MIRA INFORM REPORT

Report No. :	502819
Report Date :	10.04.2018

IDENTIFICATION DETAILS

Name :	NMDC LIMITED
Formerly Known As :	NATIONAL MINERAL DEVELOPMENT CORPORATION LIMITED NATIONAL MINERAL DEVELOPMENT CORPORATION PRIVATE LIMITED
Registered Office :	Khanjhi Bhavan, 10-3-311 / A, Castle Hills, Masab Tank, Hyderabad-500028, Andhra Pradesh
Tel. No.:	91-40- 23538713-21 (9 Lines) / 23538711
Country :	India
Financials (as on) :	31.03.2017
Date of Incorporation :	15.11.1958
Com. Reg. No.:	01-001674
Capital Investment / Paid-up Capital :	INR 3163.900 Million
CIN No.: [Company Identification No.]	L13100AP1958GOI001674
IEC No.:	Not Divulged
TAN No.: [Tax Deduction & Collection Account No.]	Not Available
GSTN : [Goods & Service Tax Registration No.]	Not Divulged
PAN No.: [Permanent Account No.]	Not Divulged
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.
Line of Business :	The subject is engaged in Exploration and Production of Iron Ore, Copper along with Diamond, production and sale of Sponge Iron and Generation and sale of Wind Power. [Confirmed by Management]
No. of Employees :	5490 (Approximately)

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A++

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default

Maximum Credit Limit :	USD 640000000
Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Exist
Comments :	Subject is a state-controlled mineral producer of the Government of India. It is owned by the Government of India and is under administrative control of the Ministry of Steel. It was incorporated in the year 1958 and is engaged in the exploration of oil and minerals. It is an old and well-established company having an excellent track record. For the financial year 2017, the company has increased its revenue from operation as compared to previous year and maintained healthy profit margin of 29.32%. The rating draw comfort from the strong financial profile of the company marked by a robust capital structure and debt protection metrics. The ratings continue to reflect the strategic importance and expectation of continued support from the Government of India, over 30 years of reserves in existing mines and Valid Mining Licences. Share price are quoted high on stock exchange (Share Price of INR 132 with face value of INR 01). Trade relations are reported as fair. Payments are reported to be regular and as per commitments. In view of strong financial base and established market position, the company can be considered good for normal business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

EXTERNAL AGENCY RATING

Rating Agency Name	INDIA RATING
Rating	Bank Facility = AAA
Rating Explanation	Highest degree of safety and carry lowest credit risk.
Date	29.12.2016

Rating Agency Name	INDIA RATING
Rating	Non Fund Based Limit = A1+
Rating Explanation	Very strong degree of safety and carry lowest credit risk
Date	29.12.2016

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2016.

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 10.04.2018

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

INFORMATION PARTED BY [GENERAL DETAILS]

Name :	Mr. Mahendra Kashyap
Designation :	Production Department Manager
Contact No.:	91-7857-230356
Date :	09.04.2018

LOCATIONS

Registered/ Correspondence: Office:	Khanjhi Bhavan, 10-3-311 / A, Castle Hills, Masab Tank, Hyderabad-500028, Andhra Pradesh, India
Tel. No.:	91-40- 23538713-21 (9 Lines) / 23538711
Mobile No.:	91-9425266438 [Mr. Narayana Asampally]
Fax No.:	91-40-23538711
E-Mail :	ims@nmdc.co.in hois@nmdc.coin cs_pardha@nmdc.co.in
Website :	www.nmdc.co.in
Location :	Owned
Locality :	Commercial
Factories :	PLANT / MINE LOCATIONS: The mines / units of the Company are located in the following locations: · Bailadila Iron Ore Mine Kirandul Complex P.O. Kirandul District: Dantewada, Chhattisgarh, India · Bailadila Iron Ore Mine Bacheli Complex P.O. Bacheli District, Dantewada Chhattisgarh - 494553, India · Donimalai Iron Ore Mine Donimalai Township District Bellary - 583 118, Karnataka ,India · Diamond Mining Project Majhgawan, Panna - 488 001, Madhya Pradesh, India · Sponge Iron Unit, NMDC Limited, SIIL Campus, Paloncha - 507 154, District Khammam, Andhra Pradesh, India · Post Nagarnar District Bastar-494001, Chhattisgarh, India

