AFFLUENCE

BOARD'S REPORT  

TO SHAREHOLDERS 

DEAR SHAREHOLDERS,

On behalf of Board of Directors, I feel great pleasure in presenting the 53rd Annual Report of your Company, together with the Auditors Report and Financial Statements for the year ended on 31st March, 2015.

DIVIDEND: 

MOIL is a dividend paying company since many years. Continuing the same during the year 2014-15, an Interim Dividend @ 50%, i.e., Rs. 5.00 per Equity Share, has been paid in the month of March, 2015. The Board of Directors of your company has further recommended a final dividend @ 35% i.e., Rs. 3.50 per Equity Share, for the year. The total dividend for the year 2014-15 works out to Rs. 8.50 per equity share as against Rs. 7.50 paid in previous year. Thus, the total dividend payout for the year works out to Rs. 142.80 Crore @ 8.5% (Previous year Rs. 126.00 Crores).

FINANCIAL PERFORMANCE:

Your company has recorded net sales (excluding excise duty) of Rs. 823.25 Crores during the financial year 2014-15, as compared to Rs. 1021.28 Crores of previous year. Profit before tax (PBT) for the year has decreased by 15.44% to Rs.650.57 Crores, in comparison to previous year PBT of Rs.769.33. The Company has earned a profit after tax (PAT) of Rs. 428.01 Crores as against Rs.509.56 Crores in the previous year.

As per the Government Guidelines, your Company has deployed surplus funds in fixed deposits and earned an interest income which is included in total interest received of Rs. 279.77 crores (Previous Year Rs. 249.86 crores) and clubbed under other income. Other income also includes Rs. 24.41 crore (Previous year Rs. 45.75 crores) towards write back of provisions made in earlier years for employee benefits, no longer considered necessary now. 

SALES :  

 FY 2014-15 has been a year of challenges for mining and metals industry and, in particular, for manganese ore industry. There has been continuous pressure in pricing side of the ore due to heavy imports coupled with lesser demand which has resulted in piling up of inventories with ferro alloy producers. Despite that, during the year 2014-15 net sales of manganese ore was Rs. 749.55 Crores as against Rs. 946.16 Crores in the previous year. The company has sold 9.10 lakh tonnes of manganese ore in 2014-15 in comparison to 11.33 lakh tonnes in the previous year. Due to depressed market conditions, the sales quantity and turnover have come down by 19.68% and 20.78% respectively, in comparison to last year.

In respect of manufactured products of the company, viz., electrolytic manganese dioxide (EMD), ferro manganese and ferro manganese slag, the net sale during the year 2014-15 was Rs. 73.55 Crores in comparison to Rs. 73.78 Crores during previous year. The sale of EMD was 655 tonnes, as against 893 tonnes in the previous year, whereas sale of ferro manganese was at 8587 tonnes in comparison to 8707 tonnes during previous year.

PRODUCTION AND PRODUCTIVITY:

Your company has produced 11.39 Lakh Tonnes of various grades of manganese ore as against 11.35 Lakh tonnes in previous year. The output per manshift (OMS), which is a measure of productivity, has been excellent at 0.818 tonnes (previous year 0.805 tonnes). The production of EMD has increased by 2.93%, from 923 tonnes to 950 tonnes during 2014-15. The production of ferro manganese also increased from 10042 tonnes to 10045 tonnes.

CLOSING STOCK :

The Company has a closing stock of 2.48 lakh tonnes of manganese ore valued at Rs. 109.38 Crores as on 31.03.2015 as compared to 0.48 lakh tonnes of manganese ore valued at Rs. 20.63 Crores as on 31.03.2014. The closing stock of ferro manganese was 4001 tonnes valued at Rs. 16.36 Crores as on 31.03.2015 as against 2543 tonnes valued at Rs. 8.47 Crores as on 31.03.2014. The closing stock of EMD as on 31.03.2015 was 396 tonnes (previous year 101 Tonnes) valued at Rs. 3.47 Crores (previous year 0.91Crores).

CAPITAL / VALUE ADDITION / DIVERSIFICATION PROJECTS:

In order to meet the demand of manganese ore in the steel industry and to remain market leader in manganese industry in our country, it is required to enhance the manganese ore production. In order to meet the requirement in future and maintain its leadership, MOIL has planned to enhance its production from present level of around 1.14 million tonnes to 2.0 million tonnes by 2020 and 3.0 million tonnes by 2030 for which strategic management plan has already been prepared. In this direction, your company has planned investments for development of existing mines, acquisition of new mines within and outside the country, acquisition of areas adjoining the mines, setting up value addition / diversification projects etc.

• Capex and Mine Expansion Projects :

Capex plans of the company envisage investments in vertical shaft sinking/deepening projects, development of new leases/ area for mining, regular additions/modifications/replacements in fixed assets, townships, research, development, etc. Total Capex during the year 2014-15 is Rs. 114.78 crores as against Rs. 85.46 crores in previous year. MOIL has undertaken various mine expansion projects to enhance the production from its existing mines. Some projects have already been completed and some are at various stages of implementation as under. 

