Enter the first few characters of Company and click 'Go'

Directors Report of MOIL Ltd.

Mar 31, 2018

DEAR SHAREHOLDERS,

The behalf of Board of Directors, I feel great pleasure in presenting the 56th annual report of your Company, together with the auditorâs report and financial statements for the year ended on 31st March, 2018.

- FINANCIAL RESULTS:

Financial results of 2017-18 and of the previous year are highlighted below:

Rs. in crores

Particulars	Standalone		Consolidated
	2017-18	2016-17	2017-18	2016-17
Revenue from operations	1323.46	989.84	1323.46	989.84
Other income	177.72	221.13	177.72	221.13
Total income	1501.18	1210.97	1501.18	1210.97
Profit before interest, depreciation and tax (EBIDTA)	710.37	516.61	705.81	518.18
Depreciation	62.45	54.71	62.45	54.71
Profit before tax(PBT)	647.92	461.90	643.36	463.47
Less: Provision for taxation	225.93	156.07	225.93	156.07
Profit after tax (PAT)	421.99	305.83	417.43	307.40
Total comprehensive income for the period	398.55	299.28	393.98	300.85
Transfer to general reserve	220.00	125.00	220.00	125.00

Key financial ratios (Standalone results):

Ratios	2017-18	2016-17
EBIDTA to sales turnover(%)	53.68	52.19
PAT to net worth (%)	15.08	10.90
EBIDTA to average capital employed (%)	27.06	17.04
Earning per share (Face Value Rs10each)	21.08	20.21
Book value per share *	108.66	210.63

*Book value per share has been reduced due to increase in number of shares as the company has issued bonus shares in the ratio of 1:1 during the year 2017-18.

- DIVIDEND:

MOIL is a dividend paying company since many years. Continuing the same during the year 2017-18, an interim dividend @ 30%, i.e., Rs. 3.00 per equity share, has been paid in the month of March, 2018. The Board of Directors of your company has further recommended a final dividend @ 25%, i.e., Rs. 2.50 per equity share, for the year. The total dividend for the year 2017-18 thus works out to Rs. 5.50 per equity share on increased equity shares (Rs. 11.00 previous year). The dividend for the year is equivalent to last yearâs dividend on pre-bonus share capital. The total dividend outlay including dividend distribution tax for the year works out to Rs. 173.82 crores (Previous year Rs. 176.33 crores).

- FINANCIAL PERFORMANCE:

Your Company has recorded highest-ever gross sales of Rs. 1323.46 crores during financial year 2017-18 as compared to Rs. 989.84 crores in previous year. Profit before tax (PBT) for the year has increased by 40.27% to Rs. 647.92 crores in comparison to previous yearâs PBT of Rs. 461.90 crores. The Company has earned a profit after tax (PAT) of Rs. 421.99 crores as against Rs. 305.83 crores in the previous year. Total comprehensive income for the year is Rs. 398.55 crores. Substantial increase in production leading to availability of higher quantity for sales, better product/sales mix, increase in average realisations as a result thereof coupled with better market condition during 2017-18 are the main factors for the very good performance.

As per the Government Guidelines, your Company has deployed surplus funds in fixed deposits and mutual funds and earned interest income which is included in total interest received of Rs.160.92 crores (Previous year Rs.185.60 crores) and clubbed under other income. The interest income has come down mainly because cash outflow of Rs. 210.40 crores on account of buy back of shares and also reduction of average rate of interest.

- SALES:

In financial year 2017-18, MOIL has achieved highest-ever turnover of Rs. 1,323.46 crores, registering a growth of more than 33.70% over previous yearâs turnover of Rs. 989.84 crores. During financial year 2017-18, more often then not the prices of imported manganese ore as well as alloy prices were showing upward trend, which gave positive sentiments to the Indian ferro alloy industry. In order to take advantage of such upward trend as well as to fetch better sales realizations, whenever possible MOIL continued reviewing the prices on monthly basis instead of quarterly review. During the year, the average sales realisation has increased from Rs. 8018 to Rs. 10201 and companyâs sales turnover of manganese ore has increased by 33.74% from Rs. 905.34 crores to Rs.1210.79 crores. With a prudent marketing and pricing policy, your company has been able to increase the sales of manganese ore by about 5.13% from 11.29 lakh MT in the financial year 2016-17 to 11.87 lakh MT in financial year 2017-18,which also includes highest ever sales of non-fines manganese ore, main line of business of the Company. During the year, the company has continued to take various positive steps in order devine the best out of market conditions to increase the sales such as continuance of partial railway freight reimbursement to the buyers located in far-flung areas, etc.

In respect of manufactured products of the company, viz., electrolytic manganese di-oxide (EMD) and ferro manganese, the total net sales during the year 2017-18 was Rs. 105.65 crores in comparison to Rs. 76.67 crores during previous year. The sales quantity of EMD has slightly decreased from 952 MT in the year 2016-17 to 915 MT in the year 2017-18 a result of lesser carry over inventory. However, the quantity of sale of Ferro Manganese has increased by 16.30% from 9540 MT in the year 2016-17 to 11095 MT in the year 2017-18.

- PRODUCTION AND PRODUCTIVITY:

Your Company has produced 12.01 Lakh tonnes of various grades of manganese ore during financial year 2017 18 as against 10.05 Lakh tonnes in previous year which is the highest ever production in last 10 years. The output per man shift (OMS) at 0.862 tonnes (previous year 0.722 tonnes) has shown strong improvement during the year. The production of EMD was 872 as against the 731 tonnes during the previous year registering growth of 19.70%. The production of ferro manganese was up by 6.26% at 10573 MT as against the 9950 MT in the previous year.

- CLOSING STOCK :

The Company has a closing stock of 1.21 lakh tonnes of manganese ore valued at Rs. 58.70 Crores as on 31.03.2018 as compared to 1.42 lakh tonnes of manganese ore valued at Rs. 81.89 Crores as on 31.03.2017. The closing stock of ferro manganese was 2486 tonnes valued at Rs. 15.74 crores as on 31.03.2018 as against 3008 tonnes valued at Rs. 10.99 crores as on 31.03.2017. The closing stock of EMD as on 31.03.2018 was 33 MT (previous year 73 MT) valued at Rs. 0.29 crores (previous year Rs. 0.58 crores).

- CAPITAL / VALUE ADDITION / DIVERSIFICATION PROJECTS:

In order to meet the future requirement and maintain its leadership in the industry, MOIL has planned to enhance its production from present level of around 1.2 million MT to 2.0 million MT by 2021, 2.5 million MT by 2025 and 3.00 million MT by 2030, for which a strategic management plan is already in place. 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. Some of the projects have already started and some are in progress. These projects will require capital of investments of about Rs. 2500 crores by 2030.

- Capex and mine expansion projects :

In order to achieve the production target, MOIL has taken up various mine development and expansion projects which include setting up of high speed shaft at Balaghat and Gumgaon Mines with total investment of about Rs. 460 crores. With a view to diversify its activities, decision has been taken for setting up of ferro alloy plant of total 75,000 MT capacity at Balaghat and Gumgaon Mines with total investment of about Rs. 419 crores.

(i) Completed projects/projects under implementation -

a) Deepening of Holmes (vertical) shaft by 135 Mtrs with loading station at a capital cost of Rs. 28.30 crores - Shaft deepening and lining work has already been completed. Production from lower levels has also started. Ancillary development works are in progress.

b) Sinking of another vertical shaft of 160 Mtrs at Chikla Mine at a capital cost of Rs. 48.70 crores â Work is in progress and project is advancing as per schedule.

c) Deepening of vertical shaft at Kandri Mine by 60 Mtrs at a capital cost of Rs. 14.82 crores - The project is in progress as per schedule.

d) Sinking of another vertical shaft of 160 Mtrs at Munsar Mine at a capital cost of Rs. 51.32 crores - The project is in progress as per schedule.

e) Sinking of another vertical shaft of 324 Mtrs at Ukwa Mine at a capital cost of Rs. 77.15 crores - The project is in progress as per schedule.

f) Sinking of high speed vertical shaft of 330 Mtrs at Gumgaon Mine at a capital cost of Rs. 194 crores â The project is in progress as per schedule.

g) Sinking of high speed vertical shaft of 750 Mtrs at Balaghat Mine at a capital cost of Rs.259 crores â The project is in progress as per schedule.

(ii) UPCOMING / NEW PROJECTS :

(a) 50000 MTPA ferro alloys plant at Balaghat mine with an investment of Rs. 263.82 crores

(b) 25000 MTPA ferro alloys plant at Gumgaon mine with an investment of Rs. 155.00 crores.

These projects have been approved by the Board subject to JV or off taken agrement with prospective customers. Purchase of land for the same is in progress. After obtaining statutory clearances, implementation will be taken up

- Acquisition of mines in and outside the Country

In line with Strategic Management Plan of the Company, there are plans to have strategic alliances coupled with offtake agreements with manganese ore producers abroad. An open-ended Expression of Interest (EoI) has been hosted on the website of the company with a view to seek offers in this regard. Offers received are evaluated for further course of action.

- Joint venture companies (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 revised TEFR prepared by MECON Ltd., the projects are not viable at the present power tariffs of State Electricity Boards. Thus, 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-I) are annexed as Annexure-I.

- Exploration Business

Ministry of Mines, Govt. of India has notified MOIL for conducting exploration of various minerals on pan-India basis under per section 4(1) of the MMDR Act, 1957. This provides an opportunity to MOIL to expand its business in this new area. MOIL has signed MoU with National Remote Sensing Centre (NRSC), Hyderabad on 01.09.2017 for conducting remote sensing study in four districts of Madhya Pradesh state, i.e., Balaghat, Chhindwara, Jabalpur and Jhabua to delineate the concealed manganese ore within the districts. After completion of the study, detail exploration work will be carried out, as per MoU signed with Govt. of Madhya Pradesh.

- Exploration and Petrography

MOIL is going to establish in-house Remote Sensing and GIS laboratory along with petrography laboratory for capacity building of R&D and for internal study.

- Research and development (R&D)

MOIL is engaged in exploration, exploitation and marketing of various grades of manganese ore and also producing value added products such as electrolytic manganese di-oxide (EMD) and high carbon ferro manganese alloys at mine pit head. MOIL operates ten mines in central India in which three mines are operated by opencast and seven mines by underground in narrow manganese ore body with varying dip directions with difficult geo-mining conditions associated with poor rock-mass quality of wall rocks. The company has carried out R & D activities to improve the safety, productivity and environmental standards in the mines by introducing newer technology in consultation with reputed academic and CSIR-R&D Institutions of the country. MOIL has engaged and has been associated with following institutions for various R&D projects;

CSIR â Central Institute of Mining & Fuel Research (CIMFR), Nagpur and Dhanbad

CSIR-National Metallurgical Laboratory (NML), Jamshedpur

CSIR- National Geophysical Research Institution (NGRI), Hyderabad

CSIR -National Environmental and Engineering Research Institute (NEERI), Nagpur

Indian Institute of Technology (IIT), Kharagpur

Indian Institute of Technology (IIT), (Formerly Indian School of Mines), Dhanbad

National Institute of Technology (NIT), Rourkela

Visvesaraya National Institute of Technology (VNIT), Nagpur

National Institute of Rock Mechanics (NIRM), Kolar Gold Fields

Indian Institute of Engineering Science and Technology (IIEST), Shibpur,

National Remote Sensing Centre (NRSC), Hyderabad

Significant R&D projects in MOIL are listed below;

1. Mine Environment:

Indian Institute of Technology (IIT), Kharagpur, has conducted ventilation reorganization studies for deeper levels at Munsar, Kandri and Ukwa Mines. Accordingly, new ventilation drifts are now being developed at Kandri and Chikla Mine for installation of large diameter ventilation fans.

2. Mines Safety - Mining Subsidence:

In-house scientific 3-D analysis of subsidence parameters has been carried out by Mine Planning and Design Department for Munsar Mine. With the analysis, it is confirmed that no noticeable movement of any orthogonal direction has been found at the Mine.

3. Mineral conservation:

R&D studies have been conducted at Munsar Mine by NIRM. The suggested stope design has incorporated placement of haulage drive in foot wall rock with roof bolts in haulage drive, x-cut and in stope. This has totally eliminated the in situ sill pillar in the manganese ore body and thus saved the locked mineral in sill pillar. The modified stope design has increased the quantity of manganese ore in underground mines for exploitation by around 20%, thus conserving the valuable mineral resource.

4. Mining Technology

(a) Decline:

R&D project for entry to the underground stoping area by decline has been prepared by CSIR-CIMFR, Nagpur for Gumgaon Mine. Feasibility studies are going on for economic evaluation. This may help in improved production, safety and productivity by mechanization of stoping operations.

(b) Alternative to Cartage Explosives:

To reduce the ground vibrations, fly rock and noise, Site Mix Emulsion (SME) explosives have been used with shock tubes at Dongri Buzurg Opencast Mine. The post blast result of the SME is found satisfactory and it has reduced noise level, ground vibrations and fly rock substantially, besides increasing operational efficiency.

5. Collaborative work with Academic and Research Institutions:

(a) MOIL is carrying out joint collaborative research & development project with NIRM, Bangaluru for installation of modern scientific rock mechanics instruments at Balaghat Mine.

(b) A collaborative research for slope stabilization with National Institute of Technology, Raurkela for Modern Slope Monitoring Instruments â Time Domain Reflectometry (TDR) using Wireless Sensor Network is going on at Dongri Buzurg Mine for better safety.

6. In house âR&D works:

(a) Substitute of fill material:

Mine Planning and Design Department has conducted the in-house R&D study on overburden material to use as a fill material in underground by hydraulic transportation at Munsar Mine on experimental basis and filed a patent.

(b) Pre-cast RCC Columns & Sections:

In house developed pre-cast RCC columns and sections have been rapidly erected in drift development and thus improved the safety standard of drift development in underground.

Further details regarding research and development activities are given in Annexure â II

- CONSERVATION OF ENERGY:

Various energy saving projects are in progress at different locations of the company. Energy saving will be achieved by implementation of new technology equipment, reducing electricity consumption by proper monitoring and avoiding wastage.

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

(i) 5 MW Solar power project in Maharashtra mines and 5.5 MW in Madhya Pradesh mines is nearing completion.

(ii) 20 MW Solar power project is proposed at Rajgarh Khas in Madhya Pradesh.

(iii) Installation of 54 KW solar power tree is proposed at MOIL Bhawan Nagpur.

(iv) Installation of energy saving luminaries, fan, air conditioners, etc., at administrative blocks of all mines and plants is in progress.

(v) Automation of pumping operation for underground mine is in progress at Chikla Mine.

(vi) Replacement of conventional lights with LED lights at Dongri Buzurg mine.

(vii) Energy efficient transformers, motors, high mast lamps are proposed to be procured in this year.

(viii) Installation of regenerative control system for one number battery locomotives provided at Balaghat mine.

Electricity consumption per ton of production for mines/plants of the Company is as under:

Sr.No.	Particulars	KWh consumption PMT
		2017-18	2016-17
1.	Manganese ore	22.92	23.54
2.	Ferro manganese	3074.92	3062.76
3.	Electrolytic manganese di-oxide (EMD)	3069.00	3425.86

Details regarding conservation of energy have been given in Annexure âII.

- Wind power generation

MOIL has wind farms of 4.8 MW and 15.2 MW situated at Nagda Hills and Ratedi Hills respectively in District Dewas near Indore (M.P.). Power generated 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 2.9 crore KWh electricity during 2017-18 (previous year 3.23 crore KWh).

- MINING LEASES AND EXPLORATION:

MOIL is having total 1743.77 Ha lease area as on 31.03.2018 in Maharashtra and Madhya Pradesh (excluding of Forest area of Ukwa, Balaghat, Tirodi and Dongri Buzurg, which are yet to be executed). An area of 814.71 Ha has been reserved by Maharashtra Government in favour of MOIL for prospecting of Manganese ore in Nagpur and Bhandara districts. Out of this, the State Government has granted prospecting license (P.L.) over 11 areas aggregating to 597.44 Ha and balance is in process.

Geophysical survey by gravity and magnetic method was conducted within 11 P.L. areas by National Geo Physical Research Institute (NGRI), Hyderabad. Based on the results of the survey, core drilling was conducted by MOIL within 3 P.L. areas and the presence of manganese ore has been proved within these areas. Accordingly, the Company has applied for Mining Lease (M.L.) over 211.60 Ha. Out of 3 M.L. applications, the Government has communicated in-principal approval of two M.L. areas covering 132.46 Ha and one application is under process. Core drilling for remaining P.L. areas is to be taken up after requisite approvals from Govt. authorities.

In addition to the above, Government of Madhya Pradesh has also reserved an area of 372.701 Ha in favour of MOIL in village Tawejhari Manjhara, District Balaghat (M.P.), for exploitation of manganese ore. MOIL has also carried out explaration by core drilling within the mining leave are a of MOIL. During 2017-18 total 25147 mtr core driling has been done out of which 6197 mtr driling was done by MOILâs departmetal ring: and remaining 18,950 mtr driling done by contractual means.

With continuous driling and expeoration works. your Company has been able to add to its reserves and resources maganese are which has increased to 90.66 millions tonnes with this MOIL is very well positional to copitalize on Indiaâs Steel demand growth given itâs dominant position, medium to high grade are reserves, centrally mines, low cost of producting and stong customer ties.

- DEVELOPMENT OF INFORMATION TECHNOLOGY AND USAGE:

The Company has set-up a full-fledged Systems department in order to ensure an effective computerization of all its functional areas.

In order to have adequate IT infrastructure, steps taken by the Company are as under:

- Installation of computers at all its offices and mines/plants.

- Ethernet based Local Area Networks (LAN) on Windows and Linux platform is in place at Head Office, Nagpur. LAN has also been designed and developed at all the mines of the Company.

- Designed, developed and hoisted a dynamic internet website on NIC server and also an in-house Intranet server

- For effective sharing of applications, databases/ information and other resources on regular basis, all the mines and head office are connected through MPLS VPN and VPN over leased line and broadband.

- For gaining continuous knowledge, e-mailing and for inter unit data transfer facilities all the concerned officials of head office have been provided with internet connection through a 40 Mbps (1:1) internet leased line on OFC. All mines of the Company are provided with leased line/broad band internet connections.

- All procurement of goods valuing Rs. 2 lakhs and above is through e-procurement portal of MSTC to bring transparency procurement process.

- Implemented ERP in the Company.

- Implemented video conferencing solution in the Company.

- ENTERPRISE RESOURCE PLANNING (ERP) :

ERP 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 is achieved.

State of the art data centre for ERP is designed and commissioned at corporate office, Nagpur.

In addition to core modules, (viz., finance and controlling, materials management, sales and distribution, production and planning, plant maintenance, human resource management) of SAP, the company has also implemented document management systems.

All the routine business transactions are shifted to SAP from the legacy systems from January, 2017 and the system is now stabilised. With this, new MIS is also developed for better monitoring and transparency in operations.

- SAFETY AND OCCUPATIONAL HEALTH :

Your Company lays special emphasis to ensure safety in the mines/plants and also takes continuous efforts to reduce the accidents by constantly 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 inter-action with employees at all levels to prevent accidents to the maximum extent possible.

- Vocational and refresher training is imparted to each employee regularly apart from specialized training.

- Training programs on role of safety in sustainable development and mining and environmental law.

- In the area of occupational health and management system, MOIL received OHSAS 18001:2007 certificate for Balaghat, Dongri Buzurg, Chikla, Kandri, Munsar, Gumgaon, Tirodi and Ukwa mines.

- Conducting risk assessment study for all its underground as well as opencast mine by outside experts and safety management plan as per the requirement of DGMS.

- Putting in place a disaster management plan for mines, plants, school, hospital and administrative offices.

- Prestigious National Safety Awards (Mines) are conferred to various Mines of MOIL.

- ENVIRONMENTAL PROTECTION AND RENEWABLE ENERGY:

Ecology conservation is crucial in todayâs 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. All the mines of MOIL including sand ghats have got environment clearance from the MoEF or designated offices. Your company, with a goal of achieving sustainable development, has taken proactive measures to reduce global warming. The Company is conscious of its responsibility towards environmental protection in and around its leasehold areas. The cumulative plantation at various Mines as on 31.03.2018 is 19.46 lakhs saplings. In order to be eco-friendly organization, MOIL has set up Wind Energy Farm of total 20 MW capacity at Dewas in Madhya Pradesh. It has also installed 48 KW roof top solar panel at MOIL Bhawan, Nagpur and the same is also in process for its mines. The company is also in process of installation of 10.50 MW capacity solar power projects at its mines. It has replaced conventional lights with LED lights in most of the working places. The company is also in process to install 20 MW capacity solar power at Rajgarh Khas (M P).

- VIGILANCE ACTIVITIES / EVENTS FOR THE YEAR 2017-18

The functioning of vigilance department includes preventive as well as proactive vigilance having the main thrust on systems improvement in the organization, with the objective, to ensure that the management gets the maximum out of its various efforts and transaction. Some of the important activities of the vigilance department during the year 2017-18 are as under:

(1) ISO-9001:2015 certification: Vigilance department is awarded ISO-9001:2015 certificate by the International Certification Services Pvt. Ltd, Mumbai accredited by Joint Accreditation System of Australia and New Zealand for Quality Management System to provide vigilance services to the management of MOIL Certificate is valid till 21.05.2020.

(2) Inspections: General / surprise and CTE type inspections are being carried out regularly to ensure adherence to norms during execution and to suggest improvements in the system. During 2017-18, total 61 periodic /surprise and 3 CTE type inspections and studies were carried out.

(3) E-procurement : E-procurement is being done for purchases and work contracts above threshold value (Rs. 2 lakhs at present).

(4) Structured meetings of Vigilance : As per the instructions of CVC and Ministry of Steel, structured meetings of vigilance with CMD are conducted regularly. During the period, 3 meetings were conducted. Issues related to e-governance, leveraging technologies, tendering management, awards of work, recruitment policies were discussed.

(5) Leveraging Technology : With reference to commissionâs circular, emphasis is on the effective use of website and leveraging technology in discharge of regulatory, enforcement activities and dealing with complaints. The main thrust areas for leveraging technologies are procurement of goods and contracts. Also, the status of bill payments to contractors / suppliers is posted on website. All tender documents, promotion lists, transfer lists, CSR works, seniority-list in recruitments, notices and other proforma are posted on the website.

(6) Updation of Manuals : Various manuals such as purchase manual, works and contract manual, personnel manual, etc., have been prepared and put in practice. Purchase manual, works and contract manual, personnel manual are posted on the Companyâs website / intranet. Updation of manuals is carried out on a continuous basis as a part of proactive vigilance and is being pursued with the management, wherever necessary.

(7) Training Programmes: During 2017-18, vigilance department conducted 06 training programs at Corporate Training Center and at Munsar Training Center, covering 209 employees (832Hrs) on vigilance awareness.

(8) Job Rotation: Sensitive posts have been identified for rotation of officials working on sensitivity posts for more than 3 years and are being rotated by the management.

(9) Vigilance Newsletter : Vigilance department is publishing monthly newsletter âVigilance Vaniâ to communicate vigilance activities and updating the information regarding various guidelines and circulars issued from CVC, DoPT, Ministry, etc. Also annual vigilance journal âShuchitaâis published during Vigilance Awareness Weeks.

(10) Vigilance profile of employee: Vigilance profile of employees were issued in 1085 cases during 2017-18 for different purposes.

(11) System Improvements: As an outcome of investigations relating to complaints, study, inspection etc., advisories and suggestions are given to the management for system improvement in the following areas:

- Use of technology

- Preparation of estimates and rate schedules in works contracts.

- Online submission and refund of EMD.

- Regular updation of personal files and service books of employees.

- Protection of information system i.e. ERP/SAP and data recourses management controls.

- Installation of CCTV for surveillance

- Biometric system for attendance at mines.

(12) Annual property returns : As per CVC guidelines, all executives in the organization have submitted their annual property returns and 20% of the same are scrutinized every year. Accordingly,72 executivesâ returns have been scrutinized during the year.

(13) Vigilance awareness week: Vigilance awareness week was observed from 30th October to 4th November 2017 at all Mines / offices of MOIL. On this occasion vigilance department came out with the 6th annual issue of vigilance magazine âShuchitaâ which was released by Divisional Commissioner, Nagpur with CMD and Director (Commercial) of MOIL. Various competitions, workshops, seminars and vigilance awareness rally were organized during the week for employees, students of school and colleges and public at large.

(14) As required vide OM No. F. No. 28(1)/2016-Leg.I dated 24.01.2018 details related to disposed off and pending vigilance cases during the year 2017-18 are as follows:

Cases during 2017-18	Nature of cases		Total
Cases during 2017-18	Having vigilance angle	Administrative	Total
Cases disposed off	31	04**	35
Pending*	04	NIL	04

* At present, all pending cases are disposed off

** All administrative cases are forwarded to management to deal at their end

- IMPLEMENTATION OF RTI

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

MOIL has appointed CPIOs at the Corporate Office and PIOs / APIOs have also been appointed at all its Mines. Chief General Manager (Personnel) has been appointed/designated as Appellate Authority under the Act. The names of all the PIOs / APIOs and the Appellate Authority has been also hoisted in Companyâs website www.moil.nic.in.

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

Awareness has been generated in order to enlighten the Companyâs employees about the intention and true spirit of this Act. The various provisions of the Act have been highlighted by issue of the circulars with a request to keep transparency in day-to-day work and maintain all the records in a proper/systematic manner. Further, the Company has also been hoisting/updating in Companyâs website certain matters suo-moto at regular intervals for the public, so that public has minimum resort to use the various pro visions under the RTI Act to obtain information.

At the beginning of the year 2 RTI applications were pending, during the year 68 RTI applications received. out of which 39 applications were disposed, 23 were rejected and 8 applications are pending as on 31.03.2018. Appellate authority has received 32 RTI appeals and all of them were disposed of during the period.

- TRAINING PROGRAMMES AND SKILL DEVELOPMENT:

During the year 2017-2018, total 68 programs (internal and external) were conducted for employees at Munsar Training Centre, Corporate Training Centre-Nagpur and Outside Training. The participants who were imparted training during the year in various programs include:

Program Details	No. of Programs	Total Participants	Total Mandays
Munsar Training Program	24	671	711
In-Company Training Program	24	526	1108
Outside Training Program	20	75	339
TOTAL	68	1272	2158

In addition to this the company has also imparted training to apprentices under Apprentices Act 1961. MOIL has been encouraging trade apprentices to show their inherent skills and has been providing various platforms to exhibit their skills.

The Company has signed MoU with National Skill Development Corporation (NSDC) to collaborate and support skill development initiatives in the vicinity of MOIL mines to make available skilled manpower for the development of the industrial ecosystem in the area. Under this programme training is imparted by channel partners of NSDC to 424 on roll employees, 127 contractual and 119 local youths residing nearby villages of the mines. Accordingly total 670 participants were imparted Skill Development Training.

- SWACHHATA ABHIYAN

Swachh Bharat Abhiyan (Clean India Campaign) is a national level campaign where MOIL took active part on the call given by our Honâble Prime Minister for the biggest cleanliness mission of our country.

In this mega drive of cleanliness campaign, MOIL joined hand with in fulfilling the dream of Mahatma Gandhi of âSwachha Bharatâ. MOIL has been actively involved in planning and implementing the âSwachha Bharat Abhiyanâ and re-engineering its manpower towards the noble deed.

In MOIL, âCleanliness Dayâ (Swachhta Diwas) is observed every month on 1st Wednesday at all its mines. The Company observes swachhata pakhwada from 1st to 15th of every month.

- USHERING IN CASHLESS TRANSACTIONS:

As per the Ministryâs directives efforts have been made to promote cashless transaction environment by conducting various activities at the mines of the company. The action taken by MOIL for promotion of cashless transaction environment is as follows:-

- Propagating cashless transaction by organizing programmes at unit level by social groups.

- âNukkad natakâ / short workshops held at adjoining villages near the operating areas of MOIL mines, so as to spread message to the villagers regarding the same.

- Collaborations with bankers in the region to promote cashless transaction through ATM (debit/credit card) mobile wallet, mobile app, net banking, ECS, NEFT, RTGS, e-payment, etc.

- Banners/posters and advertisements showing advantages of cashless transactions have been displayed at all prominent locations.

- All employees are being paid wages/salary and other payments through bank account only. Maximum number of employees are already using debit card and cheque facilities. Also 100% of contractual workers have opened their individual bank accounts and their wages are being paid through bank.

- Payments to employees through electronic mode.

- WELFARE SCHEMES AND FACILITIES

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

- 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.

- adequate supply of drinking has been provided to the employees residing in the minesâ colonies.

- The colonies and streets of the camps are well illuminated. The employees have been provided with electricity for their residence at concessional rates.

- Hospitals/Dispensaries have been setup at all the mines, maintained by qualified doctors and are 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 to emergencies. The patients are also being referred for medical treatments to specialized hospital as per the requirement.

- The scheme of post retirement medical insurance for retired employees is existing in the company for extending the medical facility.

- Pension scheme is also in operation for all its employees w.e.f. 01.01.2007.

- 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 schools/colleges.

- Scheme of reimbursement of tuition fees and scholarship to meritorious students is also framed. Reimbursement of tuition fees to the children of staff and workers are provided for taking education in professional courses.

- WELFARE MEASURES TAKEN FOR SC/ST:

MOIL is a labour intensive organization with 6080 employees on its rolls as on 31.03.2018 of which about 80% belongs to SC/ST/OBC (SC 20.23% ST 25.72% OBC 34.34%). Your Company is also taking keen interest in development of the tribal population living in the vicinity of the mines situated in remote areas by following

means:

- Adopting villages near the mines and provided drinking water facilities, road maintenance.

- periodical medical checkups and treatment to the people living in these villages.

- Providing financial aid, stationery, books etc. to schools adjacent to the mining areas.

- Skill development training programmes for SC/ST local youth under skill development programmes.

- Providing training to the physically challenged persons under Person with Disabilities Act 1995.

- EMPOWERMENT OF WOMEN:

MOIL has 738 women employees which constitute 12.14% of its total workforce of 6080 as on 31.03.2018.

In compliance of the directives of the Supreme Court guidelines relating to prevention of sexual harassment of women workers at work place were issued by Govt. of India, Ministry of Human Resources Development. Accordingly, a complaints committee has been constituted in the year 1999 and reconstituted in May 2014. 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. Every year 8th March is celebrated as International Womens Day and various programmes are organized to mark the day. 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 of 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.

- DISCLOSURE REQUIREMENTS UNDER THE PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT 2013:

The company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. As per the provisions of the Act, a Sexual Harassment Prevention Committee has been set up in the Company to deal with the cases received under sexual harassment. The Committee members are as under:-

1. Smt. Preeti Joshi, DGM (Legal) : Head of the Committee

2. Smt. (Dr.) Bharti Rangari, DGM (M.S.) : Secretary

3. Shri Nitin Pagnis, DGM (Per.) : Member

4. Shri Neeraj Pandey, Company Secretary : Member

5. Smt. Ujwala Abhyankar, Sr. Manager (Per.) : Member

6. Smt. Asha Singh, Ex-Principal : Independent Member

The names of the Committee Members have been uploaded on Companyâs web site (www.moil.nic.in). The summary of the Sexual Harassment complaints received during the year 2017-18 are as under:

Number of complaints received	Number of complaints disposed of	Number of complaints pending
NIL	Not applicable	Not applicable

- PERSONNEL

The manpower as on 31.03.2018 of the Company is given below:

Gender	Executives	Non-Executives	Workers	Total
Male	321	2128	2893	5342
Female	23	103	612	738
Total	344	2231	3505	6080

Category-wise details of employeesâ strength as on 31.03.2018 are as under:

Group	Scheduled caste	Scheduled tribe	O.B.C.	Others	Total
A	58	11	75	159	303
B	28	9	50	77	164
C	298	199	408	374	1279
D	782	1345	1555	588	4270
SafaiKarmachari	64	0	0	0	64
Total	1230	1564	2088	1198	6080
Total%	20.23%	25.72%	34.34%	19.70%	100%

- CITIZENâS CHARTER AND GRIEVANCE REDRESSAL MECHANISM :

(a) Employeesâ grievances â MOIL has its own grievance redressal system for executives as well as non executive employees. The grievances of employees are accordingly dealt with as per the rule.

(b) Public Grievance â Any citizen can submit his grievance through online Centralized Public Grievance Redressal and Monitoring System (CPGRAMS). All grievance officers have been apprised of the manner in which the public grievances 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.

(c) The redressal of grievance machinery in MOIL consists of one grievance officer nominated at each unit/mine. The grievance officer nominated for head office coordinates with grievance officers at the units/mines for their effective performance.

(d) Monthly/quarterly grievances are reviewed and dealt with by designated public grievance officers at mines and corporate office and are disposed off within stipulated period of one month.

(e) The data related to grievances at the units/mines are submitted by unit/mines grievance Officers in monthly / quarterly returns to the Head Office. The same are examined and submitted to Ministry.

Status of Public Staff Grievances for the period 01.04.2017 to 31.03.2018

Sr. No.	Grievances	Grievances outstanding as on 01.04.2017	Number of grievances received during the year	Number of cases disposed of	Number of cases pending as on 31.03.2018
1]	Public	----	6	6
2]	Staff	Nil	8	8	0
	TOTAL	Nil	14	14	0

- CORPORATE SOCIAL RESPONSIBILITY (CSR) AND SUSTAINABILITY:

CSR in MOIL is a continuous process. MOIL has been carrying out CSR activities in a resolute manner for several years. The Company has framed a CSR Policy duly approved by the Board of Directors. Several schemes have been taken up and being implemented under CSR in the current year which broadly include the following:

- In the Education and skill development initiative MOIL is supporting various schools near its mine in District Balaghat of Madhya Pradesh and Bhandara District of Maharashtra.

- In a major step towards providing quality education to rural children, MOIL in association with DAV Group of Schools has constructed a large school at Village Sitasaongi, in Bhandara district .

- With the overwhelming response for DAV-MOIL school of Sitasaongi, Company is in process to open one more branch of this of tis school at Munsar, Dist. Nagpur, which will cater the need of quality of education of the rural children.

- Skill development program: Training on logistic skills, Mine mate and Blasters training has been imparted to 119 local youths and 127 contractor workers, as per NSDC (National Skill Development Council) guidelines,

- Providing drinking water to villages in remote areas through bore wells.

- Company has tied up with Mahatme Eye Bank and Eye Hospital run by S.M.M. Eye welfare trust, Lata Mangeshkar Hospital etc. for carrying out free cataract surgeries, for needy people.

- Company has associated with a professional agency BAIF and Maharashtra Institute of Technology Transfer for Rural Areas (MITTRA), an associate organization of BAIF, Pune having vast experience in rural development programmes. MOIL has entered into MoU with MITTRA who has prepared a detailed project report for the project. Initially 21 villages have been identified in Nagpur, (5 villages) Bhandara (11 villages) districts in Maharashtra and Balaghat (5 villages) district in Madhya Pradesh. Major areas of developmental activities are as under:-

- Livelihood	- Education
- Women Empowerment	- Anganwadi based intervention
- Water Resources Management	- Community Resources Dev.
- Agricultural Training	- Infrastructure Development
- Livestock Development Training	- Health, Cleanliness & Sanitation
- Quality of Life

- Company has also constructed 534 toilets under Swachha Bharat Abhiyan, and installed integrated solar street lights in the identified villages.

- MOIL has taken up various infrastructural development works like construction of village roads, personal toilets, community halls, support for plantations etc. in the vicinity of the operational area of MOIL mines. A report on CSR activities as required under Companies Act,2013 is attached as Annexure-III

- PROCUREMENT FROM MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT (MSMED) ACT, 2006

As per requirement of Micro, Small and Medium Enterprises Development (MSMED) Act 2006 and notification issued by Central Government in this regard, PSUs are required to purchase minimum 20% of total annual purchase of products produced and services rendered by MSEs. It further requires that 4% out of 20% shall be earmarked for procurement from MSE owned by Scheduled Castes or Scheduled Tribes entrepreneurs. It also requires the PSUs to report goals set with respect to aforesaid procurement and achievement made thereto in its Annual Report.

Total procurement of goods during 2017-18 has been at Rs. 70.53 crores (previous year Rs. 47.99 crores) out of which total value of goods procured from MSE (including MSE owned by scheduled castes or scheduled tribes entrepreneurs) is Rs. 29.68 crores (previous year Rs. 20.86 crores) which amount to 42% of total annual procurement of products produced by MSE.

Thus, the Company is complying with requirement of Micro, Small and Medium Enterprises Development (MSMED) Act 2006. For financial year 2018-19, MOIL has a goal to procure products produced / services rendered by MSME as mentioned in the first para above.

- PROGRESSIVE USE OF HINDI:

In MOIL mines, about 97% work is being done in Hindi. The unicode system has been installed in all computers of the company. The company has provided Hindi language software in computers and for imparting training to its employees so that MOILâs employees can use the same in their day to day working.

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; so far, 312 employee have already been given training for Pragya ( high level), which is continuous process in the company

Company also promoted/contributed towards Hindi magazines like âVaingangaâ published by Nagar Rajbhasha Karyanven Samiti, Balaghat and âRajbhasha Darpanâ published by Nagar Rajbhasha Karyanven Samiti, Nagpur.

The Company also publishes in-house bilingual magazine Sankalp in Hindi/English highlighting its performance, achievements, activities, etc. The officers and employees of MOIL participate in various competitions organized by the coordination committee. Employees of the Company are also encouraged to participate in various competitions in Hindi conducted by other institutes.

Ministry of Home Affairs has organized Nagar Rajbhasha Karyanvan Samiti annual day celebration on 27.02.2018 at Power Grid Corporation, Nagpur. Various organizations in public and private sector participated in the event. MOILâs vigilance in-house magazine Suchita has won the 3rd Prize for its excellent contents and was appreciated by the Deputy Director of Ministry of Home Affairs.

- 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.

- 5-Star certificate has been awarded to Dongri Buzurg opencast mine and Chikla underground mine of MOIL by Honâble Minister of State - Mines, Govt. of India, Shri Haribhai Chaudhary at New Delhi in 3rd National Mining conclave organized by Ministry of Mines.

- 2nd Prize for best fresh air base category in metals sector and 2nd Prize for best rescue and recovery team in All India Mines Rescue Competition held at Jambadoba Mines, Dhanbad.

- 3rd Prize for MOILâs in-house magazine Suchita periodically published by vigilance department under category of excellent contents in Nagar Raj Bhasha Karyavaen Samiti Award celebrated by Ministry of Home Affairs.

- In 31st National Convention on Quality cocepts-2017 (NCQC-2017) held at JSS Science and Technology University, Mysure (Karnataka State), MOIL received following prizes.

a. Par Excellence Award in Quality Circle and First Prize in Skit Competition to Tirodi Mine

b. Par Excellence Award in Quality Circle and First Prize in Model Competition to Ferro Manganese Plant, Balaghat Mine

c. Par Excellence Award in Quality Circle to IMD Plant, Dongri Buzurg Mine

d. Excellence Award in Quality Circle to EMD Plant, Dongri Buzurg Mine

- DIRECTORS:

During the year under review, Smt. Urvilla Khati (Nominee Director, Govt. of India) and Shri. M.L. Dubey (Nominee Director, Govt. Of MP), have ceased to be Directors of the company. The Board places on records its sincere appreciation of their invaluable contribution and guidance during their tenure.

The Government of India has appointed (a) Shri Dipankar Shome as Director (Production and Planning) for a period of five years, (b) Shri. Rakesh Tumane as Director (Finance) for a period of five years in place of Shri D.S.Ahluwalia - Additional charge Director (Finance), (c) Shri T. Srinivas (Nominee Director, Govt. of India), (d) Shri V.M. Chariar as Independent Director for a period of 3 years and (e) Shri Sunil Porwal (Nominee Director, Govt. of Maharashtra).

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 SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Independent Directors are generally appointed for a period of three years.

Pursuant to section 134(3)(q) read with rule (8)(5)(iv) of Companies (Accounts) Rules, 2014 and section 203(1), the Board has designated Chairman-cum-Managing Director [Chief Executive Officer], Director (Finance)-[Chief Finance Officer (CFO)] and Company Secretary as Key Managerial Personnel.

- APPOINTMENT, PERFORMANCE EVALAUTION 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.

Ministry of Corporate Affairs vide its notification dated June 5, 2015 has exempted Government companies from applicability of some of provisions/sections of the Companies Act, 2013. As per the above notification, the Nomination and Remuneration Committee is not required to formulate the criteria for appointment of Directors, their remuneration policy and carrying out their performance evaluation. In MOIL, being a Government Company, the appointment of Directors and their performance evaluation are undertaken by administrative ministry i.e., Ministry of Steel, Government of India, as such performance evaluation by the Board of its own performance, that of its Committees and individual directors, are not applicable/required.

The remuneration of officers (executives) is decided as per Government guidelines on pay revision and remunerations of the nonexecutives are decided as per Wage Settlement Agreement entered into periodically with their Union. 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 companyâs website www.moil.nic.in.

- DIRECTORSâ RESPONSIBILITY STATEMENT :

Your Directors state that:

(i) in the preparation of the financial statements, 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, 2018 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 frauds or other irregularities;

(iv) they have prepared the financial statements 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 Statutory Auditors of the Company for the year 2017-18. There is no fraud reported by auditors of the company under sub-section (12) of section 143 of the Act. The Statutory Auditorsâ Reports are attached, which are self-explanatory. CAG has given NIL comment. CAG vide thair letter dated 19.07.2018 has appointed M/s Demble Ramani & Co., Chartered Accountant, as statutory Auditor for the financial year 2018-19.

- SECRETARIAL AUDITORS :

The Board had appointed M/s A. Mehta and Co., Indore as Secretarial Auditors for 2017-18. 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. Being a Government Company, all the directors are appointed by the Government of India. Your Board believes that the Government of India will make appointment of requisite number of directors on the Board of MOIL.

- RELATED PARTY TRANSACTIONS:

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. 23 of Note No. 1.1 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 companyâs 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 provides for adequate safeguards against victimization of persons who use such mechanism.

- COST AUDIT

Maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is required by the Company and accordingly such accounts and records are made and maintained. M/s Phatak Paliwal & Co., Cost Accountants, Nagpur have been appointed as the Cost Auditor of the Company to conduct audit of cost accounting records maintained by the Company for the year ended 31.03.2018. The due date for filing the Cost Audit Reports for the financial year ended 31st March, 2018 is 27th September, 2018. The report will be submitted within prescribed time limit. The Cost Audit Report and Compliance Report for the year 2016-17 were filed within the time limit as prescribed by the Ministry of Corporate Affairs.

- CONSOLIDATED FINANCIAL STATEMENTS

Your company has no subsidiary company. However, it has two Joint Ventures namely RINMOIL Ferro Alloys Pvt. Ltd and SAIL & MOIL Ferro Alloys Pvt. Ltd.

Pursuant to provisions of Section 129 (3) of the Companies Act, 2013, duly Audited Consolidated Financial Statements are also placed herewith together with necessary notes, annexures and disclosures, as applicable and required.

Both the joint ventures have not yet commenced project/operations.

- 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, are enclosed as Annexure-II to this report.

(ii) Foreign Exchange earnings and outgo: The Company has not made any export of manganese ore or its other products during the financial year 2017-18. During the year under review, the Company has incurred expenditure of Rs. 14.14 lakhs in foreign currency as against Rs. 13.50 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 and investment 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 Boardsâ Report.

(viii) 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 31.03.2018 is annexed as Annexure- IV.

(ix) In order to save papers and contribute in green initiatives of the Government, the company is opting for sending Abridged Financial Statement (AOC- 3A).

- DETAILS OF SHARES IN SUSPENSE ACCOUNT:

The details of shares in suspense account are as follows:

Description	No. of Shareholders	No. of Shares
Aggregate number of shareholders and the outstanding shares in the suspense account lyingason01.04.2017	12	204
Shareholders who approached the company for transfer of shares from suspense account during the year	04	68
Shareholders to whom shares were transferred from suspense account during the year	04	68
Shares transferred to unclaimed suspense account	0	0
Aggregate number of shareholders and the outstanding shares in the suspense account lying as on 31.03.2018	08	272

Note:-During the year company has issued bonus shares in the ratio of 1:1. Accordingly, numbers of the shares have increased.

The voting rights on these shares in suspense account as on 31.03.2018 shall remain frozen till the rightful owner of such shares claims the shares.

- 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 (except for the year 2015-16 and 2016-17 due to worst/ poor market condition of the decade). The rating for 2017-18 has not been issued so far. Continuing the practice, MOIL has signed MoU with the Ministry of Steel for the year 2018-19 also.

- 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 Boardsâ Report, and enclosed as Annexure-V. Certificate of Corporate Governance is also attached with Corporate Governance Report which is self-explanatory. There is no other qualification in the certificate except on composition of the Board of the company during the year. Being a Government Company, all the directors are appointed by the Government of India. The Board believes that whenever there is requirement, the Government of India will make appointment of requisite number of directors on the Board of MOIL.

- MANAGEMENT DISCUSSION AND ANALYSIS AND BUSINESS RESPONSIBILITY REPORT :

A report on Management Discussion and Analysis is placed at Annexure-VI. In compliance with Regulation 34 of SEBI (Listing obligations and Disclosure Requirements Regulations), 2015, Business Responsibility Report is also annexed at Annexure-VII.

- INDUSTRIAL RELATIONS:

Industrial relations in MOIL continued to be cordial and peaceful during the year 2017-18. 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 organization and expeditious decisions for the settlement of grievances had been functioning satisfactorily.

- BONUS SHARES

Your Company has issued bonus shares in the ratio of 1:1 by capitalizing Rs. 133,18,78,040 out of accumulated reserves as per audited financial statements of the Company for the financial year ended March 31, 2017 and said amount is transferred to the share capital and applied for issue and allotment of Bonus share of Rs 10 each.

- BUYBACK OF SHARES

Your Company had done buyback of fully paid equity shares of Rs. 10 each of 87,66,720 equity shares (representing 3.29% of the total number of equity shares) at a price of Rs. 240 per share payable in cash for an aggregate consideration not exceeding Rs. 210,40,12,800 during 2017-18. The buyback was done in accordance with provisions contained in Companies Act, 2013 and SEBI (Buyback of Securities) Regulation 1998. Govt. Of India (Promoter of the Company) had participated in the buyback of Shares.

- ACKNOWLEDGEMENT:

Your Directors acknowledge the support, cooperation and guidance received from the Govt. of India, Ministry of Steel, Ministry of Environment and Forest, State Governments of Maharashtra and Madhya Pradesh, all Government Departments, Companyâs 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

Date: 02.08.2018 M. P. Chaudhari

Place: New Delhi Chairman-cum-Managing Director

Mar 31, 2017

DEAR SHAREHOLDERS,

The behalf of Board of Directors, I feel great pleasure in presenting the 55th Annual Report of your Company, together with the Auditorâs Report and Financial Statements, for the year ended on 31st March, 2017.

