At the 106th Annual General Meeting
Good Morning!
Ladies & Gentlemen
On behalf of the Board of Directors of the Company, it is a great honor
and privilege for me to extend a very warm welcome to all of you at the 106th
Annual General Meeting of your company.
The Directors' Report and the Audited Statement of the Accounts
for the year FY 2023-24 and the Notice to the Shareholders have already been circulated
and with your permission, I take them as read.
Performance of Your Company:
I am pleased to inform you that the Company has achieved some progress
towards resumption of mining operations.
Operational Performance:
The company achieved significant progress in the attempts towards
bringing the mines into operation. Mining operation in Bagiaburu mines started in
December'2023. The clearance of Hon'ble Supreme Court has been received for
resumption of mining operations subject to obtaining all necessary clearances and sale of
undisposed stock of minerals in these mines. The company is in the process of obtaining
the clearances for other two mines, namely: Belkundi & Bhadrasahi.
The company is vigorously pursuing the matter for obtaining statutory
clearance with the state government and central government authorities, so as to resume
its mining operations in Belkundi and Bhadrasahi at an early date.
Financial Performance:
Total earning of Rs 89.38 Cs includes sale of old stocks of Rs 82.28
Crs and interest received from the term deposits of Rs 3.70 Crs during the FY 2023-24. The
interest income reduced during the year from the previous year due to depletion of funds
on account of repayment of EMI against Short-term loan.
On the other hand, the interest expense increased to Rs. 30.61 Cr in
current financial year-2023-24 as compared to Rs. 24.43 Crs in previous financial year due
interest liability against the Short-Term Loan of Rs.310 Cr taken for payment of
compensation and interest bearing Trade advance received from RINL.
Outstanding balances of Short Term (ST) and of Funded Interest Term
Loan (FITL) which were 156.40 Crs and Rs. 17.20 Crs respectively as on 31.03.23 were paid
off during the financial year. There is no loan outstanding as on 31.03.2024.
Profit/ (Loss) before tax stood at Rs. (530.88) Lakhs compared to Rs.
(2721.96 Lakhs for the previous year. Profit/(Loss) after tax was Rs. 281.91 Lakhs as
compared to Rs. (1654.21) Lakhs in the previous year.
Looking Ahead
Public Hearing of Belkundi mines was conducted successfully on
17.08.2024. Co-terminus Forest Clearance (FC) for Belkundi mines was granted by MoEF &
CC, Govt. of India. Environmental Clearance for Belkundi mines will be obtained after
complying and furnishing all the additional information sought by EAC, MoEF & CC.
Mining operation likely to be resumed by 1st quarter of FY 2025-26.
Exploring the possibility for enhancement of production capacity in
near future through up gradation in technological aspects is incorporated in the MDO
contract for the operationalization of Belkundi mines.
Forest clearance of Bhadrasahi Mines is pending for payment of NPV of
Rs 78.20 Crs (approx.).
The company is vigorously pursuing the matter for obtaining statutory
clearances with the state government and central government authorities, so as to resume
its mining operations in Belkundi and Bhadrasahi at an early date.
Dividend for the year FY 2023-24
In view of accumulated losses incurred till FY 2023-24, your company
has not proposed any dividend for the year 2023-24.
Corporate Governance
OMDC as a responsible Corporate citizen strongly believes in complying
with the basic principles of Corporate Governance i.e. accountability, transparency,
fairness and responsibility. Your Company is following the statutory requirements under
the Companies Act, 2013; SEBI LODR Regulations, 2015; and Guidelines on Corporate
Governance for Central Public Sector Enterprises, 2010 issued by the Department of Public
Enterprises along with the Secretarial Standards issued by the Institute of Company
Secretaries of India.
Your Company has been adhering to the principles of good Corporate
Governance so as to ensure ethical and efficient conduct of the affairs of the Company.
OMDC aims at not only its own growth but also maximization of benefits to the
shareholders, employees, customers, government and also the general public at large.
For this purpose the company is continuously striving to improve its
level of overall efficiency through good corporate governance practices in all its
operations which are vital to achieve its Vision.
Acknowledgement
On behalf of your Company's Board of Directors, I wish to convey
my sincere thanks to the valued Shareholders for their continuous support and reposing
trust on us. This motivates us to excel in all our pursuits and constant endeavor to
create value for the stakeholders.
I take this opportunity to thank the Government of India, Ministry of
Steel, Ministry of Mines, Ministry of Environment and Forest& Climate Change, Ministry
of Corporate Affairs, other Departments of Government of India, Government of Odisha, and
all other Authorities and Regulatory bodies for their unstinted support and valuable
guidance.
I also appreciate the continued and dedicated efforts put in by all the
employees/unions to overcome many challenges faced during the year. Last but not the
least, I would like to thank my colleagues on the Board who have given their valuable time
and assistance in charting Company's progressive move.
I thank you all once again and offer my best wishes for a very joyous
festive season ahead.
Thank you and Jai Hind.
|
A K Saxena |
|
(Chairman) |
| Dated: 05.12.2024 |
|
| Place: Visakhapatnam |
|