NMDC Ltd Directors Report.

To

The Members NMDC Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of NMDC Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2020, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the Standalone financial statement including a summary of significant accounting policies and other explanatory information (hereinafter referred to as the "standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2020, and its profit, other comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules made there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Sr. No Key Audit Matter: NISP
1 CWIP
Capital Work-in progress (CWIP) as on 31.03.2020 in the books of the unit is Rs.14,970.24 Crores, out of which Incidental expenditure during Construction (IEDC) amounts to Rs.1,897.03 Crores. Since the amount involved is substantial and the original schedule date of completion has elapsed, this is considered to be a key audit matter.
Auditors Response
We obtained a view of the management and examined the process of capitalisation. We have relied on the management expertise regarding commissioning of the Project.
Key Audit Matter : Donimalai Unit
2 Trade receivables:
As at 31st March 2020, current asset in respect of trade receivable includes receivables from monitoring committee amounting to Rs 2144.64 crores which are pending adjudication. Since it is an area of higher assessed risk of material misstatement, this is considered to be a key audit matter. (Ref. Note No.2.34.6 of financial statements)
Auditors Response
We have involved our internal experts to review the nature of the amounts recoverable, the sustainability and the likelihood of recoverability upon final resolution.
3 Mine Closure Obligation (MCO):
The company creates Mine closure obligation liability based on the present cost of closure of mining project of the latest mine. The rate of closure arrived at based on such cost is uniformly applied to other mines for arriving at the total MCO liability.
The matter was considered to be a key audit matter because there is estimate involved as per managements policy.
Auditors Response
We have involved our internal expertise to review the estimates of the rate of MCO considered by the company and whether any change was required to managements position on these matters.
Sr. No Key Audit Matter : Head Office
4 Investment in Subsidiary, Joint Ventures and Associates :
Investment in Subsidiary, Joint Ventures and Associates are valued at cost and adjusted for impairment losses after carrying out impairment testing. Since judgment of the management is required to determine if there is any indication of possible impairment, we have considered it to be a key audit matter. (Ref. Note No.2.4.1)
Auditors Response
Our audit procedure comprise of identification and understanding of the reasonableness of the principle assumptions used by the management to judge the need for impairment testing.

Emphasis of Matter

We draw your attention to the followings forming part of the financial statements without modifying our opinion in respect of:

1. Note No: 2.34.7 regarding Demand notice for Rs.1623.44 crores having been served on Baildila project by the District Collector, South Bastar, Dantewada pursuant to judgment of Honorable Supreme court of India with reference to writ petition (Civil No.114 of 2014, dated 2nd August, 2017) and the company having paid an adhoc amount of Rs.600 Crores under protest and filed writ petition in the Honble High court of Bilaspur, Chattisgarh. The case is in the hearing stage as explained in the said note.

2. Note No.2.34.11 on the Managements assessment of the impact of covid-19 pandemic and the resultant lockdown in Financial Year (FY) 2019-2020 which resulted in a loss in sale of revenue and Profit Before Tax (PBT) given in the said note. Further management assessed that no operational disruptions are anticipated in FY 2020-21.Except for scale down in operations, no material risks are anticipated necessitating their provisioning in the accounts for FY 2019-2020.

3. Note No: 2.34.12, regarding exceptional items, as directed by the Government of Karnataka in respect of Donimalai project, supplementary lease deed was executed for Kumaraswamy mines for the period from 18.10.1972 to 17.10.2022 and renewal of Mining leases in respect of Bailadila sector for the period from 2015 to 2035. It is also mentioned in the said Note regarding capitalization of certain assets which has an impact of Depreciation relating to previous years.

4. Note No: 2.34.14 on test of impairment of investment in Legacy Iron Ore Ltd (LIOL), though there is a difference between the net assets of the company and the market capitalization as at the year end, NMDC felt that, test of market capitalization for impairment of Exploration and Evaluation (E&E) assets may not be appropriate as the investment was made to maximize the cash flow by exploring the mines in line with the core activity and to reach main objective of NMDC. As such no impairment of investment in LIOL is felt necessary as explained in the said note.

