DIRECTORS' REPORT FORTHEYEAR ENDED 31 MARCH, 2009DIRECTORS' REPORT FORTHEYEAR ENDED 31sT MARCH, 2009...

DIRECTORS' REPORT FOR THE YEAR ENDED 31sT MARCH, 2009

ToThe Members,

Your Directors have pleasure in presenting the Thirty Seventh Annual Report together with

the Audited Accounts of the Company for the year ended March 31, 2009.

a) The financial performance of the Company for the year ended March 31, 2009 issummarized below:-

Particulars 2008-09 2007-08

Gross Revenue 10590.21 9446.24Gross Margin 731.22 1288.10Depreciation 290.35 325.20Amortization and write off 2.31 2.81Profit before Prior Period Adjustments 438.56 960.09Prjor I?eriod Adjustments - - _ (95.05) (3.65)Profit before Taxes 343.51 956.44Provision for Income TaxI Fringe Benefit Tax 219.90 345.38Profit after Taxes 123.61 611.06

During the year under review, the Company has registered gross revenue of RS.10590.21lakhs as against to RS.9446.24 lakhs during previous year. The Company has achievedgross margin & net profit of. Rs. 731.22 lakhs & Rs. 343.51 lakhs as compared to Rs.1288.10 lakhs & RS.956.44 lakhs (before taxes) respectively during previous year. Duringthe year, the Company has made a provision of RS.1530 lakhs towards Wage Revision forExecutives w.e.f. 1-1-2007 and Non-executives w.e.f. 1-4-2007. . This has resulted inreduction of profit to that extent..

2. PERFORMANCE HIGHLIGHTS:

MECL continued its core activities of exploratory drilling and exploratory I developmentalmining along with associated geological activities. During the year 2008-09, a total of 5695million tonnes of mineral reserves have been established. Cumulatively since its inceptionin 1972, (upto 2008-09) a total of 136367 million tonnes of reserves for various minerals havebeen added to National Mineral Inventory. The mmeral wise break up of reserves establishedduring 2008-09 and since inception is given in the folfowing table.

Mineral Wise Details of Reserves established by MECL( 1972 To March' 2009)

Mineral 2008-2009 Reserves( m.t.)

A) Energy Minerals Coal 3968.52 91293.90Lignite 1701.12 35640.74Coal Bed Methane(B.Cum.) 471.40

Sub-Total 5669.64 126935B) Ferrous Minerals Iron Ore 2547.90

Nickel 64.60Chromite 0.01Manganese 7.21

Sub-Total 2620C) Non-Ferrous Minerals Bauxite 1277.34

Lead-Zinc 159.87Lead-Copper 1.01Copper 13.68 608.06

Poly Mettalic Ore Copper+Lead+Zinc 11.50Sub-Total 13.68 2058D) Strategic Minerals Tin Ore 5.11

Tungsten " 4.00(Cesium)/Rare metal ' 0.18

Sub-Total 9E) Precious Minerals/Metals Gold 11.74 37.87

Molybdnum 1.50DiamondiferrousConglomerate 2.93

Sub-Total - 11.74 42F) Industrial Minerals Limestone

Cement Grade 2188.46Flux(~las! FUlIlace) Grade 39.00

- SMS (Steel) Grade 62.00 -Chemioal Grade 168.00

SUb-Total 2457G) Other Minerals Dolomite 53.70

Rock phosphorite 32.29Magnesite 11.98Silliminite/Fluorite 0.78Graphite r.32Rock Salt 94.10Fuller's Earth/Fire clay 1884.84Stowing Sand 127.14Ferrosilicon grade qtz. 6.52Glass Sand 34.51Shell limestone 0.22

Sub-Total 2247G.Total 5695.06 136367

Salient features of mineral reserves estimated during 2008-09

>- A total of 3968.52 million tonnes of non coking coal reserves have been established inthe states of Andhra Pradesh, Chattisgarh, Madhya Pradesh & Maharashtra.

>- 1701.12 million tonnes of lignite reserves were established in the states of Rajasthan &Tamil Nadu.

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)i- A total of 11.74. million tonnes of gold ore reserves with 2.51 glt of Au has beenestimated at Bhukia East in Rajasthan.

')0> 5.13 million t6nnes of copper & gold with 1.17% Cu & 1.27% glt Au were established atDhani Basri block, Rajasthan.

~ 5.22 million tonnes of copper with average grade of 1.31 % Cu and 3.33 million tonnes'with average grade of 1.22% Cu were also established at Dhobani mine in Jharkhnad&Satkui in Rajasthan, respectively.

During the year 2008-09, the drilling performance has been remarkable as the MoU targethas been exceeded. The company has registered 2,21,847 m, which includes 235 m ofdrilling for evaporite on behalf of ONGC and 1982 m of dril.ling for. oil shale on behalf ofMIs. DGH and 695 m of drilling for atomic mineral on behalf of MIs. AMD.

oDuring the year, geophysical logging was taken up for minerals namely coal, lignite, CBM,salt and oil shale and a total of 156766 m of geophysical logging was carried out. Surfacegeophysical survey was carried out in Rajasthan state for lignite and a total of 16.12 sq.km ofarea was covered with 403 no. of statjon by gravity survey. During the year, a total oJ 136sq. km of geological mapping was also carried out for various minerals in different parts ofthe country.

The Com"pany has carried out promotional works for Ministry of Coai and Ministry of Minesduring the year 2008-09, which are as under: .

Ministry of Coal: The priority regional exploration for coal and lignite on behalf of Ministry ofCoal constitute the major work. Coal drilling was continued in Madhya Pradesh,Chhattisgarh, Assam, Maharashtra & Andhra Pradesh and the achievement has been43178.60 m.ln Lignite sector work was carried out in Rajasthan & Tamil Nadu state: A totalof 54453.70 have been achieved.

o Ministry of Mines: Exploration under promotional work on behalf of Department of Mineswas carried out for Gold, Copper, Lead Zinc & Glass Sand in th'e state of Jharkhand,Rajasthan & Assam. A total of 7157.80m of drilling has been carried out along withassociated geological work.

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FINANCIAL YEAR

A total of 32 exploration reports for geological investigations, geophysical, environmental &remote sensing studies were submitted for various minerals namely coal, lignite, copper,gold, CBM & for evaporite. A total of 5695 million tonnes of reserves were added to theNational Mineral Inventory.

In laboratories, a total of 33561 number of samples were analysed and 78897 radicals weredetermined during 2008~09.

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The mine development activity was spread over in the states of Jharkhand and Rajasthan.During the year 2008-2009, a total of 5900 m developmental mining was tarried out. Themajor part of work was carried out for Uranium on behalf of Mis UCIL.

Under the diversification programme, MECL has continued exploration for CBM investigation,supply of ballast stone to South Eastern Railway, coal sampling & analysis work to increaseits revenue.

Under expansion programme, MECL in association with BRGM France continued studies forresource estimation in respect of Oil Shale deposit in an area of 254 Sq. Km. of Assam &Arunachal Pradesh. MECL has also taken up inclined hole drilling for atomic mineralscontrolling azimuth & angle on behalf of Mis AMD in the states of Rajasthan arid Haryana.

MECL has applied for mining lease for bauxite for Serengdag-I and Serengdag-II in the stateof Chhattisgarh. The mining plan of both the areas has been approved by IBM. The workfor clearance from Ministry of Environmental & Forest (MoEF) of Serengdag-I block is underprogress. In this regard, MECL has made a presentation during a meeting with ExpertAppraisal Committee of MoEF, for determination of Terms of Reference (ToR) to undertakedetailed Environment Impact Assessment (EIA) I Environment Management Plan (EMP)studies which is under progress.

Rigorous efforts were continued to generate more and more contractual work throughcompetitive bidding and bilateral negotiation. As a result during the year 2008-09, MECL hasreceived p total of 49 work orders from various agenci~s such as MIs. AMD, CMPDIL,HCL, NALCO, NMDC, NLC, SAIL, UCIL, WCL,etc. valued at Rs. 432.51 crores .

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a. Geological data processing of 32 exploration blocks explored by MECL, were carriedout. This includes 12 nos. of coal, 9 nos. of lignite, 5 nos. of base metal, 3 nos. of salt,1 no. of hydro-geological studies and 2 nos. of. CBM exploration. The work includescomputerised database creation, generation of graphical & numerical out puts etc ..

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b. Digital conversion of analog geophysical logs of 63 boreholes pertaining to ligniteblocks and 48 bor.eholes pertaining to coal block have been done.

c. Exploration data processing for 3 Reports of Nagaur Salt Deposit on behalf of ONGCwas completed._

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d. Hydro-geological studies of one of the borehole pertaining to Nagaur Salt Deposit onbehalf of ONGC was also taken up and completed

e. Exploration data processing for 2 Reports of CBM blocks (South Karanpura on behalfof ONGC & Litipara on behalf of DGH ) were completed.

3-D View of Coal seam, Ta!aipalli Block

g. Geological Modeling for Jayamkondam South Block for MIs NLC was completed. Thisincludes Modeling of Lignite Seams and other Lithologies intersected in theBoreholes. The 20 Plans viz-Floor Contours, Seamfolios , Iso-pachytes ofOverburden and Over & Inburden ,Geological Cross sections etc. were generatedfrom the Model.

h. Work for Preparation of revenue plan of Dulanga Coal Mining Project (Phase - I )comprising of 6 villages, on behalf of MIs NTPC were taken up. and completed duringthis period. The work includes rectification of Revenue· Maps with images, Geo-Referencing, Edge Matching and Mosaicing, Digital Conversion of revenue Maps andAttribute attachments. The Phase-II work of Creation of Land Record Database andLinking with the Revenue Maps were also taken up and completed .

