Professional Documents
Culture Documents
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CONTENTS
Page No.
1.
Management/Bankers/Auditors
2.
3.
4.
Chairman's Statement
5.
Directors' Report
6.
98
7.
99
8.
113
9.
Profit & Loss Accounts for the year ended 31st March, 2012
115
10. Cash Flow Statement for the year ended 31st March, 2012
117
119
146
159
164
FUNCTIONAL DIRECTORS:
FUNCTIONAL DIRECTORS:
Shri S. Chakravarty
Director (Technical) Opn.
Shri S. Chakravarty
Director (Technical) Opn.
Shri A. Chatterjee
Director (Finance), CIL
Shri V. Peddanna
Director, MoC
Shri A. Chatterjee
Director (Finance), CIL (From 03.12.2012)
Shri V. Peddanna
Director, MoC (From 01.06.2012)
COMPANY SECRETARY:
Canara Bank
United Commercial Bank
VISION STATEMENT
To emerge from the position of domestic leader to leading global player in the energy sector by
adopting best practices from mine to market with due care to environmental and social sustenance.
MISSION STATEMENT
Produce the planned quantity of coal efficiently and economically with due regard to safety, conservation
& quality.
we ring I n
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NOTICE
Notice is hereby given that the Thirty-eight Annual General Meeting of the Shareholders of
Eastern Coalfields Limited will be held on Saturday, the 25th May, 2013 at the Registered Office of the
Company at Sanctoria, P.O. Disergarh-713333, Distt. Burdwan (West Bengal) at 11.00 A.M. to transact
the following business:-
ORDINARY BUSINESS:
1.
To receive, consider and adopt the Audited Balance Sheet as on 31st March, 2013 and Profit &
Loss Account for the year ended 31st March, 2013 together with the Report of the Auditors and
Directors thereon.
2.
To appoint a Director in place of Shri A. Chatterjee, Director, who retires in terms of Articles 33(i)
(e) (iii) of the Articles of Association of the Company and is eligible for reappointment.
3.
To appoint a Director in place of Shri V. Peddanna, Director, who retires in terms of Articles
33(i) (e) (iii) of the Articles of Association of the Company and is eligible for reappointment.
By order of the Board
sd/(V. R. Reddy)
General Manager (Finance) /
Company Secretary
Notes : (i)
A member entitled to attend and vote at the meeting is entitled to appoint a Proxy to attend and vote
instead of himself and the proxy need not be a member of the Company. The instrument appointing
the proxy should be deposited at the Registered Office of the Company not less than forty-eight
hours before the commencement of the meeting.
(ii)
Members are also requested to accord their consent for convening the meeting at a shorter Notice
under Sec. 171(2) (i) of the Companies Act, 1956.
3
CHAIRMANS STATEMENT
Friends,
I have great pleasure in welcoming you to the 38th Annual General Meeting of Eastern Coalfields
Limited. The Directors Report, audited accounts for the financial year 2012-13 together with the report
of Statutory Auditors and the report and review of the Comptroller and Auditor General of India, are
already with you.
1.
Energy is one of the major inputs for economic development of any country, today the Indian
economy is in acute need of energy and coal dominates the energy mix in India, contributing
over 52% of the total primary energy production. Our company produces one of the best qualities
of Non-Coking Coal which caters to the needs of various power plants, steel plants, cement
factories etc.
2.
The strategic vision of our company is to place itself on a path of accelerated growth with
enhancement in productivity, competitiveness and profitability while meeting the growing demand
of coal in the country in an environmentally and socially sustainable manner.
3.
In the financial year 2012-13 our company has set new records in terms of production, despatch,
profit etc. This year the coal production was 33.901 MT. During the year, we have set milestones
in the history of the company in recording highest ever turnover of ` 12162.59 crores, highest
ever profit of ` 1655.54crores, highest ever OBR of 76.448 M Cu.M and highest ever coal offtake of 35.84 MT. But success also comes with more responsibility. We have to strive hard to
maintain this growth rate and perform better in the days to come.
4.
During the year 2012-13, 4 (four) projects namely PR for Jhanjra low height CM, PR for Kumardihi
B CM, UCE of Shankarpur (UG+OC) and Tilaboni were approved by the Board.
5.
Continuous efforts are being made to enhance the coal production from underground mines.
As on 31.03.2013, 220 Nos. of SDLs and 32 Nos. of LHDs are in operation in different
underground mines of ECL.
6.
The impact on the environment due to extraction of coal is being monitored constantly by our
Company and adequate measures are undertaken for control of Air, Water & Noise Pollution,
Land degradation, Deforestation etc. These measures are being undertaken in accordance
with the provisions of all statutory norms, Acts and Rules on a regular basis. During 2012-13
we planted 50950 Nos. of trees/sapling covering an area of 25 Ha.
7.
We have also committed for sustainable development and CSR activities in villages around
ECL command area by providing drinking water, improving educational facilities and health
care.
4
8.
We have always given the highest priority towards safety, which in ECL is considered as a part
of core production process. To improve the safety standards, ECL has vigorously pursued
several measures during the year.
9.
Our Company has complied with the conditions of corporate governance as stipulated in the
Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs) issued
by the Department of Public Enterprises, Government of India. As required under the said
guidelines a separate section on Corporate Governance has been added in the Directors
Report and a Compliance Certificate has been obtained from the statutory auditors.
10.
We are committed to produce more than 35 MT coal during 2013-14 and confident that ECL
will march ahead in the times to come and with co-operation of all and our tireless efforts, the
company will come out of BIFR in days to come.
I express my sincere thanks to Coal India Limited, Ministry of Coal, other Central Government Ministries
and Departments, State Governments, all employees, Trade Unions, consumers, and suppliers for
their unstinted support and relentless co-operation.
(Rakesh Sinha)
Chairman
Place: Sanctoria
Date: 25th May, 2013
DIRECTORS' REPORT
To
The Shareholders,
Eastern Coalfields Limited
Gentlemen,
I, on behalf of the Board of Directors, have pleasure in presenting the 38th Annual Report on the working
of your Company together with audited accounts for the year ended 31st March, 2013, report of the Statutory
Auditors and Managements reply thereon as well as the comments of the Comptroller and Auditor General of India
on the audited accounts.
Special Achievements:
a)
ECL has achieved all the target parameters of Coal Production, OB Removal and Off-take and these
achievements are ever highest since inception of the company.
b)
On 24th March, 2013 the company produced 2.28 Lakh Tonne coal which is the highest ever coal production
on a day since its inception.
c)
Rajmahal Area of ECL produced 1.38 Lakh Tonne of Coal on 24th March, 2013 which is highest ever
production from a single area since its inception.
d)
On 31st March, 2013, ECL despatched 38 rakes of coal through Indian Railways leading to total despatch
of 1.82 Lakh Tonne, which is highest ever on a single day since inception.
e)
The company has recorded highest ever turnover of ` 12162.59 crores against ` 10695.11 crores during
the last year.
f)
ECL has paid demurrage charges to Eastern Railways to the tune of only ` 0.42 crores for the year 201213 as against ` 1.08 crores paid during the last year i.e. a reduction of 61.05% in comparison to last year..
g)
Training in Apparel Design under the guidance of Ministry of Textile for project affected persons was
organized at Deoghar in two batches and all the trained persons got offer for employment from different
parts of the country immediately after the training. Similar training programmes are being arranged in
Raniganj coalfield also.
1.0
1.1
PRODUCTION:
Production performance of the Company in 2012-13 against the target as well as compared to last year
was as under:
Particulars
1. Production :
i) Raw Coal - UG
- OC
Total
Unit
2012-13
2011-12
Target
Actual
Achieved
(%)
7.63
25.37
33.00
6.849
27.052
33.901
89.76
106.63
102.73
0.010
0.031
0.010
0.033
32.959
Actual
Growth Over
last year
Absolute
6.833
23.725
30.558
0.016
3.327
3.343
0.23
14.02
10.94
100.00
106.452
0.010
0.041
0.000
0.008
0.00
19.51
33.858
102.728
30.507
3.351
10.98
60.000
76.448
125.877
60.305
16.143
26.77
0.507
9.872
1.874
0.463
10.170
1.944
91.321
103.019
103.735
0.442
8.642
1.678
0.021
1.528
0.266
4.75
17.68
15.85
M.Te.
MCuM
3. Productivity(OMS)
- Underground
- Opencast
- Overall
Tonnes
1.2 CONSTRAINTS :
(Figures in M. Te)
Particulars
As on 31.3.13
As on 31.3.12
0.285
0.121
0.174
0.708
1.288
0.316
0.362
0.439
3.590
4.707
(In %)
2012-13
Target
a) UG
b) OC (Dept)
c) OBR (Dept)
d) OC (Coal+OBR) Dept
e) OC (Coal) Hired
f) OC (OBR) Hired
g) OC (Coal+OBR) Hired
h) Overall (UG+OC)
(Hired+ Dept.)
2011-12
Actual
Achieved(%)
Actual
Growth Over
last year
Absolute
%
73.72
117.80
95.85
100.39
94.34
99.26
98.55
66.18
123.03
77.28
86.25
105.52
206.91
188.65
89.77
104.44
80.63
85.91
111.85
208.45
191.43
62.80
116.39
80.47
87.38
292.96
415.31
393.64
3.38
6.64
3.19
1.13
187.46
208.40
204.99
5.38
5.70
3.96
1.29
63.98
50.18
52.08
98.06
118.96
121.31
129.9
10.94
8.42
2.0
FINANCIAL RESULTS :
2.1.
Gross sales turnover for the year ending 31st March, 2013 was ` 12162.59 crores compared to
` 10695.11 crores in the previous year resulting in increase of 13.72% over previous year. During the year
under review, company had made a pre-tax profit of ` 1897.18 crore and a Post-tax Profit of ` 1655.54
crore compared to last years profit of ` 962.13 crores. Details were as under:
( ` in Crore)
Particulars
2012-13
2011-12
2090.61
2220.44
75.94
43.07
164.84
708.57
8.48
267.31
() 324.59
0.16
258.32
248.19
1898.63
962.13
Particulars
2.2
2012-13
2011-12
1.45
1897.18
2282.86
0.00
962.13
2251.36
1655.54
962.13
Capital Expenditure :
Total Capital Expenditure during the year under review was ` 202.94 crores (Excluding exchange fluctiation)
against the Capital Expenditure of ` 332.96 crores during 2011-12.
2.3
Capital Structure :
( ` in Crore)
Particulars
A. SHARE CAPITAL
i) Authorized Share Capital (2,50,00,000 Eq. shares of ` 1000 each)
ii) Paid up Equity Share Capital (22184500 shares of ` 1000 each)
B. LOAN FUNDS:
i) Coal India Limited (Holding Company)
ii) Export Development Corporation, Canada.
2.4
2011-12
2500.00
2218.45
2500.00
2218.45
518.97
160.35
518.97
155.64
( ` in Crore)
2012-13
2012-13
5.14
2011-12
4.43
Payment / Adjustment of Royalty, Cess, Stowing excise duty & Sales Tax during the year:
( ` in Crore)
Particulars
2012-13
i) Royalty on Coal
ii) Cess on Coal.
iii) Sales Tax (Central & State).
iv) Stowing Excise Duty.
v) Central Excise Duty
Total
2.6
2011-12
240.15
1527.32
376.56
34.75
545.00
189.44
1509.45
321.06
29.03
413.40
2723.78
2462.38
(a)
in the preparation of the Annual Accounts for the year ended 31st March 2013, all the applicable accounting
standards were followed with proper explanation relating to material departures;
8
(b)
the Directors had selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the
company at the end of the financial year and of the Profit/Loss of the company for that period;
(c)
the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provision of the Companies Act, 1956 for safeguarding the assets of the company
and for preventing and detecting fraud and other irregularities; and
(d)
3.0
3.1
the Directors had prepared the annual accounts on a going concern basis.
PLANNING :
Command Area of Operations:
Mining lease-hold area of ECL is about 753 Sq. Km out of which surface right area is about 237.18 Sq.
Km. Command area of operation of ECL is in two States-West Bengal and Jharkhand. Areas of Raniganj
Coalfield are spreading over Burdwan, Birbhum, Bankura and Purulia District in West Bengal. Saharjuri
Coalfield in Deoghar District of Jharkhand is being worked as SP Mines Area. Hura Coalfields and ECLs
largest opencast mine Rajmahal is being operated in Godda District of Jharkhand. Heart of Raniganj
Coalfields is located on the north of Ajoy River while Mejia and Parbelia are on south of Damodar River. In
Dhanbad District, Mugma field lies on the west of Barakar River. Formation of coal seems has occurred
mainly in two sequences at ECL- Raniganj measures & Barakar measures. Raniganj measures cover the
entire coalfield of Raniganj-Pandaweswar, Kajora, Jhanjra, Bankola, Kenda, Sonepur, Kunustoria, Satgram,
Sripur, Sodepur and partly at Salanpur Areas. Barakar measures cover two areas i.e Salanpur & Mugma
Areas, S.P. Mines and Rajmahal Areas are mainly related to Barakar measure and Talchair series.
3.2
Sl.
No.
3.3
Particulars
Target
Revised
(BE)
Target (RE)
2011-12
2013-14
Actual
Actual
Planned
Production (Mt)
33.00
33.30
33.901
30.56
34.70
Overall Productivity
1.874
1.896
1.944
1.68
2.057
450.00
425.00
202.94
332.94
525.00
CMPDIL
Target
Revised
(BE)
Target (RE)
28000
30000
3.4.
3.4.1
Actual
2011-12
2013-14
Actual
Target
(BE)
29150
28920
30000
Detailed status of implementation of ongoing R&D Projects funded under R&D grant of CIL Board is
enclosed as Annexure I.
3.4.2
S&T Projects :
Detailed status of implementation of ongoing S&T Research Projects funded under S&T grant of MoC is
enclosed as Annexure II.
3.5
3.6
3.7
SL
No
Name of the
Project
PR of Jhanjhra Low
height CM
0.72
277.81
PR of Kumardihi BCM
0.51
171.39
3.
UCE of Shankarpur
(OC + UG)
OC - 2.00
UG - 1.163
401.43
4.
Tilaboni
1.86
788.53
3.8
Capacity (MTY)
Approved Capital
Investment (` Cr)
Date of Approval
Details of Projects approved by the board of Directors of CIL during the year :
Sl
No
Name of the
Project
Sonepur Bazari
Combined OC
Capacity (MTY)
Approved Capital
Investment (` Cr.)
8.00
1055.05
11
Date of Approval
Approved by ESC of
CIL Board on 7.8.2012
3.9
Project
Details
New Kenda OC
Ghusick UG
North Searsole
Kanchanpur Sector) UG
3.10
3.11
2nd Set CM at Jhanjra UG with M/s. Bucyrus DBT GmbH, agreement signed on 11th June, 2012.
ii.
Jhanjra R-VI Seam PSLW with M/s. CODCO for long wall package, agreement signed on
8th January, 2013.
ii.
Expansion/Revision/Foreclosure of Projects: 4. (a) Rajmahal Exp. OC, (b) Mohanpur Exp. OC,
(c) Khottadih Exp. OC and (d) Chitra East OC (Expansion of Chitra)
iii. Others - 13
iv.
3.12
Sl.No.
1
Total 18
Target
Performance Indicator
ECL Final Board Approval for Continuous Miner
Achievement
January-2013
Not Achieved.
December-2012
Not Achieved.
September-2012
Achieved, Commissioned
Project(Pandaweshwar-Dalurband CM)
2
Commissioning
of New
Expansion project
January-2013
The
proposal
for
Construction of washery
Mty)
February-2013
Not Achieved.
May-2012
Agreement signed on
UG
6
12.10.2012.
65 Nos.
3 Families Shifted
January-2013
Achieved.Work Order
issued on 23.05.2012.
12
Sl.No.
9
Target
Performance Indicator
Signing of agreement for second set Continuous
August-2012
Miner at Jhanjra.
Achievement
Achieved, Agreement
signed on 14th June,
2012.
10
5 Nos.
Achieved, 7 Mines.
` 450.00 crore.
` 202.94 crore.
12
3 Nos. of Mines
Achieved. Khottadih,
blasting efficiency
13
14
2 Nos. of Districts
organization.
Parascole East.
Achieved.
13
4.0
5.0
COAL MARKETING:
5.1
Off-take 2012-13
Off-take 2011-12
Demand
Actual
POWER
27.06
30.015
111
29.58
24.27
82
CEMENT
0.13
0.146
112
0.15
0.14
93
CPP(ORS)
0.365
0.218
62
0.45
0.35
78
CPP (STEEL)
0.505
0.313
62
0.46
0.42
91
STEEL (BLEND)
0.06
0.01
17
0.06
0.01
17
SPONGE IRON
0.32
0.275
86
0.58
0.31
53
EXPORT
0.02
0.00
0.02
0.00
LOCO
0.01
0.00
0.01
0.00
DEF
0.03
0.01
33
0.03
0.00
COLLY. CONS.
0.40
0.301
75
0.40
0.341
85
OTHERS
5.35
4.556
85
2.26
4.989
221
34.25
35.844
105
34.00
TOTAL
5.2.
% Satisfaction
Demand
Actual
%Satisfaction
30.83
91
Field
2012-13
2011-12
Target
Actual
Target
Actual
Raniganj
Mugma/Salanpur
Adra
Pirpainti
Rajmahal (Wharf Wall)
668
119
21
144
0
647
149
17
84
153
612
109
20
40
0
573
147
20
62
71
Total
952
1050
781
873
14
5.3.
Mode-wise despatch :
Mode-wise despatch of coal in 2012-13 compared to previous year as follows:
(Figures in Million Tonnes)
Mode of Despatch
2012-13
Rail
Road
Merry-Go-Round(MGR)
Total
5.4.
5.5.
24.158
19.79
2.117
2.19
9.267
8.51
35.542
30.49
2011-12
Raniganj
6.40
Mugma/Salanpur
3.83
S.P. Mines
0.98
Rajmahal
10.26
Total
21.47
2011-12
2012-13
Mode
Despatched
Qty.
(in lakh
Gain over
notified
price
tonne)
( ` in Cr.)
% age
Gain
Despatched
Qty.
(in lakh
Gain over
notified
price
tonne)
( ` in Cr.)
% age
Gain
27.60
161.39
17.79
25.37
237.41
28.08
Road
14.24
229.31
45.10
12.80
229.63
57.36
Total
41.84
390.70
27.60
38.17
467.04
37.48
0.25
4.1
101.99
0.55
9.5
98.95
Total
0.25
4.1
101.99
0.55
9.5
98.95
Against MoU target of 7%, E-Auction of Coal achieved was 10.4% during the Year 2012-13. And offering of FSA to
Power Plants as per latest Govt. directives to those having Power Purchase Agreement was completed/achieved
by 07.05.2012.
5.7.
Sales Realisation :
(` in Crore )
Particulars
Sales Realisation
15
2012-13
2011-12
11121.88
9100.88
Against MoU Target of 2% reduction in disputed receivables, there has been an increase of 94.19% in disputed
receivables and against MoU Target of 4% reduction in undisputed receivables, there has been an increase of
45.65% in undisputed receivables.
6.0
6.1
Population of Equipment as on 31st March 2013 compared to 31st March 2012 and major repair / rehabilitation
done during 2012-13 is as follows :
Equipment
No. of Equipment
as on
31.03.2013
6.2
Repair / Rehabilitation of
equipment during 2012-13
31.03.2012
Target
Achievement
Dragline
---
---
Dumper
197
232
---
---
Dozer
82
80
Shovel
59
62
---
---
Drill
45
41
---
---
Percentage availability & utilisation of each type of equipment against CMPDIL norms during the year
2012-13 compared to previous year is as follows :
Equipment
CMPDIL
Norms
2012-13
2011-12
CMPDIL
Norms
2012-13
2011-12
Dragline
85
92.01
90.24
1.77
73
86.55
84.37
2.18
Dumper
67
67.37
68.05
-0.68
50
39.47
37.06
2.41
Dozer
70
69.94
72.41
-2.47
45
30.85
29.97
0.88
Shovel
80
70.91
74.32
-3.41
58
46.25
45.59
0.66
Drill
78
77.15
76.05
1.10
40
31.14
30.01
1.13
The %age availability of shovel is less due to swing circle problem and major repair of 20 Cu.M shovel. Frequent
failure of magnetorque, rack segment, C.P. generator, swing shaft and crown mechanism in 10 Cu.M shovel.
