OMC Annual Report 2013-14 Inner Final 58th Annual Report 2013-14 with... · Sri Pradipta Kumar Mohapatra, IAS, Chairman, OMC Sri Girish S. N. IAS, MD, OMC Sri Parag Gupta, IAS Sri

CIN : U13100OR1956SGC000313

Sri Pradipta Kumar Mohapatra, IAS, Chairman, OMCSri Girish S. N. IAS, MD, OMCSri Parag Gupta, IASSri Deepak Kumar Mohanty, IFSSri Rajesh Verma, IASSri Priyanath Padhi, IFSSri B. K. Rath, OFSSri C. R. DasSri D. K. RoyDr. S. AcharyaSri S. N. PadhiSri G. S. Khuntia

COMPANY SECRETARYSri S. R. Mohapatra

AUDITORSM/s. SRB & AssociatesChartered AccountantsBhubaneswar.

BANKERSANDHRA BANKSTATE BANK OF INDIABANK OF INDIAUNION BANK OF INDIABANK OF BARODAINDIAN BANK

REGISTERED OFFICEOMC HOUSE, BHUBANESWARPh. (0674) 2377400 / 2377463Fax: (0674) 2391629 / 2396889Website: www.omcltd.in

REGIONAL OFFICESJAJPUR ROADDAITARIGANDHAMARDANBANGURKOIRABARBILRAYAGADAANGUL

UNIT-V,

BOARD OF DIRECTORS(AS ON 30.09.2014)

ODISHA MINING CORPORATION LIMITED(A Gold Category State PSU)

No.13597/OMC/2014Date: 04.09.14

NOTICE

Notice is hereby given that the 58th Annual General Meeting of the Odisha Mining Corporation Ltd. for the Financial Year 2013-14 is scheduled to be held on 30th September, 2014 (Tuesday) at 3.00 P.M. in its registered office at Bhubaneswar to transact the following business.

Ordinary Business

1. To receive, consider and adopt the audited Financial Statement of the Company for the year ended st31 March, 2014 together with the Reports of the Board of Directors and the Auditors thereon.

2. Declaration of Dividend for the Financial year 2013-14.

3. To consider and pass the following resolution as an Ordinary Resolution: “RESOLVED THAT

pursuant to the provisions of Sub-section (1) of Section 142 of the Companies Act, 2013, the Board

of Directors of the Company be and is hereby authorized to fix the remuneration of Statutory Auditors

for the year 2014-15.Special Business

4. To approve the remuneration payable to M/s. Niran and Co., Cost Accountants as Cost Auditors of the Company for the Financial year 2014-15 and, if thought fit, to pass with or without modification, the following resolution as an Ordinary Resolution:

“RESOLVED that pursuant to Section 148 and all other applicable provisions, if any, of the companies Act, 2013 and the companies (Audit and Auditor) Rules, 2014 (including any statutory modification (s) or re-enactment thereof for the time being in force), M/s. Niran and Co., cost Accountants, the Cost Auditors appointed by the Board of Directors of the company, to conduct the Audit of Cost records of the Company for the financial year ending March 31, 2015, be paid the remuneration as set out in the Explanatory Statement annexed to the Notice convening this Meeting.”

For & on behalf ofODISHA MINING CORPORATION LTD.

Sd/-Company Secretary

Note:

1. A Member, entitled to attend and vote, is entitled to appoint a proxy to attend and vote instead of himself. A proxy need not be a member.

2. The instrument appointing a proxy shall be either on the proxy forms enclosed or as near thereto as circumstances admit.

3. The explanatory statement pursuant to Section 102 of the companies Act, 2013 setting out the material facts in respect of the business under Item No.4 is annexed hereto.

Memo No. 13598/OMC/2014 Dated: 04.9.14

Copy to the Secretary to Hon’ble Governor of Odisha, Bhubaneswar for kind information & necessary action and to nominate an officer to attend the Annual General Meeting on behalf of the Governor, since the Hon’ble Governor is the majority Shareholder of the OMC Ltd.

Copy to All Share-holders, Board of Directors, OMC Ltd. for information with request to attend the same.

Copy to General Manager (Finance), OMC Ltd, H.O., Bhubaneswar for information and necessary action.

Copy forwarded to M/s. SRB & Associates, Chartered Accountants, the Statutory Auditors, OMC Ltd., Chartered Accountant,5th Floor, IDCO Tower, Bhubaneswar for information with a request to attend the above meeting as per the schedule.


' '

Director's Report

Dear Members,thYour Directors take pleasure in presenting the 58 Annual Report of your Company along with the

staudited statement of accounts and the reports and comments thereon for the year ended on 31 March 2014.

1. FINANCIAL RESULTS:

The financial results for the year under review as compared to the previous year are indicated below in brief.

F.Y 2013-2014 F.Y 2012-2013(Rs. in Lakh) (Rs. in Lakh)

INCOME

Revenue from Operations 185388.17 165814.57 Other Income 58099.91 54061.05

243488.09 219875.62EXPENDITURE

Cost of Materials consumed 1471.78 625.72Changes in inventories 5612.50 (1783.79)Employee benefit expenses 15871.24 14554.66Finance Costs 1578.42 1321.12 Other Expenditures 72904.10 65597.90

97438.04 80315.62PROFIT BEFORE DEPRECIATION 146050.05 139560.00 LESS:Depreciation / Amortisation / Impairment 1054.71 1214.16NET PROFIT/ (LOSS) BEFORE TAX 144995.34 138345.84LESS:Provision for Income Tax & Wealth Tax 58213.81 48735.80NET PROFIT/(LOSS) AFTER TAX 86781.53 89610.05Balance of profit b/f from previous year 329128.73 405964.72

Sub Total 415910.26 495574.77LESS:Dividend* 13116.99 76883.01Corporate Dividend Tax 2229.23 12680.02Transferred to General Reserve 13116.99 76883.01

Balance carried forward to Balance sheet 387447.05 329128.73

* Actual dividend paid for the F.Y. 2012-13 was Rs.40,000.00 lakh. The amount shown under dividend in FY 2013-14 is the residual provision after deducting the provision created & shown in FY 2012-13.

2. PROFITABILITY AND RESERVE & SURPLUS HIGHLIGHTS

The Company earned a Profit Before Tax (PBT) of Rs. 144995.34 lakh (previous year Rs.138345.85 lakh) which is more by 4.81% and Profit After Tax (PAT) of Rs. 86781.53 lakh (previous year Rs.89610.05 lakh) which is less by 3.16% compared to its previous financial year's performance. The Carry Forward Profit stood at Rs.387447.05 lakh at the end of financial year 2013-14 as against Rs. 329128.73 lakh at the end of the previous financial year 2012-13. The Reserve & Surplus position of the Company as on 31.03.2014 was Rs.586417.45 Lakh (previous year Rs.514982.14 lakh)

3. PRODUCTION HIGHLIGHTS

The quantity of production of Iron Ore was 2438504 MT in FY 2013-14 and 2469926 MT in FY 2012-13 was decreased by 1.27% over Previous Financial Year. The quantity of production of Chrome ore 637039 MT in FY 2013-14 & 680490 MT in FY 2012-13 was decreased by 6.397% over Previous Financial Year. The quantity of production of Iron ore & Chrome ore have decreased by 2.38% over previous financial year (production quantity of Ore in FY 2013-14 was 3075543 MT & in FY 2012-13 was 3150416 MT). The quantity of production of Manganese ore, Lime stone & Gem stone has been nil (previous financial year Nil) during the current period.

4. SALES HIGHLIGHTS

There has been increase in sales during the financial year 2013-14 in terms of value over previous financial year by 11.80% ( in FY 2013-14 Rs.185388.17 Lakh & in FY 2012-13 Rs.165814.57 Lakh) . The sale turnover of Chrome ore (in FY 2013-14 Rs.84645.44 Lakh & in FY 2012-13 Rs.54604.78 Lakh) has increased by 55.01% over comparing to previous financial year. Where as the Sales turnover of Iron ore (in FY 2013-14 Rs.100742.73 Lakh & in FY 2012-13 Rs.111209.79 Lakh) has decreased by 9.41% over previous financial year.

The quantity of sale of Chrome ore (in FY 2013-14 was 709261 MT & in FY 2012-13 was 476414 MT) increased by 48.87% over Previous Financial Year. The quantity of sale of Iron Ore (in FY 2013-14 was 3191483 MT & in FY 2012-13 was 2710304 MT) increased by 17.75% over Previous financial Year. The quantity of sale of Iron ore & Chrome ore together have increased by 22.41% over previous financial year (Sales quantity of Ore in FY 2013-14 was 3900744 MT & in FY 2012-13 was 3186718 MT). The quantity of sale of Manganese ore lime stone & Gem stone has been nil (previous financial year Nil) during the current period.

5. OTHER INCOME HIGHLIGHTS

Other Income of Rs.58099.91 Lakh (previous year Rs.54061.05 Lakh) mainly consists of the following:

a) Interest on fixed deposit of Rs. 40636.72 Lakh (previous year of Rs. 48,148.52 Lakh).

b) Interest Received from Income Tax Rs.1200.72 Lakh (previous year Rs.2,428.41 Lakh).

c) Interest received from GRIDCO Rs.4954.44 Lakh (previous year Rs.1613.36 Lakh).

d) Write back of excess liability Rs.9110.16 Lakh (previous year nil).

Other Statistical & Financial Highlights and Results are attached to this Report as Annexure I.

6. IMPORTANT ACTIVITY OF GEOLOGY DIVISION DURING THE FINANCIAL YEAR 2013-14. A) Exploration:

During the Financial Year 2013-14, the following quantum of exploration work has been undertaken in different leasehold areas of OMC for assessment of additional ore reserve, mine planning and delineation of barren areas.

Sl. No. Item of work Annual Target Achievement(F.Y.2013-14) (F.Y.2013-14)

1 Geological Mapping 688 hects 434.15 hects

2 Core Drilling 7650 mtrs 5154.50 mtrs

3 Sampling 2137nos. 4291 nos. & 90 nos. Q/C samples at Daitari

The above exploration work resulted in assessment of following reserve:

Name of the Mineral Reserve assessed of different grades

Iron Ore Balda Palsa Jajang ML: 3.21 lakh MT (2.43 lakh MT of +58 & 0.78 lakh MT of -58%Fe)

Seremda Bhadrasahi ML: 1.35 lakh MT

Chromite South Kaliapani ML : 1.29 lakh MT of Mgr to low grade

B) Geological ReportDuring the year Geological reports for Iron Ore of Kumritar ML, Banspani ML and Khandbandh ML have been updated.

C) Mineral Concessionnd2 RML in respect of Tiringpahar ML for Iron Ore has been filed for a further period of 20years, (24.08.14 to

23.08.34).

7. DIVERSIFICATION/EXPANSION :-(a) JV BETWEEN OMC & RTMD

As per the directive of the Government, The Odisha Mining Corporation Limited signed an Agreement with Rio Tinto Mineral Development (RTMD) on 24.2.1995 with a view to develop an integrated rail, port and mines project having production capacity of at least 15 M.T of iron ore per annum from Gandhamardan and Malangtoli leases by forming a Joint Venture Company. The JV Company namely, Rio Tinto Orissa Mining (RTOM) was incorporated in July, 1997 with share holding of 51% by RTMD and 49% by OMC. The project after completion of Feasibility Studies:- Phase-I and Phase-II has not progressed due to non finalization of the Project Development Agreement. Cases filed by OMC & RTMD on winding up of the JV Company are continuing at respective legal forums. Govt. of Odisha has formed a Task Force for formulation of a new Joint Venture Agreement (JVA) & Collaboration Agreement (CA). Draft JVA & CA has been prepared & sent to Government for approval.

(b) DESIGN, ENGINEERING, SUPPLY, CONSTRUCTION, ERECTION, COMMISSIONING & PERFORMANCE GUARANTEE TEST OF A NEW 1000 TPH ORE HANDLING PLANT WITH 3200 TPH MECHANIZED WAGON LOADING SYSTEM INCLUDING RELATED RAILWAY INFRASTRUCTURE FOR IRON ORE MINE AT DAITARI

To boost up iron ore production at Daitari mines, OMC has started one Project for development of mechanized production and dispatch facility for 2.5 million tonnes of iron ore per annum at Daitari. For this purpose the OSCTC area near Baliparbat, Daitari will be utilized. The Government of Odisha has approved the project. M/s L&T has been engaged as the EPC contractor for the project. M/s Dasturco is the Technical consultant for the project. OMC has submitted proposal before Additional Principal Chief Conservator of Forest (APCCF) for obtaining approval of diversion of required forest land for the project.

(c) INSTALLATION OF 9.12 MTPA PROJECT AT GANDHAMARDAN BLOCK-B ML In order to cater to the rising demand of iron ore by the state-based industries, OMC has decided to enhance its iron ore production from its Gandhamardan Block-B mines from the current level of 0.3 MTPA to 9.12 MTPA. MECON is the consultant for the project. Topographical survey of the proposed site is under progress. Tender action for selection of an agency for Geo-technical Investigation work has been completed. Work order will be issued soon. ROM characterization work is entrusted to IMMT, Bhubaneswar. The entire project work is scheduled to be completed by November' 2017.

(d) JV BETWEEN OMC & SIILOMC and Sterile Industries (I) Ltd. (SIIL) signed an MoU on 3.4.1997 for development of Lanjigarh and Karlapat deposits in Kalahandi and Rayagada districts with an aim to mine 3 MTPA bauxite ore, to establish 1 MTPA alumina refinery and 2.2 Lakh TPA aluminum smelter. In the meantime, Government of Odisha has de-linked Karlapat lease from this project of Sterlite and intimated to proceed with Lanjigarh ML only for the time being. M/s Sterlite Industries Ltd executed an Agreement with The OMC Ltd. through its fully owned subsidiary company namely M/s Vedanta Alumina Limited to take up the Lanjigarh project on 5.10.2004. MoEF, Government of India has rejected grant of Stage-II Forest clearance for diversion of 660.749 Ha. of forest land. OMC filed a case before the Hon'ble Supreme Court against the Stage-II rejection order of MoEF, GoI. The Hon'ble Supreme Court of India vide its order dtd. 18.4.2013, directed State Government to conduct the fresh Grama Shabas in the affected villages of Lanjigarh bauxite mines. Twelve no. of Grama Shabas were held in 5 villages of Kalahandi District & 7 villages of Rayagada District. As per the decision of the Grama Shabas, MoEF, Government of India rejected the Stage–II forest approval of Lanjigarh Bauxite mines. OMC has requested Government of Odisha, Department of Steel & Mines to advise whether OMC will terminate the JV agreement made between OMC & SIIL or appeal to the MoEF, GoI for re-consideration of stage-II approval.

(e) JV BETWEEN OMC & UTKAL ALUMINA INTERNATIONAL LTD (UAIL)OMC & INDAL executed an Agreement on 8.2.1993 to develop Baphalimali bauxite deposit in Rayagada district for setting up of alumina refinery of 1.00 to 2.5 million tonnes capacity per annum. As per the approval of the GoO, OMC has transferred the lease to Utkal Alumina International Ltd. (new company formed by INDAL) on 10.11.2000. Since the production could not be started and the company has not gained any profit from the Project, UAIL has issued debentures of Rs.3.00 Crores each per annum since 2007.

(f) JV BETWEEN OMC & HINDALCOOMC has signed a MoU with M/s Hindalco on 29.7.1997 to develop Kodingamali and Pottangi bauxite deposits in Koraput district with an aim to establish 1.00 MTPA of alumina refinery and 2.6 lakh TPA aluminium smelter plant. Subsequently, Government of Odisha decided to allot Kodingamali ML only for this project. The Mining Plan & Environmental Clearance for Kodingamali ML have been approved. The Forest Clearance in respect of Kodingamali Bauxite mines is under process at Government level.

(g) COAL MINING BY OMCnd Board of Directors of OMC in their 322 meeting held on 27.06.2000 approved OMC's

diversification proposal for entering into coal mining. To fulfill the growing demand of coal in the state, OMC has entered into coal mining & the status of the coal blocks allocated is as follows.

i. Utkal-D Coal Block :The Ministry of Coal, Government of India vide letter no.47011/1(1) 01/CPAM/CA, dtd. 19.12.2003 allotted the block in favour of OMC over an area of 319.23 ha under Government Dispensation Scheme. The mining plan of Utkal-D block was approved by MoC, GoI.

An agreement was executed between OMC & M/s. Sainik Mining & Allied Services Ltd on 29.12.2003 for development of the block & a JV Company namely M/s. Kalinga Coal Mining Pvt. Ltd (KCMPL) was formed to produce 2.00 MTPA coal. After receiving clarification from the MoC, GoI regarding share holding pattern in the JVC, The OMC Ltd. had taken steps to revise the JV agreement & raising OMC’s equity from 26% to 51%. But, in the meantime, MoC, GoI has de-allocated Utkal-D coal block on 31.12.2012. OMC has requested MoC, GoI to reconsider the de-allocation of Utkal-D coal block vide its letter dtd. 17.01.2013. Finding no other option, OMC filed a case before the Hon’ble High Court of Odisha against the de-allocation order of MoC, GoI. After hearing, the Hon’ble High Court of Odisha has granted interim order that “the Utkal-D coal block, in which the earlier Writ petitioner as well as the present writ petitioner has interest, shall not be allocated to any third party without leave of this Court, no further order need to be passed in this petition”. The above interim order has already been intimated to MoC, GoI & GoO, Dept. of S&M. GoO, Dept of S&M vide its letter dtd. 21.06.13 advised OMC to dissolve the JVC. As per the advice of GoO, OMC requested SMASL to submit their views for amicably winding up the JVC. In the mean time, SMASL filed a case before the Hon’ble High Court of Odisha challenging the dissolution order issued by GoO, Dept of S&M to OMC. Again OMC vide its letter dtd. 9.10.2013 has requested MoC, GoI to re-allocate Utkal-D coal block in favour of OMC.

ii. Nuagaon - Telisahi Coal Block :

The Ministry of Coal, Government of India allotted Nuagaon-Telisahi coal block in favour of The OMC Ltd. & Andhra Pradesh Mineral Development Corporation (APMDC) vide letter no.13016/2006/CA/I, dtd. 28.8.2006 on 50:50 sharing basis under Government dispensation scheme. Both the organizations have engaged MECL for detailed exploration of the block. Drilling work at Nuagaon-Telisahi coal-block has already been completed & final Geological Report has been submitted by MECL. A JV Company namely Nuagaon Coal Company Ltd. (NCCL) has been registered on 11.05.2011. Work order has been issued to CMPDIL for preparation of Mining Plan, DPR & demarcation of block boundary of Nuagaon-Telisahi coal block. MoC, GoI had requested OMC & APMDC to deposit a B.G. of Rs. 243.6 crores only. OMC & APMDC has deposited their share of Bank Guarantee amount of Rs. 121.8 crore separately with the Coal Controllers organization, MoC, GoI. Work order has been issued in favour of M/s Digital Cartography & Services Pvt. Ltd. on 2.6.2014 for undertaking DGPS/ETS Survey & preparation of Cadastral plan for Nuagaon-Telisahi coal block.

iii. Mandakini- B Coal Block :

The Ministry of coal Government of India vide letter no. F.No. 13016/8/2007 – CA – I dtd. 25.07.07 allotted Mandakini – B coal block in favour of the OMC Ltd, Assam Mineral Development Corporation, Meghalaya Mineral Development Corporation & Tamil Nadu Electricity Board on equal sharing basis for power generation. A new JV Company namely Mandakini – B Coal Corporation Ltd. (MBCCL) was formed. Work order was issued to CMPDIL for undertaking Exploration & other services of the Mandakini-B coal block. In the meantime, MoC, GoI has de-allocated Mandakini-B coal block on 05.12.2012 and invoked 50% bank guarantee. Board of Directors of MBCCL in its meeting held on 08.2.2013 decided for dissolution

thof the Corporation & BoDs of OMC in its 398 meeting held on 26.3.2013 approved dissolution of MBCCL. OMC has requested GoO, deptt. of Steel & Mines to accord necessary approval for dissolution of MBCCL. Approval has not yet been received by OMC. OMC vide its letter dtd. 25.10.13 has requested MoC, GoI to re-allocate the Mandakini-B coal block in favour of OMC independently & return of 50% invoked Bank Guarantee. A letter has been sent to the MoC, GoI to return back of the original B.G. submitted by Mandakini-B Coal Corporation Ltd.

iv. Additional allocation of Coal Block :

As per the recommendations of the Board, OMC has sent a letter to GoO for moving the Central Govt. for allocation of 10 (ten) identified coal blocks (6 coal blocks from Talcher Coal-field & 4 coal blocks from IB Valley coal-field) with total reserve of 4348 MT to be developed by a proposed coal mining PSU by

incorporating a 100% subsidiary company of OMC. GoO has accorded in principle approval for formation of a state coal mining PSU as a 100% subsidiary of the OMC Ltd. for developing the identified ten coal blocks proposed for allotment to Odisha Government PSU. MOA, AOA & Organizational structure of the proposed subsidiary Coal Company of the OMC Ltd. has been sent to the Government for approval.

(h) DEVELOPMENT OF A COMMERCIALLY VIABLE FLOW-SHEET TO ESTABLISH A SMALL SCALE BENEFICIATION PLANT TO RECOVER CHROMITE VALUES FROM THE TAILINGS OF CHROME ORE BENEFICIATION PLANT (COBP)

An agreement has been executed between the OMC Ltd. & IMMT, Bhubaneswar on 20.01.2011 for undertaking a study & development of flow sheet for beneficiation of tailings with a view to recover possible Chromite value from the tailings. IMMT has completed the laboratory scale study on tailing beneficiation & has submitted its final report. Basing on the suggestion of IMMT & our in-house technical committee, National Metallurgical Lab (NML), Jamshedpur was requested to intimate its willingness for carrying out a Pilot-scale investigation. NML submitted its revised project proposal to take up this work in two phases. L.O.I. for this work has been issued in favour of NML. Test sample will be dispatched from Chrome Ore Beneficiation Plant (COBP) to NML, Jamshedpur after completion of modification work to the existing COBP.

(i) CONSTRUCTION OF TAILING POND FOR CHROME ORE BENEFICIATION PLANT (COBP)

It was decided to construct a tailing pond over an area of about 6 Ha, adjacent to the existing Chrome Ore Beneficiation Plant (COBP) at South Kaliapani. MECON, Ranchi was appointed as Technical Consultant for this project. Survey work of the proposed site has already been completed. The geotechnical investigation work of this proposed site has been completed. MECON has submitted the technical support data for Basic Engineering & Basic Engineering report for this project.

(j) MODIFICATION OF EXISTING CHROME ORE BENEFICIATION PLANT (COBP)

In order to enhance the Operational Efficiency of the Existing Chrome Ore Beneficiation Plant (COBP) at South Kaliapani, a beneficiation study was carried out at IMMT, Bhubaneswar. Based on the test report of IMMT and Technical consultancy of DASTURCO, Kolkata, tender was floated to carry out the modification work of existing COBP. M/s MBE-CMT (formerly HWMIPL) has been selected for execution of the work at a cost of Rs. 2.80 Crores (approx). Agreement with M/s MBE-CMT to this effect has been executed on 3.11.10. The agency has completed the commissioning for this project. The modified circuit is under Performance Guarantee Test.