1. COMPLETED PROJECTS / PROJECTS UNDER IMPLEMENTATION 

(i) Sinking of vertical shaft at Munsar mine at capital cost of Rs. 25.20 crores, completed in Nov. 2014.

(ii) Sinking of vertical shaft at Ukwa mine at capital cost of Rs. 18.11 crores, completed in Nov. 2014.

(iii) Deepening of Holmes (vertical) shaft from 300 mtrs depth to 435 mtrs depth at Balaghat at capital cost of Rs. 28.30 crores. The project is under progress and running as per schedule.

(iv) Deepening of vertical shaft at Chikla mine from 109 mtrs to 169 mtrs at capital cost of Rs. 9.12 crores. The project is under progress and running as per schedule.

(v) Sinking of second vertical shaft of 160 mtrs depth at Chikla mine at capital cost of Rs. 48.70 crores has been recently taken up and the implementation has started in Feb'15. Project is under progress and running as per schedule.

The above projects will help in sustaining the existing production level as well as enhancing the production. 

2. UPCOMING / NEW PROJECTS: 

(i) Sinking of 2nd vertical shaft of 160 mtrs depth at Munsar mine at an estimated capital cost of Rs. 51.32 Crores The company has floated open tender seeking offers from the prospective bidders and scrutiny of the offers received is in progress. 

 (ii) Sinking of 2nd vertical shaft of 324 mtrs depth at Ukwa mine at an estimated capital cost of Rs. 77.15 Crores :- The company has floated open tender to seek offers from the prospective bidders

(iii) Deepening of vertical shaft at Kandri mine from 185 mtrs to 245 mtrs at an estimated capital cost of Rs. 14.82 Crores:-The company has already floated open tender for the project and evaluation of the offers received is in progress.

(iv) Sinking of large dia high speed 2nd vertical shaft of 310 mtrs depth at Gumgaon mine at an estimated capital cost of Rs. 150 crores :- Designing and preparation of estimate of the project are in progress.

(v) Expansion of Balaghat mine by setting up large dia. shaft, mine development and ore beneficiation plant, etc. at an estimated cost of Rs. 545 crore :- Consultant is being engaged to provide design, drawings, estimates, etc.

(vi) Deepening of Production shaft at Balaghat mine from 390 mtrs to 615 mtrs and allied works at capital cost of approx. Rs. 60.00 Crores :- Designing and preparation of estimate in progress.

The above projects will help in sustaining the existing production level as well as enhancing the production. 

Acquisition of Mines in and outside Country 

MOIL has made plan to acquire manganese and other metalliferous minerals within and outside the country. For this, an open ended Expression of Interest (EoI) has been hosted on the website to seek offers from prospective owners who are willing to sell/offer controlling interest in their mining assets to MOIL. Proposals of acquisition of manganese ore, iron ore and chrome ore assets are scrutinized as and when offers are received against the EoI. The company has already empanelled reputed consultants for due diligence. So far, no appropriate proposal has been received. 

SAIL & MOIL Ferro Alloys Pvt. Ltd and RINMOIL Ferro Alloys Pvt. Ltd: 

MOIL has two separate Joint Ventures (50:50) with Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) for setting up Ferro Alloys Plant.

As per TEFR prepared by MECON Ltd, the projects are not viable at the present power tariffs of State Electricity Boards. Hence, other options to source power at cheaper rates are being explored. In view of this, there is no activity in both the joint venture companies during the year.

Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014, a statement containing salient features of the financial statement of associate companies (Form AOC-1) are annexed as Annexure I. 

Wind power generation 

MOIL has two wind farms of 4.8 MW and 15.2 MW situated at Nagda Hills and Ratedi Hills respectively in District Dewas near Indore. The power from 4.8 MW wind farm is being wheeled to Balaghat mine and is consumed in the mine as well as ferro manganese plant of the company. Power generated from 15.2 MW wind farm is sold to utility, i.e., Madhya Pradesh Power Management Company Limited. The company has generated 3.28 crore KwH electricity in comparison to 3.32 Crores KwH in previous year. 

Exploration Business 

Ministry of Mines, Government of India has recently notified MOIL for conducting exploration for various minerals all over the country as per Section 4(1) of the MMDR Act, 1957. This opens up opportunities to MOIL to expand its business in this new area.

RESEARCH & DEVELOPMENT:

MOIL is engaged in exploration, extraction, beneficiation and marketing of manganese ore and value added products such as EMD and ferro manganese. It operates underground and opencast mines. Manganese deposits are mostly hosted in poor to fair rock conditions with various difficult geo-mining conditions. The company is also working on old manganiferous dumps for secondary recovery of manganese ore by employing off the pit mining.

