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Directors Report of Gujarat Mineral Development Corporation Ltd.

Mar 31, 2015

Dear Members,

The Directors have pleasure in presenting 52nd Board's Report along with the audited accounts of your Corporation for the financial year 2014 - 15.

1. FINANCIAL RESULTS

Our profit after tax for the year is T 50,032.00 lakh as against T 43,913.42 lakh last year.

2014-15 2013-14 Financial Results (Rs.In lakh) (Rs.In lakh)

Operating profit 77,313 75,415

Less: Interest - -

Profit after interest, but Before depreciation 77,313 75,415

Less: Depreciation 13,727 12,456

Profit before tax & exceptional items 63,586 62,959

Less: Exceptional items - -

Profit before tax 63,586 62,959

Less: Provision for tax for the 13,554 19,046 year including deferred tax

Net profit after tax 50,032 43,913

Add: Balance of Profit brought 32,317 24 565 forward

Less: Excess/Short provision of Deferred tax liability (net) - -

Profit available for 82,349 68,478 appropriation

Less : Appropriations

( i ) Proposed Dividend 9,540 9,540

( ii ) Corporate tax on dividend 1,942 1,621

(iii) General Reserve 25,000 25,000

Balance carried to Balance Sheet 45'867 32'317

2. REVIEW OF THE BUSINESS OPERATIONS

2.1 LIGNITE PROJECTS :

During the year, the Company operated six lignite mines, namely, Panandhro, Mata-No-Madh, Rajpardi, Tadkeshwar, Bhavnagar and Umarsar (commenced production w.e.f. 13/3/15) Lignite Mines. During the year under review, 87.13 lakh tones of lignite were produced from these mines. The mine-wise production figures are as follows:

Sr. Lignite production in lakh No. Name of mine MI

1 Panandhro 27.89

2 Mata-No-Madh 32.11

3 Tadkeshwar 8.82

4 Rajpardi 6.15

5 Bhavnagar 12.03

6 Umarsar (w.e.f. 13/3/15) 0.13

Total 87.13

2.2 POWER PROJECT - NANI CHHER

During the year under review, 2 x 125 MW Akrimota Thermal Power Station is running successfully. This year the Power Plant has turned around and performed very well by producing 1358 MUs having 62% PLF booking a net profit of Rs. 17 crore.

2.3 WIND AND SOLAR POWER

Wind Farm Projects of 150.9 MW are situated at different locations in Gujarat and 5 MW Solar Power Project is situated at Panandhro Lignite Project, which are running satisfactorily. The Wind Projects have achieved 23% PLF (Plant Load Factor), whereas Solar Project is running at 18.40% CUF (Capacity Utilization Factor).

2.4 BAUXITE

During the year under review, the Gadhsisa Group of bauxite mine has produced 4,131 M.T. of ( ) 52% A1203 bauxite and 2,37,480 MT of (-) 52% A1203 bauxite.

During the year under review, the Gadhsisa group of mines sold 0.07 Lakh MT of ( ) 52% A1203 bauxite and 3.08 Lakh MT of (-) 52% A1203 bauxite alongwith 30,645 MT of mine dust.

2.5 MEWASA BAUXITE PROJECT, MEWASA

Your corporation has started bauxite mining operations at its Mewasa Bauxite Mines in Devbhoomi Dwarka district of Gujarat from 28/4/2015. The annual production capacity of this mine is 1.25 lakh MT.

2.6 FLUORSPAR PROJECT, KADIPANI (DIST. VADODARA)

GMDC along with M/s. Gujarat Fluoro Chemicals Limited and M/s Navin Fluorine Chemicals Limited is setting up the fluorspar beneficiation project, a single largest project of 40000 MTPA capacity at Kadipani. For selection of suitable technology, core samples have been analyzed at China. Further course of action for selection of technology is under process.

2.7 MANGANESE

During the period 2014 - 15, Corporation has disposed of 15,563 MT of manganese Ore Waste dump lying at Pani Area of Panchmahal district.

3. DIVIDEND

Your Directors have pleasure to recommend a dividend of 150% i.e. Rs. 3 per share on equity shares. An amount of Rs. 9,540 lakh on paid up equity share capital of T 6,360 lakh shall be paid as dividend.

4. TRANSFER OF UNCLAIMED DIVIDEND TO INVESTOR EDUCATION AND PROTECTION FUND

In terms of Section 205 C of The Companies Act, 1956, any unclaimed dividend or unpaid Dividend relating to the financial year 2007-08 will be transferred to the Investor Education and Protection Fund established by the Central Government on due date.

5. CONTRIBUTION TO STATE & CENTRAL EXCHEQUER

The Company has contributed to the State Exchequer an amount of T 30,975.27 lakh including Royalty of T6,556.02 lakh and Sales Tax of T 24,419.25 lakh. The Company has contributed to the Central Exchequer an amount of T 21,800 lakh as Income Tax,Rs. 5,425.97 lakh as Central Excise & T 8,092.30 lakh as Clean Energy Cess.

6. SHARE CAPITAL

During the year under review the issued, subscribed and paid-up share capital remained constant at Rs. 63.60 Crore divided into 31,80,00,000 equity shares of Rs. 2 each.

7. FINANCE AND TAXATION

Income Tax assessment of the Corporation has been completed up to the Financial Year 2011-12 and the Sales Tax assessment has been completed up to the Financial Year 2010-11.

8. INTERNAL AUDIT

M/s. T.R.Chadha & Co. and M/s Dhirubhai Shah & Co. Chartered Accountants were appointed as Internal Auditors of the Corporation for the Financial Year 2014 - 15.

9. STATUTORY AUDIT

M/s. H. K. Shah & Co., Chartered Accountants were appointed Statutory Auditors of the Company by the Comptroller & Auditor General of India for the Financial Year 2014 - 15.

10. AUDIT BY COMPTROLLER AND AUDITOR GENERAL OF INDIA (C & AG)

Being a Government Company, the C & AG has carried out supplementary audit of your Company pursuant to Provisions of Section 143 (6) of the Companies Act, 2013. The comments of C & AG, if any, and the Review of Company's accounts forms part of this report and are annexed at Annexure I.

11. COST AUDIT

Shri Manish B. Analkat was appointed as Cost Auditors of the Corporation for the year 2014 - 15. The Cost Audit Report has been filed on 2/10/2014 for the Financial Year 2013-14.

12. SECRETARIAL AUDIT

Pursuant to the provisions of Section 204 of the Companies Act, 2013, the Company has appointed M/s. Arvind Gaudana & Company, Company Secretary in Practice to undertake the Secretarial Audit of the Company. The Report of the Secretarial Audit is annexed herewith as Annexure II.

13. STATUS OF VARIOUS JOINT VENTURES

13.1 Gujarat Jaypee Cement & Infrastructure Limited

To set up the project for 2.4 million TPA of Cement in joint venture between GMDC and M/s. Jaypee Associates Limited, JVC under the name of M/s. Gujarat Jaypee Cement & Infrastructure Limited was incorporated to implement the project, based on limestone to be supplied by GMDC. In view of escalation in project cost, the project is no more viable. As such, the JV Partner has approached GMDC with a request to wind up the project.

13.2 Gujarat Gokul Power Limited

To implement the project for setting up 125 MW Power plant in Joint Venture between GMDC and M/s. Gokul Refoils & Solvents Limited, a JVC under the name of M/s. Gujarat Gokul Power Limited was incorporated. The required land for the project was purchased and related project activities will be started.

13.3 Gujarat State Mining & Resources Company Limited

A Joint Venture Company under the name of M/s. Gujarat State Mining & Resources Company Limited was incorporated, to implement the Joint Venture project between GMDC and M/s. Sunflag Iron & Steel Company Limited for setting up Coke Oven Plant based on coal to be supplied from Coking Coal Block to be allocated by Govt. of India under Govt. Dispensation Route. However, due to recent changes in the regulatory framework introduced by Govt. of India for allocation of coal blocks requiring competitive bidding, GSMRCL does not become eligible for bidding for coal block as the new regulations do not specify Coke Oven as a specified end-use. Hence the JVC partner has requested for closing the Company. Accordingly, it has been decided to close this Joint Venture Company.

13.4 Naini Coal Company Limited

Naini coal Block was allocated jointly to the Company and Pondicherry Industrial Promotion Development& Investment Corporation Limited (PIPDICL) and to develop the Coal Block, Naini Coal Company Limited was incorporated as the JVC. Due to slow progress on the project because of non-receipt of PL approval from Govt. of Odisha, Ministry of Coal, Govt. of India, de-allocated the block, invoking 50% of the Bank Guarantee. The company had filed petition in the High Court of Gujarat and stay has been granted by Hon'ble Court not to allocate this block to any other company till final hearing of the case. The Hon'ble Supreme Court of India has cancelled all the allocated coal blocks which include Naini Coal Block also. Hence appropriate decision for closing this joint venture will be taken in due course.

13.5 RBG Mineral Industries Limited

For transfer of Ambaji assets to the JV, valuation of Ambaji assets was necessary, which was assigned to Industrial Bureau of Mines (IBM), Nagpur. The report received from IBM was forwarded to JV Partner. Further course of action on the project shall be taken based on their confirmation.

13.6 Gujarat Credo Mineral Industries Limited

The first phase of the project i.e. Dry beneficiation of low grade bauxite has been commissioned. The second phase of the project i.e. Zeolite manufacturing, is under implementation and likely to be completed by September 2015.

13.7 Alumina and Aluminium Smelter Plant

Land required for the project has been allocated by Government and part possession has been taken. Process for obtaining possession of remaining portion of land also is under progress. The Detailed Project Report is received & it is under scrutiny.

