MEMORANDUM OF UNDERSTANDING

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1 MEMORANDUM OF UNDERSTANDING BETWEEN HINDUSTAN COPPER LIMITED AND MINISTRY OF MINES FOR Page 1 of 11

(Please tick) rlalblcldlnone 5 Purpose for which CPSE has been setup and the main business now Mining, beneficiation, Smelting/refining to manufacture Copper & other by products.

2 Annex -l Brief about the CPSE 1. Name of the CPSE HINDUSTAN COPPER LIMITED 2. Status (Please tick): As per DPE guidelines Sick/l nci pient Sick/wea k/nonev 3 Reasons for Sickness, if applicable NA 4 Whether registered with BIFR, if yes, details NA 5 Schedule of the CPSE (Please tick) rlalblcldlnone 5 Purpose for which CPSE has been setup and the main business now Mining, beneficiation, Smelting/refining to manufacture Copper & other by products. Main business is sale of copper and other bv products. 7 Number and name of subsidiary companies along with amount invested and share in its profit during last five years NA Year Name of Subsidiary Amount invested (Rs.) Share in its profit (Rs.) 20L L t3-t ts Number and Name of Joint Venture companies along with amount invested and share in its profit during last five years Year Name of Joint Venture Amount invested (Rs.) Share in its profit (Rs.l 20tL-L t3 20t3-t4 201,4-L Details of of revival plan approved year NA NA Page 2 of 11

Income, Extraordinary and Exceptional items): Unit Rs Crore Mark 20L6- Best in Target for the vear % s t7 5 years Excelle v.

3 Annex- ll Mandatory Parameters PART A sl No. I ll Financial Performance Criteria Turnover Revenue from operations (Net of Excise Duty & Discount) Operating Profit/loss CPSEs with operating profit (Profit/Surplus before Tax excluding other Income, Extraordinary and Exceptional items): Unit Rs Crore Mark 20L6- Best in Target for the vear % s t7 5 years Excelle v.g Good Fair Poor lmpro (Estim nt vemen ated) too% 80% 60% 40% 20% t* r Operating profit/surplus as a percentage of Revenue from operations (Net) % 20 (-) 2.1s ill Return on Investment Profit earning CPSEs with no accumulated losses. PAT or % s.00 4.t Surplus/Average Net Worth Total 50 o /6 improvement is worked out for 20t6-t7 (Estimated) over Very Good target. Page 3 of 11

G Good Fair Poor t00% 80% 60% 4OYo 20% lmprov ement MT 10 34966 34965 396s0 377s0 36075 35650 34725 7.96 tl CAPEX Rs.

4 Other Parameters (Part-B) SI No. Performance criteria Unit Mar Capacity Utilisation Production of MIC & GCP Cathode from purchased copper/blister ks 2076-L7 (Estimat ed) Best in 5 years Target for the vear % Excellent V.G Good Fair Poor t00% 80% 60% 4OYo 20% lmprov ement MT s0 377s tl CAPEX Rs. I IV Percentage of value of CAPEX contracts/projects running/completed during the year without time/cost overrun to total value of CAPEX contracts running/completed during the year (Annexure "A") Inventory of finished goods and work in progress to Revenue from operations (Net) Crore Yo Days 5 24L 64 L32 L40 L t.9t Trade receivables (Net) as number of days of revenue from Operations (gross) Days L VI vi Reduction in claims against the company not acknowledged as debt on overall basis a) lmprovement in cubic meter of ore production for at Khetri mine (stoping) per Kg of explosive consumption over prevrous year. o/o 5 Lt.49 L8.t r.67 (Rs cr. ) r target setting: % 5 (-)6.10 (0.77 Cu.m/ Ke) t Page 4 of 11

writing of ACR/APAR %of number of executives 2 100 95 90 85 80 2 Online quarterly vigilance clearance updation for Senior Executives (AGM and above) 3 Preparation of succession plan and its approval

5 vii HRM Related Parameters: Sl.No. Pa rtic u la rs Unit Marks Traget Excellent Very Good Fair Poor Good L On-line submission of ACR/APAR in respect of all executives (E0 and above) along with compliance of prescribed timelines w.r.t writing of ACR/APAR %of number of executives Online quarterly vigilance clearance updation for Senior Executives (AGM and above) 3 Preparation of succession plan and its approval by Board of Directors 4 Holding of DPC without delay for executives (E0 and above level) 5 Talent Management and career progression by imparting at least one week training in Centre of Excellence (within India)e.g. llts, llms, NlTs lcal etc. %of number of senior executives Date L5.LO.L7 31..LO t r7 % %of Executives a) CPSE informed that it will update land holdings on Government Land Information System (GUS). b) lt was agreed that the targets recommended by the IMC are based on estimates submitted by the CpSE for the year In case of better performance of the CPSE as per final results as compared to estimates, the difference may be added to the targets for the year c) lt was agreed that targets decided in are unconditional and no offset will be allowed. Further evaluation would be subiect to compliance of additional eligibility criteria as contained in para 14.2 of guidelines "W-ro1> (K.D. Diwan) Chairman-cum-Managing Director H industan Copper Limited Ministry of Mines Page 5 of 11

sl. No, I Financial Performance Criteria Revenue from Operations - Gross Revenue from Operations - Net Unit Rs crore Target v/s Actual FinancialYear 20tt-12 20L2-1'3 2013-t4 20L4-15 2075-16 2016-t7

Profit before Tax Rs 472.95 403.51 430.65 80.45 39,61 94,20 77.05 b. Other Incomes crore 84.92 249.70 95.04 66.90 44.92 117.89 21.00 c. Extraordinary & Exceotional items d. Prior oeriod items (0.

