annual report - gmdcltd

57th

Annual Report2019 - 2020

GUJARAT MINERAL DEVELOPMENTCORPORATION LIMITED

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ANNUAL REPORT 2019-2020BOARD OF DIRECTORS

CHAIRMANShri Manoj Kumar Das, IAS

MANAGING DIRETORShri Arunkumar Solanki, IAS

COMPANY SECRETARYJoel Evans

STATUTORY AUDITORSM/s. Soni Jhawar & Co. Chartered Accountants

REGISTERED OFFICEKhanij Bhavan132 Feet Ring Road, Near University GroundVastrapur , Ahmedabad – 380 052Phone:-(079) 27913200 / 3501E-Mail: [email protected]: www.gmdcltd.comCIN:L14100GJ1963SGC001206

CONTENTS

Particulars Page No.Notice.................................................................... 3Board's Report ..................................................... 10Corporate Governance Report ............................... 29Management Discussion & Analysis Report .......... 42Annual Report on CSR ......................................... 48Business Responsibility Report ............................ 52Independent Auditors’ Report of StandaloneFinancial Statements ........................................... 60Comments of the C & AG on StandaloneFinancial Statements of GMDC............................. 69Balance Sheet ..................................................... 70Statement of Profit and Loss ................................ 71Statement of Changes in Equity ........................... 72Cash Flow Statement ........................................... 73Significant Accounting Policies and Noteson Financial Statements ....................................... 74Independent Auditors’ Report of ConsolidatedFinancial Statements ......................................... 121Comments of the C & AG on ConsolidatedFinancial Statements of GMDC ......................... 131Consolidated Financial Statements ..................... 132

AGM DATE, DAY, TIME & VENUE

Date :- 31st December, 2020Day :- ThursdayTime :- 12.30 PMMode :- Through Video

Conferencing (“VC”) /Other Audio Visual Means (“OAVM”)

DIRECTORSShri Sanjeev Kumar, IAS , Director (Upto 01.10.2019)Smt. Sonal Mishra, IAS, DirectorSmt Gauri Kumar, IAS (Retd.),Independent Director (w.e.f. 7.6.2019)Shri Milind Torawane, IAS , Director (w.e.f. 01.10.2019)Shri S.B.Dangayach, Independent DirectorShri Nitin Shukla, Independent DirectorProf. Shailesh Gandhi, Independent Director

BANKERSBank of BarodaDena BankAxis Bank Ltd.HDFC Bank Ltd.State Bank of IndiaUnion Bank of IndiaICICI Bank Ltd.

PROJECTS:Lignite ProjectsPanandhro , (Dist. Kutch)Mata No Madh (Dist. Kutch)Umarsar (Dist. Kutch)Rajpardi (Dist. Bharuch)Tadkeshwar (Dist.Surat)Bhavnagar (Dist.Bhavnagar)

Fluorspar ProjectKadipani (Dist. Baroda)

Bauxite ProjectsGadhsisa (Dist. Kutch)Mevasa (Dist. Devbhoomi Dwarka)

Multi Matel ProjectAmbaji (Dist. Banaskantha)

Power ProjectNani Chher (Dist. Kutch)

Wind Farm ProjectsMaliya (Dist. Rajkot)Jodia (Dist. Jamnagar)Gorsar (Dist. Porbandar)Bada(Dist. Kutch)Varvala (Dist. Jamnagar)Bhanvad (Dist. Jamnagar)Rajmal (Dist. Bhavnagar, Amreli, Rajkot)

Solar ProjectPanandhro (Dist. Kutch)

Manganese ProjectShivrajpur, (Dist. Panchmahal)

REGISTRAR & SHARE TRANSFER AGENTFOR PHYSICAL & DEMAT SHARESM/s. MCS STA Limited 101, Shatdal Complex,1st Floor, Opp: Bata Show Room, Ashram Road,Ahmedabad – 380 009Tel: 079-26580461-63, Fax: 079-26581296

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2014

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1473

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NOTICENotice is hereby given that the 57th Annual GeneralMeeting of Gujarat Mineral Development CorporationLimited will be held on Thursday, the 31st December,2020 at 12.30 pm through Video Conferencing (“VC”) /Other Audio Visual Means (“OAVM”) to transact thefollowing businesses :

ORDINARY BUSINESSES :

1. To receive, consider and adopt the financial statements(standalone & consolidated) for the year ended onMarch 31, 2020, including the Balance Sheet,Statement of Profit and Loss, Statement of Changesin Equity and Cash Flow Statement as at that datetogether with the Report of the Board of Directors andAuditors thereon.

2. Declaration of Dividend on Equity Shares.

3. To fix up the remuneration of Statutory Auditors for theyear 2020-21.

SPECIAL BUSINESSES :

4. To consider and it thought fit to pass with or withoutmodification the following resolution as a SpecialResolution for re-appointment of Prof. ShaileshGandhi (DIN: 02685385) as an Independent Director:“RESOLVED THAT pursuant to the provisions ofSections 149 and 152 read with Schedule IV andother applicable provisions, if any, of the CompaniesAct, 2013 (“the Act”) and the Companies(Appointment and Qualification of Directors) Rules,2014 and the applicable provisions of the Securitiesand Exchange Board of India (Listing Obligationsand Disclosure Requirements) Regulations, 2015(including any statutory modification(s) or re-enactment(s) thereof, for the time being in force),Prof Shailesh Gandhi (DIN: 02685385), IndependentDirector of the company, who has submitted adeclaration that he meets the criteria ofindependence as provided in Section 149(6) of theAct, Regulation 16 of the SEBI (Listing Obligationsand Disclosure Requirements) Regulations, 2015,as amended from time to time and who is eligible forreappointment, be and is hereby re-appointed as anIndependent Non-Executive Director on the board ofthe Company to hold office for second term of fiveconsecutive years from the conclusion of 57thAnnual General Meeting till the conclusion of 62ndAnnual General Meeting and whose office shall notbe liable to retire by rotation”.

5. To consider and if thought fit, to pass with or withoutmodifications, if any, the following resolution as anOrdinary Resolution for seeking consent of theshareholders for the contribution under Section 181of the Companies Act, 2013 :

: ORDINARY RESOLUTION :

“RESOLVED THAT pursuant to the provisions of section181 and any other applicable prov isions of theCompanies Act, 2013, (including any statutorymodification or re-enactment thereof for the time beingin force), the consent of the members of the companybe and is hereby given to the Board of Directors formaking contributions or donations during the FinancialYear 2020-21 to any bona fide Charitable Funds orTrusts in India for an amount exceeding five percent ofaverage net profits of the company during the threeimmediately preceding financial years subject tomaximum amount of Rs. 25 crore during the FinancialYear 2020-21.

6. To consider and if thought fit, to pass with or withoutmodifications, if any, the following resolution as anOrdinary Resolution to ratify the remuneration of CostAuditors for the financial year ending March 31, 2021.

“RESOLVED THAT the pursuant to Section 148 andall other applicable provisions, if any, of theCompanies Act, 2013 and the Rules made thereunder, the remuneration of Rs. 1,73,250/-( Excludingapplicable taxes) plus reimbursement of expensesfor visiting Project Offices as per GMDC rules inconnection with the Cost Audit for financial year 2020-21 payable to M/s N D Birla & Co., Cost Auditors(Registration Number 000028), as approved by theBoard of Directors of the Company at its Meeting heldon 23.06.2020 be and is hereby ratified.”

By Order of the Board-of-Directors

Joel EvansCompany Secretary

Date : 23rd June 2020Place : Ahmedabad

Registered Office:Gujarat Mineral Development Corporation LimitedCIN NO:- L14100GJ1963SGC001206‘Khanij Bhavan’, 132 Ft. Ring Road,Near University Ground, Vastrapur,Ahmedabad-380 052.

ANNUAL REPORT 2019-2020

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should be a bona fide one. As per the said section, theaggregate amount of such contribution in any financial yearshall not exceed five percent of its average net profit for thethree immediately preceding financial years. The averagenet profits of the company for the three immediatelypreceding financial years is 29917.44 lakh. Hence thecompany can make contribution to any bona fide charitablefunds an amount not exceeding 1495.87 lakh. During theFinancial Year 2020-21, the Company proposes to expendon donation / financial assistance / financial contributionfor various CSR purposes to the bona fide charitable Fundsor Trusts. Hence the approval of the shareholders is beingsought.

None of the Directors, key managerial personnel of thecompany and their relatives are interested or concernedfinancially or otherwise in the proposed resolution.

The Board of Directors recommends passing of theresolution set out in Item No. 5 of the Notice, for approvalof by the shareholders.

Item No. 6The Board, on the recommendation of the AuditCommittee, has approved the appointment andremuneration of the Cost Auditors, M/s N D Birla & Co.,Ahmedabad to conduct the audit of the cost records ofthe Company for the financial year In accordance withthe provisions of Section 148 of the Act read with theCompanies (Audit and Auditors) Rules, 2014, theremuneration payable to the Cost Auditors has to beratified by the shareholders of the Company. Accordingly,consent of the members is sought for passing anOrdinary Resolution as set out at Item No. 6 of theNotice for ratification of the remuneration payable to theCost Auditors for the financial year ending March 31,2021.

None of the Directors / Key Managerial Personnel of theCompany / their relatives are, in any way, concerned orinterested, financially or otherwise, in the resolution setout at Item No. 6 of the Notice. The Board recommendsthe Ordinary Resolution set out at Item No. 6 of theNotice for approval by the shareholders.

Notes:-

1. In view of the continuing Covid-19 pandemic, theMinistry of Corporate Affairs (“MCA”) has vide its circulardated May 5, 2020 read with circulars dated April 8,2020 and April 13, 2020 (collectively referred to as “MCACirculars”) permitted the holding of the Annual GeneralMeeting (“AGM”) through VC / OAVM, without thephysical presence of the Members at a common venue.In compliance with the provisions of the Companies Act,2013 (“Act”), SEBI (Listing Obligations and DisclosureRequirements) Regulations, 2015 (“SEBI ListingRegulations”) and MCA Circulars, the AGM of theCompany is being held through VC / OAVM.

EXPLANATORY STATEMENT PURSUANT TOSECTION 102(1) OF THE COMPANIES ACT, 2013.

Item No. 4:Prof . Shailesh Gandhi (DIN: 02685385) is anIndependent Director of the Company. He joined theBoard of Directors of the Company on 03rd December,2015. Prof. Shailesh Gandhi is a member of the AuditCommittee w.e.f 03rd December, 2015, of the Board ofDirectors of the Company.

Prof. Shailesh Gandhi (DIN: 02685385) is the Professorand Dean (Programmes) at Indian Insti tute ofManagement, Ahmedabad. He is also Director inPaschim Gujarat Vij Company Limited. In the opinion ofthe Board, Prof. Shailesh Gandhi fulfils the conditionsspecified in the Companies Act, 2013 and rules madethereunder for his appointment as an IndependentDirector of the Company and is independent of themanagement and has given a declaration to the Boardthat he meets the criteria of independence as providedunder section 149(6) of the Act. Copy of the draft letterfor appointment of Prof . Shailesh Gandhi as anIndependent Director setting out the terms andconditions would be available for inspection without anyfee by the members at the Registered Office of theCompany during normal business hours on any workingday, excluding Saturday.

The Board considers that his continued associationwould be of immense benefit to the Company and it isdesirable to continue to avail services of Prof. ShaileshGandhi as an Independent Director. Accordingly, theBoard recommends the resolution in relation to re-appointment of Prof. Shailesh Gandhi as an IndependentDirector, for the approval by the shareholders of theCompany for further period of 5 years f rom theconclusion of 57th AGM till the conclusion of 62nd AGM.

Except Prof. Shailesh Gandhi, being an appointee, noneof the Directors and Key Managerial Personnel of thecompany and their relative is concerned or interested,financially or otherwise, in the resolution set out at itemno. 4 of the notice. The Board recommends passing ofthe resolution set out in Item 4 of the notice for approvaleof the shareholders.

This Explanatory statement may also be regarded as adisclosure under Regulation 26(4) and 36(3) ofSEBI(Listing Obligations and Disclosure Requirements)Regulations,2015 and applicable secretarial standards.

The terms and conditions of his appointment areavailable at www.gmdcltd.com

Item No. 5

In accordance with the section 181 of the Companies Act,2013, the Company is required to obtain approval of themembers before making any contribution to any charitablefunds. The section also required that the charitable fund

GUJARAT MINERAL DEVELOPMENT CORPORATION LTD.

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April 1, 2019, except in case of request received fortransmission or transposition of securities. In view ofthis and to eliminate all risks associated with physicalshares and for ease of portfolio management, membersholding shares in physical form are requested toconsider converting their holdings to dematerializedform. Members can contact the Company or Company’sRegistrars and Transfer Agent, M/s. MCS ShareTransfer Agent Limited for assistance in this regard.

8. To support the ‘Green Initiative’, Members who havenot yet registered their email addresses are requestedto register the same with their DPs in case the sharesare held by them in electronic form and with M/s. MCSShare Transfer Agent Limited in case the shares areheld by them in physical form.

9. Members are requested to intimate changes, if any,pertaining to their name, postal address, email address,telephone/ mobile numbers, Permanent AccountNumber (PAN), mandates, nominations, power ofattorney, bank details such as, name of the bank andbranch details, bank account number, MICR code, IFSCcode, etc., to their DPs in case the shares are held bythem in electronic form and to M/s. MCS Share TransferAgent Limited in case the shares are held by them inphysical form.

10. As per the provisions of Section 72 of the Act, thefacility for making nomination is available for theMembers in respect of the shares held by them.Members who have not yet registered their nominationare requested to register the same by submitting FormNo. SH-13. The said form can be downloaded from theCompany’s website. Members are requested to submitthe said details to their DP in case the shares are heldby them in electronic form and to M/s. MCS ShareTransfer Agent Limited in case the shares are held inphysical form.

11. Members holding shares in physical form, inidentical order of names, in more than one folio arerequested to send to the Company or M/s. MCS ShareTransfer Agent Limited, the details of such foliostogether with the share certificates for consolidatingtheir holdings in one fol io. A consolidated sharecertificate will be issued to such Members after makingrequisite changes.

12. In case of joint holders, the Member whose nameappears as the first holder in the order of names as perthe Register of Members of the Company will be entitledto vote at the AGM.

13. Members seeking any information with regard to theaccounts or any matter to be placed at the AGM, arerequested to write to the Company on or before 24thDecember, 2020 through email on [email protected] same will be replied by the Company suitably.

2. The relevant details, pursuant to Regulations 26(4)and 36(3) of the SEBI Listing Regulations andSecretarial Standard on General Meetings issued by theInstitute of Company Secretaries of India, in respect ofDirector seeking re-appointment at this AGM is annexed.

3. Pursuant to the provisions of the Act, a Memberentitled to attend and vote at the AGM is entitled toappoint a proxy to attend and vote on his/her behalf andthe proxy need not be a Member of the Company. Sincethis AGM is being held pursuant to the MCA Circularsthrough VC / OAVM, physical attendance of Membershas been dispensed with. Accordingly, the facility forappointment of proxies by the Members will not beavailable for the AGM and hence the Proxy Form andAttendance Slip are not annexed to this Notice.

4. Institutional / Corporate Shareholders (i.e. other thanindividuals / HUF, NRI, etc.) are required to send ascanned copy (PDF/JPG Format) of its Board orgoverning body Resolution/Authorization etc., authorizingits representative to attend the AGM through VC / OAVMon its behalf and to vote through remote e-voting. Thesaid Resolution/Authorization shall be sent to theScrutinizer by email through its registered email addressto [email protected] with a copy marked [email protected] (email id of CDSLprovided for the purpose).

5. The Register of Menmber will remain closed (bookclosure) from Thursday, 24th December, 2020 toThursday, 31st December, 2020 (both days inclusive) forthe purpose of determining entitlement of members tothe final dividend for the financial year ended March 31,2020, if approved at the AGM.

6. If the final dividend, as recommended by the Board ofDirectors, is approved at the AGM, payment of suchdividend subject to deduction of tax at source will bemade on or after Wednesday, 13th January, 2021 asunder:

i. To all Beneficial Owners in respect of shares held indematerialized form as per the data as may be madeavailable by the National Securities Depository Limited(“NSDL”) and the Central Depository Services (India)Limited (“CDSL”), collectively “Depositories”, as of theclose of business hours on Wednesday, 23rd December,2020.

ii. To all Members in respect of shares held in physicalform after giving effect to valid transfer, transmission ortransposition requests lodged with the Company as ofthe close of business hours on Wednesday, 23rdDecember, 2020.

7. As per Regulation 40 of SEBI Listing Regulations, asamended, securities of l isted companies can betransferred only in dematerialized form with effect from,


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14. Members are requested to note that, dividends if notencashed for a consecutive period of 7 years from thedate of transfer to Unpaid Dividend Account of theCompany, are liable to be transferred to the InvestorEducation and Protection Fund (“IEPF”). The shares inrespect of such unclaimed dividends are also liable tobe transferred to the demat account of the IEPFAuthority. In view of this, Members are requested toclaim their dividends from the Company, within thestipulated timeline. The Members, whose unclaimeddividends/shares have been transferred to IEPF, mayclaim the same by making an online application to theIEPF Authority in web Form No. IEPF-5 available onwww.iepf.gov.in.

15. In compliance with the aforesaid MCA Circulars andSEBI Circular dated May 12, 2020, Notice of the AGMalong with the Annual Report 2019-20 is being sent onlythrough electronic mode to those Members whoseemail addresses are registered with the Company/Depositories. Members may note that the Notice andAnnual Report 2019-20 will also be available on theCompany’s website www.gmdcltd.com, websites of theStock Exchanges i.e. BSE Limited and National StockExchange of India Limited at www.bseindia.com andwww.nseindia.com respectively.

16. Members attending the AGM through VC / OAVMshall be counted for the purpose of reckoning thequorum under Section 103 of the Act.

17. Pursuant to Finance Act 2020, dividend income willbe taxable in the hands of shareholders w.e.f. April 1,2020 and the Company is required to deduct tax atsource from dividend paid to shareholders at theprescribed rates. For the prescribed rates for variouscategories, the shareholders are requested to refer tothe Finance Act, 2020 and amendments thereof. Theshareholders are requested to update their PAN with theCompany / M/s. MCS Share Transfer Agent Limited (incase of shares held in physical mode) and depositories(in case of shares held in demat mode).

A Resident individual shareholder with PAN and who isnot liable to pay income tax can submit a yearlydeclaration in Form No. 15G/15H, to avail the benefit ofnon-deduction of tax at source by email [email protected] by 31.12.2020. Shareholdersare requested to note that in case their PAN is notregistered, the tax will be deducted at a higher rate of20%.

Non-resident shareholders can avail beneficial ratesunder tax treaty between India and their country ofresidence, subject to providing necessary documentsi.e. No Permanent Establishment and BeneficialOwnership Declaration, Tax Residency Certificate, Form10F, any other document which may be required to avail

the tax treaty benef its by sending an email [email protected]. The aforesaid declarationsand documents need to be submitted by theshareholders by 31.12.2020.

18. Since the AGM will be held through VC / OAVM, theRoute Map is not annexed in this Notice.

19. Instructions for e-voting and joining the AGM are asfollows:

A. VOTING THROUGH ELECTRONIC MEANS

The instructions for members for votingelectronically are as under:-

As per Sections 107 and 108 of the Companies Act,2013, read with Companies (Management andAdministration) Rules, 2014, facility is provided to theShareholders for e-Voting through CDSL to enable themto cast their votes electronically on the resolutionsmentioned in the Notice of the 57th AGM dated 23rdJune 2020. The detailed process, instructions andmanner for availing e-Voting facility is shown hereunder:

The Company has fixed Thursday, 24th December, 2020as a cut-off date to record the entitlement of theShareholders to cast their votes electronically at the57th AGM.

SECTION A : E-VOTING PROCESS –SHAREHOLDERS HOLDING SHARES IN DEMATFORM

(i) Log on to the e-voting website www.evotingindia.com

(ii) Click on “Shareholders” tab.

(iii) Now, select the “GUJARAT MINERALDEVELOPMENT CORPORATION LIMITED” fromthe drop down menu and click on “SUBMIT”

(iv) Now Enter your User ID

a. For CDSL: 16 digits beneficiary ID,

b. For NSDL: 8 Character DP ID followed by 8 DigitsClient ID,

c. Members holding shares in Physical Form shouldenter Folio Number registered with the Company.

(v) Next enter the Image Verification as displayed andClick on Login.

(vi) If you are holding shares in demat form and hadlogged on to www.evotingindia.com and voted onan earlier voting of any company, then your existingpassword is to be used.

(vii) If you are a first time user follow the steps givenbelow:


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For Members holding shares in DematForm and Physical Form

PAN Enter your 10 digit alpha-numeric *PANissued by Income Tax Department(Applicable for both demat shareholders aswell as physical shareholders).

• Members who have not updated theirPAN with the Company / DepositoryParticipant are requested to use the firsttwo letters of their name and the 8 digitsof the sequence number wil l becommunicated through email.

• In case the Sequence Number is lessthan 8 digits enter the applicablenumber f 0’s before the number afterthe first two characters of the name inCAPITAL letters. Eg. If your name isRamesh Kumar with sequence number1 then enter RA00000001 in the PANfield.

DOB/ Enter the Date of Birth as recorded in your Dividend demat account or in the company records Bank for the said demat account or folio in dd Details# mm/yyyy format. Enter the Dividend Bank

Details as recorded in your demataccount or in the company records forthe said demat account or folio. Pleaseenter the DOB or Dividend Bank Detailsin order to login. If the details are notrecorded with the depository orcompany please enter the number ofshares held by you as on the cut offdate 24th December, 2020 in theDividend Bank details field.

(viii) After entering these details appropriately, click on“SUBMIT” tab.

(ix) Members holding shares in physical form will thenreach directly the Company selection screen. However,members holding shares in demat form will now reach‘Password Creation’ menu wherein they are required tomandatorily enter their login password in the newpassword field. Kindly note that this password is to bealso used by the demat holders for voting for resolutionsof any other company on which they are eligible to vote,provided that company opts for e-voting through CDSLplatform. It is strongly recommended not to share yourpassword with any other person and take utmost care tokeep your password confidential.

(x) For Members holding shares in physical form, thedetails can be used only for e-voting on theresolutions contained in this Notice.

(xi) Click on the 201202016 (EVSN) for the relevant

GUJARAT MINERAL DEVELOPMENT CORPORATIONLIMITED on which you choose to vote.

(xii) On the voting page, you will see “RESOLUTIONDESCRIPTION” and against the same the option“YES/ NO” for voting. Select the option YES or NOas desired. The option YES implies that you assentto the Resolution and option NO implies that youdissent to the Resolution.

(xiii) Click on the “RESOLUTIONS FILE LINK” if youwish to view the entire Resolution details.

(xiv)After selecting the resolution you have decided tovote on, click on “SUBMIT”. A confirmation box willbe displayed. If you wish to confirm your vote, clickon “OK”, else to change your vote, cl ick on“CANCEL” and accordingly modify your vote.

(xv) Once you “CONFIRM” your vote on the resolution,you will not be allowed to modify your vote.

(xvi)You can also take out print of the voting done byyou by clicking on “Click here to print” option on theVoting page.

(xvii) If Demat account holder has forgotten the changedpassword then Enter the User ID and the imageverification code and click on Forgot Password &enter the details as prompted by the system.

(xviii)For Institutional shareholders :

• Insti tutional shareholders (i .e. other thanIndividuals, HUF, NRI etc.) are required to log on tohttps:// www.evotingindia.co.in and registerthemselves as Corporate.

• They should submit a scanned copy of theRegistration Form bearing the stamp and sign ofthe entity to [email protected].

• After receiving the login details they have to createa user who would be able to link the account(s)which they wish to vote on.

The list of accounts should be mailed to [email protected] and on approval of theaccounts they would be able to cast their vote.

• They should upload a scanned copy of the BoardResolution and Power of Attorney (POA) which theyhave issued in favour of the Custodian, if any, inPDF format in the system for the scrutinizer toverify the same.

SECTION-B: E-VOTING PROCESS -SHAREHOLDERS HOLDING SHARES IN PHYSICALFORM

Please follow all steps from sl. no. (i) to sl. no. (xvi)above to cast vote.


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SECTION C: PROCESS FOR THOSESHAREHOLDERS WHOSE EMAIL ADDRESSES ARENOT REGISTERED WITH THE DEPOSITORIES FOROBTAINING LOGIN CREDENTIALS FOR E-VOTINGFOR THE RESOLUTIONS PROPOSED IN THISNOTICE:

1. For Physical shareholders- please prov idenecessary detai ls l ike Folio No., Name ofshareholder, scanned copy of the share certificate(front and back), PAN (self attested scanned copy ofPAN card), AADHAR (self attested scanned copy ofAadhar Card) by email to [email protected].

2. For Demat shareholders -, please provide Demataccount detials (CDSL-16 digit beneficiary ID orNSDL-16 digit DPID + CLID), Name, client master orcopy of Consolidated Account statement, PAN (selfattested scanned copy of PAN card), AADHAR (selfattested scanned copy of Aadhar Card) [email protected]

3. The company/RTA shall co-ordinate with CDSL andprovide the login credentials to the above mentionedshareholders.

SECTION D: COMMENCEMENT OF E-VOTINGPERIOD AND OTHER E-VOTING INSTRUCTIONS

1. The voting period begins on Monday, 28thDecember, 2020 at 09:00 AM and ends onWednesday, 30th December, 2020 at 05:00 PM.During this period shareholders’ of the Company,holding shares either in physical form or indematerialized form, as on the cut-off date 24thDecember, 2020, may cast their vote electronically.The e-voting module shall be disabled by CDSL forvoting thereafter.

2. The voting rights of Members shall be in proportionto their shares of the paid up equity share capital ofthe Company as on 24th December, 2020. (Cut offdate)

3. Shri Arvind Gaudana, Practicing Company Secretary(Membership No. FCS 2838, COP No. 2183) orfail ing him Shri Bhavya Gaudana, PracticingCompany Secretary (Membership No. ACS 44965,COP No. 16485), to act as the Scrutinizer toscrutinize the e-voting process (including the BallotForm received from the Members who do not haveaccess to the e-voting process) in a fair andtransparent manner.

4. The facility for e-voting will also be made availableduring the AGM, and members attending the AGMwho have not already cast their vote by remote-e-voting will be able to exercise their right at the AGM.

Shareholders who have not cast their voteelectronically, by remote-e-voting may only casttheir vote at the AGM through e-voting.

5. The result of voting will be announced by theChairman of the Meeting on or after the 57th AnnualGeneral Meeting to be held on 31st December,2020, the Thursday. The result of the voting will becommunicated to the Stock Exchanges and will beplaced on the website of the Companywww.gmdcltd.com.

6. In case you have any queries or issues regarding e-voting, you may refer the Frequently AskedQuestions (“FAQs”) and e-voting manual available atwww.evotingindia.co.in under help section or writean email to helpdesk.evoting@ cdslindia.com.

7. Institutional shareholders (i.e. members other thanindividuals, HUF, NRIs, etc.) are required to sendscanned copy (PDF / JPG format) of the relevantBoard Resolution Authority letter, etc., together withthe attested specimen signature(s) of the dulyauthorized signatory(ies) who is / are authorized tovote, to the scrutinizer v ia email at:[email protected] with a copy marked [email protected]

B. INSTRUCTIONS FOR MEMBERS FORATTENDING THE AGM THROUGH VC / OAVMARE AS UNDER:

1. Members will be able to attend the AGM through VC/ OAVM or view the live webcast of AGM provided byCDSL at https://www.evotingindia.com by using theirremote e-voting login credentials and selecting theEVEN for Company’s AGM.

2. Facility of joining the AGM through VC / OAVM shallopen 15 minutes before the time scheduled for theAGM and will be available for 1000 Members on firstcome first served basis. This will not include largeShareholders (Shareholders holding 2% or moreshareholding), Promoters, Institutional Investors,Directors, Key Managerial Personnel, theChairpersons of the Audit Committee, Nominationand Remuneration Committee and StakeholdersRelationship Committee, Auditors etc. who areallowed to attend the EGM/AGM without restrictionon account of first come first served basis.

3. Members who need assistance before or during theAGM, can contact CDSL [email protected] or phone number1800225533.

4. Members who would like to express their views orask questions during the AGM may registerthemselves as a speaker by sending their request


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from their registered email address mentioning theirname, DP ID and Client ID/folio number, PAN,mobile number at [email protected] on or before24th December, 2020. Those Members who haveregistered themselves as a speaker will only beallowed to express their views/ask questions duringthe AGM. The Company reserves the right to restrictthe number of speakers depending on the availabilityof time for the AGM.

5. Members are encouraged to join the meetingthrough Laptops for better experience.

6. Further, Members will be required to allow Cameraand use Internet with a good speed to avoid anydisturbance during the meeting.

7. Please note that participants connecting frommobile dev ices or tablets or through laptopconnecting via mobile hotspot may experience audio/ video loss due to fluctuation in their respectivenetwork. It is therefore recommended to use stableWi-Fi or LAN connection to mitigate any kind ofaforesaid glitches.

Other Instructions

1. The Scrutinizer shall , immediately af ter theconclusion of voting at the AGM, first count thevotes cast during the AGM, thereafter unblock thevotes cast through remote e-voting and make, notlater than 48 hours of conclusion of the AGM, aconsolidated Scrutinizer’s Report of the total votescast in favour or against, if any, to the Chairman or aperson authorised by him in writing, who shallcountersign the same.

2. The result declared along with the Scrutinizer’sReport shall be placed on the Company’s websitewww.gmdcltd.com and on the website of CDSLhttps://www.cdslindia.com immediately. TheCompany shall simultaneously forward the results toNational Stock Exchange of India Limited and BSELimited, where the shares of the Company are listed.

Contact DetailsCompany Gujarat Mineral Development

Corporation Limited(A Government of Gujarat Enterprise)CIN: L14100GJ1963SGC001206“Khanij Bhavan”, 132 Ft. Ring Road,Near University Ground, Vastrapur,Ahmedabad-52Phone : 2791 3501 2791 3200e-mail : [email protected],website : www.gmdcltd.com

Registrar & ShareTransfer AgentM/s MCS Share Transfer Agent Limited101, Shatdal Complex, 1st Floor,Opp. Bata Show Room, Ashram Road,Navrangpura Ahmedabad-380 009.E-mail : [email protected]

e-Voting Central Depository ServicesAgency (India) Limited

E-mail : [email protected]

Scrutinizer M/s Gaudana & GaudanaPracticing Company SecretariesE-mail : [email protected]


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BOARD’S REPORT 2019-20ToThe Shareholders,Gujarat Mineral Development Corporation Limited

Your Directors have pleasure in presenting 57th Board’sReport along with the audited accounts of your companyfor the financial year 2019-20.

1. FINANCIAL RESULTS

Our profit after tax for the year is 202.68 crore asagainst 138.69 crore last year.

Particulars 2019-20 2018-19( in Lakh) ( in Lakh)

Total Income fromOperations 1,52,094.85 1,87,967.82

Profit/(Loss) for theperiod (before Tax andExceptional items) 26,099.80 60,485.38

Profit/(Loss) after tax(after Exceptional items) 20,267.74 13,868.98

Total ComprehensiveIncome for the period[Comprising Profit/(Loss)after tax and OtherComprehensive Income(net of tax)] 3,795.48 1,888.41

2. REVIEW OF THE BUSINESS OPERATIONS

2.1 LIGNITE PROJECTS:During the year, the Company operated five lignitemines, namely, Mata-No-Madh, Rajpardi,Tadkeshwar, Bhavnagar and Umarsar. During theyear under review, 69.56 MT of lignite was producedfrom these mines. The mine-wise production figuresare as follows:

Sr. Name of mine Lignite productionNo. (in lakh MT)1 Mata-No-Madh 28.392 Rajpardi 9.243 Tadkeshwar 12.744 Bhavnagar 5.515 Umarsar 13.68

Total 69.56

2.2 POWER PROJECT – NANI CHHERDuring the year under review, 2 x 125 MWAkrimota Thermal Power Station is runningsuccessful ly. This year the Power Plantgenerated 708.80 MUs having 33.79% PLF.

2.3 WIND AND SOLAR POWERWind Farm Projects of 200.9 MW are situated atdifferent locations in Gujarat and 5 MW SolarPower Project is situated at Panandhro LigniteProject, which are running satisfactorily. The200.9 MW Wind Projects have achieved 23.81%PLF (Plant Load Factor), whereas Solar Projectis running at 12.95 % CUF (Capacity UtilizationFactor).

2.4 BAUXITE AND MANGANESE2.4.1 Gadhsisa Group of Bauxite Mines – Kutch

In the Financial year 2019-20, Company has sold866 MT (> 52% Al2O3) Plant Grade bauxite and4,57,474 MT of (< 52% Al2O3) Non Plant GradeBauxite from Gadhsisa Group of Mines, DistrictKutch.

2.4.2 Mevasa Bauxite Mines – Devbhoomi DwarkaIn the Financial year 2019-20, Company has sold10,459 MT (> 52% Al2O3) Plant Grade bauxitefrom Mevasa Mines, District Devbhoomi Dwarka.

2.4.3 Manganese – ShivrajpurIn the Financial year 2019-20, Company has sold68,735 MT of Sub grade Manganese Ore fromWaste dump of Shivrajpur Project, DistrictPanchmahal.

2.5 COVID-19 AND ITS IMPACT ON GMDCDue to outbreak of COVID-19 globally and inIndia, GMDC has made initial assessment of itslikely adverse impact on its business and finance.GMDC expects that considering the steps takenby the Central and the State Governments for therevival of economy, the impact on the demand oflignite due to lock-down may be for short durationonly. The management does not expect anymedium to long term risks at this stage inGMDC's ability to continue as a going concernand meeting its liabilities as and when they falldue. Further details are available in Note No.2.50to the financial statements.

3. DIVIDENDYour Directors have pleasure to recommend adividend of 100% i.e. 2 per share on equityshares. An amount of 6,360 lakh on paid upequity share capital of 6,360 lakh shall be paidas dividend.

4. TRANSFER OF UNCLAIMED DIVIDEND TOINVESTOR EDUCATION AND PROTECTIONFUND (IEPF)In terms of Section 124 and 125 of theCompanies Act, 2013 read with relevant rules,


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unclaimed dividend or unpaid dividend relating tothe financial year 2012-13 will be transferred to theInvestor Education and Protection Fundestablished by the Central Government on duedate. Further, as per the provisions of IEPFAuthority (Accounting, Audit, Transfer and Refund)Rules, 2016, the company will also transfer theshares of the shareholders who have not claimedtheir dividend for seven consecutive years. Thenecessary approval and the authorization for thispurpose have already been completed. In line withthe instructions to be received from the Ministry ofCorporate Affairs, the company will transfer suchshares to IEPF authority.

5. CONTRIBUTION TO CENTRAL EXCHEQUER:The company has contributed 159.06 croretowards income tax for the year underconsideration.

6. SHARE CAPITALDuring the year under rev iew, the issued,subscribed and paid-up share capital remainedconstant at 63.60 Crore divided into 31.80crore equity shares of 2 each.

7. TAXATIONIncome Tax assessment of the Company has beencompleted up to the Financial Year 2015-16.

8. INTERNAL AUDITM/s R S Patel & Co., Chartered Accountantswere the internal auditors of the company for theFinancial Year 2019-20.

9. STATUTORY AUDITM/s. Soni Jhawar & Co., Chartered Accountantswere appointed as Statutory Auditors of theCompany by the Comptroller & Auditor General ofIndia for the Financial Year 2019-20.

10. AUDIT BY COMPTROLLER AND AUDITGENERAL OF INDIA (C & AG)Being a Government Company, the C & AG hascarried out supplementary audit of the financialstatements of your Company for the year ended31st March,2020 pursuant to Provisions of Section143 (6)(a) of the Companies Act, 2013.The C & AGhas not offered any adverse comment upon orsupplement to Statutory Auditors’ Report.

11. COST AUDITM/s Dinesh Birla & Co. were appointed as CostAuditors of the company for the year 2019-20.The Cost Audit Report has been filed on 26thAugust,2019 for the Financial Year 2018-19.

12. SECRETARIAL AUDITPursuant to the provisions of Section 204 of theCompanies Act, 2013, the Company hasappointed M/s. Pinakin Shah & Co., Company

Secretary in Practice to undertake the SecretarialAudit of the Company for the year 2019-20. TheirSecretarial Audit Report is given in Annexure Iforms part of this report. As observed by theAuditor, the appointment of woman independentdirector was made w.e.f. 7/6/2019 because, thecompany being a Goverment company, theappointment is carried out in consultation with theGovernment.

13. STATUS OF VARIOUS JOINT VENTURES13.1 Naini Coal Company Limited

Naini Coal Block was allocated jointly to theCompany and Pondicherry Industrial PromotionDevelopment & Investment Corporation Limited(PIPDICL) and to develop the Coal Block, NainiCoal Company Limited was incorporated as thejoint venture company. Due to slow progress onthe project because of non-receipt of PL approvalfrom Govt. of Odisha, Ministry of Coal, Govt. ofIndia, de-allocated the block, invoking 50% of theBank Guarantee. The Hon’ble Supreme Court ofIndia has cancelled all the allocated coal blockswhich include Naini Coal Block also.

Meanwhile, approval of the State Government hasbeen received for closing the company andcompany has initiated actions for closing thiscompany.

13.2 Gujarat Credo Mineral Industries LimitedDry beneficiation of low grade bauxite and Zeolitemanufacturing plant has been commissioned.

13.3 Fluorspar Beneficiation PlantGMDC along with M/s Gujarat FluorochemicalsLimited and M/s Navin Fluorine International Limitedis setting up the fluorspar beneficiation plant, asingle largest project of 40,000 MTPA capacity atKadipani. Based on pilot test report, Global tenderwill be floated for selection of EPC contract.Valuation report for Kadipani assets has beenreceived. Based on report, land will be leased onhire basis to JV Company and asset transfer willbe carried out in favour of JV Company.

13.4 Aikya Chemicals Private LimitedManganese Oxide, Manganese dioxide andManganese Sulphate plant set by JVC has beencommissioned.

14. MATERIAL CHANGES AND COMMITMENTS, IFANY, AFFECTING THE FINANCIAL POSITIONOF THE COMPANY OCCURRED BETWEEN THEEND OF THE FINANCIAL YEAR TO WHICH THISFINANCIAL STATEMENTS RELATE AND THEDATE OF THE REPORTNo material changes and commitments affectingthe financial position of the Company occurred


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between the end of the financial year to whichthese financial statements relate and the date ofthis report.

15. ENVIRONMENT PROGRAMMEEnv ironmental Programme refers to theManagement of an Organization’s EnvironmentalProgrammes in a Systematic, sustainable andPlanned Manner along with its documentation,implementation, review and actions for furtherimprovements.

During the year 2019-20, GMDC has planted total1,51,830 plants saplings covering 58.82 hectaresof mine lease and residential colony areasinvolving State Forest Department, local villagers,societies etc., developed gaucher/grasslandcovering 5 ha. area and installation of dripirrigation system covering 10 ha. area for efficientuse of water for plantation.

Under statutory compliance, as a part of Monthlyenvironmental monitoring for air, water and noisepollution is being done through the laboratoryapproved by Ministry of Environment and Forests/Gujarat Pollution Control Board as well as throughin house facility. Annual Environment Audit isbeing done by GPCB approved Schedule I / IIAuditors, as applicable at GMDC Projects.

Primary Effluent Treatment Plants (PETP’s) wereoperated successful ly achiev ing desiredperformance at major lignite mines of GMDC forthe treatment of acid mine drainage water. TheseETP’s are prefabricated movable structure so canbe easily shifted to another location aftercompletion of project. We are using Caustic Lyeas neutralizing agent to neutralize mine drainagewater which produces less amount of sludge aswell also work as alkali coagulant in precipitationof Metals present in effluent. It is automatic plantwhich automatically adjust its process based oninput characteristics of water and all parametersare connected to Cloud Based Technology so thatits performance can be monitored from anywhere.Online calibration facility is provided for onlinestack monitoring systems. Israel based vehicleRO plant was modified for dual mode operation forhuge saving in treatment cost.

In our seven mines Environment Clearanceconditions compliance was verified by MOEF,Bhopal successful ly & verif ication reportsreceived.

To create environmental awareness among allemployees and surrounding communitiesincluding schools, various env ironmental

awareness programmes have been conductedthrough celebration of World Environment Day andVan Mahotsav in various GMDC projects.

16. INDUSTRIAL RELATIONS, HEALTH ANDSAFETYThe relations between the company and itsemployees continued to be cordial throughout theyear. The company is also committed to thehealth and safety of not only its staff but also ofthe people engaged through its contractors andcommunity living in and around its project areas.Dispensaries with qualified doctors and para-medical staff are in operation at Panandhro,Akrimota Thermal Power Plant, Rajpardi andKadipani Projects. Mobile medical vans facilitiesare also operational at various projects. At everyproject, GMDC provides ISI & DGMS safety shoesand other safety devices and adopts best safetypractices.

The Company is an OHSAS 18001 certif iedcompany. Regular health checkup of employeesengaged in Mining and Power segment includingemployees engaged through contractors,transporters etc. are conducted.

17. PARTICULARS OF EMPLOYEESGMDC did not have any employee who wasemployed throughout the financial year and inreceipt of remuneration of ? 1.02 crore or more, oremployed for a part of the year and in receipt of ?8.5 lakh or more a month, under Rule 5 (2) of theCompanies (Appointment and Remuneration ofManagerial Personnel) Rules, 2014 as amended.

The table containing other particulars ofemployees in accordance with the provisions ofSection 197 (1) of the Companies Act, 2013, readwith Rule 5 (1) of the Companies (Appointmentand Remuneration of Managerial Personnel)Rules, 2014, is appended at Annexure II to theBoard’s Report.

18. CONSERVATION OF ENERGY, TECHNOLOGYABSORPTION, FOREIGN EXCHANGEEARNINGS AND OUTGOAdditional information on conservation of energy,technology absorption, foreign exchange earningsand outgo as required by the Section 134 (3) (m)of the Companies Act, 2013 read with Rule, 8 (3)of the Companies (Accounts) Rules, 2014 isannexed as Annexure III and forms part of thisreport.

19. STATEMENT CONCERNING DEVELOPMENTAND IMPLEMENTATION OF RISKMANAGEMENT POLICY OF THE COMPANY


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Looking to the profile of GMDC, i.e., Mining andPower Operations, GMDC has inbuil t riskmanagement practices to address variousoperational risks. GMDC has standard operatingprocesses for various mining operations in orderto mitigate procedures and prevent risk arisingout of various operations. GMDC has no externalborrowings. Hence, there is no financial risk thatcan impact GMDC’s Financial Position. GMDCprimarily deals with natural resources. Hence,policy of Government may impact GMDC’soperational strategy.

GMDC’s risk management process revolvesaround following parameters:

1. Risk Identification and Impact Assessment2. Risk Evaluation3. Risk Reporting and Disclosure4. Risk Mitigation

GMDC has also set up a Risk ManagementCommittee.

20. PARTICULARS OF LOANS, GUARANTEES ORINVESTMENTS MADE UNDER SECTION 186OF THE COMPANIES ACT, 2013There were no loans and guarantees given by thecompany under Section 186 of the CompaniesAct, 2013.

21. PARTICULARS OF CONTRACTS ORARRANGEMENTS MADE WITH RELATEDPARTIESDuring the Financial Year, the transactionsentered into by the company with the relatedparties were in the ordinary course of business atarm’s length. The company has not entered intocontracts / arrangements / transactions withRelated Parties which could be consideredmaterial in accordance with Section 188 of theAct and the Policy of the company for RelatedParty Transactions. Hence, the disclosure inForm AOC – 2 under Section 134 (3) ofCompanies Act, 2013 is not required. The Policyon Related Party Transactions may be accessedon the website of the company at https://www.gmdcltd.com/en/corporate-policies-gmdc.

22. EXPLANATION OR COMMENTS ONQUALIFICATIONS, RESERVATIONS ORADVERSE REMARKS OR DISCLAIMERSMADE BY THE AUDITORS AND THEPRACTICING COMPANY SECRETARY INTHEIR REPORTSThere are no such comments.

23. GMDC’S POLICY RELATING TO DIRECTORS’APPOINTMENT, PAYMENT OF

REMUNERATION AND DISCHARGE OF THEIRDUTIESGMDC being a Government Company, theGovernment of Gujarat appoints its Directors,except the Independent Directors. GMDC doesnot pay any remuneration to its Directors except,the sitting fees and out of pocket expenses forattending Board’s and its committees’ meetings.The Independent Directors are appointed by theShareholders in their General Meeting. Exceptthe Managing Director, all the Directors of GMDCare non-executive directors.

24. EXTRACTS OF ANNUAL RETURNThe extracts of Annual Return pursuant to theprovisions of Section 92 of the Companies Act,2013 read with Rule 12 of the Companies(Management and Administration) Rules, 2014 isappended in Annexure IV to this report. Thedetails of Annual Return can also be accessedon the website of the company atwww.gmdcltd.com.

25. NUMBER OF BOARD MEETINGSCONDUCTED DURING THE YEAR UNDERREVIEWGMDC had conducted 4 Board Meetings underthe financial year under review.

26. DIRECTORS’ RESPONSIBILIY STATEMENTIn accordance with the provisions of Section134(5) of the Companies Act, 2013, the Boardhereby submits its Responsibility Statement:-

a. In the preparation of the annual accounts forthe financial year ended 31st March,2020, theapplicable accounting standards had beenfollowed along with proper explanation relatingto material departures;

b. The Directors had selected such accountingpolicies and applied them consistently andmade judgments and estimates that arereasonable and prudent so as to give atrue and fair view of the state of affairs ofthe company at the end of financial yearand of the profit of the company for thatperiod;

c. The Directors had taken proper and sufficientcare for the maintenance of adequateaccounting records in accordance with theprovisions of the Companies Act,2013 forsafeguarding the assets of the company andfor preventing and detecting fraud and otherirregularities;

d. The Directors had prepared the annualaccounts on a going concern basis;


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e. The Directors had laid down internal financialcontrols to be followed by the company andsuch internal financial controls were adequateand were operating effectively; and

f. The Directors had devised proper systems toensure compliance with the provisions of allapplicable laws and that such systems wereadequate and operating effectively.

27. DEPOSITSGMDC has neither accepted nor renewed anydeposits from the public during the year underreview.

28. DECLARATION OF INDEPENDENT DIRECTORSThe Independent Directors have submitted theirdisclosures that they fulfill all the requirements asstipulated in Section 149(6) of the CompaniesAct, 2013 so as to qualify themselves to beappointed as Independent Directors under theprovisions of the Companies Act, 2013 and therelevant rules.

29. DISCLOSURE OF COMPOSITION OF AUDITCOMMITTEE AND PROVIDING VIGILMECHANISMDuring the year under rev iew, the AuditCommittee consisted of the following members:(i) Shri S B Dangayach(ii) Shri Milind Torawane, IAS(iii) Shri Nitin Shukla(iv) Prof Shailesh Gandhi

GMDC has established a Whistle Blower / VigilMechanism Policy. GMDC has also providedadequate safeguards against victimization ofemployees and Directors who express theirconcerns. GMDC has also provided direct accessto the chairman of the Audit Committee onreporting issues concerning the interests ofemployees and the Company.

30. SHARES30.1 BUY BACK OF SECURITIES

GMDC has not bought back any of its securitiesduring the year under review.

30.2 SWEAT EQUITYGMDC has not issued any Sweat Equity Sharesduring the year under review.

30.3 BONUS SHARESGMDC has not issued any Bonus Shares duringthe year under review.

30.4 EMPLOYEES STOCK OPTION PLANGMDC has not provided any Stock OptionScheme to the employees.

31. DISCLOSURE UNDER THE SEXUALHARASSMENT OF WOMEN AT WORKPLACE(PREVENTION, PROHIBITION ANDREDRESSAL) ACT, 2013GMDC has in place Sexual Harassment Policy inl ine with the requirements of The SexualHarassment of Women at Workplace(Prevention, Prohibition and Redressal) Act,2013. Internal Complaints Committee (ICC) hasbeen set up to redress complaints receivedregarding sexual harassment. All employees(permanent, contractual, temporary, trainees) arecovered under this policy.

The following is a summary of sexual harassmentcomplaints received and disposed off during theyear 2019-20:

No. of complaints received: NILNo. of complaints disposed of: NIL

32. CONSOLIDATED FINANCIAL STATEMENTSThe Consolidated Financial Statements of theCompany have been prepared in accordance withIndian Accounting Standards (Ind AS) notifiedunder Section 133 of the Companies Act,2013read with the Companies(Indian AccountingStandards) Rules,2015 and other relevantprovisions of the Act form part of this AnnualReport. Further, a statement containing salientfeatures of the Financial Statements ofSubsidiaries / Associate Companies / JointVentures in the prescribed format AOC – 1 is givenat Annexure V.

33. BOARD-OF-DIRECTORSDuring the financial year under review Shri MilindTorawane, IAS was appointed as Director viceShri Sanjeev Kumar, IAS, transferred. Smt. GauriKumar, IAS (Retd.)was appointed as the WomanIndependent Director. The tenure of Shri S BDangayach and Shri Nitin Shukla, bothIndependent Directors were renewed for a periodof five more years.

34. CORPORATE GOVERNANCEAs per requirement of SEBI (Listing Obligations &Disclosure Requirements) Regulations, 2015,and as per the listing agreement entered into withthe various Stock Exchanges, the detailed reporton the Corporate Governance is given inAnnexure VI and forms part of this report.

35. MANAGEMENT DISCUSSION AND ANALYSISAs per requirement of SEBI (Listing Obligations &Disclosure Requirements) Regulations, 2015,and as per the listing agreement entered into withthe various Stock Exchanges, Management


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Discussion and Analysis is given at Annexure VIIand forms part of this report.

36. CORPORATE SOCIAL RESPONSIBILITY (CSR)AND CSR POLICYGMDC has been sensitive towards its SocialResponsibility right from its inception. It hasadopted a business model which has an inclusiveapproach. The company is always keen toaddress needs and requirements of thecommunity within which it operates. Yourcompany reaches out to various segments ofsociety, in particular, of rural community byproviding them critical rural infrastructure invarious sectors, such as, Water, Health,Sanitation, Education, Employment, Livelihood,Agriculture etc. Through these initiatives, yourcompany attempts to take the f ruits ofdevelopment to those people who are not yetincluded in the main stream. In the year passedby, there was an unprecedented situation due toCovid 19 pandemic. Your company took specialmeasures to reach out to the rural community inthe villages surrounding its various project sitesto contain the spread of the virus in the ruralregions.

The CSR Policy of the Company is also uploadedon the website of GMDC. The CSR Policyframework of the company is available elsewherein this annual report. A CSR Report for Fiscal2019-20 as prescribed under Section 135 of the

Companies Act, 2013 read with the Companies(Corporate Social Responsibility) Rules, 2014,forms part of this Report, and is annexed atAnnexure VIII.

37. ACKNOWLEDGEMENTYour Directors are pleased to place on recordtheir deep appreciation for the sincere servicesand co-operation extended by the officers,employees and workmen of GMDC at all levels.They also wish to place on record their gratitudefor the confidence placed in them by financialinstitutions and investors. Further, your Directorswish to thank various departments of the CentralGovernment viz. the Ministry of Environment andForest, Ministry of Coal, Ministry of Mines andvarious bodies of State Government of Gujaratviz. the Industries & Mines Department, theFinance Department, Commissionerate ofGeology and Mining and Gujarat State PollutionControl Board. The Directors also extend theirheartiest thanks to the esteemed customers andshareholders of the Company for their valued co-operation.

For and on behalf of the Board-of-Directors

Arunkumar Solanki, IAS S B DangayachManaging Director Independent DirectorDIN: 03571453 DIN: 01572754

Date : 23rd June, 2020Place : Ahmedabad


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ANNEXURE: IFORM NO. MR-3

SECRETARIAL AUDIT REPORTFor the financial year ended on 31/03/2020

[Pursuant to Section 204(1) of the Companies Act, 2013 andRule 9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]

To,The Members,Gujarat Mineral Development Corporation Limited(CIN: L14100GJ1963SGC001206)Khanij Bhavan, Near Gujarat University Ground,132 Ft. Ring Road, Vastrapur, Ahmedabad - 380052.

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence togood corporate practices by Gujarat Mineral Development Corporation Limited (hereinafter referred as theCompany). Secretarial Audit was conducted in a manner that provided us a reasonable basis for evaluating thecorporate conducts/statutory compliances and expressing our opinion thereon.

Based on our verification of the Company’s books, papers, minutes books, forms and returns filed and other recordsmaintained by the Company and also the information provided by the Company, its officers, agents and authorizedrepresentatives during the conduct of Secretarial Audit, we hereby report that in our opinion, the Company has,during the audit period covering the financial year ended on 31st March, 2020 (‘Audit Period’) complied with thestatutory provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting made hereinafter:

We further report that maintenance of proper and updated Books, Papers, Minutes Books, filing of Forms andReturns with applicable regulatory authorities and maintaining other records is responsibility of management andCompany, our responsibility is to verify the content of the documents produced before us, make objective evaluationof the content in respect of compliance and report thereon.We have examined the books, papers, minute books,forms and returns filed and other records maintained by the Company for the financial year ended on 31st March,2020 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made thereunder;(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder;(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent to

foreign direct investment, overseas direct investment and external commercial borrowings;(v) The following Regulations and Guidelines prescribed under Securities and Exchange Board of India Act, 1992

(‘SEBI Act’):-(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)

Regulations, 2011;(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations,

2018 (Not Applicable to the Company during the Audit Period);(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock

Purchase Scheme) Guidelines, 1999 and The Securities and Exchange Board of India (Share BasedEmployee Benefits) Regulations, 2014 (Not Applicable to the Company during the Audit Period);

(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (NotApplicable to the Company during the Audit Period);

(f) The Securities and Exchange Board of India ( Registrar to an Issue and Share transfer Agents)Regulations, 1993 regarding the Companies Act and dealing with client (Not Applicable to the Companyduring the Audit Period);

(g) The Securities and Exchange Board of India(Delisting of Equity Shares) Regulation, 2009 (Not Applicableto the Company during the Audit Period);


17

(h) The Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 (Not Applicableto the Company during the Audit Period);

(vi) Following are some other laws specifically to the Company:(a) The Mines Act, 1952;(b) The Mines and Minerals (Development and Regulation ) Act, 1957;(c) The Air (Prevention and Control of Pollution) Act, 1981;(d) The Environmental (Protection) Act, 1986;(e) The Environmental (Protection) Rules, 1986, amended up to 2008.(f) The Hazardous Waste (Management & handling) Rules, 1989(g) The Noise pollution (Regulation & Control) Rules, 2000;(h) The Electricity Act, 2003.(i) The Employees Provident Fund and Miscellaneous Provisions Act, 1952(j) The Payment of Gratuity Act, 1972(k) The Contract Labour (Regulation and Abolition) Act, 1970(l) Minimum Wages Act, 1948We have also examined compliance with the applicable clauses of the following:(i) Secretarial Standards issued by the Institute of Company Secretaries of India.(ii) Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations,

2015.We further report that no other specific law applicable to Company except as above as per informationprovided by the Company.During the period under review the Company has generally complied with the provisions of the Act, Rules,Regulations, Guidelines, standards etc. mentioned above.We further report that the Board of Directors of the Company is duly constituted with proper balance ofExecutive Directors, Non-Executive Directors and Independent Director. The change in the composition of theBoard of Directors took place during the period under review were carried out in compliance with provisions ofthe Act. Adequate notice is given to all Directors to schedule the Board Meetings, agenda and detailed noteson agenda were sent at least seven days in advance and a system exists for seeking and obtaining furtherinformation and clarification on the agenda items before the meeting and for meaningful participation at themeeting. All the decisions were carried out unanimously and recorded as part of the minutes.We further report that there are adequate systems and processes in the Company commensurate withthe size and operation of the Company to monitor and ensure compliance with applicable laws, rules,regulations and guidelines.

For Pinakin Shah & Co.(Company Secretaries)

CS Pinakin ShahFCS No: 2562,

Place : Ahmedabad C.P. No: 2932Date : 12/10/2020 UDIN:F002562B000919621

Note : This report is to be read with our letter of even date which is annexed as ‘ANNEXURE A’ and Forms anintegral part of this report.