13.8 Speciality Alumina Chemicals

Project Construction activities shall start as soon as land is allocated by the Government to the JV Partner.

13.9 Fluorspar Beneficiation plant

Pilot study of ore was conducted through BGRIMM China and the ore has been found suitable for producing Acid Fluorspar. EPC contract will be finalized soon.

13.10 Aikya Chemicals Private Limited

It is expected that the Project will commence production from September, 2015.

13.11 Bhavnagar Energy Company Limited

The Company is one of the promoters of Bhavnagar Energy Company Limited. The share of equity of GMDC in BECL is 26%. The company has invested Rs. 172 crore as equity upto financial year 2014 - 15. BECL is setting up a 500 MW power plant at village Padva, Ta. Ghogha, Dist. Bhavnagar.

14. MATERIAL CHANGES AND COMMITMENT IF ANY AFFECTING THE FINANCIAL POSITION OF THE COMPANY OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR TO WHICH THIS FINANCIAL STATEMENT RELATE AND THE DATE OF THE REPORT

No material changes and commitments affecting the financial position of the Company occurred between the ends of the financial year to which these financial statements relate on the date of this report

15. ENVIRONMENT PROGRAMME

Environmental Management is a very important part of mining industry and GMDC is following best practices towards reclamation and restoration of mined out areas. GMDC is committed to contribute, in accordance with its capacity, to the global endeavor to deal with climate change. GMDC has adopted all environmental measures to control Air, Water, Noise & Land pollution etc.

This year GMDC has planted total 2.10 Lakhs plant saplings covering 77.31 hectares of area. Grassland has been developed in 33 hectares of area. Micro drip irrigation system has been installed in 122.5 hectares of area for water conservation. Further, GMDC has made expansion of plant nursery at its Mata No Madh Lignite Project, Kutch, for their in-house consumption as well as for distribution to nearby GMDC's projects. Stabilization of non active permanent overburden dumps (80000 Square Meters Area) has been done through geo coir mat & thereafter grass development at various lignite mines of GMDC.

Wildlife Clearance for the removal of old manganese dumps at village Shivrajpur, Dist. Panchmahal has been received from the Standing Committee of National Board for Wildlife, Ministry of Environment, Government of India - New Delhi. Ministry of Environment, Forests & Climate Change. Government of India - New Delhi has issued "Terms of Reference" to Mata no Madh Lignite Project towards production capacity expansion from 2.4 to 4.8 MTPA. Consolidated Consent and Authorization (CCA) of new lignite mine at Umarsar, Kutch along with renewal of CCA of other mining projects of GMDC has been achieved well within time from Gujarat Pollution Control Board as per statutory requirements.

GMDC has taken a great initiative at Surkha (N) lignite project, Bhavnagar, towards the reduction of Sulphur Content from lignite at user end. For Sulphur reduction, installation of Pyrite Separation Plant has been started after environment clearance from Ministry of Environment, Forests & Climate Change, Government of India - New Delhi as well as from Gujarat Pollution Control Board. Under statutory requirement, monthly environmental monitoring is being done in-house as well as through MoEF/GPCB approved laboratory. Annual Environmental Audit of all GMDC projects is being done by GPCB approved Schedule I Auditor and reports are submitted to GPCB within stipulated time.

To create environmental awareness among employees and surrounding communities including schools, various environmental awareness programs have been conducted through celebration of World Environment Day and Van Mahotsav.

16. INDUSTRIAL RELATIONS, HEALTH AND SAFETY

The relations between the company and its employees continued to be cordial throughout the year. The company is also committed to the health and safety of not only its staff but also of the people engaged through its contractors and community living in and around its project areas. Dispensaries with qualified doctors and para-medical staff are in operation at Panandhro, Akrimota Thermal Power Plant, Rajpardi and Kadipani Projects. Mobile medical vans facilities are also operational at various projects.

Safety of its people is the motto of your company. For this purpose, at every project, GMDC provides ISI & DGMS safety shoes and other safety devices and adopts best safety practices. In order to create awareness about safety, among workers and other stakeholders, GMDC regularly organizes Safety Weeks. It is evident to see that safety practices of the Company have been recognized nationally in the form of national safety awards conferred upon your company, details of which have been given elsewhere in this Report.

The Company is an OHSAS 18000 certified company. Regular health checkup of employees engaged in Mining and Power segment including employees engaged through contractors, transporters etc. are conducted.

17. PARTICULARS OF EMPLOYEES

The Company did not have any employee who was employed throughout the financial year and in receipt of remuneration of T 60 lakh or more, or employed for part of the year and in receipt of T 5 lakh or more a month, under Rule 5 (2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.

The table containing other particulars of employees in accordance with the provisions of Section 197 (1) of the Companies Act, 2013, read with Rule 5 (1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is appended at Annexure III to the Board's Report.

18. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

Additional information on conservation of energy, technology absorption, foreign exchange earnings and outgo as required by the Section 134 (3) (m) of the Companies Act, 2013 read with Rule, 8(3) of the Companies (Accounts) Rules, 2014 is annexed as Annexure IV and forms part of this report.

19. STATEMENT CONCERNING DEVELOPMENT AND IMPLEMENTATION OF RISK MANAGEMENT POLICY OF THE COMPANY

Looking to the profile of GMDC, i.e., Mining and Power Operations, GMDC has inbuilt risk management practices to address various operational risks. The Company has standard operating processes for various mining operations in order to mitigate procedures and prevent risk arising out of various operations. GMDC has no external borrowings. Hence, there is no financial risk that can impact GMDC's Financial Position. GMDC primarily deals with natural resources. Hence, Policy of Government may impact GMDC's operational strategy.

GMDC's risk management process revolves around following parameters:

1. Risk Identification and Impact Assessment

2. Risk Evaluation

3. Risk Reporting and Disclosure

4. Risk Mitigation

Company has also set up a Risk Management Committee.

20. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS MADE UNDER SECTION 186 OF THE COMPANIES ACT, 2013

There were no loans and guarantees given by the company under Section 186 of the Companies Act, 2013. During the year under review, the Company made an investment of Rs. 3.865 crore in the equity of Bhavnagar Energy Company Limited.

21. PARTICULARS OF CONTRACTS OR ARRANGEMENTS MADE WITH RELATED PARTIES

The particulars of contracts or arrangements with the Related Parties during the year under review are provided at Annexure V in Form AOC-2.

22. EXPLANATION OR COMMENTS ON QUALIFICATIONS, RESERVATIONS OR ADVERSE REMARKS OR DISCLAIMERS MADE BY THE AUDITORS AND THE PRACTICING COMPANY SECRETARY IN THEIR REPORTS

There were no qualifications, reservations or adverse remarks or disclaimers made by the statutory auditors in their report on the standalone and consolidated accounts for the year 2014 - 15. The Comments, if any, and the Review of Accounts given by the C & AG forms part of this report. There were no qualifications, reservations or adverse remarks made by the practicing Company Secretary in his report.

23. COMPANY'S POLICY RELATING TO DIRECTORS APPOINTMENT, PAYMENT OF REMUNERATION AND DISCHARGE OF THEIR DUTIES

The Company being a Government Company, the Government of Gujarat appoints its Directors, except the Independent Directors. The company does not pay any remuneration to its Directors except, the sitting fees and out of pocket expenses. The Independent Directors are appointed by the Shareholders in their General Meeting. Except the Managing Director, all the Directors of the Company are non-executive directors.

24. EXTRACTS OF ANNUAL RETURN

The extracts of Annual Return pursuant to the provisions of Section 92 read with Rule 12 of the Companies (Management and Administration) Rules, 2014 is appended in Annexure VI to this report.

25. NUMBER OF BOARD MEETINGS CONDUCTED DURING THE YEAR UNDER REVIEW

The Company had conducted six Board Meetings under the financial year under review.

26. DIRECTORS' RESPONSIBILIY STATEMENT

In accordance with the provisions of Section 134(5) of the Companies Act, 2013, the Board hereby submits its Responsibility Statement:-

a. In the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. The Directors has selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the company at the end of financial year and of the profit and loss of the company for that period;

c. The Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities;

d. The Directors had prepared the annual accounts on a going concern basis; and

e. The Directors, in case of a listed company, had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively.

f. The Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.

27. DEPOSITS

The Company has neither accepted nor renewed any deposits during the year under review.

28. DECLARATION OF INDEPENDENT DIRECTORS

The Independent Directors have submitted their disclosures to the Board that they fulfill all the requirements as stipulated in Section 149(6) of the Companies Act, 2013 so as to qualify themselves to be appointed as Independent Directors under the provisions of the Companies Act, 2013 and the relevant rules.

29. DISCLOSURE OF COMPOSITION OF AUDIT COMMITTEE AND PROVIDING VIGIL MECHANISM

During the year under review, the Audit Committee consisted of the following members :

i. Shri Bhadresh Mehta

ii. Ms. S. Aparna, IAS

iii. Shri S.B. Dangayach

The above composition of the Audit Committee consisted of two independent Directors viz., Shri Bhadresh Mehta and Shri S.B. Dangayach who form the majority. The Chairman of the Audit Committee is an Independent Director.

The Company has established a Whistle Blower / Vigil Mechanism Policy. The Company has also provided adequate safeguards against victimization of employees and Directors who express their concerns. The Company has also provided direct access to the chairman of the Audit Committee on reporting issues concerning the interests of employees and the Company.

30. SHARES

30.1 BUY BACK OF SECURITIES

The Company has not bought back any of its securities during the year under review.

