NMDC Ltd — Interim / Quarterly Report 2020

Feb 7, 2020

~~it~~~?.$ NMDC Limited

(1ITT'n ~ <Iii \JWJ) (A GOVT. OF INDIA ENTERPRISE)

~ i<i\w:i: ·~ 'lfCR', 10-3-311/'C!, ~ ~, ~ . ~C:'<IC!llC: 500028. Regd. Office: 'Khanij Bhavan' 10-3-311/A, Castle Hills, Masab Tan k, Hyderabad - 500 028. IB ~~I Corporate Identity Number: L 13100TG1958 GOI 001674

No. 18( l )/2020- Sectt 6th February 2020

	1) The BSE LimitedPhiroze Jeejeebhoy Towers,Dalal Street, Mumbai- 400001-	2)	National Stock Exchange of India Ltd.,Exchange Plaza, C-1, Block G,Bondre Kurla Complex,Bandra (E), Mumbai - 400 051
3)	The Calcutta Stock ExchangeLimited, 7, Lyons Range,Kolkata - 700001

Dear Sir I Madam,

• Sub: Outcome of Board Meeting, Unaudited Financial Results and Limited Review Report for the quarter and nine months ended 31 •t December 2019
• Ref: Regulation 30 and 33 of SEBI {Listing Obligations and Disclosure Requirements) Regulations, 2015; NSE Symbol: NMDC; BSE Scrip Code; 526371

The Board of Directors of the Company at their meeting held on Thursday the 6th February 2020, inter-alia, have:

• l . Considered, approved and ta ken on record the Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter and nine months ended 31 st December 2019 along with segment information.
• 1. Declared interim dividend at the rate of Rs. 5.29 ps. (Rupees Five and Twenty Nine poise Only) per equity shore of face value of Re. l /- each for the financial year 2019-2020.

In 'terms of the above at point no. I, the following are enclosed pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requiremen'rs) Regulations, 2015:

• l . Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter and nine months ended 3 l st December 2019 along with segment information.
• 1. Limited Review Reports of the Statutory Auditors on the Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter and nine months ended 3 1st December 201 9. ·

The Boord Meeting commenced at 2.30 p .m. and concluded at 6.30 p.m.

This is for your information and records.

Thanking you

Yours faithfully, o NMDC Limited

~~S-aradhi Company Secretary

Enc l: As above

एनएमडीसी लिमिटेड (भारत सरकार का उद्यम) NMDC Limited (A GOVT. OF INDIA ENTERPRISE)

पंजीकृत कार्यालय: 'खनिज भवन', 10-3-311/ए, .....................................

Regd. Office: 'Khanij Bhavan' 10-3-311/A, Castle Hills, Masab Tank, Hyderabad-500 028.

CIN L13100TG1958 GOI 001674

Statement of Un-Audited Standalone Financial Results for the Quarter and Nine Months ended 31st December 2019

