KYC is one time exercise with a SEBI registered intermediary while dealing in securities markets (Broker/ DP/ Mutual Fund etc.).   |   Prevent unauthorized transactions in your account – Update your mobile numbers / email ids with your stock brokers. Receive information of your transactions directly from exchange on your mobile / email at the EOD | Filing Complaint on SCORES - QUICK & EASY a) Register on SCORES b) Mandatory details for filing complaints on SCORE - Name, PAN, Email, Address and Mob. no. c) Benefits - speedy redressal & Effective communication   |   BSE Prices delayed by 5 minutes...<< Prices as on Aug 12, 2022 - 11:55AM >>  ABB India 2799.35  [ 0.03% ]  ACC 2217  [ -0.52% ]  Ambuja Cements Ltd. 379.85  [ -0.12% ]  Asian Paints Ltd. 3400.4  [ -0.13% ]  Axis Bank Ltd. 758.65  [ -0.07% ]  Bajaj Auto 4042.15  [ 0.27% ]  Bank of Baroda 123.7  [ 0.41% ]  Bharti Airtel 708.95  [ -0.08% ]  Bharat Heavy Ele 53.25  [ 0.66% ]  Bharat Petroleum 332.25  [ 1.22% ]  Britannia Ind. 3651  [ 0.29% ]  Cairn India Ltd. 285.4  [ 0.90% ]  Cipla 1032.9  [ -0.53% ]  Coal India 220.4  [ 0.82% ]  Colgate Palm. 1571.5  [ -0.29% ]  Dabur India 583.7  [ 0.28% ]  DLF Ltd. 374.2  [ 0.47% ]  Dr. Reddy's Labs 4278  [ 0.49% ]  GAIL (India) 130  [ 1.01% ]  Grasim Inds. 1606.4  [ 0.41% ]  HCL Technologies 960.4  [ -0.17% ]  HDFC 2464  [ 0.42% ]  HDFC Bank 1485.9  [ -0.06% ]  Hero MotoCorp 2770.65  [ -0.53% ]  Hindustan Unilever L 2597  [ -0.59% ]  Hindalco Indus. 438.9  [ 1.25% ]  ICICI Bank 865.7  [ 0.74% ]  IDFC L 62.45  [ 0.32% ]  Indian Hotels Co 272.55  [ -1.71% ]  IndusInd Bank 1079.5  [ 0.05% ]  Infosys 1597.85  [ -1.35% ]  ITC Ltd. 307.7  [ 0.46% ]  Jindal St & Pwr 407.2  [ 2.30% ]  Kotak Mahindra Bank 1845.95  [ -0.44% ]  L&T 1846.75  [ -1.10% ]  Lupin Ltd. 686.95  [ -0.43% ]  Mahi. & Mahi 1250.4  [ -1.20% ]  Maruti Suzuki India 8705.2  [ -1.28% ]  MTNL 23.8  [ 0.42% ]  Nestle India 19565.95  [ -0.62% ]  NIIT Ltd. 348.6  [ -1.46% ]  NMDC Ltd. 116.5  [ 0.65% ]  NTPC 156.7  [ 2.05% ]  ONGC 138.2  [ 4.14% ]  Punj. NationlBak 33.3  [ -0.30% ]  Power Grid Corpo 226.7  [ 1.75% ]  Reliance Inds. 2628.5  [ 1.48% ]  SBI 529.05  [ 0.86% ]  Vedanta 263.3  [ 2.69% ]  Shipping Corpn. 110.75  [ -1.16% ]  Sun Pharma. 912.1  [ -0.86% ]  Tata Chemicals 1148  [ 6.76% ]  Tata Consumer Produc 764.45  [ -1.14% ]  Tata Motors Ltd. 479.5  [ 0.60% ]  Tata Steel 112  [ 2.66% ]  Tata Power Co. 233.95  [ 1.96% ]  Tata Consultancy 3400.7  [ -0.64% ]  Tech Mahindra 1069.25  [ -0.73% ]  UltraTech Cement 6532  [ -0.96% ]  United Spirits 793.2  [ 1.06% ]  Wipro 437  [ -0.32% ]  Zee Entertainment En 246.5  [ -0.60% ]  

Company Information

Indian Indices

  • Loading....

Global Indices

  • Loading....

Commodity

  • Loading....

Forex

  • Loading....

NMDC LTD.

12 August 2022 | 11:44

Industry >> Mining/Minerals

Select Another Company

ISIN No INE584A01023 BSE Code / NSE Code 526371 / NMDC Book Value (Rs.) 119.38 Face Value 1.00
Bookclosure 18/02/2022 52Week High 175 EPS 32.01 P/E 3.65
Market Cap. 34200.17 Cr. 52Week Low 100 P/BV / Div Yield (%) 0.98 / 12.63 Market Lot 1.00
Security Type Other

NOTES TO ACCOUNTS

You can view the entire text of Notes to accounts of the company for the latest year
Year End :2019-03 

Note. No. 1: Fair Value Measurement

Financial instruments by category

(1) Assets that are not financial assets (such as receivables from statutory authorities, prepaid expenses, advances paid and certain other receivables) as of 31 March 2019, and 1 April 2018, respectively, are not included.

(2) Other liabilities that are not financial liabilities (such as statutory dues payable, advances from customers and certain other accruals) as of 31 March 2019, and 1 April 2018, respectively, are not included.

The carrying amounts of above financial assets and liabilities are considered to be same as their fair values, due to their short-term nature.

Note No: 2. Financial Risk Management

a) 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 Committee, which is responsible for developing and monitoring the Company's risk management policies. The committee reports regularly to the Board of Directors on its activities

The Company's risk management policies are 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 policies 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 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 counter party 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 LC's. The trade receivables in the books are mainly on account of credit sales to M/s RINL Limited, CPSE under the Ministry of Steel and the Sales of Iron Ore in the State of Karantaka which is through Montoring Committee (MC) appointed by Hon'ble Supreme Court of India. "

Expected credit loss for trade receivables under simplified approach is detailed as per the below tables

The impairment provisions for trade receivables disclosed above are based on assumptions about risk of default and expected loss rates.

(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 policy. Investments of surplus funds are made only with scheduled commercial banks having a minimum net worth of Rs, 500 Crore within limits assigned to each bank and Debt based mutual funds of public sector AMCs. The limits are reviewed by the Company's Board of Directors on an annual basis. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter party's potential failure to make payments.

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 expected operational expenses for a period of 60 days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. In addition, the Company has taken fund based limits with banks to meet its short term financial obligations.

i. Financing arrangements

The Company has access to the following undrawn borrowing facilities at the end of reporting period

ii. Maturities of financial liabilities

The table below summarizes 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 optimizing the return.

(i) Foreign currency risk

Since majority of the company's operations are being carried out 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.

The Company's exposure to foreign currencies is minimal and hence no sensitivity analysis is presented.

(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. The company quite often bridges its short term cash flow mismatch by availing working capital loans from banks against its fixed deposits. Such loans have a very short tenure and the interest rate on such loans is based upon the rates offered by banks on fixed deposits , increased by a few basis points. Since the interest rates on fixed deposits are fixed, the company does not have any interest rate risk on such loans availed on a loan to loan basis.

The Company's exposure to interest rate risk is minimal and hence no sensitivity analysis is presented.

Note No. : 3 Capital Management

a) Risk management

The primary objective of the Company's capital management is to maximize 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 includes issued equity capital and all other equity reserves attributable to the equity holders the company has no external borrowings as on 31st March 2019.