Our objectives are to obtain reasonable assurance

about whether the fi nancial statements as a whole

are free from material misstatement, whether due

to fraud or error, and to issue an auditor’s report

that includes our opinion. Reasonable assurance

is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with SAs

will always detect a material misstatement when it

exists. Misstatements can arise from fraud or error

and are considered material if, individually or in the

aggregate, they could reasonably be expected to

infl uence the economic decisions of users taken

on the basis of these fi nancial statements.

As part of an audit in accordance with SAs, we

exercise professional judgment and maintain

professional skepticism throughout the audit.

We also:

1. Identify and assess the risks of material

misstatement of the fi nancial statements,

whether due to fraud or error, design and

perform audit procedures responsive to

those risks, and obtain audit evidence that is

suffi cient and appropriate to provide a basis

for our opinion. The risk of not detecting a

material misstatement resulting from fraud

is higher than for one resulting from error,

as fraud may involve collusion, forgery,

intentional omissions, misrepresentations, or

the override of internal control.

2. Obtain an understanding of internal control

relevant to the audit in order to design

audit procedures that are appropriate in

the circumstances. Under section 143(3)

(i) of the Companies Act, 2013, we are also

responsible for expressing our opinion on

whether the company has adequate internal

fi nancial controls system in place and the

operating effectiveness of such controls.

3. Evaluate the appropriateness of accounting

policies used and the reasonableness of

accounting estimates and related disclosures

made by management.

4. Conclude on the appropriateness of

management’s use of the going concern

basis of accounting and, based on the

audit evidence obtained, whether a material

uncertainty exists related to events or

conditions that may cast signifi cant doubt

on the Company’s ability to continue as a

going concern. If we conclude that a material

uncertainty exists, we are required to draw

attention in our auditor’s report to the related

disclosures in the fi nancial statements or, if

such disclosures are inadequate, to modify

our opinion. Our conclusions are based on

the audit evidence obtained up to the date of

our auditor’s report. However, future events

or conditions may cause the Company to

cease to continue as a going concern.

ANNUAL REPORT | 2018-19 | ODISHA MINING CORPORATION 91

5. Evaluate the overall presentation, structure

and content of the fi nancial statements,

including the disclosures, and whether

the fi nancial statements represent the

underlying transactions and events in a

manner that achieves fair presentation.

We communicate with those charged with

governance regarding, among other matters,

the planned scope and timing of the audit

and signifi cant audit fi ndings, including any

signifi cant defi ciencies in internal control

that we identify during our audit. We also

provide those charged with governance

with a statement that we have complied

with relevant ethical requirements regarding

independence, and to communicate with

them all relationships and other matters that

may reasonably be thought to bear on our

independence, and where applicable, related

safeguards.

REPORT ON OTHER LEGAL AND REGULATORY

REQUIREMENTS

1. As required by the Companies (Auditor’s

Report) Order, 2016 (“the Order”) issued by

the Central Government of India in terms

of section 143(11) of the Act, we give in the

Annexure “A” to this report, a statement on

the matters specifi ed in paragraphs 3 and 4

of the Order.

2. In compliance to directions of the

Comptroller and Auditor General of India

u/s. 143(5) of the Act, we give in Annexure

“B” to this report a statement on the matters

specifi ed therein.

3. As required by Section 143(3) of the Act,

based on our audit we report that:

a. We have sought and obtained all the

information and explanations which to

the best of our knowledge and belief

were necessary for the purposes of

our audit.

b. In our opinion, proper books of account

as required by law have been kept by

the Company so far as it appears from

our examination of those books.

c. The Balance Sheet, the Statement

of Profi t and Loss including Other

Comprehensive Income, Statement of

Changes in Equity and the Statement

of Cash Flow dealt with by this Report

are in agreement with the books of

account.

d. In our opinion, the aforesaid standalone

fi nancial statements comply with

the Indian Accounting Standards

prescribed under section 133 of the

Act read with Rule 7 of the Companies

(Accounts) Rules 2014.

e. Section 164(2) of the Act regarding

disqualifi cation of directors is not

applicable to the Company by virtue

of Notifi cation No. G.S.R. 463(E) dated

05.06.2015 issued by the Ministry of

Corporate Affairs, Govt. of India.

f. With respect to the adequacy of

the internal fi nancial controls over

fi nancial reporting of the Company and

the operating effectiveness of such

controls, refer to our separate Report in

Annexure “C”.

g. With respect to the other matters to

be included in the Auditor’s Report

in accordance with Rule 11 of the

Companies (Audit and Auditors) Rules,

2014, as amended, in our opinion and

to the best of our information and

according to the explanations given

to us:

i. The Company has disclosed

the impact of pending litigations

on its fi nancial position in its

standalone fi nancial statements.

ii. The Company has made

provision, as required under the

applicable law or accounting

standards, for material

foreseeable losses, if any, on

long-term contracts including

derivative contracts.

iii. There have been no amounts

which were required to be

transferred to the Investor

Education and Protection Fund

by the Company.

PLACE OF SIGNATURE: BHUBANESWAR FOR A B P & ASSOCIATES

DATE: 08, JULY’ 2019 CHARTERED ACCOUNTANTS

FRN NO.315104E

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CA. DEBASIS PARIDA

PARTNER

ICAI M. NO. 062867

ANNUAL REPORT | 2018-19 | ODISHA MINING CORPORATION92

1. In respect of Fixed Assets:

a. The Company has maintained proper

records showing full particulars,

including quantitative details and

situation of fi xed assets.

b. The fi xed assets have been physically

verifi ed by the management in a

phased manner over 3 year period,

pending linking of the same with

Assets Register Maintained in SAP.

c. On the basis of our examination of the

records of the Company and various

information and explanations given

to us, the title deeds of immovable

properties are held in the name of the

Company. The Company has clear

title/lease deeds for freehold and

leasehold land respectively wherever

the title/lease deeds are executed.

The total freehold land held by the

company is under compilation. Out of

18407.62 Hect of lease hold land, lease

deed extended for 5642.74 Hect and

9976.86 Hect are extended but SLD

not yet executed, 2519.05 Hect are

applied for extension and 268.97 Hect

applied for surrender. The company

has been permitted by the concerned

authorities to carry on its operation

on the said lease hold land where the

extension yet to be made.

2. Inventories, except stocks lying with third

parties and stocks-in-transit, have been

physically verifi ed during the year by

separate team constituted for the purpose.

The discrepancies between physical stocks

and book records arising out of physical

verifi cation of ore stock relating to shortage

have been provided in the books of accounts

while excess have been ignored.

3. Company has granted unsecured loan to 1)

GRIDCO 2) NINL and 3) IDCL companies

listed in the register maintained under

Section 189 of the Companies Act, 2013.

During the year, the Company’s board

has approved a re-schedulement of the

Corporate loan granted to NINL with certain

concessions including lower rate of interest.

After re-schedulement of instalment of

payment of Corporate loan to NINL, there is

no over-dues of outstanding loan.The terms

and conditions of the grant of such loans,

the rate of interest on such loans are not

prejudicial to the company’s interest.

4. Section 185 of the Act regarding loans to

directors is not applicable to the Company

by virtue of Notifi cation No. G.S.R. 463(E)

dated 05.06.2015 issued by the Ministry

of corporate Affairs, Govt. of India. In our

opinion and according to the information

and explanations given to us, the Company

has complied with the provisions of section

186 of the Act with respect to the loans and

investments made.

5. The Company has not accepted any

deposits from the public. However, out of

the total advances received against sale by

the company amounting to Rs.197.91 Crore,

the advances amounting to Rs.13.13 Crore

are pending for more than 365 day from the

date of advance and is to be considered

as Deemed Deposits under the Companies

Act’2013

6. The Central Government has prescribed for

maintenance of cost records under Section

148(1) of the Companies Act, 2013. On

the basis of limited review of the books of

accounts maintained by the company, we are

of the opinion that prima facie the relevant

records are maintained. However, we have

not carried out a detailed examination of the

same to determine whether they are accurate

or complete.

7. On the basis of our examination of the

records of the Company and various

information and explanations given to us, in

our opinion, the Company is generally regular

in depositing undisputed statutory dues

including provident fund, employees’ state

insurance, income tax, sales tax, service

tax, duty of customs, duty of excise, value

added tax, cess, electricity duty and other

material statutory dues with the appropriate

authorities and there are no undisputed

statutory dues as at 31st March, 2019

outstanding for a period of more than six

months from the date they became payable.

However, on the basis of our examination

of the records of the Company and various

information and explanations given to us

the following statutory dues have not been

deposited by the Company on account of

disputes:

8. The Company has not taken any loans or

borrowings from fi nancial institutions, banks

and government or has not issued any

debentures. Hence reporting under clause

3 (viii) of the Order is not applicable to the

Company.

9. The Company did not raise any money by

way of initial public offer or further public

offer (including debt instruments) and term

loans during the year.

ANNEXURE A: THE INDEPENDENT AUDITORS’ REPORT ON STANDALONE FINANCIAL STATEMENTS OF

THE ODISHA MINING CORPORATION LIMITED(Referred to in paragraph 1 under the heading of “Report on Other Legal and Regulatory Requirements” of our Report of even date)

Name of the

Statute

Name of the Forum Where Dispute

is Pending

Total Amount

Demanded (₹ in Lakhs)

Total Amount Paid

(₹ in Lakhs)

Central Excise

and Customs

Odisha High Court 276.17 96.00

CESTAT, Kolkata 70772.68 1800.75

Service TaxCESTAT, Kolkata 25.24 0.68

Commissioner (Appeals), CECST 2.03 -

Orissa Sales

TaxOrissa Sales Tax Tribunal 29.96 20.00

Central Sales

Tax

Orissa Sales Tax Tribunal 362.69 85.56

Addl. Commissioner of Commercial tax 11.92 8.22

Dy. Commissioner of Commercial tax 25.97 4.32

Entry Tax

Orissa Sales Tax Tribunal 187.77 54.76

Addl. Commissioner of Commercial tax 69.50 8.81

Dy. Commissioner of commercial tax 13.48 -

Odisha VATOrissa Sales Tax Tribunal 5.77 0.65

State Dispute Redressal Committee 170.61 -

Income TaxCommissioner of Income Tax (Appeals) 27032.18 14288.46

ITAT 27068.42 15728.65

STATUTORY DUES NOT DEPOSITED BY THE COMPANY ON ACCOUNT OF DISPUTES


10. According to the information and

explanations given to us, no fraud by the

Company or any material fraud on the

Company by its offi cers or employees has

been noticed or reported during the year.

11. Section 197 of the Act regarding managerial

remuneration is not applicable to the

Company vide Notifi cation No. G .S. R 463(E)

dated 05.06.2015

12. In our opinion and according to the

information and explanations given to us, the

Company is not a Nidhi company.


explanations given to us and based on our

examination of the records of the Company,

transactions with the related parties are in

compliance with sections 177 and 188 of

the Companies Act, 2013 where applicable

and details of such transactions have

been disclosed in the fi nancial statements

as required by the applicable accounting

standards.




the Company has not made any preferential

allotment or private placement of shares or

fully or partly convertible debentures during

the year.




the Company has not entered into non-cash

transactions with directors or persons

connected with him.

16. The Company is not required to be registered

under section 45-IA of the Reserve Bank of

India Act 1934.



FRN NO.315104E

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CA. DEBASIS PARIDA

PARTNER

ICAI M. NO. 062867


ANNEXURE B: ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE

STANDALONE FINANCIAL STATEMENTS OF THE ODISHA MINING CORPORATION LIMITED(Referred to in paragraph 2 under the heading of “Report on Other Legal and Regulatory Requirements” of our Report of even date)

Report on the directions under section 143(5) of the Companies Act’2013 by C&AG

Directions Observation

Whether the company has clear title/lease deeds for freehold and

leasehold respectively? If not please state the area of freehold

and leasehold land for which title/lease deeds are not available?

The Company has clear title/lease deeds for freehold and leasehold land respectively wherever

the title/lease deeds are executed. The total freehold land held by the company is under

compilation. Out of 18407.62 Hect of lease hold land, lease deed extended for 5642.74

Hect and 9976.86 Hect are extended but SLD not yet executed, 2519.05 Hect are applied for

extension and 268.97 Hect applied for surrender. The company has been permitted by the

concerned authorities to carry on its operation on the said lease hold land where the extension

yet to be made.

Whether there are any cases of waiver/write off of debts/loans/

interest etc., if yes, the reasons there for and amount involved.

As informed by the management and based on records examined, there are 2 No.of ledgers

written off during the year amounting to ₹9.29 lakh and 2 No.of ledgers written back during the

year amounting to ₹7929.44 lakh.

Whether proper records are maintained for inventories lying

with third parties and assets received as gift/grants from the

Government or other authorities.

Proper records are maintained for inventories lying with third parties.

The Company has not received any asset as gift/grant(s) from Government or other authorities

during the year.

REPORT ON THE SUB-DIRECTIONS UNDER SECTION 143(5) OF THE COMPANIES ACT 2013 BY C&AG

Sub-Direction Our Observation

Whether the Company’s pricing policy absorbs all fi xed and variable cost of

production as well as the allocation of overheads?Yes

Whether the Company has utilized the Government assistance for technology

up gradation/modernisation of its manufacturing process and timely submitted

the utilization certifi cates.

Not Applicable

Where the Company has fi xed norms for normal losses and a system for

evaluation of abnormal losses for the remedial action is in existence. Not Applicable

What is the system of valuation of by – products and fi nished products? List

out cases of deviation from its declared policy.No such by-products

Whether the effect of deteriorated stores and spares of closed mills been

properly accounted for in the books.Not Applicable

Whether the Company has effective system for physical verifi cation, valuation

of stock. Treatment of non-moving items and accounting the effects of

shortage / excess noticed during the physical verifi cation.

Refer Note 2.14 “Policies on inventories”, Note 9 and Note 10 to the fi nancial

statements. No such deviations noticed.

State the extent of utilization of plant and machinery during the year vis-a-vis

installed capacity.

Most of the plant and machineries utilized for mining is provided by excavation

contractors. In case of benefi ciation plants the same is closed during the year for

mining and environmental clearance.

Report on the cases of discounts / commission in regard to debtors and

creditors where the company has deviated from its laid down policy.No such instances noticed.

Whether the company has taken adequate measure to reduce the adverse

effect on environment as per established norms and taken up adequate

measures for the relief and rehabilitation of displaced people.

Yes

On the basis of our examination of books and records and according to the information and explanations given to us by the management of the Company, we report that:




FRN NO.315104E

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CA. DEBASIS PARIDA

PARTNER

ICAI M. NO. 062867


Whether the company has obtained the requisite statutory compliances that

was required under mining and environmental rules and regulations?

Yes, Mining: Requisite approval in respect of MP/SOM documents has been

obtained from IBM.Environment: Requisite clearances have been obtained from

MOEF & CC Gol and SPCO, Odisha prior to the commencement of production.

Whether overburden removal from mines and backfi lling of mines are

commensurate with the mining activity?Mining activities are conducted as per approvals of MP/SOM obtained from IBM.

Whether the company has disbanded and discontinued mines, if so, the

payment of corresponding dead rent there against may be verifi ed.

Dead Rent as applicable are being paid from time to time in respect of leases where

mining is discontinued.

Whether the company’s fi nancial statements had properly accounted for the

effect of Rehabilitation Activity and Mine Closure plan?Yes


ANNEXURE C: ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE

STANDALONE FINANCIAL STATEMENTS OF ODISHA MINNIG CORPORATION LIMITEDReport on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal fi nancial controls

over fi nancial reporting of THE ODISHA MINING

CORPORATION LIMITED (“the Company”) as of

March 31, 2019 in conjunction with our audit of the

standalone fi nancial statements of the Company

for the year ended on that date.

MANAGEMENT’S RESPONSIBILITY FOR

INTERNAL FINANCIAL CONTROLS

The Board of Directors of the Company is

responsible for establishing and maintaining

internal fi nancial controls based on the internal

control over fi nancial reporting criteria established

by the Company considering the essential

components of internal control stated in the

Guidance Note on Audit of Internal Financial

Controls over Financial Reporting issued by the

Institute of Chartered Accountants of India. These

responsibilities include the design, implementation

and maintenance of adequate internal fi nancial

controls that were operating effectively for ensuring

the orderly and effi cient conduct of its business

including adherence to the companies policies,

the safeguarding of its assets, the prevention and

detection of frauds and errors, the accuracy and

completeness of the accounting records, and the

timely preparation of reliable fi nancial information,

as required under the Companies Act, 2013.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on the

internal fi nancial controls over fi nancial reporting of

the Company based on our audit. We conducted

our audit in accordance with the Guidance Note on

Audit of Internal Financial Controls Over Financial

Reporting (the “Guidance Note”) issued by the

Institute of Chartered Accountants of India and the

Standards on Auditing prescribed under Section

143(10) of the Companies Act, 2013, to the extent

applicable to an audit of internal fi nancial controls.

Those Standards and the Guidance Note require

that we comply with ethical requirements and

plan and perform the audit to obtain reasonable

assurance about whether adequate internal

fi nancial controls over fi nancial reporting was

established and maintained and if such controls

operated effectively in all material respects.

Our audit involves performing procedures to

obtain audit evidence about the adequacy of the

internal fi nancial controls system over fi nancial

reporting and their operating effectiveness. Our

audit of internal fi nancial controls over fi nancial

reporting included obtaining an understanding of

internal fi nancial controls over fi nancial reporting,

assessing the risk that a material weakness

exists, and testing and evaluating the design and

operating effectiveness of internal control based

on the assessed risk. The procedures selected

depend on the auditor’s judgment, including the

assessment of the risks of material misstatement

of the fi nancial statements, whether due to fraud

or error.

We believe that the audit evidence we have

obtained, is suffi cient and appropriate to provide

a basis for our audit opinion on the Company’s


reporting.

MEANING OF INTERNAL FINANCIAL

CONTROLS OVER FINANCIAL REPORTING

A company’s internal fi nancial control over

fi nancial reporting is a process designed to provide

reasonable assurance regarding the reliability of

fi nancial reporting and the preparation of fi nancial

statements for external purposes in accordance

with generally accepted accounting principles. A

company’s internal fi nancial control over fi nancial

reporting includes those policies and procedures

that (1) pertain to the maintenance of records that,

in reasonable detail, accurately and fairly refl ect

the transactions and dispositions of the assets of

the company; (2) provide reasonable assurance

that transactions are recorded as necessary to

permit preparation of fi nancial statements in

accordance with generally accepted accounting

principles, and that receipts and expenditures of

the company are being made only in accordance

with authorizations of management and directors

of the company; and (3) provide reasonable

assurance regarding prevention or timely detection

of unauthorized acquisition, use, or disposition of

the company’s assets that could have a material

effect on the fi nancial statements.

LIMITATIONS OF INTERNAL FINANCIAL


Because of the inherent limitations of internal

fi nancial controls over fi nancial reporting,

including the possibility of collusion or improper

management override of controls, material

misstatements due to error or fraud may occur

and not be detected. Also, projections of any

evaluation of the internal fi nancial controls over

fi nancial reporting to future periods are subject

to the risk that the internal fi nancial control over

fi nancial reporting may become inadequate

because of changes in conditions, or that

the degree of compliance with the policies or

procedures may deteriorate.

OPINION

In our opinion, to the best of our information and

according to the explanations given to us, the

Company has, in all material respects, an adequate


reporting and such internal fi nancial controls over

fi nancial reporting were operating effectively as

at March 31, 2019, based on the internal control

over fi nancial reporting criteria established by the

Company considering the essential components

of internal control stated in the Guidance Note on

Audit of Internal Financial Controls Over Financial

Reporting issued by the Institute of Chartered

Accountants of India.



FRN NO.315104E

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CA. DEBASIS PARIDA

PARTNER

ICAI M. NO. 062867


BALANCE SHEET AS AT MARCH 31, 2019

ParticularsNote

No.

Figures as at the end of the current

reporting period March 31, 2019

(₹ in Lakh)

Figures as at the end of the previous


(₹ in Lakh)

ASSETS

1. Non-current Assets

Property, Plant and Equipment 5 16,877.87 14,944.02

Capital work-in-progress 5 4,944.52 4,559.12

Other Intangible assets 5 (i) 39,256.84 39,411.88

Intangible assets under development 5 (ii) 11,751.49 14,009.84

Financial Assets

– Investments 6 41,749.69 41,730.58

– Loans 7 40,221.86 51,282.93

Deferred tax assets (Net) 8 5,380.92 29,893.64

Other non-current assets 9 48,331.07 49,343.98

Total non-current assets - 2,08,514.26 2,45,175.99

2. Current Assets

Inventories 10 55,824.21 49,255.72

Financial Assets

– Trade receivables 11 10,765.64 14,261.26

– Cash and cash equivalents 12 8,004.62 4,754.27

– Bank balances other than Cash and cash equivalents 12 94,377.21 36,576.21

– Loans 7 26,665.84 43,103.63

– Others 13 1,27,001.99 143,561.88

Current Tax Assets (Net) 14 79,731.14 81,198.51

Other current assets 15 35,037.95 13,494.00

Total Current Assets - 4,37,408.60 3,86,205.48

Total Assets (1+ 2) - 6,45,922.86 6,31,381.47


1. Equity

Equity Share capital 16 3,145.48 3,145.48

Other Equity 17 5,60,839.85 543,032.63

Total equity - 5,63,985.33 546,178.11

2. Liabilities

Non-current liabilities

Provisions 18 24,140.19 15,258.29

Deferred tax liabilities (Net) 8 - -

Total non-current liabilities 24,140.19 15,258.29


ParticularsNote

No.

Figures as at the end of the current


(₹ in Lakh)

Figures as at the end of the previous


(₹ in Lakh)

Current liabilities

Financial Liabilities 19 - -

Trade payables

– Total outstanding dues of Micro Enterprises & Small

Enterprises- - -

– Total outstanding dues of creditors other then Micro

Enterprises & Small Enterprises- 19,047.20 31,020.23

Other fi nancial liabilities 20 9,953.17 7,056.91

Other current liabilities 21 27,667.94 30,824.43

Provisions 18 1,129.03 1,043.50

Total Current Liabilities - 57,797.34 69,945.07

TOTAL EQUITY AND LIABILITIES - 6,45,922.86 631,381.47

Notes forming part of the fi nancial statement Note No. 1-33

In terms of our report of even date. For and on behalf of the Board of Directors

For ABP & Associates

Chartered Accountants

FRN:315104E

Sd/- Sd/- Sd/- Sd/- Sd/-

CA Debasis Parida Company Secretary Director Finance Managing Director Chairman

Partner

ICAI Membership No. 062867

Place : Bhubaneswar Place : Bhubaneswar

Date : 08.07.2019 Date : 08.07.2019


STATEMENT OF PROFIT AND LOSS FOR THE PERIOD ENDED MARCH 31, 2019

Particulars Note No.Figures for the year ended March 31,

2019 (₹ in Lakh)

Figures for the year ended March 31,

2018 (₹ in Lakh)

1. Revenue from Operations 22 4,05,204.52 2,85,308.60

2. Other Income 23 43,564.66 31,429.60

3. Total Income (1 + 2) - 4,48,769.18 3,16,738.20

4. Expenses

Changes in inventories of fi nished goods,

Stock-in -Trade and work-in-progress24 (5,834.39) (4,352.12)

Employee benefi ts expense 25 22,762.59 26,706.55

Finance costs 26 551.06 872.85

Depreciation and amortization expense 5 11,024.95 10,825.85

Excise duty - 219.55

Other expenses 27 2,94,305.69 3,68,818.17

Total expenses (4) - 3,22,809.90 4,03,090.85

5. Profi t/(loss) before exceptional items and tax (3-4) - 1,25,959.28 (86,352.65)

6. Exceptional Items - - -

7. Profi t/(loss) before tax (5 - 6) - 1,25,959.28 (86,352.65)

8. Less Tax expense

Current tax - 17,484.69 -

MAT - 10,745.77

Deferred tax (net off MAT Credit Entitlement) - 14,252.08 (43,916.37)

Taxes of earlier years - 4,488.71 3,912.09

Total - 46,971.25 (40,004.28)

9. Profi t/ (Loss) for the period from continuing

operations (7-8)- 78,988.03 (46,348.37)

10. Profi t / (loss) from discontinued operations - - -

11. Tax expense of discontinued operations - - -

12. Profi t / (loss) from discontinued operations (after tax)

(10 - 9)- - -

13. Profi t / (loss) for the period (9+ 12) - 78,988.03 (46,348.37)

14. Other Comprehensive Income - (903.17) 2,667.74

Items that will not be reclassifi ed to profi t or loss

– Remeasurement of defi ned employee benefi t plans - (1,388.30) 2,667.74

Income tax relating to items that will not be reclassifi ed to

profi t or loss - 485.13 -

Items that will be reclassifi ed to profi t or loss - - -

– Income tax relating to items that will

be reclassifi ed to profi t or loss- - -

15. Total Comprehensive Income for the period (XIII+XIV)

(Comprising Profi t/ (Loss) and Other Comprehensive

Income for the period)

- 78,084.86 (43,680.63)


Particulars Note No.Figures for the year ended March 31,

2019 (₹ in Lakh)

Figures for the year ended March 31,

2018 (₹ in Lakh)

16. Earnings per equity share (for continuing operation) -

Basic (₹) - 2,511.16 (1,388.68)

Diluted (₹) - 2,511.16 (1,388.68)

17. Earnings per equity share (for discontinued operation)

Basic (₹) - - -

Diluted (₹) - - -

18. Earnings per equity share (for discontinued and continuing operations)

Basic (₹) - 2,511.16 (1,388.68)

Diluted (₹) - 2,511.16 (1,388.68)





FRN:315104E



Partner



Date : 08.07.2019 Date : 08.07.2019


B. OTHER EQUITY

Reserves and Surplus (₹ in Lakh)

Capital reserve General Reserve Retained earnings

Balance as at April 1, 2017 1,770.68 2,30,802.84 3,54,139.74

Profi t for the year - - (46,348.37)

Other Comprehensive Income - - 2,667.74

Total Comprehensive Income - - (43,680.63)

Dividend (including tax on dividend) - - -

Transfer of profi ts of the year to General Reserve - - -

Balance as at March 31, 2018 1,770.68 2,30,802.84 3,10,459.11

Profi t for the year - - 78,988.03

Other Comprehensive Income - - (903.17)

Total Comprehensive Income - - 78,084.86

Dividends (including tax on Dividends) - - (60,277.64)



STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31ST MARCH 2019

A. EQUITY SHARE CAPITAL

Balance as at April 1, 2017 (₹ in Lakh) Changes in equity share capital during the year (₹ in Lakh) Balance as at March 31, 2018 (₹ in Lakh)

3,145.48 - 3,145.48


3,145.48 - 3,145.48





FRN:315104E



Partner



Date : 08.07.2019 Date : 08.07.2019


ParticularsFor the period ended March 31, 2019

(₹ in Lakh)

For the period ended March 31, 2018

(₹ in Lakh)

Cash fl ows from operating activities

Profi t before taxes Adjustments for 1,25,959.28 (86,352.65)

Finance costs recognised in profi t or loss

Investment income recognised in profi t or loss 551.06 872.85

Gain on disposal of property, plant and equipment (31,731.29) (26,920.30)

Depreciation and amortisation of non-current assets (2.17) (1.27)

Provision for write down of inventories 11,024.95 10,825.85

Provision for Impairment of Investments (196.56) 111.48

Operating profi t before working capital changes

Movements in working capital - -

Increase in trade and other receivables 90,388.46 (1,38,574.23)

(Increase)/decrease in inventories (6,371.93) 7,511.70

(Increase)/decrease in other assets (20,531.04) (13,844.40)

(Decrease)/ Increase in trade and other payables (9,076.77) 7,782.78

Increase/(decrease) in provisions 8,068.70 6,523.52

(Decrease)/increase in Mine Closure Liability - -

(Decrease)/increase in other liabilities (3,156.49) 5,014.47

Cash generated from operations 1,64,926.20 (2,27,050.21)

Taxes Paid (20,991.16) (15,669.86)

Net Cash Flow from/(used in) Operating Activities 1,43,935.05 (2,42,720.07)

Cash fl ows from investing activities

Payments for property, plant and equipment (10,933.30) (17,927.72)

Sale of property, plant and equipment 4.67 32.97

Payments to acquire fi nancial assets (19.10) (1,828.00)

Interest received 27,646.85 31,009.53

Repayment by Employees & Others 73.72 89.17

Repayment by Employees & Others 27,420.67 17,257.02

Payment for Loans to others - -

Payment for Investment in FD (1,24,049.51) 2,09,713.23

Net Cash Flow from/(used in) Investing Activities (79,856.00) 2,38,346.21

Cash fl ows from fi nancing activities

Repayment of borrowings - -

Dividend Received on redeemable pref. Shares of Utkal Allumin 0.00 -

Dividends paid on redeemable cumulative preference shares

Dividends paid to owners of the Company (60,277.64)

Interest paid (551.06) (872.85)

Net Cash Flow from/(used in) Financing Activities (60,828.70) (872.85)

Net Increase/(decrease) in cash or cash equivalents 3,250.35 (5,246.71)

Cash and cash equivalents at the beginning of the year 4,754.27 10,000.98

Cash and cash equivalents at the end of the year 8,004.62 4,754.27

STATEMENT OF CASH FLOW FOR THE PERIOD ENDED MARCH 31, 2019





FRN:315104E



Partner



Date : 08.07.2019 Date : 08.07.2019


GENERAL INFORMATION

The Odisha Mining Corporation Limited (“OMC”

/“the Company”) was incorporated with the

objective of harnessing the mineral wealth of the

State of Odisha through exploration, extraction as

well as value addition. The major minerals mined

by OMC are chrome, iron, bauxite and manganese

ore which cater to the requirement of mineral

based industries such as steel, aluminum sponge

iron, pig iron, Ferro-manganese, Ferro-chrome,

etc. OMC has been growing steadily over these

years and today it stands as the largest State

PSU in the mining sector of the country. OMC has

been classifi ed as a “Gold” Category State PSU”,

has an Authorized Capital of INR 100 crore where

Hon’ble Governor of Odisha holds 99.997% of

share capital. The headquarters of OMC is located

at Bhubaneswar. The functional and presentation

currency of the Company is Indian Rupee (“INR”)

which is the currency of the primary economic

environment in which the Company operates.

The fi nancial statements are approved for issue

by the Company’s Board of Directors on 8th July,

2019.

SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

The fi nancial statements of the Company have

been prepared in accordance with Ind AS and

relevant provisions of the Companies Act, 2013.

The fi nancial statements have been prepared

under the historical cost convention with the

exception of certain assets and liabilities that are

required to be measured at fair values by Ind AS.

Fair value is the price that would be received to

sell an asset or paid to transfer a liability in an

orderly transaction between market participants at

the measurement date.

Historical cost is generally based on the fair value

of the consideration given in exchange for goods

and services.

All assets and liabilities have been classifi ed as

current or non-current as per Company’s operating

cycle and other criteria set out in Schedule-III of

the Companies Act 2013. Based on the nature

of business, the Company has ascertained its

operating cycle as 12 months for the purpose of

Current or noncurrent classifi cation of assets and

liabilities.

ADOPTION OF NEW AND REVISED

STANDARDS

1. The Ministry of Corporate Affairs has

notifi ed The Companies (Indian Accounting

Standard) Amendment Rules, 2019 dated

30.03.2019 which inter-alia includes the new

standard on leases IndAS 116 replacing the

existing standard IndAS 17, to be effective

from 01.04.2019. The impact of the same is

yet to be assessed.

2. IndAS recognizes revenue on transfer of the

control of the goods or services, either over

a period of time or at a point of time, at an

amount that the entity expects to be entitled

in exchange for the goods or services. In

order to align with IndAS 115, the Accounting

policy on revenue recognition was reviewed

and revised.

The said revision has an impact of INR 49.25 Lakh

on the fi nance of the company as the company

was recognizing and accounting revenue in all

other cases in line with the IndAS 115.

USE OF ESTIMATES

These fi nancial statements have been prepared

based on estimates and assumptions in conformity

with the recognition and measurement principles

of Ind AS.

