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Directors Report of MOIL Ltd.

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 16½ 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 – 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 – 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 – 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 – 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, 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

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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

 
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