						INR in crore
Particulars	Quarter Ended			Nine Month Ended	Year Ended
	31-Dec-19	30-Sep-19	31-Dec-18	31-Dec-19	31-Dec-18	31-Mar-19
	Un-audited	Un-audited	Un-audited	Un-audited	Un-audited	Audited
I. Revenue from operations	3,006.38	2,241.76	3,649.44	8,511.88	8,509.35	12,152.67
II. Other Income	130.18	127.54	136.13	380.54	392.22	588.30
III. Total income (I+II)	3,136.56	2,369.30	3,785.57	8,892.42	8,901.57	12,740.97
IV. Expenses
(a) Consumption of raw materials	5.88	17.65	17.37	31.48	35.93	52.00
(b) Consumption of stores & spares	67.03	52.09	67.93	169.73	171.73	264.97
(c) Changes in inventories of finished goods and work -in-
progress	(50.77)	49.96	(116.58)	(12.88)	(53.46)	(79.22)
(d) Employee benefit expense	258.73	245.10	248.30	756.96	754.76	1,036.75
(e) Royalty and other levies	579.72	350.79		1,512.21
(f) Selling exps incl. freight	194.19	114.96	720.10		1,501.65235.31	2,003.59
(g) Depreciation and amortisation		97.56	169.66	499.25		368.18
(h) Finance cost	64.58		69.40	226.91	198.50	278.89
(i) Other expenses	9.76	9.72	9.62	31.21	30.08	40.32
Total expenses	360.18	351.02	388.30	1,036.68	1,025.76	1,576.43
	1,489.30	1,288.85	1,574.10	4,251.55	3,900.26	5,541.91
V. Profit from ordinary activities before exceptional items and	1,647.26	1,080.45	2,211.47	4,640.87	5,001.31	7,199.06
Tax $(III - IV)$
VI. Exceptional items - Expenses/(Income)
VII. Profit before tax (V-VI)	1,647.26	1,080.45	2,211.47	4,640.87	5,001.31	7,199.06
VIII. Tax expense
a) Current Tax	120.26	409.97	822.34	1,219.54	2,022.22	2,752.70
b) Earlier Year Tax (Net)						0.85
c) Deferred Tax	150.43	(32.90)	(187.64)	161.96	(209.50)	(197.02)
Total tax exponse	270.69	377.07	634.70	1,381.50	1,812.72	2,556.53
IX. Net Profit for the period from continuing operations
$(VII-VIII)$	1,376.57	703.38	1,576.77	3,259.37	3,188.59	4,642.53
X. Loss from discontinued operations	(0.23)	(0.17)	(0.10)	(0.62)	(0.38)	(0.64)
XI. Tax Expenses of discontinued operations	(0.02)	(0.06)	(0.03)	(0.16)	(0.13)	(0.22)
XII. Loss from Discontinued operations (after tax)	(0.21)	(0.11)	(0.07)	(0.46)	(0.25)	(0.42)
XIII. Profit for the period (IX+XII) :	1,376.36	703.27	1,576.70	3,258.91	3,188.34	4,642.11
XIV. Other Comprehensive income/(expenses):
Item that will not be reclassified to profit or loss	0.64	0.45	12.01	1.53	36.04	(0.13)
(net of income tax)
XV. Total Comprehensive Income for the period (XIII+XIV)	1,377.00	703.72	1,588.71	3,260.44	3,224.38	4,641.98
XVI. Paid up Equity Share Capital	306.19	306.19	316.39	306.19	316.39	306.19
XVII. Face value per share (Re)	1		1
XVIII. EPS for the period (Rs.) basic and diluted before and				$\mathbf{1}$
after extraordinary items (*)	4.50	2.30	4.98	10.64	10.08	14.70
(*adjusted on account of buyback)
						$(\dot{z})$
			Not Annualised			Annualised

$Cont....2$

एनएमडीसी लिमिटेड NMDC Limited

Segment wise Standalone Revenue, Results and Capital Employed for the Quarter and Nine Months ended 31st December, 2019

						INR in crore
	Quarter Ended	Year Ended
Particulars	31-Dec-19	30-Sep-19	31-Dec-18	31-Dec-19	31-Dec-18	31-Mar-19
	Un-audited	Un-audited	Un-audited	Un-audited	Un-audited	Audited
1. Segment Revenue
(Sale /income from each segment)
a) Iron Ore	2,991.64	2,198.42	3,618.06	8,402.20	8,412.93	12,001.81
b) Pellet , Other Minerals & Services	14.74	43.34	31.38	109.57	96.42	154.69
Total	3,006.38	2,241.76	3,649.44	8,511.77	8,509.35	12,156.50
Less: Inter segment revenue				(0.11)		3.83
Sales / Income from Operations	3,006.38	2,241.76	3,649.44	8,511.88	8,509.35	12,152.67
2. Segment Results
(profit $(+)$ / loss $(-)$ before tax
and interest from each segment)
a) Iron Ore	1,594.01	1,035.68	2,207.85	4,535.32	4,975.05	7,156.93
b) Pellet, Other Minerals & Services	28.59	8.89	(77.80)	9.65	(96.02)	(129.60)
Total	1,622.60	1,044.57	2,130.05	4,544.97	4,879.03	7,027.33
Less: Finance Cost	9.76	9.72	9.62	31.21	30.08	40.32
Add: Other unallocable income net off	34.19	45.43	90.94	126.49	151.98	211.41
unallocable expenditure
Total Profit Before Tax	1,647.03	1,080.28	2,211.37	4,640.25	5,000.93	7,198.42
(incl discontinued operations)
3. Segment Assets
a) Iron Ore	6,291.85	5,623.96	5,558.58	6,291.85	5,558.58	4,904.88663.88
b) Pellet , Other Minerals & Services	626.13	632.29	657.15	626.13	657.15	23,630.49
c) Unallocated	24,771.87	23,815.45	23,977.06	24,771.87	23,977.0630,192.79	29,199.25
Total	31,689.85	30,071.70	30,192.79	31,689.85
4. Segment Liabilities
	1,427.46	1,353.44	1,802.29	1,427.46	1,802.29	1,421.66
a) Iron Oreb) Pellet, Other Minerals & Services	30.26	31.38	41.24	30.26	41.24	38.77
	1,440.93	1,423.12	1,366.26	1,440.93	1,366.26	2,370.02
c) UnallocatedTotal	2,898.65	2,807.94	3,209.79	2,898.65	3,209.79	3,830.45
5. Capital Employed
(Segment Assets-Segment Liabilities)
a) Iron Ore	4,864.39	4,270.52	3,756.29	4,864.39	3,756.29	3,483.22
b) Pellet, Other Minerals & Services	595.87	600.91	615.91	595.87	615.91	625.11
c) Unallocated	23,330.94	22,392.33	22,610.80	23,330.94	22,610.80	21,260.47
$\frac{1}{2}$	28,791.20	27,263.76	26,983.00	28,791.20	26,983.00	25,368.80