- FINANCIAL RESULTS:

Financial results of 2016-17 and of the previous year are highlighted below :

Rs. in Crores

	Standalone		Consolidated
Particulars	2016-17	2015-16	2016-17	2015-16
Revenue from Operations	989.84	634.60	989.84	634.60
Other Income	221.13	252.15	221.20	252.22
Total Income	1210.97	886.75	1211.04	886.82
Profit before interest, depreciation and tax (EBIDTA)	516.61	322.72	518.39	322.70
Depreciation	54.71	52.47	54.90	52.65
Profit before tax (PBT)	461.90	270.26	463.49	270.05
Less: Provision for taxation	156.07	97.27	156.09	97.27
Profit after tax from continuing operations (PAT)	305.83	172.98	307.40	172.78
Total Comprehensive income for the period	299.28	172.98	300.85	172.78
Transfer to general reserve	125.00	75.00	125.00	75.00

KEY Financial Ratios : (Standalone)

Rations	2016-17	2015-16
EBIDTA to sales turnover (%)	52.19	50.85
PAT to net worth (%)	10.90	5.01
EBIDTA to average capital employed (%)	17.04	9.64
Earnings per share (Face Value Rs. 10 each)	20.21	10.30
Book value per share	210.63	205.56

- DIVIDEND:

MOIL is a dividend paying company since many years. Continuing the same during the year 2016-17, an Interim Dividend @ 50%, i.e., Rs.5.00 per Equity Share, has been paid in the month of March, 2017.The Board of Directors of your company has further recommended a final dividend @ 60%, i.e., Rs.6.00 per Equity Share, for the year. The total dividend for the year 2016-17 thus works out to Rs.11.00 per equity share as against Rs.5.00 paid in previous year. Accordingly, the total dividend outlay for the year works out to Rs.146.51 Crores (Previous year Rs.84.00 Crores).

- FINANCIAL PERFORMANCE:

Better product mix, sales mix and better market conditions during 2016-17 have resulted in improvement in the performance of your company. Your company has recorded gross sales of Rs.989.84 Crores during the financial year 2016-17, as compared to Rs.634.60 Crores of previous year. Profit before tax (PBT) for the year has increased by 70.91% to Rs.461.90 Crores, in comparison to previous yearâs PBT of Rs.270.26 Crores. The Company has earned a Profit from continuing operations of Rs.305.83 Crores as against Rs.172.98 Crores in the previous year. Total comprehensive income for the year is Rs.299.28 Crores.

As per Government Guidelines, your Company has deployed surplus funds in fixed deposits and earned interest income, which is included in total interest received of Rs.185.60 Crores (Previous Year Rs.244.06 Crores) and clubbed under other income. The interest income has come down mainly due to cash outflow of Rs.863.34 Crores, on account of buy back of shares and also reduction of interest rates.

The financial statements have been prepared adopting Ind-AS (new accounting standards made mandatory from 1st April, 2016 notified by the Institute of Chartered Accountants of India.

- SALES:

The fluctuation in prices of imported manganese ore is driving the market of manganese ore for domestic sales to large extent. During the financial year 2016-17, even though there is some recovery in prices in comparison to financial year 2015-16, market did not recover/stabilise fully. As the prices of the imported ore for each shipment were in a constant state of fluctuation, the company started reviewing the prices on monthly basis. During the year, the average sales realisation has increased from Rs.5911 to Rs.8078 and accordingly, the companyâs manganese ore sales revenue has increased by 58.33% from Rs.571.79 Crores to Rs.905.34 Crores. With prudent marketing and pricing decisions, your company has been able to increase the sales of ore by 16.75% from 9.67 lakh MT in the financial year 2015-16 to 11.29 lakh MT in Financial year 2016-17. During the year, your company has continued to take various positive steps to increase the sales such as continuance of partial railway freight reimbursement to the buyers located in far-flung areas, regular customer interactions, etc.

In respect of manufactured products of the company, viz., electrolytic manganese di-oxide (EMD), ferro manganese (FeMn) and ferro manganese slag, the total gross sales during the year 2016-17 was Rs.76.67Crores in comparison to Rs.53.69 Crores during the year 2015-16. The quantity of sale of EMD has increased from 714 MT in the year 2015-16 to 952 MT in the year 2016-17. Similarly the quantity of sale of FeMn has increased from 7922 MT in the year 2015-16 to 9540 MT in the year 2016-17.

- PRODUCTION AND PRODUCTIVITY:

Your Company has produced 10.05 Lakh tonnes of various grades of manganese ore as against 10.32 Lakh tonnes in previous year. The output per manshift (OMS), has been at 0.722 tonnes (previous year 0.718 tonnes). The lower production in FY 2016-17 is mainly attributable to (a) shaft deepening activities carried out parallely and the job of changing guide rails taken up to ensure safety at Balaghat mine in line with DGMS requirement; and (b) higher concentration on development activities at Dongri Buzurg mine to achieve the better ore bench availability in subsequent years(s) leading to lower production.

The production of EMD has registered increase of 19.44% at 731 MT as against the 612 MT during the previous year. The production of FeMn has improved by 52.63% at 9950 MT as against the 6519 MT in the previous year.

- CLOSING STOCK :

The company has manganese ore stock of 1.42 lakh MT valued at Rs.81.89 Crores as on 31.03.2017 as compared to 2.95 lakh MT valued at Rs.130.46 Crores as on 31.03.2016. The stock of FeMn stands at 3008 MT valued at Rs.10.99 Crores as on 31.03.2017 as against 2598 MT valued at Rs.10.26 Crores as on 31.03.2016 and the stock of EMD stands at 73 MT valued at Rs.0.58 Crores as on 31.03.2017 as against 294 MT valued at Rs.2.18 Crores as on 31.03.2016

- CAPITAL / VALUE ADDITION / DIVERSIFICATION PROJECTS:

In order to meet the increasing demand of manganese ore of the steel industry and to remain a market leader in manganese industry in our country, it is necessary to enhance the manganese ore production. Accordingly, MOIL has planned to enhance its production from present level of around 1.10 million MT to 2.00 million MT by 2021, 2.50 million MT by 2025 and 3.00 million MT by 2030 for which a 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.

For the purpose of sustaining the current level of production of manganese ore and, taking into consideration the anticipated increase in steel demand, for taking it to a level of about 2.00 Million MT by financial year 2020-21 and to about 2.50 Million MT by financial year 2024-25 to partially meet the countryâs growing needs, your company has taken up several vertical shaft sinking/deepening projects at the existing mines and has also planned investment in new areas. In order to achieve the target, vertical shaft sinking projects at some of the mines will further be required. The projected capacity levels of 2.00/2.50 Million MT cannot be achieved without making substantial investments. Further, MOIL has also planned investment in renewable sources of energy. For these purpose, MOIL will require substantial investments, which are to be met through existing cash reserves and future accruals.

(A) 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 and development, etc. Total Capex utilization during the year 2016-17 is Rs.120.74 Crores as against Rs.119.65 Crores in the previous year. MOIL has undertaken various mine expansion projects to enhance the production from its existing mines which are detailed below.

(i) COMPLETED PROJECTS / PROJECTS UNDER IMPLEMENTATION

a) Deepening of Holmes (vertical) shaft from 300 mtrs. to 435 mtrs. with loading station, at a capital cost of Rs.28.30 Crores - Shaft deepening and lining works are completed in time. Ancillary development works are in progress.

b) Sinking of 2nd vertical shaft of 160 mtrs. depth including headgear, structure, winding system and other allied works at Chikla Mine at a capital cost of Rs.48.70 Crores â The project is in progress and running as per schedule.

c) Deepening of vertical shaft at Kandri Mine from 185 mtrs. to 245 mtrs. At a capital cost of Rs.14.82 Crores â The project is in progress as per schedule.

d) Sinking of 2nd vertical shaft of 160 mtrs. depth at Munsar Mine at a capital cost of Rs.51.32 Crores â This project is also in progress as per schedule.

e) Sinking of 2nd vertical shaft of 324 mtrs. depth at Ukwa Mine at a capital cost of Rs.77.15 Crores â This project is also in progress as per schedule.

(ii) UPCOMING / NEW PROJECTS :

a) Sinking of large dia. high speed vertical shaft of 330 mtrs. depth at Gumgaon Mine at a capital cost of Rs.194.92 Crores â Offers received against global tender are under evaluation.

b) Sinking of large dia. high speed vertical shaft of 750 mtrs. depth at Balaghat mine at a capital cost of Rs.265.96 Crores â Offers received against global tender are under evaluation.

(B) Acquisition of Mines

In line Strategic Management Plan of the Company, there are plans to have strategic alliances coupled with offtake agreements with manganese ore producers abroad. An open-ended Expression of Interest (EoI) has been hosted on the website of the company with a view to seek offers in this regard. Evaluation of offers is done as and when the same are received. So far, about 27 offers have been received. However, no suitable property has been found for carrying out further due diligence. With the recent amendments in the he Mines and Minerals (Regulation and Development) Act, 1957, the company has signed MoU with Government of Madhya Pradesh for exploring of manganese ore deposits in the State. If and when the reserves are established, the company may go ahead with steps resulting in mining of the ores in the near future in terms of the MoU.

(C) Joint Venture Companies (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 Plants. Due to, high power tariff, there is no operation in the JV companies. 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-I) are annexed as Annexure-I - consolidated financial Statement as per provisions of section 129(3) of companies Act, 2013.

(D) Exploration Business

Ministry of Mines, Government of India has notified MOIL for conducting exploration of various minerals on pan-India basis under per Section 4(1) of the MMDR Act, 1957. This opens up opportunities to MOIL to expand its business in this new area. MOIL is going to sign an MOU with National Remote Sensing Centre, Hyderabad for conducting remote sensing study in four districts of Madhya Pradesh, after which exploration work will be carried out, as per MoU signed with State Government.

- RESEARCH & DEVELOPMENT (R&D):

MOIL is engaged in exploration, exploitation and marketing of various grades of manganese ore and value added products such as Electrolytic Manganese Dioxide (EMD) and High Carbon Ferro Manganese Alloys. MOIL operates three opencast and seven underground mines in narrow manganese ore bodies with varying dip directions with difficult geo-mining conditions associated with poor rock-mass quality of wall rocks. The company has carried out R&D activities to improve the safety and productivity in the mines by introducing modern technology with CSIR-R&D Laboratory, reputed academic and research institutions of the country. MOIL has engaged and associated for various R&D projects with the institutions like CSIR â Central Institute of Mining & Fuel Research (CIMFR), National Metallurgical Laboratory (NML), National Geophysical Research Institution (NGRI), National Environmental and Engineering Research Institute (NEERI), Indian Institute of Technology (IIT), National Institute of Technology (NIT), National Institute of Rock Mechanics (NIRM), Kolar Gold Fields, Indian Institute of Engineering Science& Technology (IIEST), etc.

Some of the R&D projects in MOIL are given below:

(i) Mine Environment: Ventilation reorganization studies for deeper levels have been conducted at Gumgaon and Chikla Mine by Indian Institute of Technology (IIT), Kharagpur. Recommendations have already been implemented at Gumgaon and the implementation is in progress at Chikla Mine.

(ii) Mines Safety - Mining Subsidence: In-house scientific 3-D analysis of subsidence parameter has been carried out for forest cover of Ukwa Mine. The monitoring stations with 5 (five) subsidence monitoring pillars have been properly erected in line with strike and dip directions of the ore body on the surface land area and quarterly measurement is being done by total station and GPS to monitor the 3-D coordinates.

(iii) Mineral conservation: R&D studies have been conducted at Chikla Mine by National Institute of Rock Mechanics (NIRM), KGF.

(iv) Mining Technology :

(a) Method of Stoping: R&D project for mechanized stoping operation has been prepared by IIT (Formerly Indian School of Mines), Dhanbad and implemented for mechanized stoping operations and support systems at Ukwa Mine. This helps in improvement in production, safety and productivity by mechanization of stoping operation.

(b) Alternative to Cartage Explosives:To reduce the ground vibrations, fly rock and noise as also to increase operational efficiency, Site Mix Emulsion (SME) Explosives have been used with shock tubes at Dongri Buzurg opencast mine on experimental basis. The results are encouraging and it is now planned to switch over to the new blasting method.

(v) Collaborative work with Academic and Research Institutions:

(a) MOIL is carrying out joint collaborative R&D project with VNIT, Nagpur for alternative to sand for fill material. Bench scale hydraulic stowing plant has been installed at Department of Mining Engineering, VNIT, Nagpur. This project has given a new avenue for paste fill engineering. Further studies for paste fill are going on.

(b) MOIL is also making collaborative research for slope stabilization with NIT, Rourkela for Slope Monitoring Instruments (under S & T Scheme of Ministry of Mines).

(vi) In house âR&D works:Substitute of fill material -

(a) R&D wing has conducted the study for filling of underground sections at Ukwa Mine by bottom ash on experimental basis. Around 400 cum (mÂ³) of bottom ash have been filled in underground by hydraulic stowing. Further trials are continued for confirmation of the outcome.

(b) Mill tailings of Malanjkhand Copper Project of Hindustan Copper Limited have been utilized for hydraulic stowing operation at Ukwa Mine. Mill tailings have been used to replace sand by in-house R&D studies.

Pre-cast RCC Columns & Sections: In-house developed pre-cast RCC columns and sections have been rapidly erected in drift development and thus improved the safety standard of drift development in underground besides increasing efficiency in concreting operations

Further details regarding R & D activities are given in Annexure â II

- CONSERVATION OF ENERGY:

Various energy saving project are under process at different locations in the company. Energy saving can be achieved by implementation of new technology equipment, reducing electricity consumption by proper monitoring and avoiding wastages. Measures taken/ proposed for reduction in energy consumption are as under.

(i) 48 KW roof top solar power project has been installed at MOIL Bhawan, Nagpur.

(ii) Installation of solar roof top at administrative blocks of all mines.

(iii) 5 MW solar power project in mines areas in Maharashtra and 5.5 MW solar power project in Madhya Pradesh.

(iv) Feasibility of 20 MW solar power project near Rajgarh in Madhya Pradesh.

(v) Installation of 250 KVR, 11 KV capacitor banks at Balaghat mine for power factor improvement and electricity saving.

(vi) Installation of solar panels at residential colonies.

(vii) At Dongri Buzurg opencast mine, conversion of all conventional lights to LED light.

(viii) Occupancy sensors in administrative blocks.

(ix) Regenerative control systems for operation of battery locomotives in underground.

(x) Installation of small size compressors in underground mine for energy saving at Balaghat mine.

Electricity consumption per tonne of production for mines and plants of the Company.

Sr. No	Particulars	KwH Consumption PMT
Sr. No	Particulars	FY 2016-17	FY 2015-16
1.	Manganese Ore	23.54	22.51
2.	Ferro Manganese	3059.00	3156.38
3.	EMD	3453.63	4352.41

KwH consumption PMT of the electricity has gone up for mining activities mainly due to increasing depth of operations requiring more energy consumption and reduction in production during the year under reporting. Further details regarding conservation of energy have been given in Annexure âII.

- 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 (M.P.). 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 could generate 3.23 Crores KwH electricity in comparison to 3.64 Crores KwH in previous year, mainly due to poor wind velocity.

- MINING LEASES AND EXPLORATION:

MOIL is having total 1743.77 Ha lease area as on 31-03-2017 out of which 704.22 Ha is in Maharashtra and 1039.55 Ha is in Madhya Pradesh (excluding of Forest area of Ukwa, Balaghat, Tirodi and Dongri Buzurg, which are yet to be executed). An area of 814.71 hectare has been reserved by the Government in favour of MOIL for prospecting of Manganese ore in Nagpur and Bhandara districts of Maharashtra State. Out of 814.71 hectare area, State Government of Maharashtra has granted 584.309 hectare for prospecting of manganese ore covering 11 P.L areas and remaining areas are under process.

Geophysical survey by Gravity and Magnetic method was conducted within 11 P.L. areas by National Geo-Physical Research Institute (NGRI), Hyderabad. Based upon the results of Gravity and Magnetic survey, core drilling was conducted by MOIL within 3 P.L. areas and the presence of manganese ore has been proved within these areas. Accordingly, the Company has applied for Mining Lease (M.L.) over 211.60 Ha. Out of 3 M.L. applications, Government of Maharashtra has communicated in-principal approval of two M.L. areas covering 132.46 Ha. and one application is under process. Core drilling for remaining P.L areas is to be taken up after requisite approvals from State authorities.

During the year, the Government of Madhya Pradesh has granted Mining lease over 76.409 hectare in village Bharveli & Awlajhari in District Balaghat (Madhya Pradesh) in favour of the Company. MOIL has executed and registered the lease.

In addition to above, Govt. of Madhya Pradesh has also reserved an area of 372.701 Ha in favour of MOIL in village Tavejhari Manjhara, District Balaghat (M.P.), for exploitation of manganese ore.

- DEVELOPMENT OF INFORMATION TECHNOLOGY AND USAGE

The Company has set-up a full-fledged Systems Department in order to ensure an effective computerization of all the functional areas of the Company. In order to ensure an adequate IT infrastructure, steps taken by the System Department are as under.

- Installation of computers at head office and all its mines at Maharashtra and Madhya Pradesh.

- Ethernet based Local Area Networks (LAN) on Windows and Linux platform is in place at all locations.

- It has designed, developed and hosted a dynamic internet website on NIC Server.

- It has also designed, developed and hosted a dynamic intranet website on in-house MOILNET Server

- For effective sharing of applications, databases/ information and other resources on regular basis, all the operational locations are connected through MPLS VPN and VPN over Leased line and Broadband.

- For continuous knowledge acquisition, communication and for inter-unit data transfer facilities, internet connections have been provided.

- Procurement of goods and services costing over Rs.2 lakhs is through e-procurement portal of MSTC to bring transparency in procurement process.

- ERP implementation-

State of the art Data centre for ERP is designed and commissioned at corporate office, Nagpur.

In addition to core modules, viz., Finance and Controlling (FICO), Materials Management (MM), Sales & Distribution (SD), Production & Planning (PP), Plant Maintenance (PM), Human Resource Management (HRM) of SAP, the company has also implemented FLM, DMS and ESS/MSS.

All the routine business transactions are shifted to SAP from the existing legacy systems from January, 2017 and the system is getting stabilised. With this, new MIS is being developed for better monitoring and transparency in operations.

- 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 constantly improving the standards of safety equipment 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 employees to inculcate safety consciousness.

- Regular meetings of Safety Committees in which accident analysis are made meticulously with a view to reduce/eliminate

injury and accidents.

- A close inter-action is done with employees at all levels to prevent accidents to the maximum extent possible.

- Vocational and refresher training is imparted to each employee regularly apart from specialized training.

- Training programs on role of safety in sustainable development and mining and environmental law are conducted regularly.

- In the area of occupational health and management system, MOIL has received OHSAS 18001:2007 certificate for Balaghat, Dongri Buzurg, Chikla, Kandri, Munsar, Gumgaon, Tirodi and Ukwa mines.

- Risk Assessment studies are conducted for all underground as well as opencast mines by outside experts and safety management planis prepared as per the requirements of DGMS.

- Disaster management plan has been prepared for mines, plants, school, hospital and administrative offices.

- Mines Environment & Mineral Conservation Week has been celebrated under the aegis of Indian Bureau of Mines, Nagpur for year 2016-17.

- Safety audit of Balaghat, Ukwa and ferro manganese plant has been conducted.

- ENVIRONMENTAL PROTECTION AND RENEWABLE ENERGY:

Ecology conservation is crucial in todayâs 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. All the mines of MOIL including sand ghats have got Environment Clearance from the MoEF, New Delhi. Your company, with a goal of achieving sustainable development, has taken proactive measures to reduce global warming. The Company is conscious of its responsibility towards environmental protection in and around its leasehold areas. The cumulative plantation at various Mines as on 31.03.2017 is 19.23 Lakhs sapling. In order to be an eco-friendly organization, MOIL has set up Wind Energy Farm of Total 20 MW at Dewas (M.P.). it has also installed 48 KW roof top solar panel at MOIL Bhawan Nagpur. The company is also in the process of installation of 10.50 MW capacity solar power projects at its mines. The company has replaced conventional lights with LED lights in some of its working places and the same will be done in remaining places in a phased manner.

- VIGILANCE ACTIVITIES / EVENTS

The objective of vigilance is to ensure that the management gets the maximum out of its various efforts and transaction. The functioning of vigilance department includes preventive as well as proactive vigilance with the main thrust on systems improvements in the organization. Some of the important activities of the vigilance department during the year 2016-17 are as under:

(1) SO 9001-2008: ISO certificates.

(2) Inspections: General and surprise inspections are being carried out regularly to ensure adherence to norms during execution and to suggest improvements in the system. During 2016-17, total 60 periodic and surprise inspections and studies were carried out.

(3) E-governance: E-procurement is being done for purchases and work contracts above threshold value. The threshold value for purchases and work contracts is Rs.2 lakhs.

(4) Structured meetings of vigilance: As per the instructions of CVC and Ministry of Steel, structured meetings of vigilance with CMD are conducted regularly. During the period, 2 meetings were conducted. Issues related to e-governance, leveraging technologies, tendering management, awards of work, recruitment policies, etc., were discussed.

(5) Leveraging Technology: With reference to Central Vigilance Commissionâs circular, emphasized on the effective use of website and leveraging technology in discharge of regulatory, enforcement activities and dealing with complaints. The main thrust areas for leveraging technologies are procurement of goods and services also, the status of bill payments to contractors /suppliers is posted on website. All tender documents, promotion lists, transfer lists, CSR works, seniority list in applications for recruitment, notices and other pro-forma are regularly posted on the website.

(6) Updation of Manuals: Various manuals such as Purchase Manual, Works and Contract Manual, Personnel Manual, etc. have been prepared and put in practice. Purchase Manual, Works and Contract Manual, Personnel Manual are posted on the Companyâs website / intranet. Updation of manuals is carried out on continuous basis as a part of proactive vigilance and is being perused with the management.

(7) Tender & 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 the same is being monitored.

(8) Training Programmes: During 2016, vigilance department conducted 4 training programs at Corporate Training Center and at Munsar Training Center, covering 167 employees (612 Hrs.) on vigilance awareness.

(9) Job Rotation: Posts have been identified for job rotation considering the sensitivity of the posts and the officials working on these posts more than 3 years are being rotated by the management.

(10) Vigilance clearance: Vigilance clearances were issued to 1085 employees during the period for different purposes.

(11) System Improvements: As an outcome of different investigations relating to complaints, study, inspection etc., advisories and suggestions were given to the management for systems improvements in the following areas.

- Use of technology

- Preparation of estimates and rate schedules in works contracts.

- Repeat orders and single entity working with large numbers of contracts.

- Online submission and refund of EMD.

- Scrutiny of caste and other relevant documents for recruitment under caste category.

- Procedures related to recruitment of medically unfit cases.

(12) Annual Property Return: As per CVC guidelines, all executives in the organization have submitted their Annual Property Returns and 20% of the above have to be scrutinized every year. Accordingly, 72 executivesâ Annual Property Returnsâ scrutiny has been carried out during the period.

(13) Vigilance Awareness Week: Vigilance Awareness Week was observed from 31st October to 5th November 2016 at all Mines /offices of MOIL Limited. On this occasion vigilance department came out with the 5th annual issue of vigilance magazine Shuchita. Various competitions, workshops, seminars and vigilance awareness rally were organized during the week for employees, students of school and colleges and public at large.

- 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 at Mines. Head of personnel department has been appointed / designated as Appellate Authority under the Act. The names of all the PIOs and the Appellate Authority have been hosted in Companyâs website www.moil.nic.in.

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

Awareness has been generated amongst employees about the intention and true spirit of this Act. The various provisions of the Act have been highlighted by issue of the circulars to keep transparency in day-to-day work and maintenance of all the records in a proper/systematic manner. Further, the Company has also been hoisting/updating in Companyâs website as much information suo motu at regular intervals for the public, so that public has minimum resort to use the various provisions under the RTI Act to obtain information.

During the year under report, the company has received total 66 applications under RTI Act, out of which 28 applications were disposed and 38 were rejected in terms of provisions of RTI Act. Appellate authority has received 14 RTI appeals out of which 12 appeals were disposed of during the year and 2 cases were pending as on 31.03.2017, which have been disposed.

- TRAINING PROGRAMMES AND SKILL DEVELOPMENT

During the year 2016-17, total 52 training programmes (internal& external) were conducted for employees at Munsar Training Centre and at Corporate Training Centre, Nagpur. The participants who were imparted training during the year in various programmes include 344 mandays of executives and 311 mandays of non-executives. The company has installed ERP System, under which SAP training for one month was imparted to executives and non-executives. In addition to this, the company has also imparted training to apprentices under Apprentices Act, 1961.MOIL has been encouraging its Trade apprentices to show their inherent skills and has been providing various platforms to exhibit their skill.

The Company has signed MoU with National Skill Development Corporation (NSDC) to collaborate and support skill development initiatives in the vicinity of MOIL mines to make available skilled manpower for the development of the industrial ecosystem in the area. Under this programme training has been imported by channel partners of NSDC to 443 on roll employees, 153 contractual workers and 126 Local Youth residing nearby villages of the Mines. Accordingly total 722 participants was imparted training for 6296 mandays.

- SWACHHATA ABHIYAN

At MOIL, as a part of Swachhata Abhiyan, âClean Dayâ (Swachhata Diwas) is observed every month on 1st Wednesday at all Mines situated in Madhya Pradesh, Maharashtra including Corporate Office at Nagpur. On Swachhata Diwas the employees have been cleaning office premises, work place, residential premises, roads, drains and heaps of garbageâs disposed of for maintaining health and hygiene.

All the mines observe Swachhata week from 27th September to 2nd October every year on the eve of Gandhi Jayanti. Swachhata Pakhwada is also being observed in the company every month at one of the mines of MOIL Ltd. from 1st to 15th of each month in which date-wise various activities regarding cleanliness drive at mines and nearby villages has been observed.

- USHERING IN CASHLESS TRANSACTIONS:

In line with Govt. of Indiaâs move, towards less cash transactions, MOIL is conducting awareness propaganda not only to its employees and contract labour but also conducting awareness programmes for the shopkeepers, and local villagers, through seminars, posters, nukkad natak, etc., by involving bank officials and NGOâs.

- LABOUR WELFARE SCHEMES, RECREATION & MEDICAL FACILITIES

MOIL is carrying out numerous welfare activities such as provision of housing, drinking water, electricity, hospital, health camps, schools, home loans and interest subsidies on home loans etc., for the benefit of the employees. Salient features of such schemes are as follows.

- 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 minesâ colonies.

- The colonies and streets of the camps are well illuminated. The employees have been provided with subsidised units of electricity for their residence.

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

- The scheme of post-retirement medical insurance for retired employees extends medical facilities.

- Group superannuation cash accumulation scheme (defined contribution), i.e., pension scheme, is in operation in the company w.e.f. 01.01.2007.

- Assistance is extended for running primary schools at some of the mines where free education is imparted. School buses are provided at all the mines to facilitate transport of children to nearby areas for schools/colleges.

- DAV MOIL Public School has been set up at Chikla Mine. Total strength of the school is 864 students during academic session 2016-17.

- Reimbursement of tuition fees and scholarship are being provided 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 under CSR Scheme.

- WELFARE MEASURES TAKEN FOR SC/ST

MOIL is a labour intensive organization with 6201 employees on its rolls as on 31.03.2017 out of which around 80% belong to SC/ST/ OBC (including 45.96% belonging to SC/ST). Your Company is also taking keen interest in development of the tribal population living in the vicinity of the mines situated in remote areas by taking following actions.

- Adopting villages near the mines and providing drinking water facilities, road maintenance, periodical medical check-ups and treatment to the people living in these villages.

- Providing financial aid, stationery, books, etc., to the school adjacent to the mining areas.

- Skill development training programmes for SC /ST local youth under skill development programmes.

- EMPOWERMENT OF WOMEN

MOIL has 731 women employees which constitute 12.38% of its total workforce of 6201 as on 31.03.2017.

In compliance of the directives of the Honâble Supreme Court, guidelines relating to prevention of sexual harassment of women workers at work place were issued by Govt. of India, Ministry of Human Resources Development. Accordingly, a Sexual Harassment Preventive Committee has been formed. The directives have been widely circulated to bring awareness amongst the women employees. No case of any harassment has since been reported at any of the Mines of the Company or its Corporate Office.

Mahila Mandals are working effectively at all the Mines of the Company. Various cultural, social, educative and community activities 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 formed at 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.

- DISCLOSURES UNDER THE PREVENTION OF SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT, 2013

As per the provisions of the Sexual Harassment of Woman at The Workplace (Prevention, Prohibition & Redressal) Act, 2013, a Sexual Harassment Prevention Committee has been set up in the Company to deal with the cases of sexual harassment. The Committee members are as under.

1. Smt. Preeti Joshi, Chief (Legal) .. Head of the Committee

2. Smt. (Dr.) Bharti Rangari, Chief (M.S.) .. Secretary

3. Shri Nitin Pagnis, DGM (Per.) .. Member

4. Shri Neeraj Pandey, Company Secretary .. Member

5. Smt. Ujwala Abhyankar, Sr. Manager (Per.) .. Member

6. Smt. Asha Singh, Ex-Principal .. Independent Member

The names of the Committee Members have been uploaded on Companyâs website.

The summary of the sexual harassment complaints received during the year 2016-17 is as under.

No. Of complaints received	No.of complaints disposed off	No. Of complaints pending
NIL	Not applicable	Not applicable

- PERSONNEL

The manpower as on 31.03.2017 of your Company is given below :

Category	Executive	Non-Executive	Workers	Total
Male	328	2223	2919	5470
Female	24	107	600	731
Total	352	2330	3519	6201

The category-wise details of employeesâ strength as on 31.03.2017 are as under:

Group	Scheduled Caste	Scheduled tribe	O.B.C	Others	Total
A	58	15	69	153	295
B	34	9	51	87	181
C	305	191	413	389	1298
D	856	1382	1574	615	4427
Total	1253	1597	2107	1244	6201
Total %	20.21%	25.75%	33.98%	20.06%	100%

- CITIZENâS CHARTER AND GRIEVANCE REDRESSAL MECHANISM :

(a) Employeesâ grievances â 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.

(b) Public Grievance â Any citizen can submit his grievance through online Centralized Public Grievance Redressal and Monitoring System (CPGRAMS). All Grievance officials have been apprised of the manner in which the public grievance is to be disposed off. The system adopted for dealing the grievance of public was constituted, if any, on the basis of instructions received from various authorities from time to time.

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

(d) Monthly/quarterly grievances are reviewed and dealt with by designated Public grievance officers at mines and corporate office and disposed of within stipulated period of one month.

(e) The data related to grievances at the units/mines are submitted by respective grievance Officers in monthly/quarterly returns to the Head Office.

Status of public and staff grievances for the period 01.04.2016 to 31.03.2017 â

Sr. No	Type of grievances	Outstanding on 31.03.2016	Received during the year	Disposed off during the year	Outstanding on 31.03.2017
1	Public grievances	Nil	41	41	Nil
2	Staff grievance	Nil	10	10	Nil
	TOTAL	Nil	51	51	Nil

- CORPORATE SOCIAL RESPONSIBILITY (CSR) AND SUSTAINABILITY

Corporate Social Responsibility in MOIL is a continuous process. MOIL has been carrying out CSR activities in a resolute manner for several years. It has framed a CSR Policy duly approved by the Board of Directors. Several schemes have been taken up and being implemented under CSR in the current financial year, which broadly include the following.

- In a major step towards providing quality education to rural children, MOIL, in association with DAV Group of Schools, has constructed a large school at Village Sitasaongi, in Bhandara district.

- In its education and skill development initiative, MOIL is supporting various schools near its mines in District Balaghat of Madhya Pradesh and Bhandara District of Maharashtra.

- Training on logistic skills, Minematesâ and Blastersâ training has been imparted to 130 local youths as per NSDC (National Skill Development Council) guidelines.

- Under its Light to Lives program, free cataract surgeries and Paediatric eye surgeries have been carried out on needy rural people.

- MOIL has also taken up various infrastructural development works like construction of village roads, community halls, renovation of schools, support for plantations, etc. in the vicinity of the operational area of MOIL mines. A report on CSR activities as required under Companies Act, 2013 is attached as Annexure-III.

- PROCUREMENT FROM MICRO, SMALL AND MEDIUM ENTERPRISES

As per requirement of Micro, Small and Medium Enterprises Development (MSMED) Act 2006 and notification issued by Central Government in this regard, PSUs are required to purchase minimum 20% of total annual purchase of products produced/services rendered by MSMEs. It further requires that 4% out of 20% shall be earmarked for procurement from MSE owned by Scheduled Castes or Scheduled Tribes entrepreneurs.

It also requires the PSUs to report goals set with respect to aforesaid procurement and achievement made thereto in its Annual Report. In this regard, it is to mention that the total procurement of goods, which are produced by MSEs, amounts to Rs.47.99 Crores (previous year Rs.53.75 Crores) out of which total value of goods procured from MSE (including MSE owned by Scheduled Castes or Scheduled Tribes entrepreneurs) is Rs.20.86 Crores (previous year Rs.17.07 Crores), which amounts to 43.46% of total annual procurement of products produced by MSE.

Thus, the Company is complying with requirement of Micro, Small and Medium Enterprises Development (MSMED) Act 2006. For financial year 2017-18, MOIL has a goal to procure products produced / services rendered by MSMEs as mentioned in the first para above.

- PROGRESSIVE USE OF HINDI

In MOIL about 97% works are being done in Hindi at mine. The Unicode system has been installed in all computers of the company. Hindi language software has been provided in computers and training has been imparted to its employees so that the can use the same in their day to day working.

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; so far, 312 employees have already been given training for Pragya (High level), which is a continuous process in the company.

Company also promoted/contributed towards hindi magazines like âVAINGANGAâ published by Nagar Rajbhasha Karyanven Samiti Balaghat and âRAJBHASHA DARPENâ published by Nagar Rajbhasha Karyanven Samiti Nagpur.

The Company also publishes in-house bilingual magazine âSANKALPâ in Hindi/English highlighting its performance, achievements, activities, etc. The officers and employees of MOIL are sent to participate in various competitions organized by the Hindi Samiti. Employees of the company are encouraged to participate in various competitions in Hindi conducted by other institutes too.

- AWARDS AND ACCOLADES

- 4 Mines of MOIL received 5-Star Rating Award under Sustainable Development at the hands of Honâble Minister for State, I/C Power, Coal and New Renewable Energy and Mines, Shri Piyush Goyal, on 15th February, 2017 at the event National Conclave on Mines and Minerals held at New Delhi.

- Corporate Governance - Excellent grading by DPE for 2015-16, received this year.

- Four prizes in 47th All India Rescue Competition-2016 held at Mines Rescue Station, WCL, Nagpur.

- DIRECTORS

During the year under review, Shri G.P. Kundargi (Chairman-cum-Managing Director), Shri. S.S. Shukla (Nominee Director, Govt. Of Madhya Pradesh), Dr. Ashok Kumar Lomas, Shri. J.P. Dange, Shri. G.S. Grover and Smt. Sunanda Prasad (Independent Directors) have ceased to be directors of the company after attaining superannuation age or completion of their tenure. The Board places on records its sincere appreciation of their invaluable contribution and guidance during their tenure.

Shri M.P. Chaudhari, who was Director (Finance), has been appointed as Chairman-cum-Managing Director of MOIL w.e.f. September 1, 2016.

The Government of India has appointed Smt. Sunanda Prasad, Retired IAS Officer as Independent Director for a period of three years, which shall expire on 30/01/2020 and Shri. Manaohar Lal Dubey, Secretary, Govt. of MP, Mineral Resource Department as Govt. Nominee Director till 06.03.2018.

Shri D. S. Ahluwalia, Director (Finance) of NMDC Ltd has been assigned additional charge of the post of Director (Finance) of MOIL Ltd for a period of three months, i.e., till 30.11.2017 or till regular incumbent joins the post, or until further order, whichever is the earliest.

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 SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Independent Directors are generally appointed for a period of three years.

Pursuant to section 134(3)(q) read with rule (8)(5)(iv) of Companies (Accounts) Rules,2014, the Board has designated Chairman-cum- Managing Director [Chief Executive Officer (CEO)], Sr. DGM (Finance) [Chief Finance Officer (CFO)] and Company Secretary, as Key Managerial Personnel.

- APPOINTMENT, PERFORMANCE EVALAUTION 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.

Ministry of Corporate Affairs vide its notification dated June 5, 2015 has exempted Government Companies from applicability of some of provisions/sections of the Companies Act, 2013. As per the above notification, the Nomination & Remuneration Committee is not required to formulate the criteria for appointment of Directors, their remuneration policy and carrying out their performance evaluation. In MOIL, being a government company, the appointment of directors and their performance evaluation are undertaken by administrative ministry i.e. Ministry of Steel, Government of India, as such performance evaluation by the Board of its own performance, that of its Committees and individual directors, are not applicable/required.

The remuneration of officers is decided as per Government guidelines on pay revision and remuneration of other employees of the company is decided as per Wage Settlement Agreement entered into periodically with the recognised Union. Appointments/ promotions, etc., of the employees are made as per Recruitment and Promotion Policy approved by the Board.

- RISK MANAGEMENT POLICY

- DIRECTORSâ RESPONSIBILITY STATEMENT

Your Directors state that

(i) in the preparation of the financial statements, 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, 2017 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 frauds or other irregularities;

(iv) they have prepared the financial statements 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 Statutory Auditors of the Company for the year 2016-17.There is no fraud reported by auditors of the company under sub-section (12) of section 143 of the Act. The Statutory Auditorsâ Reports are attached, which are self-explanatory. CAG has also issued NIL comment letter in respect of financial statements of 2016-17. Copy of the same is enclosed.

- SECRETARIAL AUDITORS

The Board had appointed M/s A. Mehta and Co., Indore as Secretarial Auditors for 2016-17. Their Report is enclosed herewith which is self-explanatory. There are no qualification in the report except on composition of the Board of the company and its committees during the year. Being a Government Company, all the directors are appointed by the Government of India. At present, the composition of committee is as per the statuary requirement.

- RELATED PARTY TRANSACTIONS

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. 23 in Note No. 1.1 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), who is appointed by the Government of India, for monitoring any unethical behavior, actual or suspected fraud or violation of the companyâs 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 provides for adequate safeguards against victimization of persons who use such mechanism.

- COST AUDIT

As per provisions of the Companies Act, 2013 and rules made thereunder, M/s Ujwal P. Loya & Co., Cost Accountants, Nagpur have been appointed as the Cost Auditor of the Company to conduct audit of cost accounting records maintained by the Company for the year ended 31.03.2017. The due date for filing the Cost Audit Reports for the financial year ended 31stMarch, 2017 is 27th September, 2017. The Cost Audit Report and Compliance Report for the year 2016-17 will be filed within the time limit as prescribed by the Ministry of Corporate Affairs.

- CONSOLIDATED FINANCIAL STATEMENTS

Your company has no subsidiary company. However, it has two Joint Ventures namely RINMOIL Ferro Alloys Pvt. Ltd and SAIL & MOIL Ferro Alloys Pvt. Ltd.

Pursuant to provisions of Section 129 (3) of the Companies Act,2013, the duly audited Consolidated Financial Statements are also placed herewith together with necessary notes, annexures and disclosures, as applicable and required.

Both the joint ventures have not yet commenced project/operations.

- OTHER DISCLOSURES

(i) R&D and Technology Absorption, etc.: Particulars 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, are enclosed as Annexure-II to this report.

(ii) Foreign Exchange earnings and outgo: The Company has not made any export of manganese ore or its other products during the financial year 2016-17. During the year under review, the Company has incurred expenditure on foreign travel/others of Rs.13.51 lakhs in foreign currency as against Rs.33.50 lakhs in the previous year.

(iii) Particulars of Employees: MOIL, being a Government Company, has been exempted from certain provisions of the Section 196 (2), (4), (5) and also Section 197 of the Companies Act, 2013. As such, 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 and 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 Boardsâ Report.

(viii) 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 31.03.2017 is annexed as Annexure- IV.

(ix) In order to save papers and contribute in green initiatives of the Government, the company is opting for sending Abridged Financial Statement (AOC- 3) to the shareholders.

- DETAILS OF SHARES IN SUSPENSE ACCOUNT

The details of shares in suspense account are as follows.

Description	No.of Shareholders	No.of Shares
Aggregate number of shareholders and outstanding shares in the suspense account as on 31.03.2016	12	204
Number of shareholders who approached the company for transfer of shares from suspense account during the year	0	0
Number of shareholders to whom shares were transferred from suspense account during the year	0	0
Shares transferred to unclaimed suspense account	0	0
Aggregate number of shareholders and outstanding shares in the suspense account as on 31.03.2017	12	204

The voting rights on these shares in suspense account as on 31.03.2017 shall remain frozen till the rightful owner of such shares claims the shares.

- 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, whichare assessed against actual achievements after close of financial year. From the year 1995-96, the company has been continuously getting excellent ratings (except in 2015-16, where it has got good due to worst market conditions in the decade). The rating for 2016-17 has not been issued so far. Continuing the practice, MOIL has signed MoU with the Ministry of Steel for the year 2017-18 also.

- 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 Boardsâ Report, and enclosed as Annexure-V. Certificate of Corporate Governance is also attached with Corporate Governance Report which is self-explanatory. There is no other qualification in the certificate except on composition of the Board of the company during the year. The Company, however, is in compliance of the requirement as on 31st March 2017. Being a Government Company, all the directors of the Company including that of Independent Directors are appointed by the Government of India.

- MANAGEMENT DISCUSSION AND ANALYSIS AND BUSINESS RESPONSIBILITY REPORT

A report on Management Discussion and Analysis is placed at Annexure - VI. In compliance with Regulation 34 of SEBI (Listing obligations and Disclosure Requirments) Regulations, 2015, Business Responsibility Report in also Annexed as Annexure-VII.

- INDUSTRIAL RELATIONS

Industrial relations in MOIL continued to be cordial and peaceful during the year 2016-17. 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 organization and expeditious decisions for the settlement of grievances had been functioning satisfactorily.

- BUYBACK OF SHARES

Your Company has done buyback of 3,48,12,196 fully paid equity shares (representing 20.72% of the total number of equity shares outstanding before buyback) at a price of Rs.248 per share for an aggregate consideration of Rs.863.34 Crores during 2016-17. The buyback was done in accordance with provisions contained in Companies Act, 2013 and SEBI (Buyback of Securities) Regulation 1998. Govt. of India and Govt. of Maharashtra have also participated in the buyback of shares.

- ACKNOWLEDGEMENT

Your Directors acknowledge the support, co-operation and guidance received from the Govt. of India, Ministry of Steel, Ministry of Environment and Forest, State Governments of Maharashtra and Madhya Pradesh, all Government Departments, Companyâs shareholders, Unions/Associations of Employees, Bankers, valued customers, suppliers and all other stakeholders.

The employees of the Company have continued to show 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

Date : 10^th August, 2017 M. P.Chaudhari

Place : New Delhi Chairman-cum-Managing Director

Mar 31, 2016

DEAR SHAREHOLDERS,

On behalf of Board of Directors, I feel great pleasure in presenting the 54rd Annual Report of your Company, together with the Auditor''s Report and Financial Statements, for the year ended on 31st March, 2016.

FINANBIAL RESULTS:

Financial results of 2015-16 and oh the previous year are highlighted below:

Rs. in crores

Particulars	2015-16	2014-15
Net sales	628.74	823.25
Other income	n52.15	306.61
Total income	880.89	1139.86
Profit before interest, depreciation and tax (EBIDTA)	322.72	695.65
Depreciation	52.47	45.08
Profit before tax (PBT)	270.26	650.57
Less: Provision for taxation	97.27	222.56
Profit after tax (PAT)	112.98	428.01
Transfer to general reserve and CSR reserve	75.00	250.18
KEV Financial Ratios:
Ratios	2015-16	2014-15
EBIDTA to sales turnover (%)	51.3 3	84.50
P/AT to net worth (%)	5.01	12.66
EBIDTA to average capita! employed (% )	9.64	i21.81
Earning pet spare (face Value ''/0 each)	10.30	25.48
Book value per share	205.56	201.29

DIVIDEND:

MOIL is a dividend paying company since many years. Continuing the same during the year 2015-16, an Interim dividend (@301;, i.e., Rs.3.00 per Equity Share, has been paid in the month of March, 2016. The Board of Directors of your company has further recommended a final dividend @ 20%, i.e., Rs.2.00per Equity Share, for the year. The total dividend for the year 2015-16 works out to Rs.5.00per equity share as against ''8.50 paid in previous year. Thus, the total dividend outlay for the year works out to Rs.84.00 Crore@5% (Previous year Rs.142.80 Crores).

FINANCIAL PERFORMANCE:

The adverse market condition during 2015-16 has resulted into down trend in the performance of your company. Your company has recorded net sales (excluding excise duty) of Rs. 628.74Crores during the financial year 2015-16, as compared to Rs.823.25Crores of previous year. Profit before tax (PBT) for the year has decreased by 58.46% to ''270.26Crores, in comparison to previous year''s PBT of Rs.650.57 crores. The Company has earned a profit after tax (PAT) of Rs.172.98Crores as against Rs.428.01Crores in the previous year.

As per the Government Guidelines, your Company has deployed surplus funds in fixed deposits and earned interest income which is included in total interest received of Rs.244.06crores (Previous Year Rs.279.77crores) and clubbed under other income. The interest income has come down mainly because of reduction of interest rates during the year.

SALES:

Financial Year 2015-16 has been one of the toughest years for Steel and Manganese Ore Industry in the recent past. The company reduced prices of its various grades of manganese ore during the year by about 45% due to adverse market conditions. The average sales realization came down from t82N3 PMT to 05911 PMT during the year. The companyâs sales revenue of manganese ore ha- come down by OP.72% at Rs.571.71 croees againstRs.749.i5 crores in the previous year. Despite that, with its prudent marketing and pricing policy, your company has been able to sell 9.67 lakh tones of manganese ire during 2015-16 in comparison to 9.10 lakh -ones of manganese ere in the previous year registering a positive growth of 6.26%.

In respect of manufactured products of the company, viz., EMD, Ferro Manganese including Ferro Manganese slag, the net sale during the year 2015-16 was ''Â°R.83 crore s in comparison to Rs. 65.64 crore s during the previous year. The sale of EMD was 714 MT as against â¢55 MIT in the previous year, whereas sale of Ferro Manganese was at 7922 MT as against 8587 MT in the previous year.

PRODUCTION AND PTODUCTIVITY.

Taking into consideration the overall market condition and nose-dive fall of manganese ore prices globally, particularly during 3rd quarter continuing v-to beginning of 4th quarter your Company has curtailer the products of low grade of manganese ore. The Company has produced 10.32 Lakh Tonnes of various grades of manganese ore of against 11.39 Lakh tonnes in previous year. The output per man shift (OMS),has been at 0.718 tonnes (previous year 0.818tonnes). The production of EMD was 612 as against the 950 tones during the previous year. -the production of Ferro Manganese was 6519 MT as against the 10045 MT in the previous year. The production of Furor Manganese has come d own mainly Due to major placed ma lieutenant work taken up for two-three months Affecting the production whereas prediction of EMD has been reduced due to poor market conditions.