5. Note No: 2.34.15 regarding test of impairment of investment and Loan to Neelachal Ispat Nigam Ltd (NINL), Cabinet Committee on Economic Affairs (CCEA) had accorded in principle approval for strategic disinvestment of 100% shareholding of NMDC and other Public Sector Undertakings (PSUs) along with transfer of Management control to a Strategic Buyer and as per the loan agreement dated 30th December 2019, the loan amount outstanding along with interest shall be paid back to NMDC as first charge from the disinvestment proceeds as per the applicable laws before payment of other liabilities of NINL. As such no impairment of investment and Loan to NINL is felt necessary as explained in the said note.

Our opinion is not modified in respect of these matters.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Business Responsibility Report, Corporate Governance Report, and Shareholder Information, but does not include the standalone financial statements and our auditors report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Managements Responsibility for the Standalone Financial Statements

The Companys Board of Directors is responsible for the matters stated in section 134(5) of the Act, with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the Indian Accounting Standards (Ind-AS) prescribed under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)0) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern.

If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matter

We did not audit the financial statements and other financial information of 6 branches included in the accompanying standalone financial statements of the Company whose financial statements/financial information reflect total assets of Rs.24,570.51 Crores as at March 31, 2020 and total revenues of Rs. 11,693.82 Crores for the year ended on that date. The financial statements and other financial information of these branches have been audited by the branch auditors whose reports have been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect of these branches, is based solely on the report of such branch auditors. Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act, based on our audit we report that;

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit;

b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.

c) The reports on the accounts of the branch offices of the Company audited under Section 143(8) of the Act by branch auditors have been sent to us and have been properly dealt with by us in preparing this report.

d) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), Statement of changes in equity and the Cash Flow Statement dealt with by this Report are in agreement with the books of account and with the returns received from the branches not visited by us.

e) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

f) The provisions of Section 164(2) of the Act, in respect of disqualification of directors are not applicable to the company, being a Government company in terms of notification no:- G.S.R.463(E) dated 5th June 2015 issued by Ministry of Corporate Affairs, Government of India.

g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure -A".

h) With respect to the other matters to be included in the auditors report in accordance with the requirements of Section 197(16) of the Act, as amended:

We are informed that the provisions of section 197 read with Schedule V of the Act, relating to managerial remuneration are not applicable to the company, being a Government Company, in terms of Ministry of Corporate Affairs notification no-G.S.R. (E) 5th June 2015.

i) With respect to the other matters to be included in the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014,as amended, in our opinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements - Refer Note 2.31 to the financial statements.

ii. The company has made provisions, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.

2. As required by the Companies (Auditors Report) Order, 2016 ("the Order") issued by the Central Government in terms of Section 143(11) of the Act, we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

3. We are enclosing our report in terms of section 143(5) of the Act, on the basis of such checks of books and records of the company as we consider appropriate and according to the information and explanations given to us, in "Annexure-C" on the directions issued by the Comptroller & Auditor General of India.

For Sagar & Associates
Chartered Accountants
(Firms Registration No: 003510S)
B Aruna
Place: Hyderabad Partner
Date: June 16, 2020 (Membership No.216454)
UDIN: 20216454AAAABW7621

"ANNEXURE - A" TO THE AUDITORS REPORT

(Referred to in paragraph 1(g) under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members of NMDC Limited of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of NMDC Limited ("the Company") as of March 31st 2020 in conjunction with our audit of the standalone financial statements of the company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the "Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under section 143 (10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2020, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For Sagar & Associates
Chartered Accountants
(Firms Registration No: 003510S)
B Aruna
Place: Hyderabad Partner
Date: June 16, 2020 (Membership No.216454)
UDIN: 20216454AAAABW7621

"ANNEXURE - B" TO THE AUDITORS REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members of NMDC Limited of even date)

(1) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets by which all the fixed assets are physically verified by the management over a period of three years. In our opinion the periodicity of the physical verification is reasonable having regard to the size of the company and the nature of fixed assets. In accordance with this program, certain fixed assets were verified during the year and no material discrepancies have been noticed on such verification.