$Cont...3$

• 1. The Audit Committee has reviewed the above results and the same have been subsequently approved by the Board of Directors in the meeting held on 6th February 2020.
• 1. The unaudited financial results are reviewed by the Statutory Auditors as required under Regulation 33of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• 1. An amount of Rs. 154.00 crore is provided towards Expected Credit Loss (ECL) during the nine months period and included in other expenses.
• 1. The Company had received Show Cause Notices dated 31 .07.2018 from Dist. Collector, South Bastar Dantewada as to why NMDC should not be asked to deposit an amount of Rs.7,241.35 crore as compensation as calculated by Collector based on the Hon'ble Supreme Court Common Cause Judgement related to Orissa Iron ore mines ( Writ Petition Civil No 11 4of 2014 dated 2nd August 2017). The Company had been contesting the Show Cause Notices with Dist. Collector, South Bastar Dantewada on the ground that the said Honb'le Supreme Court judgement is not applicable to NMDC.

Meanwhile, revised show cause notices dated 26.09.2019 were received for a revised amount of Rs 1,623.44 Crore from Dist. Collector, South Bastar, Dantewada, to be replied within 21 days of notice. NMDC while reiterating the fact of non-applicability of the Honb'le Supreme Court Judgement in the state of Chhattisgarh, has sought time for replying to the show cause notices.

Further to above, Dist. Collector, South Bastar, Dantewada had issued Demand notices dated 15/11/2019 for the amount of Rs 1 ,623.44 Crore (Bacheli- Rs 1, 131.97 Cr & Kirandul Rs 491.47 Cr) asking to deposit the amount within 15 days. As the Mining Leases of the company in the State of Chhattisgarh are expiring on 31 .3.2020 and due for renewal, the Company has paid an adhoc amount of Rs 600 Crore under protest and filed writ petitions in the Hon'ble High Court of Bilaspur, Chhattisgarh and a Revision application with Mines Tribunal, Ministry of mines, Government of India, New Delhi praying to set aside the demand notices.

1. The Government of Karnataka, while renewing the lease of NMDC's Donimalai Iron O_re Mine, has imposed a new condition asking for a premium of 80% on the average sale value. As the demand of the State Govt. is not as per the provisions of the MMDR Act 2015 and Mineral (Mining by Government Company) Rules, 20 15, the company requested the Govt. to reconsider its decision. Since there was no positive response from the State Govt., the company has suspended its operations from 4th November 2018 and moved the Hon'ble High Court of Karnataka praying for a suitable direction in the matter. The Hon'ble High Court of Karnataka in its judgement dated 10th July 2019has passed an order setting aside the condition imposed for levying 80% premium. On the basis of the judgement, NMDC has requested the State Govt. to consider the execution of Lease Deed of Donimalai Mine.

The Government of Karnataka issued an Order dated 17.08.2019 withdrawing the approval for extension of the Donimalai mining lease and with a direction to the Director of DMG to auction the said block. In this regard, the Company on 19.8.2019 filed 'Revision application' before The Hon'ble Mines Tribunal, Government of India. Meanwhile, the State Government issued a notification dated 20.08.2019 inviting tender for auction of the Donimalai Mining block.

l{"1l{'1il~ ~~'ti NMDC Limited Contn. Sheet

0n 21 .08.2019 Hon'ble Mines Tribunal heard the submissions and stayed the Order dated 17.08.2019 issued by the Government of Karnataka withdrawing the extension of lease and any consequent action thereon until the next date of hearing. The matter is pending with Hon'ble Mines Tribunal.

Meanwhile, Ministry of Mines has amended the 'Mineral (Mining by Government Company) Rules, 2015 with regard to renewal of mining leases allocated to Government Companies. Earlier the rule 3 (2) stated that if an application for renewal of mining leases is made to the State Government by a Government company, the State Government "may, for reasons to be recorded in writing, extend the period of the mining lease for further periods of up to twenty years at a time". Now the rule is amended by substituting the word "may" with "shall". Now the rule reads as "shall for reasons to be recorded in writing, extend the period of mining lease for further periods of up to twenty years at a time".