18

ANNEXURE A

To,The Members,Gujarat Mineral Development Corporation Limited(CIN: L14100GJ1963SGC001206)Khanij Bhavan, Near Gujarat University Ground,132 Ft. Ring Road,Vastrapur, Ahmedabad - 380052.

Sub: Secretarial Audit Report for the F.Y 2019-20.

Our report of even date is to be read along with this letter.

1. Maintenance of Secretarial record is the responsibility of the management of the Gujarat MineralDevelopment Corporation Limited (hereinafter referred as the Company). Our responsibility is to express anopinion on these Secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assuranceabout the correctness of the contents of the Secretarial records. The verification was done on test basis toensure that correct facts are reflected in secretarial records. We believe that the process and practices, wefollowed provide a reasonable basis for our Opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of theCompany.

4. Wherever required, we have issued our preliminary observations on 30/09/2020. The woman independentdirector was appointed with effect from 7th June, 2019.The Company has provided reply/ clarification to oursatisfaction.

5. The Compliance of the provisions of corporate and other applicable laws, rules, regulation, standards is theresponsibility of management. Our examination was limited to the verification of records and procedure ontest basis.

6. The Secretarial audit report is neither an assurance to the future viability of the Company nor of the efficacy oreffectiveness with which the management has conducted the affairs of the Company.

For Pinakin Shah & Co.(Company Secretaries)

CS Pinakin ShahFCS No: 2562,

Place : Ahmedabad C.P. No: 2932Date : 12/10/2020 UDIN:F002562B000919621


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ANNEXURE: II

GMDC is a Government Public Sector Undertaking and a Government Company under the Companies Act, 2013.Being a Government Company, the Company is bound to follow various orders, instructions and guidelines of Governmentof Gujarat. Thus, the pay structure of GMDC is adopted from the pay structure of the Government of Gujarat. TheCompany does not offer any ESOP or any other special recognition payment to its Directors and Key ManagerialPersonnel. The directors are paid only sitting fees as decided by the Government and out of pocket expenses.

Remuneration paid to Whole Time Director.

Name of the Whole Time Director Shri Arunkumar Solanki, IASDesignation Managing DirectorRemuneration in FY 2019-20 32,91,394% increase in remuneration in 2019-20 as compared to 2018-19 3.10Ratio of Remuneration to Median Remuneration of Employees 7.11Ratio of Remuneration to Revenues (FY 2018-19) NegligibleRatio of Remuneration to Revenues (FY 2019-20) Negligible

Remuneration paid to Independent DirectorsCompany’s Independent Directors do not receive any remuneration other than the sitting fees and out of pocketexpenses, which are 7,500 and 1,000 per meeting of the Board and its Committees respectively. The sittingsfees and out of pocket expenses paid to the independent directors during the year are as under:

Sr. Particulars Smt. Gauri Shri Nitin Shri S B Prof. ShaileshNo. Kumar, IAS(Retd.) Shukla Dangayach Gandhi1 Sitting Fees in FY 2019-20 (in ) 22,500 15,000 15,000 7,5002 % increase in remuneration in 2019-20

as compared to 2018-19 NA NA NA NA3 Ratio of Remuneration to Median

Remuneration of Employees NA NA NA NA4 Ratio of Remuneration to Revenues

(FY 2018-19,) NA NA NA NA5 Ratio of Remuneration to Revenues

(FY 2019-20) NA NA NA NA

Remuneration of the Key Managerial Personnel (KMP)

Name of the Key Managerial Personnel Shri L Kulshrestha Shri Joel EvansDesignation Chief General Manager & Company Secretary

Chief Financial OfficerRemuneration in FY 2018-19 30,23,110 15,21,052Remuneration in FY 2019-20 32,03,820 16,28,511% increase in remuneration in 2019-20 as compared to 2018-19 5.98 7.06Ratio of Remuneration to Median Remuneration of Employees 6.92 3.52Ratio of Remuneration to Revenues (FY 2018-19) Negligible NegligibleRatio of Remuneration to Revenues (FY 2019-20) Negligible Negligible

PARTICULARS OF EMPLOYEESInformation as per Rule 5 (1) of Chapter XIII,

Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014


20

The Median Remuneration of Employees (MRE) excluding Whole-Time Director (WTD) was 4,63,200 forfinancial year 2019-20.

The number of employees on the rolls of the Company as on March 31, 2020 was 1226 (Figure is inclusive ofMRW, DRW, employees on contracts and Trainees).

The revenue during FY 2019-20 was 1,690 crore and net profit was 202.68 crore. The aggregate remunerationto employees excluding WTD increased by 18.15 % over the previous financial year. The aggregate increase insalary of other KMPs was 6.34% in FY 2019-20 over FY 2018-19.

GMDC’s market capitalization decreased by 61% to 1003 crore as of March 31, 2020 from 2577 crore as ofMarch 31, 2019. The Price Earnings Ratio was 4.95 as of March 31, 2020 which is lower by 267 % as compared toMarch 31, 2019. The closing price of GMDC’s equity shares on the NSE and BSE as of March 31, 2020 was

31.55 and 31.40 respectively.

GMDC, being a Government Company, does not have any variable compensation policy. Moreover, it does not haveany compensation through ESOP either to the Directors or to its employees.

GMDC’s directors (except the Managing Director) are not paid any other remuneration such as bonus, commissionetc during any financial year, except the sitting fees and out of pocket expenses. Hence, the remuneration of all theemployees of GMDC will be higher than the remuneration received by the Directors. The Managing Directorreceives salary as per the Government of Gujarat norms.

ANNEXURE: IIIConservation of Energy, Technology Absorption and Foreign Exchange and Outgo [Section 134 (3) (m) ofThe Companies Act, 2013 read with Rule 8(3) of The Companies (Accounts) Rules, 2014]

A. Conservation of Energy

1. The Steps taken or impact on conservation of energy: NIL

2. The steps taken by the company for utilizing the alternate source of the energy :

i. GMDC has successfully installed Wind Power Farm with the capacity of 200.9 MW and Solar Power Projectof 5 MWp capacity.

ii. By taking green initiative of wind and solar power generation, GMDC reduced 4.10 lakh tons of CO2 due togeneration of green energy.

3. The capital investment of energy conservation equipments: NIL

B. Technology Absorption

i. The efforts made towards technology absorption: NA

ii. The benefits derived like product improvement, cost reduction, product development or importsubstitution : NA

iii. In case of imported technology (imported during the last three years reckoned from the beginning ofthe financial year) : Deployment of Israel technology of mobile mine water purifier

iv. The expenditure incurred on Research and Development : NIL

C. Foreign Exchange earnings and Outgo

The Foreign Exchange earned in terms of actual inflows and the Foreign Exchange outgo in terms ofactual outflows during the year: NIL


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ANNEXURE: IVEXTRACT OF ANNUAL RETURN

(For the financial year ended on 31.03.2020)[Pursuant to Section 92 (3) of the Companies Act, 2013 and

Rule 12(1) of the Company (Management & Administration) Rules, 2014 - MGT-9]

I. REGISTRATION & OTHER DETAILS:

CIN L14100GJ1963SGC001206Registration Date 15.05.1963Name of the Company Gujarat Mineral Development Corporation LimitedCategory/Sub-category of the Company Government CompanyAddress of the Registered office & contact details Khanij Bhavan, 132’ Ring Road,

Near University Ground,Vastrapur, Ahmedabad – 380 052Telephone : 27913200 / 3501E-mail : [email protected] : www.gmdcltd.com

Whether listed company YesName, Address & contact details of the M/s. MCS Share Transfer Agent LimitedRegistrar & Transfer Agent, if any. 101, Shatdal Complex, 1st floor,

Opp. Bata Show Room,Ashram Road, Ahmedabad – 380 009Tel : (079) 26582878Fax : (079) 26581296Email : [email protected]

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY :(All the business activities contributing 10% or more of the total turnover of the company shall be stated)

Sr. No. Name and Description of main NIC Code of the % to total turnover ofproducts / services Product/service the company

1 Lignite 270220-00 77.83

2 Electricity - 19.81

III. PART ICULARS OF HOLDING, SUBSIDIARY I AND ASSOCIATE COMPANIES -

Sr. Name and Address of CIN / GLN Holding / % of ApplicableNo. the Company Subsidiary / Shares held Section

Associate1 Gujarat Foundation for U80903GJ2011NPL066999 Joint Venture 50.00 2(6)

Entrepreneurial Excellence (GFEE)1st Floor, Khanij Bhavan,132 Ft. Ring Road,Near University GroundVastrapur, Ahmedabad-380 052


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2 Gujarat Jaypee Cement & U26943GJ2007PLC051360 Associate 26.00 2(6)Infrastructure LimitedC/O Jayprakash Associates Ltd.J.A. House, 63 Basant Lok,Vasant Vihar, New Delhi-110 057

3 Gujarat Credo Mineral Industries U26900GJ2012PLC069426 Associate 26.00 2(6)LimitedTF-1, 3rd Floor “DEV”Opp. Parimal Garden, C G Road,Ahmedabad-380 006

4 Swarnim Gujarat Fluorspar U24119GJ2012PTC070801 Joint Venture 1.05 2(6)Private LimitedKhanij Bhavan, 132 Ft. Ring Road,Near University Ground,Vastrapur, Ahmedabad-380 052

5 Naini Coal Company Limited U10200GJ2009SGC058295 Joint Venture 50.00 2(6)Khanij Bhavan, 132 Ft. Ring Road,Near University GroundVastrapur, Ahmedabad-380 052

6 Aikya Chemicals Private Limited U24100GJ2011PTC068018 Associate 26.00 2(6)1, ChandramaninagarVidya Vihar School LaneOff. High Tension Road, SubhanpuraVadodara-390 023

IV. SHARE HOLDING PATTERN :(Equity Share Capital Breakup as percentage of Total Equity)

i. Category-wise Share Holding

Category of No. of Shares held at the beginning No. of Shares held at the end of % ChangeShareholders of the year [As on 1-April-2019] the year [As on 31-March-2020] during

the yearDemat Physical Total % of Total Demat Physical Total % of Total

Shares SharesA. Promoter s(1) Indiana) Individual/ HUF - - - - - - - - -b) Central Govt - - - - - - - - -c) State Govt(s) 235320000 - 235320000 74.00 235320000 - 235320000 74.00 NILd) Bodies Corp. - - - - - - - - -e) Banks / FI - - - - - - - - -f) Any other - - - - - - - - -Total 235320000 0 235320000 74.00 235320000 0 235320000 74.00 NILshareholdingof Promoter (A)


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Category of No. of Shares held at the beginning No. of Shares held at the end of % ChangeShareholders of the year[As on 1-April-2019] the year[As on 31-March-2020] during

the yearB. PublicShareholding1. Institutionsa) Mutual Funds 24373979 - 24373979 7.66 23794111 - 23794111 7.48 -0.18b) Banks / FI 1179241 - 1179241 0.37 2309 - 2309 0.00 -0.37c) Central Govtd) State Govt(s)e) Venture CapitalFundsf) InsuranceCompanies 8196792 - 8196792 2.58 7932644 - 7932644 2.50 -0.08g) FIIs 11025960 - 11025960 3.47 7754093 - 7754093 2.44 -1.03 h) ForeignVenture CapitalFunds - - - - - - - -i) Others (specify) - - - - - - - -Sub-total (B)(1):- 44775972 - 44775972 14.08 39483157 - 39483157 12.42 -1.662. Central Govt/State Govt(s)/POIa) Govt. 89562 - 89562 0.03 98079 - 98079 0.03 0.00Sub-total (B)(2):- 89562 - 89562 0.03 98079 - 98079 0.03 0.003. Non-Institutionsa) Bodies Corp. 3399580 43000 3442580 1.08 3916596 43000 3959596 1.25 0.17b) Individualsi) Individualshareholdersholding nominalshare capital upto

2 lakh 27724081 392950 28117031 8.85 32135725 360850 32496575 10.22 1.37ii) Individualshareholdersholding nominalshare capital inexcess of 2 lakh 1846110 - 1846110 0.58 1786539 - 1786539 0.56 -0.02c) Others (specify)Non ResidentIndians 3555256 92500 3647756 1.15 3743125 87750 3830875 1.20 0.05Hindu UndividedFamilies 744194 - 744194 0.23 1022779 - 1022779 0.32 0.09Trusts 16795 - 16795 0.00 2400 - 2400 0.00 0.00Sub-total (B)(3):- 37286016 528450 37814466 11.89 42607164 491600 43098764 13.55 1.66Total PublicShareholding(B) = (B)(1) +(B)(2) + (B)(3) 82151550 528450 82680000 26.00 82188400 491600 82680000 26.00 -


24

C. Shares heldby Custodian forGDRs & ADRs - - - - - - - - -Grand Total(A+B+C) 317471550 528450 318000000 100.00 317508400 491600 318000000 100.00 -

ii. Shareholding of Promoters-Sr. Shareholder’s Name Shareholding at the beginning of the year Shareholding at the end of the year % changeNo. No. of % of total % of Shares No. of % of total % of Shares in share

Shares Shares of Pledged / Shares Shares of Pledged / holdingthe company encumbered the encumbered during the

to total shares company to total shares year1 H.E. The Government

of Gujarat 235320000 74.00 NIL 235320000 74.00 NIL NIL

iii. Change in Promoters’ Shareholding (please specify, if there is no change)Sr. No. Particulars Shareholding at the Cumulative Shareholding

beginning of the year during the yearNo. of shares % of total No. of shares % of total

shares of the shares of thecompany company

At the beginning of the yearDate wise Increase / Decrease in PromotersShareholding during the year specifying thereasons for increase / decrease (e.g. There is no Change.allotment /transfer / bonus/ sweat equity etc.):At the end of the year

iv. Shareholding Pattern of top ten Shareholders: (Other than Directors, Promoters and Holders of GDRs and ADRs)

Sr.No. Name of the shareholder Shares held as on 1.4.2019 Shares held as on 31.3.2020 Purchase / Sale (-)(Opening Balance) (Closing Balance) during the year

No of shares % of shares No of shares % of sharesheld in the held in thecompany company

1. ICICI Prudential Multi-Asset Fund 9469803 2.98 9469803 2.98 NIL2. Franklin India Smaller Companies

Fund 9028098 2.84 8128098 2.56 -9000003. Life Insurance Corporation of India 5174139 1.63 5174139 1.63 NIL4. Uti-Mid Cap Fund 2321464 0.73 1378332 0.43 -9431325. Dr Sanjeev Arora 1747484 0.55 1747484 0.55 NIL6. ICICI Prudential Infrastructure Fund 1607635 0.51 1607635 0.51 NIL7. National Insurance Company Ltd 1440000 0.45 1440000 0.45 NIL8. Polunin Emerging Markets Small

Cap Fund, LLC 1371357 0.43 1384960 0.44 136039. ICICI Prudential Multicap Fund 1154154 0.36 1528373 0.48 37421910. General Insurance Corporation of

India 1143311 0.36 1143311 0.36 NIL


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v. Shareholding of Directors and Key Managerial Personnel:Sr. No. Shareholding of each Directors and each Shareholding at the Cumulative Shareholding

Key Managerial Personnel beginning of the year during the yearNo. of shares % of total No. of shares % of total

shares of the shares of thecompany company

At the beginning of the yearDate wise Increase / Decrease in PromotersShareholding during the year specifying thereasons for increase / decrease (e.g. NIL NIL NIL NILallotment /transfer / bonus/ sweat equity etc.):At the end of the year

V. INDEBTEDNESS – Indebtedness of the Company including interest outstanding/accrued but not due for payment.Secured Loans Unsecured Deposits Total

excluding deposits Loans IndebtednessIndebtedness at the beginning of the financial yeari) Principal Amountii) Interest due but not paid NIL NIL NIL NILiii) Interest accrued but not dueTotal (i + ii + iii)Change in Indebtedness during the financial yearAdditionReduction NIL NIL NIL NILNet ChangeIndebtedness at the end of the financial yeari) Principal Amountii) Interest due but not paid NIL NIL NIL NILiii) Interest accrued but not dueTotal (i + ii + iii) NIL NIL NIL NIL

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL-A. Remuneration to Managing Director, Whole-time Directors and/or Manager: (Amount in )Sr.No. Particulars of Remuneration Shri Arunkumar Total Amount

Solanki, IAS1 Gross salary

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 32,07,994 32,07,994(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 83,400 83,400(c) Profits in lieu of salary under section 17(3) Income- tax Act, 1961 NIL NIL

2 Stock Option NIL NIL3 Sweat Equity NIL NIL4 Commission

- as % of profit NIL NIL- others, specify… NIL NIL

5 Others, please specify NIL NILTotal (A) 32,91,394 32,91,394Ceiling as per the Act 60,00,000 60,00,000


26

B. Remuneration to other directors : (Amount in )Sr.No. Particulars of Remuneration Name of Directors Total Amount

1 Independent Directors Smt. Gauri Kumar, Shri S.B. Shri Nitin Prof. ShaileshIAS (Retd) Dangayach Shukla Gandhi

Fee for attending board / committee meetings 22,500 15,000 15,000 7,500 60,000Commission NIL NIL NIL NIL NILOthers, please specify NIL NIL NIL NIL NILTotal (1) 22,500 15,000 15,000 7,500 60,000

2 Other Non-Executive DirectorsFee for attending board / committee meetings NIL NIL NIL NIL NILCommission NIL NIL NIL NIL NILOthers, please specify NIL NIL NIL NIL NILTotal (2) NIL NIL NIL NIL NILTotal (B) = (1+2) 22,500 15,000 15,000 7,500 60,000Total Managerial Remuneration 22,500 15,000 15,000 7,500 60,000

C. Remuneration to Key Managerial Personnel Other than MD / Manager / WTD (Amount in )Sr.No. Particulars of Remuneration Key Managerial Personnel

CGM & CFO CS Total1 Gross salary

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 30,74,214 15,88,884 46,63,098(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 1,29,606 39,627 1,69,233(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 NA NA NA

2 Stock Option NIL NIL NIL3 Sweat Equity NIL NIL NIL4 Commission

- as % of profit NIL NIL NILothers, specify… NIL NIL NIL

5 Others, please specify NIL NIL NILTotal 32,03,820 16,28,511 48,32,331

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Companies Act Brief Details of Penalty / Authority Appeal made,Description Punishment / [RD / NCLT/ COURT] if any (give Details)

Compoundingfees imposed

A. COMPANYPenaltyPunis hment NA NA NA NA NACompoundingB. DIRECTORSPenaltyPunishment NA NA NA NA NACompoundingC. OTHER OFFICERS IN DEFAULTPenaltyPunishment NA NA NA NA NACompounding


27

ANNEXURE: VCONSOLIDATED FINANCIAL STATEMENT (AOC-1)

Form AOC – 1(Pursuant to First Proviso to sub-section (3) of section 129 read with rule 5 of the Companies (Accounts) Rules, 2014)

Statement containing salient features of the Financial Statemente of Subsidiaries / Associate Companies / Joint Ventures

PART “A”: SUBSIDIARIES(Information in respect of each subsidiary to be presented with amounts in )

1 Sr. No.2 Name of the Subsidiary Not Applicable3 Reporting period for which the subsidiary concerned, if different from the holding

company’s reporting period Not Applicable4 Reporting currency and Exchange Rate as on the last date of the relevant

Financial Year in the case of foreign subsidiaries Not Applicable5 Share Capital -6 Reserve & Surplus -7 Total Assets -8 Total Liabilities (Excluding Shareholders Fund) -9 Investments -10 Turnover -11 Profit before taxation -12 Provision for taxation -13 Profit after taxation -14 Proposed Dividend -15 % of Shareholding -

PART “B”: ASSOCIATES AND JOINT VENTURESStatement pursuant to Section 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

Sr. Name of Associates / Swarnim Gujarat Gujarat Gujarat Aikya Naini CoalNo. Joint Ventures Gujarat Foundation for Jaypee Credo Chemicals Company

Fluorspar Entrepreneurial Cement and Mineral Pvt. Ltd. Ltd.Pvt. Ltd. Excellence Infrastructure Ltd. Industries Ltd.

1. Latest un-audited 31.03.2020 31.03.2020 31.03.2020 31.03.2020 31.03.2020 31.03.2020Balance Sheet Date

2. Shares of Associate /Joint Ventures held by theCompany at the year endNo 25,000 50,000 1,90,840 49,40,000 38,98,700 2,497Amount of Investment inAssociate / Joint Ventures(Amount in ) 2,50,000 5,00,000 19,08,400 4,94,00,000 3,89,87,000 2,49,700Extent of Holding % 1.05% 50.00% 26.00% 26.00% 26.00% 50.00%


28

Sr. Name of Associates / Swarnim Gujarat Gujarat Gujarat Aikya Naini CoalNo. Joint Ventures Gujarat Foundation for Jaypee Credo Chemicals Company

Fluorspar Entrepreneurial Cement and Mineral Pvt. Ltd. Ltd.Pvt. Ltd. Excellence Infrastructure Ltd. Industries Ltd.

3. Description of how there is The Companysignificant Influence has control of

the compositionof the Board

of Directors inSwarnim

GujaratFluorspar

Pvt Ltd.4. Reason why the Associates

/ Joint Venture is notconsolidated N.A. N.A. N.A. N.A. N.A. N.A.

5. Net worth attributed toshareholding as per latestaudited /unaudited BalanceSheet (` in lakh) 1.58 4.04 11.37 1101.73 198.61 0.00

6. Profit / Loss for the Yearattributed to shareholding(` in lakh) (0.02) 4.04 0.09 118.94 76.28 0.00I. Considered in Consolidation Yes Yes Yes Yes Yes YesII. Not Considered in Consolidation - - - - - -

Please refer note No. 2.51.01 of notes to the Consolidated Financial Statements for reasons of not consolidating the financial statementsof GMRICS.


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ANNEXURE: VIREPORT ON CORPORATE GOVERNANCE

(Pursuant to Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations, 2015 [hereinafter referred to as “Listing Regulations” or “LODR”)

COMPANY’S PHILOSOPHY ON CODE OF GOVERNANCE

Gujarat Mineral Development Corporation Limited (GMDC) is committed to good governance practices across allthe fields where it operates. Being a Government Public Sector Undertaking, GMDC envisages the attainment of thehigh standards of corporate governance by timely disclosures, transparent accounting policies, responsibility andfairness. The Company is consciously adopting the practices that are transparent and effective. It is its corporatephilosophy that good corporate governance practices ultimately results in the enhancement of value for all thestakeholders, shareholders, government, society or business community at large. Its endeavor is to maximize thelong term value of the shareholders of the Company.

BOARD-OF-DIRECTORS• Composition

The composition of the Board with reference to the number of Executive, Non-Executive directors and WomanDirectors, meets the requirement of Code of Corporate Governance. The Company has an optimumcombination of Non-Executive Directors with independent Directors.

The strength of the Board comprised of eight Directors as on 31st March, 2020. The Board members consist ofpersons with professional expertise and experience in various fields of Finance, Accounts, Management, Law,Labour Welfare etc. Further, being a State Government Public Sector Undertaking, majority Directors are IASOfficers who have possessed professional expertise and are appointed by the Government of Gujarat.

• Category and Designation of Directors:

Sr. Name of Director Category Designation No. of No. of specifiedNo. Directorship Committees (Other than

in other GMDC in whichCompanies Chairman / Member(Excluding Companies)Pvt. Limited Chairman Member

1 Shri Manoj Kumar Das, IAS NED/PD Chairman 11 - -2 Shri Arunkumar Solanki, IAS ED/ PD Managing

Director 3 - -3 Shri Milind Shivaram Torawane, NED/PD Director 10 - 1

IAS4 Smt. Sonal Mishra, IAS NED/PD Director 1 - -5 Smt. Gauri Kumar, IAS (Retd.) NED/ID Director 1 - -6 Shri S. B. Dangayach NED/ID Director 3 - 27 Shri Nitin Shukla NED/ID Director NIL - -8 Prof. Shailesh Gandhi NED/ID Director 1 - -

Notes:1. None of the Directors is related to any other Director.2. None of the Directors has any business relationship with the Company.3. None of the Directors has received any loans and advances from the Company during the year.4. Outside directorship does not include alternate directorship, directorship of Private Ltd. Companies, Companies

under Section 8 and Companies incorporated outside India. The Number of outside Committee position heldincludes Audit Committee and Investor Grievance Committee only.

5. PD –Promoter Director, NED –Non Executive Director, ED –Executive Director, ID – Independent Director


30

The Company has received declarations on criteria of independence as prescribed in Section 149(6) of theCompanies Act, 2013 (“Act”) and Regulation 16 (1) (b) of the Listing Regulations from the Directors of the Companywho have been classified as Independent Directors as on March 31, 2020.

The Board confirms that the Independent Directors fulfill the conditions specified in Section 149 of the Act andRegulation 16(1)(b) of the Listing Regulations and are independent of the management.

There was no instance during the FY 2019-20 when the Board had not accepted any recommendation of anycommittee of the Board.

• Details of Directorship and Chairman / Membership of Board/ Committees of other Listed Companiesshowing the position as on 31st March, 2020 are given in the following table:

Sr. No. Name of Director Name of Other Listed Companies Category of Directorship

1 Shri Manoj Kumar Das, IAS Gujarat Alkalies And Chemicals Non Executive,Limited Non Independent-Director

2 Shri Arunkumar Solanki, IAS None NA3 Shri Milind Shivaram Torawane, Gujarat Gas Limited Non Executive,

IAS Non Independent-Director4 Smt. Sonal Mishra, IAS None NA5 Smt. Gauri Kumar, IAS (Retd.) Gujarat Narmada Valley Fertilizers

& Chemicals Limited Independent Director6 Shri S. B. Dangayach 1. Gujarat Alkalies And Chemicals

Limited Independent Director2. Gujarat Industries Power Company Ltd.

7 Shri Nitin Shukla None NA8 Prof. Shailesh Gandhi None NA

• Number of Board Meetings Held:-The Board met 4 times during the year i.e. on 09.05.2019, 03.08.2019, 13.11.2019 and 13.02.2020. The attendanceof each Director at the Board Meetings held during the year and at the last Annual General Meeting held on 30thSeptember, 2019 is as under:

Sr. No. Name of the Director Meeting held during No. of meetings Attendance atthe tenure of Directors attended the last AGM

1 Shri Manoj Kumar Das, IAS 4 4 No2 Shri Arunkumar Solanki, IAS 4 4 Yes3 Shri Milind Shivaram Torawane, IAS 2 2 N.A.4 Smt. Sonal Mishra, IAS 4 3 No5 Smt. Gauri Kumar, IAS (Retd.) 3 3 No6 Shri S. B. Dangayach 4 3 Yes7 Shri Nitin Shukla 4 2 Yes8 Prof. Shailesh Gandhi 4 1 No

• The following is the list of core skills/expertise/ competencies identified by the Board of Directors as required inthe context of its business(es) and sector(s) for it to function effectively and those actually available with theBoard:

1. Knowledge2. Behavioral Skills3. Strategic thinking and decision making4. Financial Skills5. Technical/Professional skills and specialized knowledge to assist the ongoing aspects of the business.


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All the Directors play an active and important role by participating in deliberations at the Board/Committee Meetings.

Information supplied to the BoardRequisite information as specified in Part - A of Schedule II of Regulation 17 of the Listing Regulations are madeavailable to the Board of Directors, whenever applicable. For discussions and consideration at the Meeting. AgendaPapers are circulated to Directors in advance so as to have the focused and meaningful discussion at the meeting.At every Board Meeting, a presentation is made on the matters covering finance, marketing, operations and anyother material/ significant developments. In case of business exigencies or urgency of matters, resolutions arepassed by Circulation and the same is put-up to the Board / Committee in the next meeting for taking note thereof.Action Taken Report on the decisions taken at the previous Board / Committee Meetings is placed at theirimmediately succeeding Meetings for its noting.

As required under the Act and Listing Regulations, the Board has constituted mandatory committees. Meetings ofthe Committees are held, whenever need arises. Minutes of all Committee Meetings are placed before the Board fortaking note thereof.

The Board periodically reviews the compliance reports of laws applicable to the Company as also the steps taken torectify non-compliances, if any.

Board’s ProcedureApart from the matters which are to be decided by the Board as per relevant statutes and rules, all major decisionsinvolving large capital expenditure, award of major contracts, mobilization of resources, pricing policies, loans andinvestments, policy relating to all borrowings and personnel matters including Employees’ compensation etc., aredecided by the Board.

Code of ConductThe Board of Directors of the Company has approved and adopted a Code of Conduct for the Directors as well asSenior Management of the company. It has also been placed on company’s website at www.gmdcltd.com.

All the Board Members and Senior Management Personnel have affirmed compliance with the Code of Conductduring the year 2019-20. A declaration by the Managing Director to this effect is provided at “Annexure A” whichforms part of the company’s Annual Report 2019-20.

Separate Meetings of the Independent DirectorsAs required under Schedule IV to the Companies Act, 2013 read with Regulation 25(3) of the Listing Regulations,the Independent Directors hold a Meeting during the year without the attendance of Non-Independent Directors andMembers of Management. During the meeting they -i. review the performance of non-independent directors and the Board as a whole;ii. review the performance of the Chairperson of the Company, taking into account the views of Executive Directors

and Non-Executive Directors;iii. assess the quality, quantity and timeliness of flow of information between the Company Management and the

Board that is necessary for the Board to effectively and reasonably perform their duties.

After the meeting they conclude that all the Directors effectively participate and interact in the Meeting. TheChairperson has good experience, knowledge and understanding of the Board’s functioning. The information flowbetween the Company’s Management and the Board is satisfactory.

Familiarization Programme for Independent DirectorsA system is in place to familiarize the Independent Directors about the company by providing a Director's pactcovering the details about the company such as operational & financial highlights, various plants with installedcapacity and products manufactured by the company, CSR activities, etc., their role, rights & responsibility, thenature of industry in which the company operates, business model of the company, etc. While considering quarterlyand Annual Financial Results, a presentation is made to the Audit Committee and Board, inter-alia, coveringoperational and financial performance of the company.

The familiarization programme is organized when a new Independent Director is appointed.

COMMITTEES OF THE BOARDThe Board has constituted the Audit Committee, Stakeholders Relationship Committee, Nomination &Remuneration Committee, CSR Committee and Risk Management Committee as required to be constituted under


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the provisions of Companies Act, 2013 and Listing Regulations. Apart from abovementioned committees the Boardof Directors has also constituted a Tender Committee.

Audit CommitteeThe Audit Committee of the Company comprises of the following directors out of which three are IndependentDirectors as on 31st March, 2020.

1. Shri Milind Torawane, IAS Non-Executive Director/Promoter Director2. Shri S B Dandayach Non-Executive Director / Independent Director3. Shri Nitin Shukla Non-Executive Director / Independent Director4. Prof. Shailesh Gandhi Non-Executive Director / Independent Director

The Audit Committee is chaired by an independent director. The Audit Committee met 4 times during the FinancialYear 2019-20 to discuss inter alia the Auditors’ Report, adequacy of internal control / internal audit system andfunctions, to review the unaudited quarterly financial results etc. on 09.05.2019, 03.08.2019, 13.11.2019 and13.02.2020. The number of meetings of Audit Committee and attendance of members at these meetings during theyear are stated as under:

Sr. Name of the Director Meeting held Attendence at Position held inNo. during tenure the Meeting committee

1. Shri S B Dangayach 4 3 Chairman2. Shri Milind Torawane, IAS 2 2 Member3. Shri Nitin Shukla 4 2 Member4. Prof Shailesh Gandhi 4 1 Member

Mr. Joel Evans, Company Secretary, acts as the Secretary to the Audit Committee.

The Chairman of the Audit Committee was present at 56th Annual General Meeting of the Company held on 30thSeptember, 2019, to answer shareholders queries.

Terms of Reference of the Audit CommitteeThe terms of reference of Audit Committee is governed by the provisions of Section 177 of the Companies Act,2013 and rules framed thereunder and as per the Listing Regulations. The terms of reference, inter alia, includeoversight of the Company’s financial reporting process, review of annual financial statements, quarterly financialstatements, internal control systems, internal audit reports etc.

Nomination and Remuneration CommitteeAs per the provision of Section 178 (1) of The Companies Act, 2013 read with Provisions of Listing Regulations, thecompany has constituted Nomination and Remuneration Committee comprising of following three Non-ExecutiveDirectors, out of which two are Independent Directors and the Chairman of the Committee is Independent Director.The Committee has the role prescribed to them as provided under the Companies Act, 2013 and Listing Regulations.The Company is a State Government Company. Its directors do not draw any remuneration from the company exceptpayment of sitting fees and out of pocket expenses. Moreover, as per the policy of the Company, the salary and wagesof Senior Management and Key Managerial Personnel as well as that of Executive Supervisors and Workmen arefixed in line with the pay structure of the Government of Gujarat, duly approved by the Government of Gujarat.

The Nomination and Remuneration Committee of the Company comprises of following three non-executivedirectors out of which two are Independent Directors as on 31st March, 2020.1. Shri S B Dangayach Non-Executive Director/Independent Director (Chairman)2. Shri Milind Torawane, IAS Non-Executive Director Promoter/ Director (Member)3. Shri Nitin Shukla Non-Executive Director/Independent Director (Member)

Mr. Joel Evans, Company Secretary of the Company acts as the Secretary to the Nomination and RemunerationCommittee.

The terms of reference of the Nomination and Remuneration Committee have been formulated in line with therequirement of Section 178 of the Companies Act, 2013 and rules framed thereunder and as per ListingRegulations.


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The Details of Sitting Fees paid to the Directors for the year 2019-20 are mentioned hereunder along withtheir shareholding in the Company:Sr. No. Name of the Director Remuneration paid ( ) Sitting fees ( ) No. of Shares held

1 Shri Manoj Kumar Das, IAS * - 15000 NIL2 Shri Arunkumar Solanki, IAS - - NIL3 Shri Milind Shivaram Torawane, IAS* - 15000 NIL4 Smt. Sonal Mishra, IAS* - 15000 NIL5 Smt. Gauri Kumar, IAS Retd - 22500 NIL6 Shri S. B. Dangayach - 15000 NIL7 Shri Nitin Shukla - 15000 NIL8 Prof. Shailesh Gandhi - 7500 NIL

*Paid into Government Treasury

During the period under review, no meeting of the Nomination and Remuneration Committee was held.

Risk Management CommitteeAs provided under Listing Regulations, the company has constituted Risk Management Committee consisting of thefollowing Directors as the members as on 31st March, 2020:

Sr. No. Name of the Director Category1 Shri Arunkumar Solanki, IAS Chairman2 Shri Nitin Shukla Member3 Shri S.B. Dangayach Member

The role of Risk Management Committee is as provided under the said Listing Regulations.

Stakeholders Relationship CommitteeThe Company has constituted a “Stakeholders Relationship Committee”. This Committee looks into the redressal ofshareholders’/investors’ grievances, if any, regarding transfer / transmission / demat of shares, loss of ShareCertificates, Non-receipt of Annual Report, Dividend Warrants, Re-payment of principal and/or interest on fixeddeposits etc. During the year, complaints received from the shareholders have been resolved to date. The Companyhas no transfer pending at the close of the Financial Year.

The composition of the Committee during the year under review was as under as on 31st March, 2020:

Sr. No. Name of the Director Category1. Shri S.B. Dangayach Chairman2. Shri Arunkumar Solanki, IAS Member3. Shri Milind Shivaram Torawane, IAS Member

The details of the complaints received, solved, pending, etc., are as under:

Period Complaints Received Complaints Redressed01-04-2019 to 30-06-2019 0 001-07-2019 to 30-09-2019 1 101-10-2019 to 31-12-2019 1 101-01-2020 to 31-03-2020 0 0Total 2 2

The Company Secretary acts as the Secretary to the “Stakeholders Relationship Committee”

Compliance Officer:Mr. Joel Evans, Company Secretary, who is the Compliance Officer, can be contacted at:-Gujarat Mineral Development Corporation LimitedReg. Office:Khanij Bhavan, 132 Feet Ring Road, Nr. University Ground, Vastrapur, Ahmedabad 380 052.Tel: +91 27913200 Fax: +91 27911151 Email: [email protected]


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The Company has entered into a comprehensive agreement with M/s. MCS STA Limited, Ahmedabad to act as theShare Transfer Agent and the Depository Registrar (STA & DR) to attend to transfers/ transmission requests and co-ordinate with the Depositories and Depository Participants.

As per the Listing Regulation, the Company Secretary is appointed as the Compliance Officer and the activities ofthe Share Transfer Agent are under the supervision of the Compliance Officer.

Corporate Social Responsibility Committee (CSR Committee)The Corporate Social Responsibility Committee (CSR Committee) of the Company comprises of the following threeexecutive/non-executive directors out of which one Director is Independent Director, as on 31st March, 2020.

1. Shri Arunkumar Solanki, IAS Executive Director / Chairman2. Shri Milind Torawane, IAS Non-Executive Director/Promoter Director3. Shri S.B. Dangayach Non-Executive Director/Independent Director

The Committee is primarily responsible for formulating and recommending to the Board of Directors a CorporateSocial Responsibility (CSR) Policy and monitoring the same from time to time, amount of expenditure to be incurredon the activities pertaining to CSR and monitoring CSR activities.

The Company has formulated CSR Policy and the same is available at the website of the Company at https://www.gmdcltd.com/en/corporate-policies-gmdc

General Body Meetings(a) The last three Annual General Meetings of the Company were held at Ahmedabad at the time, dates and

venue mentioned below :Year Date Time Venue

2016-17 29.09.2017 11.00 AM Registered Office of the Company, at Khanij Bhavan,2017-18 29.09.2018 11:00 AM 132 Feet Ring Road, Near University Ground,2018-19 30.09.2019 11:00 AM Vastrapur, Ahmedabad – 380 052

No Extra Ordinary General Meeting was held during any of the last three financial years.

(b) No special resolution was put through postal ballot in the previous financial year.

(c) No special resolution proposed to be put though postal ballot this year.

Disclosures(a) The Company has no materially significant related party transactions i.e. transactions that may have potential

conflicts with the interest of the Company at large with its promoters, the Directors or the management, theirsubsidiaries or relatives etc.

For details, about other related parties transactions, see Note No.2.44.02 of Notes to the Financial Statements..

Related Party Transaction Policy has been formulated in order to regulate the transactions between Companyand Related Parties. The Related Party Transaction Policy is available at the website of the Company at https://www.gmdcltd.com/en/corporate-policies-gmdc.

(b) In the preparation of financial statements, there is no treatment different from that prescribed in the accountingstandards notified by the Companies (Indian Accounting Standards) Rules,2015

(c) The company has integrated approach to manage the risk inherent in the various aspects of business.

(d) Pursuant to the provisions of Regulation 17 (8) of the Listing Regulations, the Managing Director and the ChiefFinancial Officer have issued a certificate to the Board of Directors for the financial year ended on 31st March,2020.

(e) The Company is in preparation of financial statements has followed the treatment laid down in the Accountingstandards notif ied by the Companies(Indian Accounting Standards) Rules,2015. There are no auditqualifications in the Company’s financial statements for the period under review.

(f) Total fees for all the services rendered by the statutory auditor is given below:


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Name of the Statutory Auditor (M/s Soni Jhawar & Co) Total AmountServices for which payment made ( in Lakh)Statutory Audit 8.13Other Services including reimbursement of expenses 3.44Total 11.57

Certification from Company Secretary in PracticeMr. Arvind D Gaudana of M/s Gaudana and Gaudana, Practicing Company Secretaries, has issued a certificate asrequired under the Listing Regulations, confirming that none of the directors on the Board of the Company has beendebarred or disqualified from being appointed or continuing as director of companies by SEBI / Ministry of CorporateAffairs or any such statutory authority. The certificate is enclosed with section as “Annexure D”.

Means of CommunicationThe Company communicates with the shareholders at large through its Annual Report, publication of quarterlyfinancial results in newspapers and through its website. Further, the financial results of the Company as published inthe Financial Daily newspapers are also displayed in the Company’s website www.gmdcltd.com for the informationof shareholders and investors.

Type of Result Date on which Daily News Paper Daily News Paperpublished (English) (Gujarati)

Quarterly of 30th June, 2019 04.08.2019 Financial Express Financial ExpressQuarterly of 30th September, 2019 14.11.2019 Mint Financial ExpressQuarterly of 31st December, 2019 14.02.2020 Business Line Financial ExpressAnnual as on 31st March, 2020 24.06.2020 Financial Express Financial Express

The Annual Report, Quarterly Results, Quarterly Corporate Governance Report and Shareholding Pattern of theCompany are filed with the Stock Exchanges within the prescribed time.

Disclosure under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal)Act, 2013:The Company is committed to ensuring that all employees work in an environment that not only promotes diversityand equality but also mutual trust, equal opportunity and respect for human rights. The Company is also committed toprovide a work environment that ensures every woman employee is treated with dignity, respect and afforded equaltreatment.

The Company has formulated a Policy on prevention of Sexual Harassment in accordance with the provisions of theSexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules madethereunder which is aimed at providing every woman at the workplace a safe, secure and dignified workenvironment.

The Company has constituted Internal Complaints Committee to redress the complaint(s).

The Details of the complaintsNo. of Complaints filed during the financial year NILNo. of Complaints disposed of during the financial year NILNo. of Complaints pending as at the end of the financial year NIL

General Shareholder Information: AGM Date, day, time and Mode

Date :- 31st December, 2020Day :- ThursdayTime :- 12.30 PMMode :- Through Video

Conferencing (“VC”) /Other Audio Visual Means (“OAVM”)


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Financial Calendar (Tentative)Period Tentative Schedule1st quarter results ending 30th June Within 45 days of end of the quarter2nd quarter results ending 30th September Within 45 days of end of the quarter3rd quarter results ending 31st December Within 45 days of end of the quarter4th quarter results ending 31st March Within 60 days of the end of the year in case of Audited Results.

Date of ‘Book Closure’The Register-of-Members and the Share Transfer Register of the Company would remain closed from Thursday, 24thDecember, 2020 to Thursday, 31st December, 2020 (both days inclusive) for the purpose of ascertaining the list ofshareholders entitled for the dividend, if any, declared at the ensuing Annual General Meeting and approved by theshareholders.

Dividend payment date and Dividend Distribution PolicyThe dividend if declared at the Annual General Meeting and approved by the shareholders would be paid to theShareholders within 30 days from the date of declaration. The company has put in place dividend distribution policywhich is available at https://www.gmdcltd.com/en/corporate-policies-gmdc.

Listing of SharesThe equity shares of the company are listed on the Bombay Stock Exchange Ltd. and National Stock Exchange ofIndia Ltd. The Listing Fee has been paid to NSE and BSE up to the year 2020-21. The Company has also paidcustodial fees to National Securities Depository Ltd., and Central Depository Services (India) Ltd., for the year2020-21.

Name of the Stock Exchange Stock CodeNational Stock Exchange of India Ltd., GMDCLTDThe Stock Exchange, Mumbai 532181

Stock Market DataThe high, low market price during each month in last financial year as quoted in the National Stock Exchange wasas under:

Month National Stock Exchange CNX NIFTYHigh ( ) Low ( ) Closing* ( ) Closing*

April, 2019 74.40 72.80 73.65 11748.15May, 2019 83.05 79.00 80.35 11922.80June, 2019 76.70 74.70 75.10 11788.85July, 2019 72.20 69.45 71.50 11118.00August, 2019 64.60 63.20 64.05 11023.25September, 2019 63.25 60.75 61.25 11474.45October, 2019 64.90 63.10 63.45 11877.45November, 2019 58.10 56.60 57.85 12056.05December, 2019 63.50 61.10 61.55 12168.45January, 2020 62.90 60.90 61.20 11962.10February, 2020 52.00 50.10 51.00 11201.75March, 2020 32.35 30.25 31.55 8597.75

*at the end of the month

Registrar and Share Transfer Agent (For physical & Demat)M/s. MCS STA Limited101, Shatdal Complex, 1st floor, Opp: Bata Show Room,Ashram Road, Ahmedabad – 380 009Tel. 26580461-62-63 Fax – 079 26581296Email: [email protected]


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Share Transfer SystemIn compliance with Listing Regulations, the Company has also delegated the powers of share transfer to thecompany’s Registrar and Share Transfer Agent. All the transfers received are processed by the Company’s ShareTransfer Agent and a fortnightly report is submitted to the company which is periodically placed before the Board ofDirectors of the Company.

A qualified Practicing Company Secretary carried out a Reconciliation of Share Capital Audit to reconcile thetotal admitted capital with NSDL and CDSL and the total issued and listed capital. The audit confirms thatthe total issued/paid up capital is in agreement with the aggregate of the total number of shares in physicalform and the total number of shares in dematerialized form (held with NSDL and CDSL). Pursuant toRegulation 40(9) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 certificates,on half-yearly basis have been issued by a Company Secretary-in-Practice for due compliance of sharetransfer formalities by the Company.

Report on Corporate Governance:As per Regulation 27(2) of SEBI Listing Regulations, 2015, the Company regularly submits to the Stock Exchanges,within the prescribed period, quarterly reports on Corporate Governance.

Shareholding Pattern:The pattern of equity share holding of the Company as on 31st March, 2020 was as under:

Category No. of Shares % to totalGovt. of Gujarat 23,53,20,000 74.00Mutual Funds 2,37,94,111 7.48Financial Institutions/Banks 2309 -Insurance Companies, Foreign Institutional Investors, Bodies Corporate 1,97,44,412 6.21Individuals, HUFs, NRIs, Trusts 3,91,39,168 12.31 Total 31,80,00,000 100.00

Distribution of Shareholding as on 31st March, 2020Shareholding of nominal value of Shares Shareholders No. of Shares

Number of Number of % to totalShareholders Shares held

(1) (2) (3) (4)Upto - 500 58954 7847275 2.47501 - 1000 5259 4333550 1.361001 - 2000 2716 4235162 1.332001 - 3000 962 2488927 0.783001 - 4000 470 1701110 0.544001 - 5000 392 1852086 0.585001 - 10000 610 4519518 1.4210001 - 50000 433 8605200 2.7150001 - 100000 47 3276241 1.03100001 and above 46 279140931 87.78Total 69889 318000000 100.00

The Company has filed Shareholding Pattern with NSE and BSE on a Quarterly Basis within prescribed time as perRegulation 31 of Listing Regulations.

Dematerialization of SharesConsequent upon the compulsory demat of the equity shares of the Company as notified by SEBI, as on 31.03.2020about 99.85% of the equity capital offered to the public is in Demat Form. The equity shares of the promoters arealso in Demat Form.


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Particulars No. of Equity Shares % to Share CapitalNSDL 66411193 20.88CDSL 251097207 78.96Physical (Public) 491600 0.16TOTAL 318000000 100.00

Outstanding GDRs/ADRs/Warrants or any convertible instruments, conversion date and likely impact on equity:The Company has not issued any of these instruments.

PLANT LOCATIONS:Lignite Projects Panandhro (Dist. Kutch)

Umarsar (Dist.Kutch)Rajpardi (Dist. Bharuch)Mata-no-Madh (Dist. Kutch)Tadkeshwar (Dist. Surat)Bhavnagar (Dist. Bhavnagar)

Fluorspar Project Kadipani (Dist. Vadodara)Multi Metal Project Ambaji (Dist. Banaskantha)Bauxite Projects Gadhsisa (Dist. Kutch)

Mevasa (Dist. Devbhoomi Dwarka)Manganese Project Shivrajpur (Dist. Panchmahal)Thermal Power Project Nani Chher (Dist. Kutch)Wind Power Projects Maliya (Dist. Rajkot)

Gorsar (Dist. Porbandar)Jodiya (Dist. Jamnagar)Bada (Dist. Kutch)Varvala (Dist. Jamnagar)Bhanvad (Dist. Jamnagar)Rojmal (Dist. Bhavnagar, Amreli and Rajkot)

Solar Project Panandhro (Dist. Kutch)

Address for Correspondence:Shareholders correspondence may be addressed to the Company Secretary and sent to the Registered Office ofthe Company at the following address:

Gujarat Mineral Development Corporation Limited‘Khanij Bhavan’, 132 Feet Ring Road, Near University Ground, Vastrapur, Ahmedabad – 380 052Telephone : (079) 2791 3501 / 3200E-mail : [email protected] : www.gmdcltd.com

CEO / CFO CertificateChief Executive Officer and Chief Financial Officer have issued necessary certificate pursuant to the provisions ofListing Regulations and the same is annexed at “Annexure B” and forms part of this Annual Report.

Compliance Certificate on Corporate GovernanceA certificate from Mr. Arvind D Gaudana of M/s Gaudana and Gaudana, Practicing Company Secretaries regarding thecompliance of conditions of Corporate Governance by the Company for the year ended on March 31, 2020 asstipulated in Regulation 17 to 27 and Clause (b) to (i) of Regulation 46(2) and Para C and D of Schedule V of the SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”) as amended fromtime to time is annexed at “Annexure C” to the Corporate Governance Report and forms part of the Annual Report.

Vigil Mechanism / Whistle Blower PolicyThe Company has a Vigil Mechanism/Whistle Blower Policy to deal with instances of fraud and mismanagement ifany. The Company being the Government Company is already covered under the government vigil mechanism. Thecompany ensures that strict confidentially is maintained while dealing with the concerned. It also ensures that nodiscrimination is meted out to any person for genially raised concern. The Vigil Mechanism is administered throughthe HR Department of the company. The policy also has a provision of protection against victimization againstWhistle Blower and the policy also provide for direct access to the Chairman of the Audit Committee. The policy isavailable on the website of the Company, www.gmdcltd.com.


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Subsidiary CompaniesThe Company does not have any material subsidiary whose net worth exceeds 20% of the consolidated net worth.In Holding Company immediately preceding accounting year or has generated 20% of the consolidated income ofthe company during the previous financial year. Accordingly a policy on material subsidiary has not been formulated.

ANNEXURE ADeclaration regarding compliance of code of conduct by Directors and Senior Management Personnel ofthe Company.The company has adopted Code of Conduct for Directors and Senior Management Personnel as per the provisionsof Listing Regulations relating to Corporate Governance.

The Directors and Senior Management have affirmed compliance with the said Code during the financial year 2019-20.

For Gujarat Mineral Development Corporation Ltd.Arunkumar Solanki, IAS

Date : 23rd June, 2020 Managing DirectorPlace : Ahmedabad

ANNEXURE BCERTIFICATE BY CEO AND CFO ON THE FINANCIAL STATEMENTS FOR THE YEAR 2019-20

A. We have reviewed the financial statements and the cash flow statement for the year 2019-20 and that to thebest of our knowledge and belief:(1) these statements do not contain any materially untrue statement or omit any material fact or contain

statements that might be misleading;

(2) these statements together present a true and fair view of the company’s affairs and are in compliancewith existing accounting standards, applicable laws and regulations.

B. There are, to the best of our knowledge and belief, no transactions entered into by the company during the yearwhich are fraudulent, illegal or volatile of the company’s code of conduct.

C. We accept responsibility for establishing and maintaining internal controls for financial reporting and that we haveevaluated the effectiveness of internal control systems of the company pertaining to financial reporting and wehave disclosed to the auditors and the audit committee, deficiencies in the design or operation of such internalcontrols, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies.

D. We have indicated to the Auditors and the Audit Committee

(1) significant changes in internal control over financial reporting during the year;

(2) significant changes in accounting policies during the year and that the same have been disclosed in thenotes to the financial statements; and

(3) instances of significant fraud of which we have become aware and the involvement therein, if any, of themanagement or an employee having a significant role in the company’s internal control system overfinancial reporting.

L. Kulshrestha Arunkumar Solanki, IASChief General Manager & Managing DirectorChief Financial Officer


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ANNEXURE CCORPORATE GOVERNANCE COMPLIANCE CERTIFICATE

CIN: L14100GJ1963SGC001206 Nominal Capital:- 1,50,00,00,000/-Paid up Capital:- 63,60,00,000/-

To,The Members ofGUJARAT MINERAL DEVELOPMENT CORPORATION LIMITEDKhanij Bhavan, Near Gujarat University Ground,132 Ft Ring Road, Vastrapur, Ahmedabad,Gujarat -380052, India

We have examined the compliance of conditions of Corporate Governance by GUJARAT MINERALDEVELOPMENT CORPORATION LIMITED (‘the company’)along with relevant registers, records, forms, returnsand disclosures received from the Directors of Company for the year ended 31st March, 2020 as stipulated inregulations 17 to 27 and clauses (b) to (i) of sub-regulation (2) of regulation 46 and para C, D and E of Schedule Vof the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015(collectively referred to as ‘SEBI Listing Regulations, 2015’).

The compliance of conditions of Corporate Governance is the responsibility of the Company’s Management. Ourexamination was limited to a review of the procedures and implementation thereof, adopted by the Company forensuring the compliance of the conditions of the Corporate Governance as stipulated in the said SEBI ListingRegulations, 2015. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us and based on therepresentations made by the Directors and the Management of the Company, we certify that the Company hascomplied with the conditions of Corporate Governance as stipulated in the SEBI Listing Regulations, 2015 exceptthe Company had appointed the woman independent director with effect from 7th June, 2019.

We state that as at 31st March, 2020, no investor grievance was pending for a period of one month against theCompany as per the records maintained by the Company and presented to Stakeholders Relationship Committee.

We further state that such compliance is neither an assurance as to the future viability of the Company nor theefficiency or effectiveness with which the Management has conducted the affairs of the Company.

For Gaudana & Gaudana(Company Secretaries)

CS Arvind GaudanaSenior Partner

FCS No: 2838, C.P. No: 2183Place : AhmedabadDate : 03/11/2020 UDIN: F002838B001150545


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ANNEXURE DCERTIFICATE ON NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10) (i) of theSEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To,The Members ofGujarat Mineral Development Corporation Limited(CIN: L14100GJ1963SGC001206)Khanij Bhavan, Near Gujarat University Ground,132 Ft Ring Road, Vastrapur, Ahmedabad, Gujarat 380052.

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors ofGujarat Mineral Development Corporation Limited having CIN L14100GJ1963SGC001206 and havingregistered office at Khanij Bhavan, Near Gujarat University Ground, 132 Ft. Ring Road, Vastrapur,Ahmedabad, Gujarat 380052, India (hereinafter referred to as ‘the Company’), produced before us by theCompany for the purpose of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations, 2015.

In our opinion and to the best of our information and according to the verifications (including Directors IdentificationNumber(DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by theCompany & its officers, we hereby certify that none of the Directors on the Board of the Company as stated belowfor the Financial Year ending on 31st March, 2020 have been debarred or disqualified from being appointed orcontinuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs,or any such other Statutory Authority.

Sr. Name of Director Director Identification Date of AppointmentNo. Number (DIN) in Company

1 Shri Manoj Kumar Das 06530792 16/05/20172 Shri Arunkumar Mohanbhai Solanki 03571453 24/06/20163 Smt.Sonal Mishra 03461909 18/06/20154 Shri Milind Shivaram Torawane 03632394 01/10/20195 Shri Nitin Chandrashanker Shukla 00041433 14/10/20146 Shri Satyanarayan Banwarilal Dangayach 01572754 14/10/20147 Prof. Shailesh Gandhi 02685385 03/12/20158 Smt.Gauri Kumar 01585999 07/06/2019

Ensuring the eligibility of Directors for the appointment / continuity of every Director on the Board is the responsibilityof the management of the Company. Our responsibility is to express an opinion on these based on our verification.This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectivenesswith which the management has conducted the affairs of the Company.

For Gaudana & Gaudana(Company Secretaries)

CS Arvind GaudanaSenior Partner

FCS No: 2838, C.P. No: 2183Place : AhmedabadDate : 03/11/2020 UDIN: F002838B001149885


42

ANNEXURE VIIMANAGEMENT DISCUSSION AND ANALYSIS REPORT

Global Mining ScenarioThe World Bank’s Metals and Minerals Price Index fell 4.7 percent in the first quarter of 2020 (q/q) following twoconsecutive quarterly declines. The fall reflects a sharp slowdown in Global manufacturing activity due to theCOVID-19 pandemic, despite unprecedented stimulus measures to support demand. Rising supply disruptions forthe most of the metals have not offset demand losses. Metal prices are projected to fall by 13.2 percent in 2020 onexpectations of prolonged public health and economic crises. Risks to this outlook are tilted to the downside,including the possibility of a steeper collapse in Global Industrial demand and less effective policy stimulus.