Failure of hydraulic pumps in EX600 shovels.
Steps taken to achieve CMPDIL norms of Dumper Utilisation:
Procurement action of new equipment against replacement of surveyed off equipment has been undertaken.
Orders have been placed for 54 Nos. of 35 Tonne Dumper, 5 Nos. of 60 Tonne Dumper with MARC.
Procurement process of 100 Tonne Dumper is under finalisation. Dumpers are being procured with AC
cabin, which will improve utilisation.
Review of HEMM performance of projects was made at regular intervals and subsequently necessary
assistance/help was provided from HQ to reduce breakdown hours of equipment.
16
6.3
Nos.
Project
Dozer
13
Shovel
Khottadih
Drill
10
7.0
ENERGY CONSERVATION :
7.1.1
Sl. Particulars
I.
ELECTRICITY PURCHASED
a)
Purchased Units
b)
c)
Rate/Unit (Average)
d)
Unit
2012-13
2011-12
M.KWH
824.53
808.52
` in crore
` / KWH
559.07
505.71
6.78
6.25
KWH/Te
24.30
26.45
Lakh KWH
7.04
1.30
II.
a)
Generated Units
b)
KWH/Ltr.
5.80
4.70
c)
Cost of Generation
` / KWH
9.87
9.44
III.
AVAILABILITY OF POWER:
a)
MVA
171.54
154.10
b)
Power Demand
MVA
182.41
167.50
c)
% Availability
94.04
92.00
7.1.2
7.2
17
7.3
7.4
2012-13
2011-12
Remarks
On
Roll
Productivity
(TPD)
Productivity
(TPD)
SDL
219
55
57
LHD
30
85
95
Road Header
24
15
PSLW
15
Continous
Miner
1521
1566
Performance of CHPs:
As on 31st March 2013, Company was operating 4 Nos. of major CHPs and 2 Nos. of Mini CHPs. During
2012-13, the Major CHPs handled 17.922 M. Te and Mini CHPs handled 0.19604 M. Te of coal.
8.0
WELFARE AMENITIES :
Sl.
No.
1.
ITEM
Cumulative Achievement
position as
during
on 31.3.2012
2012-13
Cumulative
position as
on 31.3.2013
Co-operative Societies
a) Co-operative Credit Society
b) Primary Consumer Co-operative Stores
74
30
0
0
74
30
c) Central Co-operative
04
04
63.80
63.80
Banking Facilities
No. of branches functioning
26
26
3.
Creches
48
48
4.
5.
Canteens
Educational Facilities
82
82
18
Remarks
Sl.
No.
6.
7.
8.
9.
ITEM
Cumulative Achievement
position as
during
on 31.3.2012
2012-13
Cumulative
position as
on 31.3.2013
a) DAV School
04
b.i) No. of Schools receiving recurring Grant - in - aid
162
b.ii) Amount of Recurring grant-in-Aid ( ` in lakh)
3381.63
c.i) No. of Schools receiving non-Recurring
Grant-in-aid
386
c.ii) Amount of non-recurring grant-in-aid
( ` in lakh)
286.71
d.i) No. of schools sanctioned ad-hoc grant
79
d.ii) No. of ad-hoc grant sanctioned ( ` in lakh)
69.60
e) No. of School buses engaged
156
Games & Sports amount spent ( ` in lakh)
343.50
Social & Cultural activities, amount spent ( ` in lakh)
64.85
CIL Scholarship
a) No. of Scholarship and Cash awarded
12403
0
0
404.34
04
162
3785.97
01
387
1.50
0
0
0
14.58
1.46
288.21
79
69.60
156
358.08
66.31
1165
13568
13.59
155.97
142.38
Remarks
37 students
were given
special cash
cash awarded
CIL Scheme for Financial assitance to extend the Tuition Fees & Hostel Charges of the Wards of Wage Board
Employee studying in the Selected Engineering & Govt. Medical Colleges.
a) No. of wards of WBE sanctioned
b) Amount sanctioned ( ` in lakh)
111
61
172
15.87
11.28
27.15
9.1
MEDICAL AMENITIES:
9.1.1
13 Hospitals with a total bed capacity of 1285 and 115 Dispensaries extended medical services to
the employees and their wards/dependants. 130 Nos. of Ambulances were in service in these
hospitals. 5 Nos. of Mobile Medical Vans also catered to the medical needs of localities situated
in ECL command area.
9.1.2
No. of persons referred to outside for treatment & expenditure incurred for their treatment and
Villagers covered by Mobile Dispensary:
Particulars
2012-13
1084
876
759
707.62
23
1221
23
1205
- No of beneficiaries
2011-12
647
648
33755
37840
During 2012-13, one more mobile medical van is provided at Sonepur Bazari Area for organising Mobile
health camps. A new hospital having 10 bed capacity has been constructed at Jhanjra Area.
19
9.1.3
For optimum utilisation of existing skilled manpower and providing improved services 13 dispensaries
merged with nearby dispensaries.
b.
Up-gradation work of CH Kalla and Sanctoria Hospital with respect to hospital building renovation/
repair, procurement of new equipment, sanitation/hygiene and clinical services has been started
and is expected to be completed within six months.
c.
The services of the specialists have been rationalised for making their services available at peripheral
hospitals also.
10.0
2.
Education.
3.
4.
5.
6.
10.1
7.
8.
9.
Scholarship to meritorious students belonging to SC, ST, OBC & disabled categories.
10.
b. Mini Rural Water Supply Scheme for Village Bodra, Rajmahal Area.
A proposal initiated by Jharkhand Government amounting to ` 1.20 crore has been undertaken by ECL to
address to the condition of drinking water facility prevailing in the location of Bodra Village under Rajmahal
20
Area. 50% of the amount to the tune of ` 60 lakhs has been released to carry out the activity as first
stage of work to DC Godda, Government of Jharkhand.
c.
21
10.2
MoU Activities :
Performance
Indicator
Measurement
Unit
Target
for the
year
Achievements
` Lakh
45
Completed in
Sl.
No.
nearby
18.01.2013
21.01.2013
18.01.2013
21.01.2013
18.01.2013
21.01.2013
18.01.2013
21.01.2013
18.01.2013
21.01.2013
March-2013
Date of
Date of
Reporting of
Acceptance
Details to TISS Conveyed by
Database
TISS
villages
(Rajmahal Area)
2
` Lakh
20
Completed in
March-2013
Construction of PCC
road
from
Month of
Jan13
Nema completion
Completed in
March-2013
panchayat Bhawan to
Telegama Village via
Johar
Sthan
with
culverts.
4
Providing well-equipped
Month of
Dec12
Completed in
March-2013
No.)
5
Construction of 2 nos.
Month of
Jan13
Completed in
August-2012
Community Centre
1
2
3
4
5
6
962.13
9.42
0.98%
5% of retained earning or ` 5/per tone of coal production.
0.00
Sl.
No.
7
8
22
7.08
0.20%
16.50
10.3
Social Amenities :
Since the inception, Eastern Coalfields Limited has taken up various activities for the welfare of its workers
as well as development of people/communities living in the surrounding areas of the mines. In addition,
lots of activities have been attended for the development of infrastructure, industrial structure, roads and
railway sidings, residential building, water supply and other welfare activities etc. Brief description is as
below:-
Welfare Buildings:
For the welfare of the workmen, there is tremendous improvement in the assets since nationalization,
details as belowa) Hospitals- 12
b)
Dispensaries- 128
c) Canteens- 82
d)
e) Multipurpose Institutes- 12
f)
g) Community Centers 54
10.3.3 Water Supply:
ECL has always given special attention for the improvement of potable water supply to the occupants of
our residential houses as well as to the people of nearby communities. There are 22 numbers of slow
sand filters, 20 numbers rapid gravity filters to provide filtered and treated potable water to the employees
and their dependents. There are also 11 numbers of river bed bore wells.
In addition to this ECL has also participated with RCFA-1 and RCFA-2 water supply schemes of West
Bengal government and Chirkunda water supply scheme of Jharkhand Govt. for augmenting the source of
water and water is served to a population of 5,40,000.
10.3.4 Coal Production Roads and Railway Sidings:
Dispatch of coal is one of the prime activities of ECL and it is being done effectively and efficiently. Coal is
being dispatched mainly by the mode of roads and railways. ECL has taken proper steps in this regard.
Detail description of some ongoing and new works is as below:a) Roads- Various activities have been undertaken for construction of coal transportation roads,
peripheral roads of administrative buildings and internal colony roads with details as under :Sl. no.
1
Name of Work
Construction of Coal transportation road from MIC to Nakrakonda at
Jhanjra area
Present Status
Work completed
Work completed.
23
Sl. no.
3
Name of Work
Present Status
Work completed.
Work completed.
Work completed.
b) One of the major works related to railway siding, wharf wall etc. is as below :
Sl. No.
1
Name of Work
Construction of new railway siding
to serve Sonepur Bazari Project.
Present Status
Detailed Project Report has been approved by Eastern
Railway with some suggested modifications. ECL have
gone through the report and advised RITES to take the
matter of double lane from Y junction to loading point (3.2
km) with railways for construction in a phased manner.
11.0
SAFETY:
11.1
2012-13*
2011-12
10
10
79
82
0.295
0.229
0.172
0.115
Safety Measures
Jobs undertaken by ISO for enhancing safety in Mines of ECL
a.
Safety Board at Corporate Level has been constituted for inspecting the Mines and removing deficiencies
observed. Monthly Meeting of Safety Board is regularly held for reviewing safety of Mines. This meeting is
attended by all Functional Directors, all HoDs, all Safety board Members, all Area CGM/GMs and all Area
safety Officers. The Safety board Comprises of, amongst others, Six Members nominated by the Operating
Trade Unions.
b.
To conduct Special Meeting of Pits Safety Committee after fatal accident and implementation of the
recommendation of Special Pits Safety Committee.
c.
Enquiring into Fatal accidents in order to know the root causes and fixing responsibility.
24
d.
Issuance of Safety Circulars in line with finding of the enquiry into Accidents / Dangerous Occurrences/
Near-miss Incidents to prevent recurrence.
e.
Maintenance and Analysis of Statistics of Fatal and Serious Accidents for taking remedial measures.
f.
To observe Special Safety Drive in October 2012 on Roof & Side Dressing and implementation of SSR for
both development and depillaring workings.
g.
Use of convergence indicator, load cell, stress capsules etc. in depillaring district to indicate immediate
roof fall. Follow instrumentation plan as per study of CIMFR wherever practicable.
h.
Back shift inspection is being carried out. Inspection register/notes are being examined by higher ups.
Beefing up of such odd hours inspections.
i.
j.
Strata Control Monitoring Cell has been established in ECL Head Quarter and subsequently Strata Control
Monitoring Cell has been established in all areas to study the roof behavior and for improvement of roof
support in mines. RMR is determined wherever required and Support Rules are framed accordingly.
k.
Drawing Safe Operating Procedures in respect of Mining and allied activities and operation of Mining
Machinery/HEMM.
l.
m. Noise-mapping in and around Blast Hole Drill and other HEMM in OC Mines for taking remedial measures
has been done.
n.
Introduction of Loading Equipment like LHD, SDL and Roof Bolters for minimizing exposure of workforce
to risk. Presently in 78 running U/G mines, there are 114 mechanized & 29 manual districts. 14 Manual
Districts have been converted into mechanized districts.
o.
24 Nos. of UDM have been introduced for roof drilling for roof bolting.
p.
Exception Reports are being submitted by the Executives/Inspecting officials from ISO after inspection of
Mines to Director (Technical) who takes up the deficiencies pointed therein with the concerned Area
CGM/GMs/Agents for removal of the deficiencies.
q.
A Gas chromatograph has been procured and installed at the centrally located Satgram Area Laboratory.
Its services are being utilized by the Areas whenever required.
r.
Procurement of Slope Stability Radars for large OCPs is in pipeline for monitoring slopes stability.
s.
t.
u.
Use of fly ash bricks for construction of ventilation stopping in U/G Mines: Target- 5 Mines; Achievement
7 Mines.
v.
Devising Safe Operating Procedures (SOP) for different activities, general or mine- specific and enforcing.
y.
A meeting held with all Workmens Inspectors of ECL on 29.11.2012 in Kunustoria Club.
Assessment of Risk, Drawing Mine-wise Safety Management Plan and its periodical review/
updating:
25
a.
Detailed accident analysis has been done and it has been seen that three accidents occurred due to roof
fall / side fall, two due to hit by haulage tub/LHD, two due to run over by Dumper, one due to fall of Dumper
into water, one due to fall of person in same level and one due to fall of dozer with operator from OB Dump.
b.
Calendar of Safety Drive for the year 2012-13 had been prepared and was followed. Details is as under :
April-12
May-12
June-12
July-12
August-12
September-12
October-12
November-12
December-12
January-13
February-13
March-13
2012-13
2011-12
8.53
6.68
32.31
27.12
Safety Audit
Internal Safety Audit has been done. We are in the process of conducting Safety Audit by external
agencies as recommended by DGMS.
11.4
Monsoon preparation
Special drive in respect to Monsoon Preparedness had been done in the month of June 2012 by the Nodal
Officers/In-charge of Areas of safety department along with the Colliery Management and status of
implementation had been monitored at regular interval during the year 2012-13. A Control Room was
opened at Head Quarter, ECL from 10.06.2012 to 15.10.2012 on 24 X 7 basis which was manned by
Executives provided with telephone & vehicle for their movement keeping close liaison with Area Control
Rooms operating in all Areas.
Close liaison is maintained with the Chief Engineer (Hydel), DVC, Maithon for getting Flood Warning
Message whenever Panchet and Maithon dams release flood water to cause rise of HFL of rivers. Close
liaison is also maintained with the Director, Indian Meteorological Department, Alipur, Kolkata and the
Director, Area Cyclone Warning Centre, Alipur, Kolkata for obtaining Weather Forecast Report over
Telephone & FAX for alerting the Areas to be affected by heavy Rain/ Thunder/ Shower.
26
11.5
Safety Training
Year
11.6
Workmens Inspector
No. of
No. of
No. of
No. of
Programme
Participant
Programme
Participant
2012-13
86
33
2011-12
115
50
Type of Exam
Training Institute
12
MTS , Dhadka
18
MTS , Dhadka
Overman
11
MTS , Dhadka
157
MTS , Dhadka
Surveyor
16
MTS , Dhadka
Electrical Supervisor
14
MTS , Dhadka
27
MTI, Ratibatti
Surveyor
33
MTS , Dhadka
Mining Sirdar
52
MTS , Dhadka
Electrician
31
MTS , Dhadka
160
A. For appearing in
Mining Sirdar
B. Trade Course
11.8.
2012-13
2011-12
Basic
564
1027
Refresher
8690
9351
Spl. Training
6399
6675
I.O.D.
394
170
Contractors Workers
4568
3142
Mines Rescue Station, Sitarampur, Rescue Room with Refresher Training (RRRT) Kenda and Rescue
Rooms operating at Jhanjra, Mugma & Kalidaspur.
11.8.1 Details of Emergency attended :
In 2012-13, recoveries of old sealed off panels were retrieved in Belbaid, Belbaid OC Patch, Parascol (W),
Lachipur & Khottadih Colliery.
11.8.2 During the year Rescue Services dealt fire/spontaneous heating in the following mines
successfully.
Sl.No.
Colliery
Area
Date
From
To
Belbaid
Kunustoria
03.05.2012
2
3
4
5
6
Parascol(W)
Belbaid OCP patch
Parascol(W)
Khottadih
Nakrakonda
Kajora
Kunustoria
Kajora
Pandaweshwar
Bankola
18.06.2012
28.06.2012
27.07.2012
31.10.2012
12.03.2013
--22.06.2012
07.07.2012
28.07.2012
24.11.2012
14.03.2013
Other than the above 4 (four) more emergency rescue services were done as follows :
11.9
Sl. No.
Colliery
Area
Date
Nature of occurrence
Lachipur
Kajora
25.09.2012
Lifesaving Call
Ratibati
Satgram
05.01.2013
Banjemehari OCP
Salanpur
17.01.2013
Khottadih
Pandaweshwar
10.02.2013
Training:
Refresher as well as initial training was imparted at Mines Rescue Station regularly, details are as follows:
Nature of Training
2012-13
2011-12
679
682
40
47
5970
5834
10
28
11.11
11.12
11.13
Particulars
Revenue Budget
2012-13
2011-12
2012-13
2011-12
Sanctioned
120.33
90.38
1260.85
938.00
Expenditure
22.08
29.38
1454.50
1117.00
12.0
MATERIAL MANAGEMENT:
12.1
Details
31.03.2013
31.03.2012
% Reduction
167.26
179.81
6.98
3.09 months
3.76 months
17.82
It is significant that this reduction in inventory in terms of value and in terms of months consumption over
the figures of last year have been achieved.
12.2
Disposal of Scrap:
Disposal of Scrap through e-auction is conducted by Mjunction. During the financial year 2012-13, 11
(eleven) auctions were conducted and sales realization was to the extent of ` 9.94 crore as against sales
realization of ` 1.61 crore during the financial year 2011-12.
12.3
13.0
QUALITY CONTROL:
29
13.1
Quality Improvement
In 2012-13, 98.20% confirmed to billed grade for dispatches of coal covered under agreed sampling
arrangement as compared to 89.66% grade confirmation achieved in 2011-12 on sampled quantity.
Details of Sampling
% of Grade conformation with respect to despatch
No. of samples with one grade slippage
% of one grade slippage
2012-13
2011-12
98.20
89.66
332
811
5.70
10.15
46
15
0.78
0.18
Against MoU Target of 100% for despatch covered under agreed sampling of coal to power sector actual
achievement is 100%. Against MoU Target of 90% for establishing mechanism through a publicized
website for handling of consumers complaint & no Complaint should be kept pending for more than three
months, the actual achievement is 95%.
13.2
Quality deduction:
The grade confirmation has increased over last year and the quality deduction in 2012-13 was ` 28.51 per
tonne compared to ` 53.60 per tonne in 2011-12.
Year
Amount of
Deduction
Deduction
` /Tonne
(in Lakh ` )
2012-13
355.42
10134.50
28.51
2011-12
303.40
16252.84
53.60
[N.B.: Amounts calculated on the basis of basic price of RoM (250 mm) Coal]
13.313.3 WEIGHMENT & SIZING STATUS:
13.3.1 Weighment Status:
Weighment under EPS was 99.08% of total despatch in 2012-13. The quantity weighed in EPS has
increased by 17.09% from 300.74 Lakh Tonne in 2011-12 to 352.15 Lakh Tonnes in 2012-13. In 2012-13,
quantity weighed in EPS for supplies account Power houses & others compared to last year is below:
(Figure in L/T)
2012-13
Details
2011-12
Power
EPS
Other
Consumers
Total
Power
EPS
Other
Consumers
Total
300.21
55.21
355.42
246.36
57.04
303.40
297.02
55.13
352.15
244.19
56.55
300.74
98.94
99.85
99.08
99.12
99.14
99.12
30
13.3.2
Sizing Status
The total despatch of coal in 2012-13 was 355.42 Lakh Tonne of which the sized coal despatch by
Mechanical Crushing/UG coal to Power sector by Rail was 82.83%. The quantity of sized coal in CHP/
FB/UG has increased by 8.94 % from 263.26 Lakh Tonne in 2011-12 to 286.80 Lakh Tonne in 2012-13. In
despatches from sidings other than CHP/FB facility, sizing was done by Dozer and thus 100% sized coal
was despatched. To achieve supply of 100% mechanically crushed coal to Power Houses, action has
been initiated from few Areas namely Rajmahal and S.P. Mines. The details are given below.
Sizing of Coal
2012-13
Power
Others
Total
Power
Others
Total
38.14
286.80
217.22
46.04
263.26
82.83
69.08
80.69
88.17
80.70
86.01
DZR/MNL
51.55
17.07
68.62
29.14
11.00
40.14
17.17
30.92
19.31
11.83
19.30
13.99
100
100
100
100
100
100
Total
14.0
2011-12
VIGILANCE:
Vigilance Activities : (2012-13)
14.1
Punitive :
Sl. No.