(c) According to the information and explanations given to us and on the basis of our examination of the records of the company as to whether the title deeds of immovable properties are held in the name of the company, our observations are listed below:

Sr.No. Description of Leasehold Land Property Area in Acres/ Hectares Gross Block (Amount in Rs.) as on 31.03.2020 Issues* (if any)
KIRANDU JL
1402 LAND LEASE HOLD (General)
1. Land Lease Hold Dep-14 Mines 322.368 Hectares 41,31,186 Unit Holds Possession Letter issued by Joint Secretary, Mining resources Department Raipur.
2. Land Lease Hold Dep-14 Non Mining 506.742 Hectares 66,49,906 Unit Holds Possession Letter issued by Joint Secretary, Mining resources Department Raipur.
3. Land Lease Hold of Dep No. 14 For Float Ore 317.79 Hectares 1 Unit Holds Possession Letter issued by Chief Secretary, Mining resources Dept.M.P.
4. Land Lease Hold Dep-11C Mines & Fine Ore Dump 122.619 Hectares 21,84,430 No documents were made available for our verification, therefore we are unable to comment.
5. Cap. of 11B Expenditure Dep- 11B Mines - 1,19,13,706 No documents were made available for our verification, therefore we are unable to comment.
6. Stamp Duty & Registration Charges For 14ML - 3,66,994 Unit Holds Challan No. 5805085 on dated 28.08.2007 for the amt. paid.
7. Stamp Duty & Registration Charges For 14NML 6,76,128 Unit Holds Challan No. 5804857 on dated 28.08.2007 for the amt. paid.
8. Add. Stamp Duty & Registration Charges For 11ML 41,944 Unit Holds Challan No. 5805150 on dated 28.08.2007 for the amt. paid.
9. Mining Lease of Dep-14 17.81 Hectares 57,31,352 No documents were made available for our verification, therefore we are unable to comment.
10. Add. NPV Charges 14ML - 24,29,62,127 Unit Holds Deposit of amt. as recorded in minutes of meeting dated. 18.08.2015.
11. Additional NPV Charges for 11ML 82,15,53,636 Unit Holds Deposit of amt. as mentioned in letter of GM for 11ML forest clearance.
12. Addl. Stamp Duty for 14ML 61,60,499 Unit Holds e-Stamp dated 18.09.2015.
13. Addl. Registration Fee14ML 46,20,374 Unit Holds Challan No. 329067 dated 18.09.2015.
14. Add Reg fees 14NML 60,68,860 Unit Holds Challan No.12329241 dated 01.01.2016.
15. Addl. Stamp Duty for 14NML 80,91,813 Unit Holds e-Stamp dated 01.01.2016.
16. Addl. Stamp Duty for 14NMZ 47,58,30,738 Unit Holds Deposit of Amt. on dated 21.08.2015 as mentioned in letter of GM for 14NMZ forest clearance.
17. Stamp duty of lease hold land 11ML 874.924 hectares 34,50,12,057 Unit holds the payment receipt.
18. Reg fees of leasehold land 11ML 874.924 hectares 25,87,59,044 Unit holds the payment receipt.
19. Application fees of leasehold land 11ML 874.924 hectares 32,07,075 Unit holds the payment receipt.
20. Reg. Fees of LeaseHold Land -14ML(12.09.2015 TO 11.09.2035) 322.368 hectares 39,40,42,045 The Unit holds Possession Letter Issued by Mining Officer District South Bastar, Dantewada.
21. Stamp Duty Fee Of Lease Hold Land-14ML 322.368 hectares 52,53,89,460 The Unit holds Possession Letter Issued by Mining Officer District South Bastar, Dantewada.
22. Reg. Fee Of Lease Hold Land -14nmz(07.12.2015 To 06.12.2035) 506.742 hectares 39,65,57,615 The Unit holds Possession Letter Issued by Mining Officer District South Bastar, Dantewada.
23. Stamp Duty Fee Of Lease Hold Land -14nmz (07.12.2015 To 06.12.2035) 506.742 hectares 52,87,43,553 The Unit holds Possession Letter Issued by Mining Officer District South Bastar, Dantewada.
1502 LAND LEASE HOLD (Social Amenities!
1 Land Lease Hold (for Town Ship) Type Ii Qtr. In Kirandul 20.81 Hectares Nil No documents were made available for our verification, therefore we are unable to comment.
1401 Land Free Hold (General)
1. Land-Area in Bacheli Pargana 1.00 Acre 338 No documents were made available for our verification; therefore we are unable to comment.
2. Land-Area in Bacheli Pargana (Kameli Kala) 2.10 Acres 557 No documents were made available for our verification, therefore we are unable to comment.
3. Land- Area in Bacheli Pargana (Poro Kameli) 3.27 Acres 1,341 No documents were made available for our verification, therefore we are unable to comment.