Aluminum prices dropped 3.8 percent in the first quarter, the seventh consecutive quarterly decline. At end-March,prices fell to a four-year low below US$1,500/MT. The COVID-19 pandemic has affected Aluminum largely throughits impact on the automotive industry. Global car demand has weakened, and most automotive factories acrossChina, Europe, and the United States have temporarily shut down. Car production was down more than 30 percentin 2020, Q1, the steepest drop since the height of the Global financial crisis. Despite the weak demand, there werelimited cutbacks in Aluminum output in China—which accounts for more than half of Global Aluminum production.Production there rose by 2.4 percent year-on-year in the first two months of 2020. Aluminum prices are forecast todecline by 10.8 percent in 2020.

A positive turn in prices is likely to be triggered by a faster-than-expected containment of the pandemic and asharper economic rebound. Production and supply chain disruptions, which have had limited impact on metal pricesthus far, may provide support when recovery gets under way.(Source: A Commodity Market Outlook, April 2020)

Indian Economy & Mining Sector PerspectivePrior to COVID-19, Index of Industrial Production (IIP) rebounded from negative growth in Q3:2019-20 to 2.2 percent in January 2020, and 4.6 per cent in February 2020, the highest level observed since July 2019. The sharpestsupply shock was witnessed in April, the month of ‘lock-down’, with IIP declining by a record 55.5 per cent in April2020. The record contraction in April was more than three times as compared to a (-)18.3 per cent growth in March,with several firms reporting nil production.

Mining & quarrying activities, which account for 42.2 percent of primary goods sector, were exempt during the lock-down, thereby entailing a relatively lower negative contribution. Falling production of capital goods and infrastructure& construction goods (20 per cent contribution to de-growth) also indicated a slump in investment demand.(Source: Ministry of Finance, Department of Economic Affairs, Economic Division, Monthly Economic Report, May 2020)

FDI up to 100 per cent is allowed in exploration, mining, minerals processing metallurgy and exploration of metaland non-metal ores under the automatic route for all non-fuel and non-atomic minerals including diamonds andprecious stones. During April 2000–March 2020, FDI inflow in metallurgical industries stood at US$ 13,401.78million. During the same period, FDI inflow in Mining, Diamond & Gold ornaments and Coal production sectorsstood at US$ 2,731.07 million, US$ 1,177.01 million and US$ 27.73 million, respectively.(Source: Metal and Mining Report, June 2020, Indian Brand Equity Foundation)

The provisional estimates of Gross Value Added (at 2011-12 prices) accrued from mining and quarrying sector for2018-19 is at 370,564 crore. Similarly, the provisional estimates of GVA (at current prices) for 2018-19 is at

410,151 crore. The mining and quarrying sector’s contribution (at current price) to GVA accounted for about 2.38%for the year 2018-19.(Source: Ministry of Mines Annual Report 2018-19 )

India is the third largest producer of coal. Coal production in the country stood at 729.10 million MT in FY 2019-20. India ranks fourth in terms of iron ore production globally. Production of iron ore in FY 2019-20 stood at 205.70Million MT. India has around eight per cent of the world’s iron ore deposits. India became the world’s secondlargest crude steel producer in 2019 with production at 111.2 Million MT. Production of Aluminium stood at 3.65Million MT in FY 2019-20. Aluminium export from the country reached US$ 18.24 million MT in FY 2019-20 (tillJanuary 2020).(Source: Metal and Mining Report, June 2020, Indian Brand Equity Foundation)


43

Geological Survey of India (GSI) has augmented coal resource in different states and the total resource of coal ofthe country stands at 3,19,020.33 million MT and that of Lignite stands at 45,663.58 million MT as on 01.04.2018.(Source: Ministry of Mines Annual Report 2018-19)

According to Ministry of Mines, India has the 7th largest Bauxite reserves which was around 2,908.85 million MT inFY 2018-19. India was the fourth largest producer of aluminium in the world with a share of around 5.33 per cent inGlobal aluminium output. Aluminum production increased to 2.52 million kgs between April 2018-Feb 2019. Over thecourse of last four years, India’s aluminium production capacity has increased to 4.1 MMTPA, driven by investmentsworth Rs 1.2 lakh crore (US$ 18.54 billion).(Source: Metal and Mining Report, June, 2020, Indian Brand Equity Foundation)

India is the world’s second largest cement market, both in production and consumption. India’s overall cementproduction capacity was nearly 502 million MT in FY 2018-19 and consumption increased 5 per cent during thisperiod due to high growth in housing segment and higher infrastructure spending. India’s cement productioncapacity is expected to reach 550 million MT by 2025. India is the second largest cement producer in the world andaccounted for over 8 per cent of the Global installed capacity as of 2019. India's cement production is expected torise between 5-7 per cent in FY 2019-20, backed by demands in roads, urban infrastructure and commercial realestate. Cement production reached 334.48 million MT in FY 2019-20. India’s export of cement, clinker andasbestos increased at a CAGR of 6.44 percent between FY 2015-16 to FY 2018-19. In FY 2019-20 (till February2020), it reached US$ 1.83 billion. Sale of cement in India stood at 58,407 crore (US$ 8.29 billion) in FY20.(Source: Sectoral Report on Cement, June 2020, Indian Brand Equity Foundation)

The power sector accounts for a large share of the consumption of coal in the country. Installed capacity haveincreased steadily over the years, posting a CAGR of 7.19 per cent in FY 2015-16 to FY 2019-20. With electricityproduction of 1,252.61 billion units (BU) in FY 2019-20, the country witnessed growth of around 0.26 percent overthe previous fiscal year. Energy generation from conventional sources stood at 97.70 billion units (BU) in March2020. Between 2017 and 2022, conventional sources are expected to witness capacity addition of 58.38 GW(gigawatt). Around 81 percent of the total power generation was done through thermal power plants, while hydroand nuclear plants contributed 15 percent and 4 percent respectively in FY 2019-20.(Source: Metal and Mining Report, June 2020, Indian Brand Equity Foundation)

Industry Structure and DevelopmentThe country is endowed with huge resources of many metallic and non-metallic minerals. Mining sector is animportant segment of the Indian economy. Since independence, there has been a pronounced growth in the mineralproduction both in terms of quantity and value. India produces as many as 95 minerals, which includes 4 fuel, 10metallic, 23 non-metallic, 3 atomic and 55 minor minerals (including building stones and other materials).(Source: Ministry of Mines Annual Report 2018-19)

India metals and mining sector has witnessed strong growth over the past few years. GVA from mining andquarrying reached US$ 56.02 billion in FY20. Mineral production in India also surged, achieving a CAGR of 6.40 percent between FY 2009-10 to FY 2018-19 and reached US$ 17.74 billion in FY 2018-19. The number of operativemines (excluding atomic minerals, petroleum (crude), natural gas (utilized) and minor minerals) in India reached1,405 in FY 2018-19 from 1,430 in FY 2017-18. Production of as many as 95 minerals is undertaken in India,including 4 fuel minerals, 10 metallic minerals, 23 non-metallic minerals, 3 atomic minerals and 55 minor minerals(including building and other materials). Odisha was the leading producer of minerals with production worth US$3.94 billion in FY 2018-19, followed by Rajasthan, Chhattisgarh, Karnataka and Jharkhand with production ofminerals worth US$ 1.65 billion, US$ 1.37 billion, US$ 1.17 billion and US$ 0.33 billion, respectively. Production ofmetallic minerals in the country increased from US$ 4.81 billion in FY 2015-16 to US$ 8.73 billion in FY 2018-19.During the same period, production of non-metallic minerals increased from US$ 1.08 billion to US$ 1.29 billion.(Source: Metal and Mining Report, June 2020, Indian Brand Equity Foundation)

Favourable Policies are Supporting the Sector Growth

• Aims to open a new era in Indian coal & mining sector, specially to promote ‘ease of doing business’.• It will boost coal production and will reduce dependency on import.• To bring more transparency, better regulation and enforcement, balanced socio-economic growth along

with sustainable mining practices.• Proposed to grant ‘Industry’ status to mining with an objective of boosting financing of private sector.• Supported Merger & Acquisition (M&A) of mining players.


44

• FDI up to 100 percent is permitted under the automatic route to explore and exploit all non-fuel and non-atomic minerals and process all metals as well as for metallurgy.

• FDI cap in the mining and exploration of metal and non-metal ores have been increased to 100 percentunder the automatic route.

• In March 2018, the Government allowed 100 percent FDI in coal mining.• Government of India is encouraging private ownership for steel operations and other high priority Industry.• Government of India significantly reduced the duty payable on finished steel products and has streamlined

the associated approval process.• Focus on upgradation of skill sets to foster adaptation of new state of art technology.• Increase the capacity and quality of training infrastructure and trainers to address human resource needs. (Source: Metal and Mining Report, June 2020, Indian Brand Equity Foundation)

Growth Drivers for Mining Sector• India is witnessing a sustained growth in the infrastructure build up. The construction Industry has

witnessed a strong growth wave powered by large spends on housing, road, ports, water supply, railtransport and airport development.

• In March 2020, NHAI accomplished the highest ever highway construction of 3,979 km of nationalhighways in FY 2019-20.

• Freight earnings in FY 2019-20 (till February 2020) stood at 119,216.11 crore (US$ 17.06 billion), while itsgross revenue stood at 183,092.74 crore (US$ 26.20 billion) during the same period.

• Cargo traffic handled stood at 707.4 million MT in FY 2019-20.• Electricity production reached 1,252.61 billion unit (BU) in India in FY 2019-20.• It has been estimated that India is going to require US$ 4.5 trillion of investment by 2040 for infrastructure

development.• Government introduced National Infrastructure Pipeline with plans to invest 100 lakh crore (US$ 1.43

trillion) over the next five years.• Gross Value Added (GVA) in the construction sector grew almost 1.3 percent y-o-y to 10.33 trillion (US$

146.58 billion) in FY 2019-20.• Iron and steel being a core component of the real estate sector, demand for these metals is set to continue

given strong growth expectations from residential and commercial building industry.(Source: Metal and Mining Report, June 2020, Indian Brand Equity Foundation)

Performance of GMDC (FY 2019-20)A. Product-wise Performance

a. Lignite:Lignite mining continues to be the main operation of the company. GMDC currently has 5 operational Lignitemines. The mines are located in Kutch, South Gujarat and Bhavnagar region. Out of total Profit Before Tax(PBT) of the company about 70% is from Lignite Mining Operations.

GMDC’s Five active Lignite mines together produced 69.55 lakh Metric Tonnes of Lignite during the FY 2019-20. GMDC is the largest merchant seller of Lignite in the country.

Lignite sale of GMDC has decreased by nearly 24.32% in FY 2019-20 compared to FY 2018-19.

Lignite Sales for the FY 2018-19 & 2019-20

b. BauxiteOther than Lignite, GMDC is also operating Bauxite mines in Gujarat. The operations are located in the districts

Fig.

are

in la

kh M

T 353025201510

50

Q1 Q2 Q3 Q4

2018-19 31.08 13.24 21.04 26.54

2019-20 22.91 11.39 15.88 19.37


45

of Kutch as well as Devbhoomi Dwarka. The Bauxite deposits of Gujarat are clustered deposits with numerouspocket deposits present in near-by vicinity. GMDC is currently mining nine Bauxite deposits, of which eight are inKutch and one is in Devbhoomi Dwarka. In FY 2019-20, GMDC has produced 3.76 lakh metric tonnes Bauxitefrom its operating mines (Gadhsisa Group of Bauxite Mines) in Dist. Kutch and has produced 0.742 lakh metrictonnes Bauxite from its Mevasa Bauxite Mines in Dist. Devbhoomi Dwarka. GMDC’s production capacity ofBauxite is likely to be stable in coming years. GMDC envisages to cater the needs of major value addition plantsof mineral in the state.

Bauxite Production for the FY 2018-19 & 2019-20

c. PowerGMDC Power Division consists of Akrimota Thermal Power Plant, Wind Power Plants and Solar Power Plant. Atotal 1164.98 Millions Units of power was produced in the FY 2019-20.

Akrimota Thermal Power Plant (ATPS): The Generation as well as PLF of ATPS for FY 2019-20 was 740.17Millions Units and 33.71% respectively.

Wind Power: GMDC consists of 200.9 MW Capacity of Wind Power projects and are situated at differentlocations in Gujarat. The PLF of wind projects reported 23.75% in the FY 2019-20 with total Generation of419.15 Million Units.

Solar Power: GMDC have 5 MW Solar Power Project is situated at Panandhro Lignite Project. The solar powergenerated 5.66 Million Unit Power with PLF of 12.89%.

d. Exploration ActivitiesExploration activities are kept ongoing in upcoming project area as well as unexplored area of existing mines, if any.

To establish behavior of mineral deposit along with quality & quantity of the ore, GMDC has initiated latestmineral exploration practices by study of Satellite Imagery and GIS Technology using latest computer softwareas per requirement & feasibility. Geological Mapping & Geo – physical surveys, Pitting and trenching as well asConventional Mineral Exploration by drilling for Lignite, Bauxite, Manganese and other associated mineraldeposits are also carried out followed by mineral analysis and preparation of exploration report as per therequirement of Ministry of Coal & Ministry of Mines.

For establishing additional Bauxite bearing areas for stage – II exploration, geological mapping with the help ofsatellite images & GIS technology was used over possible Bauxite & laterite bearing areas in Kutch.

B. Financial PerformanceThe company’s Net Profit After Tax has improved from 138.69 Crore to 202.68 Crore over the past year. Totalmarket capitalization of the company stands out at 1003.29 Crore as on 31st March, 2020.

( in Lakh)Particulars 2017-18 2018-19 2019-20Turnover 2,06,996 1,87,968 1,52,095Profit before Depreciation, Tax & Exceptional Items 54,784 70,099 35,258PBT 55,692 60,485* 26,100PAT 43,460 13,869 20,268Dividend (%) 175 100 100

(*before exceptional item)

543210Fi

g.ar

e in

lakh

MT

Production Sales

2018-19 4.63 1.71

2019-20 4.50 4.69


46

The details of significant changes in key financial ratios, along with detailed explanation thereto are givenhereunder:-Sr. Name of Financial Year Change % Explanation for significant change inNo. Accounting Ratio Accounting Ratios

2019-20 2018-191 Debtors Turnover 10.48 14.53 -27.87 On account of reduction of Sales of 19%

Ratio without corresponding reduction in TradeReceivables.

2 Inventory Turnover 15.74 22.04 -28.58 On account of reduction of Sales of 19%Ratio without corresponding reduction in Inventories.

3 Current Ratio 5.37 6.06 -11.39 No Significant change.4 Operating Profit 17.16% 32.18% -46.67 On account of reduction of Sales of lignite by

Margin 24.32% coupled with increase in strippingratio & also payment to employees under VRS.

5 Net Profit Margin 13.33% 7.38% 80.49 On account of reduction in Income tax liabilitydue to reduction in Operating Profit Margin of46.67% in the year 2019-20 and also onaccount of increase of Income tax liability inthe year 2018-19 due to disallowance of lossof 29,765 Lakh on investment in BhavnagarEnergy Company Limited (BECL). which hasbeen shown as exceptional i tem in thestatement of Profit and Loss also.

Opportunities and Threats for GMDC:

Opportunities• As six mining leases are reserved by Central Government to GMDC, it will boost the Lignite Production which

will help in increasing revenue of GMDC.• There are large amount of reserves of Limestone at our upcoming Lakhpat Punrajpur Mining, Panandhro

Extension & Bharkandam projects. GMDC is approaching various cement companies across India for settingup of Cement Plant where GMDC will be a long term Limestone supplier.

• As the market of overburden minerals like Silica Sand, Ball Clay & Bentonite is increasing, entering into thebeneficiation industry of these overburden minerals will have a larger scope in terms of revenue, customer baseand market share. GMDC is planning to enter into this beneficiation Industries by the way of long term suppliesof respective minerals.

• Joint Detailed Exploration of Manganese bearing area in Dist. Panchmahal & Baroda to be carried out with M/sMOIL Ltd. for further development of a new business prospects.

• Exploring new business opportunity for Rare Earth Minerals at Ambadungar, Kwant Dist. Chhota Udepur jointlywith M/s IREL & M/s AMD

Threats• Imported Coal• Shifting technology from Coal/Lignite to alternate fuels like Natural Gas, Furnace Oil, etc• Land acquisition• Covid – 19 Pandemic

OutlookGMDC’s measured drive is outlined by extension of activities on three facades, namely, venturing into explorationactivities; increasing the geographical reach within Gujarat, and diversifying operations in sectors such as renewablepower generation and other minerals. The future outlook of GMDC may include the following:• To identify and reserve new Lignite and Bauxite leases within Gujarat and Coal Blocks outside Gujarat• To establish itself as a nodal agency for exploration in scientific manner within Gujarat as well as India


47

• To venture into renewable power generation options in its mined out area as reclamation of exhausted projectsneed to be carried out

• To promote training and development in the mining sector to cater the need of skilled manpower in the sector• To cater Limestone to the Cement Plants in Kutch from our upcoming mines• To explore new business opportunities for Manganese in Dist. Panchmahal & Baroda jointly with M/s MOIL Ltd.• To explore new business opportunities for Rare Earth Minerals in Dist. Chhoda Udepur jointly with M/s IREL &

M/s AMD

Risks and ConcernsVarious activities undertaken to achieve the goals make the Company susceptible to various risks. It has to berecognized that risks are not merely the hazards to be avoided but in many cases offer opportunities which createvalue ultimately leading to enhancement of shareholders’ wealth and ensuring sustainability of operations.

Mining companies are required to ensure restoration of mined areas, and that some of the revenue/costs of themining go towards strengthening of environmental resources and ecosystem resilience in adjoining areas. GMDC isactively undertaking activities to ensure sustainable development. Increasing environmental concerns will lead tohigher costs. Land acquisition is also a challenge for GMDC as the new legal framework for land acquisition wouldresult in higher land cost.

Internal Control and its AdequacyGMDC has put in place all the necessary internal controls adequately. The company has an in-house Internal AuditDepartment and internal check procedures on the purchase of items such as stores, chemicals, machinery. Similarchecks and procedures are also devised for sale of goods. The company has appointed Internal Auditors for variousProjects and Head Office, who are required to submit periodical reports to the top management. The company alsoavails services of professional and Chartered Accountants for physical verification of assets.

e-GovernanceGMDC adopted e-Governance for its major business processes like Sales, Dispatch, Finance & Accounts, Materialmanagement using renowned ERP system (i.e Oracle EBS) & by facilitating stakeholders by Online Order Booking,Payment and Receipt by digital mode. All the project sites are interconnected with centralized system, resultant tohigh level of transparency which maintain faith of the various stakeholders of GMDC.

Human Resource and Industrial RelationsDuring the year under review there was no material development in human resource and Industrial relations. TheCompany had harmonious relations between management and the employees. As on 31st March, 2020, theCompany had 1227 employees.

Cautionary StatementStatements in the Management Discussion and Analysis, describing the Company’s objectives, projections andestimates, contain words or phrases such as will, aim, believe, expect, intend, estimate, plan, objective,contemplate, project and similar expressions or variations of such expressions, are forward-looking and progressivewithin the meaning of applicable laws and regulations. Actual results may vary materially from those expressed orimplied by the forward looking statements due to risks or uncertainties associated therewith depending uponeconomic conditions, Government policies and other incidental factors. Readers are cautioned not to place unduereliance on these forward looking statements.


48

ANNEXURE: VIIIANNUAL REPORT ON CSR ACTIVITIES FOR FINANCIAL YEAR 2019-20

1. Brief Outline:The company’s policy for Corporate Social Responsibility is to “Continually endeavor to improve quality of lifesignificantly in project affected areas and surrounding area by focusing on areas like livelihood promotions,basic infrastructure development, education, sports, health & sanitation, safe drinking water, employment byskill development and training, women empowerment, girl child education, incubation of future entrepreneurs,rural development projects and also caring for socially and economically backward groups.

Also for environment, ensuring environment sustainability, ecological balance, protection of flora and fauna,animal welfare, agro-forestry, conservation of natural resources and maintaining quality of soil, air and water.”

2. The Composition of the Corporate Social Responsibility Committee:i. Shri Arunkumar Solanki, IAS, MD - Chairmanii. Shri Milind Torwane, IAS, Director - Memberiii. Shri S B Dangayach, Independent Director - Member

3. Average Net Profit of the Company for last three Financial Years: 535.61 Crore

4. CSR Expenditure:(a) Contributed to GMDC Gramya Vikas Trust for CSR activities 1000.00(b) Incurred directly by GMDC towards various CSR activities 90.50

Taxe Empenditure on CSR 1090.50

5. Details of amount spent on CSR activities during the Financial Year 2019-20:i. Total amount to be spent for the Financial Year 2019-20 : 1071.22 Lakhii Amount unspent, if any: NILiii. Manner in which the amount spent during the financial year through GMDC Gramya Vikas Trust is

detailed below: ( in Lakh)

Sr.No.

CSR Project or ActivityIdentified

Sector in whichthe project cost is

covered

Amount outlay(Budget)project or

programs wise(for the year

2019-20)

Projects orprograms (1) Local

area or other (2)Specify the state

and district whereprojects or

programs wereundertaken

Amount spentDirect orthrough

implementingAgency

Amount spenton the

projects orprograms

subheads :(1) Direct

expenditureon projects orprograms (2)overheads

Cumulativeexpenditure

upto thereporting

period

1. Providing Water Cooler,Drinking Water facilitythrough our tanker tonear villages, Widening &Deepening of CheckDam, Borewell in villages& Vanmahotsav, WaterHarversting, Ecofriendlybeg distribut ion, DustSuppression Machine(Multifog), Distribution ofplants and tree guards,Gujarat Ecology Institutevadodara

WaterConservat ion &Environment

12.259ATPS, Panandhro,Bhavnagar, Bhatia,G a d h s h i s a ,Rajpardi, Umarsar,Mata No Madh

ThroughGMDC GramyaVikas Trust

47.068 797.044


49

Sr.No.



covered



2019-20)






implementingAgency

Amount spenton the

projects orprograms




upto thereporting

period

2.

3.

4.

Administrat ion andMaintenance of ShyamjiKrishna Varma MemorialTrust , Renovation ofTemple, MusicalInstruments & Soundsystems, Study andCultural Tours forstudents,Providing Note Booksand Sport equipment,Benches and otherinfrastructure, FinancialAssistance to GirlStudents and SmartClass Room, Notebookto Govt. village Schools,Educational Accessoriesto village, SponsoringEducat ion of GirlStudents in Lakhpat ,School Bus faci li ty,educational tour, SmartAnganwadi in 50 villages,Providing books forcompeti tive exams,financial assistance foremployment t rainingprograms and youthwelfareWater supply pipeconnection up to tank,Construction ofPanchayat CommunityHal l, Anganwadi,Underground Sewage,Furniture of GramPanchyat, Public Library,

Art Culture &History

Education(PromotingEducation SkillDevelopmentVocationalTraining)

Rural Infrastru-cture & RuralDevelopment

93.465

298.279

563.024

Shyamji KrishnaVarma MemorialSociety Mandvi,Rajpardi,Panandhro, MataNo Madh,Tadkeshwar,Umarsar, ATPS,GadhsisaPandhro, ATPS,Umarsar,Tadkeshwar, MataNo Madh, RajpardiBhavnagar, Bhatia,Gadhshisa,Kadipani,and Other proejcts

ATPS, Panandhro,Umarsar,Bhavnagar, Mata NoMadh , Rajpardi,Tadkeshwar




50.666

285.643

381.500

1545.343

10091.992

1224.333


50

Sr.No.



covered



2019-20)






implementingAgency

Amount spenton the

projects orprograms




upto thereporting

period

5.

6.

Bus Stand, LED StreetLights, SmashanGruh,Police Station, Road,Water Tank, RetainingWall, Garib Kalyan MelaMedicine & MobileDispensary Service tovil lages , FinancialAssistance to GujaratMedical researchinstitutes, Winter wearsto bl ind people,Equipments for differentlyabled people Toilets -Individual, FinancialAssistance for Lokfalo forconstruction for toiletsDonation to variousNGOs, governmentprograms and projects

TOTAL

Health andSanitation

Donation

247.785

9.210

1224.022

Panandhro, ATPS,Rajpardi,Gadhshisa, Mata NoMadh, Ahmedabad

Various districts ofGujarat State



355.022

20.180

*1140.079

1788.664

1188.670

16636.046

* Amount spent out of donations given by GMDC in current / earlier years

6. In case the company has failed to spend the two per cent of the average net profit of the last threefinancial years or any part thereof, the company shall provide the reasons for not sending the amount: NIL

7. A responsibility statement of the CSR Committee that the implementation and monitoring of CSRPolicy, is in compliance with CSR objectives and Policy of the company :

“The implementation and monitoring of Corporate Social Responsibility (CSR) Policy, is in compliance withCSR Objectives and Policy of the Company”.

(Arunkumar Solanki, IAS)Chairman – CSR Committee


51

CSR POLICYThe present CSR policy of GMDC is aligned to the Corporate Vision and Mission.Objectives:The basic objectives of CSR policy of GMDC are as under :• To improve overall quality of life significantly.• To create opportunities for livelihood.• To provide all necessary assistance for

• Training, Skill Development and Employment.• Sports• Girl Child Education• Women Empowerment and gender equality

• To assist for Rural Infrastructure development as may be permitted under law.• To create and maintain health & sanitation related facilities.• To promote and provide access to access to safe drinking water for population in surrounding areas to GMDC

faciltities.• Uplifting standard of living for Socially and Economically backward groups.• To ensure in every business activity about environmental sustainability, ecological balance, protection of flora

and fauna and animal welfare.• To encourage and assist in development of agro-forestry.• To actively encourage and exercise conservation of natural resources.Areas of focus• Water conservation and environment• Micro Irrigation and Agriculture• Health• Education• Employment Enhancement• Rural Infrastructure• Any other Rural Development Programmes


52

ANNEXURE IX

BUSINESS RESPONSIBILITY REPORT[See Regulation 34(2)(f) of SEBI (LODR) Regulations 2015]

SECTION A: GENERAL INFORMATION ABOUT THE COMPANY1. Corporate Identity Number (CIN) of the Company : L14100GJ1963SGC001206

2. Name of the Company : Gujarat Mineral Development Corporation Ltd.

3 Registered address : Khanij Bhavan, 132 Ft Ring Road,Nr. University Ground, Vastrapur, Ahmedabad 380052

4. Website : www.gmdcltd.com

5. E-mail id : [email protected]

6. Financial Year reported : 2019-20

7. Sector(s) that the Company is engaged in (industrial activity code-wise): Mining & power

8. List three key products/services that the Companymanufactures/provides (as in balance sheet) :Lignite and Electricity

9. Total number of locations where business activity is undertaken by the Company:

a) Number of International Locations (Provide details of major 5) : Nil

b) Number of National Locations : Nil

10. Markets served by the Company – In Gujarat State

SECTION B: FINANCIAL DETAILS OF THE COMPANY1. Paid up Capital (INR) : 63.60 crore

2. Total Turnover (INR) : 1521.00 crore

3. Total profit after taxes (INR) : 202.68 crore

4. Total Spending on Corporate Social Responsibility (CSR) as percentage of profit after tax (%) : 5.38. Furtherdisclosures as required under Section 135 of the Companies Act, 2013 read with the applicable rules are madeelsewhere in this Report.

5. List of activities in which expenditure in 4 above has been incurred:-The above expenditure has been, inter alia, incurred on the following activities directly or through implementingagency :a) Health & Sanitationb) Waterc) Environmentd) Art, Culture & Historye) Educationf) Rural Infrastructure and development

SECTION C: OTHER DETAILS1. Does the Company have any Subsidiary Company/ Companies? No.

2. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, thenindicate the number of such subsidiary company(s). Not applicable

3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate inthe BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? [Less than 30%,30-60%, More than 60%] : No.


53

SECTION D: BR INFORMATION1. Details of Director/Directors responsible for BR

a) Details of the Director/Director responsible for implementation of the BR policy/policies:1. DIN Number : 035714532. Name : Shri Arunkumar Solanki, IAS3. Designation : Managing Director

b) Details of the BR head :No. Particulars Details1 DIN Number (if applicable) Not applicable2 Name Shri L Kulshreshtha3 Designation Chief General Manager and Chief Financial Offcer4 Telephone Number 079-27913200 (1703)5 Email Id [email protected]

2. Principle-wise (as per NVGs) BR Policy/policiesa) Details of the Compliance (Reply in Y/N)

No. Questions P P P P P P P P P1 2 3 4 5 6 7 8 9

1 Do you have a policy/ policies for BR Y Y Y Y Y Y NA Y Y2 Has the policy being formulated in consultation Y Y Y Y Y Y NA Y Y

with the relevant stakeholders?3 Does the policy conform to any national / Y Y Y Y Y Y NA Y Y

international standards? If yes, specify? (50 words)4 Has the policy being approved by the Board? Y Y Y Y Y Y NA Y Y

If yes, has it been signed by MD / owner /CEO / appropriate Board Director?

5 Does the company have a specified Y Y Y Y Y Y NA Y YCommittee of the Board/ Director/ Official tooversee the implementation of the policy?

6 Indicate the link for the policy to be viewedonline?*

7 Has the policy been formally communicated to Y Y Y Y Y Y Y Y Yall relevant internal and external stakeholders?

8 Does the company have in-house structure to Y Y Y Y Y Y Y Y Yimplement the policy/ policies.

9 Does the Company have a grievance redressal Y Y Y Y Y Y Y Y Ymechanism related to the policy/ policies toaddress stakeholders’ grievances related to thepolicy/ policies?

10 Has the company carried out independent audit / Y Y Y Y NA Y NA Y Yevaluation of the working of this policy by aninternal or external agency?

* The website link of applicable policies are mentioned elsewhere in this Report.


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Sr. no. 3Does the policy conform to any national / international standards? If yes, specify? (50 words)

P1 The company, being a Government company, has a Vigilance Policy as per the Government guidelines andalso has vigilance wing as part of its overall HR Department set up. Apart from this the Company also has awhistle blower policy and a code of conduct. The Whistle Blower Policy and code of conduct conforms tothe requirements as stipulated by the Companies Act, 2013 and SEBI (LODR) Regulations, 2015. Thecompany also has detailed service rules for its employees which include anti-bribery and anti-corruptionprovisions. Over and above, the Company is also prone to Right to Information Act, 2005.

P2 The company carries out its mining operations within the regulatory framework with all environmentalsensibilities. The company also promotes inclusive growth and has its operations in some of the remotestregions of the state. The Company has a Corporate Social Responsibility Policy which can be viewed on theweb-link https://www.gmdcltd.com/en/corporate-policies-gmdc

P3 In order to promote the employee welfare, the company provides welfare amenities to employees such asresidential quarters at projects, schools both English medium and Gujarati medium at select projects,hospital facilities, medical facilities, play ground, both for outdoor and indoor games etc, at these remotelocations. For the benefits of employees, the company has also created a facility of Employee RecreationClub at all its project locations and conducts a biannual Cultural cum Sports Olympiads for bringing out thehidden talents of its employees and their family members.

P4 Being a State Public Sector enterprise, the company’s operational outlook is Socio Economic in nature. Thecompany’s mining operations are located in either the underdeveloped or desert or tribal belt of the State ofGujarat. The company has always endeavored to bring this marginalized section of the society into the mainstream of development by creating direct and indirect employment opportunities for both men and women ofthese areas. Not only this, through a holistic CSR interventions, the company has reached out to the rural masses.Not only this, the company constantly endeavors to have an inclusive approach towards mineral development.

P5 The Company is a State and is a Government Company. Therefore the company follows the constitutionalmandate on human rights.

P6 The company has adopted an Environment Policy which can be viewed on the web-link :https://www.gmdcltd.com/en/corporate-policies-gmdc Environment management is a very important part ofmining industry and GMDC follows best practices towards reclamation and restoration of mined out areas.GMDC has adopted all measures to control Air, Water, Noise & Land pollution. The company maintains afull fledged Environment Department with well qualified environment engineers and well equipped testinglaboratories at its major mining projects. There is a system of constant environment monitoring and control.

P7 While there is no specific policy for this purpose, the company puts forth its suggestions and views throughtrade bodies like Federation of Indian Mineral Industries, Mining Engineers’ Association of India, GujaratMineral Industries Association. Company’s operational and sales policies are sensitive towards therequirement of fuel particularly by small and medium enterprises within the state.

P8 GMDC is painstakingly cultivating a culture of building good relations with the community among which itoperates, be it through acquisition of mining land, resettlement and rehabilitation of project affected personsor the nurture of fragile environment in which it undertakes mining or provision of needful assistance to itsneighbours. As a corporate philosophy, GMDC has been responding to the various societal needs of remoterural areas from where mineral wealth is generated and has been lending a helping hand. Be itenvironmental needs, developmental needs in the form of employment generation, education, health care,water, sanitation, women empowerment or critical need at the time of natural disasters, GMDC has chosento respond responsibly. Even during the recent outbreak of pandemic of Covid 19, GMDC has responded tothe need of the time. In line with the requirement of Companies Act, 2013, the CSR Policy of GMDC isframed and can be viewed at https://www.gmdcltd.com/en/corporate-policies-gmdc


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P9 The company is a critical supplier of an alternative fuel of lignite to the industrial units operating in the Stateof Gujarat. The company’s customers span from major manufacturers of textiles to small time brickmanufacturers. The company attempts to distribute the natural resources in the most optimal manner tothese customers at affordable prices. The company also saves the state from critical foreign exchangeoutflow, as the fuel supply is available to the industry in an assured, timely and cost effective manner. Theonline customer care portal of the company facilitates faster and effective customer reach out. Not only this,the company conducts on site and off site customer meets and customer satisfaction surveys forunderstanding the need and fuel preferences of customers.

b) If answer to the question at serial number 1 against any principle, is ‘No’, please explain why: (Tick up to 2options)

No. Questions P P P P P P P P P1 2 3 4 5 6 7 8 9

1 The company has not understood the Principles - - - - - - - - -

2 The company is not at a stage where it finds - - - - - - - - -itself in a position to formulate and implement thepolicies on specified principles

3 The company does not have financial or - - - - - - - - -manpower resources available for the task

4 It is planned to be done within next 6 months - - - - - - - - -

5 It is planned to be done within the next 1 year - - - - - - - - -

6 Any other reason (please specify) - - - - - - - - -

3. Governance related to BRa) Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR

performance of the Company:Annually

b) Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report?How frequently it is published?During the year 2019-20, the Company has not published such report.

SECTION E: PRINCIPLE-WISE PERFORMANCE

Principle 1 : Businesses should conduct and govern themselves with Ethics, Transparency andAccountability

1. Does the policy relating to ethics, bribery and corruption cover only the company? Yes/ No. Does it extend tothe Group/Joint Ventures/ Suppliers/Contractors/NGOs /Others? No.

2. How many stakeholder complaints have been received in the past financial year and what percentage wassatisfactorily resolved by the management? If so, provide details thereof, in about 50 words or so.

During the year under report, only two complaints have been received by the Company and were 100%resolved satisfactorily.

Principle 2: Businesses should provide goods and services that are safe and contribute to sustainabilitythroughout their life cycle

1. List up to 3 of your products or services whose design has incorporated social or environmental concerns,risks and/or opportunities.a) Energy generation through Wind Powerb) Energy generation through Solar Power

2. For each such product, provide the following details in respect of resource use (energy, water, raw materialetc.) per unit of product (optional):


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a. Reduction during sourcing/production/ distribution achieved since the previous year throughout the valuechain?

b. Reduction during usage by consumers (energy, water) has been achieved since the previous year?

3. Does the company have procedures in place for sustainable sourcing (including transportation)?

The company is actually in the business of supply of mineral to the industries situated within the State ofGujarat.

4. Has the company taken any steps to procure goods and services from local & small producers, includingcommunities surrounding their place of work?

The company, being a government company, has special provisions for sourcing goods from small andmedium enterprises. Various services like plantations, labour, security services etc. are procured onoutsourced basis through participation of local communities and local villagers.

5. Does the company have a mechanism to recycle products and waste? If yes what is the percentage ofrecycling of products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50words or so.

GMDC takes care of mineral conservation and hence, the overburden which is produced during the miningoperations of lignite is properly stacked and is sold for value addition (like silica sand, ball clay, bentonite,limestone).

Principle 3: Businesses should promote the wellbeing of all employees1 Total number of employees. 12262 Total number of employees hired on temporary/contractual/casual basis. 303 Number of permanent women employees. 1044 Number of permanent employees with disabilities 155 Name of employee association that is recognized by management.

(a) Gujarat Rajya Khanij Karmachari Sangh(b) GMDC Karmachari Sangh (BMS)

6 Percentage of permanent employees who are members of this recognized employee association 77%7. Number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment in the lastfinancial year and pending, as on the end of the financial year.Sr. Category No. of Complaints filed No. of complaints pending asNo. during the financial year on end of the financial year1 Child labour/forced labour/involuntary labour Nil Nil2 Sexual harassment Nil Nil3 Discriminatory employment Nil Nil

8. Percentage of under mentioned employees who were given safety & skill up-gradation training in the last year:a) Permanent Employees 59%b) Permanent Women Employees 25%c) Casual/Temporary/Contractual Employees 80%d) Employees with Disabilities 80%

Principle 4: Businesses should respect the interests of, and be responsive towards all stakeholders,especially those who are disadvantaged, vulnerable and marginalized.1. Has the company mapped its internal and external stakeholders? Yes

2. Out of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders?Please indicate the total number of employees hired on temporary/contractual/casual basis.

The company being a Government Company, is required to follow the reservation policy of the State


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Government. The Company maintains roster and as per the roster, the company employs employees in thecategory of scheduled castes, scheduled tribes, other backward classes. Not only this, the company alsocurrently has hired Monthly Rated Workers at various projects who are local people without any specialized skillbut they carry out various work such as plantations, office peons, office cleaners etc.

3. Are there any special initiatives taken by the company to engage with the disadvantaged, vulnerable andmarginalized stakeholders? If so, provide details thereof, in about 50 words or so.

The Company being a Government company, follows the Government policy on reservation in publicemployment, as may be applicable from time to time.

Principle 5: Businesses should respect and promote human rights1. Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/

Suppliers/Contractors/NGOs/Others?

The policy covers the company. Moreover, the company being a Government Company, in italia, follows theconstitutional mandate of equality before law and equal protection of law.

2. How many stakeholder complaints have been received in the past financial year and what percent wassatisfactorily resolved by the management? NIL

Principle 6: Business should respect, protect, and make efforts to restore the environment1. Does the policy related to Principle 6 cover only the company or extends to the Group/Joint Ventures/Suppliers/

Contractors/NGOs/others?The policy extends to the company.

2. Does the company have strategies/ initiatives to address global environmental issues such as climate change,global warming, etc? Y/N. If yes, please give hyperlink for webpage etc.

Yes. It is within GMDC’s Environment Policy itself. GMDC believes in Clean Energy and reduction in CarbonFoot prints. Please check the GMDC website link: https://www.gmdcltd.com/en/corporate-policies-gmdc andhttps://www.gmdcltd.com/ en/green-footprint.

3. Does the company identify and assess potential environmental risks? Y/N

Yes. GMDC’s all operational projects are certified in ISO 9001, 14001 & OHSAS 18001.

4. Does the company have any project related to Clean Development Mechanism? If so, provide details thereof, inabout 50 words or so. Also, if Yes, whether any environmental compliance report is filed?

The company does not have a project related to Clean Development Mechanism.

5. Has the company undertaken any other initiatives on – clean technology, energy efficiency, renewable energy,etc. Y/N. If yes, please give hyperlink for web page etc.

The company has set up 200.9 MW Wind Power Projects. Moreover, the company has also set up a 5 MWSolar Power Project on the mined out reclaimed area at its Panandhro Lignite Project. Please check the GMDCwebsite link : https://www.gmdcltd.com/en/wind-power.

6. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for thefinancial year being reported? Yes.

7. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i.e. not resolved tosatisfaction) as on the end of Financial Year : NIL

Principle 7: Businesses, when engaged in influencing public and regulatory policy, should do so in aresponsible manner (business development cell)1. Is your company a member of any trade and chamber or association? If Yes, Name only those major ones that

your business deals with:a. Federation Of Indian Mineral Industriesb. Gujarat Chamber of Commerce and Industriesc. GUJMIN Industries Association


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2. Have you advocated/lobbied through above associations for the advancement or improvement of public good?No; if yes specify the broad areas ( drop box: Governance and Administration, Economic Reforms, InclusiveDevelopment Policies, Energy security, Water, Food Security, Sustainable Business Principles, Others)

Principle 8: Businesses should support inclusive growth and equitable development (businessdevelopment cell)1. Does the company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8?

If yes details thereof.(a) Semi annual financial assistance to girl students residing in core zone villages of GMDC projects.(b) Operation and Maintenance of Shyamji Krishna Varma Memorial at village Maska, in Mandvi Taluka of

Kutch District.(c) Providing Mobile Dispensaries (eClinics) with Doctors and medicines to the core zone villages of GMDC.(d) Smart Anganwadis in core zone villages of GMDC.

2. Are the programmes/projects undertaken through in-house team/own foundation/external NGO/governmentstructures/any other organization?

The company undertakes its community development programmes under CSR initiatives under the aegis ofGMDC Gramya Vikas Trust. In many instances, the company dovetails the Government Schemes withadditional inputs to its core zone villages.

3. Have you done any impact assessment of your initiative?

Impact assessment study of GMDC’s CSR initiatives at Rajpardi Lignite Project was carried out by thecompany.

4. What is your company’s direct contribution to community development projects- Amount in INR and the detailsof the projects undertaken.

The details of spending on CSR is published elsewhere as a part of this Annual Report.

5. Have you taken steps to ensure that this community development initiative is successfully adopted by thecommunity? Please explain in 50 words, or so.

The company constantly endeavors to ensure that the community initiatives undertaken by it are successfullyadopted by the community. The educational facilities provided by the company are being utilized by the localcommunity. The health care facilities, the mobile health services, the semi- annual financial assistance to girlstudents of core zone villages, the micro irrigation scheme, are successfully adopted by the community withinwhich the company operates.

Principle 9: Businesses should engage with and provide value to their customers and consumers in aresponsible manner (business development cell)1. What percentage of customer complaints/consumer cases are pending as on the end of financial year: Nil

2. Does the company display product information on the product label, over and above what is mandated as perlocal laws? N.A. /Remarks(additional information)

3. Is there any case filed by any stakeholder against the company regarding unfair trade practices, irresponsibleadvertising and/or anti-competitive behaviour during the last five years and pending as on end of financial year.If so, provide details thereof, in about 50 words or so: NIL

4. Did your company carry out any consumer survey/ consumer satisfaction trends? Yes


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StandaloneFinancial

Statements


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INDEPENDENT AUDITORS’ REPORTToThe Members ofGujarat Mineral Development Corporation Limited

Report on the Standalone Financial Statements

OpinionWe have audited the accompanying standalone financial statements of Gujarat Mineral DevelopmentCorporation Limited (“the Company”), which comprise the Balance Sheet as at 31st March, 2020, and theStatement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and theCash Flow Statement for the year then ended, notes to the standalone financial statements including a summary ofthe significant accounting policies and other explanatory information (herein after referred to as “standalonefinancial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaidstandalone financial statements give the information required by the Companies Act, 2013 in the manner sorequired and give a true and fair view in conformity with accounting principles generally accepted in India of the stateof affair of the Company as at 31st March, 2020, the profit and total comprehensive income, changes in equity andcash flows for the year ended on that date.

Basis for OpinionWe conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act, 2013. Our responsibilities under those Standards are further described in the Auditor ’sResponsibilities for the Audit of the Standalone Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of Indiatogether with the ethical requirements that are relevant to our audit of the standalone financial statements under theprovisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matteri. We draw the attention to Note No. 2.27.01 of the standalone financial statements wherein the company is

selling lignite/ power to GSECL/GUVNL. For arriving at the rate of lignite to be charged in invoice for sale ofLignite/power from year to year, the company is charging rate of interest of 13% on fixed assets of therespective project for finalization of cost as per agreed formula. Accordingly, the company has recognised therevenue for the sale of lignite/power to GSECL/GUVNL. However, while making the payment, GSECL andGUVNL are allowing rate of interest of 8.50% only instead of 13% w.e.f 01st July, 2017. The matter has beenreferred to Government of Gujarat (GOG) to settle the issue. Necessary adjustment entries, if any, will bepassed after the matter is finalised by GOG

ii. We draw attention to Note 2.50 of the standalone financial statements, as regards the management'sevaluation of COVID-19 impact on the future performance of the Company. Our opinion is not modified inrespect of this matter.

Our opinion on standalone financial statements, and our Report on Other Legal and Regulatory Requirements,is not modified in respect of the above matters.

Key Audit MatterKey audit matters are those matters that, in our professional judgment, were of most significance in our audit of thestandalone financial statements of the current period. These matters were addressed in the context of our audit ofthe standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters. We have determined the matters described below to be the key audit matters tobe communicated in our report.


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Sr. Key Audit Matter Auditor’s ResponseNo.

Stripping Cost Principal Audit Procedures1. Expenditure incurred on removal of Our audit approach was a combination of test of internal controls

mine waste materials (overburden) and substantive procedures which included the following:necessary to extract the lignite reserveis referred to as Stripping cost. • Evaluated the Overburden Removal (OB) and lignite reserve

estimate and discussed with the geologist about geologistCost of stripping is charged on technical model, estimation tools and sampling method (As per SA-620evaluated average stripping ratio at each “Using the Work of an Auditor's Expert”).plot of mine after due adjustment for • Tested ‘Average stripping ratio’ by recalculating the Lignite tostripping activity. overburden.

• Selected a sample of contracts and through inspection ofRefer Note (r) of the Significant evidence tested the operating effectiveness of the internalAccounting Policies controls relating to stripping activity.

• Carried out a combination of procedures involving enquiry,observation and inspection of evidence in respect of operationof these controls.

• Performed analytical procedures and test of details forreasonableness of expenditure incurred.

2. Contingent liabilities relating to Income Our audit procedures included the following:-tax (as described in note 2.37.01 of thefinancial statements) Our audit procedures included obtaining details of completed tax

assessments and outstanding demands as at the year endedThe company has uncertain tax position March 31, 2020 from management. We involved our internalincluding matters under dispute which experts to discuss with the management regarding estimatesinvolve significant judgment relating to used to ascertain the tax provision of disputed cases. Our internalthe possible outcome of these disputes experts also considered legal precedence and other rulings inin estimation of the provision of income evaluating management’s position on these disputed casestax. In view of this, the area has beenconsidered as a Key Audit Matter.

Information Other than the Standalone Financial Statements and Auditor’s Report ThereonThe Company’s Board of Directors is responsible for the preparation of the other information. The other informationcomprises the information included in the Management Discussion and Analysis, Board’s Report including Annexureto Board’s Report, Business Responsibility Report, Report on CSR Activities, Corporate Governance andShareholders Information, but does not include the standalone financial statements and our auditor’s report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the standalone financialstatements or our knowledge obtained during the course of our audit or otherwise appears to be materiallymisstated. If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation; we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act,2013 (“the Act”) with respect to the preparation of these standalone financial statements that give a true and fairview of the financial position, financial performance, total comprehensive income, changes in equity and cash flowsof the Company in accordance with the Indian Accounting Standards (Ind AS) prescribed under section 133 of theAct read with relevant rules issued thereunder and accounting principles generally accepted in India.

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments and estimates that are reasonable


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and prudent; and design, implementation and maintenance of adequate internal financial controls, that wereoperating effectively for ensuring the accuracy and completeness of the accounting records, relevant to thepreparation and presentation of the standalone financial statements that give a true and fair view and are free frommaterial misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the Board of Directors is responsible for assessing the Company’sability to continue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to ceaseoperations, or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial StatementsOur objectives are to obtain reasonable assurance about whether the standalone financial statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with Standards on Auditing ('SAs'), we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,intentional omissions , misrepresentations, or the override of internal control.

• Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under section143(3)(i) of the Companies Act, 2013, we are also responsiblefor expressing our opinion on whether the Company has adequate internal financial controls system in placeand the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, basedon the audit evidence obtained, whether a material uncertainty exists related to events or conditions that maycast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in thestandalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditor’s report. However, future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone financial statements, including thedisclosures, and whether the standalone financial statements represent the underlying transactions and eventsin a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope andtiming of the audit and significant audit findings, including any significant deficiencies in internal control that weidentify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the standalone financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not be


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communicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government

of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure ‘A’, astatement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. In terms of Section 143(5) of the Companies Act, 2013, we give in Annexure ‘2(i) & 2(ii)’ a statement on thedirections issued under the aforesaid section by the Comptroller and Auditor General of India.

3. As required by Section 143 (3) of the Companies Act, 2013 we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledgeand belief were necessary for the purposes of our audit of the aforesaid standalone financial statements.

b) In our opinion, proper books of account as required by law relating to preparation of the aforesaidstandalone financial statements have been kept by the Company so far as it appears from ourexamination of those books.

c) The Balance Sheet, the Statement of Profit and Loss, the Statement of Changes in Equity and the CashFlow Statement dealt with by this Report are in agreement with the relevant books of account maintainedfor the purpose of the standalone financial statements.

d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specifiedunder Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) Being a Government Company, pursuant to the Notification No. GSR 463(E) dated 5th June 2015 issuedby Ministry of Corporate Affairs, Government of India, provisions of sub-section (2) of Section 164 of theCompanies Act, 2013, are not applicable to the Company.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Companyand the operating effectiveness of such controls, refer to our separate Report in ‘Annexure B’.

g) With respect to the other matters to be included in the Auditor’s Report in accordance with therequirements of section 197(16) of the Act, as amended:

Being a Government Company, pursuant to the Notification No. GSR 463(E) dated 5th June 2015 issuedby Ministry of Corporate Affairs, Government of India, provisions of Section 197 of the Act, are notapplicable to the company.

h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information andaccording to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in itsstandalone financial statements- Refer Note 2.37 to the Standalone financial statements.

ii. The Company did not have any long-term contracts including derivative contracts for which therewere any material foreseeable losses.

iii. There has been no delay in transferring amounts, required to be transferred, to the InvestorEducation and Protection Fund by the Company.

For Soni Jhawar & Co.Chartered Accountants

FRN 110386W

Harish DagaPartner

M. NO. 409620Place : AhmedabadDate : 23.06.2020


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ANNEXURE ‘A’ TO THE AUDITORS’ REPORT(Referred to in para1 under ‘Report on Other Legal and

Regulatory Requirements’ section of our Report of even date)

The Annexure referred to in Independent Auditors’ Report to the members of Gujarat Mineral DevelopmentCorporation Limited (“the Company”) on the standalone financial statements for the year ended 31 March, 2020.

We report that:i. In respect of Fixed Assets

a. The company has maintained proper records showing full particulars, including quantitative details andsituation of its fixed assets.

b. The Company has a program of physical verification of its fixed assets by which fixed assets are verifiedat reasonable intervals. In accordance with this program, fixed assets were verified and discrepancieswhich were noticed on such verification were properly dealt with in the books of accounts.

c. According to the information and explanations given to us and on the basis of our examination of therecords of the Company, the title deeds of immovable properties are held in the name of the company.

ii. In respect of Inventorya. The physical verification of inventory has been conducted at reasonable intervals by the Management.

b. The procedure of physical verification of inventory followed by the management is reasonable andadequate in relation to the size of company and the nature of its business.

c. The company has maintained proper records of inventory. The discrepancies noticed on such verificationbetween the physical stocks and book stocks were not material and the same have been properly dealtwith in the books of accounts.

iii. The company has not granted any loans, secured or unsecured to companies, firms or other parties coveredin the register maintained under section 189 of the Companies Act, 2013. Therefore requirement of clause (iii)of the paragraph 3 of the order is not applicable to the company.

iv. In respect of loans, investments, guarantees, and security, provisions of section 185 and 186 of theCompanies Act, 2013 have been complied with as applicable.

v. The company has not accepted any deposits during the year as per the directives issued by the ReserveBank of India and within the meaning of the provisions of sections 73 to 76 and other relevant provisions ofthe Companies Act, 2013 and the rules framed there under, where applicable. Thus, the clause (v) ofparagraph 3 of the order is not applicable to the company.

vi. In pursuant to the order made by the Central Government for the maintenance of cost records under subsection (1) of section 148 of the Companies Act, 2013, the company has made and maintained the prescribedaccounts and records.

vii. In respect of statutory duesa. According to the information and explanations given to us, and on the basis of our examination, the

company is generally regular in depositing undisputed statutory dues including provident fund, InvestorEducation and Protection Fund, Employee’s State Insurance, Income Tax,Goods and Service Tax, SalesTax, Wealth Tax, Service Tax, Duty of Excise, Value Added Tax and Cess and any other statutory dueswith appropriate authorities.

b. The details of excise duty, service tax, income tax and sales tax/VAT not deposited on account of disputeare as under:


65

Name of Statute Nature of the Period to which Amount Forum where dispute is pendingDues the amount relates ( In Lakh)

Commercial tax Sales tax/VAT 1995-96 98.92 Appellate TribunalCommercial tax Sales tax/VAT 1997-98 2.45 Appellate TribunalCommercial tax CST 1997-98 4.26 Appellate TribunalService Tax Service Tax Dec-15 to Aug 16 0.39 Appellate TribunalService Tax Service Tax 2018-19 701.90 Directorate General of Central Excise

Intelligence Zonal unit (DGCEIZ)Service Tax Service Tax 2018-19 & 2019-20 509.78 Office of the Commissioner of Central

GST, Kutch- GandhidhamCentral Excise Excise Jan 14 – Dec 14 1.23 Appellate TribunalAct, 1944Central Excise Excise Mar 11 - Jan 16 10.21 Appellate TribunalAct, 1944Central Excise Excise 2015-16 450.58 Appellate TribunalAct, 1944Income Tax Outstanding A.Y 2018-19 1322.93 Assessing OfficerAct, 1961 Demand

viii. The Company does not have any loans or borrowings from any financial institution, banks, government ordebenture holders during the year.

ix. The company has not raised any money by way of initial public offer or further public offer (including debtinstruments) or taken any term loan during the year.

x. According to the information and explanations given to us, no material fraud by the Company or on theCompany by its officers or employees has been noticed or reported during the course of our audit.

xi. As per Notification No. GSR 463(E) dated 5 June 2015 issued by the Ministry of Corporate Affairs,Government of India, Section 197 of the Companies Act, 2013 is not applicable to the GovernmentCompanies. Accordingly, provisions of clause 3 (xi) of the Order are not applicable to the Company.

xii. The provisions of clause 3 (xii) of the Order, for Nidhi Company, are not applicable to the Company.

xiii. According to the information and explanations given to us, all transactions with the related parties are in compliancewith sections 177 and 188 of Companies Act, 2013 whereever applicable and the details have been disclosed in thestandalone Financial Statements etc. as required by the applicable Indian Accounting Standards.

xiv. According to the information and explanations give to us and based on our examination of the records of theCompany, the company has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year under review.

xv. According to the information and explanations given to us and based on our examination of the records of theCompany, the company has not entered into non-cash transactions with directors or persons connected withthem during the year.

xvi. According to information and explanation given to us, the Company is not required to be registered u/s 45-IA ofReserve Bank of India Act, 1934. Accordingly, provision of clause 3(xvi) of the Order is not applicable to the Company.


FRN 110386W

Harish DagaPlace : Ahmedabad PartnerDate : 23.06.2020 M. NO. 409620


66

ANNEXURE ‘B’ TO THE AUDITORS’ REPORT(Referred to in para 3 (f) under ‘Report on Other Legal and

Regulatory Requirements’ section of our Report of even date)Report on Internal Financial Controls over Financial Reporting

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013(“the Act”)

We have audited the internal financial controls over financial reporting of Gujarat Mineral DevelopmentCorporation Limited (“the Company”) as of March 31, 2020, in conjunction with our audit of the standalone financialstatements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial ControlsThe Company’s Board of Directors is responsible for establishing and maintaining internal financial controls based on theinternal control over financial reporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by TheInstitute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation andmaintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficientconduct of its business, including adherence to company’s policies, the safeguarding of its assets, the prevention anddetection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation ofreliable financial information, as required under the Companies Act, 2013.

Auditors’ ResponsibilityOur responsibility is to express an opinion on the Company's internal financial controls over financial reportingbased on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI anddeemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit ofinternal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by TheInstitute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequateinternal financial controls over financial reporting were established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controlssystem over financial reporting and their operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls over financial reporting, assessing the riskthat a material weakness exists, and testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditors’ judgment, including the assessment ofthe risks of material misstatement of the standalone financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the Company’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial ReportingA company's internal financial control over financial reporting is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect thetransactions and dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permit preparation ofstandalone financial statements in accordance with generally accepted accounting principles, and thatreceipts and expenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and

3. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, ordisposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial ReportingBecause of the inherent limitations of internal financial controls over financial reporting, including the possibility ofcollusion or improper management override of controls, material misstatements due to error or fraud may occur andnot be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future


67

ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT OFGUJARAT MINERAL DEVELOPMENT CORPORATION LTD

ToThe MembersGujarat Mineral Development Corporation Ltd.