DIRECTORS

AS ON: 31.03.2017

Name :	Mr. Ramakishan Ramakishan Tanugula
Designation :	Director
Address :	Plot No. 62, Maithri Enclave, Near Tulasi Gardens, Yapral, Secunderabad, Hyderabad-500087, Telangana, India
Date of Appointment :	17.11.2014
DIN No.:	01312449
Name :	Bhagwati Devi Baldwa
Designation :	Director
Address :	8-2-684/11/2, Road No. 12 Banjara Hills Hyderabad 500034, Andhra Pradesh, India
Date of Appointment :	13.11.2015
DIN No.:	01537251
Name :	Mr. Arun Kumar Srivastava
Designation :	Director
Address :	B 3/12, Vishal Khand 3, Lucknow 226010, Uttar Pradesh, India
Date of Appointment :	13.11.2015
DIN No.:	01940109
Name :	Mr. Pradip Bhargava
Designation :	Director
Address :	C-2/21 Charimli, Bhopal-462016, Madhya Pradesh, India
Date of Appointment :	27.11.2015
DIN No.:	01986827
Name :	Mr. Devinder Singh Ahluwalia
Designation :	Director
Address :	Dda Flat No. 17, Pocket-Mgi Block-M, Vikash Puri, New Delhi-110018, India
Date of Appointment :	29.09.2015
DIN No.:	02164448
Name :	Mr. Narendra Kumar Nanda
Designation :	Wholetime Director
Address :	F.No.101, Hno. 8-1-305 & 306, Anand Brindavan Apts Puranbagh, Tolichowki, Golconda Hyderabad 500008, Telangana, India
Date of Appointment :	07.12.2008
DIN No.:	02455894
Name :	Mr. Rajesh Kumar Mangal
Designation :	Director
Address :	482, Mahavir Nagar - Pratham, Durgapura, Ward No. 21, Jaipur-302018, Rajasthan, India
Date of Appointment :	13.11.2015
DIN No.:	03033081
Name :	Mr. Baijendra Kumar Narayanan Nair
Designation :	Managing Director
Address :	D-I/5 Officers Colony Devendranagar Raipur 492001, Chhattisgarh, India
Date of Appointment :	06.09.2017
DIN No.:	03289526
Name :	Mr. Ashok Kumar Angurana
Designation :	Additional Director
Address :	26, Road No 57 Punjabi Bagh (West), New Delhi-110026, India
Date of Appointment :	16.11.2017
DIN No.:	06600185
Name :	Mr. Pradip Satpathy Kumar
Designation :	Director
Address :	Qtr No. V/2, Biom Bacheli Complex Po-Bacheli, Dantewada-494553, Madhya Pradesh, India
Date of Appointment :	13.12.2014
DIN No.:	07036432
Name :	Mr. Sunil Barthwal
Designation :	Nominee Director
Address :	D-I/84, Satya Marg Chanakya Puri New Delhi 110021, India
Date of Appointment :	11.10.2017
DIN No.:	07066759
Name :	Mr. Sandeep Tula
Designation :	Director
Address :	Flat No.308, Vijaya Sree Apartment Santosh Nagar Colony, Mehadipatnam, Asif Nagar, Hyderabad-500028, Telangana, India
Date of Appointment :	08.08.2016
DIN No.:	07261884
Name :	Mr. Shyam Murari Nigam
Designation :	Director
Address :	Block E, Flat No.4-1, Sector -13 R.K. Puram, New Delhi-110066, India
Date of Appointment :	27.11.2015
DIN No.:	07355272
Name :	Mrs. Syamal Kumar Sarkar
Designation :	Director
Address :	C-11/125, Satya Marg Chanakya Puri, New Delhi-110021, India
Date of Appointment :	27.11.2015
DIN No.:	07387840
Name :	Mrs. Saraswati Prasad
Designation :	Director
Address :	D-9, 9th Floor, Tower 9 New Moti Bagh, Delhi-110023, India
Date of Appointment :	08.02.2017
DIN No.:	07729788

KEY EXECUTIVES

Name :	Mr. Devinder Singh Ahluwalia
Designation :	Chief Finance Officer
Address :	DDA Flat No. 17, Pocket-Mgi Block-M, Vikash Puri, New Delhi-110018, India
Date of Appointment :	01.01.2015
PAN No.:	ABZPA3153E
Name :	Mr. Akella Sri Pardha Saradhi
Designation :	Company Secretary
Address :	10-3-311/A, NMDC Ltd Khanij Bhawan, Masabtank, Hyderabad-500028, Telangana, India
Date of Appointment :	22.01.2015
PAN No.:	ADNPA7837P
Name :	Mr. Mahendra Kashyap
Designation :	Production Department Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON: 31.12.2017

Category of shareholder	Total nos. shares held	Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2)
(A) Promoter & Promoter Group	2371126192	74.94
(B) Public	792764282	25.06
Grand Total	3163890474	100.00

Statement showing shareholding pattern of the Promoter and Promoter Group

Category of shareholder	Total nos. shares held	Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of (A+B+C2)
A1) Indian		0.00
Central Government/ State Government(s)	2371126192	74.94
PRESIDENT OF INDIA	2371126192	74.94
Sub Total A1	2371126192	74.94
A2) Foreign		0.00
A=A1+A2	2371126192	74.94

Statement showing shareholding pattern of the Public shareholder

Category & Name of the Shareholders	Total no. shares held	Shareholding % calculated as per SCRR, 1957 As a % of (A+B+C2)
B1) Institutions		0.00
Mutual Funds/	24753778	0.78
Foreign Portfolio Investors	113790310	3.60
Financial Institutions/ Banks	104036630	3.29
LIC OF INDIA PENSION PLUS MIXED FUND	63892411	2.02
Insurance Companies	421369958	13.32
LIFE INSURANCE CORPORATION OF INDIA	389938677	12.32
Any Other (specify)	694515	0.02
Foreign Institutional Investors	694515	0.02
Sub Total B1	664645191	21.01
B2) Central Government/ State Government(s)/ President of India		0.00
B3) Non-Institutions		0.00
Individual share capital up to INR 0.200 Million	90914167	2.87
Individual share capital in excess of INR 0.200 Million	4233074	0.13
NBFCs registered with RBI	269355	0.01
Employee Trusts	51657	0.00
Any Other (specify)	32650838	1.03
NRI – Non- Repat	1477995	0.05
NRI – Repat	4164788	0.13
Bodies Corporate	17703616	0.56
Clearing Members	2920351	0.09
Trusts	6379309	0.20
Unclaimed or Suspense or Escrow Account	1840	0.00
IEPF	2939	0.00
Sub Total B3	128119091	4.05
B=B1+B2+B3	792764282	25.06