CLOSING STOCK :

The Company has a closing stock of 2.95 lakh tonnes of manganese ore valued at Rs.130.4D Crores as on 31.03.2016 as compared to 0.48 lakh tonnes of manganese ore valued at ''109.38 Crores as on 31.03.2015.The closing stock of ferro manganese was 2598tonnes valued at Rs.10.26 Crores as on 31.03.2016 as against 4001tonnes valued at Rs.16.36 Crores as on 31.03.2015. The closing stock of EMD as on ^a1.^fR. 2016 w as 294 tonnes ( previous year 396Tonnes ) valued a t Rs. 2. 18 Crores (^previous yefr''3.Â°Â°Crores).

CAPITAL | VALUE ADDITION /DIVERRIFICATION 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 1.1 million tonnes to 2.0 million tonnes by 2020 and 2.5 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.

(A) 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 utilization during the year 2015-16 is Rs.119.65 crores as against Rs.114.78 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 detailed below.

(i) COMPLETED PROJECTS / PROJECTS UNDER IMPLEMENTATION

(a) Deepening of vertical shaft at Chikla Mine from 109 mtrs. to 169 mtrs. at capital cost of Rs. 9.12 Croresâ The project has been completed in October, 2015.

(b) Deepening of Holmes (vertical) shaft at Balaghat miae from 300 mtrs. depth to 435 mtrs. depth at capital cost of Rs. 28.30 Crores - The project is under progress and expected to be completed by November, 2016.

(c) Sinking of another vertical shaft of 160 mtrs. depth at Chikla Mine at capital cost of Rs.48.70 Crores -The project is under progress and Dunning as per schedule.

(d) Deepening of vertical shaft at Kandri Mine from 185 mtrs. to 245 mtrs. at capital cost of Rs. 14.82 Crores - The project is under progress and running as per schedule.

(e) Sinking of another vertical shaft of 160 mtrs. depth at Munsar Mine at capital cost of Rs.51.32 Crores- The project is under progress and running as per schedule.

(ii) U PCOMING f NSW PROJECTS :

(a) Sinking of another vertical l shaft of 324 mtrs. depth at Ukwa Mine at capital cost of Rs.77.15 crores.

(b) Sinking of large dia. high speed vertical shaft of 330 mtrs. depth at Gumgaon Mine at capital cost of Rs.194.92Crores

(c) Sinkife of a large dia. High speed vertical shift of 750 mtrs depth at BalagDat miee at a capital cost of Rs.265.96 crores

(B) Acquisition of Mines in and outside Country

In line with Strategic Management Plan of the Company, there are plans to have strategic alliances coupled with off take agreements with manganese ore producers abroad. An open-ended Expression of Interest (EoI) has been hosted on the website of due company wit'' a view to seek offers in this regard.

MOIL has two separate Joint Ventures (50:50) with Steel Authority of India Limited (SAIL) and RashtriyaIspat Nigam Limited (RINL) for setting up Ferro Alloys Plants. As per TEFR prepared by MECON Ltd., the projects are not viable at the present power tariffs of State Electricity Boards. In view o^f t^gis, there is no activity in ^Cloth the joint: venture companies during the year. Pursuan^t 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- On associate companies (Form AOC-I) is annexed as Annexure-I. Consolidated financial Statements as per provisions of section 129(3) of companies Act, 2013 are also enclosed to the report in respect of these joint venture.

(D) Exploration nosiness

Ministry! to Mine! Government of India has notified MOIL for nonaddicting exploration ovarian minerals all over the country as per Section 4(1) of the MMDR Act, 1957. This opens up opportunities to MOI- to expand its Business in this new area. Company is working on this and it is expected to come out with some business propositioning the coming years. It has already offered Government of Madhya Pradesh to carry out exploration in identified areas with a proposal to carry out mining of manganese ore through a joint venture with the State Governmentâs mining arm, whic^h is under consideration

REE-ARCH & DEVELOPMENT:

MOIL is engaged in exploration, exploitation and marketing of manganese ore and value added products such as Electrolytic Manganese Dioxide and High Carl/on Ferro Manganese Alloy. MOIL operate 3 opencast and 7 underground mines in narrow/ ore fading (difficult get-mining conditions assonate with pert rock-mass quality. The; company has carried out R & D activities to improve the safe-y and productivity in the mines by introducing modern technology with. CSIR-R&D Laboratory, Academic and R&D institutions of the country. MOIL has engaged and associated with various agencies for R&D projects, i.e., CIMFR, NML, NGRI, NEERI, IIT, ISM, NIT, VNIT, NIRM ,IIEST. Thrust areas of t^he R&D projects MOI La are:

(i) Mine environment: Ventilation reorganization studies for deeper levels have been conducted by Indian Institute of Technology (IIT), Kharagpur at Gumgaon, and Munsar Mine. It has improved the face ventilation and productivity of underground sections by relocating the ventilation fan.

(ii) Mining technology: R&D project for mechanized stopping operation has been prepared by Indian School of Mines (ISM), danbad and implemented for mechanized stopping operations a n d s u p [3 ort system s at U kwa Mine. This helps for imp movement in production, safety and productivity by mechanization of stopping operation.

(iii) Mineral conservation:

(a) National Institute of Rock Mechanics (NIRM), KGF, has conducted R&D studies at Chikla mine. The studies have increased mineable reserves for exploitation. Valuable mineral locked in situ pillars have been utilized for exploration.

(b) For gainful utilization of mineral rejects, scientific studies have been carried out in respect of black mineral reject dumps of Ukwa Mine from Modern Mineral Processing Laboratory and Pilot Plant of Indian Bureau of Mines (IBM), Nagpur

(iv) Pro duct development: Development of process flow sheet for manufacturing Electrolytic Manganese Metal (EMM), a value added product, having good market potential. In this context, National Metallurgical Laboratory (NML), Jamshedpur has pre pared R&D report and it was established that high pure EMM can be produced in bench scale with the manganese ore of the company. Further studies are in progress.

(v) Collaborative work with academic and research institutions:

(a) MOIL is carrying out joint collaborative research & development project with VNIT, Nagpur for alternative to sand for fill material.

(b) MOIL is also making collaborative research for slope stabilization with National Institute of Technology, Raurkela for Slope Monitoring Instruments (under S &T Scheme of Ministry of Mines).

(vi) In house-R&D to reinforce concrete i.e. under hounds: Pre-cast RCC column and sections have been prepared and erected in underground drifts. I- has improved the rate concreting in cross cuts.

(vii) Safe blasting practice:

(a) Control blasting studies have been carried out by CSIR-CIMFR for Dongri Buzurg and Tirodi Mine to control fly rock and ground vibrations.

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

(viii) In house -R&D for substitute of fill material to replace/reduce rand consumption :

(a) R&D department is conducting study for filling of underground sections at Ukwa Mine by bottom ash on experimental basis. Around 400 cubic mtr of bottom ash hi as Seen filled in underground by hydraulic stowing.

(b) Mill tailings of Malanjkhad Copper Projects have been utilized for hydraulic stowing operation at Ukwa Mine. Mill tailings have been used to replace sand by in-house R&D studies.

Further detail s regarding R&D activities have Seen given in Annexure- II₍

CONSGRVATION OF ENERGY:

MOIL gives special emphasis on conservation of energy. This is achieved by improvement in efficiency of machinery, power factor and regular monitoring performance of equipment. However, it depends of overall function of plant and mac^hinery and also other working conditions.

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

A. 10 MW capacity solar power projects proposed to Se installer.

2. Installation of rooftop solar panel at administrative office is in process!

3. Installation of 250 KVR, 11 KV capacitor banks has also been proposed to installed at Blight mine for power factor improvement and electricity saving.

4. About 8500 1.ED lamps have been provided to employees at subsidized rates to reduce domestic electricity consumption. Install action of LED lamp fixtures is also proposed at administrative office.

electricity consumption per ton of production for mines and plants of the Company.

Sr. No	Particulars	KwH consumption PMT
Sr. No	Particulars	Year 2015-16	Year 2014-15
1.	Manganese Ore	2 2.51	19.51
2.	Ferno Manganese	3156.38	2815.14

KwH consumption PMT of the electricity has gone up mainly due to reduction in production during the year for reasons stated elsewhere in the report. Further details regarding conservation of energy have been given in Annexure âII.

Wind power generation

Pradesh Power Management Company Limited. The company has generated 3.65 croreKwH electricity in comparison to 3.28 Crores KwH in previous year.

MINING LEASES AND EXPLORATION:

MOIL is having total 1613.611 Ha lease area as on 31-03-2016 out of which 699.066 Ha is in Maharashtra and 914.545Ha is in Madhya Pradesh (excluding of Forest area of Ukwa, Balaghat, Tirodiand Dongri Buzurg, which are yet to be executed). An area of 814.71 hectare has been reserved by the Government in favour of MOIL for prospecting of Manganese ore in Nagpur and Bhandara district of Maharashtra State. Out of 814.71 hectare area, State Government of Maharashtra has granted 597.44 hectare for prospecting of Manganese ore covering 11 P.L areas and remaining areas are under process.

Geophysical survey by Gravity and Magnetic method was conducted within 11 PL areas by National Geo-Physical Research Institute (NGRI), Hyderabad. Based upon the results of Gravity and Magnetic survey, core drilling was conducted by MOIL within 3 P L areas and proved the presence of Manganese ore within these areas, hence, applied for Mining Lease over 211.60 Ha. Out of 3 M. L. applications, Government of Maharashtra has communicated in-principal approval of two M.L areas covering132.46 Ha. and one application is under process. The Company has applied for renewal of balance PL areas. Core drilling for remaining P.L areas will be taken up after approval.

Government of Maharashtra has granted Mining lease over 53.75 hectare in village Parsoda, TehsilRamtek, Dist. Nagpur in favour of MOIL which has been executed and registered.

During the year, the Government of Madhya Pradesh has granted Mining lease over 48.974 hectare in village Lugma, Tehsil Paraswada of Balaghat District (Madhya Pradesh) in favour of the Company. MOIL has executed and registered the lease.

Exploration of additional Resources/New virgin deposits is a continuous process at MOIL. During last five years, with exploration by core-drilling has added nbout 4.0⁶ million (estimated and provisional) tonnes of in situ (Be⁶) resources. This has enhanced MOIL''s total in situ Resents and Resources ^so 8ⁿ.47millioe tonnes⁶

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. Steering committee as well as core committee to carry out the implementation task has been formed. The best suited ERP products for MOIL and System Integrator (SI) have been finalized through open tendering and work-order has been placed. The Business Blue Print (BBP) phase of the Project is completed. Realization phase is in progress, procurement of required hardware is completed, end user training and testing of different modules is in progress. While some of the functions have recently been shifted on ERP, all activities are expected to be completed shortly and the project is expected to Go-Live in phases during FY 2016-17.

SAFTY AND OCCUPATIONA L HEALTH :

-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 inter-action with employees at all levels to prevent accident the maximum extent possible.

-Vocational and refresher training is imparted to each employee regularly apart from specialized training.

-Safety and Environment department had conducted training programs on e) Importance of safety, health, sustainable in mines.

b) Disasters management in mines .

c) Occupational health and safety in mine.

-Prestigious National Safety Awards have also been awarded to various Mines of MOIL.

-In the area of occupational health and management system, MOIL received OHSAS 18001:2007 certificate for Balaghat, Dongri Buzurg, Chikla, Kandri, Munsar, Gumgaon, Tirodi and Ukwa mines.

_P MO IL has conducted Risk Assessment study for all its U/g as well as O/c mine by outside experts and safety management plan has been made as per the requirement of DGMS.

-MO IL has prepared disaster management plan for mines, plants, school, hospital, and administrative offices.

-Safety audit of Balaghat, Ukwa and Ferro Mn. Plant have also been carried out.

ENVIRONMENTAL PROTECTION AND RENEWABLE ENERGY:

Ecology conservation is crucial in todayâs 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. All the mines of the company including sand ghats have got Environment Clearance from the MoEF, New Delhi. Your company, with a goal of achieving sustainable development, has taken proactive measures to reduce global warming. The Company is conscious of its responsibility towards environmental protection in and around its leasehold areas. The cumulative plantation at various Mines is about 18.50 Lakhs sapling. In order to be eco-friendly organization, MOIL has set up Wind Energy Farm of total 20 MW 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 MPPMCL.

MOIL is also in the process of procurement and installation of 5.50 MW solar power project in MP Mines with total cost Rs.32.18 Crores and 5.00 MW solar power projects in Maharashtra Mines with total cost Rs.29.65 Crores, for captive use in mines and plants in both the States.

VIGILANCE :

Vigilance Department of MOIL lays main thrust on preventive as well as proactive vigilance activities to curb corruption and malpractices with a view to safeguard the interest of the organization and to facilitate a conductive environment enabling people to work with integrity, honesty in a transparent manner. Following are the important activities of Vigilance Department undertaken during the year 2015 -16:

(i) ISO 9001-2008:The certificate of vigilance department has been re-validated till 22nd May, 2017.

(ii) INSPECTIONS: During the year, total 45 general/surprise inspections and 06 file scrutinizes were carried out. Vigilance provides vital inputs to the management for improving the prevailing systems and improving transparency. Accordingly, six advisories were issued to the management during the year.

(iii) E-GOVENNANCE: The disposal of scrap/surplus items, sale of select grades o( manganese ore and Ferro manganese/slag ore being id the through e-auctions. E-procurement is being done for purchases and work contracts above a threshold value.

(iv) 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 2015-16, four meetings were conducted. Issues related to e-governance, leveraging technology, tender management, award of works, recruitment policy, etc. have been discussed

(v) LEVERAGING TECHNOLOGY: With reference to the Chief Vigilance Commissionâs circular, vigilance is emphasizing on the effectively leveraging technology in discharge of regulatory, enforcement activities and dealing with complaints. The main thrust areas for leveraging technologies are procurement of goods and services. Also, registration of contractors successful award of contract and status of bill payments to contractors are published on website. All tender documents, applications for recruitment and status, notices and other preformed are posted on the website of the company.

(vi) UPDATION OF MANUALS: Various manuals such as Purchase Manual, Works and Contract Manual, Personnel Manual, etc., have been prepared and put in practice and the same are posted on the Companyâs website/ intranet. Updation of manuals on continuous basis as part of proactive vigilance is being pursued with the management.

UPDATION OF MANUALS: Various manuals such as Purchase Manual, Works and Contract Manual, Personnel Manual, etc., Cave been prepare and put ib practice and tie same are posted on the Company''s website/ intranet. Up Ration of manuals on continuous basis as part o/ proactive vigilante is being pursued with the management.

(viii) TENDERS & 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 the same is being monitored.

(viii) TRAINING PROGRAMME: During 2015-16, Vigilance Department conducted 4 training programmes at three different locations, covering 154 employees. Topics such as Procurement, Good governance, Lokpal&Lokayukta Act 2013, Vigilance Awareness & Preventive Vigilance, etc., were covered.

(ix) JVB ROTATIONS: 6 5 posts having 258 officers out of 320 have been identified as sensitive requiring job rotation considering their sensitivity d the posts. Executives are beef rotated by the management.

(x) VIGILANCE CLEARANCE: Vigilance clearances were issued to 645 employees during the period, for various purposes.

(xi) System IMPROVEMENTS. As an outcome of different investigations relating to sampling, study, inspection., etc, advisories and suggestions were given for systems improvements in the following areas:

1. CCTV and Biometrics installation

2. Preparation of estimates and fate schedules in work contracts.

3. Restructuring of capital asset register.

4. Policy of retention / destruction of records

5. Online Vendor Registration

6. Procedure related to recommitment and promotion

(xii) ANNUAL PROPERTY RETURNS: All executives in the organization have submitted their Annual Property Returns. As per CVC guidelines 20% of such returns have to be scrutinized every year. Accordingly, scrutiny of Annual Property Returns of executives has been carried out during the year.

(xiii) VIGILANCE AWARENESS WEEK: Vigilance Awareness Week was observed from 26th October 2015 to 31st October 2015 at all the mines / offices of MOIL Limited. On this occasion, vigilance department came out with the 4th annual issue of vigilance magazine "SHUCHITA" which was released by the CMD. Various competitions, workshops, vigilance awareness rally and seminars were conducted during the week for employees and students of school and colleges in and around MOIL premises

IMPLEMENTATION OF RTI:

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

MOIL has appointed CPIOs at the Corporate Office and PIOs/APIOs have also been appointed at all its Mines. General Manager (Personnel) has been appointed/designated as A^ppellate Authority. under the Art. The names of all the ^pIOs/APIOs and the Appellate /Authority have been also hosted on the company''s website www.moil.nic.in.

T^he information in reflect of company its employ is, etc., has been prepared under prescribed heads as per Section 4(1) (b) of the RTI Act, and the same been hosted on the Companyâs normal. MOIL Pas been submitting necessary information and returns to this prescribe is authorities and updating the same regulars.

A lot of awareness has been generated in order to make Companyâs employees aware about the intention and true spirit of this Act. Various provisions of the Act have been highlighted by issue of circulars to enable transparency in day-to-day work and maintenance of all the records in a proper/systematic manner. Further, the Company has also hosting/updating in Companyâs website as much information suomoto 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 organized to make them understand the importance of RTI Act in the present scenario and provisions of the Act:.

During the year under report, the company has received total 64 applicants under RTI /Act, out which 31 applications were disposed and 33 rejected. Hens appellate authority received eight case soaped! and the same were disposed of during the period.

TRAINING PROGRAMMES OND SKILL DEVELOPMENT:

During the year 2015-16, total 136 training programmes (internal and external) were conducted. It includes 95 vocational training programmes which were conducted for workers at vocational training centre at mines. Total of 3939 participants, who were imparted training during the year in various programmes, included 698 executives, 446 non-executives and 2795 workers. Total 160875 maydaysâ 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 trade apprentices to show their inherent skills and has been providing various platforms to exhibit their skills. In this direction, a skill development programme was organized under which the trade apprentices prepared models in various fields of activities. A programme was organized at the Munsar Training Centre on 11th March, 2016 which was observed as âYoung Talent Dayâ. A total of 87 trade apprentices participated in the programme and 25 models of creative concepts were submitted. After evaluation by the technical team of judges, prizes were awarded to the best models.

The Company has also entered into an MoU with National Skill Development Corporation (NSDC)to collaborate and support skill development initiatives in the vicinity of Moilâs mines to make available skilled manpower for the development of the industrial ecosystem in the area. Under this programme, training will be imparted to employees (including contractual workers). NSDC shall also impart training to local youths in and around the MOIL plants/mines to build capability and earn better livelihood.

LABOUR WELFARE SCHEMES, RECREATION & MEDICAL FACILITIES

-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.

-The colonies and street) of the camps are well illuminated. The employees have been provided with electricity Nor their residence on concessional rate.

-Hospitals/ Dispensary 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 employees is 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.

^- The scheme of post-retirement medical insurance for retired employees extends medical facilities to the separated employees.

-Group superannuation cash accumulation scheme (defined contribution) is in operation in the company, which is implemented w.^-A. 01.01.0007.

- Assistance is extended for 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.

_- MOIL has entered into an agreement with DAV Public School Authority, under which a school is running at Chikla Mine up to class 8thStd. Total strength of the School is about 857 students.

^- Reimbursement of tuition fees and scholarship are being provided 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 under CSR Scheme.

WELFARE MPASURES TAKEN FOR SC/ST:

MOIL is a labour intensive organization with 6305 employees on its rolls as on 31.03.2016 out of which 78.95% belongs to SC/ST/OBC (including 45.60% belonging to SC/ST). Our Company is also taking keen interest in development of the tribal population living in the vicinity of the mines situated in remote areas by taking following actions.

^- Adopting villages seat the mines and providing drinking water facilities, road maintenance, periodical medical check-ups and treatment to the people living in these village.

^- Providing .financial aid, stationery, books, etc., to the school adjacent to the mining areas.

-Providing tri-cycles to the physically challenged persons.

-Providing sewing machines to women for their development and self-employment.

-Organizing training classes for self-employment scheme.

- Other welfare measures for the development and upliftment of tribal women such as conducting sewing classes, adult literacy classes, AIDS awareness programmes, propagating such other programmes by display of posters, notices and banners, leprosy awareness programme, etc. .

-Providing training to the physically challenged persons under Person with Disabilities Act 1995.

E MPOWERMENT OS WOMEN:

MOIL has 780 women employees, which constitutes 12.38% of its total workforce of 6305 as on 31.03.2016.

In compliance of the directives of the Supreme Court, Govt. of India, Ministry of Human Resources Development, issued guidelines relating to sexual harassment of women workers at work place. Accordingly, a Complaints Committee comprising of three officials including a lady Doctor was constituted in the year 1999 & reconstituted in Juneâ 2014. 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.

MahilaMandals 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.

Every year 8th March is celebrated as International Women Day and various programmes are organized to mark the day. Company elso grants Maternity Leave end 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

DISCLOSURE REQUIREMENTS UNDER THE SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT 2013

As per the provisions of the Sexual Harassment of Woman at The Workplace (Prevention, Prohibition &Redressal) Act 2013, a Sexual Harassment Prevention Committee Aus feel set up in the Company to deal with the cases received under Sexual Harassment. The Committee members are as under-

1. Smt.Preeti Joshi, Chief (Legal) Head of the Committee

2. Smt. (Dr.) BhartiRangari, Chief (M.S.) Secretary

3. ShriNitinPagnis, Chiefider.) Member

4_. ShriNeerajPan dey, Company decretory Member

5. Smt.UjwalaAbhyankar,Manarer(Per.) Member

6. Smt.Asha Singh, Ex-Principal Independent Member

Tue names of the Pummittee Members have been uploaded on Companyâs web site, i.e. .,www.moil.nic.in

The summary of the Sexual Harassment complaints received during the "ear 2015-16is as under.

No. of complaints received	No. of complaints disposed off	No. of complaints pending
NIL	IMot applicable.	IMot applicable.

PERSONNEL

The manpower as on 3N.03.1/016 of the Company is given below:

Category	Executives	Non-Executives	P.R. Works	Total
Male	3015	23A9	2821	5525
Female	21	115	644	780
Total	326	25na	34an	6305

The category-wise details of employees strength as on 3P_:03.P016 are us ender:

Group	Scheduled caste	Scheduled tribe	O.B.C.	Others	Total
A	51	13	62	148	274
B	33	7	53	92	185
C	318	196	432	433	1379
D	798	1391	1556	654	4399
Total	1268	1607	2103	1327	6305
Total %	20.11%	25.49%	33.35%	21.05%	100%

CITIZEN''S CHARTER AND GRIEVANCE REDRESSAL MECHANISM :

(a) 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.

Public Grievance - Any citizen can submit his grievance through online Centralized Public Grievance Redressal and Monitoring System (CPGRAMS). All Grievance officials have been apprised of the manner in which the Public Grievance received are to be Disposed of. The system adopted for dealing the grievance of Public was constituted on the basis of instructions received from various authorities in the past.

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

(c) Monthly/quarterly grievances are reviewed & dealt with by designated public grievance officers at mines and corporate office & disposed of within stipulated period of sixty days.

(d) The date related to grievances at the units are submitted b^e unit grievance Officers in monthly / quarterl^y returns to the Head Offline. The name are examined & submitted to Ministry.

Status of Public Staff Grievances for the period 01.04.2015 to 31.OT.2016.

Sr. No.	Type of Grievances	Grievances outstanding as on 01.04.2015	No. of grievances received during the period	No. of cases disposed off	No. of cases pending on 31.03.2016
1]	Public Grievances	----	----	----	----
2]	Stuff Grievances	Nil	972	965	07
	Total	Nil	972	965	07

CORPORATE SOCIAL RESPONSIBILITY (CSR) AND SUSTAINABILITY:

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

^-In the Education and skill development initiative, MOIL is supporting various schools near its mines in M.P. and Maharashtra. Schools are imparting quality education to children who are residents of the villages of the surrounding areas and mostly come from poor families.

^- Providing during water to villages in remote areas by instancing bore wells.

_- Under its Light to Lives program,1850 free cataract surgeries and 150 pediatric eye surgeries have been carried out for needy rural people.

- Company has promoted MOIL Foundation; a Society registered under Society Registration Act, 1860.It has entered in to a MoU with Maharashtra Institute of Technology Transfer for Rural Areas (MITTRA), an Associate Organization of BAIF for Community Development Programme.The project endeavours to develop resources at the village level for better quality of life. 21 villages have been identified in the vicinity of MOIL mines, 5 villages in Nagpur districts, 11 villages in Bhandara district of Maharashtra and 5 villages in Balaghat of Madhya Pradesh for the Community Development Program. A detailed micro plan for development of village resources is prepared.

The main areas of Community Development Programme are:

- Agriculture development, (soil testing, soil health card, promotion of composting methods, crop diversification, SRI in paddy, etc),

- Women empowerment if capacity building and training to SHG members for strengthening SHG.

- Quality of life programme in which major thrust is on community health for which regular health awareness programs and health check-up camps with free medicine distribution are organized, which helps in overall development of the area.

- 100 nos. of Biogas have been distributed in theist 21 villages and linked with vermin compost beds and development of kitchen garden.

- 21 e-learning units are provided in the schools for increasing awareness about e-learning in the students.

-21 schools in the identified villages have been provided with infrastructure support like desk and benches and also provided with books for school library and sports material. Solar study lamps have been distributed in all the 21 villages as a step towards promotion of solar energy. Anganwadis in all the 21 villages are provided with water filters and floor mats for maintaining better hygiene.

In addition, the Company has taken up various infrastructural development works like construction of Village Roads, community Halls, Renovation of schools, support for plantations etc. in the vicinity of the operational area of MOIL mines. An annual report as required under Companies Act, 2013 is attached as Annexure-III.

Procurement from Micro, small and Medium Enterprises Development (MSMED) Act 2006

As per requirement of Micro, Small and Medium Enterprises Development (MSMED) Act 2006 and notifications issued by Central Government in this regard, PSUs are required to purchase minimum 20% of total annual purchase of specified products produced and services rendered by MSEs. It further requires that 4% out of 20% shall be earmarked for procurement from MSEs owned by Scheduled Castes or Scheduled Tribes entrepreneurs.

It also requires the PSUs to report goals set with respect to aforesaid procurement and achievements made thereto in its Annual Report. In this regard, it is to mention that the total procurement of goods during 2015-16 amounts to Rs.53.75 Crores (previous year ''57.62 crores) out of which total value of goods procured from MSEs (including MSEs owned by Scheduled Castes or Scheduled Tribes entrepreneurs) isRs.17.07 crores (previous year Rs.15.56 crores) which amount to O1.7d% o9totel annual procurement of products produced by MSEs.

Thus, the Company is complying with requirement of MSMED Act 2006. For financial year 2016-17, MOIL has a goal to procure products produced / services rendered by MSMEs as mentioned in the first Para above.

PTOGRESSIVU USE OF HINDI

In MOIL, about 97% of the works are beings done in Hindi at mines. The Unicode system has been implanted in majority of computers d 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 âHindi Education Schemeâ 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 Nagar Rajbhasha Karyanvay Samiti, Nagpur, has appreciated companyâs in-house magazine âSankalpâ and other excellent works done by MOIL in the field of Hindi. The officers and employees of MOIL are sent to participate in various competitions organized by the Semite. Employees of the company are encouraged to participate in various competitions in Hindi conducted by other institutions.

AWARDS AND ACCOLADES:

- Two National Energy Conservation awards, for mining sectors, first prize for Ukwa mine and second prize for Kandrimine awarded by Honourable Energy minister on National Energy Conservation day 2015.

-Corporate Governance Excellent grading by DPE for 2014-15.

-Metalliferous Mines Safety Week 2015 competition held in which second prize has been won by Chikla mine for Best First Aid team (Underground).

-Metalliterous Mines Safety Week 2015 competition held in which first prize has been won by Chikla mine for Explosives Underground Mines with Winder.

-Metalliferous Mines Safety Week 2015 competition held in which second prize has been won by Chikla mine for Mine Working and Statutory Survey Plan Underground Mines with Winder.

-Metalliferous Mines Safety Week 2015 competition held in which third prize has been won by Chikla mine for Ventilation in Underground Mines with Winder.

_- ME MC Week 2015-16 competition held in which second prize has been won by Chikla mine for A forestation.

^- ME MC Week 2015-16 competition held in which first prize has been won by Chikla mine for Management of Minerals &sub Gra de Minerals.

-^Gold Awards - CCQC-2015 organized by Quality Circle Forum, Nagpur ChapterParakh Quality Circle of Tirodi Mine has also won-"Manikgarh Cement Rolling Trophy" for Best of the Best Quality Circle Award in National Convention on Quality Concepts

- NCQC - 2015

- Aman Quality Circle of EMD Plant, Dongri Buzurg Mine has won - Meritorious Award in National Convention on Quality Concepts â NCQC â 2015.

DIRECTORS:

During the year under review,Shri A. K. Jha, Director (Production & Planning) has left the company to join as CMD of Mahanadi Coalfields Ltd. w.e.f. 01/11/2015. The Board places on records its sincere appreciation of his invaluable contribution and guidance during his tenure. The Government of India has appointed Ms.Sangita Gairola, Retired IAS Officer as Independent Director on the Board of MOIL during the year for a period of three years, which shall expire on 26/11/2018.

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 SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Independent Directors are generally appointed for a period of three years and the existing term of the all independent directors, except Ms. SangitaGairola, is expiring on 17/11/2016.

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

APPOINTMENT, PERFORMANCE EVALAUTIONANDREMUNCRATION POLICY:

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

The Company functions under the overall supervision and guidance of the Board of Directors and its various Committees. Decisions of the Board and Committees are executed and implemented by the Whole time Directors and the executives of the Company.

In MOIL, being a Government Company, all the Directors are appointed and their terms and conditions of appointment are fixed, by the Government of India. The Ministry of Steel, Government of India, adopts a separate system for evaluation of pre and post appointment performance of the companyâs functional Directors including the Chairman-cum-Managing Director. The performance evaluations of other Government Directors are done by the respective Ministries of Central/State Government. In view of the same in and in view of the fact that any repetitive evaluation may prove to be counter-productive, the company has restricted its evaluation to operating performance, result achievements and working towards the objects of the company. On these parameters, the performance of the Company and its Board of Directors has been very good considering the overall market condition and despite heavy reduction in price of manganese ore. In addition, the Government of India also set-up a mechanism through which evaluation of companyâs performance in achieving its objects is done on the basis of various parameters set out in the MOU.

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 into periodically with their Union. The appointments/promotions, etc., of the employees are made as per Recruitment and Promotion Policy approved by the Board.

RISK MANAGEMENT POLICY:

DIRECTORS'' RESPONSIBILITY STATEMENT :

Your Directors state that:

(i) in the preparation of the financial statements, 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, 2016and 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 frauds or other irregularities

(iv) they have prepared the financial statements 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 were been appointed by the Comptroller& Auditor General of India as Statutory Auditors of the Company for the year 2015-16. There is no fraud reported by auditors of the company under sub-section (12) of section 143 of the Act. The Statutory Auditorsâ Reports reattached, which are self-explanatory.

SECRETARIALAUDITORS :

The Board had appointed M/s A. Mehta and Co., Indore as Secretarial Auditors for 2015-16. 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 during the year. The

Company, however, is in compliance of the requirement as on 31st March 2016. Being a Government Company, all the directors are appointed by the Government of India. The Board believes that whenever there is requirement, the Government of India will make appointment of requisite number of directors on the Board of MOIL.

RELAT LD PARTY TRA NRADTION:

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. 11 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.

VIGIF 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 behavior, actual or suspected fraud or violation of the companyâs 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 provides for adequate safeguards against victimization of persons who use such mechanism.

COST AUDIT":

As per provisions of the Companies Act, 2013 and rules made there under, M/s Ujwal P. Loya & Co., Cost Accountants, Nagpur have been appointed as the Cost Auditor of the Company to conduct audit of cost accounting records maintained by the Company for the year ended 31.03.2016. The due date for filing the Cost Audit Reports for the financial year ended 31stMarch, 2016 is 27th September, 2016. The report will be submitted within prescribed time limit. The Cost Audit Report and Compliance Report for the year 2014-15 were filed within the time limit as prescribed by the Ministry of Corporate Affairs.

CONSOLIDATED FINANCIAL STATEMENTS

Your company has no subsidiary company. However, it has two Joint Ventures namely RINMOIL Ferro Alloys Pvt. Ltd and SAIL&MOIL Ferro Alloys Pvt. Ltd.

Pursuant to provisions of Section 129 (3) of the Companies Act,2013, the duly Audited Consolidated Financial Statements are also placed herewith together with necessary notes, annexure and disclosures, as applicable and required.

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, are enclosed as Annexure-II to this report.

(ii) Foreign Exchange earnings and outgo: The Company has not made any export of manganese ore or its other products during the financial year 2015-16. During the year under review, the Company has incurred expenditure of Rs.33.50Lakhs in foreign currency as against Rs. 33.40 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, guaranteesandinvestmentf: There are no loans, guarantee s &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 Boardsâ Report.

(vii) Number of meetings of the Board: The details in this respect are given in Clause No. 2.0 of toe Corporate Governance Report which Is a part of this Boards'' depo rt.

(viii) 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, 2O14 an Extract o-Annul Return (Form M0T-9) as on the financial year ended on 31.03.2016 is annexed as Annexure- IV.

(ix) Resume of the Directors appointed since last Annual General Meeting and also of those whose appointment/reappointment is proposed, as mandated under

DETAILS OF SHARES IN SUSPENSE ACCOUNT:

The details of shares in suspense account are as follows:

Description	No. of Shareholders	No. of Shares
Aggregate number C shareholders and the outstanding shares is the suspense account lying as on 031.00.2015	14	238
Number of shareholders who approached the company for transfer of shares from suspense account during the year	02	34
Number of shareholders to whom shares were transferred from suspense account during the year	0e	34
Shares transferred to unclaimed suspense account	0	0
Aggregate number of shareholders and the outstanding shares in the suspense account lying as on 31.03.2016	12	200

The voting rights on these shares in suspense account as on 30.03.2016 shall remain frozen till the rightful owner of such shares claims the shares.

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 20thyear in succession for the year 2014-15. The rating for 2015-16 has not been issued so far. Continuing the practice, MOIL will be signing MoU with the Ministry of Steel for the year 2016-17 also.

CORPORATE GOVSRNANCE:

The Company strives to attain high standards of Corporate Governance. A separate section on Corporate Governance is annexed and forms part of the Boardsâ Report, and enclosed as Annexure-V. Certificate of Corporate Governance is also attached with Corporate Governance Report which is self-explanatory. There is no other qualification in the certificate except on composition of the Board of the company during the year. The Company, however, is in compliance of the requirement as on 31st March 2016. Being a Government Company, all the directors are appointed by the Government of India. The Board believes that whenever there is requirement, the Government of India will make appointment of requisite number of directors on the Board of MOIL.

MANAGEMENT DISCUSSION ANDANALYS IS:

A report on Management Discussion and Analysis i s p laced at /Annexure - VI.

INDUSTRIAL RELATIONS:

Industrial relations in MOIL continued to be cordial and peaceful during the year 2015-16. 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 organization and expeditious decisions for the settlement of grievances had been functioning satisfactorily.

BUYBACK OF SHARES

The Board of Directors of the Company have unanimously approved buyback of fully paid equity shares of Rs. 10 each not exceeding 3,48,12,196 equity shares (representing 20.72% of the total number of equity shares) at a price of Rs. 248 per share payable in cash for an aggregate consideration not exceeding Rs 863,34,24,739 in its meeting held on 7th June, 2016. The buyback is in line with provisions contained in Companies Act, 2013and SEBI (Buyback of Securities) Regulation 1998.

Govt. of India and Govt. of Maharashtra have also submitted their intention to participate in the proposed buyback of Shares. The company is taking up further actions for implementation of the buyback of shares.

ACKNOWLEDGEMENT:

On behalf of the Board of Directors

Date: Jun e 27, 2016 G. P. Kundargi

Place: Bhopal Chairman-cum-Managing; Director

Mar 31, 2015

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.

FINANCIAL RESULTS:

Financial results of 2014-15 and of the previous year are highlighted below:

Rs in crores Particulars 2014-15 2013-14

Net sales 823.25 1021.28

Other income 316.61 303.32

Total income 1139.86 1324.60

Profit before interest, depreciation and tax (EBIDTA) 695.65 804.51

Depreciation 45.08 35.18

Profit before tax (PBT) 650.57 769.33

Less: Provision for taxation 222.56 259.76

Profit after tax (PAT) 428.01 509.56

Transfer to general reserve and CSR reserve 250.18 370.34

KEY Financial Ratios:

Ratios 2014-15 2013-14

EBIDTA to sales turnover (%) 84.50 78.77

PAT to net worth (%) 12.66 16.29

EBIDTA to average capital employed (%) 21.81 27.80

Earning per share (Face Value Rs. 10 each) 25.48 30.33

Book value per share 201.29 186.15

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%.

(iii) Electricity consumption per ton of production for mines and plants of the Company is as under.

Particulars KwH consumption PMT 2014-15 2013-14

1 Manganese ore 19.51 21.11

2 Ferro manganese 2815.14 2986.86

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.

DISCLOSURE REQUIREMENTS UNDER THE SEXUAL HARASSMENT OF WOMEN AT THE WORKPLACE (PREVENTION, PROHIBITION & REDRESSAL) ACT 2013

As per the provisions of the Sexual Harassment of Woman at The Workplace (Prevention, Prohibition & Redressal) Act 2013, a Sexual Harassment Committee has been set up in the Company to deal with the cases received under Sexual Harassment. The Committee members are as under:-

1. Smt. Preeti Joshi, Chief (Legal) Head of the Committee

2. Smt. (Dr.) Bharti Rangari, Chief (M.S.) Secretary

3. Shri Nitin Pagnis, Chief (Per.) Member

4 Shri Neeraj Pandey, Company Secretary Member

5. Smt. Ujwala Abhyankar, Manager (Per.) Member

6. Smt. Asha Singh, Ex-Principal Independent Member

The names of the Committee Members have been uploaded on Company's web site, i.e., www.moil.nic.in The summary of the Sexual Harassment complaints received during the year 2014-15 are as under.

No. of complaints No. of complaints No. of received complaints disposed off pending

NIL Not applicable. Not applicable.

PERSONNEL

The manpower as on 31.03.2015 of the company is given below:

Category Executives Non-Executives P.R.Workers Total

Male 320 2536 2732 5588

Female 19 119 691 829

Total 339 2655 3423 6417

The category-wise details of employees' strength as on 31.03.2015 are as under:

Group Scheduled caste Scheduled tribe O.B.C. Others Total

A 30 8 36 130 204

B 47 12 83 117 259

C 334 224 418 497 1473

D 800 1321 1450 846 4417

Sweeper 64 0 0 0 64

Total 1275 1565 1987 1590 6417

Total % 19.87% 24.39% 30.96% 24.78% 100%

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.

Status of Public and Employee Grievances for the period 01.04.2014 to 31.03.2015:

Type of Grievances No.of No.ofcases No. of Grievances outstanding grievan disposed off pending on as on cesasreceived period 31.03.2015 01.04.2014 during the

Public Grievances Nil Nil Nil Nil

Staff Grievances Nil 586 586 Nil

TOTAL Nil 586 586 Nil

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 manner from several years. The Company has framed a CSR Policy which is duly approved by the Board of Directors Several schemes have been 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.

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 2014- 15. 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.

DETAILS OF SHARES IN SUSPENSE ACCOUNT:

The details of shares in suspense account are as follows:

The voting rights on these shares in suspense account as on 31.03.2015 shall remain frozen till the rightful owner of such shares claims the shares.

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.

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

Place: New Delhi G.P. Kundargi Date: 23.07.2015 Chairman-cum-Managing Director

Mar 31, 2014

Dear Shareholders,

On behalf of Board of Directors, I feel great pleasure in presenting the 52nd Annual Report of your Company, together with the Auditors Report and Audited Accounts, for the year ended on 31st March, 2014.

At the outset, your Directors are pleased to inform that the Government of India, recognizing the excellent performance of your company, has up-graded MOIL from Schedule ''B'' to Schedule ''A'' company. MOIL was last up-graded to Schedule ''B'' category in 2002. Since then, the company has been continuously recording the excellent performance. It has been a profit making company over the last two decades and its CAGR has been about 20% since its last up-gradation.

FINANCIAL RESULTS

Financial results of 2013-14 and of the previous year are highlighted below:

Rs. in Crores

Particulars 2013-14 2012-13

Net Sales 1021.28 967.12

Other Income 303.32 235.27

Total Income 1324.60 1202.39

Profit before interest, depreciation and tax (EBIDTA) 804.51 669.82

Depreciation 35.18 33.03

Profit before tax (PBT) 769.33 636.78

Less: Provision for taxation 259.76 205.06

Profit after tax (PAT) 509.56 431.72

KEY Financial Ratios

2013-14 2012-13

EBIDTA to Sales Turnover (%) 78.77 69.26

PAT to net worth (%) 16.29 15.61

EBIDTA to average capital employed (%) 27.80 26.10

Earning Per share (Face Value Rs. 10 each) 30.33 25.70

Book Value per share 186.15 164.62

DIVIDEND

MOIL is a dividend paying company since many years and continuing the same during the year 2013-14, an Interim Dividend @ 40% i.e., Rs. 4.00 per Equity Share, has been paid in the month of Feb., 2014. Taking into consideration the profit for the year, the Board of Directors of your company has further recommended a final dividend @ 35%, i.e., Rs. 3.50 per Equity Share, for this financial year. The total dividend for the year 2013-14 works out Rs. 7.50 per equity share as against Rs. 5.50 paid in previous year. Thus, the total dividend payout for the year works out to Rs. 126.00 Crores @ 75% (Previous year @55%, i.e., Rs. 92.40 Crores).

FINANCIAL PERFORMANCE

Your company has recorded net sales (excluding excise duty) of Rs. 1021.28 Crores during the financial year 2013-14, as compared to Rs. 967.12 Crores of previous year. Profit before tax (PBT) for the year has increased by 20.82% to Rs. 769.33 Crores, as compared to previous year. The Company has earned a Profit after Tax (PAT) of Rs. 509.56 Crores as against Rs. 431.72 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. 249.86 Crores (Previous Year Rs. 229.17 Crores) and clubbed under other income. Other income also includes Rs. 44.82 Crore towards write back of provisions made in earlier years for employee benefits, no longer considered necessary now.

SALES

The Board is pleased to inform that during the year 2013-14 net sales of Manganese Ore was Rs. 946.16 Crores as against Rs.890.73 Crores in the previous year registering a growth of 6.22%. The Company has sold 11.33 Lakh tonnes of Manganese Ore in 2013-14 in comparison to 11.93 Lakh tonnes of Manganese Ore in the previous year. Though sales quantity is decreased by 5.02% in comparison to last year, the company has succeeded to register an increase in sales turnover by 6.22% due to its prudent marketing policy and better product mix resulting in higher sales realisations

In respect of manufactured products of the company, viz., EMD, Ferro Manganese and Ferro Manganese Slag, the net sale during the year 2013-14 was of Rs. 66.61 Crores in comparison to Rs. 67.13 Crores during previous year. The sale of Electrolytic Manganese Dioxide (EMD) was 893 tonnes, as against 1014 tonnes in the previous year, whereas sale of Ferro Manganese was at 8707 tonnes in comparison to sales of 10080 tonnes during previous year.

PRODUCTION AND PRODUCTIVITY

Your company has produced 11.35 Lakh Tonnes of various grades of Manganese Ore as against 11.39 Lakh tonnes in previous year. The company has been able to maintain the same level of production despite heavy and unprecedented rains during extended monsoon. Taking this into consideration, the performance has been excellent. The Output per Manshift of the Company has been 0.805 tonnes (previous year 0.798 tonnes). The production of Electrolytic Manganese Dioxide (EMD) ncreased by 17.43%, from 786 tonnes to 923 tonnes during 2013-14. The production of Ferro Manganese also increased from 9210 tonnes to 10042 tonnes, i.e., 9.03% higher than the previous year.

CLOSING STOCK

The Company has a closing stock of 0.48 lakh tonnes of manganese ore valued at Rs. 20.63 Crores as on 31.03.2014 as compared to 0.76 lakh tonnes of manganese ore valued at Rs. 30.72 Crores as on 31.03.2013. The closing stock of Ferro manganese was 2543 tonnes valued at Rs. 8.47 Crores as on 31.03.2014 as against 1208 tonnes valued at Rs. 5.50 Crores as on 31.03.2013. The closing stock of EMD as on 31.03.2014 was 101 tonnes (Previous Year 71 Tonnes) valued at Rs. 0.91 Crores (Previous Year Rs. 0.58 Crores)

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 from the present level of about 1.1 million tonnes to 2.0 million tonnes by the year 2020-21. 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 / diversifi cation projects etc

- Mine Expansion Projects :

MOIL has undertaken various Mine expansion projects to enhance the production from its promising Mines. Some projects have already been completed and some are at various stages of implementation as under:

Balaghat Mine

Balaghat Mine produces high grade Manganese ore with 48% Manganese content. Presently, around 24.2 million tonnes ore reserve in different category is available upto 750 mtrs. depth from surface. It is targeted to enhance the production of this Mine from present level. This mine will have largest contribution to increase in production. In order to sustain the present production level and to achieve enhanced production, following Mine expansion Projects are undertaken

- Deepening of Production shaft from 10th level (240 Mtrs.) to 15th level (390 Mtrs.)

The project was completed in 2011 at a cost of Rs. 8.00 crore to sustain the present production level with a margina ncrease in the production

- Deepening of Holmes shaft from 12th level (300 Mtrs.) to 16Â½ level (435 Mtrs.)

Deepening of Holmes shaft is in progress and scheduled to be completed by 2016-17 at an estimated cost ofRs. 28.00 crore.

- High Speed Shaft

The company has planned for enhancement of production at Balaghat mine by starting development and mining parallely at deeper levels. The project is under consideration and shall be taken up after getting necessary clearances

Ukwa Mine

This Mine produces Ferro grade Manganese ore with 36% Manganese content and with high phosphorus (0.2% to 0.5 %). At Present, around 8.8 million tonnes ore reserve in different category is available at this Mine. In order to sustain the present production level and to achieve enhanced production, following projects are undertaken:

- Sinking of first vertical shaft having 4.5 mtrs. Dia. and 134 mtrs. Depth

The work of sinking of vertical shaft with head gear, winder etc. has been undertaken at an approx. cost of Rs. 18.50 crore. The work of shaft sinking is in progress and is scheduled to be completed in 2014-15.

- Sinking of second vertical shaft having 5.5 mtrs. Dia. and 335 mtrs. Depth

To achieve the targeted production, it is required to spread the underground working in larger area. Hence, sinking of second shaft is proposed. Designing work of this shaft has been completed and checking / vetting of estimates is in progress. It is planned to complete this project in 2017-18 at cost estimated cost of Rs. 18.50 crore.

Chikla Mine

This Mine also produces Ferro grade Manganese ore with 36% Manganese content. As on date around 4.22 million tonnes ore reserve in different category is available upto 200 mtrs. depth from surface at this Mine. In order to sustain the present production level and to achieve targeted production, following Mine expansion Projects are undertaken:

- Deepening of vertical shaft from -270'' level(109 Mtrs.) to -470'' level (169 Mtrs.)

