cmyk NMDC LIMITED CONTENTS ANNUAL REPORT OF NMDC LIMITED Directors’ Report................................................................................... 5 Independent Auditors’ Report .......................................................... 110 Comments of C&AG ........................................................................ 117 Balance Sheet .................................................................................. 118 Statement of Profit & Loss ............................................................... 119 Cash Flow Statement ........................................................................ 120 Notes on Accounts ........................................................................... 122 Consolidated Balance Sheet ............................................................. 167 ANNUAL REPORT OF SUBSIDIARY COMPANIES J&K Mineral Development Corporation Limited .................. 213 NMDC-CMDC Limited ............................................................239 NMDC Power Limited .............................................................265 Jharkhand National Mineral Development Corp. Ltd. ...........283 NMDC SARL ............................................................................301 NOTICE FOR AGM OF NMDC LIMITED 56th AGM Notice ....................................................................305 BANKERS State Bank of India STATUTORY AUDITORS Canara Bank UCO Bank M/s. Venugopal & Chenoy State Bank of Mysore Hyderabad, Andhra Pradesh State Bank of Hyderabad REGD. OFFICE: BRANCH AUDITORS NMDC Limited M/s. Brahmayya & Co. “Khanij Bhavan”, Visakhapatnam, Andhra Pradesh 10-3-311/A, Castle Hills M/s. P.K. Subramaniam & Co. Masab Tank, Hyderabad - 500 028 Raichur, Karnataka CIN : L13100AP1958GOI001674 Website : www.nmdc.co.in M/s. Gopal Gupta & Co. Allahabad, Uttar Pradesh SHARE TRANSFER AGENT M/s Aarthi Consultants Pvt Ltd D.No. 1-2-285, Domalguda COST AUDITORS Hyderabad - 500 029. Phone Nos. 040-27638111/27634445 Shri Prasad & Bharathula Associates Fax No. 040-27632184 Hyderabad, Andhra Pradesh Email: [email protected] 1 cmyk cmyk ANNUAL REPORT 2013-14 Achievements Turnover – Rs. 12,058 Crore Profit before Tax – Rs. 9,759 Crore (including discontinued operations) Cash Profit – Rs. 9,865 Crore Net Profit – Rs. 6,420 Crore Total Assets – Rs. 31,477 Crore Net Worth – Rs. 29,983 Crore Book Value per Share – Rs. 75.62 Earnings per Share – Rs. 16.19 Return on Capital Employed – 27% Return on Net Worth – 21% Dividend : - Interim I – 300% II – 550% - Final – - Value added per Employee – Rs. 178.54 Lakh Output per Manshift (Iron Ore) – 30.47 Tonnes 2 cmyk cmyk NMDC LIMITED Board of Directors Narendra Kothari Chairman-cum-Managing Director (w.e.f. 21.04.2014) Vinod Kumar Thakral Syedain Abbasi Govt. Nominee Director Govt. Nominee Director S.J. Sibal Dr. Noor Mohammad Vinai Kumar Agarwal Mahesh Shah Independent Director Independent Director Independent Director Independent Director Narendra K. Nanda S. Thiagarajan Subimal Bose S.K. Das Rabindra Singh Director (Technical) Director (Finance) Director (Production) Director (Commercial) Director (Personnel) Kumar Raghavan Company Secretary & ED C.S. Verma R.N. Aga Mrs. Parminder Hira Mathur D. Rath Chairman-cum-Managing Director Independent Director Independent Director Independent Director (Upto 21.04.2014) (Upto 02.12.2013) (Upto 02.12.2013) (Upto 02.12.2013) As on 28.08.2014 (date of printing) 3 cmyk cmyk ANNUAL REPORT 2013-14 Senior Management Usha Chandrashekar Atul Bhatt Ganesh Vishwakarma Chief Vigilance Officer (CVO) Executive Director (BD & CP) Executive Director (Steel) Head Office Head Office NISP L.N. Mathur C.E. Kindo Sandeep Tula K.M. Sathees Kumar Executive Director (RP & Safety) Executive Director Executive Director (P&A) Executive Director (Engg. & Proj.) Head Office DMP, Panna Head Office Head Office L.B. Singh G.S.S. Yadav Alok Kumar Mehta S.K. Verma General Manager General Manager (PC) General Manager (Proj.) General Manager Bacheli Complex Head Office Head Office Donimalai Prashant Das P.K. Satpathy Dr. R.K. Shrivastava D. Sree Rama Sastry General Manager (Technical) General Manager General Manager (Medical Services) General Manager (Finance) NISP Kirandul Complex Kirandul Complex Head Office V.V.S. Sundaram Arun Kumar Shukla V.S. Prabhakar L. Ekka G. Mallikarjuna Rao General Manager (P&A) General Manager (Env & Coal) General Manager (Engineering) General Manager (Mining) General Manager (Fin.) NISP Head Office Head Office Bacheli Complex Head Office As on 28.08.2014 (date of printing) 4 cmyk cmyk NMDC LIMITED Directors’ Report for the year 2013-14 Dear Members, Your Directors are pleased to present the 56th Annual Report on the performance of your Company, together with the Audit Report and Audited Accounts, for the year ended 31st March 2014 and the Report thereon by the Comptroller and Auditor General of India. 