R&D activities are essential for efficient exploration, exploitation and processing of mineral reserves/resources in this era of globalisation and competition in mining industry. The R & D efforts are therefore directed towards meeting the challenges of safe and cost effective mining practices in underground and opencast mines due to increasing depth of mine workings. In order to address these issues effectively, MOIL has identified the following thrust areas for R & D works.

• Rock mechanics instrumentation and data monitoring is being carried out for the safety of underground workings with the help of strain bars in collaboration with Central Institute of Mining & Fuel Research (CIMFR), Nagpur.

• For utilisation of mineral rejects in gainful manner, beneficiation studies of mineral rejects/fines from the dumps are being conducted at Modern Mineral Processing Laboratory and Pilot Plant of Indian Bureau of Mines (IBM), Nagpur. 

• Ventilation reorganization studies for mining at deeper levels have been conducted at Balaghat Mine for proper air current to employees in underground by Indian School of Mines (ISM), Dhanbad. It has improved the face ventilation and productivity in underground.

• For deeper exploration of manganese ore, extensive core drilling has been carried out at all the mines of the Company. It is generating additional quantity of resources of manganese ore for future exploitation.

• On the basis of the scientific studies conducted by Indian School of Mines (ISM), Dhanbad for Ukwa mine, new design of mechanized stoping operations and support systems has been introduced at Ukwa mine.

• R&D studies are going on for slope stability and monitoring by rock mechanics instruments by National Institute of Technology (NIT), Rourkela at Dongri Buzurg mine for better safety.

• As an alternative to sand as a fill material in void, use of bottom ash as fill material for consolidated hydraulic stowing at Ukwa mine is being carried out on experimental basis through in-house feasibility studies by technical department.

• For alternative fuel against Diesel in Ammonium Nitrate Fuel Oil (ANFO), blasting studies have been conducted at Dongri Buzurg Mine with CIMFR, Dhanbad.

• Hydro-geological studies for stope design in underground mining operations at Kandri Mine is being carried out by CIMFR, Nagpur for better safety and productivity.

• Blasting studies have been conducted for safe blast design to control ground vibrations in Dongri Buzurg, Beldongri, Tirodi and Munsar mine by CIMFR and VNIT, Nagpur.

• Investigation of Geo-physical and mechanical properties of rocks up to 650 mtrs from the surface has been conducted at Balaghat mine along with insitu stress estimation for the safety of the structure by CIMFR, Nagpur.

• Load Haul and Dump (LHD) machines have been introduced in the underground mine for development and mechanical handling of ROM for improvement in productivity.

Further details regarding R&D activities have been given in Annexure -II.

CONSERVATION OF ENERGY:

MOIL gives special emphasis on conservation of energy. Overall energy consumption at all mines of the company has been reduced by 7.90% in the year 2014-15 as compared to previous year. In case of ferro manganese plant, the reduction is 3.8%. This has been achieved by improvement in efficiency of machinery, power factor and regular monitoring performance of equipments.

Measures taken for reduction in energy consumption and future plans to this effect are as under.

(i) 3000 KVA and 1500 KVA D.G sets have been installed at Balaghat and Ukwa mine respectively. With new technology engines and alternator, the cost of generation will be reduced.

(ii) Soft starter installed for 422 HP underground pump at Balaghat mine to reduce wear and tear and energy saving of about 2%.

MINING LEASES AND EXPLORATION:

MOIL is having total 1730.096 hectares lease area as on 31st March 2015, out of which 700.066 hectares land is in Maharashtra and 1030.030 hectares land is in Madhya Pradesh. An area of 814.71 hectares was reserved by the Central Government in favor of MOIL, for prospecting of Manganese ore in Nagpur and Bhandara District of Maharashtra State. Out of 814.71 hectares area, State Govt. of Maharashtra has granted 597.44 hectares for prospecting of Manganese ore and remaining areas are under process.

National Geo-physical Research Institute, Hyderabad has completed Gravity-Magnetic Survey with 6946 stations over sanctioned 597.44 hectares P.L areas. Exploration by core drilling has indicated the presence of Manganese in two of the P.L. areas. Core drilling for remaining P.L. areas is to be commenced.

Exploration of additional Resources/New virgin deposits is a continuous process at MOIL. Exploration by core-drilling has added 5.98 Million Tonnes of in situ (Bed) resources. This has enhanced MOIL's total in situ Reserves and Resources to 77.38 Million Tonnes. 

ENTERPRISE RESOURCE PLANNING (ERP):

ERP implementation at MOIL envisages seamless integration of all business processes, enable decision making based on information that is visible and transparent across all levels. With a single transaction base that is shared, updated and drawn upon by the entire organization, standardization of all the master data across business functions are expected to be achieved. The as-is processes have been listed and documented in detail. Steering committee as well as core committee to carry out the implementation task has been formed. The best suited ERP product for MOIL and System Integrator (SI) has been finalized through open tendering and work-order has been placed. The project is expected to be completed in the next year.