To sustain the present production, it was required to deepen the existing vertical shaft to approach to the virgin production area from 109 mtrs. depth to 169 mtrs. This work has been undertaken at an estimated cost of Rs. 9.50 crore. The work of shaft deepening is in progress and scheduled to be completed in 2015-16.

- Sinking of second vertical shaft having 4.5 Mtrs. Dia. and 160 Mtrs. depth

In order to achieve the enhanced production, sinking of second vertical shaft has been planned at the estimated cost of Rs. 48.70 crore. This work is at tendering stage. It is planned to complete the work of shaft sinking in 2017-18.

Munsar Mine

This Mine produces Ferro grade Manganese ore with 36% Manganese content. At present, around 4.43 million tonnes ore reserve in different category is available upto 190 mtrs. depth from surface at this Mine. It is targeted to enhance the production of this Mine from present level of 0.55 lakh tonnes to 1.25 lakh tonnes by 2020-21. In order to sustain the present production level and to achieve targeted production, following Mine expansion Projects are undertaken:

- Sinking of first vertical shaft having 4.5 Mtrs. Dia. and 156 Mtrs. depth

Sinking of vertical shaft along with Head gear & winder at central portion of the main ore body to exploit the ore from the strike length of 1.6 Kms. is in progress at an estimated cost of Rs. 26.00 crore. The project is planned to be completed in 2014-15.

- Sinking of second vertical shaft having 4.5 Mtrs. Dia. and 160 Mtrs. depth

In order to achieve targeted production, it is required to increase working area of the Mine in the underground. Hence, second vertical shaft is planned to be set up. This shaft will be circular in shape and having fi nished dia. of 4.5 Mtr. with total depth as 160 Mtr. The approximate cost of this project is Rs. 51.32 crore. Designing work is completed and it is planned to complete this project in 2017-18.

Gumgaon Mine

This Mine also produces high grade Manganese ore with 42% Manganese content. At present, around 4.34 million tonnes ore reserve in different category is available upto 310 mtrs. depth from surface. In order to sustain the present production level and to achieve enhanced production, following mine expansion Projects are undertaken:

- Sinking of first vertical shaft having 4.5 mtrs. Dia. and 190 mtrs. depth

In view of the quality of Mn. Ore and quantity of reserve available as stated above, it was felt necessary to extract the ore at faster rate. In order to achieve this, sinking of a vertical shaft upto the depth of 190 Mtrs. from surface along with head gear, winder, substation, crushing & screening plant etc. was undertaken at this Mine with cost involvement of approx. Rs. 18.00 crore and the project has already been completed in 2012. The project was taken up to sustain the existing production and marginal increase therein.

- Sinking of 2nd. High speed vertical shaft having 6.5 mtrs. Dia. and 350 mtrs. depth

At lower levels below 210 Mtrs. from surface major quantum of ore is located in the western part of the Mine Thickness of ore body in this ore zone is very good upto 40-50 mtrs. thick. Hence, it is felt necessary to sink a vertica shaft in the western part of the ore body. Estimated cost of this project is Rs. 150.00 crores. Designing work of this shaft is in progress and it is planned to complete this work of shaft sinking by 2018

* Additional Leases

Govt. of Maharashtra has granted Prospecting License (P.L.) for 597.44 Ha. manganese bearing land to MOIL in the state of Maharashtra. It is expected that three new Mines will be opened in future apart from the expansion of the working of the present Mines which will add a quantum increase in production of MOIL

* Acquisition of Mines in and outside Country

MOIL has made ambitious plan to acquire Manganese and other Metalliferous minerals within and outside the country For this, an open ended Expression of Interest (EoI) has published by MOIL to seek offers from prospective owners who are willing to sell their Mining assets to MOIL. Proposals of acquisition of Manganese ore, Iron ore and Chrome ore assets are scrutinized as and when required. The company has already empanelled reputed Consultants for due diligence

- Value Addition Projects

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

MOIL has Joint Venture (50:50) with Steel Authority of India Limited (SAIL) for setting up Ferro Alloys Plant of 1.06 Lakhs TPA capacity, comprising of 31,000 tonnes of Ferro Manganese and 75,000 tonnes of Silico Manganese, at Nandini, near Bhilai in Chhattisgarh

Similarly, it has another Joint Venture (50:50) with Rashtriya Ispat Nigam Limited (RINL) for setting up of Ferro Alloy Plant of 57,000 TPA capacity, comprising of 20,000 Tonnes of Ferro Manganese and 37,000 Tonnes of Silico Manganese at Bobbili, Vizianagaram District of Andhra Pradesh

Preparation of feasibility reports of the above projects, taking into consideration revised requirements of ferro alloys of SAIL and RINL, is in progress. Decision in this regard shall be taken after receipt of the reports.

- 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 being consumed in the mine as well as ferro manganese plant of the company. The power generated from 15.2 MW wind farm is being sold to utility, i.e., Madhya Power Management Company Limited

RESEARCH & DEVELOPMENT

MOIL is engaged in exploration, extraction, benefi ciation and marketing of Manganese Ore and its value added products. It operates Underground and Opencast Mines. Manganese deposits are mostly hosted in poor to fair rock conditions with various diffi cult geo-mining conditions. The company is also working old manganeferous dumps for secondary recovery of manganese ore by employing off the pit mining. It also produces Electrolytic Manganese Dioxide (EMD) and Ferro Manganese Alloy from the processing plants located at Dongri Buzurg & Balaghat Mine respectively

In the light of growing competition in mining industry, R&D activities are essential for effi cient exploration and extraction of mineral reserves/resources. The thrust areas for the R & D efforts are therefore directed towards meeting the challenges of safe and cost effective mining practices in underground and opencast mines with increasing depth. In order to address these issues effectively, MOIL has identifi ed the following thrust areas for R & D works

- For improvement in underground working conditions, ventilation reorganization studies have been conducted by Indian Institute of Technology, Kharagpur at Gumgaon Mine. This has helped for improvement in underground ventilation and in turn has improved safety and productivity

- Indian Institute of Technology (IIT), Kharagpur is engaged for design of safe blasting practices for Single Boomer at Balaghat Mine. The machine has already been received at mine. This will help improving the development of underground headings, stope productivity and safety at Balaghat mine.

- 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

- National Geophysical Research Institute (NGRI), Hyderabad has been engaged for Geo-physical prospecting by Gravity and Magnetic method for high speed exploration of manganese ore reserves / resources in prospecting license areas in Maharashtra State.

- 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 reserves/resources of manganese ore for future exploitation.

- Studies are going on for the development of mechanized stoping operations and support systems at Ukwa Mine by Indian School of Mines, Dhanbad.

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

- For alternative source against the sand as a fill material, in-house feasibility studies have been conducted by technical department for use of bottom ash as a fill material for consolidated hydraulic stowing at Ukwa Mine on experimental basis.

For alternative fuel against Diesel in ANFO, blasting studies have been conducted at Dongri Buzurg Mine with CIMFR, Dhanbad.

- Level interval has been increased from 30m to 45m at Balaghat Mine below 12th level 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.

- A collaborative research study is going on with Visvesvaraya National Institute Technology (VNIT), Nagpur for use of overburden material for consolidated hydraulic stowing operation for the underground mining operation. Pilot hydraulic stowing plant has been commissioned at VNIT premises for further studies. This will help reduce the consumption of sand for filling purpose in the underground mines of the Company. In turn, it will reduce the sand requirement in future.

- Hydro-geological studies for stope design in underground mining operations at Kandri Mine is being carried out by Central Institute of Mining & Fuel Research (CIMFR), Nagpur for better safety and productivity.

- Blasting studies have been conducted for safe blast design and to control the ground vibrations in 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.

- Modern eco-friendly hydro-static blast hole drill machine with built in dust collector has been introduced at Dongri Buzurg Mine.

- In line with National policy on energy conservation, 4000cfm air compressor has been commissioned at Balaghat Mine with modern energy saving devices.

- Side Discharge Loaders (SDL) and Load Haul and Dump (LHD) machines have been introduced in the underground mines for development and mechanical handling of ROM for increase in productivity.

CONSERVATION OF ENERGY

Your Company has been adopting various measures for energy conservation which includes conventional measures by improving the effi ciency of existing equipment as well as introducing new Technology in line with the National Policy on Energy Conservation.

MEASURES TAKEN FOR REDUCTION IN ENERGY CONSUMPTION AND THE FUTURE PLANS TO THIS EFFECT.

1. MOIL has installed a 4.8 MW Wind Energy Farm on the Nagda hills at District Dewas in the State of Madhya Pradesh for Captive Power utilization and the same was connected to grid in the month of the June 2006.The energy generated since then is being utilized for MOIL''s Balaghat mine as well as Ferro Manganese Plant. Till March 2014, 72.35 million KWH has been generated since its inception. It conserves the energy and is a step towards non-conventional source of energy for pollution free environment. Since inception, the Wind Farm has saved emission of about 65,115 tonnes of Carbon Dioxide in the Atmosphere.

2. Another 15.2 MW Wind Energy Farm was installed on the Ratedi hills at District Dewas in the State of Madhya Pradesh for sale to utility and the same was connected to grid in phases by June 2008. The energy generated through Wind Farm is being sold to Madhya Pradesh Power Management Company Limited. Till March 2014, 144.75 million KWH has been generated since its installation. It also conserves the energy and is a step towards non-conventional source of energy for pollution free environment. Since inception, the Wind Farm has saved emission of about 130,375 Ton of Carbon Dioxide in the Atmosphere.

3. The Company has also installed two advanced technology based 4000CFM Centrifugal Air Compressors operating at 11KV voltage of supply, in place of conventional type screw air compressors, having capacity of 4000CFM at Balaghat mine. It has resulted in saving of energy due to lesser losses of higher operating voltage as well as lesser temperature of compressed air. The saving in the energy is to the tune of approximately 7.50 % over operating conventional screw air compressors and saved around 0.305 million KWH during the last couple of years and in turn saved emission of about 274.80Ton of Carbon Dioxide (Co2) in the atmosphere till March 2014.

4. Recently, the company has enhanced capacity of Ventilation Fan installed at North extremity of Balaghat mine from 120 HP to 350 HP to improve overall underground ventilation system of the mine by introducing latest technology based fully automation. The automation comprises of SCADA system with combination of PLC & VFD. It will result in optimum utilization of electrical energy with remarkable improvement in underground ventilation in the mine. The conservative saving in the energy consumption of ventilation fan shall be to the tune of approximately 5 % on account of automation.

MINING LEASES AND EXPLORATION

MOIL is having total 1829.851 hectares lease areas as on 31st March 2014, out of which 700.066 hectares land is in Maharashtra and 1129.785 hectares land is in Madhya Pradesh. An area of 814.71 hectares was reserved vide Central Government in favour of MOIL, for prospecting of Manganese 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 and remaining areas are under process.

National Geo-physical Research Institute, Hyderabad is conducting Gravity- Magnetic Survey with 5000 stations over sanctioned P. L areas.

At MOIL, proving additional Resource/ New Virgin deposits is the task of Exploration. A virgin deposit of Manganese was explored by pitting over recently acquired 5.36 hectares area under Prospecting License. The area is located at Village Nandapuri of Mauda Tehsil. Exploration activities by drilling is being undertaken to establish the deposit. The virgin deposit falls in trend with Old Satuk deposit of the company. Hence, it is expected to attain similar depth and quality as that of Old Satuk. Current exploration over existing Mining Leases has proved the Mineral persistency up to 350 mtrs. depth in Kandri, 400 mtrs. in Ukwa and 300 mtrs. in Gumgaon lease hold area of MOIL.

ENTERPRISE RESOURCE PLANNING (ERP) :

ERP implementation at MOIL envisages seamless integration of all business processes to 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. RFP for the ERP has already been published. Steering committee as well as core committee to carry out the implementation task has been formed. The selection of ERP product and System Integrator (SI) are planned to be completed by 2014-15. The Project is expected to Go-Live during the financial year 2015-16.

SAFETY AND OCCUPATIONAL HEALTH:

Your Company lays special emphasis to ensure safety in the mines and also takes continuous efforts to reduce accidents by constantly 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 inter-action with employees at all levels to prevent accidents to the maximum extent possible.

- Vocational and refresher training is imparted to each employee regularly, apart from specialized training.

- Safety and Environment department had conducted training programs on:

(a) Importance of safety, health, sustainable development in mines.

(b) Disasters management in mines.

(c) Occupational health and safety in mine.

(d) Chikla mine and Dongri Buzurg mine have awarded with National Awards for Longest Accident free period and lowest injury frequency rate, respectively, for the year 2008 & 2009.

(e) MOIL has obtained OHSAS 18001:2007 certification for Gumgaon and Munsar mines apart from re-certification of Dongri Buzurg and Balaghat mines which were issued. Thus, total six mines have obtained the OHSAS certification so far.

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 proactive measures to reduce global warming. The Company is conscious of its responsibility towards environmental protection in and around its leasehold areas. About 65,000 saplings were planted during 2013-14 at different mines of the company. The cumulative plantation till date is about 18.13 Lakhs saplings. 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 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 MPEDCL. All the units, including sand ghats have got Environment Clearance from the MoEF, New Delhi.

VIGILANCE

The functioning of vigilance department of MOIL includes preventive as well as punitive vigilance and the main thrust is on system improvements in the organisation. Various activities of vigilance department during the year 2013-14 are as under.

Signifi cant contributions

1) Observation of Vigilance Awareness Week-2013

MOIL observed Vigilance Awareness Week 2013 from 28th October to 2nd November 2013. The Vigilance Awareness week was inaugurated by Shri Sanjay Saxena, IPS, Joint Commissioner of Police, Nagpur. Shri Girish Bhatnagar, Director General, Indian Railway Institutes of logistics and Material Management (IRILMM), New Delhi, was also present on the occasion. The activities during awareness week are as under:

I. Release of 2nd annual issue vigilance magazine "SHUCHITA"

Vigilance department came out with the 2nd annual issue of vigilance magazine "SHUCHITA" which was released by Shri Sanjay Saxena, IPS, Joint Commissioner of Police, Nagpur.

II. Seminar on ERP, Protection of Whistle Blower and Public Procurement Bill-2012

At Munsar Training Centre, a presentation on "Enterprise Resource Planning (ERP)" was organized to bring awareness with regard to use of IT Technologies and the recent development in company of adopting ERP, in its various procedures and workings. In addition, presentations on ''Protection of Whistle Blower'' and ''Public Procurement Bill-2012'' were made to bring awareness in employees of MOIL.

III. A one day Workshop on ''Transparency in Public Procurement''

A one day workshop was organized at MOIL Head Office, Nagpur, on the theme of "Transparency in Public procurement. The workshop was attended by all senior Officers of MOIL. The guest speaker for the workshop was Shri. Girish Bhatnagar, Dir. Gen., IRILMM, New Delhi, who is an eminent expert in area of procurement and anti- corruption. He made presentation on (i) Preparation, Invitation and Evaluation of Public Procurement Tenders,(ii) Important Aspect & Vigilance Issues in Public Procurement and (iii) Contract Management.

IV. One day workshop on "e- Procurement & e-Auction"

A one day seminar on "e-Procurement and e-Auction" was organized. Shri Sanjiv Poddar, Sr. Manager (e-Procurement) was the guest speaker from MSTC Ltd, Kolkata, the largest e-Auctions handling PSU in India.

V. Vigilance awareness programme for society

The vigilance Officers at Balaghat and at Kandri Mine organized vigilance awareness programmes in College and School at Ramtek and Central School at Balaghat. In the programme they held interactive sessions with teachers and students regarding ill-effects of corruption and dishonesty.

VI. Competition on photography and "Model on Good Governance/ Practices"

In order to increase the active participation of employees, a competition of ''Model of Good Governance/ practices'' were organized at corporate level, with a view to provide a platform to explore the shortcomings observed by any common employee during his day to day activities. A unique photography competition on the theme "MOIL Â A Success Story" was organized for all employees to bring awareness among employees.

2) Regular Activities

1. Capacity building: Continual activities towards capacity building of the Vigilance personnel working in the department is ensured and efforts were made in a planned manner by imparting internal as well as external training. In addition to this, regular trainings are also organized for creating awareness amongst employees.

2. Preventive vigilance: As part of preventive vigilance, four work contracts were scrutinized and sixty eight inspections were carried out during the period. Advisories have been issued, from time to time, to streamline the procedures and bringing transparency in works at different level of operations.

3. Complaints: During the year, twenty nine complaints and six nos. of source informations were received and after carrying out the detailed investigations, the enquiry reports in respect of these cases have been submitted along with the findings & conclusions thereon, to the respective authorities.

4. System improvements : As an outcome of different investigations relating to complaint, study, inspection, etc., advisories and suggestions were given for the system improvement in the following areas:

a. Updation and posting of Manuals on web site.

b. Tender processing of purchase & work contracts.

c. Procedure related to recruitment and promotion.

d. Preparation of estimates and rate schedules in work contracts.

e. Restructuring of capital Asset Register.

f. Refurbishing of the sales accounting system in order to prevent occurrences of misappropriation.

5. Leveraging Technology: Extensive use of website as a tool for communication with the stakeholders and also for curbing corruption and to bring transparency in maximum possible areas of working, has been implemented by MOIL. Accordingly, e-sales, e-auction, e-procurement, e-payments are implemented considering threshold limits. A new refurbished vigilance page has been added to the MOIL''s Official website containing vigilance manual and other important links.

IMPLEMENTATION OF RTI

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

MOIL has appointed CPIO at the Corporate Office and PIOs/APIOs have also been appointed at all its Mines. Executive Director (Tech.) has been appointed/designated as Appellate Authority under the Act. The names of all the PIOs/APIOs and the Appellate Authority has been also hosted on Company''s website www.moil.nic.in.

The information in respect of company, its employees etc., has been prepared under 17 heads as prescribed in Section 4(1) (b) of the RTI Act, and the same been hosted on 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. Various provisions of the Act have been highlighted by issue of the circulars 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 company''s website as much information suo-moto at regular intervals for the public, so that public has minimum necessity 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 has received total 67 no. of applications under RTI Act, from which 63 applications accepted, 4 rejected & 10 appeals accepted under RTI and all have been disposed off during the period. There is no application pending as on 31st March, 2014.

TRAINING PROGRAMMES

During the year 2013-14, total 387 training programmes were conducted. It includes 320 Vocational Training Programmes which were conducted for workers at Vocational training centre at the Mines. Almost, 1250 mandays of executives, 885 mandays of non-executives, 2713 mandays of workers and 3277 mandays of trainees were imparted training during the year. In addition to this, 72 Executives were also sponsored for outside training programmes. Thus, during the year under review, total 1,37,506 mandays of training were completed on various topics and total 8125 participants were imparted training. As per MOU parameter for excellent performance is 1.30% training mandays. In comparison to this, the performance recorded was 3.77% during year 2013-14.

LABOUR WELFARE SCHEMES, RECREATION AND MEDICAL FACILITIES

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 Mines which are situated in the remote areas. Salient features of such schemes are as follows:- - 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 employees residing in the Mine Colonies by conventional wells; Bore wells, Pipeline supply, etc.

- The colonies and streets of the camps are well illuminated. The employees have been provided with electricity for their residence at 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 requirement.

- Medical Insurance Scheme for retired employees has been introduced.

- 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 6466 employees on its rolls as on 31.03.2014. About 74.57% of the total strength belongs to SC/ST/OBC including 43.91% belonging to SC/ST. Our Company is also taking keen interest in development of the downtrodden people living in the vicinity of the mines situated in remote areas by:

a) Adopting villages near the mines and providing drinking water facilities, road maintenance, periodical medical checkups and treatment to people living in these villages.

b) Providing financial aid, stationery, books etc. to schools adjacent to the mining areas.

c) Providing tri-cycles to physically challenged persons.

EMPOWERMENT OF WOMEN:

MOIL employs 819 women employees which constitute 12.66% of its total workforce of 6466 as on 31.03.2014.

In compliance of directives of the Supreme Court, guidelines relating to sexual harassment of women workers at work places were issued by Govt. of India, Ministry of Human Resources and Development. Accordingly, a Complaint 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 employees.

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.

8th March is celebrated as International Women Day and various programmes are organized to mark the day. The Company also grants Maternity Leave and Special Casual Leave for Family Planning.

As a part of its CSR activities, Self Help Groups have been formed at the mines which comprise of 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.

PERSONNEL

The manpower as on 31.03.2014 of our Company is given below:

CITIZEN''S CHARTER AND GRIEVANCE REDRESSAL MECHANISM

a) Employees'' grievances Â MOIL has its own grievance redressal procedure for executive as well as non-executive employees. The grievances of employees are accordingly dealt with as per rules.

b) Public Grievance Â 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 has been constituted on the basis of instructions received from various authorities in the past.

c) 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.

d) Monthly/Quarterly reviewing of grievances by designated Public grievance Officers and mines and corporate Office.

e) Monitored at Head Office on the basis of assessment of data received from unit, Grievance Officer through the monthly report as well as through inspection by Head Office authorities.

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 manner from several years. The Company has framed a CSR Policy which is duly approved by the Board of Directors. Several schemes have been taken up and being implemented under CSR in the current Financial year which broadly includes the following:

- In the education and skill development initiative, company has taken up construction of MOIL DAV Public school with a cost of Rs. 800 Lakhs having 35 class rooms with a capacity of 1400 students at Chikla, Dist-Bhandara (M.S.),

- Construction of additional class rooms in Bharveli in Balaghat (M.P.)

- Providing drinking water to villages in remote areas by digging borewells.

- Free cataract surgeries by NGO, Suraj Eye Institute, under Light to Lives program, for needy rural poor.

- Area development project for Tumsar town in District Bhandara. Under the project the company has completed construction of Bypass Road of 1.5 KM length, rejuvenation of water body is under progress.

- Financial aid to states stuck by natural calamities. Financial aids have been provided to states of Maharashtra for drought relief, fi nancial assistance has also been provided to states of Uttarakhand & Odisha for taking up relief and rehabilitation works in cyclone & fl ood affected areas.

- Various infrastructural development works like construction of roads, community halls, afforestation, etc. have been carried out.

SUSTAINABILITY

The company has undertaken following sustainability projects in the year 2013-14:

i) Afforestation:

a) Afforestation through social forestry mode: A total of 40,000 saplings have been planted under this project in Ukwa, Balaghat and Tirodi mines situated in Balaghat district, a backward district of Madhya Pradesh. The project includes plantation and fencing to safeguard the plantation.

b) The company has also carried out 25,000 plantations in housing colonies, play grounds and mine areas of Chikla, Dongri, Kandri and Gumgaon mines.

ii) Setting up of biodiversity park: MOIL has established a biodiversity park, near Fetri village, approx.11 kms. on Nagpur- Kalmeshwar road. The Bio-diversity Park is established in consultation with Institute of Science, Department of Environmental Science, Nagpur which is a premier educational Institute of Nagpur run by Department of Higher & Technical Education, Government of Maharashtra.

Moreover, MOIL has imparted training to 39 executives on CSR and SD during 2013-14, with a view to increase awareness in the executive regarding CSR & Sustainability. The training was organized at Institute of Management Technology, Nagpur.

MOIL has spent an amount of Rs. 1036.04 lakhs in FY 2013-14 towards CSR and sustainability activities.

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 all 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

The company has been publishing bilingual in-house magazine "Sankalp"

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

- Upgradation of MOIL from Schedule ''B'' to Schedule ''A'' Company

- Life time achievement award to Shri G P Kundargi, Chairman-cum-Managing Director, MOIL by IM&E Journal, Bhubaneswar.

- Corporate Excellence Award (Finance and Financial Management) awarded to Shri M P Chaudhari, Director (Finance), MOIL by the Institute of Public Enterprises, Hyderabad

- EXCELLENT MoU Rating, 18th year in succession, with a composite score of 1.213 for the year 2012-13, which is the highest among all PSUs like SAIL, RINL, NMDC, etc., in the Ministry of Steel

- Corporate Governance EXCELLENT grading with 97.89% score by DPE

- Two Par-Excellence Awards and one Excellence Certificate of National Quality Circle Award (i.e., National Conventions Quality Concepts - NCQC- 2013)

- Highest Tax Payers Award for the financial year 2011-12 by the Government of Madhya Pradesh for the highest Commercia tax paid in the Balaghat District for consecutively 5th year.

- ISO 9001:2008 Certification for EMD Plant- Dongri Buzurg Mine

- ISO 9001:2008 Certification for FM Plant- Balaghat Mine

DIRECTORS

During the year under review, seven Independent Directors namely, Dr. S.K. Bhattacharyya, Shri Vijay Kale, Dr. Madhu Vij, Shri Sanjeeva Narayan, Shri H. C Disodia, Shri B.K Gupta and Shri D.D Kaushik 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

During the year, Government of India has appointed Shri A.K. Jha, as Director (Prod. & Plng.) and four independent directors namely, Ms. Sunanda Prasad, Shri G.S. Grover, Dr. A.K. Lomas and Shri J.P. Dange on the Board of MOIL.

CHANGE IN ACCOUNTING POLICY

During the year, the company has changed its accounting policy on manganese ore sales as detailed in Note No. 1.2 of notes to accounts. The change in policy has no material effect on the accounts.

DIRECTORS'' RESPONSIBILITY STATEMENT

Your Directors confirm that:

1. The applicable accounting standards have been followed along with proper explanations relating to material departures, if any, for preparation of the annual accounts

2. The accounting policies have been selected and applied consistently with appropriate disclosures for changes and judgments and estimates have been made that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year ended March 31, 2014 and of the profits of the Company for that year.

3. Proper and suffi cient care has been taken to maintain 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 or other irregularities.

4. The annual accounts have been prepared on a going concern basis.

DEPOSITS

The Company has not accepted any Fixed Deposits during the year under review.

AUDITORS

In terms of Section 619 (2) of the Companies Act, M/s V.K. Surana & Co., Chartered Accountants, Nagpur have been appointed by the Comptroller & Auditor General of India as auditors of your Company for the year 2013-14. The Statutory Auditors'' Report is enclosed which is self explanatory.

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 31.03.2014. The due date for fi ling the Cost Audit Reports for the financial year ended 31st March, 2014 is 30th September, 2014. The report will be submitted within prescribed time limit. The Cost Audit Report and Compliance Report for the year 2012-13 were fi led within the time limit as prescribed by the Ministry of Corporate Affairs.

OTHER DISCLOSURES:

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 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, forming part of this report, is enclosed as Annexure Â I to this report.

Foreign Exchange earnings and Outgo: The Company has not made any export of manganese ore during the Financial Year 2013-14. During the year under review, the Company has incurred Rs. 50.99 lakhs expenditure in foreign currency as against Rs. 28.86 Lakhs in the previous year.

Particulars of Employees: The information in respect of employees covered within the purview of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975, as amended from time to time, is: NIL

Subsidiary Company: MOIL has no Subsidiary Company.

DETAILS OF SHARES IN SUSPENSE ACCOUNT:

The details of shares in suspense account are as follows:

Description No. of Shareholders No. of Shares

Opening Balance as on 01.04.2013 21 357

Shareholders approached for Transfer of Shares 1 17

Shares transferred 1 17

Pending as on 31.03.2014 20 340

The voting rights on these shares in suspense account as on 31.03.2014 shall remain frozen till the rightful owner of such shares claims the shares.

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 for the year 2012-13, 18th year in succession.

Continuing the practice, MOIL has signed MoU with the Ministry of Steel for the year 2014-15.

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 Director''s Report, and enclosed as Annexure - II.

MANAGEMENT DISCUSSION AND ANALYSIS

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

INDUSTRIAL RELATIONS

ndustrial relations in our Company continued to be cordial and peaceful during the year 2013-14. 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 have been functioning satisfactorily

ACKNOWLEDGEMENT

Your Directors acknowledge the support, cooperation and guidance received from the Govt. of India, Ministry of Steel, State Governments of Maharashtra and Madhya Pradesh, 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.

Last but not the least, your Directors congratulate all stakeholders for up gradation of MOIL to Schedule ''A company.

On behalf of the Board of Directors

G. P. Kundarg

Place: New Delhi Chairman-cum-Managing Director

Date: 23rd May, 2014

Mar 31, 2013

Dear Member,

The behalf of Board of Directors, I feel great pleasure in presenting the 51st Annual Report of your Company, together with the Audit Report and Audited Accounts, for the year ended 31st March, 2013.

FINANCIAL RESULTS

The financial results of 2012-13 and of the previous year are highlighted below:

Rs. in Crores

Particulars 2012-13 2011-12

Net Sales 967.12 899.58

Other Income 235.27 203.32

Total Income 1202.39 1102.90

Profit before interest, 669.82 636.54 depreciation and tax (EBIDTA)

Depreciation 33.03 29.92

Profit before tax for the year 636.78 606.63 (PBT)

Less: Provision for Taxation 205.06 195.86

Profit after tax for the year (PAT) 431.72 410.77

Transfer to General Reserve and 326.63 300.00 CSR Reserve

KEY Financial Ratios

2012-13 2011-12

EBIDTA to Sales Turnover (%) 69.26 70.76

PAT to net worth (%) 15.61 16.83

EBIDTA to average capital 26.10 28.32 employed (%)

Earning Per share (Face Value 25.70 24.45 Rs.10 each)

Book Value per share 164.62 145.32

DIVIDEND

Continuing the previous many years dividend paying practice, during the year 2012-13 , an Interim Dividend @ 20% i.e., Rs.2.00 per Equity Share, has been paid/dispatched in the month of March, 2013. Taking into consideration the profit for the year, the Board of Directors of your company has further recommended a final dividend @ 35% i.e., Rs.3.50 per Equity Share, in this financial year. The total dividend for the year 2012-13 works out Rs.5.50 per equity share as against Rs.5.00 paid in previous year. The total dividend payout for the year works out Rs.92.40 Crores @55% (Previous year @50% i.e. 84 Crores).

FINANCIAL PERFORMANCE

Your company has recorded net sales (excluding excise duty) of Rs.967.12 Crores during the financial year 2012-13, as compared to Rs.899.58 Crores of previous year. Profit before tax (PBT) for the year has increased by 4.97%, to Rs.636.78 Crores, as compared to previous year. The Company has earned a Profit after Tax (PAT) of Rs.431.72 Crores as against Rs.410.77 Crores in the previous year.

SALES

The Board is pleased to inform that the Company has sold 11.93 Lakh tonnes of Manganese ore in comparison to 10.78 Lakh tonnes of Manganese ore last year. During 2012-13, a net sale of Manganese Ore was of Rs.890.73 Crores against Rs.810.39 Crores in the year 2011-12. The Company, mainly due to its prudent marketing policy, has registered an increase of 10.67% in sales quantity and increase in sales turnover by 9.91%.

In respect of manufactured products viz. Ferro Manganese, EMD, Ferro Manganese Slag, net sale during the year 2012-13 was of Rs.67.13 Crores in comparison to Rs.80.73 Crores during the year 2011-12.The sale of Electrolytic Manganese Dioxide (EMD) was 1014 tonnes, as against the previous year 1005 tonnes, whereas sale of Ferro Manganese was at 10080 tonnes in comparison to sales of 13239 tonnes during 2011-12.

PRODUCTION AND PRODUCTIVITY

During the year the company has produced 11.39 Lakh Tonnes of various grades of Manganese Ore as against previous year 10.71 Lakh Tonnes. The production of Electrolytic Manganese Dioxide (EMD) was 786 tonnes as against 714 tonnes, during 2012-13. The production of Ferro Manganese was 9210 tonnes as against previous year''s production of 8694 tonnes. The Output per Manshift of the Company has been 0.798 tonnes (previous year 0.711 tonnes).

The Company has a closing stock of 0.77 lakh tonnes of manganese ore valued at Rs.30.72 Crores as on 31.03.2013 as compared to 1.58 lakh tonnes of manganese valued at Rs.57.08 Crores as on 31.03.2012.The closing stock of Ferro manganese was 1208 tonnes valued at Rs.5.50 Crores as on 31.03.2013 as against 2078 tonnes valued at 8.15 Crores as on 31.03.2012. The closing stock of EMD as on 31.03.2013 was 71 tonnes (Previous Year 299 Tonnes) valued at Rs.0.58 Crores (Previous Year Rs.2.08 Crores).

OTHER INCOME

As per the Government Guidelines, your Company deployed surplus funds in fixed deposits and earned an interest income which is included in total interest received of Rs.229.17 Crores (Previous Year Rs.193.84 Crores) and shown in other income.

CAPITAL / VALUE ADDITION PROJECTS

In order to meet the demand of Manganese ore in the steel industry and to remain market leader in Manganese industry, it is required to enhance the Manganese Ore production. The company has prepared an ambitious plan to enhance the present level of production of Manganese ore from 1.1 million Ton to 2.2 million Ton by the year 2020-21. In order to implement this plan, your company has planned huge investments for development of existing mines, acquisition of new mines in and outside the country, setting up Manganese based value addition projects etc.

Mine Expansion Projects :

MOIL has also undertaken ambitious mine expansion projects to enhance the production from its promising mines. Few projects have been recently completed and remaining are at various stages of implementation as under:

Balaghat Mine

Balaghat Mine produces high grade Manganese ore with 46% Manganese content. As on date around 24.20 million Ton ore reserve in different categories are available up to 650 meters depth from surface. It is planned to enhance the production of this Mine from present level of production of 0.31 million Ton per annum to 0.80 million Ton per annum by the year 2020-21. In order to sustain the present level of production and to achieve planned production following Mine expansion Projects have been undertaken:

- Deepening of Production shaft from 10th. level (240 mtr.) to 15th. level (390 mtr.)

The deepening of production shaft work was completed in October 2011. The total expenditure on the project was 8.00 Crores. Deepening of Production shaft was required to sustain the present level of production of 3.10 Lakhs Ton per annum and to enhance the production by 0.60 Lac Ton per annum. Deepening of this shaft was essential to commence the production and development related activities below 12th level.

- Deepening of Holmes shaft from 12th. level (300 meters ) to 16V2 level (435 meters ) Deepening of Holmes shaft has been undertaken which is in progress and scheduled to be completed by 2016 with an estimated cost of Rs.28.00 Crore. The project will be helpful in enhancing the production from 3.10 Lakhs Ton to 4.20 Lakhs Ton per annum by the year 2016-17.

- Sinking of 7.5 meter Diameter; 650 meters depth, high speed vertical shaft from surface to 22V2 level

The ambitious project has been planned in order to achieve production of 8.00 Lakhs Ton per annum from Balaghat Mine. The project envisages a new shaft up to a depth of 650 meters; having a hoisting capacity of 1.0 million Ton of ROM per annum. This independent shaft will facilitate nos. of underground levels to exploit required quantity of Manganese ore. The High speed shaft project has a estimated capital outlay of Rs.200 Crores. Global Tenders have been called for the project and it is expected that the work order shall be placed by the end of July 2013.

Ukwa Mine

This Mine produces Ferro grade Manganese ore with 36% Manganese content . As on date around 8.70 million Tons of Manganese ore reserves in different categories are available up to depth of 250 meters. It is planned to enhance the production of this Mine from present level of 0.55 Lac Ton to 0.80 Lac Ton per annum by the year 2020-21. In order to sustain the present level of production and to achieve planned production following Mine expansion Projects are undertaken:

- Sinking of first vertical shaft having 4.5 meters Diameter and 134 meters depth

The work of sinking of vertical shaft is in progress at approximate cost of Rs.18.50 Crores. The work scheduled to be completed by August 2014. This is the first vertical shaft at Ukwa which will facilitate new working levels and improved hoisting capacity leading to increased production and productivity.

- Sinking of second vertical shaft having 5.5 meters Diameter and 335 meters depth

The sinking of second vertical shaft is proposed at Ukwa mine to win ore from deeper levels as well as to reduce tramming distance. The proposed shaft will help to achieve planned production beyond 2016. Vertical shaft Design work is in progress and it is planned to complete the vertical shaft sinking work by 2017.

Chikla Mine

This Mine produces Ferro grade Manganese ore with 36% Manganese content. As on date around 5.10 million Ton Manganese ore reserves in different categories are available up to 250 meters depth from surface. It is planned to enhance the production of this Mine from present level of 1.50 Lakhs Ton to 2.00 Lakhs Ton per annum by the year 2020-21. In order to sustain the present production level and to achieve planned production following Mine expansion Projects have been undertaken:

- Deepening of vertical shaft from -270'' level (109 meters) to -470'' level (169 meters) and allied works- To sustain the present level of production it is required to deepen the existing vertical shaft to get virgin production area from 109 meters depth to 169 meters. The deepening of vertical shaft has been undertaken with an estimated cost of Rs.9.50 Crores. The work of shaft deepening is in progress and is scheduled to be completed by 2015.

- Sinking of second vertical shaft having 4.5 meters Diameter and 160 meters depth and allied works-

The ore body strike length at Chikla mine is 2.1 Kms. To exploit the ore body economically and achieve planned production sinking of second vertical shaft has been proposed with an estimated cost of Rs.45.00 Crores. Designing work of the shaft is in progress and it is planned to complete sinking of vertical shaft by 2017.

Munsar Mine

This Mine also produces Ferro grade Manganese ore with 36% Manganese content. As on date around 4.64 million Ton ore reserves in different categories are available up to 190 meters depth from surface. It is planned to enhance the production of mine from present level of 0.55 Lac Ton to 1.25 Lakhs Ton per annum by the year 2020-21. In order to sustain the present production level and to enhance the production as planned, following mine expansion Projects have been undertaken:

- Sinking of first vertical shaft having 4.5 meters Diameter and 156 meters depth and allied works-

Sinking of vertical shaft at central portion of the main ore body to exploit the ore from the strike length of 1.6 Kms. is in progress with an estimated cost of Rs.26.00 Crores. The scheduled completion of the project is in May 2014.

- Sinking of second vertical shaft having 4.5 meters Diameter and 160 meters depth and allied works-

Mansar Mine ore body has a strike length of 2.8 Kms The exploitation of ore from the vertical shaft under sinking will not be economical as the approach to ore body will lead to long distance tramming. In order to win over entire length of ore body as well to achieve planned production from underground; second vertical shaft is proposed to be sunk. The proposed vertical shaft will be circular in cross section having finished dia. of 4.5 meters having a total depth as 160 Meters with a provision of further sinking. Approximate cost of this project will be Rs.45.00 Crores. Designing work is in progress and the work of shaft sinking is planned to be completed by 2017.

Gumgaon Mine

This Mine produces high grade Manganese ore having 42% Manganese content. As on date, around 4.34 million Ton ore reserve in different categories are available up to 300 meters depth from surface. It is planned to enhance the production of Mine from present level of 0.60 Lac Ton to 1.30 Lakhs Ton by the year 2020-21. In order to sustain the present production level as well as to enhance present level of production as per planning following Mine expansion Projects are undertaken:

- Sinking of first vertical shaft having 4.5 meters Diameter and 190 meters depth and allied works-

In view of the availability of quality Manganese Ore and quantity of ore reserves available as well as high demand of ore in the market; it was necessary to extract the ore at faster rate. The higher rate of production is achievable by putting a vertical shaft up to a depth of 190 meters. In view of the above sinking of first vertical shaft at Gumgaon was undertaken and work was completed in July 2012, the cost of vertical shaft sinking project was Rs.18.00 Crores.

- Sinking of 2nd High speed vertical shaft having 6.5 mtrs. Dia. and 350 mtrs. depth and allied works-

Exploration of ore has been proved up to 300 meters depth from surface. A large quantity of ore is located in the western part of the Mine. Thickness of ore body in this ore zone is ranging from 40 to 50 meters. The strategically located second vertical shaft in the western part of the ore body will boost production as well as economize the production cost. The Estimated cost of second vertical shaft project will be approximately Rs.150.00 Crores. Designing work of the shaft is in progress and the shaft sinking is planned to be complete by 2017.

Acquisition of Mines in and outside Country -

MOIL has made ambitious plan to acquire Manganese and other Metalliferous minerals within and outside the country. For this purpose, an open ended Expression Of Interest (EOI) is published by MOIL to seek offers from prospective sellers who are willing to sell their Mining assets to MOIL. Some proposals received are under scrutiny and are taken up for due diligence in respect of few promising offers. We have received offers for acquisition of Manganese ore and Chrome ore assets. Consultants for due diligence are already empanelled by us.

Acquisition of Additional Leases

Govt. of India has reserved 814 Ha. Manganese bearing land in the state of Maharashtra to MOIL. Acquisition process is at advance stage. As soon as the prospecting license is granted in favour of MOIL Limited, the exploration by way of geophysical prospecting and drilling will be commenced. This will add reasonable tonnages of Manganese Ore to the total resource of MOIL and it will have positive bearing over production and productivity of the company.

Coal Blocks

Ministry of Coal, Govt. of India had invited applications from Government Companies (Central and State) for allotment of coal blocks by issuing Notice Inviting application (NIA) No. 13016/26/2004-CA-I(Pt.1) dated 31st December 2012 through allotment by Competitive Bidding of Coal Mines Rules 2012.

Out of 14 coal blocks available for producing power, MOIL has applied for 6 coal blocks and, out of 3 coal blocks available for commercial mining the company has applied for two coal blocks through competitive bidding. Company has applied for coal blocks for diversification in mining activities as well as using coal blocks at a suitable location for power generation to meet the requirement of proposed Ferro Alloys plants in joint ventures with SAIL and RINL. MOIL stands a very good chance for allotment of coal blocks due to its inherent strength of being a mining company since last more than 100 years and availability of sufficient funds for the diversification project.

Value Addition Projects

- SAIL & MOIL Ferro Alloys Pvt. Ltd:

Your Company has Joint Venture (50:50) with Steel Authority of India Limited (SAIL) for setting up Ferro Alloys Plant of 1.06 Lakhs TPA capacity, comprising of 31,000 tonnes of Ferro Manganese and 75,000 tonnes of Silico Manganese, at Nandini, near Bhilai in Chhattisgarh.

Due to certain receipt of very high bids in response to global tender floated earlier for furnace and auxiliaries, the tender was cancelled. In the intervening period, requirement of Silico Manganese of SAIL/RINL has gone up. Hence, revised TEFT is being prepared by MECON due to change in technical specifications. MOEF Delhi has granted Environmental Clearance for the Project. Application for Consent to establishment to Chhattisgarh Environment Conservation CG Govt. has been submitted. Approval has been received in respect of supply of water and 220 KV Sub-Station.

- RINMOIL Ferro Alloys Pvt. Ltd-

Your company has another Joint Venture (50:50) with Rashtriya Ispat Nigam Limited (RINL) for setting up of Ferro Alloy Plant of 57,000 TPA capacity, comprising of 20,000 Tonnes of Ferro Manganese and 37,000 Tonnes of Silico Manganese at Bobbili, Vizianagaram District of Andhra Pradesh. Due to certain receipt of very high bids in response to global tender floated earlier for furnace and auxiliaries, the tender was cancelled. In the intervening period, requirement of Silico Manganese of SAIL/RINL has gone up. Hence, revised TEFT is being prepared by MECON due to change in technical specifications. Various works such as Geo Technical investigation, survey & contouring, construction of store at site have already been completed. Environmental clearance has been obtained from MOEF. Sanction has also been obtained for supply of regular power supply from State Govt. and permission for construction of water supply connection has been obtained from APIIC.

- Wind power generation.

MOIL Limited has two wind farms of 4.8 MW and 15.2 MW situated at Nagda Hills and Ratedi Hills respectively at District Dewas near Indore. The power from 4.8 MW wind farm is being wheeled to Balaghat Mine and being consumed mine as well as Ferro Manganese Plant of the company. The power generated from 15.2 MW wind farm is being sold to utility i.e. Madhya Pradesh Pashchim Kshetra Vidyut Vitran Company.

RESEARCH & DEVELOPMENT

In the light of growing competition in mining industry, R&D activities are essential for efficient exploration and exploitation of Manganese Ore resources. In every stage of transformation, there are challenges to be met. In order to address these issues effectively, your Company has identified the following thrust areas in R & D:

- A collaborative research study is going on for use of overburden material for consolidated hydraulic stowing operation for the underground mining operation with Visvesvaraya National Institute Technology, Nagpur. Pilot hydraulic stowing plant has been commissioned at VNIT premises for further studies. This will help to reduce the consumption of sand for filling purpose in the underground mines of the Company. In turn it will reduce the sand mining in future years.

- The Indian Institute of Technology (IIT), Kharagpur is engaged for design of safe blasting for Single Boomer at Balaghat Mine. This will help for faster development of underground headings at Balaghat mine. This will certainly help for boosting the underground safety & productivity.

- Modern environmental friendly hydro-static drill machines have been deployed in opencast mine of Dongri Buzurg.

- Hydro-geological studies for stope design in underground mining operations at Kandri Mine is being carried out by Central Institute of Mining & Fuel Research, Dhanbad for better safety & productivity.

- Studies of control blasting techniques for fly rock & ground vibration are undergoing at opencast mines.

- Rock mechanics instrumentation and data monitoring is being carried out at Balaghat Mine for the safety of underground working with the help of stain bars.

- Inception of Load Haul & Dump (LHD) machine, tyre mounted in underground mines for development & stopping operations.

- GPS has been provided at the mines for accurate location & identifications of the lease hold area.

- Optimization of stope designs for safety & productivity improvement.

- Increased level interval (from exiting 30 Meters to 45 Meters) has been introduced for rapid mining operations at Balaghat Mine.

- For proposed Independent high speed shaft sinking operation for underground mining for 650 mtr at Balaghat Mine, hydrological studies & stress monitoring has been done by CIMFR, Dhanbad at site for safety of the project.

- Development of process flow sheet for Manufacturing Electrolytic Manganese Metal (EMM), a value added product having good market potential and the company would like to enter into this segment in the future. In this context, National Metallurgical Laboratory (NML), Jamshedpur has prepared R&D report and it was established that pure EMM can be produced in bench scale with the manganese ore of the company.

- PLC driven compressors has been commissioned at Kandri, Ukwa, Gumgaon & Balaghat Mine for energy saving.

- Studies are going on for the development of alternative mining methods and support systems for underground mines.

- Modern techniques of exploration like geophysical exploration by gravity magnetic method are employed.

- Analytical works through XRF spectrophotometer for accurate and speedy analysis of manganese ore are done.

- Ventilation networking studies for deeper levels at Balaghat Mine and Gumgaon Mine have been taken up to improve productivity.

- Introduction of Total Stations - High speed survey instrument with high accuracy level for maintaining accurate survey of mines have been brought into use.

- For deeper exploration for manganese ore reserves/ resources, core drilling has been done by MECL at various mines.

- For sintering of manganese fines, TEFR has been prepared by Development Consultant Private Limited, Kolkatta. The Company is examining possibility of installing sintering plant for manganese fines in the near future.

CONSERVATION OF ENERGY

Your Company has been adopting various measures for energy conservation which includes conventional measures by improving the efficiency of existing equipment as well as introducing new Technology in line with the National Policy on Energy Conservation.