30.2 SWEAT EQUITY

The Company has not issued any Sweat Equity Shares during the year under review.

30.3 BONUS SHARES

No Bonus Shares were issued during the year under review.

30.4 EMPLOYEES STOCK OPTION PLAN

The Company has not provided any Stock Option Scheme to the employees.

31. DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL) Act, 2013

The Company has in place an Anti Sexual Harassment Policy in line with the requirements of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. Internal Complaints Committee (ICC) has been set up to redress complaints received regarding sexual harassment. All employees (permanent, contractual, temporary, trainees) are covered under this policy.

The following is a summary of sexual harassment complaints and received and disposed off during the year 2014 - 15:

No. of complaints received : NIL

No. of complaints disposed of : NIL

32. AWARDS AND ACCOLADES

GMDC has won prestigious National Mines Safety Award for its Panandhro and Mata no Madh Lignite Mine for the year 2012 and for its Gadhsisa Bauxite Mine for the year 2013.

GMDC also won India GeoSpatial Award for application of GeoSpatial Technology Application in Mineral Exploration

During the year under review, the General Manager (Finance) and CFO, Shri L. Kulshreshtha was awarded the National Best CFO Award by Business Today-YES Bank in the "PSU-Medium" category and he was also honored with a special recognition and appreciation of valued contribution at the highest financial management level in the industry, by the Institute of Chartered Accountants of India.

During the year under review, the General Manager (Accounts), Shri Pawan Bhootra was awarded a Young Achiever Award by Institute of Cost Accountants of India.

33. CONSOLIDATED FINANCIAL STATEMENT

The Consolidated Financial Statements of the Company have been prepared in accordance with relevant Accounting Standards (AS) viz. AS 21, AS 23 and AS 27 issued by the Institute of Chartered Accountants of India form part of this Annual Report. Further, a statement containing salient features of the Financial Statement of Subsidiaries / Associate Companies / Joint Ventures in the prescribed format AOC - 1 is given at Annexure VII.

34. BOARD-OF-DIRECTORS

During the Year, Shri Atanu Chakraborty, IAS was appointed as Chairman vice Shri D.J. Pandian, IAS. Subsequently Shri Arvind Agarwal, IAS was appointed as Chairman vice Shri Atanu Chakraborty.

During the year, your company appointed Shri Nitin Shukla and Shri S.B. Dangayach as Additional Independent Directors.

Shri B.B. Swain, IAS was appointed as Managing Director vice Shri D.J. Pandian, IAS. Shri Manoj Aggarwal, IAS was appointed as Managing Director vice Shri B.B. Swain, IAS, after the end of financial year.

Shri P.K. Gera, IAS has been appointed as Managing Director vice Shri Manoj Aggarwal, IAS, after the end of financial year.

Smt. Sonal Mishra, IAS has been appointed as Director in view of the resignation of Ms S Aparna, IAS due to her transfer.

35. CORPORATE GOVERNANCE

As per Clause 49 of the Listing Agreement with the various Stock Exchanges, the detailed report on the Corporate Governance is given in Annexure VIII.

36. MANAGEMENT DISCUSSION AND ANALYSIS

As per Clause 49 of the Listing Agreement with the various Stock Exchanges, Management Discussion and Analysis is given at Annexure IX and form part of this report.

37. CORPORATE SOCIAL RESPONSIBILITY AND CSR POLICY

The Company, since its inception, has cultivated a culture of inclusive development. Being a public sector undertaking of the state, GMDC has been mandated for Socio Economic development of the state through development of mineral resources. Keeping in line with this mandate of the government, GMDC has provided a holistic framework for reaching out to grass root level in some of the remotest regions of the state. GMDC has continued its initiatives, for including the community surrounding its various project areas in the main stream development. The focus areas of the company for a holistic development of rural and remote areas of the state have been water conservation, water infrastructure, rural infrastructure, micro irrigation, health, sanitation, education, women empowerment, livelihood enhancement interventions and community development initiatives. Education has been a focus area for GMDC. With continuous efforts by GMDC over a period of more than five decades, fruits of development have reached to the interior rural areas of Kutch region and Southern tribal belt of the state. Community of this region has been immensely benefited by the constant developmental initiatives by GMDC. Keeping in view the legal mandate of CSR, GMDC has also charted out a holistic CSR Policy for providing further Strategic CSR inputs in and around its project areas. The CSR Policy is also uploaded on the website of GMDC. The CSR Policy framework of the company is available elsewhere in this annual report. A CSR Report for Fiscal 2014 - 15 as prescribed under Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social Responsibility) Rules, 2014, forms part of this Report, and is annexed at Annexure X.

38. BEYOND MINING : INITIATIVES OF GMDC THROUGH VARIOUS CENTRES OF EXCELLENCE

38.1 International Centre of Excellence in Mining Safety & Automation (iCEM) :

The company has taken an initiative to establish International Centre of Excellence in Mining Safety & Automation (iCEM) at Dev Dholera village in the district of Ahmedabad, Gujarat (India) with an objective to be recognized as the distinguished global collaborator to the Mining industry in the fields of Skill Development and Corporate Training, Demonstration of Technology and Best Practices, Education and Training, Research and Development, Incubation, and Entrepreneurship through continued innovation and excellence in mining, mineral development and facilitating industrial development in joint ventures with Industry and Academic Partners. The Campus of this centre is under construction stage at village Dev Dholera, Ta. Bavla, Dist. Ahmedabad.

38.2 International Stone Research Centre (ISRC):

Government of Gujarat has set up International Stone Research Centre (ISRC) with an objective to nurture and support the Stone Industry by bringing National and International Best Practices through Skill Formation, Development, Upgradation, Research & Development, and Incubation and Entrepreneurship Development. ISRC has been set up through Gujarat Mineral Research and Development Society (GMRDS), Gujarat Mineral Development Corporation (GMDC) Ltd., Gujarat Industries Power Company Ltd. (GIPCL), and Stone Technology Centre (STC) as Industries Partners and Internationale Marmi E Macchine (IMM) Carrara S.P.A, Italy as International Knowledge Partner under the Centre of Excellence Scheme of Industries & Mines Department, Government of Gujarat. A section 8 company, namely, Stone Research Foundation, is formed with the following equity proportion:

Gujarat Mineral Development Corporation Ltd. : 37.5%

Gujarat Industries Power Company Limited : 37.5%

Stone Technology Center : 25.0%

38.3 International Centre for Entrepreneurship & Technology (iCreate) :

Gujarat Mineral Development Corporation Limited (GMDC) and Gujarat Entrepreneurship and Venture Promotion Foundation (GEVPF) have entered into an agreement and formed a Section-25 Company named as Gujarat Foundation for Entrepreneurial Excellence (GFEE) on a PPP model which in turn has set up an International Centre for Entrepreneurship and Technology (ICREATE). The Centre is guided by an advisory board led by Shri N.R. Narayana Murthy. Construction of campus has been started at Dev Dholera village in the district of Ahmedabad, Gujarat (India)

39. ACKNOWLEDGEMENT

Your Directors are pleased to place on record their deep appreciation for the sincere services and co-operation extended by the officers, employees and workmen of the Company at all levels. They also wish to place on record their gratitude for the confidence placed in them by financial institutions and investors. Further, your Directors wish to thank various departments of the Central Government viz. the Ministry of Environment and Forest, Ministry of Coal, Ministry of Mines and various bodies of State Government of Gujarat viz. Industries & Mines Department, the Finance Department, Commissionerate of Geology and Mining and Gujarat State Pollution Control Board. The Directors also extend their heartiest thanks to the esteemed customers and shareholders of the Corporation for their valued co-operation.

For and on behalf of the Board-of-Directors

P K Gera Bhadresh Mehta Managing Director Independent Director & Chairman of Audit Committee

Date : 10th August, 2015 Place : Ahmedabad.


Mar 31, 2014

Dear Members,

The Directors have pleasure in presenting 51st Annual Report along with the audited accounts of your Corporation for the financial year 2013-2014. Our profit after tax for the year is Rs. 43,913 lakhs as against Rs. 60,084 lakhs last year.

Financial Results 2013-14 2012-13 (Rs. In lakhs) (Rs. In lakhs)

Operating profit 75,415 1,04,145

Less: Interest - -

Profit after interest, but Before depreciation 75,415 1,04,145

Less: Depreciation 12,456 11,738

Profit before tax & exceptional items 62,959 92,407

Less: Exceptional items - 2,038

Profit before tax 62,959 90,369

Less: Provision for tax for the year including deferred tax 19,046 30,285

Net profit after tax 43,913 60,084

Add: Balance of Profit brought forward 24,565 15,642

Less:Excess/Short provision of Deferred tax liability (net) - -

Profit available for appropriation 68,478 75,726

Less: Appropriations

(i) Proposed Dividend 9,540 9,540

(ii) Corporate tax on dividend 1,621 1,621

(iii) General Reserve 25,000 40,000

Balance carried to Balance Sheet 32,317 24,565

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to the requirement under section 217(2AA) of the Companies Act, 1956 with respect to Directors'' Responsibility Statement, it is hereby confirmed that :

(1) in the preparation of the accounts for the financial year ended 31st March, 2014, the applicable accounting standards have been followed along with proper explanation relating to material departures.

(2) the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that were 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 profit or loss of the Company for the year under review.

(3) the Directors have taken proper and sufficient care for the maintenance of 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 fraud and other irregularities.

(4) the Directors have prepared the accounts for the financial year ended 31st March, 2014 on a Going Concern Basis.