Even though the company is regularly corresponding with the State Government for extending the lease, response of the State Government is still awaited.

• 1. The company has adopted Ind AS 116 "Leases" Effective from 1st April 2019 and applied the Standard to its leases using the modified retrospective approach and comparative information is not restated. This has resulted in recognising a Right-of-Use Assets and a corresponding Lease Liability of Rs .8.20 crore as at 1st April 2019. The impact on the profit for the period is not material.
• 1. The company elected to opt for the reduced tax rate@ 25.17% (i.e. 22%+10% Surcharge+4% HEC) under section 115BAA of Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly the company has recognised provision for Income Tax and remeasured Deferred Tax Assets. The impact of this change has been recognised in the statement of Profit & Loss for the quarter ended 31 51December 2019.
• 1. The Board of Directors has approved the first Interim Dividend of Rs .. b i 9. . per equity share of Re 1/-, for the financial year 2019-20.
• 1. Figures for the previous period have been regrouped wherever considered necessary so as to conform to the classification of the current period.

Place : Hyderabad Date : 61h February 2020 For NMDC Limited,

(Amitava Mukherjee) Director (Finance) DIN- No: 08265207

Our website : www.nmdc.co.in

H.O.: H. No. 6-3-244/5, Sarada Devi Street, Prem Nagar, Hyderabad - 500 004. Phone: 040 - 2330 3371 , 2339 55 88 Fax : 040 - 23 3 9 0 I 51 E-mail : sagarandassociates@yahoo.co.in E-mail : sagarandassociates.ca@gmail.com GST No: TS · 36AAJFS7295N 1 ZS AP -37AAJFS7295N2Z5

Independent Auditor's Limited Review Report on Una udited St· • Financial Results of NMDC LIMITED for the quarter a. nd nine t ended 31st December, 2019 pursuant to the Regulat ion 3.3 (Listing Obligations and Disclosure Requirements) Rcgul ilt.io.n~

To The Board of Directors NMDC LIMITED

We havereviewed the accompanying statement of unaudited standalone financial results of NMDC LIMITED ("the Company") for the quarter and nine months ended 3 1st December, 20 J 9 , ("the Statement"), being submitted by the Company pursuant to the requirem ent of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Circular No. CIR/CFD/CMD1144/2019 dated March 29, 2019. This Statement includes theresults of the six (6) branches of the Company, which have been subjected to a limited review by the branch auditor of the Company. The branch auditor's reports were forwarded to us and the same has been dealt with in preparing thisreport, in the m anner considered necessary by us.

This Statement, which is the responsibility of the Company's Managem ent and approved by the Board of Directors, have been prepared in accordance with the recognition and m easurement principles laid down in Indian Accounting Standard 34 "Interim Financia l Reporting" prescribed under section 133 of the Companies Act, 2013, as amended read with the relevant rules issued there under and other accounting principles genera lly accepted in India . Our responsibility is to express a conclusion on the Statement based on our review.

We conducted our review of th eStatement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India . This Standard requires that we plan and perform the review to obtain moderate assura nce as to wh eth er the Statement is free of material misstatement. A review is limited primarily to inquiries of company personnel and analytical procedures applied to financial data and thus provides less assuran ce than a n audit. We have not performed a naudit and accordingly, we do not express an audit opinion.

B.O.: Flat No. FF-3, H.No. 40-6-2, Goteti Apartment, Kandari Hotel Street, Krishna Nagar, B.O.: H.No. I 0- 1-86, Mehar Nagar, Old Gajuwaka, Visakhapatnam - 530 026. B.O.: No. 4, Poes Road, 4th Street, Teynampet, Chennai - 600018. B.0.: Flat No. 3C, Jeevan Residency, Behind Kalanjali, Renigunta Road, Tirupati - 517 SO I. Based on our review conducted as stated above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the aforesaid Indian Accounting Standards and other recognised accounting practices and policies, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement.

For Sagar and Associates Chartered Accountants FRN: 003510S

B Srinivasa Rao Partner M.No. 202352 UDIN: 2020 2352/14 AABI 55/0

SSO

Hyderabac

Place: Hyderabad Date: 6th February, 2020 एनएमडीसी लिमिटेड (भारत सरकार का उद्यम) NMDC Limited (A GOVT. OF INDIA ENTERPRISE)

पंजीकृत कार्यालय: 'खनिज भवन', 10-3-311/ए, कैसल हिल्स, मासाब टैंक, हैदराबाद - 500 028.

Regd. Office: 'Khanij Bhavan' 10-3-311/A, Castle Hills, Masab Tank, Hyderabad-500 028.