Subject
No.
Complaints received
2
3
4
5
6
7
8
9
10
11
12
301
Major
Minor
Departmental Inquiries completed
Cases in which penalty imposed :
(i) Major penalty
(ii) Minor penalty
(iii) Administrative Action
(iv) Exoneration
Departmental Enquiry Cases pending
as on 31.3.2013 :
(i) Major
(ii) Minor
Inquiries pending with IAs more than 6 months
31
54
17
12
08
04
01
No. of
Cases
04
02
10
No. of
of persons
05
03
14
02
05
02
01
03
06
02
03
21
03
09
33
31
11
14.1
PREVENTIVE:
Sl. No.
Subject
No.
34
27
In regular HRD programmes, 2 sessions (3 hours) are devoted for vigilance awareness.
14.3
Proposals were received regarding system improvement in the matter of employment against
land loser scheme, scrap disposal and prevention of fire during welding of equipment.
2.
3.
As a result of initiative of Vigilance Department relating to delay in refund of EMD & Bank Guarantee,
a circular has been issued by GM (F) I/C, ECL to all Areas and Units for early refund.
14.4
14.5
32
Recruitment Portal: The Company has launched its Recruitment portal for On-line advertisement and
receipt of job applications against advertised vacancies.
14.6
Implementation of e-governance:
During a meeting the following points were reviewed in details: (i) placing all circulars on ECL Website, (ii)
e-Payment to third parties (iii) status of employment (against land and medically unfit cases) with
relationship of the nominee and VRS applications in Company Website. Comprehensive study was done
on the procedure being followed for the monthly allocation of coal dispatch at the HQ with regard to FSA,
MOU and e-auctions as discussed during the meeting held at MOC in presence of Chairman, CIL. CVO,
ECL highlighted the financial gain to the Company in this regard and stressed the need to computerize
the entire process so that any manipulations are ruled out. The proposal was agreed and concerned
officials were asked to take further action.
14.6.1 E-Auction:
With the implementation of the system improvement measures suggested by Vigilance Department in the
previous year(s), relating to automation of allotment of High Bid collieries/pilots offered under e-auction
and low bid collieries/pilots offered to FSA consumers under non-power sector and improvement in steam
loading, there has been marked improvement in realization in e-auction during the period April 2012 to
December 2012 compared to corresponding period last year. Against a dispatch of 25.92 lakh tonnes
during the period April, 2011 to December 2011, the dispatch during April 2012 to December 2012 was
28.26 lakh tonnes and gain over notified price during April 2012 to December 2012 was ` 291.29 crores
compared to ` 278.50 crores during the corresponding period last year. Similarly, steam loading during
April, 2012 to December, 2012 was 25.40 lakh tonnes compared to 22.60 lakh tonnes during corresponding
period last year. This has resulted in more sales realization by ` 5.04 crores. On implementation of the
vigilance suggestion consequent on a surprise check, the under-loading penalties have come down from
` 3.38 per tonne to ` 2.39 per tonne, i.e. a net saving of ` 71 lakh approximately..
14.6.2 E-Procurement:
Rate Contracts with 1) M/s ITI Ltd Bangalore, 2) M/s MSTC Kolkata 3) M/s Metal Junction Service Limited
Kolkata as Service providers for implementation of e-procurement in CIL and its subsidiaries was finalized
by CIL. The R.C finalized by CIL provides four options of operation for e-procurement a) E-tendering with
e-price bid b) e-tendering with e-price bid followed by reverse auction c) e-tendering with reverse auction d)
Bare reverse auction. While selecting options for operations it was felt prudent by the MM department to
choose e-tendering with e-price bid only. Since all open/global tenders are being done through e-tendering
with M/s. ITI Limited as service provider, the tender documents are being given in ITIs portal
www.itietendering.com/CIL. The tender notices for these tenders are being displayed in government tender
portal as well as website of ECL with a note that tender documents are available on the ITI portal and can
be downloaded from there. Further all Limited tender enquiries above ` 10 lakhs are also being uploaded/
published on ECLs Website/Govt. Portal.
During 2012, all open/global tenders of ECL Hqrs. were done through e-procurement with e-price bid
system. A full-fledged e-procurement Cell is functioning to provide support for e-procurement activities.
Details of all Purchase Orders finalized by the Department are being put up on the website subsequent to
finalization of tenders.
33
14.6.3 E - Payment :
After introduction of payment through RTGS/e-mode, the payments are made both by issuing cheques
and advice through RTGS/e-mode. Statutory Government dues except Income-Tax, RE-Cess & PE Cess
are being made through e-payment. Position of bills pending for payment at ECL HQ is being submitted
for information through web-site every month.
14.6.4 E-Tendering:
There has been marked improvement in e-governance in 2012 in ECL. ECL e-Tendering site-http://
ecltenders.gov.in has come to a shape for hosting tenders for Works & Services. The e-tendering system
has commenced from February 2013.
14.6.5 Job Rotation:
In view of the extant guidelines of CVC and transfer policy of CIL, the matter is being reviewed in the
Structured Meetings. During the year 2012-13, against 23 officers and 1016 non-executive employees
drawn for rotation, 9 officers and 702 non-executive employees were transferred upto December 2012.
14.7
15.0
PARTICULARS OF EMPLOYEES:
None of the employees received remuneration in excess of limits prescribed under section 217(2A) of the
Companies Act 1956 read with companies (particulars of employees) Rules 1975, as amended.
16.0
1.
All the computers of HQ, as well as 90% computers of Areas have been activated with Unicode and thus
made able to work in Hindi.
2.
The classes of Hindi Praveen Course, under Hindi Teaching Scheme commenced from 18.07.2012 for
Non-Hindi employees of HQ.
3.
A Hindi Kavi Sammelan was organized on 14th September, 2012 in which the poets of all India level
addressed the audience.
4.
The rule of writing the subject of the files in Hindi on the covers has been implemented.
5.
All name-plates and notice-boards have been made & displayed according to the Three-Language Formula.
6.
The ideal thoughts of Mahatma Gandhi, Swami Vivekananda, Rabindranath Tagore, Bankim Chandra
Chatterjee, etc. have been displayed on colourful and attractive boards with their photographs at the
various places at HQ premises.
7.
All the Rubber-stamps have been made bilingual (Hindi on the top and English at the bottom) and are
being used.
8.
To ensure the inspection of Official Language Implementation and compliance of the related rules and
regulations of Official Language in each Department of HQ and Areas, five committees have been constituted.
The committee has finished the work of inspection/suggestion during the period under review.
34
9.
Director (Personnel) of ECL, Sri Sushil Kumar Srivastava has been awarded with the honour of RAJBHASA
KARYANWAYAN RATNA by Pariwartan Jankalyan Samiti, Delhi on the occasion of 9th Hindi Mahakumbh
and Sahitya Srijan Samman Sammelan, held in Delhi on 26.09.2012.
10. Rajbhasa Pakhwara was organized from 1st September, 2012 to 14th September, 2012 in which essay
competition, official letter writing and note-sheet writing competition were organized for Hindi-speaking
and Non-Hindi-speaking employees separately. The winners of these competitions were awarded with
various prizes and certificates.
11. The officers of each department have been trained to type in Hindi with Unicode so that the growth in Hindi
correspondence could be accelerated. This training is going on regularly at present also for new officers
and employees.
12. The names of all the officers and employees are written in Hindi and English in all the attendance registers
of all departments.
13. The names of the security guards have been displayed in Hindi on their pockets.
14. In comparison with the last year, a growth of 9% in Hindi correspondence has been recorded in Region A,
6% in region B and 3% in region C.
15. We have reached the target of 55% correspondence in Hindi in Region A at HQ during the quarter ended
on 31.12.2012.
16. During the year a 21 days Translation Training Programme was organized with the help of Central Translation
Bureau, Ministry of Home affairs, Govt. of India. A scheme to give honour to the writers of Jyotsna, the
house journal of the company, has been started. In this scheme each writer of 12 excellent writings will
be honoured with ` 1000/- each and a certificate.
17. During the year books amounting to ` 5,306/- (No. of books: 54) have been purchased for Ravindra Hindi
Pustakalay of HQ.
17.0
Scheme, networth of the company was slated to become positive in 2009-10. This Revised Scheme was
heard by Board for Reconstruction of Public Sector Enterprises (BRPSE) in August, 2005. They had
recommended the scheme for approval. The recommendations of BRPSE were heard by Committees of
Secretaries (COS) on 13th January, 2006. They had also recommended the Scheme for the revival of the
Company. Cabinet Committee on Economic Affairs (CCEA) had approved the BRPSE recommended
Revival Plan of ECL on 6th October, 2006.
After obtaining the approval of CCEA, company had submitted the Revised Rehabilitation Scheme to the
Monitoring Agency and BIFR in October 2006 with a request to approve the Revised Rehabilitation Scheme
for implementation. BIFR advised the company to submit Govt. approved Revival Plan to Monitoring Agency
with a copy to them. Company had submitted the same to Monitoring Agency with a copy to BIFR on 7th
August, 2007. BIFR is yet to approve the same.
In June, 2009 BIFR advised the company to revise the Draft Modified Revival Plan submitted earlier. BIFR
further advised the company to send a copy of CCEA approval of DMRP. Hence company prepared a
Revised Revival. Revised Revival Plan was discussed in 230th ECL board meeting held on 31st August
2009 and 1st Sept, 2009. Due to enhancement of coal prices from 16th October, 2009 and delay in
implementation of various projects, Functional Directors in its meeting held on 5th Jan10 advised to revise
the physical parameters from 2010-11 to 2016-17.
Hence the financial projections earlier made were revised. BRPSE reviewed the ECLs case on 27th
August, 2010. Company presented the DMRP (June, 2010). BRPSE advised the company to revise the
physical and financial projections by exploring the possibility of advancing the project completion to
enable the company to come out of BIFR. Hence the revised DMRP (November, 2010) was prepared. As
per DMRP (November, 2010) the company was expected to come out of BIFR in 2014-15. The revised
DMRP (November, 2010) was submitted to BIFR in its meeting held on 22nd November, 2010. As advised
by BIFR, the Monitoring Agency got the TEV study conducted by a consultant.
In the hearing held on 08.06.2011 the BIFR directed the company to serve a copy of DMRP and TEV
Report to all the stake holders, advised MA to call a joint meeting of all the stakeholders within four weeks
and submit a report if any on the DMRP and TEV Report vis--vis the suggestions of other stake holders
within six weeks. The directions of BIFR are complied.
As per summary record of proceedings of the meeting held on 02.09.2011, on the advice of BIFR, DMRP,
September, 2011 was submitted. As per the revised DMRP of ECL- September, 2011, the net-worth of the
company is slated to become positive in 2015-16. No meeting / hearing was held with BIFR/BRPSE in the
financial year 2012-13. Effective steps have been taken to implement the revival plan and it is expected
that the company will come out of BIFR by 2015-16.
18.0
18 .1
e-Tendering solution has been rolled out in ECL for Works & Services tenders above ` 5.00
Lakhs from the traditional system of tendering wherein tendering cycle can be done online making
huge advances in efficiency, transparency, data storage and it is helpful in reducing the total
cycle time of procurement.
ii)
The software used is GePNIC from National Informatics Center (NIC), our service provider for this
purpose.
36
iii)
A separate domain has been registered by ECL for e-Tendering purpose at http:ecltenders.gov.in
which was launched on 05.02.2013 wherein six pilot tenders have been successfully floated.
iv)
ECL is the second subsidiary of Coal India Limited who has implemented the e-Tendering solution
after MCL for Works & Services.
18.2
19.0
19.1
a.
Surface Communication:
For efficient surface communication order has been placed for 10 Nos. of EPABXs having 64 line capacities
for interfacing with auto-cum auto-manual system for Mugma Area, Salanpur Area and Kunustoria Area.
b.
Order has been placed for 1 No. EPABX for Satgram Area having 150 line capacities.
c.
Work order has been placed for establishing connectivity of all the Areas with the HQs and ECL Sales
office Kolkata through Virtual Private Net-Work, but work is yet to be started by BSNL.
19.2
a.
Underground Communication:
For providing underground communication system 8 nos. Auto-cum auto-manual IS communication system
having 15 lines capacity are being procured for Mugma area & 1 No having 30 lines capacity for Kunustoria
Area.
b.
19.3
89 Nos. Loud hailing sets are being procured for providing U/G communication system.
Others:
Walkie talkie/VHF Radio communication system has been provided in the open cast mines of ECL and
CISF camp as per requirement.
20.0
20.1
Mode of Acquisition
19.45
22.67
L.A. Act
2.29
2.29
CBA Act
310.60
416.69
426.63
471.66
The status of land acquisition cases which have been processed under LA Act and under CBA Act are as
follows:
37
Kalipahari OCP 44.46 acre Matter is pending with C&I Department, Government of West Bengal.
2.
Sarpi UG 217.38 revised Company deposited 50% of the estimated amount ` 5.94 crore to
State Government. The matter is pending with joint secretary C&I Department, Government of West
Bengal.
3.
Nakrakonda Ext. OCP - 55.99 acre - Matter is pending with Joint secretary L & LR Department,
Government of West Bengal.
4.
Mohanpur OCP - 39.66 acre - Cabinet approval done by State Government. Notification u/s 4 of LA
Act 1894 has been done on 07.11.2012 and corrigendum done on 20.11.2012.
5.
Sonepur Bazari OCP - Matter is pending with L& LR Department, Government of West Bengal.
6.
7.
Pandaweshwar OCP - 360.62 acre - State Government demanded 50% of estimated amount which
was not paid because proposal for starting the OCP is under reconsideration of the concerned area.
8.
Narainkuri OCP 114.80 acre - The matter is pending with Joint secretary L & LR Department,
Government of West Bengal.
9.
Dalurband UG- It has been approved by the State Government and is pending at LA Collector Burdwan
for giving possession.
10. Sangramgarh: It has been approved by State Government and is pending at LA Collector Burdwan
for giving possession.
11. Banbahal OCP: Application submitted on 17.12.2011 for 50.06 acre. State Government demanded
` 0.55 crore as 50% of estimated amount which has been deposited in July 2012.
12. Madhaipur OCP: Application submitted on 16.2.2011 for 130.98 acre of land. State Government
demanded ` 1.50 crore as 50% of estimated amount which was not paid because proposal for
starting the OCP is under reconsideration of the concerned area.
Under CBA Act:
1.
Chota Bhorai Mouza-50.38 acre MoC published the notification u/s 9(i) in the gazette of India on
26.05.2012. MoC had sent the draft notification on 15.11.2012 to Gazette of India for publication u/s
11(i).
2.
Simlong Project-18.03 acre MoC published the notification u/s 9(i) & 11(i) in the gazette of India on
16.05.2012 and 20.10.2012 respectively. Process of acquisition is completed.
3.
Rajmahal Ph VII 698.71 acre- MoC published the notification u/s 9(i) & 11(i) in the gazette of India
on 15.05.2012 and 29.09.2012 respectively. Process of acquisition is completed.
4.
Rajmahal (Lohandia)228.89 acre- MoC published the notification u/s 9 (i) in the Gazette of India
on 14.04.2012 and Draft notification u/s 11 (i) send to MoC on 03.07.2012.
5.
Simlong project Ph II 616.76 acre. MoC published the notification u/s 4 (i) in the Gazette of India
on 29.07.2012 and Draft notification u/s 7 is under process.
38
6.
Mohanpur OCP, Salanpur 57.69 acre. MoC published the notification u/s 9 (i) in the Gazette of
India on 07.07.2012 and MoC sent the draft notification u/s 11(i) to Gazette of India for publication on
10.01.2013.
7.
Jhanjra UG 566.124 acre- Notification u/s 7 (i) done on 25.12.2010 and Notification u/s 9 was done
on 22.02.2013
20.2
21.0
SECURITY MANAGEMENT:
The aim of Security Department is to protect men and materials of the company. Company is having 3
(three) types of security.
1.
2.
3.
ECL Security:
The main duty of ECL Security is to guard the companys property i.e., Stores, Office, Explosive Magazines,
Coal Depots/Sidings, colonies and escorting of VIPs as and when required by the Management. Escorting
of loaded Railway Rakes, Tipping Trucks/Dumpers from Coal Depot/Siding to Railway Weigh Bridges
respectively till the weighment is done. The raids are also conducted throughout the year by our security
personnel, CISF along with local police, accordingly seizure of coal involve trucks/vehicles, and apprehension
of miscreants are also made during the course of raids and subsequently the same is handed over to the
local police station/ management. ECL Security Personnel were also deployed during the time of strike/
gherao/demonstration/hunger strike and any type of law and order problem in ECL Area.
Contractual Security:
The Contractual Security personnel engaged through DGR sponsored agencies are generally deployed for
outsourcing patches and some collieries of ECL and escorting of Railway Rakes, due to acute shortage of
departmental security.
CISF:
CISF is deployed for static duty at Rajmahal, Sonepur Bazari and S.P. Mines. Besides they are having
camps at Mugma, Salanpur, Sripur, Kunustoria, Pandaveswar, Kalidaspur and Satgram Area. They remain
on mobile duty to conduct raids against illegal mining, illegal trafficking of coal and illegal coal depots and
to deploy CISF personnel during Strike/Gherao in the colliery/area.
Basic Problem of Security
a) Shortage of executive & other ranks manpower in security department to manage the day to
day security work.
b) Lack of transport and communication system.
c) Need for centralised accommodation of Security personnel.
39
Requisition of 449 CISF personnel has been sent to CISF HQ. These persons are exclusively for
Explosive Magazine of ECL.
b.
c.
Agencies have been contacted for installation of CCTV and other techno-gazatory to be provided
in Explosive Magazine, Central Store and Railway Siding.
d.
Arms Training by CISF Instructors have been imparted to 112 Security Guards of ECL who will be
deployed for guarding Explosive Magazines after inclusion of their name as Arms Retainer in the
Arms Licenses held by ECL.
e.
Basic training has been imparted to 115 persons of other category who after training will deployed
as security persons both male and female.
f.
Set up of Check Posts for fruitful implementation of the West Bengal Minerals (Prevention of
Illegal Mining, Transportation & Storage) Rules, 2002.
g.
A mechanism to collect the seized coal from local Police Stations has been put in place. ECL
has received about 6300 tonnes of seized coal during 2011-12 till June12.
Intelligence collection.
b.
Dozing off/filling up/sealing the illegal coal mining sites and subside area by departmental Pay
Loaders/Dozers and some times contractually.
c.
Surprise checks /raids by CISF, ECL Security along with Police and seizure of illegal coal /illegal
trafficking of coal along with involved vehicles and apprehension of miscreants and subsequently
handed over to the same to the local Police station.
d.
e.
Frequent inspection by Area Team consisting of CGM, Area Survey Officer, Area Security Officer
along with CISF officials to the affected sites and accordingly meetings are held in the Commandant,
CISF Office regularly.
f.
The resolution has been taken for constitution of Security Co-ordination committee for Asansol
Sub-division for reviewing the status of illegal mining.
Surprise checks/raids are conducted by ECL Security along with CISF personnel/Private Security
to prevent theft of coal. During the course of checks/raids, they seized coal, apprehended miscreants
and FIRs lodged to local Police Stations.
b.
Armed Security personnel escorting coal loaded rake from Siding to Railway Weighbridges.
c.
8 Nos. of strategic points are identified in coal belt for detection of vehicles loaded with stolen/
illegally mined coal.
d.
After setting up of Commissionrate from 1st Sept, 2011 onwards at Asansol-Durgapur there has
been improvement in curbing of coal theft activities. Commissionrate Officers in co-operation with
40
CISF and ECL Security has taken various steps which resulted in reduction of coal theft activities
in West Bengal Areas of ECL.
A)
Details of Seizure of Coal from Illegal Trafficking Coal and Illegal Mined Coal by ECL Security,
CISF and Local Police :
Year
State
No. of
Raids
Coal
seized (tonne)
Vehicle
seized
Person
Apprehended
FIRs
Lodged
2011-12
West Bengal
295
1944
11
19
19
Jharkhand
324
2104
---
07
02
Total
619
4048
11
26
21
Total
551
5648
18
07
28
Variation
68
1600
07
19
07
2011-12
B)
West Bengal
70
---
---
---
---
Jharkhand
16
---
---
---
---
Total
86
---
---
---
---
Total
40
667
05
47
11
Variation
46
667
05
47
11
During the course of dozing off/ sealing/filling up of the illegal mining sites the ECL security along with
CISF and local Police are also deployed at the dozing points within leasehold and outside the leasehold
areas. In the year 2012-13 following dozing /sealing are done to curb the illegal coal mining.