DIVIDEND

Your Directors have pleasure to recommend a dividend of 150% i.e. Rs. 3/- per share on equity shares. An amount of Rs. 9,540 lakhs on equity share capital of Rs. 6,360 lakhs shall be paid as dividend.

CONTRIBUTION TO STATE AND CENTRAL EXCHEQUER:

The Company has contributed to the State Exchequer an amount of Rs. 29,718.53 lakhs including Royalty of Rs. 6,074.55 lakhs and Sales Tax of Rs. 23,643.98 lakhs.

The contribution to Central Exchequer was an amount of Rs. 19,045.59 lakhs as Income tax, Rs. 5,440.77 lakhs as Central Excise and Rs. 4,206.17 lakhs as Clean Energy Cess.

SHARE CAPITAL

During the year under review the issued, subscribed and paid- up share capital remained constant at Rs. 63.60 Crores divided into 31,80,00,000 equity shares of Rs. 2 each.

FINANCE AND TAXATION

Income Tax assessment of the Corporation has been completed up to the Financial Year 2010-11 and the Sales Tax assessment has been completed up to the Financial Year 2009-10.

INTERNAL AUDIT

M/s. T.R.Chadha & Co. and M/s Dhirubhai Shah & Doshi, Chartered Accountants were appointed as Internal Auditor of the Company for the year 2013-14.

STATUTORY AUDIT

M/s. H.K. Shah & Co., Chartered Accountants were appointed as Statutory Auditors of the Company by the Comptroller & Auditor General of India for the year 2013-14.

COST AUDIT

M/s N.D. Birla & Co. were appointed as Cost Auditors of the Company for the year 2013-14. The Cost Audit Report was filed on 26-9-2013 for the Financial Year 2012-13.

REVIEW OF THE OPERATIONS

During the year, your Corporation operated five lignite mines, namely, Panandhro, Mata-No-Madh, Rajpardi, Tadkeshwar and Bhavnagar Lignite Mines. Inspite of stiff competition from alternate fuels such as petcoke and imported coal, the total lignite sales were sustained and during the year 2013-14, 83.98 lakhs MT of lignite were produced from these mines. The mine-wise production figures are as follows :

Sr. Name of mine Lignite production No. in lakhs MT

1 Panandhro 26.74

2 Mata-No-Madh 30.03

3 Tadkeshwar 10.78

4 Rajpardi 05.77

5 Bhavnagar 10.66

Total 83.98

FLUORSPAR PROJECT, KADIPANI (DIST. VADODARA)

GMDC along with M/s. Gujarat Fluoro Chemicals Limited and M/s Navin Fluorine Chemicals Limited is setting up fluorspar beneficiation project, a single largest project of 40,000 MTPA capacity at Kadipani. For selection of suitable technology, core samples has been analysed at China. Further course of action for selection of technology is under process.

BAUXITE

During the year under review, the Gadhsisa Group of bauxite mine has produced 5,520 M.T. of ( ) 52% Al2O3 bauxite and 2,08,166 MT of (-) 52% Al2O3 bauxite.

During the year under review, the Gadhsisa Group of mines sold 21,185 MT of ( ) 52% Al2O3 and 97,614 MT of (-) 52% Al2O3 along with 75,547 MT of mine dust.

MANGANESE

During the period 2013-14, Corporation has disposed of 25,534 MT of manganese Ore Waste dump lying at Pani area of Panchmahal district.

MEWASA BAUXITE PROJECT, MEWASA

GMDC has obtained National Wildlife Board-New Delhi clearance and also entered into lease deed agreement with District Collector for Mewasa bauxite project. The commencement of mining activities at Mewasa bauxite mine is expected soon.

POWER PROJECT - NANI CHHER

During the year under review, the total generation of Akrimota Thermal Power Station was 985 MUs. The power project generated the revenue ofRs. 172.60 Crores. During the year, this project generated loss ofRs. 10.44 crores.

WIND FARM

Your directors are pleased to inform you that Wind Farms with a capacity of 50.4 MW were progressively commissioned by 31.08.2013. The total Wind farm capacity as on date is 150.9 MWand it earned revenue ofRs. 99.90 crores.

SOLAR POWER

During the year, the total generation of 5 MW Solar Power Plant was 8.40 MUs. The Solar Project generated the revenue of Rs. 12.40 crores.

BRIEF ABOUT VARIOUS CENTRES OF EXCELLENCE RUN BY GMDC

International Centre of Excellence in Mining Safety & Automation (iCEM):

Your company has taken an initiative to establish International Centre of Excellence in Mining Safety & Automation (iCEM) at Dev Dholera village in the district of Ahmedabad, Gujarat (India) with an objective to be recognized as the distinguished global collaborator to the Mining industry in the fields of Skill Development and Corporate Training, Demonstration of Technology and Best Practices, Education and Training, Research and Development, Incubation, and Entrepreneurship through continued innovation and excellence in mining, mineral development and facilitating industrial development in joint ventures with Industry and Academic Partners.

International Stone Research Centre (ISRC):

Your company has taken an initiative to establish International Stone Research Centre (ISRC) at Ambaji in the district of Banaskantha, Gujarat (India) with an objective to nurture and support the Stone Industry by bringing National and International Best Practices through Skill Formation, Development, Upgradation, Research & Development, and Incubation and Entrepreneurship Development. ISRC will be set up by GoG through Gujarat Mineral Research and Development Society (GMRDS), Gujarat Mineral Development Corporation Ltd. (GMDC), Gujarat Industries Power Company Ltd. (GIPCL), and Stone Technology Centre (STC) as Industry Partners and Internationale Marmi E Macchine (IMM) Carrara S.P.A, Italy as International Knowledge Partner under the Centre of Excellence Scheme of Industry & Mines Dept., GoG.

International Centre for Entrepreneurship & Technology (iCreate):

Gujarat Mineral Development Corporation Limited (GMDC) and Gujarat Entrepreneurship and Venture Promotion Foundation (GEVPF) have entered into an agreement and formed a Section-25 Company named as Gujarat Foundation for Entrepreneurial Excellence (GFEE) on a PPP model which in turn will set up an International Centre for Entrepreneurship and Technology (ICREATE). The Centre is guided by an advisory board led by Shri N.R. Narayana Murthy. Construction of campus started at Dev Dholera village in the district of Ahmedabad, Gujarat (India)

The Centre will identify, nurture, mentor and grow the spirit of entrepreneurship and innovation amongst the youth. The Centre is an independent centre and will facilitate "Next Generation Entrepreneurship" that blends creativity, innovation, engineering, product design and leverages emerging technologies to evolve out-of-the-box applications.

NEW PROJECTS AND SCHEMES OF THE CORPORATION

1. Gujarat Jaypee Cement & Infrastructure Limited

GMDC formed Joint Venture with M/s. Jaypee Associates Limited for setting up of 2.4 million TPA of Cement project based on limestone supply from GMDC. The land required for the project has been identified and application made to concerned department for allocation. Allocation order is awaited. Further progress will take only after allocation of land is made.

2. Gujarat Gokul Power Company Limited

GMDC formed J.V. with M/s. Gujarat Refoils & Solvents Limited for setting up of 125 MW Power Project based on lignite supply from GMDC. The land required for the project has been acquired. Project related activities have started and some of Govt. clearances have also been received.

3. Bhavnagar Energy Company Limited

GMDC along with seven other PSUs formed a JV Company for setting up of 500 MW Power Generation plant based on the lignite to be supplied from 3 lignite mines of GPCL. A tripartite agreement among GMDC, GPCL and BECL has been executed on 31.03.2012. As per the terms of this Agreement, GMDC has been entrusted the work of MDO to develop the project. 1st Unit will be commissioned by Financial Year 2014-15.

4. Gujarat State Mining & Resources Corporation Limited

GMDC along with M/s. Sunflag Iron & Steel Company Limited, has formed a JVC to acquire coking coal blocks to be allocated under Govt. dispensation route for setting up of Coke Oven Plant in Gujarat. List of coal blocks to be allocated by Govt. of India, has not been notified as yet. After such a list is notified, application shall be made for identified blocks for allocation. Further progress in the project for setting up of Coke Oven plant depends on coal blocks allocation.

5. Naini Coal Company Limited

GMDC alongwith Pondicherry Industrial Promotion Development & Investment Corporation Limited (PIPDICL) set up a JVC to develop the Naini Coal Block allocated jointly to GMDC and PIPDICL by Govt. of India, in the ratio of 50:50 coal reserves of the block. Geological report has been prepared by CMPDIL. Due to slow progress, MOC, Government of India, deallocated coal block. The company filed writ petition in the Hon''ble High Court. The case has been transferred to Supreme Court. Final decision is awaited.

6. RBG Mineral Industries Limited

GMDC, Rajasthan State Mines & Minerals Development Corporation and M/s. Binani Industries Limited have formed a JVC to a 2000 TPD Beneficiation plant for lead, zinc and copper based on lease of Ambaji, Deri and Basantgadh. As per the detailed Project Report prepared by M/s. SRK Consultants of USA, the project is economically viable. The valuation of mineral assets of Ambaji was carried out through IBM Nagpur. The project is under valuation stage.

7. Gujarat Credo Mineral Industries Limited

GMDC along with M/s. Credo Mineral Industries Limited formed a JV to set up Zeolite, Proppants and low grade bauxite beneficiation project based on bauxite supply from GMDC. The land required for the project has been purchased near our Naredi mines and all Govt. clearances required for implementation of the project have been obtained. The project for Beneficiation of low grade bauxite (phase-I) has been commissioned. During the year 2013-14, the JV company has sold beneficiated materials worth of Rs. 16.00 crores.