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MECL continued its efforts to maintain safety at all the work places and establishments ofthe Company during the year 2008-09 also. However 6 (six) minor accident cases werereported. Injured workmen were provided medical aid immediately.

a. Every year merit scholarships are granted to meritorious wards of MECL employeesunder "MECL Employees Grant of Scholarship to Employees Children Scheme" as anencouragement and as welfare measure. Ten fresh scholarships were granted andtwenty-five scholarships were renewed during the year 2008-09 to the wards of MECLemployees. Thus, total numbers of thirty-five scholarships were awarded.

c. Medical facilities were provided to MECL employees· and their dependant familymembers as per Medical Benefit Scheme.

Industrial relations remained, by and large, peaceful and cordial in all the establishmentsof MECL during the year 2008-09.

The Company gives equal status to its women" employees and Service Rules etc. areuniformly made .applicable. Whenever special training programmes are organized forwomen, MECL's participation is ensured. Facility as per law is provided to womenemployees wherever required.

In order to avoid sexual harassment of women at work place, a Grievance Committee on

"Sexual Harassment" of women at work place was constituted .and is functioning in the

Company. A meeting of the Committee is held periodically and steps have been taken tosensitise all employees of the Company on the issue. .

11. OFFICIAL LANGUAGE POLICY:

In accordance with the policy of the Govt. of India for extensive use of Hindi in officialwork, all out efforts were continuously made for increasing the use of Hindi during theyear 2008-09. Hindi Diwas / Pahkwada were organized wherein various competitionwere organized for employees to propogate Hindi amongst them. Four Hindi workshopswere organized during the period under review, in which 96 executives and non-

'executives participated. Four quarterly official language implementation Committee ofMECL meeting were held wherein steps to further propogate Hindi in official work werediscussed and implementation position reviewed. In order to encourage employees to doofficial work in Hindi, 54 Cash Awards were given to employees during the year2008-09.

12. PERSONNEL:a) Manpower

·The manpower position as on 31.03.2009 as compared to 2007-08 is given below:-

2007-08294

16337929

2035

2008-09286

15977827

1988

During the year, 25 Executives and 37 Non-executives were separated due tosuperannuation and other reasons.

b) Representation of Scheduled Casts, Scheduled Tribes & 'Other Backward classas on 31.03.2009

Group Total NO.of Scheduled Scheduled Tribe OBCemployees Caste

- Total Percentage Total - Percentage Total Percen-tage

A 221 40 18.10 13 5.88 12 5.43Et - - 65 11 . 16,92 0-4 - 6.15 02 3.07C 1597 222 13.90, 113 7.08 85 5.32D 73 13 17.81 04 5.48 04 5.12D 05 05 100 - - - -

(Safaiwala)Total 1961 291 14.85 134 6.84 103 5.75

Overall percentage - 27.44%

_ 13. TRAINING AND MANAGEMENT DEVELOPMENT:.,

In today's globalised economy the concept of "People Power" ·has emerged strongly andtherefore training and management development activities in MECL were designed toequip employees with the necessary competencies to take all challenges and the same isreflected in the Organisation's upward swing.

During the year 2008-09, 16 in-house Training Programmes were conducted exposing405 personnel and 43 executives and 2 non-executives were nominated to 25 externalTraining Programmes/Seminars/Conferences etc. Thus during the period under review,.training was provided to 450 employees .

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14. PARTICULARS OF EMPLOYEES:There are no employees within the purview of Section 217(2A) of the Companies Act,1956 read with Companies (Particulars of Employees) Rules 1975 as amended fromtime to time.

In MECL RTI Act, 2005 has been implemented in letter and sprit by appointing "PublicInformation Officer" and "Appellate Authority" as contemplated under this Act. Theinformation is being provided to the Applicants as per the provisions of the Act. Similarly,the Appellate Authority is also discharging his duties in case of Appeals being preferredagainst the decision of the Public Information Officer within the time prescribed under theAct. The status of RTI cases as on 31st March, 2009 are as follows :-

Total No. of applications No. of applications disposed Balance carried forward to thereceived during the year year 2009-102008-09 ( includingbrought forward from theyear 2007-08) - -

68 57 11

No. of applications for first No. of appeals disposed Balance carried forward to theappeal received during the year 2009-10year 2008-09(includingbrought forward from theyear 2007-08)

14 13 1

The Company is furnishing various returns to the' Ministry 'of Mines a,nd CIC in theprescribed proforma periodically. The information about the Pub~ic Information Officer,Appellate Authority and other required information as well as periodical returns are beinguploaded and posted on the website of the Company.

In MECL, Public Grievances are being dealt based on the guidelines received from theMinistry of Mines from time to time. These grievances are being looked by the Director(Grievances) nominated by the Corporation. Presently Shri R.K. Panigrahi, Chief

·Manager (Pers. & Admn.) has been nominated as Director (Grievances) by theCompetent Authority. His Phone No. is 0712-2510902 I Fax No, 091-0712-2510133,2510.548. For further information on Public Grievances related to MECL, the same ismade available at our website - http://pgpprtal.gov.in.

http://pgpprtal.gov.in.

Besides, the monthly/quarterly reports on Public Grievances as well as Staff Grievancesare being regularly sent to the Ministry.

Shri R.K. Panigrahi, Chief Manager (Pers'. & Adrrln.) has been nominated as NodalOfficer for Citizen's Charter and the same has been intimated to the Ministry along withthe required details.

On the basis of audited accounts, Ministry of Heavy Industries and Public Enterpriseshas evaluated MECL rating as "Excellent" in respect of MOU signed with Ministry ofMines, Govt. of India for the year 2007-08. However, MOU rating of the Company forthe year 2008-09 is awaited. Further, MOU for the year 2009-10 with Ministry of Mineswas signed on 26-3-2009.

In Compliance with the guidelines on COIPorate_Governance for CPSEs, 2007, the- Board of Directors has laid down Code of Conduct for all Board Members and Senior

Management Personnel of the company for affirming the compliance with the code ofconduct. The Company believes that good Corporate Governance is essential toachieve long term corporate goals and to enhance stakeholders' value. MECL believesin transparency, accountability and attaining maximum level of enrichment of theenterprises. For maintaining its transparencies in the system, Leveraging Technologywas, introduced while dealing with Tenders and also Introduces e-payment toContractors/S uppl iers.

MECL being a exploration agency, undertakes mineral exploration projects in the ruraland remote areas of the country. Upon reaching the sites, usually, for the villagers it isthe first encounter with the technological applications made by us ,in such remoteplaces.

The Corporation, keeping in view expectations of the local people, provide a few casualengagement of unskilled nature to assist our Drill Operators and Mechanics on thesites. It is seen that eventually the villagers associated with our experienced operatorsand mechanics learn few skills from them which proves to be very useful for them intheir future endeavour.

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It is also worthwhile to mention that when MECL works in such remote locations for itsdrill sites, it prepares roads for movement of its machineries and equipments whichsubsequently are being used by the villagers in their day to day use.

In a small way, MECL is also associated itself in undertaking welfare measures in theremote areas such as organizing an Awareness Programmes/Seminars, for preventionof HIV/AIDs in association with local Public Health Centre.lGovernment Doctors andHIV/Aids Counselors etc. On request received from the villagers our Project Managersdo also provide them facilities viz. sports goods etc, as a welfare measure.

The presence of our scie~tists, engineers, technicians at the project sites in remotelocations contribute to the social change of the area and stimulates the first steptowards rural development of our nation.

In pursuance of Section 217(2AA) of the Companies Act, 1956 which requires inclusionof a Directors' Responsibility Statement, the Directors hereby confirm -

a) The applicable accounting standards have been followed in the preparation of theannual accounts and proper explanations have been furnished, relating to materialdepartures.

b) Accounting policies have been selected and applied consistently and reasonably,:- ·and. prudent judgments and estimates have been made so as to give a true and fair-

view of the state of affairs of the Company and of the Profit & Loss of the Companyfor the financial year ended 31st March 2009.

c) Proper and sufficient care has been taken for the maintenance of accounting recordsin accordance with the provisions of the Companies Act, 1956 for safeguarding theassets of the Company and for preventing and detecting fraud and otherirregularities.

~ d) The Annual Accounts of the company have been prepared on a going concern basis.

The Comptroller and Auditor General of India, New Delhi appointed following firms ofChartered Accountants as Statutory & Branch Auditors for the financial year 2008-09.

Statutory AuditorsMIs Aurangabadkar & Co.,Indradhanush, 2, SBI Colony,Amravati Road,Nagpur-440033(Maharashtra)

Branch AuditorsMIs R. Bansal & Associates,2nd Floor, Sri Gopal Complex,Kutchery Road,Ranchi - 834001(Jharkhand)

MIs R. Kankaria & Uttam Singhi,Chartered Accountants,6-3-1090/C-'4 ~ajbhaw.an Road,Opp. Kapadia Lane,Hyderabad - 500082(Andhra Pradesh)

The Audit Committee constituted by the Board in terms of Section 292A of theCompanies-Act, 1956 is in operation. The Dir~ctor(F-inancej and the representative.ofStatutory Auditors and the Internal Auditors are included in the committee as invitees asa Transparent Corporate Governance Policy, though the representative(s) of theStatutory Auditors may be called as and when required by the committee, as stipulatedin accordance with the provisions of Section 292A of the Companies Act, 1956. The roleof Audit Committee is in accordance with the provisions of Section 292A of CompaniesAct, 1956.

