1.2.24 Provision for doubtful debts
Provision for bad and doubtful debts is made
based on a case to case review of trade
receivables outstanding for more than two years
Debts outstanding from private parties for more
than three years or balance dues on account of
levy of penalty which are considered doubtful of
recovery are invariably provided.
1.2.25 Research and development expenditure
Research expenditure is charged to statement
of profit and loss in the year of incurrence.
However, expenditure of capital nature relating
to other research and development is treated in
the same way as non-current assets.
1.2.26 Mine closure expenditure
Financial implications towards final mine
closure plans under relevant Acts and Rules are
technically estimated, based on total available
ore reserves of all mines. The same are provided
in accounts, on year to year basis, after taking
into consideration overall production of all mines.
1.2.27 Net present value for diversion of forest land
for non-forest purposes
The liability is recognized on receipt of necessary
permission from the concerned authorities.
1.2.28 Restatement of prior period financials on
material error/omissions
The value of error and omissions is construed to
be material for restating the opening balances
of assets and liabilities and equity for the prior
period presented if the amount in each case of
prior period income/expenses exceeds 1% of
the turnover of the previous year.
Defined obligations - Disclosures as per Ind-AS19 : Employee benefits are as under -
A Defined Contribution Plans :
(a) Provident Fund : The Company pays fixed contribution at predetermined rates to Provident Fund Trust, which
invests the funds in permitted securities.
(b) Pension Fund : The Company pays fixed contribution to MOIL Group Superannuation Cash Accumulation
Scheme (Defined Contribution) [MOIL GSCA (DC)] Trust which invests the funds in LIC of India and National
Pension Scheme (NPS).
Note 2.26 Provisions (Contd..)
B Defined Benefit Plans :
(a) Gratuity : The Group Gratuity Cash Accumulation Scheme is funded by the Company and is managed by MOIL
Gratuity Trust as per Payment of Gratuity Act,1972. Liability for gratuity is recognised on the basis of actuarial
valuation. Eligible amount is paid to the employees on separation by the Trust.
(b) Post Retirement Medical Benefit : The benefit is available to eligible retired employees and their eligible
dependents who have opted for the benefit under the scheme. This employee benefit is administered through
a trust. The liability for the same is recognised on the basis of actuarial valuation and funded through the trust.
C Leave Benefits :
The accumulated earned leave, half pay leave/sick leave is payable on separation, subject to maximum permissible
limit. The liability for the same is recognised on the basis of actuarial valuation.
Characteristics of defined benefit plans:
Defined Benefit Gratuity plan: - To provide funding to cater gratuity benefit to employees as per provisions of The
payment of Gratuity Act 1972. Gratuity is calculated as per the provisions of said Act and is limited to maximum H 25 lakhs.
Defined Benefit Leave encashment plan: - To provide funding for terminal encashment benefits of accumulated leave to
the credit of employees account at the rate of last drawn salary which is restricted to maximum 300 days leave balance,
as per the leave Rules of the Company.
Assumptions and limitations:
The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation
are determined using actuarial valuation. An actuarial valuation involves making various assumptions that may differ
from actual developments in the future. These include the determination of the discount rate, future salary increases,
mortality rates and future pension increases. Due to the complexities involved in the valuation and its long-term nature,
a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each
reporting date.
The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the
market yields available on Government bonds at the accounting date relevant to currency of benefit payments for a
term that matches the liabilities. Salary growth rate is company’s long term best estimate as to salary increases and
takes account of inflation, seniority, promotion, business plan, HR policy and other relevant factors on long term basis as
provided in relevant accounting standard.
Risk:
Management has entrusted four approved fund managers namely Life Insurance Corporation of India, Bajaj Allianz Life
Insurance Co. Ltd., Birla Sun Life Insurance and ICICI Prudential Life Insurance for managing the fund for Gratuity i.e. 60%
is to be deposited with LIC and maximum 40% with private insurers and Life Insurance Corporation of India for leave
encashment. The performance of fund, assumptions, discount rates and net assets value is evaluated for the reporting
period by the management. The fund managers are regulated by IRDA and its investment norms specified by Government
of India as per Gazette Notification of 2016 as mentioned below. The fund managers follow policies to mitigate risk
which includes review of credit rating, exposure concentration, risk of tolerance levels, regulatory compliance standards,
standard operating procedure etc. Since majority of funds invested by fund managers are in Government securities and
having sovereign guarantees by Government of India, the risk is minimal.