42 67.60 t7.74 61.94 48.98 b. Net Worth at year end crore 919.00 t1t4.22 1253.10 It42.46 1073.09 1042.93 952.10 c. Average Net Worth 849.52 1015.51 1183.55 LI97.78 1000.11 1058.01 890.5 d.

6 sl. No, I Financial Performance Criteria Revenue from Operations - Gross Revenue from Operations - Net Unit Rs crore Target v/s Actual FinancialYear 20tt-12 20L2-1' t4 20L t7 Estimated 2017-t8 Projected r64t.44 L LO74.23 L Actual t49t t,tt L477.8L r a. Profit before Tax Rs ,61 94, b. Other Incomes crore c. Extraordinary & Exceotional items d. Prior oeriod items (0.03) (0.63) (7.36) 1.35 (2.L d. Operating Profit/Loss (a-b+/-c +/-dl 3 a. PAT Rs Actual L2.20 (7.r41 (23.63) ,52 t42.to s8.68 s t b. Net Worth at year end crore t1t It c. Average Net Worth LI d. PATlNet Worth % Actual ,78 2I rs s 514 f. Paid-up Share Capital Rs 452.6L 462.5t 462 6L 462.6L 462.5I g. GOI Share crore 460.7r L6.7L h. Reserves and Surolus rt Total expenses Rs LL t t Total Incomes crore t720,o Total expenses/total Incomes o/o Detail of Other Incomes a. Interest Rs , b. Dividend crore ,L7 0.0s c. Other Incomes L d. Total ,92 LL a. Cash and Bank Balance and equivalents b. Investment in mutual fu nds c. Investment in shares other than subsidiary/jvs Rs. crore s LIz.6L L7L.98 s L70.L L L d. Total (a+b+c) L,77 316, e. Cash credit/over-draft loan/short-term loan f. Balance in Current account 9 Dividend paid/declared for the year(excluding Div Tax) Rs. crore PART - A TREND ANATYSIS Annex lll 000 LO L7.69 t Page 6 of 11

wire rod 2 Capacity Utilisation in respect of wire rod 3 Contribution of Copper Wire rod in Sales 4 Exports as a percentage of Revenue from operations 5 CAPEX Rs.

work in progress to revenue from operations (Net) MT 60000 60000 50000 60000 60000 60000 60000 MT Actual 263tO 20358 23090 19709 26062 L8r67 2787r 34638 30746 18000 22392 32L63 % 78.29 80.

7 Annex lll PART - B SL No. Financial Performance Criteria Unit Target vls Actual Financial Year 20LL-t2 20L2-L3 20L3-L4 20t4-L t6-L7 Estimated 20t7-78 Projected 1 Installed Capacity in respect of Copper wire rod 2 Capacity Utilisation in respect of wire rod 3 Contribution of Copper Wire rod in Sales 4 Exports as a percentage of Revenue from operations 5 CAPEX Rs. 6 CAPEX contracts/ projects ru n ning/com pleted without time/cost overrun to total value of CAPEX 7 Inventory of finished goods and work in progress 8 Inventory of finished goods and work in progress to revenue from operations (Net) MT MT Actual 263tO L8r r L63 % % Actual r.79 L2.70 tl.27 3.s s O4 Actual L Crore r % Actual 100 Rs. crore s L 729.Or % Actual L s s PageT of L2

st. No, Financial Performance Criteria 9 Trade receivables (Net) 10 Trade receivables (Net) as number of days of

Estimated Rs. Cr. Actual r2l.74 184.51 198.83 4s.22 57.33 165.07 No of Days 20t7-L8 Projected 126.26 74.20 9t.74 8 I22.

18 29 2l 2l 11 Claims against the Company not acknowledged raised by ore By Central Government depts By State

81 By CPSEs N N N N N N N By Others 28 46 66.70 69.01 7t.r2 87.52 48.46 48.45 Total Actual 235.73 273.38 511.05 531.

8 st. No, Financial Performance Criteria 9 Trade receivables (Net) 10 Trade receivables (Net) as number of days of Revenue from Operations (gross) Unit Target v/s Actual Financial Year 20rt t3 20t3-t t6-L7 Estimated Rs. Cr. Actual r2l s No of Days 20t7-L8 Projected t.74 8 I Actual E l 2l 11 Claims against the Company not acknowledged raised by ore By Central Government depts By State Government depts s I t By CPSEs N N N N N N N By Others t.r Total Actual t2 Any other result oriented parameters NA NA NA NA NA 38s.27 3s0.67 Production of ore at KCC mine per Kg of explosive consumption (Stoping) Cu.m/Kg Actual o.7t o Page 8 of 12

PARTICULARS HINDUSTAN COPPER LIMITED MOU 2017-18 ASSUMPTION EXCELLENT VERY GOOD GOOD FAIR POOR LME AVERAGE us$ 6000 6000 6000 6000 6000 EXCHANGE RATE Rs/US$ 65.00 65.