SAFETY AND OCCUPATIONAL HEALTH:

Your Company lays special emphasis to ensure safety in the mines and also takes continuous efforts to reduce the accidents by improving the standards of safety equipments through introduction of latest mining techniques and mechanization of mining operations. Following steps have been taken to improve the safety standards at the mines:

• Training and re-training of workers to inculcate safety consciousness.

• Regular meetings of Safety Committees in which accident analysis are made meticulously with a view to reduce the injury rate.

• A close interaction with employees at all levels to prevent accidents to the maximum extent possible.

• Imparting vocational and refresher training to each employee regularly apart from specialized training.

• Safety and Environment department had conducted training programs on

a) Importance of safety, health, and sustainability in mines.

b) Disasters management in mines.

c) Occupational health and safety in mine.

• MOIL has also received prestigious National Safety Awards (Mines) for Munsar & Ukwa mine for Longest Accident free period and lowest injury frequency rate respectively for the contest year 2012 from Hon'ble President of India.

• MOIL has obtained OHSAS 18001:2007 certification / re-certification for all its mines except small mines like Beldongri and Sitapatore.

ENVIRONMENTAL PROTECTION:

Ecology conservation is crucial in today's era. It is imperative that the development process in a community is compatible with its environment as well as with the particular culture of that community. Your company, with a goal of achieving sustainable development has taken various proactive measures to reduce global warming. The Company is conscious of its responsibility towards environmental protection in and around its leasehold areas.

About 33000 saplings were planted during 2014-15 at different mines of the company. The cumulative plantation till date is about 18.46 Lakhs sapling. A drive has been initiated for plantation of Jatropha saplings in arid / dry areas and waste dumps whose seeds will be utilized for production of bio-fuel on trial basis. In order to be eco-friendly organization the company has set up Wind Energy Farm of Total 20 MW in the State of Madhya Pradesh, out of which electricity generated by 4.8 MW is consumed by the company and electricity generated by 15.2 MW Wind Farm is sold to State grid.

All the units including sand ghats have got Environment Clearance from the MoEF, New Delhi.

VIGILANCE :

The functioning of vigilance department includes preventive as well as punitive vigilance and the main thrust is on the systems improvements in the organisation. Various activities of vigilance department during the year 2014-15 are as under:

(1) ISO 9001-2008: ISO-9001:2008 Certificate of vigilance department has been re-validated on 22nd May 2014 and is valid till 22nd May, 2017.

(2) Inspections: General and surprise inspections are being carried out regularly to ensure adherence to norms and eliminate deviations.

(3) E-governance : The disposal of scrap/ surplus items and sale of manganese ore are being done through e-auctions. E-procurement is being done for purchases and work contracts above threshold value.

(4) Structured Meetings of Vigilance: As per the instructions of Chief Vigilance Commission (CVC) and Ministry of Steel, structured meetings of vigilance department with the management are being conducted regularly. During 2014-15, two meetings were conducted. Issues related to e-governance, leveraging technology, tender management, award of works, recruitment policy, etc. have been discussed. 

 (5) Leveraging technology: As per circulars of the Commission, effective use of website and leveraging technology in discharge of regulatory, enforcement activities and dealing with complaints has been emphasized. The main areas are contracts and procurements. Applications for registration of contractors/suppliers/consultants/vendors, etc., and status of bill payments to contractors / suppliers are posted on the company's website. All tender documents, online applications for recruitment and status, notices and other proformas are posted on the websites.

(6) Updation of manuals: Various manuals such as purchase manual, works and contract manual, personnel manual, marketing manual, etc., have been prepared and put in practice. As per the instructions of the CVC and the Ministry, the said manuals are also posted on the Company's website/intranet and need-based updation of manuals is carried out.

(7) Tenders and contracts: As per CVC circulars, action is taken to ensure that tenders/contracts issued above a threshold value are posted on the website regularly every month, and is being monitored.

(8) Training programme : During 2014-15, vigilance department has conducted 6 training programmes at three different locations, covering 215 employees. Topics such as good governance - vigilance and other developments, Lokpal & Lokayukta Act 2013, vigilance awareness and preventive vigilance, etc., are covered.

(9) System improvements : As an outcome of different investigations relating to complaints, study, inspection, etc, advisories and suggestions were given for the system improvement in the following areas :

(i) Procedure related to recruitment and promotion.

(ii) Preparation of estimates and rate schedules in work contracts.

(iii) Restructuring of capital asset register.

(iv) Policy of retention / destruction of records

(v) CCTV and Biometrics

(vi) Online vendor registration

(vii) Revision of WVR (Weight Volume Ratio)

(viii) Adoption of PAR

(10) Annual Property Returns: There are 344 executives in the organization and all have submitted their Annual Property Returns. As per the CVC guidelines 20% of the returns have to be scrutinized every year. Accordingly, scrutiny of Annual Property Returns of executives has been carried out during the year.