3.3 Financial Risk Management
Risk management framework
The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The Board of Directors has established the Risk Management framework for developing and
monitoring the Company’s risk management policies. The Risk management committee regularly reports its activities to
the Board of Directors through Audit Committee on regular basis.
The Company’s risk management framework is established to identify and analyse the risks faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management framework and
systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company,
through its training and management standards and procedures, aims to maintain a disciplined and constructive control
environment in which all employees understand their roles and obligations.
The Board of Directors through Audit Committee monitors the compliance with the Company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced
by the Company.
A Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily
trade receivables) and deposits with banks.
(a) Trade receivables
The Company sales are generally based on advance payments and through letters of credit/ Bank guarantees. The
trade receivables in the books are mainly on account of credit sales to M/s SAIL MEL Limited (Chandrapur),SAIL
Bhilai Steel Plant, Salem Steel, NMDC Steel Limited and RINL CPSEs under the Ministry of Steel.
(b) Financial instruments and cash deposits
Credit risk from balances with banks is managed by the Company’s treasury department in accordance with DPE
guidelines & Company’s investment policy. The credit risk of each investment is reviewed by the Company’s
Board of Directors through Audit Committee on regular basis. The credit risk mitigation measures are in placed
and followed regularly.
B. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they
are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Company’s reputation.
Typically the Company ensures that it has sufficient cash on demand to meet the current and the expected
operational expenses , including the servicing of financial obligations; this excludes the potential impact of extreme
circumstances that cannot reasonably be predicted, such as natural disasters.
Maturities of financial liabilities :
The table below summarises the maturity profile of the Company’s financial liabilities based on contractual
undiscounted payments.
C. Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the
Company’s income or the value of its holdings of financial instruments. The objective of market risk management is
to manage and control market risk exposures within acceptable parameters, while optimising the return.
(i) Foreign currency risk :
Since majority of the company's operations are being carried in India and since all the material balances are
denominated in its functional currency, the company does not carry any material exposure to currency fluctuation risk.
(ii) Interest rate risk :
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. Since the interest rates on fixed deposits are fixed, the company does not have
any interest rate risk. Further as the Company does not have any borrowings. Hence, there is no interest rate risk.
3.4 Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the
recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.
3.5 In accordance with paragraph 117 of Ind AS 1 Presentation of Financial Statements, we have made disclosures
regarding significant accounting policies, the measurement basis in Accounting policy No.1.1 (b) used in preparing the
financial statements and the other accounting policies used that are relevant to an understanding of the financial statements.
3.6 Hedge accounting is not applicable.
3.7 Capital Management
(a) Risk management
The primary objective of the Company’s capital management is to maximise the shareholder value. The Company's
objectives when managing the capital are to safeguard their ability to continue as a going concern, so that they can
continue to provide returns for shareholders and benefits for other stakeholders.
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and
to sustain future development of the business. The Board of Directors and senior management monitors the return
on capital, which the Company defines as result from operating activities divided by total shareholders’ equity.
For the purpose of the Company’s capital management, capital (Equity) includes issued equity share capital and
other equity attributable to the equity holders. The company has no external borrowings as on 31st March 2026.
Income tax expense comprises of current and deferred income tax of current year in the statement of profit and loss.
Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements.
3.9 Income tax deducted at source from interest received by the company amounts to H 531.57 lakhs (H 705.50 lakhs).
TDS from e-auction and customers under section 194O and 194Q H140.58 lakhs ( H 174.89 lakhs). Tax deduction
certificates are awaited in some cases.
(4) Government Related Entities
The company is controlled by the Government of India (GOI), being a Central Public Sector Enterprise (CPSE) under
the Ministry of Steel, with GOI holding 53.35% (Previous Year 53.35%) of equity shares capital issued and paid
up. The Company has business transactions with other entities controlled by the GOI for procurement of capital
equipment, stores, spares e.t.c. and services and sale of finished goods. Transactions with these entities are carried
out at market terms and on terms comparable to those with other entities that are not Government-related generally
through a transparent price discovery process.