CIN: L13100TG1958 GOI 001674 Statement of Un-Audited Consolidated Financial Results for the Quarter and Nine months ended 31st December 2019 IND in crore

				Nine Months Ended	111111111111111111111111111111111111	Year Ended
Particulars	31-Dec-19	Quarter Ended30-Sep-19	31-Dec-18	31-Dec-19	31-Dec-18	31-Mar-19
	Un-audited	Un-audited	Un-audited	Un-audited	Un-audited	Audited
	3,006.38	2,241.76	3,649.44	8,511.88	8,509.35	12,152.67
I. Revenue from operations	130.21	127.63	136.29	.380.75	392.76	588.96
II. Other Income		2,369.39	3,785.73	8,892.63	8,902.11	12,741.63
III. Total income (I+II)	3,136.59
IV. Expenses			17.37	31.48	35.93	52.00
(a) Consumption of raw materials	5.88	17.6552.09	67.93	169.73	171.73	264.97
(b) Consumption of stores & spares	67.03
(c) Changes in inventories of finished goods and work -in-	(50.77)	49.96	(116.58)	(12.88)	(53.46)	(79.22)
progress			248.86	758.80	756.50	1,039.40
(d) Employee benefit expense	259.32	245.73			1,501.80	2,003.78
(e) Royalty and other levies	579.62	350.84	720.15	1,512.21	235.31	368.18
(f) Selling exps incl. freight	194.19	114.96	169.66	499.25	198.52	279.04
(g) Depreciation and amortisation	64.69	97.68	69.40	227.25
(h) Finance cost	9.76	9.72	9.62	31.21	30.08	40.32
(i) Other expenses	361.00	352.04	388.73	1,039.10	1,027.47	1,579.14
Total expenses	1,490.72	1,290.67	1,575.14	4,256.15	3,903.88	5,547.61
V. Profit from ordinary activities before exceptional items	1,645.87	1,078.72	2,210.59	4,636.48	4.998.23	7,194.02
and Tax (III-IV)
VI. Exceptional items - Expenses/(Income)
VII. Profit before tax (V-VI)	1,645.87	1,078.72	2,210.59	4,636.48	4,998.23	7,194.02
VIII. Tax expense
a) Current Tax	120.26	409.97	822.34	1,219.54	2,022.22	2,752.70
b) Farlier Year Tax (Net)						0.85
c) Deferred Tax	150.43	(32.90)	(187.64)	161.96	(209.50)	(197.02)
Total tax expense	270.69	377.07	634.70	1,381.50	1,812.72	2,556.53
IX. Profit for the period from continuing operations (VII-	1,375.18	701.65	1,575.89	3,254.98	3,185.51	4,637.49
VIII
X. Loss from discontinued operations .	(0.23)	(0.17)	(0.10)	(0.62)	(0.38)	(0.64)
XI. Tax Expenses of discontinued operations	(0.02)	(0.06)	(0.03)	(0.16)	(0.13)	(0.22)
XII. Loss from Discontinued operations (after tax)	(0.21)	(0.11)	(0.07)	(0.46)	(0.25)	(0.42)
XIII. Profit for the period (IX+XII) :	1,374.97	701.54	1,575.82	3,254.52	3,185.26	4,637.07
XIV Share of Loss of Associates/JVs	19.18	(9.91)	(6.23)	2.62	(15.90)	(19.12)
XV Non-Controlling Interest (Profit)/Loss	(0.25)	(0.31)	(0.18)	(0.76)	(0.63)	(0.89)
XVI. Net Profit/loss after taxes, Non-Controlling Interest
and share of profit /loss of Associates (XIII+XIV-XV):	1,394.40	691.94	1,569.77	3,257.90	3,169.99	4,618.84
XVII. Other Comprehensive income/(expenses)	(2.99)	11.18	25.15	21.77	75.46	52.44
(net of income tax)
XVIII. Total Comprehensive Income for the period	1,391.41	703.12	1,594.92	3,279.67	3,245.45	4,671.28
$(XVI+XVII)$
XIX. Paid-up Equity Share Capital	306.19	306.19	316.39	306.19	316.19	306.19
XX. Face value per share (Re)	1.00	1.00	1.00	1.00	1.00	1.00
XXI. EPS for the period (Rs.)-basic and diluted	4.55	2.26	4.96	10.64	10.03	14.69
& AS Red on account of buyback)						$(\star)$
$\bm{o}$			Not Annualised			Annualised

Cont... 2

दूरभाष / PHONES : 23538713-21 (9 Lines), 23538723, 23538767 फैक्स / Fax : +91-40-23538711,ई-मेल / E-mail : hois@nmdc.co.in वेबसाइट / Website : www.nmdc.co.in

