1.2.23 Provision for doubtful debts
Provision for bad and doubtful debts is made based on
a case to case review of sundry debtors outstanding for
more than two years Debts outstanding from private
parties for more than three years or balance dues
on account of levy of penalty which are considered
doubtful of recovery are invariably provided.
1.2.24 Research and development expenditure
Research and development expenditure is charged to
statement of profit and loss in the year of incurrence.
However, expenditure of capital nature relating to
research and development is treated in the same way
as non-current assets.
1.2.25 Mine closure expenditure
Financial implications towards final mine closure
plans under relevant Acts and Rules are technically
estimated, based on total available ore reserves of
all mines. The same are provided in accounts, on year
to year basis, after taking into consideration overall
production of all mines.
1.2.26 Net present value for diversion of forest land for
non-forest purposes
The liability is recognized on receipt of necessary
permission from the concerned authorities.
1.2.27 Restatement of prior period financials on material
error/omissions
The value of error and omissions is construed to
be material for restating the opening balances of
assets and liabilities and equity for the prior period
presented if the amount in each case of prior period
income/expenses exceeds 1% of the turnover of
the previous year.
Defined obligations - Disclosures as per Ind-AS19 : Employee benefits are as under -
A Defined Contribution Plans :
(a) Provident Fund : The Company pays fixed contribution at predetermined rates to Provident Fund Trust, which invests the
funds in permitted securities.
(b) Pension Fund : The Company pays fixed contribution to MOIL Group Superannuation Cash Accumulation Scheme (Defined
Contribution) [MOIL GSCA (DC)] Trust which invests the funds in LIC of India and National Pension Scheme (NPS).
B Defined Benefit Plans :
(a) Gratuity : The Group Gratuity Cash Accumulation Scheme is funded by the Company and is managed by MOIL Gratuity Trust
as per Payment of Gratuity Act,1972. Liability for gratuity is recognised on the basis of actuarial valuation. Eligible amount is
paid to the employees on separation by the Trust.
(b) Post Retirement Medical Benefit : The benefit is available to retired employees and their spouse who have opted for the
benefit. Liability for the same is recognised on the basis of actuarial valuation.
C Leave Benefits :
The accumulated earned leave, half pay leave/sick leave is payable on separation, subject to maximum permissible limit. The
liability for the same is recongised on the basis of actuarial valuation.
Characteristics of defined benefit plans:
Defined Benefit Gratuity plan: - To provide funding to cater gratuity benefit to employees as per provisions of The payment of Gratuity
Act 1972. Gratuity is calculated as per the provisions of said Act and is limited to maximum H 20 lakhs.
Defined Benefit Leave encashment plan: - To provide funding for terminal encashment benefits of accumulated leave to the credit of employees
account at the rate of last drawn salary which is restricted to maximum 300 days leave balance, as per the leave Rules of the Company.
Assumptions and limitations:
The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined
using actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual developments in the
future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due
to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.
The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields
available on Government bonds at the accounting date relevant to currency of benefit payments for a term that matches the liabilities.
Salary growth rate is company's long term best estimate as to salary increases and takes account of inflation, seniority, promotion,
business plan, HR policy and other relevant factors on long term basis as provided in relevant accounting standard.
Note 2.26 Provisions (Contd..)
Risk:
Management has entrusted four approved fund managers namely Life Insurance Corporation of India, Bajaj Allianz Life Insurance Co.
Ltd., Birla Sun Life Insurance and ICICI Prudential Life Insurance for managing the fund for Gratuity i.e. 60% is to be deposited with
LIC and maximum 40% with private insurers and Life Insurance Corporation of India for leave encashment. The performance of fund,
assumptions, discount rates and net assets value is evaluated for the reporting period by the management. The fund managers are
regulated by IRDA and its investment norms specified by Government of India as per Gazette Notification of 2016 as mentioned below.
The fund managers follow policies to mitigate risk which includes review of credit rating, exposure concentration, risk of tolerance
levels, regulatory compliance standards, standard operating procedure etc. Since majority of funds invested by fund managers are in
Government securities and having sovereign guarantees by Government of India, the risk is minimal.
3.3 Financial Risk Management
Risk management framework
The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management
framework. The Board of Directors has established the Risk Management framework for developing and monitoring the Company's
risk management policies. The Risk management committee regularly reports its activities to the Board of Directors through Audit
Committee on regular basis.