8. Alumina & Aluminium Smelter

GMDC identified M/s. National Aluminium Company Limited (NALCO), a Govt. of India Navratna Company to set up Alumina and Aluminium Smelter plant in Kutch District based on the bauxite to be supplied by GMDC. The proposal for equity participation of GMDC in the JVC has been approved by Government of Gujarat. The part of land has been acquired and acquisition of the remaining land is under process. The same shall be acquired soon. Detailed Project Report received from NALCO is under our scrutiny.

9. Speciality Alumina Chemicals

GMDC along with M/s. Alumina Refinery Pvt. Ltd. is setting up a project for Speciality Aluminium Chemicals plant in Kutch based on the bauxite to be supplied by GMDC from Kutch. Land required for the project has already been obtained and most of Govt. clearances have also been obtained. Commissioning of the project is in advanced stage and project is expected to start working shortly.

ENVIRONMENT PROGRAMME

Being a mining industry, GMDC is well concerned with surrounding environment and doing its best towards environment protection. Environmental protection is one of our prime objectives and to minimize the negative impacts of mining operations, GMDC has adopted all environmental measures to control Air, Water, Noise & Land pollution etc. Our projects are certified under ISO 9001, ISO 14001 & OHSAS 18001.

Towards environment protection, this year GMDC has planted total 2.42 Lakhs plant saplings covering 102.94 hectares of area. Grassland has developed in 15.5 hectares of area. Micro drip irrigation system has installed in 26.84 hectares of area.

Further GMDC has established a plant nursery at its Mata No Madh Lignite Project, Kutch for their in-house consumption as well as for distribution to nearby GMDC''s projects. Stabilization of non active permanent overburden dumps (1 Lakh Square Meters Area) has done through geo coir mat & thereafter grass development in all lignite projects of GMDC.

Production capacity expansion from 3MTPA to 5MTPA at Surkha (N) Lignite Project, Bhavnagar has initiated. Preparation of EIA-EMP report has completed and further Public Hearing also has conducted. NOC and CCA of various projects have achieved and/or renewed well within time. As per the requirement of MoEF EC and GPCB CCA, environmental monitoring is being done in-house as well as through MoEF/GPCB approved laboratory to measure the operational impact on environment and further corrective measures, if required. Annual Environmental Audit of all GMDC projects is being done by GPCB approved Schedule I Auditor and reports are submitted to GPCB within stipulated time. GMDC set a benchmark by conducting Energy & Water Audit along with Carbon Foot printing of all its projects through approved and qualified external auditors. To create environmental awareness among all employees and surrounding communities including schools, various environmental awareness programs have conducted including celebration of World Environment Day and Van Mahotsav in various GMDC projects.

INDUSTRIAL RELATIONS, HEALTH AND SAFETY

The relations between your Company and its employees continued to be cordial throughout the year. GMDC''s commitment to the health and safety of project staff and inhabitants within the surrounding areas of mines through our efforts at providing :

1. Well equipped and staffed dispensaries at Panandhro, Rajpardi, Kadipani and at Akrimota Power Project.

2. Ambulance Vans to Taluka Panchayats of Kutch.

3. Uniforms as well as ISI & DGMS approved safety shoes, helmets and devices as per the provisions of the Mines Act.

INCLUSIVE DEVELOPMENT

Your Company has since inception imbibed the philosophy of inclusive development, wherever it has its areas of operations. During the year under review, your Company has carried out various developmental initiatives to reach out to the local community in order to augment their standard of living. Your Corporation targets the rural health and sanitation, agriculture and micro irrigation, education and rural infrastructure. Mobile dispensaries at various projects provide much needed critical health care to the remotest villages. Not only these, the hospitals at select projects provide health care facilities to both employees and to the community of surrounding villages. Various rural infrastructures such as roads, solar street lights, community halls, sewerage systems, water tanks, RO Plants are provided in the villages surrounding the project areas. In order to promote higher education amongst the rural girl child, your Company has provided a special scholarship scheme to the eligible girl students for core zone villages. With the recognition of CSR under the new Company Law regime, CSR has emerged as a strategic area of operations and your company is committed to further this CSR mandate in a planned and systematic manner.

PARTICULARS OF EMPLOYEES

No employee was in receipt of emoluments in excess of Rs. 5,00,000 per month or Rs. 60,00,000 per annum during the year under review.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

Additional information on conservation of energy, technology absorption, foreign exchange earnings and outgo as required by the Companies(Disclosure of particulars in the report of Board of Directors) Rules, 1988 is annexed as Annexure-I and forms part of this report.

BOARD-OF-DIRECTORS

During the year under review, the Government of Gujarat had given additional charge of Managing Director, GMDC to Shri Pankaj Kumar, IAS, vice Shri B.B. Swain, IAS.

CORPORATE GOVERNANCE

As per Clause 49 of the Listing Agreement with the various Stock Exchanges, the detailed report on the Corporate Governance is given in Annexure-II.

ACKNOWLEDGEMENT

Your Directors are pleased to place on record their deep appreciation for the sincere services and co-operation extended by the officers, employees and workmen of the Corporation at all levels. They also wish to place on record their gratitude for the confidence placed in them by financial institutions and investors. Further, your Directors wish to thank various departments of the Central Government viz. the Ministry of Environment and Forest, Ministry of Coal, Ministry of Mines and various bodies of State Government of Gujarat viz. Industries & Mines Department, the Finance Department, Commissionerate of Geology and Mining and Gujarat State Pollution Control Board. The Directors also extend their heartiest thanks to the esteemed customers and shareholders of the Corporation for their valued co-operation.

For and on behalf of the Board-of-Directors

D.J.Pandian

Chairman

Date : 13.08.2014 Place : Gandhinagar


Mar 31, 2013

To The Shareholders of Gujarat Mineral Development Corporation Limited

The Directors have pleasure in presenting the 50th Annual Report along with the audited accounts of your Company for the financial year 2012-2013. Our profit after tax for the year is Rs. 60,084 lakhs as against the Rs. 48,683 lakhs of last year.

Financial Results 2012-13 2011-12 (Rs. in lakhs) (Rs. in lakhs)

Operating profit 1,04,145 83,348

Less: Interest - 745

Profit after interest, but before depreciation 1,04,145 82,603

Less: Depreciation 11,738 10,833

Profit before tax & exceptional items 92,407 71,770

Less: Exceptional items 2,038 -

Profit before tax 90,369 71,770

Less: Provision for tax for the year including deferred tax 30,285 23,087

Net profit after tax 60,084 48,683

Add: Balance of Profit brought forward 15,642 13,047

Less: Excess/Short provision of deferred tax liability (net) - -

Profit available for appropriation 75,726 61,730

Less: Appropriations

(i) Proposed dividend 9,540 9,540

(ii) Corporate tax on dividend 1,621 1,548

(iii) General Reserve 40,000 35,000

Balance carried to Balance Sheet 24,565 15,642

DIRECTORS'' RESPONSIBILITY STATEMENT

Pursuant to the requirement under section 217 (2AA) of the Companies Act, 1956, with respect to Directors'' Responsibility Statement, it is hereby confirmed that:

(1) In the preparation of the accounts for the financial year ended 31st March, 2013, applicable accounting standards have been followed along with proper explanation relating to material departures.

(2) The Directors have selected such accounting policies and applied them consistently and made judgments and estimates that were 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 profit or loss of the Company for the year under review.

(3) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and fc preventing and detecting fraud and other irregularities.

(4) The Directors have prepared the accounts for the financi: year ended 31st March, 2013 on a Going Concern basis. DIVIDEND

Your Directors have pleasure to recommend a dividend of 150°/ i.e. Rs. 3/- per share on equity shares. An amount of Rs. 9,540 lakhs oi equity share capital of Rs. 6,360 lacs shall be paid as dividend.

CONTRIBUTION TO STATE EXCHEQUER:

The Company has contributed to the State Exchequer an amoun of Rs. 41,511.03 lakhs including Royalty of Rs. 8,633.38 lakhs anc Sales Tax of Rs. 32,877.65 lakhs.

SHARE CAPITAL

During the year under review, the issued, subscribed and paid-up share capital remained constant at Rs. 63.60 crores divided into 31,80,00,000 equity shares of Rs. 2 each.

FINANCE AND TAXATION

Income Tax assessment of the Company has been completed up to the Financial Year 2009-10 and the Sales Tax assessment has been completed up to the Financial Year 2008-09.

INTERNAL AUDIT

M/s. Pipara & Co. and M/s. R. S. Patel & Co., Chartered Accountants, were appointed as Internal Auditor of the Company for the year 2012-13.

STATUTORY AUDIT

M/s. P. Singhvi & Associates, Chartered Accountants, were appointed Statutory Auditors of the Company by the Comptroller & Auditor General of India for the year 2012-13.

COST AUDIT

M/s N.D. Birla & Co., were appointed as Cost Auditors in respect of Akrimota Thermal Power Station for the year 2012-13.

REVIEW OF OPERATIONS

The State Government incorporated GMDC with a clear mandate to develop the mineral resources of the state to add to the overall growth chain of the economy. From its humble beginnings with a small silica sand plant to the present day status of mining mammoth, GMDC''s success trajectory has grown in tandem with the State''s progress.

Lignite is the predominant mineral product of GMDC. A staggering 80% of our revenue comes from the mining operations of lignite mines which are spread across the state. Our lignite mines have proved to be invaluable in fuelling the growth of the state economy. As the sole merchant seller of lignite in India, we have a special policy for small and medium enterprises to supply lignite, thereby boosting the growth of this very important segment of the overall economy. Crucially, the mines have proved to be hubs for both direct and indirect employment, bringing some of Gujarat''s remotest regions into the mainstream of development.