Details of Shares which remain unclaimed for Public

Serial No.	Number of shareholders	Outstanding shares held in demat or unclaimed suspense account	voting rights which are frozen	Disclosure of notes on shares which remain unclaimed for public shareholders
1	23	1840	1840

BUSINESS DETAILS

Line of Business :	The subject is engaged in Exploration and Production of Iron Ore, Copper along with Diamond, production and sale of Sponge Iron and Generation and sale of Wind Power. [Confirmed by Management]
Brand Names :	Not Available
Agencies Held :	Not Available
Exports :	Not Available
Imports :	Not Available
Terms :
Selling :	Advance Payments and Others [RTGS, NEFT]
Purchasing :	Advance Payments and Others [RTGS, NEFT]

PRODUCTION STATUS: [NOT AVAILABLE]

GENERAL INFORMATION

Suppliers :

Reference:	Not Divulged
Name of the Person (Designation):	--
Contact Number:	--
Since how long known:	--
Maximum limit dealt:	--
Experience:	--
Remark	--

Customers :

Wholesaler, End Users and Manufacturers

· Rashtriya Ispat Nigam Limited, (VSP)

· KIOCL Limited

· Essar Steels Limited

· JSW Steel Limited

· Ispat Industries Limited

· CG based Sponge Iron Units

· Welspun Max Steel Limited

· Visveswaraya Iron & Steel Plant

No. of Employees :

5490 (Approximately)

Bankers :

Bank Name:	Canara Bank
Branch:	--
Person Name (with Designation):	--
Contact Number:	--
Name of Account Holder:	--
Account Number:	--
Account Since (Date/ Year of A/c Opening):	--
Average Balance Maintained (Optional):	--
Credit Facilities Enjoyed (CC/OD/Term Loan):	--
Account Operation:	--
Remarks:	--

· State Bank of India

Facilities :

SECURED LOANS	31.03.2017 (INR In Million)	31.03.2016 (INR In Million)
LONG-TERM BORROWINGS
Loan against FDs	0.000	14969.500
Total	0.000	14969.500

Auditors :
Name :	Venugopal and Chenoy Chartered Accountants
Statutory Auditors :
Name:	Tej Raj and Pal Chartered Accountants
Address:	Hyderabad, Telangana, India
Branch Auditors :
Name:	O P Totla and Company Chartered Accountants
Address:	Raipur, Chhattisgarh, India
Name:	Vijay Panchappa and Company Chartered Accountants
Address:	Dharwad, Karnataka, India
Name:	Amit OM and Company Chartered Accountants
Address:	Allahabad, Uttar Pradesh, India
Secretarial Auditors :
Name:	D. Hanumanta Raju and Company Chartered Accountants
Address:	Hyderabad, Telangana, India
Cost Auditors :
Name:	Prasad Bharathula and Associates Cost Accountants
Address:	Hyderabad, Telangana India
Memberships :	Not Available
Collaborators :	Not Available
Subsidiary Companies:	· Legacy Iron Ore Limited · J & K Mineral Development Corporation Limited · NMDC Power Limited · Karnataka Vijaynagar Steel Limited · NMDC Steel Limited · Jharkhand Kolhan Steel Limited · NMDC-SARL, Madagaskar (Under closure)
Joint Venture Companies :	· Kopano-NMDC Minerals (Proprietary) Limited · Jharkhand National Mineral Development Corporation Limited · NMDC-CMDC Limited. Raipur · NMDC-SAIL Limited · Bastar Railway Private Limited
Associate Companies :	· Romelt-Sail (India) Limited* · International Coal Ventures Private Limited · Krishnapatnam Railway Company Limited · Chhattisgarh Mega Steel Limited · Neelachal Ispat Nigam Limited

* In the process of liquidation. Public notice has been issued by GOI, Ministry of Corporate affairs vide their notice dated 27.04.2017 to remove/strike off the name of the Company from the Registrar of Companies unless a cause is shown to the contrary within 30 days from the date of notice.

CAPITAL STRUCTURE

AS ON: 31.03.2017

Authorised Capital:

No. of Shares	Type	Value	Amount
4000000000	Equity Shares	INR 1/- each	INR 4000.000 Million

Issued, Subscribed & Paid-up Capital:

No. of Shares	Type	Value	Amount
3964716000	Equity Shares	INR 1/- each	INR 3964.700 Million
800825526	Repurchase of Equity shares	INR 1/- each	INR 800.800 Million
	Total		INR 4765.500 Million

ADDL. NOTES:

No new shares were issued during the current year.