(k) INSTALLATION OF NEW CHROME ORE BENEFICIATION PLANT (COBP)

M/s MBE-CMT (formerly HWMIPL) is executing the contract for “Installation of new Chrome Ore Beneficiation Plant (COBP) at South Kaliapani” since 30.10.09. The contract period is rescheduled till September’2014. The Project execution has been badly delayed due to frequent change of Company Management and lack of adequate finance to fund the project by the contractor. Most of the equipments have already reached the site. The excavation work is almost completed. The PCC/ RCC/ Structural fabrication & erection works at site are going on.

(l) ODISHA THERMAL POWER CORPORATION LIMITED

The Odisha Mining Corporation Ltd. (OMC) and Odisha Hydro Power Corporation Ltd., (OHPC), the two Gold rated State PSUs have promoted the joint venture Company, Odisha Thermal Power Corporation Ltd., (OTPC) each with 50% shareholding. OTPC is setting up a coal based Super Critical Thermal Power Plant of 3 x 800MW capacity in Kamakhyanagar Tahsil of Dhenkanal District, Odisha, with an estimated project

outlay of Rs. 16,000 crores. So far OMC has invested Rs. 104.20 crores as equity. The total

expenditure incurred till 31.03.2014 is around Rs. 206.60 crores. OMC is committed to infuse

more equity jointly with OHPC in the year 2014-15 depending upon the project requirement.

(m) ANUGUL SUKINDA RAILWAY LIMITED (SPV PROJECT)

OMC has invested Rs. 63 crores in this SPV Project which is promoted jointly by Rail Vikas

Nigam Ltd. (RVNL), Jindal Steel & Power Ltd., IDCO and Govt. of Odisha to develop the Broad

Gauge rail link Budhapank-Sukinda Road and trasverses through Angul, Dhenkanal & Jajpur

districts of Odisha for route length of 98.763 km.

The envisaged project cost is Rs. 1202.70 crores, out of which Rs. 234.57 crores Equity has stbeen received. Till 31 March'14, around Rs. 115 crores expenditure has been incurred.

(n) HARIDASPUR PARADEEP RAILWAY COMPANY LIMITED (SPV PROJECT)

Haridaspur-Paradip Railway Company Limited, a SPV, has been incorporated by Rail Vikas

Nigam Ltd. (RVNL) for developing, financing, construction, operations 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 Total Project Cost (“TPC”) is estimated at Rs.1559 crores, which includes the cost of land,

civil works, buildings, plant & machinery, S&T engineering, electrical engineering, preliminary

expenses and RVNL charges.

So far, OMC has contributed its full commitment of Rs. 74.70 crores which is 14.65% of the total

Equity capital of Rs. 510 crores. The other shareholders in this SPV project are RVNL, IDCO,

PPT, EMIL, RNL, JSPL, SAIL, POSCO, MSPL and Govt. of Odisha.

(o) UNDERGROUND MININGIn order to take maximum advantages of the new technology, OMC has undertaken work for

underground mining of Chromite ore in the Bangur ML area. For want of environmental clearance

the mining work has been suspended. Recently the National Board of Wild Life has cleared the

Bangur Underground Project basing on which environmental clearance of the project is expected

shortly. On getting the same the work will be operational within a short span of time.

8. ECOLOGICAL AND ENVIRONMENTAL DEVELOPMENT

ENVIRONMENTAL MANAGEMENT – A STEP TOWARDS SUSTAINABLE DEVELOPMENT :

The exploration, exploitation and associated activities

for extraction of iron ore, Manganese ore, Chromite,

Bauxite and Coal directly infringe upon the environment

and affect air, water, land, flora & fauna. To assess the

impact of mining on environment, requisite studies have

been carried out by OMC for its various leasehold

areas, as per the statutory guidelines.

The mining operations at various leasehold areas of OMC in respect of Gandhamardan, Daitari, South-Kaliapani, Sukurangi, Kurmitar mines are being conducted by abiding the necessary statutory compliances which are also being continuously monitored in terms of environmental monitoring of 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 having a check on pollution control measures adopted at respective sites. Appropriate mitigative measures for improvement of wildlife habitat in different mines to counter balance the effect of mining is also being implemented by OMC in the core zone and by the Forest Department in the buffer zone.

OMC has also taken up the up-gradation of Effluent Treatment Plant (ETP) in South-Kaliapani chromite mines to avoid contamination of ground water by hexavalent chromium. Apart from these, various studies to adopt the water conservation measures in the form of rain water harvesting at various mines of OMC will also be carried out shortly, as per the advice by Central Ground Water Board (CGWB).

9. CORPORATE GOVERNANCE

The philosophy of the company in relation to Corporate Governance is to ensure Transparency, Disclosures and Reporting that conforms fully to laws, regulations and guidelines etc and to promote ethical conduct throughout the organisation. OMC believes in conforming to the highest standards of Corporate Governance. It recognises that each member of the Board owes his first duty for protecting and furthering the interest of the company.

A report on Corporate Governance is attached to this report as Annexure – II.

10. CORPORATE SOCIAL RESPONSIBILITY :

Your corporation plays an important role in the social development in course of its business. OMC has its own CSR Policy in compliance to Section 135 of the Companies Act, 2013, the detailed CSR policy of the corporation is mentioned at Annexure-III of this report.

11. PARTICULARS OF EMPLOYEE:

During the year under review, no employee of your company was in receipt of remuneration in excess of the limits as prescribed under the provision of section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees ) Rules, 1975.

12. ENERGY, TECHNOLOGY & FOREIGN EXCHANGE:

Details of energy conservation and research & development activities undertaken by the Company along with information in accordance with the provisions of Section 217(1)(e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, is given in Annexure-IV.

13. PUBLIC DEPOSITSst

The corporation has not accepted any deposit during the year ended on 31 March, 2014.

14. DIRECTORS' RESPONSIBILITY STATEMENTPursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, with respect to Directors' Responsibility Statement, it is hereby stated:

st(i) That in the preparation of the Annual Accounts for the financial year ended 31 March, 2014, the applicable Accounting Standards had been followed alongwith proper explanation relating to material departures.

(ii) That the Directors had selected such Accounting Policies and applied them consistently and made judgements and estimates that where 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 financial year and of the Statement of Profit & Loss of the company for the said year.

(iii) That the Directors have taken proper and sufficient care for the maintenance of the adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the company and for preventing and detecting frauds and other irregularities.

st(iv) That the Directors have prepared the annual accounts for the year ending on 31 March,

2014 on a 'going Concern' Basis. 15. STATUTORY AUDITORS :

M/s. SRB & Associates, Chartered Accountants, Bhubaneswar have been appointed as Statutory Auditors for the Financial year 2013-14 by the Office of the Comptroller and Auditor General of India vide Letter No.CA.V/COY/ORISSA,ORMINC(1)/91 dt.29.07.2013 Under

thSection 619 (2) of the Companies Act, 1956. The Statutory Auditors vide their letter dated 6 August 2014 have given their comments (placed in the Annual Report as Annexure C) on the

stAccounts of the company for the year ended 31 March,2014 and Certified the Annual Accounts of the Corporation on even date. The comments of Statutory Auditors and replies of the management thereon are annexed to this report at Annexure A.

16. C&AG AUDIT :thThe Comptroller and Auditor General of India (C&AG) vide its letter dated 18 September 2014

sthas given their comments on the Accounts of the company for the year ended 31 March,2014 under Section 619(4) of the Companies Act,1956. The comments of C&AG and replies of the management thereon are also annexed to this report at Annexure B.

17. COST AUDITORS :The Board of Directors have re-appointed M/s. S. S. Sonthalia & Co., Cost Accountants, Bhubaneswar as the Cost Auditor of the company for the financial year 2013-14, subject to such approvals as may be applicable.

18. HUMAN RESOURCES DEVELOPMENT AND STAFF WELFARE: BACKGROUND :OMC is endowed with significant volume of mineral deposits and is actively engaged in mining and facilitating development of mineral based industries in and around the country. It is also committed to maintain clean and green environment around the mining surroundings while striving to satisfy our stakeholders as a socially responsible corporate. A number of new initiatives have been taken which successfully turned OMC into a largest Gold Category State PSU in the country's mining sector. The focus of OMC's management on strategic alignment of People Management (HR) to the company's business objectives has helped to deal with the emerging multifarious challenges confronting the mining sector. A number of HR initiatives have been launched which have contributed to building a conducive ambience in which the creativity and innovation of employees is gainfully unleashed.

Believing that a Happy Workforce is a Productive Workforce, OMC has always created a positive footprint within the organization to make a meaningful difference to the lives of employees by continually aligning its initiatives to the goals for sustainable development and its support to the cause of employee welfare and development thereby ensuring an enriched life for its entire people. OMC has taken a conscious and decisive stand with a mission approach for spearheading its Welfare & Development mandate of employees in its working areas and in the state of Odisha with a human face.OMC has taken giant strides to be a model employer by:1. Establishing and maintaining a dynamic organizational structure suited to meet present and

future company needs.2. 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;

3. Developing and sustaining a favourable 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;

4. Establishing a system for redressal of employees' grievances in the shortest possible time and at the lowest possible step,

5. Providing training facilities, internal and external, and other opportunities for self development in the current job and for advancement.

SPECTRUM OF WELFARE ASPECTS

HOUSING

A major portion of the employees have been provided with Corporation quarters, in Mines and Camps, the accommodation is rent free, where as in Regional Offices and at HO, the rent is very nominal. Where accommodation is not provided, the employees are paid house rent allowance, at 20% of basic pay for HO, 10% for Regional Offices and 5% for the field.

EDUCATION

a) School: OMC is maintaining full fledged High Schools at Daitari and Kaliapani. Besides, Primary schools are functioning in different Mines. Where the schools are run in the lease hold area by private agencies, OMC Management also provides annual grant-in-aid.

b) 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.

Sl. No. Description of Scholarship Amountth th

1 At Intermediate level 11 & 12 Std. Rs. 300/-PMRs. 400/-PM

thStudents securing above 90% marks in 10 class Exam, Rs. 500/- PM

2 At Graduate level for ordinary courses i.e. B.A., B. Com., B.Sc., Rs. 500/- PMLLB & other courses where Bachelor’s degree is awarded

3 At Diploma level in professional courses in Engineering/Pharmacology Rs. 500/- PM

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

5 At Graduate/PG in Medicine/Pharmacology / Dentistry/ Engineering/ Rs. 900/- PMArchitecture/Management Studies/Agriculture /Veterinary Science.

6 Special Scholarship for exceptionally brilliant/talented students for Rs. 1,500/- & technical/professional studies, where admission is through Rs.2000/- PM National level competitions.

c) Cash Award to Meritorious Students: Cash award of amount Rs. 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

thDay falling on 16 May every year. In addition a cash award of Rs. 5,000/- is also being given to the student child secures a position in the Best Twenty of the H.S.C. Examination merit list. HEALTH

Free medical facilities are being extended to the employees and their family members. 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 equipments. OMC is taking care of occupational health and safety (OHS) activities as per recommendations of safety conferences in mines. As per Section 29B of Mines Rules 1955 IME/PME of the mine workers of different establishments of OMC was taken up during 2012-13 by M/s. Utkal Poly Clinic, Bhubaneswar and the individual test/examination reports of the workers submitted. In certain cases where required, the patients are being referred to different referral hospitals for specialized treatment.

Annual Health check-up for Executives above 40 years is also introduced in order to monitoring the health standards of executives working in different fields.

Conveyance Allowance

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 Rs.500.00 per month

Hardship Allowance for Normal Mines

Scale of Pay(in Rs.) Rate

5200-20, 200+GP-1800 and above Rs. 250.00

5200-20, 200+GP-1900 and above Rs. 300.00

9300-34, 800 +GP-4200 and above Rs 350.00

9300-34, 800 +GP-4600 and above Rs. 400.00

Hardship Allowance for Difficult Mines


5200-20, 200+GP-1800 and above Rs.325.00

5200-20, 200+GP-1900 and above Rs.400.00

9300-34, 800 +GP-4200 and above Rs 475.00

9300-34, 800 +GP-4600 and above Rs.550.00

Hardship Allowance for Difficult Mines


5200-20, 200+GP-1800 and above Rs.875.00

5200-20, 200+GP-1900 and above Rs.950.00

9300-34, 800 +GP-4200 and above Rs 1025.00

9300-34, 800 +GP-4600 and above Rs.1100.00

LiveriesLiveries 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 Class-III & Class-IV employees and PR Miners. @ Rs.150/-per month and Rs.70/- per month respectively.

Community Centre:

In order to conduct various cultural programmes, Community centers in Head Office and each Mines/Camps are being maintained.

Presentation to Retired Employees

The employees at the time of their retirement are being presented with presentation worth Rs. 20,000/- (Rupees Twenty Thousand).

Presentation to the Old Employees

The old employees are honored with presentation in the form of a watch and citation on completion of their 15 years of service in OMC.

Ex-gratia for Funeral Rites

In case of death of an employee in service, a sum of Rs.25, 000.00 is being sanctioned towards ex-gratia for funeral rites.

Medical Facilities to Retired Employees

Medical benefit has also been extended to the Retired Employees as per details bellow:

a) If both the spouses are alive Rs. 6,000.00 and

b) If one of the spouses is alive- Rs. 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 certificate 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 Rs.3,000.00 per annum.

Reimbursement of Mobile Expenses

All Sectional Heads at HO/Regional Managers/ Manager/Employees in essential services @ Rs.300/- & Rs.200/- per month.

Grievance Handling

As a matter of routine, the Welfare Personnel give personal hearing to workers as well as employees and take appropriate steps for sorting out the problems.

Canteen

Canteens are functioning in no profit-no loss basis in all Mines, Regional Officers 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 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 Rs. 8,400.00. This is linked to corporate productivity and efficiency Index.

Ex-Gratia

Ex-Gratia is being paid to the employees & departmental workers during Puja since 2004-05.

Awards & Achievement

OMC has been recognizing the Best Mines and the Best Projecting 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 field of Social Activities, contributions in the field of Technical/Educational/Sports & Games etc. are being felicitated on the OMC Foundation Day.

VRSa) The Voluntary Retirement Scheme is being implemented exclusively for the workers with

approval of Board of Directors and Government. The benefits under the scheme is 45 days wages for each completed year of service in addition to other terminal dues like gratuity, leave wages etc.

b) 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 beneficiary 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.

Recreation and Cultural ActivitiesOMC is sanctioning a substantial amount for different recreation and cultural activities of its employees. Regular film shows, opera shows and drama are being conducted by the employees. Besides, recreation clubs with TV and Dish Antenna facilities are functioning in each Mine. SOCIAL SECURITY MEASURESEPF/CPFAll the regular employees are covered under the Contributory Provident Fund Scheme of OMC; other categories of employees are members of EPF Scheme under EPF & MP Act, 1952 managed by Provident Fund Commissioner.GratuityAll the employees and workers are covered under OMC Gratuity Scheme as per Gratuity Rules of OMC.Group Insurance SchemeOMC has adopted the Group Insurance Scheme of LIC for all the employees with a uniform assurance benefit of Rs. 3.00 lakh in case of premature death while in service.Advances

OMC is extending different types of advance with nominal rates of interest as indicated below.

Type of Advance Amount Rate of Interest

House Building Up to Rs.7.5 lakhs Up to Rs.50, 000/-(7.5%)Addl.up to Rs.1.6 lakhs Up to Rs.1.5 Lakh (9.0%)

Up to 5 lakh-(11%, )Up to 7.5 lakhs (12%)

Car Advance 15 months of Basic pay or 4 lakhs 15% or the anticipated cost of the car which ever is less

Motor Cycle/Scooter Rs.50,000/- 11.5%

Moped Rs.25,000/- 11.5%

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

Medical Advance As per Estimate Interest Free

Festival Rs.10,000/- (up to GP Rs.4200/-) Interest Free

TV Advance Rs.15,000/- 8%

Special Advance One month salary Interest Free

Misc.Advance One & half months basic Interest Free

Computer Advance Rs.30,000/- 8%

Training

Keeping in view, to enhances the capability and potential of employees to be effective and to achieve higher performance level an objective based Training & Development Policy is formulated for OMC. Different functional and Behavioral skills including project Management, Finance Management, New Technology in the Mining Operation, Geological Exploration, Environmental & Ecological

Awareness, New Technology in Mines Survey (SURPAC) and training on ERP are being imparted to Executives and Non-Executives of OMC on a planned manner. During the previous year employees were imparted training from leading training institutes of India like IMIS, BBSR, NPC, BBSR, ICAI, South Odisha Chapter, GLF, Puri, Indian Electrical & Electronic Manufacture's Association, Deptt. Of PMIR, Utkal University,BBSR, IBCS, SOA University, BBSR, Indian Bureau of Mines, BBSR & Bangalore, CLI, Mumbai, IIT, Kharagpur, NIT, Rourkela, IIMCS, BBSR, CII, BBSR, Dept. of Public Enterprises, Govt. of Odisha, GAA, BBSR, ICAI, Cuttack Bhubaneswar Chapter, NATRAS, New Delhi, ASBM at Shimla , HR Guru Associates at BBSR.

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.

19. SYSTEM MANAGEMENT:

Certain important steps like HO LAN reconfiguration, Antivirus server configuration and process oriented incident management have been carried out keeping network security in mind. Recommended firewall deployment at gateway level has been implemented to enhance the security level.

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, financial 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.

i. Production Planning (PP-SOP):

Implementation of Production Planning module has facilitated creation of production plan for finished 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 finished 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.

ii. 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 & finding appropriate source of supply, creation of purchase order including material receipt, invoice verification and release of payment. Annual physical inventory is taken up through the system on the basis of annual store verification 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 verification of the credentials as per eligible norms defined by OMC. Materials like fuel, lubricants, common spares, equipments, hardware, 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 financial power delegated to the Mines and Regional Office level, procurement of materials and services are also done at their level & SAP ensures limiting the financial 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 finance 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 simplified. 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.

iii. Sales & Distribution (SD):

The Sales and Distribution function implemented has facilitated creation of contract at HO, sales order, financial document and billing at the RO level and issue of DO at the Mines level on line 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 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.

iv. Finance & Controlling (FICO):

Finance and Controlling system implementation has ensured on line posting and updating of GL accounts and sub-ledger accounts. It ensures online check of budget availability and on line updating of controlling data. Due to integration of functions of different departments, automatic flow of documents from other modules is ensured. Further Due to online updating of GL accounts, Trial Balance, Balance Sheet and Statement of Profit & Loss can be generated at periodic intervals.

v. 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 efficient. Various reports as per the need of various statutory requirements are generated with greater agility and correctness.

vi. 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 finance. 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 quota, automatic calculation of accrued leave, submission and approval of leave application are all done on line. All types of loans and advances applications are received on line and approval accorded and payment advice realized making the process easier and faster.

OMC has upgraded its software from SAP R/3 4.7 version to SAP ERP 2005 (ECC 6.0) with a view to receive the enterprise support of SAP and to adopt additional features depending upon the necessity.

Recent Achievements of IT Section

The work regarding LAN linkage between different Weigh Bridges by laying down the OFC Network completed at Khandadhar. Khandadhar happens to be one of our prospective iron ore mines now has a LAN connecting its Weighbridges and Office Building by OFC. For this OFC was laid by BSNL from Barsuan across the hilly terrain up to Khandadhar /Kurmitar Mines a distance of 18 kilo Metres.

New Appraisal system was implemented in SAP. This feature enables the executives to file their performance reports in an online mode for further assessment by their senior officers.

The LAN linkage between different Weigh Bridges was established by laying down the OFC

network at Daitari .The work regarding LAN linkage between different Weigh Bridges by laying down the OFC

Network is in progress at Gandhamardan .

Aims and objectives for the year 2014-151. Data centre up gradation regarding cooling system modification is to be taken up on a

priority basis. Emerson power Solutions is to install the Precision Cooling system in the

Data Centre which would take care of the temperature/humidity maintenance inside the

Data centre which was posing problems especially during summer months.2. CPF/Gratuity software application to be integrated in SAP system.

20. SECURITY SYSTEM : OMC has established an integrated security and communication management system. The

lease protection Task Groups and Task Teams have been monitoring the various leases of OMC

in real time environment. The OMC 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/RO.

21. ECONOMY :The sales turnover, total income, profit before tax and profit after tax of financial year 2013-14

were Rs.185388.17 lakh, Rs.243488.09 lakh, Rs.144995.34 lakh and Rs.86781.53 lakh

respectively. The Corporation has achieved sales of various minerals of 11.16 lakh M.T. and turnover of

Rs.71962.98 Lakh by the end of August'13 during the financial year 2013-14. Actual

achievement of financial year 2014-15 up to August'2014 vis-à-vis the target for the period as per

Budget estimate is as follows –

Item Production (MT) Sales (MT) Sales Turnover (Rs in Lakh)Budget Actual Budget Actual Budget Actual

Iron Ore 1265000 816897 1661667 1565605 46033.00 45514.96

Chrome Ore 160000 262828 160000 272782 16000.00 35682.32

Chr. Concentrate 25000 19552 25000 30633 2000.00 2912.87

Due to strict statutory requirements of compliance to forest & environmental regulations &

restriction of mining to approved mining plan; major iron ore mines are closed in Barbil, Koira sector

& Gandhamardan. This has affected Production & Sales of Iron Ore. Production of Chrome ore from

S. Kaliapani Mine has been restricted due to space constraint in dumping and stacking of OB

excavated from the Mine. Recently during Sept,14 forest clearance for Baliparbat area of Daitari

have been obtained. After getting of forest clearance on Baliparbat area, stacking of Daitari ore and

effecting internal sales from Baliparbat will soon be started. Production from OHP under BOT

contract will commence now besides enhancing production through the other raising and transport

contractors. This will increase production & sales from Daitari. LOI has been issued in favour of M/s.

L&T for installation of 2.5 MTPA OHP leading to increased production & despatch facility at Daitari.

Arrangement has been made to maximize the transport and sale of ore from Daitari Railway siding.

Mining in hilltop portion of Gandhamardan Block-B for which forest clearance is available, could not

be undertaken as approach road to this mine passes through Gandhamardan Block-A for want of

approval of forest diversion proposal which is in progress.

However mining operation at present is carried out at lower scale in Putulpani area of Block-B.

Besides, complying to the directives of Honorable Supreme court, ore stocked in Block-A ore

being sold from Gandhamardan. Recently the National Board of Wild Life has cleared the

Bangur Underground Project basing on which environmental clearance of the project is

expected shortly.

The Corporation is pursuing clearance for FDP, environmental clearance and approvals for

revised mining plans of mines in order to augment production without hindrance. To keep pace

with the market demand for iron ore, OMC is planning to produce and sell 21 Million tonne iron

ore per annum from its 3 major Iron ore Mines i.e. Daitari, Gandhamardan and Kurmitar. A new

Ore Handling Plant (OHP ) is being installed with a provision for mechanized wagon loading at

Daitari with an investment of around Rs.600 crore. New OHP & modified existing OHP will

enable Daitari to produce and sell 6 MTPA iron ore per annum. Comprehensive Mining Plan for

production of 9.12 MTPA of iron ore from Gandhamardan has been prepared and approved. A

new OHP with an investment of around Rs.400 crores will be installed at Gandhamardan. For

evacuation of finished product from Gandharmardan, OMC has signed sales agreement with

M/s. Bhusan Power & Steel Ltd. and M/s. Bhusan Steel Ltd. Production planning to produce and

sell 6 MTPA Iron ore from Kurmitar has been made.