In continuation of our Independent Audit Report on Standalone Financial Statements of Gujarat MineralDevelopment Corporation Ltd. (“The Company”) dated 23.06.2020 we have reported on Directions and Sub-direction under section 143(5) of the Companies Act, 2013 applicable for the year 2019-20, as under:

ANNEXURE-2(i)Directions under Section 143(5) of Companies Act, 2013 Applicable for the year 2019-20

Sr. No. Directions/Questions u/s 143(5) Action Taken Impact on Accountsand Financials

No Impact

No Impact

No Impact

Whether the Company has system inplace to process all the accountingtransactions through IT system? If No,the implication of processing ofaccounting transactions outside ITsystem on the integrity of the accountsalong with the financial implications, ifany, may be stated.

Whether there is any restructuring of anexisting loan or cases of waiver/ write offof debts/loans/ interest etc, made by alender to the company due to company’sinability to repay the loan? if yes, thefinancial impact may be stated

Whether funds received/ receivable forspecific scheme from Central / Stateagencies were properly accounted for /utilised as per its terms and conditions?List the cases of deviation

Yes, the Company has Oracle basedcomposite ERP System covering allthe departments of the company fromwhere accounting transactions areprocessed. We have not come acrossany case, where accountingtransactions are processed outsideERP. Therefore, there is no financialimplication on the integrity of theaccounts.

The company has no borrowing.Therefore, there is no restructuring ofan existing loan or cases of waiver /write off of debts/loans/ interest etc,made by a lender to the company dueto company’s inability to repay the loan.

Yes, funds received/ receivable forspecific scheme from Central/ Stateagencies were properly accounted for /utilised as per its terms and conditions.

1.

2.

3.

periods are subject to the risk that the internal financial control over financial reporting may become inadequatebecause of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

OpinionIn our opinion, the Company has, in all material respects, an adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting were operating effectively as at March31, 2020, based on the internal control over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.


FRN 110386W



FRN 110386W



68

ANNEXURE-2 (ii)Sector Specific Sub-directions under section 143 (5) of Companies Act, 2013

Sr. Sub Directions issued/Questions u/s 143(5) Action Taken Impact onNo. financials

Manufacturing SectorMining

1

2

3

4

5

Whether the company has taken adequatemeasures to reduce the adverse affect onenvironment as per established norms andtaken up adequate measures for the reliefand rehabilitation of displaced people.

Whether the Company had obtained therequisite statutory compliances that wasrequired under mining and environmentalrules and regulations?

Whether overburden removal from minesand backfilling of mines arecommensurate with the mining activity?

Whether the Company has disbanded anddiscontinued mines, if so,the payment ofcorresponding dead rent there againstmay be verified.

Whether the Company's financialstatements had properly accounted for theeffect of Rehabilitation Activity and MineClosure Plan?

According to the information and explanationgiven to us, the Company is obtainingenvironmental pollution monitoring reportperiodically from outside agency for eachproject to reduce/monitor the adverse effecton environment.

No Major Displacement/Rehabilitation hasbeen taken at any project of the company forthe year 2019-20. (Please note that we arenot technical expert)

As per the information and explanation givento us, the Company has obtained necessaryconsents from GPCB for mining projects.

As informed to us, in respect of ligniteprojects overburden removal from mines andbackfilling of mines are commensurate withthe mining activ ity as per submitted/approved/ prepared mine closure plan.(Please note that we are not technical expert)

As informed to us, the Company hasdiscontinued its Panandharo mine due toexhaust of lignite. Dead rent paid for abovemine during the year 51.37 lakh.

The expenditure on Rehabilitation Activity andfor Mine Closure is properly accounted in thebooks of account of the Company, as per thepolicy adopted in this behalf.

No impact

No impact

No impact

NotApplicable

No impact

Power SectorGeneration

1

2

In the cases of Thermal Power Projects,compliance of the various PollutionControl Acts and the impact thereofincluding utilization and disposal of ashand the policy of the company in thisregard, may be checked and commentedupon.

Has the company entered into revenuesharing agreements with private parties forextraction of coal at pitheads and itadequately protects the financial interestof the Company?

As per the information and explanationprovided to us, the Company has madecompliance of various pollution control Acts.

In respect of utilization and disposal of ash,generally the Company is using it inbackfilling of mine in Panandharo project.

As informed to us, the Company has notentered into revenue sharing agreementswith private parties for extraction of coal atpitheads.

No impact

NotApplicable


69

3

4

5

Does the company have a proper systemfor reconciliation of quantity/ quality ofcoal ordered and received and whethergrade of coal/moisture and demurrage etc.,are properly recorded in the books ofaccounts?

How much share of free power was due tothe State Government and whether thesame was calculated as per the agreedterms and depicted in the accounts as peraccepted accounting norms?In the case of Hydroelectric Projects thewater discharge is as per policy /guidelines issued by the State Governmentto maintain biodiversity. For notmaintaining it penalty paid / payable maybe reported.

Company does not purchase coal from theoutside parties. However, as informed to us,the Company is having a system in ERP forreconcil iation of quantity ordered andreceived and Grade of coal/ moisture anddemurrage etc. are recorded in the books ofaccounts on the basis of Test Certif icatereceived from the laboratory.(Please note that we are not technicalexperts).

The power is sold to Government controlledentity and the same is calculated as perterms agreed in PPA (Power PurchaseAgreement).

As informed to us, no hydroelectric Project iscarried out by Company.

No impact

No impact

NotApplicable

Sr. Sub Directions issued/Questions u/s 143(5) Action Taken Impact onNo. financials


FRN 110386W


COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIACOMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THECOMPANIES ACT, 2013 ON THE STANDALONE FINANCIAL STATEMENTS OF GUJARAT MINERALDEVELOPMENT CORPORATION LIMITED FOR THE YEAR ENDED 31 MARCH 2020

The preparation of standalone financial statements of Gujarat Mineral Development Corporation Limited,Ahmedabad for the year ended 31 March 2020 in accordance with the financial reporting framework prescribedunder the Companies Act, 2013(Act) is the responsibility of the management of the company. The statutory auditorsappointed by the Comptroller and Auditor General of India under section 139(5) of the Act are responsible forexpressing opinion on the financial statements under section 143 of the Act based on independent audit inaccordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have beendone by them vide their Audit Report dated 23 June 2020.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the financialstatements of Gujarat Mineral Development Corporation Limited for the year ended 31 March 2020 under section143(6) (a) of the Act. This supplementary audit has been carried out independently without access to the workingpapers of the statutory auditors and is limited primarily to inquiries of the statutory auditors and company personneland a selective examination of some of the accounting records.

On the basis of my supplementary audit nothing significant has come to my knowledge which would give rise to anycomment upon or supplement to Statutory Auditors’ Report under section 143(6)(b) of the Act.

For and on behalf of theComptroller and Auditor General of India

H. K. DharmadarshiPr. Accountant General (E&RSA), Gujarat

Place : AhmedabadDate : 3rd September, 2020


70

STANDALONE BALANCE SHEET AS AT 31ST MARCH, 2020( in Lakh)

Particulars

ASSETSNon-Current Assets

Property, Plant and EquipmentCapital Work-In-ProgressInvestment PropertiesOther Intangible AssetsInvestment in Associates and Joint VenturesFinancial Assets

InvestmentsLoansOther Financial Assets

Other Non-Current AssetsTotal Non-Current AssetsCurrent Assets

InventoriesFinancial Assets

Trade ReceivablesCash and Cash EquivalentsOther Bank BalancesLoansOther Financial Assets

Other Current Assets

Assets classified as held for saleTotal Current AssetsTotal Assets

EQUITY AND LIABILITIESEquity

Equity Share CapitalOther Equity

Total Equity

LiabilitiesNon-Current Liabilities

Financial LiabilitiesOther Financial Liabilities

ProvisionsNet Employee Benefit LiabilitiesDeferred Tax Liabilities (Net)Other Non-Current Liabilities

Total Non-Current LiabilitiesCurrent Liabilities

Financial LiabilitiesTrade PayablesOther Financial Liabilities

Net Employee Benefit LiabilitiesOther Current Liabilities

Total Current LiabilitiesTotal LiabilitiesTotal Equity and Liabilities

NoteNo.

2.012.012.022.032.04

2.052.062.072.08

2.09

2.102.112.112.122.132.14

2.15

2.162.17

2.182.192.202.212.22

2.232.242.252.26

As at31st March, 2020

161,382.92 429.53

9,058.86 35,177.12

891.37

25,053.20 192.52

78,933.66 47,368.96

358,488.14

9,511.80

14,279.01 6,957.37

113.02 913.07

102,586.75 24,887.14

159,248.16 7.62

159,255.78 517,743.92

6,360.00 415,143.02 421,503.02

1,508.52 47,674.35

4,241.24 11,136.26 2,039.51

66,599.88

13,676.54 10,295.63

1,647.06 4,021.79

29,641.02 96,240.90

517,743.92


167,984.90 76.45

9,183.13 35,776.16

891.37

41,737.16 205.79

69,135.05 44,705.72

369,695.73

9,813.43

14,747.73 5,877.76

140.35 1,074.31

100,962.88 14,850.90

147,467.36 16.75

147,484.11 517,179.84

6,360.00 422,209.51 428,569.51

2,593.94 43,372.03

3,930.57 11,971.14 2,441.94

64,309.62

10,970.97 9,365.26 1,073.80 2,890.68

24,300.71 88,610.33

517,179.84

Significant Accounting Policies 1The accompanying notes are integral part of the Financial Statements.As per our report of even date attachedFor Soni Jhawar & Co. Anupma Iyer L. Kulshrestha Arunkumar Solanki, IASChartered Accountants General Manager (Accounts) Chief General Manager & Managing DirectorFirm Registration No.110386W Chief Financial Officer DIN: 03571453Harish Daga Joel Evans S.B. DangayachPartner Company Secretary DirectorMembership No. 409620 DIN-01572754Place: Ahmedabad Place: AhmedabadDate: 23rd June 2020 Date: 23rd June 2020


71

2019-20

152,094.85 15,093.59 1,791.30 168,979.74

161.44 14,448.57 188.13 9,157.93 118,923.87 142,879.94 26,099.80

- 26,099.80

8,811.17 (3,297.26) 318.15 20,267.74

(16,683.97) (513.99) 725.70 (16,472.26)

3,795.48

6.37 6.37

2018-19

187,967.8211,766.912,482.86

202,217.59

(631.81)12,228.66

183.129,613.73

120,338.51141,732.21

60,485.38

(29,765.00)30,720.38

18,971.65(2,120.25)

-13,868.98

(13,924.37)1,112.20

831.60(11,980.57)

1,888.41

4.364.36

STANDALONE STATEMENT OF PROFIT AND LOSSFOR THE YEAR ENDED ON 31ST MARCH, 2020

( in Lakh)

Particulars

INCOME

Revenue from OperationsFinance IncomeOther Income

Total Income (A)

EXPENSESChanges in inventories of finished goods and mined oreEmployee Benefit ExpensesFinance CostsDepreciation and Amortisation ExpensesOther Expenses

Total Expenses (B)Profit before exceptional items and tax (A-B)

Exceptional ItemsLoss on Investment in associate

Profit Before TaxTax Expenses

Current TaxDeferred TaxShort/(excess) provision of earlier years

Profit After Tax for the PeriodOther Comprehensive Income Items that will not be reclassified to profit or loss Changes in fair value of equity instruments measured at fair value through other comprehensive income (FVTOCI) Remeasurement of post-employment benefit obligations Income tax relating to these itemsOther Comprehensive Income for the Period, net of taxTotal Comprehensive Income for the Period (Comprising Profit(Loss) and Other Comprehensive Income for the period)Earning per Equity Share (EPS) (Face Value of ? 2)Basic ( )Diluted ( )

Significant Accounting Policies 1The accompanying notes are integral part of the Financial Statements.

As per our report of even date attached

For Soni Jhawar & Co. Anupma Iyer L. Kulshrestha Arunkumar Solanki, IASChartered Accountants General Manager (Accounts) Chief General Manager & Managing DirectorFirm Registration No.110386W Chief Financial Officer DIN: 03571453

Harish Daga Joel Evans S.B. DangayachPartner Company Secretary DirectorMembership No. 409620 DIN-01572754

Place: Ahmedabad Place: AhmedabadDate: 23rd June 2020 Date: 23rd June 2020

Note No.

2.272.282.29

2.302.312.322.332.34

2.35

2.362.36


72

STANDALONE STATEMENT OF CHANGES IN EQUITY (SOCIE)FOR THE YEAR ENDED ON 31ST MARCH, 2020

A. Equity Share Capital ( in Lakh)

Particulars Number of Shares AmountISSUED, SUBSCRIBED AND PAID UP CAPITALEquity shares of 2/- each fully paid upAs at 1st April 2018 31,80,00,000 6,360.00Increase/(decrease) during the year - -

As at 31st March 2019 31,80,00,000 6,360.00As at 1st April 2019 31,80,00,000 6,360.00Increase/(decrease) during the year - -

As at 31st March 2020 31,80,00,000 6,360.00

B. Other Equity ( in Lakh)

*Impact of adjustments on account of prior period items has been explained in note number 2.48.


For Soni Jhawar & Co. Anupma Iyer L. Kulshrestha Arunkumar Solanki, IASChartered Accountants General Manager (Accounts) Chief General Manager & Managing DirectorFirm Registration No.110386W Chief Financial Officer DIN: 03571453Harish Daga Joel Evans S.B. DangayachPartner Company Secretary DirectorMembership No. 409620 DIN-01572754Place: Ahmedabad Place: AhmedabadDate: 23rd June 2020 Date: 23rd June 2020

Particulars

Balance as at 1st April, 2018Adjustments on account of Prior period errors*Restated balance at the beginning of thereporting periodProfit for the year*Other comprehensive income for the yearTotal comprehensive income for the yearCash dividends (Note 2.17)Dividend Distribution Tax (DDT)Balance as at 31st March, 2019Impact of transition to appendix C of Ind AS 12 &Ind AS 116Balance as at 1st April, 2019Profit for the yearOther comprehensive income for the yearTotal comprehensive income for the yearCash dividends (Note 2.17)Dividend Distribution Tax (DDT)Balance as at 31st March, 2020

Reserves & SurplusGeneral Retainedreserve earnings

271,928.96 119,775.39- 28.26

271,928.96 119,803.65- 13,868.98- 723.55- 14,592.53- (11,130.00)- (2,287.80)

271,928.96 120,978.38

(3,194.65)271,928.96 117.783.73

- 20,267.74- (334,38)- 19,933.36- (6,360.00)- (1,307.32)

271,928.96 130,049.77

Equity TotalInstruments Other

through Other EquityComprehensive

Income42,006.29 433.710.64

- 28.26

42,006.29 433,738.90- 13,868.98

(12,704.12) (11,980.57)(12,704.12) 1,888.41

- (11,130.00)- (2,287.80)

29,302.17 422,209.51-

(3,194.65)29,302.17 419,014.86

- 20,267.74(16,137.88) (16,472.26)(16,137.88) 3,795.48

- (6,360.00)- (1,307.32)

13,164.29 415,143.02


73

STANDALONE STATEMENT OF CASH FLOWFOR THE YEAR ENDED ON 31ST MARCH, 2020

( in Lakh)

2019-20

26,099.80

9,157.93 -

64.44 (158.65)

(50.69) -

(828.12)-

184.86 (9,135.64) 25,333.93

(17,872.63)237.19

7,925.2515,623.74

(15,906.24)(282.50)

(1,024.65)77.46

-12.86

9,135.64828.12

9,029.43

(7,667.32)(7,667.32)

1,079.615,877.766,957.37

-

2,611.89 255.25

4,090.23 6,957.37

2018-19

30,720.38

9,613.736.879.08

98.18(32.86)

29,765.00(789.74)

28.26150.72

(8,405.26)61,164.36

(13,044.74)(2,570.43)

(11,439.19)34,110.00

(19,763.49)14,346.51

(7,142.22)77.41

0.01(0.91)

8,405.26789.74

2,129.29

(13,431.78)(13,431.78)

3,044.022,833.745,877.76

-

1,827.76-

4,050.005,877.76

Particulars

Cash Flow from Operating ActivitiesNet Profit before taxAdjustments for:

Depreciation and Amortisation ExpensesProvision for Doubtful Debts, Investments and Loans and AdvancesAssets /sundry balance/ stores written offExcess/Short provision adjustedSurplus / (Deficit) on sale of assetsLoss on InvestmentsDividend IncomePrior periodUnwinding of discount on provisionsInterest from Banks and Corporates

Operating profit before working capital changes:Adjustments for:

Trade and Other ReceivableInventoriesTrade and Other Payable

Cash generated from OperationsTaxes Paid

Net Cash Flow from Operating Activities (A)Cash Flow from Investing Activities

Purchase of items of property, plant and equipment,investment properties and intangible itemsSale of fixed assetsRedemption / Purchase of InvestmentsBank deposits (placed) / maturedInterest from Banks and CorporatesDividend Income

Net Cash Flow from Investing Activities (B)Cash Flow from Financing Activities

Dividend (Including Corporate Dividend Tax) PaidNet Cash Flow from Financing Activities (C)Net Increase / (Decrease) in Cash and Cash Equivalents (A+ B+ C)Cash and Cash Equivalents at the beginning of the periodCash and Cash Equivalents at the end of the periodNotes to Statement of Cash Flow1. Cash and cash equivalent includes-

Cash and Cheques on HandBalances with Scheduled Banks

in Current Accountsin Deposit Accounts (original maturity for less than three months)

Deposits with financial institutions

2. Corresponding figures of the previous year have been re-grouped / re-arranged / re-classified / restated and revised,wherever necessary, for rounding off to nearest lakh and/or to make them comparable with the figures of the currentyear.

3. The Cash Flow Statement has been prepared under the ‘Indirect Method’ as per Ind AS 7.As per our report of even date attachedFor Soni Jhawar & Co. Anupma Iyer L. Kulshrestha Arunkumar Solanki, IASChartered Accountants General Manager (Accounts) Chief General Manager & Managing DirectorFirm Registration No.110386W Chief Financial Officer DIN: 03571453Harish Daga Joel Evans S.B. DangayachPartner Company Secretary DirectorMembership No. 409620 DIN-01572754Place: Ahmedabad Place: AhmedabadDate: 23rd June 2020 Date: 23rd June 2020


74

1 : Significant Accounting PoliciesNote 1 : Significant Accounting Policies

This note provides list of the significant accounting policies applied in the preparation of these standalonefinancial statements.

(a) Basis of preparation(i) Statement of compliance with Ind AS

The standalone financial statements are prepared in accordance with Indian Accounting Standards (IndAS) notified under Section 133 of the Companies Act, 2013 (the Act) read with the Companies (IndianAccounting Standards) Rules, 2015 as amended and other relevant provisions of the Act..

(ii) Historical cost conventionThe financial statements are prepared on accrual basis of accounting under historical cost convention inaccordance with generally accepted accounting principles in India and the relevant provisions of the Actincluding Indian Accounting Standards notified there under, except for the following where the fairvaluation have been carried out in accordance with the requirements of respective Ind AS:• Investments in equity instruments;• Non-current assets held for sale; and• Employee defined benefit plans - plan assets.

Prior period/ Pre-paid items:Items exceeding the materiality determined by the management ( 50,000/-) are accountedretrospectively by restating the figures of relevant accounting periods. Other items are accounted in theyear in which they arise.

(iii) Use of estimates and judgementsThe preparation and presentation of the financial statements are in conformity with the Ind AS whichrequires the management to make estimates, judgments and assumptions that affect the reportedamounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Suchestimates and assumptions are based on management's evaluation of relevant facts and circumstancesas on the date of financial statements. The actual outcome may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accountingestimates are accounted prospectively.

This policy provides an overview of the areas that involved judgement and items which are more likely tobe materially adjusted due to estimates and assumptions turning out to be different than those originallyassessed. Detailed information about each of these estimates and judgements is included in relevantnotes together with information about the basis of calculation for each affected line item in the financialstatements.

Information about assumptions, estimation and uncertainties that have a significant risk of resulting in amaterial adjustment within the next financial year are included in the following notes:

Note 2.02- Fair valuation of investment propertiesNote 2.15- Fair valuation of non-current assets held for saleNote 2.19/2.37 - Provisions and contingent liabilitiesNote 2.21 - Current / Deferred tax liabilitiesNote 2.25 - Measurement of employee defined benefit liabilitiesNote 2.42 - Impairment of items of property, plant and equipment and other assetsNote 2.45 - Impairment of financial assets (including expected credit losses for receivables)Note 2.45- Fair valuation of investments

Principles of fair value measurement have been provided in note (l) of the significant accounting policies.

(iv) Current versus non-current classificationThe Company presents assets and liabilities in the Balance Sheet based on current/non-currentclassification as per the requirements of Ind AS compliant Schedule III to the Act.


75

(b) Borrowing costsBorrowing costs attributable during the acquisition or construction of qualifying assets are capitalised as partof the cost of the assets. A qualifying asset is one that necessarily takes substantial period of time to getready for intended use. All other borrowing costs are charged to revenue.

(c) Property, Plant and Equipment (PPE)Freehold land is carried at historical cost. All other items of PPE are stated at historical cost of acquisition/construction (net of recoverable taxes) less accumulated depreciation and impairment losses, if any.

Historical cost includes expenditure that is directly attributable to the acquisition as well as construction/installation of the items but excludes cost of fencing in lignite mines projects. Subsequent costs are includedin the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable thatfuture economic benefits associated with the item will flow to the Company and the cost of the item can bemeasured reliably. All other repairs and maintenance expenses are charged to Statement of Profit and Lossduring the reporting period in which they are incurred. Rehabilitation and resettlement expenses incurred afterinitial acquisition of the assets are expensed to profit or loss in the year in which they are incurred.

Machinery spares for Generating Units, Power Station and Switchyard, etc. either procured along with theequipment or subsequently are capitalized in the asset’s carrying amount or recognised as a separate asset,as appropriate, only when it is probable that future economic benefits associated with the item will flow to theCompany and the cost of the item can be measured reliably.

The present value of the expected cost for the decommissioning of an asset after its use is included in thecost of the respective asset if the recognition criteria for a provision are met.

Capital Work-in-progress includes expenditure that is directly attributable to the acquisition/construction ofassets, which are yet to be commissioned and project inventory and assets in transit.

An item of PPE is derecognised upon disposal or when no future economic benefits are expected to arisefrom the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of PPEis recognised in the Statement of Profit and Loss.

Un-serviceable/worn out plant and equipments, vehicles and other assets of the Company are written off fromthe books of account to the extent of 95% of their cost after getting approval of appropriate authorities. Thesame are stated at the lower of their net book value or net realizable value.

Item of PPE received by Company at free of cost from parties other than government are stated at nominal cost.

(d) Investment propertiesInvestment properties comprise free hold land and building (including properties under construction) that areheld for rental yield and/or capital appreciation.

Investment property is measured initially at its cost, including related transaction costs. Subsequentexpenditure is capitalised to the asset's carrying amount only when it is probable that future economicbenefits associated with the item will flow to the Company and the cost of the item can be measured reliably.All other repairs and maintenance expenses are charged to Statement of Profit and Loss during the reportingperiod in which they are incurred.

(e) Intangible assetsIntangible assets are measured on initial recognition at cost (net of recoverable taxes, if any). Subsequently,intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.

The costs of mining leases, which include the costs of acquiring mineral rights, are capitalised as item ofintangible assets under the head ‘Mining Rights’ in the year in which they are incurred. Pre-operativeExpenses of Mines/Mining Projects under implementation incurred up to the date of commencement of theproduction on commercial basis are written off to the Statement of Profit and Loss in the year in which theyare incurred.

(f) Depreciation and amortisation methods, estimated useful lives and residual values(i) Items of property, plant and equipment and investment properties

Depreciation is charged on straight line method (SLM) based on the useful life of the asset prescribed in


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Schedule II to the Act. The assets’ residual values and useful lives are reviewed, and adjusted ifappropriate, at the end of each reporting date.

Depreciation on items of property, plant and equipment acquired / disposed off during the year isprovided on pro-rata basis with reference to the date of addition / disposal.

Investment properties are depreciated on SLM based on the useful lives of the Assets prescribed inSchedule II to the Act.

Low value items which are in the nature of assets (excluding immovable assets) and valuing up to5,000/- are not capitalized and charged off to Statement of Profit and Loss in the year of acquisition.

(ii) Intangible assetsIntangible assets with finite lives are amortised over their useful life and assessed for impairmentwhenever there is an indication that the item of intangible asset may be impaired. The amortisationperiod and `the amortisation method for an intangible asset with a finite useful life are reviewed at eachreporting date.

Intangible assets are amortised on SLM based on the useful lives determined based on technicalevaluation done by the management except mining rights which are amortised using a unit-of-productionmethod based on the data available with the Company as regards extraction of the minerals ascompared to the technical estimation of gross geological mineral reserves as mentioned in thesubmitted / approved mine closure plan. Capitalized mining rights are amortised once commercialproduction commences.

(g) Impairment of non-financial assetsAn asset is treated as impaired when carrying cost of asset exceeds its recoverable value. An impairmentloss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired. Theimpairment loss recognized in prior accounting period is reversed, if there has been a change in estimate ofrecoverable amount. In case of intangible assets, the same is tested on periodical basis for impairment.

Full provision is made on plant and machinery which has not been put to use and lying in capital work inprogress for more than ten years.

(h) LeasesThe determination of whether an arrangement is (or contains) a lease is based on the substance of thearrangement at the inception of the lease. A contract is, or contains, a lease if the contract conveys the right tocontrol the use of an identified asset for a definite period of time in exchange for consideration. To assesswhether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

(i) the contract involves the use of identified asset;(ii) the Company has substantially all of the economic benefits from the use of the asset through the period

of lease and(iii) the Company has right to direct the use of the asset.

Lease accountingAs a lesseeThe Company recognises a right-of-use asset and a lease liability at the lease commencement date. Theright-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjustedfor any lease payments made at or before the commencement date, plus any initial direct costs incurred andan estimate of costs to dismantle and remove the underlying asset or to restore the site on which it is located,less any lease incentives received.

Certain lease arrangements include the option to extend or terminate the lease before the end of the leaseterm. The right-of-use assets and lease liabilities include these options when it is reasonably certain that theoption will be exercised.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date tothe earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated usefullives of right-of-use assets are determined on the same basis as those of property, plant and equipment.


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The lease liability is initially measured at the present value of the lease payments that are not paid at thecommencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readilydetermined, the Company’s incremental borrowing rate. Generally, the Company uses its incrementalborrowing rate as the discount rate.

The lease liability is subsequently measured at amortised cost using the effective interest method. It isremeasured when there is a change in future lease payments arising from a change in an index or rate, ifthere is a change in the Company’s estimate of the amount expected to be payable under a residual valueguarantee, or if Company changes its assessment of whether it will exercise a purchase, extension ortermination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carryingamount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use assethas been reduced to zero.

Lease payments have been classified as financing activities.

The Company has elected not to recognise right-of-use assets and lease liabilities for short term leasesthat have a lease term of less than or equal to 12 months with no purchase option and assets with lowvalue leases. The Company recognises the lease payments associated with these leases as an expensein statement of profit and loss over the lease term. The related cash flows are classified as operatingactivities.

As a lessorLeases for which the Company is a lessor is classified as finance or operating leases. When the terms of thelease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as afinance lease. All other leases are classified as operating leases.

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term.

Adoption of Ind AS 116 and TransitionEffective from 1st April 2019 (‘the date of transition’), the Company has applied Ind AS 116 using the modifiedretrospective approach, under which the cumulative effect of initial application is recognised in retainedearnings.

On transition to Ind AS 116, the Company has elected to apply the practical expedient to grandfather theassessment of which transactions are leases. The definition of a lease under Ind AS 116 is applied only tocontracts entered into or changed on or after 1st April 2019.The Company has applied accounting under IndAS 116 also to contracts that were previously identified as leases under Ind AS 17.

(i) Non-current assets held for sale and discontinued operationsNon-current assets are classified as held for sale if their carrying amount will be recovered principally througha sale transaction rather than through continuing use and a sale is considered highly probable. They aremeasured at the lower of their carrying amount and fair value less costs to sell, except for assets such asdeferred tax assets, assets arising from employee benefits, financial assets and contractual rights underinsurance contracts, which are specifically exempt from this requirement.

Non-current assets are not depreciated or amortised while they are classified as held for sale. Non-current assets classified as held for sale are presented separately from the other assets in the BalanceSheet.

A discontinued operation is a component of the Company that has been disposed of or is classified as heldfor sale and that represents a separate major line of business or geographical area of operations, is part of asingle co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiaryacquired exclusively with a view to resale. The results of discontinued operations are presented separately inthe Statement of Profit and Loss.

(j) Financial instrumentsA financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability orequity instrument of another entity.


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Financial assetsInitial recognitionA financial asset is recognised in the Balance Sheet when the Company becomes party to the contractualprovisions of the instrument.

Initial measurementAt initial recognition, the Company measures a financial asset (which is not measured at fair value) throughprofit or loss at its fair value plus or minus transaction costs that are directly attributable to the acquisition orissue of the financial asset.

Subsequent measurementFor the purpose of subsequent measurement, financial assets are classified into:A. Financial assets measured at amortised cost;B. Financial assets measured at fair value through profit or loss (FVTPL); andC. Financial assets measured at fair value through other comprehensive income (FVTOCI).

The Company classifies its financial assets in the above mentioned categories based on:A. The Company’s business model for managing the financial assets, andB. The contractual cash flows’ characteristics of the financial asset.

A financial asset is measured at amortised cost if both of the following conditions are met:A. The financial asset is held within a business model whose objective is to hold financial assets in order to

collect contractual cash flows andB. The contractual terms of the financial assets give rise on specified dates to cash flows that are solely

payments of principal and interest (SPPI) on the principal amount outstanding.

Amortised cost of a financial asset or financial liability means the amount at which the financial asset orfinancial liability is measured at initial recognition minus the principal repayments, plus or minus the cumulativeamortisation using the effective interest rate (EIR) method of any difference between that initial amount and thematurity amount and, for financial assets, adjusted for any loss allowance.

Financial assets are subsequently measured at amortised cost using the EIR method. Amortised cost iscalculated by taking into account any discount or premium on acquisition and fees or costs that are an integralpart of the EIR. The EIR amortisation is included in finance income through profit or loss. The losses arisingfrom impairment are recognised through profit or loss.

A financial asset is measured at FVTOCI if both of the following conditions are met:A. The financial asset is held within a business model whose objective is achieved by both collecting the

contractual cash flows and selling financial assets andB. The asset’s contractual cash flows represent SPPI.

A financial asset is measured at FVTPL unless it is measured at amortised cost or at FVTOCI. In addition, theCompany may elect to designate a financial asset, which otherwise meets amortized cost or FVTOCI criteria,as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement orrecognition inconsistency (referred to as ‘accounting mismatch’).

Trade receivablesTrade receivables are recognised initially at fair value and subsequently measured at amortised cost, lessprovision for impairment.

Equity instrumentsAll equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held fortrading are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocableelection to present subsequent changes in the FVTOCI. The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on theinstrument, excluding dividends, are recognized in the Other Comprehensive Income (OCI). On sale ofinvestments, cumulative gain or loss is recognised in OCI and the amount is not reclassified to profit or loss.


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Equity instruments included within the FVTPL category are measured at fair value with all changes recognisedthrough Profit or Loss.

The company has elected to measure its equity instrument through FVTOCI.

DerecognitionA financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)is primarily derecognised (i.e. removed from the Company's Balance Sheet) when:A. The contractual rights to the cash flows from the financial asset have expired, orB. The Company has transferred its rights to receive cash flows from the asset or has assumed an

obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either

i) The Company has transferred substantially all the risks and rewards of the asset, orii) The Company has neither transferred nor retained substantially all the risks and rewards of the asset,

but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When ithas neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control ofthe asset, the Company continues to recognise the transferred asset to the extent of the Company’s continuinginvolvement. In that case, the Company also recognises an associated liability. The transferred asset and theassociated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the originalcarrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assetsThe Company assesses impairment based on expected credit loss (ECL) model to the following:A. Financial assets measured at amortised costB. Financial assets measured at FVTOCI

ECLs are measured through a loss allowance at an amount equal to:A. The 12-months ECLs (ECLs that result from those default events on the financial instrument that are possible

within 12 months after the reporting date); orB. Full time ECLs (ECLs that result from all possible default events over the life of the financial instrument).

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables. Itrecognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

The Company uses a provision matrix to determine impairment loss allowance for trade receivables. The provisionmatrix is based on its historically observed default rates over the expected life of the trade receivable and is adjustedfor forward looking estimates. At every reporting date, the historical observed default rates are updated and changes inthe forward-looking estimates are analysed.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines whether therehas been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-months ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL isused. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significantincrease in credit risk since initial recognition, then the Company reverts to recognising impairment loss allowancebased on 12-months ECL.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in theStatement of Profit and Loss. The Balance Sheet presentation for various financial instruments is described below:A. Financial assets measured as at amortised cost and contractual revenue receivables minus ECL is presented

as an allowance, i.e., as an integral part of the measurement of those assets in the Balance Sheet. Theallowance reduces the net carrying amount. Until the asset meets write-off criteria, the company does notreduce impairment allowance from the gross carrying amount.

B. Financial assets measured at FVTOCI - Since financial assets are already reflected at fair value, impairmentallowance is not further reduced from its value. Rather, ECL amount is presented as accumulated impairmentamount in the OCI.


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For assessing increase in credit risk and impairment loss, the Company combines financial instruments on thebasis of shared credit risk characteristics with the objective of facilitating an analysis that is designed to enablesignificant increases in credit risk to be identified on a timely basis.

Financial LiabilitiesInitial recognition and measurementAll financial liabilities are recognised initially at fair value and, in case of loans and borrowings and payables,net of directly attributable transaction costs.

Subsequently, all financial liabilities are measured at amortised cost or at FVTPL. The Company’s financialliabilities include trade and other payables, loans and borrowings including bank overdrafts.

Subsequent measurementA. Financial liabilities measured at amortised costB. Financial liabilities subsequently measured at FVTPLFinancial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initialrecognition as at FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose ofrepurchasing in the near term. Gains or losses on liabilities held for trading are recognised through profit or loss.

Financial liabilities designated upon initial recognition at FVTPL are designated as such at the initial date ofrecognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair valuegains/ losses attributable to changes in own credit risk are recognized in OCI. These gains / loss as are notsubsequently transferred to Profit or loss. However, the Company may transfer the cumulative gain or losswithin equity. All other changes in fair value of such liability are recognised in the Statement of Profit and Loss.The Company has not designated any financial liability as at FVTPL.

Trade and other payablesThese amounts represent liability for goods and services provided to the Company prior to the end of financialyear which are unpaid. Trade and other payables are presented as current liabilities unless payment is notdue within 12 months after the reporting period. They are recognised initially at fair value and subsequentlymeasured at amortised cost using the EIR method.

DerecognitionA financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.When an existing financial liability is replaced by another such liability from the same lender on substantiallydifferent terms, or the terms of an existing liability are substantially modified, such an exchange ormodification is treated as the derecognition of the original liability and the recognition of a new liability. Thedifference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

(k) Offsetting financial instrumentsFinancial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet when,and only when, there is a legally enforceable right to offset the recognised amount and there is intention eitherto settle on net basis or to realise the assets and to settle the liabilities simultaneously. The legallyenforceable right must not be contingent on future events and must be enforceable in the normal course ofbusiness and in the event of default, insolvency or bankruptcy of the Company or counterparty.

(l) Fair value measurementThe Company measures certain financial instruments at fair value at each Balance Sheet date. The fair valuemeasurement is based on the presumption that the transaction to sell the asset or transfer the liability takesplace either:A. In the principal market for the asset or liability, orB. In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of anasset or a liability is measured using the assumptions that market participants would use when pricing theasset or liability, assuming that market participants act in their best economic interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficientdata are available to measure fair value, maximising the use of relevant observable inputs and minimising theuse of unobservable inputs.


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All assets and liabilities for which fair value is measured or disclosed in the financial statements arecategorised within the fair value hierarchy, described as under, based on the lowest level input that issignificant to the fair value measurement as a whole:A. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.B. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value

measurement is directly or indirectly observable.C. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value

measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Companydetermines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation(based on the lowest level input that is significant to the fair value measurement as a whole) at the end ofeach reporting period.

This note summarises the accounting policy for fair value. Other fair value related disclosures are given in therelevant notes.A. Note 2.02- Fair valuation of investment propertiesB. Note 2.15- Fair valuation of non-current assets held for saleC. Note 2.25- Measurement of employee defined benefit obligationsD. Note 2.45- Disclosures for valuation methods, significant estimates and assumptionsE. Note 2.45- Quantitative disclosures of fair value measurement hierarchyF. Note 2.45- Financial instruments (including those carried at amortised cost)G. Note 2.45- Fair valuation of investments

(m) InventoriesStores, chemicals, spares, fuel and loose tools are valued at cost. Cost is ascertained on weighted averagemethod.

Raw materials, mined ore, goods-in-process and finished products are valued at lower of total cost incurred atrespective project or net realizable value item-wise. Cost is ascertained on First In First Out basis. Whilevaluing inventories, the inter unit profit is eliminated at corporate level, if any. Further, the Company does notvalue the stock of by-products lying at various project sites.

Spares (not meeting the definition of PPE) are accounted as inventory and expensed to the Statement ofProfit and Loss when issued for consumption.

(n) Employee benefits(i) Short term employee benefit obligations

Liabilities for wages, salaries, including non-monetary benefits that are expected to be settled whollywithin 12 months after the end of the period in which the employees render the related services arerecognised in respect of employees' services up to the end of the reporting period and are measured atthe amounts expected to be paid when the liabilities are to be settled. The liabilities are presented ascurrent employee benefit obligations in the Balance Sheet.

(ii) Other long term employee benefit obligationsThe liabilities for earned leave and sick leave are not expected to be settled wholly within 12 monthsafter the end of the period in which employees render the related service. They are therefore measuredat the present value of expected future payments to be made in respect of services provided byemployees up to the end of reporting period using the projected unit credit method. The benefits arediscounted using the market yield at the end of reporting period that have terms approximating to theterms of related obligation. Remeasurement as a result of experience adjustments and changes inactuarial assumptions are recognised in the Statement of Profit and Loss.

The obligations are presented as current liabilities in the Balance Sheet if the Company does not haveunconditional right to defer settlement for at least 12 months after the reporting period, regardless ofwhen the actual settlement is expected to occur.

Compensation paid to the legal heirs of deceased employee while in service is charged to Statement ofProfit and Loss as and when the liability arises.


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The principal amount and interest thereon in respect of House Building Advance in case of deceasedemployee while in service is written off as and when intimation is received.

(iii) Post-employment obligationsThe Company operates the following post-employment schemes:A. Defined benefit plans such as gratuity; andB. Defined contribution plan such as provident fund etc.

Gratuity obligationsThe liability or asset recognised in the Balance Sheet in respect of defined benefit gratuity plans ispresent value of the defined benefit obligation at the end of the reporting period less the fair value of planassets. The defined benefit obligation is calculated annually by actuaries using the projected unit creditmethod.

The present value of the defined benefit obligations is determined by discounting the estimated future cashoutflows by reference to market yields at the end of the reporting period on government bonds that haveterms approximating to the terms of the related obligation. The net interest cost is calculated by applyingthe discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. Thiscost is included in employee benefit expenses in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarialassumptions are recognised in the period in which they occur, directly in OCI. They are included inretained earnings in the Statement of Changes in Equity and in the Balance Sheet. Changes in presentvalue of the defined benefit obligation resulting from plan amendment or curtailments are recognisedimmediately in profit or loss as past service cost.

Provident FundThe Company pays provident fund contributions to GMDC Employees Provident Fund Trust. The Companyhas no further payment obligations once the contributions have been paid. The contributions areaccounted for as defined contribution plans and the contributions are recognised as employee benefitexpenses when they are due. Prepaid contributions are recognised as an asset to the extent that a cashrefund or a reduction in the future payment is available.

Reimbursement of losses and other related expenses to Provident Fund Trust are charged to theStatement of Profit and Loss as and when crystallized.

(iv) Termination benefitsCompensation to employees who have opted for retirement under the voluntary retirement scheme ofthe Company is charged to Statement of Profit and Loss in the year of separation.

(o) Foreign currency transactions(i) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economicenvironment in which the Company operates ('the functional currency'). The standalone financial statementsare presented in Indian rupee (INR), which is the Company's functional and presentation currency.

(ii) Transactions and balancesForeign currency transactions are translated into the functional currency using the exchange rates at thedate of the transactions. Foreign exchange gains and losses resulting from the settlement of suchtransactions and from the translation of monetary assets and liabilities denominated in foreigncurrencies at the year-end exchange rates are generally recognised in profit or loss.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in theStatement of Profit and Loss. All other foreign exchange gains and losses are presented in theStatement of Profit and Loss on a net basis within other income or other expenses.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translatedusing the exchange rates at the dates of the initial transactions. Non-monetary items that are measuredat fair value in a foreign currency are translated using the exchange rates at the date when the fair value


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was determined. Translation differences on assets and liabilities carried at fair value are reported as part ofthe fair value gain or loss.

(p) Revenue recognitionInd AS 115 specifies a uniform, five-step model for revenue recognition, which is generally to be applied to allcontracts with customers. Revenue from contract with customer is recognised when control of goods orservices is transferred to customer. Revenue is measured at the price which company expects to be entitled inexchange for those goods or service. Amounts disclosed as revenue are net of the amounts collected on behalfof third parties.

The Company recognizes revenue from sale of goods measured at the fair value of the consideration received orreceivable, upon satisfaction of performance obligation which is at a point in time when control of the goods istransferred to the customer, generally on delivery of the goods. Depending on the terms of the contract, whichdiffers from contract to contract, the goods are sold on a reasonable credit term. As per the terms of thecontract, consideration that is variable, according to Ind AS 115, is estimated at contract inception and updatedthereafter at each reporting date or until crystallisation of the amount.

Sales include amounts in respect of royalty, transportation, packing charges, generation based incentives, GSTcompensatory cess, mine closure charges wherever applicable and other taxes or duties, if any, but excludesGST. Sales are reduced to the extent of the amount of cash discount.

The liquidated damage/penalty, if any, on capital contracts are generally determined on completion of contractand the same is recognised in the Statement of Profit and Loss. Liquidated damages/penalty on long termrevenue contracts are determined at the end of one year from the date of award of contracts and the same isrecognised in the Statement of Profit and Loss.

Revenues from contracts priced on a time and material basis are recognised on satisfaction of performanceobligation towards rendering of such services.

In respect of power plants, Unscheduled Interchange (UI) Charges and Generation Based Incentives (GBI)are recognized as and when the same are received / incurred by the Company.

Interest income from a financial asset is recognised when it is probable that future economic benefit will flowto the Company and the amount of income can be measured reliably. Interest income is accrued on a timebasis, by reference to the principal outstanding and at the EIR applicable, which is the rate that exactlydiscounts estimated future cash flows through the expected life of the financial asset to that asset’s grosscarrying amount on initial recognition.

Dividend income is accounted for when the right to receive the same is established, which is generally whenthe shareholders approve the dividend.

(q) Government grantsGrants from the Government are recognised at their fair value where there is a reasonable assurance that thegrant will be received and the Company will comply with all attached conditions.

Government grants relating to income are deferred and recognised in the Statement of Profit and Loss over the periodnecessary to match them with the costs that they are intended to compensate and presented within the other income.

Government grants relating to purchase/construction of items of PPE or investment properties are deducted fromthe cost of purchase/ construction in arriving at the carrying amount of the related asset in line with Ind AS 20.

(r) Stripping CostsExpenditure incurred on removal of mine waste materials (overburden) necessary to extract the lignitereserves is referred to as stripping cost. The Company has to incur such expenses over the life of the mineas technically estimated.

Where, the company has awarded “unit rate” based contracts for overburden removal and lignite extraction,stripping cost is charged on technically evaluated average stripping ratio at each plot of mine after dueadjustment for stripping activity on FIFO basis in the Statement of Profit & Loss under the head “ Loading oflignite and overburden removal”.

Balance amount in stripping activity adjustment account is shown in the Balance Sheet under the head “OtherNon-Financial Assets/ Provisions” as the case may be.


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(s) TaxationIncome taxThe income tax expense or credit for the period is the tax payable on the current period's taxable incomebased on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributableto temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted atthe end of the reporting period. Current income tax assets and liabilities are measured at the amountexpected to be recovered from or paid to the taxation authorities, based on the rates and tax laws enacted orsubstantively enacted, at the reporting date. Current tax items are recognised in correlation to the underlyingtransaction either in OCI or directly in equity.

Deferred taxDeferred tax is provided in full on temporary difference arising between the tax bases of the assets andliabilities and their carrying amounts in standalone financial statements.

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enactedby the end of the reporting period and are expected to apply when the related deferred income tax asset isrealised or the deferred income tax liability is settled. Deferred tax assets are recognised for all deductibletemporary differences and unused tax losses only if it is probable that future taxable amounts will be availableto utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current taxassets and liabilities and when the deferred tax balances relate to the same taxation authority. Current taxassets and tax liabilities are offset where the Company has a legally enforceable right to offset and intendseither to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax are recognised in the Statement of Profit and Loss, except to the extent that it relates toitems recognised in OCI or directly in equity. In this case, the tax is also recognised in OCI or directly in equity,respectively. Any tax credit available is recognised as deferred tax to the extent that it is probable that futuretaxable profit will be available against which the unused tax credits can be utilised. The said asset is created byway of credit to the Statement of Profit and Loss and shown under the head deferred tax asset.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that itis no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset tobe utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to theextent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Transition to appendix C of Ind AS 12:With effect from 1st April, 2019 the Ministry of Corporate Affairs has notified IFRIC 23 as Appendix C to Ind AS12 which shows as to how uncertainty over tax treatments would affect the accounting for income taxes. Thecompany considers on the Balance Sheet date whether it is probable that taxation authority will accept anuncertain tax position and based on the probability of likelihood of events company recognises additional taxliability, if any, and cumulative effect thereof is given in opening equity without adjusting comparative information.

(t) Provisions, contingent liabilities and contingent assetsProvisions are recognised at present value when the Company has a present obligation (legal or constructive)as a result of a past event, it is probable that an outflow of resources embodying economic benefits will berequired to settle the obligation and a reliable estimate can be made of the amount of the obligation. Theexpense relating to a provision is presented in the Statement of Profit and Loss net off reimbursement, if any.

Decommissioning costs are provided at the present value of expected costs to settle the obligation usingestimated cash flows and are recognised as part of the cost of PPE. The cash flows are discounted at acurrent pre-tax rate that reflects the risk specific to the decommissioning liability. The unwinding of discount isexpensed as incurred and recognised in the Statement of Profit and Loss as a finance cost. The estimatedfuture costs of decommissioning are reviewed annually and adjusted as may be appropriate. Changes in theestimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.

Progressive mine closure expenses are accounted for as and when incurred.

In respect of lignite mines the annual mine closure cost per hectare is provided as per the mine closure


85

guidelines issued by the Ministry of Coal from time to time. Such annual cost is required to be modified withreference to Wholesale Price Index (WPI) as mentioned and considered in the mine closure plan submitted /approved for the respective mines. The mine closure provisions are required to be provided in line with theapproved / submitted / prepared/draft mine closure plans. In case the mine closure plan has not beensubmitted / approved / prepared the annual cost is estimated based on the above referred guidelines.

In respect of mines other than lignite mines, mine closure activities are carried out as per the approved /submitted / prepared/draft mine closure plans. However, in the absence of specific guidelines by IndianBureau of Mines(IBM) for making provision for the annual mine closure cost per hectare, financial assurancein the form of Bank Guarantee of requisite amount is submitted to IBM. A certificate/confirmation is obtainedfrom our technical division for mine closure activities carried out by the company either departmentally orthrough outside agencies. Expenses incurred departmentally on mine closure activities are charged to therespective head of expenses and provision is made for shortfall therein, if advised by the technical division.

Contingent liabilities are not provided for, If material, are disclosed by way of notes to accounts. Contingentassets are not recognised in financial statements. However, the same is disclosed, where an inflow ofeconomic benefit is probable.

(u) Cash and Cash EquivalentsCash and cash equivalents comprise cash and short term deposits. The Company considers all highly liquidinvestments with original maturity of three months or less and that are readily convertible to known amountsof cash to be cash equivalents.

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash onhand, other short term, highly liquid investments with original maturities of three months or less that are readilyconvertible to known amounts of cash and which are subject to an insignificant risk of changes in value, andbank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.

(v) Statement of Cash FlowsCash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects oftransactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts orpayments and item of income or expenses associated with investing or financing cash flows. The cash flowsfrom operating, investing and financing activities of the Company are segregated.

(w) DividendsThe Company recognises a liability for dividends to equity holders of the Company when the dividend is authorisedand the dividend is no longer at the discretion of the Company. As per the corporate laws in India, dividend isauthorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

(x) Segment ReportingThe Chief Operational Decision Maker (CODM) monitors the operating results of its business segmentsseparately for the purpose of making decisions about resource allocation and performance assessment.Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss inthe financial statements. Operating segments are reported in a manner consistent with the internal reportingprovided to the CODM.

Accordingly, the Board of Directors of the Company is CODM for the purpose of segment reporting. Refernote 2.43 for segment information presented.

(y) Events occurring after the Balance sheet DateAdjusting events (that provides evidence of condition that existed at the Balance Sheet date) occurring after theBalance Sheet date are recognized in the financial statements. Material non adjusting events (that are inductive ofconditions that arose subsequent to the Balance Sheet date) occurring after the Balance Sheet date thatrepresents material change and commitments affecting the financial position are disclosed in the Board’s Report.

(z) Exceptional ItemsCertain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinaryactivities of the Company is such that its disclosure improves the understanding of the performance of theCompany, such income or expense is classified as an exceptional item and accordingly, disclosed in thenotes accompanying to the financial statements.


86

2.01

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87

Capital Work-in-progress: ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Cost or deemed costBalance at the beginning of the Year 209.68 1,199.93Add: Addition during the Year 789.56 344.22Less: Transferred to Property, Plant & Equipments (436.48) (1,334.47)Closing gross carrying value 562.76 209.68Accumulated Impairment AllowanceBalance at the beginning of the Year 133.23 133.23Add: Addition during the Year - -Closing Accumulated Impairment Allowance 133.23 133.23Closing net carrying value 429.53 76.45

Break-up of Capital Work-in-progress for the year ended 31st March, 2020 is given here under: ( in Lakh)Segment Civil Work Non-Civil Work TotalMining 45.76 - 45.76Power 252.52 - 252.52Unallocable 131.25 - 131.25Total 429.53 - 429.53Previous Year 35.50 40.95 76.45

2.01.01 Gujarat State Electricity Corporation Limited (GSECL) and the Company had agreed to create commonamenities (school, hospital, drinking water supply, communication, transport facilities, etc.) for theemployees of both entities and also for general public in Panandhro in terms of minutes dated8.10.1991, 3.8.1992, 1.10.1993. These were to be managed by a Trust to be registered in this regard.Pending formation of the Trust, the capital and revenue expenditure incurred by the Company as wellas GSECL are shared on 50:50 basis and accounted in the books of the respective entity. Share of50% given by each against the expenditure incurred by respective entity is subject to confirmation andadjustments, if any. Pending transfer of such assets to the Trust, capital expenditure incurred in thecreation of items of property, plant and equipment towards 50% share of the Company to the tuneof 59.40 Lakh (P.Y. 59.40 Lakh) is accounted in the books of the Company and included in therespective items of property, plant and equipment.

2.01.02 Refer Note No.2.49 (a) for reclassification of assets initially determined as Prepaid Expenses as per INDAS 17, now considered as Land - Lease hold as per IND AS 116.

2.02 INVESTMENT PROPERTIES ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Freehold land 1,669.00 1,669.00Building 7,389.86 7,514.13Total investment properties 9,058.86 9,183.13

( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Freehold landCost or deemed costBalance at the beginning of the Year 1,669.00 1,669.00Closing net carrying value 1,669.00 1,669.00


88


31st March, 2020 31st March, 2019BuildingCost or deemed costBalance at the beginning of the Year 7,876.97 7,856.54Add: Addition/(adjustments) during the Year (0.52) 20.43Closing gross carrying value 7,876.45 7,876.97Accumulated depreciationBalance at the beginning of the Year 362.84 238.47Add: Addition during the Year 123.75 124.37Closing accumulated depreciation 486.59 362.84Closing net carring value 7,389.86 7,514.13

2.02.01 Amount recognised in Statement of Profit and Loss for investment properties ( in Lakh)Particulars 2019-20 2018-19Rental income* - -Direct operating expenses from property that generatedrental income - -Direct operating expenses from property that did notgenerate rental income - -Profit/(Loss) from investment properties before depreciation - -Depreciation (123.75) (124.37)Profit/(Loss) from investment properties (123.75) (124.37)* Fixation of the rent of investment property is under process.

2.02.02 Fair Value ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Investment Properties 11,683.95 11,683.95

Estimation of Fair ValueThe Company obtains valuation for its investment properties (other than those under construction) at leastannually. All resulting fair value estimates for investment properties are included in level 3. For propertiesunder construction, management is of the view that the fair value can be determined reliably only oncompletion of the construction. Accordingly, the same shall be disclosed when the related work is completed.

2.03 OTHER INTANGIBLE ASSETS ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Computer Softwares 226.40 264.53Mining Rights 34,950.72 35,511.63Total intangible assets 35,177.12 35,776.16


89


31st March, 2020 31st March, 2019Computer SoftwaresCost or deemed costBalance at the beginning of the Year 356.31 156.31Add: Addition during the Year - 200.00Closing gross carrying value 356.31 356.31Accumulated amortisationBalance at the beginning of the Year 91.78 55.75Add: Addition during the Year 38.13 36.03Closing accumulated amortisation 129.91 91.78Closing net carrying value 226.40 264.53


31st March, 2020 31st March, 2019Mining RightsCost or deemed costBalance at the beginning of the Year 42,470.11 37,741.32Add: Addition during the Year 116.10 4,728.79Closing gross carrying value 42,586.21 42,470.11Accumulated amortisationBalance at the beginning of the Year 6,958.48 5,733.00Add: Addition during the Year 677.01 1,225.48Closing accumulated amortisation 7,635.49 6,958.48Closing net carrying value 34,950.72 35,511.63

2.03.01 Mining Rights includes lease hold as well as freehold land used for mining purpose. Amortisation onmining rights represents depletion on wasting assets.

2.03.02 As per technical estimation useful life of computer software , other than internally generated intangibleassets is 10 years. It is amortized as per Straight Line Method over its useful life.

2.04 INVESTMENT IN ASSOCIATES AND JOINT VENTURES ( in Lakh)

Particulars As at As at31st March, 2020 31st March, 2019

Non-CurrentInvestments in unquoted equity shares of jointventure companies (measured at amortised cost)2,497 (31st March, 2019: 2,497) Fully Paid Up EquityShares of 100 each of Naini Coal Co. Limited 2.50 2.5025,000 (31st March, 2019: 25,000) Fully Paid UpEquity Shares of 10 each of Swarnim GujaratFluorspar Pvt. Ltd. 2.50 2.5050,000 (31st March, 2019: 50,000) Fully Paid UpEquity Shares of 10 each of Gujarat Foundation forEntrepreneurial Excellence 5.00 5.00


90


Investment in unquoted equity shares of associatecompanies (measured at amortised cost)1,90,840 (31st March, 2019: 1,90,840) Fully Paid UpEquity Shares of 10 each of Gujarat Jaypee Cementand Infra Ltd. 19.08 19.0849,40,000 (31st March, 2019: 49,40,000) Fully PaidUp Equity Shares of 10 each of Gujarat CredoMineral Industries Ltd. 494.00 494.0038,98,700 (31st March, 2019: 38,98,700) Fully PaidUp Equity Shares of 10 each of Aikya ChemicalsPvt. Ltd. 389.87 389.87Less: Provision for Impairment(For investment in Equity Shares of Naini Coal Co. Ltdand Gujarat Jaypee Cement and Infra Ltd.) (21.58) (21.58)Total 891.37 891.37

2.04.01 Approval of Government of Gujarat has been obtained vide letter dated 06th August, 2018 for the closure ofNaini Coal Co. Ltd and closure process thereof is in progress.