Board of Directors of the Company in its meeting held on 7th June 2016 approved buyback of 80,08,25,526 equity shares @ INR 94/- for an aggregate consideration of INR 75277.600 million. The buyback offer of shares was closed on 30th September 2016 and the process for buyback was been completed on 10th October 2016. The buyback offer was fully subscribed.

Terms/Rights attached to equity shares: “The Company has only one class of equity shares having par value of INR 1/- each and each holder of equity shares is entitled to one vote per share.

The details of shares in the company held by each shareholder holding more than 5% shares:

Name of the Share holders	31-Mar-2017
	% of share Holding	Number of shares
President of India	74.94	2371126192
LIC of India (incl all schemes)	12.32	389938677

FINANCIAL DATA

[all figures are in INR Million]

ABRIDGED BALANCE SHEET [STANDALONE]

SOURCES OF FUNDS	31.03.2017	31.03.2016	31.03.2015
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	3163.900	3964.700	3964.700
(b) Reserves & Surplus	222025.500	287211.200	319009.000
(c) Money received against share warrants	0.000	0.000	0.000
(2) Share Application money pending allotment	0.000	0.000	0.000
Total Shareholders’ Funds (1) + (2)	225189.400	291175.900	322973.700
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000	0.000
(c) Other long term liabilities	0.000	0.000	0.000
(d) long-term provisions	6112.000	3534.500	3133.300
Total Non-current Liabilities (3)	6112.000	3534.500	3133.300
(4) Current Liabilities
(a) Short term borrowings	0.000	14969.500	0.000
(b) Trade payables	1987.800	3244.200	2262.400
(c) Other current liabilities	20671.100	13096.700	12345.700
(d) Short-term provisions	3060.300	692.800	628.500
Total Current Liabilities (4)	25719.200	32003.200	15236.600
TOTAL	257020.600	326713.600	341343.600
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	17307.600	16499.600	12279.200
(ii) Intangible Assets	2220.500	2684.900	905.500
(iii) Capital work-in-progress	118313.600	97228.800	77188.200
(iv) Intangible assets under development	0.000	0.000	0.000
(b) Non-current Investments	7269.800	6954.100	5619.300
(c) Deferred tax assets (net)	4533.600	2631.700	1778.800
(d) Long-term Loan and Advances	924.800	862.100	843.000
(e) Other Non-current assets	20601.200	12206.900	21661.800
Total Non-Current Assets	171171.100	139068.100	120275.800
(2) Current assets
(a) Current investments	0.000	0.000	0.000
(b) Inventories	5400.400	6220.500	6827.300
(c) Trade receivables	10435.200	7960.700	9478.200
(d) Cash and cash equivalents	52892.800	147635.700	184431.400
(e) Short-term loans and advances	0.000	0.000	0.000
(f) Other current assets	17121.100	25828.600	20330.900
Total Current Assets	85849.500	187645.500	221067.800
TOTAL	257020.600	326713.600	341343.600

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2017	31.03.2016	31.03.2015
	SALES
		Revenue from Operations	88296.400	64572.700	123564.100
		Other Income	9088.100	18092.500	22654.000
		TOTAL	97384.500	82665.200	146218.100
Less	EXPENSES
		Cost of Materials Consumed	53.700	97.300	276.700
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	988.700	631.200	(169.900)
		Employees benefits expense	8855.800	6461.800	7000.900
		Other expenses	15219.400	12243.200	8203.500
		Excise duty	15.000	14.700	0.000
		Consumption of stores & spares	2640.800	2756.100	3201.700
		Power and electricity	876.000	676.700	642.200
		Repairs & maintenance	1122.200	1192.600	1041.400
		Royalty & other levies	15247.400	8823.100	13901.100
		Selling expenses	7259.300	4171.200	11683.000
		Exceptional items	0.000	1847.800	1130.100
		TOTAL	52278.300	38915.700	46910.700
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		45106.200	43749.500	99307.400
Less	FINANCIAL EXPENSES		207.600	655.900	0.000
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		44898.600	43093.600	99307.400
Less/ Add	DEPRECIATION/ AMORTISATION		1961.800	2166.000	1622.300
	PROFIT/ (LOSS) BEFORE TAX		42936.800	40927.600	97685.100
Less	TAX		17045.400	13805.400	33466.500
	PROFIT/ (LOSS) AFTER TAX		25891.400	27122.200	64218.600
	IMPORTS
		Components & Spare part	168.200	141.300	114.000
		Capital Goods	1697.700	2188.100	2152.400
	TOTAL IMPORTS		1865.900	2329.400	2266.400
	Earnings/ (Loss) Per Share (INR)		7.22	6.84	16.2

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Maturities of Long term debt	NA	NA	NA
Cash generated from operations	37222.000	35633.500	70386.200
Net Cash Flow from operating activities	21333.000	18617.400	40072.200

KEY RATIOS

EFFICIENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Average Collection Days (Sundry Debtors / Income * 365 Days)	43.14	45.00	28.00
Account Receivables Turnover (Income / Sundry Debtors)	8.46	8.11	13.04
Average Payment Days (Sundry Creditors / Purchases * 365 Days)	13511.12	12169.92	2984.37
Inventory Turnover (Operating Income / Inventories)	8.35	7.03	14.55
Asset Turnover (Operating Income / Net Fixed Assets)	0.33	0.38	1.10

LEVERAGE RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Debt Ratio ((Borrowing + Current Liabilities) / Total Assets)	0.10	0.10	0.04
Debt Equity Ratio (Total Liability / Networth)	0.00	0.05	0.00
Current Liabilities to Networth (Current Liabilities / Net Worth)	0.11	0.11	0.05
Fixed Assets to Networth (Net Fixed Assets / Networth)	0.61	0.40	0.28
Interest Coverage Ratio (PBIT / Financial Charges)	217.27	66.70	#DIV/0!