Chrome ore production is being planned to meet the domestic requirement. Renovation &

modification of existing COBP plant is in process. Due to imposition of export duty on Chrome ore

and Chrome concentrate & increase in prices and demand in domestic market, the export of

chrome concentrates has been discontinued. Chrome Concentrate is being sold to domestic

consumers besides Chrome ore. Sale of chrome ore / Chrome concentrate to domestic

consumer is at present made through e-auction conducted by M/s MSTC for better, transparent

and effective marketing. The construction of the new COBP plant is also in progress to meet the

new market requirements.

The corporation is diversifying into coal mining besides establishing a thermal power plant in

joint venture.

The Corporation has undertaken strict measures for controlling the operational expenditure and

consumption of stores, spares, POL and general charges. To achieve the production and sales

programme, corporation has undertaken steps for improvement in organizational set up. For

better control, financial & administrative powers have been delegated to Sectional Heads at HO

and Regional Heads at ROs to speed up decision making. Corporation has reorganized its

management and operation to compete with professionally managed global mining Company.

New departments such as corporate planning and new business development , project

monitoring unit, human resource development and corporate communication have been

opened up to plan and manage the corporate affairs. Effective inventory management has been

taken up by OMC for all stores and spares items. The obsolete stores, scrap items & discarded

machineries & vehicles are being disposed of through e-auction conducted by MSTC in phase

wise manner for proper inventory management. For more organized and effective management

of funds, implementation of getting surplus funds to HO from ROs through single bank concept

with auto push & pull facility transfers on daily basis has been taken up.

The Corporation have paid Rs.400 crores as dividend to State Government for the FY 2012-13. Board of Directors of OMC has recommended for payment of Rs 500 crores as dividend for the financial year 2013-14 from the profit of that year & approval in the AGM is awaited.

Principal outstanding to Gridco on account of Inter-Corporate Loan (ICL) paid during 2012-13, as on 31.03.2014 is Rs.42836.81 lakh & meanwhile another ICL of Rs.500 Crores has been extended to M/s.GRIDCO during Sept,2014 based on the approval of Govt, the BoD of both the Companies and arrangement of letter of comfort/assurance from State Government.

22. MEMORANDUM OF UNDERSTANDING :

In line with the guidelines prescribed under Corporate Governance Manual of Government of rd

Odisha (GoO), your Corporation, for the 3 successive year, has entered into a Memorandum of Understanding (MOU) with the Department of Steel and Mines, Government of Odisha for the year 2013-14.

23. 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 thanks to the employees of the Company for their efficient and devoted service to the Company for all round progress during the financial year 2013-14.

My thanks are also due to our Customers, Vendors, Auditors, Business Associates, Bankers and Financial Institutions and in particular to IBM, East Coast Railways, MMTC and Paradeep Port Trust Authorities, other Agencies, Government of India and various departments of Government of Odisha for their continued co-operation /support and patronage.

I also thank each and every one of the shareholders for their continued support in guiding the affairs of the Company.

Sd/-CHAIRMAN

Date : 27.09.2014 On Behalf of the Board of Directors The Odisha Mining Corporation Limited (OMC) Bhubaneswar

Annexure-I

STATISTICAL & FINANCIAL HIGHLIGHTS & RESULTS

I. FOLLOWING TABULAR STATEMENT INDICATES THE ACHIEVEMENTS DURING 2013-2014 AS COMPARED TO PREVIOUS YEARS

Year Production Sales Sales Value (in '000 MT ) (in '000 MT) (Rs.in Lakh)

A. IRON ORE 2009-10 7325 6210 101236.642010-11 5367 4798 167385.99

2011-12 3908 3971 171232.81

2012-13 2470 2710 111209.79

2013-14 2439 3191 100742.73

B. CHROME ORE 2009-10 507 858 56548.21

2010-11 1044 1023 108195.81

2011-12 501 314 42927.35

2012-13 680 476 54604.78

2013-14 637 709 84645.44

C. MANGANESE ORE 2009-10 - - -

2010-11 - - -

2011-12 - - -

2012-13 - - -

2013-14 - - -

D. LIME STONE (IN MT) (IN MT) (Rs. in Lakh)2009-10 - - -

2010-11 - - -2011-12 - - -

2012-13 - - -

2013-14 - - -

E. GEM STONE (IN GRAMS) (IN GRAMS) (Rs. in Lakh)

2009-10 - - -2010-11 - - -2011-12 - 1618627 21.252012-13 - - -

2013-14 - - -

ABRIDGED FUNDS FLOW STATEMENT

( I). EQUITY AND LIABILITIES As at 31.3.2014 As at 31.3.2013

(Rs. In Lakh) (Rs. In Lakh)

(1) Shareholders' Funds

a) Share Capital 3145.48 3145.48

b) Reserves and Surplus 586417.45 514982.14

Sub Total (I) 589562.93 518127.62

(2) Non-Current Liabilities

a) Other Long Term Liabilities 2422.17 2422.17

b) Long Term Provisions 4108.59 4328.37

Sub Total (2) 6530.76 6750.54

(3) Current Liabilities

a) Short Term Borrowings 37056.47 30516.36

b) Trade Payables 24554.86 69094.56

c) Other Current Liabilities 31476.76 32878.40

d) Short Term Provisions 655.29 917.44

Sub Total (3) 93743.37 133406.76

Total (1+2+3) 689837.06 658284.92

(II) ASSETS

(1) Non-Current Assets

(a) Fixed Assetsi) Tangible Assets-Gross Block 26665.93 25714.98

Less: Depreciation 19635.04 18559.42

Net Block 7030.89 7155.57

ii) Intangible Assets - -iii) Capital work-in-Progress 3659.59 3029.41

(b) Non-Current Investments 37435.89 14339.89

(c) Deferred Tax Asset (Net) 362.94 557.09

(d) Long Term Loans & advances 46674.37 51189.17

(e) Other Non-Current Assets 12999.55 2454.69

Sub Total (1) 108163.23 78725.82

(2) Current Assets

(a) Inventories 27864.56 33316.26

(b) Trade Receivables 973.17 766.26

(c) Cash & Cash equivalents 409274.12 412243.74

(d) Short Term Loans & Advances 115927.12 105540.90

(e) Other Current Assets 27634.56 27691.95

Sub Total (2) 581673.83 579559.11

Total (1+2) 689837.06 658284.92

SUMMARY OF BALANCE SHEET

2013-14 2012-13WHAT WE OWNED (Rs. In Lakh) (Rs. In Lakh)FIXED ASSETS:GROSS BLOCK (Including work in progress) 30325.53 28744.39Less:Depreciation 19635.04 18559.42NET BLOCK (incl. Capital W.I.P) 10690.49 10184.98NON-CURRENT INVESTMENTS 37435.89 14339.90DEFERRED TAX ASSET (Net) 362.94 557.09

TOTAL 48489.32 25081.97

WHAT WE OWED

LEAVING BALANCE 48489.32 25081.97 Other Current & Non-current assets (net) 541073.61 493045.67

TOTAL :( NET WORTH) 589562.93 518127.62REPRESENTED BY:Equity 3145.48 3145.48Reserve & Surplus 586417.45 514982.14TOTAL: 589562.93 518127.62

WHAT WE EARNED AND WHAT WE SPENT

2013-14 2012-13 WHAT WE EARNED FROM (Rs. in Lakh) (Rs. in Lakh)

I. Revenue from Operations 185388.17 165814.57Other Income 58099.91 54061.05TOTAL: 243488.09 219875.62

II. WHAT WE SPENT/PROVIDED FOR

A. Cost of Material Consumedi) Explosive 59.43 22.23 ii) Mach Spare Consumed 81.76 119.81iii) POL Consumed 536.12 372.84 iv) Elec. Store Consumed 32.99 23.40v) Prov. Agst Non Moving Store 641.82 -vi) Other Stores Consumed 119.66 87.44

TOTAL 1471.78 625.72

A. Change in Inventories:I) Opening Stock 32069.35 30285.56ii) Closing Stock. 26456.86 32069.35

DIFFERENCE(i - ii) 5612.50 (1783.79)B. Employee benefit expenses 15871.24 14554.66C. Finance Cost 1578.42 1321.12D. Depreciation/ Amortization / Impairment 1054.71 1214.16E. Other Expenditures

I) PRODUCTION & PROCESSING EXP.i) Ore Raising 8980.03 9697.59 ii) Exploration & Drilling Expenses 198.88 2064.66iii) Afforestation 1048.91 432.02iv) Forest Environ Exp. 5184.59 808.15 v) Surface Rent,Consent Fees etc. 748.69 1001.20

Sub-Total 16161.10 14003.62II) Administrative Expensesi) Repair & Maintenance 608.74 346.26ii) Travelling Expenses 44.77 66.14 iii) Auditor’s Remuneration 5.61 5.61iv) Insurance, Rent, Rates & Taxes 299.47 301.47v) Watch & ward 1796.50 1612.01 vi) Donation 5001.00 7401.00vii) CSR Expenses 855.48 607.88viii) Hire Charges 450.65 339.85ix) Consultancy & Legal Expenses 68.57 325.46x) Fees &Tariff, Electricity, Rate & Taxes, etc 458.36 424.76

Sub-Total 9589.15 11430.44

III) Selling & Distribution ExpensesI) Royalty 23945.86 21337.43ii) Export Expenses 40.94 -1.58iii) Transportation, Railway Freight/Wagon Loading 735.10 734.05

& Plot Rent iv) Sales commission 189.41 111.28v) Analysis Charges, Advertisement etc. 213.32 184.04

Sub-Total 25124.63 22365.22

IV) Other Expensesi) Net Present Value 7079.74 17418.78ii) Penalty & Fines 14872.89 -iii) Misc exp, Prior Period adj, etc 76.58 379.84

Sub-Total 22029.21 17798.62 TOTAL (I+II+III+IV) 72904.10 65597.90

TOTAL: (A to F) 98492.75 81529.77 D.NET MARGIN (I-II): 144995.34 138345.84 (Opening Carry forward) Profit (+) /Loss (-): 329128.72 405964.72 Less/add:

i) Provision for Income Tax (-)58213.81 (-)48735.80

ii) Dividend with Dividend Tax (-)15346.22 (-)89563.03

iii) Transfer to General Reserve (-)13116.99 (-)76883.01

--------------- -------------

Resulting in carry forward

Profit (+)/Loss (-) of the year 387447.05 329128.72

CORPORATE GOVERNANCE

1.0. Board of Directors1.1. Composition

Board of Directors of the company comprised of 11 (eleven) Directors viz, CMD, 5 (five) Nominated Directors and 5 (five) Independent Directors as on 31.03.2014. Details are given in 1.2. Subject to the overall superintendence and control of the Board, the day to day management of the company is vested with the Chairman and the Managing Director.

CHANGES OF DIRECTORS

The following changes took place in the Board of Directors of the Company since the last reports :

On transfer of Sri Saswat Mishra IAS, CMD, from OMC, Sri Girish S.N, IAS and Sri Pradipta kumar Mohapatra, IAS joined as Managing Director on 25-08-2014 and Chairman on 27-08-2014 respectively.

Sri Ashok kumar Tripathy, IAS, Principal Secy. to Govt P.E Department was relived from the Directorship of OMC Board on 26-06-2013 and Sri C.J. Venugopal, IAS, Principal Secy. to Govt. P.E Department (on transfer of Sri Ashok Kumar Tripathy, IAS), was nominated as Director to OMC Board on 26-06-2013.

Sri C. J. Venugopal, IAS, Principal Secy. to Govt. P.E Department was relived from the Directorship of OMC Board on 28-05-2014 and Sri Parag Gupta, IAS, Principal Secy. to Govt P.E Department has been nominated as Director to the OMC Board on 28-05-2014 in place of Sri C.J. Venugopal, IAS.

Your Directors wish to place on record their appreciation for the valuable services rendered by the outgoing Directors during the tenure on the Board of your Company.

1.2. Board Meeting and AttendancendDuring the financial year 2013-14, Board meetings were held for 7 (seven) times i.e. on 2 May’13,

th st th th th th20 July’13, 31 July’13, 26 October’13, 4 November’13, 26 December’13, 28 March’14.The Director’s attendance at the Board meeting and number of Directors in other companies during the financial year (2013- 2014) were as follows:

Sl. No. Name of the Category of Designation No.of Board No. of Board No. of Directors Director Directorships Meetings Meetings hips in other

during the attended Boardstenure

01. Sri Saswat Mishra, IAS Chairman-cum-MD 07 07 08(01.04.13 -31.03.14)

02 Sri Ashok Ku. Tripathy, IAS Government Principal Secy. 01 -- --(01.04.13 – 26.06.13) Nominee PE Dept. GoO

Sri C. J. Venugopal, IAS -do- Principal Secy. (26.06.13 – 31.03.14) PE Dept. GoO 06 -- --

03. Sri Rajesh Verma, IAS -do- Principal Secy. (01.04.13 – 31.03.14) S&M Dept. GoO 07 -- 03

04. Sri Priyanath Padhi, IFS -do- PCCF, Odisha 07 -- 01(01.04.13 – 31.03.14)

05. Sri Deepak Ku. Mohanty, IFS -do- Director of Mines, 07 02 -- (01.04.13 – 31.03.14) GoO

06. Sri B. K. Rath, OFS -do- Spl. Secy. Fin. 07 – –(01.04.13 - 31.03.14) Dept.

Annexure-II

07. Sri C. R. Das, (01.04.13 – 31.03.14) Mahanadi Coal Fields

08. Sri D. K. Roy Former Chairman, 07 07 03(01.04.13 – 31.03.14) -do- OERC

09. Dr. S. Acharya -do- Former Vice-Chancellor, 07 07 01 (01.04.13 – 31.03.14) Utkal University

10. Sri S. N. Padhi -do- Retd. Director 07 07 01(01.04.13 – 31.03.14) General of Mines Safety

11. Sri G. S. Khuntia -do- Retd. Executive 07 05 00(01.04.13 – 31.03.14) Director, SAIL

Besides the above, the Board meeting was convened three times i.e. on 30 June 2014, 4 August th2014 and 27 September, 2014 for the current financial year 2014-15.

2.0 Committees of the Board2.1 Audit Committee of Directors

Although the Audit Committee is not a statutory requirement for the OMC Ltd., in the interest of good corporate governance, an Audit Committee has been constituted by the Board of Directors

thin their 337 meeting held on 27.03.2003 to oversee the Company’s financial reporting process, disclosure of financial information, reviewing internal controls, the process of compilation of Annual Accounts, laying down of proper accounts and financial policies, reviewing of statutory and C&AG Auditors, 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, one of the 5 Independent Directors is the Chairman of the Committee. He belongs to Indian Revenue Services and retired as Chief Commissioner, Income Tax. He was also the Chairman of OERC. All the meeting of the Committee held during the year were chaired by the Chairman of the Committee. The audit Committee of the Board of Directors met 4 (four) times during the financial year 2013-

th th rd th2014 under review i.e. on 24 June’13, 12 July’13, 23 August’13 and 24 October’13. The particulars of the members including their attendance at the Audit Committee meetings during the year were as follows:

Sl. No. Members of Audit Committee No. of Meetings held No. of Meetings attended

01. Sri D. K. Roy, (Chairman) 4 4

02. Sri C. R. Das 4 4

03. Sri S. N. Padhi 4 4

Besides the above, in the current financial year of 2014-15, the Audit Committee also met on 19.06.2014, 01.08.2014 and 28.08.2014 on various matters such as perusing the draft Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, significant Accounting Policies and various disclosure prepared under the new revised format of the Schedule VI of the Financial year 2013-14 and in recommending the management replies on the observation of Statutory Auditors & AG Auditors to the Board.

2.2 Personnel Committee of Directors

The Personnel Committee of Directors discuss different issues relating to Human Resource Development in the organisation. It also makes new recruitment policies for recruitment of executives and non-executives, makes promotional avenues for the existing employees and reviews delegation powers to different authorities for smooth functioning and quick discharge of duties. Finally, it also proposes its valuable recommendations for consideration of the Board.

Ind. Director Ex-CMD, 07 06 01

th th thThe Personnel Committee of the Directors met 3 (three) times on 8 & 9 April’13 and 19 October’13 in the financial year 2013-14.

Sl. No. Members of Personnel No. of Meetings held No. of Meetings attendedCommittee

01. Sri Saswat Mishra, IAS, 3 3CMD (Chairman)

02. Sri C. R. Das 3 3

03. Sri D. K. Roy 3 3

04. Dr. S. Acharya 3 3

Besides the above, the Personnel Committee of the Board also met on 19.06.2014 for the current financial year 2014-15.

2.3 Technical Committee of DirectorsThe Technical Committee of Directors discuss different crucial technical issues relating to production, transport and 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. During the financial year 2013-14, the Committee held 5 (five) meetings in the financial year 2013-2014 i.e. on 01.07.2013, 02.07.2013, 26.09.2013, 17.10.2013 and 21.01.2014 and made field visits twice to Bangur and South Kaliapani.

Sl. No. Members of Technical Committee No. of Meetings No. of Meetings attended

01. Sri Saswat Mishra, IAS, CMD (Chairman) 5 2

02. Sri C. R. Das 5 5


04. Sri G. S. Khuntia 5 5

Besides the above the Technical Committee of the Board also has met on 10.07.2014 for the current financial year 2014-15.

2.4 Sales Committee of DirectorsThe Board Committee on Sales matter discuss on Sales Policy, proposed changes and decides on the matter of e-auction and allotment procedures. It also decides the methodology on sale of minerals by OMC from time to time and suggests means for improvement of sale/auction of minerals.

thDuring the financial year 2013-14, the Committee met once on 25 September’13.

Sl. No. Members of Sales Committee No. of Meetings held No. of Meetings attended

01. Sri Saswat Mishra, IAS, 1 1 CMD (Chairman)

02. Sri D. K. Roy 1 1

03. Sri C. R. Das 1 1

04. Sri Deepak Kumar Mohanty, IFS, -- --

Director of Mines, Govt. of Odisha

2.5 Independent Directors CommitteeThe Independent Directors Committee discuss different crucial matters, as and when entrusted to the committee and recommend for consideration and approval of the Board. Each of the Directors is having expertise in a particular field and has vast experience and knowledge in the said field.

During the financial year 2013-14, the committee met once on 25.07.2013.

Sl. No. Members of Independent Directors No. of Meetings held No. of Meetings attendedCommittee

01. Sri C. R. Das 1 1

02. Sri D. K. Roy 1 1


04. Dr. S. Acharya 1 1

05. Sri G. S. Khuntia 1 1

2.6 CSR Committee of the Board.thThe Ministry of Corporate Affairs, Govt. of India, vide notification dtd. 27 February’14, has

notified Section 135, Schedule VII of the Companies Act, 2013 (Provisions relating to CSR) and the Companies (Corporate Social Responsibility Policy) Rules, 2014. The same is effective from

st1 April, 2014. The Company has realigned the CSR Policy and outlined the activities to be undertaken.

thIn accordance with the delegation of the Board, in its 405 meeting held on 28.03.2014 the CSR Committee was constituted comprising of CMD and two Independent Directors to be inducted on rotation basis for a tenure of six months.

The CSR Committee has already been constituted under the Chairmanship of the Chairman-cum-MD, The OMC Ltd., with Sri D. K. Roy, Director and Sri G. S. Khuntia, Director as members of the Committee for the first tenure. The Committee met twice on 03.05.2014 and 25.06.2014 with full attendance of the members.

The PD & CSR amount spent for the past three Financial Years is as under

Financial Year Net Profit (in Rs. Lakhs) Expenditure in PD & CSR (In Rs.Lakhs)

2010-11 94816.68 23268

2011-12 126938.54 1781

2012-13 89610.05 9627

Financial Year Average Net Profit Expenditure in PD & CSR % of PD & CSR of previous three for FY 2013-14 expenditure on average years of FY 2013-14 (In Rs.Lakhs) net profit of previous(In Rs.Lakhs) three years of FY 2013-14

2013-14 103788.42 5651.02 5.44 %

Donation to Chief Minister’s Relief Fund (CMRF):

Every year, OMC donates to the CM Relief fund which is usually spent for needy and downtrodden people of the State. OMC also feels proud that the common people unable to meet the huge medical expenses are provided with financial assistance from the available funds. For the year 2013-14 Rs.50.00 crores (included in PD & CSR as above) has been contributed to Chief Minister’s Relief Fund towards meeting the Relief to the Cyclone (PHAILIN) and Flood Affected People of the State on 12th and 13th October,2013.

(The details of expenditure on projects/programme is uploaded in OMC website : www.orissamining.com )

Annexure-III

POLICY ON CORPORATE SOCIAL RESPONSIBILITY(IN PURSUANCE TO SEC. 135 OF THE COMPANIES ACT, 2013)

1. Introduction:In present business environment, a corporate entity cannot function in isolation. The touch-stone of a corporate functioning is how it balances its economic and financial goals and optimization of share holder value with maximization of social benefits to the community and accomplishing environmental protection. The European Commission views CSR as “being socially responsible not only fulfilling legal obligations but also going beyond compliances and investing more into human capital, the environment and relation with stakeholders”. The World Business Council for Sustainable Development defines Corporate Social Responsibility (CSR) as “Continuing commitment by the Corporate Houses to behave ethically and contribute to economic development while improving the quality of life of workforce, their families, local community and society at large”. Concept of CSR involves corporate behaviour voluntarily adopted that goes beyond legal obligations.

2. Objective:Any CSR Policy must take into account the nature of the industry and its short-term, medium term and long-term impact on the environment, on the socio-economic life of the people in the peripheral areas and on the society. In this context, the CSR Policy for a mining industry will essentially be different from other industries as mines have finite, often short life. The CSR Policy of the mining industry should endeavour to take care of the socio-economic well-being of the local people and environmental protection even after closure of the mines. After winding up of mining activities, the local community has to fall back upon other means of livelihood based upon the infrastructure and other capital assets created and skill sets acquired during the period of mining.

3. CSR ActivitiesWith due regard to the above stated objectives, OMC intends to undertake following CSR activities.

i) Eradicating hunger, poverty and malnutrition, promoting preventive health care and sanitation and making available safe drinking water.

ii) Promoting education, including special education and employment enhancing vocation skills especially among children, women, elderly and the differently abled and livelihood enhancement projects.

iii) Promoting gender equality, empowering women, setting up homes and hostels for women and orphans, setting up old age homes, day care centres and such other facilities for senior citizens and measures for reducing inequalities faced by socially and economically back ward groups.

iv) Ensuring environmental sustainability, ecological balance, protection of flora and fauna, animal welfare, agroforestry, conservation of natural resources and maintaining quality of soil, air and water.

v) Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art, setting up public libraries, promotion and development of traditional arts and handicrafts.

vi) Measures for the benefit of armed forces veterans, war widows and their dependents.

vii) Training to promote rural spots, nationally recognised sports, paralympic sports and Olympic sports.

viii) Contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government for socio-economic development and relief and welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women.

ix) Contributions or funds provided to technology incubators located within academic institutions which are approved by the Central Government.

x) Rural development projects.

xi) To assist the State Government of Odisha in tackling natural/man-made disasters including donation to CMRF.

xii) To provide assistance to educational and academic institutions, research organisations and professional bodies for knowledge sharing events relevant to mining industry vis-à-vis OMC activities.

xiii) To provide assistance to charitable, philanthropic and similar organizations of Odisha.

xiv) To support activities in the field of literature, journals & media, games and sports, fair and exhibitions, etc.

4. Fund Allocation for CSR :

Allocation of funds for CSR activities shall be made as per following principles.