एनएमडीसी लिमिटेड NMDC Limited

Segment wise Consolidated Revenue, Results and Capital Employed for the Quarter and Nine months ended 31st December 2019

INR in crore
		Quarter Ended		Nine Months Ended	Year Ended
Particulars	31-Dec-19	30-Sep-19	31-Dec-18	31-Dec-19	31-Dec-18	31-Mar-19
	Un-audited	Un-audited	Un-audited	Un-audited	Un-audited	Audited
1. Segment Revenue
(Sale /income from each segment)
a) Iron Ore	2,991.64	2,198.42	3,618.06	8,402.20	8,412.93	12,001.81
b) Other Minerals & Services	14.74	43.34	31.38	109.57	96.42	154.69
Total	3,006.38	2,241.76	3,649.44	8,511.77	8,509.35	12,156.50
Less: Inter segment revenue				(0.11)		3.83
Sales / Income from Operations	3,006.38	2,241.76	3,649.44	8,511.88	8,509.35	12,152.67
2. Segment Results
(profit (+) / loss (-) before tax
and interest from each segment)
a) Iron Ore	1,592.81	1,034.25	2,207.03	4,531.75	4,972.12	7,152.78
b) Other Minerals & Services	28.50	8.70	(77.85)	9.15	(96.16)	(130.34)
Total	1,621.31	1,042.95	2,129.18	4,540.90	4,875.96	7,022.44
Less: Finance Cost	9.76	9.72	9.62	31.21	30.08	40.32
Add: Other unallocable income net off	34.09	45.32	90.93	126.17	151.97	211.26
unallocable expenditure
Total Profit Before Tax(incl discontinued operations)	1,645.64	1,078.55	2,210.49	4,635.86	4,997.85	7,193.38
3. Segment Assets
a) Iron Ore	6,278.65	5,611.79	4,280.12	6,278.66	4,280.12	4,895.79
b) Other Minerals & Services	615.06	622.92	656.91	615.06	656.91	651.38
c) Unallocated	24,925.24	23,953.38	23,772.81	24,925.24	23,772.81	23,761.33
Total	31,818.95	30,188.09	28,709.84	31,818.96	28,709.84	29,308.50
4. Segment Liabilities
a) Iron Ore	1,428.83	1,354.72	1,655.13	1,428.83	1,655.13	1,422.41
b) Other Minerals & Services	34.32	37.04	46.56	34.32	46.56	40.89
c) Unallocated	1,440.93	1,423.13	1,333.70	1,440.93	1,333.70	2,370.04
Total	2,904.08	2,814.89	3,035.39	2,904.08	3,035.39	3,833.34
5. Capital Employed
(Segment assets-Segment Liabilities)
a) Iron Ore	4,849.82	4,257.07	2,624.99	4,849.83	2,624.99	3,473.38
b) Other Minerals & Services	580.74	585.88	610.35	580.74	610.35	610.49
c) Unallocated	23,484.31	22,530.25	22,439.11	23,484.31	22,439.11	21,391.29
Total	28,914.87	27,373.20	25,674.45	28,914.88	25,674.45	25,475.16

Cont...3

• 1. The Audit Committee has reviewed the above results and the same have been subsequently approved by the Board of Directors in the meeting held on 6th February 2020.
• 1. Pursuant to the requirements of SEBI (LODR) Regulations, 2015 (as amended), the company has published Consolidated Results for quarter ended 31st December 2019 along with the preceding quarter ended 30th September 2019 and corresponding quarter ended 31st December 2018. The management has used prudent estimate and exercised necessary due-diligence to ensure that the financial results provide a true and fair view of its affairs.
• 1. The unaudited financial results have been reviewed by the Statutory Auditors as required under Regulation 33 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• 1. The financial results have been prepared in accordance with the recognition and measurement principles of Ind-AS, prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules issued there under and the other accounting principles generally accepted in India.
• 1. An amount of Rs. 154.00 crore is provided towards Expected Credit Loss (ECL) during the nine months period and included in other expenses.
• 1. The Company had received Show Cause Notices dated 31.07.2018 from Dist. Collector, South Bastar Dantewada as to why NMDC should not be asked to deposit an amount of Rs.7,241.35 crore as compensation as calculated by Collector based on the Hon'ble Supreme Court Common Cause Judgement related to Orissa Iron ore mines (Writ Petition Civil No 114 of 2014 dated 2nd August 2017). The Company had been contesting the Show Cause Notices with Dist. Collector, South Bastar Dantewada on the ground that the said Honb'le Supreme Court judgement is not applicable to NMDC.