PROFITABILITY RATIOS

PARTICULARS		31.03.2017	31.03.2016	31.03.2015
Net Profit Margin ((PAT / Sales) * 100)	%	29.32	42.00	51.97
Return on Total Assets ((PAT / Total Assets) * 100)	%	10.07	8.30	18.81
Return on Investment (ROI) ((PAT / Networth) * 100)	%	11.50	9.31	19.88

SOLVENCY RATIOS

PARTICULARS	31.03.2017	31.03.2016	31.03.2015
Current Ratio (Current Assets / Current Liabilities)	3.34	5.86	14.51
Quick Ratio ((Current Assets – Inventories) / Current Liabilities)	3.13	5.67	14.06
G-Score Ratio Financial (Networth / Total Assets)	0.88	0.89	0.95
G-Score Ratio Debt (Debts / Equity Capital)	0.00	3.78	0.00
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities)	3.34	5.86	14.51

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

STOCK PRICES

Face Value	INR 1.00/-
Market Value	INR 120.00/-

FINANCIAL ANALYSIS

[all figures are in INR Million]

DEBT EQUITY RATIO

Particulars	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Share Capital	3964.700	3964.700	3163.900
Reserves & Surplus	319009.000	287211.200	222025.500
Share Application money pending allotment	0.000	0.000	0.000
Net worth	322973.700	291175.900	225189.400
long-term borrowings	0.000	0.000	0.000
Short term borrowings	0.000	14969.500	0.000
Total borrowings	0.000	14969.500	0.000
Debt/Equity ratio	0.000	0.051	0.000

YEAR-ON-YEAR GROWTH

Year on Year Growth	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	123564.100	64572.700	88296.400
		(47.742)	36.740

NET PROFIT MARGIN

Net Profit Margin	31.03.2015	31.03.2016	31.03.2017
	INR In Million	INR In Million	INR In Million
Sales	123564.100	64572.700	88296.400
Profit/ (Loss)	64218.600	27122.200	25891.400
	51.97%	42.00%	29.32%

ABRIDGED BALANCE SHEET [CONSOLIDATED]

SOURCES OF FUNDS	31.03.2017	31.03.2016
I. EQUITY AND LIABILITIES
(1)Shareholders' Funds
(a) Share Capital	3163.900	3964.700
(b) Reserves & Surplus	222658.200	287836.200
(c) Money received against share warrants	0.000	0.000
Non-controlling interest	153.900	168.500
(2) Share Application money pending allotment	0.000	0.000
Total Shareholders’ Funds (1) + (2)	225976.000	291969.400
(3) Non-Current Liabilities
(a) Long-term borrowings	0.000	0.000
(b) Deferred tax liabilities (Net)	0.000	0.000
(c) Other long term liabilities	0.000	0.000
(d) long-term provisions	6113.200	3535.100
Total Non-current Liabilities (3)	6113.200	3535.100
(4) Current Liabilities
(a) Short term borrowings	0.000	14969.500
(b) Trade payables	1989.000	3245.200
(c) Other current liabilities	20697.800	13144.800
(d) Short-term provisions	3060.600	693.800
Total Current Liabilities (4)	25747.400	32053.300
TOTAL	257836.600	327557.800
II. ASSETS
(1) Non-current assets
(a) Fixed Assets
(i) Tangible assets	17333.900	16527.700
(ii) Intangible Assets	2678.500	3118.000
(iii) Capital work-in-progress	118554.500	97470.800
(iv) Intangible assets under development	0.000	0.000
(b) Non-current Investments	6123.000	5916.400
(c) Deferred tax assets (net)	4533.600	2631.800
(d) Long-term Loan and Advances	924.800	862.500
(e) Other Non-current assets	26987.600	18730.900
(f)Goodwill	938.900	938.900
Total Non-Current Assets	178074.800	146197.000
(2) Current assets
(a) Current investments	0.000	0.000
(b) Inventories	5400.400	6220.500
(c) Trade receivables	10435.200	7960.700
(d) Cash and cash equivalents	53205.100	148061.400
(e) Short-term loans and advances	0.000	0.000
(f) Other current assets	10721.100	19118.200
Total Current Assets	79761.800	181360.800
TOTAL	257836.600	327557.800