Year
2012-13
2011-12
State
Sites
Dozed
Volume Used
(L. Cum)
Expend (approx)
( ` in Lakh)
Fir/Info. Sent
to Local PS
West Bengal
1315
0.4104
32.35
116
Jharkhand
28
4.7063
165.91
44
Total
1343
5.1167
198.26
160
Total
1893
3.4215
114.48
111
Variation
550
1.6952
83.78
49
41
C.
2012-13
2011-12
Variation (Increase/decrease)
No. of Incidents
175
196
21
170
168
02
7519033.00
10465859.00
2946827.00
206450.00
639000.00
432550.00
03
03
----
22.0
22.1
OUTSOURCING OC PATCHES:
In 2012-13, company produced 83.96 LT of coal and raised 460.24 L. Cum of OB from 19 outsourcing OC
patches against target of 75.00 LT of coal and 222.02 L. Cum of OB. Against MoU Target of 3 nos, for
Commencement of Hired HEMM Patches the actual achievement is more than 3 no patches.
Completion
Name of Agency
Period
LOA
No.-345,
Date21.05.2012
` 104.05 crore, M/s. Mahalaxmi Infra Contract
Pvt. Ltd.
2 years
4 years
2 years
OB Removal of Khottadih
Pandaweshwar
at
7 years
LOA
No.-884,
Date-29.10.2012
` 8.66 crore, M/s. BBTA-MTLT-AJJW(JV)
1 year
LOA
No.-942,
Date-28.11.2012
` 65.54 crore, M/s. APM-CISC (JV)
1 year
LOA
No.-755,
Date-22.08.2012
` 55.44 crore, M/s. Mahalaxmi Infra Contract
Pvt. Ltd.
3 years
12 years
42
01.06.2012
22.1.2. Work tendered through e-mode & under finalization (Outsourcing OC Patch) :
Sl
No
Name of work
Proposed
Coal
Proposed
Overburden
Remarks
Part-II is yet
to be opened.
Chapapur 10
8.00 L. Te.
23.00 L. cum
Madhabpur Ph-II
0.54 L. Te
1.80 L. cum
Kumardihi B
4.03 L. Te.
13.62 L. cum
Bahula
6.00 L. Te.
39.63 L. cum
S.P. Mines
54.50 L. cum
Award of work is
under finalization.
CORPORATE GOVERNANCE:
Corporate Governance is a process that aims to meet shareholders aspirations and societal expectations.
It is a commitment that is backed by the fundamental belief of maximising shareholders value, transparency
in functioning, values and mutual trust amongst all the constituents of organisation. Its not a discipline
imposed by a Regulator, rather a culture that guides the Board, management and employees to function
towards the best interest of shareholders. It involves essentially a creative, generative and positive thinking
activity that adds value to the various stakeholders that are served as end customers of the corporate
entity.
ECL is committed to achieving highest level of transparency, openness and accountability and fairness in
all areas of operation, meeting the aspirations of all its stakeholders with primary objective of enhancing
shareholders value, timely and balanced disclosure of all material information to all the stakeholders and
protection of their interest. The Company has put in place a sound system of internal control to mitigate
the risks and comply with the laws of land, rules & regulations in true letter and spirit with a view to provide
oversight and guidance to management in strategy implementation.
In our Company, Corporate Governance philosophy stems from our belief that corporate governance is a
key element in improving efficiency and growth as well as enhancing investor confidence and accordingly
the Corporate Governance philosophy has been scripted as under :
As a good corporate citizen, the Company is committed to sound corporate practices, based
on conscience, openness, fairness, professionalism and accountability in building confidence
of its various stakeholders in it thereby paving the way for its long term success.
A report on Corporate Governance of your company is placed at ANNEXURE-V and a certification from
Auditors regarding compliance of conditions of Corporate Governance by your company for the year
ended 31st March 2013 is also placed at ANNEXURE-VI to this report.
43
24.0
ACKNOWLEDGEMENT:
Your Directors express their sincere gratitude to Govt. of India in general, Ministry of Coal, Govt. of West
Bengal, Govt. of Jharkhand and Coal India Limited in particular for their valuable guidance and co-operation
throughout the year towards attainment of the objectives of the company. Your Directors also thank all the
operating Trade Unions for their co-operation and to the employees of the Company at all level for their
sincere and dedicated services rendered by them in the functioning of the Company. They are fully confident
that the employees of all ranks would continue to strive hard to improve the performance of the company
in the coming years to enable the company to come out of BIFR and making it a profitable company.
Your Directors acknowledge with thanks the assistance and guidance received from Statutory Auditors,
Tax Auditor, Concurrent Auditor, BIFR, BRPSE, SBI, Registrar of Companies, West Bengal and Comptroller
and Auditor General of India. Your Directors also wish to place on record their sincere thanks to the valued
customers and consumers for their patronage to the company.
The following papers are annexed to the Report:
i)
Comments of the Comptroller and Auditor General of India under Section 619(4) of the Companies
Act 1956.
ii)
iii)
iv)
Addendum to the Directors Report under Sec. 217(3) and 227(2) of the Companies Act 1956
stating Statutory Auditors Report and Managements reply thereon.
Sanctoria,
Dated: 24th May 2013
(Rakesh Sinha)
Chairman-cum-Mg. Director
44
216.98
20.90518
3339.98
Development of imminent
roof fall prediction
system in underground
mines using wireless
network.
Project Code :
CIL/R&D/1/27/08
Implementing agency:
IIT, Kharagpur & ECL
Delineation of workings
below Railway lines near
Ratibati Colliery, stability
analysis by numerical
modeling & possible
remedial measures.
Project Code:CIL/R&D/
1/31/08
Implementing agency:
CIMFR, Dhanbad.
Sl.
No.
3.
Financial
Outley
( in Lakhs)
45
June,
2009
Feb,
2009
May,
2008
Date of
Start
May, 2011
June, 2010
Feb. 2011
Revised /
scheduled date
of completion
2100.00
20.422
215.00
Progressive
Disbursement
( Lakh)
Present Status
Annexure - I
5.
Underground Trapped
4.
46
dynamic
1/42/10.
Implementing Agencies:
(SAIL), Ranchi.
loading.
Present Status
2013
273.83
446.20
Progressive
Disbursement
( Lakh)
Behavior in Development
Investigation of Bolt
14th Dec.,
June, 2011
Dec. 2011
June, 2012
Dec. 2012
June, 2013
Revised /
scheduled date
of completion
1/35/10 Implementing
Date of
Start
Sl.
No.
Financial
Outley
( in Lakhs)
Research
Management
47
2013
IIT, Kharagpur
Implementing Agency :
CIL/R&D/1/54/2013
Project Code :
Mining Machines
Cables of Underground
1st
2013
March,
March,
187.84
66.19
Date of
Start
Development of Rubber
Kolkata
DFIC
Implementing Agencies:
1/55/13.
plan.
energy management
development on efficient
and
Sl.
No.
Financial
Outley
( in Lakhs)
Feb., 2015
May, 2014
Revised /
scheduled date
of completion
0.00
50.00
Progressive
Disbursement
( Lakh)
Present Status
Investigation of cavability
of overlying strata and
development
of
guidelines of support
capacity for Longwall
faces (MT/151)
Implementing agency:
CIMFR Dhanbad, NIRM,
Kolar, CMPDIL, Ranchi &
ISM Dhanbad
Delineation of barrier
thickness
against
waterlogged workings in
underground coal mines(MT/153)
Implementing agency :
CIMFR, Dhanbad
Sl.
No.
48
402.66
342.2692
461.3674
For CMRI 200.142
For NIRM-187.91
For ISM-63.3154
For CMPDIL 10.00
Financial
Outley
( in Lakhs)
Mar.
2008
May,
2007
Nov.
2005
Date of
Start
Nov. 2011
Feb. 2011
Mar. 2012
Jan. 2012
Sep. 2011
Mar. 2011
Oct. 2010
April, 2009
Sep. 2010
Mar. 2010
Oct. 2008
400.00
340.00
255.00
CMRI - 70.0
NIRM - 130.00
ISM 55.00
Scheduled / Progressive
Disbursement
Revised
( Lakh)
date of
completion
Status
Annexure - II
Carbon sequestration in
re-vegetated coal mine
wastelands (EE/ 40)
Implementing agency:
CIMFR
Development of tele
robotics and remote
operation technology forunderground coal mines
MT(EoI)/162
Implementing Agency :
CMERI,
Durgapur,
CIMFR, Dhanbad &
CMPDIL, Ranchi
Application of high
strength steel roof-bolts
in underground coal
mines(MT/156)
Implementing agency:
RDCIS,
DGMS
&
CMPDIL
Sl.
No.
440.12
For CMERI 251.57
For CIMFR 125.55
For CMPDIL 63.00
64.76
103.22
For RDCIS 89.02
For CMPDIL 14.20
Financial
Outley
( in Lakhs)
Jan. 2012
Dec. 2011
170
CMERI-95.0
CIMFR - 75.0
30.00
70.00
Progressive
Scheduled /
Disbursement
Revised
( Lakh)
date of
completion
Feb. 2009
Jan. 2010
Date of
Start
Present Status
49
Annexure - III
3.14
Sl.
No.
Capital
( ` Cr.)
Date of
Approval
0.12 (Inc.)
8.13
Jun 02
1.5
19.26
Nov 11
June 08
Capacity
(MTY)
Status of Implementation
Shankarpur UG
Kottadih OC Aug.
0.24
19.14
Mar 03
Kumardihi B UG
0.42
79.23
June 06
Khandra NKJ UG
0.285
18.85
July 03
Parasea Dobrana UG
0.16 (Inc.)
11.89
Feb 04
Siduli UG
0.30
54.99
Dec 06
0.30+0.46 147.86(120.35
Additional)
= 0.76
50
Sl.
No.
Name of
Project
Capital
( ` Cr.)
Date of
Approval
NabakajoraMadhabpur Block UG
0.30
56.14
Dec 06
10
Chitra East OC
2.50
112.69
Aug' 07
11
Rajmahal Expansion
OC
17 MTY
153.82
Sept '09
12
1.70
287.17
Nov' 06
13
Mohanpur Expansion
OC
1.0
14.23
June' 08
14
Belbaid (Dhasal ) UG
0.36 (Incre)
69.11
Feb' 09
15.
0.51
147.25
May - 11
Capacity
(MTY)
51
Status of Implementation
Sl.
No.
Name of
Project
Capital
( ` Cr.)
Date of
Approval
0.54
149.06
Feb' 09
Capacity
(MTY)
Status of Implementation
16.
Narainkuri UG
17.
Khottadih Continuous
Miner UG
0.6
127.17
May '11
18.
Sonepur
Bazari
combined OC
8.00
1055.05
Aug.' 12
52
Annexure-IV
MANAGEMENTS DISCUSSION AND ANALYSIS REPORT - 2012-13
Overview of the Indian economy:
With an estimated GDP, on a purchasing power parity basis, India is the 4th largest economy in the world after the
European Union, the United States and China (Source: CIA World Fact book-2012). India is also one of the fastest
growing economies in the world. Coal is the one of the prime fuels in India and has met approximately 52% of
Indias total energy needs and will continue to be crucial to Indias future energy needs.
Global coal industry and reserves:
The world coal reserves as per the rate of production in 2011 are estimated to suffice for the next 112 years
(Source: BP Statistics). Although coal deposits are widely distributed across the world, 80% of the worlds recoverable
reserves are located in five regions: the United States (27.6%), Russia (18.2%), China (13.3%), Australia, New
Zealand (9.0%), India (7.0%), and Germany (4.7%) (Source: BP statistical Review of World Energy June 2012)
Global coal production and consumption:
China is the largest producer of coal followed by the United States, India and Australia. Asia is the biggest market
for coal and currently accounts for 67.1% of global coal consumption, owing to China and India who are the
primary consumers.
Indian coal industry and reserves:
As of April 2012, the geological resource of Indian coal was 293.497 Billion Tons (Source: GSI, GOI). In India coal
is the primary fuel used to fire thermal power plants due to its availability and affordability. Coal is the dominant
source of energy and met 52% (approximately), while oil and natural gas met approximately 41.6% of the total
energy requirement of India in fiscal 2010 (Source: BP Statistics)
Coal production and consumption in India:
Accordingly to BP statistical Review of World Energy June 2012, India is the Third largest producer of coal in the
world. Indias coal production was 539.94 million tons (Source: Provisional Coal Statistics, 2011-12) in the year
2011-12, thus made a growth 1.3% in comparison to last year. In addition, India is the third largest consumer of
coal in the world. Bulk portion of coal produced in India is consumed by the power sector for generation of
electricity in the country.
OUTLOOK:
Overview of Eastern Coalfields Limited:
Eastern Coalfields Limited (ECL), a subsidiary of Coal India Limited was incorporated on 1st November, 1975 by
taking over 414 mines vested with Eastern Division of Coal Mines Authority Limited (CMAL) and the company
commenced its commercial operation from that date. It operates in the states of West Bengal and Jharkhand. It
is the 6th largest producer of coal in India at present.
ECL is the best quality non coking coal producing company in India having total reserve of 48.5 Billion Tons of coal
as on 01.04.2012. As on date there are 111 working mines in Eastern Coalfields Ltd., 87 being underground mines,
17 opencast mines and 7 mixed mine.
53
Reserve of 24 Billion Tons of Coal as on 01.04.2012 (Source GSI) of premium grade non coking coal at
Raniganj Coalfields, besides there is approximately 6 Billion non-coking coal in Birbhum Coalfield. Average
ash content less than 20% in Raniganj Coalfield.
b.
Raniganj coal can be blended with high ash coal from other subsidiaries to satisfy MoEF stipulations.
c.
Reserve of approximately 18.5 Billion Tons of inferior grade Coal down to a depth of 600 metres as on
01.04.2012 (Source: GSI) in the state of Jharkhand where scope for comparatively easy extraction of coal
by open cast mining exists.
d.
e.
Weakness:
a.
The coal mining in the Raniganj coalfield had started about 150 years back. Hence the company is loaded
with old legacy of small mines, old steam winders working at 50% of its capacity.
b.
c.
d.
Huge infrastructure built on coal bearing areas hinder open cast mining.
e.
f.
b.
c.
d.
Positive response from Central Trade Unions to issues involving production and productivity.
e.
Threats:
a. Opposition to acquisition of land by villagers.
b. Opposition to closure of unviable mines.
c. Opposition to hiring of HEMM.
d. Land constraint in introduction of mass production technology.
e. Difficulty in better E-marketing of ECLs coal due to 25% cess charged by the Government of West
Bengal.
Business Strategies:
a. Continue to increase production, productivity and capitalize on the significant demand-supply gap for
coal in India.
54
b. Improve realizations through increased sales of higher quality coal, and e-auction coal.
c. Enhance profitability and maintain competiveness by improving operating efficiencies and control.
d. Continue to increase our reserve base.
e. Continue to focus on developing environmentally and socially sustainable operations.
Production:
Particulars
2012-13
27.052
6.849
33.901
10.94
76.448
26.77
2011-12
23.725
6.833
30.558
-0.8
60.305
7.22
2012-13
2011-12
Growth (%)
27.300
75.36
21.689
70.35
25.87
E-auction
4.209
11.68
3.872
12.56
8.70
4.010
11.20
Others
0.024
0.89
4.930
15.99
99.51
Own Consumption
0.301
0.87
0.341
1.11
11.73
35.844
100.00
30.832
100.00
16.25
Total Off-take
Our Customers:
Majority of coal produced in ECL is supplied to Thermal Power Plants. In addition coal is also supplied to various
industries that include Steel, Cement, Sponge Iron, Defence & others.
Transportation, Infrastructure and Logistics:
Following the extraction of coal from a mine/working face, coal is transported to despatch points through tipping
trucks and conveyor belts. Coal is delivered to the customers from the dispatch points through rail, road or
dedicated rail MGR system.
All consignments dispatched are weighed either at ECL owned weighbridges available at our dispatch points or to
the nearest weighbridges owned by Railways. Our sales are either free on rail or free on road from the designated
dispatch points Customers may choose the mode of transport between rail and road. The cost of transportation of
coal from the mines to designated dispatch points is borne by ECL provided such dispatch points are located
within three kilometers from the mines. If the dispatch point from our mines is more than three kilometers but
within 20 kilometers, the customers bear such transportation cost at specified rates as notified by CIL from time
to time. In circumstances where the distance from the dispatch point is more than 20 kilometers from our mines,
the customer bears the actual cost of transportation.
55
The following table shows information relating to various modes of transportation utilized for raw coal dispatch from
our mines:
(in Million Tonnes)
Mode of Despatch
2012-13
2011-12
24.158
19.79
Road
2.117
2.19
Merry-Go-Round(MGR)
9.267
8.51
Total
35.542
30.49
Rail
Pricing of Coal:
The pricing of Non-Coking Coal is presently based on its Gross Calorific Value and that of Coking Coal & Washery
Grade Coal is set on the basis of ash level content. Pricing of coal for Semi Coking Coal is set on the basis of ash
& moisture content level. The coal price is revised considering the escalation in input cost, inflation and landed
cost of imported coal. The final customer price includes basic price and other charges (Cess, Royalties, Excise,
Sales Tax and others). Around 90% of Coal is sold under the long-term fuel supply agreements (FSAs) executed
between ECL and the linked customers. In addition, coal is also sold under E-auction scheme. As advised by Coal
India Limited, we have adopted GCV based coal pricing mechanism with effect from 1st January, 2012. This
change of system from UHV to GCV based coal pricing mechanism has adversely affected the pricing of coal
produced in Rajmahal to the extent of ` 230/- per tonne of coal dispatched. However, the issue has been taken
up with Coal India Limited for revision of price.
Distribution and Marketing Policy:
NCDP has been issued on October 18, 2007 with an objective to meet the demand of coal from consumers of
different sectors of the economy, both on short term and long term basis, in an assured, sustained, transparent
and efficient manner with built- in commercial discipline.
E-Auction Scheme:
The E-Auction scheme of coal has been introduced to provide access to coal for customers who are not able to
source their coal requirement through the available institutional mechanisms under the NCDP. The quantity of coal
to be offered under E-Auction is reviewed from time to time by the MoC. Currently, approximately 10% of aggregate
raw coal production may be offered under E-Auction scheme. The E-auction scheme provides an avenue for
additional coal procurement by customers as well as determination of market price of a particular source/quality
of coal and additional revenue thereof.
Fuel Supply Agreements:
In accordance with the terms of the NCDP, Coal Company has entered into legally enforceable FSAs directly with
the customers or with State Nominated Agencies that in turn enters into appropriate distribution arrangements
with end customers. Our FSAs can be broadly categorized into:
1.
FSAs with customers in the power utilities sector, including State power utilities, private power utilities
(PPUs) and independent power producers (IPPs);
2.
FSAs with customers in non-power industries (including captive power plants (CPPs) and
3.
56
Coal mining by its inherent nature is subject to multiple operational risks like weather, natural disasters
and dangerous mining conditions.
b. ECL being a public sector company is further constrained by stringent labour regulations. The company
also has an ageing workforce.
c. ECL is facing difficulties in land acquisition, particularly in respect of land owned by private parties and
forest land, resulting in delays in some of the projects.
d. Success of expansion projects depends on various factors including obtaining government statutory
clearances, licenses and approvals to proceed with its expansion program.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
ECL has a sound system of Internal Control for efficient running of its business as well as for complying with the
different rules & regulations. The internal control parameters are in-built in the predetermined Actions Plan, Budget,
Delegation of power in such a way that deviations, if any, are promptly reported and reviewed at the appropriate
level.