1.0 PERFORMANCE HIGHLIGHTS During the year under review, the Company has recorded turnover of Rs.12,058 crores, achieved Profit Before Tax (PBT) of Rs.9,759 crores (including discontinued operations) and achieved Profit after Tax (PAT) of Rs.6,420 crores. The major performance highlights are summarized as under: The Company has registered highest iron ore production and sales since inception - Crossed the 300 lakh tonnes milestone in production and sales parameter for the first time in the FY 2013-14: Achieved Iron Ore Production of 300.25 LT, highest since inception. Achieved Iron Ore Sales of 305.00 LT, highest since inception. Production of Diamonds also registered a remarkable growth of 18% at 37,082 carats over previous year. Turnover for the year under review was Rs.12,058 crores compared to Rs. 10,704 crores in the previous financial year 2012-13 recording an increase of 13%. Deposit-10/11A, Bacheli Complex, Chhattisgarh 5 cmyk cmyk ANNUAL REPORT 2013-14 Profit before tax (PBT) from continuing operations was Rs.9,761 crores compared to Rs.9,462 crores in the previous financial year 2012-13 recording an increase of 3%. Profit after tax (PAT) was Rs.6,420 crores compared to Rs.6,342 crores in the previous financial year 2012-13 recording an increase of 1%. Net worth increased to Rs.29,983 crores as on 31.03.2014, 9% higher than Rs.27,505 crores in the previous financial year 2012-13. The Company has declared Dividend of Rs.8.50 per share for FY 2013-14 which is highest since its inception. Supply of Iron Ore to domestic industries recorded 282.03 lakh tonnes as against the previous year supply of 246.72 lakh tonnes, recording an increase of 14%. Total exports of Iron Ore during the year was 22.97 lakh tonnes against 16.02 lakh tonnes in the previous financial year 2012-13 recording an increase of 43%. Sponge Iron production during the year under review was 29,734 tonnes as against previous year 36,289 tonnes. Diamond production for the year under review was 37,082 carats as against previous year 31,533 carats. Capital expenditure of Rs.2,518 crore has been incurred which is once again the highest since inception. Major packages for the 3.0 MTPA Steel Plant being set up at Nagarnar have been awarded and construction activity is going on in full swing. 2.0 PHYSICAL PERFORMANCE 2.1 Production Product Achievement Percentage of change 2012-13 2013-14 Iron Ore (lakh tonnes) 271.84 300.25 10.45% Diamond (Carats) 31,533.39 37,081.70 17.60% Sponge Iron (Tonnes) 36,289.00 29,734.36 (-)18.06% 6 cmyk cmyk NMDC LIMITED 3.0 Sales of Iron Ore Particulars Physical Value (in lakh tonnes) (Rs. in crore) Achievement % of Achievement % of 2012-13 2013-14 change 2012-13 2013-14 change Domestic 246.72 282.03 14% 9,602.72 10,268.06 7% Export through MMTC 16.02 22.97 43% 955.99 1,631.46 71% Total Sales 262.74 305.00 16% 10,558.71 11,899.52 13% 3.1 Other Sales Products Achievement 2012-13 2013-14 a) Diamond Sales (carats) 17,862.57 43,487.63 Value (Rs. in crore) 28.51 49.85 b) Sponge Iron Sales (tonnes) 37,599.54 30,572.34 Value (Rs. in crore) (Net of Excise) 73.50 56.01 c) Wind Power Sales (lakh units) – 31.05 Value (Rs. in crore) – 1.05 d) Services - Value (Rs. in crore) 37.95 45.86 e) Other Operating Revenue (Net of Excise) 5.60 5.91 4.0 FINANCIAL PERFORMANCE 4.1 Operating Results Parameter Achievement Percentage of change 2012-13 2013-14 Profit Before Tax from continuing operations (PBT) (Rs. in crore) 9,462 9,761 3% Profit After Tax (PAT) (Rs. in crore) 6,342 6,420 1% Net Worth (Rs. in crore) 27,505 29,983 9% Book value per share (Rs.) 69.37 75.62 9% Earnings per Share (Rs.) 16.00 16.19 1% 7 cmyk cmyk ANNUAL REPORT 2013-14 4.2 Profit & Dividend Sale of Iron Ore (Lakh WMT) During the year under review, your Company 300 has earned profit before tax from continuing 246.72 282.03 250 269.16 operations of Rs.9,761 crores on a turnover of 206.53 237.52 Rs.12,058 crores in comparison with those of 200 previous year's achievement of Rs.9,462 crores 150 and Rs.10,704 crores respectively. 100 The Company has declared first Interim Dividend for FY 2013-14 @ Rs.3/- per share 50 25.63 16.02 22.97 involving an outgo of Rs.1,189.41 crores. 34.32 3.85 0 Second Interim Dividend for the financial year 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 was declared @ Rs.5.50 per share Domestic Export involving an outgo of Rs.2,180.60 crores. Considering that Rs.8.50 per share has already been declared as interim dividend, no final dividend was recommended by the Board. The total dividend for the current year is Rs.3,370 crores. Share of Government is Rs.2,696 crores. 5.0 DEPOSITS The Company has not accepted any fixed deposits during the year under review. 6.0 Hon'ble Supreme Court Verdict on mining in Karnataka As stated in the Directors' Report for the year 2011-12 & 2012-13, the case on mining issues in Karnataka went on before the Green Bench of the Hon'ble Supreme Court, and it pronounced the judgement on 18.04.2013 after taking into account the interim orders it had passed in the matter, the survey report of the Joint Committee, the Final Report and the Modified Report of the Central Empowered Committee, and the submissions made by all the Parties concerned.