1. Shri V.K. Thakral, Chairman2. Shri P.R. Mandai3. Dr. S.K. Haldar

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During the year under report, the Audit Committee met four times. The details ofattendance of the members are indicated below: -

SI. Date of meeting Name of the members present Leave of absenceNo. Qranted1. 22-5-2008 1. Shri V.K. Thakral -

2. Shri P R Mandai3. Dr. S.K. Haldar

2. 19-8-2008 1. Shri V.K. Thakral -2. Shri P R Mandai3. Dr. S.K. Haldar

3. 04-12-2008 1. Shri V.K. Thakral -2. Shri P R Mandai3. Dr. S.K. Haldar

4. 20-03-2009 1. Shri V.K. Thakral -2. Shri P R Mandai

..

3. Dr. S.K. Haldar

The c0!T!positionof the Board is as under:-

1. Dr. A.K. Lomas2. Shri V.K. Thakral

. 6. Shri P.R. Mandai .4. Shri C.P. Gupta5. Dr. S.K.·Haldar .

- Chairman-cum-Managing Director- Government Nominee- Government Nominee· -- Director (FinancE?-)- Director (Technical)

SI. Date Total No. of Board of No..of Directors presentNo. Directors

..

1 22-5-2008 5 52 19-6-2008 5 43 19-8-2008 5 54 04-12-2008 5 5·5 20-03-2009 5 5

,"

Attendance of each Director at Board Meetings:

SI. Name of the Director Period No. of Board No. of BoardNo. Meeting Meetings

attenoed(A) Wholetime Functional Director1 Dr. A. K. Lomas, CMD 01/04/08 to 5 5

31/03/092 Shri C.P. Gupta, D(F) 01/04/08 to 5 5

31/03/09 .-3 Dr. S.K. Haldar, D(T) 01/04/08 to 5 5

31/03/09(8) Govt. of India Nominee Director1 Shri V. K. Thakral 01/04/08 to 5 5

31/03/09 .'

2 Shri P. R. Mandai 01/04/08 to 5 431/03/09 .

The remuneration of the Functional Directors are fixed by the Government of India in termsof Section 617 of the Companies Act, 1956.' The Government Nominees are not eligible for 'sitting fee as per the provision of the Companies Act,1956 for the meeting attained by them.

27. ANNUAL GENERAL MEETING:

The 36th Annual General Meeting was held on 15-9-2008.

The Vigilance Department of the company operates from its Corporate Office. It is headedby Chief Vigilance Officer who is reporting to the Chairman-cum':""Managing Director of theCompany. Continuing with the thrust on Preventive Vigilanc::e, various systemic andprocedural improvements were effected which were recommended by Vigilance pursuant tothe intensive examinations of PurchaseNVorks Contract and the study undertaken in thrustareas for prevention of corruption in sensitive areas. Vigilance Awareness Week wasobserved from 03-11-2008 to 07-11-2008. Educative posters to create awareness amongstthe employees were displayed during the Vigilance Awareness Week and seminars wereheld at Corporate Office and Zonal Offices at Hyderabad and Ranchi wherein the provisionsof Government of India's resolution on 'Public Interest Disclosure and Protection .ofInformers' were discussed. Implementation of CVC's guidelines is strictly ensured.

29. ACKNOWLEDGEMENT:Your Directors gratefully acknowledge and place on record for their support, co-operationand guidance received from Ministry of Mines, Ministry of Coal and other Departments ofGovernment of India & Regulatory Agencies.

Your Directors express their sincere thanks to the office of the C&AG, Statutory & BranchAuditors, Customers and Bankers who continued to repose their faith and trust in the workingof the Company. The Board of Directors would like to assure that the Company wouldcontinue to strive for better achievements in the coming years.

Your Directors express their appreciation to the untiring efforts put in by all the officers andemployees at various levels and their support over the years which has enabled yourcompany to achieve the present position. With such continued support, your company willgrow from strength to strength and would be able to expand its area of activities, scalegreater heights of success and contribute positively for better stakeholders' delight.

• Place : NagpurDate : 11/8/2009

Sd/-(DR. A. K. LOMAS)

CHAIRMAN-CUM-MANAGING DIRECTOR

Annexure to Directors' Report as required under Companies (Disclosure of particularsin the report of Board of Directors) Rules, 1~88.

FORM-B(See Rule 2)

Form for disclosure of particulars with respect to absorption -

i) Specific area in which R&D activitiescarried out during the year.

: During the year no R&D project under anyspecific S&T scheme was taken up.However, different filteringtechniques(already adopted duringpreVious R&D Projects) in Gravity DataProcessing was exercised and proved to bevery much useful for demarcation ofprobable zones of lignite occurrences.

:. GEOSOFT software was- use to calculatethe 1st and 2nd order derivatives in additionto downward continuation. To estimate thedepth of occurrence, power spectrum andmodelling techniques through GEOSOFTsoftware (procured during previous R&DProject) were exercised to get an idea overthe probable Lignite deposit.

(8iii) Future Plan of Action : To upgrade the present software for more

flexibility and .accuracy as far asinterpretation and presentation areconcerned.

1. High Performance Diamond Bit:

To achieve higher productivity and completion of work within time schedule in hardformation, high performance diamond bitts were put in use and the following advantageswere noticed:

a) Frequent hoisting and lowering of drill rods for replacing the bit has considerably reduceddue to long life of the high performance bit.

/"""'\,.c) Increasing the performance of Diamond bits by innovative 'methods in various' formation\ \ is a continuous process

Polymer has been used in hard rock formation and also in deep drilling Projects. By theuse of Polymer, the in hole problems were reduced due to better bailing out of the cuttings,leading to efficient bore hole cleaning.

3. Indigenous Clay Coat developed from the by-product of Glycerine has been used asadditive to drilling fluid to increase the lubricity and viscosity of the drilling fluid. Thishas been extensively used in Chintalpudi and Khapri projects and has given goodperformance.

4. Reverse Circulation drilling was introduced for the first time in commercial use in Iron Oredrilling.MECL.have developed .its own Reverse Circulation Rods with old HQ/BQ WirelineRods and experimental Reverse Circulation drilling was qone using conventionaln Oriiling Rig. R.D. work is in progress. .

5. Salt exploration in Bikaner Nagaur was successfully completed by drilling about 3134metres in HQ Size during 2008-09 having a maximum depth of 1041 m. Thb was one ofthe challenging task taken by MECL.

6 In Oil Shale about 23'14.15 metres was drilled in HQ size during 2008-·09in Assam(North Eastern Region) which was also a challenging task.

7. MECL have successfully completed deep drilling in the depth range of 1100-1200 metresin Raniganj Coalfield.

Installation of Local Area Network (LAN) and IBM data center blade server at CHQ,MECL is under progress. When completed the users will be able to share data base file andcommunicate through email.

Forty number Lenova desktop has been procured of which twenty numbers has beensent to projects, Zonal offices and RMCs. With this seventeen number of projects in MECLare equipped with computers, which is being utilized for day today office and geologicalapplications.

The software like SURPAC, GEMCOM, MINEX, GDM etc. were upgraded during theyear and with the use of these upgraded version of software in preparation of geologicalreport has resulted in using recent technology particularly in fault modeling .

•Foreign Exchange Earning

Foreign Exchange Outgo

: Nil

: RS.97.32 lakhs

Place : NagpurDate : 11/8/2009

Sd/-( DR. A. K. LOMAS)


•

a\.' AURANGABAOKAR & CO.CHARTERED ACCOUNTANTS

AUDITORS REPORTAuditors Repor:t to the Members of Mineral Exploration Corporation Limited

We have audited the attached Balance Sheet of Mineral Exploration Corporation Limited as on31st March 2009 and also the annexed Profit & Loss Account and Cash Flow Statement for theyear ended on that date. These financial statements are the responsibility of the Company'smanagement. Our responsibility Is to express an opinion on these financial statements basedon our audit.

1. We conducted our audit in accordance with the auditing standards generally acceptedIn India. These Standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free' from anymaterial misstatement. An audit includes, examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statement:;. An audit alsoincludes, assessing the accounting principles used and significant estimates' made bymanagement, as well as evaluating the overall presentation' of the financialstatements. We believe that our audit provides a reasonable basis for our opinion.

As required by the Companies (Auditor's Report) Order, 2003, issued by the CentralGovernment of India in terms of Section 227 (4A) of the Companies Act, 1956 weannex hereto a statement on the matters specified in paragraphs 4 and 5 of the saidorder.

Further to our comments in Annexure referred to above, we report that:

i. We have obtained all the Information and explanations, which, to the best ofour knowledge and belief, were necessary for the purposes of our audit;

. ii. In our opinion, IJroper books of accounts as required by law have been-kelJt by-. the company so far as It appears from our examination of those books and

proper returns adequate for the purpose of our audit have been received from. the Regional Maintenance Centers arid other projects at Hyderabad and

Ranchi, not visited by us. The Branch Auditors' Report have been forwarded tous and have been appropriately dealt with;

iii. The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt withby this report are in agreement with the books of account and with the auditedreturns from the branches;

iv. In our opinion the Balance Sheet, Profit & Loss Account and Cash FlowStatement dealt with' in this report comply' with the accounting standardsreferred to in sub-section .(3C) of Section 211 of the Companies Act, 1956;except as stated otherwi~e; .

v. The provisions pertaining to directors disqualification as on 31st March 2009. from being appointed as director In terms of clause (g) of sub-section (1) of

section 274 of the Companies Act, 1956, is not applicable to GovernmentCompanies;

vi. Without qualifying our opinion, we draw attention to Note No.5 of Schedule 'V'attached to the balance sheet. The company has made provision of Rs. 1530Lakhs for Pay revision of Board level and below board level executives andnon-unionized supervisors w.e.f. Jan 2007 and of non executives w.e.f. April2007. These arrears of Pay are payable only on Issue of Presidential directivesby Minisitry of Mines. Such Presidential Directives are not yet issued.