The estimates and the associated assumptions are

based on historical experience and other factors

that are considered to be relevant. Actual results

may differ from these estimates. The estimates

and underlying assumptions are reviewed on an

ongoing basis. Revisions to accounting estimates

are recognized in the period in which the estimate

is revised and future periods affected.

Key sources of estimation uncertainty at the

reporting date, which may cause a material

adjustment to the carrying amounts of assets and

liabilities for future years are provided in Note-3.

Signifi cant judgments and estimates relating to the

carrying amounts of assets and liabilities, while

evaluating/assessing useful lives of property, plant

and equipment, impairment of property, plant and

equipment, impairment of investments, provision

for employee benefi ts and other provisions,

recoverability of deferred tax assets, commitments

and contingencies.

INVESTMENTS IN SUBSIDIARIES, ASSOCIATES

AND JOINT VENTURES

Subsidiary

A subsidiary is an entity that is controlled by

another entity.

Control is achieved when the Company:

1. Has power over the investee;

2. Is exposed, or has rights, to variable returns

from its involvement with the investee; and

3. Has the ability to use its power to affect its

returns.

The Company reassesses whether or not it

controls an investee if facts and circumstances

indicate that there are changes to one or more of

the three elements of control listed above.

ASSOCIATE

An associate is an entity over which the Company

has signifi cant infl uence. Whereas signifi cant

infl uence is the power to participate in the fi nancial

and operating policy decisions of the investee but

is not control or joint control over those policies.

INTERESTS IN JOINT VENTURES

A joint venture is a joint arrangement whereby the

parties that have joint control of the arrangement

have rights to the net assets of the joint

arrangement. Joint control is the contractually

agreed sharing of control of an arrangement, which

exists only when decisions about the relevant

activities require unanimous consent of the

parties sharing control. Investment in subsidiaries,

associates and joint ventures are measured at cost

in accordance with Ind AS 27 – Separate Financial

Statements.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment held for use in the

production or / and supply of goods or services,

or for administrative purposes, are stated in

the balance sheet at cost, less any subsequent

accumulated depreciation and impairment loss,

if any.

INITIAL MEASUREMENT

The initial cost comprises of purchase price,

non-refundable purchase taxes, other directly

expenditure attributable to acquisition, borrowing

cost, if any, incurred for bringing the assets to

its location and condition necessary for it to be

capable of operating in the manner intended by

the management, and the initial estimates of the

present value of any asset restoration obligation

or obligatory decommissioning and dismantling

costs.

Expenditure incurred on development of freehold

land is capitalized as part of the cost of the land.

In case of self-constructed assets, cost includes

the costs of all materials used in construction,

direct labour, allocation of overheads, directly

attributable borrowing costs, if any.

Spare parts having unit value of more than INR

5 lakh that meets the criteria for recognition as

Property, plant and equipment are recognized as

Property, plant and equipment.

NOTES TO ACCOUNTS


SUBSEQUENT EXPENDITURE

Expenditure on major maintenance or repairs

including cost of replacing the parts of assets and

overhaul costs where it is probable that future

economic benefi ts associated with the item will

be available to the Company, are capitalized and

the carrying amount of the item so replaced is

derecognized. Similarly, overhaul costs associated

with major maintenance are capitalized and

depreciated over their useful lives where it is

probable that future economic benefi ts will be

available and any remaining carrying amounts of

the cost of previous overhauls are derecognized.

All other costs are expensed as incurred

Physical verifi cation of Fixed Assets are

undertaken by the management at a reasonable

interval and in a phased manner so as to complete

100% verifi cation in a cycle of three years. The

discrepancies noticed, if any, are accounted for in

the year in which such differences are found.

CAPITAL WORK-IN-PROGRESS

Assets in the course of construction for

production and/or supply of goods or services

or administrative purposes, or for purposes not

yet determined, are included undercapital work

in progress and are carried at cost, less any

recognized impairment loss. Such capital work in

progress is transferred to the appropriate category

of property, plant and equipment when completed

or starts operating as per management’s intended

use whichever is earlier.

Expenses for assessment of new potential

projects incurred till and for the purpose of making

investment decision are charged to revenue.

Expenditure incurred for projects after investment

decisions are accounted for under capital work in

progress and capitalized subsequently.

In respect of construction of labour tenements in

mines, difference between the expenses incurred

and subsidy from Government / other agencies is

charged / credited to revenue account during the

year. The supervision charges incurred thereon not

being material is included in Other Expenses.

DEPRECIATION

Depreciation on assets are provided for from the

dates, the assets are available for their intended

use and are spread over their estimated useful

economic lives or, in the case of leased assets

(including leasehold improvements), over the lease

period if shorter. The lease period is considered

by excluding any lease renewals options, unless

the renewals are reasonably certain. Depreciation

on assets are provided on a written down value

basis over the useful life of the asset in the manner

prescribed under Schedule II of the Companies

Act, 2013. The estimated useful lives and residual

values are reviewed at each year end, and

changes in estimates if any, are accounted for on a

prospective basis.

Each component of an item of property, plant

and equipment with a cost that is signifi cant in

relation to the total cost of that item is depreciated

separately if its useful life differs from the main

asset.

Property, plant and equipment which are subject

to componentization, comprises of main assets,

componentized assets and remainders, if any. The

Company has chosen a benchmark of INR 1 crore

or above for the purposes of componentization.

Depreciation is provided in the accounts on written

down value method based on useful life basis

and in the manner prescribed in Schedule II of the


Property, plant and equipment acquired below INR 5000 are to be charged off to depreciation during

the same year.

DISPOSAL OF ASSETS

An item of property, plant and equipment is

derecognized upon disposal or when no future

economic benefi ts are expected to arise from

the continued use of the asset. Any gain or loss

arising on the disposal or retirement of an item of

property, plant and equipment is determined as

the difference between the sales proceeds and the

carrying amount of the asset and is recognized in

statement of profi t and loss.

DEEMED COST ON TRANSITION TO IND AS

For transition to Ind AS, the Company has elected

to continue with the carrying value of all its

property, plant and equipment recognized as of 1st

April, 2015 (transition date) measured as per the

previous GAAP and use that carrying value as its

deemed cost as of the transition date.

INVESTMENT PROPERTY

Investment properties held to earn rentals or

for capital appreciation or both are stated in


accumulated depreciation and subsequent

accumulated impairment losses. Any gain or loss

on disposal of investment property is determined

as the difference between net disposal proceeds

and the carrying amount of the property and is

recognized in the statement of profi t and loss.

Transfer to, or from, investment property is

recognized at the carrying amount of the property.

INTANGIBLE ASSETS (OTHER THAN

GOODWILL)

Intangible Assets Acquired Separately

Intangible assets acquired are reported at cost

less accumulated amortization and accumulated

impairment losses. Intangible assets having fi nite

useful lives are amortized over their estimated

useful lives, whereas intangible assets having

indefi nite useful lives are not amortized. The

estimated useful life and amortization method

are reviewed at the end of each annual reporting

period, with the effect of any changes in estimate

being accounted for on a prospective basis.

INTERNALLY GENERATED INTANGIBLE

ASSETS – RESEARCH AND DEVELOPMENT

EXPENDITURE

Expenditure on research activities is recognized as

an expense in the period in which it is incurred.

An internally generated intangible asset arising

from development (or from the development

phase of an internal project) is recognized if, and

only if all the conditions stipulated in Ind AS 38 –

Intangible Assets is met.

The amount initially recognized for internally

generated intangible assets is the sum of the

expenditure incurred from the date when the

intangible asset is recognized. Where no internally

generated intangible asset can be recognized,

development expenditure is recognized in the

statement of profi t and loss in the period in which

it is incurred.

Subsequent to initial recognition, internally

generated intangible assets are reported at cost


impairment losses, on the same basis as intangible

assets acquired separately.

MINING RIGHTS

The amount incurred to acquire mining rights

which includes NPV, stamp duty, registration fees,

afforestation, compensatory afforestation, wild life

management plan, land premium, land alienation

charges, etc. are capitalized as “Mining Rights” in

the year in which they are incurred.

Capitalized mining rights are amortized over

the period of mining lease and are subject to

impairment review.

The amount paid on renewal of Mining Leases

which is livable on the date of execution of renewal

deed is apportioned equally on the balance of the

lease period from the date of execution.

MINES CLOSURE LIABILITY

The holder of mining lease has the responsibility

to ensure that the protective measure including

reclamation and rehabilitation works have been

carried out in accordance with approved mine

closure plan. Accordingly the Corporation has

created a provision to meet the expenses on

account of Progressive Mines Closure Plan and

Final Mines Closure Plan. The provision included

in the Progressive Mines Closure Plan mandates

a proper estimate at this stage for a Final Mines

Closure Expenses. Due to diffi culty/uncertainty

in making a proper estimation of expenses to

be incurred at the time of closure of mines, the

Corporation has considered INR 3.00 Lakh/Ha as

mine closure liability being the amount of fi nancial

assurance provided to IBM in the form of Bank

Guarantee (BG). The liability has been adjusted

with infl ation and discounting factors.


EXPLORATION EXPENSES

Expenditures associated with search for specifi c

mineral resources are recognized as exploration

and evaluation assets. The following expenditure

comprises cost of exploration and evaluation

assets:

1. Costs incurred directly for obtaining the

rights to explore and evaluate mineral

reserves and resources.

2. Researching & analyzing existing exploration

data

3. Conducting geological studies, topographical

and geophysical studies

4. Examining and testing extraction and

treatment methods

5. Compiling pre-feasibility and feasibility

studies activities in relation to evaluating the

technical feasibility and commercial viability

of extracting a mineral resource.

6. Activities in relation to evaluating the

technical feasibility and commercial

viability of extracting mineral resource.

The exploration assets will undergo future

carrying value test at every reporting period.

If it is established that the expenditure are

incurred for

a. Non-mineral areas to be expensed out,

b. Mines/different pocket in the ML area

wherever the commercial operation has

not been started within a period of 5

years from the end of the year in which

expenditures have been treated as

assets, the amount of such asset shall

be derecognized at the end of 5 years

or expiry of the lease period which ever

is earlier.

c. In other cases the asset will be carried

in the Balance Sheet as intangible

asset under development and upon

operation, the asset shall be amortised

over a period of 5 years or life of the

mines whichever is earlier.

SOFTWARE

Operating software acquired separately (RDBMS,

ERP / SAP etc.) are capitalized as intangible

asset (Software) where they are clearly linked to

long term economic benefi ts for the Company.

They are measured initially at purchase cost and

then amortized on a straight-line basis over their

estimated useful lives.

DERECOGNITION OF INTANGIBLE ASSETS

An intangible asset is derecognized on disposal,

or when no future economic benefi ts are expected

from its use or disposal. Gains or losses arising

from de recognition of an intangible asset,

measured as the difference between the net

disposal proceeds and the carrying amount of the

asset are recognized in the statement of profi t and

loss when the asset is derecognized.

IMPAIRMENT OF TANGIBLE AND INTANGIBLE

ASSETS

At the end of each reporting period, the Company

reviews the carrying amounts of its tangible and

intangible assets to determine whether there is any

indication that the carrying amount of those assets

may not be recoverable through continuing use. If

any such indication exists, the recoverable amount

(i.e. higher of fair value less cost to sell and the

value-in-use) of the asset is reviewed in order to

determine the extent of impairment loss (if any).

Where the asset does not generate cash fl ows that

are independent from other assets, the Company

estimates the recoverable amount of the cash

generating unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is

estimated to be less than its carrying amount, the

carrying amount of the asset (or CGU) is reduced

to its recoverable amount and the difference

between the carrying amount and recoverable

amount is recognized as impairment loss in the

statement of profi t or loss.

Intangible assets with an indefi nite useful life and

intangible assets not yet available for use are

tested for impairment annually and whenever there

is an indication that the asset may be impaired.

NON-CURRENT ASSETS HELD FOR SALE AND

DISCONTINUED OPERATIONS

Non-current assets and disposal groups are

classifi ed as held for sale if their carrying amount

will be recovered through a sale transaction rather

than through continuing use. This condition is

only met when the sale is highly probable and the

asset, or disposal group, is available for immediate

sale in its present condition and is marketed for

sale at a price that is reasonable in relation to its

current fair value. The Company must also be

committed to the sale, which should be expected

to qualify for recognition as a completed sale

within one year from the date of classifi cation.

Non-current assets (and disposal groups)

classifi ed as held for sale are measured at the

lower of their carrying amount and fair value less

costs to sell.

FOREIGN CURRENCY TRANSACTIONS AND

TRANSLATION

The fi nancial statements of the Company are

presented in Indian rupees (“INR”), which is the

functional currency of the Company and the

presentation currency for the fi nancial statements.

In preparing the fi nancial statements, transactions

in currencies other than the entity’s functional

currency (foreign currencies) are recorded at the

rates of exchange prevailing on the date of the

transactions. At the end of each reporting period,

monetary items denominated in foreign currencies

are retranslated at the rates prevailing at the end

of the reporting period. Non-monetary items are

measured at historical cost.

Exchange differences arising on monetary items

are recognized in the statement of profi t and loss

in the period in which they arise.

PROVISIONS AND CONTINGENCIES

Provisions are recognized when the Company has

a present obligation (legal or constructive) as a

result of a past event, which is expected to result

in an outfl ow of resources embodying economic

benefi ts which can be reliably estimated.

Each provision is based on the best estimate of

the expenditure required to settle the present

obligation at the balance sheet date. Provisions

are measured on a discounted basis when it is

considered appropriate. The discount rate used

is a pre-tax rate that refl ects current market

assessments of the time value of money in that

jurisdiction and the risks specifi c to the liability.

Constructive obligation is an obligation that

derives from an entity’s actions where:

1. By an established pattern of past practice,

published policies or a suffi ciently specifi c

current statement, the entity has indicated

to other parties that it will accept certain

responsibilities and

2. As a result, the entity has created a valid

expectation on the part of those other parties

that it will discharge those responsibilities.

ONEROUS CONTRACTS

A provision for onerous contracts is recognized

when the expected benefi ts to be derived by

the Company from a contract are lower than the

unavoidable cost of meeting its obligations under

the contract. The provision is measured at the

present value of the lower of the expected cost of

terminating the contract and the expected net cost

of continuing with the contract.

RESTRUCTURINGS

A restructuring provision is recognized when there

is a detailed formal plan for the restructuring which

has raised a valid expectation in those affected.

The measurement of a restructuring provision

includes only the direct expenditures arising from

the restructuring.


RESTORATION, REHABILITATION AND

DECOMMISSIONING

An obligation to incur restoration, rehabilitation and

environmental costs arises when environmental

disturbance is caused by the development

or ongoing production of a mine and other

manufacturing facilities. The Company has

recognized the obligated restoration, rehabilitation

and decommissioning liability as mandated in the

land document on which the Plant property and

equipment is erected.

Such costs, discounted to net present value,

are provided for and a corresponding amount is

capitalized at the start of each project, as soon as

the obligation to incur such costs arises. These

costs are charged to the statement of profi t or

loss over the life of the operation through the

depreciation of the asset and the unwinding of the

discount on the provision. The cost estimates are

reviewed periodically and are adjusted to refl ect

known developments which may have an impact

on the cost estimates or life of operations. The

cost of the related asset is adjusted for changes

in the provision due to factors such as updated

cost estimates, changes to lives of operations,

new disturbance and revisions to discount rates.

The adjusted cost of the asset is depreciated

prospectively over the lives of the assets to which

they relate. The unwinding of the discount is

shown as fi nance and other cost in the statement

of profi t or loss.

ENVIRONMENTAL LIABILITIES

Environment liabilities are recognized when

the Company becomes obliged, legally or

constructively to rectify environmental damage or

to perform remediation work.

LITIGATION

Provision is recognized once it has been

established that the Company has a present

obligation based on consideration of the

information which becomes available up to the

date on which the Company’s fi nancial statements

are fi nalized.

CONTINGENT LIABILITIES

Contingent liabilities arising from past events,

the existence of which would be confi rmed only

on occurrence or non-occurrence of one or more

future uncertain events, not wholly within the

control of the Company or contingent liabilities

where there is a present obligations but it is not

probable that economic benefi ts would be required

to settle the obligations are disclosed in the

fi nancial statements unless the possibility of any

outfl ow in settlement is remote.

CONTINGENT ASSETS

Contingent assets are not recognized in the

fi nancial statement, but are disclosed where an

infl ow of economic benefi ts is probable.

LEASES

The Company determines whether an arrangement

contains a lease by assessing whether the

fulfi llment of a transaction is dependent on the use

of a specifi c asset and whether the transaction

conveys the right to use that asset to the Company

in return for payment. Where this occurs, the

arrangement is deemed to include a lease and is

accounted for either as fi nance or operating lease.

Leases are classifi ed as fi nance leases whenever

the terms of the lease transfers substantially all the

risks and rewards of ownership to the lessee. All

other leases are classifi ed as operating leases.

THE COMPANY AS LESSEE

1. Operating lease - Rentals payable under

operating leases are charged to the

statement of profi t and loss on a straight

line basis over the term of the relevant lease

unless another systematic basis is more

representative of the time pattern in which

economic benefi ts from the leased asset

are consumed. Contingent rentals arising

under operating leases are recognized as

an expense in the period in which they are

incurred.

2. Finance lease - Finance leases are

capitalized at the commencement of lease,

at the lower of the fair value of the property

or the present value of the minimum lease

payments. The corresponding liability to the

lesser is included in the balance sheet as a

fi nance lease obligation. Lease payments

are apportioned between fi nance charges

and reduction of the lease obligation so as

to achieve a constant rate of interest on the

remaining balance of the liability. Finance

charges are charged directly against income

over the period of the lease.

THE COMPANY AS LESSER

1. Operating lease - Rental income from

operating leases is recognized in the





economic benefi ts from the leased asset is

diminished. Initial direct costs incurred in

negotiating and arranging an operating lease

are added to the carrying amount of the

leased asset and recognized on a straight

line basis over the lease term.

2. Finance lease - When assets are leased out

under a fi nance lease, the present value of

the minimum lease payments is recognized

as a receivable. The difference between the

gross receivable and the present value of the

receivable is recognized as unearned fi nance

income. Lease income is recognized over the

term of the lease using the net investment

method before tax, which refl ects a constant

periodic rate of return.

INVENTORIES

Inventories i.e. ore stock, stores and spares

(including loose tools & implements), work in

progress and fi nished goods are valued at lower of

cost and net realizable value.

Cost of inventories comprises all costs of

production/purchase, costs of conversion and

other costs incurred in bringing the inventories to

their present location and condition.

Net realizable value (NRV) is the price at which the

inventories can be realized in the normal course of

business after allowing for the cost of conversion

from their existing state to a fi nished condition and

for the cost of marketing, selling and distribution.

In view of the diffi culty in ascertaining NRV of

various materials, valuation of stock items of

stores is made at the moving weighted average

cost.

The basis of determining the cost is as follows:

Ore Stock - Periodic weighted average cost

Stores & Spares - Moving weighted average cost

Stock in transit - At cost

Work in progress and fi nished goods- Material cost

plus appropriate share of direct cost, overheads

and levies other than those subsequently

recoverable by the Company from the taxing

authorities

1. The quantity of sub-grade and incidental

waste of Iron Ore mines is booked to

production on effecting Sales and is

not considered for calculation of cost of

production for closing stock valuation

purpose.

2. The quantity of sub-grade Chrome Ore out

of the South Kaliapani Mines old dumps

booked to Production on the basis of

transferred quantity for benefi ciation to

COBP / Sales and is not considered for

calculation of cost of production for closing

stock valuation purpose.

Shortages arising out of the difference between

physically verifi ed stock and book stock

including unmeasured stock have been provided

for weighment adjustment in the book stock,

while excess has been ignored based on the

conservative approach of accounting.

Other non-inventoried stock items of stores

such as medicine, printing & stationery, Liveries,

crèche and canteen stores are charged to

consumption account in the system at the time of

purchase. Basing on physical verifi cation report,

value of such stock (on purchase cost) at the

yearend is fed into the system through adjustment

entry while fi nalizing the Annual Accounts. The

consumption account of such stores is reduced to

the extent of physical stock value created in the

system.


SLOW MOVING STORES

Any stores items not issued for three years are

considered as slow moving stores items and 50%

of value of such items are provided in the accounts

with effect from Financial Year 2016-17.

NONMOVING STORES

Any stores items not issued for fi ve years are

considered as non-moving stores items and 100%



ROM (RUN OF MINES) & UNANALYZED ORES &

CUTTING AND REMOVING OF OVERBURDEN

ROM (Run of Mines) is the immediate excavated

material from the mother earth which is

predominantly ore with certain amount of

impurities and which requires further processing to

bring to the form of saleable ore. Hence, ROM is

not accounted for under ore production.

Unanalyzed Ore is the ore at pit head without

exact measurement and taken on volumetric

measurement basis and whose quantity /grade is

unknown till analysis from government certifi ed

analyzer. Hence unanalyzed ore is not accounted

for under ore production.

FINANCIAL INSTRUMENTS

Financial assets and liabilities are recognized when

the Company becomes a party to the contractual

provisions of the instrument. Financial assets

and liabilities are initially measured at fair value.

Transaction cost that are directly attributable to the

acquisition or issue of fi nancial assets and fi nancial

liabilities ( other than fi nancial assets and fi nancial

liabilities at fair value through profi t or loss) are

added to or deducted from the fair value measured

on initial recognition of fi nancial asset or fi nancial

liabilities.

FINANCIAL ASSETS

1. Cash or Cash Equivalent - The Company

considers all short term Bank deposits,

which are readily convertible in to known

amounts of cash that are subject to an

insignifi cant risk of change in value and

having original maturities of three months or

less from the date of purchase, to be cash

equivalents. Cash and cash equivalents

consists of balances with banks which are

unrestricted for withdrawal and usage. For

the purposes of the Cash Flow Statement,

cash and cash equivalents is as defi ned

above, net of outstanding bank overdrafts.

In the balance sheet, bank overdrafts are

shown within borrowings in current liabilities.

The balance lying in the Stale Cheque

Account” is transferred to “Other Receipts

Accounts” after the expiry of the period of

limitations i.e. three years from the date of

expiry of the validity period of the cheque

with the approval of RO Head/ Finance Head

at ROs and HO respectively. This policy has

been effective from 1st April, 2015.

2. Financial assets at amortized cost - Financial

assets are subsequently measured at

amortized costs if these fi nancial assets

are held within a business model whose

objective is to hold these assets in order

to collect contractual cash fl ows and the

contractual terms of the fi nancial assets give

rise on specifi ed dates to cash fl ows that are

solely payments of principal and interest on

the principal amount outstanding.

3. Financial assets at fair value through other

comprehensive income (FVTOCI) - Financial

assets are measured at fair value through

other comprehensive income if these

fi nancial assets are held within a business

model whose objective is achieved by both

collecting contractual cash fl ows and selling

fi nancial assets and contractual term of

the fi nancial assets give rise on specifi ed

days to cash fl ows that are solely payment

of principals and the interest on principal

amount outstanding.

4. Financial assets at Fair value through

Profi t or loss (FVTPL) - Financial assets are

measured at fair value through profi t or loss

unless it is measured at amortized cost or

at fair value through other comprehensive

item on initial recognition. The transaction

cost directly attributable to the acquisition

of fi nancial assets and liabilities at fair

value through profi t or loss are immediately

recognized in the statement of profi t or loss.

FINANCIAL LIABILITIES AND EQUITY

INSTRUMENTS ISSUED BY THE COMPANY

1. Financial Liabilities - Trade and other

payables are initially measured at fair

value, net of transaction costs, and are

subsequently measured at amortized cost,

using the effective interest rate method.

Other fi nancial liabilities are measured at

amortized cost using the effective interest

method.

2. Equity instruments - An equity instrument

is any contract that evidences a residual

interest in the assets of an entity after

deducting all of its liabilities. Equity

instruments issued by the Company are

recognized at the proceeds received, net of

direct issue costs.

3. Compound Instruments - The component

parts of compound instruments (convertible

instruments) issued by the Company

are classifi ed separately as fi nancial

liabilities and equity in accordance with the

substance of the contractual arrangement.

At the date of issue, the fair value of the

liability component is estimated using the

prevailing market interest rate for a similar

non-convertible instrument. This amount is

recorded as a liability on an amortized cost

basis using the effective interest method

until extinguished upon conversion or at

the instrument’s maturity date. The equity

component is determined by deducting the

amount of the liability component from the

fair value of the compound instrument as a

whole. This is recognized and included in

equity, net of income tax effects, and is not

subsequently re-measured.

4. Financial guarantee contract liabilities

- Financial guarantee contract liabilities

are initially measured at their fair values

and, if not designated as at FVTPL, are

Subsequently measured at the higher of:

a. The amount of the obligation under the

contract, as determined in accordance

with Ind AS 37 Provisions, Contingent

Liabilities and Contingent Assets; and

b. The amount initially recognized

less, where appropriate, cumulative

amortization recognized in accordance

with the revenue recognition policies.

5. Derecognition of fi nancial assets - The

Company derecognizes a fi nancial asset only

when the contractual rights to the cash fl ows

from the asset expire, or when it transfers the

fi nancial asset and substantially all the risks

and rewards of ownership of the asset to

another entity.

6. Impairment of fi nancial assets - At each

reporting date, the Company assess whether

the credit risk on a fi nancial instrument

has increased signifi cantly since initial

recognition.If, at the reporting date, the

credit risk on a fi nancial instrument has

not increased signifi cantly since initial

recognition, the Company measures the loss

allowance for that fi nancial instrument at an

amount equal to 12-month expected credit

losses. If, the credit risk on that fi nancial

instrument has increased signifi cantly since

initial recognition, the Company measures

the loss allowance for a fi nancial instrument

at an amount equal to the lifetime expected

credit losses.The amount of expected credit

losses (or reversal) that is required to adjust

the loss allowance at the reporting date is

recognized as an impairment gain or loss in

the statement of profi t and loss.

7. Derecognition of fi nancial liability - The

Company derecognizes fi nancial liabilities

when, and only when, the Company’s

obligations are discharged, cancelled or they

expire.

8. Off setting fi nancial instruments - Financial

assets and liabilities are offset and the

net amount reported in the balance sheet

when there is a legally enforceable right to

offset the recognized amounts and there

is an intention to settle on a net basis or

realize the asset and settle the liability

simultaneously. The legally enforceable right

must not be contingent on future events and

must be enforceable in the normal course of

business.


DERIVATIVES

Derivatives are initially recognized at fair value at

the date the derivative contracts are entered into

and are subsequently premeasured to their fair

value at the end of each reporting period. The

resulting gain or loss is recognized in profi t or loss

immediately unless the derivative is designated

and effective as a hedging instrument, in which

event the timing of the recognition in profi t or loss

depends on the nature of the hedging relationship

and the nature of the hedged item.

BORROWING COST

Borrowing costs directly attributable to the

acquisition, construction or production of

qualifying assets are added to the cost of

those assets, until such time as the assets are

substantially ready for their intended use or sale.

The Company considers a period of twelve months

or more as a substantial period of time.

Investment income earned on the temporary

investment of specifi c borrowings pending their

expenditure on qualifying assets is deducted from

the borrowing costs eligible for capitalization.

All other borrowing costs are recognized in the


they are incurred.

ACCOUNTING FOR GOVERNMENT GRANTS

Government grants are recognized when there is

reasonable assurance that we will comply with the

conditions attaching to them and that the grants

will be received.

Government grants are recognized in the

statement of profi t and loss on a systematic basis

over the periods in which the Company recognizes

as expenses the related costs for which the grants

are intended to compensate. Government grants

whose primary condition is that the Company

should purchase, construct or otherwise acquire

non-current assets are recognized in the balance

sheet by setting up the grant as deferred income.

Other government grants (grants related to

income) are recognized as income over the periods

necessary to match them with the costs for which

they are intended to compensate, on a systematic

basis. Government grants that are receivable as

compensation for expenses or losses already

incurred or for the purpose of providing immediate

fi nancial support with no future related costs are

recognized in the statement of profi t and loss in

the period in which they become receivable.

Grants related to income are presented under

other income in the statement of profi t and loss

except for grants received in the form of rebate

or exemption which are deducted in reporting the

related expense.

The benefi t of a government loan at a below-

market rate of interest is treated as a government

grant, measured as the difference between

proceeds received and the fair value of the loan

based on prevailing market interest rates.

EMPLOYEE BENEFITS

Short-Term Employee Benefi ts

A liability is recognized for benefi ts accruing to

employees in respect of wages and salaries, short

term compensated absences etc. in the period the

related service is rendered at the undiscounted

amount of the benefi ts expected to be paid.

POST-EMPLOYMENT BENEFITS

1. Defi ned contribution plans - A defi ned

contribution plan is a plan under which the

Company pays fi xed contributions to a

separate entity. The Company has no legal

or constructive obligations to pay further

contributions if the fund does not hold

suffi cient assets to pay all the employees

the benefi ts relating to employee service in

the current and prior periods. Payment to

defi ned contribution plans are recognised

as an expense when the employees have

rendered service entitling them for such

contributions.

2. Defi ned benefi t plans - For defi ned benefi t

retirement schemes the cost of providing

benefi ts is determined using the Projected

Unit Credit Method, with actuarial valuation

being carried out at each balance sheet

date. Re-measurement gains and losses

of the net defi ned benefi t liability / (asset)

are recognized immediately in other

comprehensive income. The service cost,

net interest on the net defi ned benefi t liability

/ (asset) is treated as a net expense within

employment costs. Past service cost is

recognized as an expense when the plan

amendment or curtailment occurs or when

any related restructuring costs or termination

benefi ts are recognized, whichever is earlier.

The retirement benefi t obligation recognized

in the balance sheet represents the present

value of the defi ned-benefi t obligation as

reduced by the fair value plan assets.

LONG-TERM EMPLOYEE BENEFITS

Liabilities recognized in respect of other long-

term employee benefi ts are measured at the

present value of the estimated future cash

outfl ows expected to be made by the Company

in respect of services provided by employees

up to the reporting date. The expected costs

of these benefi ts are accrued over the period

of employment using the same accounting

methodology as used for defi ned benefi t retirement

plans. Actuarial gains and losses arising from

experience adjustments and changes in actuarial

assumptions are charged or credited to the


they arise. These obligations are valued annually

by independent actuaries.

INCOME TAXES

Tax expense for the year comprises current and

deferred tax.

CURRENT TAX

The tax currently payable is based on taxable profi t

for the year. Taxable profi t differs from net profi t

as reported in the statement of profi t and loss

because it excludes items of income or expense

that are taxable or deductible in other years and

it further excludes items that are never taxable or

deductible. The Company’s liability for current tax

is calculated using tax rates and tax laws that have

been enacted or substantively enacted by the end

of the reporting period.

DEFERRED TAX

Deferred tax is the tax expected to be payable or

recoverable on differences between the carrying

amounts of assets and liabilities in the fi nancial

statements and the corresponding tax bases

used in the computation of taxable profi t, and is

accounted for using the balance sheet liability

method. Deferred tax liabilities are generally

recognized for all taxable temporary differences. In

contrast, deferred tax assets are only recognized

to the extent that it is probable that future

taxable profi ts will be available against which the

temporary differences can be utilized.

The carrying amount of deferred tax assets is

reviewed at the end of each reporting period and

reduced to the extent that it is no longer probable

that suffi cient taxable profi ts will be available to

allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are

expected to apply in the period when the liability

is settled or the asset is realized based on the

tax rates and tax laws that have been enacted or

substantially enacted by the end of the reporting

period. The measurement of deferred tax liabilities

and assets refl ects the tax consequences that

would follow from the manner in which the

Company expects, at the end of the reporting

period, to cover or settle the carrying amount of its

assets and liabilities.

Deferred tax assets and liabilities are offset to the

extent that they relate to taxes levied by the same

tax authority and there are legally enforceable

rights to set off current tax assets and current tax

liabilities within that jurisdiction.

Current and deferred tax are recognized as an

expense or income in the statement of profi t and

loss, except when they relate to items credited

or debited either in other comprehensive income

or directly in equity, in which case the tax is also

recognized in other comprehensive income or

directly in equity.


REVENUE RECOGNITION AND OTHER INCOME

Revenue is recognized to the extent that it is

probable that the economic benefi ts will fl ow to

the Company and the revenue can be reliably

measured, regardless of when the payment is

being made. Revenue is measured at the fair value

of the consideration received or receivable net

of discounts, taking into account contractually

defi ned terms and excluding taxes or duties

collected on behalf of the government.