The Internal control system covers not only all functional areas of the Company, but also all the stages involved
starting with initiation of the proposal and ending with payment/MIS coverage. Apart from different administrative
circulars, there are several manuals like Purchase, Civil, Contract Management etc. which cover the detailed
procedures required to be adhered to in day to day functioning. The manuals/circulars also provide the requisite
checks and balances at the different stages to eliminate any possible lapse in the system. At times, Committees
are also formed at different levels to review the functioning of the existing system to strengthen the internal control
system. In addition, Internal Control Systems in existence are being taken care of by the different Audits/Apex
agencies summarized hereunder:
Internal Audit of systems/transactions by external firms of Chartered/Cost Accountants:
For conducting Internal Audit, external Audit Firms are engaged with specific scope of work on annual basis, for
carrying out audit throughout the year, by the company as per CIL guideline. The firms of auditors submit monthly
report on the specified scope of their audit as well as exceptional reports. Their findings, along-with managements
comments, are placed for discussion in the Audit Committee meetings at both ECL & CIL.
Propriety Audit by C&AG Office:
The C&AG Officials conduct propriety Audit in different Areas/Establishments in which proper justification in
support of expenditures incurred and also the internal control aspects in vogue are reviewed. The deficiencies, if
any, highlighted in the Inspection Report of C&AG Office and Management is required to submit its comment
along with corrective actions taken.
57
2012 13
2011 12
Growth (%)
Gross Sales
12162.59
10695.11
13.72
Less : Levies
2970.68
2433.02
22.10
Net Sales
9191.91
8262.09
11.25
Other Income
548.56
298.62
83.70
Total Income
9740.47
8560.71
13.78
2012-13
2011-12
Growth
Absolute
% age
(Accretion)/Decretion in stock
168.92
44.32
213.24
481.14
649.95
574.22
75.73
13.19
5300.14
5217.06
83.08
1.59
463.82
382.42
81.40
21.29
58
Particulars
2012-13
2011-12
Growth
Absolute
% age
Social Overhead
117.12
79.33
37.79
47.64
Contractual Exp/Repairs
732.59
543.18
189.41
34.87
Other Expenditure
261.29
208.45
52.84
25.35
8.48
0.16
8.32
5200.00
OBR Adjustment
324.59
248.19
() 572.78
230.78
Depreciation/Impairment
203.20
200.90
2.30
1.14
Provision
260.92
188.99
71.93
38.06
1897.18
962.13
935.05
97.18
1655.54
962.13
693.41
72.07
Cash Flows:
( ` in crores)
Particulars
31.03.2013
31.03.2012
603.15
337.95
154.00
543.27
11.51
253.85
1.51
24.22
164.00
265.20
439.15
603.15
Man Power
59
Manpower as on
Category
Increase (+)/
Decrease (-)
31.3.2013
31.3.2012
Executive
2587
2446
Supervisor
5870
6175
305
Ministerial/ Clerical
3954
4416
462
23944
24076
132
Semi-Skilled/ Unskilled
37092
39817
2725
829
1077
248
74276
78009
3733
Badli
Trainee
Total
141
Executive
Non-Executive
Total
INCREASE
Fresh Appointment
219
220
511
511
Reinstatement/Re-joined.
80
80
248
251
146
146
467
745
1212
160
3744
3904
12
12
Death
10
704
714
Resignation
11
17
39
40
145
50
195
62
63
328
4617
4945
VARIATION (A B)
139
3872
3733
Dismissal/Termination
Transfer to other companies
VR under GHS / EVRS
60
Industrial Relations :
The participative style of management facilitates in settling the disputes/grievances amicably thorough discussion.
As a result the industrial relations in the company during 2012-13 remained cordial. Except one strike called by
the Central Trade Unions at All India Level, no strike on issues of ECL level took place during the year. The
statistics relating to Industrial Relation and Law & Order is given below:
Industrial Relations :
Sl No
Subject
2012-13
2011-12
No. of strikes
0.28
0.69
0.17
0.89
2012-13
2011-12
119
159
0.097
0.15
Meetings
2012-13
2011-12
03
03
21
21
2012-13
2011-12
NCWA
738
1079
126
41
Reservation for Schedule Caste (SC) / Scheduled Tribe (ST) and Other Backward Class (OBC) in
recruitment and promotion :
The Presidential Directives in the matter of recruitment of Scheduled Caste (SC), Scheduled Tribe (ST) and Other
Backward Class (OBC) have been implemented in ECL.
61
A total of 332 candidates belonging to SC community and 153 candidates belonging to ST community were
promoted during 2012-13. The representation of SC and ST candidates in total manpower is as under :
As on
Total Manpower
SC Candidates
Number
%
ST Candidates
Number
%
31.03.2013
74276
15319
20.62
7893
10.62
31.03.2012
78009
17614
22.57
8379
10.74
Other Activities :
Sl.
No.
1.
2.
Measurement
Unit
Target for
the Year
Achievement
Number
%
25
100%
64
78 %
0.01
0.021 %
Performance Indicator
62
Sl.
No.
Performance Indicator
Measurement
Unit
Target for
the Year
Achievement
3.
yes
No. of Executives
0.005
0.008
Yes/No
Yes
Yes
Yes/No
Yes
Yes
5.
6.
7.
Nos. of nominations/
national awards
8.
Achieved
% settlement
80%
84%
Number of programs/
date of implemen-
tation of scheme
10.
Achieved
50
62.7 %, Achieved
Yes/ No
Yes
Yes
Number of meetings
20
24
employees representatives
at corporate level
Participation
Survey by External
Nomination filed in
October-2012
in %
11.
12.
13.
llence awards
63
in
Feb13
Achieved,
Sl.
No.
Measurement
Unit
Target for
the Year
Automation
of
employee information
system
Feb13
Achieved,
February-13
Performance Indicator
Achievement
14.
15.
Yes
Yes
16.
Posting of Deputationist
Yes
Yes
17.
30th
June12
Achieved. Report
sent on
16.08.2012
18.
15.09.12
Achieved.Report
sent on
14.09.2012
Sl.
No.
Whether Complied
Performance Indicator
Yes
1.
Para 3 of O.M.
dated 26.11.2008
YES
2.
YES
3.
YES
4.
Para 10 of O.M.
dated 26.11.2008
YES
5.
YES
6.
Annexure-III(iii) of O.M.
dated 26.11.2008
Note-1
7.
YES
64
No
Sl.
No.
Whether Complied
Performance Indicator
Yes
8.
Note-2
9.
YES
10.
Note-3
No
Notes:
Note-1-PMS in place of Bell Curve Approach (not more than 15% graded as Outstanding and 10% to be
graded as below par (no PRP for below par))
Coal India has implemented a robust Performance Management System (PMS) which, inter-alia has provision for
target setting, mid-year review and year-end review. The proforma for executives in E-8 and E-9 grade has been
adopted on the basis as prescribed by DPE. For Executives in E-7 and below grade Coal India has its own
proforma.
Coal India has a committee consisting of Directors and Functional Heads to moderate the final ratings of the
accepted Executives Evaluation Reports (EERs). Going forward, the Company is implementing new Balance
Score Card based PMS which will take care of the requirement of the Bell Curve as per the directives of the DPE.
Here, it would be appropriate to mention that coal mining activity is an extensive team based activity, where not
only executives but also non-executives have to give their best efforts to achieve the targeted goals.
As such, it would be difficult to adhere to lower categorization of 10% of the executives being rated below par.
Additionally, the ratio of executives and non-executives in Coal India is 1:20, which means that each executive has
a large span of control and compulsory rating of 10% of Executive as below par will adversely impact the morale
of the executives, which in turn may directly impact the productivity and production.
Note-2 -Companys Car can be allowed to Executive Director/GM only if they head the projects:
ECL has a large number of underground and open cast mines scattered in 14 Areas. Considering the importance
of coal in the present energy scenario of the country, it is imperative that production in coal mines go uninterrupted,
for which, the executives of the Coal India have responsibility on 24 x 7 basis. Further, considering the hazardous
nature of operations, the executives are also required to be in readiness to ensure safe upkeep and safe operations
in all the mines. Needless to mention that the executives in the subsidiaries are required to be well equipped to
meet any exigencies, for which the conveyance is primary requirement.
Coal India is a holding company, comprising of 8 Subsidiaries which are ScheduleB companies on Standalone
basis and these companies do not have executives in the level of Executive Directors. Consequently, Officers in
the level of General Manager are entrusted with the responsibilities of managing the company affairs as Departmental
Heads ensuring efficient and effective discharge of their functions and they have to be provided with company
vehicles. Similarly, at the Coal India HQs. Level, Head of the Departments who are designated as such and have
the responsibilities of carrying out various assignments are also provided with company vehicles.
65
Note-3- No conflict between Officers Pay Revision and Wage Revision of Workmen:
All along, the wage/salary along with fringe benefits, welfare and service condition etc. of the non-executives was
decided by the joint Bipartite Committee for the Coal Industry(JBCCI) consisting of the representatives of management
including management of SCCL and representatives of five CTUs operating in Coal Industry. This Committee is
constituted as per the direction of the Ministry received from time to time. The aforesaid Committee make an
amicable agreement in the form of National Coal Wage Agreement (NCWA) through the process of collective
bargaining.
Prior to National Coal Wage Agreement-IX (NCWA-IX), NCWA-VIII was signed on 24th January, 2009. The periodicity
of NCWA-VIII was from 1.7.2006 to 30.6.2011 i.e. for five years. The decision of periodicity of five years was
considered after the issuance of O.M. No. 2(7)/05-DPC (WC)-) Part dated 1.5.2008 of DPE. The agreement was
signed with Minimum Guaranteed Benefit (MGB) of 24% of total emolument as on 30.6.2006, and D.A (24%)
became Nil, resulting the minimum wages arrived at ` 8,360/- and minimum of highest grade of the non-executive
arrived at ` 15199.08.
The National Coal Wage Agreement-IX(NCWA-IX) was signed on 31st January, 2012 by the JBCCI-IX with MGB of
25% of total emolument as on 30.6.2011 and DA(56.3%) became Nil as on that date, for a period of five years w.e.f.
1.7.2011 to 30.6.2016. The minimum wages arrived at ` 15712.62 and minimum of highest grade of the nonexecutive arrived at ` 28,566.68.
The salary of the Board level and below Board level executives was decided as per the O.M. dated 26.11.2008
received from DPE. The effective date of the pay revision was from 1.1.2007. The periodicity of the pay revision of
the executives was not mentioned in the aforesaid O.M. The basic pay of lowest executive i.e. E-1 was ` 16,400/
- and E-9 was ` 62,000/From the above, it may not be out of place to mention that the revision of wage/salary of non-executives has been
done from 1.7.2011 to 30.6.2016, whereas the pay revision of executives has been done only in 1.1.2007 and still
continuing which has resulted the wage/salary of lowest rung of non-executives, i.e. Cat-I and Cat-II are getting
less than lowest paid executive, i.e. E-1 and minimum of the rest of the grade/category of non-executive employees
are getting above the E-1 grade executive( ` 16,400/-) but below the E-4 grade executive( ` 29,100/-)
Productivity :
Output per Manshift (OMS) during 2012-13 improved to 1.944 tonnes from 1.678 tonnes of previous year.
Trade Unions:
The majority of our non-executive employees are members of several unions including INTUC, AITUC, HMS, BMS,
UTUC, CITU etc. The executives are members of CMOAI. The wage revision and other conditions of service of nonexecutives employees are governed by the National Coal Wage Agreement (NCWA) formulated by JBCCI. The
JBCCI has signed the MoU for NCWA-IX on 31.12.2011 and consequent from that the NCWA-IX has came into
force with effect from 01.07.2011 for a period of 5 years benefiting all categories of employees excluding executives.
Salaries, perks and allowances etc. of our executive cadre employees are determined by Government of India. The
current compensation package for executives was revised from 1st January, 2007.
66
Training:
We aim to provide continuous training for our employees. Indian Institute of Coal Management (IICM) which was
formed in 1994 by Coal India Limited (CIL) offers training programmes on Advanced Management, Leadership
Development, General Management, Advanced Maintenance practices, Management Development, Training and
Coaching, Career Development and Communication skills. In addition, we have arranged external training including
abroad for a significant number of employees. Apart from IICM, at ECL, we have well equipped HRD centre, VTCs
which provide various training to our staff and executives. HRD also arrange for industrial/ vocational training on
need basis for students of various Institutes.
In 2012-13, company had imparted training to 3790 persons compared to 4866 persons in 2011-12. The details are
given below:
1. Action Plan :
No. of participants
No. of Course
Year
Target
Target
Actual
Exe.
Actual
Supv.
Worker
Total
Exe.
Supv.
Worker
Total
2012-13
124
136
280
500
1025
1805
388
478
1350
2216
2011-12
113
116
260
480
730
1470
477
597
1021
2095
2.
Details of various training provided during the year 2012-13 as compared to 2011-12 :
Nature of Training
2012-13
Exe.
2011-12
Supv.
Worker
Total
Exe.
Supv.
Worker
Total
1.
General/In-Company Training :
1.i)
MOU
388
478
1350
2216
477
597
1021
2095
1.ii)
Non-MOU
383
40
118
541
625
640
452
1717
2.
2.i)
At IICM :
373
373
402
402
15
18
30
30
27
27
12
16
160
160
160
160
87
27
37
151
92
19
116
Nature of Training
3.
2012-13
Exe.
Supv.
Worker
Total
Exe.
Supv.
Worker
Total
0
170
98
23
0
7
98
200
0
246
67
4
0
0
67
250
1449
669
1672
3790
1897
1329
1640
4866
Trainees :
3.a) MT's
3.b) PDPT
4.
Seminar / Workshop
excluding in-company
5.
External (abroad)
TOTAL
3.
2011-12
Sl.
No.
Performance Indicator
Measurement
Unit
Target for
the Year
Achievement
1.
No. of Executives
Achieved. 7
2.
No. of Executives
Achieved. 5
3.
15.30
25.3
4.
5.10
6.11
5.
% of employees
cost
0.184
0.06
6.
(%)
2.04
2.55
7.
(%)
1.02
7.22
8.
Yes (%)
80
160, Achieved
9.
5 quality circles to
be formed
100%
100% Achieved, 6
Quality Circle.
68
Consent for discharge of water and emission of air is being taken for each coal mine on regular basis from
the State Pollution control Boards of West Bengal & Jharkhand while maintaining the statutory provisions
and Rules & Water Pollution Act 1974, Air Pollution Act 1981 and the Environment Protection Act 1986.
b.
Required Water Cess (including arrears) based on consumption of water & demand note from SPCB is
being deposited by all the mines, with the respective State Pollution control Boards, as per the Water
Cess Act 1977.
c.
Annual Environmental Statement in Form V (Rule 14 of Environment Protection Act 1986) is being submitted
to respective State Pollution control Boards.
Cluster
No.
No. of
Mines
Normative
Capacity
Peak Capacity
in MTPA
Lease
Area
11
2.70
3.30
3692
0.36
0.45
1081
3.33
3.97
1628
69
Cluster
No.
No. of
Mines
Normative
Capacity
Peak Capacity
in MTPA
Lease
Area
6.35
7.71
3353
Mohanpur OCP was deleted from Cluster4 by MoEF letter dated 19-03-2013 for
separate consideration of Mohanpur OCP.
But revision of TOR is awaited.
0.485
0.63
2970
1.453
2.25
4775
0.58
0.74
2313
1.53
2.75
8281
15
6.25
8.00
7145.4
10
11
12
19
11
19
7.70
9.10
27.16
7.70
9.90
31.83
6349
4218
13167
Simlong
Expansion
OCP
2.00
2.30
327
of MoEF. This work is being carried out by CMPDIL with financial assurance from ECL to bear annual
expenditure of ` 451.24 lakhs towards monitoring of 111 mines of ECL (Previously only 33 mines). The
same is scheduled to be completed in 2013-14.
Water Management:
Mine water is routed through settling tanks in order to remove the suspended & other solids. This water is
reused for industrial and other purposes. This also acts as aquifer recharger and helps in maintaining
water table. Utilization of water mainly to the benefit of employees as well as local population is summarized
below:
a.
Drinking Water:
A number of old OCPs filled with water are being utilized for fulfilling the needs of its employees and large
population in the surrounding villages. The Public Health Engineering Department of the West Bengal
Government is utilizing the water from the abandoned OCPs at Itapara, West Baraboni to supply filtered
drinking water to a population of 15164. Public Health Engineering Deptt of Jharkhand is taking water from
two abandoned Opencast Quarries namely Rajpura & Hariajam of Mugma Area and supplying water to the
local population in the Nirsa Block.
b.
c.
Pisciculture:
During 2012-13, on the request of State Govt. of West Bengal, 5 abandoned OCP in Salanpur Area and
one in Sripur Area are allotted for the purpose of pisciculture with the participation of the West Bengal.
Land Reclamation:
a.
Back-filling with mining in opencast mines:
Excavation and back filling of de-coaled area in opencast mines is done simultaneously leaving minimum
active mining areas required for mining operation as an integral part of mining method.
b.
c.
i.
Out of the total mine leasehold area of 39.44 sq. km., 12.19 sq. km. is mined out area and 70.55 % of the
mined out area is reclaimed and balance 29.45% is under active mining.
ii.
Analysis of satellite data indicates that 65.26% & 76.90 % area have been reclaimed in Rajmahal and
Sonepur Bazari OC respectively.
iii.
There is an increase of 0.38 Sq. KM of land reclamation compared to last year due to efforts of ECL
towards environmental protection.
71
SD Project and SD Budget for the year 2012-13 were approved by the SD Committee.
2.
For the purpose of Bio-diversity Conservation project, decision was made for plantation of medicinal
plants, flowering plants, fruit bearing plants which are getting depleted and local species should be
selected that would suit to local climate with consultation of forest department.
3.
With regard to energy management it was decided to install solar lamps at various establishments of
ECL.
4.
The committee approved the Rain water harvesting project and advised to take steps for monitoring and
assess the improvement in water table.
Sl.
No.
Performance Indicator
1.
2.
Renewable/Clean/Alternative
uses(Solar Lights)
3.
4.
5.
6.
Measurement
Unit
Target for
the Year
Achievement
Amount (` )
51.67 Lakh
37.00 Lakh
No of projects
undertaken
Completed
No of schemes
Completed
Nos. of Programme
Completed
Completion Time
January,2013
Completed
Energy
Yes
72
Published in
website on
18.12.2012.
ANNEXURE-V
REPORT ON CORPORATE GOVERNANCE:
(1)
Philosophy:
Transparency, accountability and integrity are the main ingredients of good corporate governance.
Your company as a good corporate citizen believes in adhering to the highest standards of
corporate governance. ECL provides appropriate access to information to the citizens of India
under the provisions of Right to Information (RTI) Act, 2005.
(2)
Board of Directors:
(A)
We are a Government company within the meaning of section 617 of the Companies Act, 1956
as Coal India Limited holds entire paid-up share capital. As per Articles of Association the power
to appoint Directors rests with the President of India.
In terms of Articles of Association of the company strength of our Board shall not be less than 3
Directors and not more than 15 Directors. These Directors may be either whole-time Functional
Directors or part-time Directors. The Directors are not required to hold any qualification share.
As on 31st March 2013, Board comprised 12 Directors, out of which 5 were whole-time Functional
Directors including Chairman-cum-Mg. Director.
Director, Ministry of Coal (MoC) was a Govt. nominee representing MoC (w.e.f 01.06.2012).
Director (Finance), CIL was nominated on the Board of Eastern Coalfields Limited (w.e.f
03.12.2012). BIFR has appointed a Special Director on the Board of Eastern Coalfields Limited
w.e.f 24.12.2010. The government also nominated 4 (four) part time non-official directors on the
Board of ECL.
The Directors bring to Board wide range of experience and skills.
DIRECTORS:
During the year 2012-13, Shri Rakesh Sinha was the Chairman-cum-Managing Director of the
Company. The other Directors on the Board of the Company during 2012-13 were Shri A.K.
Sinha (till 31.10.2012), Shri A. Chatterjee (w.e.f 03.12.2012) Shri D.N. Prasad (till 01.06.2012),
Shri V. Peddanna (w.e.f 01.06.2012), Shri K.K. Gautam, Shri Subrata Chaudhuri, Shri S.K. Mohanty,
Shri S.M. Lodha, Shri S.M. Sharma, Prof. (Dr.) M.K. Srivastava (till 07.06.2012), Shri S.K.
Srivastava, Shri S. Chakravarty, Shri A.K. Soni (till 31.01.2013), Shri C.K. Dey (w.e.f 01.02.2013)
and Shri Ramesh Chandra (w.e.f 04.03.2013).