2.05 INVESTMENTS ( in Lakh)


Non-CurrentInvestment in quoted equity shares of othercompanies measured at fair value through othercomprehensive income (FVTOCI)41,45,433 (31st March, 2019: 41,45,433) Fully Paid UpEquity Shares of 10 each of Gujarat Alkalies &Chemicals Ltd. 9,260.90 20449.4250,00,000 (31st March, 2019: 50,00,000) Fully Paid UpEquity Shares of 2 each of Gujarat State Fertilisers &Chemicals Ltd. 1,830.00 5,212.509,35,600 (31st March, 2019: 9,35,600) Fully Paid UpEquity Shares of 10 each of Gujarat State FinancialCorporation Ltd. 187.12 187.123,12,715 Fully Paid Up Equity Shares of 2 each ofBank of Baroda (31st March, 2019: 7,77,900 fully paid upequity share of 10 each of Vijaya Bank) 167.46 389.34Investment in unquoted equity shares of othercompanies measured at fair value through othercomprehensive income (FVTOCI)10,00,000 (31st March, 2019: 10,00,000) Fully Paid UpEquity Shares of 10 each of Gujarat Informatics Ltd. 810.00 790.003,900 (31st March, 2019: 3,900) Fully Paid Up EquityShares of 100 each of Gujarat Industrial TechnicalConsultancy Organization Ltd. 99.50 92.2674,25,000 (31st March, 2019: 74,25,000) Fully Paid UpEquity Shares of 10 each of Gujarat Guardian Ltd. 10,631.86 12,707.892,61,72,800 (31st March, 2019: 2,61,72,800) Fully Paid


91


Up Equity Shares of 1 each of Gujarat State PetroleumCorporation Ltd. 2,253.48 2,095.751 (31st March, 2019: 1) Fully Paid Up Equity Share of

10 of Gujarat State Electricity Corporation Ltd. havingfair value of 12.01/- - -Less: Provision for Impairment(for investments in Equity Sharesof Gujarat State Financial Corporation Limited) (187.12) (187.12)Total Non-Current Investments 25,053.20 41,737.16

Aggregate amount of quoted investments 11,258.36 26,051.26Aggregate market value of quoted investments 11,258.36 26,051.26Aggregate amount of unquoted investments 13,794.84 15,685.90

2.05.01 Investments measured at fair value through Other Comprehensive Income (FVTOCI) reflect investmentsin unquoted and quoted equity securities. Refer Note 2.45 for determination of their fair values.

2.05.02 As per the Memorandum of Understanding (MOU) dated 30th March, 1995 entered into with the GujaratIndustrial Investment Corporation Ltd (GIIC), the said company had to repurchase 16 Lakh number ofshares of Gujarat Alkalies & Chemicals Limited (GACL) purchased by the Company from GIIC by 30thMarch, 1998 at an agreed price consisting of cost plus interest @ 14% per annum and service charge @0.25% per annum less dividend, bonus and rights, etc. received thereon. GIIC has proposed to enter intoa Supplementary MOU by virtue of which GIIC will not be required to repurchase the above shares andthe Company shall hold these shares as investment. The Board of Directors of the Company and GIIChave agreed to enter into Supplementary MOU for which proposal has been sent to the Govt. of Gujaratfor its approval. The remaining 25.45 Lakh shares of GACL as shown in above note have been purchasedby the Company from the open market.

2.05.03 Vijaya Bank has been merged with Bank of Baroda(BOB) on 01st April,2019 and the company has beenallotted 3,12,715 equity shares of 2/- each fully paid of BOB on 8th April 2019 against 7,77,900 equityshares of 10/- each fully paid of Vijaya Bank.

2.05.04 During the previous year Bhavnagar Energy Co Ltd (BECL) was merged with Gujarat State ElectricityCorporation Ltd (GSECL) vide notification dated 27th August, 2018 issued by Energy and PetrochemicalsDepartment, Government of Gujarat. The Company was given one share of GSECL of 10 fully paidhaving fair value of 12.01 against the total investment of 29,765.00 lakh in 29,76,50,000 equity sharesof BECL 10 each fully paid. Therefore there was a loss on investment of 29,765.00 lakh was writtenoff in the previous year and has been shown as an exceptional item in the Statement of Profit and Loss.

2.06 NON-CURRENT LOANS* ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Loans and advances to employees Unsecured, considered good 192.52 205.79Other loans and advances to related parties Doubtful 1,625.00 1,625.00 Less: Provision for impairment (1,625.00) (1,625.00)Total Non-Current Loans 192.52 205.79* Refer note 2.45 for classification

2.06.01 Naini Coal Company Ltd. is a 50:50 joint venture of the Company and Pondicherry Industrial PromotionDevelopment Investment Corp Ltd. (PIPDIC). Naini Coal Company Ltd had given Bank Guarantee of

6,500 Lakh to Coal Ministry, Govt of India for allocation of Naini Coal block in the State of Odisha. Thesaid bank guarantee was secured by Corporate Guarantee of the Company for an amount of 3,250


92

Lakh and another 3,250 Lakh was secured by Bank Guarantee of UCO Bank,arranged by PIPDIC.Ministry of Coal, Govt of India has invoked 50% of Bank Guarantee i.e. 3,250 Lakh given by the NainiCoal Company Ltd. vide their letter dated 27th December, 2012 due to non-compliance of some termsand conditions of Naini Coal block allocation. The Company had discharged its liability of 1,625 Lakhtowards invoked Bank Guarantee and has accounted for the same as advance to Naini Coal CompanyLtd. Total provision for impairment made for advances to Naini Coal Company Ltd. amounts to 1,625Lakh (2018-19: 1,625 Lakh).

The Company filed special civil application before the Hon'ble High court of Gujarat against arbitrarycancellation of coal block as well as invocation of Bank Guarantee. During the pendency of petition beforethe Hon'ble High court of Gujarat, the Hon'ble Supreme Court has cancelled all the coal blocks. Therefore,the petition with the Hon'ble High court of Gujarat was pending in respect of invocation of Bank Guaranteeof 1,625 Lakh only. The Hon'ble High court of Gujarat vide its judgement and order dated 31st July,2019has rejected the relief sought by the Company for seeking refund of Bank Guarantee.

In view thereof the company has prefered civil suit before Ld. Small Cause Court, Ahmedabad for recoveryof 1,625 Lakh given as Bank Guarantee. The suit is subjudicial before the above court at Ahmedabad.

2.07 OTHER NON-CURRENT FINANCIAL ASSETS* ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Unsecured, considered goodSecurity deposits 389.65 403.40Deposits with Corporate Bodies 20,646.97 14,540.71Balance with banks in Escrow Accounts 57,353.55 53,623.27Others 543.49 567.67DoubtfulDeposits with Corporate Bodies 4,212.40 4,212.40Less: Provision for impairment (4,212.40) (4,212.40)Total Other Non-Current Financial Assets 78,933.66 69,135.05* Refer note 2.45 for classification

2.07.01 Details of Mine Closure Provision and deposits there against ( in Lakh)Project Name Provisions in Books of Accounts upto

31st March, 2020 31st March, 2019Umarsar 5,326.40 4,172.25Rajpardi 3,141.45 2,598.18Tadkeshwar 6,793.19 5,640.99Mata No Madh 14,282.62 14,282.62Bhavnagar 9,766.41 8,109.93Panandhro* 11,399.20 11,399.20

Project Name Principal amount in Amount Paid during Total amount paidescrow account April & May, 2020 till signing of

31st March, 2020 31st March, 2019 Balance SheetUmarsar 6,433.13 6,433.13 1,267.44 7,700.57Rajpardi 2,729.09 2,729.09 549.81 3,278.90Tadkeshwar 5,918.63 5,918.63 1,166.08 7,084.71Mata No Madh 14,282.76 14,282.76 - 14,282.76Bhavnagar 8,509.09 8,509.09 1,676.44 10,185.53Panandhro* 9,600.00 9,600.00 - 9,600.00

*2.07.02 As per the Mine Closure guidelines the amount is required to be deposited in Escrow Account with a scheduledbank. The Company has opened the Escrow accounts for its all six lignite mines and deposited the amount.


93

For its Panandhro mine, the company has deposited an amount of 9,600 lakh in escrow account as percalculation accepted by Office of the Coal Controller of India as against provision of 11,399.20 lakh as perdraft mine closure plan. Necessary effect in the provision for mine closure will be given in the books ofaccount after the acceptance of mine closure plan of the said mine by Ministry of Coal, Government of India.

2.07.03 The company was required to deposit in Escrow Account with scheduled bank amount as per the approvedmine plan by 31st March,2020. However,on account of Covid-19 the company could deposit the same byMay, 2020 as shown in the above table.

2.07.04 It was observed by the Office of the Accountant General(AG) on the audited financial statements of thecompany for the Financial Year 2018-19, in respect of Bhavnagar Mines for understatement of provisionfor mine closure and overstatement of profit by 13.27 Crore and understatement of Balance with Banksin Escrow Account as well as of Cash and Cash equivalents by 13.93 Crore and assurance was givenby the company to refer the matter to the Office of the Coal Controller of India(CCI) for their finalconclusion. Accordingly, the matter has been referred to CCI and the final decision thereto is still awaited.Necessary adjustment, if any, will be made in the accounts after final outcome of the matter.

2.07.05 As per the technical certificate the company has carried out mine closure activities and incurred expensesduring the year as per mine plan in respect of all the metallic-ferrous(non-lignite) mines eitherdepartmentally or through outside agencies and compliances are verified periodically by IBM authoritiesmandated by the Government of India.

2.08 OTHER NON-CURRENT NON-FINANCIAL ASSETS ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Capital advances 2,089.95 2,089.95Balances with Government Authorities 1,969.66 1,685.45Advance income tax and TDS (net of provision) 43,309.35 36,532.43Prepaid expenses - 1,069.76Stripping Activity Adjustment Assets - 3,328.13Total Other Non-Current Non-Financial Assets 47,368.96 44,705.72

2.09 INVENTORIES ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019CurrentMined ore 6,632.14 6,730.01Finished goods 0.45 0.45Stores, spares & fuel 3,411.18 3,550.43

10,043.77 10,280.89Less: Provision for obsolete stock (542.27) (477.83)

9,501.50 9,803.06Loose tools 10.30 10.37Total Inventories 9,511.80 9,813.43

2.10 TRADE RECEIVABLES* ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019CurrentDebts outstandingUnsecured, considered good 14,279.01 14,747.73Doubtful 97.27 97.27

14,376.28 14,845.00Less: Provision for impairment (97.27) (97.27)Total Trade Receivables 14,279.01 14,747.73* Refer note 2.45 for classification


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2.10.01 Considering the affirmations for compliance of code of conduct of the Company given by the directors andother officers of the Company, neither any trade receivables are due from directors or other officers of theCompany either severally or jointly with any other person, nor any trade receivables are due from firms orprivate companies in which any director is a partner, a director or member.

2.11 CASH AND OTHER BANK BALANCES* ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Cash and Cash EquivalentsBalances with banks In current accounts 2,611.89 1,827.76 Fixed deposit with original maturity of less than 3 months 255.25 -Cash & stamp on hand - -Others Deposits with financial institutions 4,090.23 4,050.00Total Cash and Cash Equivalents 6,957.37 5,877.76Other Bank BalancesEarmarked balances with banks Unpaid dividend account 87.87 102.34Fixed Deposit Security against guarantees 0.23 13.09 Security against other commitments 24.92 24.92 Doubtful deposits 374.00 374.00

487.02 514.35Less: Provision for impairment (374.00) (374.00)Total Bank Balanceother than Cash and Cash Equivalents 113.02 140.35* Refer note 2.45 for classification

2.11.01 Other bank balances include restricted bank balances on account of unpaid dividend, Fixed deposits forSecurity against guarantees and Security against other commitments as stated above.

Pending clearance of the title of the land, sale deed in respect of the land of the cement plant atHadad sold earlier, was not executed and an amount of 24.92 Lakh (31 March, 2019: 24.92Lakh) was recoverable from the buyer on execution of sale deed. The said amount has beendeposited by the party before the Danta Court and in turn the Court has directed to the Companyto deposit the said amount with a nationalized bank in the form of FDR with a lien marked infavour of Danta Court. Accordingly, the Company has placed the same with Union Bank of India,Vastrapur Branch, Ahmedabad.

2.12 CURRENT LOANS* ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Housing building advance to employeesUnsecured, considered good 684.30 796.35Other loans and advances to employeesUnsecured, considered good 228.77 277.96Other loans and advances to related partiesUnsecured, considered good - -Doubtful 3.00 3.00Less: Provision for impairment (3.00) (3.00)Total Current Loans 913.07 1,074.31* Refer note 2.45 for classification


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2.13 OTHER CURRENT FINANCIAL ASSETS* ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Unsecured, considered goodDeposits with Corporate Bodies 101,984.44 99,031.42Others 602.31 1,931.46Total Other Current Financial Assets 102,586.75 100,962.88* Refer note 2.45 for classification

2.13.01 The company has paid in May,2015 an amount of 37.50 lakh for 3.75 lakh shares of 10 each to StoneResearch Foundation to subscribe its shares which is included under the head "Others" above. However,no shares have been allotted by the said company so far and it has been decided to close the StoneResearch Foundation. Necessary adjustments in accounts will be made after receiving share applicationmoney and other receivables, if any.

2.14 OTHER CURRENT NON-FINANCIAL ASSETS ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Balances with Government Authorities 19,735.96 12,832.18Prepaid expenses 305.41 394.25Advances to employees / suppliers / contractors 2,619.04 1,624.47Stripping Activity Adjustment Assets 2,226.73 -Total Other Current Non-Financial Assets 24,887.14 14,850.90

2.15 ASSETS CLASSIFIED AS HELD FOR SALE ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Plant & equipments 6.83 15.79Furniture & fixtures 0.11 0.21Vehicles 0.46 0.46Office equipments 0.22 0.29Total 7.62 16.75

2.15.01 Assets classified as held for sale during the reporting period were measured at the carrying value on thedate of such classification which approximates fair value less cost to sell. Consequently, no impairmentloss was identified on these assets. There has been no material change in the value of such assets afterthe date of initial classification as assets classified as held for sale.

2.16 EQUITY SHARE CAPITAL ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019AUTHORISED SHARE CAPITAL74,50,00,000 Equity Shares (31st March 2019:74,50,00,000) of 2/- each 14,900.00 14,900.001,00,000 Preference Shares (31st March 2019:1,00,000) of 100/- each 100.00 100.00Total 15,000.00 15,000.00Issued, Subscribed & Paid-up Capital31,80,00,000 Equity Shares (31st March 2019:31,80,00,000) of 2/- each fully paid up 6,360.00 6,360.00Total 6,360.00 6,360.00


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2.16.01 The reconciliation of the number of shares outstanding is set out below:Particulars As at As at

31st March, 2020 31st March, 2019Number of shares outstanding at the beginning of year 31,80,00,000 31,80,00,000Add: Shares issued during the year - -Less : Share bought back - -Number of shares outstanding at the end of year 31,80,00,000 31,80,00,000

2.16.02 Rights, preferences and restrictions attached to Equity SharesThe Company has only one class of equity shares having a face value of 2 per share. Each holder ofequity share is entitled to one vote per share. The Company declares and pays dividend in IndianRupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in theensuing Annual General Meeting.

In respect of the Financial Year 2018-19 dividend of 2 per share was proposed and approved. Thesame was recognised as distributions to equity shareholders during the year ended 31st March, 2020(31st March 2019: 3.5 per share).

In the event of liquidation of the Company, the holders of equity shares will be entitled to remaining assetsof the Company. The distribution will be in proportion to the number of equity shares held by theshareholders.

2.16.03 Details of shareholder(s) holding more than 5% equity shares in the CompanyParticulars As at As at

31st March, 2020 31st March, 2019Number of Equity SharesGovernment of Gujarat 23,53,20,000 23,53,20,000% Holding in Equity SharesGovernment of Gujarat 74.00% 74.00%

2.17 OTHER EQUITY ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019General Reserve 271,928.96 271,928.96Retained Earnings 130,049.77 120,978.38Reserves representing unrealized gains/(losses) 13,164.29 29,302.17Total Other Equity 415,143.02 422,209.51


31st March, 2020 31st March, 2019General ReserveOpening balance 271,928.96 271,928.96Add/(Less): Amount transaferred to/(from retained earnings) - -Closing balance 271,928.96 271,928.96


31st March, 2020 31st March, 2019Retained EarningsOpening balance 120,978.38 119,775.39Impact of transition to appendix C of Ind AS 12 & Ind AS 116 (3,194.65) -Prior period adjustment - 28.26Restated opening balance 117,783.73 119,803.65


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Add:Profit during the period 20,267.74 13,868.98Remeasurement of post employment benefit obligation,net of tax (334.38) 723.55Less:Equity dividend (6,360.00) (11,130.00)Tax on dividend (1,307.32) (2,287.80)Closing balance 130,049.77 120,978.38

2.17.01 The amount that can be distributed by the Company as dividends to its equity shareholders is determinedconsidering the requirements of the Companies Act, 2013. Thus, the amounts reported above are notdistributable in entirety.Reserves representing unrealized gains/(losses) ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019FVTOCI - Equity InvestmentsOpening balance 29,302.17 42,006.29Increase/(decrease) in fair value of FVTOCI -equity instruments (16,683.97) (13,924.37)Income tax on net fair value gain or loss 546.09 1,220.25Closing balance 13,164.29 29,302.17

2.17.02 The Company has elected to recognise changes in the fair value of certain investments in equitysecurities in other comprehensive income. These changes are accumulated within reserves representingunrealised gain/(losses).

2.18 OTHER NON-CURRENT FINANCIAL LIABILITIES* ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Security and other deposits liability 1,479.31 2,593.94Lease Liability 29.21 -Total Other Non-Current Financial Liabilities 1,508.52 2,593.94* Refer note 2.45 for classification

2.18.01 For majority of the security deposits received, the timing of outflow is uncertain as it depends on outcomeof the underlying contracts. Thus the same has not been discounted because their present value wouldnot represent meaningful information. The management does not believe it is possible to makeassumptions for the outcome of the contract beyond the balance sheet date.

2.19 NON-CURRENT PROVISIONS ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Provision for mine closure 45,317.73 41,200.26Provision for decommissioning obligations 2,356.62 2,171.77Total Non-Current Provisions 47,674.35 43,372.03


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2.19.01 Movements in Provisions (including current/non-current ( in Lakh)Particulars Provision for Provision for Total

mine closure decommissioningobligations

As at 1st April 2019 41,200.26 2,171.77 43,372.03Add: Unwinding of discounts - 184.86 184.86Add: Provision created during the year 4,506.34 - 4,506.34Less: Expenses incurred on progressive mine closure (388.88) - (388.88)As at 31st March 2020 45,317.73 2,356.63 47,674.36

2.19.02 As per the guidelines for preparation of Mines Closure Plan issued by the Ministry of Coal, Government ofIndia the Company has made a provision for mines closure expenses to the tune of 50,709.27 Lakh(31st March, 2019: 46,203.17 lakh) after considering the approved, submitted, prepared mine closureplans and has incurred progressive mine closure expenses of 5,391.79 Lakh (31st March, 2019:

5,002.91 lakh) so far.

2.20 NON-CURRENT NET EMPLOYEE BENEFIT LIABILITIES ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Provision for leave salary 4,241.24 3,930.57Total Non-Current Net Employee Benefit Liabilities 4,241.24 3,930.57

2.21 DEFERRED TAX LIABILITIES (NET)Deferred tax relates to the following: ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Deferred Tax LiabilitiesDue to depreciation 27,920.37 29,359.91Due to Uncertain tax positions 3,188.09 -Financial assets measured at FVTOCI - 453.26Total Deferred Tax Liabilities (A) 31,108.46 29,813.17Deferred Tax AssetsDue to disallowance u/s 43B of Income Tax Act (18,103.83) (16,092.85)Decommissioning obligations (Net) (472.26) (389.33)Straightlining of operation and maintenance expenses (957.98) (1,023.44)Due to other timing differences (345.30) (336.41)Financial assets measured at FVTOCI (92.83) -Total Deferred Tax Assets (B) (19,972.20) (17,842.03)Net Deferred Tax Liabilities (A-B) 11,136.26 11,971.14

2.21.01 Movements in Deferred Tax Liabilities (net) ( in Lakh)Particulars Due to Financial Due to Decommiss- Straightlining Due to other Due to Net

depreciation assets disallowance ioning of operation & timing Uncertain Deferredmeasured u/s 43B of obligations maintenance differences tax taxat FVTOCI Income (Net) expenses positions Liabilities

Tac ActAs at 1st April 2018 30,539.98 1,673.51 (15,605.41) (318.21) (1,011.62) (355.26) - 14,922.99Charged/(credited) - to profit or loss (1,180.07) - (876.09) (71.12) (11.82) 18.85 (2,120.25) - to other comprehensive income - (1,220.25) 388.65 - - - - (831.60)As at31st March 2019 29,359.91 453.26 (16,092.85) (389.33) (1,023.44) (336.41) - 11,971.14


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Charged/(credited) - to equity (Ind AS 116 and Ind AS 12) 3,188.09 3,188.09 - to profit or loss (1,439.54) (1,831.37) (82.93) 65.46 (8.89) - (3,297.26) - to other comprehensive income (546.09) (179.61) (725.70)As at31st March 2020 27,920.37 (92.83) (18,103.83) (472.26) (957.98) (345.30) 3,188.09 11,136.26

2.21.02 Reconciliation of tax expenses and the accounting profit multiplied by India's tax rate: ( in Lakh)Particulars 2019-20 2018-19Accounting Profit before income tax expenses 26,099.80 30,720.38Tax at the Indian tax rate of 34.944% (2018-19 - 34.944%) 9,120.31 10,734.93Tax effect of amounts which are not deductible(taxable)in calculating taxable income:Effect of income that is exempt from taxation (265.95) (252.29)Effect of expenses that are not deductible in determiningthe taxable profit 681.34 10,968.28Effect of concessions (u/s 80IA) (4,035.53) (4,602.91)Others 13.73 3.39Adjustments for the current tax of prior periods 318.16 -Income Tax Expenses at the effective income tax rateof 22.35% (2018-19: 54.85%) 5,832.06 16,851.40

2.21.03 Items of Other Comprehensive Income (OCI) ( in Lakh)Particulars 2019-20 2018-19Deferred tax related to items recognised in OCI during the year:Unrealised (gain)/loss on FVTOCI equity securities 546.09 1,220.25Net loss/(gain) on remeasurements of defined benefit plans 179.61 (388.65)Income tax charged to OCI 725.70 831.60

2.22 OTHER NON-CURRENT NON-FINANCIAL LIABILITIES ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Deferred Operation & Maintenance Liability and Others 2,039.51 2,441.94Total Other Non-Current Non-Financial Liabilities 2,039.51 2,441.94

2.23 TRADE PAYABLES* ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019CurrentTotal outstanding dues of micro enterprises andsmall enterprises - 7.49Total outstanding dues of creditors other than microenterprises and small enterprises 13,676.54 10,963.48Total Trade Payables 13,676.54 10,970.97* Refer note 2.45 for classification

2.23.01 As at 31st March, 2020, there are no outstanding dues to Micro, Small and Medium enterprisesas per confirmation received from creditors stated above. There is no interest due or outstandingon the same.


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2.24 OTHER CURRENT FINANCIAL LIABILITIES* ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Other payables (including for capital goods and services) 414.41 199.41Earnest money deposits 792.51 497.31Security and other deposits liability 3,423.91 3,307.79Lease Liability 0.98 -Other financial liabilities 5,663.82 5,360.75Total Other Current Financial Liabilities 10,295.63 9,365.26* Refer note 2.45 for classification

2.24.01 Vide Government Resolution dated 19th November, 2009, the Company has been given permission to liftManganese Ore from dumps of Shivrajpur areas and dispose of the same for which the Company isentitled to retain 20% of the sale price. The Company has to keep remaining 80% of the sale price ofManganese Ore in a separate account of Gujarat Mineral Research & Development Society (GMRDS) formineral survey and exploration. Accordingly, 376.21 Lakh (31st March, 2019: 312.04 Lakh) (i.e. 80%of the basic sale price) has been transferred during the year to GMRDS and included under the head"Other Financial Liabilities".

2.25 CURRENT NET EMPLOYEE BENEFIT LIABILITIES ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019CurrentProvision for provident fund 171.86 168.37Provision for leave salary 1,062.85 905.43Provision for gratuity 412.35 -Total Current Net Employee Benefit Liabilities 1,647.06 1,073.80

2.25.01 DISCLOSURES FOR GRATUITY & LEAVE SALARY PROVISIONS AS PER INDIAN ACCOUNTINGSTANDARD- 19Defined Contribution Plan ( in Lakh)Particulars 2019-20 2018-19Contribution to PF & other funds 1,054.93 1,100.40

Defined Benefit Plana) The following table sets out the status of the gratuity plan as required under Ind AS 19 and the

reconciliation of opening balances of the present value of the defined benefit obligation.

(i) Changes in Present Value of Obligations ( in Lakh)Particulars 2019-20 2018-19Present Value of Obligation as at the beginning of the year 14,121.77 14,277.09Current Service Cost 719.14 702.28Interest Cost 1,071.84 1,100.76Actuarial (gain) / Loss on obligations (88.29) (1,212.93)Benefits paid (1,750.13) (745.43)Past Service cost - -Present Value of Obligation as at the end of the year 14,074.33 14,121.77

(ii) Changes in the Fair Value of Plan Assets ( in Lakh)Particulars 2019-20 2018-19Fair Value of Plan Assets at the beginning of the year 14,228.37 13,155.84Expected Return on Plan Assets 1,079.93 1,014.32Actuarial Gain / (loss) on Plan Assets (602.28) (100.74)Contributions 706.09 904.38Benefits Paid (1,750.13) (745.43)Fair Value of Plan Assets at the end of the year 13,661.98 14,228.37


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(iii) The amount recognized in the Balance Sheet ( in Lakh)Particulars 2019-20 2018-19Fair Value of Plan Assets as at the end of the year 13,661.99 14,228.37Present Value of Obligations as at the end of the year (14,074.34) (14,121.77)Net Asset / (Liability) recognized in the Balance Sheet (412.35) 106.60

(iv) Amount recognized in the Statement of Profit & Loss as employee benefit expenses ( in Lakh)Particulars 2019-20 2018-19Current Service Cost 719.14 702.28Interest Cost / (income) (8.09) 86.45Expected Return on Plan Assets - -Past Service Cost - -Expenses/(Income) Recognized as part of employeebenefit expenses 711.05 788.73

(v) Amount recognized in the other comprehensive income ( in Lakh)Particulars 2019-20 2018-19Net actuarial (gain) / loss recognized in the year 513.99 (1,112.20)Expenses/(Income) Recognized in other comprehensive income 513.99 (1,112.20)

(vi) Investment detailsParticulars % Invested as at

31-Mar-20 31-Mar-19Funds with L.I.C. (% Invested) 100.00% 100.00%

(vii) Assumption detailsParticulars 31-Mar-20 31-Mar-19Mortality Rate during employment Indian Assured lives Indian Assured lives

mortality (2006-08) mortality (2006-08)Ultimate Ultimate

Rate of Discounting 6.04% 7.59%Rate of salary increase 6.00% 6.00%Rate of Return on Plan Assets 6.04% 7.59%Rate of Employee Turnover 2.00% 2.00%

The estimates of rate of escalation in salary considered in actuarial valuation by taking into accountinflation, seniority, promotion and other relevant factors including attrition rate. The above information iscertified by the actuary.

b) The Company has considered certain entitlements to earned leave, which can be carried forward tofuture periods as a long term employee benefit.

Sensitivity AnalysisReasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holdingother assumptions constant, would have affected the defined benefit obligation by the amounts shownbelow.


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( in Lakh)Particulars Gratuity

31-Mar-20 31-Mar-19

Projected Benefit Obligation on Current Assumptions 14,074.34 14,121.77Delta Effect of +1% Change in Rate of Discounting (642.96) (606.22)Delta Effect of -1% Change in Rate of Discounting 719.05 670.38Delta Effect of +1% Change in Rate of Salary Increase 214.63 234.48Delta Effect of -1% Change in Rate of Salary Increase (247.73) (256.71)Delta Effect of +1% Change in Rate of Employee Turnover 133.12 174.86Delta Effect of -1% Change in Rate of Employee Turnover (147.38) (191.45)

2.26 OTHER CURRENT NON-FINANCIAL LIABILITIES ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Advance from customers (Contract Liabilities) 2,622.71 1,234.25Statutory taxes payable 433.80 347.23Others 965.28 1,309.20Total Other Current Non-Financial Liabilities 4,021.79 2,890.68

2.26.01 The Government of Gujarat (GOG) has provided funds amounting to 8134.74 Lakh (31st March,2019: 7,634.73 Lakh) which are in the nature of deposits for Construction and other expenses for StonePark, Laboratory and Trade Fair on behalf of Commissioner of Geology & Mining (CGM), GOG. Out of thesaid deposits, the Company has utilized/repaid 7,677.62 Lakh (31st March, 2019: 6,844.53 Lakh) till31st March, 2020. Net balance of unutilised funds amounting to 457.11 Lakh (31st March, 2019:

790.20 Lakh) is shown under the head “Other Current Non-Financial Liabilities”.

Details of funds received and utilized for various activities are as under: ( in Lakh)Nature of activities Funds Received Funds Utilized / Fund unutilized

up to repaid up to as on31st March, 2020 31st March, 2020 31st March, 2020

Construction and other expenses ofStone Park* 500.00 - 500.00Construction and other expenses ofLaboratory 2,507.97 2,565.86 (57.89)Activities related to Trade Fair 90.14 75.14 15.00Total (A) 3,098.11 2,641.00 457.11

Nature of activities Funds Received Funds Utilized / Fund unutilizedup to repaid up to as on

31st March, 2019 31st March, 2020 31st March, 2020Construction and other expenses ofStone Park 5,036.62 5,036.62 -Total (B) 5,036.62 5,036.62 -Total (A+B) 8,134.73 7,677.62 457.11Previous Year 7,634.73 6,844.53 790.20*Excluding funds received upto 31st March, 2019, utilized/repaid upto 31st March, 2020.


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2.27 REVENUE FROM OPERATIONSRevenue from contracts with customers (Disaggregated revenue information) ( in Lakh)Particulars 2019-20 2018-19Sale of Products- Sale from Lignite Projects 118,382.54 147,834.53- Sale from Bauxite Projects 3,992.05 1,550.30- Sale from Thermal Power Project 13,855.09 22,047.39- Sale from Renewable Energy Projects 16,272.85 17,152.71- Sale from Other Projects 125.27 119.66Less:Cash discount/incentives 532.95 736.77Sale of products (net) 152,094.85 187,967.82Total Revenue from Operations 152,094.85 187,967.82

2.27.01 The company is selling lignite/ power to GSECL/GUVNL. For arriving at the rate of lignite to be charged ininvoice for sale of Lignite/power from year to year, the company is charging rate of interest of 13% onfixed assets of the respective project for finalization of cost as per agreed formula. Accordingly, thecompany has recognised the revenue for the sale of lignite/power to GSECL/GUVNL. However, whilemaking the payment, GSECL and GUVNL are allowing rate of interest of 8.50% only instead of 13% w.e.f01st July,2017. The matter has been referred to Government of Gujarat (GOG) to settle the issue.Necessary adjustment entries, if any, will be passed after the matter is finalised by GOG.

2.28 FINANCE INCOME ( in Lakh)Particulars 2019-20 2018-19Interest Income- FDRs with Banks & Inter Corporate Deposits (ICDs) 9,135.64 8,405.26- Others 5,957.95 3,361.65Total Finance Income 15,093.59 11,766.91

2.28.01 The company during the year, earned an interest of 4144.76 lakh (2018-19: 3,236.26 lakh) on thefixed deposits of 55,174.27 lakh (31st March, 2019: 52,070.81 lakh) held in the escrow accounts formine closure expenses and recognised such interest as income in the Statement of Profit and Loss. Theinterest income so earned is a part of escrow account over which the company has no hold until theprovisions of mine closure plan are complied.

As per prevailing guidelines of Ministry of Coal, Govt of India, up to 50% (Upto 2018-19: 80%) of the totaldeposited amount including interest accrued in the escrow account would be released to the companyafter every five years in proportion to the expenditure incurred on mine closure and the balance will bereleased at the end of final mine closure on compliance of all the provisions of mine closure plan,provided that restoration of mine is completed within the specified period, failing which the amount in theescrow account is liable to be forfeited.

2.29 OTHER INCOME ( in Lakh)Particulars 2019-20 2018-19Income from Investments - Dividend Income 828.12 789.74Net gain on Sale of Fixed Assets 50.69 32.86Sale of Scrap material 49.92 266.13Excess Provision of Earlier Years Written Back 158.65 98.18Liquidated Damages/ Penalty 169.81 517.81Other Misc. Income 534.11 778.14Total Other Income 1,791.30 2,482.86


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2.30 CHANGES IN INVENTORIES OF FINISHED GOODS & MINED ORE ( in Lakh)Particulars 2019-20 2018-19Inventories at the end of the year:Finished Goods 0.45 0.45Mined Ore 6,632.14 6,730.01Stock of Fuel 153.22 216.79

6,785.81 6,947.25Less : Inventories at the beginning of the year:Finished Goods 0.45 0.45Mined Ore 6,730.01 5,230.54Stock of Fuel 216.79 1,084.45

6,947.25 6,315.44(Increase) / Decrease in Inventories 161.44 (631.81)

2.31 EMPLOYEE BENEFIT EXPENSES ( in Lakh)Particulars 2019-20 2018-19Salaries, Wages & Bonus 9,802.61 9,017.81Contribution to Provident fund & other funds 1,788.04 1,913.51Staff Welfare Expenses 897.48 677.77Terminal Benefits 1,959.39 617.47Directors' sitting Fees & Allowances 1.05 2.10Total Employee Benefit Expenses 14,448.57 12,228.66

2.32 FINANCE COSTS ( in Lakh)Particulars 2019-20 2018-19Unwinding of discount on Provisions 184.86 150.72Interest on lease liability 2.43 -Interest on delayed payment of income tax 0.01 0.44Other Charges 0.83 31.96Total Finance Costs 188.13 183.12

2.33 DEPRECIATION AND AMORTISATION EXPENSES ( in Lakh)Particulars 2019-20 2018-19Depreciation of Property, Plant and Equipment 8,319.04 8,227.85Depreciation on investment properties 123.75 124.37Amortisation of intangible assets 715.14 1,261.51Total Depreciation and Amortisation Expenses 9,157.93 9,613.73

2.34 OTHER EXPENSES ( in Lakh)Particulars 2019-20 2018-19Manufacturing ExpensesLoading of Lignite & Overburden Removal 60,770.93 54,895.42Freight & Octroi Expenses 1,912.68 2,281.00Other Loading charges & Mining Expenses 1,083.94 1,172.07Electricity Expenses 1,711.93 1,645.87Consumption of Stores, Spares & Chemicals 1,746.77 613.42Operation & Maintenance Charges and Fuel forThermal Project 1,313.43 2,806.20Operation & Maintenance Charges for RenewableEnergy Projects 1,980.31 2,150.30


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Particulars 2019-20 2018-19Repairs & Maintenance Buildings 383.64 398.78 Machineries ( Including spares) 531.11 543.76 Other Assets 100.70 1,015.45 98.74 1,041.28Rates & Taxes Royalty 8,458.43 9,421.24 GST Compensatory Cess 24,142.45 31,896.02 Other Rates & Taxes 463.87 33,064.75 586.12 41,903.38 Mine Closure Expenses 4,506.34 4,291.75 Rent 9.26 107.11 (A) 109,115.79 112,907.80Administrative & Selling ExpensesCSR Expenses 1,090.50 901.62Donation 1,000.00 -Financial Contribution to Government Bodies 186.00 376.00Insurance Premium 429.23 302.40Vehicle Hire Charges 799.76 808.60Advertisement & Publicity 68.09 59.73Security Expenses 2,604.00 2,552.75Legal & Professional Fees 418.92 492.10Payment to Auditors Audit Fees 8.13 7.74 For Tax Audit 1.08 1.02 For Certification and other matters 2.36 11.57 2.32 11.08Remuneration to Managing Director 32.91 31.89Loss on sale / write-off of Fixed Assets (net) 8.39 -Mining & Project Development Expenses 3.95 1.39Other Miscellaneous Charges 3,154.76 1,893.15 (B) 9,808.08 7,430.71Total Other Expenses (A+B) 118,923.87 120,338.51

2.34.01 During the year, royalty on account of sale of Bauxite had been accounted for 891.06 Lakh (2018-19:333.75 Lakh) on ad hoc basis as intimated by the Commissioner of Geology and Mining. Necessary

adjustment shall be made in the accounts after final outcome of the matter.

2.34.02 In view of the Supreme Court’s decision in respect of mining activities, applications made by theCompany for renewal of leases covering 2,040 (2018-19: 2,040) hectares of land at Panandhro lignitemine for extracting lignite are pending since 1993-94. Necessary adjustment in respect of liability for anycharges, taxes, duties etc. will be provided in accounts on finalization of renewal applications.

2.34.03 During the year, the Company has written off 746.35 Lakh (2018-19: 70.90 Lakh) and written back Nil Lakh (2018-19: 231.17 Lakh) in the books of account. In the opinion of the management, such

amounts are no longer receivable / payable. Net effect thereof is written off/(back) to the Statement ofProfit and Loss amounting to 746.35 Lakh (2018-19: (160.27) Lakh).

2.34.04 In compliance with Section 135(5) of the amended Companies Act, 2013, the Company has spent 1090.50 Lakh (2018-19: 901.62 Lakh) against the statutory requirement of spending 1071.22 Lakh

(2018-19: 879.94 Lakh) (based on average net profits of last 3 years) during the year towards CorporateSocial Responsibility (CSR) Expense.

2.35 INCOME TAX EXPENSESThis note provides an analysis of the Company’s income tax expenses which shows amounts that aredirectly recognised in equity and how the tax expense is affected by non-assessable and non-deductibleitems. It also explains significant estimates made in relation to the Company's tax positions.


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( in Lakh)Particulars 2019-20 2018-19Current Tax ExpensesCurrent tax on profits for the year 8,811.17 18,971.65Adjustments for the current tax of prior perods 318.15 -Total Current Tax Expenses 9,129.32 18,971.65Deferred Tax ExpensesDecrease/(Increase) in deferred tax assets (1,857.72) 280.07(Decrease)/Increase in deferred tax liabilities (1,439.54) (2,400.32)Total Deferred Tax Expenses (3,297.26) (2,120.25)Income Tax Expenses 5,832.06 16,851.40

2.36 EARNING PER SHAREParticulars 2019-20 2018-19Profit attributable to equity holders for ( in Lakh):Basic earnings 20,267.74 13,868.98Adjusted for the effect of dilution 20,267.74 13,868.98Weighted average number of Equity Shares for:Basic EPS 31,80,00,000 31,80,00,000Adjusted for the effect of dilution 31,80,00,000 31,80,00,000Earning Per Share (Face value of 2/- each):Basic ( ) 6.37 4.36Diluted ( ) 6.37 4.36

2.37 CONTINGENT LIABILITIES AS ON 31ST MARCH, 2020Contingent liabilities not provided for Claims against the Company not acknowledged as debt 82,659.79Lakh (31st March, 2019: 69,780.98 Lakh).

2.37.01 Excise, VAT, Service tax, Income tax and other matters related to contingent liabilities: ( in Lakh)Sr. Particulars As at As atNo. 31st March, 2020 31st March, 20191 Income tax 33,443.13 33,725.822 Sales Tax/VAT 419.04 419.043 Excise & Service Tax 1,673.97 1,508.424 Related to contractors and others 30,635.93 21,119.125 Royalty, stamp duty, conversion tax, land revenue etc. 7,978.16 4,943.836 Land Compensation 4,450.00 4,450.007 Incentives to employees 1,158.84 1,158.848 Guarantees excluding financial guarantees

Outstanding Bank Guarantees 2,900.72 2,455.91

2.38 COMMITMENTS ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Capital CommitmentsEstimated amount of contracts remaining to be executedon capital account and not provided for 370.79 477.60


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2.39 EVENTS OCCURRING AFTER THE REPORTING PERIOD

The board has recommended dividend of 2 per share which is subject to approval of shareholders inthe ensuing general meeting.

2.40 In the opinion of Management, any of the assets other than items of Property, Plant and Equipment,Investment Properties, Intangible Assets and Non-Current Investments have a value on realisation in theordinary course of business at least equal to the amount at which they are stated, unless otherwisestated.

2.41 Balances of trade payables, trade receivables, loans & advances, advances from customers, other non-current/current liabilities, etc. are subject to confirmation and adjustments, if any, in the accounts.

2.42 On periodical basis and as and when required, the Company reviews the carrying amounts of its assets.In the Financial Year 2019-20, the Company has reviewed the carrying amounts of its assets and foundthat there is no indication that those assets have suffered any impairment loss. Hence, no suchimpairment loss has been provided.

2.43 SEGMENT INFORMATION(a) Description of segment and principal activities

The Chief Operational Decision Maker (CODM) monitors the operating results of its businesssegments separately for the purpose of making decisions about resource allocation andperformance assessment, and accordingly, the Company has identified two reportable operatingsegments viz. Mining and Power. Operating segments have been identified and reported in amanner consistent with the internal reporting provided to the CODM.

(b) Segment revenue and expensesRevenue and expenses have been identified to a segment on the basis of relationship to operatingof the segment. Revenue and expenses which relate to enterprise as a whole and are not allocableto a segment on a reasonable basis have been disclosed as "Unallocable".

(c) Segment assets and liabilitiesSegment assets and segment liabilities represent assets and liabilities in respective segments.Investments, tax related assets and other assets and liabilities that cannot be allocated to asegment on a reasonable basis have been disclosed as "Unallocable".

(d) Secondary segment reportingThe Company does not have geographical distribution of revenue as the operations of the Companyare carried out within the country and hence secondary segmental reporting based on geographicallocations of its customers is not applicable to the Company.

(e) Information about major customersRevenue from power segment (which exceeds 10% of total segment revenue) amounting to

29,568.10 (2018-19: 37,607.96) Lakh is derived from a single customer and revenue frommining segment (which exceeds 10% of total segment revenue) amounting to 17,859.60(2018-19: 21,506.75) Lakh (inclusive of tax) is derived from a single customer.

(f) Information about product and servicesThe Company's revenue from external customers for each product is same as that disclosed belowunder "segment revenue".


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( in Lakh)Particulars 2019-20 2018-19

Mining Power Unallocated Total Mining Power Unallocated TotalProjects Projects Projects Projects

Segment RevenuesExternal Revenue* 122,499.87 29,594.98 - 152,094.85 149,504.48 38,463.34 - 187,967.82Inter Segment Revenue 9,604.06 - - 9,604.06 10,902.59 - - 10,902.59Total Segment Revenue 132,103.93 29,594.98 - 161,698.91 160,407.07 38,463.34 - 198,870.41Segment ResultsProfit/(Loss) 12,926.16 3,794.36 (6,923.44) 9,797.08 42,097.85 10,530.01 (5,038.79) 47,589.07Unallocated other income - - 15,921.71 15,921.71 - - 12,556.66 12,556.66Unallocated expenses andfinance cost - - 381.01 381.01 - - 339.65 339.65Profit before exceptional items 12,926.16 3,794.36 9,379.28 26,099.80 42,097.85 10,530.01 7,857.52 60,485.38and taxExceptional ItemsLoss on Investment in associate - - - (29,765.00) (29,765.00)Profit Before Tax 12,926.16 3,794.36 9,379.28 26,099.80 42,097.85 10,530.01 (21,907.48) 30,720.38Income tax- Current - - 8,811.17 8,811.17 - - 18,971.65 18,971.65Excess/short provision ofincome tax - - 318.15 318.15 - - - -Deferred tax - - (3,297.26) (3,297.26) - - (2,120.25) (2,120.25)Profit after tax 12,926.16 3,794.36 3,547.22 20,267.74 42,097.85 10,530.01(38,758.88) 13,868.98Other informationDepreciation and amortisation 1,591.68 7,261.08 305.17 9,157.93 2,165.73 7,148.64 299.36 9,613.73Non-Cash Expenses other thandepreciation and amortisation 4,506.34 - - 4,506.34 4,291.75 - - 4,291.75* Segment Revenue includes other income which is directly attributable to each segment.

( in Lakh)Segments Assets** As at As at

31st March, 2020 31st March, 2019Mining Projects 127,223.34 123,884.33Power Projects 147,449.68 154,554.44Unallocated 243,070.90 238,741.07Total 517,743.92 517,179.84

Segments Liabilities As at As at31st March, 2020 31st March, 2019

Mining Projects 68,524.40 61,765.84Power Projects 6,834.02 6,589.79Unallocated 20,882.48 20,254.70Total 96,240.90 88,610.33

** Segment assets and liabilities are measured in the same way as in the financial statements. They areallocated based on the operations of the segment.

1. Segment assets and liabilities are subject to reconcilation.

2. Segment Revenue of Mining includes 9,604.06 Lakh (2018-19 10,902.59 Lakh) being captiveconsumption of Lignite/Lime for Power Project.

2.44 RELATED PARTY DISCLOSURESAs per the Indian Accounting Standard-24 on “Related Party Disclosures”, details for reporting period areas follows:


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2.44.01 Associate/Joint VentureName of the Entity TypeGujarat Jaypee Cement and Infrastructure Ltd. AssociateGujarat Credo Mineral Industries Ltd. AssociateAikya Chemicals Pvt. Ltd. AssociateGujarat Foundation for Entrepreneurial Excellence Joint VentureSwarnim Gujarat Fluorspar Pvt. Ltd. Joint VentureNaini Coal Company Ltd. Joint VentureGujarat Mineral Research & Industrial Consultancy Society 100% Controlled EntityGMDC Science & Research Centre 100% Controlled EntityGMDC Gramya Vikas Trust 100% Controlled Entity

2.44.02 Transactions with related parties: ( in Lakh)Particulars Associates Joint Ventures 100% Controlled Total

entity/Governmentrelated entities/KMP

2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19Sale of Goods/ Services 4,456.14 1,552.95 - 1.66 47,643.96 62,263.46 52,100.10 63,818.07Purchase of Goods/ Services - - - - 7.09 6.60 7.09 6.60Fund disbursed on behalf of GOG - - 1,286.75 700.01 - - 1,286.75 700.01Reimbursement received - - - - 180.74 22.38 180.74 22.38Received/ Adjusted/Written off - - - 78.81 - - - 78.81Funds deposited with GSFS 143,239.10 193,939.24 143,239.10 193,939.24Funds withdrawn from GSFS 135,303.98 199,092.69 135,303.98 199,092.69Interest Income/Other Income 52.77 31.88 - 7.00 9,125.99 8,396.87 9,178.76 8,435.76Financial Contribution toGovernment Bodies 186.00 376.00 186.00 376.00Contribution made to ProvidentFund Trust 1,954.16 2,022.67 1,954.16 2,022.67Contribution made to Gratuity Trust(100% funded with LIC) 700.00 900.00 700.00 900.00Donation /CSR 1,000.00 900.00 1,000.00 900.00Directors' sitting fee 1.05 2.10 1.05 2.10Outstanding balances arising from sales/purchases of goods/servicesAccount Payable as at year end 20.75 12.30 32.42 316.98 0.53 0.49Account Receivable as at year end 1,453.34 985.06 1,641.66 1,641.66 134,574.13 123,300.96

1. The above transactions are inclusive of all taxes, wherever applicable.

2. Directors' sitting Fees includes taxes, wherever applicable. Further, directors' sitting fees in respect ofGovernment nominated directors are deposited directly into Government Treasury.

2.44.03 Terms and conditionsTransactions relating to dividends were on the same terms and conditions that applied to othershareholders. Goods were sold to related parties as mentioned above on mutually agreed terms. Most ofthe outstanding balances are unsecured.

The Company has executed Power Purchase Agreements with one of Government owned PSUs for saleof power generated from wind mills, solar and thermal power plant for the period ranging from 25 to 30years.


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2.44.04 Key Management Personnel Compensation: ( in Lakh)Particulars 2019-20 2018-19Short-term employee benefits 81.24 77.33Post-employment benefits 32.55 28.38Long-term employee benefits 37.27 32.09Termination benefits - -Employee share-based payments - -Total compensation 151.06 137.80

2.44.05 Other transactions with Government related entitiesApart from the above transactions, the Company has also entered into other transactions in ordinarycourse of business with Government related entities. These are transacted at arm's length prices basedon the agreed contractual terms.

2.44.06 Further, the Company has entered into various long term material supply and power purchaseagreements with the related parties (including Government related entities) where goods/services are tobe provided at prices determined based on the contractual terms agreed. Some of the contracts are in theprocess of being finalised pending the necessary approvals.

2.45 FINANCIAL INSTRUMENTS, FAIR VALUE AND RISK MEASUREMENTSA. Financial instruments by category and their fair value ( in Lakh)

Carrying Amount Fair Value TotalFVTPL FVTOCI Amortised Total Level 1 Level 2 Level 3

As at 31st March 2020 Cost Quoted Significant Significantprice in observable unobservable

active inputs inputsmarkets

Financial assetsInvestments - Equity Shares - Unquoted - 13,794.84 - 13,794.84 - - 13,794.84 13,794.84 - Equity Shares - quoted - 11,258.36 - 11,258.36 11,258.36 - - 11,258.36Loan - Non-current - - 192.52 192.52 - - - - - Current - - 913.07 913.07 - - - -Trade Receivables - - 14,279.01 14,279.01 - - - -Cash and Cash Equivalents - - 6,957.37 6,957.37 - - - -Other Bank Balances - - 113.02 113.02 - - - -Other financial assets - Non-current - - 78,933.66 78,933.66 - - - - - Current - - 102,586.75 102,586.75 - - - -Total financial assets - 25,053.20 203,975.40 229,028.60 11,258.36 - 13,794.84 25,053.20Financial liabilitiesOther financial liabilities - Non-current - - 1,508.52 1,508.52 - - - - - Current - - 10,295.63 10,295.63 - - - -Trade Payables - - 13,676.54 13,676.54 - - - -Total financial liabilities - - 25,480.69 25,480.69 - - - -

# Fair value of financial assets and liabilities measured at amortised cost is not materially different from theamortised cost.


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( in Lakh)Carrying Amount Fair Value Total

FVTPL FVTOCI Amortised Total Level 1 Level 2 Level 3 As at 31st March 2019 Cost Quoted Significant Significant

price in observable unobservableactive inputs inputs

marketsFinancial assetsInvestments - Equity Shares - Unquoted - 15,685.90 - 15,685.90 - - 15,685.90 15,685.90 - Equity Shares - quoted - 26,051.26 - 26,051.26 26,051.26 - - 26,051.26Loan - Non-current - - 205.79 205.79 - - - - - Current - - 1,074.31 1,074.31 - - - -Trade Receivables - - 14,747.73 14,747.73 - - - -Cash and Cash Equivalents - - 5,877.76 5,877.76 - - - -Other Bank Balances - - 140.35 140.35 - - - -Other financial assets - Non-current - - 69,135.05 69,135.05 - - - - - Current - - 100,962.88 100,962.88 - - - -Total financial assets - 41,737.16 192,143.87 233,881.03 26,051.26 - 15,685.90 41,737.16Financial liabilitiesOther financial liabilities - Non-current - - 2,593.94 2,593.94 - - - - - Current - - 9,365.26 9,365.26 - - - -Trade Payables - - 10,970.97 10,970.97 - - - -Total financial liabilities - - 22,930.17 22,930.17 - - - -

# Fair value of financial assets and liabilities measured at amortised cost is not materially different from the amortisedcost.

Types of inputs are as under:Input Level I (Directly Observable) which includes quoted prices in active markets for identical assets such as

quoted price for an equity security on Security Exchanges

Input Level II (Indirectly Observable) which includes prices in active markets for similar assets such as quotedprice for similar assets in active markets, valuation multiple derived from prices in observedtransactions involving similar businesses etc.

Input Level III (Unobservable) which includes management's own assumptions for arriving at a fair value such asprojected cash flows used to value a business etc.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far aspossible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair valuehierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchyas the lowest level input that is significant to the entire measurement.

As per the accounting policy of the company on Equity Instruments, all equity instruments in the scope of Ind AS109 are measured at fair value. Equity instruments which are held for trading are classified as at Fair Value ThroughProfit or Loss(FVTPL). For all other equity instruments, the company has the option to make an irrevocable electionon initial recognition, on an instrument-by-instrument basis, to present changes in fair value through OtherComprehensive Income(OCI) rather than through profit or loss. The option to present changes in Fair ValueThrough Other Comprehensive Income (FVTOCI) is available only at the time of initial recognition. Accordingly, thecompany has elected to measure its equity instruments through FVTOCI.


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The value of investments made by the company in the quoted shares is measured at fair value through OCI.Although, the prices of quoted shares have gone down substantially as on 31st March, 2020 on account of Covid-19 outbreak, in the absense of any other appropriate base, their fair value is measured by Directly Observable Inputof Level I which includes quoted price for an equity security on Security Exchanges. Accordingly, the fair value isbeing arrived at based on the prices of the investments in the shares of the companies as quoted on NSE/BSEStock Exchange. The quoted price of investments in quoted shares held by the company as on 31st March,2020 was 11,258.36 lakh as against 26,051.26 lakh as on 31st March,2019 showing a reduction of 14,792.90lakh. The reduction in the value is mainly due to depressed market conditions on account of outbreak of Covid-19.The management expects that its impact is likely to be short term in nature only.

B. Measurement of fair valuesi) Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 3 fair values, as well as thesignificant unobservable inputs used.Financial instruments measured at fair valueFVTOCI in unquoted equity shares:Gujarat State Petroleum Corporation Limited1. Market approach : This approach uses information generated by market transactions of the

Company being valued or the transactions of comparable companies. The following market-linkedinformation may be used for determining valuation under this approach.- Quoted price of the company being valued,- Past transaction value of the company being valued,- Listed comparable companies' trading multiples like price to earning ratio, enterprise value to

earning before interest, tax, depreciation and amortisation, enterprise value to sales etc.- Transactions multiples for investment / M & A transaction of comparable companies.

The valuation arrived at based on the market approach reflects the current value of the Companyperceived in the active market. However, as the valuation arrived at using market multiples isbased on the past/current transaction or traded values of comparable companies/businesses, itmay not reflect the possible changes in future trend of cash flows being generated by abusiness.

2. Income Approach : The income approach reflects present value of future cash flows. For valuinga business, the discounted cash flow (DCF) methodology is used under this approach. Thismethodology works on the premise that the value of a business is measured in terms of futurecash flow streams, discounted to the present time at an appropriate discount rate. This method isused to determine the present value of business on a going concern assumption. The DCFtechnique recognizes the time value of money.

The value of the firm is arrived at by estimating the Free Cash Flow to Firm (FCFF) anddiscounting the same at the Weighted Average Cost of Capital (WACC). FCFF is estimated byforecasting free cash flows available to the firm (which are derived on the basis of the likely futureearnings of the company).

3. Cost Approach: The cost approach essentially estimates the cost of replacing the tangible assetsof the business. The replacement cost takes into account the market value of various assets orthe expenditure required to create the infrastructure exactly similar to that of a company beingvalued.

Significant unobservable inputsHighest priority is given to unadjusted quoted price of listed entities and lowest priority to non-market linked inputs such as future cash flows used in income approach.

Inter-relationship between significant unobservable inputs and fair value measurementThe estimated fair value would increase (decrease) if there is a change in significant unobservableinputs used in determination of fair value.

Considering the diverse asset and investment base of the Company with differing risk/returnprofiles, a sum of the parts approach has been adopted for the valuation. Under this method, the


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value of each distinct business/asset/investment has been arrived at separately and total valueestimate for the Company presented as the sum of all its business/investments/assets.

Gujarat Guardian LimitedFair value is determined using the ratio of enterprise value to EBIDTA adjusted for the industryaverage. The industry average has been computed using peer companies.

Gujarat Industrial And Technical Consultancy Organisation Limited (GITCO) and GujaratInformatics LimitedIn the absence of sufficient information for determination of fair value, the Company has determined thesame using net worth as reflected in the financial statements as at the each reporting date. Managementis of the view that the value so determined are reflective of the fair values.