SALES OF GOODS

Revenue from contracts with customers is

recognised when control of goods and services

is transferred to the customers at an amount

that refl ects the consideration to which company

expects to be entitled in exchange for those good

and services.

If the consideration in a contract includes a

variable amount, the company estimates the

amount of consideration to which it will be entitled

in exchange for transferring the goods to the

customers. The variable consideration is estimated

at contract inception and constrained, until it is

highly probable that a signifi cant reversal in the

amount of cumulative revenue recognised will not

occur when the associated uncertainty with the

variable consideration is subsequently resolved.

All revenue from the sale of goods is recognised

at a point in time and revenue from services is

recognised over-time.

The timing of transfer of control in case of sale of

goods varies depending upon individual transfer

terms of the contract.

In export sales, control passes to the customer on

the date of Bill of lading.

In case of domestic sales, control passes to

the customer on the date of delivery which is

generally recognised based on the preparation of

post goods issue (PGI) and invoice thereto in the

invoice system against the particular delivery order.

No revenue is recognized if there are signifi cant

uncertainties regarding recovery of the amount

due, associated costs or the possible return of

goods.

CONTRACT ASSET

A contract asset is the right to consideration

in exchange for goods or services transferred

to the customers. If the company performs by

transferring goods or services to a customer

before the customer pays consideration or before

payment is due, a contract asset recognized for

the contract for the earned consideration that is

conditional.

TRADE RECEIVABLES

A receivable represents the company’s right to an

amount of consideration.

CONTRACT LIABILITY

A contract liability is the obligation to transfer

goods or services to a customer for which

the Company has received consideration (or

an amount of consideration is due) from the

customer. If a customer pays consideration before

the company transfers goods and services to

the customer, a contract liability is recognised

when the payment is made or the payment is

due (whichever is earlier). Contract liabilities

are recognised as revenue when the company

performs under the contract.

DIVIDEND INCOME

Dividend income from investments is recognized

when the shareholder’s rights to receive payment

have been established.

INTEREST INCOME

Interest income from a fi nancial asset is

recognized when it is probable that the economic

benefi ts will fl ow to the Company and the amount

of income can be measured reliably. Interest

income is accrued on a time proportion basis,

by reference to the principal outstanding and the

effective interest rate applicable, which is the

rate that exactly discounts estimated future cash

receipts through the expected life of the fi nancial

asset to that asset’s net carrying amount on initial

recognition.

INCOME FROM INCENTIVES FROM

GOVERNMENT AGENCIES

Government Grants, if any, received during the

year against any project or Scheme implemented

during that year is credited to the project or

Scheme cost. If such Grant is received at a later

year after completion of the project, the same

is treated as other income in the year in which it

is received. Revenue related grants are treated

as other income in the year in which they are

received.

ALL EXPENDITURE IS RECOGNIZED ON

ACCRUAL BASIS EXCEPT FOR:

1. Demurrage on export sale.

2. Interest payable on negotiation of bills with

banks in respect of export sales.

3. With effect from fi nancial year 2009-10,

Voluntary Retirement Scheme payments

are treated as revenue expenditure being

charges to the Statement of Profi t & Loss in

the year in which the amount is paid.

4. Insurance Claim

a. Expenditure incurred at the prospecting

camps relating to ore prospecting work

is treated as revenue expenditure.

b. Expenditure incurred for

implementation and maintenance of

ERP excepting hardware expenses are

treated as revenue expenditure.

c. In absence of detailed calculation or

ore reserve, its grade, associated rocks

and materials, etc, no provisioning is

being made for backlog /excess of

quantity of waste material. Expenditure

on cutting and removing of overburden

is accounted for as and when incurred.

EXCEPTIONAL ITEMS

Exceptional items are items of income and

expenses arises from ordinary activities but of

such size, nature or incidence whose disclosure

is felt necessary for better explanation of the

performance of the Company.

RESTATEMENT OF MATERIAL ERRORS/

OMISSIONS

The value of errors and omissions is construed

to be material for restating the opening balances

of assets and liabilities and equity for the earliest

prior period presented, if the sum total effect of

earlier period income/expenses exceeds Rs. 50

crore.

CRITICAL ACCOUNTING JUDGMENTS AND

KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company’s accounting

policies, which are described in Note-2, the

management of the Company is required to make

judgments’, estimates and assumptions about

the carrying amounts of assets and liabilities that

are not readily apparent from other sources. The

estimates and associated assumptions are based

on historical experience and other factors that are

considered to be relevant. Actual results may differ

from these estimates.

The estimates and underlying assumptions are

reviewed on an ongoing basis. Revisions to

accounting estimates are recognized in the period

in which the estimate is revised.

CRITICAL JUDGMENTS IN APPLYING

ACCOUNTING POLICIES:

The following are the critical judgments, apart

from those involving estimations (see “key

sources of estimation uncertainty” below), that

the management have made in the process of

applying the Company’s accounting policies

and that have the most signifi cant effect on the

amounts recognized in the fi nancial statements.

FINANCIAL ASSETS AT AMORTIZED COST

The management has reviewed the Company’s

fi nancial assets at amortized cost in the light of its

business model and has confi rmed the Company’s

positive intention and ability to hold these fi nancial

assets to collect contractual cash fl ows. The

carrying amount of these fi nancial assets are

disclosed in note 31.


The following are the key assumptions concerning

the future, and other key sources of estimation of

uncertainty at the end of the reporting period that

may have a signifi cant risk of causing a material


liabilities within the next fi nancial year.


1. Impairment of investments - The Company

reviews its carrying value of investments

carried at amortized cost annually, or more

frequently when there is indication for

impairment. If the recoverable amount is less

than its carrying amount, the impairment loss

is accounted for.

2. Provisions - Provisions (excluding retirement

benefi ts and compensated absences) are

not discounted to its present value and are

determined based on best estimate required

to settle the obligation at the balance sheet

date. These are reviewed at each balance

sheet date adjusted to refl ect the current

best estimates.

3. Prepaid Expenses - Prepaid expenses up to

INR 5,00,000/- per transaction per year shall

be treated as expenses in the Financial Year

in which it is paid.

4. Contingent liabilities - Contingent liabilities

arising from past events the existence

of which would be confi rmed only on

occurrence or non-occurrence of one or

more future uncertain events not wholly

within the control of the Company or

contingent liabilities where there is a

present obligations but it is not probable

that economic benefi ts would be required

to settle the obligations are disclosed in the

fi nancial statements unless the possibility of

any outfl ow in settlement is remote.

5. Fair value measurements and valuation

processes - For fi nancial reporting purposes,

fair value measurements are categorized into

Level 1, 2 or 3 based on the degree to which

the inputs to the fair value measurements are

observable and the signifi cance of the inputs

to the fair value measurement in its entirety,

which are described as follows:

a. Level 1 inputs are quoted prices (unadjusted)

in active markets for identical assets or

liabilities that the Company can access at the

measurement date;

b. Level 2 inputs are inputs, other than quoted

prices included within Level 1, that are

observable for the asset or liability, either

directly or indirectly; and

c. Level 3 inputs are inputs that are not based

on observable market data (unobservable

inputs).

INTERNAL FINANCIAL CONTROL

The Corporation had engaged M/s Deloitte

Haskins & Shell Kolkata consultants to conduct a

study up to the fi nancial year 2016-17 on Internal

Financial Control (IFC) and provide a report.

Accordingly corrective measures have been taken

where ever required. During the current year, the

corporation has relied upon Internal Auditors on

Internal Financial Control.


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Particular% of share

holdings

As at March 31, 2019

(₹ in Lakh)


(₹ in Lakh)

No. of shares Amounts No. of shares Amounts

UNQUOTED INVESTMENTS CARRIED AT COST

The Corporation has opted accounting of Investments in Subsidiaries, Joint Ventures & Associates at cost in line with pargraph -10 of Ind AS -27

Equity investment in wholly owned subsidiary

Odisha Mineral Exploration Corporation Limited (4,25,100 ) fully paid up shares has

been acquired during the year) 100.00 4,251,00 42.51 2,34,051 23.41

Equity investment in Joint Ventures

RIO Tinto Orissa Mining Pvt. Limited (Fully Paid up) 49.00 2,28,000 228.00 2,28,000 228.00

Orissa Thermal Power Corporation Limited (Fully Paid up) 50.00 13,42,047 13,420.47 13,42,047 13,420.47

Nuagaon Coal Company Limited (Fully Paid up) 50.00 1,00,000 100.00 1,00,000 100.00

Kalinga Coal Mining Pvt. Limited (Face value of Rs 10 each at free of cost) 26.00 17,16,000 - 17,16,000 -

Neelachal Ispat Nigam Limited (Fully Paid up) 12.32 7,15,98,530 12,694.71 7,15,98,530 12,694.71

Keonjhar Infrastructure Development Co Limited (Fully paid up) 11.11 7,200 0.72 7,200 0.72

Angul Sukinda Railway Limited (Fully paid up) 10.50 6,30,00,000 6,300.00 6,30,00,000 6,300.00

Haridaspur Paradip Railway Company Limited (Fully Paid up) 15.49 9,29,20,000 9,292.00 92,920,000 9,292.00

Less: Impairment of investments - - (328.72) - (328.72)

Total - - 41,707.18 - 41,707.18

Equity investment in Associates

Lanjigarh Schedule Area Development Fund (Face value of Rs 10 each at free of cost) 25.00 12,500 - 12,500 -

South West Orissa Bauxite Mining Pvt. Limited (Face value of Rs 10 each at free of

cost) 26.00 13,000 - 13,000 -

East Coast Bauxite Mining Co. Pvt. Limited (Face value of Rs 10 each at free of cost) 26.00 2,600 - 2,600 -

Mandakini B Coal Corporation Limited (Fully paid up) 25.00 2,07,843 200.00 2,07,843 200.00


Total - - - - -

TOTAL AGGREGATE UNQUOTED INVESTMENTS (A) - - 41,749.69 - 41,730.58

OTHER INVESTMENTS (B)

Investments in joint ventures (Preference shares, face value of 10 each, fully paid up)

Keonjhar Infrastructure Development Co Limited 13.30 4,50,000 (450.00) 4,50,000 -


TOTAL OTHER INVESTMENTS (B) - - - - -

TOTAL INVESTMENTS (A) + (B) - - 41,749.69 - 41,730.58

06. INVESTMENT


Particular As at March 31, 2019 (₹ in Lakh) As at March 31, 2018 (₹ in Lakh)

1. Security Deposits

Secured, considered good - -

Unsecured, considered good 202.19 190.85

Doubtful - -

Less : Allowance for bad and doubtful advances - -

2. Loans to related parties


Unsecured, considered good 11,805.56 2,361.11

Doubtful - -


3. Loans to employees



Doubtful - -

Less : Allowance for bad and doubtful advances (Refer Note 7.vi) (108.83) (104.37)

4. Intercorporate Loans (Gridco)



Doubtful - -


07. LOANS- NON CURRENT (A)


Unquoted

Carrying amount - -

Subsidiary 42.51 23.41

Joint Ventures 41,707.18 41,707.18

Associates - -

Total carrying amount 41,749.69 41,730.58

1. The cost of unquoted investments approximate the fair value because there is a wide range possible fair value measurements and the cost represents estimate of fair value within that

range.

2. OMC executed an agreement with Rio Tinto Mineral Dev.(RTMD) on 24.02.1995 as per the directive of Government for developing an integrated rail, port and mines project having production

capacity of at least 15MT of iron ore p.a from Gandhamardan and Malangtoli Leases by forming a joint venture company. The JV RTOM was incorporated in July,1997 with holding of

51% by RTMD and 49% by OMC. The project after completion of feasibility studies Ph-I and Ph-II has not progressed due to non fi nalization of the project development agreement. Case

fi led by OMC & RTMD on winding up of the JV Co.are continuing at respective legal forums. So provision for impairment was made for INR 228.00 lakh against this investment in JV Company

during FY 2010-11.

3. The Ministry of Coal, Government of India vide letter No. f No.13016/8/207-CA-1 dtd 25.07.2007 alloted Mandakini-B Coal Block in favour of the OMC Limited, Assam Mineral Development

Corpn, Meghalaya Mining Corpn, and Tamilnadu Electricity Board on equal sharing basis of 25% each for Power Generation. Accordingly, the new Comapany Viz M/S MBCCL was

incorporated. Further, Ministry of Coal, GoI has de-allocated Madakini-B Coal Block on 05.12.2012. The Board of Directors of MBCCL in its meeting held on 08.02.2013 decided for

dissolution of the Company and the Board of Directors of the OMC limited in its 398th meeting held on 26.03.2013 approved dissolution of MBCCL. Accordingly provision has been created

for INR 200.00 lakh in the Accounts of 2012-13 towards impairment of investment in the said company. Now the said company is declared as dormant as per the provisions of section 455(2)

of the Companies Act, 2013 by MCA, GOI on dated 23.06.2017.

4. OMC & APMDC invested Rs.100 lakh each being 50% partner in joint venture company namely M/S Nuagaon Coal Company Limited & shown as share deposit amount. The JV Company

alloted 3000 equity share of Rs.100.00 each amounting to Rs.3 lakh.However the share are yet to be received.As per order of Hon’ble Supreme Court of India, 204 coal blocks were

de-allocated including M/S Nuagaon Coal Company Limited. Accordingly, provision for impairment was created for Rs. 100 lakh against this investment in the JV Company during the F.Y

2014-15.Now the said company is declared as dormant as per the provisions of section 455(2) of the Companies Act, 2013 by MCA, GOI on dated 23.06.2017.

5. During Financial Year 2015-16, consequent upon approval of Board of Directors, an amount of Rs.450.72 lakh (Rs.450.00 Lakh of preference shares + Rs.0.72 lakh of equity shares) invested

in M/S Keonjhar Infrastructure Development Co Limited have been provided for as the same were found to be permanently diminuted due to the company’s net worth as well as the derived

market value of share was continuously showing (-ve) trend.

6. 7,200 Nos of shares held by the OMCL in Keonjhar Infrastructure Development Co Limited has been pledged with State Bank of India for availment of loan by M/s KIDCOL.

7. Additional Investment made during the Financial year 2018-19 Amounting to Rs. 19.10 lakh (Rs 23.41 lakh upto 2017-18 in M/S Odisha Minerial Explorarion Corporation Limited , a 100%

subsidary of OMC as equity Investment in the said subsidary company.

8. An amount of Rs. 2000 lakh payable by M/S Utkal Alumina International Limited (UAIL) pursuant to an agreement dated 1st October 2007 and subsequent Addendum dtd 31st January 2011.

The UAIL has agreed to issue 15% fully convertable cumulative preferance shares amounting to Rs 2000 lakh with face value of Rs 10/- each at par in consideration for transfer of prospecting

licence, mining leases, all rights thereto, rendering of related technical services etc by OMC. These preferance shares are redeemable. The issuance of such preferance shares is pending.

In terms of debenture subscription agreement between OMC & UAIL, UAIL paid Rs 300 lakh (Previous Year 300 lakh) in lieu of a Zero coupon unsecured redeemable non convertible

debenture of Rs 300 lakh towards its obligation to pay OMC an amount equivalent to 15% per Annum on Rs 2000 lakh. This receipt of Rs 300 lakhs (previous year Rs 300 lakh)has been

booked in other receipt.

THE CARRYING AMOUNT AND MARKET VALUE OF UNQUOTED EQUITY INVESTMENTS IS AS FOLLOWS



1. Security Deposits


Unsecured, considered good - -

Doubtful - -


2. Loans to related parties



Doubtful - -

Less : Allowance for bad and doubtful advances -

3. Loans to employees



Doubtful - -

Less : Allowance for bad and doubtful advances (Refer Note 7.vi) - -

4. Intercorporate Loans (Gridco)



Doubtful - -


5. Intercorporate Loans (IDC)



Doubtful - -


Total 26,665.84 43,103.63

07. LOANS- CURRENT (B)

1. Loans to related parties include:

Loans given to Joint venture i.e. Neelachal Ispat Nigam Limited (NINL), a manufacturer of steel, amounting to INR 17,000 lakh on dated 23.09.2015 & 30.09.2015 amounting to INR 13,000

lakh and INR 4,000 Lakhs respectively with repayment period of 3 years excluding 1 year moratorium period. The rate of interest is 12.25% upto 31.08.2018 and 10.25% wef 01.09.2018.

Repayment of Principal instalment has been reschedule to start from April 2019 and repayable in 36 equal monthly instalment ending in march 2022 instead of 36 equated monthly instalment

originally schedule from October 2016 to September 2019.NINL has provided Corporate guarentee dtd. 24.10.2017 from its managing promotor ie. M/s MMTC Limited ,a Government of

India Under taking for INR 17,000 Lakh.The Company has a negative networth of INR 95,648.97 Lakh as on 31.03.2019.

2. Loans include Intercorporate deposits to GRIDCO of INR 37,577.18 Lakhs as on 31.03.2019 (INR 64,366.27 Lakhs as on 31.03.2018).GRIDCO is a State PSU dealing with trading of power.

GRIDCO availed the above inter corporate loan from OMC amounting to INR 1,50,000 lakh on dtd 05.12.2012, 12.09.2014 & 14.07.2015 amounting to INR 50,000 lakh each for their working

capital management executing necessary agreement including escrow agreement among GRIDCO, OMC and Union Bank of India. The period of loan is 6 years including 1 year (1st year) as

moratorium period. The rate of interest is fl oating which is 1.5% over the FD rates offered by SBI on bulk deposits (For INR 1 crore and above) for a period of 1 to 2 years.

3. Loans include Intercorporate loans to IDC, a manufacturer of Ferro Manganese, amounting to INR 10515.94 lakh on dtd 12.01.2018 and INR 737.54 lakh on dtd.22.09.2018. Besides there is

an outstanding dues against IDC amounting to INR 1,641.05 Lakh as on 31.03.2018. The above loan have been released with a condition to pay INR 200.00 Lakh per month with effect from

10th May 2018. The interest rate applicable is OMC’s highest interest rate on Fixed Deposit plus 2%.

4. The above loans and inter-corporate deposits have been given for business purpose.

5. There are no loans due by directors or other offi cers of the company or any of them either severally or jointly with any other persons or no amounts due by fi rms or private companies

respectively in which any director is a partner or a director or a member .

6. Advances to employees like Travelling Expenses, Misc Expenses, Medical Reimbusement bills and other Staff Welfare Expenses outstanding for more than twelve months are adequately

provided for and loans / advances like Computer Loan, House Building Advance, Motor Car / Cycle Advance, Marriage Advance TV Advance where no recovery are made for more then six

years are also provided for..


5. Intercorporate Loans (IDC)



Doubtful - -


Total 40,221.86 51,282.93


08. DEFERRED TAX BALANCES


Deferred Tax Assets 8,399.40 29,893.64

Less : Deferred Tax Liabilities 3,018.47 -

Add: Mat Credit Entitlement 10,745.77 -

Less : Provision for MAT 10,745.77 -

Net Deferred Tax (Liability)/ Assets 5,380.92 29,893.64

Notes

Signifi cant component of deferred tax assets and liabilities for the year ended March 31, 2019 is as follows:

Opening

balance as at

April 1, 2018

Deferred tax

expense/(income)

recognised in profi t

and loss

Deferred tax

expense/ (income)

recognised in OCI

Deferred tax expense/

(income) recognised in

other equity

Closing Balance as at

March 31, 2019

Deferred tax assets

Retirement benefi t assets 3,661.66 3,513.39 485.13 - 7,660.18

Provisions (2,867.82) 1,635.55 - - (1,232.27)

Property, plant and equipment and 1,367.39 262.09 - - 1,629.48

Investment 338.72 3.29 - - 342.01

Carry Forward loss 29,872.00 (29,872.00) - - (0.00)

Total 32,371.95 (24,457.69) 485.13 - 8,399.40

Deferred tax liabilities

Intangible assets 2,478.31 540.16 - - 3,018.47

Others

Total 2,478.31 540.16 - 3,018.47

Net Deferred tax assets / liabilities 29,893.64 (24,997.85) 485.13 - 5,380.93


09. OTHER NON - CURRENT ASSETS

OPERATING LEASE PAYMENTS

Particulars As at March 31, 2019 (₹ in Lakh) As at March 31, 2018 (₹ in Lakh)

Ore Stock

Iron 9,809.61 10,272.02

Chrome 139.52 188.48

Mangnese 123.93 123.92

Sub Total 10,073.06 10,584.42

Less Provision for Ore Stock

Iron 5,729.08 5,692.67

Chrome 3.95 0.13

Mangnese 0.23 0.14

Sub Total 5,733.26 5,692.94

Less : Provision for Impairment of Ore 153.71 -

Net Ore Stock 4,186.09 4,891.48

Prepayments (Leasehold Land) 405.24 410.07

Restricted Balances with Bank :

Gandhamardan (With Steel & Mines Department) 33,175.21 33,175.21

Kaliapani (With OMC Limited .) 9,069.63 8,606.67

Deposit with LIC Gratuity (Net) 1,494.90 2,260.55

Sub Total 44,144.98 44,452.50

TOTAL 48,331.07 49,343.98

Minimum Lease Payments

As at March 31, 2019 (₹ in Lakh) As at March 31, 2018 (₹ in Lakh)

Not later than 1 year 4.82 4.82

Later than one year but not later than fi ve years 19.28 19.29

Later than fi ve years 381.14 385.96

Total minimum lease commitments 405.24 410.07

1. Resticted Balance with Bank represent fi xed deposit of INR 9,069.63 lakh on account of sale proceeds of seized chrome ore.

2. The Company has taken land under operating leases. The following is the summary of future minimum lease rental payments under operating leases entered into by the Company:

3. Deposit with LIC Gratuity (Net) constitute excess of plan assets over the liability on account of Grauity and suitably disclosed vide Note No-30.

– During the year ended March 31, 2019, total operating lease rental recognised in the statement of profi t and loss was INR 4.82 Lakhs, (Previous Year INR 4.82 Lakhs)

– Signifi cant leasing arrangements include lease of land for periods ranging between 70 to 99 years with extension option.

4. Due to non-availability of stacking space, the ore raised from Gandhamardan Block-B (for which OMC had all statutory clearances) was stacked in Gandhamardan Block-A (whose forest

clearance was under process). However, the Statutory Authorities did not allow OMC to sell such ore from Gandhamardan Block-A. As a result, OMC has preferred an appeal to Hon’ble

Supreme Court for allowing it to sell the ore. Honorable Supreme Court, had directed while disposing I.A. No.3402 in I.A.No.2378 in 2164 with I.A. no. 3433 in Writ Petition (Civil) No (s).

202 of 1995, to take steps to sell all the dumped materials from the Gandhamardan Forest Area and deposit the sale proceeds in a Nationalized Bank and the amount can be released to

OMC, only after obtaining Order from the Court. There is no sale during current year (Previous year 1.15 lakh MT) of Iron Ore were sold to various agencies and accordingly nothing has

been included in the turn over during the current year (Previous year INR 731.80 lakh has been included in turnover) and deposited Royalty, Sales Tax & other Statutory payments with the

Concerned Authorities. After deduction of the above Statutory payments, which was deposited with the Concerned Authorities, the balance sale proceeds of Rs.NIL (Previous year INR 505.10

lakh) were deposited in Bank and treated in the account as Restricted Balances with Bank under the head “other Non Current Assets” as matter is subjudice.

5. A quantity of 80,603.325 MT of Chrome Ore of Kaliapani , which was seized by Director of Mines, has been disposed off. As per order of Hon’ble Court of JMFC, Jk Road, vide Misc. case no.

71 of 2009, the amount realised from sales of the said Ore has been kept in a separate Bank Account along with interest earned on this

6. Balances with banks which are restricted from being exchanged or used to settle a liability for more than 12 months from the balance sheet date are classifi ed under Non-current

assets.

7. Shortages arising out of the difference between physically verifi ed Stock and the book stock including unmeasured stock has been provided for, while excess has been ignored based on the

conservative approch of accounting.



Finished goods

Iron Ore 39,604.20 35,642.79

Chrome Ore 13,962.49 14,154.30

Bauxite Ore 2,821.01 244.86

Sub Total 56,387.70 50,041.95

Less Provision for shortage of ore

Iron Ore 1,288.00 1,207.30

Chrome Ore 3.82 130.81

Bauxite Ore 0.39 2.96

Sub Total 1,292.21 1,341.07

Net Ore Stock 55,095.49 48,700.88

Stores & Spares 1,464.44 1,492.26

Others - -

Non inventorised stores 23.72 18.58

Sub Total 1,488.16 1,510.84

Less: Provision on stores and spares 759.44 956.00

Total 728.72 554.84

Total Inventories 55,824.21 49,255.72

10. INVENTORIES



Supreme Court for allowing it to sell the ore. Honorable Supreme Court, had directed while disposing I.A. No.3402 in I.A.No.2378 in 2164 with I.A. no.3433 in Writ Petition (Civil) No (s).



been included in the turn over during the current yeari (Previous year INR 731.80 lakh has been included in turnover) and deposited Royalty, Sales Tax & other Statutory payments with the

Concerned Authorities. After deduction of the above Statutory payments, which was deposited with the Concerned Authorities, the balance sale proceeds of INR NIL (Previous year INR

505.10 lakh) were deposited in Bank and treated in the account as Restricted Balances with Bank under the head “other Non Current Assets” as matter is subjudice.

2. A quantity of 80,603.325 MT of Chrome Ore of Kaliapani , which was seized by Director of Mines, has been disposted off. As per order of Hon’ble Court of JMFC, Jk Road, vide Misc. case

no. 71 of 2009, the amount realised from sales of the said Ore has been kept in a separate Bank Account along with interest earned on this amount.




11. TRADE RECEIVABLES


Trade receivables


Unsecured, considered Doubtful 200.37 200.37

Less: Provision for Doubtful debt. 200.37 200.37

TOTAL 10,765.64 14,261.26

As at March 31, 2019 Gross credit risk amount (₹ in Lakh) Allowance for credit losses (₹ in Lakh) Net credit risk amount (₹ in Lakh)

Amounts not yet due 10,247.35 - 10,247.35

One month 136.55 - 136.55

Two month 13.07 - 13.07

Three months 259.35 - 259.35

Between three to six months - - -

More than six months 309.69 200.37 109.32

TOTAL 10,966.01 200.37 10,765.64



One month 2,512.15 - 2,512.15

Two month 339.99 - 339.99

Three months 345.69 - 345.69

Between three to six months 1,795.87 - 1,795.87

More than six months 5,263.35 200.37 5,062.98

TOTAL 14,461.63 200.37 14,261.26


Balance at the beginning of the period 200.37 -

Additions during the period - 200.37

Utilised during the period - -

Balance at the end of the period 200.37 200.37

Notes

1. Trade receivables are dues in respect of goods sold or services rendered in the normal course of business.

2. Where no due date is specifi cally agreed upon,the normal credit period allowed by the Company is taken into consideration for computing the due date which may vary depending upon the

nature of goods or services sold and the type of customers, etc.

3. Trade receivables are further analysed as:

4. Movement in allowance for credit losses in respect of trade receivables:

In determining the allowances for doubtful trade receivables the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a

provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the

ageing of the receivables that are due and rates used in the provision matrix


respectively in which any director is a partner or a director or a member.


Notes

Earmarked cash and bank balances consist of fi xed deposit

1. Pledged againsat LC provided to East Coast Railway INR 149 Lakh

2. Pledged against Bank guarantee issued to different statutory authorities: INR 15,928.21 Lakh

Details of Fixed Deposits pledged against Bank Guarantee, LC & held on account of sale proceed of Seized Chrome Ore is as follows.

The cash and bank balances as above are primarily denominated and held in Indian rupees.

12. CASH AND CASH EQUIVALENTS & BANK BALANCES OTHER THAN (2.) ABOVE


Balances with banks - -

– Unrestricted Balance with banks in Current Account 8,003.16 4,751.30

Cash in hand 1.46 2.97

Others - -

Cash and cash equivalents as per balance sheet 8,004.62 4,754.27

Balances with banks (Other than Cash & Cash Equivalents above)

In Deposit Account- -

Less than 3 months 78,300.00 34,600.00

Less than 3 months (Earmarked) 16,077.21 1,976.21

Total 94,377.21 36,576.21

Total Cash and Bank Balances 1,02,381.83 41,330.48


Name of Bank Face Value of FD (₹ in Lakh)

2018-19 2017-18

UCO Bank, Govternment of Odisha Secretariate Br. 86 86

Sub Total 86 86

HDFC Bank Limited ,Samantarapur 6,893 8,000

HDFC Bank Limited ,Samantarapur 720 -

HDFC Bank Limited ,Saheed Nagar 15,000 9,138





HDFC Bank Limited ,Saheed Nagar

- 4,500

Sub Total 50,751 49,638

Andhra Bank, Main Branch 151 90

Andhra Bank, Main Branch - 90


Sub Total 151.00 270.00

Andhra Bank,OMC Campus Branch 5,936 5,630

Andhra Bank,OMC Campus Branch 3,133 -

Sub Total 9,070 5,630

Axis Bank 27

6,500

25.00

-

Sub Total 6,527 25

Canara Bank - 2,976

Sub Total - 2,976

ICICI Bank, Sriya Square 5,000 5,000

Sub Total 5,000 5,000

State Bank of India,Main Br, 149 149

Sub Total 149 149

Karnatak Bank 57 57

Sub Total 57 57

Syndicate Bank 50 58

41

Sub Total 50 99

Total 71,841 63,931


13. OTHERS


Advances to staff 1,305.67 825.14

Interest accrued on loans and deposits 11,832.44 7,748.00

Sundry Dues Realisable 920.92 640.26

Deposits with bank - -

More than three months maturity Value (Refer Note

No-13 ( ii) 66,248.51 81,000.00

More than three months maturity Value( Earmarked) 46,694.45 53,348.48

TOTAL 1,27,001.99 1,43,561.88

1. Earmarked deposit with Bank consist of Fixed deposits pledged against Bank guarentee issued to different statutory authorities : INR 46,694.45 Lakh.

2. Deposits with Banks (Unrestricted) includes FD amounting to INR 515.49 crores parked for a period more than 12 months.



14. CURRENT TAX ASSETS AND LIABILITIES


Current tax assets

Advance Tax/ TDS 6,36,664.68 1,23,890.61

Refund Receivable 3,770.63 -

Total 6,40,435.31 1,23,890.61

Less: Income tax Provision 5,60,704.17 42,692.10

Total 79,731.14 81,198.51

15. OTHER CURRENT ASSETS


Prepaid Expenses 1,338.78 496.52

Advances to suppliers & others 10,949.05 6,461.03


Balance with Government Authority 22,745.30 6,531.63

Total 35,037.95 13,494.00

Balance with Government Authority includes GST input credit.