4. Land-Area in Bacheli Pargana 2.58 Acres 958 No documents were made available for our verification, therefore we are unable to comment.
5. Land-Area in Bacheli Pargana 0.09 Acre 31 No documents were made available for our verification, therefore we are unable to comment.
6. Land-Area in Bacheli Pargana 0.80 Acre 212 No documents were made available for our verification, therefore we are unable to comment.
7. Land- Area in Bacheli Pargana 0.22 Acre 58 No documents were made available for our verification, therefore we are unable to comment.
8. Land- Area in Bacheli Pargana 5.44 Acres 2,216 No documents were made available for our verification, therefore we are unable to comment.
9. Land- Area in Kodenar Pargana 1.03 Acres 419 No documents were made available for our verification, therefore we are unable to comment.
10. Land-Area in Kodenar Pargana 0.65 Acre 271 No documents were made available for our verification, therefore we are unable to comment.
11. Land-Area in Kirandul Pargana 0.93 Acre 514 No documents were made available for our verification, therefore we are unable to comment.
12. Land-Area in Kirandul Pargana 11.50 Acres 8,525 No documents were made available for our verification, therefore we are unable to comment.
13. Land-Area in Kirandul Pargana 2.20 Acres 1,866 No documents were made available for our verification, therefore we are unable to comment.
14. Land- Area in Kirandul Pargana 4.59 Acres 3,090 -do-
15. Land- Area in BadaBacheli 1.46 Acres 384 -do-
16. Land- Area in Bada Bacheli Pargana 1.35 Acres 355 -do-
17. Land- Area in Bada Bacheli Pargana 0.32 Acre 158 -do-
18. Land- Area in Bada Bacheli Pargana 0.70 Acre 433 -do-
19. Land- Area in Bada Bacheli Pargana 1.40 Acres 663 No documents were made available for our verification, therefore we are unable to comment.
20. Land- Area in Bada Bacheli Pargana 1.81 Acres 477 No documents were made available for our verification, therefore we are unable to comment.
21. Land- Area in Bada Bacheli Pargana 1.07 Acres 382 No documents were made available for our verification, therefore we are unable to comment.
22. Land- Area in Bacheli Pargana 4.27 Acres 1,140 No documents were made available for our verification, therefore we are unable to comment.
23. Land- Area in Padapur Pargana 1.00 Acre 263 No documents were made available for our verification, therefore we are unable to comment.
24. Land- Area in Padapur Pargana 1.00 Acres 1,580 No documents were made available for our verification, therefore we are unable to comment.
25. Land- Area in Padapur Pargana 1.06 Acres 279 No documents were made available for our verification, therefore we are unable to comment.
26. Land- Area in Padapur Pargana 1.22 Acres 321 No documents were made available for our verification, therefore we are unable to comment.
27. Land- Area in Kodenar Pargana 3.48 Acres 916 No documents were made available for our verification, therefore we are unable to comment.
28. Land- Area in Jagdalpur 5.823 Hectares 1,05,778 No documents were made available for our verification, therefore we are unable to comment.
29. Land for Accumulation of Slimes 39.58 Acres 7,09,502 No documents were made available for our verification, therefore we are unable to comment.
30. Land at Madadi VIL 15.79 Acres 4,46,722 No documents were made available for our verification, therefore we are unable to comment.
1501 Land Free Hold (Social Amenities!
1 Land Freehold in Kirandul Pargana 47.18 Acres 22,569 No documents were made available for our verification, therefore we are unable to comment.
2 Land Freehold (Construction of 100 Permanent Type-C Qtrs) 75.90 Acres 46,200 No documents were made available for our verification, therefore we are unable to comment.
3 Land Free Hold for Construction of K.V. School Near Praleosh Vidyalaya 21.62 Acres 22,39,610 No documents were made available for our verification, therefore we are unable to comment.