Further, in the absence of the audited financial statements of GITCO and Gujarat Informatics Limited,the fair value is determined based on unaudited financial statements for the year ended 31st March,2020. Once the audited financials are available, appropriate changes would be made in thesubsequent periods.

ii) Transfers between Levels 1 and 2There have been no transfers between Level 1 and Level 2 during the reporting periods

iii) Level 3 fair valuesMovements in the values of unquoted equity instruments for the period ended 31st March, 2020 and31st March, 2019:

( in Lakh)Particulars AmountAs at 1st April 2018 20,593.72Acquisitions / (disposals) -Gains/ (losses) recognised in other comprehensive income (4,907.82)Gains/ (losses) recognised in statement of profit or loss -As at 31st March 2019 15,685.90Acquisitions/ (disposals) -Gains/ (losses) recognised in other comprehensive income (1,891.06)Gains/ (losses) recognised in statement of profit or loss -As at 31st March 2020 13,794.84

Transfer out of Level 3There were no movement in level 3 in either directions during the year 2019-20 and 2018-19.

Sensitivity analysis - Investments in unquoted equity instrumentsOn account of lack of sufficient information as at the end of reporting period and nature of investments,the management is of the view that it is impracticable to determine the sensitivity of the fair values tochanges in the underlying assumptions.

C. Financial risk managementThe Company has exposure to the following risks arising from financial instruments:• Credit risk ;• Liquidity risk ; and• Market risk

(i) Risk management frameworkThe Company has a well-defined risk management framework. The Board of Directors of theCompany has adopted a Risk Management Policy. The Company has also set up a RiskManagement Committee.


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Looking to the profile of the Company, i.e., Mining and Power Operations, the Company has inbuiltrisk management practices to address various operational risks. The Company has standardoperating processes for various mining operations in order to mitigate procedures and prevent riskarising out of various operations. The Company has no external borrowings. Hence, there is nofinancial risk that can impact the Company’s Financial Position. The Company primarily deals withnatural resources. Hence, Policy of Government may impact the Company’s operational strategy.The Company’s risk management process revolves around following parameters:1. Risk Identification and Impact Assessment2. Risk Evaluation3. Risk Reporting and Disclosure4. Risk Mitigation.

(ii) Credit riskCredit risk is the risk of financial loss to the Company if a customer or counterparty to a financialinstrument fails to meet its contractual obligations, and arises principally from the Company'sreceivables from customers.

Other financial assetsThe Company maintains its Cash and cash equivalents and Bank deposits with banks having goodreputation, good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

Trade and other receivablesTrade receivables of the Company are typically unsecured ,except to the extent of advance receivedagainst sales for sale of lignite. Credit risk is managed through credit approvals and periodicmonitoring of the creditworthiness of customers to which Company grants credit terms in the normalcourse of business. The Company performs ongoing credit evaluations of its customers’ financialcondition and monitors the creditworthiness of its customers to which it grants credit terms in thenormal course of business. Significant portion of trade receivables at the respective reporting datecomprise of State Governments PSUs. Management does not expect any credit risk on the same.The allowance for impairment of trade receivables is created to the extent and as and whenrequired, based upon the expected collectability of accounts receivables.

Age of Receivables ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Within the credit period 1,881.59 2,402.101-30 days past due 646.76 3,468.5631-60 days past due 589.17 1,591.3261-90 days past due 8,134.23 64.61More than 90 days past due 3,124.54 7,318.40

The above receivables which are past due but not impaired are assessed on individual case to casebasis and relate to a number of independent third party customers from whom there is no recenthistory of default. Management is of the view that these financial assets (majorly state owned PSUs)are not impaired as there has not been a significant change in credit quality and are recoverablebased on the nature of the activity with the respective customer to which they belong and the type ofcustomers. Further, since the amount are collected within one year, there is no loss on account oftime value of money. Consequently, no additional provision has been created on account of expectedcredit loss on the receivables. There are no other classes of financial assets that are past due but notimpaired except for trade receivables as at 31st March, 2020 and 31st March, 2019.


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Movements in Expected Credit Loss Allowance ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Balance at the beginning of the year 97.27 104.14Movements in allowance - (6.87)Closing balance 97.27 97.27

The maximum exposure to credit risk for trade and other receivables by geographic region was asfollows:

( in Lakh)Particulars Carrying amount

As at As at31st March, 2020 31st March, 2019

India 14,279.01 14,747.73Other regions - -

14,279.01 14,747.73

Management believes that the unimpaired amounts that are past due by more than 30 days are stillcollectible in full, based on historical payment behavior and extensive analysis of customer credit risk,including underlying customers’ credit ratings if they are available.

Management estimates that there are no instances of past due or impaired trade and other receivables.

(iii) Liquidity riskLiquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associatedwith its financial liabilities that are settled by delivering cash or another financial asset. The Company’sapproach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meetits liabilities when they are due, under both normal and stressed conditions, without incurringunacceptable losses or risking damage to the Company’s reputation.

Exposure to liquidity riskThe following are the remaining contractual maturities of financial liabilities at the reporting date. Theamounts are gross and undiscounted, and include estimated interest payments and exclude the impact ofnetting agreements, if any.

( in Lakh)Contractual cash flows

31st March, 2020 Carrying Total Less than More thanamount 12 months 12 months

Non-derivative financial liabilitiesNon current financial liabilities 1,508.52 1,508.52 - 1,508.52Current financial liabilities 10,295.63 10,295.63 10,295.63 -Trade payables 13,676.54 13,676.54 13,676.54 -Total 25,480.69 25,480.69 23,972.17 1,508.52





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(iv) Market riskMarket risk is the risk that changes in market prices – such as foreign exchange rates, interest rates andequity prices – will affect the Company’s income or the value of its holdings of financial instruments.

Currency riskThe functional currency of the Company is Indian Rupees.The Company do not use derivative financial instruments for trading or speculative purposes. As theCompany does not engage in foreign exchange transaction, it is not exposed to currency risk.

Interest rate riskInterest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interestrate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuationsin the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interestbearing investments will fluctuate because of fluctuations in the interest rates. The Company does nothave any undrawn or outstanding borrowings and hence does not possess any interest rate risk.

Price RiskThe Company's exposure to equity securities price risk arises from investments held by the Company andclassified in the balance sheet at fair value through other comprehensive income (FVTOCI). Some of theequity investments are publicly traded and are included in the NSE Nifty 50 Index.

SensitivityThe table below summarises the impact of increases/decreases of the index on the Company's equityand other comprehensive income for the period. The analysis is based on the assumption that the indexhad increased by 20% or decreased by 20% with all other variables held constant, and that theCompany's quoted equity instruments moved in line with the index. The percentage have beendetermined considering average of the actual movements in quoted prices of equity shares held asinvestments as at 31st March, 2020.

( in Lakh)Particulars Impact on Other

Comprehensive IncomeNSE NIFTY 50 - increase 20% 2,251.67NSE NIFTY 50 - decrease 20% (2,251.67)

2.46 CAPITAL MANAGEMENTThe Company's objectives when managing 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, andmaintain an optimal capital structure to reduce the cost of capital.

The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose,adjusted net debt is defined as total non-current liabilities, less Cash and bank balances. Adjusted equitycomprises all components of equity.

The Company’s adjusted net debt to equity ratio at 31st March, 2020 and 31st March, 2019 was asfollows. ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Total Non-current liabilities 66,599.88 64,309.62Less : Cash and bank balances 7,070.39 6,018.11Adjusted net debt 59,529.49 58,291.51Total equity 421,503.02 428,569.51Adjusted net debt to adjusted equity ratio 0.14 0.14

2.47 Corresponding figures of the previous year have been re-grouped / re-arranged / re-classified / restatedand revised, wherever necessary, for rounding off to nearest lakh rupees and/or to make them comparablewith the figures of the current year.


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2.48 PRIOR PERIOD ITEMS, ERRORS AND CHANGES IN ACCOUNTING POLICIESa) In respect of mines other than lignite mines, expenses incurred either departmentally or through

outside agencies on mine closure activities are charged to the respective head of expenses andprovision is made for shortfall therein, if advised by the technical division. The same was notdisclosed in the Significant Accounitng Policies (SAP) so far, the same is disclosed now in SAP atserial number (t).Such disclosure does not have any impact on the profitability as well as Assets/Liabilities of the company.

b) The Company has accounted for material prior period errors discovered during the current period,retrospectively by restating the comparative amounts to which the same relate. Since certainperiods were prior to comparative period presented, the impact has been considered in openingbalance sheet of comparative period presented. Impact of the same is not material to the financialstatements.

Following are the financial items affected due to restatement in the comparative financial results presentedhereunder for the matters stated above:

( in Lakh)As at 31st March, 2019 As at 31st March, 2018

Financial Statement Line Earlier Correction Reclassification Restated Earlier Correction Reclassification RestatedItem affected Presented Amount Amount Amount Presented Amount Amount Amount(Balance Sheet) Amount AmountASSETSNon-Current AssetsOther Non Current Assets 44,705.59 0.13 - 44,705.72 - - - -Current Assets Cash & cash equivalents 1,827.76 - 4,050.00 5,877.76 - - - - Other Financial Assets 105,011.71 1.17 (4,050.00) 100,962.88 - - - -LIABILITIESCurrent Liabilities Trade Payables 10,959.99 10.98 - 10,970.97 - - - - Advance from customer 1,262.52 (28.26) - 1,234.25 2,148.64 (28.26) - 2,120.38Other EquityRetained Earnings 120,959.82 18.56 - 120,978.38 119,775.39 28.26 - 119,803.65Prior Period Errors ofearlier periods - 28.26 - - - - - -Short booking ofMisc. income - - - - - (28.26) - -Excess booking ofOther Income - (9.21) - - - - - -Short booking ofinterest income - 1.30 - - - - - -Excess booking of SecurityExpense - (8.59) - - - - - -Short booking of other repairExpense - 6.82 - - - - - -

( in Lakh) Financial Statement Line Item affected 2018-19 (Statement of Profit and Loss) Earlier Presented Correction Restated

Amount Amount Amount INCOME Other Income 2,492.08 (9.22) 2,482.86 Finance Income 11,765.62 1.29 11,766.91 EXPENSES Other Expenses 120,336.74 1.77 120,338.51 Profit After Tax for the Period 13,878.68 (9.70) 13,868.98


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(Amount in ) Effect on Earning Per Share 2018-19

Earlier Presented Correction RestatedAmount Amount Amount

Earning per Share (EPS) for Profit for the Period (Face Value of 2) Basic ( ) 4.36 0.00 4.36 Diluted ( ) 4.36 0.00 4.36

2.49 Transition to Indian Accounting Standards (Ind AS) amendments effective from 1st April, 2019

Ministry of Corporate Affairs ("MCA") has notified Ind AS 116 and amendments to Ind AS 12, which theCompany has applied effective from annual periods beginning on or after April 1, 2019:

a) Ind AS 116 LeasesEffective from 1st April 2019 (‘the date of transition’), the Company applied Ind AS 116 using themodified retrospective approach, under which the cumulative effect of initial application isrecognised in retained earnings at 1st April 2019. Accordingly, the comparative information is notrestated – i.e. it is presented, as previously reported, under Ind AS 17. Additionally, the disclosurerequirements in Ind AS 116 have not generally been applied to comparative information.

On transition to Ind AS 116, the Company has elected to apply the practical expedient tograndfather the assessment of which transactions are leases. The definition of a lease under Ind AS116 is applied only to contracts entered into or changed on or after 1st April 2019. The Companyhas applied accounting under Ind AS 116 also to contracts that were previously identified as leasesunder Ind AS 17.

On transition, for leases that are classified as finance lease under Ind AS 17, the carrying amount ofthe Right-of-Use (ROU) asset and the lease liability at the date of transition to Ind AS 116 is thecarrying amount of the lease asset and lease liability on the transition date as measured applyingInd AS 17. Accordingly, as on transition date an amount of 1159.47 lakh (net) land is reclassifiedas ROU asset and additional ROU asset of 28.38 lakh (net) with corresponding lease liability of

34.94 lakh is recognised. This has resulted in net off tax impact of 4.27 lakh on opening equity(retained earnings).

b) Appendix C of Ind AS 12Effective from 1st April, 2019 (date of transition), the Ministry of Corporate Affairs has notified thecorresponding change in Ind AS 12, by including IFRIC 23 as Appendix C to Ind AS 12. Appendix Caddresses uncertainty over how tax treatments should affect the accounting for income taxes. Thecompany has considered whether it is probable that taxation authority will accept an uncertain taxposition and based on the probability of likelihood of events company has recognised an additionaltax liability of 3190.39 lakh on the date of transition and cumulative effect is given in openingequity. Accordingly, the comparative information is not restated.

2.50 Covid-19 impact on businessDue to outbreak of COVID-19 globally and in India, the company has made initial assessment of likelyadverse impact on its business in general and financial risks on account of COVID-19 in particular andbelieves that the impact is likely to be short term in nature. The company is in the business of mining ofLignite, Bauxite and other minerals as well as generation of electricity by wind, solar and also lignitebased thermal power projects, which are essential services as emphasized by the Government.

In the case of generation of electricity the availability of power plant to generate electricity as per thedemand of the customers is important. Therefore, GMDC has ensured not only the availability of its powerplant to generate power but has also continued to supply power during the period of lockdown, consideringessential service as declared by the Government. The company has entered into power purchaseagreements with Gujarat Urja Vikas Nigam Ltd. for sale of electricity generated by it. Therefore, reduction inthe demand of power in the short term will have no effect on the sale of Power by the company.


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In respect of Mining, lignite mining continues to be the main operation of the company which has itsmaximum share in its total turnover. GMDC currently operates in 5 operational lignite mines located inKutch, South Gujarat and Bhavnagar region. Company is a critical supplier of lignite in the industrial unitsoperating in Gujarat. Lignite is supplied not only to its own power plants for captive consumption but alsoto other power plants and other industries. Company is supplying lignite to its customers only againstadvance receipt for sale of lignite except in the case of state government PSUs. Therefore, companydoes not have any credit risk for the same. Company expects that considering the steps taken by theCentral and the State Government for the revival of economy, the impact on the demand of lignite due tolock-down may be for short duration only. The management does not expect any medium to long termrisks at this stage in company's ability to continue as a going concern and meeting its liabilities as andwhen they fall due.






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ConsolidatedFinancial

Statements


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INDEPENDENT AUDITORS’ REPORTTo,The Members ofGujarat Mineral Development Corporation Limited

Report on the Consolidated Financial Statements

OpinionWe have audited the accompanying consolidated financial statements of Gujarat Mineral DevelopmentCorporation Limited (“the Company”) and its controlled entities, its associates and jointly controlled entities(theCompany, its controlled entity, its associates and jointly controlled entities referred to as “the Group”), comprising ofthe Consolidated Balance Sheet as at 31st March, 2020,the Consolidated Statement of Profit and Loss (includingOther Comprehensive Income), the Consolidated Statement of Changes in Equity and the Consolidated Cash FlowStatement for the year then ended, notes to the consolidated financial statements including a summary of thesignificant accounting policies and other explanatory information (herein after referred to as “the consolidatedfinancial statements”).

In our opinion and to the best of our information and according to the explanations given to us, the aforesaidconsolidated financial statements give the information required by the Companies Act, 2013 in the manner so requiredand give a true and fair view in conformity with the accounting principles generally accepted in India of the consolidatedstate of affair of the Group as at 31st March, 2020, the consolidated profit and consolidated total comprehensiveincome, consolidated changes in equity and consolidated cash flows for the year ended on that date.

Basis for OpinionWe conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of theCompanies Act, 2013. Our responsibilities under those Standards are further described in the Auditor ’sResponsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent ofthe Group in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India, andtogether with the ethical requirements that are relevant to our audit of the consolidated financial statements underthe provisions of the Companies Act, 2013 and the Rules thereunder, and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidencewe have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matteri. We draw the attention to Note No. 2.27.01 of the consolidated financial statements wherein the company is

selling lignite/ power to GSECL/GUVNL. For arriving at the rate of lignite to be charged in invoice for sale ofLignite/power from year to year, the company is charging rate of interest of 13% on fixed assets of therespective project for finalization of cost as per agreed formula. Accordingly, the company has recognised therevenue for the sale of lignite/power to GSECL/GUVNL . However, while making the payment, GSECL andGUVNL are allowing rate of interest of 8.50% only instead of 13% w.e.f 01st July,2017 . The matter has beenreferred to Government of Gujarat (GOG) to settle the issue. Necessary adjustment entries, if any, will bepassed after the matter is finalised by GOG.

ii. We draw the attention to Note No. 2.48(b) of the consolidated financial statements wherein company hascontrolled trust i.e. Gramya Vikas Trust (GVT), was formed with the objective of spreading social welfareactivities such as public safety, healthcare, education, tribal development, water supply and sanitationfacilities etc. in and around the areas and habitat encompassing our project sites. Moreover, GVT do notparticipate in any of the profit motive activities rather only service and facilitation activities for the benefit ofpublic at large in the surrounding areas/Core Zone villages. As per Ind AS 110 para 7 which lays downconditions for control, one of them being exposure or right to variable returns from investee. GVT being nonprofit entity, GMDC has no rights to its variable returns and the control can not be established. Therefore,from current financial year, GVT has been excluded from consolidation and considering the concept ofmateriality, figures of comparative periods are not restated. This has resulted in net impact of 10.29 lakh onopening equity (retained earnings).

iii. We draw attention to Note 2.50 of the consolidated financial results, as regards the management's evaluation ofCOVID-19 impact on the future performance of the Group. Our opinion is not modified in respect of this matter.

iv. We draw the attention to Note No. 2.51.01 of Consolidated financial statements wherein Gujarat Mineral


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Research and Industrial Consultancy Society (GMRICS), a subsidiary of the company has not been consideredin preparation of consolidated financial statements, as GMRICS has not prepared its annual accounts due tono financial transactions since 2012-13.

Our opinion on the consolidated financial statements, and our Report on Other Legal and Regulatory Requirements, isnot modified in respect of the above matters.

Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance in our audit of theconsolidated financial statements of the current period. These matters were addressed in the context of our audit ofthe consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters. We have determined the matters described below to be the key audit matters tobe communicated in our report.

S.No Key Audit Matter Auditor’s Response1.

2.

Stripping CostExpenditure incurred on removal ofmine waste materials (overburden)necessary to extract the l ignitereserve is referred to as Strippingcost.

Cost of stripping is charged ontechnical evaluated average strippingratio at each plot of mine after dueadjustment for stripping activity.

Refer Note (s) of the SignificantAccounting Policies

Contingent l iabi l i t ies relating toIncome tax (as described in note2.37.01 of the financial statements)

The company has uncertain taxposition including matters underdispute which involve significantjudgment relating to the possibleoutcome of these disputes inestimation of the provision of incometax. In view of this, the area has beenconsidered as a Key Audit Matter.

Principal Audit ProceduresOur audit approach was a combination of test of internal controlsand substantive procedures which included the following:• Evaluated the Overburden Removal (OB) and lignite reserve

estimate and discussed with the geologist about geologistmodel, estimation tools and sampling method (As per SA-620 “Using the Work of an Auditor's Expert”).

• Tested ‘Average stripping ratio’ by recalculating the Lignite tooverburden.

• Selected a sample of contracts and through inspection ofevidence tested the operating effectiveness of the internalcontrols relating to stripping activity.

• Carried out a combination of procedures involving enquiry,observation and inspection of evidence in respect ofoperation of these controls.

• Performed analytical procedures and test of details forreasonableness of expenditure incurred.

• Our audit procedures included the following:-• Our audit procedures included obtaining details of completed

tax assessments and outstanding demands as at the yearended March 31, 2020 from management. We involved ourinternal experts to discuss with the management regardingestimates used to ascertain the tax provision of disputedcases. Our internal experts also considered

• legal precedence and other rul ings in evaluatingmanagement’s position on these disputed cases

Information Other than the Consolidated Financial Statements and Auditor’s Report ThereonThe Company’s Board of Directors is responsible for the other information. The other information comprises theinformation included in the Management Discussion and Analysis, Board’s Report including Annexure to Board’sReport, Business Responsibility Report, Report on CSR Activities, Corporate Governance and ShareholdersInformation, but does not include the consolidated financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express anyform of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other informationand, in doing so, consider whether the other information is materially inconsistent with the consolidated financialstatements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of this other information,we are required to report that fact. We have nothing to report in this regard.


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Responsibilities of Management and Those Charged with Governance for the Consolidated FinancialStatementsThe Company’s Board of Directors is responsible for the preparation and presentation of these consolidatedfinancial statements in terms of the requirements of the Companies Act, 2013 (“the Act”) that give a true and fairview of the consolidated financial position, consolidated financial performance, consolidated total comprehensiveincome, consolidated changes in equity and consolidated cash flows of the Group in accordance with theaccounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act read with relevant rules issued thereunder.

The respective Board of Directors of the companies/entities included in the Group are responsible for maintenanceof adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of theGroup and for preventing and detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; and design, implementationand maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracyand completeness of the accounting records, relevant to the preparation and presentation of the consolidatedfinancial statements that give a true and fair view and are free from material misstatement, whether due to fraud orerror, which have been used for the purpose of preparation of the consolidated financial statements by the Board ofDirectors of the Company, as aforesaid.

In preparing the consolidated financial statements, the respective Board of Directors of the companies included inthe Group are responsible for assessing the ability of the Group to continue as a going concern, disclosing, asapplicable, matters related to going concern and using the going concern basis of accounting unless themanagement either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

The respective Board of Directors of the companies included in the Group are responsible for overseeing thefinancial reporting process of the Group.

Auditor’s Responsibilities for the Audit of the Consolidated Financial StatementsOur objectives are to obtain reasonable assurance about whether the consolidated financial statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraudor error and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with Standards on Auditing ('SAs'), we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether dueto fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidencethat is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,forgery, intentional omissions , misrepresentations, or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit proceduresthat are appropriate in the circumstances. Under section143(3)(i) of the Companies Act, 2013 we are alsoresponsible for expressing our opinion on whether the Group has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates andrelated disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based onthe audit evidence obtained, whether a material uncertainty exists related to events or conditions that may castsignificant doubt on the Group’s ability to continue as a going concern. If we conclude that a materialuncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in theconsolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, futureevents or conditions may cause the Group to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including thedisclosures, and whether the consolidated financial statements represent the underlying transactions andevents in a manner that achieves fair presentation.


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• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or businessactivities within the Group to express an opinion on the consolidated financial statements. We are responsiblefor the direction, supervision and performance of the audit of the financial statements of such entities includedin the consolidated financial statements of which we are the independent auditors. For the other entitiesincluded in the consolidated financial statements, which have been audited by other auditors, such otherauditors remain responsible for the direction, supervision and performance of the audits carried out by them.We remain solely responsible for our audit opinion.

We communicate with those charged with governance of Company and such other entities included in theconsolidated financial statements of which we are independent auditors regarding, among other matters, theplanned scope and timing of the audit and significant audit findings, including any significant deficiencies in internalcontrol that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were ofmost significance in the audit of the consolidated financial statements of the current period and are therefore the keyaudit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosureabout the matter or when, in extremely rare circumstances, we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.

Other MattersWe did not audit the financial statements of a 100% controlled entity and three joint ventures and three associates,whose financial statements reflect total assets of 19229.62 Lakh as at 31st March, 2020, total revenues of

12893.53 Lakh and net cash flows amounting to 2554.56 Lakh of a 100% controlled entity for the year ended onthat date, as considered in the consolidated financial statements.

Financial statements of a 100% controlled entity, three joint ventures and three associates are unaudited. Theseconsolidated financial statements have been furnished to us by the Management and our opinion on theconsolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of thesecontrolled entity, jointly controlled entities and associates, and our report in terms of sub-sections (3) of Section 143of the Act in so far as it relates to the aforesaid controlled entities, jointly controlled entities and associates, is basedsolely on such unaudited financial statements/ financial information. In our opinion and according to information andexplanations given to us by the Management, these consolidated financial statements are not material to the Group.

Our opinion on the consolidated financial statements, and our Report on Other Legal and Regulatory Requirementsbelow, is not modified in respect of the above matters with respect to our reliance on the financial statementscertified by the Management.

Report on Other Legal and Regulatory Requirements1. In terms of Section 143(5) of the Companies Act, 2013 we give in Annexure ‘2(i) & 2(ii)’ a statement on the

directions issued under the aforesaid section by the Comptroller and Auditor General of India to the Company.

2. As required by Section 143 (3) of the Companies Act, 2013 we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit of the aforesaid consolidated financial statements.

b) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidatedfinancial statements have been kept so far as it appears from our examination of those books.

c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss, the Consolidated Statementof Changes in Equity and the Consolidated Cash Flow Statement dealt with by this Report are in agreementwith the relevant books of account maintained for the purpose of the consolidated financial statements.

d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standardsspecified under Section 133 of the Companies Act, 2013.

e) Being a Government Company, pursuant to the Notification No. GSR 463(E) dated 5th June 2015 issuedby Ministry of Corporate Affairs, Government of India, provisions of sub-section (2) of Section 164 of theAct, are not applicable to the company and its controlled entities. Further, on the basis of the


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representation received from the management, none of the directors of the associates and joint ventures,incorporated in India are disqualified as on 31st March, 2020, from being appointed as a director in termsof Section 164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Group and theoperating effectiveness of such controls, refer to our separate Report in ‘Annexure A’.

g) With respect to the other matters to be included in the Auditor’s Report in accordance with therequirements of section 197(16) of the Act, as amended:

Being a Government Company, pursuant to the Notification No. GSR 463(E) dated 5th June 2015 issuedby Ministry of Corporate Affairs, Government of India, provisions of Section 197 of the Act, are notapplicable to the company and its controlled entities. Further, on the basis of the representation receivedfrom the management, the remuneration paid, if any, by the associates and joint ventures, incorporatedin India to its directors during the year is in accordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information andaccording to the explanations given to us:

i. The consolidated financial statements disclose the impact of pending litigations of the consolidatedfinancial position of the Group- Refer Note 2.37 to the consolidated financial statements.

ii. The Group did not have any material foreseeable losses on long term contracts including derivative contracts.

iii. There has been no delay in transferring amounts, required to be transferred, to the InvestorEducation and Protection Fund by the Group.


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ANNEXURE‘A’ TO THE AUDITOR’S REPORT(Referred to in para 2 (f) under ‘Report on Other Legal and

Regulatory Requirements’ section of our Report of even date)

Report on Internal Financial Controls over Financial Reporting

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,2013 (“the Act”)

In conjunction with our audit of the consolidated financial statements of the Company as of and for the year ended31 March 2020, we have audited the internal financial controls over financial reporting of Gujarat MineralDevelopment Corporation Limited (“the Company”) and its controlled entities, its associates and jointly controlledentities,(the Company, its controlled entities, its associates and jointly controlled entities referred to as “the Group”)as of that date.

Management’s Responsibility for Internal Financial ControlsThe respective Board of Directors of the companies/entities included in the Group are responsible for establishingand maintaining internal financial controls based on the internal control over financial reporting criteria establishedby the Companies/entities considering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia. These responsibilities include the design, implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the orderly and efficient conduct of its business, includingadherence to the respective company’s policies, the safeguarding of its assets, the prevention and detection offrauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliablefinancial information, as required under the Companies Act, 2013.

Auditor’s ResponsibilityOur responsibility is to express an opinion on the Group's internal financial controls over financial reporting based onour audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial ControlsOver Financial Reporting (the “Guidance Note”) and the Standards on Auditing, issued by ICAI and deemed to beprescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internalfinancial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute ofChartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting were established and maintained and if such controls operated effectivelyin all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financialcontrols system over financial reporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controls over financial reporting,assessing the risk that a material weakness exists, and testing and evaluating the design and operat ingeffectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’sjudgment, including the assessment of the risks of material misstatement of the consolidated financial statements,whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the Group’s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial ReportingA company's internal financial control over financial reporting is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation of financial statements for externalpurposes in accordance with generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactionsand dispositions of the assets of the company;

2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles, and that receipts and expenditures


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of the company are being made only in accordance with authorizations of management and directors of thecompany; and

3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, ordisposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial ReportingBecause of the inherent limitations of internal financial controls over financial reporting, including the possibility ofcollusion or improper management override of controls, material misstatements due to error or fraud may occur andnot be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to futureperiods are subject to the risk that the internal financial control over financial reporting may become inadequatebecause of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Emphasis of Matter(a) We draw attention to note no. 2.48 (b) of the consolidated financial statements wherein GMDC Gramya Vikas

Trust, a controlled entity of the company, is excluded from consolidation from the current financial year.

(b) We draw attention to note no. 2.51.01 of the consolidated financial statements wherein Gujarat MineralResearch and Industrial Consultancy Society, controlled entity of the company has not been considered inpreparation of consolidated financial statement, since, there are no transactions since the year ofestablishment.

Our opinion on an adequate internal financial controls system over financial reporting, is not modified in respect ofthe above matters.

Basis for Qualified OpinionAccording to the information and explanations given to us, in Gujarat Foundation for Entrepreneurial Excellence –iCreate, a joint venture of the company, the following weaknesses have been identif ied in the operat ingeffectiveness of the Company’s internal financial controls over financial reporting:

There were deficiencies observed in operating effectiveness of internal control relating to payments and complianceof TDS matters as identified as per test check based audit.

OpinionIn our opinion, the Group, have in all material respects except for the effects of the matters described in the Basisfor opinion paragraph above, an adequate internal financial controls system over financial reporting and suchinternal financial controls over financial reporting were operating effectively as at March 31, 2020, based on theinternal control over financial reporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issuedby the Institute of Chartered Accountants of India.

Other MattersOur aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internalfinancial controls over financial reporting in so far as it relates to100% controlled entity, three associates and threejointly controlled entities is based on Management Representation as these were not audited.

Our opinion on an adequate internal financial controls system over financial reporting, is not modified in respect ofthe above matters.


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ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT OFGUJARAT MINERAL DEVELOPMENT CORPORATION LTD

ToThe MembersGujarat Mineral Development Corporation Ltd.

In continuation of our Independent Audit Report on Consolidated Financial Statements of Gujarat MineralDevelopment Corporation Ltd. (“The Company”) dated 23.06.20, we have reported on Directions and Sub-directionunder section 143(5) of the Companies Act, 2013 applicable for the year 2019-20, as under:

As per the information and explanation given to us, directions under section 143(5) of the Companies Act, 2013 arenot applicable on the Controlled entity, Joint Ventures and Associates of the company except Naini Coal CompanyLtd. for which report on directions under section 143(5) of the Companies Act, 2013 has not been received yet.Hence, we are unable to offer any comment on the same.

ANNEXURE-2(i)Directions under Section 143(5) of Companies Act, 2013 Applicable for the year 2019-2020

Sr. No. Directions/Questions u/s 143(5) Action Taken by Gujarat Mineral Impact on AccountsDevelopment Corporation Ltd. and Financials

1.

2.

3.

Whether the Company has system inplace to process all the accountingtransactions through IT system? If No,the implication of processing ofaccounting transactions outside ITsystem on the integrity of the accountsalong with the financial implications, ifany, may be stated.

Whether there is any restructuring of anexisting loan or cases of waiver/ writeoff of debts/loans/ interest etc, made bya lender to the company due tocompany’s inability to repay the loan? ifyes, the financial impact may be stated

Whether funds received/ receivable forspecific scheme from Central/ Stateagencies were properly accounted for /utilised as per its terms and conditions?List the cases of deviation

Yes, the Company has Oracle basedcomposite ERP System covering allthe departments of the company fromwhere accounting transactions areprocessed. We have not come acrossany case, where accountingtransactions are processed outsideERP. Therefore, there is no financialimplication on the integrity of theaccounts.The company has no borrowing.Therefore, there is no restructuring ofan existing loan or cases of waiver/write off of debts/loans/ interest etc,made by a lender to the company dueto company’s inability to repay theloan.Yes, funds received/ receivable forspecific scheme from Central/ Stateagencies were properly accounted for/uti l ised as per i ts terms andconditions.

No Impact

No Impact

No Impact


FRN 110386W



129

ANNEXURE-2(ii)Sector Specific Sub-directions under section 143(5) of Companies Act, 2013

Sr. Sub Directions issued / Action Taken Impact onNo. Questions u/s 143(5) financials

Manufacturing SectorMining

1.

2.

3.

4.

5.

Whether the company has takenadequate measures to reduce theadverse affect on environment asper established norms and taken upadequate measures for the relief andrehabilitation of displaced people.

Whether the Company had obtainedthe requisite statutory compliancesthat was required under mining andenvironmental rules andregulations?Whether overburden removal frommines and backfilling of mines arecommensurate with the miningactivity?

Whether the Company hasdisbanded and discontinued mines,if so,the payment of correspondingdead rent there against may beverified.Whether the Company's financialstatements had properly accountedfor the effect of RehabilitationActivity and Mine Closure Plan?

According to the information andexplanation given to us, the Companyis obtaining environmental pollutionmonitoring report periodically fromoutside agency for each project toreduce/monitor the adverse effect onenvironment.

No Major Displacement/Rehabilitationhas been taken at any project of thecompany for the year 2019-20.(Please note that we are not technicalexpert)As per information and explanationgiven to us, the Company hasobtained necessary consents fromGPCB for mining projects.

As informed to us, in respect of ligniteprojects overburden removal frommines and backfilling of mines arecommensurate with the mining activityas per submitted/ approved/preparedmine closure plan.(Please note that we are not technicalexpert)As informed to us, the Company hasdiscontinued its Panandharo minedue to exhaust of lignite. Dead rentpaid for above mine during the year

51.37 lakh.The expenditure on RehabilitationActiv ity and for Mine Closure isproperly accounted in the books ofaccount of the Company, as per thepolicy adopted on this behalf.

No impact

No impact.

No Impact

Not Applicable

No impact


130

Sr. Sub Directions issued / Action Taken Impact onNo. Questions u/s 143(5) financials

Power SectorGeneration

1.

2.

3.

4.

5.

In the cases of Thermal PowerProjects, compliance of the variousPollution Control Acts and theimpact thereof including utilizationand disposal of ash and the policy ofthe company in this regard, may bechecked and commented upon.

Has the company entered intorevenue sharing agreements withprivate parties for extraction of coalat pitheads and it adequatelyprotects the financial interest of theCompany?Does the company have a propersystem for reconciliation of quantity/quality of coal ordered and receivedand whether grade of coal/moistureand demurrage etc., are properlyrecorded in the books of accounts?

How much share of free power wasdue to the State Government andwhether the same was calculated asper the agreed terms and depicted inthe accounts as per acceptedaccounting norms?In the case of Hydroelectric Projectsthe water discharge is as per policy /guidelines issued by the StateGovernment to maintain biodiversity.For not maintaining it penalty paid /payable may be reported.

As per information and explanationprovided to us, the Company hasmade compliance of various pollutioncontrol Acts.In respect of utilization and disposal ofash, generally the Company is using itin backfilling of mine in Panandharoproject.As informed to us, the Company hasnot entered into revenue sharingagreements with private parties forextraction of coal at pitheads.

Company does not purchase coalfrom the outside parties. However, asinformed to us, the Company ishav ing a system in ERP forreconciliation of quantity ordered andreceived and Grade of coal/ moistureand demurrage etc. are recorded inthe books of accounts on the basis ofTest Certificate received from thelaboratory.(Please note that we are not technicalexperts).The power is sold to Governmentcontrolled entity and the same iscalculated as per terms agreed inPower Purchase Agreement (PPA ).

As informed to us, no hydroelectricProject is carried out by Company.

No impact

Not Applicable

No impact

No impact

Not Applicable


FRN 110386W



131

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIACOMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READWITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OFGUJARAT MINERAL DEVELOPMENT CORPORATION LIMITED FOR THE YEAR ENDED 31 MARCH 2020

The preparation of consolidated financial statements of Gujarat Mineral Development Corporation Limited,Ahmedabad for the year ended 31 March 2020 in accordance with the financial reporting framework prescribedunder the Companies Act, 2013(Act) is the responsibility of the management of the company. The statutory auditorsappointed by the Comptroller and Auditor General of India under section 139(5) read with section 129(4) of the Actare responsible for expressing opinion on the financial statements under section 143 read with section 129(4) of theAct based on independent audit in accordance with the standards on auditing prescribed under section 143(10) ofthe Act. This is stated to have been done by them vide their Audit Report dated 23 June 2020.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of theconsolidated financial statements of Gujarat Mineral Development Corporation Limited for the year ended 31March 2020 under section 143(6) (a) read with section 129(4) of the Act. We conducted a supplementary audit ofthe financial statements of Gujarat Mineral Development Corporation Limited, but did not conductsupplementary audit of the financial statements of Naini Coal Company Limited for the year ended on that date.Further, section 139(5) and 143(6) (a) of the Act are not applicable to Gujarat Mineral Research & IndustrialConsultancy Society, GMDC Gramya Vikas Trust, GMDC Science and Research Centre, Gujarat Foundationfor Entrepreneurial Excellence, Swarnim Gujarat Fluorspar Private Limited, Gujarat Jaypee Cement andInfrastructure Limited, Gujarat Credo Mineral Industries Limited and Aikya Chemicals Private Limited beingprivate entities for appointment of their Statutory Auditor and for conduct of supplementary audit. Accordingly,Comptroller and Auditor General of India has neither appointed the Statutory Auditors nor conducted thesupplementary audit of these companies. This supplementary audit has been carried out independently withoutaccess to the working papers of the statutory auditors and is limited primarily to inquiries of the statutory auditorsand company personnel and a selective examination of some of the accounting records.

On the basis of my supplementary audit nothing significant has come to my knowledge which would give rise to anycomment upon or supplement to Statutory Auditors’ Report under section 143(6)(b) of the Act.

For and on behalf of theComptroller and Auditor General of India

H. K. DharmadarshiPr. Accountant General (E&RSA), Gujarat

Place : AhmedabadDate : 03rd September, 2020


132

CONSOLIDATED BALANCE SHEET AS AT 31st MARCH, 2020( in Lakh)

Particulars

ASSETSNon-Current Assets

Property, Plant and EquipmentCapital Work-In-ProgressInvestment PropertiesOther Intangible AssetsInvestment in Associates and Joint VenturesFinancial Assets

InvestmentsLoansOther Financial Assets

Other Non-Current AssetsTotal Non-Current AssetsCurrent Assets

InventoriesFinancial Assets

Trade ReceivablesCash and Cash EquivalentsOther Bank BalancesLoansOther Financial Assets

Other Current Assets

Assets classified as held for saleTotal Current AssetsTotal Assets

EQUITY AND LIABILITIESEquity

Equity Share CapitalOther Equity

Total Equity

LiabilitiesNon-Current Liabilities

Financial LiabilitiesOther Financial Liabilities

ProvisionsNet Employee Benefit LiabilitiesDeferred Tax Liabilities (Net)Other Non-Current Liabilities

Total Non-Current Liabilities

Current LiabilitiesFinancial Liabilities

Trade PayablesOther Financial Liabilities

Net Employee Benefit LiabilitiesOther Current Liabilities

Total Current LiabilitiesTotal LiabilitiesTotal Equity and Liabilities

NoteNo.

2.012.012.022.032.04

2.052.062.072.08

2.09

2.102.112.112.122.132.14

2.15

2.162.17

2.182.192.202.212.22

2.232.242.252.26


161,581.02 429.53

9,058.86 35,177.12

1,317.33

25,053.20 192.52

78,933.66 47,475.52

359,218.76

9,511.80

14,279.01 9,511.93

113.02 913.07

102,640.20 24,887.14

161,856.17 7.62

161,863.79 521,082.55

6,360.00 418,451.56 424,811.56

1,520.20 47,674.35

4,241.24 11,136.26 2,039.51

66,611.56

13,683.52 10,295.63

1,647.06 4,033.22

29,659.43 96,270.99

521,082.55


168,182.99 76.45

9,183.13 35,776.16

1,118.00

41,737.16 205.79

69,135.05 44,867.13

370,281.86

9,813.43

14,747.71 8,726.36

140.35 1,074.31

101,015.84 14,854.34

150,372.34 16.75

150,389.09 520,670.95

6,360.00 425,369.09 431,729.09

2,623.56 43,372.03

3,930.57 11,971.14 2,441.94

64,339.24

10,970.97 9,658.25 1,073.80 2,899.60

24,602.62 88,941.86

520,670.95Significant Accounting Policies 1The accompanying notes are integral part of the Financial Statements.As per our report of even date attachedFor Soni Jhawar & Co. Anupma Iyer L. Kulshrestha Arunkumar Solanki, IASChartered Accountants General Manager (Accounts) Chief General Manager & Managing DirectorFirm Registration No.110386W Chief Financial Officer DIN: 03571453Harish Daga Joel Evans S.B. DangayachPartner Company Secretary DirectorMembership No. 409620 DIN-01572754Place: Ahmedabad Place: AhmedabadDate: 23rd June 2020 Date: 23rd June 2020


133

2019-20

152,094.85 15,270.76 1,793.40 169,159.01

161.44 14,448.59 188.14 9,157.93 119,163.77 143,119.87 26,039.14

- 26,039.14

199.33

8,811.17 (3,297.26) 318.15 20,406.41

(16,683.97) (513.99) 725.70

(16,472.26)

3,934.15

6.426.42

2018-19

187,967.8211,956.472,488.81

202,413.10

(631.81)12,239.52

182.819,613.73

120,749.98142,154.23

60,258.87

(21,437.46)38,821.41

14.23

18,971.65(2,120.25)

-21,984.24

(13,924.37)1,113.23

831.60(11,979.54)

10,004.70

6.916.91

CONSOLIDATED STATEMENT OF PROFIT AND LOSSFOR THE YEAR ENDED ON 31ST MARCH, 2020

( in Lakh)

Particulars

INCOMERevenue from OperationsFinance IncomeOther Income

Total Income (A)

EXPENSESChanges in inventories of finished goods and mined oreEmployee Benefit ExpensesFinance CostsDepreciation and Amortisation ExpensesOther Expenses

Total Expenses (B)Profit before exceptional items and tax (A-B)

Exceptional ItemsLoss on Investment in associate

Profit Before TaxShare of profit/(loss) of joint ventures and associatesaccounted for using the equity method (Net of Tax)

Tax ExpensesCurrent TaxDeferred TaxShort/(excess) provision of earlier years

Profit After Tax for the PeriodOther Comprehensive Income

Items that will not be reclassified to profit or loss Changes in fair value of equity instruments measured at fair value through other comprehensive income (FVTOCI) Remeasurement of post-employment benefit obligations Income tax relating to these items

Other Comprehensive Income for the Period, (Net of tax)Total Comprehensive Income for the Period (Comprising Profit(Loss) and Other Comprehensive Income for the period)

Earning per Equity Share (EPS) (Face Value of 2)Basic ( )Diluted ( )

Significant Accounting Policies 1The accompanying notes are integral part of the Financial Statements.As per our report of even date attached




Note No.

2.272.282.29

2.302.312.322.332.34

2.35

2.362.36


134

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (SOCIE)FOR THE YEAR ENDED ON 31ST MARCH, 2020

A. Equity Share Capital ( in Lakh)

Particulars Number of Shares AmountISSUED, SUBSCRIBED AND PAID UP CAPITALEquity shares of 2/- each fully paid up

As at 1st April 2018 31,80,00,000 6,360.00Increase/(decrease) during the year - -

As at 31st March 2019 31,80,00,000 6,360.00As at 1st April 2019 31,80,00,000 6,360.00Increase/(decrease) during the year - -As at 31st March 2020 31,80,00,000 6,360.00

B. Other Equity ( in Lakh)

*Impact of adjustments on account of prior period items has been explained in note number 2.48.As per our report of even date attached




Particulars

Balance as at 1st April, 2018Adjustments on account of Prior period errors*Restated balance at the beginning of thereporting periodProfit for the year*Other comprehensive income for the yearTotal comprehensive income for the yearCash dividends (Note 2.17)Dividend Distribution Tax (DDT)Balance as at 31st March, 2019Impact of transition to appendix C of Ind AS 12 &Ind AS 116On consolidation adjustment (refer note 2.48 (b))Balance as at 1st April, 2019Profit for the yearOther comprehensive income for the yearTotal comprehensive income for the yearCash dividends (Note 2.17)Dividend Distribution Tax (DDT)Balance as at 31st March, 2020

Reserves & SurplusGeneral Retainedreserve earnings

273,741.72 113,005.71- 28.26

273,741.72 113,033.97- 21,984.24- 724.22- 22,708.46- (11,130.00)- (2,287.80)

273,741.72 122,324.63

- (3,194.65)- 10.29

273,741.72 119,140.27- 20,406.41- (334.38)- 20,072.03- (6,360.00)- (1,307.32)

273,741.72 131,544.98

Equity TotalInstruments Other

through Other EquityComprehensive

Income42,006.50 428,753.93

- 28.26

42,006.50 428,782.19- 21,984.24

(12,703.76) (11,979.54)(12,703.76) 10,004.70

- (11,130.00)- (2,287.80)

29,302.74 425,369.09

- (3,194.65)- 10.29

29,302.74 422,184.73- 20,406.41

(16,137.88) (16,472.26)(16,137.88) 3,934.15

- (6,360.00)- (1,307.32)

13,164.86 418,451.56


135

CONSOLIDATED STATEMENT OF CASH FLOWFOR THE YEAR ENDED ON 31ST MARCH, 2020

( in Lakh)

2019-20

26,039.14

9,157.93 -

64.44 (158.65)

(50.69) -

(828.12) 10.29

184.86 (9,309.90) 25,109.30

(17,869.70) 237.19

7,623.81 15,100.60

(15,851.39) (750.79)

(1,024.65) 77.46 12.86

9,309.90 828.12

9,203.69

(7,667.32) (7,667.32)

785.58 8,726.36 9,511.94

-

5,166.45 255.25

4,090.24 9,511.94

2018-19

38,821.41

9,613.73 6.87 9.08

98.18 (32.86)

21,437.46 (789.74)

28.26 150.72

(8,592.89) 60,750.22

(13,064.45) (2,570.43)

(11,128.16) 33,987.18

(19,745.65) 14,241.53

(7,142.22) 77.41 (0.91)

8,592.89 789.74

2,316.91

(13,431.78) (13,431.78)

3,126.66 5,599.70 8,726.36

-

4,676.36 -

4,050.00 8,726.36

Particulars

Cash Flow from Operating ActivitiesNet Profit before taxAdjustments for:

Depreciation and Amortisation ExpensesProvision for Doubtful Debts, Investments and Loans and AdvancesAssets /sundry balance/ stores written offExcess/Short provision adjustedSurplus / (Deficit) on sale of assetsLoss on InvestmentsDividend IncomePrior period/consolidation adjustmentUnwinding of discount on provisionsInterest from Banks and Corporates

Operating profit before working capital changes:Adjustments for: Trade and Other Receivable Inventories Trade and Other Payable

Cash generated from OperationsTaxes Paid

Net Cash Flow from Operating Activities (A)Cash Flow from Investing Activities

Purchase of items of property, plant and equipment,investment properties and intangible itemsSale of fixed assetsBank deposits (placed) / maturedInterest from Banks and CorporatesDividend Income

Net Cash Flow from Investing Activities (B)Cash Flow from Financing Activities

Dividend (Including Corporate Dividend Tax) PaidNet Cash Flow from Financing Activities (C)Net Increase / (Decrease) in Cash and Cash Equivalents (A+ B+ C)Cash and Cash Equivalents at the beginning of the periodCash and Cash Equivalents at the end of the periodNotes to Statement of Cash Flow1. Cash and cash equivalent includes-

Cash and Cheques on HandBalances with Scheduled Banksin Current Accountsin Deposit Accounts (original maturity for less than three months)Deposits with financial institutions

2. Corresponding figures of the previous year have been re-grouped / re-arranged / re-classified / restated and revised,wherever necessary, for rounding off to nearest lakh and/or to make them comparable with the figures of the currentyear.

3. The Cash Flow Statement has been prepared under the ‘Indirect Method’ as per Ind AS 7.As per our report of even date attachedFor Soni Jhawar & Co. Anupma Iyer L. Kulshrestha Arunkumar Solanki, IASChartered Accountants General Manager (Accounts) Chief General Manager & Managing DirectorFirm Registration No.110386W Chief Financial Officer DIN: 03571453Harish Daga Joel Evans S.B. DangayachPartner Company Secretary DirectorMembership No. 409620 DIN-01572754Place: Ahmedabad Place: AhmedabadDate: 23rd June 2020 Date: 23rd June 2020


136

1: Significant Accounting Policies on Consolidated Financial StatementsNote 1: Significant accounting policiesThis note provides list of the significant accounting policies applied in the preparation of these consolidated financialstatements.

(a) Basis of preparation(i) Statement of compliance with Ind AS

The consolidated financial statements are prepared in accordance with Indian Accounting Standards (IndAS) notified under Section 133 of the Companies Act, 2013 (the Act) read with the Companies (IndianAccounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.

(ii) Historical cost conventionThe financial statements are prepared on accrual basis of accounting under historical cost convention inaccordance with generally accepted accounting principles in India and the relevant provisions of the Actincluding Indian Accounting Standards notified there under, except for the following where the fairvaluation have been carried out in accordance with the requirements of respective Ind AS:

• Investments in equity instruments;• Non-current assets held for sale; and• Employee defined benefit plans - plan assets.

Prior period/ Pre-paid items:Items exceeding the materiality determined by the management ( 50000/-) are accounted retrospectivelyby restating the figures of relevant accounting periods. Other items are accounted in the year in whichthey arise.

(iii) Use of estimates and judgementsThe preparation and presentation of the financial statements are in conformity with the Ind AS whichrequires the management to make estimates, judgments and assumptions that affect the reportedamounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Suchestimates and assumptions are based on management's evaluation of relevant facts and circumstancesas on the date of financial statements. The actual outcome may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accountingestimates are accounted prospectively.

This policy provides an overview of the areas that involved judgement and items which are more likely to bematerially adjusted due to estimates and assumptions turning out to be different than those originallyassessed. Detailed information about each of these estimates and judgements is included in relevant notestogether with information about the basis of calculation for each affected line item in the financialstatements.

Information about assumptions, estimation and uncertainties that have a significant risk of resulting in amaterial adjustment within the next financial year are included in the following notes:Note 2.02- Fair valuation of investment propertiesNote 2.15- Fair valuation of non-current assets held for saleNote 2.19/2.37 - Provisions and contingent liabilitiesNote 2.21 - Current / Deferred tax liabilitiesNote 2.25 - Measurement of employee defined benefit liabilitiesNote 2.42 - Impairment of items of property, plant and equipment and other assetsNote 2.45 - Impairment of financial assets (including expected credit losses for receivables)Note 2.45- Fair valuation of investmentsPrinciples of fair value measurement have been provided in note (m) of the significant accounting policies.

(iv) Current versus non-current classificationThe Company presents assets and liabilities in the Balance Sheet based on current/non-currentclassification as per the requirements of Ind AS compliant Schedule III to the Act.


137

(b) Principles of consolidation and equity accounting –i. Subsidiaries /100% controlled entities–

Subsidiaries are all entities (including structured entities) over which the Company has control. TheCompany controls an entity when the Company is exposed to, or has rights to, variable returns from itsinvolvement with the entity and has the ability to affect those returns through its power to direct therelevant activities of the entity. Subsidiaries are fully consolidated from the date on which control istransferred to the group. They are deconsolidated from the date that control ceases.

The Company combines the financial statements of the parent and its subsidiaries line by line addingtogether like items of assets, liabilities, equity, income and expenses. Inter company transactions,balances and unrealised gains on transactions between group companies are eliminated. Unrealisedlosses are also eliminated unless the transaction provides evidence of an impairment of the transferredasset. Accounting policies of subsidiaries have been aligned where necessary to ensure consistency withthe policies adopted by the group.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidatedstatement of profit and loss, consolidated statement of changes in equity and balance sheet respectively.

ii. Associates –Associates are all entities over which the group has significant influence but not control or joint control.Investments in associates are accounted for using the equity method of accounting after initially beingrecognised at cost. Equity accounting is discontinued from the date when cease to have significantinfluence on the investee.

iii. Joint arrangementsUnder Ind AS 111 Joint Arrangements, investments in joint arrangements are classified as either jointoperations or joint ventures. The classification depends on the contractual rights and obligations of eachinvestor, rather than the legal structure of the joint arrangement.

iv. Joint VenturesInterests in joint ventures are accounted for using the equity method, after initially being recognised atcost in the consolidated balance sheet.

Under the equity method of accounting, the investments are initially recognised at cost and adjustedthereafter to recognise the group’s share of the post-acquisition profits or losses of the investee in profitand loss, and the group’s share of other comprehensive income of the investee in other comprehensiveincome. Dividends received or receivable from associates and joint ventures are recognised as areduction in the carrying amount of the investment.

When the group’s share of losses in an equity-accounted investment equals or exceeds its interest in theentity, including any other unsecured long-term receivables, the group does not recognise further losses,unless it has incurred obligations or made payments on behalf of the other entity.

Unrealised gains on transactions between the group and its associates and joint ventures are eliminated tothe extent of the group’s interest in these entities. Unrealised losses are also eliminated unless the transactionprovides evidence of an impairment of the asset transferred. Accounting policies of equity accounted investeeshave been changed where necessary to ensure consistency with the policies adopted by the group.

(c) Borrowing costsBorrowing costs attributable during the acquisition or construction of qualifying assets are capitalised as part ofthe cost of the assets. A qualifying asset is one that necessarily takes substantial period of time to get readyfor intended use. All other borrowing costs are charged to revenue.

(d) Property, Plant and Equipment (PPE)Freehold land is carried at historical cost. All other items of PPE are stated at historical cost of acquisition/construction (net of recoverable taxes) less accumulated depreciation and impairment losses, if any.

Historical cost includes expenditure that is directly attributable to the acquisition as well as construction/installation of the items but excludes cost of fencing in lignite mines projects. Subsequent costs are includedin the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable thatfuture economic benefits associated with the item will flow to the Company and the cost of the item can be


138

measured reliably. All other repairs and maintenance expenses are charged to Statement of Profit and Lossduring the reporting period in which they are incurred. Rehabilitation and resettlement expenses incurred afterinitial acquisition of the assets are expensed to profit or loss in the year in which they are incurred.

Machinery spares for Generating Units, Power Station and Switchyard, etc. either procured along with theequipment or subsequently are capitalized in the asset’s carrying amount or recognised as a separate asset,as appropriate, only when it is probable that future economic benefits associated with the item will flow to theCompany and the cost of the item can be measured reliably.

The present value of the expected cost for the decommissioning of an asset after its use is included in thecost of the respective asset if the recognition criteria for a provision are met.

Capital Work-in-progress includes expenditure that is directly attributable to the acquisition/construction ofassets, which are yet to be commissioned and project inventory and assets in transit.

An item of PPE is derecognised upon disposal or when no future economic benefits are expected to arisefrom the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of PPEis recognised in the Statement of Profit and Loss.

Un-serviceable/worn out plant and equipments, vehicles and other assets of the Company are written off fromthe books of account to the extent of 95% of their cost after getting approval of appropriate authorities. Thesame are stated at the lower of their net book value or net realizable value.

Item of PPE received by Company at free of cost from parties other than government are stated at nominal cost.

(e) Investment propertiesInvestment properties comprise free hold land and building(including properties under construction) that areheld for rental yield and/or capital appreciation.

Investment property is measured initially at its cost, including related transaction costs. Subsequentexpenditure is capitalised to the asset's carrying amount only when it is probable that future economicbenefits associated with the item will flow to the Company and the cost of the item can be measured reliably.All other repairs and maintenance expenses are charged to Statement of Profit and Loss during the reportingperiod in which they are incurred.

(f) Intangible assetsIntangible assets are measured on initial recognition at cost (net of recoverable taxes, if any). Subsequently,intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.

The costs of mining leases, which include the costs of acquiring mineral rights, are capitalised as item ofintangible assets under the head ‘Mining rights’ in the year in which they are incurred. Pre-operative Expensesof Mines/Mining Projects under implementation incurred up to the date of commencement of the productionon commercial basis are written off to the Statement of Profit and Loss in the year in which they are incurred.

(g) Depreciation and amortisation methods, estimated useful lives and residual values(i) Items of property, plant and equipment and investment properties

Depreciation is charged on straight line method (SLM) based on the life of the asset prescribed inSchedule II to the Act. The assets’ residual values and useful lives are reviewed, and adjusted ifappropriate, at the end of each reporting date.