Meanwhile, revised show cause notices dated 26.09.2019 were received for a revised amount of Rs 1,623.44 Crore from Dist. Collector, South Bastar, Dantewada, to be replied within 21 days of notice. NMDC while reiterating the fact of non-applicability of the Honb'le Supreme Court Judgement in the state of Chhattisgarh, has sought time for replying to the show cause notices.

Further to above, Dist. Collector, South Bastar, Dantewada had issued Demand notices dated 15/11 /2019 for the amount of Rs 1,623.44 Crore (Bacheli- Rs 1, 131.97 Cr & Kirandul Rs 491.47 Cr) asking to deposit the amount within 15 days. As the Mining Leases of the company in the State of Chhattisgarh are expiring on 31.3.2020 and due for renewal, the Company has paid an adhoc amount of Rs 600 Crore under protest and filed writ petitions in the Hon'ble High Court of Bilaspur, Chhattisgarh and a Revision application with Mines Tribunal, Ministry of mines, Government of India, New Delhi praying to set aside the demand notices.

1. The Government of Karnataka, while renewing the lease of NMDC's Donimalai Iron Ore Mine, has imposed a new condition asking for a premium of 80% on the average sale value. As the demand of the State Govt. is not as per the provisions of the MMDR Act 2015 and Mineral (Mining by Government Company) Rules, 2015, the company requested the Govt. to reconsider its decision. Since there was no positive response from the State Govt., the company has suspended its operations from 4th November 2018 and moved the Hon'ble High Court of Karnataka praying for a suitable direction in the matter. The Hon'ble High Court of Karnataka in its judgement dated 10th July ~~~ 019has passed the order setting aside the condition imposed for

l{"1({+1it«l ftt~?;g t. "Gftft ~ NMDC Limited --4 - Contn. Sheet

levying 80% premium. On the basis of g ment, NMDC has requested the State Govt. to consider the execution of Lease Deed of Donimalai Mine.

The Government of Karnataka issued an Order dated 17 .08.2019 withdrawing the approval for extension of the Donimalai mining lease and with a direction to the Director of DMG to auction the said block. In this regard, the Company on 19.8.2019 filed 'Revision application' before The Hon'ble Mines Tribunal, Government of India. Meanwhile, the State Government issued a notification dated 20.08.2019 inviting tender for auction of the Donimalai Mining block.

On 21.08.2019 Hon'ble Mines Tribunal heard the submissions and stayed the Order dated 17.08.2019 issued by Government of Karnataka withdrawing the extension of lease and any consequent action thereon until the next date of hearing. The matter is pending with Hon'ble Mines Tribunal.

Meanwhile, Ministry of Mines has amended the 'Mineral (Mining by Government Company) Rules, 2015 with regard to renewal of mining leases allocated to Government Companies. Earlier the rule 3(2) stated that if an application for renewal of mining leases is made to the State Government by a Government company, the State Government "may, for reasons to be recorded in writing, extend the period of the mining lease for further periods of up to twenty years at a time". Now the rule is amended by substituting the word "may" with "shall". Now the rule reads as "shall for reasons to be recorded in writing, extend the period of mining lease for further periods of up to twenty years at a time".

Even through the company is regularly corresponding with the State Government for extending the lease, response of the State Government is still awaited.

• 1. The company has adopted Ind AS 116 "Leases" Effective from 1st April 2019 and applied the Standard to its leases using the modified retrospective approach and comparative information is not restated. This has resulted in recognising a Rig ht-of-Use Assets and a corresponding Lease Liability of Rs.8. 20 crore as at 1st April 2019. The impact on the profit for the period is not material.
• 1. Figures for the previous period have been regrouped wherever considered necessary so as to conform to the classification of the current period .

For M/s Sagar and Associate Chartered Accountants F~ No. 003510S ( ~~m7"1C:-::;-p-;5A1 --,,,,l~ Partner

Membership No: 202352 vn \t--l , co d-.'e> s~ 'A;-A AA Qi k 9&~ Place : Hyderabad Date : 6th February 2020

Our website : www.nmdc.co.in

For NMDC Limited,

(Amitava Mukherjee) Director (Finance) DIN-No: 08265207

Independent Auditor's Review Report on Consolidated Unaud' · Financial Results of NMDC LIMITED for the quarter and nine mo ended 31st December, 2019 pursuant to the Regulation 33 of the fi. (Listing Obligations and Disclosure Requirements) Regulations, 20 1

To The Board of Directors NMDC LIMITED

• 1. We have reviewed the accompanying Statement of Consolidated Unaudited Financial Results of NMDC LIMITED ("the Parer:it") and its subsidiaries (the Parent and its subsidiaries together referred to as "the Group" ), and its share of the net profit after tax and total comprehensive income of its associates and joint ventures for the quarter and nine months ended December,2019 ("the Statement"), being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended read with Circular No. CIR/CFD/CMD1144/2019 dated March 29, 2019. Attention is drawn to the fact that the consolidated figures for the corresponding quarter and nine months ended 3 1st December, 2018, as reported in the Statement, have been approved by the Parent's Board of Directors, bu t h ave not been su bj ected to review.
• 1. This Statement, which is the responsibility of the Parent's Management and approved by the Parent's Board of Directors have been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34") prescribed under Section 133 of the Companies Act, 2013, as amen ded read with the relevant rules issued there under and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issu ed by the Institute of Chartered Accountants of India . A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying a n a lytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of a ll significant matters that might be identified in an audit. Accor dingly, we do not express an audit opinion.