4 BUILDINGS (Social Amenities) Gross Block-82, 04, 76, 261 Net Block- 75,87,42,071 Documents for construction have been verified. However, these buildings have been over the above land for which no title deeds have been made available for verification.
BACHELI
1402 : LAND LEASE HOLD (General)
1 Land Magazine Building & Service Centre. Location : Hiltop 755.27 Acres Nil The Unit holds Possession Letter Dated 24.01.1977 M.P. Govt. gazette Notification dated 07.06.1977
2 Land acquisition for Screening Plant 470 Acres Nil No documents were made available for verification; therefore we are unable to comment.
3 Land acquisition for Intake arrangement Location-Bacheli 28.13 Acres Nil Original Sale Deed is available for Private Land of 14.13Acres (i.e. 5.718Hec.). Mutation of Land in favour of NMDC is under process with Tehsildar, Bacheli. However, paper for 14Acres Govt. Land not available.
4 Mining Lease of DEP.-05 1334.463 Acres 53,99,96,215 The Unit holds Possession Letter Issued by Mining Officer District South Bastar, Dantewada.
5 Mining Lease of DEP.-10 764.379 Acres 29,89,00,815 The Unit holds Possession Letter Issued by Mining Officer District South Bastar, Dantewada.
6 Mining Lease of DEP.-10(FO) 352.858 Acres 13,91,64,937 The Unit holds Possession Letter Issued by Mining Officer District South Bastar, Dantewada.
7 Mining Lease of DEP.-11A 764.379 Acres 38,45,514 The Unit holds Possession Letter Issued by Mining Officer District South Bastar, Dantewada.
8 Land for Sankini Nalla W/ supply scheme for 10 & 11 a proj. 2 Hectares 1,03,528 No documents were made available for verification; therefore we are unable to comment.
9 Land for Sankini Nalla W/supply scheme for 10 & 11 a proj. 3 Hectares Nil No documents were made available for verification; therefore we are unable to comment.
10 Land acquired for Central workshop Location : Bacheli 23.39 Acres 62,594 The Unit Holds Possession Letter of Lease Deed Dated 19.07.1991 From Tahsildar Bastar M.P.
11 Stamp Duty and Registration charges for Mining Lease renewal of Deposit 5 upto 10.09.2035 153,07,77,029 The Unit holds Possession Letter Issued by Mining Officer District South Bastar, Dantewada.
12 Mining Lease Renewal of deposit 11A (stamp duty, registration fees application fees) 3,84,79,242 The Unit holds Possession Letter Issued by Mining Officer District South Bastar, Dantewada.
13 Stamp Duty and Registration charges for mining lease renewal of Deposit 10 upto 10.09.2035 69,42,48,381 The Unit holds Possession Letter Issued by Mining Officer District South Bastar, Dantewada.
LAND LEASEHOLD TOTAL 324,55,78,255
1401 - LAND FREEHOLD (Generali
1 Land for Bhansi Camp Location : Bacheli Under recon ciliation 7,840 Khasra Documents for Holding available
2 Land acquired for Const. Of Intake water supply to Screening-Plant Location : Bacheli 14 Acres 18,987 No documents were made available for our verification; therefore we are unable to comment.
3 Value of Private Land from Adivasi for Pipe Line from Nerli Dam to Screening-Plant. Location : Bacheli 1.54 Acres 7,375 No documents were made available for our verification; therefore we are unable to comment.
4 Value of Pvt. Land for Oxidation-Pond Location : Bacheli 17.77Acres 13,294 Sale Deed for the Land 17.77 Acres (i.e. 7.191Hect) available; Mutation is under process with Tehsildar.
5 4 Acres land for Rly Siding at Bacheli Location : Bacheli 4.00 Acres 5,502 Original Sale Deed is available, Mutation application for Land is under process with Tehsildar.
6 Land acquired from Adivasi for Tailing Dam near Parapur 81.35 Acres 2,11,395 Attested copy of Sale Deed obtained from Registrar, Dantewada is available; Mutation application is under process with Tehsildar.
7 Acquisition of Land for Tailing Dam and diff of Amt. paid vide JV NO/1246 1/88. Under Reconciliation 30,635 No documents were made available for our verification; therefore we are unable to comment.
8 Forest Land for Uniflowrly. Dispatch system 4.94Acres 12,40,000 Ministry of Env. And Forest (MOEF) issued Letter No. 8B/007/2002/FCW/1313 dated 07.06.2002 is available.
TOTAL 15,35,028
1 BUILDINGS (General) Gross Block - 39,13,98,545 Net Block - 32,53,58,760 No documents were made available for our verification; therefore we are unable to comment.