Depreciation on items of property, plant and equipment acquired / disposed off during the year is providedon pro-rata basis with reference to the date of addition / disposal.

Investment properties are depreciated on SLM based on the useful lives of the assets prescribed inSchedule II to the Act.

Low value items which are in the nature of assets (excluding immovable assets) and valuing up to 5,000/- are not capitalized and charged off to Statement of Profit and Loss in the year of acquisition.

(ii) Intangible assetsIntangible assets with finite lives are amortised over their useful life and assessed for impairment whenever


139

there is an indication that the item of intangible asset may be impaired. The amortisation period for and theamortisation method an intangible asset with a finite useful life are reviewed at each reporting date.

Intangible assets are amortised on SLM based on the useful lives determined based on technical evaluationdone by the management except mining rights which are amortised using a unit-of-production methodbased on the data available with the Company as regards extraction of the minerals as compared to thetechnical estimation of gross geological mineral reserves as mentioned in the submitted / approved mineclosure plan. Capitalized mining rights are amortised once commercial production commences.

(h) Impairment of non-financial assetsAn asset is treated as impaired when carrying cost of asset exceeds its recoverable value. An impairmentloss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired. Theimpairment loss recognized in prior accounting period is reversed, if there has been a change in estimate ofrecoverable amount. In case of intangible assets, the same is tested on periodical basis for impairment.

Full provision is made on plant and machinery which has not been put to use and lying in capital work inprogress for more than ten years.

(i) LeasesThe determination of whether an arrangement is (or contains) a lease is based on the substance of thearrangement at the inception of the lease. A contract is, or contains, a lease if the contract conveys the rightto control the use of an identified asset for a definite period of time in exchange for consideration. To assesswhether a contract conveys the right to control the use of an identified asset, the Company assesses whether:(i) the contract involves the use of identified asset;(ii) the Company has substantially all of the economic benefits from the use of the asset through the period of

lease and(iii) the Company has right to direct the use of the asset.

Lease accountingAs a lesseeThe Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted forany lease payments made at or before the commencement date, plus any initial direct costs incurred and anestimate of costs to dismantle and remove the underlying asset or to restore the site on which it is located,less any lease incentives received.

Certain lease arrangements include the option to extend or terminate the lease before the end of the leaseterm. The right-ofuse assets and lease liabilities include these options when it is reasonably certain that theoption will be exercised.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencementdate to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. Theestimated useful lives of right-of-use assets are determined on the same basis as those of property, plant andequipment.

The lease liability is initially measured at the present value of the lease payments that are not paid at thecommencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readilydetermined, the Company’s incremental borrowing rate. Generally, the Company uses its incrementalborrowing rate as the discount rate.

The lease liability is subsequently measured at amortised cost using the effective interest method. It isremeasured when there is a change in future lease payments arising from a change in an index or rate, if thereis a change in the Company’s estimate of the amount expected to be payable under a residual valueguarantee, or if Company changes its assessment of whether it will exercise a purchase, extension ortermination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amountof the right-ofuse asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has beenreduced to zero.


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Lease payments have been classified as financing activities.

The Company has elected not to recognise right-of-use assets and lease liabilities for short term leasesthat have a lease term of less than or equal to 12 months with no purchase option and assets with lowvalue leases. The Company recognises the lease payments associated with these leases as an expensein statement of profit and loss over the lease term. The related cash flows are classified as operatingactivities.

As a lessorLeases for which the Company is a lessor is classified as finance or operating leases. When the terms of thelease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as afinance lease. All other leases are classified as operating leases.

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-linebasis over the lease term.

Adoption of Ind AS 116 and TransitionEffective from 1st April 2019 (‘the date of transition’), the Company has applied Ind AS 116 using the modifiedretrospective approach, under which the cumulative effect of initial application is recognised in retainedearnings.

On transition to Ind AS 116, the Company has elected to apply the practical expedient to grandfather theassessment of which transactions are leases. The definition of a lease under Ind AS 116 is applied only tocontracts entered into or changed on or after 1st April 2019. The Company has applied accounting under Ind AS116 also to contracts that were previously identified as leases under Ind AS 17.

(j) Non-current assets held for sale and discontinued operationsNon-current assets are classified as held for sale if their carrying amount will be recovered principally througha sale transaction rather than through continuing use and a sale is considered highly probable. They aremeasured at the lower of their carrying amount and fair value less costs to sell, except for assets such asdeferred tax assets, assets arising from employee benefits, financial assets and contractual rights underinsurance contracts, which are specifically exempt from this requirement.

Non-current assets are not depreciated or amortised while they are classified as held for sale. Non-currentassets classified as held for sale are presented separately from the other assets in the Balance Sheet.

A discontinued operation is a component of the Company that has been disposed of or is classified as heldfor sale and that represents a separate major line of business or geographical area of operations, is part of asingle co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiaryacquired exclusively with a view to resale. The results of discontinued operations are presented separately inthe Statement of Profit and Loss.

(k) Financial instrumentsA financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability orequity instrument of another entity.

Financial assetsInitial recognitionA financial asset is recognised in the Balance Sheet when the Company becomes party to the contractual

provisions of the instrument.

Initial measurementAt initial recognition, the Company measures a financial asset (which is not measured at fair value)

through profit or lossat its fair value plus or minus transaction costs that are directly attributable to theacquisition or issue of the financial asset.

Subsequent measurementFor purpose of subsequent measurement, financial assets are classified into:A. Financial assets measured at amortised cost;B. Financial assets measured at fair value through profit or loss (FVTPL); and


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C. Financial assets measured at fair value through other comprehensive income (FVTOCI).

The Company classifies its financial assets in the above mentioned categories based on:A. The Company’s business model for managing the financial assets, andB. The contractual cash flows characteristics of the financial asset.

A financial asset is measured at amortised cost if both of the following conditions are met:A. The financial asset is held within a business model whose objective is to hold financial assets in order to

collect contractual cash flows andB. The contractual terms of the financial assets give rise on specified dates to cash flows that are solely

payments of principal and interest (SPPI) on the principal amount outstanding.

Amortised cost of a financial asset or financial liability means the amount at which the financial asset orfinancial liability is measured at initial recognition minus the principal repayments, plus or minus thecumulative amortisation using the effective interest rate (EIR) method of any difference between that initialamount and the maturity amount and, for financial assets, adjusted for any loss allowance.

Financial assets are subsequently measured at amortised cost using the EIR method. Amortised cost iscalculated by taking into account any discount or premium on acquisition and fees or costs that are anintegral part of the EIR. The EIR amortisation is included in finance income through profit or loss. The lossesarising from impairment are recognised through profit or loss.

A financial asset is measured at FVTOCI if both of the following conditions are met:A. The financial asset is held within a business model whose objective is achieved by both collecting the

contractual cash flows and selling financial assets andB. The asset’s contractual cash flows represents SPPI.

A financial asset is measured at FVTPL unless it is measured at amortised cost or at FVTOCI. In addition, theCompany may elect to designate a financial asset, which otherwise meets amortized cost or FVTOCI criteria,as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement orrecognition inconsistency (referred to as ‘accounting mismatch’).

Trade receivablesTrade receivables are recognised initially at fair value and subsequently measured at amortised cost, lessprovision for impairment.

Equity instrumentsAll equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are heldfor trading are classified as at FVTPL. For all other equity instruments, the Company may make anirrevocable election to present subsequent changes in the FVTOCI. The Company makes such election on aninstrument by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on theinstrument, excluding dividends, are recognized in the Other Comprehensive Income (OCI). On sale ofinvestments, cumulative gain or loss is recognised in OCI and the amount is not reclassified to profit or loss.Equity instruments included within the FVTPL category are measured at fair value with all changesrecognised through Profit or Loss.

The company has elected to measure its equity instrument through FVTOCI.

DerecognitionA financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets)is primarily derecognised (i.e. removed from the Company's Balance Sheet) when:A. The contractual rights to the cash flows from the financial asset have expired, orB. The Company has transferred its rights to receive cash flows from the asset or has assumed an

obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and eitheri) The Company has transferred substantially all the risks and rewards of the asset, or


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ii) The Company has neither transferred nor retained substantially all the risks and rewards of the asset,but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership.When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nortransferred control of the asset, the Company continues to recognise the transferred asset to the extent of theCompany’s continuing involvement. In that case, the Company also recognises an associated liability. Thetransferred asset and the associated liability are measured on a basis that reflects the rights and obligationsthat the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at thelower of the original carrying amount of the asset and the maximum amount of consideration that theCompany could be required to repay.

Impairment of financial assetsThe Company assesses impairment based on expected credit loss (ECL) model to the following:A. Financial assets measured at amortised costB. Financial assets measured at FVTOCI

ECLs are measured through a loss allowance at an amount equal to:A. The 12-months ECLs (ECLs that result from those default events on the financial instrument that are

possible within 12 months after the reporting date); orB. Full time ECLs (ECLs that result from all possible default events over the life of the financial instrument).

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivables. Itrecognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

The Company uses a provision matrix to determine impairment loss allowance for trade receivables. Theprovision matrix is based on its historically observed default rates over the expected life of the tradereceivable and is adjusted for forward looking estimates. At every reporting date, the historical observeddefault rates are updated and changes in the forward-looking estimates are analysed.

For recognition of impairment loss on other financial assets and risk exposure, the Company determineswhether there has been a significant increase in the credit risk since initial recognition. If credit risk has notincreased significantly, 12-months ECL is used to provide for impairment loss. However, if credit risk hasincreased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrumentimproves such that there is no longer a significant increase in credit risk since initial recognition, then theCompany reverts to recognising impairment loss allowance based on 12-months ECL

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expensein the Statement of Profit and Loss. The Balance Sheet presentation for various financial instruments isdescribed below:A. Financial assets measured as at amortised cost and contractual revenue receivables minus ECL is

presented as an allowance, i.e., as an integral part of the measurement of those assets in the BalanceSheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, thecompany does not reduce impairment allowance from the gross carrying amount.

B. Financial assets measured at FVTOCI - Since financial assets are already reflected at fair value,impairment allowance is not further reduced from its value. Rather, ECL amount is presented asaccumulated impairment amount in the OCI.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments onthe basis of shared credit risk characteristics with the objective of facilitating an analysis that is designed toenable significant increases in credit risk to be identified on a timely basis.

Financial LiabilitiesInitial recognition and measurementAll financial liabilities are recognised initially at fair value and, in case of loans and borrowings and payables,net of directly attributable transaction costs.


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Subsequently, all financial liabilities are measured at amortised cost or at FVTPL. The Company’s financialliabilities include trade and other payables, loan and borrowings including bank overdrafts.

Subsequent measurementA. Financial liabilities measured at amortised costB. Financial liabilities subsequently measured at FVTPL

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initialrecognition as at FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose ofrepurchasing in the near term. Gains or losses on liabilities held for trading are recognised through profit or loss.

Financial liabilities designated upon initial recognition at FVTPL are designated as such at the initial date ofrecognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair valuegains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are notsubsequently transferred to Profit or loss. However, the Company may transfer the cumulative gain or losswithin equity. All other changes in fair value of such liability are recognised in the Statement of Profit and Loss.The Company has not designated any financial liability as at FVTPL.

Trade and other payablesThese amounts represent liability for goods and services provided to the Company prior to the end of financialyear which are unpaid. Trade and other payables are presented as current liabilities unless payment is notdue within 12 months after the reporting period. They are recognised initially at fair value and subsequentlymeasured at amortised cost using the EIR method.

DerecognitionA financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.When an existing financial liability is replaced by another such liability from the same lender on substantiallydifferent terms, or the terms of an existing liability are substantially modified, such an exchange ormodification is treated as the derecognition of the original liability and the recognition of a new liability. Thedifference in the respective carrying amounts is recognised in the Statement of Profit and Loss.

(l) Offsetting financial instrumentsFinancial assets and financial liabilities are offset and the net amount is reported in the Balance Sheet when,and only when, there is a legally enforceable right to offset the recognised amount and there is intention eitherto settle on net basis or to realise the assets and to settle the liabilities simultaneously. The legallyenforceable right must not be contingent on future events and must be enforceable in the normal course ofbusiness and in the event of default, insolvency or bankruptcy of the Company or counterparty.

(m) Fair value measurementThe Company measures certain financial instruments at fair value at each Balance Sheet date. The fair valuemeasurement is based on the presumption that the transaction to sell the asset or transfer the liability takesplace either:A. In the principal market for the asset or liability, orB. In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company. The fair value of anasset or a liability is measured using the assumptions that market participants would use when pricing theasset or liability, assuming that market participants act in their best economic interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficientdata are available to measure fair value, maximising the use of relevant observable inputs and minimising theuse of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements arecategorised within the fair value hierarchy, described as under, based on the lowest level input that issignificant to the fair value measurement as a whole:A. Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities.B. Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value

measurement is directly or indirectly observable.


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C. Level 3 - Valuation techniques for which the lowest level input that is significant to the fair valuemeasurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Companydetermines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation(based on the lowest level input that is significant to the fair value measurement as a whole) at the end ofeach reporting period.

This note summarises the accounting policy for fair value. Other fair value related disclosures are given in therelevant notes.

A. Note 2.02 - Fair valuation of investment propertiesB. Note 2.15 - Fair valuation of non-current assets held for saleC. Note 2.25 - Measurement of employee defined benefit obligationsD. Note 2.45 - Disclosures for valuation methods, significant estimates and assumptionsE. Note 2.45 - Quantitative disclosures of fair value measurement hierarchyF. Note 2.45 - Financial instruments (including those carried at amortised cost)G. Note 2.45 - Fair valuation of investments

(n) InventoriesStores, chemicals, spares, fuel and loose tools are valued at cost. Cost is ascertained on weighted average method.

Raw materials, mined ore, goods-in-process and finished products are valued at lower of total cost incurred atrespective project or net realizable value item-wise. Cost is ascertained on First In First Out basis. Whilevaluing inventories, the inter unit profit is eliminated at corporate level, if any. Further, the Company does notvalue the stock of by-products lying at various project sites.

Spares (not meeting the definition of PPE) are accounted as inventory and expensed to the Statement ofProfit and Loss when issued for consumption.

(o) Employee benefits(i) Short term employee benefit obligations

Liabilities for wages, salaries, including non-monetary benefits that are expected to be settled whollywithin 12 months after the end of the period in which the employees render the related services arerecognised in respect of employees' services up to the end of the reporting period and are measured atthe amounts expected to be paid when the liabilities are to be settled. The liabilities are presented ascurrent employee benefit obligations in the Balance Sheet.

(ii) Other long term employee benefit obligationsThe liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months afterthe end of the period in which employees render the related service. They are therefore measured at thepresent value of expected future payments to be made in respect of services provided by employees up tothe end of reporting period using the projected unit credit method. The benefits are discounted using themarket yield at the end of reporting period that have terms approximating to the terms of related obligation.Remeasurement as a result of experience adjustments and changes in actuarial assumptions arerecognised in the Statement of Profit and Loss.

The obligations are presented as current liabilities in the Balance Sheet if the Company does not haveunconditional right to defer settlement for at least 12 months after the reporting period, regardless ofwhen the actual settlement is expected to occur.

Compensation paid to the legal heirs of deceased employee while in service is charged to Statement ofProfit and Loss as and when the liability arises.

The principal amount and interest thereon in respect of House Building Advance in case of deceasedemployee while in service is written off as and when intimation is received.

(iii) Post-employment obligationsThe Company operates the following post-employment schemes:


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A. Defined benefit plans such as gratuity; andB. Defined contribution plan such as provident fundetc.

Gratuity obligationsThe liability or asset recognised in the Balance Sheet in respect of defined benefit gratuity plans is presentvalue of the defined benefit obligation at the end of the reporting period less the fair value of plan assets.The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligations is determined by discounting the estimated futurecash outflows by reference to market yields at the end of the reporting period on government bonds thathave terms approximating to the terms of the related obligation. The net interest cost is calculated byapplying the discount rate to the net balance of the defined benefit obligation and the fair value of planassets. This cost is included in employee benefit expenses in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarialassumptions are recognised in the period in which they occur, directly in OCI. They are included inretained earnings in the Statement of Changes in Equity and in the Balance Sheet. Changes in presentvalue of the defined benefit obligation resulting from plan amendment or curtailments are recognisedimmediately in profit or loss as past service cost.

Provident FundThe Company pays provident fund contributions to GMDC Employees Provident Fund Trust. TheCompany has no further payment obligations once the contributions have been paid. The contributionsare accounted for as defined contribution plans and the contributions are recognised as employeebenefit expenses when they are due. Prepaid contributions are recognised as an asset to the extent thata cash refund or a reduction in the future payment is available.

Reimbursement of losses and other related expenses to Provident Fund Trust are charged to theStatement of Profit and Loss as and when crystallized.

(iv) Termination benefitsCompensation to employees who have opted for retirement under the voluntary retirement scheme ofthe Company is charged to Statement of Profit and Loss in the year of separation.

(p) Foreign currency transactions(i) Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economicenvironment in which the Company operates ('the functional currency'). The consolidated financial statementsare presented in Indian rupee (INR), which is the Company's functional and presentation currency.

(ii) Transactions and balancesForeign currency transactions are translated into the functional currency using the exchange rates at thedate of the transactions. Foreign exchange gains and losses resulting from the settlement of suchtransactions and from the translation of monetary assets and liabilities denominated in foreigncurrencies at the year-end exchange rates are generally recognised in profit or loss.

Foreign exchange differences regarded as an adjustment to borrowing costs are presented in theStatement of Profit and Loss. All other foreign exchange gains and losses are presented in theStatement of Profit and Loss on a net basis within other income or other expenses.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translatedusing the exchange rates at the dates of the initial transactions. Non-monetary items that are measuredat fair value in a foreign currency are translated using the exchange rates at the date when the fair valuewas determined. Translation differences on assets and liabilities carried at fair value are reported as partof the fair value gain or loss.

(q) Revenue recognitionInd AS 115 specifies a uniform, five-step model for revenue recognition, which is generally to be applied to allcontracts with customers. Revenue from contract with customer is recognised when control of goods orservices is transferred to customer. Revenue is measured at the price which company expects to be entitled


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in exchange for those goods or service. Amounts disclosed as revenue are net of the amounts collected onbehalf of third parties.

The Company recognizes revenue from sale of goods measured at the fair value of the consideration received orreceivable, upon satisfaction of performance obligation which is at a point in time when control of the goods istransferred to the customer, generally on delivery of the goods. Depending on the terms of the contract, whichdiffers from contract to contract, the goods are sold on a reasonable credit term. As per the terms of the contract,consideration that is variable, according to Ind AS 115, is estimated at contract inception and updated thereafterat each reporting date or until crystallisation of the amount.

Sales include amounts in respect of royalty, transportation, packing charges, generation based incentives,GST compensatory cess, mine closure charges wherever applicable and other taxes or duties, if any, butexcludes GST. Sales are reduced to the extent of the amount of cash discount.

The liquidated damage/penalty, if any, on capital contracts are generally determined on completion of contractand the same is recognised in the Statement of Profit and Loss. Liquidated damages/penalty on long termrevenue contracts are determined at the end of one year from the date of award of contract sand the same isrecognised in the Statement of Profit and Loss.

Revenues from contracts priced on a time and material basis are recognised on satisfaction of performanceobligation towards rendering of such services.

In respect of power plants, Unscheduled Interchange (UI) Charges and Generation Based Incentives (GBI)are recognized as and when the same are received / incurred by the Company.

Interest income from a financial asset is recognised when it is probable that future economic benefit will flowto the Company and the amount of income can be measured reliably. Interest income is accrued on a timebasis, by reference to the principal outstanding and at the EIR applicable, which is the rate that exactlydiscounts estimated future cash flows through the expected life of the financial asset to that asset’s grosscarrying amount on initial recognition.

Dividend income is accounted for when the right to receive the same is established, which is generally whenthe shareholders approve the dividend.

(r) Government grantsGrants from the Government are recognised at their fair value where there is a reasonable assurance that thegrant will be received and the Company will comply with all attached conditions.

Government grants relating to income are deferred and recognised in the Statement of Profit and Loss overthe period necessary to match them with the costs that they are intended to compensate and presented withinthe other income.

Government grants relating to purchase/construction of items of PPE or investment properties are deducted fromthe cost of purchase/ construction in arriving at the carrying amount of the related asset in line with Ind AS 20.

(s) Stripping CostsExpenditure incurred on removal of mine waste materials (overburden) necessary to extract the lignitereserves is referred to as stripping cost. The Company has to incur such expenses over the life of the mineas technically estimated.

Where, the company has awarded “unit rate” based contracts for overburden removal and lignite extraction,stripping cost is charged on technically evaluated average stripping ratio at each plot of mine after dueadjustment for stripping activity on FIFO basis in the Statement of Profit & Loss under the head Loading oflignite and overburden removal.

Balance amount in stripping activity adjustment account is shown in the Balance Sheet under the head “OtherNon-Financial Assets/ Provisions” as the case may be.

(t) TaxationIncome taxThe income tax expense or credit for the period is the tax payable on the current period's taxable income


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based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributableto temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted atthe end of the reporting period. Current income tax assets and liabilities are measured at the amountexpected to be recovered from or paid to the taxation authorities, based on the rates and tax laws enacted orsubstantively enacted, at the reporting date. Current tax items are recognised in correlation to the underlyingtransaction either in OCI or directly in equity.

Deferred taxDeferred tax is provided in full on temporary difference arising between the tax bases of the assets andliabilities and their carrying amounts in consolidated financial statements.

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enactedby the end of the reporting period and are expected to apply when the related deferred income tax asset isrealised or the deferred income tax liability is settled. Deferred tax assets are recognised for all deductibletemporary differences and unused tax losses only if it is probable that future taxable amounts will be availableto utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current taxassets and liabilities and when the deferred tax balances relate to the same taxation authority. Current taxassets and tax liabilities are offset where the Company has a legally enforceable right to offset and intendseither to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax are recognised in the Statement of Profit and Loss, except to the extent that it relatesto items recognised in OCI or directly in equity. In this case, the tax is also recognised in OCI or directly in equity,respectively.Any tax credit available is recognised as deferred tax to the extent that it is probable that futuretaxable profit will be available against which the unused tax credits can be utilised. The said asset is created byway of credit to the Statement of Profit and Loss and shown under the head deferred tax asset.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent thatit is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred taxasset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and arerecognised to the extent that it has become probable that future taxable profits will allow the deferred taxasset to be recovered.

Transition to appendix C of Ind AS 12:With effect from 1st April, 2019 the Ministry of Corporate Affairs has notified IFRIC 23 as Appendix C to Ind AS12 which shows as to how uncertainty over tax treatments would affect the accounting for income taxes. TheCompany considers on the Balance Sheet date whether it is probable that taxation authority will accept anuncertain tax position and based on the probability of likelihood of events Company recognises additional taxliability, if any, and cumulative effect thereof is given in opening equity without adjusting comparative information.

(u) Provisions, contingent liabilities and contingent assetsProvisions are recognised at present value when the Company has a present obligation (legal or constructive)as a result of a past event, it is probable that an outflow of resources embodying economic benefits will berequired to settle the obligation and a reliable estimate can be made of the amount of the obligation. Theexpense relating to a provision is presented in the Statement of Profit and Loss net off reimbursement, if any.

Decommissioning costs are provided at the present value of expected costs to settle the obligation usingestimated cash flows and are recognised as part of the cost of PPE. The cash flows are discounted at acurrent pre-tax rate that reflects the risk specific to the decommissioning liability. The unwinding of discount isexpensed as incurred and recognised in the Statement of Profit and Loss as a finance cost. The estimatedfuture costs of decommissioning are reviewed annually and adjusted as may be appropriate. Changes in theestimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.

Progressive mine closure expenses are accounted for as and when incurred.

In respect of lignite mines the annual mine closure cost per hectare is provided as per the mine closure guidelinesissued by the Ministry of Coal from time to time. Such annual cost is required to be modified with reference toWholesale Price Index (WPI) as mentioned and considered in the mine closure plan submitted / approved for


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the respective mines. The mine closure provisions are required to be provided in line with the approved / submitted/ prepared/draft mine closure plans. In case the mine closure plan has not been submitted / approved / preparedthe annual cost is estimated based on the above referred guidelines.

In respect of mines other than lignite mines, mine closure activities are carried out as per the approved /submitted / prepared/draft mine closure plans. However, in the absence of specific guidelines by Indian Bureauof Mines(IBM) for making provision for the annual mine closure cost per hectare, financial assurance in the formof Bank Guarantee of requisite amount is submitted to IBM. A certificate/confirmation is obtained from ourtechnical division for mine closure activities carried out by the company either departmentally or through outsideagencies. Expenses incurred departmentally on mine closure activities are debited to the respective head ofexpenses incurred and provision is made for material shortfall therein, if advised by the technical division.

Contingent liabilities are not provided for,If material, are disclosed by way of notes to accounts. Contingentassets are not recognised in financial statements. However, the same is disclosed, where an inflow ofeconomic benefit is probable.

(v) Cash and Cash EquivalentsCash and cash equivalents comprise cash and short term deposits. The Company considers all highly liquidinvestments with original maturity of three months or less and that are readily convertible to known amountsof cash to be cash equivalents.

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash onhand, other short term, highly liquid investments with original maturities of three months or less that are readilyconvertible to known amounts of cash and which are subject to an insignificant risk of changes in value, andbank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Balance Sheet.

(w) Statement of Cash FlowsCash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects oftransactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts orpayments and item of income or expenses associated with investing or financing cash flows. The cash flowsfrom operating, investing and financing activities of the Company are segregated.

(x) DividendsThe Company recognises a liability for dividends to equity holders of the Company when the dividend isauthorised and the dividend is no longer at the discretion of the Company. As per the corporate laws in India,dividend is authorised when it is approved by the shareholders. A corresponding amount is recognised directlyin equity.

(y) Segment ReportingThe Chief Operational Decision Maker (CODM) monitors the operating results of its business segmentsseparately for the purpose of making decisions about resource allocation and performance assessment.Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss inthe financial statements. Operating segments are reported in a manner consistent with the internal reportingprovided to the CODM.

Accordingly, the Board of Directors of the Company is CODM for the purpose of segment reporting. Refernote 2.43 for segment information presented.

(z) Events occurring after the Balance sheet DateAdjusting events (that provides evidence of condition that existed at the Balance Sheet date) occurring after theBalance Sheet date are recognized in the financial statements. Material non adjusting events (that are inductiveof conditions that arose subsequent to the Balance Sheet date) occurring after the Balance Sheet date thatrepresents material change and commitments affecting the financial position are disclosed in the Board’s Report.

(aa) Exceptional ItemsCertain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinaryactivities of the Company is such that its disclosure improves the understanding of the performance of theCompany, such income or expense is classified as an exceptional item and accordingly, disclosed in thenotes accompanying to the financial statements.


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183

,400.1

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1,03

1.78

722.4

4 61

2.02

1,17

5.68

261.7

5 21

1,119

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Addi

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Adju

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272.2

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58.0

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0.66

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183

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6.75

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7.58

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6.22

426.4

9

82.9

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91.0

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9.86

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2.68

124.8

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6

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7

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150

Capital Work-in-progress: ( in Lakh)


Cost or deemed costBalance at the beginning of the Year 209.68 1,199.93Add: Addition during the Year 789.56 344.22Less: Transferred to Property, Plant & Equipments (436.48) (1,334.47)

Closing gross carrying value 562.76 209.68Accumulated Impairment AllowanceBalance at the beginning of the Year 133.23 133.23Add: Addition during the Year - -Closing Accumulated Impairment Allowance 133.23 133.23Closing net carrying value 429.53 76.45

Break-up of Capital Work-in-progress for the year ended 31st March, 2020 is given here under: ( in Lakh)Segment Civil Work Non-Civil Work TotalMining 45.76 - 45.76Power 252.52 - 252.52Unallocated 131.25 131.25

Total 429.53 - 429.53Previous Year 35.50 40.95 76.45

2.01.01 Gujarat State Electricity Corporation Limited (GSECL) and the Company had agreed to create commonamenities (school, hospital, drinking water supply, communication, transport facilities, etc.) for the employeesof both entities and also for general public in Panandhro in terms of minutes dated 8.10.1991, 3.8.1992,1.10.1993. These were to be managed by a Trust to be registered in this regard. Pending formation of theTrust, the capital and revenue expenditure incurred by the Company as well as GSECL are shared on 50:50basis and accounted in the books of the respective entity. Share of 50% given by each against the expenditureincurred by respective entity is subject to confirmation and adjustments, if any. Pending transfer of suchassets to the Trust, capital expenditure incurred in the creation of items of property, plant and equipmenttowards 50% share of the Company to the tune of 59.40 Lakh (P.Y. 59.40 Lakh) is accounted in thebooks of the Company and included in the respective items of property, plant and equipment.

2.01.02 Refer Note No.2.49 (a) for reclassification of assets initially determined as Prepaid Expenses as per INDAS 17, now Considered as Land - Lease hold as per IND AS 116.

2.02 INVESTMENT PROPERTIES ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Freehold land 1,669.00 1,669.00Building 7,389.86 7,514.13Total investment properties 9,058.86 9,183.13


31st March, 2020 31st March, 2019Freehold landCost or deemed costBalance at the beginning of the Year 1,669.00 1,669.00Closing net carrying value 1,669.00 1,669.00


151

( in Lakh)


BuildingCost or deemed costBalance at the beginning of the Year 7,876.97 7,856.54Add: Addition/(adjustments) during the Year (0.52) 20.43

Closing gross carrying value 7,876.45 7,876.97Accumulated depreciationBalance at the beginning of the Year 362.84 238.47Add: Addition during the Year 123.75 124.37Closing accumulated depreciation 486.59 362.84Closing net carrying value 7,389.86 7,514.13

2.02.01 Amount recognised in Statement of Profit and Loss for investment properties ( in Lakh)

Particulars 2019-20 2018-19Rental income* - -Direct operating expenses from property that generatedrental income - -Direct operating expenses from property that did notgenerate rental income - -Profit/(Loss) from investment properties before depreciation - -Depreciation (123.75) (124.37)

Profit/(Loss) from investment properties (123.75) (124.37)* Fixation of the rent of investment property is under process.

2.02.02 Fair Value ( in Lakh)


Investment Properties 11,683.95 11,683.95

Estimation of Fair ValueThe Company obtains valuation for its investment properties (other than those under construction) atleast annually. All resulting fair value estimates for investment properties are included in level 3. Forproperties under construction, management is of the view that the fair value can be determined reliablyonly on completion of the construction. Accordingly, the same shall be disclosed when the related work iscompleted.

2.03 OTHER INTANGIBLE ASSETS ( in Lakh)


Computer Softwares 226.40 264.53

Mining Rights 34,950.72 35,511.63

Total intangible assets 35,177.12 35,776.16


152


31st March, 2020 31st March, 2019Computer SoftwaresCost or deemed costBalance at the beginning of the Year 356.31 156.31Add: Addition during the Year - 200.00Closing gross carrying value 356.31 356.31Accumulated amortisationBalance at the beginning of the Year 91.78 55.75Add: Addition during the Year 38.13 36.03Closing accumulated amortisation 129.91 91.78Closing net carrying value 226.40 264.53


31st March, 2020 31st March, 2019Mining RightsCost or deemed costBalance at the beginning of the Year 42,470.11 37,741.32Add: Addition during the Year 116.10 4,728.79Closing gross carrying value 42,586.21 42,470.11Accumulated amortisationBalance at the beginning of the Year 6,958.48 5,733.00Add: Addition during the Year 677.01 1,225.48Closing accumulated amortisation 7,635.49 6,958.48Closing net carrying value 34,950.72 35,511.63

2.03.01 Mining Rights includes lease hold as well as freehold land used for mining purpose. Amortisation onmining rights represents depletion on wasting assets.

2.03.02 As per technical estimation useful life of computer software , other than internally generated intangibleassets is 10 years. It is amortized as per Straight Line Method over its useful life.

2.04 INVESTMENT IN ASSOCIATES AND JOINT VENTURES ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Non-CurrentInvestments in unquoted equity shares of jointventure companies (measured at amortised cost)2,497 (31st March, 2019: 2,497) Fully Paid Up EquityShares of 100 each of Naini Coal Co. Limited25,000 (31st March, 2019: 25,000) Fully Paid Up EquityShares of 10 each of Swarnim Gujarat Fluorspar Pvt. Ltd.50,000 (31st March, 2019: 50,000) Fully Paid Up EquityShares of 10 each of Gujarat Foundation forEntrepreneurial ExcellenceInvestment in unquoted equity shares of associatecompanies (measured at amortised cost)1,90,840 (31st March, 2019: 1,90,840) Fully Paid Up EquityShares of 10 each of Gujarat Jaypee Cement and Infra Ltd.49,40,000 (31st March, 2019: 49,40,000) Fully Paid Up EquityShares of 10 each of Gujarat Credo Mineral Industries Ltd.38,98,700 (31st March, 2019: 38,98,700) Fully Paid Up EquityShares of 10 each of Aikya Chemicals Pvt. Ltd.Total

- -

1.58 1.60

4.04 -

11.37 11.29

1,101.73 982.79

198.61 122.321,317.33 1,118.00


153

2.04.01 Approval of Government of Gujarat has been obtained vide letter dated 06th August, 2018 for the closureof Naini Coal Co. Ltd and closure process thereof is in progress.

2.05 INVESTMENTS ( in Lakh)


Non-CurrentInvestment in quoted equity shares of other companiesmeasured at fair value through other comprehensiveincome (FVTOCI)41,45,433 (31st March, 2019: 41,45,433) Fully Paid Up EquityShares of 10 each of Gujarat Alkalies & Chemicals Ltd.50,00,000 (31st March, 2019: 50,00,000) Fully Paid UpEquity Shares of 2 each of Gujarat State Fertilisers &Chemicals Ltd.9,35,600 (31st March, 2019: 9,35,600) Fully Paid Up EquityShares of 10 each of Gujarat State Financial Corporation Ltd.3,12,715 Fully Paid Up Equity Shares of 2 each of Bank ofBaroda (31st March, 2019: 7,77,900 fully paid up equityshare of 10 each of Vijaya Bank)Investment in unquoted equity shares of othercompanies measured at fair value through othercomprehensive income (FVTOCI)10,00,000 (31st March, 2019: 10,00,000) Fully Paid UpEquity Shares of 10 each of Gujarat Informatics Ltd.3,900 (31st March, 2019: 3,900) Fully Paid Up EquityShares of 100 each of Gujarat Industrial TechnicalConsultancy Organization Ltd.74,25,000 (31st March, 2019: 74,25,000) Fully Paid UpEquity Shares of 10 each of Gujarat Guardian Ltd.2,61,72,800 (31st March, 2019: 2,61,72,800) Fully Paid UpEquity Shares of 1 each of Gujarat State PetroleumCorporation Ltd.1 (31st March, 2019: 1) Fully Paid Up Equity Share of 10of Gujarat State Electricity Corporation Ltd. having fair valueof 12.01

Less: Provision for Impairment(for investments in equity shares of Gujarat State FinancialCorporation Limited)

Total Non-Current Investments

Aggregate amount of quoted investments 11,258.36 26,051.26

Aggregate market value of quoted investments 11,258.36 26,051.26

Aggregate amount of unquoted investments 13,794.84 15,685.90

2.05.01 Investments measured at fair value through Other Comprehensive Income (FVTOCI) reflect investmentsin unquoted and quoted equity securities. Refer Note 2.45 for determination of their fair values.

9,260.90 20,449.42

1,830.00 5,212.50

187.12 187.12

167.46 389.34

810.00 790.00

99.50 92.26

10,631.86 12,707.89

2,253.48 2,095.75

- -

(187.12) (187.12)

25,053.20 41,737.16


154

2.05.02 As per the Memorandum of Understanding (MOU) dated 30th March, 1995 entered into with the GujaratIndustrial Investment Corporation Ltd (GIIC), the said company had to repurchase 16 Lakh number ofshares of Gujarat Alkalies & Chemicals Limited (GACL) purchased by the Company from GIIC by 30thMarch, 1998 at an agreed price consisting of cost plus interest @ 14% per annum and service charge @0.25% per annum less dividend, bonus and rights, etc. received thereon. GIIC has proposed to enter intoa Supplementary MOU by virtue of which GIIC will not be required to repurchase the above shares andthe Company shall hold these shares as investment. The Board of Directors of the Company and GIIChave agreed to enter into Supplementary MOU for which proposal has been sent to the Govt. of Gujaratfor its approval. The remaining 25.45 Lakh shares of GACL as shown in above note have beenpurchased by the Company from the open market.

2.05.03 Vijaya Bank has been merged with Bank of Baroda (BOB) on 01st April,2019 and the company has beenallotted 3,12,715 equity shares of 2/- each fully paid of BOB on 8th April 2019 against 7,77,900 equityshares of 10/- each fully paid of Vijaya Bank.

2.05.04 During the previous year Bhavnagar Energy Co Ltd (BECL) was merged with Gujarat State ElectricityCorporation Ltd (GSECL) vide notification dated 27th August, 2018 issued by Energy and PetrochemicalsDepartment, Government of Gujarat. The Company was given one share of GSECL of 10 fully paidhaving fair value of 12.01 against the total investment of 29,765.00 lakh in 29,76,50,000 equity sharesof BECL 10 each fully paid (Value as on 31st March 2018 was 21,437.46 lakh). Therefore there was aloss on investment of 21,437.46 lakh was written off in the previous year and has been shown as anexceptional item in the Statement of Profit and Loss.

2.06 NON-CURRENT LOANS* ( in Lakh)


Loans and advances to employees

Unsecured, considered good 192.52 205.79

Other loans and advances to related parties

Doubtful 1,625.00 1,625.00

Less: Provision for impairment (1,625.00) (1,625.00)

Total Non-Current Loans 192.52 205.79* Refer note 2.45 for classification

2.06.01 Naini Coal Company Ltd. is a 50:50 joint venture of the Company and Pondicherry Industrial PromotionDevelopment Investment Corp Ltd. (PIPDIC). Naini Coal Company Ltd had given Bank Guarantee of

6,500 Lakh to Coal Ministry, Govt of India for allocation of Naini Coal block in the State of Odisha. The saidbank guarantee was secured by Corporate Guarantee of the Company for an amount of 3,250 Lakh andanother 3,250 Lakh was secured by Bank Guarantee of UCO Bank,arranged by PIPDIC. Ministry of Coal,Govt of India has invoked 50% of Bank Guarantee i.e. 3,250 Lakh given by the Naini Coal Company Ltd.vide their letter dated 27th December, 2012 due to non-compliance of some terms and conditions of NainiCoal block allocation. The Company had discharged its liability of 1,625 Lakh towards invoked BankGuarantee and has accounted for the same as advance to Naini Coal Company Ltd. Total provision forimpairment made for advances to Naini Coal Company Ltd. amounts to 1,625 Lakh (2018-19:

1,625 Lakh).

The Company filed special civil application before the Hon'ble High court of Gujarat against arbitrarycancellation of coal block as well as invocation of Bank Guarantee. During the pendency of petition beforethe Hon'ble High court of Gujarat, the Hon'ble Supreme Court has cancelled all the coal blocks. Therefore,


155

the petition with the Hon'ble High court of Gujarat was pending in respect of invocation of Bank Guarantee of1,625 Lakh only. The Hon'ble High court of Gujarat vide its judgement and order dated 31st July,2019 has

rejected the relief sought by the Company for seeking refund of Bank Guarantee.

In view thereof the company has prefered civil suit before Ld. Small Cause Court, Ahmedabad for recovery of1,625 Lakh given as Bank Guarantee. The suit is subjudicial before the above court at Ahmedabad.

2.07 OTHER NON-CURRENT FINANCIAL ASSETS* ( in Lakh)


Unsecured, considered goodSecurity deposits 389.65 403.40Deposits with Corporate Bodies 20,646.97 14,540.71Deposits with Corporate Bodies for Mine Closure - -Balance with banks in Escrow Accounts 57,353.55 53,623.27Others 543.49 567.67DoubtfulDeposits with Corporate Bodies 4,212.40 4,212.40Less: Provision for impairment (4,212.40) (4,212.40)

Total Other Non-Current Financial Assets 78,933.66 69,135.05* Refer note 2.45 for classification

2.07.01 Details of Mine Closure Provision and deposits there against ( in Lakh)

Project Name Provisions in Books of Accounts upto31st March, 2020 31st March, 2019

Umarsar 5,326.40 4,172.25Rajpardi 3,141.45 2,598.18Tadkeshwar 6,793.19 5,640.99Mata No Madh 14,282.62 14,282.62Bhavnagar 9,766.41 8,109.93Panandhro* 11,399.20 11,399.20

Project Name Principal amount in Amount Paid during Total amount paidescrow account April & May, 2020 till signing of

31st March, 2020 31st March, 2019 Balance SheetUmarsar 6,433.13 6,433.13 1,267.44 7,700.57Rajpardi 2,729.09 2,729.09 549.81 3,278.90Tadkeshwar 5,918.63 5,918.63 1,166.08 7,084.71Mata No Madh 14,282.76 14,282.76 - 14,282.76Bhavnagar 8,509.09 8,509.09 1,676.44 10,185.53Panandhro* 9,600.00 9,600.00 - 9,600.00

*2.07.02 As per the Mine Closure guidelines the amount is required to be deposited in Escrow Account with ascheduled bank. The Company has opened the Escrow accounts for its all six lignite mines and depositedthe amount. For its Panandhro mine, the company has deposited an amount of 9,600 lakh in escrowaccount as per calculation accepted by Office of the Coal Controller of India as against provision of

11,399.20 lakh as per draft mine closure plan. Necessary effect in the provision for mine closure will begiven in the books of account after the acceptance of mine closure plan of the said mine by Ministry ofCoal, Government of India.


156

2.07.03 The company was required to deposit in Escrow Account with scheduled bank amount as per theapproved mine plan by 31st March, 2020. However,on account of Covid-19 the company could depositthe same by May, 2020 as shown in the above table.

2.07.04 It was observed by the Office of the Accountant General (AG) on the audited financial statements of thecompany for the Financial Year 2018-19, in respect of Bhavnagar Mines for understatement of provisionfor mine closure and overstatement of profit by 13.27 Crore and understatement of Balance with Banksin Escrow Account as well as of Cash and Cash equivalents by 13.93 Crore and assurance was givenby the company to refer the matter to the Office of the Coal Controller of India (CCI) for their finalconclusion. Accordingly, the matter has been referred to CCI and the final decision thereto is still awaited.Necessary adjustment, if any, will be made in the accounts after final outcome of the matter.

2.07.05 As per the technical certificate the company has carried out mine closure activities and incurred expensesduring the year as per mine plan in respect of all the metallic-ferrous (non-lignite) mines eitherdepartmentally or through outside agencies and compliances are verified periodically by IBM authoritiesmandated by the Government of India.

2.08 OTHER NON-CURRENT NON-FINANCIAL ASSETS ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Capital advances 2,089.95 2,089.95Balances with Government Authorities 1,969.66 1,685.45Advance income tax and TDS (net of provision) 43,415.91 36,693.84Prepaid expenses - 1,069.76Stripping Activity Adjustment Assets - 3,328.13Total Other Non-Current Non-Financial Assets 47,475.52 44,867.13

2.09 INVENTORIES ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019CurrentMined ore 6,632.14 6,730.01Finished goods 0.45 0.45Stores, spares & fuel 3,411.18 3,550.43

10,043.77 10,280.89Less: Provision for obsolete stock (542.27) (477.83)

9,501.50 9,803.06Loose tools 10.30 10.37Total Inventories 9,511.80 9,813.43

2.10 TRADE RECEIVABLES* ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019CurrentDebts outstanding Unsecured, considered good 14,279.01 14,747.71 Doubtful 97.27 97.27

14,376.28 14,844.98 Less: Provision for impairment (97.27) (97.27)Total Trade Receivables 14,279.01 14,747.71* Refer note 2.45 for classification


157

2.10.01 Considering the affirmations for compliance of code of conduct of the Company given by the directorsand other officers of the Company, neither any trade receivables are due from directors or other officers ofthe Company either severally or jointly with any other person, nor any trade receivables are due fromfirms or private companies in which any director is a partner, a director or member.

2.11 CASH AND OTHER BANK BALANCES* ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Cash and Cash EquivalentsBalances with banks In current accounts 5,166.45 4,676.36 Fixed deposit with original maturity of less than 3 months 255.25 -Cash & stamp on hand - -Others Deposits with financial institutions 4,090.23 4,050.00Total Cash and Cash Equivalents 9,511.93 8,726.36Other Bank BalancesEarmarked balances with banks Unpaid dividend account 87.87 102.34Fixed Deposit Security against guarantees 0.23 13.09 Security against other commitments 24.92 24.92 Doubtful deposits 374.00 374.00

487.02 514.35Less: Provision for impairment (374.00) (374.00)Total Bank Balanceother than Cash and Cash Equivalents 113.02 140.35* Refer note 2.45 for classification

2.11.01 Other bank balances include restricted bank balances on account of unpaid dividend , Fixed deposits forSecurity against guarantees and Security against other commitments as stated above.

Pending clearance of the title of the land, sale deed in respect of the land of the cement plant at Hadadsold earlier, was not executed and an amount of 24.92 Lakh (31 March, 2019: 24.92 Lakh) wasrecoverable from the buyer on execution of sale deed. The said amount has been deposited by the partybefore the Danta Court and in turn the Court has directed to the Company to deposit the said amount witha nationalized bank in the form of FDR with a lien marked in favour of Danta Court. Accordingly theCompany has placed the same with Union Bank of India, Vastrapur Branch, Ahmedabad.

2.12 CURRENT LOANS* ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Housing building advance to employees Unsecured, considered good 684.30 796.35Other loans and advances to employees Unsecured, considered good 228.77 277.96Other loans and advances to related parties Unsecured, considered good - - Doubtful 3.00 3.00 Less: Provision for impairment (3.00) (3.00)Total Current Loans 913.07 1,074.31* Refer note 2.45 for classification


158

2.13 OTHER CURRENT FINANCIAL ASSETS* ( in Lakh)


Unsecured, considered goodDeposits with Corporate Bodies 101,984.44 99,031.42

Others 655.76 1,984.42

Total Other Current Financial Assets 102,640.20 101,015.84* Refer note 2.45 for classification

2.13.01 The company has paid in May, 2015 an amount of 37.50 lakh for 3.75 lakh shares of 10 each to StoneResearch Foundation to subscribe its shares which is included under the head "Others" above. However,no shares have been allotted by the said company so far and it has been decided to close the StoneResearch Foundation. Necessary adjustments in accounts will be made after receiving share applicationmoney and other receivables, if any.

2.14 OTHER CURRENT NON-FINANCIAL ASSETS ( in Lakh)


Balances with Government Authorities 19,735.96 12,832.18Prepaid expenses 305.41 397.69Advances to employees / suppliers / contractors 2,619.04 1,624.47

Stripping Activity Adjustment Assets 2,226.73 -

Total Other Current Non-Financial Assets 24,887.14 14,854.34

2.15 ASSETS CLASSIFIED AS HELD FOR SALE ( in Lakh)


Plant & equipments 6.83 15.79Furniture & fixtures 0.11 0.21Vehicles 0.46 0.46

Office equipments 0.22 0.29

Total 7.62 16.75

2.15.01 Assets classified as held for sale during the reporting period were measured at the carrying value on thedate of such classification which approximates fair value less cost to sell. Consequently, no impairmentloss was identified on these assets. There has been no material change in the value of such assets afterthe date of initial classification as assets classified as held for sale.

2.16 EQUITY SHARE CAPITAL ( in Lakh)


AUTHORISED SHARE CAPITAL74,50,00,000 Equity Shares (31st March 2019:74,50,00,000) of 2/- each 14,900.00 14,900.001,00,000 Preference Shares (31st March 2019:

1,00,000) of 100/- each 100.00 100.00

Total 15,000.00 15,000.00


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31st March, 2020 31st March, 2019Issued, Subscribed & Paid-up Capital31,80,00,000 Equity Shares (31st March 2019:

31,80,00,000) of 2/- each fully paid up 6,360.00 6,360.00

Total 6,360.00 6,360.00

2.16.01 The reconciliation of the number of shares outstanding is set out below:


Number of shares outstanding at the beginning of year 31,80,00,000 31,80,00,000

Add: Shares issued during the year - -

Less : Share bought back - -

Number of shares outstanding at the end of year 31,80,00,000 31,80,00,000

2.16.02 Rights, preferences and restrictions attached to Equity SharesThe Company has only one class of equity shares having a face value of 2 per share. Each holder ofequity share is entitled to one vote per share. The Company declares and pays dividend in IndianRupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in theensuing Annual General Meeting.

In respect of the Financial Year 2018-19 dividend of 2 per share was proposed and approved. Thesame was recognised as distributions to equity shareholders during the year ended 31st March, 2020(31st March 2019: 3.5 per share).

In the event of liquidation of the Company, the holders of equity shares will be entitled to remaining assetsof the Company. The distribution will be in proportion to the number of equity shares held by theshareholders.

2.16.03 Details of shareholder(s) holding more than 5% equity shares in the Company


Number of Equity SharesGovernment of Gujarat 23,53,20,000 23,53,20,000

% Holding in Equity SharesGovernment of Gujarat 74.00% 74.00%

2.17 OTHER EQUITY ( in Lakh)


General Reserve 273,741.72 273,741.72

Retained Earnings 131,544.98 122,324.63

Reserves representing unrealized gains/(losses) 13,164.86 29,302.74

Total Other Equity 418,451.56 425,369.09


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( in Lakh)


General ReserveOpening balance 273,741.72 273,741.72

Add/(Less): Amount transaferred to/

(from retained earnings) - -

Closing balance 273,741.72 273,741.72

( in Lakh)


Retained EarningsOpening balance 122,324.63 113,005.71Impact of transition to appendix C of Ind AS 12 & Ind AS 116 (3,194.65) -Prior period adjustment - 28.26On consolidation adjustment 10.29 -Restated opening balance 119,140.27 113,033.97Add:Profit during the period 20,406.41 21.984.24Remeasurement of post employment benefit obligation,net of tax (334.38) 724.22Less:Equity dividend (6,360.00) (11,130.00)Tax on dividend (1,307.32) (2,287.80)

Closing balance 131,544.98 122,324.63

2.17.01 The amount that can be distributed by the Company as dividends to its equity shareholders is determinedconsidering the requirements of the Companies Act, 2013. Thus, the amounts reported above are notdistributable in entirety.

Reserves representing unrealized gains/(losses) ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019FVTOCI - Equity InvestmentsOpening balance 29,302.74 42,006.50Increase/(decrease) in fair value of FVTOCI -equity instruments (16,683.97) (13,924.37)Income tax on net fair value gain or loss 546.09 1,220.61Closing balance 13,164.86 29,302.74

2.17.02 The Company has elected to recognise changes in the fair value of certain investments in equitysecurities in other comprehensive income. These changes are accumulated within reserves representingunrealised gain/(losses).


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2.18 OTHER NON-CURRENT FINANCIAL LIABILITIES* ( in Lakh)


Security and other deposits liability 1,490.99 2,623.56Lease Liability 29.21 -Total Other Non-Current Financial Liabilities 1,520.20 2,623.56

2.18.01 For majority of the security deposits received, the timing of outflow is uncertain as it depends on outcomeof the underlying contracts. Thus the same has not been discounted because their present value wouldnot represent meaningful information. The management does not believe it is possible to makeassumptions for the outcome of the contract beyond the balance sheet date.

2.19 NON-CURRENT PROVISIONS ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Provision for mine closure 45,317.73 41,200.26Provision for decommissioning obligations 2,356.62 2,171.77Total Non-Current Provisions 47,674.35 43,372.03

2.19.01 Movements in Provisions (including current/non-current ( in Lakh)Particulars Provision for Provision for Total

mine closure decommissioningobligations

As at 1st April 2019 41,200.26 2,171.77 43,372.03Add: Unwinding of discounts - 184.86 184.86Add: Provision created during the year 4,506.34 - 4,506.34Less: Expenses incurred on progressive mine closure (388.88) - (388.88)As at 31st March 2020 45,317.73 2,356.62 47,674.35

2.19.02 As per the guidelines for preparation of Mines Closure Plan issued by the Ministry of Coal, Government ofIndia the Company has made a provision for mines closure expenses to the tune of 50,709.27 Lakh(31st March, 2019: 46,203.17 lakh) after considering the approved, submitted, prepared mine closureplans and has incurred progressive mine closure expenses of 5,391.79 Lakh (31st March, 2019: 5,002.91 lakh) so far..

2.20 NON-CURRENT NET EMPLOYEE BENEFIT LIABILITIES ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Provision for leave salary 4,241.24 3,930.57

Total Non-Current Net Employee Benefit Liabilities 4,241.24 3,930.57


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2.21 DEFERRED TAX LIABILITIES (NET)Deferred tax relates to the following: ( in Lakh)


Deferred Tax LiabilitiesDue to depreciation 27,920.37 29,359.91

Due to Uncertain tax positions 3,188.09 -

Financial assets measured at FVTOCI - 453.26

Total Deferred Tax Liabilities (A) 31,108.46 29,813.17Deferred Tax AssetsDue to disallowance u/s 43B of Income Tax Act (18,103.83) (16,092.85)

Decommissioning obligations (Net) (472.26) (389.33)

Straightlining of operation and maintenance expenses (957.98) (1,023.44)

Due to other timing differences (345.30) (336.41)

Financial assets measured at FVTOCI (92.83) -

Total Deferred Tax Assets (B) (19,972.20) (17,842.03)Net Deferred Tax Liabilities (A-B) 11,136.26 11,971.14

2.21.01 Movements in Deferred Tax Liabilities (net) ( in Lakh)Particulars Due to Financial Due to Decommissioning Straightlining Due to other Due to Net

depreciation assets disallowance obligations of operation & timing Uncertain Deferredmeasured u/s 43B of (Net) maintenance differences tax taxat FVTOCI Income expenses positions Liabilities

Tac ActAs at 1st April 2018 30,539.98 1,673.51 (15,605.41) (318.21) (1,011.62) (355.26) - 14,922.99Charged/(credited) - to profit or loss (1,180.07) - (876.09) (71.12) (11.82) 18.85 - (2,120.25) - to other comprehensive income - (1,220.25) 388.65 - - - (831.60)As at31st March 2019 29,359.91 453.26 (16,092.85) (389.33) (1,023.44) (336.41) - 11,971.14Charged/(credited) - to equity (Ind AS 116 and Ind AS 12) 3,188.09 3,188.09 - to profit or loss (1,439.54) (1,831.37) (82.93) 65.46 (8.89) - (3,297.26) - to other comprehensive income (546.09) (179.61) (725.70)As at31st March 2020 27,920.37 (92.83) (18,103.83) (472.26) (957.98) (345.30) 3,188.09 11,136.26


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2.21.02 Reconciliation of tax expenses and the accounting profit multiplied by India's tax rate: ( in Lakh)

Particulars 2019-20 2018-19Accounting Profit before income tax expenses 26,039.14 38,821.41Tax at the Indian tax rate of 34.944% (2018-19 - 34.944%) 9,099.12 13,565.75Tax effect of amounts which are not deductible(taxable)in calculating taxable income:Effect of income that is exempt from taxation (265.95) (252.29)

Effect of expenses that are not deductible in determining 681.34 10,968.28

the taxable profit

Effect of concessions (u/s 80IA) (4,035.53) (4,602.91)

Others 34.93 (2,827.43)

Adjustments for the current tax of prior periods 318.15 -

Income Tax Expenses at the effective income tax rateof 22.40% (2018-19: 43.41%) 5,832.06 16,851.40

2.21.03 Items of Other Comprehensive Income (OCI) ( in Lakh)

Particulars 2019-20 2018-19Deferred tax related to items recognised in OCI during the year:Unrealised (gain)/loss on FVTOCI equity securities 546.09 1,220.61

Net loss/(gain) on remeasurements of defined benefit plans 179.61 (389.01)

Income tax charged to OCI 725.70 831.60

2.22 OTHER NON-CURRENT NON-FINANCIAL LIABILITIES ( in Lakh)


Deferred Operation & Maintenance Liability and Others 2,039.51 2,441.94

Total Other Non-Current Non-Financial Liabilities 2,039.51 2,441.94

2.23 TRADE PAYABLES* ( in Lakh)


CurrentTotal outstanding dues of creditors-micro enterprises and

small enterprises - 7.49

Total outstanding dues of creditors other than micro

enterprises and small enterprises 13,683.52 10,963.48

Total Trade Payables 13,683.52 10,970.97* Refer note 2.45 for classification

2.23.01 As at 31st March, 2020, there are no outstanding dues to Micro, Small and Medium enterprises as perconfirmation received from creditors stated above. There is no interest due or outstanding on the same.