The following chart gives a glimpse of the lignite production of GMDC.

(Production in Million MT)

Mines/Year 2012-13 2011-12 2010-11 2009-10 2008-09

Panandhro 2.85 2.60 2.70 2.84 3.62

Mata no Madh 3.30 3.58 3.70 2.89 2.21

Rajpardi 0.92 0.85 1.08 0.96 0.97

Tadkeshwar 1.91 2.21 1.89 1.05 0.93

Bhavnagar 1.92 2.10 0.86 0.65 0.38

Total 10.90 11.34 10.23 8.38 8.11

GMDC sustained its lignite production of 10.90 Million MT during the year 2012-13 as againest 11.34 Million MT during the year 2011-12.

GMDC also runs a 2 x 125 MW power plant at Akrimota village in Kutch District, which is fed lignite mined from our mines in Panandhro. This power plant employs the Circulating Fluidized Bed Combustion (CFBC) technology, which was pioneered by GMDC in the State. The power generated from this plant is supplied into the state grid. In addition to this, the Panandhro Lignite mines also supply Lignite at subsidised rates to the State Power Utility GSECL''s power plant (Kutch Lignite Thermal Power Station), thus doing its bit to meet the State''s power needs.

Bauxite is another major mineral resource that GMDC deals with. Our Bauxite operations are currently concentrated at the Gadhsisa Group of Mines in Kutch District. Bauxite is the raw material for Alumina, a vital raw material for the manufacture of Aluminium.

This group of mines supplies Bauxite to various manufacturers, including one of India''s biggest alumina refineries on the eastern coast of the country. This critical supply of Bauxite has triggered interest in various private sector players for setting up Bauxite based value addition projects in collaboration with GMDC.

Fluorspar, the mother project of GMDC is now set to be revamped in a joint venture under public private partnership mode. The project is undergoing a total spin off under this business model.

A recent venture, Wind Power, is a non-conventional segment, both to GMDC and to Power Generation in the country. We are all set to achieve the 150 MW target of wind power installation. With this, GMDC has set a new benchmark for any mining player across the nation.

Recycling the mined out land areas, GMDC has set up a very innovative and unique 5 MW solar power project at Panandhro Lignite Mines. The power plant is set up on mined out reclaimed areas, thus doubling up the benefits of the same land resource.

Acknowledging our stringent commitment to the Environment, the Standing Committee on National Board for Wildlife has cleared the Umarsar lignite mine in Kutch, having 1 million TPA capacity, as well as Mewasa Bauxite Mine in Jamnagar. This year we also achieved 1 lakh meter drilling exploration of Lignite, Bauxite, Limestone & Manganese minerals.

GMDC''s commitment to its goal of technological advancement in 2013-14 began with the signing of MOU for setting up of an International Centre of Excellence in Mining, Safety and Automation. This was signed at the Vibrant Gujarat Global Investors Summit (VGGIS) earlier in 2013.

GMDC is the only State PSU which has given a nonstop profit performance since its inception. If the figures of last five years are looked at, the profit performance of GMDC has set newer benchmarks year on year. The Company booked a record profit after tax of Rs. 600.84 crores for the year 2012-13, the highest ever in its corporate history. With this exemplary performance, GMDC has also been a precursor in wealth creation for both the State and investors.

GMDC has been feted year on year for its path breaking work and commitment to excellence. This year, Enterprise Resource Planning (ERP) system has been successfully implemented. Your company has been conferred with various awards:

- Gold CIO award from Cyber Media

- National award for E-Governance 2012-13 from Department of Public Reforms and Grievances, Govt, of India

- President Award on "National Mines Safety" conferred on Mata- No-Madh Lignite mine consecutively for two years i.e. 2009 and 2010 (award received on 21.11.2012).

ENVIRONMENT PROGRAMME

GMDC is committed to contributing, in accordance with its capacity, to the global endeavour of environmental protection, including protection of air and water quality, conservation of resources and protection of biodiversity, waste management and control of activities which have an adverse environmental impact. Towards this commitment, our activities include regular water sprinkling for dust suppression; installation and operation of electrostatic precipitators for stack emission control; sewage and effluent treatment plants for the control of water pollution; and regular noise/vibration measurement for controlling noise pollution from machines. Our commitment to the environment is furthered through our effective Environment Management System and all our projects are certified under ISO 9001, ISO 14001 & OHSAS 18001.

Wildlife Clearance has been received for Umarsar Lignite Project, Taluka Lakhpat, Dist. Kutch, Gujarat, for 1 MTPA Production Capacity as well as the Mevasa I Bauxite Project, Taluka Kalyanpur, Dist. Jamnagar, Gujarat, for 1.25 lac tonnes per Annum Production Capacity, from the Standing Committee of National Board for Wildlife (NBWL) - GOI, New Delhi, under the Wild Life Protection Act, 1972.

We have also received the Environmental Clearance for installation of Pyrite Removal Plant in Surkha (N) Lignite Mine from the Ministry of Environment & Forests (MoEF), Govt, of India, New Delhi. For approvals for the production capacity expansion of Surkha (N) Lignite Project, Bhavnagar, from 3 MTPA to 5 MTPA, a Quality Council of India - National Accreditation Board for Education and Training (QCI-NABET) approved consultant has been engaged for the study as well as preparation of an Environment Impact Assessment/Environment Management Plan (EIA/EMP) Report as per EIA notification (2006) and MoEF guidelines.

GMDC has its own Environmental Department with well qualified staff headed by Chief General Manager (IFS) at Corporate Office, Ahmedabad and by GM (Projects) at projects. For environmental activities at Corporate Office & GMDC projects, Managers, Assistant Managers & Trainee Engineer (Environment) has appointed to look after environmental management as per regulatory requirements and compliances.

For third party monitoring of environmental control measures and standards, Gujarat Pollution Control Board approved Schedule II auditor has been engaged for monthly environmental monitoring of all GMDC Projects. Additionally, under the directives of Hona''ble High Court of Gujarat, Annual Environmental Auditing work of all GMDC operational projects has been awarded to a Gujarat Pollution Control Board approved Schedule I Auditor.

For in-house environmental monitoring and analysis, an Environmental Laboratory has been installed at Tadkeshwar and

Bhavnagar Lignite Projects. All statutory returns and reports have been submitted to the regulatory agencies within the time frame as per the statutory provision. Other regular activities include video-conferencing with all Projects on environmental issues, increasing environmental awareness through celebrations such as World Environment Day and Van Mahotsav, and training to GMDC executives and workers.

GMDC has planted a total 2.61 lac seedlings through the Forest department and departmental on 117.80 ha area in the year 2012-13, which contributes for environmental protection, conservation and restoration of mined out areas. Stabilization of non active and permanent dumps through laying of Geo Coir Mat and plantation of grass as well as plants on experimental basis has been completed in around 20,000 sq mt of area divided in Tadkeshwar, Rajpardi, Bhavnagar, Panandhro & Mata No Madh Lignite Projects. Captive plantation of Eucalyptus saplings in 7.16 ha. of waste area at the Tadkeshwar Lignite Project was achieved through J.K. Paper Ltd. For environmental protection and conservation in seven surrounding villages of Kadipani Project, a contract has been awarded to Gujarat Medicinal Plants Board, Gandhinagar for restoration of medicinal plants. INDUSTRIAL RELATIONS, HEALTH AND SAFETY The relations between your Company and its employees continued to be cordial throughout the year. GMDC''s commitment to the health and safety of project staff and inhabitants within the surrounding areas of mines by continues through our efforts at providing:

1. Well equipped and staffed dispensaries at Panandhro, Rajpardi, Kadipani and at Akrimota Power Projects. There is a facility of telemedicine at select hospitals which provide state of the art techno-medical intervention.

2. Ambulance Vans to Taluka Panchayats of Kutch.

3. Uniforms as well as ISI & DGMS approved safety shoes, helmets and devices as per the provisions of the Mines Act.

SOCIALLY RESPONSIBLE AND INCLUSIVE DEVELOPMENT GMDC has always practised a culture of responsible development. We have constantly strived to reach out to the community in and around our areas of operations, many of which are situated in some of the remotest regions of the State. The community outreach programmes of your Company targets relevant areas of rural development such as health, sanitation, education, agriculture, micro irrigation, water harvesting and rural infrastructure through a participative approach. GMDC provides facilities of mobile dispensaries at various projects thus making health services accessible in these rural areas. The Micro Irrigation Scheme introduced by us in collaboration with Government implementing agencies has also been well received by the farmers'' community. During the year under review, GMDC started a three year financial assistance scheme for girl students studying in standard eight to 12, of core zone villages. As you are aware, the operations of your Company are predominantly in the areas of Kutch where water is scarce. Focussing on this requirement, we have carried out water harvesting works. Year on year, GMDC has always attempted to shoulder its Corporate Social Responsibility holistically and strategically.

PARTICULARS OF EMPLOYEES

No employee was in receipt of emoluments in excess of Rs. 2,00,000 per month or Rs. 24,00,000 per annum during the year under review.

BOARD-OF-DIRECTORS

During the year under review, the Government of Gujarat had given additional charge of Managing Director, GMDC to Shri B.B. Swain, IAS, vice Shri V.S. Gadhavi, IAS, retired. Further, after the end of Financial Year, the Government of Gujarat has given the additional charge of Managing Director, GMDC, to Shri Pankaj Kumar, IAS, vice Shri B.B. Swain, IAS.

CORPORATE GOVERNANCE

As per Clause 49 of the Listing Agreement with the various Stock Exchanges, the detailed report on the Corporate Governance is given in Annexure-ll.