1502 - Land lease Hold (Social Amenities)
1 Land for Bhansi Base Camp Location : Bacheli 30.00 Acres Nil The Unit holds Possession Letter Dated 03.06.1966 M.P. Govt. Gazette Notification Dated 03.06.1966
2 Land for Bacheli town - Ship (Lease paid to DFO & cost of stamp for regn. 200.00 Acres Ni The Unit holds Possession Letter Dated 20.06.1976 M.P. Govt. Gazette Notification Dated 09.02.1976
3 Land for Bailadila Estate at Jagdalpur Location : Jagdalpur 10.00 Acres Ni No documents were made available for our verification; therefore we are unable to comment.
4 Land for Operation Township at Hill Top Location : Hilltop 307.06 Acres Ni Copy of Gazette Notification issued by issued by Madhya Pradesh Govt. Dated 07.06.1977 de- notifying the area is available.
TOTAL 0.00
1 BUILDINGS (Social Amenities ) Gross Block - 104,12,34,441 Net Block - 96,50,22,596 No documents were made available for our verification; therefore we are unable to comment.
PANNA
LAND:FREEHOLD GENERAL
1 Land NA 2,68,392 No measurement details and documents available
2 Plot No. 1236/3 Land at Panna 2.063 Acres 5,176 No comments could be offered for the reason no document were made available for our verification.
3 Plot No. 76/2 Land at Panna 1.821 Acres 3,304 No comments could be offered for the reason no document were made available for our verification.
4 Plot No. 1237/2 Land at Panna 2.063 Acres 7,370 No comments could be offered for the reason no document were made available for our verification.
5 Plot No. 1236/2 Land at Panna 15.873Acres 30,085 No comments could be offered for the reason no document were made available for our verification.
NISP
LAND: FREEHOLD GENERAL
1 Land at villages Nagarnar, kasturi, Amaguda & Maganpur 289 Acres 7,27,58,374 Freehold land in favour of NMDC Ltd.,Nagarnar. Possession Letter issued by (Kabja Praman Patra) Tahasildar, Jagdalpur
2 Land at villages Bhamani 1.82 Acres 1,36,380 Freehold land in favour of NMDC Ltd.,Nagarnar. Possession Letter issued by (Kabja Praman Patra) Tahasildar, Jagdalpur
3 Land at villages Nagarnar, Bijaput, Upanpal, Kasturi, Amaguda, Madpal, Chokawada & Maganpur 318.74 Acres 88,08,16,636 Freehold land in favour of NMDC Ltd.,Nagarnar. Possession Letter issued by (Kabja Praman Patra) Tahasildar, Jagdalpur
4 Karanpur 0.42 Acres 13,26,750 Freehold land in favour of NMDC Ltd.,Nagarnar. Possession Letter issued by (Kabja Praman Patra) Tahasildar, Jagdalpur
5 Land at villages Nagarnar, Bijaput, Upanpal, Kasturi, Amaguda, Madpal, Chokawada & Maganpur 145.95 Acres Not finalised 104.41 Freehold land for which allotment letter issued by GM, DIC in 2001.41.54 freehold land allotted by district collector to GM,DIC in 2010 for construction of steel plant
LAND: LEASEHOLD GENERAL
1 Land at Chokawada village 7.2 Acres 26,31,600 Leasehold land in favour of NMDC Ltd., Nagarnar for 30 years w.e.f 2010. Possession letter issued by (Kabja Praman Patra) Tahasildar, Jagdalpur
2 Land at village Dhanpunji 20.28 Acres 3,41,51,520 Leasehold land in favour of NMDC Ltd., Nagarnar for 30 years w.e.f 2010. Possession letter issued by (Kabja Praman Patra) Tahasildar, Jagdalpur
3 Dhanpunji 6.26 Acres 80,45,352 Leasehold land for 30 years, w.e.f 2010 for which allotment letter issued by Upper Secretary, Raipur
4 Nagarnar 9.6 Acres 7,00,000 Freehold land for which allotment letter was issued from GM DIC in 2001. Later, the matter has been challenged in Hon. HC of CG, Bilaspur, and decision is pending.
5 Jhanj, Raipur 0.60 Acres 69,02,294 Leasehold land for which possession letter has been issued by Raipur Development Authority
6 Kopaguda, Garavandkala 22.49 Acres Not finalised Leasehold land for 30 years, w.e.f 2010 for which allotment letter issued by Upper Secretary, Raipur
HEAD OFFICE
1 R&D Centre (Leased Premises) 0.12 Acres Nil Lease period completed but lease agreement to be extended.
PALONCHA
1 SIU NMDC Ltd, Paloncha 11.35 Acres Nil Not yet registered
2 SIU NMDC Ltd, Paloncha 2.08 Acres Nil During the survey 2.08 Acres found shortage out of 10.43 Acres is pending confirmation from APIIC.