(i) Basing on the need as well as fund utilization/absorption capacity, a maximum of up to 5% (five) of the average net profit of the Corporation made in the three previous years can be utilized for above stated CSR activities, out of which a minimum of 2% (two) shall be spent on activities listed at Sl. No. (i) to (x) of Para-3. However, the annual outlay will be decided by the Board of Directors of OMC from year to year.

(ii) Many CSR activities may spill over the financial year of initial allotment and may therefore need funding for more than a year. Steps should be taken to ensure that before a commitment is made for any new CSR project, the total fund requirement for the first and following years is carefully assessed. Further, in a subsequent year, priority should be accorded to completion of any ongoing project before making any commitment of funds for new projects.

(iii) It shall be the endeavour of the management to spend about 50% of CSR fund in the mining affected areas.

5. Implementation Framework:

(i) A CSR Cell under PR Section shall function in the Head Office for CSR matters.

(ii) At the Regional level, the Labour Welfare Officer shall be the ‘Nodal Officer’ for all CSR activities under direct control and supervision of the Regional Manager.

However, in case of non-availability of suitable Labour Welfare Officer, the RM can assign the work to any other suitable officer to act as Nodal Officer in the Region.

(iii) For every Region, there will be a Regional CSR Committee as suggested below:

(a) Regional Manager - Chairman

(b) Manager, Mines - Member

(c) Nodal Officer for CSR - Member

(d) Asst. Manager/Dy. Manager(Civil) - Member

(e) Medical Officer - Invitee

(f) Sarpanches and Ward Members - Invitees of Peripheral GPs/villages

(g) Block Development Officer - Special Invitee

(iv) The Regional CSR Committee shall identify and suggest CSR activities to be taken up by OMC.

(v) For CSR activity, proposals received from Regional CSR Committee, State Govt. Departments, State Govt. organizations, District Administrations, Hon’ble Ministers/ Hon’ble MPs/MLAs, Elected Representatives of PRIs and ULBs, various organizations, Institutions, Citizens Forum, etc. shall be considered.

6. Miscellaneous:

i) A committee named “CSR Committee of the Board” with the following composition shall be responsible for overall guidance, supervision & monitoring of the CSR activities in accordance with this policy and guidelines of the Board of Directors.(a) Chairman - Chairman(b) Managing Director - Member(c) 2 Independent Directors - Member

Presence of one Independent Director is mandatory for every CSR Committee meeting.

ii) The Chairman of OMC is empowered to issue any clarification or guideline that may be required urgently for smooth implementation of the activities pending recommendation of the CSR Committee of the Board/approval of the Board.

iii) The Board of Directors of OMC Ltd. reserves the right to change the principle of apportionment of CSR funds and other aspects of this CSR Policy as and when need arises.

Annexure – IV

ANNEXURE TO THE DIRECTORS' REPORT

Information in accordance with the provision of section 217 (1) (e) of the Companies Act 1956 read with Companies (Disclosure of particulars in the report of the Board of Directors) Rules.1988 and

stforming part of Directors'report for the year ended 31 March 2014.

A. Conservation of energy

(a) Energy Conservation measures taken :

(i) OMC has installed Automatic Power Factor Convection (APFC) panel at Daitari, COBP, Gandhamardan, Khandbandh (Barbill Region), Bangur as well as at Head Office

(ii) Compact Fluorescent Lamp (CFL) is being used in place of filament lamps.

(iii) Star rated Air Conditioners :

Refrigerators T-5, Tube etc. are being purchased by OMC.

(b) Additional investments and proposals, if any being implemented for reduction of consumption of energy :

OMC is contacting the Government authorities for advice to conduct Investment Grade Energy Audit (IGEA) and its implementation.

(c) Impact of the measures at (a) and (b) above for reduction of energy consumption and consequent impact on the cost of production of goods :

By following the above measures, power factor penalty has been avoided and OMC is getting power factor incentive.

(d) Total energy consumption and energy consumption per unit of production as per Form A of the Annexure in respect of industries specified in the Schedule thereto : - N.A.

B. Technology Absorption :

(e) Efforts made in technology absorption as per Form B of the Annexure.

C. Foreign exchange earnings and outgo :

(f) Activities relating to exports; initiatives taken to increase exports; development of new export markets for products and services; and export plans - Nil

(g) Total foreign exchange used and earned - Nil

FORM B

Form for disclosure of particulars with respect to absorption.

Research and development (R & D)

1. Specific areas in which R & D carried out by the company.

Recovery of chromite from the tailings of chrome ore beneficiation plant using floatation technique.

2. Benefits derived as a result of the above R&D

Minimisation of wastage of chromite values generated out of plant operation.

3. Future plan of action.

Pilot plant testing will be conducted by NML, Jameshdpur at the plant site.

EXPENDITURE ON RESEARCH AND DEVELOPMENT :

The Company is mainly engaged in mining and trading of minerals. A Research and Development Cell has been opened to undertake research activities.

Expenditure on R & D :

a. Capital .. Rs.30 lakhsb. Recurring .. Rs.05 lakhsTotal .. Rs.35 lakhsTotal R & D expenditure as a percentage of total turnover i.e. 0.0189%

Technology, absorption, adaptation and innovation

1. Efforts, in brief, made towards technology absorption, adaptation and innovation.Pilot plant testing, if found suitable, will then be considered for necessary incorporation in the process circuit.

2. Benefits derived as a result of the above efforts, e.g. product improvement, cost reduction, product development, import substitution, etc.The activity is under laboratory investigation stage. Benefit will be derived after modification to process circuit.

3. In case of imported technology (imported during the last 5 years reckoned from the beginning of the financial year), following information may be furnished:

(a) Technology imported - N.A.

(b) Year of import - N.A.

(c) Has technology been fully absorbed ? - N.A.

(d) If not fully absorbed, areas where this has not taken place, reasons there for and future plans of action - N.A.

ANNEXURE-A

Replies of the Management on the Comments of the Statutory Auditors onthe annual accounts of the Corporation for the Financial Year 2013-14

Auditor's ObservationsBasis of qualified opinion

1. The Company has not undertaken any exercise to test and ascertain impairment loss in line with Accounting Standard -28 “Impairment of Assets” notified under the Act. The aggregate implication, if any, on revenue, assets and liabilities could not be ascertained.

2. The Company has not undertaken actuarial valuation in line with Accounting Standard – 15 “Employee Benefits” notified under the Act while accounting for Leave encashment. The aggregate implication, if any, on revenue, assets and liabilities could not be ascertained.

3. Valuation of stores and spares have been done on weighted average method being accounting policy of the company. Since comparison of cost so arrived, with net realizable value is not made as per AS – 2 notified under the Act, effect of the same on current year results is unascertainable.

4. In pursuance to order of Honorable Supreme Court of India the Company as a pure agent of Government of Odisha sold 7.34 lakh MT of iron ore amounting to Rs.15846.65 lakhs accounted as its own sale without making any provision for the same under unrealized profit which has resulted into overstatement of profit before tax and understatement of current liability to equal amount.

5. Pending adjustments / reconciliations / receipt of confirmation of the balances in Trade Payable, liability for expenses, Bills receivable and loans & advances, the effect of the same on current year’s financial statements is not ascertainable.

None of the Mines are permanently closed. In some cases the Mines operation is temporarily suspended due to want of clearance of either one or other statutory permissions. However, Staff & Officers posted in those Mines are staying in Corporation quarters for attending to day to day maintenance of Camp assets and for up keep of lease area and safeguard of Ore deposits/quarry/ore stocks etc. besides coordinating effort to obtain necessary permission/clearance from the authority. Impairment has not been noted as these assets are maintained in good condition for future commercial use. (Refer Note no 2.60).However, for strict compliance with AS-28, a separate committee will be constituted to assess the impairment of Asset at the end of each Financial Year in future.

Liability on account of Leave Encashment payable at the time of retirement/death during services is provided on actuarial valuation done by LIC & charged to statement of profit & loss. (Refer significant accounting policy 1.10.4).

Necessary modification in the Accounting Policy of the corporation under item no 1.7.3 has been made. This policy has been consistently followed. Further it may be noted that major companies under similar business like M/S OMDC, NMDC,NALCO and MCL are also valuing their stores on the basis of weighted average cost.

As the ore belongs to OMC, sales value of this ore has been included in turnover of OMC. However, necessary compliance to the orders of Hon'ble Supreme Court has duly been made by depositing the Sales proceeds with State Government .Necessary disclosures has also been made in the Accounts vide Notes no.2.61.

Advances recoverable from the salaries are regularly recovered from the monthly salaries of employees. For other advances, employees are being intimated periodically about their outstanding balances and necessary recoveries are made from their salaries when they fail to submit the bills. Advances, Trade Payable accounts etc relating to pre-SAP are under reconciliation. Necessary steps are also being taken for obtaining quarterly confirmation of vendor balances.

Replies of the Management

The Annexure referred to in our report to the members of Odisha Mining Corporation Limited (“the Company”) for the year ended 31 March 2014. We report that:

1. In respect of its fixed assets

a. The Company has maintained proper records showing full particulars Including quantitative details and situation of fixed assets.

b. The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.

c. The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

2. In respect of its inventories:

a. As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals.

b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business.

c. In our opinion and according to the information and explanations given to us, the Company has maintained proper records of inventories and no material discrepancies were noticed on physical verification.

3. In respect of loan granted:

a. The Company has granted a loan of Rs.500 crores in F.Y 2012-13 as unsecured loan to GRIDCO Ltd which is covered in the register maintained under section 301 of the Act.

b. According to the information and explanations given to us, we are of the opinion that the rate of interest and terms and conditions of loan given are prima facie not prejudicial to the interest of the company.

c. According to the information and explanations given to us, the receipt of interest is regular and there is no such overdue.

d. The Company has not taken any loans secured or un-secured from companies, firms or other parties covered in the register maintained u/s 301 of the Act. Accordingly sub-clause (f) & (g) are not applicable.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and the sale of goods and services. During the course of our audit, we have not observed any major weaknesses in such internal controls system.

5. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of The Companies act,1956, to the best of our knowledge and belief and according to the information and explanations given to us:

a. The particulars of contracts or arrangements referred to Section 301 that needed to be entered in the Register maintained under the said Section have been so entered.

b. Where each of such transaction is in excess of Rs. 5 Lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

Replies of the ManagementAudit’s Observation

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

6. According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year. Therefore the provisions of clause (VI) of the Companies (Auditor’s Report) Order 2003 are not applicable.

7. In our opinion, the Company has an adequate internal audit system commensurate with the size and nature of its business.

8. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1)(d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. According to the information and explanations given to us in respect of statutory dues:

a. The Company has generally been regular in depositing undisputed dues, including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income Tax, Sales tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

b. There were no undisputed amounts payable in respect of Income Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other material

ststatutory dues in arrears as on 31 March, 2014 for a period of more than six months from the date they became payable.

c. According to the information and explanations given to us, the following are the disputed dues with respect to Income tax, Sales tax, Service tax, custom duty, excise duty, entry tax, cess which have not been deposited

ston account of dispute pending before appropriate authorities as on 31 March, 2014 are;

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

Name of the Statute where dispute is demanded

pending (Rs. in Lac)

Honourable Orissa Central High Court

Excise and Honourable Orissa 174.11 2005-06 to 2009-11 Customs High Court

Service Tax Asst. Commissioner, 27.27 2004-05 to 2010-11 CECST

Orissa Sales Tax Orissa Sales Tax Tribunal 29.96 2002-03

Orissa Sales Tax Tribunal 50.89 1996-97

Addl. Commissioner of 251.24 2005-06 to 2006-07Commercial Tax

Central Sales Addl. Commissioner of 14.61 2008-09Tax Commercial Tax

Addl. Commissioner of 25.97 01.04.2008 to Commercial Tax 31.12.2011

Entry Tax Addl. Commissioner of 114.70 2005-06 to 2007-08Commercial Tax

Addl. Commissioner of 91.70 01.04.2008 toCommercial Tax 31.01.2012

VAT Addl. Commissioner of 2.48 01.04.2008 toCommercial Tax 31.01.2012

Income Tax CIT(A) & ITAT 19,137.10 2004-05 to 2011-12

Name of the Forum Total amount Period

102.06 1996-97 to 2003-04

10. The Company has no accumulated losses and has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks, financial institutions, debenture holders.

12. In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, paragraph 4(xiii) the Order is not applicable to the Company.

14. In our opinion the Company is not a dealer or trader in shares, securities, debentures and other investments. Accordingly, paragraph 4(xiv) of the Order is not applicable.

15. The Company has given bank guarantees in favor of Mandakini B Coal Company Ltd to Honorable President of India, Ministry of Coal Rs.1218.75 lac (Company’s share 25% out of total guarantee of Rs.4875 lac), Paradeep Port Trust Rs.56.28 lac, IBM Rs.1087.40 lac.

16. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

17. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short term basis have not been used during the year for long term investment.

18. The Company has not made any preferential allotment of share to parties and companies covered in the register maintained under section 301 of The Companies Act 1956.

19. According to the information and explanation given to us the Company has not issued any secured debentures during the year under audit.

20. The Company has not raised any money through public issue during the year.

21. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company has been noticed or reported during the year.

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

ANNEXURE-B

Replies of the Management on Comments of the Comptroller Auditor General of India under Section 619 (4) of the Companies

Act, 1956 on the accounts of The Odisha Mining Corporationst Limited for the year ended 31 March 2014.

and

(A) Comments on profitability

1. Statement of Profit and Loss ExpensesChange in Inventories (Note-2.21): .̀ 56.13 Crore.

a) The above is overstated by ̀ . 12.02 crore due to valuation of closing stock of 552031 MT iron ore at Daitari Mines, Baliparbat Stockyard at `.212 per MT instead of `‘.429.76 per MT. This has also resulted in understatement of Current Assets (Inventory) Note-2.13 and profit for the year by ̀ .12.02 crore each.

b) The Company valued stock of 2206944 MT of iron ore at Khandadhar mines @ `.299.86 per MT that includes both fines and iron ore lumps. The fines are generated in the process of converting Iron Ore to CLO by crushing and constitute a by product. Valuation of inventory of both the products (lump and fines) at single rate is not prudent. In absence of segregated cost of production its impact on profit and inventory could not be ascertained.

2. Other Expenses (Note No.2.24): `.729.04 Crore Royalty `.213.37 Crore.The above does not include `.2.28 crore payable towards royalty at the highest prescribed rate as per the d i rect ives of Di rectorate of Mines, Bhubaneswar. Non-provision of the liability has resulted in understatement of Current Liabilities (Trade Payables), understatement of other expenses and overstatement of Profit for the year by the same amount.

(B) BALANCE SHEET

3. Equity and Liabilities Other Long Term Liabilities Mine Closure (Note.2.3) ̀ 19.70 crore.

The above is understated by ̀ 3.30 crore due to non-provision of the abandonment cost towards reclamation and rehabilitation of mined out area and waste dumps of South Kaliapani Chromate Mines as approved by the mine closure approval committee. This has resulted in under statement of expenses by `3.30 crore (`0.66 crore for 2013-14 and `2.64 crore for prior period) and overstatement of profit by ̀ .3.30 crore.

Comments of the Comptroller and Auditor General of India under section 619(4) of the

companies Act,1956

Replies of the Management

a) While processing the valuation of ore stock of Daitari the said under-valuation has resulted due to unintentional error in the formula calculation of excel sheet. However, this error will be set off in next financial year, since the same value will be carried forward as opening stock value of the next year.

b) In Khandadhar Mines the ratio of Fines & CLO can not be precisely derived as it varies from place to place and at different depths. In view of this geo-technical issue, it is not possible to value ore inventory at separate rate for CLO & Fines as suggested by the Audit.

Till date +65% Fe Grade Iron Ore has not been encountered, extracted and sold during the raising at Daitari Mines. The excavated ore has been analysed and confirmed by the Government Laboratory. The matter is being taken up with the DDM, J.K.Road for revision of assessment of royalty on the basis of (-) 65 grade instead of (+) 65 grade. On settlement of the issue, the differential royalty, if any, will be accounted for in the year of finalisation

Noted for appropriate action.

4. Current Liabilities Other Current Liabilities (Note-2.7): Rs.314.77 Crore.

The above does not include `.6.06 crore being interest on delayed payment of the NPV in respect of SGBK Iron Ore Mines demanded by DFO, Keonjhar. This has resulted in understatement of other expenditure (Net Present Value, Note-2.24) with corresponding over statement of Profit for the year by ̀ .6.06 crore each.

5. The above is understated by `.9.31 crore due to non provision of amount payable towards Site Specific Wildlife Conservation Plan demanded by Forest Authorities during 2010-11 to 2012-13 in respect of four mines. This has resulted in understatement of prior period adjustment and overstatement of profit for the year by ̀ .9.31 crore each.

(C)ASSETS6.NON CURRENT ASSETSFixed Assets (Notes-2.9)Tangible Assets-Gross Block-`.266.66croreCapital Work in Progress: ̀ .36.60 Crore.The company spent `.4.36crore during the year for construction of environmental oriented structures (`.3.22 crore) which are temporary in nature and for development of two lane Barasuan-Khandadhar road (`.1.14 crore) of which the company is not the owner. Although the expenses were revenue in nature, they were capitalized. Thus due to wrong classification of expenditure, Net Fixed Assets and capital works in progress have been over stated by `.1.04 crore and `.2.90 crore respectively with corresponding understatement of Other Expenses by ̀ .4.36 crore and over statement of Profit for the year by ̀ 3.99 crore.

7.Notes to Accounts (2.26) Contingent Liability. The above is understated by `.4.83 crore being interest earned on disputed amount which also should have been shown as Contingent liability.

The demand for interest was received on 30.07.2014 and by that time the Accounts of 2013-14 was finalized. This will be taken into Accounts in the year 2014-15.

The observation of audit relates to site specific wild life management plan is related to the amount payable in respect of the following mines.

1. Kalarangi ̀ . 1.24 Crore2. Rantha `. 0.82 Crore 3. S. Kaliapani `. 1.34 Crore 4. SGBK ̀ . 2.16 Crore5. Tiringpahar `. 0.99 Crore 6. Khandabandh `. 1.70 Crore 7. Banspani `. 1.07 Crore

Total `. 9.32Crore The provision for site specific wild life conservation plan is due only after grant of Stage-I clearance. On receipt of demand, the same can be disclosed as contingent liability only. Accordingly the demand receipt against Rantha mines for `81.77 lakhs has been disclosed under contingent liability. But In case of Tiringpahar Mines; `99.00 lakhs could not be shown under contingent liability due to non finalization of the proposal submitted by OMC from Forest Advisory Committee (FAC) with frequent queries. In the rest of the cases the demand letter have not been received from appropriate authority. Hence the same will be properly disclosed after receipt of demand letters from appropriate authority.

Regarding environmental oriented structures for `.3.22 crore (`1.76 crores and `1.46 crores), observation of Audit is noted for future guidance.Regarding observation on two lane Barasuan Khandadhar road of `.1.14 crores, it is to mention that as per Accounting policy no.1.4.1.a, road is depreciated @100%.This road work is under progress for which the expenditure made are retained under CWIP Account and on completion, the same will be capitalized & depreciated at l00%. This policy is followed consistently for identifying the various Projects completed at different times.

It is already shown under Contingent Liability under note no.2.26.5.iii by clubbing the interest amount with the principal amount.

INDEPENDENT AUDITOR’S REPORT

To the Members of Odisha Mining Corporation LimitedReport on the Financial Statements

1. We have audited the accompanying financial statements of Odisha Mining Corporation Limited. (“the Company”) which comprise the balance sheet as at 31 March 2014, the statement of profit and loss and the cash flow statement for the year then ended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

2. Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting standards referred to in Sub-section (3C) of Section 211of the Companies Act, 1956 (“the Act”) read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

3. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from meterial misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. We believe that the audit evidence we have obtained is sufficient and appropriate to proveide a basis for our audit opinion.

Basis for Qualified Opinion

6. The Company has not undertaken any exercise to test and ascertain impairment loss in line with Accounting Standard-28 “Impairment of Assets” notified under the Act. The aggregate implication, if any, on revenue, assets and liabilities could not be ascertained.

7. The Company has not undertaken actuarial valuation in line with accounting Standard-15 “Employee Benefits” notified under the Act while accounting for Leave encashment. The aggregate implication, if any, on revenue, assets and liabilities could not be ascertained.

8. Valuation of stores and spares have been done on weighted average method being accounting policy of the company. Since comparison of cost so arrived, with net realizable value is not made as per AS - 2 notified under the Act, effect of the same on current year results is unascertainable.

9. In pursuance to order of Honorable Supreme Court of India the Company as a pure agent Government of Odisha sold 7.34 lakhs MT of iron ore amounting to Rs.15846.65 lakhs accounted as its own sale without making any provision for the same under unrealized profit which has resulted into overstatement of profit before tax and understatement of current liability to equal amount.

10. Pending adjustments / reconciliations / receipt of confirmation of the balances in Trade payable, liability for expenses, Bills receivable and loans & advances, the effect of the same on current years financial statements is not ascertainable.

Opinion

11. In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the “basis of qualified opinion” paragraph the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

i. in the case of the balance sheet, of the state of affairs of the Company as at 31 March 2014;

ii. in the case of the statement of profit and loss, of the profit for the year ended on that date; and

iii. in the case of the cash flow statement, of the cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

12. As required by the Companies (Auditor’s Report) Order, 2003 (“the Order”), as amended, issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

13. As required by section 227(3) of the Act, we report that:

a. We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b. in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c. except for the matter described in the Basis for Qualified Opinion paragraph, in our opinion, the balance sheet, statement of profit and loss and cash flow statement dealt with by the Report are in agreement with the books of account;

d. in our opinion, the balance sheet, statement of profit and loss and cash flow statement comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

e. In terms of Government of India, Department of Company Affairs Notification No.GSR st829(E) dated 21 October, 2003, Government companies are exempt from the applicability

of provisions of section 274(1)(g) of the Companies Act, 1956.

For SRB & AssociatesChartered AccountantsFirm’s registration number: 310009E

Sd/-S C BhadraPartnerMembership number: 017054

BhubaneswarthAugust 6 2014

ANNEXURE TO THE AUDITOR’S REPORT

The Annexure referred to in our report to the members of Odisha Mining Corporation Limited (“the Company”) for the year ended 31 March 2014. We report that:

1. In respect of its fixed assets:

a. The Company has maintained proper records showing full particulars Including quantitative details and situation of fixed assets.

b. The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.

c. The fixed assets disposed off during the year, in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has, in our opinion, not affected the going concern status of the Company.

2. In respect of its inventories:

a. As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals.

b. In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business.

c. In our opinion and according to the information and explanations given to us, the Company has maintained proper records of inventories and no material discrepancies were noticed on physical verification.

3. In respect of loan granted:

a. The Company has granted a loan of Rs.500 crores in financial year 2012-13 as unsecured loan to GRIDCO Ltd which is covered in the register maintained under section 301 of the Act.

b. According to the information and explanations given to us, we are of the opinion that the rate of interest and terms and conditions of loan given are prima facie not prejudicial to the interest of the company.

c. According to the information and explanations given to us, the receipt of interest is regular and there is no such overdue.

d. The Company has not taken any loans secured or un-secured from companies, firms or other parties covered in the register maintained u/s 301 of the Act. Accordingly sub-clause (f) & (g) are not applicable.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and the sale of goods and services. During the course of our audit, we have not observed any major weaknesses in such internal controls system.