In line with National Policy on Energy Conservation, MOIL has installed & commissioned 3 Nos. 1000 CFM Screw Air Compressors with VFD panel at our various mines during the year 2010-11. One number each 4000CFM Centrifugal Air Compressors with Soft Starter during the year 2011-12 & 2012-13 at its Balaghat mine which contributes on an average 5 to 10% saving in electrical energy for operation of air compressors at respective mines.

Apart from above, conventional motor starter panels of Centrifugal Water Pump Sets installed in various underground working levels for dewatering underground water are being replaced with VFD/Soft Starter panel and Air Compressors used for pro-long hours are being provided with variable frequency drive and communication from surface to underground is also being improved, so that the equipment can be stopped immediately after its need is over to minimise the operating hours and ultimately to save energy.

Our company has made a policy to allocate fund in capital for R & D and Energy Conservation to improve the overall energy efficiency as well as induct new technology to minimise the consumption of energy, wherever possible. Following this policy, Automatic Power Factor Correction Panels have been provided at various mines of the company to maintain power factor of the power supply system close to unity which has resulted to reduction of losses as well as Company is getting incentives from Electricity Boards on account of maintaining good power factor.

The Company has been securing / receiving prestigious awards/prizes like National Energy Conservation Awards (NECA) and Maharashtra Energy Development Agency Awards (MEDA), for good works done in the field of Energy Conservation in its various Mines / EMD Plant.

In order to promote non-conventional energy resources, Our Company has installed 4.8 MW Wind Energy Farm at Nagda Hills and 15.2 MW Wind Farm at Ratedi Hills, Dist. Dewas in Madhya Pradesh which have generated 377.55 Lac units during the year 2012-13

Electricity consumption of the Company during 2012-13 as compared to 2011-12 is as under:-

KWH Consumption Per tonne of 2012-13 2011-12 Production

Manganese Ore 18.75 18.33

EMD 2889 2625

Ferro Manganese 3132 3155

The KWH consumption per tonne of Manganese Ore is marginally higher during the financial year 2012-13 as compared to the last financial year 2011-12. As the mines of the Company are going deeper day by day, KWH consumption is on rising trend accordingly. However, it could be maintained up to 18.75 KWH/Tonne for the year 2012-13 which is marginally higher as compared to 18.33KWh/Tonne of last financial year 2011-12.

MINING LEASES AND EXPLORATION

The total lease areas held by MOIL as on 31st March 2013 is 1802.978 Hectors, out of which 700.066 Hectors land is in Maharashtra and 1102.912 Hectors land in Madhya Pradesh. Government of Maharashtra has reserved an area of 814.71 Hector land in Nagpur & Bhandara district of Maharashtra. Government of India, Ministry of Mines, has conveyed prior approval to grant Prospecting License for 597.44 hectors land out of this reserved area of 814.71 hectors. The remaining areas are under process at different stages of grant.

At MOIL, Proving additional Resource/ New Virgin deposits is the task of Exploration. A virgin deposit of Manganese was explored by pitting over recently acquired 5.36 Ha. Area under Prospecting Licence. The area is located at Village Nandapuri of Mauda Tahsil. Exploration activities by drilling being undertaken to establish the deposit. The virgin deposit falls in trend with Old Satuk deposit. Hence expected to attend similar depth & quality as of Old Satuk.

SAFETY AND OCCUPATIONAL HEALTH

Your Company lays special emphasis to ensure safety in the mines and also taking continuous efforts to reduce the accidents by constantly improving the standards of safety equipments through introduction of latest mining techniques and mechanization of mining operations. The 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 inter-action with employees at all levels to prevent accidents to the maximum extent possible.

- Vocational and refresher training is imparted to each employee regularly apart from specialized training.

- Safety and Environment department had conducted training programs on

a) Importance of safety, health, sustainable in mines

b) Disasters management in mines

c) Occupational health and safety in mine

d) During the year our Chikla Mine and Dongri Buzurg Mine have awarded with National Awards for Longest Accident free period and Lowest Injury frequency rate respectively for the year 2008 & 2009.

e) Company has obtained the OHSAS 18001: 2007 certification for Gumgaon and Mansar Mines which were issued on 25/10/2012 apart from re- certification of Dongri Buzurg and Balaghat Mines which were issued on 09/10/2012. Thus, total six mines have obtained the OHSAS certification so far.

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 proactive measures to reduce global warming. The Company is conscious of its responsibility towards environmental protection in and around its leasehold areas. About 55000 samplings were planted during 2012- 13 at different mines of the Company. The cumulative plantation till date is about 17.52 Lakhs saplings. 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 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 MPEDCL. All the units including sand ghats have got Environment Clearence from the MoEF, New Delhi.

VIGILANCE

Your Company has a full-fledged, multidisciplinary department as per DPR''s Guidelines, headed by full time Chief Vigilance Officer from Indian Police Services. The functioning of vigilance department includes precautionary as well as penitentiary vigilance, for all the establishment /mines/ plants of the company including corporate office at Nagpur. Various activities of vigilance department during the year 2012-13 are as under:

Significant contribution

1) Vendor registration

With the aim to increase the participation in tender process the vigilance department has taken an initiative to prepare a web based online vendor registration. An SOP has been prepared in this regard which aims to process and dispose requests for registration in a time bond manner. This will help in obtaining a competitive price through a genuine and healthy competition.

2) Integrity Pact (IP)

For improving implementation of Integrity Pact, a presentation was made before all senior executives of the organisation. As the threshold value of IP had been reduced from existing Rs.10 Cr. to Rs.1 Cr. for purchase/ contract /project, many more contracts would be covered by it leading to a higher utilization of the IP mechanism.

3) CVO''s meeting

A meeting of CVOs of PSU under administrative control of Ministry of Steel was held at MOIL under the chairmanship of Shri D.R.S. Choudhary, Secretary (Steel) and in presence of Shri. U.P.Singh, Joint Secretary and CVO, Ministry of Steel on 16.02.2013. In the meeting CVOs of different PSUs under administrative control of Ministry of Steel were also present.

4) Observation of Vigilance Awareness Week-2012

Vigilance Awareness Week-2012 was observed by MOIL from 29th Oct. to 3rd Nov. 2012. The function was inaugurated by Shri U.P.Singh, IAS, Joint Secretary & CVO, Ministry of Steel. The pledge was administered by Shri. U. P. Singh and Shri. Pradeep Gupta, CVO, in his keynote address, highlighted the activities and achievements of the vigilance department.

- On this occasion vigilance department came out with the first edition of in-house vigilance magazine "SHUCHITA" which was released by Shri U. P. Singh. The magazine contains technical articles of contemporary interest contributed by the officers of MOIL.

- One day seminar on Vigilance awareness was organised at Tirodi Mine. Presentations were made on ''Ethical Vigilance, Cyber Crime, ''Whistle Blower policy'' and ''Common irregularities/lapses in Procurement. Another vigilance awareness programme was organized at Kandri Mine in a College and a School near the mine and professors and students were engaged in a discussion regarding ill-effects of corruption and dishonesty.

- Contractor and vendor meet was organized to make them aware about Integrity pact and other matters related to vigilance observed during inspection and investigations.

- A one day workshop was organized on the theme of "Transparency in Public Procurement". The guest speaker was Shri. Girish Bhatnagar Director General, IRILMM & Ex. G.M. Ministry of Railways, New Delhi who is an acclaimed expert in area of procurement and anti-corruption. He enlighten on how to eliminate corruption in public procurement in India.

- Inter-mine competition on "Preparation of Standard Operating Procedure (SOP)"

Regular Activities

1. Capacity building: Continual activities toward capacity building of the Vigilance personal working in the department, is ensured and efforts were made in a planned manner by imparting internal as well as external training. In addition to this regular trainings are also organized for creating awareness amongst the employee.

A specific training programme on Whistle Blower Policy was organised for the officials of vigilance department.

2. Preventive vigilance: As part of preventive vigilance, 16 work contracts were scrutinized and 83 inspections were carried out during the period. Advisories have been issued, from time to time, to streamline the procedures and bringing transparency in works at different level of operations. In this connection an SOP is being prepared for on-line, time bound registration of vendors and contractors for procurement and contract works for ensuring wider participation in bidding.

3. Complaints: During the year, 35 complaints and 10 nos. of source information''s were received and after carrying out the detailed investigations, the enquiry reports in respect of these cases have been submitted along with the findings & conclusions thereon, to the respective authorities.

4. System improvements : As an outcome of different investigations relating to complaint, study, inspection etc, advisories and suggestions were given for the system improvement in the following areas:

1. SOP for vendor registration, disposal of scrap & major mining activities etc.

2. Updation and posting of Manuals on web site.

3. Tender processing of purchase & work contracts.

4. Procedure related to recruitment and promotion.

5. Preparation of estimates and rate schedules in work contracts.

6. Rationalization of the lower limit for tendering.

7. Refurbishing of the sales accounting system in order to prevent further occurrences of misappropriation.

5. Leveraging Technology: Extensive use of website as tool for communication with the stakeholders & also for curbing corruption and to bring transparency in maximum possible areas of working, has been implemented by MOIL. Accordingly, e-sales, e-auction, e-procurement, e-payments are implemented considering threshold limits. A new refurbished vigilance page has been added to the MOIL''s official website containing vigilance manual and other important links.

IMPLEMENTATION OF RTI

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

MOIL has appointed CPIOs at the Corporate Office and PIOs/APIOs have also been appointed in all its Mines. Exe.Director (Tech.) has been appointed/designated as Appellate Authority under the Act. The names of all the PIOs/APIOs and the Appellate Authority has been also hoisted in Company''s website www.moil.nic.in.

The information in respect of company, its employees etc. has been prepared under 17 heads as prescribed in Section 4(1)(b) of the RTI Act, and the same been hoisted in 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 hoisted/updating 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 has received total 65 no. of applications under RTI Act, from which 53 applications accepted, 12 rejected & 6 appeals accepted under RTI and all have been disposed off during the period. There is no application pending as on 31st March, 2013.

TRAINING PROGRAMMES

During the year 2012-13, total 378 training programmes were conducted. It includes 290 Vocational Training Programmes which were conducted for workers at Vocational training centre at the Mines. Almost 1228 Executives, 1130 Non Executives and 2889 Workers were imparted training during the year. In addition to this 122 Executives and 13 Non-Executives also sponsored for outside training programmes.Thus, in the year under review total 1,36,670 Mandays training were completed on the various topics and total 8707 participants were imparted training. As per MOU rating excellent performance is 1.25, in comparison of this the performance recorded was 4.57 during year 2012-13.

LABOUR WELFARE SCHEMES, RECREATION & MEDICAL FACILITIES

MOIL is carrying on numerous Welfare Scheme such as housing, drinking water, electricity, hospital, health camps schools, home loans on subsidies interest rate etc. for the benefit of the employees as well as people residing in the adjacent areas of Mines which are situated in the remote areas.

Salient features of such schemes are as follows:-

- For improvement of living standard and taking into consideration of aspiration of the employees MOIL has constructed residential quarters and allotted to majority of the employees free of cost.

- The Company is also providing adequate supply of drinking water to the employees residing in the Mine Colonies by Conventional wells, Borewells, Pipeline supply etc. Periodical chlorination of well and tanks are being done.

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

- The Company has set up Hospitals at the Mine maintained by qualified doctors supported by duly trained paramedical staff. The arrangement of OPD as well as indoor ward separately for male and female are provided. Ambulance Van 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.

- MOIL has also commenced the Medical Insurance for retired employees

- The Company is assisting in running Primary Schools at some of the Mines where free education is imparted to the children of the employees. School buses are provided at all the Mines so as to take children to nearby areas for High School/ College.

- The Company has also Scheme for reimbursement of tuition fees and scholarship to meritorious students. Reimbursement of tuition fees to the Children of the workers are provided for taking education in engineering.

- Two school buildings, one at Ukwa and Bharveli have been renovated and provided infrastructure, for better environment to the local children under CSR Scheme.

WELFARE MEASURES TAKEN FOR SC/ST:

MOIL is a labour intensive organization with 6485 employees on its rolls as on 31.03.2013. About 74.20% of the total strength belongs to SC/ST/OBC out of which 43.95% belongs to SC/ST. Our Company is also taking keen interest in development of the down trodden people living in the vicinity of the mines situated in remote areas as detailed below:

- Adopted 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 financial aid, stationery, books etc. to the school adjacent to the mining areas.

- Providing sewing machines to women for their development and self-employment.

- Organising training classes for self employment scheme.

- Provided tri-cycles to the physically challenged persons to be independent.

- Other welfare measures for the development and upliftment of tribal women such as conducting sewing classes, adult literacy classes, AIDS Awareness programmes, propagating such other programmes by display of posters, notices and banners, leprosy awareness programme etc.

- Providing training to the physically challenged persons under Apprenticeship Act.

EMPOWERMENT OF WOMEN:

MOIL employees 799 women employees which constitute 12.32% of its total workforce of 6485 as on 31.03.2013.

In compliance of 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 Complaint 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 educating Blood donation camps, eye camps family planning etc. are being organized regularly mostly for the benefit of the women residing in the remote mine areas.

Every year 8th March is celebrated as International Women Day and various programmes are organized to mark the day. Company grants Maternity Leave and Special Casual Leave for Family Planning. Company has set-up creches at its mines and gives time off for nursing mothers.

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 power, washing soaps, bamboo baskets, tailoring and various other vocational activities in order to make them self-reliant. This programme in MOIL is a big success..

PERSONNEL

The manpower as on 31.03.2013 of our Company is given below:

Category Executives Non- P.R. Total Executives Workers

Male 329 2348 3009 5686

Female 15 114 670 799

Total 344 2462 3679 6485

The category-wise details of employees strength as on 31.03.2013 are as under:

Group Sched- Sched- O.B.C. Others Total uled uled caste tribe

A 36 7 44 130 217

B 36 10 64 121 231

C 319 237 414 550 1520

D 819 1327 1440 872 4458

Sweeper 59 0 0 0 59

Total 1269 1581 1962 1673 6485

Total % 19.57% 24.38% 30.25% 25.80% 100.00%

CITIZEN''S CHARTER AND GRIEVANCE REDRESSAL MECHANISM :

a) 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.

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

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

d) Periodicity monitoring of Grievances by Directors designated for PG and whether other divisions of Department also have PGRM independent of PGRM of Ministry/ Department.

e) Monitored at Head Office on the basis of assessment of data received from unit, Grievance Officer through the monthly report as well as through inspection by Head Office authorities.

Status of Public Staff Grievances for the period 01.04.2012 to 31.03.2013.

Sr. Type of Grievances No. of No. of No. of cases No. Grievances outstanding grievances cases pending on as on as received disposed 31.03.2013 01.04.2012 during the off period 1] Public Grievances - - - -

2] Staff Nil 1007 1007 Nil Grievances

TOTAL Nil 11007 11007 Nil

CORPORATE SOCIAL RESPONSIBILITY

- MOIL Limited has a legacy of not only meeting but excelling the commitments & expectations of its stake holders. All through its existence, your Company has endeavoured to positively uplift the lives of the communities around its areas of operations in almost every possible way, such as Village Adoption, Education, Community Development, Medical Aid, Environment Awareness, etc. The sentiment that Social Responsibility is an intrinsic part of the wealth creation process and when managed properly, can enhance the competitiveness of business, maximize the value of wealth creation to society and thereby contribute to Nation building is deeply seated in the core philosophy of MOIL Limited. The Company has spent a sum of Rs.1055.94 Lakhs in this FY 2012-13, as against MoU target of Rs.715 Lakhs for EXCELLENT rating. Some of the major activities carried out under CSR during the year 2012-13 are:

- Construction of DAV School with a cost of Rs.8 Crores

- Supply and Installation of India Mark II hand pumps and Borewells in remote villages

- Development of Literacy Park

- Increasing Female Literacy and Training for skill development for women development

- Sponsoring Free Cataract Surgeries under "Right to Sight" and "Light to Lives" scheme and more than 3000 free surgeries have been carried out for the rural poor people.

- Providing fully equipped medical van to rural areas for medical aid.

- Providing tri-cycles, hearing aids, crutches, calipers, etc., to the physically challenged persons on a regular basis.

- Providing Solar Lamps and installation of street lights in remote villages

- Construction of bus queue shelter, roads, community hall, construction of class rooms at different school, adoption of schools etc.

- Rejuvenation of old Lakes

- The Company has constructed new schools and renovated existing schools in remote villages around the mines for providing quality education. In this respect, the Company also provides uniforms, text books, stationery, etc., free of cost. Children''s play grounds and gardens have also been developed in the schools for the benefit of students.

SUSTAINABLE DEVELOPMENT

The company has undertaken 04 sustainable development projects for the year 2012-13 and the status of these projects are illustrated as under:

i) Afforestation through social forestry mode: a total of 55000 saplings have been planted so far including fencing of the Plantation area on different mines of MOIL situated in the state of Madhya Pradesh & Maharashtra. The project costs Rs.70.00 lakhs.

ii) Installation of Rain Water Harvesting Scheme at mine colony quarters. : Under this project, 200 nos. quarters have been covered and rain water harvesting system has been installed at all these covered quarter and the system is functioning properly. This projects costs Rs.30.00 lakhs.

iii) Biodiversity Park with fodder & fuel in Fetri village: a Biodiversity park has been earmarked in Fetri village on 0.95 Hct. And the action has been initiated. Rs.3.00 lakh has been invested so far for this project.

iv) Training/ workshop for executives on Sustainable Development: As per the MOU signed with Institute of Public Enterprises, Hyderabad, training programmes on sustainable development have been held for strength of 2% of total executives of the company. This project (MOU) costs Rs.4.00 lakhs.

PROGRESSIVE USE OF HINDI:

During the year, the Company continued its efforts in propagating and implementation of the provisions of Official Language Act, 1963. The Company is also publishing In-House Journal "SANKALP" in Hindi in order to encourage the employees to participate in various competitions like essay competition, noting, drafting, poetry and articles for propagating Hindi.

About 97% of the works are being done in Hindi at Mines, which has been highly appreciated. The Unicode system has been implanted in all 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.

MOIL has been awarded with "Ispat Rajbhasha Trophy"- Ist Prize, for the year 2010-11 by the Ministry of Steel, for excellent works in Hindi.

Employees are being given re-training under the "Hindi Education Scheme" of the Home Ministry, in which 222 employees have already been given training for Pragya (Higher Level) and training of another 30 employees/ officers of the Company is in progress.

"Town Official Language Implementation Committee" Nagpur has awarded MOIL with "1st Prize" for their outstanding work in promoting Hindi for the year 2010-11. Furthermore the In-House Journal "SANKALP" was honored by the Institute of Official Language

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 fields of activities. The following are some of recognition the company has received at national level.

- MOIL has once again obtained EXCELLENT MoU Rating with a composite score of 1.37 for the year 2011-12.

- National Quality Circle Award for presentation and innovations in National Convention - NCQC-2012 was held in Kanpur.

- Corporate Governance CSR Award by Institute of Public Enterprises (IPE), Hyderabad.

- National Safety Award for the year 2008 and 2009 from President of India.

- District Highest Sales Tax Payer Award for Balaghat District of Madhya Pradesh for the year 2010-11

- OHSAS 18001:2007 Certification for Munsar and Gumgaon Mine valid till 24.10.2015.

- Performance Excellence Award for the year 2010-11 from Indian Institution of Industrial Engineering (IIIE).

- Rajbhasha Shield for the year 2010-11 by Rajbhasha Sansthan, New Delhi.

DIRECTORS

During the year under review, Shri K.J. Singh, Chairman- cum-Managing Director (CMD), Dr. Dalip Singh Nominee Director of Govt. of India, Shri K. Shivaji, Nominee Director of Maharashtra Govt., Shri S.K. Mishra, Nominee Director of Madhya Pradesh, Shri M.A.V. Goutham, Director (Finance) has been retired/ceased to be Director of the Company. The Board puts its sincere appreciation towards CMD and Directors who have retired/ceased from the Board during the year.

The Directors appointed during the year are Shri G.P. Kundargi, holding additional charge of Director (Production & Planning) of MOIL as Chairman-cum- Managing Director, Shri Lokesh Chandra, Joint Secretary, Ministry of Steel as Nominee Director- Government of India, Shri Apurva Chandra, Principal Secretary (Industries), Industries, Energy & Labour Department, Mantralaya, Mumbai as Nominee Director- Govt. of Maharashtra and Shri M.P. Chaudhari as Director (Finance).

DIRECTORS'' RESPONSIBILITY STATEMENT

Your Directors confirm that:

1. The applicable accounting standards have been followed along with proper explanations relating to material departures, if any, for preparation of the annual accounts;

2. The accounting policies have been selected and applied consistently and judgments and estimates have been made that are reasonable and prudent, so as to give a true and fair view of the state of affairs of the Company at the end of the financial year ended March 31, 2012 and of the profits of the Company for that year;

3. Proper and sufficient care has been taken to maintain 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 or other irregularities;

4. The annual accounts have been prepared on a going concern basis.

During the year, the company has detected embezzlement of funds committed by one of its employees. The amount of embezzlement detected till date is Rs.31.03 lakh. The matter is being investigated by an independent expert and final report is awaited. Since the amount of terminal benefits due to the employee (which can be applied for recovery of embezzled amount) and amount already deposited are sufficient to recover the above, provision is not considered necessary.

DEPOSITS

The Company has not accepted any Fixed Deposits during the year under review.

AUDITORS

In terms of Section 619 (2) of the Companies Act, M/s V K Surana & Co., Chartered Accountants, Nagpur has been appointed by the Comptroller & Auditor General of India as auditors of your Company for the year 2012-13. The Statutory Auditors'' Report is enclosed which is self explanatory.

COST AUDIT

The Central Government has approved the appointment of M/s Ujwal P. Loya & Co., as the Cost Auditor of the Company to conduct audit of cost accounting records maintained by the Company for the year ended 31.03.2013. The due date for filing the Cost Audit Reports for the financial year ended 31st March, 2013 is 30th September, 2013. The report will be submitted within prescribed time limit. The Cost Audit Report and Compliance Report for the year 2011-12 was filed within the time limit as prescribed by the Ministry of Corporate Affairs.

OTHER DISCLOSURES:

Particulars with respect to R&D and Technology Absorption etc.: The particulars with respect to R&D and technology absorption, as required under the provisions of Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, forming part of this report, is enclosed as Annexure - I to this report.

Foreign Exchange earnings and Outgo: The Company has not made any export of manganese ore during the Financial Year 2012-13. During the year under review, the Company has incurred NIL expenditure in foreign currency as against Rs.28.88 Lakhs in the previous year.

Particulars of Employees: The information in respect of employees covered within the purview of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975, as amended from time to time, is: NIL

Subsidiary Company: MOIL has no Subsidiary Company.

DETAILS OF SHARES IN SUSPENSE ACCOUNT:

The details of shares in suspense account are as follows:

Description No. of No. of Shareholders Shares

Opening Balance as on 22 374 01.04.2012

Shareholders approached 1 17 for Transfer of Shares

Shares transferred 1 17

Pending as on 31.03.2013 21 357

The voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares.

MEMORANDUM OF UNDERSTANDING (MoU)

MOIL is one of few CPSEs which signs MoU with Department of Public Enterprises (DPE). MOIL is signing the MoU and getting excellent rating since several years. DPE has issued MoU Composite Score for the year 2011-12 based on audited data. As per the Memorandum, MOIL got composite Score of 1.37 which falls in EXCELLENT category. This is the consecutive 17th year in which the Company has got EXCELLENT MoU Rating.

Continuing the previous several years custom MOIL once again signed MoU with the Government of India for the year 2013-14 after observing all the formalities. The MoU envisages a production of 11.25 lakh tones, a sales turnover of Rs.835.00 Crores and a net profit of Rs.323.03 Crores.

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 Director''s Report, and enclosed as Annexure - II.

MANAGEMENT DISCUSSION AND ANALYSIS

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

INDUSTRIAL RELATIONS

Industrial relations in our Company continued to be cordial and peaceful during the year 2012-13. 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 gratefully acknowledge the support, cooperation and guidance received by the Govt. of India, Ministry of Steel, State Governments of Maharashtra and Madhya Pradesh, Company''s Bankers, valued customers and suppliers.

Your Directors acknowledge the support extended by the valued and esteemed customers, Shareholders stakeholders, and Departments of Central and State Government. We believe that our long term success is dependent on our customer relationship and responsiveness. We will do every possible thing to provide our customer better, timely and value added services.

The employees of the Company have continued to display their total 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: 25th May, 2013

Mar 31, 2012

The behalf of Board of Directors, I feel great pleasure in presenting the Annual Report of your Company in its Golden Jubilee year, together with the Audit Report and Audited Accounts, for the year ended 31st March, 2012.

FINANCIAL RESULTS

The financial results of 2011-12 and of the previous year are highlighted below:

Rs. in Crores

2011-12 2010-11

Net Sales 899.58 1139.97

Other Income 203.32 145.49

Total Income 1102.90 1285.46

Profit before interest, 636.54 912.66 depreciation and tax (EBIDTA)

Depreciation 29.92 32.51

Profit before tax for the year 606.63 880.15 (PBT)

Less: Provision for Taxation 195.86 292.10 Profit after tax for the year 410.77 588.05 (PAT)

Transfer to General Reserve 300.00 450.00

KEY Financial Ratios

2011-12 2010-11

EBIDTA to Sales Turnover (%) 70.76 80.06

PAT on networth (%) 16.83 27.63

EBIDTA to average capital 25.37 41.94 employed (%)

Earning Per share (Face Value 24.45 35.00 Rs. 10/- each)

Book Value per share 145.32 126.68

DIVIDEND

Continuing the previous many years dividend paying practice, during the year 2011-12, an Interim Dividend @ 20% i.e., Rs 2.00 per Equity Share, has been paid/dispatched in the month of March, 2012. Taking into consideration the profit and free reserves, the Board of Directors of your Company has further recommended a final dividend @ 30% i.e., Rs.3.00 per Equity Share. The total dividend for the year 2011-12 works out Rs 5.00 per equity share as against Rs 7.00 paid in previous year. The total dividend payout for the year works out Rs 84 Crores @50% (Previous year @70% i.e. 117.60 Crores), which is in line with the previous years' declared dividend i.e. 20% of profit after tax.

FINANCIAL PERFORMANCE

Your company has recorded net sales (excluding excise duty) of Rs 899.58 Crores during the financial year 2011-12, as compared to Rs 1139.97 Crores of previous year. Profit before tax (PBT) for the year has decreased by 31.08%, to Rs 606.63 Crores, as compared to previous year. The Company has earned a Profit after Tax (PAT) of Rs 410.77 Crores as against Rs 588.05 Crores in the previous year. Reduction in profit is mainly due to substantial fall in sale realization compared to the year 2010-11.

SALES

The Board is pleased to inform that the Company has sold 10.78 Lakh tonnes of Manganese ore in comparison to 9.99 Lakh tonnes of Manganese ore last year. The year 2011-12 was a year of challenges for the Company, during the year under report there has been pressure on prices of the Manganese ore and Company had to reduce prices of Manganese Ore upto 40%. High Manganese Ore inventory, especially in international market, less demand resulted in fall of prices of Manganese Ore. In spite of all these challenges your Company has managed net sale of Manganese Ore of Rs 810.39 Crores against Rs 1069.25 Crores during 2011-12. Hence, though the Company has registered an increase of 7.33% in sales quantity but a decline of 24.21% in sales turnover has been registered, mainly due to reduction in price of Manganese ore.

In respect of manufactured products viz. Ferro Manganese, EMD, Ferro Manganese Slag, net sale during the year 2011- 12 was Rs 80.73 Crores in comparison to Rs 62.39 Crores during the year 2010-11, registering growth of 29.40% as compared to previous year. The sale of Electrolytic Manganese Dioxide (EMD) was 1005 tonnes, as against the previous year 911 tonnes. Whereas sale of Ferro Manganese at 13239 tonnes has registered achievement of about 191.79% in comparison to sales of 6903 tonnes during 2010-11.

PRODUCTION AND PRODUCTIVITY

During the year the company has produced 10,70,717 Tonnes of various grades of Manganese Ore as against previous year 11,50,742 Tonnes. The production of Electrolytic Manganese Dioxide (EMD) was 714 tonnes as against 805 tonnes during 2010-11. The production of Ferro Manganese was 8694 tonnes as against previous year's production of 9081 tonnes. The Output per Manshift of the Company has been 0.711 tonnes (previous year 0.779 tonnes).

The Company has a closing stock of 1.58 lakh tonnes of manganese ore valued at Rs 57.08 Crores as on 31.03.2012 as compared to 1.91 lakh tonnes of manganese valued at Rs 66.82 Crores as on 31.03.2012. The closing stock of Ferro manganese was 2078 tonnes valued at Rs 8.15 Crores as on 31.03.2012 as against 6622 tonnes valued at Rs 19.53 Crores as on 31.3.2011. The closing stock of EMD as on 31.03.2012 was 299 tonnes (Previous Year 590 Tonnes) valued at Rs 2.08 Crores (Previous Year Rs 4.05 Crores).

OTHER INCOME

As per the Government Guidelines, your Company deployed the surplus funds in fixed deposits and earned an interest income of Rs 193.84 Crores (Previous Year Rs 133.93 Crores) which is included in other income.

CAPITAL / VALUE ADDITION PROJECTS

MOIL is planning to increase production from present level, to 2.2 million tonnes by year 2020. In order to implement this plan, your company planned huge investments for development of existing mines, acquisition of new mines in and outside the country, procurement of license for land in Maharashtra etc. The capital/value addition projects of the Company are as under:

On-Going Projects

- Sinking of vertical shaft at Gumgaon Mine:

As informed in previous Annual Report, Gumgaon mine has vast reserves of manganese ore of high grade quality. In order to exploit this ore, a project of sinking of vertical shaft at Gumgaon Mine was started in the year 2007-08, which is now completed and only allied underground horizontal & vertical development at -300'L is left which will be completed by July, 2012. The project is expected to improve the production level from 60000 Ton per annum (TPA) to 110000 TPA in phases and also increase life of mine.

Deepening of production shaft and deepening Holmes shaft at Balaghat Mine:

In order to sustain the existing level of production and also to augment the same in the coming years, the company took up the work of deepening of production shaft from 10th Level to 15th Level. The project is completed and will increase the production by 60000 TPA and also increase life of mine. The production is expected to commence in the year 2012-13.

Sinking of Vertical shaft at Munsar mine:

With a view to improve the existing level of production and productivity, company has started work of sinking of vertical shaft upto 156 Meters depth of 4.5 mtrs dia. Vertical shaft sinking work started in May Ã 2010 and scheduled completion period is 48 months. Sinking upto depth of 82 Meters has already been achieved against the total sinking of 156 Meters. The project is expected to increase production from 50000 TPA to 100000 TPA and also life of mine.

Sinking of Vertical shaft at Ukwa Mine:

The ore body of Ukwa mine contains high grade manganese ore with vast reserves. In order to exploit these reserves a sinking of vertical shaft was started in Feb., 2011. Total depth of this shaft will be 134 Meters out of which 52 Meters has already been achieved. The project scheduled to be completed in Aug., 2014 and expected to increase production from 50000 TPA to 100000 TPA and also life of mine.

Up-coming Projects

- Sinking of large dia. high speed vertical shaft at Balaghat Mine:

Sinking of large dia. high speed vertical shaft at Balaghat Mine at capital cost of Rs 250 Crores is proposed. The project is expected to increase production from 450000 TPA to 800000 TPA and also life of mine. This Shaft will serve as Production and service Shaft for the lower levels below 400 Mtrs and enable to expedite the development work at lower levels.

- Deepening of Holmes shaft at Balaghat Mine

The Company has proposed deepening of Holmes shaft at Balaghat Mine at capital cost of Rs 20 Crores to increase production by 60000 TPA and also increase life of mine.

- Deepening of vertical shaft at Chikla Mine

The Company has proposed deepening of vertical shaft at Chikla Mine at capital cost of Rs 9.2 Crores to increase production by 55000 TPA and also increase in life of mine.

Proposed new mining projects

- Sinking of high speed vertical shaft (2nd) at Gumgaon Mine

Gumgaon mine holds huge deposits of high quality Mn. Ore. In view of the importance of requirement of higher rate of winning ore from lower levels, it is proposed to sink a high speed vertical shaft of a large dia. of 6.5 Mtrs. to a depth of 300 Mtrs. with provisions for further deepening. It will serve the purpose of faster development, improve ventilation and help in increasing productivity of mine. After becoming fully operational this shaft is expected to augment the production of the mine by 1 Lakhs Ton per annum. The project has capital cost of Rs 150 Crores.

- Sinking of vertical shaft (2nd) at Munsar Mine

Sinking of an additional shaft is proposed to win the ore from lower levels of KL Pit and Parsoda area. The shaft is proposed to be of 4.5 Mtrs. dia. and to be sunk to a depth of 160 Mtrs. approx. with other allied works. It will serve the purpose of faster development and also aid to provide service to lower levels and help in improving ventilation. By its operation, the production and productivity of mine will go up. Execution of the works is expected to be completed in 36 Months expected to start in March 2013. The project has estimated capital cost of Rs 45 Crores.

- Sinking of vertical shaft (2nd) at Chikla Mine

An additional shaft is proposed to be sunk for augmenting production from this mine and for this purpose it is proposed to take up designing of the shaft together with head gear, winder etc., in house. The proposed shaft shall be of 4.5 Mrs. Dia. as per standard design of MOIL and shall be sunk to a depth of 190 Mtrs. On its' full operations, production from this vertical expected to about 0.80 Lakhs TPA. The project has estimated capital cost of Rs 45 Crores.

- Sinking of vertical shaft (2nd) at Ukwa Mine

An additional shaft is proposed at this mine to win Mn. Ore from lowers levels beyond 1250' levels upto 950' level with provisions for further deepening. The shaft is proposed to be of a dia. of 5.5 Mtrs. to be sunk to a depth of 325 Mtrs. with equipping and provisions for a new double drum winding engine. It will serve the purpose of faster development and also aid to provide service to lower levels and help in improving ventilation. The projected cost of the project is Rs60 Crores and expected to start in March 2013 and will take 36 months.

- Joint Ventures

(i) SAIL & MOIL Ferro Alloys Pvt. Ltd: Your Company has Joint Venture (50:50) with Steel Authority of India Limited (SAIL) for setting up Ferro Alloys Plant of 1.06 Lakhs TPA capacity, comprising of 31,000 tonnes of Ferro Manganese and 75,000 tonnes of Silico Manganese, at Nandini, Near Bhilai in Chhattisgarh. The JV Company has floated tender for main Furnace and offers are received. Price negotiations are in progress. MOEF Delhi has granted Environmental Clearance for the Project. Application for Consent to establishment to Chhattisgarh Environment Conservation CG Govt. has been submitted. Approval has been received in respect of supply of water and 220 KV Sub-Station. Tender are floated for main furnace and JV Company is evaluating the bids received.

(ii) RINMOIL Ferro Alloys Pvt. Ltd: MOIL has another Joint Venture (50:50) with Rashtriya Ispat Nigam Limited (RINL) for setting up of Ferro Alloy Plant of 57,000 TPA capacity, comprising of 20,000 Tonnes of Ferro Manganese and 37,000 Tonnes of Silico Manganese at Bobbili, Vizianagaram District of Andhra Pradesh. Various works such as Geo Technical investigation works, survey & contouring at site have already been completed. MOEF has given TOR and waived off public hearing. The Draft Environmental Impact Assessment report is prepared. The state government has also agreed to provide water, electricity, etc for the project. Regarding Power Supply, inspection by AP Transco officials for power connection for both construction and permanent purpose is completed. Construction of Store cum Office building is in progress. The JV Company is evaluating the tenders received from bidders.

RESEARCH & DEVELOPMENT

In the light of growing competition in the Industry, R & D activities are essential for efficient exploration and exploitation of Manganese Ore resources. In every stage of transmission, there are challenges to be met. In order to address these issues effectively, your Company has identified R&D for the following thrust areas:

- Modern environmental friendly hydro-static drill machine has been deployed in opencast mine.

- Hydro-geological studies for stope design in underground mining operations at Kandri Mine are being carried out by Central Institute of Mining & Fuel Research, Dhanbad for better safety & productivity.

- Studies of controlled blasting techniques for fly rock & ground vibration are undergoing at opencast mines.

- Inception of Load Haul & Dump (LHD) machine, tyre mounted, in underground mines for development & stopping operations.

- GPS has been provided at the mines for accurate location & identifications of the lease hold area.

- Optimization of stope designs for safety & productivity improvement.

- Increased interval level (from exiting 30 Meters to 45 Meters) for rapid mining operations at Balaghat Mine.

- For proposed Independent high speed shaft sinking operation for underground mining at Balaghat Mine, hydrological studies & stress monitoring has been done by CIMFR, Dhanbad at site, for ascertain safety parameters of the project.

- Commissioning of PLC driven compressors in Kandri, Ukwa, Gumgaon & Balaghat Mine, for energy saving.

- Studies of reclamation of waste dumps and investigations for other environmental protection measures are going on at sites.

- A collaborative research study is going on for use of overburden material for consolidated hydraulic stowing operation for the underground mining operation with Visvesvaraya National Institute Technology, Nagpur.

- Studies are going on for the development of alternative mining methods and support systems for underground mines.

- Installation of additional indigenously developed IMB plant of 100000 TPA capacity for secondary recovery of manganese ore from the rejects of integrated manganese beneficiation plant and dumps at Balaghat Mine and a study for beneficiation of low grade ore/ fines is in progress there.

- Modern techniques of exploration like geophysical exploration by gravity magnetic and Hydro-static drilling machines.

- Analytical works through XRF spectrophotometer for accurate and speedy analysis of manganese ore were done.

- Ventilation networking studies for deeper levels at Balaghat Mine is going on by Indian School of Mines, Dhanbad.

- Introduction of Total Stations - High speed survey instrument with high accuracy level for maintaining accurate survey of mines.

- For deeper exploration of manganese ore reserves/ resources, core drilling is taken up through MECL at various mines.

- For sintering of manganese fines, samples have been given to IBM. This study will help to conserve the manganese ore.

CONSERVATION OF ENERGY

MOIL has made a policy to allocate fund for R & D and energy conservation to improve the overall energy efficiency as well as induct new technology to minimize the consumption of energy in the productive activities.

The company has been adopting various measures for energy conservation which includes conventional measures by improving the efficiency of existing equipment as well as introducing new technology in line with the national policy of energy conservation. During the year 2011-12 the company installed and commissioned 1 No. 4000 CFM Centrifugal Air Compressor with soft starter panel at Balaghat. Air compressors with VFD panel at our various mines, contributes 5% to 10% saving in electrical energy for operation of compressors.

The size of pumps as well as pumping levels is designed to optimize power consumed in underground mines. On the technological front, pumps and compressor used for pro- long hours are being provided with variable frequency drive and communication from surface to underground is being improved, so that the equipment can be stopped immediately after its need is over to minimize the operating hours.

In order to promote non-conventional energy resources, MOIL has installed 4.8 MW Wind Energy Farm at Nagda Hills and 15.2 MW Wind Farm at Ratedi Hills, Dist. Dewas in Madhya Pradesh which has generated 332.14 Lakh units during the year. Electricity consumption of the Company

MINING LEASES

The total lease areas held by MOIL as on 31st March 2012 is 1802.978 Hectors, out of which 700.066 Hectors land is in Maharashtra and 1102.912 Hectors land in Madhya Pradesh. Government of Maharashtra has reserved an area of 814.71 Hector land in Nagpur & Bhandara district of Maharashtra. Government of India, Ministry of Mines, has conveyed prior approval to the grant of Prospecting License for 597.44 hectors land out of this reserved area of 814.71 hectors.

SAFETY AND OCCUPATIONAL HEALTH

Your Company lays special emphasis to ensure safety in the mines and also taking continuous efforts to reduce the accidents by constantly improving the standards of safety equipments through introduction of latest mining techniques and mechanization of mining operations. The 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 inter-action with employees at all levels to prevent accidents to the maximum extent possible.

- Vocational and refresher training is imparted to each employee regularly apart from specialised training.

- Safety and Environment department had conducted training programs on

a) Importance of safety, health, sustainable development in mines

b) Disasters management in mines

c) Occupational health and safety in mines

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 proactive measures to reduce global warming. The Company is conscious of its responsibility towards environmental protection in and around its leasehold areas. About 58000 samplings were planted during 2011- 12 at different mines of the Company. The cumulative plantation till date is about 17.55 Lakhs saplings. 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 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 MPEDCL.

VIGILANCE

As per DPE's guidelines, MOIL has a full-fledged multidisciplinary department, headed by full time Chief Vigilance Officer from Indian Police Services. The functioning of vigilance department includes Preventive as well as punitive vigilance, for all the establishment / mines/ plants of the company including corporate office at Nagpur. Various activities of vigilance department during the year are as under:

Significant contribution

1. "Vigilance focus meeting" was organized with the participation of the management & all HODs. The CVO highlighted the deviations from the rules, irregularities & lacunas etc. observed in the process(es) & also absence of SOPs on the major mining activities, necessitating & warranting the improvements/ amendments in the rules, procedures & also on apprising / seeking approvals of the competent authority. The major areas covered were Production, Marketing, Personnel, System department.

2. MOIL organized a workshop on "Conclave on Vigilance Activities". The workshop was aimed at capacity building and knowledge dissemination thorough presentation of case studies and sharing of success stories of Vigilance department of various public sectors unit relating to mining activities.

Vigilance functionaries from PSUs like MOIL Ltd., Nagpur, NMDC Ltd., Hyderabad, WCL, Nagpur and MECL, Nagpur participated in the workshop. A visit was also organised to observe the activities related to mining at Munsar Mine.

3. Vigilance Awareness Week-2011 was observed, from 31st Oct, 2011 to 5st Nov, 2011, in various Establishments / Mines of MOIL. Various Competitions were organised for improving awareness among the employees. Also a Group discussion (Sangoshthi) amongst the eminent personalities from the different groups of the society was organized at Dongri Buzurg Mine.

Regular Activities

4. Capacity building: Continual activities toward capacity building of the Vigilance personal working in the department, is ensured and efforts were made in a planned manner by imparting internal as well as external training. In addition to this regular trainings are also organized for creating awareness amongst the employee.

A specific training programme on ISO 9001-2008 has been organised for improving awareness among the officials involved with the procedure and systems related to ISO.

5. Preventive vigilance: As part of preventive vigilance 13 work contracts were scrutinized and 65 inspections were carried out during the period. Advisories have been issued, from time to time, to streamline the procedures and bringing transparency in works at different level of operations. In this connection an SOP is being prepared for on-line registration of vendors and contractors for procurement and contract works for ensuring wider participation in bidding.

6. Complaints: During the year, 15 complaints were received and after carrying out the detail investigations, the enquiry reports in respects of all 15 cases have been submitted along with the findings & conclusions thereon, to the respective authorities.

7. Systemic improvements : As an outcome of different investigations related to complaint, study, inspection etc, advisories and suggestions were given for the systemic improvement in the following areas:

1. Marketing & pricing policy, e-sales

2. SOP for vendor registration, disposal of scrap major mining activities etc.

3. Updation of Manuals

4. Tender processing of purchase & work contracts

5. Procedure related to recruitment and promotion

6. Measurement and Dispatch of ore (Railing excess)

7. Preparation of estimates and rate schedules in work contracts

8. Leveraging Technology: Extensive use of website as tool for communication with the stakeholders & also for curbing corruption and also in bring transparency in maximum possible areas of working, has been implemented by MOIL. Accordingly, e-sales, e-auction, e-procurement, e-payments are implemented considering threshold limits. Manuals, vigilance corner and vigilance links are posted on the website for bringing more transparency.

IMPLEMENTATION OF RTI

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

MOIL has appointed CPIOs at the Corporate Office and PIOs/APIOs have also been appointed in all its Mines. Director (P&P) has been appointed/designated as Appellate Authority under the Act. The names of all the PIOs/APIOs and the Appellate Authority has been also hoisted in Company's website www.moil.nic.in.

The information in respect of company, its employees etc. has been prepared under 17 heads as prescribed in Section 4(1)(b) of the RTI Act, and the same been hoisted in 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 hoisted/updating 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 has received total 91 no. of applications under RTI Act, from which 85 applications accepted, 6 rejected & 4 appeals accepted under RTI and all have been disposed off during the period. There is no application pending as on 31st March, 2012.

TRAINING PROGRAMMES

During the year 2011-12, total 389 training programmes were conducted. It includes 278 Vocational Training Programmes which were conducted for workers at Vocational training centre at the Mines. Almost 894 Executives, 1501 Non Executives and 3130 Workers were imparted training during the year. In addition to this 113 Executives and 55 Non-Executives also sponsored for outside training programmes. Thus, in the year under review total 1,25,715 Mandays training were completed on the various topics and total 8096 participants were imparted training. As per MOU rating excellent performance is 1.25, in comparison of this the performance recorded was 3.27 during year 2011-12.

LABOUR WELFARE SCHEMES, RECREATION & MEDICAL FACILITIES

MOIL is carrying on numerous Welfare Scheme such as housing, drinking water, electricity, hospital, health camps schools, home loans on subsidies interest rate etc. for the benefit of the employees as well as people residing in the adjacent areas of Mines which are situated in the remote areas.

Salient features of such schemes are as follows:-

- For improvement of living standard and taking into consideration of aspiration of the employees MOIL has constructed residential quarters and allotted to majority of the employees free of cost.

- The Company is also providing adequate supply of drinking water to the employees residing in the Mine Colonies by Conventional wells, Borewells, Pipeline supply etc. Periodical chlorination of well and tanks are being done.

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

- The Company has set up Hospitals at the Mine maintained by qualified doctors supported by duly trained paramedical staff. The arrangement of OPD as well as indoor ward separately for male and female are provided. Ambulance Van is also provided to all the hospitals for attending to emergencies. The patients are also being referred for medical treatments to specialized hospitals as per the requirement.

- MOIL has also commenced the Medical Insurance for retired employees

- The Company is assisting in running Primary Schools at some of the Mines where free education is imparted to the children of the employees. School buses are provided at all the Mines so as to take children to nearby areas for High School/ College.

- The Company has also Scheme for reimbursement of tuition fees and scholarship to meritorious students. Reimbursement of tuition fees to the Children of the workers are provided for taking education in engineering.

- Two school buildings, one at Ukwa and Bharveli have been renovated and provided infrastructure for better environment to the local children under CSR Scheme.

WELFARE MEASURES TAKEN FOR SC/ST:

MOIL is a labour intensive organization with 6569 employees on its rolls as on 31.03.2012. About 73.58% of the total strength belongs to SC/ST/OBC out of which 43.91% belongs to SC/ST. Our Company is also taking keen interest in development of the down trodden people living in the vicinity of the mines situated in remote areas as detailed below:

- Adopted 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 financial aid, stationery, books etc. to the school adjacent to the mining areas.

- Providing sewing machines to women for their development and self-employment.

- Organising training classes for self employment scheme.

- Provided tri-cycles to the physically challenged persons to be independent.

- Other welfare measures for the development and upliftment of tribal women such as conducting sewing classes, adult literacy classes, AIDS Awareness programmes, propagating such other programmes by display of posters, notices and banners, leprosy awareness programme etc.