3.12 Expenditure of capital nature for exploration- MOIL GMDC JVC yet to be incorporated:
1. MOIL entered into MoU in October-2019 with Gujarat Mineral Development Corporation (GMDC), to explore the
possibilities of manganese ore mining in the State of Gujarat.
2. Identified Pani block in Chhota Udepur district for initial exploration. After core drilling sizeable resource base of 9.51
million tonnes of manganese ore in Pani area with a threshold value of 10% manganese content has been established.
3. Accordingly, approval from the Ministry of Steel, NITI Aayog, and DIPAM was obtained for the formation of JVC.
4. JV agreement prepared and shared with Gujarat Mineral Development Corporation Limited (GMDC).
5. Hence, GMDC has applied for mining lease in Pani area.
3.12 Expenditure of capital nature for exploration- MOIL GMDC JVC yet to be incorporated:(Contd..)
6. Govt. of Gujarat has sought permission from Ministry of Mines for on 14.08.2025.
7. Ministry of Mines has sought some additional question from Government of Gujarat on 03.12.2025.
8. Govt. of Gujarat has sent the required information to Ministry of Mines on 17.01.2026.
9. The file is under process at Ministry of Mines, New Delhi.
10. MOIL has incurred H 765.27 lakhs(H 765.27 lakhs) in this project till date. As MOIL GMDC JVC is yet to be
incorporated, consolidated financial statement is not required to be prepared.
3.13 Tripartite MoU with Govt. of Madhya Pradesh and Madhya Pradesh State Mining Corporation
Limited :
1. MOIL had signed a tripartite MoU with the Govt. of Madhya Pradesh and Madhya Pradesh State Mining Corporation
Limited (MPSMCL) to explore the possibility of exploration and exploitation of manganese ore in four districts i.e.
Balaghat, Jabalpur, Jhabua and Chhindwara on 27.10.2016.
2. As per MoU, after exploration if the project is found technically and economically viable for mining, a JVC will be
formed between MPSMCL and MOIL, with MPSMCL holding 49% and MOIL holding 51%.
3. Govt. of Madhya Pradesh has reserved 487 Km2 and 850 Km2 areas in Chhindwara and Balaghat districts respectively
vide gazette notification dated 22.06.2021 under sub Rule (1) of Rule 67 of the Minerals (Other than Atomic and
Hydrocarbon Energy Minerals) Concession Rule 2016 to carry out exploration work.
4. MOIL has successfully completed exploratory core drilling in both districts, totaling 16,357 meters in Chhindwara
and 55,188 meters in Balaghat. Based on the exploration and analysis, two blocks were identified as suitable for
mining. Preparation of TEFR is under process.
5. Draft JV was signed in the presence of the Hon'ble Chief Minister of Madhya Pradesh at Madhya Pradesh Mining
Conclave 2024 on October 18, 2024, in Bhopal subject to the approval of the Ministry of Steel, NITI Aayog, DIPAM
and other requisite permission from various authorities.
6. MOIL has incurred H 1694.75 lakhs(H 1643.99 lakhs) in exploration and related activities till date. The technical and
economical feasibility is yet to be established. Hence, the amount incurred is treated as Intangible assets under
development-expenditure of capital nature on exploration.
3.14 MoU with Chhattisgarh Mineral Development Corporation Limited (CMDC):
1. MOIL entered into an MoU with the Chhattisgarh Mineral Development Corporation (CMDC) in January 2023 to
explore manganese and associated minerals in Chhattisgarh.
2. Govt. of Chhattisgarh has reserved 218 km2 area in district of Balrampur for exploration.
3. MOIL commenced exploration activities at Nilkanthpur and the surrounding areas in Balrampur district in June
2024, exploration is under process.
4. Core drilling of 11628 m (11628 m) completed as on 31.03.2026. However, due to local issue work has
been suspended.
5. MOIL has incurred H 115.76 lakhs(H 112.67 lakhs) in exploration and related activities till date. The technical and
economical feasibility is yet to be established. Hence, the amount incurred is treated as Intangible assets under
development-expenditure of capital nature on exploration.
3.15 Contingent liabilities and Commitments :
(i) Contingent Liabilities
(a) Claims against the company not acknowledged as debts -
Disputed statutory demands (Income tax, entry tax, central sales tax and value added tax, service tax, central
excise duty and employees’ profession tax, GST and etc. ) H55579.84 lakhs (H58291.35 lakhs).