5. In respect of contracts of arrangements entered in the Register maintained in pursuance of Section 301 of The Companies act, 1956, to the best of our knowledge and belief and according to the information and explanations given to us:

a. The particular of contracts or arrangements referred to Section 301 that needed to be entered in the Register maintained under the side Section have been so entered.

b. Where each of such transaction is in excess of Rs.5 Lakhs in respect of any party, the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time.

6. According to the information and explanations given to us, the Company has not accepted any deposit from the public during the year. Therefore the provisions of clause (VI) of the Companies (Auditor’s Report) Order 2003 are not applicable.

7. In our opinion, the Company has an adequate internal audit system commensurate with the size and nature of its business.

8. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules, 2011 prescribed by the Central Government under Section 209(1) (d) of the Companies Act, 1956 and are of the opinion that prima facie the prescribed cost records have been maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

9. According to the information and explanations given to us in respect of statutory dues:a. The Company has generally been regular in depositing undisputed dues, including

Provident Fund Investor Education and Protection Fund, Employee’s State Insurance, Income Tax, Sales tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities.

b. There were no undisputed amounts payable in respect of Income Tax, Wealth Tax, Customs stDuty, Excise Duty, Cess and other material statutory dues in arrears as on 31 March, 2014

for a period of more than six months from the date they became payable.c. According to the information and explanations given to us, the following are the disputed

dues with respect to Income tax, Sales tax, Service tax, custom duty, excise duty, entry tax, cess which have not been deposited on account of dispute pending before appropriate

stauthorities as on 31 March, 2014 are;

Name of the Statute Name of the Forum Total amount demanded Period

where dispute is pending (Amount in Rs. lakhs)

Cental Excise and Honorable Odisha 102.06 1996-97 to 2003-04

Customs High Court

Honorable Odisha 174.11 2005-06 to 2009-11

High Court

Service Tax Asst. Commissioner, 27.27 2004-05 to 2010-11

CECST

Orissa Sales Tax Orissa Sales Tax 29.96 2002-03

Tribunal

Central Sales Tax Orissa Sales Tax 50.89 1996-97

Tribunal

Addl. Commissioner 251.24 2005-06 to 2006-07

of Commercial Tax

Addl. Commissioner 14.61 2008-09

of Commercial Tax

Addl. Commissioner 25.97 01.04.2008 to

of Commercial Tax 31.12.2011

Entry Tax Addl. Commissioner 114.70 2005-06 to 2007-08

of Commercial Tax

Addl. Commissioner 91.70 01.04.2008 to


VAT Addl. Commissioner 2.48 01.04.2008 to


Income Tax CIT (A) & ITAT 19137.10 2004-05 to 2011-12

10. The Company has no accumulated losses and has not incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of dues to banks, financial institutions, debenture holders.

12. In our opinion and according to the information and explanation given to us, no loans and advances have been granted by the Company on the basis of security be way of pledge of shares, debentures and other securities.

13. In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, paragraph 4(xiii) the Order is not applicable to the Company.

14. In our opinion the Company is not a dealer or trader in shares, securities, debentures and other investments. Accordingly, paragraph 4(xiv) of the Order is not applicable.

15. The Company has given bank guarantees in favor of Mandakini B Coal Company Ltd to Honorable President of India, Ministry of Coal Rs.1218.75 lakhs (Company’s share 25% out of total guarantee of Rs.4875 lakhs), Paradeep Port Trust Rs.56.28 lakhs, India Beuro of Mines Rs.1087.40 lakhs.

16. In our opinion and according to the information and explanations given to us, the term loans have been applied for the purpose for which they were obtained.

17. In our opinion and according to the information and explanations given to us and on an overall examination of the Balance Sheet, we report that funds raised on short term basis have not been used during the year for long term investment.

18. The Company has not made any preferential allotment of share to parties and companies covered in the register maintained under section 301 of the Companies Act 1956.

19. According to the information and explanation given to us the Company has not issued any secured debentures during the year under audit.

20. The Company has not raised any money through public issue during the year.

21. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company has been noticed or reported during the year.

For SRB & AssociatesChartered AccountantsFirm’s registration number: 310009E

Sd/-S C BhadraPartnerMembership number: 017054

BhubaneswarthAugust 6 2014

Particulars Notes As at March 31, 2014 As at March 31, 2013

(Rupees in lac.)

I. EQUITY AND LIABILITIES(1) Shareholders’ Funds

a) ShareCapital 2.1 3,145.48 3,145.48 b) Reserves and Surplus 2.2 586,417.45 514,982.14 Sub Total 589,562.93 518,127.62

(2) Non-Current Liabilitiesa) Long Term Borrowings - - b) Deffered Tax Liabilities(Net) - - c) Other Long Term Liabilities 2.3 2,422.17 2,422.17 d) Long Term Provisions 2.4 4,108.59 4,328.37

Sub Total 6,530.76 6,750.54 (3) Current Liabilities

a) Short Term Borrowings 2.5 37,056.47 30,516.36 b) Trade Payables 2.6 24,554.86 69,094.56 c) Other Current Liabilities 2.7 31,476.76 32,878.40 d) Short Term Provisions 2.8 655.29 917.44

Sub Total 93,743.37 133,406.76 Total (1 + 2 + 3) 689,837.06 658,284.92

II. ASSETS(1) Non-Current Assets

(a) Fixed Assets i) Tangible Assets - Gross Block 2.9 26,665.93 25,714.98 Less : Depreciation, Impairment

& Provisions 2.9 19,635.04 18,559.42

Net Block 7,030.89 7,155.57 ii) Intangible Assets - Gross Block 2.9 - - Less : Depreciation, Impairment

& Provisions - - Net Block - -

iii) Capital Work-in-Progress 2.9 3,659.59 3,029.41 iv) Intangible Assets under Development - -

10,690.49 10,184.98

(b) Non-Current Investments 2.10 37,435.89 14,339.89 (c)Deferred Tax Asset (Net) 2.30 362.94 557.09 (d ) Long Term Loans & Advances 2.11 46,674.37 51,189.17 (e) Other Non-Current Assets 2.12 12,999.55 2,454.69

(2) Current Assets(a) Inventories 2.13 27,864.56 33,316.26 (b ) Trade Receivables 2.14 973.17 766.26 (c) Cash & Cash equivalents 2.15 409,274.12 412,243.74 (d) Short Term Loans & Advances 2.16 115,927.41 105,540.90

(e) Other Current Assets 2.17 27,634.56 27,691.95

Sub Total 581,673.82 579,559.11 Total (1 + 2) 689,837.06 658,284.92

Significant Accounting Policies and Notes on Accounts forming part of Accounts 1 & 2

THE ODISHA MINING CORPORATION LIMITED, BHUBANESWAR(A Gold Category State PSU)

(A Government of Odisha Undertaking)

BALANCE SHEET

For and on behalf of the Board

Sd/-Chairman-Cum-

Managing Director

Sd/-General Manager

(Finance)

For SRB & AssociatesChartered AccountantsF.R.N: 310009E

Sd/-S C BhadraPartnerM. No: 017054

Date : 06.08.2014Place : Bhubaneswar


Sd/-Director

Revenue From Operations 2.1 185,388.17 165,814.57 Other Income 2.19 58,099.91 54,061.05

(A) Total Revenue 243,488.09 219,875.62 EXPENSESCost of Materials Consumed 2.20 1,471.78 625.72 Changes in Inventories 2.21 5,612.50 (1,783.79)Employee benefit expenses 2.22 15,871.24 14,554.66 Finance Costs 2.23 1,578.42 1,321.12 Depreciation/Amortization/Impairement 1,054.71 1,214.16 Other Expenditures 2.24 72,904.10 65,597.90

(B)Total Expenses 98,492.75 81,529.77

(C)Profit/Loss before extraordinary items 144,995.34 138,345.85 and Tax (A-B)(D)Extraordinary Items (E)Profit/Loss before Tax (C-D) 144,995.34 138,345.85 Less : Provision For Taxation - Current year Income Tax 55,307.13 48,776.53 - Deferred Tax 194.14 (60.13) - Earlier years 2,711.48 18.27 - Wealth Tax 1.05 1.12

(F) Total Provision for Taxation 58,213.81 48,735.80

(G) Profit/Loss after Tax (E-F) 86,781.53 89,610.05 (H) Earning per Equity Share : (Face Value of Rs. 100/- each) 2.64(i) Basic 2,758.93 2,848.85 (ii) Diluted 2,759.31 2,852.56 Significant Accounting Policies and Notes on Accounts forming part of Accounts. 1 & 2



STATEMENT OF PROFIT & LOSS

Particulars NoteFor the year ended

March 31, 2014For the year ended

March 31, 2013

(Rupees in lac.)


Sd/-Chairman-Cum-

Managing Director

Sd/-General Manager

(Finance)





Sd/-Director

A Cash Flow from Operating ActivitiesNet Profit Before Taxes & Extraordinary Prior Period items 145,007.34 138,462.39 Loss from Discontinued Operations before Tax - -Depreciation & Amortisation (Incl. Impairement) 1,054.71 1,214.16 Interest on Deposits with banks -40,636.72 -48,148.52 Other Interest -6,798.98 -4,335.59 Prov. For bad & doubtful advances & Misc losses written off - - Unamortised expenditure written off - - Operating profit before working capital adjustments 98,626.35 87,192.45 Increase(-)/Decrease(+) in inventories 5,451.70 -1,791.28 Increase(-)/Decrease(+) in Trade Receivables -206.92 655.88Increase(-)/Decrease(+) in Long Term & Short Term Loans & Advances 2,175.36 -65,906.00 Increase(-)/Decrease(+) in accrued Interest on deposits with Banks 573.49 -2,096.76 Increase(-)/Decrease(+) in other Current Assets -516.10 -65.34 Increase(-)/Decrease(+) in Other Non Current Assets -10,544.85 -2,355.26 Increase(-)/Decrease(+) in assets held for disposal - -Increase(+)/Decrease(-) in Long Term, Short Term Liab. & Trade Payables -34,832.47 73,061.24 Increase(+)/Decrease(-) in Long Term & Short Term provisions -481.87 713.19 Prior Period Adjustment 9.35 -116.55 Cash Generated from Operations -38,372.31 2,099.11 Interest paid on Income Tax - - Direct Taxes(Net) -66,065.68 -95,394.31 Deferred Tax - - Wealth Tax -1.12 -0.77 Cash Outflow in Operating Activities -66,066.81 -95,395.08

Cash Used(-)/(+) Generated from Operating Activities (A) -5,812.76 -6,103.52

B Cash Flow from Investing ActivitiesPurchase of Tangible & Intangible assets -951.40 -1,144.21 Increase(-)/Decrease(+) in CWIP -630.18 -867.07 Profit/Loss on sale of fixed assets(Net) - 135.78 Increase(-)/Decrease(+) in Capital Advances - - Purchase of Investments -23,096.00 -300.00 Reinstatement of Investments - - Interest on Deposits with banks 40,636.72 48,148.52 Interest on Investment(Joint Venture) - 7.84 Other Interest 6,798.98 4,335.59 Sale of Investments - - Sale/Deletion of Fixed Assets - - Increase(-)/Decrease(+) in Unamortised Expenditure - - Increase(-)/Decrease(+) in Investment in Term Deposits with more than 3 months 6,833.64 42,619.87

Cash Used(-)/(+) Generated in Investing Activities (B) 29,591.76 92,936.32

C Cash flow from Financing ActivitiesPayment of Dividends -40,000.00 -50,000.00 Tax on Dividends -6,798.00 -8,111.25 Increase(-)/Decrease(+) in Balances with Banks for unpaid dividend 26,883.01 -26,883.01

Cash Used(-)/(+) Generated in Financing Activities (C) -19,914.99 -84,994.26

Net Increase(+)/Decrease(-) in Cash & Cash Equivalents(A+B+C) 3,864.02 1,838.53

Cash & Cash Equivalents in the beginning of the year 4,606.41 2,767.88 Cash & Cash Equivalents in the end of the year 8,470.43 4,606.41

Net Increase in Cash & Cash Equivalents 3,864.02 1,838.53 Components of Cash & cash Equivalents :Cash & Cheques on Hand 5.17 10.76 Balances with Scheduled Banks In Current Account 8,465.26 4,595.65 Remittance in Transit - - In Term Deposits with original maturity less than 3 months - -

8,470.43 4,606.41

THE ODISHA MINING CORPORATION LIMITED, BHUBANESWAR

CASH FLOW STATEMENTFor the year ended

31-March-2014 (Rs. in Lac)For the year ended

31-March-2013 (Rs. in Lac)


Sd/-Chairman-Cum-

Managing Director

Sd/-General Manager

(Finance)





Sd/-Director



1. SIGNIFICANT ACCOUNTING POLICIES1.1. Basis of accounting and preparation of financial statements - General

For preparation of its financial statements, the Company adopts the historical cost concept as a going concern and on accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) in India. The financial statements are prepared in compliance with all material aspects and applicable principles in India, the applicable accounting standards as notified under Section 211 (3C) of the Companies Act, 1956 and the relevant provisions of the Act consistently followed unless specified otherwise.

1.2. Use of Estimates

The Company uses prudent and reasonable assumptions and estimates wherever required in the preparation of its financial statements, and these are reflected in the reported amounts of income and expenses during the year, and the reported balances of assets and liabilities, and disclosures relating to the contingent liabilities, as at the date of the financial statements.

1.3 Fixed Assets

1.3.1. All fixed assets are stated at historical cost less accumulated depreciation. The cost of fixed assets includes all incidental expenses for acquiring fixed assets up to the date of commissioning of assets.

1.3.2. Expenditure during construction period including interest on specific borrowing for the new major projects are/is capitalized till the stabilization of commercial production.

1.3.3. Buildings, Structures, Stockyards, Roads and embedded Plant & Machinery on land taken on mining lease / rental basis are capitalised.

1.3.4. Premium on Leasehold Land is capitalised.

1.3.5. In respect of construction of labour tenements in mines, differential amount 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.

1.3.6. With effect from the financial year 2012-13, “Lease Hold Land is disclosed at the amortised value i.e. actual cost (premium on lease hold land) less amortisation for the expired lease period.”

1.3.7. Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest where loans are availed for financing the said projects.

1.4. Depreciation

1.4.1. Depreciation is provided in the accounts on written down value method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except for the following :

a) Roads, bridges & culverts, temporary structures, Huts & Barracks of temporary nature, Tents and Tarpaulins are written off fully in the year of capitalisation.

b) Depreciation on 'Ore Handling Plant', 'Railway Siding', Platform, Dump yard, Stockpile and 'Stockyard' is provided at 30%.

1.4.2. Premium on Leasehold Land

With Effect from financial year 2012-13, Lease Hold Land has been amortised for the expired life of the Lease period in compliance to the Accounting Standard 19 issued under the Act..

1.4.3. Depreciation is provided on building and structures at above mentioned rates even if these are constructed on land taken on mining lease / rental basis.

1.5. Borrowing costs

Interest and other borrowing costs directly attributable to the acquisition, construction or installation of qualifying capital assets till the date of commercial use of the assets are capitalized. Other borrowing costs are recognized as revenue expenditure.

1.6. Investments

1.6.1. Long Term Investments are stated at cost. However, provision for diminution in value is made to recognize a decline, other than temporary, in the value of investments.

1.6.2. Current investments are carried at lower of cost and fair value.

1.7. Inventories

1.7.1. Closing Stock of ore has been valued at lower of average cost and net realisable value of each grade and size of mineral.

1.7.2 Consequent upon approval of Board of Directors the following policy is adopted with effect from Financial year 2013-14.

(A) The quantity of sub-grade and incidental waste of Iron Ore mines booked to production on effecting Sales (as disclosed under Significant Accounting Policies no.l.9.3(A)) is not considered for calculation of cost of production for closing stock valuation purpose.

(B) 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 beneficiation to COBP / Sales, if any (as disclosed under Significant Accounting Policies no.l.9.3(B)) is not considered for calculation of cost of production for closing stock valuation purpose.

1.7.3. In view of the difficulty in ascertaining NRV of various materials, valuation of stock items of stores is made at the weighted average cost.

1.7.4. Non-stock items such as medicine, printing & stationery, crèche and canteen stores are charged to consumption account in the system at the time of purchase. Basing on physical verification report, value of such stock (on purchase cost) at the year end is fed into the system through adjustment entry while finalising the Annual Accounts. The consumption account of such stores is reduced to the extent of physical stock value created in the system.

1.7.5. Any Store items not issued for ten years is considered as non moving and 100% value of such items are provided in the Accounts with effect from Financial Year 2013-14 based on approved Purchase Manual.

1.8. Income and Expenditure

1.8.1. Export sale is recognized on the basis of date of bills of lading /mate receipt.

1.8.2. With effect from F.Y.2011-12, Domestic sales are recognized based on preparation of Post Goods Issue (PGI) and invoice thereto in the system against a particular delivery order.

1.8.3. A. All incomes are recognized on accrual basis except for:

(a) Dispatch money on exports,

(b) Commission,

(c) Subsidy for construction of tenements at Mines,

(d) Refund of interest on income tax,

(e) Refund of sales tax or interest on the same relating to the period prior to 2007-08, which are accounted on cash basis and

(f) Penalty and Recovery from Contractors are accounted as and when settled.

B. Consequent upon approval of Board of Directors, with effect from F.Y.2013-14 “Interest income on Staff Advance will be recognized on Accrual basis”

1.8.4. 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.

1.8.5. All expenditure is recognized on accrual basis except for:

a) Demurrage on export sales

b) Interest payable on negotiation of bills with banks in respect of export sales.

c) With effect from F.Y.2009-10, Voluntary Retirement Scheme payments are treated as revenue expenditure being charged to the Statement of Profit & Loss in the year in which the amount is paid.

1.8.6. Expenditure incurred at the prospecting camps relating to ore prospecting work is treated as revenue expenditure.

1.8.7. NPV dues as demanded by the State Government are provided and charged to Accounts of the year in which the demand is raised by the Government.

1.8.8. Expenditure incurred for implementation & maintenance of ERP excepting hardware expenses are treated as revenue expenditure.

1.8.9. In absence of detailed calculation of ore reserve its grade, associated rocks and materials etc. as required under Rule 43 of Mineral Conservation and Development Rules,1998, no provision is being made for backlog of quantity of waste material. Expenditure on cutting and removing of overburden is accounted as and when incurred.

1.8.10. Prior period income / expenditure and pre paid expenses:

With effect from F.Y.2011-12, Income/expenditure relating to prior period and pre-paid expenses within Rs.1 lakh (Rupees one lakh) in each case is treated as income/expenditure for the current year.

1.9. Production Cost

In respect of accounting for production of ore, the Company follows the following practice consistently:

1.9.1. In respect of mines where raising is given as composite contract to a contractor, production of ore is accounted to the extent of quantity actually transported to the plot and / or crusher for further processing/ actually sold from the mine itself during the year.

1.9.2. In respect of mines where only excavation contract is given to the contractor or when production is done by Company's workers, production is accounted on raising of the ore.

1.9.3. Consequent upon approval of Board of Directors the following policy is adopted with effect from Financial year 2013-14.

(A) The quantity of sub-grade and incidental waste of Iron Ore mines is booked to production only on effecting Sales.

(B) The quantity of sub-grade Chrome Ore out of the South Kaliapani Mines old dumps is booked to Production on the basis of transferred quantity for beneficiation to COBP on effecting such transfer / Sales, if any.

1.10. Employee benefits

1.10.1. Short term employee benefits are recoginsed as an expense at the undiscounted amount in the Statement of Profit & Loss of the year in which the related service rendered.

1.10.2. Liability in respect of gratuity is provided as per actuarial valuation made by L. I. C. which is managing the fund of Gratuity Trust and the same is being paid by OMC to Gratuity Fund Trust.

1.10.3. Employees Provident Fund is being managed by a separate Trust. Liability in respect of Employer's contribution to Provident Fund is provided on accrual basis and is being paid by OMC to the CPF Trust.

1.10.4. Liability on account of Leave Encashment payable at the time of retirement/death during services is provided on actuarial valuation made by LIC & charged to statement of profit & loss.

1.11. Foreign Currencies

1.11.1. Transactions in foreign currencies are accounted for at exchange rates prevailing on the date of transaction takes place.

1.11.2. Current assets and Current Liabilities in foreign currencies are converted to rupees at relevant rates prevailing on the last day of accounting year and resultant gains/losses are charged / credited to the Statement of Profit & Loss.

1.12. Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax assets and liabilities are measured using the tax rates which are applicable at the Balance Sheet date. Deferred tax expense or benefit is recognised, subject to consideration of prudence, on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods.

Deferred tax assets are recognised for all deductible timing differences and are carried forward to the extent there is reasonable certainty that sufficient taxable profit will be available to realize these assets. Deferred tax assets to the extent they relate to brought forward losses and unabsorbed depreciation are recognised only to the extent there is virtual certainty of realization and sufficient taxable income will be available to realize such asset.

1.13. Liabilities for Central Excise

Liability for excise duty is considered in case of chrome concentrate at the time of dispatch (from C.O.B.Plant ) for domestic sales.

1.14. Provisions and Contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow or resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to 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 and adjusted to reflect the current best estimates. Contingent liabilities including claims against the Company not acknowledged as debts are disclosed only to the extent such claims are preferred before judicial forum / claims made by Government Authorities. Contingent assets are neither recognised nor disclosed in the financial statements.


Sd/-Chairman-Cum-

Managing Director

Sd/-General Manager

(Finance)





Sd/-Director



Note: 2.1 SHARE CAPITAL (Rupees in lac)

Number Amount Number mount

Authorised 10000000 (Previous Year 10000000) 10,000,000.00 10,000.00 10,000,000.00 10,000.00 Equity Shares of Rs 100/- each Issued, Subscribed and Paid-up3145480 Equity Shares (Previous Year 3145480) 3,145,480.00 3,145.48 3,145,480.00 3,145.48 of Rs.100/- each fully paid up.

3,145,480.00 3,145.48 3,145,480.00 3,145.48

Note: Shares in the company held by each shareholder holding more than 5% shares

Name of Shareholder No. of Shares Held No. of Shares Held( Face value of ( Face value ofRs. 100 each) % of Total Shares Rs. 100 each) % of Total Shares

Hon’ble Governer of Odisha 3,145,390.00 99.997% 3,145,390.00 99.997%

The Corporation has only one class of shares referred to as equity shares having a par value of Rs 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.