16. EQUITY SHARE CAPITAL


Equity Share Capital 3,145.48 3,145.48

TOTAL 3,145.48 3,145.48

Authorised Share Capital

1,00,00,000 nos. of equity shares of ₹100/- each

(Previous year 1,00,00,000 nos. of equity shares

of ₹100/- each)

10,000.00

10,000.00

Issued , Subscribed & Paid up capital

comprises :

31,45,480 nos. of equity shares of ₹100/- each 3,145.48 3,145.48

Total 3,145.48 3,145.48

Notes 1. The movement in subscribed and paid up share capital is set out below:


No. of shares No. of shares

Ordinary shares of ₹100 each

At the beginning of the year 31,45,480 3145.48 31,45,480 3145.48

Shares allotted during the year - - - -

31,45,480.00 3,145.48 31,45,480.00 3,145.48

Shares in the company held by each shareholder holding more than 5% shares

2. The Corporation has only one class of share referred to as equity shares having a par value of INR 100. Each holder of equity shares is entitled to one vote per share. In the event of liquidation

of the Corporation, the holders of equity shares will be entitled to receive any of the remaining assets of the corporation, after distribution of all preferential amounts. However, no such

preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Name of Shareholder As at March 31, 2019 (₹ in Lakh) As at March 31, 2018 (₹ in Lakh)

Hon’ble Governor of Odisha

No. of Shares Held

( Face value of ₹100 each)% of Total Shares

No. of Shares Hel

d ( Face

value of ₹100 each)

% of Total Shares

31,45,390 99.9971 31,45,390 99.9971


17. OTHER EQUITY


General Reserve (Refer Note No-17-a) 2,30,802.84 2,30,802.84

Retained earnings 3,28,266.33 3,10,459.11

Capital Reserve 1,770.68 1,770.68

Total 5,60,839.85 5,43,032.63

GENERAL RESERVE


Balance at the beginning of the year/period 2,30,802.84 2,30,802.84

Movements - -

Balance at the end of the year/period 2,30,802.84 2,30,802.84

RETAINED EARNINGS


Balance at the beginning of the period 3,10,459.11 3,54,139.74

Profi t/Loss attributable to owners of the Company 78,988.03 (46,348.37)

Other comprehensive income arising from remeasurement

of defi ned benefi t obligation net of income tax (903.17) 2,667.74

Payment of dividends on equity shares 50,000.00 -

Tax On Dividend 10,277.64 -

Transfer to General Reserve - -

Balance at the end of the period 3,28,266.33 3,10,459.11

CAPITAL RESERVE


Balance at the beginning of the year/period 1,770.68 1,770.68

Movement during the year/period 0.00 -

Balance at the end of the year/period 1,770.68 1,770.68

General Reserve

Under the erstwhile companies Act 1956, a general reserve was created through an annual transfer of net profi t at a specifi ed percentage in accordance with applicable

regulations. Consequent to the introduction of companies Act 2013, the requirement to mandatory transfer a specifi ed percentage of net profi t to general reserve has

been withdrawn.

18. PROVISIONS


Employee Benefi ts

Gratuity - -

Leave Encashments (Net) 870.21 167.99

Payable on retirement 8,051.71 7,223.39

Others

Mine Closure 15,218.27 7,866.91

Total 24,140.19 15,258.29

NON CURRENT


19. TRADE PAYABLES


– Creditors for supplies and services

– Creditors for accrued wages and salaries

18,008.50

1,038.70

27,097.52

3,922.71

Total 19,047.20 31,020.23

Description As at March 31, 2019 (₹ in Lakh) As at March 31, 2018 (₹ in Lakh)

– The principal amount remaining unpaid to

supplier as at the end of the year

– The interest due thereon remaining unpaid to


– The amount of interest due and payable for

the period of delay in making payment (which

have been paid but beyond the appointed day

during the year) but without adding the interest

specifi ed under this Act

– The amount of interest accrued during the year

and remaining unpaid at the end of the year

-

-

-

-

-

-

-

-

20. OTHER FINANCIAL LIABILITIES


Others:

Security & Earnest Money Deposits 9,704.32 6,808.06

Capital Creditors 248.85 248.85

Total 9,953.17 7,056.91

21. OTHER CURRENT LIABILITIES


Governments & Others 2,407.22 5,108.84

Indirect Tax Payables 5,225.31 11,851.17

Customers 19,791.28 13,719.84

Other Statutory Dues Payable 244.13 144.58

Total 27,667.94 30,824.43

Party-wise advance received from Customers’ Account is under reconciliation. Upon crystallization & confi rmation, disclosure and report/return as applicable shall be made.


Employee Benefi ts

Gratuity - -

Leave Encashments 937.71 868.97

Payable on retirement 191.32 174.53

Total 1,129.03 1,043.50

CURRENT

1. Provision for employee benefi ts include long term benefi ts such as for early retirement, long service awards, leave encashment, retirement transportation allowance, retirement gift, retired

employee medical benefi t and six month salary in lieu of pension at the time of superannuation. (Disclosure at Note No 30)

2. The holder of mining lease has the responsibility to ensure that the protective measure including reclamation and rehabilitation works have been carried out in accordance with approved

mine closure plan. Accordingly the Corporation has created a provision to meet the expenses on account of Progressive Mines Closure Plan and Final Mines Closure Plan. Due to diffi culty/

uncertainty in making a proper estimation of expenses to be incurred at the time of closure of mines, the Corporation has considered INR 3.00 lakh/ha as mine closure liability being the

amount of fi nancial assurance provided to IBM in the form of Bank Guarantee(BG). The liability has been adjusted with infl ation and discounting factors.

3. The Board of Director in its 429th meeting held on 29.01.2019 have approved OMC Employees’ Superannuation benefi t scheme and recommended to the Government of Odisha (GoO) for

approval. Pending approval of GoO , the estimated Cash out fl ows to the Corpus of the scheme amounting to INR 580 crore has not been provided for in the Accounts.

1. The amount due to Micro and Small Enterprises as defi ned in the “The Micro, Small and Medium Enterprises Development Act, 2006” has been determined to the extent such parties have

been identifi ed on the basis of information available with the Company. The disclosures relating to Micro and Small Enterprises are as under:


1. Sale of chrome ore & concentrate includes excise duty of INR NIL ( previous year INR 219.32 lakh) levied on sale of chrome concentrate from COBP plant.



Supreme Court for allowing it to sell the ore.

Honorable Supreme Court, had directed while disposing I.A. No.3402 in I.A.No.2378 in 2164 with I.A. no.3433 in Writ Petition (Civil) No (s). 202 of 1995, to take steps to sell all the dumped

materials from the Gandhamardan Forest Area and deposit the sale proceeds in a Nationalized Bank and the amount can be released to OMC, only after obtaining Order from the Court.

There is no sale during current year (Previous year 1.15 lakh MT) of Iron Ore were sold to various agencies and accordingly nothing has been included in the turn over during the current year

(Previous year INR 731.80 lakh has been included in turnover) and deposited Royalty, Sales Tax & other Statutory payments with the Concerned Authorities. After deduction of the above

Statutory payments, which was deposited with the Concerned Authorities, the balance sale proceeds of INR NIL (Previous year INR 505.10 lakh) were deposited in Bank and treated in the

account as Restricted Balances with Bank under the head “other Non Current Assets” as matter is subjudice.

As on dtd 31.03.2019 the Company have sold 29.856 Lakh of Iron Ore from the said Gandhamardan Block amounting to INR 52,314.67 Lakh and included in its sale from Financial Year

2012-13 till 2018-19.

22. REVENUE FROM OPERATIONS


Sale of Ore

Iron Ore 2,55,954.11 1,70,094.17

Chrome Ore & Concentrate 1,35,352.94 1,15,197.63

Manganese Ore - 16.80

Bauxite Ore 13,897.47 -

4,05,204.52 2,85,308.60

23. OTHER INCOME

Particulars

For the Period Ended March 31, 2019 (₹ in Lakh) For the Period Ended March 31, 2018 (₹ in Lakh)

Interest Income

Interest income from Bank Deposits. 17,176.22 18,205.28

Interest income from other fi nancial assets. 14,555.07 8,715.02

31,731.29 26,920.30

Other non-operating income (net of expenses

directly attributable to such income) - -

Rental Income 46.56 53.06

Reconciliation effect of old balances including write off 7,929.44 707.56

Other Miscellaneous Income 3,857.37 3,748.68

11,833.37 4,509.30

Total 43,564.66 31,429.60

Identifi ed non moving outstanding Credit balances appearing under various head of account have been reconciled and transferred to income.

24. CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK IN TRADE & WORK IN PROGRESS


Change in Ore Stock

A. Opening Stock

Iron Ore 45,914.81 41,791.83

Chrome Ore & Concentrate 14,342.78 14,336.27

Manganese Ore 123.92 146.15

Bauxite Ore 244.86 -

Total (A) 60,626.37 56,274.25

B. Closing Stock

Iron Ore 49,413.81 45,914.81



Bauxite Ore 2,821.01 244.86

Total (B) 66,460.76 60,626.37

Net Changes (A-B) (5,834.39) (4,352.12)


25. EMPLOYEE BENEFIT EXPENSE


Salaries and Wages 17,030.10 21,807.77

Contribution to provident and other funds 2,385.50 2,807.63

Staff Welfare expenses 3,346.99 2,091.15

Total 22,762.59 26,706.55

26. FINANCE COSTS

Particulars

For the Period Ended March 31, 2019(₹ in Lakh) For the Period Ended March 31, 2018 (₹ in Lakh)

Interest costs

Interest on bank overdrafts and loans 546.57 848.50

Other expense ( Bank Commission & Charges) 4.49 24.35

Total interest expenses for fi nancial liabilites. 551.06 872.85

Exchange differences losses - -

Total 551.06 872.85

During the year funds have been borrowed to meet the immediate requirement on short term basis.

27. OTHER EXPENSES

Particulars For the Period Ended March 31, 2019 (₹ in Lakh) For the Period Ended March 31, 2018 (₹ in Lakh)

1. Production and Processing Expenses

Ore Raising 54,193.19 38,159.31

Transportation 3,941.80 1,595.68

Machinery Hire Charges 16.04 261.21


Repair & Maintenance to Machinery 15.60 13.00

Prospecting Expenses 5.95 9.76

Exploration Expenses 958.56 514.97

Dereservation Plan 0.07 -

Afforestation 25.65 176.38

Forest Environment Expenses 10.37 -

Mining Plan Fees 135.92 166.86

Mine Closure Liability 7,351.36 3,575.71

Consent Fees 89.38 81.19

Mine Environment 143.04 81.21

Safety Week Expense 86.21 18.22

Maintenance of Lease-Hold Area 397.84 37.61

Compensation for Excess Mining 69,361.16 2,09,512.10


1,37,330.07 2,54,784.02

2. Stores and spares consumed

Explosives 0.09 0.88

Drilling Accessories Consumed 2.07 4.77

Safety equipment consumed 16.23 13.74



Provision / Written back against non-moving stores

and spares (652.04) 101.30

Provision against slow-moving stores and spares 455.45 3.26

Mining Tools Consumed 0.97 1.37

Machinery Spare Consumed 27.97 31.98

Machine Insurance 9.73 6.13

Other Store Consumed 55.29 64.29


Laboratory Consumed 0.70 0.19

Tyre Tube Battery consumed 14.64 9.88

Motor Vehicle Spares Consumed 0.00 0.17

Electrical Store Consumed 42.37 29.19

663.02 860.65

3. Administrative Expenses

Travelling expenses

– Domestic 120.58 115.50

– Directors-Domestic 9.35 10.08

– Directors-Foreign 10.89 11.73

Auditor’s Remuneration

– For Statutory Audit 6.60 8.20

– For Tax Audit 1.65 2.05

– For Certifi cation on CFS & Reporting on ICOFR 2.00 2.00

Payment to Cost Auditors 1.50 1.50

Fees & Tariff 92.26 85.85

Repair & Maintenance to Building 1,308.10 795.24

Repair & Maintenance to Others 548.89 339.48

Annual Maintenance Contract 74.50 35.25

House Keeping Expenses 7.93 14.04

Rent 394.66 269.37

Rates & Taxes 26.02 21.95

Insurance 0.38 0.11

Motor Vehicle Insurance 10.87 11.29

Dead Rent 519.93 564.63

Motor Vehicle Tax 6.19 7.77

Printing & Stationary 122.93 63.47

Telephone & Postage 35.63 29.41

Periodicals & Magazines 4.96 3.49

Hire Charges 1,254.85 948.48

ERP/SAP Expenses 1,145.27 578.15

Guest House Expenses 26.08 27.07

Survey Expense - 2.43

Watch & Ward 4,325.65 3,749.29

Consultancy Charges 447.00 360.06


Donation 12,016.10 7,007.50

Electricity Charges of Offi ces 47.95 49.99

22,725.75 15,323.05



4. Selling & Distribution

Royalty 89,214.55 50,593.69

User Fees 199.32 131.92

Contribution to District Mineral Foundation 26,764.36 14,982.01

Contribution to National Mineral Exploration Trust 1,784.29 998.80

Service Tax on Rotalty, DMF & NMET - 9,097.66

Analysis Charges 451.08 282.88

Selling expenses 283.62 247.77

Advertisement & Publicity 227.45 4,374.51

Transportation,Railway Freight, Wagon Loading,Plot

Rent, etc. 2,705.85 2,097.98

1,21,630.52 82,807.22

5. Other Expenses

Diminution of Current Assets - 6.94

Provision / Written back for Inventories, Claims (8.56) 7,034.02

Profi t /Loss on Sale/Discard/Surveyed of Assets (2.17) (1.27)

Bad Debts Provision - 200.37

Impairment Stock 153.71 -


Swachhata Pakhwada 1.97 3.69

Sustainable Development 7.38 0.48

Amortisation of Land 4.82 4.82

Reconciliation effect of old balances 9.29 285.60

Sponsorship 3,735.15 1,126.14

Peripherial Development Expenses 6,231.61 3,272.59

Corporate Social Responsibilty (CSR) Expenses 1,009.18 2,937.89

Rehabilitation & Resettlement Expenses 116.25 -

Other Miscellaneous Expenses 262.82 171.96

11,956.33 15,043.23

Total (1+2+3+4+5) 2,94,305.69 3,68,818.17

During the current year, the Corporation has paid an amount of INR 693.61 Crore towards compensation for consent to operate and mining plan violation (Previous year INR 2,095.12 Crore towards

compensation for excess mining of Iron Ore and Manganese Ore for environmental clearance and forest clearance as per direction of the Hon’ble Supreme Court of India.

In respect of compensation for forest clearance and environmental clearance of South Kaliapani & Sukrangi mines amounting to INR 1,690.00 Crore has been disclosed under contingent liability

vide Note No 29- as the matter is subjudice.


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alia

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ur, IN

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xecutive

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ineer

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Wate

r charg

es o

f S

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pani, K

alia

pani, S

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ng

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din

gam

ali.


ParticularsGratuity

(₹ in Lakh)

Leave

Surrender

(₹ in Lakh)

Gift to retired

employees

(₹ in Lakh)

Medical benefi t to

retired employees

(₹ in Lakh)

Six months salary

in lieu of pension

(₹ in Lakh)

Present value of defi ned benefi t obligations as at 01.04.2018 10,808.37 8,950.04 256.70 1,066.90 6011.01

Current Service cost 754.89 37.17 51.03 104.58 80.22

Interest cost 747.60 655.12 18.27 76.66 433.81

Actuarial gain/loss on obligations due to Change in Financial Assumption 161.28 156.27 2.90 11.78 146.44

Actuarial gain/loss on obligations due to Unexpected Experience 614.51 461.14 (67.82) (48.39) 605.14

Benefi ts Paid 1,680.68 430.31 26.18 89.65 453.70

Present value of defi ned benefi t obligations as at 31.03.2019 11,405.97 9,829.42 234.91 1,121.89 6,822.92

2. As against gratuity liabilty of INR 11,405.97 lakh and leave surrender liability of INR 9,829.42 Lakh as at 31.03.2019, the company has plan assets of the fund amounting to INR 1,2911.43 Lakh

and INR 8,021.50 Lakh towards gratuity and leave surrender respectively. The other defi ned benefi t obligations are unfunded.

3. Table showing changes in Fair Value of Plan Assets in respect of Gratuity and Leave Surrender

Partculars Gratuity (₹ in Lakh) Leave Surrender (₹ in Lakh)

Fair value of Plan Assets at Beginning of period 13,068.92 7,913.08

Interest Income 980.17 609.31

Employer Contributions 505.46 -

Benefi ts Paid 1,680.68 430.31

Return on Plan Assets excluding Interest Income 37.55 (70.57)

Fair value of Plan Assets at End of measurement period 12,911.43 8,021.50

ParticularsGratuity

(₹ in Lakh)

Leave

Surrender

(₹ in Lakh)

Gift to retired

employees

(₹ in Lakh)

Medical benefi t to

retired employees

(₹ in Lakh)

Six months salary

in lieu of pension

(₹ in Lakh)


Net Interest cost (232.57) 45.81 18.27 76.66 433.81

Actuarial gain/loss on obligations due to Change in Financial

Assumption and unexpected experience - 687.98 - - -

Present value of defi ned benefi t obligations as at 31.03.2019 522.32 770.96 69.30 181.24 514.03

4. Table showing Expenses recognised in the Statement of Profi t & loss Account for the year ended 31.03.2019

Particulars

Actuarial gain(-) / loss(+) on obligations due to Change in Financial Assumption 322.41

Actuarial gain(-) / loss(+) on obligations due to Unexpected Experience 1,103.45

Total Acturial gain (-) / Loss (+) 1,425.85

Return on Plan Assets excluding Interest Income 37.55

Balance at the end of the period 1,388.30

Net (Income)/Expense (+) for the period recognised in OCI 1,388.30

5. Table Showing Other Comprehensive Income in the Statement of Profi t & Loss for the year ended 31.03.2019

30. EMPLOYEE BENEFITS

1. Table showing Reconciliation of present value of defi ned benefi t Obligations

1. Defi ned Contribution Plan

a. Provident fund - “In accordance with Indian law, eligible employees of the Company are entitled to receive

benefi ts in respect of provident fund, a defi ned contribution plan, in which both employees and the Company

make monthly contributions at a specifi ed percentage of the covered employees’ salary. The contributions, as

specifi ed under the law, are made to the provident fund set up as an irrevocable trust by the Company”

2. Defi ned benefi t plans

b. Retiring gratuity - The Company has an obligation towards gratuity, a defi ned benefi t retirement plan covering

eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while

in employment or on termination of employment as per the Gratuity Act 1972. Vesting occurs upon completion

of fi ve years of service. The Company makes annual contributions to Life Insurance Corporation of India. The

Company accounts for the liability for gratuity benefi ts payable in the future based on an actuarial valuation.

The provisions towards gratuity, leave surrender, gift to retired emploees, medical benefi t to retired employees

and six months salary in lieu of pension as Superannuation Benefi t on superannuation are made by actuarial

valuation in terms of provisions of Ind As-19.


Particulars Gratuity Leave SurrenderGift to retired

employees

Medical benefi t to

retired employees

Six months salary in

lieu of pension

Discount Rate 7.50% 7.50% 7.50% 7.50% 7.50%

Expected Return on Plan Asset 7.50% 7.50% N/A N/A N/A

Rate of Compesation Increase (Salary Infl ation) 10.00% 10.00% N/A 10.00% 10.00%

Pension Increase Rate - N/A N/A N/A N/A

Average Expected future Service (Remaining

Working Life)11 11 10 10 9

Mortality TableIALM 2006-2008

Ultimate

IALM 2006-2008

Ultimate

IALM 2006-2008

Ultimate

IALM 2006-2008

Ultimate

IALM 2006-2008

Ultimate

Super Annuation at age-Male 60 60 60 60 60

Super Annuation at age-FeMale 60 60 60 60 60

Early Retirement & Disablement (All Causes

Combined)

1% to 3%

depending on age

1% to 3%

depending on age

1% to 3%

depending on age

1% to 3%

depending on age

1% to 3% depending

on Age

Voluntary Retirement Ignored - Ignored Ignored Ignored Ignored

6. Table Showing Plan Assumptions considered in Actuarial Valuation for the year ended 31.03.2019

Particulars Gratuity Leave Surrender Gift to retired employeesMedical benefi t to retired

employees


lieu of pension

Age Mortality (Per Annum) Mortality (Per Annum) Mortality (Per Annum) Mortality (Per Annum) Mortality (Per Annum)

25 0.000984 0.000984 0.000984 0.000984 0.000984

30 0.001056 0.001056 0.001056 0.001056 0.001056

35 0.001282 0.001282 0.001282 0.001282 0.001282

40 0.001803 0.001803 0.001803 0.001803 0.001803

45 0.002874 0.002874 0.002874 0.002874 0.002874

50 0.004946 0.004946 0.004946 0.004946 0.004946

55 0.007888 0.007888 0.007888 0.007888 0.007888

60 0.011534 0.011534 0.011534 0.011534 0.011534

65 0.0170085 0.0170085 0.0170085 0.0170085 0.0170085

70 0.0258545 0.0258545 0.0258545 0.0258545 0.0258545

ParticularsGratuity

(₹ in Lakh)

Leave

Surrender

(₹ in Lakh)

Gift to retired

employees

(₹ in Lakh)

Medical benefi t to

retired employees

(₹ in Lakh)

Six months salary

in lieu of pension

(₹ in Lakh)

1 1,192.70 972.24 5.80 90.11 102.45

2 1,241.11 1,021.70 25.25 94.22 455.78

3 1,411.26 1,168.20 29.59 99.77 590.52

4 1,406.39 1,158.18 31.15 104.76 679.42

5 1,225.63 986.48 31.92 109.58 686.49

6 to 10 5,930.06 4,774.31 126.63 577.73 2,896.73

More than 10 years 10,538.22 12,110.62 177.07 1,554.45 16,645.79

Total Undiscounted Payments Past and Future Service - - - - -

Total Undiscounted Payments related to Past Service 22,945.37 22,191.74 427.41 2,630.61 22,057.17

Less Discount For Interest 11,539.40 12,362.32 192.50 1,508.72 15,234.24

Projected Benefi t Obligation 11,405.97 9,829.42 234.91 1,121.89 6,822.92

8. Table Showing Benefi t Information Estimated Future Payments (Past service)

7. Table Showing Mortality


31. FINANCIAL INSTRUMENTS

Capital Management - The Company’s capital

management is intended to create value for

shareholders by facilitating the meeting of long

term and short term goals of the Company.

The Company determines the amount of capital

required on the basis of annual business plan,

coupled with long term and short term strategic

investing plan. The funding requirements are met

through equity, convertible and non- convertible

debt securities, and other short term and long

term borrowings. The Company’s policy is aimed

at combination of short term and long term

borrowings.

The Company monitors the capital structure on the

basis of net debt to equity ratio and maturity profi le

of the overall debt portfolio of the Company.

Disclosure on Financial Instruments

This section gives an overview of the signifi cance

of fi nancial instruments for the Company and

provides additional information on balance sheet

items that contain fi nancial instruments.

Financial assets and liabilities

The following table presents the carrying amount

and fair value of each category of fi nancial assets

& liabilities as at March 31, 2019


(₹ in Lakh)

Amortised

cost

(₹ in Lakh)

Derivative instruments

other than in hedging

relationship (₹ in Lakh)

Equity instruments classifi ed

as fair value through other

comprehensive income

(₹ in Lakh)

Classifi ed as fair

value through

statement of profi t

& loss (₹ in Lakh)

Total Carrying

Value

(₹ in Lakh)

Total Fair Value

Financial assets

(₹ in Lakh)

Financial assets

Investments - - - - - -

Loans 66,887.70 - - - 66,887.70 66,887.70

Trade receivables 10,765.64 - - - 10,765.64 10,765.64

Other fi nancial assets 1,27,001.99 - - - 1,27,001.99 1,27,001.99

Cash and bank balances 1,02,381.83 - - - 1,02,381.83 1,02,381.83

Total fi nancial assets 3,07,037.14 - - - 3,07,037.14 3,07,037.14

Financial liabilities

Borrowings - - - - - -

Trade payables 19,047.20 - - - 19,047.20 19,047.20

Other fi nancial liabilities 9,953.17 - - - 9,953.17 9,953.17

Total fi nancial liabilities 29,000.37 - - - 29,000.37 29,000.37


(₹ in Lakh)

Amortised

cost

(₹ in Lakh)

Derivative

instruments other

than in hedging

relationship

(₹ in Lakh)




(₹ in Lakh)

Classifi ed as fair value

through statement of

profi t & loss (₹ in Lakh)

Total Carrying

Value

(₹ in Lakh)

Total Fair Value

Financial assets

(₹ in Lakh)

Financial assets

Investments


Loans 94,386.56 - - - 94,386.56 94,386.56


Cash and bank balances 41,330.48 - - - 41,330.48 41,330.48




Trade payables 31,020.23 - - - 31,020.23 31,020.23




As at March 31, 2019 (₹ in Lakh)

Carrying amount Contractual cash fl ows Less than 1 year Between 1 - 5 years More than 5 years

Non- derivative fi nancial liabilities

Borrowings including interest thereon - - - - -

Trade payables 19,047.20 19,047.20 19,047.20 - -

Other fi nancial liabilities 9,953.17 9,953.17 9,953.17 - -

Total nonderivative fi nancial liabilities 29,000.37 29,000.37 29,000.37 - -





Trade payables 31,020.23 31,020.23 31,020.23 - -



Financial instruments that are measured

subsequent to initial recognition at fair value,

grouped into Level 1 to Level 3, as described

below:

Quoted prices in an active market (Level 1):

This level of hierarchy includes fi nancial assets

that are measured by reference to quoted prices

(unadjusted) in active markets for identical assets

or liabilities. This category consists of investment

in quoted equity shares, quoted corporate debt

instruments and mutual fund investments.

Valuation techniques with observable inputs

(Level 2): This level of hierarchy includes fi nancial

assets and liabilities, measured using inputs other

than quoted prices included within Level 1 that are

observable for the asset or liability, either directly

(i.e., as prices) or indirectly (i.e., derived from

prices). This level of hierarchy includes Company’s

over-the-counter (OTC) derivative contracts.

Valuation techniques with signifi cant

unobservable inputs (Level 3): This level of

hierarchy includes fi nancial assets and liabilities

measured using inputs that are not based on

observable market data (unobservable inputs). Fair

values are determined in whole or in part, using

a valuation model based on assumptions that

are neither supported by prices from observable

current market transactions in the same instrument

nor are they based on available market data. The

main items in this category are investment in

unquoted equity shares, measured at fair value.

The short-term fi nancial assets and liabilities are

stated at amortized cost which is approximately

equal to their fair value.

Financial risk management

In the course of its business, the Company is

exposed primarily to interest rates, liquidity and

credit risk, which may adversely impact the fair

value of its fi nancial instruments.

The Company has a risk management policy which

covers the risks associated with the fi nancial

assets and liabilities such as interest rate risks and

credit risks. The risk management framework aims

to:

1. Create a stable business planning

environment by reducing the impact of

currency and interest rate fl uctuations on the

Company’s business plan.

2. Achieve greater predictability to earnings

by determining the fi nancial value of the

expected earnings in advance.

3. Market Risk

Market risk is the risk of any loss in future

earnings, in realizable fair values or in future cash

fl ows that may result from a change in the price

of a fi nancial instrument. The value of a fi nancial

instrument may change as a result of changes in

the interest rates, foreign currency exchange rates,

equity price fl uctuations, liquidity and other market

changes. Future specifi c market movements

cannot be normally predicted with reasonable

accuracy.

Credit Risk

Credit risk is the risk of fi nancial loss arising

from counter part failure to repay or service

debt according to the contractual terms or

obligations. Credit risk encompasses both the

direct risk of default and the risk of deterioration of

creditworthiness as well as concentration risks.

Liquidity Risk

Liquidity risk refers to the risk that the Company

cannot meet its fi nancial obligations. The objective

of liquidity risk management is to maintain

suffi cient liquidity and ensure that funds are

available for use as per requirements.

The following table shows a maturity analysis

of the anticipated cash fl ows including interest

payable for the Company’s nonderivative fi nancial

liabilities on an undiscounted basis, which

therefore differ from both carrying value and fair

value.


TransactionsSubsidiaries

(₹ in Lakh)

Associates and

Joint ventures

(₹ in Lakh)

Key Management

Personnel

(₹ in Lakh)

Relatives of Key

Management

Personnel (₹ in Lakh)

Trust

(₹ in Lakh)

Government

of Odisha

(₹ in Lakh)

Sale of goods (NINL)

Financial Year 2018-19 - 25,852.32 - - - -

Financial Year 2017-18 - 10,840.27 - - - -

Dividend paid

Financial Year 2018-19 - - - - - 50,000.00

Financial Year 2017-18 - - - - - -

Contributions made

Financial Year 2018-19 - - - - 2,519.26 -

Financial Year 2017-18 - - - - 2,121.50 -

Interest on loan given

Financial Year 2018-19 - 1,979.77 - - - -

Financial Year 2017-18 - 2,232.22 - - - -

Interest on Sundry Debtors

Financial Year 2018-19 - 1,221.14 - - - -

Financial Year 2017-18 - 168.24 - - - -

Finance provided

FY 2017-18 - - - - - -

FY 2016-17 - - - - - -

Purchase of investments

Financial Year 2018-19 19.10 - - - - -

Financial Year 2017-18 6.00 1,822.00 - - - -

Provision for impairment of Investments

Financial Year 2018-19 - - - - - -

Financial Year 2017-18 - - - - - -

Remuneration

Financial Year 2018-19 - - 123.24 - - -

Financial Year 2017-18 - - 69.82 - - -

Outstanding receivables

As on 31.03.2019 1.06 26,141.94 - - - -

As on 31.03.2018 1.06 26,129.90 - - - -

Outstanding paybles

As on 31.03.2019 - - - - 288.18 -

As on 31.03.2018 - - - - 274.30 -

32. RELATED PARTY TRANSACTIONS

OMC is controlled by the government of Odisha. Government of Odisha holds 100% ownership interest in OMC including and as on March 31, 2019. The Company’s

related parties principally consist of its subsidiaries, joint ventures, associates, Contrubutory Provident Fund, key management personel and Gratuity Trust and

Government of Odisha. The Company routinely enters into transactions with these related parties in the ordinary course of business at market rates and terms.


Balance as on 31.03.2018 73,97,91,971

Additional Provision Recognised 16,54,00,013

Reduction arising from Payments 8,08,88,975

Balance as at 31.03.2019 82,43,03,009

Balance as on 31.03.2018 89,50,03,952



Balance as at 31.03.2019 98,29,42,019

Balance as on 31.03.2018 1,04,37,375.00

Additional Provision Recognised 19,12,381.00

Reduction arising from Payments 27,72,215.00

Balance as at 31.03.2019 95,77,541.00

Balance as on 31.03.2018 78,66,91,000



Balance as at 31.03.2019 1,52,18,26,918

Movement of Leave Encashment

Movement of Retirement Benifi t Movement of Provisions made for Employee Loans and Advances

Movement of Other Provisions

33. MOVEMENT OF PROVISIONS


CONSOLIDATED FINANCIALSINDEPENDENT AUDITOR’S REPORT

TO THE GOVERNOR OF ODISHA / MEMBERS OF THE ODISHA MINING CORPORATION LIMITED.

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS

OPINION

We have audited the accompanying consolidated

fi nancial statements of The Odisha Mining

Corporation Limited (“the Company”), which

comprise the Balance Sheet as at March 31, 2019,

and the consolidated Statement of Profi t and

Loss (including Other Comprehensive Income),

the consolidated Statement of Changes in Equity

and the consolidated Statement of Cash Flows

for the year then ended and Notes to the fi nancial

statements, including a summary of the signifi cant

accounting policies and other explanatory

information.(hereinafter referred to as “the

consolidated fi nancial statements”).

In our opinion and to the best of our information

and according to the explanations given to us, the

aforesaid standalone fi nancial statements give the

information required by the Companies Act, 2013

in the manner so required and give a true and fair

view in conformity with the accounting principles

generally accepted in India, of the state of affairs

of the Company as at March 31, 2019, and its

profi t/loss, changes in equity and its cash fl ows for

the year ended on that date.

BASIS FOR OPINION

We conducted our audit in accordance with the

Standards on Auditing (SAs) specifi ed under

section 143(10) of the Act. Our responsibilities

under those Standards are further described in

the Auditor’s Responsibilities for the Audit of the

Financial Statements section of our report. We

are independent of the Company in accordance

with the Code of Ethics issued by the Institute of

Chartered Accountants of India together with the

ethical requirements that are relevant to our audit

of the fi nancial statements under the provisions

of the Act and the Rules thereunder, and we

have fulfi lled our other ethical responsibilities in

accordance with these requirements and the Code

of Ethics. We believe that the audit evidence we

have obtained is suffi cient and appropriate to

provide a basis for our audit opinion.

INFORMATION OTHER THAN THE

CONSOLIDATED FINANCIAL STATEMENTS

AND AUDITOR’S REPORT THEREON


for the preparation of the other information. The

other information comprises the information

included in the Management Discussion and

Analysis, Board’s Report including Annexures

to Board’s Report, Business Responsibility

Report, Corporate Governance and Shareholder’s

Information, but does not include the consolidated

fi nancial statements and our auditor’s report

thereon.

Our opinion on the consolidated fi nancial

statements does not cover the other information

and we do not express any form of assurance

conclusion thereon.

In connection with our audit of the consolidated

fi nancial statements, our responsibility is to read

the other information and, in doing so, consider

whether the other information is materially

inconsistent with the consolidated fi nancial

statements or our knowledge obtained during the

course of our audit or otherwise appears to be

materially misstated.