(11) Vigilance awareness week: Vigilance awareness week was observed from 27th October 2014 to 1st November 2014 at all the locations/offices of MOIL. On this occasion, vigilance department came out with the 3rd annual issue of vigilance magazine "SHUCHITA" which was released by the CMD of MOIL. Various competitions, workshops and seminars are conducted during the week for employees and students of school and colleges.

IMPLEMENTATION OF RTI:

With the advent of the Right to Information Act 2005 in India, MOIL has taken the major initiatives towards its effective implementation.

MOIL has appointed CPIOs at the Corporate Office and PIOs/APIOs have also been appointed in all its mines. Executive Director (Technical) & Addl. Charge Personnel Deptt. has been appointed/designated as Appellate Authority under the Act. Names of all PIOs/ APIOs and the Appellate Authority have been also hosted in company's website.

The information in respect of company, its employees etc. have been prepared under 17 heads as prescribed in Section 4(1) (b) of the RTI Act, and the same been hosted on the company's portal. MOIL has been submitting necessary information and returns to the prescribed authorities and updating the same regularly.

A lot of awareness has been generated in order to make Company's employees aware about the intention and true spirit of this Act. The various provisions of the Act has been highlighted by issue of the circulars and asked them to keep transparency in day-to-day work and maintain all the records in a proper/systematic manner. Further, the Company has also hosted/updated in Company's website as much information suo-moto at regular intervals for the public, so that public has minimum resort to use the various provisions under the RTI Act to obtain information.

For the awareness of employees at large, seminars have been organised to make them understand the importance of RTI Act in the present scenario and highlighted the provisions of the Act.

During the year under report, the company received total 53 nos. applications under RTI Act, out of which 47 applications accepted and 6 rejected. All 9 appeals under RTI have been disposed off during the period. 

TRAINING PROGRAMMES:

During the year 2014-15, total 126 training programmes (internal and external) were conducted. It includes 58 vocational training programmes which were conducted for workers at Vocational training centre at mines. Out of 4616 participants who were imparted training during the year in various programmes, 1143 were executives, 605 non-executives and 2868 workers. Total 59824 mandays' of training was completed on various topics during the year under review. In addition to this, the company has also imparted training to apprentices under Apprentices Act, 1961.

MOIL has been encouraging its workmen to show their inherent skills and has been providing various platforms to exhibit their skill. In this direction, a skill development programme was organised under which, technical personnel were asked to prepare models in various fields of activities. A programme was organised in the Munsar Training Centre in March, 2014 which was observed as "Young Talent Day". A total of 88 trade apprentices participated in the programme and 32 models of creative concepts were submitted. After evaluation of the technical team, prizes were awarded to the best models and team.

LABOUR WELFARE SCHEMES:

MOIL is carrying out numerous welfare schemes such as housing, drinking water, electricity, hospital, health camps, schools, home loans and interest subsidies on home loans etc. for the benefit of the employees as well as people residing in the adjacent areas of different mines which are situated in the remote areas. Salient features of such schemes are given below:-

• It is matter of great pride that MOIL is the first PSU under administrative Ministry of Steel to introduce Pension Scheme for its employees including staff and workers.

• For improvement of living standard and taking into consideration of aspiration of the employees, residential quarters have been constructed and allotted to majority of the employees.

• Providing adequate supply of drinking water to the employees residing in the mine colonies

• Colonies and streets of the camps are well illuminated. The employees have been provided with electricity for their residence on concessional rate.

• Hospitals have been setup at all the mines maintained by qualified doctors and supported by trained paramedical staff. The arrangement of OPD as well as indoor ward separately for male and female are provided. Ambulance is also provided to all the hospitals for attending emergencies. The patients are also being referred for medical treatments to specialized hospitals as per the requirement.

• Medical Insurance for retired employees.

• Assistance is extended in running Primary Schools at some of the mines where free education is imparted. School buses are provided at all the Mines so as to take children to nearby areas for High School/ College.

• As per schemes for reimbursement of tuition fees and scholarship to meritorious students, reimbursement of tuition fees to the children of staff and the workers are provided for taking education in professional courses.

• Two school buildings (at Ukwa and Bharveli) have been renovated and provided infrastructure, for better environment to the local children.

WELFARE MEASURES TAKEN FOR SC/ST:

MOIL is a labour intensive organization with 6417 employees on its rolls as on 31.03.2015. About 75.21% of the total strength belongs to SC/ST/OBC including 44.25% belonging to SC/ST.

Your Company is also taking keen interest in development of the disadvantageous people living in the vicinity of the mines situated in remote areas by adopting villages near the mines and provided drinking water facilities, road maintenance, periodical medical check-ups and treatment to the people living in these villages, providing stationery, books etc. to the school adjacent to the mining areas. MOIL is also carrying out various "Community Development Programs" in and around its mines and initially 21 villages have been selected for these programs. All these villages are backward villages of Nagpur, Bhandara and Balaghat Districts.

EMPOWERMENT OF WOMEN:

MOIL has 829 women employees which constitute 12.92% of its total workforce of 6417 as on 31.03.2015.