Brief profile of Directors is enclosed as Annexure - A.
Service Contract:
Directors of the company are appointed by the President of India. The terms and conditions of
appointment of Whole-time Functional Directors are decided by the President of India in terms of
73
Articles of Association of the Company. BIFR has appointed a Special Director on the Board of
Eastern Coalfields Limited and the terms and conditions of his appointment are laid down by
BIFR. The terms and condition of non-official part time directors are laid down by the Ministry of
Coal.
(B)
Board Meetings:
Meetings of Board of Directors are normally held at Sanctoria/Kolkata for the convenience of
Directors. Company has well defined procedures for meetings of Board of Directors and
Committees thereof so as to facilitate decision making in an informed and efficient manner.
During the financial year ended 31st March 2013, 8 Board meetings were held as against the
minimum requirement of 4 meetings. The details of the Board meetings are as follows:
Board of Directors
Functional
Part-time
Official
Date
Total
Strength
Present
Strength
Present
Strength Present
18.05.2012
12
24.07.2012
11
11
04.08.2012
11
11
19.09.2012
11
10
05.11.2012
10
28.01.2013
11
16.02.2013
11
24.03.2013
12
12
Details of number of Board meetings attended by each of the Directors are given below :
Sl.
No.
Board Meetings
Directors
Attended
No. of other
Directorships
Functional Directors:
1
NIL
NIL
Shri S. Chakravarty
Director (Technical) Opn.
NIL
74
Board Meetings
Sl.
No.
4
Directors
Attended
No. of other
Directorships
NIL
NIL
NIL
Shri V. Peddanna
Director, MoC
(w.e.f 01.06.2012)
NIL
Shri A.K.Sinha
Director (Finance), CIL
(up to 31.10.2012)
Shri A. Chatterjee
Director (Finance), CIL
(w.e.f 03.12.2012)
NIL
10
Shri K.K.Gautam
Part Time Non-Official Director:
12
13
NIL
14
NIL
15
16
NIL
75
(C)
(i)
Functional Directors :
Remuneration for the year 2012-13
(Amount in ` )
Name
Designation
benefits
Total
3102276
36990
3139266
2311949
23600
2335549
2422077
2422077
Director (Finance)
(Upto 31.01.2013)
4613001
12140
4625141
Director (Finance)
(From 01.02.2013)
357356
357356
(ii)
Chairman-cum-Mg. Director
Other
(iii)
Sl. No.
3.
265956
122360
176068
156068
232248
TOTAL
952700
Board Committee:
[A]
Audit Committee:
Your Company has an independent Audit Committee. The composition, procedures, powers and role/
functions of the Audit Committee, constituted by the Company is to comply with the requirements of the
Companies Act, 1956.
Overseeing of the companys financial reporting process and the disclosure of its financial information to
ensure that the financial statement is correct, sufficient and credible.
2.
3.
Recommendation to the Board for fixation of fees to statutory auditors for any other services rendered by
the statutory auditors.
4.
Reviewing, with the management, and ensuring that the annual financial statements are in compliance
with applicable laws before submission to the Board for approval, with particular reference to:
a)
5.
b)
c)
Major accounting entries involving estimates based on the exercise of judgment by management;
d)
Significant adjustments made in the financial statements arising out of audit findings;
e)
f)
g)
h)
The management discussion and analysis of financial condition and results of operations.
Reviewing, with the management, the quarterly financial statements before submission to the Board for
approval.
6.
Reviewing with the management, performance of internal auditors and adequacy of the internal control
systems.
7.
Reviewing the adequacy of internal audit function, if any including the structure of the internal audit
department, staffing and seniority of the official heading the department, reporting structure coverage and
frequency of internal audit and the information regarding appointment and / or removal of Internal Auditor.
8.
Discussion with internal auditor and / or auditors any significant findings and follow up thereon.
9.
Reviewing the findings of any internal investigations by the internal auditors / auditors / agencies into
matters where there is suspected fraud or irregularity or a failure of internal control system of a material
nature and reporting the matter to the Board.
10. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as
well as post-audit discussion to ascertain any area of concern.
11. Looking into the reasons for substantial default in the payment to the depositors, debenture holders,
shareholders (in case of nonpayment of declared dividends) and creditors.
12. Reviewing the functioning of the Whistle Blower Mechanism.
13. Reviewing the follow up action on the audit observations of the C&A G.
14. Any difficulties encountered during audit work including any restrictions on the scope of activities or
access to required information.
77
15. Reviewing the follow up action taken on the recommendations of Committee on Public Undertakings
(COPU) of the Parliament.
Composition :
Audit Committee comprised of 2 (Two) part-time official directors viz S/Shri A.K. Sinha and D.N. Prasad,
4 (four) part-time non-official directors viz. S/Shri S.K. Mohanty, Prof. (Dr.) M.K. Srivastava, S.M. Lodha
and S.M. Sharma, 1 (one) Special Director viz. Shri K.K. Gautam and 1 (one) Functional Director viz. Shri
S. Chakravarty, Director (Technical) Operations. Shri D.N. Prasad ceased to be a member of the committee
w.e.f 01.06.2012. Prof. (Dr.) M.K. Srivastava ceased to be a member of the committee w.e.f 07.06.2012.
Audit Committee was reconstituted by the Board on 04.08.2012 and Shri V. Peddanna, Director, MoC
was made a member of the committee. Audit Committee was once again reconstituted on 05.11.2012
and Shri S. Chaudhuri, part-time non-official director, was made a member of the committee in addition to
the existing members.
Director (Finance) and General Manager (F)/HOD (IA) are the permanent invitee to the Audit Committee
and Company Secretary is Secretary to the Committee.
Shri S.K. Mohanty was Chairman of the Committee upto 05.11.2012 and subsequently with the
reconstitution of Audit Committee, Shri S.M. Sharma, Part-time Non-Official Director was appointed as
the chairman of the Audit Committee w.e.f 05.11.2012.
8 (eight) meetings of the Audit Committee were held during the financial year 2012-13. The details of the
Audit Committee Meeting are as follows:
Members
Date
Functional
Part-time
Official
Part Time
Non-Official
Total
Strength
Present
Strength
Present
Strength
Present
Strength
Present
16.04.2012
17.05.2012
24.07.2012
04.08.2012
19.09.2012
04.11.2012
28.01.2013
01.03.2013
78
Sl. No.
Members
No. of
respective tenure of
members
Meetings
attended.
Shri S. Chakravarty
10
[B]
Remuneration Committee
Remuneration Committee was constituted in the 250th meeting of Board. The Committee consists of Shri
S.K. Mohanty, Shri S.M. Lodha, Prof. (Dr.) M.K. Srivastava (till 07.06.2012), Shri K.K. Gautam and Shri
S.K. Srivastava. Company Secretary is the secretary to the Committee.
Scope of the Committee: The committee would deal the issues which would be referred to it by the Board
from time to time.
No meeting of this committee was held during the year.
[C]
Committee on Sundry Debtors
A Committee on Sundry Debtors was constituted in the 248th meeting of Board. The Committee consists
of Shri S.M. Lodha, Shri K.K. Gautam, Shri S.M. Sharma, Shri S. Chakravarty and Shri A.K. Soni. The
Chairman of the Committee was Shri S. M. Lodha. Company Secretary was secretary to the committee.
The Committee was dissolved in the 257th meeting of ECL Board held on 05.11.2012.
3 (three) meetings of the Committee on Sundry Debtors were held during the financial year 2012-13, i.e
on 28.04.2012, 03.08.2012 and 04.11.2012. The details of members and their attendance at meetings are
given below:
Sl. No.
Members
No. of Meetings
attended
Shri S. Chakravarty
79
[D]
of Projects
In the 246th meeting of the Board, a Committee for Evaluation, Appraisal and Approval of projects was
constituted. During the year 2012-13 4 (four) meetings of the Committee for Evaluation, Appraisal and
Approval of Projects were held i.e on 24.07.2012, 04.08.2012, 05.11.2012 and 28.01.2013. The Chairman
of the Committee is Shri Rakesh Sinha. The details of members and their attendance at meetings are
given below:
Sl. No.
Members
No. of Meetings
attended
Shri V. Peddanna
Shri S. Chakravarty
[E]
Committee on Sustainable Development.
A committee on Sustainable Development was constituted by ECL Board in its 249th Meeting held on
29th December, 2011. The Chairman of the Committee is Shri Subrata Chaudhuri. During the year 201213, only 3 (three) meetings of the Committee on Sustainable Development were held i.e on 04.08.2012,
17.10.2012 and 24.03.2013. The details of members and their attendance at meeting are given below:
Sl. No.
Members
No. of Meetings
attended
[F]
Committee on Research & Development Activities.
A committee on research & Development was constituted by ECL Board in its 249th Meeting held on 29th
December, 2011. The committee consists of Shri Subrata Chaudhuri, Shri S.M. Sharma, Shri K.K. Gautam
and Shri S.K. Srivastava. The Chairman of the Committee is Shri Subrata Chaudhuri. The Company
Secretary is secretary to the committee.
No meeting of this committee was held during the year.
Statutory Auditors:
Under Section 619(2) of the Companies Act, 1956 the following Chartered Accountants Firms were appointed by
the Comptroller and Auditor General of India for conducting audit of the financial accounts of the company for the
year 2012-13:
Statutory Auditors :
1.
M/s. Dutta Sarkar & Co., 7A, Kiran Sankar Roy Road, 2nd Floor, Kolkata-700001
80
Branch Auditors :
2.
3.
M/s. Roy Ghosh & Associates, 39, Kalna Road, Badamtala, Burdwan-713401
4.
M/s. L B Jha & Co., GF-1, Gillander House, 8, Netaji Subhas Road, Kolkata- 700001
5.
6.
M/s. J. Gupta & Co., 3, Satyanarayan Temple Road, 1st Floor, Bandaghat, Howrah-711106
Place
Attendance
Resolution,
if any
2009-10
22.05.2010
11:00 AM
Sanctoria
2010-11
23.05.2011
11:00 AM
Sanctoria
2011-12
21.05.2012
4:00 PM
Sanctoria
No Special Resolution was passed through postal ballot at any of the General Meetings of the members held
during the above three years.
4.
DISCLOSURES:
(a)
Related Party Transactions:
As per the disclosures given by the Directors of the company there were no related party
transactions that have potential conflict with the interest of the company at large.
81
(b)
(c)
Accounting Treatment:
The financial statements are prepared in accordance with applicable mandatory Accounting
Standards and relevant presentational requirements of the Companies Act, 1956.
(d)
5.
Means of Communications:
Annual Report, Operational and financial performance of the company is uploaded in companys website
www.easterncoal.gov.in.
Apart from Annual Accounts, quarterly review of accounts is also conducted by the statutory auditors of
the company.
6.
Audit Qualifications:
It is always the companys endeavour to present an unqualified financial statement. Management reply to
the statutory auditors observations on the accounts of the company for the year ended 31st March, 2013
are furnished as an Annexure to Directors Report. Comments of the Comptroller and Auditor General of
India under section 619(4) of the Companies Act, 1956 on the accounts of Eastern Coalfields Limited for
the year ended 31st March, 2013 are also enclosed.
7.
8.
9.
10.
Against MoU Target of 85% grading on the basis of the Compliance with guidelines on Corporate Governance
issued by DPE the actual achievement is 95%. The actual date of submission to DPE of completed datasheet for PE Survey was 14.09.2012.
82
ANNEXURE - A
PROFILE OF DIRECTORS
Brief resume of all Directors, nature of their expertise in specific functional areas and names of companies in which
they hold Chairmanships, Directorships, Memberships of Board / Committees are given below.
Shri Rakesh Sinha (58) has graduated mining engineering in 1977 from National Institute of Technology, Raipur.
He also holds First Class Mine Managers Certificate of Competency (COAL). He joined Coal India limited on 18th
November, 1977 and was posted at Bharat Coking Coal Limited as Junior Executive Trainee. Thereafter he worked
in different capacities in various mines of BCCL including prestigious Moonidih Project, the first completely
mechanised mine in India.
Shri Sinha was transferred to South Eastern Coalfields Limited in April, 1989, where he worked in different capacities
like Superintendent of Mines/ Manager, Project Officer, General Manager and Technical Secretary to Director
(Technical) OP, SECL. He also worked as Project Officer of prestigious high capacity Gevra Opencast Project
where on 18.03.2007 coal production reached to a level of 1.00 L.Te, which was ever highest till then from a single
project on a day in the history of Coal India Limited. Subsequently in April, 2007 on promotion as Chief General
Manager he was again transferred back to his parent Company i.e., BCCL and took over the charge of Chief
General Manager, Lodna Area.
Shri Sinha was selected for the post of Director (Technical), Bharat Coking Coal Limited in September 2007 and
joined as Director (Technical) Operation in June, 2008. Under his dynamic leadership there were remarkable
improvements in different spheres at BCCL.
Due to his proven track record and managerial capability he was selected as Chairman-cum-Mg. Director, Eastern
Coalfields Limited in August, 2010. He took over as Chairman-cum-Mg. Director on 23rd December, 2010. He has
a vast experience as practicing Mining Engineer in different mining conditions.
After taking over the charge of Chairman-Cum-Managing Director by virtue of implementation of different action
plans, enforcement of strict discipline, maintaining proper liaison with Administration and close monitoring by him
the Company consistently maintained all round improvement in all the fields of Production, Productivity, Despatch,
Profitability and Welfare/CSR activities as well. During 2012-13 new records were created surpassing all the past
achievements in a number of fields like highest ever Coal Production, Off-take, OB Removal, Productivity, Capacity
Utilisation, Profitability etc. since inception of the Company. It is expected that under his dynamic leadership the
company is poised to come out of the BIFR by the end of current fiscal 2013-14 i.e. a year ahead of the projection
in the modified revival plan.
Sri Sinha visited different countries of Europe and China in connection with Powered Support Longwall equipment
and global leadership programme arranged by IMI, Delhi. He also accompanied the business delegation to Mongolia
lead by Honble President of India during July 2011. In Sept 2012 he visited USA in connection with MINE EXPO
and Mine visit at Wyoming State.
Shri Sushil Kumar Srivastava (59) is a 1971 batch Science Graduate from Meerut University. He became
Associate Member of The Institute of Company Secretaries of India (ICSI) in 1977 and now he is Fellow Member of
83
ICSI. He holds Degree in Law from Meerut University with Diploma in Personnel Management and Industrial
Relations and also Post Graduate Diploma in Human Resource Management. Shri Srivastava is also Life Member
of National Institute of Personnel Management (NIPM).
Shri Srivastava has more than 35 years experience in senior management level discharging multifarious functions
in reputed organisations. He joined Coal India Limited in August 1990 as Company Secretary and posted at
Northern Coalfields Limited. He was transferred to Western Coalfields Limited in October 2006. Both in Northern
Coalfields Limited and Western Coalfields Limited he had an opportunity to interact and coordinate with Board
level executives, different departmental heads and acquainted good exposure in all facets of coal industry including
Personnel Management and Industrial Relations. He joined Eastern Coalfields Limited as Director (Personnel)
from 1st February 2008.
Shri Srivastava has attended various seminars, training programmes including Advance Management Programme
of Administrative Staff College, Hyderabad when he also visited SDA, Bocconi University in Milan, Italy and other
European Countries from 11.09.2011 to 24.09.2011 and AMP (overseas) organised by Indian Institute of Coal
Management, Ranchi when he visited Australia for study tour from 25.11.2007 to 01.12.2007.
Sri Subrata Chakravarty, working as Director (Technical) in Eastern Coalfields Ltd. (A subsidiary of Coal India
Ltd.), was born on 06-03-1958.
Having initial school education at Patha Bhawana, Santiniketan, he pursued his Graduation in Mining Engineering
from Indian School of Mines, Dhanbad in the year, 1979. Thereafter, acquired Master of Computer Application from
BIT, Mesra in the year 1997. He was awarded William Selkirk Scholarship and Haarlem-E-West Scholarship for
higher studies in Imperial College of Science & Technology, London, which remained unavailed.
Sri Chakravarty has a vast practical experience in Mining Industry for more than 32 years. He has worked in
different capacities of Management Administration, Production, Planning Functions in underground as well as
opencast mines of CCL, BCCL, NCL and ECL. Prior to joining as Director Technical in ECL, he worked in various
capacities like Chief General Manager/Technical Secretary to Chairman, Coal India Ltd., Chief General Manager,
Amlohri Project, Northern Coalfields Ltd. He has an excellent track record of various performance indicators which
has always been appreciated.
Sri Chakravarty has widely travelled foreign countries like U.S.A., Russia, Belarus, Germany, Switzerland, France,
China, Singapore etc., as a part of Indian Delegation, U.N.D.P. and official tours. Sri Chakravarty is interested in
reading books, singing and is a keen follower of all sports.
Sri Chandan Kumar Dey, Director (Finance) of Eastern Coalfields Limited was born in Kolkata on 10th September,
1958.
Sri Dey completed his schooling from Kendriya Vidyalaya in 1975 and graduated from Calcutta University in
Commerce with Honours in Accountancy in the year 1978. Sri Dey is a Chartered Accountant and Cost Accountant.
Sri Dey has wide experience of over 32 years and served in different organizations of repute including Lovelock &
Lewes, Dunlop India Ltd., NICCO Group, Balmer Lawrie & Co. Ltd. & Oil India Limited.
During his professional career Sri Dey headed the Accounts, Treasury, Taxation and Internal Audit functions and
served as Chief Finance Officer. Sri Dey also headed the operations of Balmer Lawrie & Co. Ltd. in the United
Kingdom for 3 years as Chief Operating Officer based in UK. Sri Dey has travelled extensively within India and
84
Foreign countries like UK, France, Germany, Switzerland, USA, Hong Kong, UAE and the Central Asian Republics
on official assignments.
Sri Dey is interested in reading books and loves music.
Sri Ramesh Chandra, 58 Years, Son of Late Hari Krishna graduated in Mining Engineering in 1976 from Indian
Institute of Technology, Banaras Hindu University, Varanasi and also holds 1st Class Mine Managers Certificate of
Competency (Coal) and qualified for 1st Class Mine Managers Certificate of Competency (Metaliferous). He is
recipient of B.H.U. Gold Medal and Roberton Medal (from MGMI). He joined Coal India Limited on 20th of September,
1976 and was posted at Bharat Coking Coal Limited as Junior Executive Trainee. Thereafter, he worked in different
capacities in various mines of B.C.C.L. including more than 17 Years in prestigious Moonidih Project, the first
completely mechanized U/g mine in India with Longwall technology and other modern mining method; besides the
conventional mines of Board and Pillar system with both stowing and caving method of extraction of coal. He did
M.Tech (Mining Engg.) from Indian School of Mines, Dhanbad in 1987 after joining CIL. He has vivid experience in
coal mining for more than 36 years in various capacities of Management, Administration, Production, Planning,
Ventilation in Underground as well as Opencast Mines of BCCL, SECL, MCL & NCL of Coal India Ltd. including
ventilation of large highly gassy Degree-III Mines.
Sri Chandra was transferred and posted in SECL in May, 2002, where he worked in different capacities like Project
Officer, Dy. G.M. and General Manager both in conventional and mechanized mines including open cast working
with draglines.
Subsequently, on promotion in October, 2007, he was transferred to Mahanadi Coalfields Ltd. and took over the
charge of CGM, Orient Area, which has thick seam mining with middle level mechanization, with the deployment
of LHD and UDM. In July, 2009, he was transferred to Northern Coalfields Limited, where he headed Safety Division
for about 3 years and about one year in Mega open cast project having 4 nos. of draglines and other major
achievements. Sri Chandra has a remarkable contribution to the overall growth in production, safety standards and
profit including environmental clearance of Bina Project from 6.0 M.T. to 7.5 M.T.
He has also visited U.S.S.R. in connection with equivalent material modeling for strata control. He is a life member
of Profession bodies, Institution of Engineers, MGMI etc. since long.
Due to his proven track record and managerial capacity, he has been selected as Director (Technical) in Eastern
Coalfields Limited in October, 2012 and has taken over the charge of the Office of Director (Technical) on 4th
March, 2013.