ACKNOWLEDGEMENT

Your Directors are pleased to place on record their deep appreciation for the sincere services and co-operation extended by the officers, employees and workmen of the Company at all levels. They also wish to place on record their gratitude for the confidence placed in them by financial institutions and investors. Further, your Directors wish to thank various departments of the Central Government viz. the Ministry of Environment and Forest, Ministry of Coal, Ministry of Mines and various bodies of State Government of Gujarat viz. Industries & Mines Department, the Finance Department, Commissionerate of Geology and Mining and Gujarat State Pollution Control Board. The Directors also extend their heartiest thanks to the esteemed customers and shareholders of the Company for their valued co-operation.

For and on behalf of the Board-of-Directors

Sd/-

M. Sahu

Chairman

Date : 28.05.2013

Place : Gandhinagar


Mar 31, 2010

The Directors have pleasure in presenting 47th Annual Report along with the audited accounts of your Corporation for the financial year 2009-2010. Our profit after tax for the year is Rs. 27,986.88 lacs as against Rs. 23,630.61 lacs last year.

Financial Results 2009-10 2008-09

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

Operating profit 51,834.79 50,159.09

Less: Interest 2,611.23 5,390.84

Profit after interest,

but Before depreciation 49,223.56 44,768.25

Less: Depreciation 8,615.31 7,777.77

Profit for the year before tax 40,608.25 36,990.48

Less: Provision for tax for

the year including

deferred tax and fringe

benefit tax 12,621.37 13,359.87

Profit after tax 27,986.88 23,630.61

Add: Balance of profit

brought forward 12,939.98 4,739.10

Less : Short provision of deferred tax

liability (net) - 517.79

Add : Excess provision of

FBT for earlier years 1.18 49.55

Profit available for

appropriation 40,928.04 27,880.86

Less: Appropriation

(I) Proposed Dividend 7,950.00 6,360.00

(ii) Corporate tax on dividend 1,351.10 1,080.88

(iii) General Reserve 20,000.00 7,500.00

Balance carried to Balance Sheet 11,626.94 12,939.98



DIRECTORS RESPONSIBILITY STATEMENT

Pursuant to the requirement under section 217(2AA) of the Companies Act, 1956 with respect to Directors Responsibility Statement, it is hereby confirmed that :

(1) in the preparation of the accounts for the financial year ended 31st March, 2010, the applicable accounting standards have been followed along with proper explanation relating to material departures.

(2) the Directors have selected such accounting policies and applied them consistently and made judgements and estimates that were 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 profit or loss of the Company for the year under review.

(3) the Directors have taken proper and sufficient care for the maintenance of 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 fraud and other irregularities.

(4) the Directors have prepared the accounts for the financial year ended 31st March, 2010 on a going concern basis.

DIVIDEND

Your Directors have pleasure to recommend a dividend of 125 % on equity shares. An amount of Rs. 7,950 Lacs on equity share capital of Rs. 6,360 lacs shall be paid as dividend.

CONTRIBUTION TO STATE EXCHEQUER:

The Corporation has contributed to the State Exchequer an amount of Rs. 22,777 lacs including Royalty of Rs. 5,994 lacs and Sales Tax of Rs. 16,783 lacs.

SHARE CAPITAL

During the year under review the issued, subscribed and paid-up share capital remained constant at Rs. 63.60 Crores divided into 31,80,00,000 equity shares of Rs. 2 each.

FINANCE AND TAXATION

Income Tax assessment of the Corporation has been completed up to the Financial Year 2006-07 and the Sales Tax assessment has been completed up to the Financial Year 2005-06.

INTERNAL AUDIT

M/s. Sandip Desai & Company, Chartered Accountants were appointed as Internal Auditor of the Corporation for the year 2009-10.

STATUTORY AUDIT

M/s. Jain Seth & Co., Chartered Accountants were appointed Statutory Auditors of the Corporation by the Comptroller & Auditor General of India for the year 2009-10.

COST AUDIT

M/s Manish Analkat were appointed as Cost Auditors in respect of Akrimota Thermal Power Station for the year 2009- 10.

NEW MINERAL POLICY FOR LIMESTONE, LIGNITE, BAUXITE AND MANGANESE.

During the year under review, the Government of Gujarat has announced a new mineral policy for development of mineral resources in the State of Gujarat vide resolution No. MCR-102008.1868-CHH dated 18.11.2009 for limestone, Resolution No. MCR-102008.1868-CHH dated 19.11.2009 for lignite, Resolution No. MCR-102008.1868-CHH dated 19.11.2009 for bauxite and Resolution No. GMC-1006-2472- CHH dated 19.11.2009 for manganese. The new mineral policy emphasizes more on triggering mineral based industrial growth.

LIMESTONE

Limestone leases granted for trading purpose shall have to register with GMDC before supply of limestone.

The role of GMDC and Commissioner of Geology and Mining would be to over see assured mining from lease area for trading purpose as well as for requirement of Small Scale Industrial units.

LIGNITE

The lignite resources have been reserved for power generation and wherever possible, for under ground coal gasification by State PSUs or by Joint Ventures with State PSUs.

GMDC would continue to supply surplus quantity of lignite from its mines to the industries in state, in particular to small and medium industries on a long term basis in a transparent manner.

BAUXITE

All Bauxite bearing areas in the State except already granted has been reserved for GMDC.

GMDC has been made a facilitating and channelizing agency for bauxite sale and export. GMDC would become the sole supplier to bauxite users in the state for higher value addition. Export of bauxite, both plant grade and non plant grade would be carried out through GMDC. GMDC will also set up plants in JV for maximum value addition.

MANGANESE

In addition to the existing 1153 hectares reserved for GMDC, the remaining areas of manganese reserves would be granted to captive users for forming a JV with GMDC to produce value added products like MnSo4, MnO, Ferro Alloys or EMD etc.

The new mineral policy has made GMDC as a catalyst and a propeller in manganese based industries. This would open up a whole new gamut of industrial growth particularly in the under developed regions of the state.

REVIEW OF THE OPERATIONS

During the year your Corporation operated Panandhro, Mata no Madh, Rajpardi, Tadkeshwar and Bhavnagar Lignite mines. Total 83.79 Lac MT of lignite was mined during the year. The mines wise production details are tabulated hereunder :

Mines In Lac MT

Panandhro 28.38

Mata no Madh 28.87

Tadkeshwar 10.48

Rajpardi 9.55

Bhavnagar 6.51

Total 83.79

In spite of stiff competition from alternative fuels such as pet coke and imported coal, the total lignite sales was sustained.

Your Directors are pleased to inform that during the period under review, Mata no Madh and Tadkeshwar mines achieved highest ever production since their inception.

FLOURSPAR PROJECT, KADIPANI (DIST. VADODARA)

During the year, a second line was commissioned at Flourspar Plant at Kadipani. This project produced 100237 tones of fluorspar ore and 8786 M.T. of fluorspar concentrate. In order to unleash the potential of this project, it has been proposed to hive off this plant in a joint venture details of which are described elsewhere in this report.

BAUXITE

During the year under review, the Gadhsisa Group of Mines produced 89,535 M.T. High grade; 3,75,523 M.T. Low grade (<54%) bauxite and 17366 M.T. Calcined bauxite generating a revenue of Rs. 42.90 Crores. The bauxite sold was 67,910 M.T. of High grade (>54%), 2,43,154 M.T. of Low grade (<54%), 16,840 M.T. of Calcined bauxite, 1,291 M.T. of C.B. Balls and 5,925 M.T. of dust. The Bauxite, Calcined Bauxite, CB Balls, Plant dust produced was supplied to the units in the State.

MANGANESE

During the period under review, special efforts were initiated to dispose off the manganese waste dump lying at Shivrajpur mines. As a result, the GMDC generated a revenue of Rs. 83.00 Lacs (20%of total sale value) by sale of 55,090 M.T. Manganese Ore dump.

POWER PROJECT - NANI CHHER

During the year under review, the total generation of Akrimota Thermal Power Station was 1,394 MUs. The power project generated the revenue of Rs. 269.03 Crores. During the year, this project generated its maiden profit of Rs. 44 crores.

WIND FARM

Your directors are pleased to inform you that Wind Farm with a capacity of 19.5 MW was commissioned on 1.10.2009 and it earned revenue of Rs. 3.37 Crores. Your Corporation has further executed orders of installing 81 MW Wind Farm in two phases. The first phase of 40.5 MW is expected to be commissioned by September, 2010 and the next phase is expected to commence by March 2011.

NEW PROJECTS AND SCHEMES OF THE CORPORATION

UPCOMING LIGNITE MINES

Mining of lignite has been the core competence of your company since inception. Keeping the high growth trajectory, your company plans to commence Umarsar Lignite Mines, Kutch having an estimated lignite reserves of 22 million tones, Lakhpat Dhedadi Lignite and Limestone Mine, Kutch having an estimated reserves of 50 million tones and Damlai Padal Lignite Mine, Bharuch, having an estimated reserves of 19 million tones. Your Corporation has also applied for mining lease in Ghala near Surat.

The Environmental Clearance for Umarsar mines has been granted subject to clearance from Standing Committee on Wild Life of Government of India as the mines is lying in the vicinity of a protected wild life sanctuary. Efforts are under way to obtain the sanction from Wild Life so as to commence lignite production at Umarsar.

UNDERGROUND COAL GASIFICATION

Your corporation has entered in to Memorandum of Understanding with ONGC and with M/s Reliance Industries Limited for undertaking underground Coal Gasification for deep seated Lignite.