The Company's risk management framework is established to identify and analyse the risks faced by the Company, to set appropriate risk
limits and controls and to monitor risks and adherence to limits. Risk management framework and systems are reviewed regularly to reflect
changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures,
aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Board of Directors through Audit Committee monitors the compliance with the Company's risk management policies and
procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.
A Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and
deposits with banks.
(a) Trade receivables
The Company sales are generally based on advance payments and through letters of credit/ Bank guarantees. The trade
receivables in the books are mainly on account of credit sales to M/s SAIL MEL Limited (Chandrapur),SAIL Bhilai Steel Plant,
Salem Steel and RINL CPSEs under the Ministry of Steel.
Credit loss for trade receivables under simplified approach is detailed as per the below tables
(b) Financial instruments and cash deposits
Credit risk from balances with banks is managed by the Company's treasury department in accordance with DPE guidelines
& Company's investment policy. The credit risk of each investment is reviewed by the Company's Board of Directors through
Audit Committee on regular basis. The credit risk mitigation measures are in placed and followed regularly.
B. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities
that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as
possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Company's reputation.
Typically the Company ensures that it has sufficient cash on demand to meet the current and the expected operational expenses ,
including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably
be predicted, such as natural disasters.
Maturities of financial liabilities :
The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments.
C. Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company's
income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control
market risk exposures within acceptable parameters, while optimising the return.
(i) Foreign currency risk :
Since majority of the company's operations are being carried in India and since all the material balances are denominated in
its functional currency, the company does not carry any material exposure to currency fluctuation risk.
(ii) Interest rate risk :
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. Since the interest rates on fixed deposits are fixed, the company does not have any interest rate risk.
Further as the Company does not have any borrowings. Hence, there is no interest rate risk.
3.4 Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized
amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.
3.5 In accordance with paragraph 117 of Ind AS 1 Presentation of Financial Statements, we have made disclosures regarding significant
accounting policies, the measurement basis in Accounting policy No.1.1 (b) used in preparing the financial statements and the other
accounting policies used that are relevant to an understanding of the financial statements.
3.6 Hedge accounting is not applicable.
3.7 Capital Management
(a) Risk management
The primary objective of the Company's capital management is to maximise the shareholder value. The Company's objectives
when managing the capital are to safeguard their ability to continue as a going concern, so that they can continue to provide
returns for shareholders and benefits for other stakeholders.
The Board's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business. The Board of Directors and senior management monitors the return on capital, which the
Company defines as result from operating activities divided by total shareholders' equity.
For the purpose of the Company's capital management, capital (Equity) includes issued equity share capital and other equity
attributable to the equity holders. The company has no external borrowings as on 31st March 2025.
Income tax expense comprises of current and deferred income tax of current year in the statement of profit and loss. Deferred
income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements.
3.9 Income tax deducted at source from interest received by the company amounts to H 705.50 lakhs (H 617.53 lakhs). TDS from e-auction
and customers under section 194O and 194Q ^174.89 lakhs ( H 163.02 lakhs). Tax deduction certificates are awaited in some cases.
3.12Expenditure of capital nature for exploration- MOIL GMDC JVC yet to be incorporated: (Contd..)
6. GMDC has applied for mining lease application to the Gujarat Government which is under active consideration with Govt. of Gujarat.
7. Approval from GMDC for signing of JV is yet to be received.
8. MOIL has incurred H 765.27 lakhs(H 765.27 lakhs) in this project till date. As MOIL GMDC JVC is yet to be incorporated,
consolidated financial statement is not required to be prepared.
3.13Tripartite MoU with Govt. of Madhya Pradesh and Madhya Pradesh State Mining Corporation Limited :
1. MOIL had signed a tripartite MoU with the Govt. of Madhya Pradesh and Madhya Pradesh State Mining Corporation Limited
(MPSMCL) to explore the possibility of exploration and exploitation of manganese ore in four districts i.e. Balaghat, Jabalpur,
Jhabua and Chhindwara on 27.10.2016.
2. As per MoU, after exploration if the project is found technically and economically viable for mining, a JVC will be formed between
MPSMCL and MOIL, with MPSMCL holding 49% and MOIL holding 51%.