Particulars As at March 31, 2014

As at March 31, 2014



Note: 2.2 RESERVES & SURPLUS (Rupees in lac)

RESERVES :

A. Capital Reserve

a) As per last Balance Sheet 1,778.52 1,770.68

b) Addition during the year - 7.84

c) Adjustment During the year - -

Balance Capital Reserve 1,778.52 1,778.52

B. General Reserve


b) Transfer from Statement of Profit & Loss 13,116.99 76,883.01

c) Adjustment During the year/period - -

Balance General Reserve 197,191.88 184,074.89

C. Surplus in Statement of Profit & Loss


b) Profit/(Loss) after Tax During the Year/ period 86,781.53 89,610.05

c) Transfer to General Reserve 13,116.99 76,883.01

d) Dividend 13,116.99 76,883.01

e) Corporate Dividend Tax 2,229.23 12,680.02

Balance of Surplus (a+b-c-d-e) 387,447.05 329,128.72

Total (A+B+C) 586,417.45 514,982.14



Particulars As at March 31, 2014 As at March 31, 2013



Note-2.3 OTHER LONG TERM LIABILITIES (Rupees in lac)

Mine Closure * 1,970.00 1,970.00

Felling of Trees 452.17 452.17

TOTAL 2,422.17 2,422.17

Notes

Mine Closure *

As per Mineral Conservation & Deveopment (Amendment) Rule, 2003 vide Notification Dt. 10th April, 2003 of Ministry of Mines, New Delhi, every mine shall have Mine Closure Plan- (1) Under Rule 23B of MCDR (Amendment) 2003, the owner shall in case of fresh grant/renewal of mining lease submit a progressive Mine Closure Plan as a component of mining plan and in case of existing minig lease submit a progressive Mine Plan for approval within a period of 180 days from the commencement of aforesaid rule. (2) Final Mine Closure Plan means a plan prepared as per IBM guidelines. Under rule 23C of MCDR (Amendment) 2003, this shall be submitted for approval one year prior to the purpose of decommissioning, reclamation in the mine or part thereof after cessation of mining and mineral proposed closure of the plan. (3) As against securities of carrying out above work u/r 23f pf MCDR(Amendment) 2003, lessee has to furnish financial assurance to the competent authority (IBM) so as to indemnify the authorities against the reclamation and rehabilitation cost. All the mines (24 operational mines ) which have mining lease of 7900 Hects approx. and under rule 23F(1) MCD Rules (Amended) 2003. OMC mines are considered as “A “ grade mines and a provision of 19.70 crore has ben provided for in books of accounts over a period of 10 years wef Financial Year 2003-04.




Note-2.4 LONG TERM PROVISIONS (Rupees in lac)

Long Term Provisions for

- Leave EncashmentFelling of Trees 4,108.59 4,328.37

TOTAL 4,108.59 4,328.37




Note-2.5 SHORT TERM BORROWINGS (Rupees in lac)

SecuredLoans Repayable on DemandFrom Banks Short Term Loan * 37,056.47 30,516.36

TOTAL 37,056.47 30,516.36

Notes :

* Short term loan taken from banks against pledged FDR. (Refer Note 2.15)




Note-2.6 TRADE PAYABLE (Rupees in lac)

For Supplies :a) For Revenue 3,021.77 4,293.95

Sub Total 3,021.77 4,293.95 For Expenses : 21,533.09 64,800.62 c) Provision / Liability for Royalty / ore raising etc. 21,533.09 64,800.62

TOTAL 24,554.86 69,094.56

Notes :

1. Includes Provision / Liability towards Royalty, Ore raising and etc.

2. Refer (Notes to Accounts) Note 2.57 for disclosure on creditors / suppliers cover under MSME Act, 2006




Note-2.7 OTHER CURRENT LIABILITIES (Rupees in lac)

1. Security Deposit from Vendors /Contractors 2,038.71 1,996.15

2. Earnest Money Deposit 3,739.67 3,074.35

5,778.38 5,070.50

3. Statutory Remittances

a) OST /VAT/Service Tax/Other Tax 245.51 914.02

b) Provident Fund & Pension Fund 148.72 7.60

c) NPV 13,375.01 11,904.28

d) Royalty Payable (Civil Works Contract) 1.29 7.13

e) Income Tax Deducted at Source 29.47 21.70

f) Professional Tax/Others 27.81 30.04

Sub Total 13,827.82 12,884.75

4. Advance from customers 10,116.86 13,343.52

5. Liability towards Employees

a) Salary Wages & other 5.69 54.19

b) Sundrey Creditors -Employees 2.62 42.87

Sub Total 8.31 97.06

6. Others

a) Capitals 210.77 -

b) Employees & Expenses 1,534.62 1,482.58

1,745.39 1,482.58

TOTAL 31,476.76 32,878.40




Note-2.8 SHORT TERM PROVISIONS (Rupees in lac)

Provision for Employee Benefits :

Gratuity Payable to Gratuity Trust - 910.76

Sub Total - 910.76

Provision for Others :

Wealth Tax 1.11 1.17

Income Tax - -

Provision Non-Moving 641.82 -

Diminuation C/A 12.36 5.51

Sub Total 655.29 6.68

TOTAL 655.29 917.44


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00

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(a)

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d

(b)

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d

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nt B

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ing

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er B

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ing

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talla

tions

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man

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5

1,96

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--

- - - - - - - - - - - - - - - - - - - - -

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- --

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& C

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* Dep

ricia

tion

for

the

curr

ent p

erio

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clud

es p

ost c

apita

lisat

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of R

s 21

.35

lac

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reci

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pro

vide

d in

the

acco

unts

on

wri

tten

dow

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lue

met

hod

at th

e ra

tes

and

in th

e m

anne

r pre

scri

bed

in S

ched

ule

XIV

of t

he C

ompa

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Act

, 195

6 ex

cept

(a)R

oads

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tem

pora

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s, H

uts

& B

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cks

of te

mpo

rary

nat

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Ten

ts a

nd T

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ulin

s ar

e w

ritte

n of

f ful

ly in

the

year

of c

apita

lizat

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(b) D

epre

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on ‘O

re H

andl

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t’, ‘

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’ is

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are

cons

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on la

nd ta

ken

on m

inin

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ase

/ ren

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.

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ition

of d

epre

ciat

ion

duri

ng th

e FY

201

3-14

is R

s. 1

049,

89,6

67.8

6 an

d am

ortis

atio

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leas

ehol

d la

nd R

s. 4

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532.

92 &

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t Cap

italis

atio

n de

prec

iatio

n is

Rs.

21,3

5,40

8.00

and

dep

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tired

is R

s. 4

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3.75

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E O

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AT

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ITE

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HU

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NE

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AR

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(A G

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men

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nd

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akin

g)

(In

Rup

ees)



Note-2.10 NON CURRENT INVESTMENTS (Rupees in lac)

A. Trade Investments - - B. Other Investments

(a) Investment in Equity instruments 37,421.74 14,325.74 (b) Investments in preference shares 450.00 450.00

Sub Total 37,871.74 14,775.74

Less : Provision for dimunition in the value of Investments * 435.84 435.84 Total 37,435.89 14,339.89

Particulars 2013 2012

Aggregate amount of unquoted investments 37,871.74 14,775.74 Aggregate provision for diminution in value of Investments 435.84 435.84

Toatl 37,435.89 14,339.89


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Note-2.11 LONG TERM LOANS & ADVANCES (Rupees in lac)

LOANS & ADVANCESInter Corporate Loan to GRIDCO * - Secured considered good 45,825.00 50,391.75 - Unsecured considered good - - - Doubtful - - Less: Provision - - Sub Total 45,825.00 50,391.75 Loans to Employees - Secured considered good 169.30 111.25 - Unsecured considered good 680.07 686.17 - Doubtful - - Less: Provision - - Sub Total 849.37 797.42

Total 46,674.37 51,189.17

*GRIDCO is a State PSU dealing with trading of power. GRIDCO availed Rs.500.00 Crores intercorporate loan from OMC since 05.12.2012 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 floating 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.




Note-2.12 OTHER NON-CURRENT ASSETS (Rupees in lac)

Security Deposit - Secured considered good - - - Unsecured considered good 12,999.55 2,454.69 - Doubtful - - Less: Provision - - Total 12,999.55 2,454.69




Note-2.13 INVENTORIES (Rupees in lac)

A) Stock of OreIron Ore 22,693.47 25,379.22 Chrome Ore 3,622.65 6,549.40 Manganese Ore 140.73 140.73 Gem Stone - - Lime Stone - -Sub Total 26,456.86 32,069.35 B) Stock of Stores & Spares Drilling Accessories 48.82 52.23 Tools & Implement 9.16 9.75 Other Stores 1,344.97 1,181.23

Sub Total 1,402.96 1,243.21

C) Stock of Medicine at OMC Hospital 4.75 3.70 Total 27,864.56 33,316.26

NotesRefer Notes to Accounts No 1.7 for Policies on Valuation




Note-2.14 TRADE RECEIVABLES (Rupees in lac)

Trade receivables outstanding for a period less than six months from the date they are due for paymentSecured, considered good 878.46 739.65Unsecured, considered good - - Unsecured, considered doubtful - - Less: Provision for doubtful debts - - Sub Total 878.46 739.65 Trade receivables outstanding for a period exceeding six months from the date they are due for paymentSecured, considered good - - Unsecured, considered good 94.72 26.61 Unsecured, considered doubtful 93.55 93.55

Less: Provision for doubtful debts 93.55 93.55

Sub Total 94.72 26.61

Total 973.17 766.26




Note-2.15 CASH & CASH EQUIVALENTS (Rupees in lac)

A. Balances with banks :

a) Current Account 8,465.26 4,595.65

b) FDR * 400,803.69 407,637.33

Sub Total 409,268.95 412,232.97

B. Cheques, drafts on hand - -

C. Cash on hand 5.17 10.76

D. Others - -

E. Remittance - in transit - -

Total 409,274.12 412,243.74

* Refer Note 2.5-Short Term Borrowings-FDR vide no kcc/01/130326006681 Rs 11300 lac , kcc/01/130293006681 Rs 1200 lac and kcc/01/13030500664 Rs.16300lac against short term loan from Corporation Bank Main Branch Bhubaneswar for Rs.26899.68 lac, short term borrowing- FDR vide No 33051904569 Rs.3500 lkac in SBI Main Branch included pledge as security for Rs.3150 lac against short term loan from SBI for RS.3150 lac and short term borrowing -FDR vide no 4820100060036 in Andhra Bank Main Branch included pledge as security for Rs.11200 lac against short term loan from Andhra Bank for Rs.6950 lac in Andhra Bank in Financial year 2013-14.

Rs.6349 lac (Previous Year Rs.5831 lac) was kept as Earedmarked Balances with Banks against sale proceed of seized chrome oreRs.1219 lac (Previous year Rs.2438 lac) pledged against Bank Guarantee submitted to ministry of Coal in respect of Mandakini-B coal Company Limited.

Rs.149 lac (previous year Rs.149 lac) pledged against LC Provided to East Coast Railway

Rs. Nil (Previous Year Rs.115 lac) kept in respect of FDR of Nuagason Coal Corporation Limited.

Rs.563 lac held with more than 12 Months Maturities.




Note-2.16 SHORT TERM LOANS AND ADVANCES (Rupees in lac)

A. Advance to Vendors/Contractors / Mining

Authorities(Royalty Advance)

Secured, considered good - -

Unsecured, considered good 26,530.00 29,712.06

Doubtful - -

Less:Provision - -

Sub Total 26,530.00 29,712.06

B. Income Tax(Net off Provision) / Tax Deducted at Source



Doubtful - -

Less:Provision - -

Sub Total 88,272.37 74,737.64

C. Advance Sales Tax


Unsecured, considered good 7.71 5.00

Doubtful - -

Less:Provision - -

Sub Total 7.71 5.00

D. Advance to Employees



Doubtful - -

Less:Provision - -

Sub Total 1,048.42 1,023.91

E. Sundry Dues Realisable


Unsecured, considered good 68.92 62.29

Doubtful - -

Less:Provision - -

Sub Total 68.92 62.29

Total 115,927.41 105,540.90




Note-2.17 OTHER CURRENT ASSETS (Rupees in lac)

Interest Accrued on Fixed Deposit with banks 26,781.49 27,354.99 Interest Accrued on Employees Advances 308.73 -Prepaid Expenses 428.18 251.25Cenvat Credit Accrual 116.16 85.71

Total 27,634.56 27,691.95




Note-2.18 REVENUE FROM OPERATIONS (Rupees in lac)

Gross Sales : Iron Ore 1,00,742.73 1,11,209.79 Chrome Ore 84,645.44 54,604.78

- -Revenue From Operations 1,85,388.17 1,65,814.57




Note-2.19 OTHER INCOME (Rupees in lac)

InterestOn Fixed Deposit with Banks 40,636.72 48,148.52On Loans & Advances to Employees and Others 6,798.98 4,335.59

Sub Total 47,435.70 52,484.11

House Rent Received 65.15 60.21Grant in AID 1.30 0.07

Other Income 1,487.61 1,516.66

Write back excess liability 9,110.16 -

Total 58,099.91 54,061.05




Note-2.20 COST OF MATERIALS CONSUMED (Rupees in lac)

Explosives 59.43 22.23

Drilling Acss. Consumed 7.70 6.65

Safety equip consumed 14.36 9.77

Prov. Against Non-Moving stock 641.82 -

Mining Tools Consumed 1.71 3.27

Belt consumed 0.94 1.27

Mach Spare Consumed 81.76 119.81

Other store Consumed 81.90 48.13

POL Consumed 536.12 372.84

Laboratory Consumed 0.97 2.00

Tyre Tube Batt consumed 11.78 11.55

MV Spares Consumed 0.25 0.33

Elec. Store Consumed 32.99 23.40

Price Diff. Account / Valuation Loss/Gain 0.06 4.47

TOTAL 1,471.78 625.72




Note-2.21 CHANGE IN INVENTORIES (Rupees in lac)

Change in Ore Stock :Opening Stock

Iron Ore 25,379.22 24,769.65

Chrome Ore 6,549.40 5,374.07

Manganese Ore 140.73 141.84

Gems Stone - -

Lime Stone - -

(A)Sub Total 32,069.35 30,285.56

Closing Stock

Iron Ore 22,693.47 25,379.22

Chrome Ore 3,622.65 6,549.40

Manganese Ore 140.73 140.73

Gems Stone - -

Lime Stone - -

(B) Sub Total 26,456.86 32,069.35

Difference(A-B) 5,612.50 (1,783.79)




Note-2.22 EMPLOYEE BENEFIT EXPENSES (Rupees in lac)

Salary & Bonus 9,384.94 9,561.08

Employee Walefare 2,755.31 2,635.76

Employee Retirement Benefit

Contribution to Provident Fund 1,008.82 957.71

Gratuity 461.00 1,323.45

VRS 2,261.16 76.65

3,730.99 2,357.81

TOTAL 15,871.24 14,554.66




Note-2.23 FINANCE COSTS (Rupees in lac)

Bank Commission 10.87 2.99

Interest & Others 1,536.46 1,298.27

Gain / (Loss) on foreign exchange Transaction 31.09 19.79

Write-Off Accounts - 0.07

TOTAL 1,578.42 1,321.12




Note-2.24 OTHER EXPENDITURE (Rupees in lac)

A. Production and Processing ExpensesOre Raising 8,980.03 9,697.59 Manchinery Hire Chgs 71.86 227.46 Energy Charges of Plant 301.90 220.26 R.M to Mach 30.38 117.58 Prospecting Expenses 20.21 50.94 Drill Exp-core/DTH 192.97 716.18 Exploration Expenses 5.91 1,348.48 Dereservation Plan - 0.72 Afforestation 1,048.91 432.02 Forest Environ Exp 5,184.59 808.15 Mining Plan Fees 30.54 16.11 Mine Closure Plan - 197.00 Consent Fees 104.05 61.22 EMI Studies Exp 0.46 - Mine Environment 10.65 6.44 Safety Week Expense 9.31 51.65 Maintenance of Lease-Hold Area 26.33 50.66 Surface Rent 142.99 1.17 Sub total 16,161.10 14,003.62 B. Administrative Expenses(i)Travelling expenses - Domestic 43.92 60.47 - Directors-Domestic 0.85 5.67 (ii) Auditor’s Remuneration - For Statutory Audit 4.49 4.49 - For Tax Audit 1.12 1.12 Fees & Tariff (Including Internal & Other Audit Fees) 104.12 60.91 Research & Development Exp - 29.22 R.M To Building 479.04 246.55 R.M To Others 107.99 57.52 Annual Maintenance Contract 21.71 42.19 Rent 36.81 40.31 Rates & Taxes 28.41 24.29 Insurance 0.43 0.96 M.V Insurance 12.55 15.18 Dead Rent 212.78 212.47 M.V.Tax 8.49 8.26 Printing & Stationary 58.38 46.92 Telephone & Postage 28.70 22.25 Periodicals & Magazines 2.09 1.93 Hire Charges 450.65 339.85 Donation 5,001.00 7,401.00 C.S.R Exp. 855.48 607.88 Rehabilitation Expen 22.13 - ERP/SAP Expenses 169.09 198.64 Guest House Expenses 16.48 16.17 Survey Expense 13.34 1.59


(Rupees in lac)

Watch & Ward 1,796.50 1,612.01 Consultancy Charges 34.25 101.86 Legal Expenses 34.32 223.60 Electricity Charges of Offices 44.04 47.11

Sub total 9,589.15 11,430.44

C. Selling & DistributionRoyalty 23,945.86 21,337.43 User Fees 43.52 20.33 OST /VAT/CST on Demand 3.75 - Analysis Charges 56.91 62.72 Sales Commission 189.41 111.28 Advertisement & Publicity 109.13 100.99 Export Expenses 40.94 (1.58)Transportation, Rly Frt, Wagon Loading, Plot Rent, etc. 735.10 734.05

Sub total 25,124.63 22,365.22

D. Other ExpensesProvision for Diminuation in Investment - 207.84 Dimuniuation C/A 6.85 5.51 Write off F/Assets - 0.04 Loss on Sale/Discard/Surveyed Assets (4.61) 1.69 Net Present Value * 7,079.74 17,418.78 Penalty & Fines 14,872.89 - Other Miscellaneous Expenses 62.34 48.21 Prior Period Adjustment 12.01 116.55

Sub Total 22,029.21 17,798.62

TOTAL ( A+B+C+D) 72,904.10 65,597.90

* NPVAs per Orderers of Hon’ble Supreme Court of India, the guidelines Govt. of India, Ministry of Environment and Forest, New Delhi and Circulars of Govt. of Odisha, Forest and Environment Department, NPV of forest land(in case of diversion proposals which are granted in principle approval after 30.10.2002) is to be realised from the user agency while diverting the forest land for non forest purposes under the Forest Conservation Act 1980( Ammended) in the range of Rs. 5.80 lac per Hect. to Rs. 9.20Lacs per Hect., depending upon the quantity, quality and density of the forest land in question. Prior Year Adjustment includes Post Capitalisation Depriciation Amounting to Rs 21.35 lac




2. NOTES ON ACCOUNTS

2.25. Commitment Value : Estimated amount of contracts remaining to be executed on capital

account and not provided for: Not Ascertained (Previous year – Not Ascertained).

2.26. Contingent Liabilities : Claims against the Company not acknowledged as debts amount to

Rs.1278242.28 lakh as detailed below (Previous year Rs.11,43,220.83 lakh) and US $

437976.00 (previous year US $ 437976.00).stThe details of Contingent Liabilities as 31 Mar 2014 are enclosed vide Annexure – I.

2.27. Contingent liability in the form of Bank Guarantees & LC is Rs.2511.43 lacs (Previous

year Rs.2186.68 lacs) as per detail given below.

Detail of Bank Guarantees and L C issued on behalf of OMC as on 31.03.2014

Note : BG was issued from State Bank of India for Rs.97.50 crores in favour of President of India,

Ministry of Coal, Government of India for Mandakini B Coal Block valid till 30.07.2013 on which

OMC liabilty (OMC’s share 25% of total Rs.97.50 crore) is Rs.24.375 crore. Out of total value,

50 % of the BG invoked by Ministry of Coal, Government of India, hence liability shown is 25%

of Rs.48,75,00,000/- towards OMC’s liability. However, consequent upon deal locaton of the

said Coal Block by Government of India and decision to wind up the M/s. Mandakini B Coal

Corporation Limited, the said Bank Guarantee was not further extended after April’2014.

2.28. Income Tax

2.28.1. After finalisation of relevant assessment years and the relevant Appeals filed with various

Forums by OMC during the Assessment years 1985-86 to 2004-05 the difference between

Assessed Tax liability and Income Tax provision made in Accounts during this period i.e.

Rs.2711.48 Lakhs have been provided in the Accounts of 2013-14 (previous year disclosed

Rs.2305.25 lakh for A.Y. 1987-88 to 1992-93) hence, no contingent liability existed during the

current year.

2.28.2. Income Tax assessment has been completed till AY 2012-13. For the Assessment Years 2005-

06 to 2012-13, against income tax demand of Rs.393971.68 lakh (previous year Rs.446297.17

Bank Guarantee IBM Andhra Bank 1087.40 762.65

Bank Guarantee Paradeep Port Trust Andhra Bank 56.28 56.28

Bank Guarantee President Of India,(See Note below) Ministry of Coal, State Bank of India 1,218.75 1218.75

Government of India

Letter of Credit East Cost Railway State Bank of India 149.00 149.00

Total 2511.43 2186.68

As on31.03.2013

As on31.03.2014Bank from

whom IssuedIn Favour ofParticulars

Amount Rs.in Lacs

Amount Rs.in Lacs

lakh A.Y.1993-94 till A.Y.2012-13), provision of Rs.374742.21 lakh (previous year

Rs.276616.33 lakhs A.Y.1993-94 till A.Y.2012-13) have been created and accordingly

contingent liability exists for Rs.19229.47 lakh (previous year Rs.169680.84 lakhs A.Y.1993-

94 till A.Y.2012-13) in view of the Company disputing the additional demand before CIT

(Appeal) / Income Tax Appellate Tribunal.

2.29. In view of the finality not being reached related to assessments, the Company was showing the

Income Tax deposits under “Loans & Advances” in Asset side and Income Tax Provisions

under Current Liability in Liability side without any adjustment up to the F.Y.2008-09.

In order to avoid inflation of the assets & liabilities in the Balance Sheet enormously, the entire

liability provision created under Self-assessment has been adjusted against the Income Tax

payments under the advance tax with effect from F.Y.2009-10 till the F.Y.2013-14.

2.30. Major components of deferred tax assets on accounts of timing differences are-

2.31. Excess payment of Sales Tax is treated as deposit shown under current asset. Short payment

of Sales Tax is treated as current liability.

2.32. Claim of Rs.9.05 lakh made in F.Y.2001-02 with S.E. Railway on account of loss of Ore in transit

has not been taken into account. Same would be accounted in the year of settlement.

2.33. CENVAT credit has not been claimed and availed against the Service Tax paid to the Ore

raising agencies on the proportion of Ore processed in the COB plant of the company at South

Kaliapani for production of Chrome Concentrates.

Fixed Assets (Book W.D.V. VS IT W.D.V) 440.43 428.02

Diminution in value of CWIP 0.00 0.00

Diminution in value of Investment 0.00 67.43

Diminution in the value of Current Asset 2.33 1.79

Provision for Bad Debt 0.00 0.00

Bad Debt Written Off 0.00 40.93

Provision for Bonus F.Y.2012-13 0.00 39.21

Provision for Bonus -12.20 -4.50

Provision for Leave Surrender -67.62 66.06

Deferred Tax Assets 362.94 557.08

As on 31.03.2013in Rs. Lacs

As on 31.03.2014in Rs. Lacs

Assets

2.34. Inventory of Ore

Particulars of production, sale, consumption and stock of ore for FY 2013-14.