If, based on the work we have performed, we

conclude that there is a material misstatement of

this other information; we are required to report

that fact. We have nothing to report in this regard.

RESPONSIBILITIES OF MANAGEMENT AND

THOSE CHARGED WITH GOVERNANCE FOR

THE CONSOLIDATED FINANCIAL STATEMENTS


for the matters stated in section 134(5) of

the Act with respect to preparation of these

consolidated fi nancial statements in terms of

the requirements of the Act, that give a true and

fair view of the consolidated fi nancial position,

consolidated fi nancial performance including other

comprehensive income, consolidated changes

in equity and consolidated cash fl ows of the

Company including its subsidiary, associate and

jointly controlled entities in accordance with the

accounting principles generally accepted in India,

including the Indian Accounting Standards (Ind AS)

specifi ed under Section 133 of the Act, read with

relevant rules made thereunder.

The respective Board of Directors of the Company

and its subsidiary, associate and jointly controlled

entities are responsible for maintenance of

adequate accounting records in accordance with

the provisions of the Act for safeguarding their

assets and for preventing and detecting frauds and

other irregularities; the selection and application of

appropriate accounting policies; making judgments

and estimates that are reasonable and prudent;

and the design, implementation and maintenance

of adequate internal fi nancial controls, that were

operating effectively for ensuring the accuracy

and completeness of the accounting records,

relevant to the preparation and presentation of

the consolidated fi nancial statements that give

a true and fair view and are free from material

misstatement, whether due to fraud or error, which

have been used for the purpose of preparation

of the consolidated fi nancial statements by the

directors of the Company, as aforesaid.

AUDITOR’S RESPONSIBILITIES FOR THE

AUDIT OF THE CONSOLIDATED FINANCIAL

STATEMENTS

Our objectives are to obtain reasonable assurance

about whether the consolidated fi nancial

statements as a whole are free from material

misstatement, whether due to fraud or error, and to

issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance,

but is not a guarantee that an audit conducted in

accordance with SAs will always detect a material

misstatement when it exists. Misstatements

can arise from fraud or error and are considered

material if, individually or in the aggregate, they

could reasonably be expected to infl uence the

economic decisions of users taken on the basis of

these consolidated fi nancial statements.

As part of an audit in accordance with SAs, we

exercise professional judgment and maintain

professional skepticism throughout the audit.

We also:

1. Identify and assess the risks of material

misstatement of the consolidated fi nancial

statements, whether due to fraud or error,

design and perform audit procedures

responsive to those risks, and obtain audit

evidence that is suffi cient and appropriate

to provide a basis for our opinion. The risk

of not detecting a material misstatement

resulting from fraud is higher than for one

resulting from error, as fraud may involve

collusion, forgery, intentional omissions,

misrepresentations, or the override of internal

control.

2. Obtain an understanding of internal fi nancial

controls relevant to the audit in order to

design audit procedures that are appropriate

in the circumstances. Under section 143(3)

(i) of the Act, we are also responsible for

expressing our opinion on whether the

company has adequate internal fi nancial

controls system in place and the operating

effectiveness of such controls.

3. Evaluate the appropriateness of accounting

policies used and the reasonableness of

accounting estimates and related disclosures

made by management

4. Conclude on the appropriateness of

management’s use of the going concern

basis of accounting and, based on the

audit evidence obtained, whether a material

uncertainty exists related to events or

conditions that may cast signifi cant doubt

on the Company’s ability to continue as

a going concern. If we conclude that a

material uncertainty exists, we are required

to draw attention in our auditor’s report to

the related disclosures in the consolidated

fi nancial statements or, if such disclosures

are inadequate, to modify our opinion. Our

conclusions are based on the audit evidence

obtained up to the date of our auditor’s

report. However, future events or conditions

may cause the Company to cease to

continue as a going concern.


5. Evaluate the overall presentation, structure

and content of the consolidated fi nancial

statements, including the disclosures,

and whether the consolidated fi nancial

statements represent the underlying

transactions and events in a manner that

achieves fair presentation.

6. Obtain suffi cient appropriate audit evidence

regarding the fi nancial information of

the companies or the business activities

amongst the companies to express an

opinion on the consolidated fi nancial

statements. We are responsible for the

direction, supervision, and performance of

the audit of the fi nancial statements of such

entities included in the consolidated fi nancial

statement.

Materiality is the magnitude of misstatements

in the consolidated fi nancial statements that,

individually or in aggregate, makes it probable

that the economic decisions of a reasonably

knowledgeable user of the fi nancial statements

may be infl uenced. We consider quantitative

materiality and qualitative factors in (i) planning

the scope of our audit work and in evaluating the

results of our work; and (ii) to evaluate the effect

of any identifi ed misstatements in the fi nancial

statements.

We communicate with those charged with

governance regarding, among other matters,

the planned scope and timing of the audit and

signifi cant audit fi ndings, including any signifi cant

defi ciencies in internal control that we identify

during our audit.

We also provide those charged with governance

with a statement that we have complied

with relevant ethical requirements regarding

independence, and to communicate with

them all relationships and other matters that

may reasonably be thought to bear on our

independence, and where applicable, related

safeguards.

OTHER MATTER

The Company’s share of net loss of Rs.11783.95

lakhs for the year ended 31st March, 2019, in

respect of the 1(One) jointly controlled entity M/s

Neelachal Ispat Nigam Limited (NINL), based on

fi nancial statements audited by other auditors.

Since 100% value of shares of NINL is impaired

in earlier years in consolidated statement and

NINL investment is shown as zero value in the

consolidated statement, no adjustment is made for

current year losses.

The fi nancial statements of 1 (One) subsidiary M/s

Odisha Mineral Exploration Corporation Limited

whose fi nancial statements refl ect total assets

Rs.669.23 Lakhs and total net assets Rs.42.51

Lakhs as at 31st March, 2019, total revenue as

NIL and net cash infl ow of Rs.616.45 Lakhs for

the year ended on that date considered as under

in the statement based on unaudited fi nancial

statements which has been furnished to us by the

management.

Name of the Company

Share of Net Profi t

for the year ended

31st March, 2019

(₹ in Lakh)

Share of Net Other

Comprehensive Income for the

year ended 31st March, 2019

(₹ in Lakh)

Share of

Total Profi t

Joint Ventures / Jointly

Controlled Unit- - -

Orissa Thermal Power

Corporation Limited 6.11 0 6.11

Nuagaon Coal Company

Limited 1.69 0 1.69

Angul Sukinda Railway

Limited 23.58 0 23.58

Haridaspur Paradip Railway

Company Limited2.56 2.56

Associate - - -

Mandakini B Coal Corporation

Limited0.54 0 0.54

The consolidated fi nancial statements include

the Company’s share of net profi t of Rs.34.48

lakhs for the year ended 31st March, 2019, in

respect of the 1 (One) associate and 5 (Five) jointly

controlled entities, whose fi nancial statements

have not been audited by us. These fi nancial

information which has been furnished to us by the

management is unaudited in respect of 2 (Two)

jointly controlled entities, namely, Orissa Thermal

Power Corporation Limited and Nuagaon Coal

Company Limited, and 1 (One) associate company,

namely, Mandakini B Coal Corporation Limited

and has not been prepared as per Ind AS in terms

of requirements of Companies Act, 2013 and our

opinion on the consolidated fi nancial statement in

so far as it relates to the amounts and disclosures

included in respect of these entities, is based

solely on such unaudited fi nancial information.

In our opinion and according to information and

explanations given to us by the Management,

this fi nancial information is not material to the

Company.

JOINT VENTURES AND ASSOCIATES


REPORT ON OTHER LEGAL AND REGULATORY

REQUIREMENTS

1. In respect of the directions and sub-

directions of the Comptroller and Auditor

General of India under section 143(5) of the

Act, we give in Annexure “A” to this report a

statement on the matters specifi ed therein

which includes 2 (two) jointly controlled

entities namely M/s Neelachal Ispat Nigam

Limited and M/s Haridaspur Paradip Railway

Company Limited. The Audit report of M/s

Angul Sukinda Railway Limited did not

contain the directions and sub-directions of

the Comptroller and Auditor General of India

under section 143(5) of the Act. In respect of

the other subsidiary, associates and jointly

controlled entities as consolidated fi nancial

statement is based solely on unaudited

fi nancial statements have been furnished to

us by the management.

2. As required by section 143(3) of the Act we

report that:

a. We have sought and obtained all the

information and explanations which to

the best of our knowledge and belief

were necessary for the purposes of

our audit of the aforesaid consolidated

fi nancial statements.

b. In our opinion, proper books of

account as required by law relating

to preparation of the aforesaid

consolidated fi nancial statements have

been kept so far as it appears from our

examination of those books and the

reports of the other auditors.

c. The Consolidated Balance Sheet,

the Consolidated Statement of

Profi t and Loss, the Consolidated

Statement of Changes in Equity and

the Consolidated Cash Flow Statement

dealt with by this Report are in

agreement with the relevant books of

account maintained for the purpose

of preparation of the consolidated

fi nancial statements.

d. In our opinion, the aforesaid

consolidated fi nancial statements

comply with the Indian Accounting

Standards specifi ed under Section

133 of the Act, read with relevant

rules made there-under Rule 7 of the

Companies (Accounts) Rules, 2014.

e. Section 164(2) of the Act regarding

disqualifi cation of directors is not

applicable to the Company by virtue

of Notifi cation No. G.S.R. 463(E) dated

05.06.2015 issued by the Ministry of

Corporate Affairs, Govt of India and on

the basis of the reports of the statutory

auditors of its subsidiary, associate and

jointly controlled entities incorporated

in India, none of the director of these

subsidiary, associate and jointly

controlled entities is disqualifi ed as on

31st March, 2019 from being appointed

as a director in terms of Section 164 (2)

of the Act.

f. With respect to the adequacy of

the internal fi nancial controls over

fi nancial reporting and the operating

effectiveness of such controls of the

Company including its subsidiary,

associate and jointly controlled entities

and the operating effectiveness of such

controls, refer to our separate report in

Annexure “B”.

g. With respect to the other matters to

be included in the Auditor’s Report

in accordance with Rule 11 of the

Companies (Audit and Auditors) Rules,

2014, as amended, in our opinion and

to the best of our information and

according to the explanations given

to us:

i. The Company has disclosed

the impact of pending litigations

on its fi nancial position in its

standalone fi nancial statements.

ii. The Company has made

provision, as required under the

applicable law or accounting

standards, for material

foreseeable losses, if any, on

long-term contracts including

derivative contracts.

iii. There have been no amounts

which were required to be

transferred to the Investor

Education and Protection Fund

by the Company.



FRN NO.315104E

Sd/-

CA. DEBASIS PARIDA

PARTNER

ICAI M. NO. 062867

The consolidated fi nancial statements does not

include the Company’s share of net loss/profi t for

the year ended 31st March, 2019, in respect of the

3 (Three) associates and 3 (Three) jointly controlled

entities, whose fi nancial statements have not been

prepared by the management. In our opinion and

according to information and explanations given to

us by the Management, this fi nancial information is

not material to the Company.

Our opinion on the consolidated fi nancial

statements, and our report on Other Legal and

Regulatory Requirements below, is not modifi ed

in respect of the above matters with respect to

our reliance on the work done by other auditor

and management as stated in the “other matter”

paragraph.

JOINT VENTURES AND ASSOCIATES

Joint Ventures / Jointly Controlled Unit

Rio Tinto Orissa Mining Pvt Limited

Kalinga Coal Mining Pvt Limited -Strike off in

record of ROC

Keonjhar Infrastructure Development Co Limited

Associate

Lanjigarh Schedule Area Development Fund

South West Orissa Bauxite Mining Pvt Limited -

Strike off in records of ROC

East Coast Bauxite Mining Co. Pvt Limited


ANNEXURE A: ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE

CONSOLIDATED FINANCIAL STATEMENTS OF THE ODISHA MINING CORPORATION LIMITED(Referred to in paragraph 2 under the heading of “Report on Other Legal and Regulatory Requirements” of our Report of even date)

Report on the directions under section 143(5) of the Companies Act’2013 by C&AG

Directions Response

Whether the company has clear title/lease deeds for freehold and

leasehold respectively? If not please state the area of freehold

and leasehold land for which title/lease deeds are not available?

The Company has clear title/lease deeds for freehold and leasehold land respectively wherever

the title/lease deeds are executed. The total freehold land held by the company is under

compilation. Out of 18407.62 Hect of lease hold land, lease deed extended for 5642.74

Hect and 9976.86 Hect are extended but SLD not yet executed, 2519.05 Hect are applied for

extension and 268.97 Hect applied for surrender. The company has been permitted by the

concerned authorities to carry on its operation on the said lease hold land where the extension

yet to be made.

Whether there are any cases of waiver/write off of debts/loans/

interest etc., if yes, the reasons there for and amount involved.

As informed by the management and based on records examined, there are 2 No.of ledgers

written off during the year amounting to Rs.9.29 lakh and 2 No.of ledgers written back during the

year amounting to Rs.7929.44 lakh.

Whether proper records are maintained for inventories lying

with third parties and assets received as gift/grants from the

Government or other authorities.

Proper records are maintained for inventories lying with third parties.

The Company has not received any asset as gift/grant(s) from Government or other authorities

during the year.

On the basis of our examination of books and records and according to the information and explanations given to us by the management of the Company, we report in

respect of The Odisha Mining Corporation Limited that:

In respect of Neelachal Ispat Nigam Limited (NINL) and Haridaspur Paradip Railway Company Limited , the report on the directions as specifi ed by C&AG

under section 143(5) of the Act, as reported by their respective auditors is as follows:

Directions Response

Whether the company has system in place to process all

the accounting transactions through IT system? If yes, the

implications of processing of accounting transactions outside IT

system on the integrity of the accounts along with the fi nancial

implications, if any, may be stated.

Neelachal Ispat Nigam Limited :

The company has IT system in place to process all the accounting transactions through the

system, but there are certain modules (namely, Sales, Payroll and stores) which operate on

standalone basis. Output of such modules are incorporated in the fi nance and accounts module

periodically. Steps are being taken by the management for complete integration of all modules.

Haridaspur Paradip Railway Company Limited :

As per our verifi cation and information and explanation given to us, the company is recording the

accounting transaction in IT system, that is, Tally ERP 9 package. We have not come across any

discrepancies. Therefore, any implications of processing of accounting transaction outside IT

system on the integrity of the accounts cannot be ascertained.

Whether there is any restructuring of an existing loan or cases of

waiver/write off of debts /loans/interest etc. made by a lender to

the company due to the company’s inability to repay the loan? If

yes, the fi nancial impact may be stated.

No, the companies have not availed any loan

Whether funds received/receivable for specifi c schemes from

central/ state agencies were properly accounted for/ utilized as

per its term and conditions? List the cases of deviation.

No, the companies have not received funds for specifi c schemes from central/ state agencies




FRN NO.315104E

Sd/-

CA. DEBASIS PARIDA

PARTNER

ICAI M. NO. 062867

In respect of the sub-directions under section 143(5) of the Act by C&AG for The Odisha Mining Corporation Limited, we report that:


Whether the Company’s pricing policy absorbs all fi xed and variable cost of

production as well as the allocation of overheads?Yes

Whether the Company has utilized the Government assistance for

technology up gradation/modernisation of its manufacturing process and

timely submitted the utilization certifi cates.

Not Applicable

Where the Company has fi xed norms for normal losses and a system for

evaluation of abnormal losses for the remedial action is in existence. Not Applicable

What is the system of valuation of by – products and fi nished products? List

out cases of deviation from its declared policy.No such by-products

Whether the effect of deteriorated stores and spares of closed mills been

properly accounted for in the books.Not Applicable

Whether the Company has effective system for physical verifi cation,

valuation of stock. Treatment of non-moving items and accounting the

effects of shortage / excess noticed during the physical verifi cation.

Refer Note 2.14 “Policies on inventories”, Note 9 and Note 10 to the fi nancial

statements. No such deviations noticed.

State the extent of utilization of plant and machinery during the year vis-a-

vis installed capacity.

Most of the plant and machineries utilized for mining is provided by excavation

contractors. In case of benefi ciation plants the same is closed during the year for

mining and environmental clearance.

Report on the cases of discounts / commission in regard to debtors and

creditors where the company has deviated from its laid down policy.No such instances noticed.

Whether the company has taken adequate measure to reduce the adverse

effect on environment as per established norms and taken up adequate

measures for the relief and rehabilitation of displaced people.

Yes

Whether the company has obtained the requisite statutory compliances that

was required under mining and environmental rules and regulations?

Yes, Mining: Requisite approval in respect of MP/SOM documents has been obtained

from IBM.

Environment: Requisite clearances have been obtained from MOEF & CC Gol and

SPCO, Odisha prior to the commencement of production.

Whether overburden removal from mines and backfi lling of mines are

commensurate with the mining activity?Mining activities are conducted as per approvals of MP/SOM obtained from IBM.

Whether the company has disbanded and discontinued mines, if so, the

payment of corresponding dead rent there against may be verifi ed.

Dead Rent as applicable are being paid from time to time in respect of leases where

mining is discontinued.

Whether the company’s fi nancial statements had properly accounted for the

effect of Rehabilitation Activity and Mine Closure plan?Yes


ANNEXURE B: ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE

CONSOLIDATED FINANCIAL STATEMENTS OF ODISHA MINNIG CORPORATION LIMITEDReport on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal fi nancial controls

over fi nancial reporting of THE ODISHA MINING

CORPORATION LIMITED (“the Company”) as of

March 31, 2019 in conjunction with our audit of the

consolidated fi nancial statements of the Company

for the year ended on that date.

MANAGEMENT’S RESPONSIBILITY FOR

INTERNAL FINANCIAL CONTROLS

The respective Board of Directors of the Company

and its subsidiary, jointly controlled companies,

which are companies incorporated in India, are

responsible for establishing and maintaining

internal fi nancial controls based on the internal

control over fi nancial reporting criteria established

by the Company considering the essential

components of internal control stated in the

Guidance Note on Audit of Internal Financial

Controls Over Financial Reporting issued by

the Institute of Chartered Accountants of India

(ICAI). These responsibilities include the design,

implementation and maintenance of adequate

internal fi nancial controls that were operating

effectively for ensuring the orderly and effi cient

conduct of its business, including adherence to the

respective company’s policies, the safeguarding of

its assets, the prevention and detection of frauds

and errors, the accuracy and completeness of the

accounting records, and the timely preparation of

reliable fi nancial information, as required under the


AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on the

Company’s internal fi nancial controls over fi nancial

reporting based on our audit. We conducted

our audit in accordance with the Guidance Note

on Audit of Internal Financial Controls Over

Financial Reporting (the “Guidance Note”) and

the Standards on Auditing, issued by ICAI and

deemed to be prescribed under section 143(10) of

the Companies Act, 2013, to the extent applicable

to an audit of internal fi nancial controls. Those

Standards and the Guidance Note require that we

comply with ethical requirements and plan and

perform the audit to obtain reasonable assurance

about whether adequate internal fi nancial

controls over fi nancial reporting was established

and maintained and if such controls operated

effectively in all material respects.

Our audit involves performing procedures to

obtain audit evidence about the adequacy of the


reporting and their operating effectiveness. Our

audit of internal fi nancial controls over fi nancial

reporting included obtaining an understanding of

internal fi nancial controls over fi nancial reporting,

assessing the risk that a material weakness

exists, and testing and evaluating the design and

operating effectiveness of internal control based

on the assessed risk. The procedures selected

depend on the auditor’s judgement, including the

assessment of the risks of material misstatement

of the fi nancial statements, whether due to fraud

or error.

We believe that the audit evidence we have

obtained and the audit evidence obtained by the

other auditors in terms of their reports referred to

in the other matters paragraph below, is suffi cient

and appropriate to provide a basis for our audit

opinion on the Company’s internal fi nancial

controls system over fi nancial reporting.

MEANING OF INTERNAL FINANCIAL


A company’s internal fi nancial control over

fi nancial reporting is a process designed to provide

reasonable assurance regarding the reliability of

fi nancial reporting and the preparation of fi nancial

statements for external purposes in accordance

with generally accepted accounting principles. A

company’s internal fi nancial control over fi nancial

reporting includes those policies and procedures

that (1) pertain to the maintenance of records that,

in reasonable detail, accurately and fairly refl ect

the transactions and dispositions of the assets of

the company; (2) provide reasonable assurance

that transactions are recorded as necessary to

permit preparation of fi nancial statements in

accordance with generally accepted accounting

principles, and that receipts and expenditures of

the company are being made only in accordance

with authorizations of management and directors

of the company; and (3) provide reasonable

assurance regarding prevention or timely detection

of unauthorized acquisition, use, or disposition of

the company’s assets that could have a material

effect on the fi nancial statements.

INHERENT LIMITATIONS OF INTERNAL

FINANCIAL CONTROLS OVER FINANCIAL

REPORTING

Because of the inherent limitations of internal

fi nancial controls over fi nancial reporting,

including the possibility of collusion or improper

management override of controls, material

misstatements due to error or fraud may occur

and not be detected. Also, projections of any

evaluation of the internal fi nancial controls over

fi nancial reporting to future periods are subject

to the risk that the internal fi nancial control over

fi nancial reporting may become inadequate

because of changes in conditions, or that

the degree of compliance with the policies or

procedures may deteriorate.




FRN NO.315104E

Sd/-

CA. DEBASIS PARIDA

PARTNER

ICAI M. NO. 062867

OPINION

In our opinion, the Company and its subsidiary,

jointly controlled entities, which are companies

incorporated in India, have, in all material respects,

an adequate internal fi nancial controls system

over fi nancial reporting and such internal fi nancial

controls over fi nancial reporting were operating

effectively as at March 31, 2019, based on the

internal control over fi nancial reporting criteria

established by the Company considering the

essential components of internal control stated in

the Guidance Note on Audit of Internal Financial

Controls Over Financial Reporting issued by the

Institute of Chartered Accountants of India.Institute

of Chartered Accountants of India.

OTHER MATTER

Our aforesaid report under Section 143(3)(i) of the

Act on the adequacy and operating effectiveness

of the internal fi nancial controls over fi nancial

reporting insofar as it relates to

1. 3 (Three) jointly controlled entities of the

Company, is based on the audit reports of

the respective companies on their internal

fi nancial controls wherein the auditors have

expressed an unmodifi ed opinion, and

2. 1 (One) subsidiary, 4 (Four) associates and

5 (Five) jointly controlled entities of the

Company, which are companies incorporated

in India, is based solely on unaudited

fi nancial statements as have been furnished

to us by the management.


CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2019

ParticularsNote

No.

Figures as at the end of the Currenreporting

period March 31, 2019 (₹ in Lakh)

Figures as at the end of the previous reporting period

March 31, 2018 (₹ in Lakh)

ASSETS

1. Non-current Assets

Property, Plant and Equipment 5 16,880.00 14,944.02

Capital work-in-progress 5 4,944.52 4,559.12

Other Intangible assets 5 (i) 39,256.84 39,411.88

Intangible assets under development 5 (ii) 11,751.49 14,009.84

Financial Assets - - -

– Investments 6 29,792.63 29,758.14

– Loans 7 40,221.86 51,282.93

Deferred tax assets (Net) 8 5,380.92 29,893.64

Other non-current assets 9 48,347.41 49,360.32

Total non-current assets - 1,96,575.67 2,33,219.89

2. Current Assets

Inventories 10 55,824.21 49,255.72

Financial Assets - - -

– Trade receivables 11 10,797.22 14,261.26

– Cash and cash equivalents 12 8,623.80 4,757.00

– Bank balances other than (ii) above 12 94,377.21 36,576.21

– Loans 7 26,665.84 43,103.63

– Others 13 1,27,001.99 1,43,561.88

Current Tax Assets (Net) 14 79,731.14 81,198.51

Other current assets 15 35,037.95 13,494.00

Total Current Assets - 4,38,059.36 3,86,208.21

TOTAL ASSETS (1+ 2) - 6,34,635.03 6,19,428.10


1. Equity

Equity Share capital 16 3,145.48 3,145.48

Other Equity 17 5,48,925.29 5,31,077.51

Total equity - 5,52,070.77 5,34,222.99

2. Liabilities

Non-current liabilities

Provisions 18 24,140.19 15,258.29

Deferred tax liabilities (Net) 8 - -

Total non-current liabilities - 24,140.19 15,258.29


ParticularsNote

No.

Figures as at the end of the Currenreporting

period March 31, 2019 (₹ in Lakh)

Figures as at the end of the previous reporting period

March 31, 2018 (₹ in Lakh)

Current liabilities

Financial Liabilities 19 - -

Borrowings 19 - -

Trade payables - - -

– Total outstanding dues of Micro

Enterprises & Small Enterprises- - -

– Total outstanding dues of creditors

other then Micro Enterprises & Small

Enterprises

- 19,053.47 31,020.23

Other fi nancial liabilities 20 10,571.34 7,056.91

Other current liabilities 21 27,670.23 30,826.18

Provisions 18 1,129.03 1,043.50

Total Current Liabilities - 58,424.07 69,946.82

TOTAL EQUITY AND LIABILITIES - 6,34,635.03 6,19,428.10





FRN:315104E



Partner



Date : 08.07.2019 Date : 08.07.2019


CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE PERIOD ENDED MARCH 31, 2019

Particulars Note No.Figures for the year ended March 31, 2019

(₹ in Lakh)

Figures for the year ended March

31, 2018 (₹ in Lakh)

1. Revenue from Operations 22 4,05,204.52 2,85,308.60

2. Other Income 23 43,564.66 31,429.59

3. Total Income (1 + 2) - 4,48,769.18 3,16,738.19

4. Expenses

Changes in inventories of fi nished goods,

Stock-in -Trade and work-in-progress24 (5,834.39) (4,352.12)

Employee benefi ts expense 25 22,762.59 26,706.55

Finance costs 26 551.06 872.85

Depreciation and amortization expense 5 11,024.95 10,825.85

Excise duty - - 219.55

Other expenses 27 2,94,305.69 3,68,818.17

Total expenses (4) - 3,22,809.90 4,03,090.85

5. Profi t/(loss) before exceptional items and tax (3 - 4) - 1,25,959.28 (86,352.66)

6. Exceptional Items - - -

7. Profi t/(loss) before tax (5 - 6) - 1,25,959.28 (86,352.66)

8. Share of profi t/(loss) of Associates - - -

9. Share of profi t/(loss) of Joint Ventures - 34.48 874.11

10. Share of profi t/(loss) of Subsidiary - 6.08 (4.44)

11. Less Tax expense: - - -

Current tax - 17,484.69 -

MAT - 10,745.77 -

Deferred tax (net off MAT Credit Entitlement) - 14,252.08 (43,916.37)

Taxes of earlier years - 4,488.71 3,912.09

46,971.25 (40,004.28)

12. Profi t/ (Loss) for the period from continuing

operations (8+9+10+11+12)- 79,028.60 (45,478.71)

13. Profi t / (loss) from discontinued operations - - -

14. Tax expense of discontinued operations - - -

15. Profi t / (loss) from discontinued operations (after tax)

(13-14)- - -

16. Profi t / (loss) for the period (12+15) - 79,028.60 (45,478.71)

17. Other Comprehensive Income - (903.17) 2,667.74

Items that will not be reclassifi ed to profi t or loss -

– Remeasurement of defi ned employee benefi t plans - (1,388.30) 2,667.74

Income tax relating to items that will not be reclassifi ed to

profi t or loss - 485.13 -

Items that will be reclassifi ed to profi t or loss - - -

Income tax relating to items that will

be reclassifi ed to profi t or loss- - -


Particulars Note No.Figures for the year ended March 31, 2019

(₹ in Lakh)

Figures for the year ended March

31, 2018 (₹ in Lakh)

18. Total Comprehensive Income for the period (XVI+XVII)

(Comprising Profi t/ (Loss) and Other Comprehensive

Income for the period)

- 78,125.42 (42,810.97)

19. Earnings per equity share (for continuing operation) - - -

Basic (₹) - 2,512.45 (1,361.03)

Diluted (₹) - 2,512.45 (1,361.03)

20. Earnings per equity share (for discontinued

operation): - - -

Basic (₹) - - -

Diluted (₹) - - -

21. Earnings per equity share (for discontinued and

continuing operations): - - -

Basic (₹) - 2,512.45 (1,361.03)

Diluted (₹) - 2,512.45 (1,361.03)





FRN:315104E



Partner



Date : 08.07.2019 Date : 08.07.2019


B. OTHER EQUITY

Reserves and Surplus (₹ in Lakh)

Capital reserve General Reserve Retained earnings

Balance as at April 1, 2017 1,770.68 2,30,802.84 3,41,314.96

Profi t for the year - - (45,478.71)

Other Comprehensive Income - - 2,667.74

Total Comprehensive Income - - (42,810.97)

Dividend (including tax on dividend) - - -



Profi t for the year - - 79,028.60

Other Comprehensive Income - - (903.17)

Total Comprehensive Income - - 78,125.42

Dividends (including tax on Dividends) - - (60,277.65)

Transfer of profi ts of the year to General Reserve - -


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31ST MARCH 2019

A. EQUITY SHARE CAPITAL


3,145.48 - 3,145.48


3,145.48 - 3,145.48





FRN:315104E



Partner



Date : 08.07.2019 Date : 08.07.2019


ParticularsFor the period ended March 31, 2019

(₹ in Lakh)

For the period ended March 31, 2018

(₹ in Lakh)

Cash fl ows from operating activities:

Profi t before taxes Adjustments for: 79,028.60 (45,478.71)

Finance costs recognised in profi t or loss 551.06 872.85

Investment income recognised in profi t or loss (31,731.29) (26,920.29)

Gain on disposal of property, plant and equipment (2.17) (1.27)

Depreciation and amortisation of non-current assets 11,024.95 10,825.85

Provision for write down of inventories (196.56) 111.48

Provision for Impairment of Investments - -

Operating profi t before working capital changes

Movements in working capital: - -

Increase in trade and other receivables 90,356.88 (1,38,574.23)

(Increase)/decrease in inventories (6,371.93) 7,511.70

(Increase)/decrease in other assets (20,531.04) (13,844.40)

(Decrease)/ Increase in trade and other payables (8,452.34) 7,782.78

Increase/(decrease) in provisions 8,068.70 6,523.53

(Decrease)/increase in Mine Closure Liability - -

(Decrease)/increase in other liabilities (3,155.94) 5,015.64

Cash generated from operations 1,18,588.92 (1,86,175.08)

Taxes Paid 25,980.10 (55,674.13)

Net Cash Flow from/(used in) Operating Activities 1,44,569.02 (2,41,849.21)

Cash fl ows from investing activities:

Payments for property, plant and equipment (10,935.43) (17,927.72)

Sale of property, plant and equipment 4.67 32.97

Payments to acquire fi nancial assets (34.48) (2,696.11)

Interest received 27,646.85 31,009.52

Repayment by Employees & Others 73.72 89.17

Repayment by Employees & Others 27,420.67 17,257.02

Payment for Loans to others - -

Payment for Investment in FD (1,24,049.51) 2,09,713.23

Net Cash Flow from/(used in) Investing Activities (79,873.51) 2,37,478.08

Cash fl ows from fi nancing activities:

Repayment of borrowings - -

Dividend Received on redeemable pref. Shares of Utkal Allumin - -

Dividends paid on redeemable cumulative preference shares - -

Dividends paid to owners of the Company (60,277.65) -

Interest paid (551.06) (872.84)

Net Cash Flow from/(used in) Financing Activities (60,828.71) (872.84)

Net Increase/(decrease) in cash or cash equivalents 3,866.80 (5,243.98)

Cash and cash equivalents at the beginning of the year 4,757.00 10,000.98

Cash and cash equivalents at the end of the year 8,623.80 4,757.00

CONSOLIDATED STATEMENT OF CASH FLOW FOR THE PERIOD ENDED MARCH 31, 2019





FRN:315104E



Partner



Date : 08.07.2019 Date : 08.07.2019


GENERAL INFORMATION


(“OMC”/”The Company”) was incorporated with

the objective of harnessing the mineral wealth of

the State of Odisha through exploration, extraction

as well as value addition. The measure minerals

mined by OMC are Chrome, Iron, Bauxite and

Manganese ore which caters to the requirements

of minerals based in industries such as Steel,

Sponge Iron, Pig Iron, Ferro Manganese, Ferro

Chrome, etc. OMC has been growing steadily

over these years and today it stands at the largest

state PSU in the mining sector of the country.