00 SELLING PRICE(BASIC) MIC(KCC) Rs/Tonne 319201 319201 319201 319201 319201 Mrc(McP) Rsffonne 332408 332408 332408 332408 332408 CATHODE Rs/Tonne 418272 418272 418272 418272 418272 WIRE ROD Rs/Tonne

9 PARTICULARS HINDUSTAN COPPER LIMITED MOU ASSUMPTION EXCELLENT VERY GOOD GOOD FAIR POOR LME AVERAGE us$ EXCHANGE RATE Rs/US$ SELLING PRICE(BASIC) MIC(KCC) Rs/Tonne Mrc(McP) Rsffonne CATHODE Rs/Tonne WIRE ROD Rs/Tonne PRODUCTION Mrc(McP) Tonne MIC(SURDA) Tonne Mrc(Kcc) Tonne TOTAL MIC PRODUCTION Tonne GCP CATHODE FROM PURCHASED COPPER Tonne TOTAL MIC PRODUCTION + GCP CATHODE FROM PURCHASED COPPER Tonne s CATHODE : TOLLED Tonne CATHODE: (GCP +lcc ) Tonne TOTAL CATHODE Tonne WIRE ROD : OWN Tonne WIRE ROD:CONVERSION Tonne TOTAL WIRE ROD Tonne SALES Tonne Mrc(Kcc) Tonne Mrc(MCP) Tonne CATHODE -ICC Tonne CATHODE -GCP Tonne WIRE ROD Tonne TOTAL SALES Tonne MANPOWER IN OPERATION Nos Page 9 of 11

31st March 2018 Unit EXCELLENT 1501.15 462,61 1038.54 734.99 89.65 213.89 204.98 94.65 33.25 VERY 2017-18 IMOUI GOOD GOOD FAIR POOR 1498.25 462.6r 1035.64 732.O9 89.66 213.89 204.98 94.65 33.26 1495.

10 SNo t 1.1 t.2 1.2(a) r.5 Particula rs Sources of Fund Shareholders Fund(a+b+c) a. Paid-up Capital b. Share Money Awaiting Allotment c. Reserves & Surplus i) Profit & Loss Account (CR) ii) General Reserve iii) Other Statutory Reserves Long-Term Borrowings Long-Term Liabilities & Provisions Deferred Tax Liabilitv Balance Sheet as on 31st March 2018 Unit EXCELLENT , VERY IMOUI GOOD GOOD FAIR POOR r O ,61. 0,00 LO r s r L ,6t t.4 Total L828,23 L Apolication of Funds 2.L a1 Gross Block Less: Depreciation t 'J Net Block Discarded Fixed Assets Net of Provision 2.5 Capital Work In Progress b Deferred Revenue Expenditure t.l Non-Current Investments Deferred Tax Assets Long Term Loans & Advances r0 Current Assets(a) L s 2.ro Total Current Assets=(2.10) t II Current Liabilities(d) t ! t la Net Current Assets(e)=(a-d) s Profit & Loss Account (DR) 0, Totaf (2.3 to 2.9 & 2.t2 2 to 2.L Workine Notes :- Current Assets Current Investments Inventories Trades Receivables Cash & Cash Equivalents Short Term Loans and Advances(b) Other Current Assets s s s ,00 7L ro s Total Current Liabilities Trades Payables & Other Liabilities Short Term Provisions J.U5.Ab L Total L t Breakup of Inventory Raw Materials Work In Progress Finished Goods Stores & Soares t Total L Page 10 of 11

11 ANNEX-A sl. No. Name of Project 1 Malanjkhand Underground Mine, Malanjkhand 2 Gujarat Copper Project, Bharuch 3 Mine Development at Malanjkhand Open Pit Mine 4 Renewal & Replacement of existing equipment 5 Power Project at ICC (alternate source of power) Total Approved plan outlay Scheduled date of completion March 2020 Major Milestone during the year Sinking of Production Shaft, Service Shaft, North Ventilation Shaft, South Ventilation Shaft, Decline development 300 metre 29 3I.! Complete refurbishment of Kaldo furnace & associated equipment 36 March Excavation of 30 20t9 LBCM Ongoing activity every year 27.OO March 2018 Loading & hauling equipment, process equipment and Flash Smelter equipment Installation and commissioning of power plant at Indian Copper Complex, Ghatsila Date of completion of Major Milestone Amount to be spent during the year 2OL7-18 (Rs. Croresl r2.20t OO Total Page 11 of 11

Memorandum of Understanding. Department of Public Enterprises Ministry of Heavy Industries & Public Enterprises Government of India

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