Sri V. Peddanna, (58) is the Director in the Ministry of Coal since May, 2011. Shri Peddanna graduated in
Agriculture Sciences from Andhra Pradesh Agriculture University, Hyderabad. He has done Executive Masters in
International Business from the Indian Institute of Foreign Trade. Further, he obtained M. Phil degree from Punjab
University on Public Administration. His experience spanning 23 years include 4 years in the Ministry of Health &
Family Welfare, 7 years in Department of Elementary Education in the Ministry of Human Resource Development,
5 years in the Ministry of Commerce & Industry and 3 years in Ministry of Personnel, Public Grievances L&
Pensions. Before joining the Board of Eastern Coalfields Limited as representative of Govt. of India, he has worked
as Govt. nominee on the Board of Directors of Northern coalfields Limited.
85
Sri Abhijit Chatterjee, ACA has assumed the charge of Director (Finance), Coal India Limited from 01.11.2012.
Prior to this, he was working as Director (Finance) in Central Coalfields Limited from 08.03.2010. Before his joining
in CCL, he has worked in Bharat Earth Movers Ltd (BEML) in the capacity of General Manager, Chief General
Manager and Executive Director (Finance) from 01.10.1997 till 05.02.2010. He is also on the Board of South
Eastern Coalfields Limited as Part Time Official Director.
He has rich experience in financial management of the company and has made significant contribution in BEML
viz Treasury Management, Customs Excise Duty, Service Tax, Insurance, Rail & Metro and Defence Product
business marketing etc. Due to his efforts along with team members, BEML got benefit of around 8 crores in the
area of Treasury Management. He was instrumental in arranging Marine-cum-storage-cum-erection Policy covering
the risks of transit, storage, construction, fabrication, installation and commissioning in respect of Bangalore
Metro Rail business for a period of 82 months from 18.02.2009 valued at ` 3.58 crores (approx.) payable in 15
instalments. He has also arranged Professional Indemnity Insurance to cover any risk arising out of professional
negligence and errors in the design works from the period of commencement of work till 5 years after the date of
issue of the performance certificate valued at ` 4.25 crores (approx.) in 4 instalments. These insurance covers
were arranged for the first time in BEML by involving quotes for 10 underwrites in a very transparent manner within
a period of 47 days only. He has also contributed in settling matters on Customs and Excise Duty related cases
and as a result the company saved a substantial working capital of ` 54.86 crores.
On behalf of CCL, he has organized promotion of IPO floated by CIL. As a team leader of Coal Companies, he took
up interest claim against HPGCL for delayed payment of coal dues and ensured quick, logical and favourable
decision of Umpire in favour of Coal Companies to the extent of ` 75.00 crores (approx.). He has ensured improving
realization from JSEB and TNVL. M/s. TNVL has signed FSA with CCL due to tremendous persuasion.
He has attended Senior Management course at MDI, Gurgaon and also undergone training at various Management
schools at Europe.
Shri Subrata Chaudhuri (66) is a Chair Professor in the Department of Mining Engineering, Indian School of
Mines. Before joining academia, he served Indian coal sector for nearly four decades in production, planning and
in Ministry of Coal (Govt. of India), and retired as CMD of CMPDI Ltd, a subsidiary of Coal India Ltd. Currently, he
is also a non-official part time Director on the Board of SAIL.
A graduate in Mining Engineering from University of Calcutta and post-graduate in Opencast Mining from Indian
School of Mines, Shri Chaudhuri holds the professional First Class (Coal) Mine Managers Certificate of Competency
issued by Ministry of Labour and Employment (India) for managing coal mines. He is a Fellow of Institution of
Engineers (India) and a recognized qualified planner (RQP) in the panel of Ministry of Coal, Government of India.
Shri S.K. Mohanty, (65) joined the Indian Revenue Services in 1972. He retired as Chief Commissioner of Income
Tax (CCIT), Orissa Bhubaneswar. He holds a masters degree in History and has also been trained at Indian
Institute of Foreign Trade, New Delhi. During his tenure as an IRS Officer he held various prestigious posts such as
Dy. Director/Dy. Secretary, DGS&D, Ministry of Supply, GoI, Director (Finance) and acting CMD of Orissa Power
Generation Corporation (OPGC), Government of Orissa. He also held the post of CIT Chennai, CIT
Vishakhapattanam, CIT Hyderabad, Chief CIT Hyderabad, Chief CIT Mumbai. His areas of specialisation/ expertise
are Financial Management, Taxation, Administration and other commercial matters. In 1988 Shri Mohanty won the
86
Union Finance Ministers Highest Award for excellence in the field of collection and administration of Direct Taxes
in India. Presently he is also Advisor (Finance & Taxation) to some corporate entities (both Indian and foreign).
Shri S.M. Sharma, (67) by profession is a business strategic advisor from Kanpur. He joined the ECL Board as
a Financial Expert and Part-time Non-official Director. He holds Bachelors Degrees in Law and Economics. He
has wide and varied experience in auditing and has conducted the audit of various PSEs such as SBI, LIC,
TAFCO, UP Bridge Corporation etc. He has also conducted audit of various reputed private sector companies
such as Jagran Prakashan Limited (Dainik Jagran), Kothari Products Limited (Pan Parag), Rotomac Global Pvt.
Ltd., Frontier Construction Co. Ltd., Miniature Bulb Industries Limited, Hitech Bio Sciences Ltd. etc. He is also on
the panel for ADR i.e. Alternate Dispute Resolution/Redressal via mediation pertaining to investors grievances of
NSE w.e.f 2012.
Shri Sharma is an expert in the field of business management, tax planning and consultancy. He has attended/
participated in various professional seminars and workshops from time to time in India as well as abroad in UK,
USA, France and Germany. He is Group Advisor to the Boards of Jagran Prakashan Ltd. (Dainik Jagran) and
Rotomac Global Pvt. Ltd. He is also associated with Rave-3 Multiplex from the stage of ideation, conceptualisation
to implementation and its successful operation.
Shri Sharma has been actively engaged in many social, charitable, environmental and cultural NGOs and
associations.
Shri SM Lodha (62) is an Honours Graduate in Commerce, Law and MBA. He has over 36 years of cross industry
experience in large Corporates and has been associated as Chief Executive Officer, advisor, and board member of
reputed companies. He is on the board of SJVN Limited, Indsur Gears Limited, India Trade Promotion Organisation,
Indsur Global Ltd., Crystal Palace Properties Pvt. Ltd., Indsur Stelcor Services Pvt. Ltd. He is well known name in
the Financial Sector. Recently, International whos who society, USA has recognized him as one of the new
member of appear in the 2011-2012 edition of international whos who of professionals having demonstrated
exemplary achievement and distinguished contribution to business community.
Shri Krishna Kumar Gautam (67) is a M.Sc., L.L.B and worked as Senior Vice-President of National Bulk
Handling Corporation Limited since 2007. He worked as Sr.Vice President of National Collateral Management
Services Limited during 2006-07. He was also associated with Food Corporation of India in various capacities
including Executive Director during the period from 1986 to 2006. He also worked as CEO of Agra Divisional
Development Corporation from 1977 to 1986. He also worked in Bank of Baroda in various capacities from 1969 to
1977. He is an expert in Agro-commodities business including trading, Collateral Management and providing end
to end solutions. He is also an expert in managing the Industrial Enterprises, Finance & Banking and various laws.
He is also a Member of all Committees of Board of Eastern Coalfields Limited. He is also a fellow and member of
Indian Council of Arbitration.
87
ANNEXURE - VI
7A, Kiron Sankar Roy Road,
2nd Floor,
Kolkata - 700 001
DUTTA
SARKAR & COMPANY
CHARTERED ACCOUNTANTS
Telephone : +91 33 2248 1760 / 2213 1333 / 2248 3297, Telefax : +91 33 2282 4889 / 2210 3885
E-mail : info@duttasarkar.com / dusac.2009@rediffmail.com
Website : www.duttasarkar.com
88
ANNEXURE - VII
(ii)
Sl.No.
Description
2012-13
(A)
0.00
1386.00
NIL
0.00
2118.00
2897.00
7.00
14.00
0.00
0.00
0.00
0.00
548.00
695.00
1941.00
5724.00
Nil
Nil
5. Others
Total
(B)
2011-12
89
ANNEXURE - V III
FORM - B
2.
3.
4.
CONFIDENTIAL
OFFICE OF THE
PRINCIPAL DIRECTOR OF COMMERCIAL AUDIT & EX-OFFICIO
MEMBER AUDIT BOARD-II, KOLKATA
Old Nizam Palace, 234/4, Acharya Jagadish Chandra Bose Road,
Kolkata -700 020
No. : 44 / CA / LA-1 / Accounts / ECL / 2012-13
{XZmH$ / Dated 20 May, 2013
To
The Chairman-cum-Managing Director,
Eastern Coalfields Limited,
Sanctoria,
West Bengal
Sub. : Comments of the Comptroller & Auditor General of India under
Section 619(4) of the Companies Act, 1956 on the Accounts of
Eastern Coalfields Limited for the year ended 31st March, 2013.
Sir,
I forward herewith the Comments of the Comptroller & Auditor General of India under Section
619(4) of the Companies Act, 1956 on the Accounts of Eastern Coalfields Limited for the year ended
31st March, 2013.
The receipt of this letter may please be acknowledged.
Encl. As stated.
Yours faithfully,
sd/(Yashodhara Ray Chaudhuri)
Principal Director of Commercial Audit
& Ex-Officio Member, Audit Board - II
Kolkata
Kolkata
Dated : 20.05.2013
91
The preparation of financial statements of Eastern Coalfields Limited for the year ended
31st March, 2013 in accordance with the financial reporting framework prescribed under the
Companies Act, 1956 is the responsibility of the management of the company. The statutory
auditors appointed by the Comptroller and Auditor General of India under Section 619(2) of the
Companies Act, 1956 are responsible for expressing opinion on these financial statements
under section 227 of the Companies Act, 1956 based on independent audit in accordance with
the auditing and assurance standard prescribed by their professional body, the Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report
dated 19.05.2013.
I, on the behalf of the Comptroller and Auditor General of India have conducted a supplementary audit under section 619(3) (b) of the Companies Act, 1956 of the financial statements of
Eastern Coalfields Limited for the year ended 31 March, 2013. This supplementary audit has
been carried out independently without access to the working papers of the statutory auditors
and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records. On the basis of my audit nothing significant
has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditors report under section 619 (4) of the Companies Act, 1956.
For and on behalf of the
Comptroller & Auditor General of India
Kolkata,
Dated : 20.05.2013
92
Management's Reply
It is a statement of fact.
It is a statement of fact.
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 the Act). This responsibility
includes the design, implementation and maintenance of internal
control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
3.
Opinion
In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give, the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a)
It is a statement of fact.
in the case of Statement of Profit and Loss, of the profit for the year
It is a statement of fact
in the case of the Cash Flow Statement, of the cash flows for the
It is a statement of fact
Emphasis of Matter
i)
areas/ units under open sky. These are exposed to the risk of
93
made.
It is a statement of fact.
5.
1.
It is a statement of fact.
Order) issued by the Central Government of India in terms of subsection (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the
Order.
2.
It is a statement of fact.
a.
It is a statement of fact.
best of our knowledge and belief were necessary for the purpose of
our audit;
b.
It is a statement of fact.
the Balance Sheet, Statement of Profit and Loss, and Cash Flow
It is a statement of fact.
Statement dealt with by this Report are in agreement with the books
of account [and with the returns received from branches not visited
by us];
d.
It is a statement of fact.
It is a statement of fact.
95
It is a statement of fact.
MANAGEMENT'S REPLY
1.
(a)
fixed assets except for assets taken over from Coal Mines Authority
mutation has been made only for 4368.74 hectares of land leaving
Company.
(b)
96
It is a statement of fact.
The Company has not disposed off any substantial part of its fixed
It is a statement of fact.
(a)
It is a statement of fact.
It is a statement of fact.
It is a statement of fact.
The Company has neither granted nor taken any loan secured or
It is a statement of fact.
It is a statement of fact.
a)
97
It is a statement of fact.
b)
It is a statement of fact.
The company has not accepted any deposit from the public during
It is a statement of fact.
the year under section 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the Rules framed there under.
7.
It is a statement of fact.
It is a statement of fact.
by the Central Government under section 209 (1) (d) of the Companies
Act, 1956 in respect of coal mining. As informed to us that the
prescribed cost records and accounts have been made and
maintained. However, we have not made a detailed examination of
the records with a view to determine whether they are accurate or
complete.
9.
a)
It is a statement of fact.
It is a statement of fact.
It is a statement of fact.
It is a statement of fact.
12.
It is a statement of fact.
It is a statement of fact.
It is a statement of fact.
We are informed that the Company has not given any guarantee for
It is a statement of fact.
The Company has not raised any term loan during the period under
It is a statement of fact.
audit.
17.
It is a statement of fact.
It is a statement of fact.
It is a statement of fact.
It is a statement of fact.
99
It is a statement of fact.
100
2008
2009
0.41
0.41
260.41
309.28
684.34
321.12
628.70
852.64
17.78
18.25
114.62
95.64
1705.85 1596.93
3754.06 4056.40
-2048.21 -2459.47
0.00
0.00
-500.98 -1110.50
4794.90
3488.87
1306.03
42.53
4706.47
3203.55
1502.92
43.90
1608.54
-1110.50
0.38
0.34
4920.65 5030.21
3660.27 3789.40
1260.38 1240.81
49.20
41.34
0.31
5217.34
3983.67
1233.67
39.85
404.49
427.28 331.42
323.83
276.07
269.15 269.84
338.11
1314.80
846.71 664.36
688.98
35.45
35.99
42.75
48.35
143.17
132.66 138.00
130.33
2173.98 1711.79 1446.37 1529.60
4137.63 3449.62 3987.79 5120.22
-1963.65 -1737.83 -2541.42 -3590.62
0.00
0.00
0.00
0.00
-659.54 -427.87 -1258.93 -2316.79
0.41
4831.90
3568.83
1263.07
40.63
1668.15
-659.54
2007
1361.22
-500.98
2006
2005
2218.45 2218.45
0.00
0.00
-4789.29 -5618.33
0.00
0.00
708.64
680.84
2004
NOTE : FIGURES FOR THE YEAR 2010-11, 2011-12 & 2012-13 ARE AS PER REVISED SCHEDULE VI
APPLICATION OF FUNDS :
FIXED ASSETS :
GROSS BLOCK.
LESS : DEPRECIATION.
NET BLOCK.
CAPITAL W.I.P.
INTANGIBLE ASSETS UNDER DEVELOPMENT
NON CURRENT INVESTMENTS.
DEFERRED TAX ASSETS
OTHER NON CURRENT ASSETS
OTHER LONG TERM LOANS AND ADVANCES
CURRENT ASSETS, LOANS & ADVANCES:
CURRENT INVESTMENTS.
INVENTORIES.
SUNDRY DEBTORS.
CASH & BANK BALANCE
OTHER CURRENT ASSETS.
LOANS AND ADVANCES.
SUB-TOTAL.
LESS : CURRENT LIABILITIES
NET CURRENT ASSETS.
MISC. EXPENDITURE.
TOTAL :
SOURCES OF FUNDS :
SHARE CAPITAL
CONVERSION OF LOAN INTO EQUITY
RESERVE AND SURPLUS.
INTEREST ACCRUED AND DUE.
LOAN FUNDS.
OTHER NON CURRENT LIABILITIES
LONG TERM PROVISIONS
PARTICULARS.
2012
2218.45
0.00
-4677.05
0.00
674.17
20.88
4670.27
2906.72
2013
453.36
746.79
947.88
33.65
146.82
2328.50
5301.42
-2972.92
0.00
-1715.27
0.03
568.72
959.20
940.99
65.83
77.59
2612.36
4999.97
-2387.61
0.00
-1105.50
0.03
622.93
2459.37
1248.74
83.28
176.23
4590.58
5548.98
-958.40
0.00
460.77
0.03
442.33
3582.13
1949.53
183.30
187.43
6344.75
5707.43
637.32
0.00
2906.72
2010
101
-679.20
-4789.30
-149.84
-5618.34
-326.38
-4462.92
-4789.30
3048.19
148.20
47.50
47.81
0.00
0.00
0.00
0.03
3291.73
2250.38
375.32
353.60
258.81
65.87
151.03
167.25
82.86
148.84
11.49
0.81
69.25
-2.24
7.77
3941.04
-649.31
-29.89
2004-05
2746.24
191.53
13.70
48.20
168.65
82.47
0.00
0.08
3250.87
2022.75
204.61
343.51
246.13
84.86
141.14
108.12
60.64
169.42
0.00
4.14
91.81
94.09
0.00
3571.22
-320.35
-6.03
2003-04
-5254.48
-5143.88
110.60
-5254.48
411.14
253.63
67.93
199.72
243.61
97.60
136.24
5.28
0.41
82.73
3.64
10.04
3672.84
115.22
2.90
-7.52
404.62
272.18
69.50
166.28
213.27
86.95
142.98
14.73
10.05
99.80
-8.96
2.68
3455.77
374.85
-2.89
-8.10
363.86
-5618.34
3518.21
186.01
22.21
45.34
0.00
0.00
16.22
0.07
3788.06
2160.87
2006-07
3417.68
227.18
99.94
51.41
0.00
0.00
34.32
0.09
3830.62
1981.69
2005-06
NOTE : FIGURES FOR THE YEAR 2010-11 & 2011-12 AND 2012-13 ARE AS PER REVISED SCHEDULE VI
PARTICULARS.
-1029.93
-5143.88
-284.50
-6458.31
3187.61
204.53
-85.86
44.72
0.00
0.00
0.00
0.09
3351.09
2597.87
163.80
427.37
263.66
74.63
229.89
210.91
134.69
147.00
21.83
0.29
80.42
12.47
0.00
4364.83
-1013.74
-12.92
-3.27
-2109.09
-6458.31
0.00
-8567.40
3837.40
207.77
-11.90
44.51
0.00
0.00
0.00
0.16
4077.94
3803.75
504.89
466.61
259.25
70.95
268.09
254.87
148.51
206.86
20.96
0.07
155.86
17.43
2.76
6180.86
-2102.92
-2.78
-3.39
333.40
-8567.40
0.00
-8234.00
5227.78
348.76
123.26
50.48
0.00
0.00
0.00
0.01
5750.29
3364.35
58.81
490.96
304.79
82.82
296.40
342.00
160.16
146.69
9.51
0.01
170.35
-13.55
1.97
5415.27
335.02
-1.62
0.00
962.13
-8127.43
0.00
-7165.30
0.16
248.19
188.99
0.00
7642.90
962.13
0.00
0.00
1.01
164.08
87.27
22.61
6242.75
106.57
0.00
0.00
106.57
-8234.00
0.00
-8127.43
8262.09
298.62
44.32
0.00
0.00
0.00
0.00
0.00
8605.03
5217.06
0.00
574.22
382.42
61.76
79.33
481.42
208.45
200.90
2011-12
5882.60
354.37
112.35
0.00
0.00
0.00
0.00
0.00
6349.32
4042.04
0.00
539.95
376.11
57.02
180.52
410.98
176.44
184.72
2010-11
1655.54
-7165.30
0.00
-5509.76
273.13
(31.49)
8.48
(324.59)
260.92
0.00
7672.92
1898.63
(1.45)
0.00
9571.55
5300.14
0.00
649.95
463.82
60.23
117.12
672.36
261.29
203.20
9191.91
548.56
(168.92)
0.00
0.00
0.00
0.00
2012-13
in Crore).
OVERBURDEN REMOVAL
( MILLION CU.MTS)
MANPOWER
PRODUCTIVITY (O.M.S)
UNDERGROUND
OPENCAST
OVERALL :
1 (a)
(b)
2.
3.
4.