OMC has been classifi ed as a “Gold Category

PSU”, having an authorized capital of � 100 Crore

where Hon’ble Governor of Odisha holds 99.997%

of share capital. The headquarters of OMC are

located at Bhubaneswar. OMC together with

its subsidiaries, Joint Ventures and Associates

are herein after referred to as the “Group”. The

functional and presentation currency of the Groups

Indian Rupee (“INR”) which is the currency of the

primary economic environment in which the Group

operates.

The Group’s consolidated fi nancial statements are

approved for issue by the Company’s Board of

Directors on 8th July, 2019.

SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation

The consolidated fi nancial statements of the Group

have been prepared in accordance with Ind AS

and relevant provisions of the Companies Act,

2013.

The consolidated fi nancial statements have been

prepared under the historical cost convention with

the exception of certain assets and liabilities that

are required to be measured at fair values by Ind

AS. Fair value is the price that would be received

to sell an asset or paid to transfer a liability in an

orderly transaction between market participants at

the measurement date.

Historical cost is generally based on the fair value

of the consideration given in exchange for goods

and services.

All assets and liabilities have been classifi ed as

current or non-current as per Group’s operating

cycle and other criteria set out in Schedule-III of

the Companies Act 2013. Based on the nature of

business, the Group has ascertained its operating

cycle as 12 months for the purpose of Current or

non-current classifi cation of assets and liabilities.

ADOPTION OF NEW AND REVISED

STANDARDS

1. The Ministry of Corporate Affairs has

notifi ed The Companies (Indian Accounting

Standard) Amendment Rules, 2019 dated

30.03.2019 which inter-alia includes the new

standard on leases IndAS 116 replacing the

existing standard IndAS 17, to be effective

from 01.04.2019. The impact of the same is

yet to be assessed

2. IndAS recognizes revenue on transfer of the

control of the goods or services, either over

a period of time or at a point of time, at an

amount that the entity expects to be entitled

in exchange for the goods or services. In

order to align with IndAS 115, the Accounting

policy on revenue recognition was reviewed

and revised. The said revision has an impact

of INR 49.25 Lakh on the fi nance of the

company as the company was recognizing

and accounting revenue in all other cases in

line with the IndAs 115.

USE OF ESTIMATES

These consolidated fi nancial statements have been

prepared based on estimates and assumptions in

conformity with the recognition and measurement

principles of Ind AS.

The estimates and the associated assumptions are

based on historical experience and other factors

that are considered to be relevant. Actual results

may differ from these estimates. The estimates

and underlying assumptions are reviewed on an

ongoing basis. Revisions to accounting estimates

are recognized in the period in which the estimate

is revised and future periods affected.

Key sources of estimation uncertainty at the

reporting date, which may cause a material


liabilities for future years are provided in Note-3

Signifi cant judgments and estimates relating to the

carrying amounts of assets and liabilities, while

evaluating/assessing useful lives of property, plant

and equipment, impairment of property, plant and

equipment, impairment of investments, provision

for employee benefi ts and other provisions,

recoverability of deferred tax assets, commitments

and contingencies.

BASIS OF CONSOLIDATION

OMC consolidates entities which it owns or

controls. The consolidated fi nancial statements

comprise the fi nancial statements of the Company,

its subsidiary. Control exists when the parent has

power over the entity, is exposed, or has rights, to

variable returns from its involvement with the entity

and has the ability to affect those returns by using

its power over the entity. Power is demonstrated

through existing rights that give the ability to direct

relevant activities, those which signifi cantly affect

the entity’s returns. Subsidiaries are consolidated

from the date control commences until the date

control ceases.

The fi nancial statements of the Group companies

are consolidated on a line-by-line basis and

intra- group balances and transactions including

unrealized gain/loss from such transactions are

eliminated upon consolidation. These fi nancial

statements are prepared by applying uniform

accounting policies in use at the Group.

Joint venture is a joint arrangement whereby the

parties that have joint control of the arrangement

have rights to the net assets of the joint

arrangement. Joint control is the contractually

agreed sharing of control of an arrangement, which

exists only when decisions about the relevant

activities require unanimous consent of the

parties sharing control. The investment is initially

recognized at cost, and the carrying amount is

increased or decreased to recognize the investor’s

share of the profi t or loss of the investee after the

acquisition date.

Associates are entities over which the Group has

signifi cant infl uence but not control. Investments

in associates are accounted for using the equity

method of accounting. The investment is initially

recognized at cost, and the carrying amount is

increased or decreased to recognize the investor’s

share of the profi t or loss of the investee after the

acquisition date.

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment held for use in the

production or/ and supply of goods or services,

or for administrative purposes, are stated in


accumulated depreciation and impairment loss,

if any.

NOTES TO ACCOUNTS


INITIAL MEASUREMENT

The initial cost comprises of purchase price,

non-refundable purchase taxes, other directly

expenditure attributable to acquisition, borrowing

cost, if any, incurred for bringing the assets to

its location and condition necessary for it to be

capable of operating in the manner intended by

the management, and the initial estimates of the

present value of any asset restoration obligation

or obligatory decommissioning and dismantling

costs.

Expenditure incurred on development of freehold

land is capitalized as part of the cost of the land.

In case of self-constructed assets, cost includes

the costs of all materials used in construction,

direct labour, allocation of overheads, directly

attributable borrowing costs, if any.

Spare parts having unit value of more than � 5 lakh

that meets the criteria for recognition as Property,

plant and equipment are recognized as Property,

plant and equipment.

SUBSEQUENT EXPENDITURE

Expenditure on major maintenance or repairs

including cost of replacing the parts of assets and

overhaul costs where it is probable that future

economic benefi ts associated with the item will

be available to the Group, are capitalized and

the carrying amount of the item so replaced is

derecognized. Similarly, overhaul costs associated

with major maintenance are capitalized and

depreciated over their useful lives where it is

probable that future economic benefi ts will be

available and any remaining carrying amounts of

the cost of previous overhauls are derecognized.

All other costs are expensed as incurred

Physical verifi cation of Fixed Assets are

undertaken by the management at a reasonable

interval and in a phased manner so as to complete

100% verifi cation in a cycle of three years. The

discrepancies noticed, if any, are accounted for in

the year in which such differences are found

CAPITAL WORK-IN-PROGRESS

Assets in the course of construction for

production and/or supply of goods or services

or administrative purposes, or for purposes not

yet determined, are included under capital work

in progress and are carried at cost, less any

recognized impairment loss. Such capital work in

progress, is transferred to the appropriate category

of property, plant and equipment when completed

or starts operating as per management’s intended

use whichever is earlier.

Expenses for assessment of new potential

projects incurred till and for the purpose of making

investment decision are charged to revenue.

Expenditure incurred for projects after investment

decisions are accounted for under capital work in

progress and capitalized subsequently.

In respect of construction of labour tenements in

mines, difference between the expenses incurred

and subsidy from Government / other agencies is

charged / credited to revenue account during the

year. The supervision charges incurred thereon not

being material is included in Other Expenses.

DEPRECIATION

Depreciation on assets are provided for from the

dates, the assets are available for their intended

use and are spread over their estimated useful

economic lives or, in the case of leased assets

(including leasehold improvements), over the lease

period if shorter. The lease period is considered

by excluding any lease renewals options, unless

the renewals are reasonably certain. Depreciation

on assets are provided on a written down value

basis over the useful life of the asset in the manner

prescribed under Schedule II of the Companies

Act, 2013. The estimated useful lives and residual

values are reviewed at each year end, and

changes in estimates if any, are accounted for on a

prospective basis.

Each component of an item of property, plant

and equipment with a cost that is signifi cant in

relation to the total cost of that item is depreciated

separately if its useful life differs from the main

asset.

Property, plant and equipment which are subject

to componentization, comprises of main assets,

componentized assets and remainders, if any. The

Group has chosen a benchmark of ` 1 crore or

above for the purposes of componentization.

Depreciation is provided in the accounts on written

down value method based on useful life basis

and in the manner prescribed in Schedule II of the


Property, plant and equipment acquired below �

5000/- are to be charged off to depreciation during

the same year.

DISPOSAL OF ASSETS

An item of property, plant and equipment is

derecognized upon disposal or when no future

economic benefi ts are expected to arise from

the continued use of the asset. Any gain or loss

arising on the disposal or retirement of an item of

property, plant and equipment is determined as

the difference between the sales proceeds and the

carrying amount of the asset and is recognized in

statement of profi t and loss.

DEEMED COST ON TRANSITION TO IND AS

For transition to Ind AS, the Group has elected to

continue with the carrying value of all its property,

plant and equipment recognized as of 1 April, 2015

(transition date) measured as per the previous

GAAP and use that carrying value as its deemed

cost as of the transition date.

INVESTMENT PROPERTY

Investment properties held to earn rentals or

for capital appreciation or both are stated in


accumulated depreciation and subsequent

accumulated impairment losses. Any gain or loss

on disposal of investment property is determined

as the difference between net disposal proceeds

and the carrying amount of the property and is

recognized in the statement of profi t and loss.

Transfer to, or from, investment properties are

recognized at the carrying amount of the property.

INTANGIBLE ASSETS (OTHER THAN

GOODWILL)

Intangible assets acquired are reported at cost


impairment losses. Intangible assets having fi nite

useful lives are amortized over their estimated

useful lives, whereas intangibles assets having

indefi nite useful lives are not amortized. The

estimated useful life and amortization method

are reviewed at the end of each annual reporting

period, with the effect of any changes in estimate

being accounted for on a prospective basis.

INTERNALLY GENERATED INTANGIBLE

ASSETS – RESEARCH AND DEVELOPMENT

EXPENDITURE

Expenditure on research activities is recognized as

an expense in the period in which it is incurred.

An internally generated intangible asset arising

from development (or from the development phase

of an internal project) is recognized if, and only if

all the conditions stipulated in Ind AS 38 – Tangible

Assets is met

The amount initially recognized for internally

generated intangible assets is the sum of the

expenditure incurred from the date when the

intangible asset is recognized. Where no internally

generated intangible asset can be recognized,

development expenditure is recognized in the


it is incurred.

Subsequent to initial recognition, internally

generated intangible assets are reported at cost


impairment losses, on the same basis as intangible

assets acquired separately.

MINING RIGHTS

The amount incurred to acquire mining rights

which includes NPV, stamp duty, registration

fees, afforestation, compensatory afforestation,

wild life management plan, land premium, soil

conservation, gap plantation, soil & moisture

conservation, feasibility study and land alienation

charges etc. are capitalized as “Mining rights” in

the year in which they are incurred.

Capitalized mining rights are amortized over

the period of mining lease and are subject to

impairment review.

The amount paid on renewal of Mining Leases

which is leviable on the date of execution of

renewal deed are apportioned equally on the

balance of the lease period from the date of

execution.


MINES CLOSURE LIABILITY

The holder of mining lease has the responsibility

to ensure that the protective measure including

reclamation and rehabilitation works have been

carried out in accordance with approved mine

closure plan. Accordingly the Corporation has

created a provision to meet the expenses on

account of Progressive Mines Closure Plan and

Final Mines Closure Plan. The provision included

in the Progressive Mines Closure Plan mandates

a proper estimate at this stage for a Final Mines

Closure Expenses. Due to diffi culty/uncertainty

in making a proper estimation of expenses to

be incurred at the time of closure of mines, the

Corporation has considered INR 3.00 Lakh/Ha as

mine closure liability being the amount of fi nancial

assurance provided to IBM in the form of Bank

Guarantee (BG). The liability has been adjusted

with infl ation and discounting factors.

EXPLORATION EXPENSES

Expenditures associated with search for specifi c

mineral resources are recognized as exploration

and evaluation assets. The following expenditure

comprises cost of exploration and evaluation

assets:

1. Costs incurred directly for obtaining the

rights to explore and evaluate mineral

reserves and resources.

2. Researching & analyzing existing exploration

data

3. Conducting geological studies, topographical

and geophysical studies

4. Examining and testing extraction and

treatment methods

5. Compiling pre-feasibility and feasibility

studies activities in relation to evaluating the

technical feasibility and commercial viability

of extracting a mineral resource.

6. Activities in relation to evaluating the

technical feasibility and commercial

viability of extracting mineral resource.

The exploration assets will undergo future

carrying value test at every reporting period.

If it is established that the expenditure are

incurred for

a. Non-mineral areas to be expensed out,

b. Mines/different pocket in the ML area

wherever the commercial operation

has not been started within a period

of 5years from the end of the year in

which expenditures have been treated

as assets, the amount of such asset

shall be derecognized at the end of

5 years or expiry of the lease period

which ever is earlier.

c. In other cases the asset will be carried

in the Balance Sheet as intangible

asset under development and upon

operation, the asset shall be amortised

over a period of 5 years or life of the

mines whichever is earlier.

SOFTWARE

Operating software acquired separately

(RDBMS,ERP/SAP etc.) are capitalized as

intangible asset (Software) where they are clearly

linked to long term economic benefi ts for the

Group. They are measured initially at purchase

cost and then amortized on a straight-line basis

over their estimated useful lives.

DERECOGNITION OF INTANGIBLE ASSETS

An intangible asset is derecognized on disposal,

or when no future economic benefi ts are expected

from its use or disposal. Gains or losses arising

from de-recognition of an intangible asset,

measured as the difference between the net

disposal proceeds and the carrying amount of the

asset are recognized in the statement of profi t and

loss when the asset is derecognized.

IMPAIRMENT OF TANGIBLE AND INTANGIBLE

ASSETS

At the end of each reporting period, the Group

reviews the carrying amounts of its tangible and

intangible assets to determine whether there is any

indication that the carrying amount of those assets

may not be recoverable through continuing use. If

any such indication exists, the recoverable amount

(i.e. higher of fair value less cost to sell and the

value-in-use) of the asset is reviewed in order to

determine the extent of impairment loss (if any).

Where the asset does not generate cash fl ows

that are independent from other assets, the Group

estimates the recoverable amount of the cash

generating unit (CGU) to which the asset belongs.

If the recoverable amount of an asset (or CGU) is

estimated to be less than its carrying amount, the

carrying amount of the asset (or CGU) is reduced

to its recoverable amount and the difference

between the carrying amount and recoverable

amount is recognized as impairment loss in the

statement of profi t or loss.

Intangible assets with an indefi nite useful life and

intangible assets not yet available for use are

tested for impairment annually and whenever there

is an indication that the asset may be impaired.

NON-CURRENT ASSETS HELD FOR SALE AND

DISCONTINUED OPERATIONS

Non-current assets and disposal groups are

classifi ed as held for sale if their carrying amount

will be recovered through a sale transaction rather

than through continuing use. This condition is

only met when the sale is highly probable and the

asset, or disposal group, is available for immediate

sale in its present condition and is marketed for

sale at a price that is reasonable in relation to

its current fair value. The Group must also be

committed to the sale, which should be expected

to qualify for recognition as a completed sale

within one year from the date of classifi cation.

Non-current assets (and disposal groups)

classifi ed as held for sale are measured at the

lower of their carrying amount and fair value less

costs to sell.

FOREIGN CURRENCY TRANSACTIONS AND

TRANSLATION

The fi nancial statements of the Group are

presented in Indian rupees (“INR”), which is

the functional currency of the Group and the

presentation currency for the fi nancial statements.

In preparing the fi nancial statements, transactions

in currencies other than the entity’s functional

currency (foreign currencies) are recorded at the

rates of exchange prevailing on the date of the

transactions. At the end of each reporting period,

monetary items denominated in foreign currencies

are retranslated at the rates prevailing at the end

of the reporting period. Non-monetary items are

measured at historical cost.

Exchange differences arising on monetary items

are recognized in the statement of profi t and loss

in the period in which they arise.

PROVISIONS AND CONTINGENCIES

Provisions are recognized when the Group has

a present obligation (legal or constructive) as a

result of a past event, which is expected to result

in an outfl ow of resources embodying economic

benefi ts which can be reliably estimated.

Each provision is based on the best estimate of

the expenditure required to settle the present

obligation at the balance sheet date. Provisions

are measured on a discounted basis when it is

considered appropriate. The discount rate used

is a pre-tax rate that refl ects current market

assessments of the time value of money in that

jurisdiction and the risks specifi c to the liability.

Constructive obligation is an obligation that

derives from an entity’s actions where:

1. By an established pattern of past practice,

published policies or a suffi ciently specifi c

current statement, the entity has indicated

to other parties that it will accept certain

responsibilities and

2. As a result, the entity has created a valid

expectation on the part of those other parties

that it will discharge those responsibilities.

ONEROUS CONTRACTS

A provision for onerous contracts is recognized

when the expected benefi ts to be derived by

the Group from a contract are lower than the

unavoidable cost of meeting its obligations under

the contract. The provision is measured at the

present value of the lower of the expected cost of

terminating the contract and the expected net cost

of continuing with the contract.

RESTRUCTURINGS

A restructuring provision is recognized when there

is a detailed formal plan for the restructuring which

has raised a valid expectation in those affected.

The measurement of a restructuring provision

includes only the direct expenditures arising from

the restructuring.


RESTORATION, REHABILITATION AND

DECOMMISSIONING

An obligation to incur restoration, rehabilitation and

environmental costs arises when environmental

disturbance is caused by the development

or ongoing production of a mine and other

manufacturing facilities. The Group has recognized

the obligated restoration, rehabilitation and

decommissioning liability as mandated in the

land document on which the Plant property and

equipment is erected.

Such costs, discounted to net present value,

are provided for and a corresponding amount is

capitalized at the start of each project, as soon as

the obligation to incur such costs arises. These

costs are charged to the statement of profi t or

loss over the life of the operation through the

depreciation of the asset and the unwinding of the

discount on the provision. The cost estimates are

reviewed periodically and are adjusted to refl ect

known developments which may have an impact

on the cost estimates or life of operations. The

cost of the related asset is adjusted for changes

in the provision due to factors such as updated

cost estimates, changes to lives of operations,

new disturbance and revisions to discount rates.

The adjusted cost of the asset is depreciated

prospectively over the lives of the assets to which

they relate. The unwinding of the discount is

shown as fi nance and other cost in the statement

of profi t or loss

ENVIRONMENTAL LIABILITIES

Environment liabilities are recognized when the

Group becomes obliged, legally or constructively

to rectify environmental damage or to perform

remediation work.

LITIGATION

Provision is recognized once it has been

established that the Group has a present obligation

based on consideration of the information which

becomes available up to the date on which the

Group’s fi nancial statements are fi nalized.


Contingent liabilities arising from past events,

the existence of which would be confi rmed only

on occurrence or non-occurrence of one or more

future uncertain events, not wholly within the

control of the Group or contingent liabilities where

there is a present obligations but it is not probable

that economic benefi ts would be required to

settle the obligations are disclosed in the fi nancial

statements unless the possibility of any outfl ow in

settlement is remote.

CONTINGENT ASSETS

Contingent assets are not recognized in the

fi nancial statement, but are disclosed where an

infl ow of economic benefi ts is probable.

LEASES

The Group determines whether an arrangement

contains a lease by assessing whether the

fulfi llment of a transaction is dependent on the use

of a specifi c asset and whether the transaction

conveys the right to use that asset to the Group

in return for payment. Where this occurs, the

arrangement is deemed to include a lease and is

accounted for either as fi nance or operating lease.

Leases are classifi ed as fi nance leases whenever

the terms of the lease transfers substantially all the

risks and rewards of ownership to the lessee. All

other leases are classifi ed as operating leases.

THE GROUP AS LESSEE

1. Operating lease: Rentals payable under

operating leases are charged to the





economic benefi ts from the leased asset

are consumed. Contingent rentals arising

under operating leases are recognized as

an expense in the period in which they are

incurred.

2. Finance lease: Finance leases are capitalized

at the commencement of lease, at the

lower of the fair value of the property or

the present value of the minimum lease

payments. The corresponding liability to the

lessor is included in the balance sheet as a

fi nance lease obligation. Lease payments

are apportioned between fi nance charges

and reduction of the lease obligation so as

to achieve a constant rate of interest on the

remaining balance of the liability. Finance

charges are charged directly against income

over the period of the lease..

THE GROUP AS LESSOR

1. Operating lease – Rental income from

operating leases is recognized in the





economic benefi ts from the leased asset is

diminished. Initial direct costs incurred in

negotiating and arranging an operating lease

are added to the carrying amount of the

leased asset and recognized on a straight

line basis over the lease term.

2. Finance lease – When assets are leased out

under a fi nance lease, the present value of

the minimum lease payments is recognized

as a receivable. The difference between the

gross receivable and the present value of the

receivable is recognized as unearned fi nance

income. Lease income is recognized over the

term of the lease using the net investment

method before tax, which refl ects a constant

periodic rate of return.

INVENTORIES

Inventories i.e. ore stock, stores and spares

(including loose tools & implements), work in

progress and fi nished goods are valued at lower of

cost and net realizable value.

Cost of inventories comprises all costs of

production/purchase, costs of conversion and

other costs incurred in bringing the inventories to

their present location and condition.

Net realizable value is the price at which the

inventories can be realized in the normal course of

business after allowing for the cost of conversion

from their existing state to a fi nished condition and

for the cost of marketing, selling and distribution.

In view of the diffi culty in ascertaining NRV of

various materials, valuation of stock items of

stores is made at the moving weighted average

cost.

The basis of determining the cost is as follows:

Ore Stock- Periodic weighted average cost

Stores & Spares- Moving weighted average cost

Stock in transit- At cost

Work in progress and fi nished goods- Material cost

plus appropriate share of direct cost, overheads

and levies other than those subsequently

recoverable by the Group from the taxing

authorities

1. The quantity of sub-grade and incidental

waste of Iron Ore mines is booked to

production on effecting Sales and is

not considered for calculation of cost of

production for closing stock valuation

purpose.

2. The quantity of sub-grade Chrome Ore out

of the South Kaliapani Mines old dumps

booked to Production on the basis of

transferred quantity for benefi ciation to

COBP / Sales and is not considered for

calculation of cost of production for closing

stock valuation purpose

Shortages arising out of the difference between

physically verifi ed stock and book stock

including unmeasured stock have been provided

for weighment adjustment in the book stock,

while excess has been ignored based on the

conservative approach of accounting.

Other non-inventoried stock items of stores

such as medicine, printing & stationery, liveries,

crèche and canteen stores are charged to

consumption account in the system at the time of

purchase. Basing on physical verifi cation report,

value of such stock (on purchase cost) at the year

end is fed into the system through adjustment

entry while fi nalizing the Annual Accounts. The

consumption account of such stores is reduced to

the extent of physical stock value created in the

system.


SLOW MOVING STORES

Any stores items not issued for three years are

considered as slow moving stores items and 50%



NONMOVING STORES

Any stores items not issued for fi ve years are

considered as non-moving stores items and 100%



ROM (RUN OF MINES) & UNANALYZED ORES &

CUTTING AND REMOVING OF OVERBURDEN

ROM (Run of Mines) is the immediate excavated

material from the mother earth which is

predominantly ore with certain amount of

impurities and which requires further processing to

bring to the form of saleable ore. Hence, ROM is

not accounted for under ore production.

Unanalyzed Ore is the ore at pit head without

exact measurement and taken on volumetric

measurement basis and whose quantity /grade is

unknown till analysis from government certifi ed

analyzer. Hence unanalyzed ore is not accounted

for under ore production.

FINANCIAL INSTRUMENTS

Financial assets and liabilities are recognized when

the Group becomes a party to the contractual

provisions of the instrument. Financial assets

and liabilities are initially measured at fair value.

Transaction cost that are directly attributable to the

acquisition or issue of fi nancial assets and fi nancial

liabilities( other than fi nancial assets and fi nancial

liabilities at fair value through profi t or loss) are

added to or deducted from the fair value measured

on initial recognition of fi nancial asset or fi nancial

liabilities.

FINANCIAL ASSETS

1. Cash or Cash Equivalent - The Group

considers all short term Bank deposits,

which are readily convertible in to known

amounts of cash that are subject to an

insignifi cant risk of change in value and

having original maturities of three months or

less from the date of purchase, to be cash

equivalents. Cash and cash equivalents

consists of balances with banks which are

unrestricted for withdrawal and usageFor the

purposes of the Cash Flow Statement, cash

and cash equivalents is as defi ned above,

net of outstanding bank overdrafts. In the

balance sheet, bank overdrafts are shown

within borrowings in current liabilities. The

balance lying in the Stale Cheques Account”

is transferred to “Other Receipts Accounts”

after the expiry of the period of limitations

i.e. three years from the date of expiry of

the validity period of the cheque with the

approval of RO Head/ Finance Head at Ros

and HO respectively. This policy has been

effective from 1st April, 2015.

2. Financial assets at amortized cost - Financial

assets are subsequently measured at

amortized costs if these fi nancial assets

are held within a business model whose

objective is to hold these assets in order

to collect contractual cash fl ows and the

contractual terms of the fi nancial assets give

rise on specifi ed dates to cash fl ows that are

solely payments of principal and interest on

the principal amount outstanding

3. Financial assets at fair value through other

comprehensive income (FVTOCI) - Financial

assets are measured at fair value through

other comprehensive income if these

fi nancial assets are held within a business

model whose objective is achieved by both

collecting contractual cash fl ows and selling

fi nancial assets and contractual term of

the fi nancial assets give rise on specifi ed

days to cash fl ows that are solely payment

of principals and the interest on principal

amount outstanding.

4. Financial assets at Fair value through

Profi t or loss (FVTPL) - Financial assets are

measured at fair value through profi t or loss

unless it is measured at amortized cost or

at fair value through other comprehensive

item on initial recognition. The transaction

cost directly attributable to the acquisition

of fi nancial assets and liabilities at fair

value through profi t or loss are immediately

recognized in the statement of profi t or loss.

FINANCIAL LIABILITIES AND EQUITY

INSTRUMENTS ISSUED BY THE COMPANY

1. Financial Liabilities - Trade and other

payables are initially measured at fair

value, net of transaction costs, and are

subsequently measured at amortized cost,

using the effective interest rate method.Other

fi nancial liabilities are measured at amortized

cost using the effective interest method.

2. Equity instruments - An equity instrument

is any contract that evidences a residual

interest in the assets of an entity after

deducting all of its liabilities. Equity

instruments issued by the Group are

recognized at the proceeds received, net of

direct issue costs.

3. Compound Instruments - The component

parts of compound instruments (convertible

instruments) issued by the Group are

classifi ed separately as fi nancial liabilities

and equity in accordance with the

substance of the contractual arrangement.

At the date of issue, the fair value of the

liability component is estimated using the

prevailing market interest rate for a similar

non-convertible instrument. This amount is

recorded as a liability on an amortized cost

basis using the effective interest method

until extinguished upon conversion or at

the instrument’s maturity date. The equity

component is determined by deducting the

amount of the liability component from the

fair value of the compound instrument as a

whole. This is recognized and included in

equity, net of income tax effects, and is not

subsequently re-measured.

4. Financial guarantee contract liabilities

- Financial guarantee contract liabilities

are initially measured at their fair values

and, if not designated as at FVTPL, are

subsequently measured at the higher of:

a. The amount of the obligation under the

contract, as determined in accordance

with Ind AS 37 Provisions, Contingent

Liabilities and Contingent Assets; and

b. The amount initially recognized

less, where appropriate, cumulative

amortization recognized in accordance

with the revenue recognition policies.

5. Derecognition of fi nancial assets - The

Company derecognizes a fi nancial asset only

when the contractual rights to the cash fl ows

from the asset expire, or when it transfers the

fi nancial asset and substantially all the risks

and rewards of ownership of the asset to

another entity.

6. Impairment of fi nancial assets - At each

reporting date, the Group assess whether

the credit risk on a fi nancial instrument

has increased signifi cantly since initial

recognition. If, at the reporting date, the

credit risk on a fi nancial instrument has

not increased signifi cantly since initial

recognition, the Group measures the loss

allowance for that fi nancial instrument at an

amount equal to 12-month expected credit

losses. If, the credit risk on that fi nancial

instrument has increased signifi cantly since

initial recognition, the Group measures the

loss allowance for a fi nancial instrument at

an amount equal to the lifetime expected

credit losses. The amount of expected credit

losses (or reversal) that is required to adjust

the loss allowance at the reporting date is

recognized as an impairment gain or loss in

the statement of profi t and loss.

7. Derecognition of fi nancial liability - The

Company derecognizes fi nancial liabilities

when, and only when, the Company’s

obligations are discharged, cancelled or they

expire.

8. Off setting fi nancial instruments - Financial

assets and liabilities are offset and the

net amount reported in the balance sheet

when there is a legally enforceable right to

offset the recognized amounts and there

is an intention to settle on a net basis or

realize the asset and settle the liability

simultaneously. The legally enforceable right

must not be contingent on future events and

must be enforceable in the normal course of

business.


DERIVATIVES

Derivatives are initially recognized at fair value at

the date the derivative contracts are entered into

and are subsequently premeasured to their fair

value at the end of each reporting period. The

resulting gain or loss is recognized in profi t or loss

immediately unless the derivative is designated

and effective as a hedging instrument, in which

event the timing of the recognition in profi t or loss

depends on the nature of the hedging relationship

and the nature of the hedged item.

BORROWING COST

Borrowing costs directly attributable to the

acquisition, construction or production of

qualifying assets are added to the cost of

those assets, until such time as the assets are

substantially ready for their intended use or sale.

The Group considers a period of twelve months or

more as a substantial period of time.

Investment income earned on the temporary

investment of specifi c borrowings pending their

expenditure on qualifying assets is deducted from

the borrowing costs eligible for capitalization.

All other borrowing costs are recognized in the


they are incurred.

ACCOUNTING FOR GOVERNMENT GRANTS

Government grants are recognized when there is

reasonable assurance that we will comply with the

conditions attaching to them and that the grants

will be received.

Government grants are recognized in the

statement of profi t and loss on a systematic basis

over the periods in which the Group recognizes as

expenses the related costs for which the grants

are intended to compensate. Government grants

whose primary condition is that the Group should

purchase, construct or otherwise acquire non-

current assets are recognized in the balance sheet

by setting up the grant as deferred income.

Other government grants (grants related to

income) are recognized as income over the periods

necessary to match them with the costs for which

they are intended to compensate, on a systematic

basis. Government grants that are receivable as

compensation for expenses or losses already

incurred or for the purpose of providing immediate

fi nancial support with no future related costs are

recognized in the statement of profi t and loss in

the period in which they become receivable.

Grants related to income are presented under

other income in the statement of profi t and loss

except for grants received in the form of rebate

or exemption which are deducted in reporting the

related expense.

The benefi t of a government loan at a below-

market rate of interest is treated as a government

grant, measured as the difference between

proceeds received and the fair value of the loan

based on prevailing market interest rates.

EMPLOYEE BENEFITS

Short-Term Employee Benefi ts

A liability is recognized for benefi ts accruing to

employees in respect of wages and salaries, short

term compensated absences etc. in the period the

related service is rendered at the undiscounted

amount of the benefi ts expected to be paid.

POST-EMPLOYMENT BENEFITS

1. Defi ned contribution plans: A defi ned

contribution plan is a plan under which the

Group pays fi xed contributions to a separate

entity. The Group has no legal or constructive

obligations to pay further contributions if

the fund does not hold suffi cient assets to

pay all the employees the benefi ts relating

to employee service in the current and prior

periods. Payment to defi ned contribution

plans are recognised as an expense when

the employees have rendered service

entitling them for such contributions.

2. Defi ned benefi t plans: For defi ned benefi t

retirement schemes the cost of providing

benefi ts is determined using the Projected

Unit Credit Method, with actuarial valuation

being carried out at each balance sheet

date. Re-measurement gains and losses

of the net defi ned benefi t liability/ (asset)

are recognized immediately in other

comprehensive income. The service cost, net

interest on the net defi ned benefi t liability/

(asset) is treated as a net expense within

employment costs. Past service cost is

recognized as an expense when the plan

amendment or curtailment occurs or when

any related restructuring costs or termination

benefi ts are recognized, whichever is earlier.