(2) (a) The management has conducted the physical verification of inventory at reasonable Intervals.

(b) The discrepancies noticed on physical verification of the inventory as compared to books records which has been properly dealt with in the books of account were not material.

(3) According to the information and explanations given to us and on the basis of our examination of the records of the company, the company has not granted any loans, secured or unsecured to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly the provisions of clause (3) (iii) (a) to (c) of the order are not applicable to the company and hence not commented upon.

(4) In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees and securities as applicable.

(5) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.

(6) The Central Government has prescribed the maintenance of cost records under section 148(1) of the Act. Company is generally maintaining proper cost records as specified by the Central Government under subsection (1) of section 148 of the Companies Act, 2013.

(7) According to the information and explanations given to us, in respect of statutory dues:

(a) The Company has generally been regular in depositing undisputed statutory dues, including Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other material statutory dues applicable to it with the appropriate authorities, except the following:

i. Donimalai Unit does not collect/remit GST on

a. Liquidated damage/penalty collected from the suppliers and

b. Interest received from Monitoring Committee.

ii. Also the branch could not deduct/remit TDS on commission charges levied by Monitoring Committee

(b) There were no undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, Goods and Service Tax, Value Added Tax, Customs Duty, Excise Duty, Cess and other material statutory dues in arrears as at March 31, 2020 for a period of more than six months from the date they became payable.

(c) According to the information and explanation given to us, there are no dues of income tax, sales tax, duty of customs, duty of excise, value added tax, goods and services tax outstanding on account of any dispute, except the following:

Unit Name of Statue Nature of Dues Period Forum where Dispute is Pending Amount (In Rs. Crorel
Kirandul The Finance Act, 1994 Service Tax July 2012 - June 2014 Service tax Appellate Tribunal 17.44
The Finance Act, 1994 Service Tax 2017 - 2018 CESTAT, New delhi 0.65
MP Commercial Tax Act Commercial Act 2002-03, 2005-06, 2008-09 Dy. Commissioner of Commercial Tax (Appeal) 1.6
Nagar Palika, Kirandul Export tax 1995-96, 1996-97 2008-09 to 2019-20 Honble High Court of Bilaspur 5.72
Nagar Palika, Kirandul Interest on Export tax 1995-96, 1996-97 2008-09 to 2019-20 Honble High Court of Bilaspur 12.16
Nagar Palika, Kirandul Conservancy Tax 1997-98 to 2005-06 2014-15 to 2017-18 Honble High Court, Bilaspur 0.79
Nagar Palika, Kirandul Property Tax 2013-14 to 2016-17 Honble High Court, Bilaspur 74.4
Goods & Services Tax GST 2017-18 to 2019-20 Honble High Court, Bilaspur 8.85
DFO, Dantewada and State of Chhattisgarh Forest Permit Fee 14.06.2002 to 31.10.2012 Bilaspur bench of Honble High Court, Chhattisgarh 63.29
MMDR Act Common Cause Notice 2018-19 Honble High Court, Bilaspur 317.47
Donimalai Karnataka Forest Act 1963 Forest Development Tax 2008-09 to 2010-11 Honble Supreme Court of India 243.69
Karnataka Sales Act 1957 Tax on ERP Licenses 1991-92 1992-93 Dy. Commissioner of commercial Tax, Bellary 0.51
Central sales tax, 1956 CST on FDT FY 2011-12 JCCT, Davangere, Karnataka 0.25
Karnataka value added Tax Act 2003 VAT-on FDT 2011-12 JCCT, Davangere, Karnataka 0.47
Central Excise, Customs and Service Tax Service tax on services provided to CISF 2012-13 to 201718 Commissioner of Central Excise (Appeals) 0.27
Central Excise, Customs and Service Tax Service Tax on LD and penalty 2013 - 14 to 201718 Commissioner of Central Excise (Appeals) 0.96
Indirect taxes and customs Trans-1 Credit FY 2017-18 Super indent of central tax (CGST), Hospet 0.49
Panna Commercial Tax Sales & Entry tax 2016 - 2017 DCIT, Sagar 0.05
Commercial Tax Sales & Entry tax 2013-14 DCIT, Sagar 0.23
Bacheli Nagar Palika, Kirandul Export tax March-2010 to March-2020 Honble High Court of Chhattisgarh 1.2
Nagar Palika, Kirandul Interest on export tax March-2010 to March-2020 Honble High Court of Chhattisgarh 1.41
Nagar Palika, Kirandul Property tax 2015-16 Honble High Court of Chhattisgarh 24.85
Finance Act 1994 Service tax 2017-18 Joint Commissioner Raipur Commissionerate 1.43
Finance Act 1994 Service Tax refund on freight related to export July-2012 to June 2014 Service tax appellate tribunal 64.41
Finance Act 1994 Service tax under RCM on CISF service 2013-14 to 2016-17 Commissioner (Audit), Raipur 3.68
Goods & Service Tax Interest on GST for DMF and NMET Trans-1 Credit 1.7.2017 to 31.03.2020 2017 GST Authority 9.3
Director(C) GST 0.13
DFO, Dantewada and State of Chhattisgarh Forest permit fees 14.06.2002 to 31.10.2012 Honble High Court of Chhattisgarh 80.51
MMDR Act Common Cause Notice 2018-2019 Honble High Court of Chhattisgarh 705.97
RO Vizag The Finance Act, 1994 Service Tax 2007-2008 to 2011- 2012 Service Tax -Vishakapatam Sales Tax-Hyderabad 2.94
Total 1,645.12