In our opinion and to the best of our information and according to theexplanations given to us, the said financial statements, read together with thenotes thereon, give the Information reqUired by the companies Act,. ~956 .the manner so reqUired and present a true and fair view in conformifyaccounting principles generally accepted in India: 4c"'~

.:::> 0

.; NAGPUR .•.':). E.

7.••, ",,-.:-'

2, lndradhanush, 5Bl Colony, Amravati Road, Nagpur - 440 033. Ph.No. 2555856, 25357 ;I,'}./) A\' ,-:-.

(A-.. AURANGABADKAR &.CO.CHARTERED ACCOUNTANTS

SUBJECTTo:

• Certain Assets sold, discarded, left or lost in boreholes have not beenwithdrawn from Gross Block. The management is unable to estimate its effecton profit for the year. (Refer Note no. 3 (iii)of Schedule 'V' to the BalanceSheet) ..

• Non-provision for Payment of Seryice Tax on Promotional Work done on behalf. of Ministry Of Mines Amounting to Rs. 666.74' Lakhs, (Refer note no. 4 of

schedule 'v' to Balance Sheet)

• Balances shown under Sundry Debtors, Loans & Advances and CurrentLiabilities~ are subject to confirmations / reconciliations / settlement andconsequential adjustments, if any, the impact whereof can not be ascertainedat thIs stage. (Refer Note No.10 of Schedule 'V' to the Balance Sheet).

I. In the case of Balance Sheet, of the state of affairs of the company as at31st March 2009

II. In the case of the Profit and Loss Account, of the Profit for the yearended on that date and

III. In the case of Cash Flow Statement, of the Cash Flows for year ended onthat date.

- For Aurangabadkar&' Co.Chartered Accountants

Ashlsh M JoshiPartnerM.No. 106298

a\.' AURANGABAOKAR & CO.CHARTERED ACCOUNTANTS

ANNEXURE TO THE AUDITORS REPORTRe:Mineral Exploration Corporation Limited

(a) The company Is maintaining propel' records to show full particulars includingquantitative details and situation of fixed assets.(b) The management has physically verified most of the fixed assets of thecompany. The discrepancies nqticed on comparison between book records andphysically verified"fixed assets have been properly dealt with in books of accounts. ,(c) The company has not disposed off substantial part of its fixed assets during theyear so as to affect the going concern.(a) The Inventory of store and spare of the company have been physically verified by

the management during the year. In our opinion, the frequency of verification isreasonable.(b) In our opinion and according to information and explanation given to us, theprocedure of physical verification of inventory followed by the' management' isreasonable and adequate in relation to the size of the company and the nature of itsbusiness. '(c) The management is maintaining proper records of Inventory. The distrep'anciesnoticed on physical verification of inventory as compared to book records have beenproperly dealt with in the books of accounts.The company has not granted or taken any loans to or from companies, firms or otherparties covered in the register maintained u/s 301 of the COflJpaniesAct 1956.In our opinion and according to the Information and explanation given to us thecompany has an adequate internal control procedure commensurate with its size andnature of business for purchases of Inventory and fixed a.ssets.The company also hasan adequate Internal control procedure for control and recording of transactionspertaining to the rendering and sale' of services and sale - of stone ballast. Ourevaluation did not reveal any major weakness in the internal control procedure.There were no transactions during the year that need to be entered in the registeredmaintained in pursuance of section 301 of the Companies Act 1956.The company has not accepted any deposit from public within the meaning of section58A of the Companies act 1956.In our opinion the company has an internal Audit system commensurate with its sizeand nature of its business.As Informed to us by Management, the Central Government has not prescribed themaintenance of cost records under clause (d) of sub section (1) of section 209 of theCompanies act 1956, to the company.(a) The company Is regular in depositing the undisputed statutory dues includingprovident fund, Income Tax, Custom Duty, Sales Tax, Service Tax an.dother statutorydues "(b) There are no dues of income tax, custom duty, Exercise Duty and Cess notdeposited on account of dispute. The particulars Service tax and entry tax as at 31st

March 2009 which have not been deposited on account of a dispute are as follows:

Name of theStatute

Nature of Amount underDues dispute not yet

de osltedService Tax 1145.40 Lakhs

Periods to whichthe amountrelates.2002 to 2008

RajasthanTax on Entryof Goods intoLocal Areas1999

Entry Tax 5.37 Lakhsincludinginterest &Penalty

A Y 2003-04 &A Y 2004-05

CA-'

x.

xi.

xii.

xlii.

xiv.

xv.

(--, xvi.

xvii.

xviii.

xix.

xx;

xxI.

AURANGABADKAR & co.CHARTERED ACCOUNTANTS

In our opinion, the company has accumulated losses at the end of the financial yearnot In excess of 50% its net worth. ,The Company has not incurred cash losses in thecurrent financial year as well as in the previous financial year.In our opinion and according to Information and explanation given by the managementto us and from the examinations of th~, records, the Company has not defaulted inrepayment of dues to bank.According to the information and explanations given to us the company has notgranted loans and advances on the basis of security by way of pledge of shares,debentures and o~her securities.In our opinion, the company Is not a chit fund or a Nidhi / Mutual Benefit Fund ISociety. Therefore the provision of 'clause 4(xlll) of the Companies (Auditor's report)Order, 2003 are not applicable to the company. .The company Is not dealing in or trading with shares, securities, debentures and otherinvestments. Accordingly, the provision of clause 4(xiv) of the companies (Auditor'sReport) Order, 2003 are not applicable to the company.According to the information and explanation given to· us, the company has notextended any guarantee for loans availed by others from bank or financial institutions.According to the Information and explanations given to us and from the examinationsof records, the company has not availed term loan from banks and financialinstitutions during the year. .According to the information and explanations given to us and from the examinationsof the records, the funds raised by the company on short term have not been used forlong-term investment and vise versa.According to the information and explanation given to us and from the examinations ofthe records, the company has not made any preferential allotment of shares .

.According to the information and explanation given to us and from the examination ofthe records, the company has not Issued any debentures.According to the information -& expLanstlons.given to us and from the examinations of -records, the company has not raised money byway of public issue. .According to the Information and explanations given to us and from the examinationsof the records, no fraud on or by the company has been noticed or reported during thecourse of our audit.

For Aurangabadkar & Co.Chartered Accountants

Ashish M JoshiPartnerM.No. 106298

Clarifications under Section 217 of the Companies Act, 1956. Reference to the AuditorsReport and annexure thereto dated 5.6.2008 of MIs Aurangabadkar & Co. CharteredAccountants, Nagpur on the Accounts of MIs Mineral Exploration Corporation Limited,Nagpur for the year 2008-2009.

COMMENTS OF STATUTORYAUDITORS

1) Certain Assets sold, discarded, leftor lost in boreholes have not beenwithdrawn from Gross Block. Themanagement is unable to estimateits effect on profit for the year.

2) Non-Provision for payment of ServiceTax of Rs. 666.74 Lakhs.

•Place : Nagpur,Dated : 11/8/2009

REPLY/CLARIFICATiON OF THEMANAGEMENT

This has already been disclosed vide NoteNO.3 (iii) of Schedule "V" notes on BalanceSheet and Profit & Loss Accounts formingan integral part of accounts.

This has already been disclosed vide NoteNo.4 of Schedule "V" Notes on BalanceSheet and Profit & Loss Accounts forming anintegral part of accounts.

This is informative in nature and the samehas already been disclosed vide Note NO.10of Schedule "V" Notes on Balance Sheet andProfit & Loss Accounts forming an integralpart of accounts .

Sd/-(Dr. A.K. LOMAS)


.COMMENTS OF T"l~ C M,PTROLLER AND AUDITOR GE~ERAL OF/'NDIA IJN))Et snCTION 19(4) OF TIIE'COMPANfES ACT, '1956 ON TflUACCOUNTS JF, MINEl L,~.xpi'()RATION CORPORATION LIM1TEIJ,.

, NI\(iPlJR, 1"01 THE YEAj~ ENI)ED 3/ ,MARCI-i 2009:,

The prep, ation of finan ial.stntcl11ents of Mineral Exploration Corporation Limited,

Nag-pur. fqr the y ar e,ndcd.31 Ma ~i~200.9 il.lac·co~dal1ce with. the ~na~ciaJ reporting framework

prescribed ul~der the Companies A?l, 1.956 is the responsibility 'of the man-~gement of the

company. The :,t tutory auditors al'pointed' by the COlllpt~lIel; a~d Al;Iditor General of ~ildia.under SecLiOll 61 (2) of the COli pani~s.· Act. 1956 ul:e responsible, for expressing. opinion on

· these fiiumcial st<lcments under ctiOl.l 2i7 of the Compa'nies' Ac~ 1956 baS~d on independent

audit in 3ccortlan'e with the nll<! irtg un~1 lISsi.tr~lIce standards prescrib~d by" the'if professional

body, the Institut ofthcir i\.lidit port dated 05 iU/1e 2009:

1. onbeh U~ of' the Co, plrollet and Auditor General .of India, have conducted a, supplementary a\ di~ under Secti n (j 190) (b) ot'the Companies' Act, .1956 of the financial· statements of Mil ern" E:qiloratiOl Corporatic;m Limited~' Nagpur, fo~ the year ended 31 Ma~ch

. ..... . '. .2009. This SliPi'll n1eJ1tary uU,clH has. been carried out ind"epen~ent1y. wilho~t access to. the

, .. . .· work.ing papers the statutory . ud-itors -and is limited prim~riIy to inquiries of the statutory

auditors ~nd coin\ any pcrsonnd a d a selective e~arnination pc .s~ine of the accounting .reco~ds.