The retirement benefi t obligation recognized

in the balance sheet represents the present

value of the defi ned-benefi t obligation as

reduced by the fair value plan assets.

LONG-TERM EMPLOYEE BENEFITS

Liabilities recognized in respect of other long-

term employee benefi ts are measured at the

present value of the estimated future cash

outfl ows expected to be made by the Group

in respect of services provided by employees

up to the reporting date. The expected costs

of these benefi ts are accrued over the period

of employment using the same accounting

methodology as used for defi ned benefi t retirement

plans. Actuarial gains and losses arising from

experience adjustments and changes in actuarial

assumptions are charged or credited to the


they arise. These obligations are valued annually

by independent actuaries.

INCOME TAXES

Tax expense for the year comprises current and

deferred tax.

CURRENT TAX

The tax currently payable is based on taxable profi t

for the year. Taxable profi t differs from net profi t

as reported in the statement of profi t and loss

because it excludes items of income or expense

that are taxable or deductible in other years and

it further excludes items that are never taxable or

deductible. The Group’s liability for current tax is

calculated using tax rates and tax laws that have

been enacted or substantively enacted by the end

of the reporting period.

DEFERRED TAX

Deferred tax is the tax expected to be payable or

recoverable on differences between the carrying

amounts of assets and liabilities in the fi nancial

statements and the corresponding tax bases

used in the computation of taxable profi t, and is

accounted for using the balance sheet liability

method. Deferred tax liabilities are generally

recognized for all taxable temporary differences. In

contrast, deferred tax assets are only recognized

to the extent that it is probable that future

taxable profi ts will be available against which the

temporary differences can be utilized.

The carrying amount of deferred tax assets is

reviewed at the end of each reporting period and

reduced to the extent that it is no longer probable

that suffi cient taxable profi ts will be available to

allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are

expected to apply in the period when the liability

is settled or the asset is realized based on the

tax rates and tax laws that have been enacted or

substantially enacted by the end of the reporting

period. The measurement of deferred tax liabilities

and assets refl ects the tax consequences that

would follow from the manner in which the Group

expects, at the end of the reporting period, to

cover or settle the carrying amount of its assets

and liabilities.

Deferred tax assets and liabilities are offset to the

extent that they relate to taxes levied by the same

tax authority and there are legally enforceable

rights to set off current tax assets and current tax

liabilities within that jurisdiction.

Current and deferred tax are recognized as an

expense or income in the statement of profi t and

loss, except when they relate to items credited

or debited either in other comprehensive income

or directly in equity, in which case the tax is also

recognized in other comprehensive income or

directly in equity.


REVENUE RECOGNITION AND OTHER INCOME

Revenue is recognized to the extent that it is

probable that the economic benefi ts will fl ow

to the Group and the revenue can be reliably

measured, regardless of when the payment is

being made. Revenue is measured at the fair value

of the consideration received or receivable net

of discounts, taking into account contractually

defi ned terms and excluding taxes or duties

collected on behalf of the government.

SALES OF GOODS

Revenue from contracts with customers is

recognised when control of goods and services

is transferred to the customers at an amount

that refl ects the consideration to which company

expects to be entitled in exchange for those good

and services.

If the consideration in a contract includes a

variable amount, the company estimates the

amount of consideration to which it will be entitled

in exchange for transferring the goods to the

customers. The variable consideration is estimated

at contract inception and constrained, until it is

highly probable that a signifi cant reversal in the

amount of cumulative revenue recognised will not

occur when the associated uncertainty with the

variable consideration is subsequently resolved.

All revenue from the sale of goods is recognised

at a point in time and revenue from services is

recognised over-time.

The timing of transfer of control in case of sale of

goods varies depending upon individual transfer

terms of the contract.

In export sales control passes to the customer on

the date of Bill of lading.

In case of domestic sales, control passes to

the customer on the date of delivery which ig

generally recognised based on the preparation of

post goods issue (PGI) and invoice thereto in the

invoice system against the particular delivery order.

No revenue is recognized if there are signifi cant

uncertainties regarding recovery of the amount

due, associated costs or the possible return of

goods.

CONTRACT ASSET

A contract asset is the right to consideration

in exchange for goods or services transferred

to the customers. If the company performs by

transferring goods or services to a customer

before the customer pays consideration or before

payment is due, a contract asset recognized for

the contract for the earned consideration that is

conditional.

TRADE RECEIVABLES

A receivable represents the company’s right to an

amount of consideration.

CONTRACT LIABILITY

A contract liability is the obligation to transfer

goods or services to a customer for which

the Company has received consideration (or

an amount of consideration is due) from the

customer. If a customer pays consideration before

the company transfers goods and services to

the customer, a contract liability is recognised

when the payment is made or the payment is

due (whichever is earlier). Contract liabilities

are recognised as revenue when the company

performs under the contract.

DIVIDEND INCOME

Dividend income from investments is recognized

when the shareholder’s rights to receive payment

have been established.

INTEREST INCOME

Interest income from a fi nancial asset is recognized

when it is probable that the economic benefi ts will

fl ow to the Group and the amount of income can

be measured reliably. Interest income is accrued

on a time proportion basis, by reference to the

principal outstanding and the effective interest rate

applicable, which is the rate that exactly discounts

estimated future cash receipts through the

expected life of the fi nancial asset to that asset’s

net carrying amount on initial recognition.

INCOME FROM INCENTIVES FROM

GOVERNMENT AGENCIES

Government Grants, if any, received during the

year against any project or Scheme implemented

during that year is credited to the project or

Scheme cost. If such Grant is received at a later

year after completion of the project, the same

is treated as other income in the year in which it

is received. Revenue related grants are treated

as other income in the year in which they are

received.

ALL EXPENDITURE IS RECOGNIZED ON

ACCRUAL BASIS EXCEPT FOR:

1. Demurrage on export sale.

2. Interest payable on negotiation of bills with

banks in respect of export sales.

3. Voluntary Retirement Scheme payments

are treated as revenue expenditures being

charged to the Statement of Profi t & Loss in

the year in which the amount is paid.

4. Insurance Claim

Expenditure incurred at the prospecting camps

relating to ore prospecting work is treated as

revenue expenditure.

Expenditure incurred for implementation and

maintenance of ERP excepting hardware expenses

are treated as revenue expenditure.

In absence of detailed calculation or ore reserve,

its grade, associated rocks and materials, etc, no

provisioning is being made for backlog /excess of

quantity of waste material. Expenditure on cutting

and removing of overburden is accounted for as

and when incurred.

EXCEPTIONAL ITEMS

Exceptional items are items of income and

expenses arise from ordinary activities but of

such size, nature or incidence whose disclosure

is felt necessary for better explanation of the

performance of the Group.

RESTATEMENT OF MATERIAL ERRORS/

OMISSIONS

The value of errors and omissions is construed

to be material for restating the opening balances

of assets and liabilities and equity for the earliest

prior period presented, if the sum total effect of

earlier period income/expenses exceeds � 50

Crore.

CRITICAL ACCOUNTING JUDGMENTS AND


In the application of the Group’s accounting

policies, which are described in Note-2, the

management of the Group is required to make

judgments, estimates and assumptions about

the carrying amounts of assets and liabilities that

are not readily apparent from other sources. The

estimates and associated assumptions are based

on historical experience and other factors that are

considered to be relevant. Actual results may differ

from these estimates.

The estimates and underlying assumptions are

reviewed on an ongoing basis. Revisions to

accounting estimates are recognized in the period

in which the estimate is revised.

CRITICAL JUDGMENTS IN APPLYING

ACCOUNTING POLICIES:

The following are the critical judgments, apart from

those involving estimations (see point 3.3 below),

that the management have made in the process of

applying the Group’s accounting policies and that

have the most signifi cant effect on the amounts

recognized in the fi nancial statements.

FINANCIAL ASSETS AT AMORTIZED COST

The management has reviewed the Group’s

fi nancial assets at amortized cost in the light of its

business model and has confi rmed the Group’s

positive intention and ability to hold these fi nancial

assets to collect contractual cash fl ows. The

carrying amount of these fi nancial assets disclosed

in note 31.

KEY SOURCES OF ESTIMATION

UNCERTAINTY:

The following are the key assumptions concerning

the future, and other key sources of estimation of

uncertainty at the end of the reporting period that

may have a signifi cant risk of causing a material


liabilities within the next fi nancial year.


IMPAIRMENT OF INVESTMENTS

The Group reviews its carrying value of

investments carried at amortized cost annually,

or more frequently when there is indication for

impairment. If the recoverable amount is less

than its carrying amount, the impairment loss is

accounted for.

PROVISIONS

Provisions (excluding retirement benefi ts and

compensated absences) are not discounted to its

present value and are determined based on best

estimate required to settle the obligation at the

balance sheet date. These are reviewed at each

balance sheet date adjusted to refl ect the current

best estimates.

PREPAID EXPENSES

Prepaid expenses up to INR 5,00,000/- per

transaction per year shall be treated as expenses

in the Financial Year in which it is paid.


Contingent liabilities arising from past events the

existence of which would be confi rmed only on

occurrence or non-occurrence of one or more

future uncertain events not wholly within the

control of the Group or contingent liabilities where

there is a present obligations but it is not probable

that economic benefi ts would be required to

settle the obligations are disclosed in the fi nancial

statements unless the possibility of any outfl ow in

settlement is remote.

FAIR VALUE MEASUREMENTS AND

VALUATION PROCESSES:

For fi nancial reporting purposes, fair value

measurements are categorized into Level 1, 2

or 3 based on the degree to which the inputs to

the fair value measurements are observable and

the signifi cance of the inputs to the fair value

measurement in its entirety, which are described

as follows:

1. Level 1 inputs are quoted prices (unadjusted)

in active markets for identical assets or

liabilities that the Group can access at the

measurement date;

2. Level 2 inputs are inputs, other than quoted

prices included within Level 1, that are

observable for the asset or liability, either

directly or indirectly; and

3. Level 3 inputs are inputs that are not based

on observable market data (unobservable

inputs).

INTERNAL FINANCIAL CONTROL

The Corporation had engaged M/s Deloitte

Haskins & Shell Kolkata consultants to conduct a

study up to the fi nancial year 2016-17 on Internal

Financial Control (IFC) and provide a report.

Accordingly corrective measures have been taken

where ever required. During the current year, the

corporation has relied upon Internal Auditors on

Internal Financial Control.


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Particular% of share

holdings


(₹ in Lakh)


(₹ in Lakh)

No. of shares Amounts No. of shares Amounts

UNQUOTED INVESTMENTS CARRIED AT COST

The Corporation has opted accounting of Investments in Subsidiaries, Joint Ventures & Associates at cost in line with pargraph -10 of Ind AS -27

Equity investment in Joint Ventures

RIO Tinto Orissa Mining Pvt. Limited (Fully Paid up) 49.00 2,28,000 228.00 2,28,000 228.00

Orissa Thermal Power Corporation Limited (Fully Paid up) 50.00 13,42,047 13,106.75 13,42,047 13,100.64

Nuagaon Coal Company Limited (Fully Paid up) 50.00 1,00,000 116.48 1,00,000 114.79

Kalinga Coal Mining Pvt. Limited (Face value of Rs 10 each at free of cost) 26.00 17,16,000 - 17,16,000 -

Neelachal Ispat Nigam Limited (Fully Paid up) 12.32 7,15,98,530 - 7,15,98,530 -

Keonjhar Infrastructure Development Co Limited (Fully paid up) 11.11 7,200 0.72 7,200 0.72

Angul Sukinda Railway Limited (Fully paid up) 10.50 6,30,00,000 7,159.05 6,30,00,000 7,135.47

Haridaspur Paradip Railway Company Limited (Fully Paid up) 13.02 9,29,20,000 9,301.96 9,29,20,000 9,299.40


Total - - 29,584.24 - 29,550.30

Equity investment in Associates

Lanjigarh Schedule Area Development Fund (Face value of Rs 10 each at free of cost) 25.00 12,500 - 12,500 -

South West Orissa Bauxite Mining Pvt. Limited (Face value of Rs 10 each at free of

cost) 26.00 13,000 - 13,000 -

East Coast Bauxite Mining Co. Pvt. Limited (Face value of Rs 10 each at free of cost) 26.00 2,600 - 2,600 -

Mandakini B Coal Corporation Limited (Fully paid up) 25.00 207,843 208.38 207,843 207.84

Less: Impairment of investments - - - - -

Total - - 208.38 - 207.84

TOTAL AGGREGATE UNQUOTED INVESTMENTS (A) - - 29,792.63 - 29,758.14

OTHER INVESTMENTS (B) - - - - -

Investments in joint ventures (Preference shares, face value of 10 each, fully paid up) - - - - -

– Keonjhar Infrastructure Development Co Limited 13.30 45,00,000 (450.00) 45,00,000 450.00


TOTAL OTHER INVESTMENTS (B) - - - - -

TOTAL INVESTMENTS (A) + (B) - - 29,792.63 - 29,758.14

06. INVESTMENT


Particular As at March 31,2019 (₹ in Lakh) As at March 31, 2018 (₹ in Lakh)

Unquoted

Carrying amount - -

Subsidiary - -

Joint Ventures 29,584.24 29,550.30

Associates 208.38 207.84

Total carrying amount 29,792.63 29,758.14

1. The cost of unquoted investments approximate the fair value because there is a wide range possible fair value measurements and the cost represents estimate of fair value within that range.

2. OMC executed an agreement with Rio Tinto Mineral Dev.(RTMD) on 24.02.1995 as per the directive of Government for developing an integrated rail, port and mines project having production

capacity of at least 15MT of iron ore p.a from Gandhamardan and Malangtoli Leases by forming a joint venture company. The JV RTOM was incorporated in July,1997 with holding of

51% by RTMD and 49% by OMC. The project after completion of feasibility studies Ph-I and Ph-II has not progressed due to non fi nalization of the project development agreement. Case

fi led by OMC & RTMD on winding up of the JV Co.are continuing at respective legal forums. So provision for impairment was made for INR 228.00 lakh against this investment in JV Company

during FY 2010-11.

3. The Ministry of Coal, Government of India vide letter No. f No.13016/8/207-CA-1 dtd 25.07.2007 alloted Mandakini-B Coal Block in favour of the OMC Limited, Assam Mineral Development

Corpn, Meghalaya Mining Corpn, and Tamilnadu Electricity Board on equal sharing basis of 25% each for Power Generation. Accordingly, the new Comapany Viz M/S MBCCL was

incorporated. Further, Ministry of Coal, GoI has de-allocated Madakini-B Coal Block on 05.12.2012. The Board of Directors of MBCCL in its meeting held on 08.02.2013 decided for

dissolution of the Company and the Board of Directors of the OMC limited in its 398th meeting held on 26.03.2013 approved dissolution of MBCCL. Accordingly provision has been created

for INR 200.00 lakh in the Accounts of 2012-13 towards impairment of investment in the said company. Now the said company is declared as dormant as per the provisions of section 455(2)

of the Companies Act, 2013 by MCA, GOI on dated 23.06.2017.

4. OMC & APMDC invested Rs.100 lakh each being 50% partner in joint venture company namely M/S Nuagaon Coal Company Limited & shown as share deposit amount. The JV Company

alloted 3000 equity share of Rs.100.00 each amounting to Rs.3 lakh.However the share are yet to be received.As per order of Hon’able Supreme Court of India, 204 coal blocks were

de-allocated including M/S Nuagaon Coal Company Limited. Accordingly, provision for impairment was created for Rs. 100 lakh against this investment in the JV Company during the F.Y

2014-15.Now the said company is declared as dormant as per the provisions of section 455(2) of the Companies Act, 2013 by MCA, GOI on dated 23.06.2017.

5. During Financial Year 2015-16, consequent upon approval of Board of Directors, an amount of Rs.450.72 lakh (Rs.450.00 Lakh of preference shares + Rs.0.72 lakh of equity shares) invested

in M/S Keonjhar Infrastructure Development Co Limited have been provided for as the same were found to be permanently diminuted due to the company’s net worth as well as the derived

market value of share was continuously showing (-ve) trend.

6. 7,200 Nos of shares held by the OMCL in Keonjhar Infrastructure Development Co Limited has been pledged with State Bank of India for availment of loan by M/s KIDCOL.

7. Additional Investment made during the Financial year 2018-19 Amounting to Rs. 19.10 lakh (Rs 23.41 lakh upto 2017-18 in M/S Odisha Minerial Explorarion Corporation Limited, a 100%

subsidary of OMC as equity Investment in the said subsidary company.

8. An amount of Rs. 2000 lakh payable by M/S Utkal Alumina International Limited (UAIL) pursuant to an agreement dated 1st October 2007 and subsequent Addendum dtd 31st January 2011.

The UAIL has agreed to issue 15% fully convertable cumulative preferance shares amounting to Rs 2000 lakh with face value of Rs 10/- each at par in consideration for transfer of prospecting

licence, mining leases, all rights thereto, rendering of related technical services etc by OMC. These preferance shares are redeemable. The issuance of such preferance shares is pending.

In terms of debenture subscription agreement between OMC & UAIL, UAIL paid Rs 300 lakh (Previous Year 300 lakh) in lieu of a Zero coupon unsecured redeemable non convertible

debenture of Rs 300 lakh towards its obligation to pay OMC an amount equivalent to 15% per Annum on Rs 2000 lakh. This receipt of Rs 300 lakhs (previous year Rs 300 lakh)has been

booked in other receipt.

9. In the absence of latest audited accounts or management inputs, consolidation of following joint ventures and associates have not been made

– RIO Tinto Orissa Mining Pvt. Limited

– Kalinga Coal Mining Pvt. Limited

– Keonjhar Infrastructure Development Co Limited

– Lanjigarh Schedule Area Development Fund

– South West Orissa Bauxite Mining Pvt. Limited

– East Coast Bauxite Mining Co. Pvt. Limited

10. Kalinga Coal Mining Pvt.Limited and South West Orissa Bauxite Mining Pvt. Limited are Striked off Companies and their fi nancials are not signifi cant/material for consolidation.

11. Mandakini B Coal Corporation Limited ,Nuagaon Coal Company Limited are dormant companies.


1. Security Deposits - -



Doubtful - -


2. Loans to related parties - -



Doubtful - -


3. Loans to employees - -


07. LOANS- NON CURRENT (A)

THE CARRYING AMOUNT AND MARKET VALUE OF UNQUOTED EQUITY INVESTMENTS IS AS FOLLOWS



1. Security Deposits - -


Unsecured, considered good - -

Doubtful - -


2. Loans to related parties - -



Doubtful - -


3. Loans to employees - -



Doubtful - -

Less : Allowance for bad and doubtful advances (Refer Note 7.vi) - -

4. Intercorporate Loans (Gridco) - -



Doubtful - -


5. Intercorporate Loans (IDC) - -



Doubtful - -


Total 26,665.84 43,103.63

LOANS- CURRENT (B)



Doubtful - -

Less : Allowance for bad and doubtful advances (Refer Note 7.vi) (108.83) (104.37)

4. Intercorporate Loans (Gridco) - -



Doubtful - -


5. Intercorporate Loans (IDC) - -



Doubtful - -


Total 40,221.86 51,282.93

1. Loans to related parties include:

Loans given to Joint venture i.e. Neelachal Ispat Nigam Limited (NINL), a manufacturer of steel, amounting to INR 17,000 lakh on dtd 23.09.2015 & 30.09.2015 amounting to INR 13,000

lakh and INR 4,000 Lakhs respectively with repayment period of 3 years excluding 1 year moratorium period. The rate of interest is 12.25% upto 31.08.2018 and 10.25% wef 01.09.2018.

Repayment of Principal instalment has been reschedule to start from April 2019 and repayable in 36 equal monthly instalment ending in march 2022 instead of 36 equated monthly instalment

originally schedule from October 2016 to September 2019. NINL has provided Corporate guarentee dtd. 24.10.2017 from its managing promotor ie. M/s MMTC Limited ,a Government of

India Under taking for INR 17,000 Lakh.The Company has a negative networth of INR 95,648.97 Lakh as on 31.03.2019

2. Loans include Intercorporate deposits to GRIDCO of INR 37,577.18 Lakhs as on 31.03.2019 (INR 64,366.27 Lakhs as on 31.03.2018).GRIDCO is a State PSU dealing with trading of power.

GRIDCO availed the above inter corporate loan from OMC amounting to INR 1,50,000 lakh on dtd 05.12.2012, 12.09.2014 & 14.07.2015 amounting to INR 50,000 lakh each for their working

capital management executing necessary agreement including escrow agreement among GRIDCO, OMC and Union Bank of India. The period of loan is 6 years including 1 year(1st year) as

moratorium period. The rate of interest is fl oating which is 1.5% over the FD rates offered by SBI on bulk deposits (For 1 crore and above) for a period of 1 to 2 years.


08. DEFERRED TAX BALANCES


Deferred Tax Assets 8,399.40 29,893.64

Less : Deferred Tax Liabilities 3,018.47 -

Add: Mat Credit Entitlement 10,745.77 -

Less : Provision for MAT 10,745.77 -

Net Deferred Tax (Liability)/ Assets 5,380.92 29,893.64

Notes

Signifi cant component of deferred tax assets and liabilities for the year ended March 31, 2019 is as follows:

Opening

balance as at

April 1, 2018

Deferred tax

expense/(income)

recognised in profi t

and loss

Deferred tax

expense/ (income)

recognised in OCI

Deferred tax expense/

(income) recognised in

other equity

Closing Balance as at

March 31, 2019

Deferred tax assets

Retirement benefi t assets 3,661.66 3,513.39 485.13 - 7,660.18

Provisions (2,867.82) 1,635.55 - - (1,232.27)

Property, plant and equipment and 1,367.39 262.09 - - 1,629.48

Investment 338.72 3.29 - - 342.01

Carry Forward loss 29,872.00 (29,872.00) (0.00)

Total 32,371.95 (24,457.69) 485.13 - 8,399.40

Deferred tax liabilities

Intangible assets 2,478.31 540.16 - - 3,018.47

Others

Total 2,478.31 540.16 - 3,018.47

Net Deferred tax assets/(liabilities) 29,893.64 (24,997.85) 485.13 - 5,380.93

3. Loans include Intercorporate loans to IDC, a manufacturer of Ferro Manganese, amounting to Rs. 10515.94 lakh on dtd 12.01.2018 and Rs. 737.54 lakh on dtd.22.09.2018. Besides there is

an outstanding dues against IDC amounting to INR 1,641.05 Lakh as on 31.03.2018. The above loan have been released with a condition to pay INR 200.00 Lakh per month with effect from

10th May 2018. The interest rate applicable is OMC’s highest interest rate on Fixed Deposit plus 2%.

4. The above loans and inter-corporate deposits have been given for business purpose.


respectively in which any director is a partner or a director or a member .

6. Advances to employees like Travelling Expenses, Misc Expenses, Medical Reimbusement bills and other Staff Welfare Expenses outstanding for more than twelve months are adequately

provided for and loans / advances like Computer Loan, House Building Advance, Motor Car / Cycle Advance, Marriage Advance TV Advance where no recovery are made for more then six

years are also provided for..


09. OTHER NON - CURRENT ASSETS

OPERATING LEASE PAYMENTS


Ore Stock

Iron 9,809.61 10,272.02

Chrome 139.52 188.48

Mangnese 123.93 123.92

Sub Total 10,073.06 10,584.42

Less Provision for Ore Stock

Iron 5,729.08 5,692.67

Chrome 3.95 0.13

Mangnese 0.23 0.14

Sub Total 5,733.26 5,692.94

Less : Provision for Impairment of Ore 153.71 -

Net Ore Stock 4,186.09 4,891.48


Restricted Balances with Bank :

Gandhamardan (With Steel & Mines Department) 33,175.21 33,175.21

Kaliapani (With OMC Limited) 9,069.63 8,606.67

Deposit with LIC Gratuity (Net) 1,494.90 2,260.55

Preliminary Expenses 16.34 16.34

Sub Total 44,161.32 44,468.84

TOTAL 48,347.41 49,360.32

Minimum Lease Payments


Not later than 1 year 4.82 4.82

Later than one year but not later than fi ve years 19.28 19.29

Later than fi ve years 381.14 385.96

Total minimum lease commitments 405.24 410.07

1. Resticted Balance with Bank represent fi xed deposit of INR 9,069.63 lakh on account of sale proceeds of seized chrome ore.

2. The Company has taken land under operating leases. The following is the summary of future minimum lease rental payments under operating leases entered into by the Company:

3. Deposit with LIC Gratuity (Net) constitute excess of plan assets over the liability on account of Grauity and suitably disclosed vide Note No-30.

– During the year ended March 31, 2019, total operating lease rental recognised in the statement of profi t and loss was INR 4.82 Lakhs, (Previous Year INR 4.82 Lakhs)

– Signifi cant leasing arrangements include lease of land for periods ranging between 70 to 99 years with extension option.






been included in the turn over during the current year (Previous year INR 731.80 lakh has been included in turnover) and deposited Royalty, Sales Tax & other Statutory payments with the

Concerned Authorities. After deduction of the above Statutory payments, which was deposited with the Concerned Authorities, the balance sale proceeds of INR NIL (Previous year INR

505.10 lakh) were deposited in Bank and treated in the account as Restricted Balances with Bank under the head “other Non Current Assets” as matter is subjudice.

5. A quantity of 80,603.325 MT of Chrome Ore of Kalipani , which was seized by Director of Mines, has been disposed off. As per order of Hon’ble Court of JMFC, Jk Road, vide Misc. case no.

71 of 2009, the amount realised from sales of the said Ore has been kept in a separate Bank Account along with interest earned on this

6. Balances with banks which are restricted from being exchanged or used to settle a liability for more than 12 months from the balance sheet date are classifi ed under Non-current

assets.





Finished goods

Iron Ore 39,604.20 35,642.79

Chrome Ore 13,962.49 14,154.30

Manganese Ore - -

Lime stone - -

Bauxite Ore 2,821.01 244.86

Sub Total 56,387.70 50,041.95

Less Provision for shortage of ore

Iron Ore 1,288.00 1,207.30

Chrome Ore 3.82 130.81

Managanese Ore - -

Bauxite Ore 0.39 2.96

Sub Total 1,292.21 1,341.07

Net Ore Stock 55,095.49 48,700.88

Stores & Spares 1,464.44 1,492.26

Others - -

Non inventorised stores 23.72 18.58

Sub Total 1,488.16 1,510.84

Less: Provision on stores and spares 759.44 956.00

Total 728.72 554.84

Total Inventories 55,824.21 49,255.72

10. INVENTORIES






been included in the turn over during the current yeari (Previous year INR 731.80 lakh has been included in turnover) and deposited Royalty, Sales Tax & other Statutory payments with the

Concerned Authorities. After deduction of the above Statutory payments, which was deposited with the Concerned Authorities, the balance sale proceeds of Rs.NIL (Previous year INR 505.10

lakh) were deposited in Bank and treated in the account as Restricted Balances with Bank under the head “other Non Current Assets” as matter is subjudice.

2. A quantity of 80603.325 MT of Chrome Ore of Kalipani , which was seized by Director of Mines, has been disposted off. As per order of Hon’ble Court of JMFC, Jk Road, vide Misc. case no.

71 of 2009, the amount realised from sales of the said Ore has been kept in a separate Bank Account along with interest earned on this amount.




11. TRADE RECEIVABLES


Trade receivables


Unsecured, considered Doubtful 200.37 200.37

Less: Provision for Doubtful debt. 200.37 200.37

TOTAL 10,797.22 14,261.26



One month 136.55 - 136.55

Two months 13.06 - 13.06

Three months 259.35 - 259.35

Between three to six months - - -

More than six months 309.69 200.37 109.32

TOTAL 10,966.00 200.37 10,765.63



One month 2,512.15 - 2,512.15

Two month 339.99 - 339.99

Three months 345.69 - 345.69

Between three to six months 1,795.87 - 1,795.87

More than six months 5,263.35 200.37 5,062.98

TOTAL 14,461.63 200.37 14,261.26


Balance at the beginning of the period 200.37 -

Additions during the period - 200.37

Utilised during the period - -

Balance at the end of the period 200.37 200.37

Notes

1. Trade receivables are dues in respect of goods sold or services rendered in the normal course of business.

2. Where no due date is specifi cally agreed upon,the normal credit period allowed by the Company is taken into consideration for computing the due date which may vary depending upon the

nature of goods or services sold and the type of customers, etc.

3. Trade receivables are further analysed as:

4. Movement in allowance for credit losses in respect of trade receivables: In determining the allowances for doubtful trade receivables the Company has used a practical expedient by

computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for

forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix


respectively in which any director is a partner or a director or a member.


Notes

Earmarked cash and bank balances consist of fi xed deposit

1. Pledged againsat LC provided to East Coast Railway INR 149 Lakh

2. Pledged against Bank guarantee issued to different statutory authorities: INR 15,928.21 Lakh

12. CASH AND CASH EQUIVALENTS & BANK BALANCES OTHER THAN (2) ABOVE


1. Balances with banks

– Unrestricted Balance with banks in Current Account 8,622.34 4,754.03

2. Cash in hand 1.46 2.97

3. Others - -

Cash and cash equivalents as per balance sheet 8,623.80 4,757.00

Balances with banks (Other than Cash & Cash Equivalents above)

In Deposit Account- -

Less than 3 months 78,300.00 34,600.00

Less than 3 months (Earmarked) 16,077.21 1,976.21

Total 94,377.21 36,576.21

Total Cash and Bank Balances 1,03,001.01 41,333.21


Name of Bank Face Value of FD (₹ in Lakh)

2018-19 2017-18

UCO Bank, Govternment of Odisha Secretariate Br. 86 86

Sub Total 86 86

HDFC Bank Limited ,Samantarapur 6,893 8,000

HDFC Bank Limited ,Samantarapur 720 -






HDFC Bank Limited ,Saheed Nagar

- 4,500

Sub Total 50,751 49,638

Andhra Bank, Main Branch 151 90



Sub Total 151.00 270.00

Andhra Bank,OMC Campus Branch 5,936 5,630

Andhra Bank,OMC Campus Branch 3,133 -

Sub Total 9,070 5,630

Axis Bank 27

6,500

25.00

-

Sub Total 6,527 25

Canara Bank - 2,976

Sub Total - 2,976

ICICI Bank, Sriya Square 5,000 5,000

Sub Total 5,000 5,000

State Bank of India,Main Br, 149 149

Sub Total 149 149

Karnatak Bank 57 57

Sub Total 57 57

Syndicate Bank 50 58

41

Sub Total 50 99

Total 71,841 63,931


13. OTHERS


Advances to staff 1,305.67 825.14

Interest accrued on loans and deposits 11,832.44 7,748.00

Sundry Dues Realisable 920.92 640.26

Deposits with bank - -

More than three months maturity Value (Refer Note No-13 ( ii) 66,248.51 81,000.00

More than three months maturity Value( Earmarked) 46,694.45 53,348.48

TOTAL 1,27,001.99 1,43,561.88

1. Earmarked deposit with Bank consist of Fixed deposits pledged against Bank guarentee issued to different statutory authorities : INR 46,694.45 Lakh.

2. Deposits with Banks (Unrestricted) includes FD amounting to INR 515.49 crores parked for a period more than 12 months.



14. CURRENT TAX ASSETS AND LIABILITIES


Current tax assets

Advance Tax/ TDS 6,36,664.68 1,23,890.61

Refund Receivable 3,770.63 -

Total 6,40,435.31 1,23,890.61

Less: Income tax Provision 5,60,704.17 42,692.10

Total 79,731.14 81,198.51

15. OTHER CURRENT ASSETS


Prepaid Expenses 1,338.78 496.52

Advances to suppliers & others 10,949.05 6,461.03


Balance with Government Authority 22,745.30 6,531.63

Total 35,037.95 13,494.00

Balance with Government Authority includes GST input credit.