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2017	31.03.2016
	SALES
		Revenue from Operations	88296.400	64572.700
		Other Income	9101.700	18106.800
		TOTAL	97398.100	82679.500
Less	EXPENSES
		Cost of Materials Consumed	53.700	97.300
		Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	988.700	631.200
		Employees benefits expense	8887.500	6498.100
		Other expenses	15255.500	12286.900
		Excise duty	15.000	14.700
		Consumption of stores & spares	2640.800	2756.100
		Power and electricity	876.500	676.900
		Repairs & maintenance	1123.700	1193.900
		Royalty & other levies	15247.400	8826.800
		Selling expenses	7259.300	4171.200
		Exceptional items	0.000	1847.800
		TOTAL	52348.100	39000.900
	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION		45050.000	43678.600
Less	FINANCIAL EXPENSES		207.800	656.500
	PROFIT/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION		44842.200	43022.100
Less/ Add	DEPRECIATION/ AMORTISATION		1966.500	2180.200
	PROFIT/ (LOSS) BEFORE TAX		42875.700	40841.900
Less	TAX		17045.400	13805.400
	PROFIT/ (LOSS) FOR THE YEAR		25830.300	27036.500
	Share of non-controlling interest (Loss)		11.500	20.200
	Share of Losses of Associates		(403.200)	(1595.700)
	PROFIT AFTER ADJUSTING MINORITY INTEREST AND SHARE OF LOSS OF ASSOCIATES		25438.600	25461.000
	Earnings/ (Loss) Per Share (INR)		7.10	6.42

LEGAL CASES

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check list by info agents	Available in Report (Yes/No)
1	Year of establishment	Yes
2	Constitution of the entity -Incorporation details	Yes
3	Locality of the entity	Yes
4	Premises details	No
5	Buyer visit details	--
6	Contact numbers	Yes
7	Name of the person contacted	Yes
8	Designation of contact person	Yes
9	Promoter’s background	Yes
10	Date of Birth of Proprietor / Partners / Directors	No
11	Pan Card No. of Proprietor / Partners	No
12	Voter Id Card No. of Proprietor / Partners	No
13	Type of business	Yes
14	Line of Business	Yes
15	Export/import details (if applicable)	No
16	No. of employees	Yes
17	Details of sister concerns	Yes
18	Major suppliers	No
19	Major customers	Yes
20	Banking Details	Yes
21	Banking facility details	Yes
22	Conduct of the banking account	--
23	Financials, if provided	Yes
24	Capital in the business	Yes
25	Last accounts filed at ROC, if applicable	Yes
26	Turnover of firm for last three years	Yes
27	Reasons for variation <> 20%	--
28	Estimation for coming financial year	No
29	Profitability for last three years	Yes
30	Major shareholders, if available	Yes
31	External Agency Rating, if available	Yes
32	Litigations that the firm/promoter involved in	Yes
33	Market information	--
34	Payments terms	Yes
35	Negative Reporting by Auditors in the Annual Report	No

MANAGEMENT DISCUSSION & ANALYSIS

NMDC: AN OVERVIEW

INTRODUCTION

NMDC, incorporated in 1958, is the largest iron ore mining company in India. With iron-ore production of around 34 million tonnes per annum (MTPA) in FY'17, it has a market share of about 25% domestically (excluding captive iron ore production). Average grade of iron ore of NMDC sold in the market is ~64% Fe, which is one of the best globally.

With a Profit (before tax) of INR 42930.000 MILLION in FY'17, it is one of the top profit-making 'Navratna' public sector companies in the country. It has a net worth of INR 225190.000 million (as on 31st March, 2017). It has a strong history of rewarding investors with an average dividend payment of over 800% in the last 5 years.

NMDC continues to pursue policies and programmes to deliver long term value to all its stakeholders. NMDC has also invested substantially in the socio-economic development of the local communities, especially near its mining projects.

OPERATING PROJECTS

NMDC is operating three highly-mechanised iron ore mine complexes. Two complexes are located in Dantewada (Chhattisgarh) namely Bailadila Iron Ore Mine, Kirandul Complex & Bailadiala Iron Ore Mine, Bacheli Complex with yearly production of around 22 MT. One complex in Donimalai Iron Ore Complex, located in Bellary (Karnataka) produces 12 MT per annum

NMDC is also operating a diamond mine namely Diamond Mining Project, Panna (M.P.), which is the only mechanized diamond mine in Asia, with yearly production of around 35,000 carats. NMDC also has a sponge iron unit of 200 TPD, at Paloncha (Telangana).

GLOBAL PRESENCE

Spreading its footprint globally, NMDC has a majority stake of 78.56% in Legacy Iron Ore limited, Australia which has iron ore, gold, base metal interests (19 tenements) in Western Australia.

ICVL, a JV company of SAIL, RINL, NTPC, CIL and NMDC acquired a coking/thermal coal mine in Mozambique. Operations were discontinued due to the depressed coking coal prices from December 2015. In view of upswing in the coking coal prices, ICVL is in the process of restarting operations at the Benga Mine.

NMDC is in the process of setting up of a pilot-scale processing plant for gold in its mining lease in Tanzania.

GROWTH PLAN

NMDC has made a comprehensive plan to enhance iron ore production capacity to 67 MTPA by FY'22 to meet the growing requirements of iron ore of the Indian Steel sector. The strategy focuses on growth largely through brown field expansion of existing mines and improving evacuation along with it

Development of a green- field mines (Deposit 13) has also been planned through Joint Venture with the Chhattisgarh State Mining development Corporation.