In compliance with the directives of the Supreme Court, guidelines relating to sexual harassment of women workers at work place were issued by Govt. of India, Ministry of Human Resources Development. Accordingly, a Complaints Committee comprising of three officials including a lady Doctor was constituted in the year 1999 & reconstituted in March' 2006. No case of any harassment has since been reported at any of the mines of the Company or its Corporate Office. The directives have been widely circulated to bring awareness amongst the women workers. 

Mahila Mandals are working effectively at all the mines of the Company. Various cultural, social, educative and community activities, such as adult education, blood donation camps, eye camps, family planning etc. are being organized regularly, mostly for the benefit of women residing in the remote mine areas. The Company also grants maternity leave and special casual leave for family planning.

As part of its CSR activities, self help groups have been created at the mines which comprise women hailing from the remote villages. They are trained to make candles, washing powder, washing soaps, bamboo baskets, tailoring and various other vocational activities in order to make them self-reliant. This programme in MOIL has got very good response and a huge success.

 GRIEVANCE REDRESSAL MECHANISM:

(i) Employees grievances - MOIL has its own grievance redressal procedure for Executives as well as non-executive employees. The grievances of employees are accordingly dealt with as per the rule.

(ii) Public Grievance - All Grievance officials have been apprised of the manner in which the Public Grievance received are to be disposed off. The system adopted for dealing the grievance of Public was constituted on the basis of instructions received from various authorities in the past.

(iii) The redressal of grievance machinery in MOIL consists of one Grievance Officer nominated for at each unit. The Grievance Officer nominated at Head Office co-ordinates with the Grievance Officers at the units for their effective performance.

(iv) Monthly/quarterly reviewing of grievances by designated Public grievance officers at mines and corporate office.

(v) The data related to grievances at the units are submitted by unit Grievance Officers in monthly / quaterly returns to the Head Office. The same are examined & submitted to Ministry. 

CORPORATE SOCIAL RESPONSIBILITY (CSR) AND SUSTAINABILITY:

Corporate Social Responsibility (CSR) in MOIL is a continuous process. MOIL has been carrying out CSR activities in a resolute mannei from several years. The Company has framed a CSR Policy which is duly approved by the Board of Directors Several schemes have beer taken up and being implemented under CSR in the current financial year. 

Under its CSR schemes, the company has constructed and is maintaining DAV MOIL Public School at Chikla in Bhandara district having a capacity of 1400 students, carrying out cataract surgeries under its Light to Lives program, for needy rural poor to eradicate blindness. It has carried out more than 3000 cataract surgeries so far. Under Swachh Bharat - Swachh Vidyalaya Abhiyan of Govt. of India, MOIL has constructed 100 toilets in 80 schools in given time frame which has been highly appreciated by the Government. It is also carrying out various infrastructural development works in villages located in the vicinity of its operational areas like construction of roads, community halls and restoration of water bodies, providing drinking water facility etc.

In addition, the company has formed a registered society/trust namely "MOIL Foundation" as per provisions of the Companies Act, 2013 for the purpose of carrying out CSR activities. Under this, it is carrying out a "Community Development Program" on a large scale in association with Maharashtra Institute of Technology Transfer For Rural Areas (MITTRA) an associate of BAIF Development Research Foundation, Pune, which covers improved agricultural practices, live stock development, water resource management, health awareness programme, providing bio-gas, solar lamps and personal toilets, schemes for women empowerment, education and skill development in 21 villages in the vicinity of its mines.

An annual report as required under Companies Act, 2013 is attached as Annexure-III.

PROGRESSIVE USE OF HINDI:

In MOIL, about 97% of the works are being done in Hindi at mines. The Unicode system has been implanted in majority of computers of the Company. The Company has provided Hindi Language software in computers and imparting training to its employees, so that MOIL's employees can use the same in their day-to-day workings.

For propagating and implementation of the provisions of Official Language Act, 1963 the company is continuously organizing Hindi competitions like essay writing, noting, drafting, poetry and articles, etc., and the same are published in different magazines. Employees are being given re-training under the "Hindi Education Scheme" of the Home Ministry, in which 312 employees have already been given training for Pragya (Higher Level) which is a continuous process in the Company.

With support of the Ministry of Steel, MOIL has organized "Hindi Seminar" in Delhi in which representatives of 26 CPSEs and officers of Joint Secretary level and other employees of the Ministry participated. 

The in-house magazine "Sankalp" and the excellent works done by the Company in the field of Hindi have been appreciated by the Nagar Rajbhasha Karyanvay Samiti, Nagpur. The officers and employees of MOIL are sent to participate in various competitions organized by the Samiti. Employees of the company are encouraged to participate in various competitions in Hindi conducted by other institutions.

AWARDS AND ACCOLADES:

MOIL is one of the public sector enterprises in the country known for its continuous excellent performance. The Company has been getting national /regional recognition for its good work in almost all the spheres of activities. The following are some of recognitions, the company has received at the national level.