3. Govt. of Madhya Pradesh has reserved 487 Km2 and 850 Km2 areas in Chhindwara and Balaghat districts respectively vide
gazette notification dated 22.06.2021 under sub Rule (1) of Rule 67 of the Minerals (Other than Atomic and Hydrocarbon Energy
Minerals) Concession Rule 2016 to carry out exploration work.
4. MOIL has successfully completed exploratory core drilling in both districts, totaling 16,357 meters in Chhindwara and 55,188
meters in Balaghat. Based on the exploration and analysis, two blocks were identified as suitable for mining. Preparation of TEFR
is under process.
5. Draft JV was signed in the presence of the Hon'ble Chief Minister of Madhya Pradesh at Madhya Pradesh Mining Conclave
2024 on October 18, 2024, in Bhopal subject to the approval of the Ministry of Steel, NITI Aayog, DIPAM and other requisite
permission from various authorities.
6. MOIL has incurred H 1643.99 lakhs(H 894.04 lakhs) in exploration and related activities till date. The technical and economical
feasibility is yet to be established. Hence, the amount incurred is treated as Intangible assets under development-expenditure of
capital nature on exploration.
3.14MoU with Chhattisgarh Mineral Development Corporation Limited (CMDC):
1. MOIL entered into an MoU with the Chhattisgarh Mineral Development Corporation (CMDC) in January 2023 to explore
manganese and associated minerals in Chhattisgarh.
2. Govt. of Chhattisgarh has reserved 218 km2 area in district of Balrampur for exploration.
3. MOIL commenced exploration activities at Nilkanthpur and the surrounding areas in Balrampur district in June 2024, exploration
is under process.
4. Core drilling of 11628 meters completed as on 31.03.2025.
5. MOIL has incurred H 112.67 lakhs(Nil) in exploration and related activities till date. The technical and economical feasibility is yet
to be established. Hence, the amount incurred is treated as Intangible assets under development-expenditure of capital nature
on exploration.
3.16Land at Bobbili : The land at Bobbili was purchased by MOIL from APIIC for setting up of Ferro/Silico Manganese plant. A Joint
Venture Company was formed with RINL. Techno economic feasibility report (TEFR) was prepared by MECON in 2009. Based on the
viability of project as suggested in the TEFR certain initial formalities such as environmental clearances, soil testing etc. were carried out
and global tenders were floated for supply of main furnace and equipment. The tenders could not be finalized due to technical reasons
and in the interim period the tariff of electricity units was increased from H 2.50/kwh to H 5.00/kwh by the A.P Electricity Board.
In view of the above, revised TEFR was prepared by MECON in 2013 which indicated that the project was not be viable in view of the
power tariff increase and the reduction in market prices of the Ferro/Silico Manganese. The abnormal increase in power tariff caused
the delay in implementation of the project for such a long time. Management has made sincere efforts to implement the project.
However, the project could not be materialized.
MOIL requested APIIC for allotment of land at Appiconda, Vishakhapatnam by swapping arrangement against land purchased by MOIL at
Bobbili. Even after physical meeting with APIIC officials, till date no communication has been received from APIIC. Hence, financial impact
of such swapping is not ascertainable. The management is exploring the possibility to use the land for alternate purpose depending upon
viability. In view of above,H 907.79 lakhs i.e. cost of land H 898.92 lakhs and wdv of Building H 8.87 lakhs (H 908.73 lakhs i.e. cost of land
H 898.92 lakhs and wdv of Building H 9.81 lakhs) has been considered as contingent liability under Note No.3.15(i) (b).
3.17Bank guarantees are issued to Regional Controller of Mines, Pollution Control Board and others for H 4620.80 lakhs ( H 4164.27
lakhs) towards mining plan/ lease and others activities. The bank guarantees are backed by Bank deposits against which MOIL Ltd. has
created charge as per section 77 of Companies Act,2013. Bank deposits of ^1800.00 lakhs (^1800.00 lakhs) has also been earmarked
for Mine closure expenditure.
3.18Letters for balance confirmation of trade receivables and trade payables have been sent to the parties. Out of total trade
receivable outstanding of ^14555.21 lakhs as on 31.03.2025, H 1273.57 lakhs (H 20939.08 lakhs as on 31.03.2024, H 11546.66
lakhs) have been confirmed. Out of total trade payable of H 4605.11 lakhs as on 31.03.2025, H 751.61 lakhs (H 3810.83 lakhs as on
31.03.2024, H 746.90 lakhs ) have been confirmed. In respect of confirmations received, the company is in the process of scrutinizing
and reconciling the balances.