16. EQUITY SHARE CAPITAL


Equity Share Capital 3,145.48 3,145.48

TOTAL 3,145.48 3,145.48

Authorised Share Capital

1,00,00,000 nos. of equity shares of ₹100/- each

(Previous year 1,00,00,000 nos. of equity shares of

₹100/- each)

10,000.00

10,000.00

Issued , Subscribed & Paid up capital comprises :

31,45,480 nos. of equity shares of ₹100/- each 3,145.48 3,145.48

Total 3,145.48 3,145.48

Notes 1. The movement in subscribed and paid up share capital is set out below:


No. of shares No. of shares

Ordinary shares of Rs.100 each - - - -

At the beginning of the year 31,45,480 3145.48 31,45,480 3145.48

Shares allotted during the year - - - -

31,45,480.00 3,145.48 31,45,480.00 3,145.48

Shares in the company held by each shareholder holding more than 5% shares

2. The Corporation has only one class of share referred to as equity shares having a par value of INR 100/-. Each holder of equity shares is entitled to one vote per share. In the event of

liquidation of the Corporation, the holders of equity shares will be entitled to receive any of the remaining assets of the corporation, after distribution of all preferential amounts. However, no

such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Name of Shareholder As at March 31, 2019 (₹ in Lakh) As at March 31, 2018 (₹ in Lakh)

Hon’ble Governor of Odisha

No. of Shares Held

( Face value of Rs. 100 each)% of Total Shares

No. of Shares Held

( Face value of Rs. 100 each)% of Total Shares

31,45,390 99.9971 31,45,390 99.9971


17. OTHER EQUITY


General Reserve (Refer Note No-17-a) 2,30,802.84 2,30,802.84

Retained earnings 3,16,351.76 2,98,503.99

Capital Reserve 1,770.68 1,770.68

Total 5,48,925.29 5,31,077.51

GENERAL RESERVE


Balance at the beginning of the year/period 2,30,802.84 2,30,802.84

Movements - -

Balance at the end of the year/period 2,30,802.84 2,30,802.84

RETAINED EARNINGS


Balance at the beginning of the period 2,98,503.99 3,41,314.96

Profi t/Loss attributable to owners of the Company 79,028.60 (45,478.71)

Other comprehensive income arising from remeasurement

of defi ned benefi t obligation net of income tax (903.17) 2,667.74

Payment of dividends on equity shares 50,000.00 -

Tax On Dividend 10,277.65 -

Transfer to General Reserve -

Balance at the end of the period 3,16,351.76 2,98,503.99

CAPITAL RESERVE


Balance at the beginning of the year/period 1,770.68 1,770.68

Movement during the year/period 0.00 -

Balance at the end of the year/period 1,770.68 1,770.68

General Reserve

Under the erstwhile companies Act 1956, a general reserve was created through an annual transfer of net profi t at a specifi ed percentage in accordance with applicable

regulations. Consequent to the introduction of companies Act 2013, the requirement to mandatory transfer a specifi ed percentage of net profi t to general reserve has

been withdrawn.

18. PROVISIONS


Employee Benefi ts

Gratuity - -

Leave Encashments (Net) 870.21 167.99

Payable on retirement 8,051.71 7,223.39

Others

Mine Closure 15,218.27 7,866.91

Total 24,140.19 15,258.29

NON CURRENT (A)


19. TRADE PAYABLES

1. Provision for employee benefi ts include long term benefi ts such as for early retirement, long service awards, leave encashment, retirement transportation allowance, retirement gift, retired

employee medical benefi t and six month salary in lieu of pension at the time of superannuation. (Disclosure at Note No 30)

2. The holder of mining lease has the responsibility to ensure that the protective measure including reclamation and rehabilitation works have been carried out in accordance with approved

mine closure plan. Accordingly the Corporation has created a provision to meet the expenses on account of Progressive Mines Closure Plan and Final Mines Closure Plan. Due to diffi culty/

uncertainty in making a proper estimation of expenses to be incurred at the time of closure of mines, the Corporation has considered INR 3.00 lakh/ha as mine closure liability being the

amount of fi nancial assurance provided to IBM in the form of Bank Guarantee(BG). The liability has been adjusted with infl ation and discounting factors.

3. The Board of Director in its 429th meeting held on 29.01.2019 have approved OMC Employees’ Superannuation benefi t scheme and recommended to the Government of Odisha (GoO) for

approval. Pending approval of GoO , the estimated Cash out fl ows to the Corpus of the scheme amounting to INR 580 crore has not been provided for in the Accounts.

Particular As at March 31, 2019 As at March 31, 2018

Employee Benefi ts

Gratuity - -

Leave Encashments 937.71 868.97

Payable on retirement 191.32 174.53

Total 1,129.03 1,043.50

CURRENT (B)


– The principal amount remaining unpaid to


– The interest due thereon remaining unpaid to


– The amount of interest due and payable for

the period of delay in making payment (which

have been paid but beyond the appointed day

during the year) but without adding the interest

specifi ed under this Act

– The amount of interest accrued during the year

and remaining unpaid at the end of the year

-

-

-

-

-

-

-

-

1. The amount due to Micro and Small Enterprises as defi ned in the “The Micro, Small and Medium Enterprises Development Act, 2006” has been determined to the extent such parties have

been identifi ed on the basis of information available with the Company. The disclosures relating to Micro and Small Enterprises are as under:

20. OTHER FINANCIAL LIABILITIES


Others:

Security & Earnest Money Deposits 9,704.32 6,808.06

Capital Creditors 248.85 248.85

618.16

Total 10,571.34 7,056.91

21. OTHER CURRENT LIABILITIES


Governments & Others 2,407.22 5,108.84

Indirect Tax Payables 5,225.31 11,851.17

Customers 19,791.28 13,719.84

Other Statutory Dues Payable 244.13 144.58

2.29 1.75

Total 27,670.23 30,826.18

Party-wise advance received from Customers’ Account is under reconciliation. Upon crystallization & confi rmation, disclosure and report/return as applicable shall be made.


Creditors for supplies and services 18,008.50 27,097.52

Creditors for accrued wages and salaries 1,038.70 3,922.71

Others 6.27 -

Total 19,053.47 31,020.23


1. Sale of chrome ore & concentrate includes excise duty of INR NIL ( previous year INR 219.32 lakh) levied on sale of chrome concentrate from COBP plant.



Supreme Court for allowing it to sell the ore.

3. Honorable Supreme Court, had directed while disposing I.A. No.3402 in I.A.No.2378 in 2164 with I.A. no.3433 in Writ Petition (Civil) No (s). 202 of 1995, to take steps to sell all the dumped

materials from the Gandhamardan Forest Area and deposit the sale proceeds in a Nationalized Bank and the amount can be released to OMC, only after obtaining Order from the Court.

There is no sale during current year (Previous year 1.15 lakh MT) of Iron Ore were sold to various agencies and accordingly nothing has been included in the turn over during the current yeari

(Previous year INR 731.80 lakh has been included in turnover) and deposited Royalty, Sales Tax & other Statutory payments with the Concerned Authorities. After deduction of the above

Statutory payments, which was deposited with the Concerned Authorities, the balance sale proceeds of INR NIL (Previous year INR 505.10 lakh) were deposited in Bank and treated in the

account as Restricted Balances with Bank under the head “other Non Current Assets” as matter is subjudice.

4. As on dtd 31.03.2019 the Company have sold 29.856 Lakh of Iron Ore from the said Gandhamardan Block amounting to INR 52,314.67 Lakh and included in its sale from Financial Year 2012-

13 till 2018-19.

22. REVENUE FROM OPERATIONS


Sale of Ore

Iron Ore 2,55,954.11 1,70,094.17

Chrome Ore & Concentrate 1,35,352.94 1,15,197.63

Manganese Ore - 16.80

Bauxite Ore 13,897.47 -

4,05,204.52 2,85,308.60

23. OTHER INCOME

Particulars

For the Period Ended March 31, 2019 (₹ in Lakh) For the Period Ended March 31, 2018 (₹ in Lakh)

Interest Income

Interest income from Bank Deposits. 17,176.22 18,205.27

Interest income from other fi nancial assets. 14,555.07 8,715.02

31,731.29 26,920.29

Other non-operating income (net of expenses directly attributable to such income)

Rental Income 46.56 53.06

Reconciliation effect of old balances including write off 7,929.44 707.56

Other Miscellaneous Income 3,857.37 3,748.68

11,833.37 4,509.30

Total 43,564.66 31,429.59

Identifi ed non moving outstanding Credit balances appearing under various head of account have been reconciled and transferred to income.

24. CHANGES IN INVENTORIES OF FINISHED GOODS, STOCK IN TRADE & WORK IN PROGRESS.


Change in Ore Stock :-

A. Opening Stock

Iron Ore 45,914.81 41,791.83



Bauxite Ore 244.86 -

Total (A) 60,626.37 56,274.25

B. Closing Stock

Iron Ore 49,413.81 45,914.81



Bauxite Ore 2,821.01 244.86

Total (B) 66,460.76 60,626.37

Net Changes (A-B) (5,834.39) (4,352.12)


25. EMPLOYEE BENEFIT EXPENSE


Salaries and Wages 17,030.10 21,807.77

Contribution to provident and other funds 2,385.50 2,807.63

Staff Welfare expenses 3,346.99 2,091.15

Total 22,762.59 26,706.55

26. FINANCE COSTS

Particulars

For the Period Ended March 31, 2019(₹ in Lakh) For the Period Ended March 31, 2018 (₹ in Lakh)

Interest costs

Interest on bank overdrafts and loans 546.57 848.50

Other expense ( Bank Commission & Charges) 4.49 24.35

Total interest expenses for fi nancial liabilites. 551.06 872.85

Exchange differences losses - -

Total 551.06 872.85

During the year funds have been borrowed to meet the immediate requirement on short term basis.

27. OTHER EXPENSES


1. Production and Processing Expenses

Ore Raising 54,193.19 38,159.31

Transportation 3,941.80 1,595.68

Machinery Hire Charges 16.04 261.21


Repair & Maintenance to Machinery 15.60 13.00

Prospecting Expenses 5.95 9.76

Exploration Expenses 958.56 514.97

Dereservation Plan 0.07 -

Afforestation 25.65 176.38

Forest Environment Expenses 10.37 -

Mining Plan Fees 135.92 166.86

Mine Closure Liability 7,351.36 3,575.71

Consent Fees 89.38 81.19

Mine Environment 143.04 81.21

Safety Week Expense 86.21 18.22

Maintenance of Lease-Hold Area 397.84 37.61

Compensation for Excess Mining 69,361.16 2,09,512.10


1,37,330.07 2,54,784.02

2. Stores and spares consumed

Explosives 0.09 0.88

Drilling Accessories Consumed 2.07 4.77

Safety equipment consumed 16.23 13.74



Provision / Written back against non-moving stores

and spares (652.04) 101.30

Provision against slow-moving stores and spares 455.45 3.26

Mining Tools Consumed 0.97 1.37

Machinery Spare Consumed 27.97 31.98

Machine Insurance 9.73 6.13

Other Store Consumed 55.29 64.29


Laboratory Consumed 0.70 0.19

Tyre Tube Battery consumed 14.64 9.88

Motor Vehicle Spares Consumed 0.00 0.17

Electrical Store Consumed 42.37 29.19

663.02 860.65

3. Administrative Expenses

Travelling expenses

– Domestic 120.58 115.50

– Directors-Domestic 9.35 10.08

– Directors-Foreign 10.89 11.73

Auditor’s Remuneration

– For Statutory Audit 6.60 8.20

– For Tax Audit 1.65 2.05

– For Certifi cation on CFS & Reporting on ICOFR 2.00 2.00

Payment to Cost Auditors 1.50 1.50

Fees & Tariff 92.26 85.85

Repair & Maintenance to Building 1,308.10 795.24

Repair & Maintenance to Others 548.89 339.48

Annual Maintenance Contract 74.50 35.25

House Keeping Expenses 7.93 14.04

Rent 394.66 269.37

Rates & Taxes 26.02 21.95

Insurance 0.38 0.11

Motor Vehicle Insurance 10.87 11.29

Dead Rent 519.93 564.63

Motor Vehicle Tax 6.19 7.77

Printing & Stationary 122.93 63.47

Telephone & Postage 35.63 29.41

Periodicals & Magazines 4.96 3.49

Hire Charges 1,254.85 948.48

ERP/SAP Expenses 1,145.27 578.15

Guest House Expenses 26.08 27.07

Survey Expense - 2.43

Watch & Ward 4,325.65 3,749.29

Consultancy Charges 447.00 360.06


Donation 12,016.10 7,007.50

Electricity Charges of Offi ces 47.95 49.99

22,725.75 15,323.05


During the current year, the Corporation has paid an amount of INR 693.61 Crore towards compensation for consent to operate and mining plan violation (Previous year INR 2,095.12 Crore towards

compensation for excess mining of Iron Ore and Manganese Ore for environmental clearance and forest clearance as per direction of the Hon’ble Supreme Court of India.

In respect of compensation for forest clearance and environmental clearance of South Kaliapani & Sukrangi mines amounting to INR 1,690.00 Crore has been disclosed under contingent liability

vide Note No 29- as the matter is subjudice.


4. Selling & Distribution

Royalty 89,214.55 50,593.69

User Fees 199.32 131.92

Contribution to District Mineral Foundation 26,764.36 14,982.01

Contribution to National Mineral Exploration Trust 1,784.29 998.80

Service Tax on Rotalty, DMF & NMET - 9,097.66

Analysis Charges 451.08 282.88

Selling expenses 283.62 247.77

Advertisement & Publicity 227.45 4,374.51

Transportation,Railway Freight, Wagon Loading,Plot

Rent, etc. 2,705.85 2,097.98

1,21,630.52 82,807.22

5. Other Expenses

Diminution of Current Assets - 6.94

Provision / Written back for Inventories, Claims (8.56) 7,034.02

Profi t /Loss on Sale/Discard/Surveyed of Assets (2.17) (1.27)

Bad Debts Provision - 200.37

Impairment Stock 153.71 -


Swachhata Pakhwada 1.97 3.69

Sustainable Development 7.38 0.48

Amortisation of Land 4.82 4.82

Reconciliation effect of old balances 9.29 285.60

Sponsorship 3,735.15 1,126.14

Peripherial Development Expenses 6,231.61 3,272.59

Corporate Social Responsibilty (CSR) Expenses 1,009.18 2,937.89

Rehabilitation & Resettlement Expenses 116.25 -

Other Miscellaneous Expenses 262.82 171.96

11,956.33 15,043.23

Total (1+2+3+4+5) 2,94,305.69 3,68,818.17


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--

--

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28.

SE

GM

EN

TA

L R

EP

OR

TIN

G

SE

GM

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TA

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G: 2018-1

9

1.

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om

pan

y h

as c

onsid

ere

d o

pera

ting

Iro

n, C

hro

me &

Bauxite m

ines a

s p

rim

ary

seg

ment.

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Do

mestic S

ale

s a

nd

Exp

ort

Sale

s a

re t

he t

wo

geo

gra

phic

al seg

ments

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ince,a

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uctio

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oth

er

facili

ties a

re lo

cate

d in Ind

ia,

seg

men

t assets

excep

t exp

ort

deb

tors

are

sho

wn u

nd

er

do

mestic s

eg

ment.


29.

NO

TE

Mo

ve

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nt

of

Co

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(₹

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vern

ment

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s. T

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pany is c

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the d

em

and

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orities.

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xp

ecte

d t

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e o

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roceed

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favo

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pany a

nd

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t have a

ny m

ate

rial ad

vers

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ffect

on t

he C

om

pany’s

fi n

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l p

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f o

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2.

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and

No

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or

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nd

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te N

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ate

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or

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outh

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st

this

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and

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ority

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date

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Co

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ties u

nd

er

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ing

Head

.

3.

During

the y

ear

the C

om

pany g

iven L

ett

er

of

Cre

dit (LC

) o

f IN

R14

.90 lakh (p

revio

us y

ear

INR

14.9

0 lakh) to

East

Co

st

Railw

ay t

ow

ard

s S

ecurity

to

enab

le R

ailw

ay t

o issue p

aid

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Rs t

ow

ard

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ailw

ay F

reig

ht

for

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n O

re M

ines.

4.

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om

pany h

as g

iven B

ank G

uara

nte

es o

f IN

R 5

3,3

71.9

9 lakh o

n a

cco

unt

of

INR

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40 lakh t

o M

inis

try o

f C

oal, G

ovt.

Of

Ind

ia t

ow

ard

s P

erf

orm

ance S

ecurity

ag

ain

st

allo

tment

of

co

al b

lock,

IN

R 4

,723.1

8 lakh

to H

on’b

le G

overn

er

of

Od

isha

tow

ard

s M

ines D

evelo

pm

ent

and

Pro

ductio

n A

gre

em

ent

of

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din

gam

ali

Min

es a

nd

IN

R 7

,296.8

0 lakh t

o R

eg

ional C

ontr

ole

r o

f M

ines, IB

M t

ow

ard

s F

inancia

l A

ssura

nce f

or

Min

e C

lousure

Pla

n, IN

R 4

56.5

2 lakh t

o O

ISF

fo

r S

ecurity

purp

ose in K

alia

pani, D

aitari &

Bang

ur, IN

R 1

1.3

8 L

akh t

o O

ffi c

e o

f th

e E

xecutive

Eng

ineer

tow

ard

s G

round

Wate

r charg

es o

f S

outh

kalia

pani, K

alia

pani, S

ukura

ng

i and

Ko

din

gam

ali.


ParticularsGratuity

(₹ in Lakh)

Leave

Surrender

(₹ in Lakh)

Gift to retired

employees

(₹ in Lakh)

Medical benefi t to

retired employees

(₹ in Lakh)

Six months salary

in lieu of pension

(₹ in Lakh)

Present value of defi ned benefi t obligations as at 01.04.2018 10,808.37 8,950.04 256.70 1,066.90 6011.01


Interest cost 747.60 655.12 18.27 76.66 433.81

Actuarial gain/loss on obligations due to Change in Financial Assumption 161.28 156.27 2.90 11.78 146.44

Actuarial gain/loss on obligations due to Unexpected Experience 614.51 461.14 (67.82) (48.39) 605.14

Benefi ts Paid 1,680.68 430.31 26.18 89.65 453.70

Present value of defi ned benefi t obligations as at 31.03.2019 11,405.97 9,829.42 234.91 1,121.89 6,822.92

2. As against gratuity liabilty of INR 11,405.97 lakh and leave surrender liability of INR 9,829.42 Lakh as at 31.03.2019, the company has plan assets of the fund amounting to INR 1,2911.43 Lakh

and INR 8,021.50 Lakh towards gratuity and leave surrender respectively. The other defi ned benefi t obligations are unfunded.

3. Table showing changes in Fair Value of Plan Assets in respect of Gratuity and Leave Surrender

Partculars Gratuity (₹ in Lakh) Leave Surrender (₹ in Lakh)

Fair value of Plan Assets at Beginning of period 13,068.92 7,913.08

Interest Income 980.17 609.31

Employer Contributions 505.46 -

Benefi ts Paid 1,680.68 430.31

Return on Plan Assets excluding Interest Income 37.55 (70.57)

Fair value of Plan Assets at End of measurement period 12,911.43 8,021.50

ParticularsGratuity

(₹ in Lakh)

Leave

Surrender

(₹ in Lakh)

Gift to retired

employees

(₹ in Lakh)

Medical benefi t to

retired employees

(₹ in Lakh)

Six months salary

in lieu of pension

(₹ in Lakh)


Net Interest cost (232.57) 45.81 18.27 76.66 433.81

Actuarial gain/loss on obligations due to Change in Financial

Assumption and unexpected experience - 687.98 - - -

Present value of defi ned benefi t obligations as at 31.03.2019 522.32 770.96 69.30 181.24 514.03

4. Table showing Expenses recognised in the Statement of Profi t & loss Account for the year ended 31.03.2019

Particulars

Actuarial gain(-) / loss(+) on obligations due to Change in Financial Assumption 322.41

Actuarial gain(-) / loss(+) on obligations due to Unexpected Experience 1,103.45

Total Acturial gain (-) / Loss (+) 1,425.85

Return on Plan Assets excluding Interest Income 37.55

Balance at the end of the period 1,388.30

Net (Income)/Expense (+) for the period recognised in OCI 1,388.30

5. Table Showing Other Comprehensive Income in the Statement of Profi t & Loss for the year ended 31.03.2019

30. EMPLOYEE BENEFITS

1. Table showing Reconciliation of present value of defi ned benefi t Obligations

1. Defi ned Contribution Plan

a. Provident fund - “In accordance with Indian law, eligible employees of the Company are entitled to receive

benefi ts in respect of provident fund, a defi ned contribution plan, in which both employees and the Company

make monthly contributions at a specifi ed percentage of the covered employees’ salary. The contributions, as

specifi ed under the law, are made to the provident fund set up as an irrevocable trust by the Company”

2. Defi ned benefi t plans

b. Retiring gratuity - The Company has an obligation towards gratuity, a defi ned benefi t retirement plan covering

eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death while

in employment or on termination of employment as per the Gratuity Act 1972. Vesting occurs upon completion

of fi ve years of service. The Company makes annual contributions to Life Insurance Corporation of India. The

Company accounts for the liability for gratuity benefi ts payable in the future based on an actuarial valuation.

The provisions towards gratuity, leave surrender, gift to retired emploees, medical benefi t to retired employees

and six months salary in lieu of pension as Superannuation Benefi t on superannuation are made by actuarial

valuation in terms of provisions of Ind As-19.


Particulars Gratuity Leave SurrenderGift to retired

employees

Medical benefi t to

retired employees


lieu of pension

Discount Rate 7.50% 7.50% 7.50% 7.50% 7.50%

Expected Return on Plan Asset 7.50% 7.50% N/A N/A N/A

Rate of Compesation Increase (Salary Infl ation) 10.00% 10.00% N/A 10.00% 10.00%

Pension Increase Rate - N/A N/A N/A N/A

Average Expected future Service (Remaining

Working Life)11 11 10 10 9

Mortality TableIALM 2006-2008

Ultimate

IALM 2006-2008

Ultimate

IALM 2006-2008

Ultimate

IALM 2006-2008

Ultimate

IALM 2006-2008

Ultimate

Super Annuation at age-Male 60 60 60 60 60

Super Annuation at age-FeMale 60 60 60 60 60

Early Retirement & Disablement (All Causes

Combined)

1% to 3%

depending on age

1% to 3%

depending on age

1% to 3%

depending on age

1% to 3%

depending on age

1% to 3% depending

on Age

Voluntary Retirement Ignored - Ignored Ignored Ignored Ignored

6. Table Showing Plan Assumptions considered in Actuarial Valuation for the year ended 31.03.2019

Particulars Gratuity Leave Surrender Gift to retired employeesMedical benefi t to retired

employees


lieu of pension

Age Mortality (Per Annum) Mortality (Per Annum) Mortality (Per Annum) Mortality (Per Annum) Mortality (Per Annum)

25 0.000984 0.000984 0.000984 0.000984 0.000984

30 0.001056 0.001056 0.001056 0.001056 0.001056

35 0.001282 0.001282 0.001282 0.001282 0.001282

40 0.001803 0.001803 0.001803 0.001803 0.001803

45 0.002874 0.002874 0.002874 0.002874 0.002874

50 0.004946 0.004946 0.004946 0.004946 0.004946

55 0.007888 0.007888 0.007888 0.007888 0.007888

60 0.011534 0.011534 0.011534 0.011534 0.011534

65 0.0170085 0.0170085 0.0170085 0.0170085 0.0170085

70 0.0258545 0.0258545 0.0258545 0.0258545 0.0258545

ParticularsGratuity

(₹ in Lakh)

Leave

Surrender

(₹ in Lakh)

Gift to retired

employees

(₹ in Lakh)

Medical benefi t to

retired employees

(₹ in Lakh)

Six months salary

in lieu of pension

(₹ in Lakh)

1 1,192.70 972.24 5.80 90.11 102.45

2 1,241.11 1,021.70 25.25 94.22 455.78

3 1,411.26 1,168.20 29.59 99.77 590.52

4 1,406.39 1,158.18 31.15 104.76 679.42

5 1,225.63 986.48 31.92 109.58 686.49

6 to 10 5,930.06 4,774.31 126.63 577.73 2,896.73

More than 10 years 10,538.22 12,110.62 177.07 1,554.45 16,645.79

Total Undiscounted Payments Past and Future Service - - - - -

Total Undiscounted Payments related to Past Service 22,945.37 22,191.74 427.41 2,630.61 22,057.17

Less Discount For Interest 11,539.40 12,362.32 192.50 1,508.72 15,234.24

Projected Benefi t Obligation 11,405.97 9,829.42 234.91 1,121.89 6,822.92

8. Table Showing Benefi t Information Estimated Future Payments (Past service)

7. Table Showing Mortality


31. FINANCIAL INSTRUMENTS

Capital Management - The Company’s capital

management is intended to create value for

shareholders by facilitating the meeting of long

term and short term goals of the Company.

The Company determines the amount of capital

required on the basis of annual business plan,

coupled with long term and short term strategic

investing plan. The funding requirements are met

through equity, convertible and non- convertible

debt securities, and other short term and long

term borrowings. The Company’s policy is aimed

at combination of short term and long term

borrowings.

The Company monitors the capital structure on the

basis of net debt to equity ratio and maturity profi le

of the overall debt portfolio of the Company.

Disclosure on Financial Instruments

This section gives an overview of the signifi cance

of fi nancial instruments for the Company and

provides additional information on balance sheet

items that contain fi nancial instruments.

Financial assets and liabilities

The following table presents the carrying amount

and fair value of each category of fi nancial assets

& liabilities as at March 31, 2019


(₹ in Lakh)

Amortised

cost

(₹ in Lakh)

Derivative instruments

other than in hedging

relationship (₹ in Lakh)




(₹ in Lakh)

Classifi ed as fair

value through

statement of profi t

& loss (₹ in Lakh)

Total Carrying

Value

(₹ in Lakh)

Total Fair Value

Financial assets

(₹ in Lakh)

Financial assets

Investments - - - - - -

Loans 66,887.70 - - - 66,887.70 66,887.70



Cash and bank balances 1,02,381.83 - - - 1,02,381.83 1,02,381.83




Trade payables 19,047.20 - - - 19,047.20 19,047.20




(₹ in Lakh)

Amortised

cost

(₹ in Lakh)

Derivative

instruments other

than in hedging

relationship

(₹ in Lakh)




(₹ in Lakh)

Classifi ed as fair value

through statement of

profi t & loss (₹ in Lakh)

Total Carrying

Value

(₹ in Lakh)

Total Fair Value

Financial assets

(₹ in Lakh)

Financial assets

Investments


Loans 94,386.56 - - - 94,386.56 94,386.56


Cash and bank balances 41,330.48 - - - 41,330.48 41,330.48




Trade payables 31,020.23 - - - 31,020.23 31,020.23








Trade payables 19,047.20 19,047.20 19,047.20 - -







Trade payables 31,020.23 31,020.23 31,020.23 - -



Financial instruments that are measured

subsequent to initial recognition at fair value,

grouped into Level 1 to Level 3, as described

below:

Quoted prices in an active market (Level 1):

This level of hierarchy includes fi nancial assets

that are measured by reference to quoted prices

(unadjusted) in active markets for identical assets

or liabilities. This category consists of investment

in quoted equity shares, quoted corporate debt

instruments and mutual fund investments.

Valuation techniques with observable inputs

(Level 2): This level of hierarchy includes fi nancial

assets and liabilities, measured using inputs other

than quoted prices included within Level 1 that are

observable for the asset or liability, either directly

(i.e., as prices) or indirectly (i.e., derived from

prices). This level of hierarchy includes Company’s

over-the-counter (OTC) derivative contracts.

Valuation techniques with signifi cant

unobservable inputs (Level 3): This level of

hierarchy includes fi nancial assets and liabilities

measured using inputs that are not based on

observable market data (unobservable inputs). Fair

values are determined in whole or in part, using

a valuation model based on assumptions that

are neither supported by prices from observable

current market transactions in the same instrument

nor are they based on available market data. The

main items in this category are investment in

unquoted equity shares, measured at fair value.

The short-term fi nancial assets and liabilities are

stated at amortized cost which is approximately

equal to their fair value.

Financial risk management

In the course of its business, the Company is

exposed primarily to interest rates, liquidity and

credit risk, which may adversely impact the fair

value of its fi nancial instruments.

The Company has a risk management policy which

covers the risks associated with the fi nancial

assets and liabilities such as interest rate risks and

credit risks. The risk management framework aims

to:

1. Create a stable business planning

environment by reducing the impact of

currency and interest rate fl uctuations on the

Company’s business plan.

2. Achieve greater predictability to earnings

by determining the fi nancial value of the

expected earnings in advance.

3. Market Risk

Market risk is the risk of any loss in future

earnings, in realizable fair values or in future cash

fl ows that may result from a change in the price

of a fi nancial instrument. The value of a fi nancial

instrument may change as a result of changes in

the interest rates, foreign currency exchange rates,

equity price fl uctuations, liquidity and other market

changes. Future specifi c market movements

cannot be normally predicted with reasonable

accuracy.

Credit Risk

Credit risk is the risk of fi nancial loss arising

from counter part failure to repay or service

debt according to the contractual terms or

obligations. Credit risk encompasses both the

direct risk of default and the risk of deterioration of

creditworthiness as well as concentration risks.

Liquidity Risk

Liquidity risk refers to the risk that the Company

cannot meet its fi nancial obligations. The objective

of liquidity risk management is to maintain

suffi cient liquidity and ensure that funds are

available for use as per requirements.

The following table shows a maturity analysis

of the anticipated cash fl ows including interest

payable for the Company’s nonderivative fi nancial

liabilities on an undiscounted basis, which

therefore differ from both carrying value and fair

value.


TransactionsSubsidiaries

(₹ in Lakh)

Associates and Joint

ventures (₹ in Lakh)

Key Management


Relatives of Key Management


Trust

(₹ in Lakh)

Government of

Odisha (₹ in Lakh)

Sale of goods (NINL)

Financial Year 2018-19 - 25,852.32 - - - -

Financial Year 2017-18 - 10,840.27 - - - -

Dividend paid

Financial Year 2018-19 - - - - - 50,000.00

Financial Year 2017-18 - - - - - -

Contributions made

Financial Year 2018-19 - - - - 2,519.26 -

Financial Year 2017-18 - - - - 2,121.50 -

Interest on loan given

Financial Year 2018-19 - 1,979.77 - - - -

Financial Year 2017-18 - 2,232.22 - - - -

Interest on Sundry Debtors

Financial Year 2018-19 - 1,221.14 - - - -

Financial Year 2017-18 - 168.24 - - - -

Finance provided

FY 2017-18 - - - - - -

FY 2016-17 - - - - - -

Purchase of investments

Financial Year 2018-19 19.10 - - - - -

Financial Year 2017-18 6.00 1,822.00 - - - -

Provision for impairment of Investments

Financial Year 2018-19 - - - - - -

Financial Year 2017-18 - - - - - -

Remuneration

Financial Year 2018-19 - - 123.24 - - -

Financial Year 2017-18 - - 69.82 - - -

Outstanding receivables

As on 31.03.2019 1.06 26,141.94 - - - -

As on 31.03.2018 1.06 26,129.90 - - - -

Outstanding paybles

As on 31.03.2019 - - - - 288.18 -

As on 31.03.2018 - - - - 274.30 -

32. RELATED PARTY TRANSACTIONS

OMC is controlled by the government of Odisha. Government of Odisha holds 100% ownership interest in OMC including and as on March 31, 2019. The Company’s

related parties principally consist of its subsidiaries, joint ventures, associates, Contrubutory Provident Fund, key management personel and Gratuity Trust and

Government of Odisha. The Company routinely enters into transactions with these related parties in the ordinary course of business at market rates and terms.

Balance as on 31.03.2018 73,97,91,971



Balance as at 31.03.2019 82,43,03,009

Balance as on 31.03.2018 89,50,03,952



Balance as at 31.03.2019 98,29,42,019

Balance as on 31.03.2018 1,04,37,375.00

Additional Provision Recognised 19,12,381.00

Reduction arising from Payments 27,72,215.00

Balance as at 31.03.2019 95,77,541.00

Balance as on 31.03.2018 78,66,91,000



Balance as at 31.03.2019 1,52,18,26,918

Movement of Leave Encashment

Movement of Retirement Benifi t Movement of Provisions made for Employee Loans and Advances

Movement of Other Provisions

33. MOVEMENT OF PROVISIONS


annual report | 2018-19 | the odisha mining corporation · cpf and gratuity trust. ... business at...

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