• Two National Safety Awards presented by Shri Pranab Mukherjee, Hon'ble President of India to Ukwa mine for under longest accident free period category and to Munsar mine for under lowest injury frequency rate category.

• Performance Excellence Award 2013 (Individual) to Shri G.P. Kundargi, Chairman-cum-Managing Director, MOIL by Indian Institution of Industrial Engineering (IIIE)

• Gold Awards - CCQC-2014 organised by Quality Circle Forum, Nagpur Chapter

• Silver Trophy in International Convention on Quality Control Circles 2014 (ICQCC-2014) held in Colombo, Sri Lanka

• 1st Prize to MOIL Rescue Team in 45th All India Mine Rescue Competition for Coal and Non-Coal was held at Mines Rescue Station, Ramgarh, Jharkhand under the aegis of Director General of Mines Safety in different categories.

• Best participants of the Bhopal Vigyan Mela-2015 in the PSU category.

• EXCELLENT MoU Rating, 19th year in succession, with a composite score of 1.096 for the year 2013-14, highest among all PSUs in the Ministry of Steel,

• Corporate Governance EXCELLENT grading by DPE.

DIRECTORS:

During the year under review, Directors namely Shri Lokesh Chandra, Shri A.K. Mehra and Shri Apurva Chandra have retired from the Board of the Company. The Board places on records its sincere appreciation towards their invaluable contribution and guidance to the Board during their tenure.

The Government of India has appointed Ms. Urvilla Khati, Joint Secretary, Government of India, Ministry of Steel as Government of India-Nominee Director, Shri Tanmaya Kumar Pattnaik as Director (Commercial) and Shri S.S. Shukla as Government of Madhya Pradesh-Nominee Director on the Board of MOIL.

All Independent Directors have given declarations that they meet the criteria of independence as laid down under Section 149(6) of the Companies Act, 2013 and Clause 49 of the Listing Agreement. Independent Directors are generally appointed for a period of three years and the existing term of the all independent directors are expiring on 18.11.2016.

Pursuant to section 134(3) (q) read with rule (8) (5) (iv) of Companies (Accounts) Rules, 2014, the Board has identified Chairman-cum-Managing Director, Director (Finance), who is also designated as Chief finance Officer (CFO) of the company, and Company Secretary as Key Managerial Personnel.

CHANGE IN ACCOUNTING POLICY:

During the year, the company has changed its accounting policy due to enactment of Companies Act, 2013 related to charging of depreciation in accounts, in accordance with Schedule II of the said Act as detailed in Point No. 2 of Note No. 1.2 of notes to the accounts. The change in policy has no material effect on the accounts.

The company has also modified its existing accounting policy related to employee benefits incorporating additional information to elaborate the accounting policy followed, as per suggestion of the Government auditors. The modifications in policy statement do not change the existing practice or policy on employee benefits but bring in more clarity.

APPOINTMENT AND REMUNERATION POLICY :

Being a Central Public Sector Undertaking, the appointment, tenure, performance evaluation, remuneration, etc., of Directors are made/fixed by the Government of India.

The remuneration of officers is decided as per Government guidelines on Pay Revision and remunerations of other employees of the company are decided as per Wage Settlement Agreement entered with their Union every ten years. The appointments/promotions etc. of the employees are made as per Recruitment and Promotion Policy approved by the Board. 

RISK MANAGEMENT POLICY:

MOIL recognizes that risk is inherent to any business activity and that managing risk effectively is critical to the immediate and future success of the Company. The Risk Management Policy of the company establishes a system which helps in overseeing the risks, management of material business risks and also helps in internal control of the company. The same is also uploaded in the company's website www.moil.nic.in.

DIRECTORS' RESPONSIBILITY STATEMENT :

Your Directors state that:

(i) in the preparation of the annual accounts, the applicable accounting standards have been followed and there are no material departures from the same;

(ii) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company as at March 31, 2015 and of the profit and loss of the company for the year ended on that date;

(iii) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

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

(v) they have laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

(vi) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

STATUTORY AUDITORS :

In terms of Section 143 (5) of the Companies Act, 2013 M/s J. S. Uberoi & Co., Chartered Accountants, Nagpur have been appointed by the Comptroller & Auditor General of India as auditors of your Company for the year 2014-15. There is no fraud reported by auditors of the company under sub-section (12) of section 143 of the Act.

The Statutory Auditors' Report is attached, which is self explanatory.

SECRETARIAL AUDITORS :

The Board had appointed M/s A. Mehta and Co., Indore (M.P.), as a Secretarial Auditors for 2014-15. Their Report is enclosed herewith which is self explanatory. There is no qualification in the report except on composition of the Board of the company, as there are only four independent directors as against requirement of six. Being a Government Company, all the directors are appointed by the Government of India. The Board believes that the Government of India is in process of appointment of requisite number of directors on the Board of MOIL.