3.19Corporate Social Responsibility (CSR)
As per Section 135 of the Companies Act,2013 read with guidelines issued by Department of Public Enterprises, GOI, the Company is
required to spend, in every financial year, at least 2% of the average net profit of the Company made during the 3 immediate preceding
financial years in accordance with its CSR policy. The details of CSR expenses for the year are as under :
3.20 Revenue is recognized on the basis of energy injected by wind turbine generator of 15.2MW capacity into grid for sale, at tariff
rate agreed in power purchase agreement.
3.21 Power is generated at 4.8MW wind turbine generator units and are captively consumed at mine/plant.
3.22 Power is generated by solar power generating panels at head office, Munsar, Tirodi, Ukwa and Balaghat are used for captive
consumption at HO/mine/plant.
3.23 EPS as on 31.03.2025 (31.03.2024) is calculated on weighted average paid-up share capital.
3.26During FY 2022-23 a case of syphoning of Government fund by an employee was detected through a complaint received under
Public Interest Disclosure & Protection of Informer Resolution (PIDPIR) by Chief Vigilance Officer of the Company. As per the advice
of Ministry in consultation with CVC, the case has been handed over to independent investigation agency. The amount involved in the
case is not significant considering that the value of transactions under investigation is approx.H 135.00 lakhs.
3.27Assets held for Sale: Assets classified as held for sale during the reporting period were measured at the residual value on the date
of such classification. Consequently, no impairment loss was identified on these assets. There has been no material change in the value
of such assets after the date of initial classification as assets classified as held for sale. These assets are expected to be disposed within
the next twelve months.The fair value will be established when the assets are auctioned.
3.28 Disclosures - Other Intangibles Assets (Ind AS 38 and Ind AS 106)
The company in earlier years accounted for exploration and evaluation assets related activities under mining rights related to particular
mining lease. In the current year only a separate line under Note 2.3 is shown for better presentation as “Exploration and evaluation
assets.” The total amount transferred from mining rights to exploration and evaluation assets is ^ 1132.63 lakhs and its corresponding
depreciation amounts to ^ 134.06 lakhs is shown under Note No 2.3 -Other Intangibles Assets.
Trade Receivable includes sale of goods, directly receivable, recognised as company has unconditional right to payment from the
moment performance obligation is satisfied.
Contract liabilities includes advance received from customer which will be adjusted towards supply of goods
3.30
(a) Financial Deposits are not discounted due to the uncertainty of their final maturity dates, has been classified under
Note No. 2.7(b)(iii).
(b) Adjustment of advances to others is pending due to the non receipt of vendor invoices, has been classified under
Note No. 2.17(c) & (d).
Note : In respect of power generated at wind turbine generators and solar power plants, electricity charges of consuming units are
grossed up by the amount of credit given by Madhya Pradesh Electricity Distribution Company Ltd. and Maharashtra Electricity
Distribution Company ltd., in power bills on account of electricity units credited and the same is recognised as inter-segment revenue
of power generating unit so as to arrive at the segment revenue.
# Includes unallocated capital expenditure, corporate assets and corporate liabilities
3.35
(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.
(ii) The Company do not have any transactions with companies struck off.
(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,
(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall :
3.35 (Contd..)
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or
b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(vii) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961.
(viii) The Company doesn't have any Borrowings during the year and has never been declared wilful defaulter by any bank or financial
Institutions or any other lender.
(ix) The company pays foreign subscription fees, participation fees and other fees to its designated banks in INR, which inturn remit
the vendors in foreign currency.
3.36Corresponding figures for previous year have been shown in brackets and regrouped/rearranged wherever
necessary, to make them comparable.
Note No. 1 to 3.36 forms an integral part of financial statements.
As per our report of even date For and on behalf of the Board of Directors
For M/s TACS & Co.
Chartered Accountants
Firm's Registration Number : 115064W
Rakesh Tumane Neeraj Pandey
Director (Finance) Company Secretary
DIN : 06639859 M.No F5632
CA Chithra Ranjith Ajit Kumar Saxena
Partner Chairman-cum- Managing Director
Membership Number: 104145 DIN : 08588419
UDIN: 25104145BMKZYA1283
Place : New Delhi
Date : 30th July, 2025
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