CEMENT PLANT

Your corporation has also participated in joint venture with

M/s Jay Prakash Group to set up 2.6 Million Tonnes of Cement Plant. As per the existing arrangements, the lime stone required for the Cement Plant will be supplied by GMDC. A proposal for allocation of land for this project has been submitted to Revenue department of Government of Gujarat.

COAL BLOCK DEVELOPEMNT

Your corporation has been allocated two Coal block viz. at Morga-II in Chhatisgarh and at Naini in Orissa. Your corporation has participated in joint venture with M/s Pondicherry Industrial Promotion Development and Investment Corporation (PIPDIC), Government of Pondicherry with 50 : 50 equity stake. During the year under review, a company named Naini Coal Company Limited has been incorporated. A request has been submitted to Government of Orissa for seeking permission to carry out exploration.

NEW COAL BLOCKS

In order to participate in the anticipated auction of coal blocks by Government of India, your Corporation has identified several parties in collaboration with whom, applications can be submitted for allotment of coal blocks under Government dispensation route.

80 MW POWER PROJECT WITH M/S GOKUL REFOILS AND SOLVENTS LIMITED

Your Corporation has participated in joint venture with M/s Gokul Refoils and Solvents Limited with an equity stake of 26%. A separate joint venture company has been set up for this purpose. The land required for this project has been acquired and environmental clearance for the project has been received. Negotiations are being conducted with M/s BHEL for procurement of main plant and equipments of suitable configuration for the power plant.

DOWN STREAM PROJECT BASED ON MANGANESE ORE

Your corporation has envisaged promotion of projects for value addition of Manganese Ore. For this purpose, your corporation has executed MoUs with M/s Cube Mines & Minerals Pvt. Limited and M/s Shivam Manganese & Minerals Pvt. Limited to set up Manganese beneficiation project based on Manganese waste dump.

REFRACTORIES, MONOLITHICS AND CASTABLES

Your corporation has executed an MoU with M/s TATA Refractories Limited and M/s Meena Agency to manufacture refractories and Manganese (castables) and other value added products by using bauxite.

ALUMINA PLANT

The state of Gujarat is bestowed with bauxite reserves of 137 Million Tonnes. In order to exploit this vast bauxite mineral wealth, your corporation has executed MoU for setting up two Alumina Plants - one at Kutch and other at Saurashtra region. Each plant would be of 1 Million Tonne capacity.

FLUORSPAR BENEFICIATION

As reported earlier, your Corporation has entered in to several MoUs for mineral development and value addition with various business entities. As part of these initiatives, it has

proposed to set up joint venture with M/s Gujarat Fluoro chemicals Limited and M/s Navin Fluorine International Limited with equity pattern of 50 : 50 for GMDC & GFL / NFIL.

SILICA SAND BENEFICIATION

It has been proposed to set up a Silica Sand beneficiation plant in joint venture with M/s Asahi India Glass Co. with an investment of Rs. 37.50 Crores. As per the agreement, 2.00 Lacs MT per annum capacity Silica Sand beneficiation plant will be set up. M/s Asahi India Glass Co. will consume 1.00 Lac MT per annum and the remaining 1.00 Lac MT per annum will be made available to GMDC for sale. The operation and maintenance of the plant will be carried out by M/s Asahi India Glass Co.

SPECIALITY ALUMINA CHEMICALS

It has been proposed to set up Speciality Alumina Chemicals Plant in Gujarat based on the raw materials (Bauxite) to be supplied by GMDC with an investment of Rs. 30.00 Crores.

BROWN FUSE ALUMINA - TABULAR ALUMINA

Your Corporation has entered in to two MoUs to set up Brown Fuse Alumina - Tabular Alumina plant based on Bauxite.

INTEGRATED COKE OVEN PLANT

During the period under review, joint venture has been set up in collaboration with M/s Sunflag Iron & Steel Co. Limited with equity pattern of 51:49. A separate company namely Gujarat State Min. & Resources Corporation Limited has been incorporated for this purpose.

MULTI METAL PROJECT, AMBAJI

Your corporation has entered in to an MoU with M/s Binani Zinc Limited and M/s Rajasthan State Mines Mineral Development Corporation for setting up beneficiation plant with a capacity of 2000 tonnes per day based on the deposits of Ambaji Deri and Basant Gadh, with a approximate project cost of Rs. 239.11 Crores. The proposed Equity investment is GMDC - 25%, Binani-65% and RSMMDC-10%.

ENVIRONMENT PROGRAMME

Environmental Clearance is prerequisite for starting any new project or expansion of an existing project. This involves obtaining terms of reference conducting public hearing and then environmental clearance is obtained from Ministry of Environment and Forests New Delhi. Company has obtained environmental clearance for Umarsar lignite mines in 2186- 76 ha. area. Being close to Narayan Sarovar Wildlife Sanctuary, the proposal is now submitted for the approval of Steering Committee of Wildlife.

Company has conducted public hearing for Mevasa -1 bauxite mine, capacity expansion of Amod, Tadkeshwar and Mata No Madh lignite mines and the proposal has been submitted to the Ministry of Environment & Forest, GOI, and New Delhi for environmental clearance. Proposal of Forestry clearance for drilling is submitted to the Ministry of Environment & Forest, GOI, New Delhi. Your company has taken up plantation through Forest department and departmentally on 201.0 ha area in the year 2009-10.

Your company is well concerned with the environmental protection and takes appropriate preventive and curative measures to maintain environment. For control of pollution and environmental protection, your Company is following an effective environment management system at all its projects with regular water sprinkling for dust suppression, electrostatic precipitator for stack dust emission, sewage and Effluent Treatment Plants for the control of water pollution and regular vibration measurement for controlling noise pollution from machines.

In addition to above, your company has intensified environmental protection measures by way of reclamation of mined out area by backfilling and Afforestation, plantation on overburden dump, virgin area and roadside through inhouse sources as well as through Forest department. Company has its own environmental department at Corporate Office headed by Chief General Manager. Your company is regularly monitoring polluting parameters internally as well as through external agencies and maintaining the environmental control measures and standards very effectively.

Environment audit is conducted by an external agency recognized by the Gujarat Pollution Control Board regularly and the Environmental Audit Report is submitted to Gujarat Pollution Control Board.

INDUSTRIAL RELATIONS, HEALTH AND SAFETY

The relations between Corporation and its employees continued to be cordial throughout the year. Corporation continued to take care of the health and safety of project staff and inhabitants within the surrounding areas of mines by providing :

1. Well equipped and staffed dispensaries at Panandhro, Rajpardi, Kadipani and at Akrimota Power Projects. There is a facility of telemedicine at select hospitals which provide state of the art techno-medical intervention.

2. Ambulance Vans to Taluka Panchayats of Kutchh.

3. Mobile van visiting all villages of Lakhpat Taluka twice every week.

4. Uniform, ISI & DGMS approved safety shoes helmets and all safety devices as per the provisions of the Mines Act.

SOCIALLY RESPONSIBLE AND INCLUSIVE DEVELOPMENT

Your Corporation has wedded to a sensitive C.S.R. policy. It has been sensitive towards various stake holders attached to it at various platform whether they are people residing in surrounding places at its different project areas situated in remotest part of the State, be they investors, consumers or industry at large. Your Corporation has tried to meet the expectation of various sections of the society by reaching out to them, be it in the form of providing rural infrastructure in the field of water, sanitation, education, employment and livelihood, micro irrigation or be it continuous fuel supply to small and medium scale enterprises or be it generous dividend payout policy.

During the year under review, your corporation made special efforts to further strengthen its reach to weaker sections of the society in and around its project areas. It is imperative to note that CSR has acquired immense importance while getting sanction of environmental clearances. In view of this, your Corporation has charted out a focussed and holistic strategy to usher in developmental impacts in mineral bearing villages. This would also result in harmonious relationship with the society at large. These initiatives would also result in an all-round inclusive growth.

PARTICULARS OF EMPLOYEES

No employee was in receipt of emoluments in excess of Rs.2,00,000 per month or Rs.24,00,000 per annum during the year under review.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

Additional information on conservation of energy, technology absorption, foreign exchange earnings and outgo as required by the Companies (Disclosure of particulars in the report of Board of Directors) Rules, 1988 is annexed at Annexure-I and forms part of this report.

BOARD-OF-DIRECTORS

Shri M Sahu, IAS was appointed as Director and Chairman of your Company vice Smt. Gauri Kumar IAS. Shri V S Gadhavi, IAS was appointed as Managing Director vice Smt. V L Joshi, IAS, Managing Director. Shri Atanu Chakraborty has been appointed as Director in place of Shri Tapan Ray, IAS.

CORPORATE GOVERNANCE

As per Clause 49 of the Listing Agreement with the various Stock Exchanges, the detailed report on the Corporate Governance is given in Annexure-II.

ACKNOWLEDGEMENT

Your Directors are pleased to place on record their deep appreciation for the sincere services and co-operation extended by the officers, employees and workmen of the Corporation at all levels. They also wish to place on record their gratitude for the confidence placed in them by financial institutions and investors. Further, your Directors wish to thank various departments of the Central Government viz. the Ministry of Environment and Forest, Ministry of Coal, Ministry of Mines and State Government viz. Industries & Mines Department, the Finance Department, Commissionerate of Geology and Mining and Gujarat State Pollution Control Board. The Directors also extend their heartiest thanks to the esteemed customers and shareholders of the Corporation for their valued co-operation.

For and on behalf of the Board-of-Directors

Place : Gandhinagar M. Sahu

Date : 28th July, 2010 Chairman



 
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