On the bnsis orm audit nothing s gnlficant has come to my kno~ledge which would giv.e rise to'.

n~y COllJOlent.up< n 6; suppl~mCl t t~' Sl~tutory~AUdito'r;' r~PQrt',under Seetion' 619(4) of the'COllllianics Act,.1 56.

For arid on the behalf of the, Co~plrol1er & Au4itor General of India .

, I I t "l! .} fj •...

.. /-~9~'·... {9haf9'1a MeeDai) . .

PrmCI)ial DIrectOr Of Commercial Audit& Ex-officio Member, And it Board - III,

. New Delhi

Pial'c.:. .New D IhiDated:' .hlly 2U09

~ Mineral Exploration Corporation Limited•••BALANCE SHEETAS AT 31ST MARCH,2009

As per our report of even datefor AURANGABADKAR & CO.CHAR~ ~C_q)UNTANTS

[ASHIS~.Partner

Mem no. 106298~~L~

[C.P. CUPT;\]Director (Finance)

CAMP, NEW DELffiDate:05.06.2009

(Rs In Lacs)As at 31.03.2008

~9'[BISWAJIT'DORA]

~

Company Secretary

~~ .., . R. A. K.LOMAS]Chairman-cuM-Managing Director

e Mineral Exploration Corporation Limited~

PROFIT AND LOSS ACCOUNTFOR THE PERIOD ENDED 31ST MARCH 2009.

(Rs In Lacs)YEAR ENDING YEAR ENDING

31.03.2009 31.03.2008

9580.96 9086.47691.72 518.79

317.53 (159.02)10590.21 9446.24

1468.49 1253.42531.86 509.06

7858.64 6303.280.00 92.38

290.35..

325.20·2.31 2.81

10151.65 . 8486.15

438.56 960.09(95.05) (3.65)1343.51 956,44

121.54 449.6466.53 (121.76)17.00 17.5014.83 0.00

123.61 611.06- - -(1008.97) (1620.03)

(885.36>1 (1008.97)'.

EARNINGSIncome from works LOth.erIncome MAccretion (Decretion)to WIP / Work Don~ -not due & not billedand Stock. N

OUTGOINGSOperational 0Establishment PPersonnel QProvisions RDepreciationAmortisation and Write off: S

Profit before Prior Period AdjustmentPrior Period Adjustment(Net) T

Profit before taxesProvision for Taxation:Current taxDeferred taxFringe Benefit TaxIncome tax adju~tments for previous years (Net)

Profit AfterTaxesPrbfit/(Loss) for the previous yearbl"Qughtdown . .Profit/CLoss) Carried Over toBalance Sheet' .

Earning per Sh~re (Rs.) - Basic & diluted(Face Value of Rs. 1000/= each(Refer Note 21 Of Schedule V)

Accounting Policies U

As per our report of even datefor AURANGABADKAR & CO.CHARTf'ffi> ~~<;OUNTANTS

[ASHIS~lPartner

Mem no. 106298

CAMP, NEW DELIDDate: 05.06.2009

~>L'VL.-yP[C.P. GUPTA)

Director (Finance)

[BIS~?o:RA]

~

Company Secretary

D~~ .R. A. K. i:6MA'Sl

. Chairman-cum-Ma~aging Director


AUTHORISED1250,OOO(1250,OOO)Equity Shares ofRs.1000/- each

1195500 (1195,500) Equity Sharesof Rs.1 000/- each fully paid up

GRANT FROM GOVERNMENTBalance as per last Balance SheetLess:Transfer to Other Income/Adjustment

DEFERRED TAX LIABILITYOn account of ;

Depreciation

As at 31.03.2009SCHEDULE 'A'

SHARE CAPITAL

SCHEDULE'S'DEFERRED GOVT. GRANT

141.8816.44

SCHEDULE 'C'DEFERRED. TAX (ASSET)/ LIABILITY

DEFERRED TAX ASSETOn account of

Provision for bonusProvisiolJ for doubtful debtsProvision.for doubtful advancesProvision for employees benefits

NET DEFER-RED TAX (ASSET)/ LIABILITY.$

0.9375.9821.0330.13 128.07

179.53


158.3616.48

13.5685.5721.5876.53 197.24

112.99

~ Mineral Exploration Corporation Limited••••

SCHEDULE'D 'FIXED ASSETS

I. I;'~.

GROSS BLOCK DEPRECIATION RESERVE NET BLOCK

DESCRIPTION BALANCE ADDITION DELETION BALANCE BALANCE ADDITION DELETION PRIOR BALANCE NET BeOCK NET BLOCKAS AT DURING DURING AS AT AS AT DURING' DURING PERIOD AS AT AS AT AS AT·

1-Apr..Q8 THE YEAR THE YEAR 31-Mar..Q9 1-Apr..Q8 THE YEAR THE YEAR ADJUSTMENT 31-Mar..Q9 31-Mar..Q9 31-Mar..Q8FREE HOLD LAND 25.27 0.00 0:00 25.27 0.00 0.00 0.00 0.00 0.00 25.27 25.27

LEASE HOLD LAND 260.23 0.00 0.00 260.23 18.62 2.62 0.00 0.00 21.24 238.99 241.61

BUILDINGS,STRUCTURESAND TENTAGES 699.28 1.81 5.83 695.26 220.41 12.68 5.83 0.00 227.26 468.00 478.87

ROADS 3.20 0.00 0.00 3.20 1.27 0.06 0.00 0.00 1.33 1.87 '. 1.93I

PLANT AND MACHINARY 2,973.65 87.59 54.58 3,006.66 2,342..29 82.82 51.84 0.00 2,373.27 633.39 631.36,

ACCESSORIES 585.58 124.96 180.46 530.08 548.26 108.97 180.40 0.02 476.85 53.23 37.32 .,.ELECTRICAL INSTALLATIONS 33.60 0.00 2.20 31.40 27.38 0.82 2.0~ 0.00 26.12 5.28 6.22

INSTRUMENTS & EQUIPMENT 1,149.37 69.61 0.07 1,218.91 716.90 40.10 0.07 0.00 ' 756.93 461.98 432.47

FURNITURE & OFFICEAPPLIANCES 215.20 4.01 0.22 218.99 173.53 3.70 0.22 0.00 177.01 41.98 41.67

SYSTEMS· TANGIBLE 231.01 16.13 0.00 247.14 195.85 7.78 0.00 (0•.17) 203.46 43.68 35.16- INTANGIBLE 196.73 0.00 0.00 196.73 187.07 3.02 0.00 0.00 190.09 t.64 9.66

VEHICLES 520.56 144.72 17.66 647.62 395.63 27.78 ·16.79 0.00 406.62 241.00 124.93.-' ..TOTAL 6,893.68 448.83 261.02 7,081.49 4,827.21 290.35 257.23 (0.15) 4,860.18 2,221.31 2,066.47

Figures of Previous Year 10,373.22 396.34 3,875.88 6,893.68 8,369.99 325.20 3,867.46 (0.52) 4,827.21 2,066.47 2,003.23

Scrap Assets as on 31.03.2009 3,972.55 3,965.63 6.92Scrap Assets as on 31.03.2008 . 3,775.11 3,768.18 6.93

••IIIIi;:~

P,..L0•''i!II•••

IIII

II


SCHEDULE 'E'INVENTORIES

(As taken ,valued and tertifiecj by the Management)

Stores and Spares 473.05 476.48Lo'ose Tools .' 24.36 26.39Stores and Spares in Transit 8.16 4.55Less:Provision for Losses in Transit 0.28 0.28

7.88 4.27Finished Stock (Stone Ballast) 10.58 35.07 ,

515.87 542.21

SCHEDULE 'F' -WORK-IN-PROGRESSI WORK DONE· NOT DUE & NOT ~ILLED

(As assessed and certified by the Management),

Work done not yet due for payment ..640.29 649.88

Work done not billed 424.50 71.65

Workshop work in progress 1.60 2.841066.39 724.37

- -

SCHEDULE 'G'SUNDRY DEBTORS'·

Debts outstanding. for a periodexceeding six months

Considered goodConsidered Doubtful

504.99223.55728.54

853.32251.77

1,105.09

3,847.92

251.773596.15

223.553700.51

e Mineral Exploration Corporation Limited••••

Particulars As at 31.03.2009 As at 31.03.2008

SCHEDULE 'H'CASH AN"O BANK BALANCES

'.Cash In Hand 10.26 8.32

Rehtittances In Transit 0.25 27.00..Cheques in hand 134.27 0.00Balances With Schecf(rled Banks:

On Current Accoupts 207.86 173.46Cash Credit Account 81.53 160.99On Short Term Deposit Accounts 4,990.00 5279.39 4,924.00 5258.45

(including FOR of Rs.400.00 (Rs.500.00)against margin money) .

5424.17"

5293.77

SCHEDULE 'rI

LOANS AND ADVANCES

Loans & Advances Recoverable in cashor In kind or for value to be received

Considered good:Secured 7.50 12.83Unsecured 1,056.97 . 477.30

Considered doubtful(Unsecured) 61.89 1126.36 63.50 553.63(Iricl. RsA.58 for capital expenditurePrevious year Rs.4.58)

- . - - . -- -.Advance taxlTax Deducted At Source 732.71" 423.10Less:Adjustedagainst Income Tax Provision 121.~ 611.17 190.18 232.92

Balances with customs 1.42 1.42

Cenvat Credits Receivable 29.94 25.911768.89 813.88

Less: Provision for doubtful advances 61.89 63.501707.00 750.38

..



SCHEDULE 'J'CURRENT LIABILITIES AND PROVISIONS

CURRENT LIABILITIES .•....,

,"Sundry Creditors . 331.02 333.04

Advances against works 509.58 297.49•.