RELATED PARTY TRANSACTION:

The Company has not entered into any materially significant related party transactions that may have potential conflict with the interests of the company at large. Nonetheless, transactions with related parties have been disclosed in point no. 13 of Note No. 1.2 of notes to the accounts. Hence, no disclosure is made in form AOC-2 as required in Section 134(3) read with Rule 8 of Companies (Accounts) Rules, 2014.The Company has Related Party Transaction Policy and the same is uploaded in its website www.moil.nic.in.

VIGIL MECHANISM:

The Company has a Whistle Blower Policy and the same is uploaded in its website www.moil.nic.in. The company has a competent and independent vigilance department, headed by Chief Vigilance Officer (CVO) for monitoring any unethical behaviour, actual or suspected fraud or violation of the company's code of conduct or ethics policy. All the personnel are having the access to the vigilance department for their complaints, grievances etc. Vigil mechanism has been established for directors and employees to report genuine concerns. The vigil mechanism provide for adequate safeguards against victimization of persons who use such mechanism.

COST AUDIT:

The Central Government has approved the appointment of M/s Ujwal P. Loya & Co., Cost Accountants, as the Cost Auditor of the Company to conduct audit of cost accounting records maintained by the Company for the year ended 31.03.2015. The due date for filing the Cost Audit Reports for the financial year ended 31st March, 2015 is 27th September, 2015. The report will be submitted within prescribed time limit. The Cost Audit Report and Compliance Report for the year 2013-14 were filed within the time limit as prescribed by the Ministry of Corporate Affairs. 

OTHER DISCLOSURES:

(i) Particulars with respect to R&D and Technology Absorption etc.: Particulars with respect to R&D and technology absorption, as required under the provisions of Section 134(3) (m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014, forming part of this report, is enclosed as Annexure-II to this report.

(ii) Foreign Exchange earnings and outgo: The Company has not made any export of manganese ore during the financial year 2014­15. During the year under review, the Company has incurred expenditure of Rs. 33.40 lakhs in foreign currency as against Rs. 50.99 Lakhs in the previous year.

(iii) Particulars of Employees: There are no employees covered within the purview of Section 134(3) of the Companies Act, 2013 read with Companies (Appointment and Remuneration of Managerial Personnel) 2014, as amended from time to time.

(iv) Deposits: During the year under review, MOIL has not accepted any deposits as provided under the Act.

(v) Loans, guarantees and investments: There are no loans, guarantees & investments under section 186 of the Act.

(vi) Composition of Audit Committee: The details regarding composition of Audit Committee are mentioned in Clause No. 3.1 (A) of the Corporate Governance Report which is a part of this Report

(vii) Number of meetings of the Board: The details in this respect are given in Clause No. 2.2 of the Corporate Governance Report which is a part of this Report.

(viii) Subsidiary Company: MOIL has no Subsidiary Company

(ix) Extract of Annual Return: Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014, an Extract of Annual Return (Form MGT-9) as on the financial year ended on 31.03.2015 is annexed as Annexure - IV.

MEMORANDUM OF UNDERSTANDING (MoU) :

MOIL has been signing Memorandum of Understanding (MoU) with Ministry of Steel since more than 20 years. The MoU sets forth various targets and parameters of performance, which are assessed against actual achievements after close of financial year. From the year 1995-96, the company has been continuously getting excellent ratings. Your company has once again got excellent rating 19th year in succession for the year 2013-14. The rating for 2014-15 has not been issued so far.

Continuing the practice, MOIL has signed MoU with the Ministry of Steel for the year 2015-16.

CORPORATE GOVERNANCE:

The Company strives to attain high standards of Corporate Governance. A separate section on Corporate Governance is annexed and forms part of the Board's Report, and enclosed as Annexure - V. 

MANAGEMENT DISCUSSION AND ANALYSIS:

A report on Management Discussion and Analysis is placed at Annexure - VI.

INDUSTRIAL RELATIONS:

Industrial relations in MOIL continued to be cordial and peaceful during the year 2014-15. There has not been any stoppage of work or any such labour agitation in the Company. The tempo for better production and productivity was maintained. Various Committees are constituted at the mine level and corporate level for discussing various issues for smooth functioning of the organisation and expeditious decisions for the settlement of grievances had been functioning satisfactorily.

ACKNOWLEDGEMENT:

Your Directors acknowledge the support, cooperation and guidance received from the Govt. of India, Ministry of Steel, Ministry of Enviroment and Forest, State Governments of Maharashtra and Madhya Pradesh, all Government Departments, Company's shareholders, Bankers, valued customers, suppliers and all other stakeholders.

The employees of the Company have continued to display their commitment towards the pursuit of excellence. Your Directors take this opportunity to place on record their appreciation for the valuable contribution made by the employees and look forward to their services with zeal and dedication in the years ahead to enable the Company to scale even greater heights. 

On behalf of the Board of Directors 

G.P. Kundargi

Chairman-cum-Managing Director 

Place: New Delhi

Date: 23.07.2015