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2.24 OTHER CURRENT FINANCIAL LIABILITIES* ( in Lakh)


Other payables (including for capital goods and services) 414.41 485.95

Earnest money deposits 792.51 497.31

Security and other deposits liability 3,423.91 3,314.24

Lease Liability 0.98 -

Other financial liabilities 5,663.82 5,360.75

Total Other Current Financial Liabilities 10,295.63 9,658.25* Refer note 2.45 for classification

2.24.01 Vide Government Resolution dated 19th November,2009, the Company has been given permission to liftManganese Ore from dumps of Shivrajpur areas and dispose of the same for which the Company will beentitled to retain 20% of the sale price. The Company has to keep remaining 80% of the sale price ofManganese Ore dump in a separate account of Gujarat Mineral Research & Development Society(GMRDS) for mineral survey and exploration. Accordingly, 376.21 Lakh (31st March, 2019: 312.04Lakh) (i.e. 80% of the basic sale price) has been transferred during the year to GMRDS and includedunder the head "Other Financial Liabilities”.

2.25 CURRENT NET EMPLOYEE BENEFIT LIABILITIES ( in Lakh)


CurrentProvision for provident fund 171.86 168.37Provision for leave salary 1,062.85 905.43Provision for gratuity 412.35 -

Total Current Net Employee Benefit Liabilities 1,647.06 1,073.80

2.25.01 DISCLOSURES FOR GRATUITY & LEAVE SALARY PROVISIONS AS PER INDIAN ACCOUNTINGSTANDARD- 19Defined Contribution Plan ( in Lakh)

Particulars 2019-20 2018-19Contribution to PF & other funds 1,054.93 1,100.40

Defined Benefit Plana)The following table sets out the status of the gratuity plan as required under Ind AS 19 and thereconciliation of opening balances of the present value of the defined benefit obligation.(i) Changes in Present Value of Obligations ( in Lakh)

Particulars 31-Mar-20 31-Mar-19Present Value of Obligation as at the beginning of the year 14,121.77 14,277.09Current Service Cost 719.14 702.28Interest Cost 1,071.84 1,100.76Actuarial (gain) / Loss on obligations (88.29) (1,212.93)Benefits paid (1,750.13) (745.43)Past Service cost - -

Present Value of Obligation as at the end of the year 14,074.33 14,121.77


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(ii) Changes in the Fair Value of Plan Assets ( in Lakh)

Particulars 2019-20 2018-19Fair Value of Plan Assets at the beginning of the year 14,228.37 13,155.84Expected Return on Plan Assets 1,079.93 1,014.32Actuarial Gain / (loss) on Plan Assets (602.28) (100.74)Contributions 706.09 904.38Benefits Paid (1,750.13) (745.43)

Fair Value of Plan Assets at the end of the year 13,661.98 14,228.37

(iii) The amount recognized in the Balance Sheet ( in Lakh)

Particulars 2019-20 2018-19Fair Value of Plan Assets as at the end of the year 13,661.99 14,228.37Present Value of Obligations as at the end of the year (14,074.34) (14,121.77)

Net Asset / (Liability) recognized in the Balance Sheet (412.35) 106.60

(iv) Amount recognized in the Statement of Profit & Loss as employee benefit expenses( in Lakh)

Particulars 2019-20 2018-19Current Service Cost 719.14 702.28Interest Cost / (income) (8.09) 86.45Expected Return on Plan Assets - -Past Service Cost - -

Expenses/(Income) Recognized as part of employeebenefit expenses 711.05 788.73

(v) Amount recognized in the other comprehensive income ( in Lakh)

Particulars 2019-20 2018-19Net actuarial (gain) / loss recognized in the year 513.99 (1,112.20)

Expenses/(Income) Recognized in other comprehensive income 513.99 (1,112.20)

(vi) Investment detailsParticulars % Invested as at

31-Mar-20 31-Mar-19Funds with L.I.C. (% Invested) 100.00% 100.00%

(vii) Assumption detailsParticulars 31-Mar-20 31-Mar-19Mortality Rate during employment Indian Assured lives Indian Assured lives

mortality (2006-08) mortality (2006-08)Ultimate Ultimate

Rate of Discounting 6.04% 7.59%Rate of salary increase 6.00% 6.00%Rate of Return on Plan Assets 6.04% 7.59%Rate of Employee Turnover 2.00% 2.00%


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The estimates of rate of escalation in salary considered in actuarial valuation by taking into accountinflation, seniority, promotion and other relevant factors including attrition rate. The above information iscertified by the actuary.

b) The Company has considered certain entitlements to earned leave, which can be carried forward to futureperiods as a long term employee benefit.

Sensitivity AnalysisReasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding otherassumptions constant, would have affected the defined benefit obligation by the amounts shown below.

( in Lakh)

Particulars Gratuity31-Mar-20 31-Mar-19

Projected Benefit Obligation on Current Assumptions 14,074.34 14,121.77Delta Effect of +1% Change in Rate of Discounting (642.96) (606.22)Delta Effect of -1% Change in Rate of Discounting 719.05 670.38Delta Effect of +1% Change in Rate of Salary Increase 214.63 234.48Delta Effect of -1% Change in Rate of Salary Increase (247.73) (256.71)Delta Effect of +1% Change in Rate of Employee Turnover 133.12 174.86Delta Effect of -1% Change in Rate of Employee Turnover (147.38) (191.45)

2.26 OTHER CURRENT NON-FINANCIAL LIABILITIES ( in Lakh)


Advance from customers (Contract Liabilities) 2,622.71 1,234.25Statutory taxes payable 433.80 347.23Others 976.71 1,318.12Total Other Current Non-Financial Liabilities 4,033.22 2,899.60

2.26.01 The Government of Gujarat (GOG) has provided funds amounting to 8,134.73 Lakh (31st March,2019: 7,634.73 Lakh) which are in the nature of deposits for Construction and other expenses forStone Park, Laboratory and Trade Fair on behalf of Commissioner of Geology & Mining (CGM), GOG.Out of the said deposits, the Company has utilized/repaid 7,677.62 Lakh (31st March, 2019:

6,844.53 Lakh) till 31st March, 2020. Net balance of unutilised funds amounting to 457.11 Lakh(31st March, 2019: 790.20 Lakh) is shown under the head "Other Current Non-Financial Liabilities".

Details of funds received and utilized for various activities are as under: ( in Lakh)Nature of activities Funds Received Funds Utilized / Fund unutilized


Construction and other expenses ofStone Park* 500.00 - 500.00Construction and other expenses ofLaboratory 2,507.97 2,565.86 (57.89)Activities related to Trade Fair 90.14 75.14 15.00Total (A) 3,098.11 2,641.00 457.11


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( in Lakh)Nature of activities Funds Received Funds Utilized / Fund unutilized


Construction and other expenses ofStone Park 5,036.62 5,036.62 -Total (B) 5,036.62 5,036.62 -Total (A+B) 8,134.73 7,677.62 457.11Previous Year 7,634.73 6,844.53 790.20*Excluding funds received upto 31st March, 2019, utilized/repaid upto 31st March, 2020.

2.27 REVENUE FROM OPERATIONSRevenue from contracts with customers (Disaggregated revenue information) ( in Lakh)

Particulars 2019-20 2018-19Sale of Products - Sale from Lignite Projects 118,382.54 147,834.53 - Sale from Bauxite Projects 3,992.05 1,550.30 - Sale from Thermal Power Project 13,855.09 22,047.39 - Sale from Renewable Energy Projects 16,272.85 17,152.71 - Sale from Other Projects 125.27 119.66Less:Cash discount/incentives 532.95 736.77Sale of products (net) 152,094.85 187,967.82Total Revenue from Operations 152,094.85 187,967.82

2.27.01 The company is selling lignite/ power to GSECL/GUVNL. For arriving at the rate of lignite to be charged ininvoice for sale of Lignite/power from year to year, the company is charging rate of interest of 13% onfixed assets of the respective project for finalization of cost as per agreed formula. Accordingly, thecompany has recognised the revenue for the sale of lignite/power to GSECL/GUVNL . However, whilemaking the payment, GSECL and GUVNL are allowing rate of interest of 8.50% only instead of 13% w.e.f01st July,2017. The matter has been referred to Government of Gujarat (GOG) to settle the issue.Necessary adjustment entries, if any, will be passed after the matter is finalised by GOG.

2.28 FINANCE INCOME ( in Lakh)

Particulars 2019-20 2018-19Interest Income

- FDRs with Banks & Inter Corporate Deposits (ICDs) 9,309.90 8,592.89

- Others 5,960.86 3.363.58

Total Finance Income 15,270.76 11,956.47

2.28.01 The company during the year, earned an interest of 4,144.76 lakh (2018-19: 3,236.26 lakh) on thefixed deposits of 55,174.27 lakh (31st March, 2019: 52,070.81 lakh) held in the escrow accounts formine closure expenses and recognised such interest as income in the Statement of Profit and Loss. Theinterest income so earned is a part of escrow account over which the company has no hold until theprovisions of mine closure plan are complied.

As per prevailing guidelines of Ministry of Coal, Govt of India, up to 50% (Upto 2018-19: 80%) of the totaldeposited amount including interest accrued in the escrow account would be released to the company afterevery five years in proportion to the expenditure incurred on mine closure and the balance will be


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released at the end of final mine closure on compliance of all the provisions of mine closure plan,provided that restoration of mine is completed within the specified period, failing which the amount in theescrow account is liable to be forfeited.

2.29 OTHER INCOME ( in Lakh)

Particulars 2019-20 2018-19Income from Investments - Dividend Income 828.12 789.74Net gain on Sale of Fixed Assets 50.69 32.86Sale of Scrap material 49.92 266.13Excess Provision of Earlier Years Written Back 158.65 98.18Liquidated Damages/ Penalty 169.81 517.81Other Misc. Income 536.21 784.09

Total Other Income 1,793.40 2,488.81

2.30 CHANGES IN INVENTORIES OF FINISHED GOODS & MINED ORE ( in Lakh)

Particulars 2019-20 2018-19Inventories at the end of the year:Finished Goods 0.45 0.45Mined Ore 6,632.14 6,730.01Stock of Fuel 153.22 216.79

Less : 6,785.81 6,947.25Inventories at the beginning of the year:Finished Goods 0.45 0.45Mined Ore 6,730.01 5,230.54Stock of Fuel 216.79 1,084.45

6,947.25 6,315.44(Increase) / Decrease in Inventories 161.44 (631.81)

2.31 EMPLOYEE BENEFIT EXPENSES ( in Lakh)

Particulars 2019-20 2018-19Salaries, Wages & Bonus 9,802.63 9,028.67Contribution to Provident fund & other funds 1,788.04 1,913.51Staff Welfare Expenses 897.48 677.77Terminal Benefits 1,959.39 617.47Directors' sitting Fees & Allowances 1.05 2.10

Total Employee Benefit Expenses 14,448.59 12,239.52

2.32 FINANCE COSTS ( in Lakh)

Particulars 2019-20 2018-19Unwinding of discount on Provisions 184.86 150.72Interest on lease liability 2.43 -Interest on delayed payment of income tax 0.02 0.13Other Charges 0.83 31.96

Total Finance Costs 188.14 182.81


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2.33 DEPRECIATION AND AMORTISATION EXPENSES ( in Lakh)Particulars 2019-20 2018-19Depreciation of Property, Plant and Equipment 8,319.04 8,227.85Depreciation on investment properties 123.75 124.37Amortisation of intangible assets 715.14 1,261.51Total Depreciation and Amortisation Expenses 9,157.93 9,613.73

2.34 OTHER EXPENSES ( in Lakh)Particulars 2019-20 2018-19Manufacturing ExpensesLoading of Lignite & Overburden Removal 60,770.93 54,895.42Freight & Octroi Expenses 1,912.68 2,281.95Other Loading charges & Mining Expenses 1,083.94 1,172.07Electricity Expenses 1,711.93 1,645.87Consumption of Stores, Spares & Chemicals 1,746.77 613.42Operation & Maintenance Charges and Fuel forThermal Project 1,313.43 2,806.20Operation & Maintenance Charges for RenewableEnergy Projects 1,980.31 2,150.30Repairs & Maintenance - Buildings 383.64 399.95 - Machineries ( Including spares) 531.11 543.76 - Other Assets 100.70 1,015.45 98.74 1,042.45Rates & Taxes - Royalty 8,458.43 9,421.24 - GST Compensatory Cess 24,142.45 31,896.02 - Other Rates & Taxes 463.87 33,064.75 586.12 41,903.38Mine Closure Expenses 4,506.34 4,291.75Rent 9.26 107.11 (A) 109,115.79 112,909.92Administrative & Selling ExpensesCSR Expenses 1,090.50 977.60Donation 1,000.00 -Financial Contribution to Government Bodies 186.00 376.00Insurance Premium 429.23 302.40Vehicle Hire Charges 799.76 808.60Advertisement & Publicity 68.09 59.73Security Expenses 2,604.00 2,552.50Legal & Professional Fees 420.57 512.12Payment to Auditors - Audit Fees 9.63 9.51 - For Tax Audit 1.08 1.02 - For Certification and other matters 2.36 13.07 2.32 12.85Remuneration to Managing Director 32.91 31.89Loss on sale / write-off of Fixed Assets (net) 8.39 -Mining & Project Development Expenses 240.43 304.80Other Miscellaneous Charges 3,155.03 1,901.57 (B) 10,047.98 7,840.06Total Other Expenses (A+B) 119,163.77 120,749.98


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2.34.01 During the year, royalty on account of sale of Bauxite had been accounted for 891.06 Lakh (2018-19:333.75 Lakh) on ad hoc basis as intimated by the Commissioner of Geology and Mining. Necessary

adjustment shall be made in the accounts after final outcome of the matter.

2.34.02 In view of the Supreme Court’s decision in respect of mining activities, applications made by theCompany for renewal of leases covering 2,040 (2018-19: 2,040) hectares of land at Panandhro lignitemine for extracting lignite are pending since 1993-94. Necessary adjustment in respect of liability for anycharges, taxes, duties etc. will be provided in accounts on finalization of renewal applications.

2.34.03 During the year, the Company has written off 746.35 Lakh (2018-19: 70.90 Lakh) and written back Nil Lakh (2018-19: 231.17 Lakh) in the books of account. In the opinion of the management, such

amounts are no longer receivable / payable. Net effect thereof is written off/(back) to the Statement ofProfit and Loss amounting to 746.35 Lakh (2018-19: (160.27) Lakh).

2.34.04 In compliance with Section 135(5) of the amended Companies Act, 2013, the Company has spent1,090.50 Lakh (2018-19: 901.62 Lakh) against the statutory requirement of spending 1,071.22 Lakh

(2018-19: 879.94 Lakh) (based on average net profits of last 3 years) during the year towards CorporateSocial Responsibility (CSR) Expense.

2.35 INCOME TAX EXPENSESThis note provides an analysis of the Company’s income tax expenses show amounts that are directlyrecognised in equity and how the tax expense is affected by non-assessable and non-deductible items. Italso explains significant estimates made in relation to the Company's tax positions.

( in Lakh)

Particulars 2019-20 2018-19Current Tax ExpensesCurrent tax on profits for the year 8,811.17 18,971.65

Adjustments for the current tax of prior periods 318.15 -

Total Current Tax Expenses 9,129.32 18,971.65Deferred Tax ExpensesDecrease/(Increase) in deferred tax assets (1,857.72) 280.07(Decrease)/Increase in deferred tax liabilities (1,439.54) (2,400.32)

Total Deferred Tax Expenses (3,297.26) (2,120.25)Income Tax Expenses 5,832.06 16,851.40

2.36 EARNING PER SHAREParticulars 2019-20 2018-19Profit attributable to equity holders for ( in Lakh):Basic earnings 20,406.41 21,984.24Adjusted for the effect of dilution 20,406.41 21,984.24Weighted average number of Equity Shares for:Basic EPS 31,80,00,000 31,80,00,000Adjusted for the effect of dilution 31,80,00,000 31,80,00,000Earning Per Share (Face value of 2/- each):Basic ( ) 6.42 6.91

Diluted ( ) 6.42 6.91


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2.37 CONTINGENT LIABILITIES AS ON 31ST MARCH, 2020Contingent liabilities not provided for Claims against the Company not acknowledged as debt 82,659.79Lakh (31st March, 2019: 69,780.98 Lakh).

2.37.01 Excise, VAT, Service tax, Income tax and other matters related to contingent liabilities: ( in Lakh)

Sr. Particulars As at As atNo. 31st March, 2020 31st March, 20191 Income tax 33,443.13 33,725.822 Sales Tax/VAT 419.04 419.043 Excise & Service Tax 1,673.97 1,508.424 Related to contractors and others 30,635.93 21,119.125 Royalty, stamp duty, conversion tax, land revenue etc. 7,978.16 4,943.836 Land Compensation 4,450.00 4,450.007 Incentives to employees 1,158.84 1,158.848 Guarantees excluding financial guarantees

Outstanding Bank Guarantees 2,900.72 2,455.91

2.38 COMMITMENTS ( in Lakh)


Capital CommitmentsEstimated amount of contracts remaining to be executed

on capital account and not provided for 370.79 477.60

2.39 EVENTS OCCURRING AFTER THE REPORTING PERIODThe board has recommended dividend of 2 per share which is subject to approval of shareholders inthe ensuing general meeting.

2.40 In the opinion of Management, any of the assets other than items of property, plant and equipment,investment properties, intangible assets and Non-Current Investments have a value on realisation in theordinary course of business at least equal to the amount at which they are stated, unless otherwise stated.

2.41 Balances of trade payables, trade receivables, loans & advances, advances from customers, other non-current/current liabilities, etc. are subject to confirmation and adjustments, if any, in the accounts.

2.42 On periodical basis and as and when required, the Company reviews the carrying amounts of its assets.In the Financial Year 2019-20, the Company has reviewed the carrying amounts of its assets and foundthat there is no indication that those assets have suffered any impairment loss. Hence, no suchimpairment loss has been provided.

2.43 SEGMENT INFORMATION(a) Description of segment and principal activities

The Chief Operational Decision Maker (CODM) monitors the operating results of its businesssegments separately for the purpose of making decisions about resource allocation andperformance assessment, and accordingly, the Company has identified two reportable operatingsegments viz. Mining and Power. Operating segments have been identified and reported in amanner consistent with the internal reporting provided to the CODM.


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(b) Segment revenue and expensesRevenue and expenses have been identified to a segment on the basis of relationship to operatingof the segment. Revenue and expenses which relate to enterprise as a whole and are not allocableto a segment on a reasonable basis have been disclosed as Unallocable.

(c) Segment assets and liabilitiesSegment assets and segment liabilities represent assets and liabilities in respective segments.Investments, tax related assets and other assets and liabilities that cannot be allocated to asegment on a reasonable basis have been disclosed as "Unallocable".

(d) Secondary segment reportingThe Company does not have geographical distribution of revenue as the operations of the Companyare carried out within the country and hence secondary segmental reporting based on geographicallocations of its customers is not applicable to the Company.

(e) Information about major customersRevenue from power segment (which exceeds 10% of total segment revenue) amounting to 37,607.96 (2018-19: 40,705.25) Lakh is derived from a single customer and revenue from mining

segment (which exceeds 10% of total segment revenue) amounting to 21,506.75 (2018-19:21,181.39) Lakh (inclusive of tax) is derived from a single customer.

(f) Information about product and servicesThe Company's revenue from external customers for each product is same as that disclosed belowunder "segment revenue".

( in Lakh)Particulars 2019-20 2018-19

Mining Power Unallocated Total Mining Power Unallocated TotalProjects Projects Projects Projects

Segment RevenuesExternal Revenue* 122,499.87 29,594.98 - 152,094.85 149,504.48 38,463.34 - 187,967.82Inter Segment Revenue 9,604.06 - - 9,604.06 10,902.59 - - 10,902.59Total Segment Revenue 132,103.93 29,594.98 - 161,698.91 160,407.07 38,463.34 - 198,870.41Segment ResultsProfit / (Loss) 12,926.18 3,794.36 (7,163.35) 9,557.19 42,097.86 10,530.01 (5,460.84) 47,167.03Unallocated other income - - 16,098.83 16,098.83 - - 12,746.21 12,746.21Unallocated expenses andfinance cost - - 383.12 383.12 - - 345.63 345.63Profit before exceptional itemsand tax 12,926.18 3,794.36 9,318.60 26,039.14 42,097.86 10,530.01 7,631.00 60,258.87Exceptional ItemsLoss on Investment in associate - - - - - - (21,437.46) (21,437.46)Profit Before Tax 12,926.18 3,794.36 9,318.60 26,039.14 42,097.86 10,530.01 (13,806.46) 38,821.41Share of profit / (loss) of jointventures and associates accountedfor using the equity method(Net of Tax) - - 199.33 199.33 - - 14.23 14.23Income tax- Current - - 8,811.17 8,811.17 - - 18,971.65 18,971.65Excess/short provision ofincome tax - - 318.15 318.15 - - - -Deferred tax - - (3,297.26) (3,297.26) - - (2,120.25) (2,120.25)Profit after tax 12,926.18 3,794.36 3,685.87 20,406.41 42,097.86 10,530.01 (30,643.63) 21,984.24Other informationDepreciation and amortisation 1,591.68 7,261.07 305.18 9,157.93 2,165.73 7,148.64 299.36 9,613.73Non-Cash Expenses other thandepreciation and amortisation 4,506.34 - - 4,506.34 4,291.75 - - 4,291.75* Segment Revenue includes other income which is directly attributable to each segment.


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( in Lakh)


Mining Projects 127,223.34 123,884.33

Power Projects 147,449.68 154,554.44

Unallocated 246,409.53 242,232.18

Total 521,082.55 520,670.95

Segments Assets** As at As at31st March, 2020 31st March, 2019

Mining Projects 68,524.40 61,765.84

Power Projects 6,834.02 6,589.79

Unallocated 20,912.57 20,586.23

Total 96,270.99 88,941.86

** Segment assets and liabilities are measured in same way as in the financial statements. They areallocated based on the operations of the segment.

1. Segment assets and liabilities are subject to reconcilation.

2. Segment Revenue of Mining includes 9,604.06 Lakh (2018-19 10,902.59 Lakh) being captiveconsumption of Lignite/Lime for Power Project.

2.44 RELATED PARTY DISCLOSURESAs per the Indian Accounting Standard-24 on “Related Party Disclosures”, details for reporting period areas follows:

2.44.01 Associate/Joint VentureName of the entity TypeGujarat Jaypee Cement and Infrastructure Ltd. Associate

Gujarat Credo Mineral Industries Ltd. Associate

Aikya Chemicals Pvt. Ltd. Associate

Gujarat Foundation for Entrepreneurial Excellence Joint Venture

Swarnim Gujarat Fluorspar Pvt. Ltd. Joint Venture

Naini Coal Company Ltd. Joint Venture

GMDC Gramya Vikas Trust (*refer note 2.48 (b)) 100% controlled entity


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2.44.02 Transactions with related parties: ( in Lakh)Particulars Associates Joint Ventures 100% controlled Total

entity/Governmentrelated entities/KMP

2019-20 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20 2018-19Sale of Goods/ Services 4,456.14 1,552.95 - 1.66 47,643.96 62,263.46 52,100.10 63.818.07Purchase of Goods/ Services - - - - 7.09 6.60 7.09 6.60Fund disbursed on behalf of GOG - - 1,286.75 700.01 - - 1,286.75 700.01Reimbursement received - - - - 174.60 - 174.60 -Received/ Adjusted/Written off - - - 78.81 - - - 78.81Funds deposited with GSFS 143,239.10 193,939.24 143,239.10 193,939.24Funds withdrawn from GSFS 135,303.98 199,092.69 135,303.98 199,092.69Interest Income/Other Income 52.77 31.88 - 7.00 9,125.99 8,396.87 9,178.76 8,435.75Financial Contribution toGovernment Bodies 186.00 376.00 186.00 376.00Contribution made to ProvidentFund Trust 1,954.16 2,022.67 1,954.16 2,022.67Contribution made to Gratuity Trust(100% funded with LIC) 700.00 900.00 700.00 900.00Donation /CSR 1,000.00 - 1,000.00 -Directors' sitting fee 1.05 2.10 1.05 2.10Outstanding balances arising from sales/purchases of goods/servicesAccount Payable as at year end 20.75 12.30 32.42 316.98 0.53 0.49Account Receivable as at year end 1,453.34 985.06 1,641.66 1,641.66 134,574.13 123,300.96

1. The above transactions are inclusive of all taxes, wherever applicable.2. Directors' sitting Fees includes taxes, wherever applicable. Further, directors' sitting fees in respect

of Government nominated directors are deposited directly into Government Treasury.

2.44.03 Terms and conditionsTransactions relating to dividends were on the same terms and conditions that applied to othershareholders. Goods were sold to related parties as mentioned above on mutually agreed terms. Most ofthe outstanding balances are unsecured.

The Company has executed Power Purchase Agreements with one of Government owned PSUs for saleof power generated from wind mills, solar and thermal power plant for the period ranging from 25 to 30years.

2.44.04 Key Management Personnel Compensation: ( in Lakh)

Particulars 2019-20 2018-19Short-term employee benefits 81.24 77.33Post-employment benefits 32.55 28.38Long-term employee benefits 37.27 32.09Termination benefits - -Employee share-based payments - -

Total compensation 151.06 137.80


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2.44.05 Other transactions with Government related entitiesApart from the above transactions, the Company has also entered into other transactions in ordinarycourse of business with Government related entities. These are transacted at arm's length prices basedon the agreed contractual terms.

2.44.06 Further, the Company has entered into various long term material supply and power purchaseagreements with the related parties (including Government related entities) where goods/services are tobe provided at prices determined based on the contractual terms agreed. Some of the contracts are inthe process of being finalised pending the necessary approvals.

2.45 FINANCIAL INSTRUMENTS, FAIR VALUE AND RISK MEASUREMENTSA. Financial instruments by category and their fair value ( in Lakh)



active inputs e inputsmarkets

Financial assetsInvestments - Equity Shares - Unquoted - 13,794.84 - 13,794.84 - - 13,794.84 13,794.84 - Equity Shares - quoted - 11,258.36 - 11,258.36 11,258.36 - - 11,258.36Loan - Non-current - - 192.52 192.52 - - - - - Current - - 913.07 913.07 - - - -Trade Receivables - - 14,279.01 14,279.01 - - - -Cash and Cash Equivalents - - 9,511.93 9,511.93 - - - -Other Bank Balances - - 113.02 113.02 - - - -Other financial assets - Non-current - - 78,933.66 78,933.66 - - - - - Current - - 102,640.20 102,640.20 - - - -Total financial assets - 25,053.20 206,583.41 231,636.61 11,258.36 - 13,794.84 25,053.20Financial liabilitiesOther financial liabilities - Non-current - - 1,520.20 1,520.20 - - - - - Current - - 10,295.63 10,295.63 - - - -Trade Payables - - 13,683.52 13,683.52 - - - -Total financial liabilities - - 25,499.35 25,499.35 - - - -



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( in Lakh)



active inputs e inputsmarkets

Financial assetsInvestments - Equity Shares - Unquoted - 15,685.90 - 15,685.90 - - 15,685.90 15,685.90 - Equity Shares - quoted - 26,051.26 - 26,051.26 26,051.26 - - 26,051.26Loan - Non-current - - 205.79 205.79 - - - - - Current - - 1,074.31 1,074.31 - - - -Trade Receivables - - 14,747.71 14,747.71 - - - -Cash and Cash Equivalents - - 8,726.36 8,726.36 - - - -Other Bank Balances - - 140.35 140.35 - - - -Other financial assets - Non-current - - 69,135.05 69,135.05 - - - - - Current - - 101,015.84 101,015.84 - - - -Total financial assets - 41,737.16 195,045.41 236,782.57 26,051.26 - 15,685.90 41,737.16Financial liabilitiesOther financial liabilities - Non-current - - 2,623.56 2,623.56 - - - - - Current - - 9,658.25 9,658.25 - - - -Trade Payables - - 10,970.97 10,970.97 - - - -Total financial liabilities - - 23,252.78 23,252.78 - - - -


Types of inputs are as under:Input Level I (Directly Observable) which includes quoted prices in active markets for identical assets such as

quoted price for an equity security on Security Exchanges

Input Level II (Indirectly Observable) which includes prices in active markets for similar assets such as quotedprice for similar assets in active markets, valuation multiple derived from prices in observedtransactions involving similar businesses etc.

Input Level III (Unobservable) which includes management's own assumptions for arriving at a fair value such asprojected cash flows used to value a business etc.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far aspossible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair valuehierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchyas the lowest level input that is significant to the entire measurement.

As per the accounting policy of the company on Equity Instruments, all equity instruments in the scope of Ind AS


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109 are measured at fair value. Equity instruments which are held for trading are classified as at Fair Value ThroughProfit or Loss(FVTPL). For all other equity instruments, the company has the option to make an irrevocable electionon initial recognition, on an instrument-by-instrument basis, to present changes in fair value through OtherComprehensive Income(OCI) rather than through profit or loss. The option to present changes in Fair ValueThrough Other Comprehensive Income (FVTOCI) is available only at the time of initial recognition. Accordingly, thecompany has elected to measure its equity instruments through FVTOCI.

The value of investments made by the company in the quoted shares is measured at fair value through OCI. Although,the prices of quoted shares have gone down substantially as on 31st March, 2020 on account of Covid-19 outbreak, inthe absense of any other appropriate base, their fair value is measured by Directly Observable Input of Level I whichincludes quoted price for an equity security on Security Exchanges. Accordingly, the fair value is being arrived atbased on the prices of the investments in the shares of the companies as quoted on NSE/BSE Stock Exchange.The quoted price of investments in quoted shares held by the company as on 31st March, 2020 was

11,258.36 lakh as against 26,051.26 lakh as on 31st March, 2019 showing a reduction of 14,792.90 lakh. Thereduction in the value is mainly due to depressed market conditions on account of outbreak of Covid-19. Themanagement expects that its impact is likely to be short term in nature only.

B. Measurement of fair valuesi) Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 3 fair values, as well as thesignificant unobservable inputs used.

Financial instruments measured at fair valueFVTOCI in unquoted equity shares:Gujarat State Petroleum Corporation Limited1. Market approach : This approach uses information generated by market transactions of the Company

being valued or the transactions of comparable companies. The following market-linked information maybe used for determining valuation under this approach.

- Quoted price of the company being valued.

- Past transaction value of the company being valued.

- Listed comparable companies' trading multiples like price to earning ratio, enterprise value to earningbefore interest, tax, depreciation and amortisation, enterprise value to sales etc.

- Transactions multiples for investment / M & A transaction of comparable companies.

The valuation arrived at based on the market approach reflects the current value of the Company perceivedin the active market. However, as the valuation arrived at using market multiples is based on the past/current transaction or traded values of comparable companies/businesses, it may not reflect the possiblechanges in future trend of cash flows being generated by a business.

2. Income Approach : The income approach reflects present value of future cash flows. For valuing abusiness, the discounted cash flow (DCF) methodology is used under this approach. This methodologyworks on the premise that the value of a business is measured in terms of future cash flow streams,discounted to the present time at an appropriate discount rate. This method is used to determine thepresent value of business on a going concern assumption. The DCF technique recognizes the time valueof money.

The value of the firm is arrived at by estimating the Free Cash Flow to Firm (FCFF) and discounting thesame at the Weighted Average Cost of Capital (WACC). FCFF is estimated by forecasting free cash flowsavailable to the firm (which are derived on the basis of the likely future earnings of the company).


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3. Cost Approach: The cost approach essentially estimates the cost of replacing the tangible assets of thebusiness. The replacement cost takes into account the market value of various assets or the expenditurerequired to create the infrastructure exactly similar to that of a company being valued.

Significant unobservable inputsHighest priority is given to unadjusted quoted price of listed entities and lowest priority to non-marketlinked inputs such as future cash flows used in income approach.Inter-relationship between significant unobservable inputs and fair value measurementThe estimated fair value would increase (decrease) if there is a change in significant unobservable inputsused in determination of fair value.Considering the diverse asset and investment base of the Company with differing risk/return profiles, asum of the parts approach has been adopted for the valuation. Under this method, the value of eachdistinct business/asset/investment has been arrived at separately and total value estimate for theCompany presented as the sum of all its business/assets/investments.Gujarat Guardian LimitedFair value is determined using the ratio of enterprise value to EBIDTA adjusted for the industry average.The industry average has been computed using peer companies.Gujarat Industrial And Technical Consultancy Organisation Limited (GITCO) and GujaratInformatics LimitedIn absence of sufficient information for determination of fair value, the Company has determined thesame using net worth as reflected in the financial statements as at the each reporting date. Managementis of the view that the value so determined are reflective of the fair values.Further, in the absence of the audited financial statements of GITCO and Gujarat Informatics Limited, thefair value is determined based on unaudited financial statements for the year ended 31st March, 2020.Once the audited financials are available, appropriate changes would be made in the subsequent periods.

ii) Transfers between Levels 1 and 2There have been no transfers between Level 1 and Level 2 during the reporting periods.

iii) Level 3 fair valuesMovements in the values of unquoted equity instruments for the period ended 31st March, 2020 and 31stMarch, 2019: ( in Lakh)

Particulars AmountAs at 1st April 2018 20,593.72Acquisitions / (disposals) -Gains/ (losses) recognised in other comprehensive income (4,907.82)Gains/ (losses) recognised in statement of profit or loss -

As at 31st March 2019 15,685.90Acquisitions/ (disposals) -Gains/ (losses) recognised in other comprehensive income (1,891.06)Gains/ (losses) recognised in statement of profit or loss -

As at 31st March 2020 13,794.84

Transfer out of Level 3There were no movement in level 3 in either directions during the year 2019-20 and 2018-19.

Sensitivity analysis - Investments in unquoted equity instrumentsOn account of lack of sufficient information as at the end of reporting period and nature of investments,the management is of the view that it is impracticable to determine the sensitivity of the fair values tochanges in the underlying assumptions.


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C. Financial risk managementThe Company has exposure to the following risks arising from financial instruments:• Credit risk;• Liquidity risk ; and• Market risk

(i) Risk management frameworkThe Company has a well-defined risk management framework. The Board of Directors of the Companyhas adopted a Risk Management Policy. Company has also set up a Risk Management Committee.

Looking to the profile of the Company, i.e., Mining and Power Operations, the Company has inbuilt riskmanagement practices to address various operational risks. The Company has standard operatingprocesses for various mining operations in order to mitigate procedures and prevent risk arising out ofvarious operations. The Company has no external borrowings. Hence, there is no financial risk thatcan impact the Company's Financial Position. The Company primarily deals with natural resources.Hence, Policy of Government may impact the Company's operational strategy. The Company's riskmanagement process revolves around following parameters:1. Risk Identification and Impact Assessment2. Risk Evaluation3. Risk Reporting and Disclosure4. Risk Mitigation

(ii) Credit riskCredit risk is the risk of financial loss to the Company if a customer or counterparty to a financialinstrument fails to meet its contractual obligations, and arises principally from the Company'sreceivables from customers.Other financial assetsThe Company maintains its Cash and cash equivalents and Bank deposits with banks having goodreputation, good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.Trade and other receivablesTrade receivables of the Company are typically unsecured ,except to the extent of advance receivedagainst sales for sale of lignite. Credit risk is managed through credit approvals and periodic monitoringof the creditworthiness of customers to which Company grants credit terms in the normal course ofbusiness. The Company performs ongoing credit evaluations of its customers’ financial condition andmonitors the creditworthiness of its customers to which it grants credit terms in the normal course ofbusiness. Significant portion of trade receivables at the respective reporting date comprise of StateGovernments PSUs. Management does not expect any credit risk on the same. The allowance forimpairment of trade receivables is created to the extent and as and when required, based upon theexpected collectability of accounts receivables.

Age of Receivables ( in Lakh)


Within the credit period 1,881.59 2,402.10

1-30 days past due 646.76 3,468.55

31-60 days past due 589.17 1,591.32

61-90 days past due 8,134.23 64.61

More than 90 days past due 3,124.54 7,318.40


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The above receivables which are past due but not impaired are assessed on individual case to casebasis and relate to a number of independent third party customers from whom there is no recenthistory of default. Management is of the view that these financial assets (majorly state owned PSUs)are not impaired as there has not been a significant change in credit quality and are recoverable basedon the nature of the activity with the respective customer to which they belong and the type ofcustomers. Further, since the amount are collected within one year, there is no loss on account of timevalue of money. Consequently, no additional provision has been created on account of expected creditloss on the receivables. There are no other classes of financial assets that are past due but notimpaired except for trade receivables as at 31st March, 2020 and 31st March, 2019.

Movements in Expected Credit Loss Allowance ( in Lakh)Particulars As at As at

31st March, 2020 31st March, 2019Balance at the beginning of the year 97.27 104.14Movements in allowance - (6.87)Closing balance 97.27 97.27

The maximum exposure to credit risk for trade and other receivables by geographic region was asfollows:

( in Lakh)Particulars Carrying amount

As at As at31st March, 2020 31st March, 2019

India 14,279.01 14,747.71Other regions - -

14,279.01 14,747.71

Management believes that the unimpaired amounts that are past due by more than 30 days are stillcollectible in full, based on historical payment behavior and extensive analysis of customer creditrisk, including underlying customers’ credit ratings if they are available.

Management estimates that there are no instances of past due or impaired trade and otherreceivables.

(iii) Liquidity riskLiquidity risk is the risk that the Company will encounter difficulty in meeting the obligationsassociated 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 havesufficient liquidity to meet its liabilities when they are due, under both normal and stressedconditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Exposure to liquidity riskThe following are the remaining contractual maturities of financial liabilities at the reporting date.The amounts are gross and undiscounted, and include estimated interest payments and excludethe impact of netting agreements, if any.





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Non-derivative financial liabilitiesNon current financial liabilities 2,623.56 2,623.56 - 2,623.56

Current financial liabilities 9,658.25 9,658.25 9,658.25 -

Trade payables 10,970.97 10,970.97 10,970.97 -

Total 23,252.78 23,252.78 20,629.22 2,623.56

(iv) Market riskMarket risk is the risk that changes in market prices – such as foreign exchange rates, interestrates and equity prices – will affect the Company’s income or the value of its holdings of financialinstruments.

Currency riskThe functional currency of the Company is Indian Rupees.The Company do not use derivative financial instruments for trading or speculative purposes. As theCompany does not engage in foreign exchange transaction, it is not exposed to currency risk.

Interest rate riskInterest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair valueinterest rate risk is the risk of changes in fair values of fixed interest bearing investments becauseof fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flowsof floating interest bearing investments will fluctuate because of fluctuations in the interest rates.The Company does not have any undrawn or outstanding borrowings and hence does not possessany interest rate risk.

Price RiskThe Company's exposure to equity securities price risk arises from investments held by theCompany and classified in the balance sheet as fair value through other comprehensive income(FVTOCI). Some of the equity investments are publicly traded and are included in the NSE Nifty 50Index.

SensitivityThe table below summarises the impact of increases/decreases of the index on the Company'sequity and other comprehensive income for the period. The analysis is based on the assumptionthat the index had increased by 20% or decreased by 20% with all other variables held constant,and that the Company's quoted equity instruments moved in line with the index. The persentagehave been determined considering average of the actual movements in quoted prices of equityshares held as investments as at 31st March, 2020.

( in Lakh)

Particulars Impact on OtherComprehensive Income

NSE NIFTY 50 - increase 20% 2,251.67

NSE NIFTY 50 - decrease 20% (2,251.67)


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2.46 CAPITAL MANAGEMENTThe Company's objectives when managing capital are to:

safeguard their ability to continue as a going concern, so that they can continue to provide returns forshareholders and benefits for other stakeholders, and

maintain an optimal capital structure to reduce the cost of capital.

The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose,adjusted net debt is defined as total non-current liabilities, less Cash and bank balances. Adjusted equitycomprises all components of equity.

The Company’s adjusted net debt to equity ratio at 31st March, 2020 and 31st March, 2019 was as follows.( in Lakh)


Total Non-current liabilities 66,611.56 64,339.24

Less : Cash and bank balances 9,624.95 8,866.71

Adjusted net debt 56,986.61 55,472.53Total equity 424,811.56 431,729.09Adjusted net debt to adjusted equity ratio 0.13 0.13

2.47 Corresponding figures of the previous year have been re-grouped / re-arranged / re-classified / restatedand revised, wherever necessary, for rounding off ruppes to nearest lakh and/or to make themcomparable with the figures of the current year.

2.48 PRIOR PERIOD ITEMS, ERRORS AND CHANGES IN ACCOUNTING POLICIESa) In respect of mines other than lignite mines, expenses incurred either departmentally or through

outside agencies on mine closure activities are charged to the respective head of expenses andprovision is made for shortfall therein, if advised by the technical division. The same was notdisclosed in the Significant Accounitng Policies (SAP) so far, the same is disclosed now in SAP atserial number (u). Such disclosure does not have any impact on the profitability as well as Assets/Liabilities of the company.

b) GMDC Gramya Vikas Trust (GVT), was formed with the objective of spreading social welfareactivities such as public safety, healthcare, education, tribal development, water supply andsanitation facilities etc. in and around the areas and habitat encompassing our project sites.Moreover, GVT do not participate in any of the profit motive activities rather only service andfacilitation activities for the benefit of public at large in the surrounding areas / core zone villages. Asper Ind AS 110 para 7 which lays down conditions for control, one of them being exposure or right tovariable returns from investee. GVT being non profit entity, GMDC has no rights to its variablereturns and the control can not be established. Therefore, from current financial year, GVT hasbeen excluded from consolidation and considering the concept of materiality, figures of comparativeperiods are not restated. This has resulted in net impact of ? 10.29 lakh on opening equity (retainedearnings).

c) The Company has accounted for material prior period errors discovered during the current period,retrospectively by restating the comparative amounts to which the same relates. Since certainperiods were prior to comparative period presented, the impact has been considered in openingbalance sheet of comparative period presented. Impact of the same is not material to the financialstatements.


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Following are the financial items affected due to restatement in the comparative financial results presentedhereunder for the matters stated above:

( in Lakh)As at 31st March, 2019 As at 31st March, 2018

Financial Statements Line Earlier Correction Reclassification Restated Earlier Correction Reclassification RestatedItem affected Presented Amount Amount Amount Presented Amount Amount Amount(Balance Sheet) Amount AmountASSETSNon-Current AssetsOther Non Current Assets 44,867.00 0.13 - 44,867.13Current Assets Cash & cash equivalents 4,676.36 - 4,050.00 8,726.36 - - - - Other Financial Assets 105,064.67 1.17 (4,050.00) 101,015.84 - - - -LIABILITIESCurrent Liabilities Trade Payables 10,959.99 10.98 - 10,970.97 - - - - Advance from customer 1,262.52 (28.26) - 1,234.25 2,148.64 (28.26) - 2,120.38Other EquityRetained Earnings 122,306.06 18.57 - 122,324.63 113,005.71 28.26 - 113,033.97Prior Period Errors ofearlier periods - 28.26 - - - - - -Short booking ofMisc. income - - - - - 28.26 - -Excess booking ofOther Income - (9.21) - - - - - -Short booking ofinterest income - 1.30 - - - - - -Excess booking of SecurityExpense - (8.59) - - - - -Short booking of other repair - 6.82 - - - - - -

( in Lakh)Financial Statements Line Item affected 2018-19(Statement of Profit and Loss) Earlier Presented Correction Restated

Amount Amount AmountINCOME Other Income 2,498.03 (9.22) 2,488.81 Finance Income 11,955.17 1.30 11,956.47EXPENSES Other Expenses 120,748.21 1.77 120,749.98Profit After Tax for the Period 21,993.93 (9.69) 21,984.24

(Amount in )Effect on Earning Per Share 2018-19

Earlier Presented Correction RestatedAmount Amount Amount

Earning per Share (EPS) for Profit for thePeriod (Face Value of 2) Basic ( ) 6.92 (0.01) 6.91 Diluted ( ) 6.92 (0.01) 6.91


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2.49 Transition to Indian Accounting Standards (Ind AS) amendments effective from 1st April, 2019Ministry of Corporate Affairs ("MCA") has notified Ind AS 116 and amendments to Ind AS 12, which theCompany has applied effective from annual periods beginning on or after April 1, 2019:

a) Ind AS 116 LeasesEffective from 1st April 2019 (‘the date of transition’), the Company applied Ind AS 116 using themodified retrospective approach, under which the cumulative effect of initial application isrecognised in retained earnings at 1st April 2019. Accordingly, the comparative information is notrestated – i.e. it is presented, as previously reported, under Ind AS 17. Additionally, the disclosurerequirements in Ind AS 116 have not generally been applied to comparative information.

On transition to Ind AS 116, the Company has elected to apply the practical expedient to grandfather theassessment of which transactions are leases. The definition of a lease under Ind AS 116 is applied onlyto contracts entered into or changed on or after 1st April 2019. The Company has applied accountingunder Ind AS 116 also to contracts that were previously identified as leases under Ind AS 17.

On transition, for leases that are classified as finance lease under Ind AS 17, the carrying amount of theRight-of-Use (ROU) asset and the lease liability at the date of transition to Ind AS 116 is the carryingamount of the lease asset and lease liability on the transition date as measured applying Ind AS 17.Accordingly, as on transition date an amount of 1159.47 lakh (net) land is reclassified as ROU assetand additional ROU asset of 28.38 lakh (net) with corresponding lease liability of 34.94 lakh isrecognised. This has resulted in net off tax impact of 4.27 lakh on opening equity (retained earnings).

b) Appendix C of Ind AS 12Effective from 1st April, 2019 (date of transition), The Ministry of Corporate Affairs has notified thecorresponding change in Ind AS 12, by including IFRIC 23 as Appendix C to Ind AS 12. Appendix Caddresses uncertainty over how tax treatments should affect the accounting for income taxes. Thecompany has considered whether it is probable that taxation authority will accept an uncertain taxposition and based on the probability of likelihood of events company has recognised an additionaltax liability of 3190.39 lakh on the date of transition and cumulative effect is given in openingequity. Accordingly, the comparative information is not restated.

2.50 Covid-19 impact on businessDue to outbreak of COVID-19 globally and in India, the company has made initial assessment of likelyadverse impact on its business in general and financial risks on account of COVID-19 in particular andbelieves that the impact is likely to be short term in nature. The company is in the business of mining ofLignite, Bauxite and other minerals as well as generation of electricity by wind, solar and also lignitebased thermal power projects, which are essential services as emphasized by the Government.

In the case of generation of electricity, the availability of power plant to generate electricity as per thedemand of the customers is important. Therefore, GMDC has ensured not only the availability of its powerplant to generate power but has also continued to supply power during the period of lockdown, consideringessential service as declared by the Government. The company has entered into power purchaseagreements with Gujarat Urja Vikas Nigam Ltd. for sale of electricity generated by it. Therefore, reduction inthe demand of power in the short term will have no effect on the sale of Power by the company.

In respect of Mining, lignite mining continues to be the main operation of the company which has itsmaximum share in its total turnover. GMDC currently operates in 5 operational lignite mines located inKutch, South Gujarat and Bhavnagar region. Company is a critical supplier of lignite in the industrial unitsoperating in Gujarat. Lignite is supplied not only to its own power plants for captive consumption but also toother power plants and other industries. Company is supplying lignite to its customers only against advancereceipt for sale of lignite except in the case of state government PSUs. Therefore, company does not haveany credit risk for the same. Company expects that considering the steps taken by the Central and the StateGovernment for the revival of economy, the impact on the demand of lignite due to lock-down may be forshort duration only. The management does not expect any medium to long term risks at this stage incompany's ability to continue as a going concern and meeting its liabilities as and when they fall due.


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2.51 ADDITIONAL INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013( in Lakh)

Name of the entity in the Net assets (total assets Share in profit or (loss) Share in other Share in Totalgroup minus total liabilities comprehensive income comprehensive income

As % of Amount As % of Amount As % of Amount As % of Amountconsolidated consolidated consolidated consolidated

net assets net assets net assets net assetsParentGujarat MineralDevelopment CorporationLimited31 March 2020 99.15% 421,211.70 99.32% 20,267.75 100.00% (16,472.26) 96.48% 3,795.4931 March 2019 99.27% 428,578.19 105.06% 23,096.54 100.01% (11,980.57) 111.11% 11,115.97Subsidiaries / 100%controlled entitiesIndianGMDC Gramya Vikas Trust31 March 2019 -0.21% (910.29) -4.50% (989.31) 0.00% - -9.89% (989.31)GMDC Science andResearch Centre31 March 2020 0.54% 2,282.53 -0.30% (60.67) 0.00% - -1.54% (60.67)31 March 2019 0.68% 2,943.20 -0.62% (137.22) 0.00% - -1.37% (137.22)Associates (Investmentsas per the equity method)IndianGujarat Jaypee Cementand Infra Ltd.31 March 2020 0.00% 11.37 0.00% 0.09 0.00% - 0.00% 0.0931 March 2019 0.00% 11.29 0.00% 0.14 0.00% - 0.00% 0.14Gujarat Credo MineralIndustries Ltd.31 March 2020 0.26% 1,101.73 0.58% 118.94 - - 3.02% 118.9431 March 2019 0.23% 982.79 0.43% 94.85 -0.01% 1.03 0.96% 95.87Aikya ChemicalsPvt. Ltd.31 March 2020 0.05% 198.61 0.37% 76.28 - - 1.94% 76.2831 March 2019 0.03% 122.32 -0.37% (80.66) 0.00% - -0.81% (80.66)Joint Ventures(Investments as per theequity method)IndianNaini Coal Co. Limited31 March 2020 0.00% - 0.00% - - - 0.00% -31 March 2019 0.00% - 0.00% - 0.00% - 0.00% -Swarnim Gujarat FluorsparPvt. Ltd.31 March 2020 0.00% 1.58 0.00% (0.02) - - 0.00% (0.02)31 March 2019 0.00% 1.60 0.00% (0.09) 0.00% - 0.00% (0.09)Gujarat Foundation forEntrepreneurial Excellence31 March 2020 0.00% 4.04 0.02% 4.04 - - 0.10% 4.0431 March 2019 0.00% - 0.00% - 0.00% - 0.00% -Total31 March 2020 100.00% 424,811.56 100.00% 20,406.41 100.00% (16,472.26) 100.00% 3,934.1531 March 2019 100.00% 431,729.09 100.00% 21,984.24 100.00% (11,979.54) 100.00% 10,004.70


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2.51.01 GMRICS (being a subsidiary / 100% controlled entity) is a society set up under Society’s Act and iscontrolled by the Company. However, the financial statements have not been prepared due to no financialtransaction since 2012-13. Hence, the same has not been considered for the purposes of preparing theconsolidated financial statements.

2.52 INTEREST IN ASSOCIATES AND JOINT VENTURESSet out below are the associates and joint ventures of the Company as at 31st March 2020 which, in theopinion of the directors, are material to the Company. The entities listed below have share capitalconsisting solely of equity shares, which are held directly by the Company. The country of incorporation orregistration is also their principal place of business, and the proportion of ownership interest is the sameas the proportion of voting rights held.

( in Lakh)

Name of Entity Place of % of Relationship Accounting Carrying Amountbusiness ownership method 31 March, 31 March,

interest 2020 2019Naini Coal Company Ltd India 50.00% Joint Venture Equity Method - -Swarnim Gujarat FluorsparPvt Ltd India 1.05% Joint Venture Equity Method 1.58 1.60Gujarat Foundation forEntrepreneurial Excellence India 50.00% Joint Venture Equity Method 4.04 -Gujarat Jaypee CementInfrastructure Limited India 26.00% Associate Equity Method 11.37 11.29Gujarat Credo MineralIndustries Ltd. India 26.00% Associate Equity Method 1,101.73 982.79Aikya Chemicals Pvt Ltd India 26.00% Associate Equity Method 198.61 122.32

Nature of business:-Swarnim Gujarat Fluorspar Pvt Ltd - Fluorspar beneficiationGujarat Foundation for Entrepreneurial Excellence - Incubation center for entrepreneurship & developmentGujarat Credo Mineral Industries Ltd. - Bauxite beneficiationAikya Chemicals Pvt Ltd - Manganese beneficiation

Summarised financial information for associates and joints venturesThe tables below provide summarised financial information for those joint ventures and associates that are materialto the Company. The information disclosed reflects the amounts presented in the financial statements of therelevant associates and joint ventures and not the Company's share of those amounts. They have been amended toreflect adjustments made by the entity when using the equity method, including fair value adjustments made at thetime of acquisition and modifications for differences in accounting policies.


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Summarised Balance Sheet as at 31 March 2019 ( in Lakh)Naini coal Swarnim Gujarat Gujarat Gujarat Aikyacompany Gujarat Foundation Jaypee Credo Chemicals

Particulars Ltd. Fluorspar for Enter- Cement & Mineral Pvt. Ltd.Private preneurial Infra- IndustriesLimited Excellence structure Ltd. Limited

Current Assets Cash and cash equivalents 5.84 17.52 132.24 * * * Other assets - 0.04 751.54 * * *

Total current assets 5.84 17.56 883.78 34.41 4,798.11 814.35Total non-current assets 3.02 160.70 492.12 10.31 5,597.67 4,101.25Current liabilities Financial liabilities 1.21 0.56 1,867.91 * * * (excluding trade payables) Other liabilities 3,407.62 18.38 0.92 * * *

Total current liabilities 3,408.83 18.94 1,868.83 1.32 5,021.10 1,908.98Non-current liabilities Financial liabilities - - - * * * (excluding trade payables) Other liabilities - - - * * *

Total non-current liabilities - - - - 1,594.71 2,540.02Net Assets (3,399.97) 159.32 (492.93) 43.40 3,779.97 466.60* Indicates disclosures that are not required for investments in associates

Summarised Balance Sheet as at 31 March 2020 ( in Lakh)Naini coal Swarnim Gujarat Gujarat Gujarat Aikyacompany Gujarat Foundation Jaypee Credo Chemicals


Current Assets Cash and cash equivanlents 6.16 15.24 249.30 * * * Other assets - - 253.96 * * *

Total current assets 6.16 15.24 503.27 34.67 4,061.47 611.93Total non-current assets 3.02 160.69 1,553.42 10.31 5,409.00 3,947.80Current liabilities Financial liabilities 1.30 0.56 18.96 * * * (excluding trade payables) Other liabilities 3,407.62 18.00 8.73 * * *

Total current liabilities 3,408.92 18.56 27.69 1.24 4,027.79 470.68Non-current liabilities Financial liabilities - - - * * * (excluding trade payables) Other liabilities - - 2,017.09 * * *Total non-current liabilities - - 2,017.09 - 1,205.26 3,329.04Net Assets (3,399.73) 157.37 11.92 43.75 4,237.41 760.00* Indicates disclosures that are not required for investments in associates


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Summarised Statement of Profit and Loss for the year ended on 31 March 2019 ( in Lakh)Naini coal Swarnim Gujarat Gujarat Gujarat Aikyacompany Gujarat Foundation Jaypee Credo Chemicals


Revenue 0.35 0.00 75.13 2.09 7,935.77 1,032.85Profit/(Loss) for the year 0.12 (8.76) (475.24) 0.53 364.79 (295.01)Other comprehensive income 3.96

Total comprehensive income 0.12 (8.76) (475.24) 0.53 368.75 (295.01)Dividend received - - - - - -

Summarised Statement of Profit and Loss for the year ended on 31 March 2020 ( in Lakh)

Naini coal Swarnim Gujarat Gujarat Gujarat Aikyacompany Gujarat Foundation Jaypee Credo Chemicals


Revenue 0.35 0.00 84.16 2.27 11,144.21 1,483.26Profit/(Loss) for the year 0.26 (1.96) - 0.34 421.99 147.16Other comprehensive income - - - - - -Total comprehensive income 0.26 (1.96) - 0.34 421.99 147.16Dividend received






GUJARAT MINERAL DEVELOPMENTCORPORATION LIMITED

(A GOVT. OF GUJARAT ENTERPRISE)

Registered Office :Khanij Bhavan, 132 Feet Ring Road,

Near University Ground, Vastrapur , Ahmedabad – 380 052.Phone:-(079) 27913200 / 3501

E-Mail: [email protected] • Website: www.gmdcltd.com

CIN:L14100GJ1963SGC001206

annual report - gmdcltd

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