Secu~ty and otJ;ler deposits 127.41 68.68

Liabilities for expenses 1815.25 265.67

Other Liabilities 534.57 I 638.83

3317.83 • 1603.71PROVISIONS:

For Gratuity 17.06 17.33

For TaxationIncome Tax Liability 121.54 449.64Less: Advance tax paid/adjusted 121.54 '0.00 190.18 259.46

- 17.06 276.79

SCHEDULE'K'-DEFERRED REVENUE EXPENSES

Stamp duty and Filing fees: ..

Opening Balance 17.79 20.01Add:Exp. incurred dUring the Yes 0.00 0.00

17.79 20.01Less: Expenditure Amortised 2.22 15.57 2.22 17.79

15.57 17.79

particulars As at 31.03.2009 As at 31..03.2008

SCHEDULE'L'INCOME FROM WORKS

Contractual Promotional Total

DriOi,ng 6,220.56 443.67 6664.23 5960.96.'Mining ,792.69 0.00 792.69 1004.33

Geology 1,393.18 124.13 1517.31 1650.53.Laboratory 152.20 45.62 197.82 188.31

Coal Sampling 163.37 - 163.37 200.46

..Sale of Stone Ballast 245.54 - 245.54 81.88

.. ,8,967.54 613.42 9580.96 9086.47. , :

SCHEDULE 'M' "

OTHER INCOME

Interest on Advances to Staff 0.02 0.08

-Interest on Short Term Deposit (Gross) 492.38 372.18Tax deducted at source Rs.104.11{ Rs.38.99)Sale of Scrap 28.70 31.38

Profit 01') Sale of A.ssets' - - -- - - 22.87 24,.97

Grant Written Back 16.44 16.48

Liabilities/Provisions no longerrequired Written Back 46.79 1.00

Income From Rent 40.56 47.46

Miscellaneous Income 43.96 25.24691.72 518.79

.'

e MineralExploration Corporation Limited~


e .Mineral Exploration Corporation Limited~


SCHEDULE '0'OPERATIONAL EXPENSES

Stores & Spares 458.92 462.61

Pe~ol,Oil & Lubricants 553.62 508.32"

Other Material consumed .44.24 46.42

.•Site Maintenance Expenses 120.63 105.44

.Other Site Expenses 64.10 18.76-

Stone Ballast Expenses: •Purchase of Stone Ballast (Finished) 79.42 39.61

Other Stone Ballast Expenes 125.35 .. 56.07 ,204;77 95.68,

Repairs to:Machinery 62.16 87.24Vehicles 25.23 15.29Others 30.31 117.70 23.66 126.19-

Miscellaneous - - - 15.32 2.881579.30 1366.30

. Less:- Workshop Expenses Transferred to 110.81 112.88Capital and Other Accounts

1468.49 1253.42

•


As at 31.03.2009SCHEDULE 'p'

ESTABLISHMENT EXPENSES


13.96 15.9912.56 16.46

1.29 1.2226.97 54.78 21.74 55.41

35.44 44.45

15.64 15.83

19.79 18.36

156.89 145.50

24.35 27.21

25.91 22.34

53.10 45.50

22.52 21.43

6.51 4.72

5.80 4.79

0.00 0.40

0.73 0.47

1.65 1.65

2.88 1.79

1.11 1.13

1.25 0.09

58.14 . 53.35

0.00 0.18

5.01 0.00531.86 509.06

Repairs to:BuildingMachineryVehiclesOthers

Freight& Handling Charges

Petrol,Oil & Lubricants

~Mineral Exploration Corporation Limited,....(Rs In Lacs)


SCHEDULE 'Q'PERSONNEL EXPENSES

Sa'laries,Wages, Bonus and AllowanCes"

6371.77 4778.93

Contribution to provident Fund andOther Funds 1298.53 1311.68

A

Medical and Welfare 218.84 252.24

Workmen Compensation & Accident Benefits 12.30 -7901.44 . 6342.85

Less:- Workshop Expenses Transferred to •Capital and Other Accounts 42.80 39.57

7858.64 .6303.28

" .

SCHEDULE 'R'PROVISIONS

PROVISIONS FOR :-Doubtful Advance

-0.00 0.37

Doubtful Debts ·0.00 92.01

0.00 92..38. -

~ Mineral Exploration Corporation Limited~

(Rs In Lacs)Particulars As at 31.03.2009 As at 31.03.2008

SCHEDULE'S'AMORTISATION AND WRITE OFF

..

AMORTiSATIONStamp duty and Filing fees 2.22 2.22

"WRITE-OFFBad Debts 1.33 1.28Less: Adjusted against openingProvision for DoubtfuL Debts 1.24 0.69

0.09 0.592.31 2.81

If

SCHEDULE orPRIOR PERIOD ADJUSTME"NTS .

INCOME:

Income from works (95.81) (10.90)

Other Income 0.08 (0.21)- (95.73) (11.11)

EXPENSES

Ogerati.gnal Expenses - .- 1.07 . (7.48)

Establishment expenses" (O.40) 0.32

Pe~onnelExpenses (1.20) 0.22

Depreciation (0.15) (0.52)

(0.68) (7.46)

NET INCOMEI{EXPENDITURE) (95.05) (3.65)

e Mineral Exploration Corporation Limited

ACCOUNTING POLICIES

1. BA'SIS OF PREPARATION OF FINANCIAL STATEMENTS

The fmancial statements are prepared under historical cost convention, on accrualbasis of accounting, and in accordance with the generally accepted accountingprinciples in India and provisions of Companies Act, 1956.

a. Amount due for payment in respect of bills submitted for,work done is considere~ asincome from works. Not due portion of bil~s submitted and value of work done notbilled is considered as Work Done- Not Due & Not. Billed. '

- . - .

b. Temporary structures are capitalized either at the lower of the completion certificatevalue and amount spent as per books of account or where the completion certificatedoes not ~pecify the value, at the amount spent as per books of account.

c. 'Temporary structures at closed projects, steel structures issued for use ten yearsearlier and tentages and accessories issued for use three years earlier are withdrawnfrom Gross Block.

d. Unidentifiable assets such as Drilling Accessories, 01 Pipes, Rails, etc., when sold orlost in borehole, are withdrawn from Gross Block on the basis of " first in first out".

e. Impairment of Assets: Carrying amount of fixed Assets, if exceeds recoverableamount on reporting date, the carrying amount of fixed Assets is reduced torecoverable amount. The recoverable amount is measured as the higher of the netselling price and 'the value in use determined by the present value of estimated futurecash inflows.

Depreciation is charged on straight lin<;:method in accordance with schedule XIV ofthe Companies Act, 1956 at the rates in existence as at the end of the accounting year(applied uniformly for the year to all assets) except in the following cases :

~ Mineral Exploration Corporation Limited-...

c. Intangible Assets (SoftWare) are depreciated over a period of 3 years withoutretainitig any residual value.

d. The calculation of depreciation is done from the beginning of the quarter in which theasset is issued for u~e including items on which rate of depreciation is 100%.

Government Grant for specific Fixed Assets is recognized proporti~nately in Profit &Loss Account over the useful life of the assets.

b. Unserviceable diamond bits - at 5% of cost on weighted average basis, otherunserviceable stores E.\l1~sp~es _at3% of cost on weighted 'average basis.

c. Surplus stores, stores & spares and loose tools issued for use but still Serviceable - at50% of cost on weighted average basis. .'

e. Boulders (Stone), Finished stock and stock in process of stone ballast are valued atlower of cost or net realizable value.

7. ,VORK-IN-PROGRESS / WORK DONE NOT DUE & NOT BILLED

a. Drilling, Mining and Laboratory. work done not billed/work done not due for paymentfor which contract have been executed/approved is assessed at contract/estimatedrates less estimated expenditure t9 be incurred.

c. Drilling, Mining and Laboratory work done pending formal approval is valued atdirect cost or net realizable value whichever is less.

~ Mineral Exploration Corporation Limited~

a. Detjned Contribution Plan:Contribution made to employees Provident FUnd is considered as defined contributionplan and contributions are charged to profit & loss account of the year as and whendue. .

b. Defmed Benefit Plan:Retirement Benefits in the form of Gratuity & leave encashment are considered asdefined benefit obligations and are provided for on the basis of an ~ctuarial valuation,using the projected unit credit method, as at the date of the balance Sheet. Thecompany has taken insurance cover for payment of gratUity and leave encashment toits regular employees and payments made to LIe are treated as part of plan:Assets.

c. As regards contingent workers, accrued liability of gratuity and leave encashment atthe year-end is provided for. . .

Stamp duty and filing fees payable consequent upon increase in authorized sharecapital is treated as deferred revenue expenditure and is-charged off in 10 years.

Borrowing cost attributable to the acquisition/construction/development of qualifyingassets is capitalized as part of the cost of such assets. A qualifying asset is one thatnecessarily takes substantial time to get ready for intended use. .

.-'•II

"-IIII

"(' -:if\

"

III-l•••~

IIIIII,•~

e Mineral Exploration Corporation Limited-NOTES ON ACCOUNTS(Figurs~ are given in lacs of Rupees)

ii. Claims not acknowledged as debts by the Company:

a) From employees and others Rs.55.17

b) From contra~tors and suppliers Rs.32.65

c) Additional compensation claimed by the

previous owner of the land & building at 8/5 Alipore

Park Road, Kolkata acquired by the company under

the provision of Land Acquisition Act, 1894. Rs.189.00 (Rs.189.00)

Interest from the date of claim has not been considered in. case of matters under -

(R.s:57.70)•(Rs.32.65)

litigation on the ground that it may prejudice the interest of the company

d) Entry tax alongwith inter~st apd p~nalty claimed by- , -

Rajasthan State Authority and disputed by MECL

in appeal to Dy.Commissioner Commercial Tax

(Appeal) Udaipur Rs.5.37 (Rs.5.37)

e) Some of the ex- employees of the company have filed the cases for payment of

wage revision arrears of 1992 and 1997. Amount of the same is not ascertainable.

