Orissa Minerals Development Company Ltd Management Discussions

? SWOT ANALYSIS

STRENGTH

WEAKNESS

? OMDC is one of the earliest mining companies in India having decades of experience in scientific mining. ? Has rich Reserve of Iron & Manganese Ore. ? Lease validity for Belkundi, Bhadrasahi & Bagiaburu mines are up to 15.08.2026, 30.09.2030 & 10.10.2041 respectively. ? Mining operation in Bagiaburu started in December2023. ? Belkundi mine is having Forest Clearance & Public Hearing (PH) was conducted successfully on 17.08.2024. OMDC is in the process of obtaining EC.

? Honble Supreme Court vide judgment dated 17.05.2025 stated that Order of the State of Odisha rejecting the request for renewal of Kolha-Roida lease is upheld and it is also clarified that applications filed for renewal of Thakurani and Dalki leases be treated as rejected or dismissed. ? Shortage of statutory manpower as there is no recruitment since 2012. Employees Salary is of 1997 pay scale.

OPPORTUNITIES

THREATS

? Proposal for grant of EC to Belkundi Mine was examined in the 43rd meeting of EAC (Non-Coal Mining) held on 23.04.2025. ? EAC vide MoM dated 03.05.2025 has sought additional details on 15 (Fifteen) nos. of points (ADS) and deferred the proposal. ? OMDC furnished compliances to the ADS and uploaded the same in Parivesh Portal on 21.05.2025. ? Proposal for grant of EC was delisted by MoEF & CC on 31.05.2025 citing OM F.No.IA3-3/7/2024-IAIII (Part) (E-254652) dated 26.05.2025 invoking judgment of Honble Supreme Court of India dated 16.05.2025 in WP (Civil) 1394/2023 in the matter of Vanashakti vs. Union of India. ? Vide meeting dated 27.07.2025 among The Secretary , MoS; The Secretary, MoEF & CC and The Solicitor General of India, it was decided to file a Review Petition before Honble Supreme Court in the above case pleading orders for re-listing of the proposal. ? Mining operation in Belkundi Mines is expected to resume in FY 2025-26subject to obtaining EC and other statutory clearances.

? OMDC is running with acute financial crisis and salaries to the employees are not disbursed regularly. ? Disposal of various Court / Arbitration Cases lying in various Courts/Revisional Authorities related to mining lease/financial claims. ? Risk factors such as high inflation, rising energy prices, uncertain international environment, change in government policies could affect the Companys performance adversely. ? Public Hearing (PH) scheduled to be held on 26.03.2025 was postponed by Collector, Keonjhar vide letter dated 25.03.2025 Extension of Mining Lease of Belkundi Mines for another 20 years after 15.08.2026.

? PERFORMANCE

After obtaining all required statutory clearances, mining operation of Bagiaburu has resumed in December2023. Owing to non-availability of statutory clearances, other two mines have remained non-operational. The company is vigorously pursuing the matter for obtaining statutory clearance with the state government and central government authorities, so as to resume its mining operations at an early date. Public Hearing of Belkundi mines was conducted successfully on 17.08.2024.

? OUTLOOK

Public Hearing of Belkundi mines was conducted successfully on 17.08.2024. Co-terminus Forest Clearance (FC) for Belkundi mines was granted by MoEF & CC, Govt. of India.

Exploring the possibility for enhancement of production capacity in near future through upgradation in technological aspects is incorporated in the MDO contract for the operationalization of Belkundi mines.

Exploration work to access the minable reserves at Bagiaburu Mine is under progress which will enable to enhance capacity.

? INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

OMDC has put in place all the necessary internal controls which are adequate and effective.

? DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE OF THE COMPANY

The financial performance of the Company is placed here in below:

? SALES FROM OPERATIONS AND PROFIT ARE SHOWN IN TABLE I

The details of Sales from operation and Profit after tax for the financial year 2024-25as compared to previous financial year 2023-24 is represented in Table I.

Table-1: Sales from Operations ( in Rs lakhs)
	2024-25	2023-24
Sales*	6461.59	8227.92
Other Income	638.58	710.20
Total Expenses	11940.57	9469.00
Profit before tax	(4840.40)	(530.88)
Profit after tax	(4022.39)	281.91

It can be observed from the above table that Company Loss before tax was Rs. (4840.40) Lakhs as compared to Rs. (530.88) Lakhs for previous year. Loss after tax was Rs. (4022.39) Lakhs as compared to Profit of Rs. 281.91 Lakhs during previous year.

? APPROPRIATION

During the year 2024-25, the Company did not transfer any amount to General Reserve out of Profit and Loss.

? DIVIDEND

The Board of Directors of the Company did not recommend any dividend for the year ended 31st March, 2025 due to accumulated losses incurred by the company.

? INDUSTRIAL RELATION AND HUMAN RESOURCE MANAGEMENT

Employees on roll of the Company as on 31stMarch, 2024 had been 178 as compared to 212 as on 31stMarch, 2025.

Strength of SC/ST/OBC as on 31stMarch, 2025 is

Total No. of Employees	178 nos. (Exe. 53 & Non-Exe.- 125)
Scheduled Caste among them	21 nos. (Exe. 5 & Non-Exe. 16)
Scheduled Tribes among them	26 nos. (Exe. 0 & Non-Exe. 26)
OBC	48 nos. (Exe. 13 & Non-Exe. 31)
Total of SC, ST and OBC	91 nos.

In order to have continued cordial industrial relation, a system of Permanent Negotiation Mechanism (PNM) has been introduced to have meetings with Unions at fixed intervals, for creating the better coordination between the Management &Workers; for smooth functioning of the organization and expeditious decisions for the settlement of grievances. Training program is taken up to enhance the skill-sets of the employees in alignment with their respective roles as required.

? ENVIRONMENTAL PROTECTION AND CONSERVATION, TECHNOLOGICAL CONSERVATION, RENEWAL ENERGY DEVELOPMENTS, FOREIGN EXCHANGE CONSERVATION

? Environmental Protection and Conservation: The Company is taking measures to protect the environment and conserve the resources as per the recently developed Corporate Environment Policy of the Company.

? Energy Conservation: The Company consumes purchased electricity. Adequate steps are taken by the Company to reduce the electricity consumption.

? Technology absorption: The Company has not absorbed any new technology during the year.

? Foreign Exchange Earnings and Outgo: There was no transaction in foreign exchange during the year.

? CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) has been an integral part of our business philosophy and your Company has been following it much before it became a norm for the corporate sector in India. As the Average net profits of OMDC for the last three years is negative, no amount was allocated to CSR during FY 2024-25.

However, Your Company is focused in areas such as Health, Education, Employment generation, Empowerment of women and Drinking Water etc. which are enumerated under schedule VII of Companies Act, 2013.

? CAUTIONARY STATEMENT

Statements made in the Directors Report and Report on Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations, predictions etc may be "forward-looking statements" within the meaning of applicable laws, rules and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand/ supply and price conditions in the domestic markets in which the Company operates, changes in the Government regulations, tax laws, litigation, industrial relations and other statutes and incidental factors. Readers are cautioned not to place undue conviction on the forward-looking statements.