(b) Other money for which the company is contingently liable
Other claims - legal cases, etc. H1974.56lakhs (H 14770.12 lakhs).
(ii) Capital Commitment
Estimated amount of contracts remaining to be executed on capital account and not provided for in the books.
Advance for contracts is H 8777.53 lakhs (H 5898.84 lakhs) as at 31.03.2026.
3.16 Land at Bobbili : The land at Bobbili was purchased by MOIL from APIIC for setting up of Ferro/Silico Manganese
plant. A Joint Venture Company was formed with RINL. Techno economic feasibility report (TEFR) was prepared by
MECON in 2009. Based on the viability of project as suggested in the TEFR certain initial formalities such as environmental
clearances, soil testing etc. were carried out and global tenders were floated for supply of main furnace and equipment.
The tenders could not be finalized due to technical reasons and in the interim period the tariff of electricity units was
increased from H 2.50/kwh to H 5.00/kwh by the A.P Electricity Board.
In view of the above, revised TEFR was prepared by MECON in 2013 which indicated that the project was not be viable
in view of the power tariff increase and the reduction in market prices of the Ferro/Silico Manganese. The abnormal
increase in power tariff caused the delay in implementation of the project for such a long time. Management has made
sincere efforts to implement the project. However, the project could not be materialized.
3.16 (Contd..)
MOIL requested APIIC for allotment of land at Appiconda, Vishakhapatnam by swapping arrangement against land
purchased by MOIL at Bobbili. Even after physical meeting with APIIC officials, till date no communication has been
received from APIIC. Hence, financial impact of such swapping is not ascertainable. The management is exploring the
possibility to use the land for alternate purpose depending upon viability. In view of above,? 906.95 lakhs i.e. cost of land
? 898.92 lakhs and wdv of Building ? 8.03 lakhs (? 907.79 lakhs i.e. cost of land ? 898.92 lakhs and wdv of Building ? 8.87
lakhs) has been considered as contingent liability under Note No.3.15(i) (b).
3.17 Bank guarantees are issued to Regional Controller of Mines, Pollution Control Board and others for ? 5563.77 lakhs
( ? 4620.80 lakhs) towards mining plan/ lease and others activities. The bank guarantees are backed by Bank deposits
against which MOIL Ltd. has created charge as per section 77 of Companies Act,2013. Bank deposits of H2000.00 lakhs
(H1800.00 lakhs) has also been earmarked for Mine closure expenditure.
3.18 Letters for balance confirmation of trade receivables and trade payables have been sent to the parties. Out
of total trade receivable outstanding of H14040.50 lakhs as on 31.03.2026, ? 3899.43 lakhs (? 1273.57 lakhs as on
31.03.2025, ? 14555.21 lakhs) have been confirmed. Out of total trade payable of ? 4576.72 lakhs as on 31.03.2026,
? 379.01 lakhs (? 4605.11 lakhs as on 31.03.2025, ? 751.61 lakhs ) have been confirmed. In respect of confirmations
received, the company is in the process of scrutinizing and reconciling the balances.
3.19 Corporate Social Responsibility (CSR)
As per Section 135 of the Companies Act,2013 read with guidelines issued by Department of Public Enterprises, GOI,
the Company is required to spend, in every financial year, at least 2% of the average net profit of the Company made
during the 3 immediate preceding financial years in accordance with its CSR policy. The details of CSR expenses for the
year are as under :
3.20 Revenue is recognized on the basis of energy injected by wind turbine generator of 15.2MW capacity into grid for
sale, at tariff rate agreed in power purchase agreement.
3.21 Power is generated at 4.8MW wind turbine generator units and are captively consumed at mine/plant.
3.22 Power is generated by solar power generating panels at head office, Munsar, Tirodi, Ukwa and Balaghat are used
for captive consumption at HO/mine/plant.
3.23 Non-current liability having defect liability period of more than one year are measured at amortised value and gain/
loss arising is charged to Statement of Profit and Loss ( IND AS 109) amounting to H 229.59 lakhs (H 0.00 lakhs) .
3.25 Consumption of Raw material at Plants
Manganese ore are issue to plants for internal consumption as raw materials. Manganese ore issued to Ferro Manganese
are consumed and closing stock of Manganese ore lying at reporting dates are valued as per internal policy. The manganese
ore issued to Electrolytic Manganese Dioxide (EMD) Plant for conversion into reduced ore which is used in manufacture
of EMD. Reduced ore lying at plant is valued as per internal policy at reporting dates.