£) Company has flIed writ petition in High Court against Award of tribunal in respect

of payment of regularisati<m benefits to retrenched 2145 contingent workers.;

Estimated financial implication on account of this works out to-Rs.2500. High Court

has directed not to enforce the award till further orders from High Court.

2. Estimated amount of contracts remaining to be executed on capital account and not

provided for Rs.182.18 (Rs. 260.79) net of advance

3. i. Central Government has not so far transferred the workshop and adjoining office

buildings including Nagpur Utility Complex at Seminary Hills, Nagpur in the name of the

Company. As a result, the value of the plot and building and depreciation on Building

have not been considered in the Accounts.,

~ Mineral Exploration Corporat1on Limited~

ii. Confirmation of title in respect of Free hold land of 2.30 acres at Hazaripahad, Nagpur,

Free hold land of 2.39 acres at Seminary Hills (adjacent to Administrative Building)

Nagpur, Lease hold land of 7 acres. at .0SI Complex Bandlaguda, Hyderabad, and

110.56 sq. meters area in the Scope Minar Project of SCOPE at District Center,'.~ .

Laxshminagar, Delhi is awaited.

Hi. Certain assets sold, discarded, left or lost in bore-holes have not been withdrawn from

the Gross Block due to difficulties in identifications / pending documentation and as such

profit 1loss on such assets could not be ascertained.

,4 Ministry of Mines vide their Letter No.3717195-MI dt 31-10-2002 indicated that Service

Tax is not applicable on promotional work being done on behalf of MinistrY of Mines as

the same is in the nature of Grant and discontinued the payment thereof. Accordingly,

MECL discontinued charging and payment of Service Ta~ on promotional work and

informed the same to the Central Excise Department. The Central Excise Department

vide their Letter No. IV(16)30-364/STS/ST/02/1544 dated 29-5-2003 has clarified that

Service Tax i~ payable on promotional ~ork also. The co~pa~y h;s taken up the matter

with the Ministry of Mines with· the request to provide a specific notification from

Ministry of Finance exempting promotional work being carried out by MECL from the

applicability of the Service Tax or to allow the company to claim Service Tax on

promotional work. The Govt. of India, Ministry of Mines vide their letter no.

37(11)12002-MI (Pt) dated 27/30 August 2007again. reiterated that service tax is not

applicable in the instant case of promotional work done by MECL. However, in case,

the Final report of the Project happens to be sold, then MECL, would :charge and realize

the service tax from the buyer of the report and remit it to Tax Agency and cost of the

Report shall be deposited to the Govt. of India's Exchequer. Accordingly MECL started

collecting the service tax at the time of sale of the report from the buyer. The amount

payable on this account works out to Rs. 666.74 (Rs.572.50) and has not been provided

in the books of account as the service tax, if any p~yable it is to be received from

Ministry of Mines and to'be paid to the Central Excise Department.

Further, the company has received adjudication order No. 21/ST/2008/C dated 26-5-2008

and 13/ST12008/C dated 28-11-2008 for the period 2002-03 to 2006-07 and for the year

e Mineral Exploration Corporation Limited.,.

2007-08 respectively from the Commissioner of Customs & 'Central Excise, Nagpurconfirming demand of Rs. 873.79 (service tax Rs. 436.89 and Rs. 436.90 as penalty) forthe period 2002-03 to 2006-07 and demand ofRs . .271.61 (Rs.135.80 as service tax andRs:, 135.81 as penalty) for the year 2007-08. Interest as applicable shall also be payable

", ,"

in addition to these demand not quantified in adjudication orders.

A

The company' has filed appeal before the Appellate TribunaICESTAT, Mumbai againstthe above adjudication orders of Commissioner of Central Excise, Nagpur. The

company has received permission of COD to persue appeal before the Tribunal for the.•period 2002-03 to 2006-07 and during the hearing on 5-5-2009 tribunal had stayed t~edemand of tax and penalty for the period 2002-03 to 2006:"07. As regard, 2007-08 the

company has filed the appeal before the appellate tribunal and approached' to COD for

necessary permission which is awaited.

5. In terms of D.P.E. letter no. 2(70)/08-DPE (WC) Government has approved

recommendation of 2nd pay revision Committee for revision of pay of Board level andbelow BGard-Ieve-lexecutives and non unionized supervisors inCPSEs w.e.f.L1.2007.'SiInilarly pay revision of non ,executives i~ also due w.e.f.1.4.2007, for which

negotiations ,are in progress. Accordingly provision for wage revision for executivesw.e.f. 1.1.2007 and for non executives w.e.f. 1.4.2007 amounting to Rs. 1530 lacs has

been made in the books of Accounts.6. Advanc,esdue from Officers:

Maximum amount due at anytime during the year '

Rs.1.08 (Rs.0.10)

Rs.O.OO ( Rs.O.OO)

Rs.1.19 (RsA.59)

Rs.O.OO (Rs.0.08)

(Rs.8.61)

(Rs.5.04)


i Salaries & Allowancesii PerquisitesHi. Contribution to Provident Fundiv.", Medical reimbursement

Rs.23.10Rs. 2~21Rs. 4.34'Rs.0.43

(Rs 17.34)(Rs 1.67)(Rs.2.07)(Rs.0.37)

The Chairman-cum-Managing Director and full time directors have the option to use the

staff car for purpos~s other than official duty up to a ceiling of 750 KM per month, on

payment at concessional rate, in accordance with the provisions of Govt. of India, vide

DPE a.M. No. 2(53 / 90-DPE(WC)-GIY dated 26th March, 1999 as amended from time

to time.

9. Expenditure on Public Relations and Publicity:

i. Salary, Allowances, etc.ii. Other Expenses

Rs.8.67Rs.l.06

(Rs.6.80)(Rs.2.77)

10. Balances under Sundry Debtors, Loans & Advances and Current Liabilities are subject to

Confirmation.

11. Sundry Creditors include Rs.6.94 (Rs 6.94 ) payable to Amko Mining & Drilling, a SSI

unit is_outstanding for more. than

the J?1atteris under litigation.

12. Paymentto Auditors:

(a) As a Auditor

(i) Statutory Audit fees

(ii) Tax Audit fees

(Hi) Service tax on Audit fees

Rs.0.75

Rs.0.26

Rs. 0.10 .

(b) Others

(i) T.A. & other Expenses Rs.0.07

13. i) Expenditure incurred on account of Social Amenities: -

a) Canteen expeI1diture Rs.7.12

Less: Recovery forResidential Quarters

(Rs 0.75)

(Rs 0.26)

(Rs 0.12)

(Rs 0.09)

(Rs.6.40)

(Rs.2.70)


ii) Fixed assets include cost of residential accommodation for employees Rs.245.76

(Rs.245.76). The cumulative depreciation provision includes provision for Residential

accommodation Rs.83.39 (Rs.79.38).

"

14. There are no employees in receipt of remUneration exceeding Rs. 24.00 per annum, if

employed through out the year or Rs. 2.00 per month if employed for part of the year.

i. Capital Goodsii. Components & Spare Parts

Rs. 79.20Rs. 0.00

(Rs.0.00)..(Rs.48.72)

3 (3)

97 (97)

.. - 17.-Expenditure in Foreign Currency:

i. Consultancy (0.00)

(Rs.3.40)

Qty in Curns -Value in Rs.Curr.Year Prev.Year Curr.Year Prev.Year

Boulders

Opening Stock 190.54 -(631.18 0-.32 TO.90)Purchases 35937.95 ' 09511.21 71.13 (33.12Consumption I Crushed 36128.49 (19951.85 _ 71.45 (33.70Closing Stock . 0.00 (190.54 0.00 (0.32Excess/Shortage .. - (:. - 1-

Production 22538.87 (12094.62 - -Wastage/Rej ects 13589.62 (7857.23) - -)STONE BALLAST (Finished)Opening Stock 7101.59 (2208.64) 34.75 (6.63Purchase 18952.46' (9459.61 79.42 (39.61Production 225.38.87 02094.6;2f - (-Sales 46442.46 (16661.28 232.21 (82.09Closing Stock 2150.46 (7101.59) 10.58 (34.75Excess/Shortage 0.00 (0.00) 0.00 (-

e Mineral Exploration Corporation Limited..,.

19. Defined Benefit Plans:

As per the Actuarial Valuation as on 31.3.2009 and recognized in the financial statementsin respect of Employee Benefit Scheme:

RetirementParticulars Benefits

... (Gratuity & Leave, Encashment)

08-09 07-081- Expensesrecognised in the statement of Profit & Loss ale for the year ended

31sl,March 2009..•.

1 Current service cost 180.10 131.76

2 Interest cost 321.17 322.263 Employee contributions - - -4 Expected return on plan assets ,229.54 182.995 Actuarial (gains)nosses - -6 Past Service cost - - ,

7 Settlement cost - -8 Losses/(gains) on acquisition! divesture - -9 Total Expenses 271.73 271.03

II Net Asset/(liabUity) recognised in the Balance sheet as at March 31St, 2009.1. Opening Net Liability 2390.19 2727.952. Unrecognised Transitional Liability 1636.77 2182.353. Expenditure during the year 271.74 271.034. Contribution paid 953.57 608.785. Closing Net Asset/(Liability) - - -71.59 -207.85.