- Providing training to the physically challenged persons under Apprenticeship Act.

EMPOWERMENT OF WOMEN:

MOIL employees 786 women employees which constitute 11.96% of its total workforce of 6569 as on 31.03.2012.

In compliance of 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 Complaint 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 educating Blood donation camps, eye camps family planning etc. are being organized regularly mostly for the benefit of the women residing in the remote mine areas.

Every year 8th March is celebrated as International Women Day and various programmes are organized to mark the day. Company grants Maternity Leave and Special Casual Leave for Family Planning. Company has set-up crÃÂ¨ches at its mines and gives time off for nursing mothers.

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 power, washing soaps, bamboo baskets, tailoring and various other vocational activities in order to make them self-reliant. This programme in MOIL is a big success.

PERSONNEL

The manpower as on 31.03.2012 of our Company is given below:

Category Executives Non- P. R. Total Executives Workers

Male 328 2369 3086 5783

Female 17 121 648 786

Total 345 2490 3734 6569

The category-wise details of employees strength as on 31.03.2012 are as under :

Group Scheduled Scheduled O.b.c. Others Total caste tribe

A 37 7 46 139 229

B 34 8 57 121 220

C 336 244 414 571 1565

D 827 1334 1432 904 4497

Sweeper 58 --- --- --- 58

Total 1292 1593 1949 1735 6569

Total % 19.67% 24.25% 29.67% 26.41% 100.00%

CITIZEN'S CHARTER AND GRIEVANCE REDRESSAL MECHANISM :

A] Employees grievances Ã 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.

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

C] Public Grievance Ã All Grievance officials have been apprised of the manner in which the Public Grievance received at this end are to be disposed. The system adopted for dealing the grievance of Public was constituted on the basis of instructions received from various authorities in the past.

D] Periodicity monitoring of Grievances by Directors designated for PG and whether other divisions of Department also have PGRM independent of PGRM of Ministry/ Department.

E] Monitored at Head Office on the basis of assessment of data received from unit, Grievance Officer through the monthly report as well as through inspection by Head Office authorities.

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) is the alignment of business operations with social values, integrating the interests of stakeholders. In the MoU for 2011-12, the Government had fixed CSR expenditure target of Rs 628 lakh for Excellent rating and the Company has successfully achieved the same by spending Rs 655.91 lakh during year 2011-12.

Setting Up DAV School

The Company together with DAV College Trust is setting up a full fledged school under the control of DAV Trust. The school will cater to Dongri Buzurg, Sitasaongi, Chikla, Tirodi & other near-by villages in the adjoining Balaghat district of Madhya Pradesh. Apart from the children hailing from these villages, the wards of MOIL employees will also be benefited. During the year 2011-12 MOIL has spent Rs 1.31 Crore on setting up of DAV School.

Some of the other welfare programmes under CSR are as following:

- Provided uniform clothes to the school children

- Contributing for the setting up the biological Park in Nagpur

- Extend help for free cataract surgeries and eye examination of children including providing spectacles wherever necessary

- Contribution of Rs 1.00 Crore for construction of Trauma Care Centre, Budhni (MP)

- Provided patient carrying bus to Mure Memorial Hospital, Nagpur

- Construction of roads, cremation sheds, renovation of schools, construction of addition class rooms, drains, and water supply facilities etc. in the villages adopted by the company and also at other villages surrounding the mines of the company

PROGRESSIVE USE OF HINDI:

During the year, the Company continued its efforts in propagating and implementation of the provisions of Official Language Act, 1963. The Company is also publishing In-House Journal "SANKALP" in Hindi in order to encourage the employees to participate in various competitions like essay competition, noting, drafting, poetry and articles for propagating Hindi.

About 97% of the works are being done in Hindi at Mines, which has been highly appreciated. The Unicode system has been implanted in all 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.

MOIL has been awarded with "Ispat Rajbhasha Trophy"- Ist Prize, for the year 2010-11 by the Ministry of Steel, for excellent works in Hindi.

Employees are being given re-training under the "Hindi Education Scheme" of the Home Ministry, in which 222 employees have already been given training for Pragya (Higher Level) and training of another 30 employees/ officers of the Company is in progress.

"Town Official Language Implementation Committee" Nagpur has awarded MOIL with "1st Prize" for their outstanding work in promoting Hindi for the year 2010- 11. Furthermore the In-House Journal "SANKALP" was honored by the Institute of Official Language

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 fields of activities. The following are some of recognition the company has received at national level.

- National Energy Conservation Award 2011, 2nd prize, for Ukwa Mine by Bureau of Energy Efficiency, Ministry of Power, Govt. of India.

- "Ispat Rajbhasha Trophy"- 1st Prize, for the year 2010- 11 by the Ministry of Steel for excellent works in Hindi.

- "First Prize" for their outstanding work in promoting Hindi for the year 2010-11 by "Town Official Language Implementation Committee" Nagpur

- 6th Employer Branding Awards (Regional Round) & India Human Capital Summit 2011

- India Productivity Award (Organization) - 2011 by Indian Institute of Industrial Engineering

- PAR Excellent Award for Tirodi Mine at National Convention on Quality Concepts-2011

- Excellent Award for EMD Plant Dongri Buzurg Mine at National Convention on Quality Concepts-2011

- District Highest Sales Tax Payer Award for the year 2009-10 for Balaghat District of Madhya Pradesh under its Bhamashah Puraskar Yojana for highest sales tax payment at district level.

- Coal India Productivity Award 2011 by the Indian Institution of Industrial Engineering.

DIRECTORS

During the year under review, Nominee Director of Govt. of Maharashtra Shri A.M. Khan has taken voluntary retirement from the post of Principal Secretary (Industries) w.e.f. 08.07.2011. Govt. of Maharashtra has nominated Dr. K Shivaji, Principal Secretary (Industries), Industries, Energy & Labour Department, Manttralaya, Mumbai and President of India has appointed Dr. K. Shivaji vide order dated 07.03.2012.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies Act 1956, it is hereby stated as under:

i. In the preparations of the Annual Accounts, applicable accounting standards have been followed along with proper explanation relating to Material Departures.

ii. The Directors have selected such accounting policies and applied them consistently and judgements, estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or the loss of the Company for that period.

iii. The Directors have 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.

iv. The Directors have prepared the annual accounts on a going concern basis.

DEPOSITS

The Company has not accepted any Fixed Deposits during the year under review.

AUDITORS

In terms of Section 619 (2) of the Companies Act, M/s V K Surana & Co., Chartered Accountants, Nagpur has been appointed by the Comptroller & Auditor General of India as auditors of your Company for the year 2011-12. The Statutory Auditors' Report is enclosed.

COST AUDIT

The Central Government has approved the appointment of M/s. D. Rajarao & Co., as the Cost Auditor of the Company to conduct audit of cost accounting records maintained by the Company for Wind Mill Division of the Company for the year ended 31.03.2012. The due date for filing the Cost Audit Reports for the financial year ended 31st March, 2012 is 30th September, 2012. The report will be submitted within prescribed time limit.

Incorporating of New Accounting Policy

During the report under review the Company has incorporated new accounting policy in respect of "Impairment of assets". The new policy is described as follows:

"Company assesses, at each balance sheet date, whether there is any indication that assets may be impaired. If any such indication exists, Company estimates the recoverable amount of assets. If such recoverable amount is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If there is any indication that previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount."

The inclusion of the policy does not have any impact on result of the current financial year.

OTHER DISCLOSURES

Particulars with respect to R&D and Technology Absorption etc.: The particulars with respect to R&D and technology absorption, as required under the provisions of Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, forming part of this report, is enclosed as Annexure Ã I to this report.

Particulars of Employees: The information in respect of employees covered within the purview of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975, as amended from time to time, is: NIL

Subsidiary Company: MOIL has no Subsidiary Company.

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 Director's Report, and enclosed as Annexure - II.

MANAGEMENT DISCUSSION AND ANALYSIS

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

INDUSTRIAL RELATIONS

Industrial relations in your Company continued to be cordial and peaceful during the year 2011-12. 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 gratefully acknowledge the valuable guidance and support extended by the Govt. of India, Ministry of Steel, State Governments of Maharashtra and Madhya Pradesh, Company's Bankers, valued customers and suppliers.

The employees of the Company have continued to display their total 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.

Your Directors are thankful to the shareholders for their faith and continued support in the endeavours of the Company.

On behalf of the Board of Directors

Sd/-

K. J. Singh

Chairman-cum-Managing Director

Place: Nagpur

Date : 25th May, 2012

Mar 31, 2011

Dear Members,

On behalf of the Board of Directors, first time after being listed, I take pleasure in presenting the 49th Annual Report on the performance of your Company, together with the Audit Report and Audited Accounts, for the year ended 31st March, 2011.

FINANCIAL RESULTS

The financial results of 2010-11 and of the previous year are highlighted below:

Rs. in Crores

2010-11 2009-10

Sales Turnover 1139.97 969.39

Other Income 145.28 129.92

Total Income 1335.09 1087.85

Profit before interest, depreciation and tax (EBIDTA) 912.66 732.09

Depreciation 32.51 25.30

Profit before tax for the year (PBT) 880.15 706.79

Less: Provision for Taxation 292.10 240.44

Profit after tax for the year (PAT) 588.05 466.35

Transfer to General Reserve 450.00 357.00

KEY Financial Ratios

2010-11 2009-10

EBIDTA to Sales Turnover (%) 80.06 75.52

PAT on networth (%) 27.76 27.80

EBIDTA to average capital 48.58 48.94 employed (%)

Earning Per share 35.00 27.76 (Face Value Rs. 10/- each)

Book Value per share 126.10 99.84

DISINVESTMENT / INITIAL PUBLIC OFFER (IPO)

Your Director's are proud to mention the huge success of IPO during the Financial Year 2010-11, for which we once again thank our investors/ shareholders who have shown their faith in the company. The success of IPO reflects the inherent strength and bright future of the company. MOIL got listed on 15th December, 2010 on National Stock Exchange and Bombay Stock Exchange. In the IPO, Government of India disinvested 10%, and Government of Maharashtra and Government of Madhya Pradesh disinvested 5% each, out of the total paid up capital in the Company. Out of the offer of 3,36,00,000 Equity Shares, 2% i.e. 6,72,000 Equity Shares, was reserved for eligible employees. All individual Investors were given a discount of 5%, as approved by the Government. It gives a great feeling in mentioning that MOIL IPO was oversubscribed by about 56 times with overwhelming response from institution and HNI segment. The issue fetched Rs. 618.76 crores to Government of India and Rs. 309.38 each to Government of Maharashtra and Government of Madhya Pradesh.

DIVIDEND

MOIL has been consistently complying with the guidelines of Department of Public Enterprises (DPE) regarding the payment of dividend. During the year, an Interim Dividend @ 25% i.e. Rs. 2.50 per Equity Share, has been paid in the month of February, 2011. The Board of Directors of your company has further recommended a final dividend @ 45% i.e. Rs. 4.50 Per Equity Share. The total dividend for the year 2010-11 works out Rs. 7.00 per equity share as against Rs. 5.60 paid in previous year. The total of dividend @ 70% for the year amounts to Rs. 117.60 Crores (previous year @ 56% i.e. Rs. 94.00 Crores).

FINANCIAL PERFORMANCE

Your company has recorded turnover of Rs. 1139.97 Crores during the financial year 2010-11 as compared to Rs. 969.39 Crores of previous year. PBT for the year is Rs. 880.15 Crores, which has increased by 24.52% as compared to previous year. The Company has earned a Profit after Tax (PAT) of Rs. 588.05 Crores as against to Rs. 466.35 Crores in the previous year.

SALES

Your Directors take pride to mention that a net sale of Manganese Ore is Rs. 1,069 Crores against of Rs. 910 Crores when compared to previous year registering growth of 17.47%. The Company registered sale quantity 9.99 lakhs tonnes of manganese ore during the current year as against target of 10.25 lakhs tonnes resulting in an achievement of about 96%. In respect of manufactured products viz. Ferro Manganese, EMD, Ferro Manganese Slag, net sale during the year 2010-11 was Rs. 67.74 Crores in comparison to Rs. 52.93 Crores during the year 2009-10. The sale of Electrolytic Manganese Dioxide (EMD) was 911 tonnes, as against the target of 1000 tonnes achieving about 91% of the target. Sale of Ferro Manganese at 6903 tonnes has registered achievement of about 77% of the targeted sales of 9000 whereas sale of Ferro Mn Slag was 14339 tonnes of as against 10911 tonnes in the previous year. In terms of value, the total net sales turnover during the year 2010-11 was Rs. 1139.96 Crores (Including sale of power of Rs. 8.32 Crores) as against previous year Rs. 969.39 Crores (Including sale of power of Rs. 9.31 Crores) registering growth of 17.60%. Increase in sales value is due to effective Pricing & Marketing Polices and better sales realisations.

PRODUCTION AND PRODUCTIVITY

During the year the company has successfully achieved the targeted production of 11, 50,742 Tonnes of various grades of Manganese Ore as against previous year 10, 93,363 Tonnes. The production of Electrolytic Manganese Dioxide (EMD) was 805 tonnes (previous year 1150 tonnes) as against the target of 1000 tonnes. It is to mention the EMD plant was shut down for annual maintenance for three months during the year. Further due to less demand, poor off take and high inventory the production of EMD has reduced. The production of Ferro Manganese was 9081 tonnes (previous year 9555 tonnes) as against a target of 9,000 tonnes. The productivity of the Company has been excellent and Output Per Manshift is 0.779 tonnes (previous year 0.728 tonnes) as against target of 0.500 tonnes.

The Company has a closing stock of 1.91 lakh tonnes of manganese ore valued at Rs. 66.82 Crores as on 31.3.2011 as compared to 0.67 lakh tonnes of manganese valued at Rs. 20.36 Crores as on 31.3.2010.The closing stock of Ferro Manganese was 6622 tonnes valued at Rs. 19.53 Crores as on 31.3.2011 as against 4444 tonnes valued at Rs.16.32 Crores as on 31.3.2010.The closing stocks have increased mainly due to lower off take during the last quarter of the year. The closing stock of EMD as on 31.3.2011 was 590 tonnes (Previous Year 696 Tonnes) valued at Rs. 4.04 Crores.

OTHER INCOME

Your Company continued its prudent cash planning during the year also, and deployed the surplus funds in fixed deposits as per the Government guidelines and earned an interest income of Rs.133.93 Crores (Previous Year Rs. 124.20 Crores).

CAPITAL / VALUE ADDITION PROJECTS

- Sinking of vertical shaft at Gumgaon Mine:

Gumgaon mine has vast reserves of manganese ore of high grade quality. In order to exploit this ore, a vertical shaft is being sunk at this mine. The project will improve the production level as well as productivity and safety. Shaft sinking & lining work is completed upto 190 Meters. Project is at the last phase of the completion and likely to be completed by October, 2011.

- Deepening of production shaft and deepening Holmes shaft at Balaghat Mine:

In order to sustain the existing level of production and also to augment the same in the coming years the company has taken up the work of deepening of production shaft from 10th Level to 15th Level with Loading station at 14ÃÂ½ level Shaft Sinking and Lining work is completed upto 157 Meters. Project is likely to be completed by July Ã 2011. The company is also in process to start deepening of Holmes shaft from 12th Level to 16ÃÂ½ Level (135 Meters) to improve production.

- Deepening of Vertical shaft at Beldongri Mine:

The work of deepening of vertical shaft by further 45 Meters was taken up in 2007 to sustain the production at Beldongri Mine. This work was completed in June 2010.

- Sinking of Vertical shaft at Munsar mine:

In order to improve the existing level of production and productivity, company has started work of sinking of vertical shaft having depth as 150 Meters. Vertical shaft sinking work started in May Ã 2010 and scheduled completion period is 48 months. A sinking of 42 Meters has already been achieved against the total sinking of 150 Meters.

- Sinking of Vertical shaft at Ukwa Mine:

The ore body of Ukwa mine contains high grade manganese ore with vast reserves. In order to exploit these reserves a vertical shaft is being sunk. Total depth of this shaft will be 134 Meters out of which 7.5 Meters has already been achieved. The work started in Feb 2011 and scheduled completion period is 42 months.

- Joint Ventures

(i) SAIL & MOIL Ferro Alloys Pvt. Ltd: Your Company has Joint Venture (50:50) with Steel Authority of India Limited. SAIL for setting up Ferro Alloys Plant of 1.06 Lakhs TPA capacity, comprising of 31,000 tonnes of Ferro Manganese and 75,000 tonnes of Silico Manganese, at Nandini, Near Bhilai in Chhattisgarh. The JV Company has floated tender for main Furnace and the offers received are under consideration. The work for obtaining the grid connection for electricity in the Plant is also under process.

(ii) RINMOIL Ferro Alloys Pvt. Ltd: MOIL has another Joint Venture (50:50) with Rashtriya Ispat Nigam Limited (RINL) for setting up of Ferro Alloy Plant of 57,500 TPA capacity, comprising of 20,000 Tonnes of Ferro Manganese and 37,500 Tonnes of Silico Manganese at Bobbili, Vizianagaram District of Andhra Pradesh. Various works such as Geo Technical investigation works, survey & contouring at site have already been completed. MOEF has given TOR and waived off public hearing. The Draft Environmental Impact Assessment report is prepared. The state government has also agreed to provide water, electricity, licence etc for the project. The JV Company has floated tender for main Furnace and the offers received are under consideration

RESEARCH & DEVELOPMENT

In the light of growing competition in the Industry, R & D activities are essential for efficient exploitation of Manganese Ore resource. In every stage of transmission there are challenges to be met. In order to address these issues effectively, your Company has identified R&D for the following thrust areas:

- Inception of Load Haul & Dump machine (LHD) tyre in underground mines for development & stopping operations.

- Optimization of stope designs for safety & productivity improvement.

- Engaged in hydro-geological studies for underground mining operations at Kandri Mine.

- Increase level of interval (from exiting 30 Meters to 45 Meters) for rapid mining operations.

- Independent high speed shaft sinking operation for underground mining for 650 mtr at Balaghat Mine, hydrological studies & stress monitoring is going on at site for safety of the project.

- Commissioning of PLC driven compressors in Kandri, Ukwa & Gumgaon Mine for energy saving and studies of reclamation of waste dumps and investigations for other environmental protection measures

- Collaborative research studies for use of overburden material for consolidated hydraulic stowing operation for the underground mining operation with Visvesvaraya National Institute Technology, Nagpur.

- Development of alternative mining methods and support systems for underground mines.

- Installation additional indigenously developed IMB plant of 100000 TPA capacity for secondary recovery of manganese ore from the rejects of integrated manganese beneficiation plant and dumps at Balaghat Mine and a study for beneficiation of low grade ore/ fines is in progress there.

- Modern techniques of exploration like geophysical exploration by gravity magnetic and Hydro-static drilling machines .

- Studies of control blasting techniques for fly rock & ground vibration are undergoing at opencast mines.

- Analytical works through XRF spectrophotometer for accurate and speedy analysis of manganese ore were done.

- Ventilation studies with Indian School of Mines, Dhanbad.

- Introduction of Total Stations - High speed survey instrument with high accuracy level for maintaining accurate survey of mines.

CONSERVATION OF ENERGY

MOIL has made a policy to allocate fund for R & D and energy conservation to improve the overall energy efficiency as well as induct new technology to minimise the consumption of energy in the productive activities.

The company has been adopting various measures for energy conservation which includes conventional measures by improving the efficiency of existing equipment as well as introducing new technology in line with the national policy of energy conservation. During the Year 2010-11, The Company installed & commissioned 3 Nos.1000 CFM Screw Air Compressors with VFD panel at our various mines, which contributes 5% to 10% saving in electrical energy for operation of compressors at respective mines.

The size of pumps as well as pumping levels is designed to optimise power consumed in underground mines. On the technological front, pumps and compressor used for pro-long hours are being provided with variable frequency drive and communication from surface to underground is being improved, so that the equipment can be stopped immediately after its need is over to minimise the operating hours.

In order to promote non-conventional energy resources, MOIL has installed 4.8 MW Wind Energy Farm at Nagda Hills and 15.2 MW Wind Farm at Ratedi Hills, Dist. Dewas in Madhya Pradesh which has generated 310.3 lakh units during the year. Electricity consumption as under:-

Consumption per tonne 2010-11 2009-10 (in kWh)

Manganese Ore 17.94 17.64

EMD 2777.0 2387.0

Ferro Manganese 3059.0 2988.0

MINING LEASES

The total lease areas held by MOIL as on 31st March 2011 is 1798.908 Hectors, out of which 695.996 Hectors land is in Maharashtra and 1102.912 Hectors land in Madhya Pradesh. Government has also reserved an area of 814.71 Hector land in Nagpur & Bhandara district of Maharashtra. MOIL has already submitted Prospecting Licence application for the area and the acquisition is under process.

SAFETY AND OCCUPATIONAL HEALTH

Your Company lays special emphasis to ensure safety in the mines and also taking continuous efforts to reduce the accidents by constantly improving the standards of safety equipments through introduction of latest mining techniques and mechanization of mining operations. The 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 inter-action with employees at all levels to prevent accidents to the maximum extent possible.

The records of Safety of MOIL mines have been excellent and have one of the lowest frequency rates of injuries. It is getting National Safety Award continuously for the last many years for its excellent safety record. This year MOIL has won the following prizes:

- Winner's Trophy for Longest Accident Free Period by Chikla MIne.

- Runners-up Trophy for Lowest Injury Frequency Rate Dongri Buzurgi Mine.

During the year company has participated in All India Mines Rescue Competition (Coal & Metal) 2010-11 and won Winner Recovery Drill (Metal).

ENVIRONMENTAL PROTECTION

Ecology conservation is crucial in today's era. As 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 proactive measures to reduce global warming. The Company is conscious of its responsibility towards environmental protection in and around its leasehold areas. About 53000 samplings were planted during 2010- 11 at different mines of the Company. The cumulative plantation till date is about 17.14 Lakhs saplings. 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 out of which electricity generated by 4.8 Mw is consumed by Ferro Manganese Plant of the Company and electricity generated by 15.2 Mw Wind Farm is sold to MPEDCL.

VIGILANCE

MOIL has a full-fledged, multidisciplinary department, as per DPE's guidelines, headed by full time Chief Vigilance Officer from Indian Police services. Sincere efforts have been made towards capacity building of the newly appointed Vigilance personnel, in all 26 Intra & Inter Department Programs were organized, in addition to this, sponsorship have been made for 6 External Training Programs organized by the eminent institutions in the field. While discharging the role of Vigilance Department, more emphasis is given to Proactive & Predictive Vigilance in the functioning and dealing with the issues relating to all the establishment / mines/ plants / ventures of the company including corporate office at Nagpur.

Major activities undertaken by Vigilance Department are:

(i) Received Certification as per ISO 9001:2008 in May, 2010.

(ii) "Vigilance focus meeting" was organized with participation of the management & HODs. The major areas covered were -

a) Production

- Rationalization Pre qualification Clause of having experience of "Similar Works" in case of railing & transport contract & for giving wide publicity for such contracts for better participation & competitive rates.

- Change in the method of treatment & recording of fines.

- Booking of figures on actual & correct reporting of the same for removing potential irregularities & for minimizing pilferages.

- The necessity of having for registration of vendors / contractors and the website of the company should provide for a online registration.

b) Marketing

- Inclusion of more grades of ores in the e-auction

- Bringing improvements & changes in the marketing policy.

(iii) Extensive use of website as tool for communication, transparency & curbing corruption. Modification of the area relating to "Tenders" particularly with regard to "Tenders Enquiries Uploaded" & "Tenders Finalized" during a period / month, in the MOIL website. MOIL has also inculcated the "Vigilance Page" on the website which provides overall information.

(iv) Other Preventive Activities:

- Vigilance Awareness Week was observed, from 25th Oct, 2010 to 1st Nov, 2010 in various Establishments / Mines of MOIL.

- There has been a good saving due to the implementation of suggestions by Vigilance department in the Railing and Transport Contract

- 19 works/ contracts were scrutinized and 33 inspections were carried out during the period. One Disciplinary inquiry was initiated.

Advisories have been issued, from time to time, to streamline the procedures and bringing transparency in works at different level of operations. During the year in all 27 complaints have been received, after carrying out the detail investigations, the enquiry reports in respects of 12 cases have been submitted along with the findings & conclusions thereon, to the respective authorities.

IMPLEMENTATION OF RTI

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

MOIL has appointed CPIOs at the Corporate Office and PIOs/APIOs have also been appointed in all its Mines. Director (P&P) has been appointed/designated as Appellate Authority under the Act. The names of all the PIOs/APIOs and the Appellate Authority has been also hoisted in Company's website www.moil.nic.in.

The information in respect of company, its employees etc. has been prepared under 17 heads as prescribed in Section 4(1)(b) of the RTI Act, and the same been hoisted in 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 hoisted/updating 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 has received total 50 no. of applications under RTI Act, from which 48 applications accepted, 2 rejected & 1 appeal accepted under RTI and all have been disposed off during the period.

TRAINING PROGRAMMES

During the year 2010-11, total 376 training programmes were conducted. It includes 280 Vocational Training Programmes which were conducted for workers at Vocational training centre at the Mines. Almost 970 Executives, 1704 Non Executives and 3860 Workers were imparted training during the year. Thus, in the year under review total 1,17,861 Mandays training were completed on the various topics and total 8934 participants were imparted training. As per MOU rating excellent performance is 1.25, in comparison of this the performance recorded was 2.85 during year 2010-11.

LABOUR WELFARE SCHEMES, RECREATION & MEDICAL FACILITIES

Your Company has implemented various Welfare Scheme for the benefit of the employees as well as people residing in the vicinity of Mines situated in the remote areas, salient features of such schemes are as under :- - Taking into consideration the improved living standard and aspiration of the employees majority have been provided with living accommodation including drinking water, electricity at the Mines.

- Built Hospitals at the mines and provided ambulance van for attending emergencies.

- Assisted in running Primary Schools at some of the Mines where free education is imparted.

- Recreational activities are also promoted at mines by organising cultural event, sports competition etc.

- Making the mine surroundings smoke-free and non- polluted, and to encourage environmental safeguards necessary actions have been taken at Mines

WELFARE MEASURES TAKEN FOR SC/ST AND TRIBAL AREAS

MOIL is a labour intensive organization with 6667 employees on its rolls as on 31.03.2011. About 73% of the total strength belongs to SC/ST/OBC out of which 43.94% belongs to SC/ST. The Company is also taking keen interest in development of the down trodden people especially living in the vicinity of the mines situated in remote areas as detailed below:

- Adopted villages near the mines and continually providing drinking water facilities, road maintenance, periodical medical check ups and treatment to the people living in these villages.

- Providing financial aid, stationery, books etc. to the school adjacent to the mining areas.

- Providing sewing machines to women for their development and self-employment.

- Organising training classes for self employment scheme.

- Provided tri-cycles to the physically challenged persons to be independent.

- Other welfare measures for the development and upliftment of tribal women such as conducting sewing classes, adult literacy classes, AIDS Awareness programmes, propagating such other programmes by display of posters, notices and banners, leprosy awareness programme etc.

- Providing training to the physically challenged persons under Apprenticeship Act.

EMPOWERMENT OF WOMEN

MOIL has 807 women employees which constitute 12.10% of its total workforce of 6667 as on 31.03.2011.

In compliance of 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 Complain 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 educating blood donation camps, eye camps, family planning etc. are being organized regularly mostly for the benefit of the women residing in the remote mine areas.

Every year 8th March is celebrated as International Women Day and various programmes are organized to mark the day. Company grants Maternity Leave and Special Casual Leave for Family Planning. Company has set-up crÃÂ¨ches at its mines and gives time off for nursing mothers.

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 is a big success.

PERSONNEL

The manpower as on 31.03.2011 of our Company is given below:

Category Executives Non- P. R. Total Executives Workers

Male 318 2408 3134 5860

Female 13 143 651 807

Total 331 2551 3785 6667

The category-wise details of employees strength as on 31.03.2011 are as under :

Group Sched- Sched- O.b.c. Others Total uled uled caste tribe

A 33 10 41 138 222

B 33 6 58 118 215

C 357 243 416 595 1611

D 833 1355 1418 953 4559

Sweeper 60 Ã Ã Ã 60

Total 1316 1614 1933 1804 6667

Total % 19.01% 24.43% 29.26% 27.30% 100

CITIZEN'S CHARTER AND GRIEVANCE REDRESSAL MECHANISM

1. Employees grievances Ã 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.

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

3. Public Grievance Ã All Grievance officials have been apprised of the manner in which the Public Grievance received at this end are to be disposed. The system adopted for dealing the grievance of public was constituted on the basis of instructions received from various authorities in the past.

4. Periodicity monitoring of Grievances by Directors designated for PG and whether other divisions of Department also have PGRM independent of PGRM of Ministry /Department.

5. Monitored at Head Office on the basis of assessment of data received from unit, Grievance Officer through the monthly report as well as through inspection by Head Office authorities.

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) is the alignment of business operations with social values, integrating the interests of stakeholders. During the year 2010-11, the total expenditure on CSR has been Rs. 5.75 Crores.

Setting Up DAV School

The Company together with DAV College Trust is setting up a full fledged school under the control of DAV Trust. The school will cater to several villages such as Dongri Buzurg, Sitasaongi, Chikla, Tirodi & other near-by villages in the adjoining Balaghat district of Madhya Pradesh. Apart from the children hailing from these villages, the wards of MOIL employees will also be benefited.

Some of the other welfare programmes under CSR are as following:

- Engaging the services of Prakruti-Resource Centre for Women and Development, Balaghat for "Awareness on De-addiction and Bringing Sustainable Economic Livelihood"

- Sponsor the project of "Attaining Sustainable Development and Empowerment through Bamboo Technology and Enterprise Development Programme" by Vedha India, Nagpur.

- Provided of uniform clothes to the school children

- Contributing for the setting up the biological Park in Nagpur.

- Donated ambulances for the use of poor and needy at the Home for Aged & Handicapped and Missionaries to charities Mother Teresa Home in Nagpur.

- Extend help for free cataract surgeries and eye examination of children including providing spectacles wherever necessary.

- financial assistance for purchase of medicines to Yogiraj Swami Sitaramji Maharaj Hospital and Research Centre, Ramtek, Dist. Nagpur.

- Provided financial assistance for purchase of X-ray machine for Freidiscoes at an NGO working for the welfare of the animals in New Delhi

- Provided financial assistance for purchase of generator for Jeevoday Hospital in the rural part of Nagpur for power backup.

- Construction of roads, cremation sheds, renovation of schools, construction of addition class rooms, drains, and water supply facilities etc. in the villages adopted by the company and also at other villages surrounding the mines of the company

PROGRESSIVE USE OF HINDI

During the year, your Company continued its efforts in propagating and implementing the provisions of Official Language Act, 1963. The Company is publishing in-house Hindi journal "SANKALP" in order to create interest about Hindi among the employees and to encourage them to participate in various competitions like essay competition, noting, drafting, poetry and writing articles for propagating Hindi.

Around 97% of the work is being done in Hindi at Mines. The Unicode System has been implanted in computers of the Company. The Company has provided Hindi Language software in various computers and imparting training to its employees, so that they can use the Hindi more and more in their workings.

Under the "Hindi Education Scheme" of the Ministry of Home, employees are being re-trained. Under this scheme 120 employees have already been given training for Pragya (Higher Level) and such training program for another 40 staff /officers of the company is also going on."Nagar Rajbhasha Karvanvyan Sammittee" Nagpur has also given consolation prize to MOIL for excellent works done in Hindi and MOIL's in-house Hindi journal "SANKALP" has also been awarded. Rajbhasha Sansthan, New Delhi has also awarded company's in-house Hindi journal "SANKALP"

AWARDS AND ACCOLADES

Your Company 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 fields of activities. It is one of the few PSEs in the country which has been signing Memorandum of Understanding with the Government and getting Excellent rating continuously for the last several years. The followings are the some of recognition the company has received:

- Highest Tax Payer Award: Moil has been awarded Rs. 1 Lakhs for the Highest Tax Payer Award 2008-09 presented by the Hon'ble Finance Minister, Government of Madhya Pradesh.

- National Energy Conservation Award 2010, the Kandri Mine has been awarded Merit Certificate.

- Annual Metalliferous Mines Safety Week 2011, company bagged 28 Prizes in both underground and open cast category.

- Mine Environment and Mineral Conservation Week 2010 is celebrated under the aegis of Indian Bureau of Mines and the Company has bagged the following prizes:

i. Underground Mines- 1st Balaghat Mines, 2nd Chikla Mines, 3rd Ukwa Mines and 24 prizes in different areas of underground mines.

ii. Opencast Mines- 3rd Prize bagged by Dongri Buzurg Mine and 6 prizes in other different catagories.

- International Quality Circle Gold Award 2010- team PANCHARATNA Quality Circle from Dongri Buzurg Mine and PARAKH Quality Circle team from Tirodi Mine bagged "Gold Award".

- National Convention On Quality Concepts 2010- teams PANCHARATNA Quality Circle from Dongri Buzurg Mine and SANKALP Kaizen Circle Team from Tirodi Mine bagged "Par Excellence Award"; AMAN Quality Circle Team from EMD Plant Dongri Buzurg Mine bagged "Excellence Award". SANKALP Kaizen Circle Team members also won awards for the Best Quality Circle Poem and also award for best Quality Circle Slogan.

- ISO 9001:2008 certification has been awarded to Ferro Manganese Plant and EMD Plant, Balaghat Mine for the High Grade Ferro Manganese Metal and EMD respectively.

- MOU Excellence Rating for the year 2009-10

During the year some of the Company's officials have been awarded by the organizations for their outstanding performance in the field of Industrial Relations and Personnel Management.

- Human Resources Leadership Award

- Human Resources Leadership Award

- 5th Employer Branding Award

- Bharat Jyoti Award ( IIFS)

DIRECTORS

During the year, three of the Independent Directors, Dr. M. Maharajan, Shri A.Balraj and Shri D.D Kaushik have retired from the Board w.e.f 25.06.2010 after completion of their tenure. Shri D.D Kaushik was further reappointed w.e.f 9.02.2011 by the Government. Shri S.K Mishra Nominee of Govt. of Madhya Pradesh was reappointed w.e.f 3.02.2011 after retiring on 09.11.2010.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies (Amendment) Act 2000, it is hereby stated as under:

i. In the preparations of the Annual Accounts, applicable accounting standards have been followed along with proper explanation relating to Materials Department.

ii. The Directors have selected such accounting policies and applied them consistently and judgments, estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or the loss of the Company for that period.

iii. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the asset of the Company and for preventing and detecting fraud and other irregularities.

iv. The Directors have prepared the annual accounts on a growing concern basis.

DEPOSITS

The Company has not accepted any Fixed Deposits during the year under review.

AUDITORS

M/s Shah Baheti Chandak & Co, Chartered Accountants, Nagpur have been appointed by the Comptroller & Auditor General of India as auditors of your Company for the year under report. The Statutory Auditors' Report is enclosed.

CHANGE IN ACCOUNTING POLICY

During the year, as suggested by the auditors, MOIL has changed it Accounting Policy on Valuation of Ferro manganese slag, which was treated as scrap previously. The stock of Ferro manganese slag, which was not valued hitherto, is valued at net realizable price. The change has an impact on the cost of production of finished product, i.e. Ferro manganese. Consequent to this change in Accounting policy, inventory of Ferro manganese is reduced, inventory of Ferro manganese slag is increased and current year profits before tax is reduced by Rs. 1030.33 Lakhs and profit after tax is reduced by Rs. 688.08 Lakhs. The income from sale of slag, which was hitherto included in other income, is now included in sales. As a result of which the sale for the year have increased by Rs. 1622.44 Lakhs and other income has reduced by an identical amount.

OTHER DISCLOSURES

Particulars with respect to R&D and Technology Absorption etc.: The particulars with respect to R&D and technology absorption, as required under the provisions of Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, forming part of this report, is is enclosed at Annexure Ã I to this report.

Foreign Exchange earnings and Outgo: The Company has not made any export of manganese ore during the Financial Year 2010-11. During the year under review, the Company has incurred expenditure in foreign currency of Rs. 59.83 Lakhs as against Rs. 7.00 Lakhs in the previous year. The expenditure has been incurred in respect of foreign travelling only and there is no other expenditure in foreign currency during the year.

Particulars of Employees: The information in respect of employees covered within the purview of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975, as amended from time to time, is: NIL

Subsidiary Company: MOIL has no Subsidiary Company.

CORPORATE GOVERNANCE

The Company strives to attain high standards of Corporate Governance. Hence, a separate section on Corporate Governance is annexed and forms part of the Director's Report, is enclosed at Annexure - II.

MANAGEMENT DISCUSSION AND ANALYSIS

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

INDUSTRIAL RELATIONS

Industrial relations in your Company continued to be cordial and peaceful during the year 2010-11. 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 gratefully acknowledge the valuable guidance and support extended by the Govt. of India, Ministry of Steel, State Governments of Maharashtra and Madhya Pradesh, Company's Bankers, valued customers and suppliers.

The employees of the Company have continued to display their total 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.

Your Directors are thankful to the shareholders for their faith and continued support in the endeavours of the Company.

On behalf of the Board of Directors

Sd/-

K. J. Singh

Chairman-cum-Managing Director Place: New Delhi

Date: 20th May, 2011

Mar 31, 2010

The Directors have pleasure in presenting the 48th Annual Report of the company together with audited accounts for the year ended 31st March, 2010

FINANCIAL RESULTS

The financial results of 2009-10 and of the previous year are highlighted below:

Rs. in Crore

2009-10 2008-09

Sales Turnover 965.47 1284.84

Other Income 136.26 123.15

Total Income 1101.73 1407.99

Profit before interest, depreciation and tax (EBIDTA) 732.09 1031.42

Depreciation 25.30 24.67

Profit before tax for the year (PBT) 706.79 1006.76

Less: Provision for Taxation 240.44 342 96

Profit after tax for theyear (PAT ) 466.35 663.80

Transfer to General Reserve 357.00 508.00

KEY Financial Ratios

2009-10 2008-09

EBIDTA to Sales Turnover (%) 75.83 80.28

PAT on networth (%) 27.80 50.25

EBIDTA to average capital employed (%) 48.94 96 18

Earning Per share (Face Value Rs. 10/- each) 27.76 39.51

Book Value per share 99.84 78.62

Note:

During the year 2009-10. the company has issued bonus shares in the ratio of 1 5 and also the face value of the shares has been changed from Rs. 100/- to Rs 10/- each. Accordingly the EPS and Book Value of the shares have been re-worked, for the previous year also

SHARE CAPITAL

During the year under report, your company has issued bonus shares in the ratio of 1:5 and also the face value of the shares has been changed from Rs. 100/- to Rs. 10/- each. Consequent upon these, the number of shares and paid-up equity share capital has been increased from 28 lacs to 16 80 Crores and from Rs. 28.00 Crores to Rs. 168.00 Crores respectively. The Authorised Share capital of the Company has ateo been changed during the year from Rs-. 100 Crores to Rs. 250 Crores divided into 25 Crores equity shares of Rs. 10/- each.

DIVIDEND

Your Company has been consistently complying with the guidelines of Department of Public Enterprises with regard to payment of dividend. During the year, an interim dividend of Rs. 36.96 Crores (Previous year Rs. 56.00 Crores) has been paid. The Board of Directors of your company has further recommended, subject to shareholders approval, payment of final dividend of Rs 57.12 Crores (Previous year Rs. 77.00 Crores). The total dividend for the year 2009-10 works out to 56% on enhanced capital base. If the same is converted to pre bonus, same will work out to 336% (Previous Year 475%)

FINANCIAL PERFORMANCE

Indian steel sector witnessed a roller coaster ride, in the year 2009-10, despite that your company has recorded turnover of Rs.965.47 Crores during the financial year 2009-10 as compared to Rs. 1284.84 Crores of previous year. Due to fall in price of manganese ore, there has been pressure in margin of the profit also. During the year under review, the company has implemented new pay scales of its executives and also given effect the wage revision of staffs and workers, which also has impact on the profit margin of the Company in current year as well as in coming years Inspite of that, the Company has earned a Profit after Tax (PAT) of Rs. 466.35 Crores as compared to Rs. 663.80 Crores in the previous year. Your Company continued its prudent cash planning during the year also, and deployed the surplus funds in fixed deposits as per the Government guidelines and earned an interest income of Rs. 121.68 Crores as compared to Rs. 103.87 Crores during the previous year.

SALES

Your Directors feel proud to register sale of a quantity of 11.75 lakh tonnes of manganese ore during the current year as against the target of 9.60 lakh tonnes resulting in an achievement of about 122%. The overall economy of the world was under pressure particularly till the first half of the year 2009-10. The market, however, has started showing some strength from later part of the year and the demand for steel, which fell drastically in the previous year, has started picking up resulting in increase in demand of the manganese ore as well. The prices of manganese, at the beginning of the current year 2009-10 were almost down by 60% vis-a-vis the price prevailing during the corresponding period last year. The prices, however, has stared improving. Considering all such ups and downs, the performance of the company during the year 2009-10, has been quite remarkable. The Company, mainly due to its prudent marketing policy, has been able to achieve excellent sales turn over, even during the recessionary period. The sale of Electrolytic Manganese Dioxide (EMD) was 857 tonnes as against the target of 1000 tonnes achieving about 86% of the target. The sale of Ferro Manganese at 7479 tonnes has registered achievement of about 75% of the targeted production of 10000. However, in the first month of year 2010-11 itself, the company has booked order for 3450 tonnes of Ferro Manganese at better price than the previous year In terms of value, the sales turnover during the year 2009-10 was Rs.965.47 Crores (including EMD, Ferrd Manganese and W.T.G. Units turnover of Rs.5.80 Crores, Rs.40.27 Crores and 9.31 Crores respectively) as against the target of Rs.632.59 Crores (including EMD, Ferro Manganese and W.T.G, Units over target of Rs.5.63 Crores, Rs.48.83 Crores and Rs. 11.73 Crores respectively).

PRODUCTION AND PRODUCTIVITY

Your Company took the recession as an opportunity to streamline and re-orient its production activities in line with market condition and future requirement. It has successfully crossed the targeted production of 10.75 lakh tonnes of various grades of manganese ore and registered production of 10.93 lakh tonnes (Previous Year 11.75 lakh tonnes) in the current year, in spite of slow down in economy continuing particularly during the first half of the year. The production of Electrolytic Manganese Dioxide (EMD) was 1150 tonnes (previous year 1240 tonnes) asagainst the target of 1300 tonnes resulting in an achievement of about 88%. The shortfall in production of EMD was mainly due to shut down of the EMD Plant for two months during the year for annual maintenance. The production of Ferro Manganese was 9555 tonnes (previous year 10120 tonnes) as against a target of 8760 tonnes reflecting an achievement of about 109%. The Company has achieved productivity (Output Per Manshift) of 0.728 tonnes (previous year 0.766 tonnes) as against target of 0.500 tonnes.

The Company has a closing stock of 0.67 lakh tonnes of manganese ore valued at Rs.20.36 Crores as on 31.3.2010 as compared to 1.77 lakh tonnes of manganese valued at Rs.39.95 Crores as on 31.3.2009. the closing stock of EMD was 726.72 tonnes (including work in process of 30.72 tonnes) valued at Rs 4.52 Crores as on 31.3.2010 as compared to 414.60 tonnes (including work in process of 11.60 tonnes) valued at Rs.2.21 Crores as on 31.3.2009. The closing stock of ferro manganese was 4444 tonnes valued at Rs. 16.32 Crores as on 31.3 2010 as against 2368 tonnes valued at Rs.9.50 Crores as on 31.3.2009. The stock of EMD and Ferro Manganese has mounted mainly because of prevailing market condition resulting in lower off-take. The Directors would like to mention that in the month of April of 2010-11, the company has booked order for 3450 tonnes of Ferro Manganese.

CAPITAL / VALUE ADDITION PROJECTS

1. Mining Projects:

(i) Sinking of Vertical Shaft at Gumgaon Mine:

The ore body of Gumgaon is containing high grade manganese ore with vast reserves. In order to exploit this ore safely and systematically, a vertical shaft is being sunk at this mine at an estimated cost of Rs. 16.71 Crores including ore handling system. The project will improve the production level as well as productivity : and safety. A sinking of 157 mtrs. has been achieved against the total sinking of 190 mtrs. The work of sinking and allied works such as installation of head gear, lining, equipping, etc. are progressing satisfactorily. The project is expected to be completed by April-2011.

(ii) Deepening of vertical shaft at Balaghat mine.

fn order to sustain the existing level of production and also to augment the same in the coming year to meet the increased demand, the company has taken up the work of deepening of vertical shaft at Balaghat Mine beyond 10th level upto 15lh level. The total work comprises of 157 mtrs. of sinking , lining and equipping etc. The total cost of the project is Rs.6.51 Crores arid the expected date of completion is October 2010. So far 129 mtrs. of sinking has been completed and the work is progressing as per schedule.

(iii) Deepening of vertical shaft at Beldongri mine.

Consequent to exhaustion of reserves at the existing levels, the company has taken up deepening of vertical shaft at Beldongri mine to deeper horizons in order to sustain the production as well as increase the same in the coming years The work was comprised of deepening of the shaft by 45 mtrs. The deepening of shaft and equipping have been completed in scheduled time during the year. The Shaft has also been commissioned. The total cost of the project is Rs.2.97 Crores.

(iv) Deepening of vertical shaft at Munsar mine.

In order to improve the existing level of production and also to augment the same in the coming years to meet the increased demand, the company is contemplating to take up sinking of new vertical shafts at Munsar and Ukwa mines. In respect of Munsar, tendering process has been completed and issue of work order is in pipeline. For Ukwa shaft tender has been floated and Part-I has been opened.

2. Strategic Investments

A MOIL & SAIL: Your Company has entered into Joint Venture (50:50) with SAIL for setting up Ferro Alloys Plant of 1.06 lacs TPA capacity, comprising of 31,000 tonnes of Ferro Manganese and 75,000 tonnes of Silico Manganese, at Nandini, Near Bhilai in Chhattisgarh All preliminary steps for implementing the project have been taken and tenders were released for procuring major equipments. This project is scheduled to be completed within time schedule of 24 months.

B MOIL & RINL: Similarly, Your Company has also entered into Joint Venture (50:50) with Rashtriya Ispat Nigam Limited (RINL) for setting up Ferro Alloys Plant of 57,500 TPA capacity, comprising of 20,000 tonnes of Ferro Manganese and 37.500 tonnes of Silico Manganese at Bobbin Vizag District of Andhra Pradesh. All preliminary steps for implementing the project have been taken and tenders were released for procuring major equipments. This project is scheduled to be completed within time schedule of 24 months.

RESEARCH & DEVELOPMENT

Your company has taken following initiatives under R&D:

- Adopted modified roof support system for improvements in safety standards in underground mines,

- Adopted higher level interval (from existing 30 mtrs. to 45 mtrs.) for faster rate of mining

- Modern techniques of exploration - geo physical exploration by gravity magnetic method have been used

- Analytical works through introduction of XRF spectrophotometer for accurate and speedy analysis of ore were done Two such machines are now located at Dongri Buzurg and Balaghat mines. Due to accurate and faster analysis, the company was able to maintain quality assurance which in turn has improved the level of customer satisfaction.