3.26 State Trading Enterprise (STE)
MOIL Limited ("MOIL") has been designated by the Government of India as a State Trading Enterprise (STE) / canalising
agency for the export of manganese ore. Under this arrangement, MOIL facilitates export transactions on a back-to-
back basis by entering into corresponding purchase contracts with Indian suppliers and sales contracts with overseas
buyers and retains a margin of approximately 3% of the sale proceeds. The proceeds of the aforesaid transaction are
received in foreign currency and converted in INR on the date of receipt of proceeds. The variation in foreign currency
rate on the date sale and on the date of receipt of sale proceeds is adjusted by providing debit/credit note by the Indian
supplier. The foreign transaction of $ 3471105.88 ($ 0) is made during FY 2025-26 in form of sale proceeds received
from overseas buyers.
3.27 Information about major Customers :The total revenue from operations for the year ending 31st March 2026
(31st March 2025) includes sales from SAIL, which contributes 13% (14%) of the total sales from mining activities
3.29 During FY 2022-23 a case of syphoning of Government fund by an employee was detected through a complaint
received under Public Interest Disclosure & Protection of Informer Resolution (PIDPIR) by Chief Vigilance Officer of
the Company. As per the advice of Ministry in consultation with CVC, the case has been handed over to independent
investigation agency. The amount involved in the case is not significant considering that the value of transactions under
investigation is approx.H.135.00 lakhs.
3.30 Assets held for Sale: Assets classified as held for sale during the reporting period were measured at the residual
value (carrying amount) on the date of such classification. Consequently, no impairment loss was identified on these
assets. There has been no material change in the value of such assets after the date of initial classification as assets
classified as held for sale. These assets are expected to be disposed within the next twelve monthsThe fair value will be
established when the assets are auctioned.
Trade Receivable includes sale of goods, directly receivable, recognised as company has unconditional right to
payment from the moment performance obligation is satisfied.
Contract liabilities includes advance received from customer which will be adjusted towards supply of goods
3.32 (a) Financial Deposits are not discounted due to the uncertainty of their final maturity dates, has been classified
under Note No. 2.7 (b)(iii).
(b) Adjustment of advances to others is pending due to the non receipt of vendor invoices, has been classified
under Note No. 2.17 (c) & (d).
3.36 Information about business segments
Company has identified three business segments, viz., mining, manufacturing and power generation as per
Accounting Standard Ind AS-108 on Segment Reporting
A. Basis for segmentation
An operating segment is a component of the company that engages in business activities from which it may earn
revenues and incur expenses and for which discrete financial information is available. The company has three
reportable segments, as described below.
B. Information about reportable segments
Information regarding the results of each reportable segment is included below. Performance is measured based on
segment profit (before tax), segment revenue and segment capital employed.
C. Description and Type of Products under each segment:
Manganese Ore-Extract and Sale of Manganese Ore (includes revenue from canalizing sale of Manganese ore).
Manufacturing-Manufacture and Sale of Ferro Manganese and Electrolytic Manganese Dioxide.
Wind Power and Solar Power - Generation and sale of Wind Power of 15.2 MW and Captive Consumption of Wind
Power 4.8 MW and generation of Solar Power captively consumed.
Note : In respect of power generated at wind turbine generators and solar power plants, electricity charges of consuming
units are grossed up by the amount of credit given by Madhya Pradesh Electricity Distribution Company Ltd. and
Maharashtra Electricity Distribution Company ltd., in power bills on account of electricity units credited and the same is
recognised as inter-segment revenue of power generating unit so as to arrive at the segment revenue.
# Includes unallocated capital expenditure, corporate assets and corporate liabilities
3.37
(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
(ii) The Company do not have any transactions with companies struck off.
(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period,
(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign
entities (Intermediaries) with the understanding that the Intermediary shall :
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
(vii) The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961.
(viii) The Company doesn’t have any Borrowings during the year and has never been declared wilful defaulter by any bank
or financial Institutions or any other lender.
(ix) The company pays foreign subscription fees, participation fees and other fees to its designated banks in INR, which
inturn remit the vendors in foreign currency.
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