2.35. Exports on FOB basis :

Receiptof Left

outOre of

the Agency

fromGroundBalance

Ores

IronOre

ChromeOre *

ManganeseOre

LimeStone

GemStone

ChromeConcent

rates

Period UnitOpening

StockSales

Consumption

ClosingStock

Excess /(Shortage)Production

As on In MT 6828522 2438504 0 3191483 - 6019671 -55,87231.03.14

As on In MT 6873932 2469926 142846 2710304 - 6828522 52,12231.03.13

As on In MT 392131 637039 709261 48279 271371 -25931.03.14

As on In MT 256979 680490 476414 59426 392131 -9,49831.03.13

As on In MT 11605 - - - 11598 -7.0031.03.14

As on In MT 11690 - - - 11605 -85.0031.03.13

As on In MT 146 - - - 146 -31.03.14

As on In MT 146 - - - 146 -31.03.13

As on In Grams - - - - - -31.03.14

As on In Grams - - - - - -31.03.13

Chrome Ore includes Chrome Concentrates as per detail given below.

As on In MT 85001 124558 124181 48279 37818 71931.03.14

As on In MT 84641 143108 77147 59426 85001 -6,17531.03.13

Notes *

Qty. (MT) Amount (Rs.in lakh) Qty.(MT) Amount (Rs.in lakh)

Iron Ore Nil Nil Nil Nil

Chrome Ore Nil Nil Nil Nil

Current year (FY 2013-14) Previous year (FY 2012-13)

2.36.1. The quantity of ore not accounted in terms of Significant Accounting Policies no.1.8.1 above relating to contractors raising and not handed over to OMC at six Iron Ore Mines and three Manganese Ore Mines as on 31.03.2014 was 237066 MT and 8208 MT respectively (Previous year six Iron ore mines and three Manganese ore mines as on 31st March, 2013 was 567693 MT and 8208 MT respectively. Such Ore will be accounted for in the year in which that Ore is actually sold or transported to the plot / crusher site and delivery is accepted from the contractor.

2.36.2. Quantities of very old Ore included in Ore Stock as on year ending on 31.03.2014 are :-

a) 3127 MT (previous year 3127 MT) – Iron ore,

b) 477 MT (previous year 477 MT) – Manganese ore,

c) 823 MT (previous year 823 MT) – Chrome ore

d) 146 MT (previous year 146 MT) - Limestone stock of mines not operating long back .

Such old stocks have been considered at their book value i.e. valued earlier @ Re 1/ MT.

2.37. In case of Chrome Mines, Ore produced by Departmental Workers are booked on volumetric conversion basis without weighment. Where Excavation contract has been awarded the agencies are paid for Ore & OB excavation on volumetric measurement. The Ore produced in those mines are booked in MT on volumetric conversion basis. During dispatch, Ore is weighed and necessary reconciliation in Ore account is made to determine Ore Stock quantity.

2.38. Out of 60,19,671 MT (Previous year 68,28,522 MT) of Iron Ore stock, physical verification is carried out for 15,27,364 MT (Previous year 22,45,476 MT ) which covers 25.37% (Previous year 32.88%) of stock, others being very huge heaps not in a measurable state. Similarly out of 2,71,371MT (Previous year 3,92,131MT) of Chrome Ore stock, physical verification is carried out for 2,70,548 MT (Previous year 3,91,308 MT) which covers 99.70% (Previous year 99.69%) of stock.

2.39. Inventory of Store :

i. Provision for Diminution in the value of Current Assets is created for Rs.6.85 lacs (previous year Rs.5.51 lacs) being the discrepancies noticed in the physical verification process for the financial year 2013-14 but the quantity remains unadjusted for want of further clarification / justification before obtaining due approval for write off.

ii. Any Store items not issued for 10 years is considered as non moving and 100% value of such items are provided in the Accounts with effect from Financial Year 2013-14 based on Approved Purchase Manual. The financial impact of the same in current year is Rs.641.82 lacs.

2.40. Amortisation of Lease Hold Land

i. With effect from the financial year 2012-13 Rs.464.53 lakhs Lease Hold Land was amortised for the expired life of the Lease Hold Land in accordance with Accounting Standard 19 issued by ICAI. The financial effect on amortization for the said financial year is Rs.48.25 lakhs including prior period effect is Rs.41.54 lakhs but booked in previous year due to change in Accounting Policy with effect from financial year 2012-13.

ii. The Amortisation of Lease Hold Land, during the current F.Y.2013-14 is Rs.4.82 lacs.

2.41. During F.Y.2012-13, consequent upon approval of Board of Directors, Write Off of the Fixed

Assets of intangible Asset under Rights & Claim amounting to Rs.3750/- , Current Assets of

Rs.7256.94 and Bad Debts of Rs.126.14 lacks was done.

2.42. During F.Y.2013-14, consequent upon approval of Board of Directors, Write Back of Liability of

Rs.9110.16 lacs was done for which provision was created in previous years towards thPeripheral Development & Corporate Social Responsibility and Pay Revision on the basis of 6

pay commission recommendations.

2.43. During F.Y.2013-14, consequent upon approval of Board of Directors, Rs.48.23 lacs written Off from CWIP on account of infructuous Railway Siding Projects at Barbil and Nayagarh for which provision was created in the F.Y.2011-12.

2.44 During F.Y.2013-14, consequent upon approval of Board of Directors, Rs.308.73 lacs (current year share Rs.48.05 lacs) was booked under Interest Income by debiting Accrued Interest due to change of policy to recognise interest on employee advances from cash basis to accrual basis.

2.45. Sundry dues realizable of Rs.68.92 lakh (previous year Rs. 62.29 lakh) includes Rs.10.70 lakh (previous year Rs. 10.70 lakh) being dues realizable from Government/Sales Tax Authorities and Agencies.

2.46. The balances of Loans and Advances (excluding those which have been finalized during the year and realised subsequent to the close of accounting year), in absence of confirmation, are shown as appearing in the accounts. Dues / claims receivable from Government department and other agencies (on whom various bills and claims raised by the Company are pending) are subject to negotiation / determination and litigation.

2.47. The Company is in the process of reconciling / confirming the following accounts:

2.47.1. Sub-ledger accounts with General Ledger with reference to all Current Assets and Loans & Advances & current liabilities & provisions.

2.47.2. Dues to gratuity trust.

2.47.3. Provident Fund account of the company with that of PF Trust and bifurcation of employer and employees share both with reference to PF and EPF.

Adjustment arising out of such reconciliation which is currently unascertainable will be effected in the books of account in the year of such confirmation/reconciliation.

2.48. Interest on fixed deposit and others of Rs.47435.70 lacs (previous year of Rs. 52,484.11 lacs) comprises of :

a) Interest on fixed deposit of Rs. 40636.72 lacs (previous year of Rs. 48,148.52 lacs)

b) Interest on staff advance and others of Rs.6798.98 Lacs (previous year of Rs.4,335.59 lacs). This includes interest on advance to staff for Rs.428.26 lacs (previous year Rs.112.46 lacs) and Interest on Others Rs.6370.72 lacs (previous year Rs.4,223.13 Lacs).

c) Interest on Others at (b) above of Rs.6370.72lacs (previous year Rs.4,223.13 Lacs) includes interest charged to buyers of ore to whom credit has been extended for Rs.32.95 lacs (previous year of Rs.70.24 Lacs), Interest Received from Income Tax Rs.1200.72 (previous year Rs.2,428.41Lacs), Interest received from GRIDCO Rs.4954.44 lacs (previous year Rs.1613.36 lacs), and Interest Others Rs.182.62 lacs (previous year of Rs. 111.12 lacs).

2.49. M/s. Utkal Alumina International Ltd. paid Rs. 300.00 lacs during the F.Y.2013-14 (Previous year Rs.300.00 lacs) towards redemption value of Debenture to compensate non allotment of preference shares. This amount has been treated as revenue receipt and credited to P/L Account under the head Other Income.

2.50. Details of “Prior Year Adjustments” Rs.12.01 lakh Debit (Previous year Rs.116.55 lakh

Debit) balances are as below:

2.51. House Rent Paid amounting to Rs.10.26 lakh (Previous Year Rs.12.91 lakh) is included under

Rent, Rates & Taxes.

2.52 Employee Benefits (disclosure as per AS – 15 issued under the Act) A. Other long term employee benefits (unfunded, as estimated by the Management)

Leave Encashment :

B. Post employment benefits - Gratuity (Funded, as per Actuarial Valuation)i. The amount recognised in Balance Sheet for post employment benefits :

Consent Fees 8.50 6.30

Slope Monitoring Study 10.24 -

Reversal of Capital WIP 21.35 -

Depreciation - 133.63

TOTAL DEBIT 40.09 139.93

Credit

Excess GR for Capital WIP 9.80 -

Wrong posting in with held account 5.11 -

Recovery Against Hospital Expenses 0.65 -

Recovery from Contractor for IME Test 0.42 -

CWIP wrongly booked in Consultancy Fees 10.11 -

OB Cutting 1.99 -

Ore Raising - 21.98

R&M to Electrical - 0.11

Watch & Ward - 1.29

TOTAL CREDIT 28.08 23.38

BALANCE(NET) (CREDIT)/DEBIT 12.01 116.55

Current Year(2012-13)

Amount (Rs. lacs)

Current Year(2013-14)

Amount (Rs. lacs)Account Head

Particulars Financial Year 2013-14 Financial Year 2012-13

Provision held on date of reporting 4108.59 4328.37

Amount expensed in Statement of Profit & Loss 188.98 493.17

For the Financial Year 2013 -14

- Gratuity Fund

Present Value of obligation at the end of the year 1074686907.00

Fair Value of Plan Asset at the end of the year 1087151508.00

Fund Status at end of the year {Net Assets(-) / Net liability} (12464601.00)

ii. Reconciliation of opening and closing balances of Defined Benefits obligations :

Gratuity Fund

Present Value of obligation at the beginning of the year 928854503.00

Interest Cost 74308360.00

Current Service Cost 3954584.00

Benefits Paid (126572235.00)

Actuarial gains(-)/loss on obligations 194141695.00

Present Value of obligation at the end of the year 1074686907.00

iii. Reconciliation of opening and closing balances of fair value plan assets:

Gratuity Fund

Fair Value of Plan Asset at Beginning of the year 981844862.00

Expected Return on Plan Assets 94703306.00

Contributions 137175575.00

Benefits Paid (126572235.00)

Actuarial gain/loss(-) on Plan Assets 0.00

Fair Value of Plan Asset at the end of the year 1087151508.00

iv. Expenses Recognised in Statement of Profit / Loss

Gratuity Fund

Current Service Cost 3954584.00

Interest Cost 74308360.00

Expected Return on Plan Assets (94703306.00)

Actuarial gain(-)/loss 194141695.00

Expense Recognized in Statement of Profit/Loss Account 177701333.00

v. investment of Superannuation Funds

Investment Composition

Central Govt. 25.39%

State Govt. 20.12%

Others 54.49%

Total 100.00%

Assumptions Gratuity Fund

Mortality Table (LIC) 1994-96 (Ult)

Superannuation Age 58 Years

Discount Rate 8%

Inflation Rate 10%

Method applied Projected Unit Credit Method

2.53. Income in foreign currency

Current Year (FY 2013-14) Previous Year (FY 2012-13)

Amount (Rs. in lacs) Amount (Rs. in lacs)

NIL Nil

2.54. Expenditure incurred in foreign currency

Current Year (FY 2013-14) Previous Year (FY 2012-13)

Amount (Rs. in lacs) Amount (Rs. in lacs)

Fees and Fines Nil 1.87

2.55. Dividend

2.55.1 Proposed Dividend of Rs.26883.01 lacs for the F.Y.2012-13 being 30% of Profit After Tax as

per directive of Government of Odisha and Dividend Tax Rs.4568.77 lacs has been provided

for the F.Y.2012-13. In view of this Rs.26883.01 lacs towards proposed dividend, Rs.4568.77

lacs towards dividend tax & Rs.26883.01 lacs transfer to general reserve have been

appropriated from Statement of Profit & Loss F.Y.2012-13.

2.55.2 During this F.Y. 2013-14, Rs. 40000.00 lacs & Rs.6798.00 lacs was paid towards dividend and

Dividend Tax respectively for the F.Y.2012-13 out of provision of Rs.26883.01 lacs and

Rs.4568.77 lacs created as above. In view of this, balance Rs.13116.99 lacs towards dividend

and Rs.2229.23 lacs towards dividend tax was provided in the books of account for the

F.Y.2013-14. Accordingly Rs.13116.99 lacs towards proposed dividend, Rs.2229.23 lacs

towards dividend tax & Rs.13116.99 lacs transfer to general reserve have been appropriated

from Statement of Profit & Loss F.Y.2013-14.

2.56. Related Party transaction: No transaction was made by Corporation during this financial

year with the joint ventures where OMC holds more than 20% shares. Payment of

remuneration to Sri Saswat Mishra, IAS, Chairman cum Managing Director was 13.73 lakh

(previous year Rs 11.95 lakh) during the year.

2.57. An amount of Rs.300/- is payable to M/S. Sarada Engineering Co. an SSI unit as defined under

the MSME Act, 2006 outstanding for more than 30.days.

2.58. Corporation has been issued equity shares in the following joint venture companies at

free of cost :-

vi. Actuarial Assumptions

NAME OF THE JOINT VENTURE COMPANY No. of Shares issued Face value of shareto O.M.C.

East Coast Bauxite Mining Co. Pvt. Ltd 2,600 (previous year 2,600) Rs. 10/- each

Kalinga Coal Mining Pvt. Ltd 17,16,000 (previous year 17,16,000) Rs.100/- each

South West Orissa Bauxite Mining Pvt. Ltd 13,000 (previous year 13,000) Rs.10/- each

Lanjigarh Schedule Area Development 12,500 (previous year 12500) Rs.10/- eachFund (a Company created u/s 25 of the Indian Companies Act,1956

2.59. Financial Reporting of Interests in Joint Ventures where holding is more than 20% of the

JV as per latest available financial statements/information.

Mandakini B Coal Co. Ltd

( B a s e d o n F . Y . 2 0 1 1 - 1 2 ) Rs.831.37 Lacks c o n s i s t s o f 8,31,372 equity shares of Rs.100/- each. (Previous year Rs.800.00 Lacks consists of 8,00,000 equity shares of Rs.100/- each.)

(Based on F.Y.2011-12) 25%

(Based on F.Y.2013-14) 2,07,843 Equity shares of Rs.100/- each fully paid. (Previous year 2,07,843 Equity shares of Rs.100/- each fully paid).

(Based on F.Y.2012-13) Provision made for Rs.207.84 lacks for diminution in the value of Investment in the F.Y.2012-13.(Based on F.Y.2011-12) Share Capital Rs.831.37. Current Liabilities Rs.2.61 consists of Other Current Liabilities Rs.2.49 & Short Term Provisions Rs.0.12. Non Current assets of Rs.178.51 consists of Tangible Assets Rs.9.17, CWIP Rs.0.75, Long Term Loans & Advances Rs.3.66 and Other Non Current Assets Rs.164.93 (Preliminary Exp Rs.61.27 & Pre Operative Exp Rs.103.66). Current Assets of Rs.655.47 consists of Cash & Cash Equivalents Rs.640.86, Short Term Loans & Advances Rs.0.05 & Other Current Assets Rs.14.56.

East Coast Bauxite Mining Co. Pvt. Ltd

Kalinga Coal Mining Pvt. Ltd.

(Based on F.Y.2013-14) Rs.1.00 lacs divided into 10,000 equity shares of Rs.10/- each

( B a s e d o n F. Y. 2 0 1 1 - 1 2 ) Rs.6600.00 lacs c o n s i s t s o f 66,00,000 equity shares of Rs.100/- each. ( Previous Year Rs.3000.00 lacs divided in to 30,00,000 equity shares of Rs.100/- each.)

(Based on F.Y.2013-14)

26%

(Based on F.Y.2011-12) 26%

(Based on F.Y.2013-14) 2,600 Equity Shares of Rs.10/- each fully paid a t f r e e o f c o s t . (Previous year 2,600 E q u i t y S h a r e s o f Rs.10/- each fully paid at free of cost.)

(Based on F.Y.2013-14) 1 7 , 1 6 , 0 0 0 E q u i t y shares of Rs.100/- each fully paid at free of cost. ( P r e v i o u s y e a r 1 7 , 1 6 , 0 0 0 E q u i t y shares of Rs.100/- each fully paid at free of cost.

(Based on F.Y.2013-14) Share Capital Rs.1.00, Reserve & Surplus (Debit Balance in P&L A/C) (-) Rs.2.14, Non Current Liabilities (Other Long Term Liabilities) Rs.1.55, & Current Liabilities Rs.0.25. Fixed Asset (Intangible Asset under Development) Rs.0.26, Current Asset Cash & Cash Equivalents Rs.0.41.

(Based on F.Y.2011-12) Share Holders Fund of Rs.6573.67 consists of Share Cap Rs.6600.00, Reserve & Surplus (-) Rs.26.33. Non Current Liabilities of Rs.3689.74 consists of Long Term Borrowing Rs.3686.01 & Long Term Provisions Rs.3.73. Current Liabilities of Rs.19.76 consists of Other Current Liabilities Rs.17.43 & Short Term Provisions Rs.2.33. Non Current Assets of Rs.10266.85 consist of Tangible Assets Rs.5622.61, CWIP Rs.4585.56 & Long Term Loans & Advances Rs.58.68. Current

ASSETS & LIABILITIES IN Rs.LAKHS

SUBSCRIPTION OF O.M.C. IN

JOINT VENTURE

% AGE OF SHARE HOLDING OF

O.M.C. IN JOINT VENTURE

PAIDUP CAPITAL OF THE JOINT

VENTURE COMPANY

NAME OF THE JOINT VENTURE COMPANY

Assets of Rs.16.32 consists of Cash & Cash Equivalents Rs.16.07 & Short Term loans and advances Rs.0.25.

South West Orissa Bauxite Mining Pvt. Ltd

( B a s e d o n F. Y. 2 0 1 1 - 1 2 ) R s . 5 . 0 0 l a c s c o n s i s t s o f 50 ,000 equ i t y shares of Rs.10/- each. ( Previous Year Rs.5.00 lacs c o n s i s t s o f 50 ,000 equ i t y shares of Rs.10/- each.)

Based on Financial Year 2011-12, 26%

(Based on F.Y.2013-14) 13,000 Equity shares of Rs.10/- each fully paid a t f r e e o f C o s t . (Previous year 13,000 Equity shares of Rs.10/- each fully paid at free of Cost)

(Based on F.Y.2011-12) Total liability of Rs 4.99 includes Share Capital Rs 5.00, Reserve & surplus (-)Rs 1.46 & other current liabilities Rs 1.45. Total assets of Rs 4.99 includes Cash & Bank Balances 4.99 .

Odisha Thermal Power Corporation Ltd.

( B a s e d o n F. Y. 2 0 1 2 - 1 3 ) Rs.2388.94 lacs c o n s i s t s o f 2,38,894 equity s h a r e s o f Rs.1000/- each. ( Prev ious Year Rs.1388.94 lacs c o n s i s t s o f 1,38,894 equity s h a r e s o f Rs.1000/- each.)


50%


1 0 , 3 9 , 4 4 7 E q u i t y shares of Rs.1000/- e a c h f u l l y p a i d . ( P r e v i o u s Y e a r 1,19,447 Equity shares of Rs.1000/- each fully paid).

(Based on F.Y.2012-13) Share Holders Fund of Rs.2388.94 is Share Capital. Non Current Liabilities Nil. Current Liabilities 6.71 consists of Other Current Liabilities Rs.0.37 & Short Term Provision Rs.6.34. Non Current Assets of Rs.1196.04 consists of Fixed Asset Rs.461.87 (Tangible Asset Rs.17.55 & CWIP Rs.444.32), Long Term Loans & Advances Rs.121.74, and Other N o n C u r r e n t A s s e t s R s . 6 1 2 . 4 4 (Preliminary Exp Rs.200.85 & Pre operative Exp Rs.411.59). Current Assets of Rs.1199.60 consists of Cash & Cash Equivalents Rs.1126.38, Loans & Advances Rs.31.35 & Other Current Assets Rs.41.87.

Rio Tinto Orissa Mining Pvt.. Ltd.

( B a s e d o n F. Y. 2 0 1 1 - 1 2 ) Rs.465.03 lacs c o n s i s t s o f 465037 equi ty shares of Rs.100/- each.


49%

98,000 Equity shares of Rs.100/- each fully paid. Also Rs.1.30 Cr as Share deposit money pending allotment in R I O T I N TO O r i s s a M i n i n g P v t . L t d . (Previous Year 98,000 E q u i t y s h a r e s o f Rs.100/- each fully paid. Also Rs.1.30 Cr as Share deposit money pending allotment in R I O T I N TO O r i s s a Mining Pvt. Ltd.)

Provision made for Rs.228.00 for diminution in the value of investment in the F.Y.2010-11.

Based on F.Y 2011-12 total liabilities Rs. 91.78 includes share capital Rs. 465.30, Reserve & surplus (-) Rs. 1925.66, share application money pending allotment Rs. 1487.82, Long tem provisions Rs. 9.82, other current liability Rs 54.22 and short term provision Rs.0.28. Total Assets Rs. 91.78 includes Fixed Assets Rs.0.59, Long term loans & advances Rs. 14.32, Cash & bank balances Rs. 76.05 , short term loans & advances Rs 0.68 and other current assets Rs.0.14.



JOINT VENTURE




VENTURE COMPANY


Lanjigarh Schedule Area Development Fund (a Company created u/s 25 of the Indian Companies Act, 1956

( B a s e d o n F. Y. 2 0 1 1 - 1 2 ) R s . 5 . 0 0 l a c s c o n s i s t s o f 50 ,000 equ i t y shares of Rs.10/- each. ( Previous Year Rs.5.00 lacs c o n s i s t s o f 50 ,000 equ i t y shares of Rs.10/- each.).

(Based on F.Y.2011-12) 25%

(Based on F.Y.2013-14) 12,500 Equity shares of Rs.10/- each fully paid a t f r e e o f C o s t . (Previous Year 12,500 Equity shares of Rs.10/- each fully paid at free of Cost).

(Based on F.Y.2011-12) Total Liabilities of Rs 478.29 includes share capital Rs.5.00 , Capital Reserve Rs.3346.43 eared marked fund for Reserve & Surplus Rs.1085.05, other current liabilities Rs 39.54 and short term provision Rs.2.27. Total Assets of Rs.4478.29 includes long term Loans & Advances Rs.0.05, cash & cash equivalents Rs.1290.37, short term loans & advances Rs.146.82 and other current assets Rs.3041.05.

Keonjhar

Infrastructure

Development Co

Ltd.

( B a s e d o n F. Y. 2 0 1 1 - 1 2 ) Rs.2960.98 lacs consists of 64,800 equity shares of Rs.10/- each and 2,95,45,000 6% C u m u l a t i v e P r e f e r e n c e shares of Rs.10/- each .

(Based on F.Y.2011-12) 11.11% for Equity Shares & 15.23% for Preference Shares.


7,200 Equity Shares of Rs.10/- each fully paid up (Mortgaged with SBI b y K I D C O L t d . ) . 45,00,000 Preference Shares of Rs.10/- fully paid up. (Previous Year 7,200 Equity Shares of Rs.10/- each fully paid up (Mortgaged with SBI b y K I D C O L t d . ) . 45,00,000 Preference Shares of Rs.10/- fully paid up.)

(Based on F.Y.2011-12) Equity & Liabilities of Rs.3466.76 consists of Share Capital Rs.2960.98, Reserve & Surplus Rs.15.97 & Application Money for Preference Shares Rs.489.81. Long Term Borrowing under Non Current Liabilities Rs.4300.00. Current Liabilities of Rs.3078.44 consists of Short Term Borrowing Rs.1246.55, Trade Payable Rs.178.41, Other Current Liabilities Rs.1599.82 and Short Term Provisions Rs.53.66. Fixed Assets of Rs.10562.47 consists of Tangible Assets Rs.13.14 & CWIP Rs.10549.33. Current Assets of Rs.282.73 consists of Cash & Cash Equivalent Rs.7.73 and Short Term Loans and Advances Rs.275.00.