NMDC is in the process of setting up a slurry pipeline in phases for evacuation of iron ore at economical cost to such locations from where the pellets /ore are made available to industry. Efforts to increase evacuation capacity through doubling of Kirandul-Kothavalasa (KK) line is also in full swing.

NMDC is developing iron ore stockyard in Chhattisgarh for uninterrupted supplies to customers

For further expansion in capacity, NMDC is pursuing allocation of new iron ore deposits both through participation in auction and reservation through government dispensation route ( section 17A(2A) of the revised MMDR Act, 2015).

Besides, as a part of its diversification and forward integration plan, it is setting up a 3.0 MTPA green field Steel Plant at Nagarnar in Chhattisgarh, which is in advanced stage of construction. It also has forayed in pellet-making with a 1.2 MTPA pellet plant started trial at Donimalai. Another 2 MTPA pellet plant is in the process of being set up at Nagarnar, Chattisgarh.

MARKET ENVIRONMENT:

ECONOMY:

GLOBAL:

Global growth for 2016 is estimated at 3.2 percent, from a level of 3.4 percent in 2015. Going ahead, pick-up in the global growth has been projected to 3.5 percent in 2017 and 3.6 percent in 2018. Economic activity in both advanced economies and emerging & developing economies is forecasted to accelerate in 2017, to 2 percent and 4.6 percent respectively.

INDIA

India has emerged as the world's fastest economy, with policies and reforms by the Government supporting higher growth. Prudent fiscal regime and calibrated monetary policy has reigned in inflation and strengthened macro-economic stability. Lower crude oil prices globally have also helped Indian economy reduce current account deficit and boost the overall economy of the country

India's economy is estimated to grow by 7.1% in FY 2016-17 as per Central Statistics Office (CSO) from 7.9% recorded in the previous financial year. The growth momentum of the Indian economy is expected to rise with measures by the Government in areas such as, taxation (Goods & Service Tax), ease of doing business, Foreign Direct Investment (FDI) reforms, etc. Another major factor helping India's economy is the expected lower global oil prices, which has a significant impact on the country's import bill, improving fiscal condition.

The thrust of Government of India to enhance spending on infrastructure augurs well for the Steel industry and thereby, the iron ore sector.

IRON ORE INDUSTRY OUTLOOK:

GLOBAL:

The steel industry witnessed a major growth cycle in the last two decades, driven by China's growth. It, in-turn, stimulated a massive increase in global iron ore production, more than doubling from 950 million tonnes per annum (Mtpa) in 2000 to over 2200 Mtpa in 2016. These market fundamentals incentivized new iron ore producers to enter the industry, and encouraged existing players to expand their operations, to meet this unprecedented demand. However, the iron ore industry is currently passing through a phase where supply is exceeding demand globally and this surplus scenario is likely to continue in the coming years. As a result, the prices of iron ore have come down in the recent past and are likely to remain subdued in the near future.

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS YEAR ENDED 31.12.2017

(INR IN MILLION)

	Particulars	Six Months Ended 31.12.2017	Six Months Ended 30.09.2017	Nine Months Ended 31.12.2017
		(Unaudited)	(Unaudited)	(Unaudited)
1.	Income from operations
	Net Sales (Net or Excise Duty)	24690.300	24213.300	77319.000
	Other operating Income	1111.400	1098.500	3495.800
	Total Income from operations (Net)	25801.700	25311.800	80814.800
2.	Expenses
	Consumption of Raw Material	24.400	41.500	65.900
	Excise Duty	0.000	0.000	0.100
	Consumption of stores and spares	601.500	510.400	1668.500
	Changes in inventories of finished goods, work-in-progress and Stock-in-Trade	(280.800)	1325.400	767.000
	Employee benefits expense	2183.600	2123.800	6343.300
	Royalty and other levies	5176.200	3475.000	13578.600
	Selling Exps. including freight	1080.500	1392.500	4656.000
	Depreciation and amortisation expense	771.700	619.600	1858.200
	Finance cost	111.800	101.700	295.000
	Other expenditure	3806.300	3314.600	11161.800
	Total Expenses	13475.200	12904.500	40394.400
7.	Profit from ordinary activities before exceptional Items and Tax	12326.500	12407.300	40420.400
8.	Exceptional Items	(1449.400)	0.000	(1449.400)
9.	Profit Before Tax	13775.900	12407.300	41869.800
10.	Tax expense	4909.500	3963.300	14866.800
11.	Net profit from ordinary activities after tax	8866.400	8444.000	27003.000
	Loss from discontinued operations	(1.600)	(1.600)	(4.100)
	Tax Expense of discontinued operations	(0.500)	(0.600)	(1.400)
	Loss from discontinued operations [after tax]	(1.100)	(1.000)	(2.700)
	Profit/ Loss for the year	8865.300	8443.000	27000.300
	Other comprehensive income	(167.700)	(167.600)	(503.000)
	Total comprehensive income	8697.600	8275.400	26497.300
14.	Paid - up Equity Share Capital	3163.900	3163.900	3163.900
	Face value of per share (Re)	1	1	1
	Other equity excluding revaluation reserve
15.	Earnings Per Share (EPS)
	Basic and diluted EPS before exceptional Items for the period (INR)	2.80	2.67	8.53