- Exploration for new deposits by exploratory drilling was done. Moreover, to further extend the exploration from underground, new machines have been procured to explore the new deposits at deeper horizons.

- High resolution scanner & printer have been provided in survey section to maintain accuracy in survey

CONSERVATION OF ENERGY

Your Company has made a policy to allocate fund in capital for R&D and energy conservation to improve the overall energy efficiency as well as induct new technology to stop wastage of energy, wherever possible

MOIL has been adopting various measures for energy conservation which includes conventional measures by improving the efficiency of existing equipment as well as introducing new Technology in line with the national policy of energy conservation.

The size of pumps as well as pumping levels is designed to optimise power consumed by water pumps in underground mines. On the technological front pumps and compressor used for pro-long hours are toeing provided with variable frequency drive and communication is being improved, so that the equipment can be stopped immediately after its use is over.

In order to promote non-conventional energy resources, MOIL has commissioned 20 MW Wind Farm at Ratedi Hills, Dist. Dewas in M.P.

The Company has secured National Energy Conservation Award 1st Prize for the Mining Sector continuously for three years for Balaghat Mine and Chikla Mine for the year 2006, 2007 respectively and second prize for Kandri Mine during the year 2008. The Company has been also awarded special prize by MEDA (Maharashtra Energy Development Corporation) for the year 2007: the Company has received National Energy Conservation Award - 2nd Prize in Mining Sector for Kandri Mine for the year 2009.

Electricity consumption during 2009-10 as compared to 2008-09 was as under:-

Consumption per tonne 2009-10 2008-09 (in kWh)

Manganese Ore 17.64 15.90

EMD 2387 2300

Ferro Manganese 2988 3016

SAFETY AND OCCUPATIONAL HEALTH

Your Company lays special emphasis to ensure safety in the mines and also taking continuous efforts to reduce the accidents by constantly improving the standards of safety equipments through introduction of latest mining techniques and mechanization of mining operations. The 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 inter-action with employees at all levels to prevent accidents to the maximum extent possible.

Your company is committed for creating, improving and assessing the occupational health and safety awareness with view to crate safe and comfortable environment together with maintenance of high safety standards MOIL has been awarded OHSAS 18001:2007 Certificate, for implementation of Occupational Health & Safety Management System for its underground mine at Balaghat and opencast mine at Dongri Buzurg.

Your Company has participated in Zonal Safety Week Competitions and bagged more than 60 prizes. The Company has been selected for National Safety Awards and won the following prizes

- Winners Trophy for Longest Accident Free Period by Dongri Buzurg Mine - Runners-up Trophy for Lowest Injury Frequency Rate Beldongri Mine

The Company has been getting National Safety Award continuously for the last many years for its excellent safety record.

MINES RESCUE

Your company has set up one Rescue Station at Balaghat Mine with a team of 32 young and dynamic rescue trained persons posted at different mine. Like every year, this year also company has participated in All India Mines Rescue Competition (Coal & Metal) 2009 and won the following prizes:

- Overall Winner (Metal)

- Winner Recovery Drill (Metal)

ENVIRONMENTAL PROTECTION

The Company is conscious of its responsibility towards environmental protection in and around its leasehold areas About 50000 samplings were planted during 2009-10 at different mines of the Company. The cumulative plantation till date is about 16.61 lakhs saplings. 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

VIGILANCE

As per the order of Central Government, a full time Chief Vigilance Officer (from Indian Police Service) has been appointed as Chief Vigilance officer of the company. Uptill now, there has been no full fledged Vigilance department in the Company and one of its senior officers was holding additional charge of CVO. The activity of establishing full-fledged multidisciplinary department as per the DPE guidelines is in progress. Once the full-fledged, department starts working, all the mandatory duties of the vigilance department viz. preventive and punitive as well as investigative would be taken up more effectively..

The functioning of the Vigilance Department includes both Preventive as well as punitive, for all the establishments / mines / plants/ ventures of the company including corporate office at Nagpur Various activities of the Vigilance Department.during the year under review are as under

- obtained a certificate of compliance from International Certification Services Pvt. Ltd., Mumbai which certifies that Quality Management System of various functions of Vigilance Department conform to ISO 9001 2008 standards This certificate is valid for a period of three years

- issued various Circulars from time to time to streamline the procedures and bring transparency in works at different level of operations

The tender enquiries in respect of all the open tenders have been uploaded to companys website to bring maximum transparency. The finalized tenders, above the threshold limit of Rs 30 lacs, are also uploaded on the website in the prescribed format provided by the Ministry. The threshold value of Integrity Pact has been changed from Rs. 15 Crores to Rs. 10 Crores, in order to cover more contracts / works under the purview of the pact.

Extensive use of website as a tool for communication with the stakeholders and also for curbing corruption and bringing transparency in maximum possible areas of working, has been implemented by MOIL.

Accordingly, following initiatives have been taken by the Company:

E-sales has been implemented for Ferro Manganese, Fe. Mn slag. The oxide and dioxide grade of ore from Dongri Buzurg mine have also been included in e-auction. During the year 2009-10, total 13 events of e-sale have been conducted.

E-procurement: MOIL has fixed threshold limit of Rs. 1 Crores and above for the purpose of e- procurement. Accordingly, MOIL has identified and earmarked HSD, Lubricants, Explosives (Reverse auction), Coke & Coal for e-procurement which constitutes almost 76% of total annual purchases.

E-Payments: Companys units / mines are located at remote places and nearby banks are not equipped with e-banking facility, hence all the payments are not made through e-payments, however inter unit transfer of funds are made through RTGS. The payments to the suppliers having Bank A/c with the RTGS membership are made through RTGS. The Company, wherever possible, making payments of contractors bill through e-payment from Nagpur.

During the year under report, no instance involving disciplinary action has been identified

IMPLEMENTATION OF RTI

With the advent of the Right to Information Act 2005 in our Country, your Company has taken the major initiatives for implementation of RTI Act, 2005 in the letter and spirit.

MOIL has appointed CPIOs at the Corporate Office and PIOs/APIOs have also been appointed in all its Mining Units. Director (P&P) has been appointed/designated as Appellate Authority under the Act. The names of all the PIOs/APIOs and the Appellate Authority has been also hoisted in Companys website www.moil.nic.in.

The information in respect of company, its employees etc. has been prepared under 17 heads as prescribed in Section 4(1)(b) of the RTI Act, and the same been hoisted in Companys 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 Companys 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 hoisted/updating in Companys 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 has received 45 applications under RTI and all have been disposed off during the period.

TRAINING PROGRAMMES

During the year 2009-10, total 378 training programmes were conducted as against 370 programmes in the year 2008-09. It includes 285 Vocational training programmes which were conducted for workers at Vocational training centre at the Mines. Almost all Executives. 1500 Non-Executives and 4110 Workers along with 2197 Vocational/Trade Trainees PDPT were imparted training during the year. Thus, in the year under review total 1,11,536 Mandays of training were completed on the various topics through, in Company training programme, outside programmes, Munsar Technical programmes, V.T.C. Training programme and , apprentice training programme.

LABOUR WELFARE SCHEMES, RECREATION & MEDICAL FACILITIES

Your Company has implemented various Welfare Schemes for its employees such as:

- Majority of the employees have been provided with free living accommodation at the mines. Taking into consideration the improved living standards and aspiration of employees, your Company had constructed new and modern living quarters at various mines and the same were allotted to the employees.

- The Company is also providing adequate drinking water to the employees residing in the colonies at the mines by conventional wells, bore wells, pipelines supply etc , and periodical chlorination of wells and tanks are being made

- The colonies and the streets are well illuminated and the employees have been provided electricity at their residences on concessional rates.

- The Company has set up hospitals at the mines maintained by qualified doctors supported by duly trained para-medical staff The arrangement of OPD as well as indoor ward separately for male and female are provided Ambulances are provided to all the hospitals for attending to emergencies. The patients are also being referred for medical treatments to specialized hospitals as per the requirement.

- The Company has assisted in running primary schools at some of the mines where free education is imparted to the employees children. School buses are also provided at all the mines enabling the children of employees to attend to nearby high schools and colleges.

- The Company has a scheme for reimbursement of tuition fees. The Company has also introduced scholarship scheme for meritorious wards of employees. Reimbursement of tuition fees to the children of the workers are provided for taking education in engineering etc.

- The Company has provided infrastructure at all the mines for sports and recreational activities by providing musical instruments, TV & other material for organizing cultural and sports events. Providing financial assistance to organize sports activities in the mines area to encourage youth to participate in the activities.

WELFARE MEASURES TAKEN FOR SC/ST

MOIL is a labour intensive organization with 6734 employees on its rolls as on 31.03.2010 About 72.73% of the total strength belongs to SC/ST/OBC out of which 44% belongs to SC/ST. The Company is also taking keen interest in development of the down trodden people living in the vicinity of the mines situated in remote areas as detailed below :

- Adopted 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 financial aid, stationery, books etc. to the school adjacent to the mining areas.

- Providing sewing machines to women for their development and self-employment

- Organising training classes for self employment scheme.

- Provided tri-cycles to the physically challenged persons to be independent

- Other welfare measures for the development and upliftment of tribal women such as conducting sewing classes, adult literacy classes AIDS Awareness programmes, propagating such other programmes by display of posters, notices and banners, leprosy awareness programme etc.

- Providing training to the physically challenged persons under Apprenticeship Act.

PAY REVISION

In accordance with the Department of Public Enterprises (DPE) Office Memorandum No. (70)/08- DPE (WC) dt. 26/11/2008 and 02/04/2009, your company, during the year under review, has implemented new pay revision of its executives due from 01/01/2007, The Company has also implemented New Wage Settlement, as per Memorandum of Understanding (MOU) signed between Management and recognized Union namely MOIL Kamgar Sanghathan.

PERSONNEL

The manpower as on 31.3.2010 of your Company is given below:

Category Executives Non-Executives PR Workers Total

Male 303 2312 3313 5928

Female 13 158 635 806

Total 316 2470 3948 6734

The category-wise details of employees strength as on 31.3.2010 are as under:

Group Scheduled Scheduled O.B.C. Others Total Caste Tribe

A 35 8 43 149 235

B 25 4 42 99 170

C 350 233 394 608 1585

D 857 1394 1457 980 4688

Sweeper 56 - - - 56

Total 1323 1639 1936 1836 6734

% to total 18.97 24.54 28.99 27.49 100

The Company also ensures compliance with requirement of Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995, to the extent possible and applicable.

GRIEVANCE REDRESSAL MECHANISM

- 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.

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

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

- Public Grievance Redressal Mechanism (PGRM) is periodically monitored by the Company.

- Similarly, PGRM of units / mines are monitored at Head Office on the basis of assessment of data received from respective Grievance Officer through the monthly report as well as through inspection by Head Office authorities.

CORPORATE SOCIAL RESPONSIBILITY

As a good corporate citizen, the Company continued its efforts and carried several welfare programmes under CSR. The Company has undertaken following major activities under CSR:

- A sum of Rs 40 lakhs has been released towards setting of Biological Park at Nagpur.

- Donated 2 Nos ambulances - 1 No. to Indian Medical Association, Chandrapur and 1 No. to Government Health Unit, Saoner, Nagpur district. Both the ambulances are for the use of rural areas where there is no ambulance facilities earlier.

- Sponsored 500 Nos.free cataract surgeries and free eye examination of 1000 children including providing of spectacles wherever necessary.

- Contributed Rs.10 lakhs to National Foundation for Communal Harmony (an autonomous body under Ministry of Home Affairs, Govt, of India).

- Constructed a state of art audiometric room for deaf and dumb children in the Deaf and Dumb Residential School, Saoner, Nagpur District.

- Provided financial assistance for construction of class rooms in Saraswati Vidyalaya. Nagpur.

- Provided financial assistance for construction of rooms for outlet of organic and natural resources products for SHGs through Nisarg Vindyan Mandal

- Provided financial assistance for construction of toilets and educational aids such as computers, printers, etc., to the inmates of Deaf and Dumb Institute, Nagpur.

- In addition, the Company has carried out a number of schemes under CSR such as construction of roads, cremation sheds, renovation of schools, construction of additional class rooms, drains, water supply facilities, etc , in the villages adopted by the Company and also at other villages surrounding the mines of the Company.

PROGRESSIVE USE OF HINDI

During the year, your Company continued its efforts in propagating and implementing the provisions of Official Language Act, 1963 The Company is publishing in-house Hindi journal "SANKALP" in order to create interest about Hindi among the employees and to encourage them to participate in various competitions like essay competition, noting, drafting, poetry and writing articles for propagating Hindi.

Around 97% of the work is being done in Hindi at Mines. The Unicode System has been implanted in computers of the Company The Company has provided Hindi Language software in various computers and imparting training to its employees, so that they can use the Hindi more and more in their workings.

From last two years, MOIL has been awarded with "Ispat Rajbhasha Trophy" for excellent works done in Hindi. Under the "Hindi Education Scheme" of the Ministry of Home, employees are being re-trained. Under this scheme 85 employees have already been given training for Pragya (Higher Level) and such training program for another 40 staff /officers of the company is also going on.

"Nagar Rajbhasha Karvanvyan Sammittee" Nagpur has also given consolation prize to MOIL for excellent works done in Hindi and MOILs in-house Hindi journal "SANKALP" has also been awarded. Rajbhasha Sansthan, New Delhi has also awarded companys in-house Hindi journal "SANKALP"

AWARDS AND ACCOLADES

Your Company 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 fields of activities. It is one of the few PSEs in the country which has been signing Memorandum of Understanding with the Government and getting Excellent rating continuously for the last several years. The followings are the some of recognition the company has received:

- National Safety Awards given away by Honble Vice President of India

Mines Category

Dongri Buzurg Mine Longest Accident Free Period for the year 2007

Beldongri Mine Lowest Injury Frequency Rate for the year 2007

- MOU Excellence Award for the year 2007 given away by Honble Prime Minister of India

- National Energy Conservation Award - 2nd Prize in Mining Sector for Kandri Mine for the year 2009

- National Quality Circle Award 2009 - In NCQC-2009, team Pancharatna QC from Dongri Buzurg Mine bagged Par Excellent Award and Parakh QC from Tirodi Mine bagged Excellent Award.

DIRECTORS

During the year under review, there has been no change in the Board of the Company except retirement of Shri S.K Banerjee, Independent Director, w.e.f. 28th June, 2009, on completion of his tenure.

None of directors of the company posses any disqualification under section 274(1 )(g) of the Companies Act, 1956.

DIRECTORSRESPONSIBILITY STATEMENT

Pursuant to Section 217(2AA) of the Companies (Amendment) Act 2000, it is hereby stated as under:

i. In the preparations of the Annual Accounts, applicable accounting standards have been followed along with proper explanation relating to Materials Department.

ii. The Directors have selected such accounting policies and applied therri consistently and judgments, estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or the loss of the Company for that period.

iii. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the asset of the Company and for preventing and detecting fraud and other irregularities.

iv. The Directors have prepared the annual accounts on a growing concern basis.

DEPOSITS

The Company has not accepted any Fixed Deposits during the year under review.

AUDITORS

M/s Shah Baheti Chandak & Co, Chartered Accountants, Nagpur have been appointed by the Comptroller & Auditor General of India as auditors of your Company for the year under report.

OTHER DISCLOSURES

Particulars with respect to R&D and Technology Absorption etc.: The particulars,with respect to R&D and technology absorption, as required under the provisions of Section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, forming part of this report, is annexed as Annexure-I, to this report.

Foreign Exchange earnings and Outgo: The Company has not made any export of manganese ore during the Financial Year 2009-10. During the year under review, the Company has incurred expenditure in foreign currency of Rs. 7.00 lakhs as against Rs. 6.47 lakhs in the previous year. The expenditure has been incurred in respect of foreign travelling only and there is no other expenditure in foreign currency during the year.

Particulars of Employees: The information in respect of employees covered within the purview of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules 1975, as amended from time to time, is as under:

(A) Employees who were employed throughout the aforesaid year and were in receipt of remuneration for the said year which in the aggregate, was not less that Rs. 24,00,0007-

Name and Last Age Designation Remuneration Total Exp Qualification (Yrs) and nature of (Rs.) (Yrs) employment

" Shn M.A V Goutham 58 Director 24.57.437 58* 30 Years (Bsc, ACA, ICWA) (Finance) and Contractual Employment

Name and Last Date Last Shares Qualification joined Employ- held in the ment Company

Shn MA V Goutham (Bsc.. ACA, ICWA) 28/12/2001 Chief One** Manager (less than in Lubrizol 1%) India Ltd.

*The remuneration includes arrears of Rs 6,73802 55. for previous years *" Share held as a nominee of President of India.

(B) Employees who were employed for a part of the aforesaid year and were in receipt of remuneration for any part of the said year at a rate which in the aggregate was not less that Rs. 2,00,000/- per month - NIL.

Subsidiary Company: Your Company has no Subsidiary Company

CORPORATE GOVERNANCE

The Company strives to attain high standards of Corporate Governance Hence, a separate section on Corporate Governance is annexed and forms part of the Directors Report, as Annexure-II.

MANAGEMENT DISCUSSION AND ANALYSIS

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

INDUSTRIAL RELATIONS

Industrial Relations in your Company continued to be cordial and peaceful during the year under report. There has been no 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 mine level and Corporate level for discussing various issues for smooth functioning of the organisation and expeditious decisions for the settlement of grievances has been functioning satisfactorily.

ACKNOWLEDGEMENT

Your Directors gratefully acknowledge the valuable guidance and support extended by the Govt, of India, Ministry of Steel, State Governments of Maharashtra and Madhya Pradesh, Companys Bankers, valued customers and suppliers.

The employees of the Company have continued to display their total 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

Your Directors are thankful to the shareholders for their faith and continued support in the endeavours of the Company

On behalf of the Board of Directors

K. J. Singh

Chairman-cum-Managing Director

Place: New Delhi

Date: 21/05/2010

Mar 31, 2009

On behalf of the Board of Direcrors, I have pleassure In presenting the 47th Annuak Accounts and the Directors Report on the business and operation of the Company for this financial year ended 31th March 2009 along with the Audited Statement of Accounts.

Financial Results:

The financial results of 2008-09 and of the previous year are highlighted below:

Sales Turmover 2008-09 2007-08

Other Income 1284-84 973.36

Total Income 123.15 56.58

Profit Before tax for the year 1006.76 734.91

Less: Income Tax provision 340.96 240.89

Provision for Fringe Benefit Tax 0.27 0.24

Add/Less: Deferred tax (Assets/LIability) 1.73 13.97

Profit after tax for the year 663.80 479.82

Add: Balance carried forward from previous year 0.39 0.59

Total 664.19 480.41

Less: Proposed final dividend on Equlity Share @ 275% (215%) 77.00 60.20

Tax on dividend 9.52 6.18

General Reserve 508.00 367.00

Total 663.61 480.02

Profit Carried over 0.58 0.39

DIVIDED:

Your Directors, after taking into account the financial results of the Company during the year, have recommended a dividend of 475% (Including 200% Internal dividend) as against 345% dividend paid for the year 2007-08.

OTHER INCOME:

Due to prudent cash planning and deployment of surplus funds In fixed deposits with various nationalized banks, as per the Government guidelines, the Company eamed an Interest income of Rs. 103.87 Crone (Previous Year Rs. 43.44 Crore).

OPERATING RESULTS

PRODUCTION AND PRODUCTIVITY:

The Company has achieved targeted production of 11.75 lakh tonnes of various grades of manganese are (13.65laks lones during the previous year) in the curend year,In space of about recession in the Steel Industry. stated sometime from October, 2008 onwards. The production of Electolytic Manganese Dicode (EVD) was 1240 tonnes (previous year 1122 tonnes) as against the target of 1400 tonnes resulting in an achivement of 89% The production of Fero Managaness was 10120 tonnes (previous year 11130 tonnes) as against a target 10000 tornes reflecting an achivement of 101%. The Company has achieved a productivity (Output Per Manshitt) of 0.766 tonnes (previous year 0.877 toness) as against a target of 0.480 tonnes.

SALES:

Since the second half of the year 2008-09, the overall economy of the world was under pressure. The demand for steel fell drastically resulting in steep fall in demand of the manganese one and the same is expected to be continued atleast for the first half of year 2009-10. The prices of manganese are have also come down considerablly and the company has to reduce the prices as per market condition, In spite of this, during the year 2008-09, a quantily of 10-23 lakh tones resulting in an achievement of 89%. The targate of 11.49 laks tones resulting on an achievement of 89%. The sale of Electrolytic Mangamess Diaxde (EMD) was 1419 tonnes as against the target of 1400 tonnes resulting in an achivement of 101%. The sale of Ferro Manganese and W.T.G. Units tumover of Rs 9.28 Core. Rs 80.03 Crore and 8025 Core respectively) as against the target of Rs, 550.34 Crore (including EMD and Ferro Manganese tumover target of Rs 6.24 Crore and Rs. 47.00 crore respectively).

The sales turrover is THE HIGHEST EVER SINCE INCEPTION OF THE COMPANY. The sales turmover during the previous year 2007-08 was Rs 973.36 Cr (Crore (Including EMD and Ferro Manganese tumover of Rs. 7.46 Core and Rs. 60. 40 Crore and Rs. 60.40 Crore respectively).

1.Mining Project:

(i) Sinking of Vertical Shaft at agumgoon Mine:

The one body of Gumgaon is containing high grade manganese one with vest reserves. In order to exploit this are safely and sustematically, a Vartical Shaft is being sunk at this mine an estimated cost of Rs. 16.71 Crose Incliding are handing system. The project will improve the production level and will Improve the productivity and safely. Till date, a sinking of 118 Mrs. has been achieved against the total sinking of 160 Mrs. The work of sinking and aied works such as instalation of head gear, lincing, equipping, etc, are progressing satisfactorliy. The project is expected to be completed by April 2011.

(ii) Deepening of Vertical Shaft of Balaght Mine:

In order to sustain the existing level of production and also to augment the same in the coming years to msst the incteassed demand, the Company has taken up the work of deepening of vertical Shaft as Balaghat Mine beyond 10th upto 15th level. The total work comprises of 157 Mrs. of sinding, llning and eqeipping etc. The total value at the project is Rs. 6.15 Crore and the expected date of completion is December 2009. So far 92 Mrs. of sinding has been completed and the work is progressing as per schedule.

(ii) Deepening of Vertical Shaft at Baldong Mine:

Consequent to exhaustion of reserves at the existing levels, the Company has taken up deepening of vertical shatt at Beldondongri Mine to deeper horizons in irder to sustain the production as well as increase the same in the coming years. The work comprises of deepening of the shaft by 45 Minuts. and so far 35.00 Minuts of sinking has been done. The work is progressing satisfactory and expected to be completed by 45 December 2009. The total cost of the project is Rs.2.97 Core.

(iv)Deepening of Vertical Shaft of Munsor Mine:

In order to improve the existing level of production and also to augment the same in the coming years to meat the increadesd demad, the Comany is cotemplating to take up sinking of new vertical shafts at Munsar and Mines.

2. Joint Venture Projects

A Moil & SAIL- Joint Venture Agreement has been signed between SAIL & MDIL for setting up Ferro Alloys Plant of 2 Mos. fumace of 27 MVA capacity for producing ferro Manganese at Nandinil (Chhaltisgath). Joint Venture Company manely SAIL and MOIL Ferro Alloys Pvt. Ltd" has been incorporated on 31.07.2008. The preliminary work on the project is under progress.

B. MOIL & RINL-Similarly. MOIL has also entered into Joint Venture Agreement with Rashtriya is part Migam Ltd (RINL) on 07.05.2009 for setting up Ferro Alloys Plant comprising of one fumaces of 9 MCA for producing Silico Manganese at Bibbili in Andhra Pradesh. The preparation of TEFR is being entrusted to MECON.

RESEARCH & DEVELOPMENT:

Your company has taken following Insentives under R&D:

-For improvements in safety standards in underground mines, through adoption of modifiled root support system.

-For faster rate of mining. higher level interval (form existing 30 mts to 45 mts) has been adopted

-Modem techniques of exploration-Geo physical exploration by gravity magnetic method were used.

-Analytical Works through Introduction of XRF Spectrophotomeler for accurate and speedy analysis of one were done. Two such machines are now located at Dongri Buzueg and Balaghat mines. Due to accurate and taster analysis, the company was able to maintain quality assurance which in turn has improved the level of customer satisfaction.

- Exploration for new deposits by exploeatory drilling was done. Moreover, to further extend the exploration from underground, new machines have been procured to explore the new deposits at desper horizons.

- Vibratory Screens have been provided at mines for better beneficiation of ore & for cost reduction and higher percantage recovery of ore from ROM.

- For safety of man & machines, improvements to winders and filling system in mine stopes were completed.

CONSERVATION OF EMERGY:

In line with the national policy of energy conservation and also to contain the cost of production, the Company has embarked upon an economy drive in this field. Various steps incoulding energy audit have been taken up towards energy conservation. The Company has commissioned 15.2 MW Wind Farm at Ratedi Hills, Dist Dewas in M.P. during 2008-09 in order to promote non convenrional energy resources.

In addition, various operational parameters are being monitored and reviewed regularly with a view to improve process parameters to reduce energy consumption at EMD plant.

Considering the depth of the mina, it has been decided to store water in underground at upper level to utilize for sand stowing and drilling pirposes. Use of siphons for drilling water has been successfully implamanted at Balaghat Mine.

Variable frequency A.C. Drives are being used for operation of winder which reduces enery consumption by about 40% and power factor is improved to 0.99. Latest equipments with BEE Certificate are being used at mines as well as corporate office for energy conservation.

The Company has secured National Energy Conservation Award 1st Prize for the Mining Sector continuously for two years for Balaghat Mine and Chikla Mine for the year 2006, 2007 respectively. The Company was awarded the special prize by MEDA (Maharashtra Energy Development Corporation for the year 2007.

SAFETY:

Your Company lays special emphasis to ensure salely in the mines and also taking continuous efforts to reduce the accidents by constantly improving the standards of safety equipment through intruduction of latest mining techniques and mechanization of mining operations. The following steps have been taken to improve the safety standards at the mines:

- Training and re-training of workers to inclucate safety consciousness.

- Regular meetings of Safety Committees in which accident analysis are made meticulously with a view to bring in reduction in the mishaps.

- A close inter-action with employees at all levels is done to prevent accidents to the miximum extent possible.

Your Company has participated in Zonal Safety Week Competitions and bagged more than 60 prizes. The Company has been selected for National Safety Awards and won the following prizes:

- Winners Trophy for Longest Accident Free Period by Dongri Buzung Mine.

- Runners-up Trophy for Lowest injury Frequency Rate Beldongri MIne.

The Company has been getting national Safety Award contunuously for the last many years for its excellent sagety record.

MIMES RESCUE:

Your company has set up one Rescue Station at Balaghat MIne with a team of 32 young and dynamic rescue trained persons posted at different mine. Like every year, this year also company has participeted in All India Mines Rescue Competition (Coal & Metal) 2006 and won the following prizes:

(a) Overall Winner (Metal)

(b) Winner Recovery Drill (Metal)

(c) Winner - Theory Test (Metal)

(d) Indicidual Prizes like Best Captain & Best Team Member

ENVIRONMENTAL PROTECTION:

The Company is consclous of its responsibilty towards envirnonmental protection in and around its leasehold areas. About 59000 samplings were planted during 2008-09 at different mines of the Company. The cumulative plantation till date is about 16.11 lakhs saplings. 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.

VIGILANCE:

Your Company has its Vigilance department headed by Chief Vigilance Officer and assisted by one Sr. Manager (Vigilance). The functions of vigilance department include both preventive and puntive actions for all the nine units of the Company and for the corporate office at Nagpur. During the year under review the following activities were conducted by the Vigilance Department.

- Purchase and Works Manual have been updated, approved by Board and re-loaded in Companys Website on December- 2008 and February- 2009 respectively incorporating CVCs guidelines. The updating of Parsonnel Manual has been undertaken.

- The threshold value for integrity Pact has been reviewed and the Management has agreed to change the threshold value from Rs. 15 Crore to Rs. 10 Crore so that the imolementation of IP becomes more meaningful.

- Details of concluded Contracts / Purchase above 30 lakhs are uploaded to the Companys website regulariy on monthly basis.

- During the year total five training programs were organized to educate the employees both executives and non-executives on different vigilance issues.

MININGLEASES/PROSPECTING LICEMCES:

i) Gumgaon Mine lease area of 48.596 Ha. has been renewad for next 20 years.

ii) After getting environment clearance, and forest clearance and working permission, the mining operation is proposed to be started in Sitapatore Mine during 2009-10.

TRAINING PROGRAMMES:

During the year under review, the total numbers of 370 training programms were condcted as against 337 in the previous year. It includes 285 Vocational Training PRogrammes at the Mines. A total number of 1717 Executives, 6070 Workers and 2532 Vocational / PDPT Trainees were imparted training in different Trades & Topics. Thus, during the year 2008-09, total 112957 mandays of training were completed as compared to 74263 mandaysin the previous year. In comparison to 1.25 rating for excellent performance as per MoU, the company has chieved upto 2.87 during the year 2008-09.

LABOUR WELFARE SCHEMES, RECREATION & MEDICAL FACILITIES:

Your Company has implemented various Welfare Schemes for its employees and the salient features are as under:

- The company has constructed new modern living quarters at various mines and free living accommodations with basic facilities like drinking water, e;ecticity at their at concessional rates etc. have been provided to majority of the employees at the mines.

- Hospitals at the mines manned by qualified medicos support buy para-medical staff have been set-up by the Company. The arrangement pf OPD as well indoor ward separately for male and female are provided. Ambulances are provided to all the hospitals for attending to energencies.

- The Company is providing assistance in running primary schools at some of the mines whete free education is imparted to the employees children. School buses are also provided at all the mines enabling the children of employees to attend to nearby high schools and colleges.

- The Company has schemes for reimbursement of fuition fees, scholarship for meritorious wards of employees, reimbursement of tuition fees to the children of workers for education in engineering etc.

- The Company has provided infrastructure at all the mines for sports and recreational activities.

WELFARE MEASURES:

Welfare Measures for SC/ST

Your company is a labour intensive orgainization with 6823 employees on its rolls as on 31.3.2009. About 72% of the total strength belongs to SC/ST/OBC out of which 43% belongs to SC/ST.

MOIL has adopted vilages near the mines and provided basic facilities thereat. The financial aid, stationary, books, etc, to the shcool adjacent to the mining areas are also being provided. With view to provide development and self-employment of the women, sewing machies have been provided to them. The Company is organizing Training classes for self employment. The Company is also taking such other welfare measures for the development and upliftment of tribal women such as conducting sewing classes, audit literacy classes, AIDS Awareness programms, prodagating such other programms by display of posters, notices and banners, leprosy awareness programme etc. Training is provided to the physically challenged persons under Apprenticeship Act.

Construction of A,B,C&D type quarters:

As a part of social welfare and to imorove the quality of living standard of employees at the mines, construction of 316 Nos. of A,B,C&D type quarters in Phase II has been proposed at a cost of Rs. 17.50 Crore for the year 2009-10.

Constuction of Sports Complax at Corporate Office:

As a part of social welfare and to promore health consciousness amongst the employees and to enchance the sport activities, a Sprots Complex, with badmintion Court, Basket Ball Court. Health Club, Jogging Track, Lawn Tennis Court has been constructed at the Corporate Office at Nagpur at a total cost of Rs. 1.50 Crore.

PAY REVISION

Your company has initlated implementation of pay revision of executives of MOIL, due from 01/0/2007, in accordance with the Department of public Enterprises (DPE) Office Memorandum No. (7D)/08-DPE (WC) dt. 26,11,08. The Memorandum of Understanding (MOU) regarding New Wage Settlement has also been signed between Management & recognized Union namely MOIL Kamgar Sanghathan and the proposal has also been forwarded to the Govemment for necessary approval. The Company has made necessafy provisions for liability arising out of pay/wage revision.

Personnel:

The manpower as on 31.3.2009 of your Company is given below:

Catogary Executives Non-Executives PR Workers Total

Male 301 2345 3287 5933

Female 15 190 685 890

Total 316 2535 3972 5823

The catefory-wise details of employees strength as on 31.3.2009 are as under:

Group Scheduled Coste Scheduled O.B.C Others Total

A 29 8 35 145 218 B 29 4 43 107 183

C 351 233 393 620 1597

D 865 1432 1459 1013 4770

Sweeper 55 - - - 55

Total 1330 1677 1931 1885 6823

% to total 18.84 24.78 28.53 27.85 100.00

CORPORATESOCIAL RESPONSIBILITY:

As a good corporate citizen, MOIL has been religiously discharging its obiligation under CSR. The following manor activities have been indertaken by the Company:

- Taken up several welfare schemes, the major one being paying down 11.2 Kms. long pipe lines for drinking water supply to the village near Balaghat Mine. About 5.0 lakh mers per day of drinking water is supplied to the vilagers.

- MODEL Manganese Gram-Adoption of Villages. So far 5 villages have been adopted by the Company - 2 in Madhya. Predesh and 3 in Maharashtra. The company has carried out development works in these villages such as construction of roads, toilets, scjools, water supply achemes, community centers, etc. In addition, the Company also provides medical care, educational facilities by construction of schools etc.

- Provided fully air-conditioned mobile hospitals to various parts of the country fully equipped with cardiac-cum-trauma care facilities.

- Empowering Women through formation of Self Help Groups(SHGs)

- Provided motor boats in the Bhandara and Chandrapur disticts of Maharashtra for flood relief.

- Condributed Rs. 2.00 Crore, recently for flood relief in the State of Bihar

Besides the above, the Company has been taking care of physically challenged persons by providing hearing aids, callipers, etc. The company is also carrying out a variety of CSR program including slum development etc.

During the year under report, the CSR expenditure was to the tune of Rs. 5.42 Crore (Previous Year Rs.2.87 Crore)

The Company is committed to continue its efforts to spend 2% of its distributable profit fowards CSR for the welfare of the needy and under provileged people of the Society.

PROGRESSIVE USE OF HINDI:

During the year under report, your Company contunued its efforts in improving and implementing the provisions of Official Language Act, 1963 and rules and orders thereunder. The Company has made Unicode system in all its computers. The Company is also publishing in house journal SANKALP in Hindi. The employees of the companu are being encouraged to participate in various competitions like essay competitions, nothing, drafling, poetry and articles in Hindi and suitable rewards are also given away to them. Sround 97% of the routine work is being done in Hindi at the mines. Hindi software is provided in the computers and emplouees are given proper training for its effective use.

The Company has been awarded ispat Raj Bhasha Trophy 2007-08 (3rd position) for the good work done in Hindi last two years.

DIRECTORS:

During the year under review following chages have taken place in the Board of Directors of the Company

(Image not clear)

DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to Section 217(2AA) of the Companies (Amendment) Act 2000, it is hereby stated as under:

i. In the preparations of the Annual Accounts, applicable accounting standards have been followed along with proper explanation relating to Materials Department.

ii. The Directors have selected such accounting policies and applied them considtantly and Judgments, estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the Company for that period.

iii. The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the asset of the Company and for preventing and detecting fraud and other irrefularities.

iv. The Directors have prepared the annual accounts on a growing concern basis.

AUDIT COMMITTEE

The Audit Committee of the MOIL comprises of three members out of which two are non executive independent directors and one is executive director. The Audit Committee, Dr. D.D. Kaushik and Shri G.P. Kundargi (From 2/6/2008), members of the committee. Shri Neeraj D. Pandey, Company Secretary of the Company, is acting as the Secretary to the Committee. The Director (Finance), Head of Corporate internal Adit and a representative of Statutory Auditor, attend the meetings as invitees.

AUDITORS:

M/S Shah Baheti Chandak & Co, Chartered Accountants, Nagpur have been appointed by the Comptroller & Auditor General of India as auditors of your Company for the year under report.

OTHER DISCLOSURES:

Particulars with respect to technology absorption etx. The particulars in Form B with respect to technology absorption as required by the Companies (Amendment) Act 1988, forming part of this report is annexed to this report Annexure-I.

Foreign Exchange earnings and Outgo: The Company has not made any export of manganese ore during the Financial Year 2008-09. During the year under review, the expenditure in foreign currency for travelling was Rs. 6.47 lakhs as against Rs. 4.55 lakhs ub tge previous year. The Company has also spent Rs. 87.24 (previous year Rs. 8.03) lakh towards import of capital goods, stores/spares and raw material. Particulars of Employees: There are no employees within the purview of Section 217(2A) of the Companies Act, a956 read with Companies IParticulars of Employees) Rules 1975 as amended from time to time.

CORPORATE GOVERNANCE:

The Company strives to attain high standards of Corporate Governance. Hence, though it is non mandatory, a separate section on Corporate Governance is annexed and forms par of the Directors Report. (Annexure-II)

ACKNOWLEDGEMENT:

Your Directors gratefully acknowledge the valuable gaidance and support extended by the Govt, of India, Misistry of Steel, State Governments of Maharashtra and Madhya Pradesh, Companys Bankers and valued customers.

The employees of the Company have continued to display their total 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 seal and dedication in the years ahead to enable the Company to scale even greater heights.

Your Directors are thankful to the shareholders for their faith and continued support in the endeavours of the Company.

On behalf of the Board of Directors

Place : New Delhi K.J. Singh

Date : 27/05/2009 Chairman-cum-Managing Director

Mar 31, 2008

On behalf of the Board of Directors, I have pleasure in presenting the 46th Annual Accounts and the Directors Report on the business and operation of the Companyforthisfinancialyearended31st March2008alongwiththeAuditedStatementofAccounts.

Financial Results:

The financial results of 2007-08 and of the previous year are highlighted below:

Rs. In Lakhs

2007-08 2006-07

Sales Turnover 97335.83 41762.99

Other Income 5668.47 3419.26

Total Income 103004.30 45182.25

Profit Before tax for the year 73490.79 20114.58

Less: Income Tax provision 24088.76 6008.63

Provision for Fringe Benefit Tax 23.53 26.78

Add/Less: Deferred tax (Assets/ Liability) 1396.73 658.42

Profit after tax for the year 47981.77 13420.75

Add: Balance carried forward from previous year 59.38 147.96

Total 48041.15 13568.71

Less: Proposed final dividend on Equity Share @215%(20%) 6020.00 560.00

Tax on dividend 1023.10 95.17

Interim Dividend @130%(80%) 3640.00 2240.00

Tax on Interim Dividend6 18.62 314.16

" General Reserve 36700.00 10300.00

Total 48001.72 13509.33

Profit Carried over 39.43 59.38

DIVIDEND:

Your Directors, after taking into account the financial results of the Company during the year, have recommended a dividend of 345% (including 130% interim dividend) as against 100% dividend paid for the year 2006-2007.

OTHER INCOME:

Due to prudent cash planning and deployment of surplus funds in fixed deposits with various nationalized banks, as per the Government guidelines, the Company earned an interest income of Rs. 4343.92 lakhs (Rs. 2199.73 lakhs).

OPERATING RESULTS:

Production and Productivity:

The Company has achieved a record production of 13.65 lakh tonnes of various grades of manganese ore (10.47 lakh tones during the previous year) during the year under report as against the target of 950 lakh tones reflecting an achievement of 143.68% The production of Electrolytic Manganese Dioxide (EMD) was 1122 tonnes (previous year 1312 tonnes) as against the target of 1300 tonnes resulting in an achievement of 86%. The shortfall in production of EMD was due to shut down of the EMD plant for two months i.e. April and May 2007 for annual maintenance. The production shortfall could not be made up due to shut down. The production of ferro Manganese was 11130 tonnes In previous year 10200 tonnes) as against a target of 10000 tonnes reflecting an achievement of 111 %. The Company has achieved a productivity (Output Per Manshift) of 0.877 tonnes (previous year 0.664 tonnes) as against a target of 0.440 tonnes.

Conservation of Energy:

In Consistent with the national police of energy conservation and also to contain the cost of production, the Company has embarked upon an economy drive in this field. Various steps including energy audit have been taken up towards energy conservation. Necessary steps have also been taken in line with the observation made in the energy audit and benefited by way of getting bonus from the Electricity Boards.

The Company has been awarded 1st Prize in National Energy Conservation Award - 2007 in the Mining Sector for his Chikla Mine for the second consecutive year. The Company has also been awarded Certificate of Merit - 2007 for Energy Conservation for its EMD Plant in the Chemical Sector.

For the first time in the history, your Company has awarded first prize for energy conservation at Maharashtra State Level. The award was instituted by Maharashtra Energy Development Agency (MEDA). The awards were given to our Chikla Mine and EMD Plant.

Sales:

During the year 2007- 2008, a quantity of 13.92 lakh tones of manganese ore has been sold as against the target of 9.35 lakh tones resulting in an achievement of 149%. The sale of Electrolytic Manganese Dioxide (EMD) was 1592 tonnes as against the target of 1400 tonnes resulting in an achievement of 114% The sale of EMD during the year under report is THE HIGHEST EVER SINCE INCEPTION OF THE PLANT. The sale of Ferro Manganese has been been 10277 tonnes against the target of 9000 tonnes reflecting an achievement of 114%.

In terms of value, the sales turnover during the year 2007-08 was Rs. 97335.83 lakhs (including EMD and Ferro Manganese turnover of Rs. 745. 50 lakhs and Rs 6039.63) lakhs respectively) as aganinst the target of Rs. 32000.00 lakhs (including EMD) and Ferro Manganese turnover target of Rs. 765.38 lakhs and Rs. 2643.12 lakh respectively). The sales turnover is THE HIGHEST EVER SINCE INCEPTION OF THE COMPANY. The sale turnover during the previous year 2007-2008 was Rs. 41762.99 lakhs (including EMD and ferro Manganese turnover of Rs. 310.00) lakhs and Rs. 3669.70 lakhs respectively).

Foreign Exchange earnings and Outgo:

Your company has not made any export of Manganese ore during the Financial Year 2007-08 During the year under review, the expenditure in foreign currency for traveling was Rs. 4.55 lakhs as against Rs. 10.25 lakhs in the previous year.

Closing Stock:

The Company has a closing stock of 0.56 lakh tones of manganese ore valued at Rs. 999.40 lakhs as on 31.3.2008 as compared to 1.14 lakh tones of manganese valued at Rs 1922.91lakhs as on 31.3.2007. The closing stock of EMD was 582 tonnes including working in process of 31.33 tones valued at Rs. 296.65 lakhs as on 31.3.2008 as compared to 1080 tonnes including work in process of 27.90 tonnes valued at Rs. 475.35 lakhs as on 31.3.2007. The closing stock of Ferro manganese was 1673 tonnes valued at Rs. 438.57 lakhs as on 31.3.2008 as against 820tonnes valued at Rs. 214.46 lakhs as on 31.3.2007.

Share Capital:

The authorized capital of the company has been increased to Rs.100 crores from Rs. 30 crores during the year. The paid up capital of the Company has been Rs. 28 crores as on 31.3.2008 representing the holding by Central Government 81.57% Govt, of Maharashtra 9.62 % and Govt, of Madhaya Pradesh 8.81 % respectively.

CAPITAL/VALUE ADDITION PROJECTS:

1. Electrolytic Manganese Dioxide Plant:

Initially, 600 TPA capacity Electrolytic Manganese Dioxide (EMD) plant was set up as part of diversification plan which is working satisfactorily.

The quality of the product is of international standard. The capacity of the plant has been expanded twice by 200 TPA each considering the good demand in the domestic market.

Thus the capacity of the plant was increased to 1000 TPA. The production during 2007-08 has been 1122 tonnes (previous year 1312 tonnes) as against the target of 1300 tonnes. The shortfall in production of EMD was due to shut down of the EMD Plant for two months i.e. April and May 2007 for annual maintenance. The production shortfall could not be made up due to shut down.

2. Ferro Manganese Plant:

The production from ferro Manganese Plant was 11130 tonnes during 2007-08 as against the target of 10000 tonnes reflecting an achievement of 111 %. The quality of ferro manganese produced by your Company is one fo the best in the country conforming to international standards and firmly established in the market. The entire quantity of ferro manganese and ferro manganese slag is sold through E-Sales.

3.Mining Projects:

i) Sinking of Vertical Shaft at Gumgaon Mine:

The ore body of Gumgaon is containing high grade manganese ore with vast reserves. In order to exploit this ore safely and systematically, a Vertical Shaft is being sunk at this mine at an estimated cost of Rs. 16.71 crores including ore handling system. The project will improve the production capacity by 3 times than the existing production level and wilI improve the productivity and safety. Till date, a sinking of 75 Mtrs. has been achieved against the total sinking of 190 Mtrs. The work of sinking and allied works such as installation of head gear, lining, equipping, etc., are progressing satisfactorily. The project is expected to be completed by December2009.

ii) Deepening of Vertical Shaft at Balaghat Mine:

In order to sustain the existing level of production and also to augment the same in the coming years to meet the increased demand, the Comany has taken up the work of deepening of Vertical Shaft at Balaghat Mine beyond 10th level upto 15th level. The total work comprises of 157 Mtrs. of sinking, lining and equipping etc. The total value of the project is Rs.6.51 crores and the expected date of completion is December 2009. So far 53 Mtrs. of sinking has been completed and the work is progressing as per schedule.

iii) Deepening of Vertical Shaft at Beldongri Mine:

Consequent to exhaustion of reserves at the existing levels, the Company has taken up deepening of vertical shaft at Beldongri Mine to deeper horizons in order to sustain the production as well as increase the same in the coming years. The work comprises of deepening of the shaft by 45 Mtrs. and so far 8 Mtrs. of sinking has been done. The work is progressing satisfactorily and expected to be completed by March 2009. The total cost of the project is Rs.2.97 crores.

In addition to the above, the Company is also contemplating to take up sinking of new vertical shafts at Munsar and Ukwa Mines. The Feasibility Report in respect of these projects is under preparation and will be available by August 2008. Thereafter further necessary action will be taken in this regard.

4. Integrated Manganese Beneficiation Plant at Balaghat Mine:

In order to profitably utilize the low/medium grade ore and also from the points of view of mineral conservation and value addition, the Company had earlier initiated the installation of an integrated Manganese Beneficiation Plant of 500,000 TPA capacity at Balaghat Mine at a capital cost of Rs.2 1.47 crores. The plant faciIities include crushing, wet screening, classification and jigging operations. The jigging operation shall be done by electronically controlled bottom air pulsated modern jigs provided by M/s Bateman International Projects, South Africa. This plant is first of its kind in India for Manganese Ore Beneficiation. The Plant will upgrade the low / medium grade fines into high grade thereby adding value and fetching higher returns.

The approximate value addition in terms of value would be around 3-4 times in case of low grade fines.

5. Water Supply Scheme at Balaghat Mine:

While initiating the work of 1 MB Plant at Balaghat for which huge quantity of water is required, the Company had taken simultaneous action to make available the required quantity of water for industrial use and also augment the supply of drinking water at Balaghat Mine. The Water Supply Scheme at Balaghat mine envisages a total 5.0 million litres per day of water supply comprising 4.0 million litres per day for industrial use and 1.0 million litres per day for drinking purpose, it has also been proposed to provide 2.0 lakh litres of drinking water per day to nearby villages of Bharweli, Awlazari, Bhagoli, Manjhara, Hirapur, etc., as part of Corporate Social Responsibility. The water is sourced from River Wainganga by laying a pipe line of more than 10.0 Kms. The Project cost is Rs.11.92 Crores. The project has been successfully commissioned during the year.