Nilachal Ispat Nigam Limited

( B a s e d o n F. Y. 2 0 1 2 - 1 3 ) Rs.60265.13Lacs (previous year R s . 6 0 2 6 5 . 1 3 Lacs) consists of 5 7 , 4 3 , 6 8 , 1 4 3 (previous year 5 7 , 4 3 , 6 8 , 1 4 3 ) Equity Shares of R s . 1 0 / - e a c h Rs.57,436.81 lacs.

1 , 3 8 , 5 2 , 0 0 0 (previous year 1 , 3 8 , 5 2 , 0 0 0 ) Equity Shares of Rs.10/- each are allotted as partly paid-up of Rs.5/- Rs.692.60 Lacs. 2 , 1 3 , 5 7 , 1 7 2 (previous year 2 , 1 3 , 5 7 , 1 7 2 ) 0.01% Convertible P r e f e r e n c e Shares of Rs.10/- each Rs.2,135.72 Lacs

(Based on F.Y.2012-13) 12.32 % (Previous Year 12.32%)

(Based on F.Y.2013-14) 7,15,98,530 Equity Shares of Rs.10/- each fully paid up. (Previous Ye a r 7 , 1 5 , 9 8 , 5 3 0 E q u i t y S h a r e s o f Rs.10/- each fully paid up.)

(Based on F.Y.2012-13) Total Assets & Liabilities are Rs.3,47,561.35. Share Holders Fund of Rs.91,852.95 consists of Share Capital Rs. 60,265.13 & Reserve Surplus Rs.31,587.82. Non Current Liabilities Rs.1,66,302.99 consists of Long-term borrowings Rs.1,43,290.30, Deferred tax liability (Net) Rs.6,141.26 & Other long term liabilities Rs.14,850.49, Long term provisions Rs.2020.94. Current Liabilities Rs.89,405.41 consists of Short-term borrowings Rs.34,068.48, Trade payables Rs.45,899.09, Other current liabilities Rs.9,357.74 & Short-term provisions Rs.80.10. Non-Current Assets of Rs. 2,92,438.96 consists of Tangible Assets Rs.1,26,583.39, Capital Work-in-Progress Rs.1,57,432.92 & Long-term loans and advances Rs.8,368.96, Other non current assets Rs.53.69. Current Assets of Rs.55,122.39 consists of Inventor ies Rs.47,924.79, Trade Receivables Rs.715.33, Cash and cash equivalents Rs. 2,922.01, Short-term loans and advances Rs.3,473.37 & Other current Assets Rs.86.89.

ASSETS & LIABILITIES Rs. IN LAKHS


JOINT VENTURE




VENTURE COMPANY


Nuagaon Coal Company Limited

(Based on F.Y. st2011-12 1 year)

R s . 6 . 0 0 l a c s consists of 6,000 equity shares of Rs.100/- each

(Based on F.Y.2011-12 st1 year) 50%

(Based on F.Y.2013-14) 3,000 Equity Shares of Rs.100/- each fully paid up.

st(Based on F.Y.2011-12 1 year) Equity & Liabilities of Rs.316.95 consists of Share Capital Rs.6.00, Reserve & Surplus Rs.2.27, Share Application Money Pending Allotment Rs.194.00 lacks, Non Current Liabilities Rs.nil & Current Liabilities Rs.114.68. Assets of Rs.316.95 consists of Fixed Asset Rs.nil, Non Current Asset Rs.nil & Current Asset Rs.316.95.

Haridaspur Paradip Railway Company Limited

Equity Commitment Value as on 31.03.2014 Rs.510 cr

OMC contribution towards Equity Rs.74.70 cr being 14.65% of Rs.510 cr

Share Certificates are not issued / received till 31.03.2014.

Rs.1559 cr is the estimated project cost. Loan agreement for a term loan up to of Rs.1092 cr signed with consortium of 9 PSU Banks.

Anugul Sukinda Railway Limited

Equity Commitment Value as on 31.03.2014 Rs.470.40 cr

OMC contribution towards Equity Rs.63 cr being 13.39% of Rs.470.40 cr

Share Certificates are not received till 31.03.2014.

Rs.1270.70 cr is the estimated project cost excluding IDC.



JOINT VENTURE




VENTURE COMPANY


2.60. None of the Mines is permanently closed. Only in some of the Mines, the mining operation is

temporarily suspended due to want of statutory clearances. Meanwhile, different assets of the

said mines are also being properly maintained, Impairment of assets in respect of such mines

is not required as per AS 28 as the suspension is temporary in nature.2.61. 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 is 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.

As per directive of Honorable Supreme Court, in 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. Accordingly 7.34 lac MT (Previous year 4.02 lac MT) of Iron Ore were sold to

various agencies and the sale value of Rs.15,846.65 lacs (Previous year Rs.6,108.79 lacs) has

been included in our turnover in this year and deposited Sales Tax & 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.10933.55 lacs

(Previous year Rs.2346.58 lacs) were deposited in Bank and treated in the account as

receivable under Current Asset as matter is subjudice.

2.62. The amount of Rs.14872.88 lacs paid by the company during the year constitutes Rs.526.54

lacs paid by the Company on account of Penal Compensatory Afforastation Scheme for

Daitari, Rs.14345.18 lacs paid by the Company on account of Penal NPV for Daitari and

Rs.1.16 lacs for Penal Electricity charges at J.K. Road Region.

2.65. Previous year figures have been regrouped / rearranged wherever necessary to make them

comparable with current year's figures.

EPS Calculation F.Y.2013-14 F.Y.2012-13

The Numerator for EPS after prior period adjustment / Pofit After Tax (PAT) Rs. In Lacs

In the denominator 31,45,480 numbers of Equity 31,45,480 31,45,480Shares @Rs.100/- per share for Rs.31,45,48,000/-

EPS after prior period items 2758.93 2848.85

Profit After Tax (PAT) Rs. In lacs 86,781.53 89,610.05

Add : Prior Period items Rs. In lacs 12.01 116.55

The Numerator for EPS before prior period adjustment 86,793.54 89,726.60

In the denominator 31,45,480 numbers of Equity

Shares @Rs.100/- per share for Rs.31,45,48,000/- 31,45,480 31,45,480

EPS before prior period items 2759.31 2852.56

86,781.53 89,610.05


Sd/-Chairman-Cum-

Managing Director

Sd/-General Manager

(Finance)





Sd/-Director

2.63. Segmental Reporting

2.63.1. The company has considered Iron, Chrome and Manganese Ore as primary

segment. Chrome ore includes chrome concentrate.

2.63.2. Domestic Sales And Export Sales are the two geographical segments. Since,all

production and other facilities are located in India, segment assets except export

debtors are shown under domestic segment.

2.63.3. Revenue and expenses have been identified to segments on the basis of their

relationship to the operating activities. Revenue, expenses, assets and liabilities

which relate to the enterprise as a whole and are not allocable on a reasonable

basis, have been included under "Unallocated" segment.

The details of Segmental Reporting for the Financial Year 2013-14 is enclosed vide Annexure II.

2.64. Earnings Per Share

Earnings per share before prior period adjustment and after tax is Rs.2759.31 (Previous year

Rs.2852.56) and earnings per share after prior period adjustment and tax is Rs.2758.93

(Previous year Rs.2848.85). The EPS has been determined by dividing such profit by the

number of equity shares.

Disclosure of Numerator, Denominator, Calculation and reconciliation with profit or loss for the

period:

18.00 18.00

2.26 Contingent Liability 2013-14Rs. In Lacs

2012-13Rs. In Lacs

2.26.1 Legal

i Case is filed for balance cost of land (additional) sold to OMC by Sri D.P. Sahoo pending before Court of Civil Judge(SD) Champua.

7.06 7.06

ii Claim towards supply of material filed by Sri S.K. Panda towards supply of furniture & renovation work at erstwhile OMC Alloys pending before Court of Law. Counter has been filed & matter has not so far disposed of.

2.82 2.82

iii Sales of Chrome Ore & Concentrate through e-auction before disposal of writ petition ( C ) no.17088/2012 by Hon’ble High Court. As per the order of the Honorable High Court, the billing is done at the highest bidding rate against the individual bidding rate for different customers through e-auction policy. (Rs.1885.00 lacks towards differential cost of material and Rs.95.37 lacks towards VAT/CST & ET totaling to Rs.1980.37 lacks) OMC is appealing the auction rate and the matter is under sub-Judice.

1,980.37 1,980.37

iv M/S Indiana Engg. Works (Bombay) Pvt Ltd has filed case no 1/06 before Member Secretary, Industries Facilitation Council, Mumbai Claiming against 75 TPH Crusher installed by them at BPJ Mine. However, in the mean time, the IFC, Mumbai has been defunct and a new council has been formed & the case will be transferred to new council. Currently, the council vide its letter dt.30.01.2014 has terminated the Conciliation proceeding and has initiated the Arbitration proceeding under Section 18 (3) of MSMED Act,2006 and the same Council acts as the Arbitrator Tribunal.

537.01 537.01

v M.s. FGM have claimed an amount of Rs.437.74 lakh and further interest @ 15% till the date of payment for the work of raising, calibration and transportation of CLO/Fines at Daitari Iron Ore Project vide ARBP no.3/2012. The matter is pending before the Arbitrator, Sri Himadri Mohapatra.

437.74 437.74

vi During 94-95 MMTC collected Advance of US$ 547470.00 from M/s Sinexim Co. for export of Chrome Ore of OMC & passed on the advance after deduction of 1% commission to OMC. The export could not be materialised till date and OMC has been providing for Foreign Exchange Fluctuation Loss (Net) in the Accounts to compensate the enhanced rupee value of the advance. The arbitration case between MMTC and M/s Sinexim Co. has been finalized during 2002-03 and MMTC has to refund along with 12% interest to M/s Sinexim Co. In turn MMTC has filed an arbitration case – Arb(P) 162/05 against OMC in Delhi High Court to realize the amount . The case is pending.

$437976 $437976

Sub Total 2965.00 2965.00

i Demands raised by Central Excise and Customs Department alleging manufacturer of iron ore concentrate at Barbil for Rs.18.00 Lakh (previous year Rs.18.00 lakhs) was rejected by Customs Excise & service Tax Appellate Tribunal, Eastern Bench, Kolkata. The Department has appealed in Supreme Court against the order of Tribunal.

2.26.2 Central Excise & Service Tax

ANNEXURE-I

2.26 Contingent Liabilty 2013-14Rs. In Lacs

2012-13Rs. In Lacs

ii Also The Central Excise authorities have issued various show cause notices for imposition of excise duty of Rs.43343.59 lakh ( Previous year Rs 40214.07 lakh) for Ore handled at Daitari through Washing Plant for the period from July’96 to Sep’12 assuming that iron ore concentrate are produced at Daitary from time to time but management has countered / replied to those notices. Department has so far not adjudicated on the management reply.

43343.60 40214.07

iii Asst. Commissioner Central Excise, Custom & Service Tax , Balasore has demanded excise duty of Rs.102.06 lakhs ( Previous year Rs 102.06 lakhs) along with interest on shortage of 25015 MT of chrome concentrate during 1996-97 to 2003-04 – a loss during transport/handling/storage of Ore while transporting from COB Plant to Paradeep. Representation of Corporation to Central Board of Excise & Customs for waiver of duty on such loss was turned down. Corporation has appealed Hon’ble Orissa High Court vide case no WP©No 3098/2008. for relief of duty. The writ petition is pending before Hon’ble Odisha High Court for waival of transit loss of Ore.Stay has been granted against payment of Rs 56 lakh(previous year 40 lakh) which has been treated as deposit in the accounts. The case has not been disposed off. A further demand of Rs.174.11 lakhs (previous year Rs.174.11 laks) has been demanded by Asst. Commissioner Central Excise Customs and Service Tax, Balasore Division for the period 2005-06 to 2009-10 for a quantity of 13303.305MT.

102.06

174.11

102.06

174.11

iv Appeals are pending before the Central Excise Customs and Service Tax, Bhubaneswar against their Demand cum Show Cause Notice for a total demand of Rs.27.27 Lakhs (previous year Rs.27.27 lakhs) towards Service Tax & interest on alleged storage charges for the period 2004-05 to 2010-11.

27.27 27.27

v Demand Cum Show Cause Notice received from Commissionerate of Central Excise, Customs & Service Tax, Bhubaneswar-II, C.R.Building, Rajswa Vihar, Bhubaneswar vide C No. V (26) 15/ Adjn / B-II /62/ 2013 - 9238A dated 5.6.2013 stating that Gandhamardan Iron Ore Project, appeared to have contravened the provisions of Rules- 4, 6, 8, 9, 10, 11 & 12 of Central Excise Rules, 2002 in as much as they have manufactured/produced iron ore concentrate falling under Chapter heading No.26.01 of the Schedule to the Central Excise Tariff Act, 1985 without taking Central Excise Registration and without observing other Central Excise formalities and have removed a quantity of 85,34,070.275 MT of iron ore concentrates valued Rs.2188,09,82,095/- during the period from 2008-09 (May,2008) to 2012-13 from their factory without payment of Central Excise duty amounting to Rs.247,26,76,959/- (Rupees Two Hundred Forty Seven Crore Twenty Six Lakh Seventy Six thousands Nine Hundred Fifty Nine) only including Education Cess and Secondary and Higher Education Cess by way of suppression of facts and contravention of the provisions of Central Excise Rules, 2002 with an intent to evade payment of duty.

24945.63 24726.77

Sub Total 68610.67 65262.28

2.26 Contingent Liabilty 2013-14Rs. In Lacs

2012-13Rs. In Lacs

2.26.3 Commercial Tax

I An Appeal is pending before Odisha Sales Tax Tribunal for the 2002-03 (Sale to NINL) under OST, Act. The disallowance of exemption has resulted in a demand of Rs.29.96 Lakhs out of which an amount of Rs.20.00 lakhs has been deposited as demanded through stay petition.

29.96 29.96

ii An Appeal is pending before Odisha Sales Tax Tribunal for the 1996-97 (export sale through MMTC & Inter-state sale) under CST, Act demanding an amount of Rs.50.89 lakhs.

50.89 50.89

iii Orders for dispute on utilization of Way Bills for the period 2005-06 Rs.12.59 lakhs (Previous year Rs.12.59 Lakhs), April’2006 to June’2006 Rs.46.57 lakhs (previous year Rs.46.57 lakhs) & 01.07.2006 to 31.03.2007 Rs.192.08 lakhs (previous year Rs.192.08 lakhs) are passed by D.C.C.T., Bhubaneswar by reopening the assessment. Appeal is pending before Addl. Commissioner of Commercial Tax, Odisha, Cuttack for the year 2005-06 and 2006-07.

251.24 251.24

iv Assessment of ET for the year 01.01.05 to 31.03.08 is under dispute with a tax demand of Rs.38.24 Lakhs and penalty of Rs.76.46 Lakhs totaling to Rs.114.70 lakhs. Appeal is filed before Odisha Sales Tax Tribunal on 02.05.13 against the 1st Appeal. However, the Corporation has deposited Rs.25.00 lakhs as per direction of Commissioner, Commercial Tax, Odisha, Cuttack against the stay petition filed earlier.

114.70 114.70

v For the period 01.07.2006 to 31.03.2008 against the demand of Rs.40.90 lakh (Rs.25.20 lakh + Rs.15.70 lakh) an amount of Rs.6.32 lakh relating to Q.E.30.06.2006, has been adjusted vide order memo No.1952/CT dated 16.09.2010 with a payment of Rs.10.56 lakh. Appeals were filed before Addl.Commissioner of Sales Tax Revenue dated 03.11.2010. Subsequently the Corpora;tion has filed an appeal before \orissa Sales Tax Tribunal against the order of Ist appeal on 02.05.2013.

24.01

vi Assessment of VAT for the period 01.04.2008 to 31.01.2012 has been completed and an amount of Rs.0.83 lakh is under dispute. An appeal has been filed before Addl.Commissioner,Commercial tax on 04.12.2013.The Demand was for Rs.2.48 lakh (Tax: Rs.0.83 lakh and interst Rs.1.65 lakh) and the Corporation has deposited Rs.0.17 lakh on 03.12.2013.

2.31

vii

viii

ix

Assessment of Entry Tax for the period 01.04.2008 to 31.01.2012 has been completed and an amount of Rs.24.29 lakh is under dispute.An appeal has been filed before Addl.Commissioner,Commercial Tax on 04.12.2013. The Demand was for Rs.91.70 lakh (Tax: Rs.24.29 lakh and interst & Penalty: Rs.67.40 lakh) and the Corporation has depoisted Rs.23.29 lakh on 03.12.2013 and 29.03.2014.

68.41

Assessment of CST for the period 01.04.2008 to 31.12.2011 has been completed and an amaount of Rs.8.66 lakh is under dispute.An appeal has been filed before Addl.Commissioner,Commercial Tax on 04.12.2013.The Demand was for Rs.25.97 lakh (Tax:Rs.8.66 lakh and Penalty: Rs.17.32 lakh) and the Corporation has deposited Rs.4.32 lakh on 03.12.2013 and 29.03.2014.

Orders for dispute on utilisation of way buills for the period 01.04.2008 to 31.03.2009 has been passed by DCCT,Bhubaneswar and demanded Rs.14.61 lakh. Appeal is pending before Addl.Commissioner, Commercial Tax,Odisha since 23.10.2013 and the Corporation has deposited Rs.0.97 lakh on 23.10.2013.

21.65

13.64

Sub Total 576.82 446.80

iv

2.26 Contingent Liabilty2013-14

Rs. In Lacs2012-13

Rs. In Lacs

2.26.4 Income Tax

i After finalisation of relevant years assessment and the relevant Appeals filed with various Forums by OMC during the Assessment years 1985-86 to 2004-05 the difference between Assessed Tax liability and Income Tax provision made in Accounts during this period which amounts to Rs.2711.48 Lakhs. This has been provided in the Accounts of 2013-14 (previous year disclosed Rs.2305.25 lakh for A.Y. 1987-88 to 1992-93) hence, no contingent liabilty existed during the current year.

- 2305.25

ii Income Tax assessment has been completed till AY 2012-13. For the Assessment Years 2005-06 to 2012-13, against income tax demand of Rs.393971.68 lakh (previous year Rs.446297.17 lakh A.Y.1993-94 till A.Y.2012-13) , provisions of Rs.374742.21 lakh (previous year Rs.276616.33 lakhs A.Y.1993-94 till A.Y.2012-13) have been created and accordingly contingent liability exists for Rs.19229.47 lakh (previous year Rs.169680.84 lakhs A.Y.1993-94 till A.Y.2012-13) in view of the Company disputing the additional demand before CIT (Appeal) /Income Tax Appellate Tribunal.

19229.47 169680.84

2.26.5 Mining, Geology, Forest & Environment

i Royalty demanded by Director of Mining & Geology, Government of Odisha.

6.33 6.33

ii Demanded by Dy. Director of Mines, J.K. Road towards cost price of Chrome Concentrate found in excess of book balance vide letter No.4960 dtd.4.05.2011

663.48 663.48

iii A quantity of 80603.325 M.T. of Chrome ore of Kaliapani ,which was seized by Director of Mines,has been disposed of. As per the order of Hon’ble Court of JMFC,J.K.Road ,vide Misc. case No. 71 of 2009, the amount realized from sales of the ore has been kept in separate account along with interest earned on this amount.

6348.57 5830.92

Sub Total 19229.47 171986.09

Sub Total 7018.38 6500.73

Demand received from various DDMs and Mining Officers against illegal extraction of Ore. Replied to the Show-cause to drop the demand.Gandhamardhan - A Vide demand Letter no.MO/2029/12.09.12 52100.43 52100.43Gandhamardhan - B Vide demand Letter no.MO/2027/12.09.12 111514.79 111514.79Khandabandha Vide demand Letter no.DDM/42501/09.11.11 & Revised Demand Letter DDM/898/15.02.14. 16460.21 51437.87

Seremda Bhadrasahi Vide demand Letter no.DDM/6629/30.10.12 & Revised Demand Letter DDM/949/15.02.14. 26168.95 19452.15Dubna Vide demand Letter no.DDM/42661/9.11.11& Revised Demand Letter DDM/856/15.02.14. 7265.64 16937.72

Sakradihi Vide demand Letter no.DDM/42665/09.11.11 & Revised Demand Letter DDM/853/15.02.14. 7951.67 46181.53

Banspani Vide demand Letter no.DDM/42625/09.11.11 & Revised Demand Letter DDM/883/15.02.14. 1826.61 6912.69Dalki Vide demand Letter no.DDM/42645/09.11.11 2214.94 2214.94BPJ Vide demand Letter no.DDM/42509/09.11.11 & Revised Demand Letter DDM/889/15.02.14. 36915.01 79946.03Koira-Kasira Vide demand Letter no.DDM/5336/14.11.12 2813.16 2813.16Koira-Bhanjapali Vide demand Letter no.DDM/5109/20.10.12 1822.52 1822.52Kurmitar Vide demand Letter no.DDM/5027/18.10.12 171808.91 171808.91South Kaliapani Vide demand Letter no.DDM/3800/15.12.12 325674.83 325674.83Kaliapani Vide demand Letter no.DDM/3803/15.12.12 2842.06 2842.06Sukrangi Vide demand Letter no.DDM/3802/15.12.12 2638.51 2638.51Bangur Vide demand Letter no.MO/2050/15.09.12 1514.49 1514.49Daitari Vide demand Letter no.DDM/2462/08.07.2013 120350.98 - Roida - C Vide demand Letter no.DDM/802/15.02.14 25324.33 - Sub Total 917208.05 895812.64Demand against Cost of Regional Wild Life Management FundAs stage I is yet to be cleared it was decided that the Demand against Cost of Regional Wild Life Management Fund shall be deposited after grant of Stage I Forest Clearance of the following leasesKoira - Kasira 83.67 83.67Koira - Bhanjapali 28.25 28.25Rantha 81.77 81.77Kathpal (WLMP) 52.89 52.89Sub Total 246.59 246.59Demand against Stamp Duty under Section 3A of Indian Stamp (Odisha Amendement) Act, 2013 received from Distrct Collector.Sukrangi chromite mines Demand Notice No.2500 dt.08.07.13 55301.40 - Gandhamardan Block-B Demand Notice No.1022 dt.08.07.13 65173.98 - South kaliapani Demand Notice No.2506 dt.08.07.13 63519.32 - Barbil Region (Seremeda, Bhadrasahi & Barpada Kasia) Iron and Manganese mines Demand Notice No.1020 dt.08.07.13 10833.36 - Khandadhar Demand Notice No.494 dt.08.07.13 67558.54 -Sub Total 262,386.59 - OthersExtra claim by State PWD towards construction of Building. 0.36 0.36Interest demanded by Tahasildar, Barbil. 0.35 0.35Sub Total 0.71 0.71Total 1278242.28 1143220.83Total in $ $437976 $437976

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OMC Annual Report 2013-14 Inner Final 58th Annual Report 2013-14 with... · Sri Pradipta Kumar Mohapatra, IAS, Chairman, OMC Sri Girish S. N. IAS, MD, OMC Sri Parag Gupta, IAS Sri

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