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

Particulars	Six Months Ended 31.12.2017	Six Months Ended 30.09.2017	Nine Months Ended 31.12.2017
	(Unaudited)	(Unaudited)	(Unaudited)
1] Segment Revenue
(Sale/ Income from each segment )
Iron Ore	24289.400	23952.600	76422.800
Other Minerals and Services	400.900	260.700	896.200
Total	24690.300	24213.300	77319.000
Less: Inter Segment Revenue	0.000	0.000	0.000
Sale/ Income from Operations	24690.300	24213.300	77319.000
2] Segment Results
(Profit (+)/ Loss (-) before tax and interest from each segment)
Iron Ore	13568.800	11889.800	41109.200
Other Minerals and Services	(222.300)	(348.500)	(620.900)
Total	13346.500	11541.300	40488.300
Less: Finance Cost	111.800	101.700	295.000
Add: Other Un-Allocable Income net off Un-Allocable Expenditure	539.600	966.100	1672.400
Profit Before Tax (Including discontinued operations)	13774.300	12405.700	41865.700
3] Segment Assets
Iron Ore	57951.900	57184.800	57951.900
Other Minerals and Services	6665.100	6783.200	6665.100
Un-allocated	209476.200	205523.100	209476.200
Total Assets	274093.200	269491.100	274093.200
4] Segment Liabilities
Iron Ore	18016.900	16876.100	18016.900
Other Minerals and Services	347.800	339.900	347.800
Un-allocated	12536.000	17758.200	12536.000
Total Liabilities	30900.700	34974.200	30900.700
5] Capital Employed
(Segment assets-Segment liabilities)
Iron Ore	39935.000	40308.700	39935.000
Other Minerals and Services	6317.300	6443.300	6317.300
Un-allocated	196940.200	187764.900	196940.200
Total	243192.500	234516.900	243192.500

Notes:

1. The Company opts to publish the financial results on Standalone basis.

2. The unaudited financial results of the company for the quarter/nine months ended 31st December 2017 duly reviewed by the Audit Committee have been approved by the Board of Directors at its meeting held on 13th February 2018. 

3. An amount of INR 453.000 million for the quarter and INR 956.700 million up to the quarter ended December 2017 are included under the head “Other Expenses” towards expenditure on enabling facilities towards doubling of railway line between Kirandul - Jagdalpur and railway line between Jagdalpur – Ambagaon, required for augmentation of evacuation capacity of Bailadila sector and otheINR

4. An amount of INR 762.500 million for the quarter and INR 2307.400 million up to the quarter ended December 2017 towards expected credit loss (ECL) are included under the head “Other Expenses”. 

5. An amount of INR 238.900 million for the quarter and INR 681.700 million up to the quarter ended December 2017 towards mines closure obligation are included under “Other Expenses”. 

6. Consequent upon the judgement of Hon’ble Supreme Court of India dated 13th October 2017 in TC (Civil) no 43/2016 regarding determination of effective date of liability towards District Mineral Fund (DMF), the company has reversed a net amount of Rs.144.94 million which pertains to the period prior to the effective date (17th Sep 2015) and included in “Exceptional items”. 

7. The Company has been legally advised that there is no impact of the Hon’ble Supreme Court of India judgement with reference to the writ petition (Civil) no. 114 of 2014 dated 2nd August 2017 on NMDC. However, in case it is found applicable to NMDC at a later date, it may impact the profits of the company. 

8. The financial results have been reviewed by the Statutory Auditors as required under regulation 33 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. 

9. Figures for the previous period have been regrouped wherever considered necessary so as to conform to the classification of the current period. 

CONTINGENT LIABILITIES:

Particulars	31.03.2017 (INR In Million)	31.03.2016 (INR In Million)
Claims against the company not acknowledged as debts consisting of:
Disputed claims under Property tax, Export tax, Conservancy Tax, Sales Tax, Service Tax, Income tax etc.	18772.800	21149.400
Claims by contractors under arbitration	1733.000	--
On capital account	--	--
On revenue account	--	1.600
Other claims on company not acknowledged as debts	850.800	884.400
Contingent liability on bills discounted/ LCs/BG's	5887.100	3.000

The Company has issued letter of comfort in favour of International Coal Venture (P) Limited (ICVL) in furtherance for providing Corporate Guarantee of US$ 30 Mn by them to EXIM Bank on behalf of Minas De Benga Limitada, Mozambique (Borrower), a downstream operating subsidiary of ICVL, New Delhi in respect of short term working capital loan. The said letter of comfort does not in any way constitute the guarantee or security by the Company of the duties of the borrower to meet its obligation under the said facility.

FIXED ASSETS:

• Land
• Buildings
• Plant & Machinery
• Heavy Mobile Equipment
• Furniture & fittings
• Vehicles
• Office Equipment
• Roads, bridges etc.
• Dams, Wells & Pools
• Railway sidings
• Locomotives
• Electrical Installations
• Sanitary & W. S. Installations

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	INR
US Dollar	1	INR 64.93
UK Pound	1	INR 91.50
Euro	1	INR 79.69

INFORMATION DETAILS

Information Gathered by :	SHR
Analysis Done by :	PRS
Report Prepared by :	RUP

SCORE FACTORS

DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	YES
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.