Ill-Cha~ge in obligation during the year ended March 31sl, 2009

1. Present-value of defined benefit obligation at the beginning of the year 4015.75 4282.802. Current Service cost 180.10 131.753. Interest cost 321.17 322.264. Settlement cost - -5. Past service cost , - -6. Employee contributions - -7. Liabilities assumed on ,acquisition!(settled on divesture) - -8. Actuarial (gains)nosses 339.43 -331.339. Benefits payments 234.20 389.7310.Present value of defined benefit obligation at the end of the year 4622.25 4015.75IV- Change in assets during the year ended March 31S

t, 2009

1. Plan assets at the beginning of the year 2114.99 1712.962. Assets acqliired on Amalgamation in previous year - .3. Settlements - -4. Expected return on plan assets 229.54 182.995. Contributions by Employer 953.57 608.776. Actual Benefit paid 234.20 389.737. Actuarial gains/(losses) - -8.. Plan assets at the end of the year 3063.90 2114.99

e Mineral Exploration Corporation Limited..-.

V-The major categories of plan assets as a % oftotal planQualifying insurance policy: .

2. Expected rate of return on plan assets 9.40% (9.35%)

7.00% (5.00%)

20. Consequent upon implementation of Accounting Standard - 15 (Revised) regardipg

employees benefits, amount ,recognized as expenditure' and amount: remained

unrecognized as liability works out to Rs.54559 (545.59)and Rs.1636.i7 (2182.36)

respectively.

Weighted average no. of Equity Share

Outstanding (1195500)

Earning per Share (Rs.) Basic & diluted

Face value of Rs.l 000/- per'Share .' .'


22. Cashflow statement-

Particulars 31.03.09 31.03.08Rs.in Lacs Rs. In Lacs

Cash flow from operating activitiesNet profiV{Loss) Before Taxand prior period'~djustments 438.56 960.09

"Adjustment for: 'Depreciation 290.21 324.68Interest Income (492AO) (372.26)Profit on sale of assets •. (22.87) (24.97)Govt. Grant written back (16.44) (16.48)Deferred Revenue Expenses Written off 2.22 2.22

Operating profit before working capital changes 199.26 873.28

(Increase)/ Drecreasein Sundry Debtors (104.36) (980.05)(Increase)/ Decrease in inventories / Work in Progress ' (315.68) 140.39ncrease /{ decrease )in Current Liabilities & Provisions 1454.40 686.24lncrease)/Decrease in Current Loans & Advances (956.62) (268.00)

Cash inflow / (Outflow) from operating activities beforeTax and prior period adjustment I 277.02 451.86Prior period adjustment - (95.05) (3.S5)Income Tax (136.37) (449.64)Fringe Benefit Tax (17.00) (17.50)Net Cash inflow / (Outflow) from oper~ting_acti'lities (A) 28.60 " - (~8.9J)

- - -

Cash Flow from investing ActivitiesPurchase of Capital assets (417.,26) (307.66)Proceeds from sale of Assets 26.66 26.49Interest Received 492.40 372.26Net Ca~h inflow / (Outflow) from Investing Activities (B) 101.80 91.09

Cash Flow from Financing Activities 0.00 0.00Increase in Share Capital" 0.00 0.00

orrowing from Bank (Cash Credit) 0.00 0.00L.oan received from Govt. 0.00 ' 0.00Repayment of Loan (Govt.) 6.00 0.00Repayment of Loan (Cash Credit) 0.00 0.00Interest paid 0.00 0.00Repayment of Loan(others) 0.00 0.00

Net Cash inflow / (Outflow) from Financing Activities (C ) 0.00 0.00

Net Increase I{Decrease) in Cash I Bank Balance [A+B+C] 130.40 72.16

Cash & Cash equivalent at the beginning of the year {Refer Sct!. "H'l 5293.77 5221.61Cash & Cash equivalent at the closinCl of the year (Refer Sch. "H") 5424.17 5293.77NOTES: ,1. Cash Flow Statement has been prepared under the indirect method as set out in the AS-3

(Revised) issued bv the Institute of Chartered Accountants of India.

~ Mineral Exploration Corporation Limited-... .23. Segmentwlse Information as prescribed by AS • 17 Is given below:

Particulars Exploration Mining Other Unallocable TotalActivities Enterprise

Income From Works 8683.64 830.45 384.40 9898.49[including Accretion/(Decretion) to (7742.91) (872.32) (312.22) (8927.45)WIP]Other Income ... - - - 691.72 691.72,

(518.79) (518.79)- - -Total Income 8683.64 830.45 384.40 691.72 10590.21

(7742.91' (872.32) (312.22' (518.79) (9446.24)

Identifiable Operating Expenses..

6309.56 763.71 481..63 7554.90-(5136.44) (610.15) (336.11) - (6082.70)

Other Expenses - - - 2304.09 2304.09-(1983.06) (1983.06)

~Depreciation 234.01 7.20 3.95 45.18 290.34

(272.03) (7.52) (4.49) (41.16) . (325.20)

0iteoff - - - 2=31 2.31- - - (2.81) . (2.81)

Interest - - - - -- - - - -. -

Provisions - - - - 0.00- - - (92.38) (92.38)

Total Cost 6543.57 770.91 485.58 2351.59 10151.65(5408.47) (617.67) .. ,(340.60) - (2119.41) (8486.15)

ProfiU{loss) for the year 2140.07 - 59.54 . (101.t8) (1659.88) 438.56(2334.44) (254.65) (-28.38) . (-1600.61) (960.09)

Prior Period Adjustment . -95.04 -95.04(-3.65) (-3.65)

Extra Ordinary Item . 0.00 0.00( Waive'r of interest on Govt. loan) 0.00 (0)

Income Taxes 219.90(345.38)

•..rofiU{loss) 123.61(611.06)

Other InformationSegment Assets1. Fixed Assets 1172.06 13.31 34.16 1060.46 2279.99

(1140.10) (1.96) (38.11) (976.56) (2156.73)

2. Other Assets 4801.16 241.12 138.22 7233.44 12413.94(4318.90) (295.55) (103.04) (6189.39) (10906.88)

Total Assets 5973.22 254.43 172.38 8293.90 14693.93(5459.00) (297.51) .(141.15) (7165.95) (13063.61)

Segment Liabilities 210.72 13.89 14.97 3095.32 3334.89(245.80) . (23.40) (15.75) (1595.55) (1880.50)

Notes: The Company has considered Busi.ness Segment as the segment fordisclosure. The activities included in each of the reported segment are as under:* Exploration activit'l inclUdes Drilling, Geology and Geo-physicallogging and Laboratory.* Mining activity includes Exploratory / Developmental Mining. .* Other Activities includes Coal Sampling & Stone Ballast.

e Mineral Exploration Corporation Limited•••••

Registration DetailsRegistration No.Balance Sheet Date"

1607831-03-2009Date-Month~ Year

Capital raised during the year (Amount in Rs. lacs)Public issueNilBonus issueNil

Rights issueNilPrivate placementNil

m~ Position of Mobilisation & Deployment of Funds (Amount in RS. lacs)'.Total Assets15594.86Reserves & Surplus(Deferred Govt. Grant)

11955.00 125.44Secured Loans Unsecured LoansNil NilDeferred Tax Liability179.53

Total Liabilities15594.86 .Paid up Capital

-Net fixed Assets'2279.99 .Net Current Assets9079.05Misc. Expenditure15.57

Investments -Nil

Accumulated Losses885.36

IV. Performance of Company(Amount in Rs. lacs)Turnover'" Total E~penditure10590.21 10151.65Profit/(Loss) Profit/(Loss)Before tax after taX343.51 123.61Earning per Dividend rate %Share. Nil1003'4"'Includes other income

Item Code No.(ITC Code)Product DescriptionItem Code No.(ITC Code)Product DescriptionItem Code No.(ITC Code)Product Description

980 10004Mining Project980 10005Project for Exploration980 10009Other Projects.

o Mineral Exploration Corporation Limited~

25. Consequent upon approval from Govt. of India Ministry of Mines New Delhi vide letterNo. 40(l3)/2008-Ml dt. 6.8.2008, merger of 50% D.A. as Dearness pay has beenimp~emented w.e.f.1.8.08 along with arrears from 1.1.07 to 31.7.2008. Financial

"implication due to merger of 50% dearness allowance pay works out Rs. 920.

26. The company has Fundbased limit for Demand Cash Credit and Non fund based limit for. .

Bank Guarantee and Letter of Credit from SBI, Nagpur against hypothecation ofinventories, work in progress and book debts and equitable mortgage of Land & Building

situated at Seminary Hills. Nagpur.

(\ 27. The impact of significant events occurring after the Balance Sheet date and.~he approval

thereof is given effect to either by modification to the Balance Sheet and Profit & Loss

Account or by specific mention in the Directors Report.

28. As per. Section 441A of the Companies Act 1956, cess on turnover is leviable.Government~fIndia has not yet framed any rules/Guidelines in-this-regard and hence noamoJ,inton this'acceunt has been paid/provided for.

29. Previous year figures have been regrouped, rearranged and shown in brackets wherevernecessary.

As per our report of even date.for Aurangabadkar & Co.

Chartered Accountants. .

~ ~~[BISWAJIT DORA]Company Secretary

[ASmSH M. JOSliI]Pa·rtner .

Mem No.106298

L"'l ~~-l"\k'[C.P. GUPTA]

Director (Finance)[DR~·A.K.LOMAS]

Chairman-c~m-Managing Director

Place: Camp, New DelhiDate: 05.06.2009

DIRECTORS' REPORT FORTHEYEAR ENDED 31 MARCH, 2009DIRECTORS' REPORT FORTHEYEAR ENDED 31sT MARCH, 2009...

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