We a lso performed procedures in accordan ce with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 20 15, as a mended , to the ext :::::AS::::;S~o.!oo.. a pplicable. ~~~ ~

4 . The Statement includes the results of the following entities: Subsidiaries:

SI.No	NameoftheEntities
1.	Legacy Iron Ore Limited, Australia
2.	J & K Mineral DevelopmentCorporation Limited, India
3.	NMDC Power Limited, India
4.	Karnataka Vijaynagar SteelLimited, India
5.	NMDC Steel Limited. India
6.	Jharkhand KolhanSteel Limited, India
7.	NMDC SARL, Madagaskar (underCloser), Africa
8.	NMDCCSR Foundation,(NCF)(Not-for-profitIndiacompany,
	incorporated undersection-8of companies Act,2013)Not-
	considered for consolidation.

Joint Ventures:

SI.No	NameoftheEntities
1.	NMDC-CMDC Limited, India
2.	Jharkh a n dNational Mineral DevelopmentCorporation Limited,
	India
3.	Kopano- NMDC Minerals (Proprietary)Limited. South Africa
4 .	NMDC SAIL Limited, India
5.	Bastar Railway Pvt. Limited,India

Associates

SI.No	NameofEntitiesthe
1.	International Coal VentureLimited, India
2.	Nilachal lspat NigamLimited, India
3.	Krishnapatnam Railway CompanyLimited, India
4 .	Chhattisgarh MegaSteel Limited, India
5 .	Romelt-Sail (India) Limited- Under closure, Africa

5 . Based on our review conducted and procedures performed as stated in paragraph 3 above and based on the con sideration of the review reports of the branch auditors and other auditors referred to in paragraph 6 below, nothing has come to our a ttention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 20 15, as amended, including the m anner in which it is to be disclosed, or that it contains any material misstatement.

SAGAR & ASSOCIATES

Chartered Accountants CONTINUATION SHEET

1. We did not review the interim financial statements / fina ncia l informa tion/ financial results of six (6) branches included in the standalone unaudited interim financial statements/ financial information/ financia l results of the entities included in the Group, whose results reflect total revenues of Rs. 8507 .52 crores, total net profit / (loss) after tax of Rs. 4362.57 crores and total comprehensive income of Rs. 4362.57 crores for the period ended 31 si December, 2019, as considered in the standalone unaudited interim financial statements/ financial information/ financial results of the entities included in the Group. The interim financial statements/ financial information/ financial results of these branch es have been reviewed by the branch auditors and other auditors whose reports have been furnished to us or oth er auditors, and our conclusion in so far as it relates to the amounts and disclosures included in respect of these branches and joint operations, is based solely on the report of such branch auditors and other auditors and the procedures performed by us as stated in pa ragraph 3 above.

The consolidated unaudited financial results includes the interim financia l statements/ finan cial information/ financial results of seven (7) subsidia ries which have n ot been reviewed/ audited by their auditors, whose interim fina ncia l statements/ financial information/ financia l results reflect total revenue of Rs. 0.00 crores, total n et (loss) a fter tax of Rs (4.38) crores and tota l comprehensive loss of Rs. (4.38) crores for th e period ended 31st December ,2019, as considered in th econsolidated unaudited financial results. The consolidated unaudited financial results also includes the Group's share of net profit after tax of Rs 2.62 crores and total comprehensive income of Rs 20.24 crores for the period ended 31 st December,2 019 , as considered in the consolidated unaudited financia l results, in respect of five (5) associates and five (5) joint ventures, based on their interim financia l statements/ finan cia l information / fin ancial results which have not been reviewed / audited by their auditors. According to the information and explanations given to us by the Management, these interim financia l statements / fina ncial information / financial results are not material to the Group.

Our conclusion on the Sta temen tis not modified in respect of th e above matter.

B Srinivasa Rao Partner M.No. 202352 uD IN: 2..02{) ~~ ~~ A A A" Bk 3:L =u,

Place: Hyderabad Date: 6th February, 2020