(8) In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of loans and borrowing to any financial institution, banks, government or dues to debenture holders.

(9) The Company has not raised moneys by way of initial public offer or further public offer (including debt instruments) or term loans and hence reporting under clause 3 (ix) of the Order is not applicable to the Company.

(10) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.

(11) In our opinion and according to the information and explanations given to us, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.

(12) The Company is not a Nidhi Company and hence reporting under clause 3 (xii) of the Order is not applicable to the Company.

(13) In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.

(14) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures and hence reporting under clause 3 (xiv) of the Order is not applicable to the Company.

(15) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

(16) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

For Sagar & Associates
Chartered Accountants
(Firms Registration No: 003510S)
B Aruna
Partner
Place: Hyderabad (Membership No. 216454)
Date: June 16, 2020 UDIN: 20216454AAAABW7621

"ANNEXURE - C" TO THE AUDITORS REPORT

(Referred to in paragraph 3 under ‘Report on Other Legal and Regulatory Requirements section of our report to the Members of NMDC Limited of even date)

Report on the Directions of the Comptroller and Auditor General of India required under sub section 5 of Section 143 of the Companies Act, 2013 ("the Act")

S No. Point Reply
Whether the company has system in place to process all the accounting transactions through 1 IT system? If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial implications, if any, may be stated. Yes. The company has a ERP system (Oracle) to process all the accounting transactions through IT system. However, for preparation of financial statements some manual interventions are carried.
Whether there is any restructuring of an existing loan or cases of waiver /write off of debts/loans 2/interest etc. made by a lender to the company due to the companys inability to repay the loan? If yes, the financial impact may be stated. Not Applicable
Whether funds received /receivable for specific 3 schemes from central/ state agencies were properly accounted for/ utilized as per its term and conditions? List the cases of deviation. Not Applicable
Report on the Central Public Sector Enterprises (CPSEs) Specific Directions of the Comptroller and Auditor General of India required under sub section 5 of Section 143 of the Companies Act, 2013 ("the Act")
S No. Point Reply
1 Examine and Comment on whether the Company has tested the Investment made in "Legacy Iron Ore Limited, Australia (LIOL) and provided for impairment loss, if any together with appropriate disclosures. Company has done the test of impairment of investment in LIOL as per latest Financials of LIOL for the Financial Year 2019-2020. As per operational report and auditors report included in the audited annual report of LIOL no impairment of the Investment in LIOL is felt necessary for the current Financial year 2019-2020. Disclosure was made in Note No: 2.34.14 of audited financials of 2019-2020 and auditor opinion is mentioned in the audit report in "emphasis of matter".

 

For Sagar & Associates
Chartered Accountants
(Firms Registration No: 003510S)
B Aruna
Partner
Place: Hyderabad (Membership No. 216454)
Date: June 16, 2020 UDIN: 20216454AAAABW7621