6. Wind Energy Generation:

During 2005-06, for the first time in the history of MOIL, the Company had commissioned a 4.8 MW wind farm at Nagda Hills,near Dewas in Madhya Pradesh. The wind farm has so far generated more than 17 million units which are much higher than the guaranteed generation capacity. MOIL is the first PSU in the country to install wind farm for captive power requirement and promote non-conventional energy resources. This wind farm had generated 99.26 lakh units of electricity during the year 2007-08.

The Company has taken up installation of another wind farm of 15.2 MW in the same area consisting of 19 WTGs of 800 KW each. This wind farm has also been commissioned and connected to the State Grid.

Thus the total wind energy capacity with MOIL would be 20MW. In addition to getting depreciation and tax benefits, the Company would be earning carbon credits under Clean Development Mechanism (CDM). The total electricity produced from these two wind farm so far has been 69.03 .lakh Units during April-May 2008.

7. Construction of MOIL Bhavan - New Administrative Building Complex for Corporate Headquarters at Nagpur.

The Corporate office of MOIL was spread out in 3 locations at Nagpur due to shortage of space in one single building. Steps were taken to construct the corporate headquarters in the vacant space owned by the Company. This work has been entrusted to M/s Hindustan Steel Works Construction Limited (HSCL) a PSU under the Ministry of Steel at a cost of Rs.7.85 crores. The total plinth area of the building is 2200 Sq.Mtr. and the built up area is 7000 Sq.Mtr. The building is located on a plot admeasuring 1.62 Ha. (4.00 acres) MOIL Bhavan is an ultra-modern energy efficient building. Located on a sprawling 4 acre plot, the building is aesthetically landscaped with greenery and water bodies. The building has over 75,000 sq.ft. of office space and incorporates all energy conserving methodologies along with rainwater harvesting. The construction work of the building was done in a record time of 11 months. The building is surrounded by lush green landscape of about 3800 Sq.Mtrs. and the sapling and hedges planted therein number about 35,000. Consequent to the construction of MOIL Bhavan, the Registered Office your Company has been shifted to this new premises.

8. Construction of A,B,C&D type quarters:

As a part of social welfare and to improve the quality of living standard of employees at the mines, Construction of 1080 Nos. of A,B,C & D type quarters in Phase I with modem amenities has been taken up at various mines. The work has been entrusted to Mls Hindustan Steel Works Construction Limited (HSCL) a PSU under the Ministry of Steel at a cost of Rs.16.21 crores. The work has been completed and the new quarters have been handed over to the employees.

9. Joint Concept Study between MOIL & M/S BHP Billiton For Ferro Alloy Project In South Africa:

A MoU was signed between MOIL and M/s BHP Billiton for undertaking a joint concept study for setting up of ferro alloy project in South Africa. Working Groups were formed and option studies with regard to 5 sites have done. After the study, the site option has been narrowed to two sites viz. COEGA, near Port Elizabeth and Hotzel near BHPs Mine pithead. The study report has been received and the same is being examined and after obtaining the approval of the Board, further course of action will be decided.

10. Acquisition of Land at Bobbli, near Visakhapatanam from Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for future Business Development:

The Company has already entered into an MoU with M/s BHP Billiton for import of high grade low phosphorus manganese ore which will be blended with low/ medium grades of manganese ore of MOIL to prepare an ideal blend for production of ferro alloys in India. This is required to meet the ever increasing demand for manganese ore commensurate with the increase in steel production in the country. The Company has been exploring the possibility of acquiring land near Vizag Port to facilitate import / export of manganese and ferro alloys. In this connection, the Company had earlier approached APIIC for allotment of suitable land near Vizag Port. APIIC has offered about 100 acres of land in the industrial estate situated at Bobbli which is about 90 Kms. from Vizag Port. The site is well connect with rail and road and also has all infrastructure facilities such as power, water, road etc. The site is also located between Vizag and Raipur and nearer to major users of manganese ore. The land is suitable for stockyard and blending facilities for manganese ore. In view of the availability of infrastructure such as power at subsidized rates, the proposed land is also suitable for setting up of a ferro alloy project in future as site is near to the Port which will help to import of major input material such as manganese ore, coke and also export of the finished product. The land admeasuring 100 acres has been acquired at GROWTH CENTRE at Bobbli, near Vizag (AP) and the agreement to sale has been executed on 19.3.2008.

11 Joint Venture Between M0IL& SAIL for Production of Ferro Alloys:

MOIL has signed a Memorandum of Understanding (MOU) with Steel Authority of India Limited (SAIL) on 26.6.2007 to form a joint venture company to produce ferro alloys.

The Board of Directors of MOIL and SAIL has already approved the proposal for setting up the JV. The proposed JV will produce 100,000 tpa ferro alloys i.e. ferro manganese and silico manganese through three furnaces to be set up in Bhilai. The total capital outlay for the proposed JV is around Rs.365 crores. The Company will be incorporated with a debt-equity ratio of 1:1 and 50:50 shareholdings by MOIL and SAIL. A Joint Venture Agreement has been signed between MOIL and SAIL on 11.2.2008.

MECON is prepared the feasibility report and the project will be commissioned by end of 2009/early 2010

RESEARCH & DEVELOPMENT:

Initiatives taken under R&D are listed below:

- Development of better and improved mining methods.

- Development of new support systems in the underground working and improvement in the existing support methods and practices.

- Development of beneficiation methods and cost effective technologies for upgradation of Ores.

- Development of Manganese based chemicals.

- Exploration of new deposits, feasibility studies for enhancement upgradation of Ore reserves.

- Technology up gradation in specific operations for enhancement of productivity, improvement in safety, reduction in costs and optimisation of manpower used.

- Automization of analytical works through introduction of XRF analyzer for analysis of ore. For the first time in MOIL, the machine has been imported from M/s Phillips, Netherlands and by introduction of this machine, very fast analysis of all elements in Manganese ore, Ferro Manganese and EMD would be done and it would, besides,meeting customers expectations, bills for supplies would be raised early as per analysis and reduce sundry debtors.

The particulars in Form "B" with respect to technology absorption as required by the Companies (Amendment) Act 1988, forming part of this report are annexed to this report.

MINING LEASES/PROSPECTING LICENCES:

During the year under review, the Central Government has recommended to the State Govt, of Maharashtra for grant of the following new Mining Leases:

i) Parsodaarea53.75 Ha. For Mining Lease.

ii) Balapur Hamesha area 4.07 Ha. For Mining lease.

iii) A legal case was pending for a long time in the High Court of Madhya Pradesh at Jabalpur in respect of an area of 125.16 Ha. at Awlajhari and BharweIi in Balaghat district of Madhya Pradesh which has been decided in favour of the Company. The grant of mining lease is awaited.

TRAINING PROGRAMMES- EVERY WEDNESDAY IS A TRAINING DAY IN MOIL:

During the year under review, a total number of 337 training programmes were conducted as against 249 in the previous year. In addition, 266 Vocational Training Programmes were conducted for workers at the Vocational Training Centres at the mines. A total number of 1235 executives, 2510 non-executives, 281 6workers and 1510 vocational trainees were imparted training in different topics. Thus during the year 2007-08, 74263 mandays of training were completed as compared to 50170 mandays in the previous year.

LABOUR WELFARE SCHEMES, RECREATION & MEDICAL FACILITIES:

Your Company has implemented various Welfare Schemes for its employees and the salient features are as under:

- Majority of the employees have been provided with free living accommodation at the mines. Taking into consideration the improved living standards and aspiration of employees, your Company had constructed new and modern living quarters at various mines and the same were allotted to the employees. House Rent Allowance is also being paid to the employees who have their own accommodation.

- The Company is also providing adequate drinking water to the employees residing in the colonies at the mines by conventional wells, bore wells, pipelines supply, etc., and periodical chlorination of wells and tanks are being made.

Thecolonies and the streets are well illuminated and the employees have been provided electricity at their residences on confessional rates.

- The Company has set up hospitals at the mines manned by qualified medicos support by para-medical staff. The arrangement of OPD as well as indoor ward separately for male and female are provided. Ambulances are provided to all the hospitals for attending to emergencies. The patients are also being referred for medical treatments to specialized hospitals as per the requirement.

- Your Company has assisted in running primary schools at some of the mines where free education is imparted to the employees children. School buses are also provided at all the mines enabling the children of employees to attend to nearby high schools and colleges.

- The Company has a scheme for reimbursement of tuition fees. The Company has also introduced scholarship scheme for meritorious wards of employees. Reimbursement of tuition fees to the children of the workers are provided for taking education in engineering, etc.

- Your Company has provided infrastructure at all the mines for sports and recreational activities by providing musical instruments, TV and other material for organizing cultural and sports events

WELFARE MEASURES TAKEN FORSC/ST:

Your Company is a labour intensive organization with 6801 employees on its rolls as on 1.3.2008. About 78% of the total strength belongs to SC/ST/OBC out of which 43% belongs to SC/ST. Your Company is also taking keen interest in development of the down trodden people living in the vicinity of the mines situated in remote areas as detailed below:

- Adopted villages near the mines and provided drinking water facilities, road maintenance, periodical medical cheek ups and treatment to the people living in these villages.

- Provided financial aid, stationary, books, etc., to the school adjacent to the mining areas. Provided sewing machines to women for their development and self-employment.

- Provided Tri-cycles to the physically challenged persons to be independent

- Other welfare measures for the development and up liftment of Tribal women such as conducting sewing classes, adult literacy classes, AIDS Awareness programmes, propagating such other programmes by display of posters, notices and banners, etc.

- Providing training to the physically challenged persons under Apprenticeship Act.

Personnel:

The manpower as on 1.3.2008 of your Company is given below:

Category Executives Non-Executives PR Workers Total

Male 258 2296 3359 5913

Female 12 207 669 888

Total 270 2503 4028 6801

The category-wise details of employees strength as on 1.3.2008 are as under:

Group Scheduled Caste Scheduled Tribe O.B.C. Others Total

A 26 6 39 137 208

B 27 9 36 108 180

C 309 219 335 618 1481

D 942 1503 1800 687 4932

Total 1304 1737 2210 1550 6801

% to total 19.17 25.54 32.50 22.79 100.00

CORPORATE SOCIAL RESPONSIBILIT

Your Company is well aware of its obligations to the society both in the area of environmental protection and social development, the Company has taken up several initiatives towards implementing welfare schemes for uplifting the quality of living of the community surrounding the mines. MOIL has gradually scaled up CSR activities by allocating funds as per Government guidelines. The initiatives taken by your Company under its Corporate Social Responsibility are listed below:

- The Company has earmarked 3% of the net profit towards CSR expenditure for the year 2007-08 which comes to Rs. 3.00 crores.

- As directed by the Ministry, the company has gone beyond the limited sphere of covering the peripheral areas and extended the CSR work to other states like UP,Bihar etc.

- The Company has a CSR Policy in place which has been duly approved by the Board of Directors of the Company which inter alia envisages a budget provision of 5% of the retained profit towards CSR.

- The Company has formulated CSR groups both at the corporate level and also at unit levels to implement CSR programmes and constant monitoring is also being done both at the unit level as well as at corporate levels.

The Company has adopted 5 villages as given below:

- Kurmuda Village in Bhandara district of Maharashtra

- Edurbuchi Village in Bhandara district of Maharashtra

- Chargaon Village in Nagpur district of Maharashtra

- Manjhara village in Balaghat district of Madhya Pradesh

- Dhansua village in Balaghat district of Madhya Pradesh

The Company has taken up a lot of developmental activities such as renovation of schools, roads, construction of culverts, drains, provision of drinking water, sanitation, medical care, development of childrens park, electrification of schools, street lights, provision of 25 Nos. solar street lights, etc. These works are under progress and will be carried out on a continuous basis.

- The Company has also provided assistance to reputed national and local organizations involved in the field of sports, arts, culture, health care, etc.

- The Company has provided 4 Nos. fully air-conditioned, Cardiac- cum-Trauma Care Ambulance in the State of Uttar Pradesh and Bihar equipped with latest medical gadgets for cardiac care on emergency. The value of the vehicle together with medical equipment is about Rs.18 lakhs. The ambulances are fitted with medical instruments such as Difibrulator, ECG, Multi- para monitor, Sugar-check meter, syringe infusion pump, emergency medicine kit, oxygencylinders,etc.

- The Company has provided over 600 Tri-cycles, about 650 hearing aids, crutches, calipers, etc., to physically challenged persons not only in the areas near mines but also in other area beyond the periphery of mines.

In addition, the Company has been continuing its activities in the field of education, environment protection, Self-Help Groups, self-employment generation, Women Empowerment programmes, etc., on a constant basis.

The major events under CSR activities conducted during the year under review are as follows:

- "LIGHT TO LIVES" a charitable programme of sponsoring Cataract Surgeries:

MOIL has entered into a Memorandum of Understanding with Suraj Eye Institute, for carrying out 500 charitable cataract surgeries during the period 1 .9.2007 to 31.3.2008. The total cost of the project is Rs.l0.00 lakhs. All the 500 surgeries have been done. The patients are poor people hailing from the villages of Saoner, Malegaon, Khapa, Patansawangi, etc. This programme is being conducted under the scheme "Light to Lives". In view of the grand success of the programme, MUIL is planning to further extend the programme for further periods in future.

- 2-day free Medical Diagnostic Camp and distribution of tricycles:

In an effort to further enhance the CSR activities, MOIL has organized a 2- day free medical diagnostic camp in a big way on 21-22" January 2008 in Nagpur. During this camp free medical check up was done by eminent specialists of Cardiology, diabetic care, eye care, dental check up, pathological tests, etc. The camp was inaugurated by Shri Ram Vilas Paswan, Honble Minister for Chemicals, Fertilizers and Steel, Government of India. About 500 Nos. tricycles were distributed to the physically challenged persons hailing from the entire Vidarbha region spread over 11 districts. Besides tricycles, calipers/crutches were distributed by the Honble Minister to the physically challenged people.

The major highlight of the programme is handing over of 2 Nos. state of art, fully air conditioned Cardiac-cum-trauma care mobile hospitals in the memory of Bharat Ratna Dr. Babasaheb Ambedkar to the Honble Minister. These ambulances are equipped with latest medical instruments such as ECG, mult-para monitor, defibrillator, syringe infusion pump, pathological testing facility and other emergency kits.

INDUSTRIAL RELATIONS:

Industrial Relations in your Company continued to be cordial and

PROGRESSIVE USE OF HINDI:

During the year under report, your Company continued its efforts in improving and implementing the provisions of Official Language Act, 1963 and rules and orders thereunder. The Company is also publishing in house journal SANKALP in Hindi. A lot of encouragement is given to the employees to participate in various competitions like essay competitions, noting, drafting, poetry and articles in Hindi and suitable rewards are also given away to them. Around 92% of the routine work is being done in Hindi at the mine which has been highly appreciated. Hindi software is provided in the computers and employees are given proper training for its effective use.

Your Company has been awarded the prestigious Indira Gandhi Raj Bhasha Award for its commendable achievement in the use of Hindi.lt is pertinent to mention here that because of the efforts taken during the year under review, the Company was able to regain the Indira Gandhi Raj Bhasha Shield after a gap of 11 years.

SAFETY:

Your Company lays special emphasis to ensure safety in the mines and also taking continuous efforts to reduce the accidents by constantly improving the standards of safety equipment through introduction of latest mining techniques and mechanization of mining operations. The 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 bring in reduction in the mishaps.

- A close inter-action with employees at all levels is done to prevent accidents to the maximum extent possible. During the year under review, there were 17 cases of accidents in all as against 20 in the previous year. Your Company has participated in Zonal Safety Week Competitions and bagged more than 65 prizes. The Company has been selected for National Safety Awards and won the following prizes:

- Winners Trophy for Lowest Injury Frequency by Dongri Buzurg Mine.

- Runners-upTrophy for Longest Accident Free Period by Munsar Mine.

- Runners-upTrophy for Longest Accident Free Period by Kandri Mine.

VIGILANCE:

Vigilance Department is headed by Chief Vigilance Officer appointed by Central Vigilance Commission amongst the senior executives of the Company. During the year under review, the following activities were conducted by the Vigilance Department:

- The updation of Contract / Purchase Manual was undertaken incorporating the CVC guidelines.

- Integrity Pact was implemented in respect of all the contracts valuing Rs. 15 crores and above and two External Independent

Monitors were appointed after due approval from Central Vigilance Commission.

- Two intensive examinations were conducted by Chief Technical Examiner from Central Vigilance Commission in respect of 5 MW Wind Farm in Dewas and Supplying and Commissioning of Air Pulsated Jigs at Balaghat. No adverse comments were given by CVC in this regard.

- Integrity Pact was implemented in respect of 15 MW wind energy project and the External Independent Monitor conducted detailed inspection and reviewed the progress Leveraging technology has been used to bring maximum transparency in all the process of contracts / sale / purchase in line with the directives / guidelines issued by Central Vigilance Commission and Ministry of Steel, from time to time.

CORPORATE GOVERNANCE:

The Company has complied with various requirement of Corporate Governance. The details in this regard forms part of this report.

LEGALAFFAIRS:

The case relating to imposition of increased land revenue by the Govt, of Maharashtra is pending before the Mumbai High Court (Nagpur Bench), Nagpur. Similarly, the Govt, of Madhya Pradesh has imposed tax on mineral bearing land we.f. 30.9.2005 under M.P.Gram in Avsanrachana Tatha Sadak Vikas Adhiniyam 2005 where the tax 5% is payable on mineral bearing land. The Company has filed a writ petition in the High Court of Madhya Pradesh, Jabalpur. Your Company has filed a winding up petition against Sandur Manganese & Iron Ore Company Limited before the High Court of Karnataka, Bangalore for recovery of outstanding dues. The writ petition was dismissed since the party has been referred to BIFR. The total amount due from the party amounts to Rs. 21.15 lakhs. However, the party has expressed its desire to settle the outstanding dues once they start their operations.

A writ petition has been filed in the Mumbai High Court, Nagpur Bench, Nagpur against Nagpur lmprovement Trust for compensation of Rs.83.77 lakhs towards acquisition of 761.60 Sq.Mtrs. of land belonging to MOIL for Integrated Road Development Project (IRDP). The reply to the Courts notice has not been filed by Nagpur Improvement Trust so far and the case is still pending before the Court.

ENVIRONMENTAL PR0TECTION:

The Company is conscious of its responsibility towards environmental protection in and around its leasehold areas. About 52500 saplings were planted during 2007-08 at different mines of the Company. The cumulative plantation till date is about 15.52 lakhs saplings.

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.

DIRECTORS:

Shri A. Balraj, Dr. M. Maharajan and Dr. D.D. Kaushik have been appointed as Independent Directors on the Board of your Company w.e.f. 25.06.2007. Shri Ajoy Kumar, Joint Secretary to Govt, of India, Ministry of Steel ceased to be Director w.e.f. 10.12.2007 and in his place Shri George Elias was appointed as Director on 11.12.2007 Shri George Elias also ceased to be Director w.e.f 24.4.2008 and in his place Dr. Dalip Singh has been appointed as Director on 25.4.2008.

Shri Rakesh Agrawal, Secretary to Govt, of Madhya Pradesh, Mineral Resources Department ceased to be Director w.e.f. 2.7.07 and in his place Shri. Sewa Ram, Principle Secretary to Govt, of Madhya Pradesh, Mineral Resources Department has been appointed as Director on 3.7.2007.

Shri V.K. Jairath, Principle Secretary to Govt, of Maharashtra, Industry, Energy & Labour Department ceased to be Director w.e.f. 5.5.2008 and in his place Shri A.M. Khan, Principle Secretary to Govt, of Maharashtra, Industry, Energy & Labour Department has been appointed w.e.f. 6.5.2008. Shri G.P Kundargi, has been appointed as Director (Production & Planning) w.e.f. 2.6.2008 in place of Shri C.P N. Pathak consequent to his superannuation on 31.5.2008.

DIRECTORS RESPONSIBILITY STATEMENT:

Pursuant to Section 217 (2AA) of the Companies (Amendment) Act 2000,it is hereby stated as under:

i) In the preparations of the Annual Accounts, applicable accounting standards have been followed along with proper explanation relating to Materials Department.

ii) The Directors have selected such accounting policies and applied them consistently and judgements estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or the loss of the Company for that period.

iii) The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of this Act for safeguarding the asset of the Company and for preventing and detecting fraud and other irregularities.

iv) The Directors have prepared the annual accounts on a going concern basis.

AUDITORS:

M/s Shah Baheti Chandak & Co, Chartered Accountants, Nagpur have been appointed by the Comptroller & Auditor General of India as auditors of your Company for the year under report.

GENERAL:

There are no employees within the purview of Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules1975asamendedfrom time to time.

ACKNOWLEDGMENT:

Your Directors gratefully acknowledge the valuable guidance and support extended by the Govt, of India, Ministry of Steel, State Governments of Maharashtra and Madhya Pradesh, Companys Bankers and valued customers. The employees of the Company have continued to display their total 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.

Your Directors are thankful to the shareholders for their faith and continued support in the endeavors of the Company.

On behalf of the Board of Directors

S/d

Place: New Delhi Chairman-cum-Managing Director Date : 11/06/2008

Mar 31, 2007

On behalf of the Board of Directors, I have pleasure in presenting the 45th Annual Accounts and the Directors Report on the business and operation of the Company for the financial year ended 31st March 2007 along with the Audited Statement of Accounts.

FINANCIAL RESULTS:

The financial results of 2006-07 and of the previous year are highlighted below:

Rs. in lakhs 2006-07 2005-06

Sales Turnover 41762.99 33409.96 Profit before tax for the year 20114.58 16911.99 Less: Income tax provision 6008.63 5469.72 Provision for Fringe 26.78 31.77 Benefit Tax Add/Less: Deferred 658.42 52.77 tax (Assets/Liability) Profit after tax for the year 13420.75 11451.71 Add: Balance carried 147.96 67.94 forwad from previous year Total 13568.71 11519.65 Less: Proposed final 560.00 766.26 Dividend on Equity Share 20% (50%) Tax on Dividend 95.17 107.47 Interim Dividend on 2240.00 1226.01 Equity - 80% Tax on Interim Dividend 314.16 171.95 General Reserve 10300.00 9100.00 Total 13509.33 11371.69 Profit carried over 59.38 147.96

DIVIDEND:

Your Directors, after taking into account the financial results of the company during the year, have recommended dividend of 100% (including interim dividend of 80%) as against 130% dividend paid for the year 2005-06.

OTHER INCOME:

Due to prudent cash planning and deployment of surplus funds in Fixed Deposits with various Nationalized Banks as per the Govt, guidelines, the Company earned interest income of Rs. 2199.73 lakhs (Rs. 1344.16 lakhs).

OPERATING RESULTS

PRODUCTION & PRODUCTIVITY:

The Company has attained a production of 10.47 lakh tonnes (previous year 8.65 lakh tonnes) of various grades of Manganese Ore during the year 2006-07 as against the target of 9.10 lakh tonnes resulting an achievement of 115%. The EMD producation was 1312 tonnes (previous year 1301 tonnes) as against the target of 1 300 tonnes resulting in an achievement of 101%.

The Ferro Manganese production was 10,200 tonnes (previous year 6170 tonnes) as against the traget of 8000 tonnes resulting in an achievement of 128%. The Company achieved an output per man shift of 0.664 tonnes [pervious year 0.551 tonnes ) as against the target of 0.440 tonnes.

CONSERVATION OF ENERGY:

Consistent with the National Policy to conserve energy and also to contain cost of production, the Company has embarked upon an economy drive in this sphere , Various steps including energy audit have been taken to conserve energy and minimize power consumption, Company has taken steps in line with the observaion made in the Energy Audit and benefited by way of getting bonus from the Electricity Boards.

The Company has been awarded 1st Prize in National Awards on Energy Conservation - 2006 consectively for the 2nd year in the Chemicals Sector for its efforts to conserve energy in Electrolytic Manganese Dioxide Plant located at Dongri Buzurg Mine in the Bhandara District of Maharashtra.

The Company has also bagged 1st Prize lor National Energy Conservation for Mining Sector for the Balaghat Mine in Madhya Pradesh. This is lor the first time since inception of MOIL that this award was won by the Company.

SALE:

During the year 2006-07 a quantity of 11 77 lakhs tonnes of Manganese Ore has been sold as against the target 10.08 lakhs tonnes resulting in achievement of 117% Sale of EMD was 570 tonnes as against the target of 1000 tonnes resulting in a deficit of 43%.

The sale of Ferro Manganese was 1 1928 tonnes against the target of 9000 tonnes resulting in an achievement of 1 33%. Turnover during the year was Rs. 41762.99 lakhs (including EMD and Ferro Manganese turnover of Rs. 310.00 lakhs and Rs. 3669.70 lakhs respectively) as against the target of Rs. 30,000.00 lakhs (including EMD and Ferro Manganese Turnover of Rs. 654.00 lakhs and Rs. 2320.00 lakhs respectively.) Sales during the year 2005-06 was Rs. 33409.96 lakhs (including EMD and Ferro Manganese sale of Rs. 658.87 lakhs and Rs. 2480.38 lakhs respectively).

FOREIGN EXCHANGE EARNINGS & OUTGO:

Your Company made no export of Manganese Ore during the financial year 2006-07. During the year under review, the expenditure in foreign currency For traveling was Rs. 10.25 lakhs as aginst last year was Rs. 2.68 lakhs.

CLOSING STOCK:

The Company has a closing stock of 1.14 lakh tonnes of Manganese Ore valued at Rs. 1922.91 lakhs as on 31 /3/2007 as compared to 2.75 lakhs tonnes valued at Rs. 4672.72 lakhs as on 31/3/2006. The closing stock of EMD was 1080 tonnes including work in process of 27.90 tonnes valued at Rs. 475.35 lakhs as on 31/3/2007 as compared to 310 tonnes including work In process of 15.37 tonnes valued at Rs. 141.67 lakhs as on 31/3/2006.

The closing stock of Ferro Manganese was 820 tonnes valued at Rs. 214.46 lakhs as on 31/3/2007 as against 2548 tonnes valued at Rs.718.80 lakhs as on 31 /3/2006.

SHARE CAPITAL:

Your company has made a bonus issue of 1267486 equity shares to the existing shareholders during the year. 2006-07. The paid up equity share capital of the Company was increased from Rs. 1532.51 lakhs to Rs. 2800.00 lakhs as on 31/3/2007 representing the holding by Central Government 81.57% Govt, of Maharashtra 9.62% and Govt, of Madhya Pradesh 8.81% respectively.

DIVERSIFICATION PROJECTS:

Your Company has taken up ambitious diversification/expansion plans to manufacture new products/value added products so that the Company can become a multi-product organization in the course of time. As a part of these efforts the company has setup/ implementing the following projects.

1. ELECTROLYTIC MANGANESE DIOXIDE (EMD) PLANT :

Initially 600 TPA capacity Electrolytic Manganese Di- Oxide (EMD) Plant was set-up as a part of diversification plan which is working satisfactorily. The quality of the product is of international standard. The capacity of this plant has been expanded twice, by 200 TPA each considering the good demand in the domestic market. Thus the capacity of the plant was increased to 1000 TPA.

Due to increased demand for EMD,further expansion of capacity upto 1500 TPA has been taken up. The producation during the year 2006-07 from the plant is 1312 tonnes {previous year 1301 tonnes) EMD as against the target of 1000 tonnes resulting in achievement of 131 %.

2. FERRO MANGANESE PLANT

The production from the Ferro Manganese Plant was 10,200 tonnes as against the target of 9,000 tonnes resulting in an achievement of 1 13%. The quality of Ferro Manganese is one of the best in the country conforming to International standard and firmly established in the market. The entire quantity of Ferro Manganese and Ferro Manganese Slag is sold through e-sales.

3. VERTICAL SHAFT SINKING AT GUMGAON MINE:

The ore body of Gumgaon Mine is containing High Grade Manganese Ore with vast reserves. In order to exploit this ore safely and systematically, a Vertical Shaft is being put-up at this Mine at an estimated cost of Rs. 12.47 Crores including ore handling system. The project will improve the production capacity by 3 times than the exisiting production level and will improve the productivity and safety. The fabrication of head gear and other structures is completed and shaft sinking work is under progress. The total project execution period is 48 Months.

4. BENEFICATION PLANT AT BALAGHAT MINE:

Installation of 500,000 TPA Integrated Ore Beneficiation Plant for Manganese Ore is taken up at Balaghat Mine. The plant facilities include crushing, wet screening, classification and jigging operations. The jigging operation shall be done by electronically controlled air pulsated jigs, which is being supplied by Delkor/Bateman of South Africa. The capital cost of the project is around Rs. 18.00 crores. Civil Structural works are completed.

Equipment erection and electrical works are under progress. The plant is expected to be commissioned by June, 2007. With the installation of Beneficiation Plant, the medium grade ore is upgraded to high grade with the improvement in quality of ore and recovery of ore resulting in value addition.

5. WATER SUPPLY SCHEME AT BALAGHAT MINE:

Due to the modernization, mechanization and beneficiation / jigging plant at Balaghat Mine, the water supply to the mine has become critical for all operations. The total requirement is estimated about 4 MLD water for industrial use and 1 MLD water for Drinking/Domestic use. PHE, Govt, of Madhya Pardesh, Balaghat submitted project report. The project includes the drawl of water From Wainganga River for industrial use and dug wells for Dinking / Domestic use. The cost of the project is estimated at Rs. 11.93 Crores and M/s. Hindustan Steel Construction Ltd., Kolkata, were awarded with the execution of the project.

The work of construction of 2 Lakh Ltrs. capacity each of Elevated Storage Reservoir (ESR) and 2 Nos. Ground Storage Reservoir (GSR) is completed. The pipeline supply for 10 Kms. length is completed. The construction of Jack well and Intake well shall be taken up during May/June, 2007.

6. Wind Energy Farm:

MOIL is having its mines and plants in Madhya Pradesh and Maharashtra States. Both the states are having identified potential areas for wind energy generation. Company has installed 5 MW capacity wind energy based power plant at Nagda Hills near Dewas, Madhya Pradesh. The plant is commissioned and connected to grid on 30 June, 2006.

The Capital cost of the project is Rs. 22.20 Crores. With the commissioning of this plant the Company has generated 6.7 million Units by 31st March, 2007 and Company shall be benefitting by utilizing the electricity units generated by this plant to save the electricity cost in the mines and plants situated in Balaghat District.

The Company has planned to set up new wind based power plants with 15 MW capacity in Madhya Pradesh and 8 MW capacity in Maharashtra States.

DIVERSIFICATION F0RVALUE ADDED PRODUCTS

1. POTASSIUM PERMANGANATE (KM):

Potassium Permanganate is used as an oxidizing agent in organic chemistry (i.e.producation of Saccharine), to remove unpleasant odours from air and other gases, in metal treatment and plating, in hydrometallurgy and in metal refining, as a decolouring and bleaching agent in the textile and tanning industry and as a disinfectant in medicine.

Its largest growth area today is in pollution control, more especially For the removal of objectionable matter From process solutions, in municipal water and control of airborne odour pollutants.

The demand of this product is considerable owing to its wide applications The Company has plans to create a facility for production of 5000 TPA Potassium Permanganate and the value addition will be manifold considering input price of Manganese Ore. The Company is exploring for latest technoloy for productions of Potassium Permanganate Some parties have shown interest against the expression of interest floated by the Company for production of Potassium Permanganate through JV.

The market survey study is undertaken by the company in this regard. The estimated cost of the project would be around Rs. 25.00 Crores.

2. SETTING UP OF AGGLOMERATION FACILITIES FOR HIGH GRADE MANGANESE ORE FINES BY SINTERING / BRIQUETTING PROCESS AT BALAGHAT MINE.

The Company is setting up Manganese ore beneficiation plant for handling and processing of Manganese Ore at Balaghat Mine. There will be a production of about 4500 tonnes High grade manganese ore fines from this plant with manganese content of around 49%. Fines are by products of mining and processing activities.

Agglomeration techniques are required to be adopted for utilization of these fines for use in Ferro Alloys production. The utilization of high grade manganese ore fines after sintering for ferro alloys production not only saves these scarce high grade manganese lumpy ore but also adds value to the business. The Company is planning to set up a sintering plant for agglomeration of these fines after commissioning of the Beneficiation Plant.

3. NEW FERRO MANGANESE & SILICO MANGANESE PLANT:

Keeping in view the increase in demand of Ferro Alloys commensurate with the projected growth of steel production as per National Steel Policy 2005, Company is setting up Ferro Alloy Projects in JV with SAIL The proposed project includes setting up of 27.0 MVA Furnace for Silico Manganese production and 16.5 MVA furnace for High Carbon Ferro Manganese Production.

The approximate estimated cost is Rs. 240.00 Crores. The feasibility report is prepared by MECON. The Company is also exploring the possibility of setting up of Ferro Alloy plants in oversees countries through JV where cheaper power is available. The Company has signed an MoU with M/s. BHP Billiton for undertaking a Joint Concept Study for feasibility of such joint venture for production of ferro alloys in South Africa where high grade Manganese Ore and Coal is available and power is cheaper.

RESEARCH AND DEVELOPMENT:

Our Company attaches great importance to R&D studies. The more important areas where such stu-dies have been undertaken by our Company are:

Development of better and improved mining methods.

Development of new support system in the underground workings and improvement in the existing support methods and practices. Development of beneficiation methods and cost effective technologies for up gradation of ores. Development of Manganese based chemicals.

Exploration of new deposits, feasibility studies for enhancement up gradation of Ore reserves. Technology up gradation in specific operations for enhancement of productivity, improvement in safety, reduction in costs and optimization of manpower used.

- Automisation of analytical works through introduction of XRF Analyzer for analysis of ore.

- Optimization of energy and energy saving at EMD Plant, Ferro Manganese Plant and mines.

- Introduction of mechanized handling system in underground mines including Side Discharge Loader (SDL)

The particulars in form B with respect to technology absorption as required by the Companies (Amendment) Act, 1988, forming part of this report, are annexed to this report.

MINING LEASES / PROSPECTING LICENCES:

During the year 2006-07, no new mining leases have been granted to your Company. However, Govt, of Maharashtra has recommended to Central Government For the allotment of new Mining Leases/Prospecting Licence in the following areas namely :-

1. Parsoda area 53.75 ha. and Mining Lease.

2. Nandapuri area 5.65 ha. For Prospecting Lease.

3. Balapur Hamesha area 4. 13 ha. For Mining Lease.

TRAINING PROGRAMMES:

During the year under review, your Company had conducted 249 training programmes in which 663 Executives and 1014 Non-Executives have participated. In addition to this, 4292 Workers had participated in Vocational Training / In-House Training programmes which were conducted at Mines. Thus, during the financial year 2006-07 total 50170 mandays training were completed for all the employees.

Besides this, total 34786 mandays training were completed for 140 Trade Apprentice belonging to different disciplines were trained at the Mines and Head Office of the Company. Traning facilities to 250 students of various engineering institutions in the country were also provided at the Mines of the Company

LABOUR WELFARE SCHEMES, RECREATION & MEDICAL FACILITIES:

Your Company has implemented various Welfare Schemes, salient features of which are as under:

Majority of the employees have been provided with free living accommodation at the mines. Taking into consideration the improved living standared and aspiration of employees, your Company has taken up construction of 411 quarters for its employees at various mines, for the residential accommodation of the employees of various grades. 56 new Quarters have already been allotted to the employees for accommodation. House rent allowance have been given to those who are residing in their own houses.

The Company is also providing adequate supply of drinking water to the employees residing in the mines colonies by conventional wells, bore wells, pipelines supply etc and periodical chlorination of well and tanks are being done.

The colonies and streets of the Camps are well illuminated. The employees have been provided electricity for their residence on concessional rate.

The Company has set up hospitals at the mines manned by qualified Medicos supported by Para-medical staff. The arrangement of OPD as well as indoor ward separately for male and female are provided. Ambulance Vans are provided to all the Hospitals for attending emergencies. The patients are also being referred for medical treatments to specialized Hospitals as per the requirement.

Your Company has assisted in running primary schools at some of the mines where free education is imparted to the employees children . School Buses are also provided at all the mines enabling the employees children to go to nearby High Schools and colleges. The Company has a scheme for reimbursement of tution fees.

The Company has also introduced Scholarship Scheme for meritorious wards of employees. Reimbursement of tuition fees to the children of the workers are provided for taking education in Engineering.

Your Company has provided infrastructure at all the Mines for covering Sports and Recreational activities, Musical instruments, T.V. and other facilities for organizing cultural event, sports competition etc.

WELFARE MEASURES TAKEN FORSC / ST:

Your Company is a labour intensive organization with around 6904 employees on its roll. About 78% of the total strenght belongs to SC/ST/OBC out of which 43% belongs to SC/ST. Your Company is also taking keen interest in development of the down trodden people living in the vicinity of the Mines situated in the remote areas, for which following steps are being taken.

Adopted villages nearby Mines and provided drinking water facilities, road maintenance, periodical medical examination and treatment to the people living near the areas.

Giving financial aid, stationary, books etc to the school adjacent to the Mine areas.

Provided Sewing Machines to the females for their development and self employment.

Donating tricycles to the handicapped persons.

Taking other welfare measures for the development and upliftment of tribal women of the areas such as providing sewing classes, conducting adult literacy classes, propagating other such programmes by displaying posters and notices, banners etc.

Providing training to disabled under Apprentice Act.

PERSONNEL:

The manpower as on 1/3/2007 of your Company is given below:

Executives Non Piece Executive Rated Total workers

Male 265 2301 3458 6024 Female 11 145 724 880

Total 276 2446 4182 6904

Details of the Category-wise strenght as on 1/3/2007 was as under:

Group Schedule Schedule O.B.C Others Total Caste Tribe

A 22 7 39 147 215 B 25 7 32 108 172 C 289 260 321 618 1488 D 938 1409 2010 672 5029

Total 1274 1683 2402 1545 6904

% age 18.45 24.38 34.79 22.38 100

CORPORATE SOCIAL RESPONSIBILITY

MOIL believes that it is a business organization with the self-assumed responsibility to the society and environments in which it does business. To name, few initiatives taken in this direction are:

Building of Primary school at Chikla Mine located at Bhandara district of Maharashtra. The school provides. Education to children of remote villages near our Chikla Mine. Both Hindi and English media of education are provided and the total strength of the school at present is around 400.

Reimbursement of annual tuition fee to children studing in the above school hailing from the nearby villages numbering about 310. This facility is being provided on a continuous basis.

Development of Childrens Park at CMS Compund in Nagpur.

Installation of Baba Saheb Dr. Ambedkars statue and development of a garden around the statute.

Financial assistance for relief work in the flood affected villages in the Balaghat District of Madhya Pradesh where MOILs biggest mine is located. Sponsorship of Cultural Event viz. Kalidas Festival by the Government of Maharashtra for promotion of Indian culture and fine arts. This event is being sponsored by the Comapany every year continuously for the last several years.

Providing clothing etc. to the inmates of old age home by the Mother Teresas Sisters of Charity at Nagpur.

Medical camp organized for Chikungunia for the villages located around Dongri Buzurg/Chikla Mine and medicines distributed in the presence of Collector. Bhandara distsrict. About 3500 people attended the camp from the villages of Dongri, Balapur Hamesha, Goberwahi, Sitasaongi etc. Eminent doctors including Civil Surgeon, Bhandara provided support of the camp.

Providing clothing etc. to the inmates of Jeevoday, the school for Mentally Challenged Children, Nagpur.

Providing medical facilities/supply of medicines to villages Sitasaongi, Goberwahi near Chikla Mine.

This facility is being provided on a continuous basis.

Construction fo toilets/drains at villages in and round the mines.

Provision of drinking water facility at villages in and around mines.

Fencing and tree plantation at Govt. High School, Bharveli, Balaghat.

Construction of Moksha Dham at Bhagoli Village.

Beautification of Katol Road at Nagpur about 1.50 km in length.

Construction of one room at the Deaf & Dumb Residential School at Saoner (Near our Gumgaon Mine)

Provision of Solar Lamps in villages near mines area which are not electrified.

Vocational training to women from remote villages around mines for generation of self employment.

Construction of Bus Stop (with shade) for public use at Balaghat Town, Gudma (near Ukwa) and Ukwa Mine on main road.

INDUSTRIAL REALTIONS:

Industrial Relations in your company continued to be cordial and peaceful during the year under report.

PROGRESSIV USE OF HINDI:

During the year, your company continued its efforts in propagating and implementation of the provisions of Official Language Act, 1963 and rules and orders thereon. The Company is also publishing in house Journal SANKALP In Hindi in order to encourage the employees to participate in various competitions like essay competition, notings, drafting, poetry and articles for propagating Hindi around 92% of the work is being done at mines in Hindi , which has been appreciated.

Hindi software on computers has been provided and employees are being trained to make use of the same.

SAFETY:

Your company pays special attention to ensure safety of the mines and workers employed therein. The company has been making continuous efforts to reduce the I accidents by improving the standards of safety gears, by introducing latest mining techniques and by continuous mechanization of mining operation. Higher Safety standards is achieved by training and retraining of workers. Safety Committee meeting are held at mines regularly where accident analysis is done meticulously. During the year under review, there were 20 cases of accidents in all.

Your Company has also participated in Zonal Safety Week competition and bagged more than 66 prizes. The Company has been selected for National Safety Awards for three mines; for" Lowest Injury Frequency Rate" and for "Longest Accident free period" safety policy for the company has been further strengthened by introducing health & Safety management through Risk Assessment which will improve the Safety standard at mines.

In the year under review, MOIL rescue team participated in All India Rescue Competition held at Ramgarh, Jharkhand and bagged overall first Prize in Metal Mining Category.

VIGILANCE:

Vigilance Department is headed by a CVO who has been appointed by Chief Vigilance Commission from amongst the senior executives of the company. During the year 2006-07 the Vigilance Department acquired ISO 9001- 2000 Certification. The department has also finalized the Integrity Pact for contract/purchases valuing Rs. 15 crores and above. Leveraging technology has been used to bring maximum possible transparency in all the process of contracts/sale/purchase in the line with the directives/guidelines issued by CVC and Ministry of Steel from time to time.

CORPORATE GOVERNANCE:

The company has complied with the various requirements of Corporate Governance. The detail in this regard forms part of this report.

LEGAL AFFAIRS

The case related to imposition of increased land revenue by the Govt, of Maharashtra is pending before the Mumbai High Court, (Nagpur Bench). M.P Government has imposed tax on mineral bearing land e.f. 30.9.2005 under M.P. Gramin Avsanrachana Tatha Sadak Vikas Adhiniyam, 2005 where the tax@5% p.a. is payable on the mineral bearing land. The Company has filed writ petition before the Honble High Court, Jabalpur and obtained a stay.

Your Company has initiated legal proceedings against some of the defaulting customers for recovery of outstanding dues. Your Company has challenged the Interim Award given by the Sole Arbitrator the matter relating to the sales contract for the year 1988-99 and the Division Bench of the Mumbai High Court has dismissed Companys Appeal. The Company has filed a Special

Leave Petition (SLP) before the Honsble Supreme Court against the final order passed by the Division Bench of Honble Bombay High Court. However, the same has been dismissed by Honble Supreme Court.

A writ petition filed against the Company relating the promotion of Executives on CDA pattern after 1/1/1989 before the Mumbai High Court (Nagpur Bench) is still pending, while a similar writ petition filed before the Jabalpur High Court (MP) has been decided in favour of the Company.

Your Company has filed a winding up petition against Sandur Manganese & Iron Ores Co. Ltd before Honble High Court of Karnataka, Bangalore for recovery of outstanding dues. The Writ Petition was dismissed by Honble High Courtsnce the party was referred to BIFR.

During the financial year 2006-07 the Company has adjusted balance Rs. 7.30 lakhs from the EMD amount and further the party has paid Rs. 6.00 lakhs against the total outstanding amount of Rs. 34.45 lakhs. Thus the total outstanding amount due from the party as on date amounts to Rs. 21.15 lakhs. However, the party has expressed their desire to settle the outstanding dues once they start their operations.

A writ petition filed in the Nagpur Bench of Mumbai High Court against Nagpur Improvement Trust for compensation fo Rs. 83.77 lakhs towards acquistion of 761.60 Sqr Mtrs. of land belonging to MOIL for IRDP is pending.

ENVIRONMENTAL PROTECTION:

The Company is conscious of its responsibilities towards protection of environment in its leasehold areas . About 50,000 saplings were planted during 2006-07 at different mines of the Company. The cumulative plantation till date is about 15 lakhs.

A drive has been initiated for plantation of Jatroptra sapling in arid/ dry and waste dumps which when fully grown provide seeds for production of bio diesel.

DIRECTORS:

Shri M.K. Moitra, Shri S.N. Padhi and Shri AN. Palwankar ceased to be directors on 30th May 2006 and Shri. S.K. Benerjee was appointed as a Director of MOILon 28th June 2006.

Dr. Devral Birdi, nominee of the Government of Madhya Pradesh ceased to be Director on 27th November 2006 consequent to his transfer to other department and Shri Rakesh Agarwal, Secretary, MRD was appointed as a Director on 31st January 2007.

Shri B.B. Choudhary Director (Commercial), ceased to be Director of the Company consequent upon his superannuation on 30 April 2007 and Shri A.K. Mehra was appointed as a Director (Commercial) on 1st May 2007.

DIRECTORS RESPONSIBILTY STATEMENT:

Pursuant to the provisions of Section 217(2AA) as per the Companies. (Amendment) Act, 2000, it is hereby stated as under :-

i) In the preparations of the Annual Accounts, applicable accounting standards have been following along with proper explanation relating to Materials Department.

ii) The Directors have selected such accounting policies and applied them consistently and judgements estimates that are reasonable and prudent so as to give true and fair view of the state of affairs of the Company at the and of the financial year and of the profit or the loss of the Company for that period.

iii] The Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provision of this Act for safe guarding the asset of the Company and for preventing and detecting fraud and other irregularities

iv) The Directors have prepared the annual accounts on a going concern basis.

AUDITORS:

M/s Rodi Dabir&Co. Chartered Accountants, Nagpur have been appointed by the Comptroller & Auditor General of India, as Auditors of your Company for the year under report.

GENERAL:

There are no employees with in the purview of Section 217 (2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) rules 1975 as amended from time to time.

ACKNOWLEDGEMENT:

Your Directors gratefully acknowledge the valuable guidance and support extended by the Government of India, Ministry of Steel, Govt, of Maharashtra, Govt, of Madhya Pradesh and Companys Bankers and valued Customers.

The employees of the Company have continued to display their total 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.

Your Directors are thankful to the shareholders for their faith and continued support in the endeavors of the Company.

On behalf of the Board of Directors.

K.L Mehrolraa Chairman-cum-Managing Director Place : Mumbai Date : 29/05/2007

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article