102
0.45
5.30
1.10
110132
0.00
24.14
0.11
0.00
0.52
2.66
27.43
35.96
9.91
18.09
28.00
2004
0.43
5.30
1.07
105692
0.00
24.11
0.13
0.00
0.50
2.43
27.17
39.70
9.45
17.80
27.25
2005
0.45
6.61
1.29
101474
0.00
25.17
0.14
0.00
0.48
2.90
28.69
44.30
9.33
21.78
31.11
2006
0.42
7.03
1.34
98780
0.00
26.17
0.18
0.00
0.45
2.99
29.79
48.78
8.27
22.20
30.47
2007
0.43
5.04
1.07
94943
0.00
21.94
0.17
0.00
0.42
2.91
25.44
39.98
8.32
15.74
24.06
2008
OPERATIONAL STATISTICS
0.46
6.42
1.33
90470
0.00
23.69
0.15
0.00
0.41
4.01
28.26
43.07
8.39
19.74
28.13
2009
0.47
7.29
1.46
85617
0.00
25.22
0.15
0.00
0.40
3.45
29.22
49.74
8.23
21.83
30.06
2010
0.45
8.14
1.60
81128
0.00
26.21
0.15
0.00
0.38
3.00
29.74
56.25
7.37
23.43
30.80
2011
0.44
8.64
1.68
78009
0.00
24.27
0.14
0.00
0.34
6.08
30.83
60.31
6.83
23.73
30.56
2012
0.46
10.17
1.94
74276
0.00
30.02
0.14
0.00
0.30
5.38
35.84
76.45
6.85
27.05
33.90
2013
103
0.58
5.31
iii) Stock of coal (Net of excise duty) as a No. of months sale value
0.32
-0.28
1.77
2.26
3.24
4.10
0.31
-0.20
5.32
0.72
-1.62
0.39
-2.29
STRUCTURAL RATIOS :
i). Debt : Equity.
ii). Debt : Net Worth.
2005-06
0.32
-0.23
4.61
0.96
1.41
1.80
-2.23
0.53
-1877.35 -1534.04
-3399.88 -3036.02
-3399.89 -3318.41
2004-05
TURNOVER RATIOS :
i) Capital Turnover Ratio (Net Sales/Capital Employed).
ii) Sundry Debtors(Gross) as Nos. of months :
a). Gross Sales
b). Net Sales.
0.45
-1199.95
-2570.84
CAPITAL EMPLOYED.
NET WORTH
NET WORTH AS PER BRPSE PROJECTION
LIQUIDITY RATIOS :
i) Current Ratio (Current Assets/Current Liabilities).
2003-04
PARTICULARS.
0.30
-0.23
4.59
1.01
1.29
1.65
-2.52
0.50
-1395.59
-2925.42
-3366.12
2006-07
0.30
-0.15
4.26
0.80
1.33
1.70
-1.37
0.36
-2318.43
-4239.86
-3382.32
2007-08
0.31
-0.11
4.00
0.62
1.25
1.58
-1.09
0.30
-3526.75
-6348.95
-2839.76
2008-09
0.30
-0.11
3.99
0.74
1.61
1.93
-1.67
0.44
-3135.66
-6015.55
-1968.26
2009-10
0.30
-0.11
3.70
0.84
1.76
2.13
-4.46
0.52
-1320.30
-5908.98
-1050.73
2010-11
0.30
-0.14
3.78
0.66
2.99
3.87
48.29
0.83
171.10
-4946.85
-224.94
2011-12
0.30
-0.27
3.10
0.37
3.93
5.20
4.66
1.11
1973.68
-2458.60
421.31
2012-13
( in Crores.)
AS AT
31.03.2013
NOTES
I
(1)
1
2
AS AT
31.03.2012
2,218.45
(4677.05)
2,218.45
(7165.30)
(2,458.60)
(2)
Non-Current Liabilities
a) Long Term Borrowing
b) Deferred Tax Liabilities
c) Other Long Term Liabilities
d) Long Term Provisions
(4,946.85)
674.17
670.18
4
5
20.88
4,670.27
5.51
4,731.93
5,365.32
(3)
Minority Interest
(4)
Current Liabilities
a) Short Term Borrowing
b) Trade Payables
c) Other Current Liabilities
d) Short Term Provisions
ASSETS
Non-Current Assets
(a) Fixed Assets
i) Tangible Assets - Gross Block
Less : Depreciation, Impairment
& Provisions
Net Carrying Value
6
7
8
9
1,766.10
80.52
2,588.69
1,272.12
Total
II
(1)
5,407.62
10A
1,772.49
72.85
2,734.10
969.54
5,707.43
5,548.98
8,614.15
6,009.75
4,272.75
4,157.09
3,160.59
3,032.15
1,112.16
10A
10B
1,124.94
1,262.80
1,232.88
1,120.13
1,075.05
104
142.67
157.83
61.32
51.28
AS AT
31.03.2013
NOTES
iv) Intangible Assets under
Development
AS AT
31.03.2012
10C
20.21
46.22
11
0.15
864.20
51.26
17.43
0.18
(b)
(c)
(d )
(e)
Non-Current Investment
Deferred Tax Asset (Net)
Long Term Loans & Advances
Other Non-Current Assets
12
13
(2)
Current Assets
(a) Current Investments
(b) Inventories
(c ) Trade Receivables
(d) Cash & Bank Balance
(e) Short Term Loans & Advances
(f) Other Current Assets
14
15
16
17
18
19
0.03
442.33
3,582.13
1,949.53
187.43
183.30
Total
21.04
17.68
0.03
622.93
2,459.37
1,248.74
176.23
83.28
6,344.75
4,590.58
8,614.15
6,009.75
Rakesh Sinha
Chairman-cum-Managing Director
DIN - 02186695
C. K. Dey
Director (Finance)
DIN - 03204505
V. R. Reddy
GM (Finance) /
Company Secretary
S. Roychoudhury
G. M. (Finance) (Corporate Account)
(B. K. Patra)
Partner
Membership No. : "63444"
for and on behalf of
Dutta Sarkar & Co.
Chartered Accountants.
Firm Regn. No.: 303114E
105
( ` in Crore)
For the Year
ended 31.03.12
INCOME
Sale of Coal, coke etc.
20
21
Total Revenue
12,162.59
10,695.11
(578.00)
(410.58)
(2,392.68)
9,191.91
(2,022.44)
8,262.09
548.56
298.62
9,740.47
8,560.71
EXPENSES
Cost of Material Consumed
22
649.95
574.22
23
168.92
(44.32)
24
5,300.14
463.82
5,217.06
382.42
Welfare Expenses
Repairs
Contractual Expenses
25
26
27
117.12
60.23
672.36
79.33
61.76
481.42
Finance Costs
Depreciation/amortization/Impairment
28
8.48
203.20
0.16
200.90
Provisions
Write off
Overburden Removal Adjustment
29
30
260.92
-(324.59)
188.99
-248.19
Other Expenditure
31
261.29
208.45
Total Expenses
7,841.84
7,598.58
1,898.63
962.13
32
1.45
1,897.18
106
962.13
-
INCOME
Notes
1,897.18
Tax Expense
- Current year
- Deferred Tax
- Earlier years
273.13
(31.49)
-
962.13
-
1,655.54
962.13
746.26
-
433.69
-
33
34
The Notes referred to above form an integral part of Profit & Loss Account.
Rakesh Sinha
Chairman-cum-Managing Director
DIN - 02186695
C. K. Dey
Director (Finance)
DIN - 03204505
V. R. Reddy
GM (Finance) /
Company Secretary
S. Roychoudhury
G. M. (Finance) (Corporate Account)
(B. K. Patra)
Partner
Membership No. : "63444"
for and on behalf of
Dutta Sarkar & Co.
Chartered Accountants.
Firm Regn. No.: 303114E
107
( ` in Crores)
31.03.2013
(a) Cash Flow from Operating Activities
Net Profit Before Taxation :
Add / Less Non Operating Expenses /
(Non Operating Incomes)
Liability Written Back
Depreciation / Impairment
Lease Rent Received
Interest Income
OBR Adjustment
Profit on Sale of Asset
Interest Paid
Provision for Loss of Asset / Surveyed Off Asset
Debit / (Credit) for Foreign Exchange Flactuation
Increase / (Decrease) in Long Tern Prov. (Excl. OBR)
31.03.2012
1,897.18
(6.62)
203.20
-(179.36)
(324.59)
(0.80)
8.48
1.95
9.86
262.93
108
(24.95)
962.13
(2.55)
200.90
(3.50)
(70.78)
248.19
(1.32)
0.16
5.30
18.50
347.70
1,872.23
742.60
1,704.73
(1500.17)
(98.64)
(60.00)
(54.21)
(2,026.23)
(154.00)
(154.00)
(11.51)
(11.51)
551.56
(332.96)
3.48
0.03
3.50
70.78
1.32
(1,161.46)
543.27
543.27
(253.85)
(253.85)
( ` in Crores)
31.03.2013
(C) Cash Flow from Financing Activities :
Proceeds / (Repayment) of Long Term Liabialities
Proceeds / (Repayment) of Long Term Borrowings
Decrease / (Increase) in other non Current Assets
Decrease / (Increase) in Long Term Loans & Advances
Interest Paid
15.37
(5.87)
0.25
0.24
(8.48)
Rakesh Sinha
Chairman-cum-Managing Director
DIN - 02186695
C. K. Dey
Director (Finance)
DIN - 03204505
31.03.2012
(5.69)
(4.56)
0.66
(14.47)
(0.16)
1.51
(24.22)
1.51
(24.22)
(164.00)
265.20
(164.00)
337.95
603.15
265.20
V. R. Reddy
GM (Finance) /
Company Secretary
S. Roychoudhury
G. M. (Finance) (Corporate Account)
(B. K. Patra)
Partner
Membership No. : "63444"
for and on behalf of
Dutta Sarkar & Co.
Chartered Accountants.
Firm Regn. No.: 303114E
109
NOTE - 1
( ` Crores)
SHARE CAPITAL
AS AT
31-03-2013
AS AT
31-03-2012
2500.00
2500.00
--
--
2,500.00
2,500.00
1,039.00
1,039.00
1,179.45
1,179.45
Total
2218.45
2218.45
AUTHORISED :
250,00,000 Equity Share of ` 1000.00 each.
Note 1 : Shares in the company held by each shareholder holding more than 5% Shares.
Name of Shareholder
Coal India Limited
% of Total Shares
22184497
99.99%
110
NOTE - 2
( ` Crores)
AS AT
31-03-2013
AS AT
31-03-2012
832.71
832.71
RESERVES :
Capital Reserve
As per last Balance Sheet
Add: Addition during the year
Less: Adjustment During the year
Capital Redemption Reserve
As per last Balance Sheet
Add: Addition during the year
Less: Adjustment During the year
Reserve for Foreign Exchange Transactions
As per last Balance Sheet
Add: Addition during the year
Less: Adjustment During the year
CSR Reserve
As per last Balance Sheet
Add: Addition during the year
Less: Transfer to General Reserve
General Reserve
As per last Balance Sheet
Add: Transfer from Profit & Loss Account
Add:/ Less: Adjustment During the year
Surplus in Profit & Loss Account
As per last Balance Sheet
Profit/(Loss) after Tax During the Year
(7,165.30)
1,655.54
(8,127.43)
962.13
(5,509.76)
(7,165.30)
111
APPROPRIATION
Reserve for Foreign Exchange Transaction
Transfer to General Reserve
Transfer to CSR Reserve
Interim Dividend
Proposed Dividend on Equity Shares
Corporate Dividend Tax
Miscellaneous Expenditure
(to the extent not written off)
Preliminary Expenses
Pre-Operational Expenses
Total :
(4,677.05)
112
(7,165.30)
NOTE - 3
( ` Crores)
AS AT
31-03-2013
AS AT
31-03-2012
IBRD
JBIC
Export Development Corp., Canada
Liebherr France S.A., France
155.20
151.21
518.97
518.97
Total (A+B)
674.17
670.18
CLASSIFICATION 1
Secured
Unsecured
674.17
670.18
Term Loan
CLASSIFICATION 2
Loan Guaranteed by directors & others
Particulars of Loan
Export Development Corporation, Canada
Amount in ` crores
155.20
Nature of Guarantee
GOI
Note 3.1 : Exchange Fluctuation debit of ` 9.86 cr. ( ` 18.50 crores) in respect of unsecured loan from Export
Development Corporation, Canada through CIL has been adjusted in the value of the secured loan and
correspondingly given effect in the Profit / Loss account under Note No. 31.
Note 3.2 : During the year repayment of foreigh loan of ` 5.14 crores ( ` 4.43 crores) has been made through CIL.
113
NOTE - 4
( ` Crores)
AS AT
31-03-2013
AS AT
31-03-2012
Trade Payable
Security Deposits
19.68
4.31
1.20
20.88
1.20
5.51
NOTE - 5
( ` Crores)
AS AT
31-03-2013
AS AT
31-03-2012
2,268.99
2,271.77
- Leave Encashment
421.92
340.33
258.40
-
241.22
-
1,400.75
1,725.34
Mine Closure
217.38
153.27
102.83
TOTAL
Note 5.1:
4,670.27
4,731.93
The year end liability of Gratuity, Leave encashment and other employee benefit like Gross Personal
Accident Insurance Policy, Leave Travel Concession medical benefit for retired executive, compensetion to
dependents in case of mines accidental death are valued on actuarial basis.
114
NOTE - 6
( ` Crores)
AS AT
31-03-2013
Loan From Bank
AS AT
31-03-2012
1,766.10
1,772.49
1,766.10
1,772.49
CLASSIFICATION 1
Secured
Unsecured
1,766.10
1,772.49
CLASSIFICATION 2
Loan Guaranteed by directors & others
Particulars of Loan
NIL
Amount in
` crores
NIL
Nature of Guarantee
NIL
NOTE - 7
( ` Crores)
TRADE PAYABLES
AS AT
31-03-2013
AS AT
31-03-2012
80.52
72.85
TOTAL
80.52
72.85
115
NOTE - 8
( ` Crores)
AS AT
31-03-2013
Current Maturities of Long Term Borrowings
Term Loan From IBRD
Term Loan From JBIC
Term Loan From Export Development Corp., Canada
Term Loan From Liebherr France S.A., France
Loan From Coal India Limited
Surplus Fund from Coal India Limited
Current Account with Subsidiaries
For Capital (including Stores)
AS AT
31-03-2012
5.15
19.42
4.42
12.30
361.32
59.18
119.45
539.95
780.63
40.89
79.96
901.48
60.77
29.52
10.83
34.24
14.21
149.57
70.11
0.37
23.75
10.08
19.19
9.90
133.40
35.72
67.19
59.08
318.23
-
12.20
70.03
67.21
430.25
-
FOR EXPENSES :
Salary Wages & Allowances
Power & Fuel
Others
STATUTORY DUES :
Sales Tax/VAT**
Provident Fund & Pension Fund
Central Excise Duty
Royalty & Cess on Coal
Stowing Excise Duty
Clean Energy Cess
Other Statutory Levies
Income Tax Deducted at Source
Security Deposit
Earnest Money
Advance & Deposit from customers / others
Interest Accrued and due on Borrowings
Interest Accrued but not due on Borrowings
116
1,044.22
350.16
849.78
253.03
TOTAL
2,588.69
2,734.10
Note - 8.1 :- In the process of making payment of Cess on the annual value of coal bearing land based on the average
production of preceding two years valuing at a rate prevailing as on 1st April of each year and realisation
made from customeres on the value of despatches of Coal considering the sale price prevailing on 1st
day of April of the financial year, there remains a balance accumulating to ` 1044.22 cr. ( ` 849.78 cr.).)
which has been shown under cess equilisation A/C.
117
NOTE - 9
( ` Crores)
AS AT
31-03-2013
AS AT
31-03-2012
460.30
67.17
192.05
200.44
76.58
530.67
49.40
162.52
146.10
58.62
273.13
20.98
20.76
2.67
21.04
1.19
1,272.12
969.54
TOTAL
Note - 9.1 :- Employee Benefit in respect of Gratuity and leave encashment includes actuarial valuation of expected
payment to be made during next one year amounting to ` 360.55 cr. and ` 58.80 cr.. respectively.
118
119
Note-10A.2 :-
NoteNote-10A.1 :-
(0.58)
(0.58)
(40.79)
29.49
1.01
30.50
1,032.59
200.29
1,232.88
1,193.15 39.73
5,389.97 186.37
(89.44)
242.60
(40.21)
4,003.93
3.38
-
97.98
14.02
0.56
(40.22)
-
155.87
10.30
103.36
0.24
0.18
469.56
3,389.19
19.08
26.22
(31.16)
30.61
8.17
4,157.09
8.30
30.11
81.68
51.19
GROSS BLOCK
As on
Addition Adj./Sales/Tr
01.04.12 during the ansfer during
period
the period
680.86
134.38
815.24
2,979.11
8.17
3,032.15
71.76
11.31
212.51
2,669.04
16.72
18.33
12.88
11.43
1,232.88 779.03
5,535.55 3,847.39
1,061.50
201.30
1,262.80
4,157.09
8.17
4,272.75
101.36
14.02
480.42
3,452.33
19.32
26.40
58.82
111.91
36.21
193.69
25.17
1.46
26.63
135.94
167.06
2.68
0.23
10.81
144.42
0.37
0.80
0.30
7.45
(38.22)
0.43
(0.03)
0.40
(82.90)
(38.62)
0.04
(38.67)
-
(7.89)
7.90
DEPRECIATION
As on
As on
Addition Adj./Sales/Tr
31.03.13 01.04.12 during the ansfer during
period
the period
815.24
4,002.86
703.46
135.81
842.27
3,032.15
8.17
3,160.59
74.44
11.54
223.36
2,774.79
17.09
19.13
5.29
26.78
As on
31.03.13
230.14
259.81
200.06
59.71
259.81
As on
01.04.12
26.49
17.92
16.70
1.22
17.92
3.15
0.13
0.13
0.13
IMPAIRMENT LOSS
Addition
Adj./Sales/
during the Transfer
period
during the
period
259.81
277.86
216.89
60.97
277.86
As on
31.03.13
1,075.05
4,280.72
923.35
196.78
1,120.13
3,032.15
8.17
3,160.59
74.44
11.54
223.36
2,774.79
17.09
19.13
5.29
26.78
Total
Total
Depreciation/
Impairment
Loss
Crores )
1,254.83
138.15
4.52
142.67
1,112.16
26.92
2.48
257.06
677.54
2.23
7.27
53.53
85.13
157.83
1,282.77
151.67
6.16
157.83
1,124.94
1,124.94
26.22
2.71
257.05
720.15
2.36
7.89
68.80
39.76
CARRYING VALUE
As on
As on
31.03.13 31.12.12
Due to change in depreciation rate of Xerox machine from 6.33% to 10.55%, the additional depreciation charge to P & L account is 0.74 crores.
Land acquired under Coal Bearing Acquisition Act, 1957, L.A. Act abd direct purchase of tenancy land are classified as free hold land and acquisition of other land like inherited land on nationalisation,
direct transfer of Govt. land and forest land are classified as lease hold land.
Land includes certain land taken on possesion by the Company for which legal formalities in respect of title deeds etc. are pending. However, land taken on possession by the Company, for which
values are yet to be ascertained pending completion of legal formalities have not been includes.
Intangible Assets
(As on 31.03.2012)
Tangible Assets
Land
(a) Freehold
(b) Leasehold
Building/Water Supply/
Road & Culverts
Plant & Equipments
Telecommunication
Railway Sidings
Furniture & Fixtures/Office
Tools& Equipments/Electrical
Fittings/ Fire Arms
Vehicle
Aircraft
Development
Assets taken on
Nationalisation
TOTAL
Tangible Assets
(As on 31.03.2012)
Intangible Assets
Computer Software
Development
Prospecting & Boring
Total
PARTICULARS
NOTE - 10 A
FIXED ASSETS
PROVISION
120
80.19
315.06
253.69
411.90
333.88
Tangible Assets
(As on 31.03.2012)
Grand Total
Grand Total
(As on 31.03.2012)
250.75
135.24
250.75
135.24
3.27
8.71
0.20
105.89
17.17
(172.73)
(118.10)
61.37
6.57
(234.10)
(124.67)
(2.88)
(8.71)
(0.17)
(103.05)
(9.86)
411.90
429.04
315.06
321.63
96.84
107.41
3.72
6.61
78.17
18.91
296.97
360.62
253.69
315.06
43.28
45.56
0.31
2.62
36.73
5.90
5.34
1.95
3.06
1.41
2.28
0.54
0.65
(0.16)
0.05
58.31
5.15
58.31
5.16
0.00
(0.01)
(0.01)
0.01
(0.01)
360.62
367.72
315.06
321.63
45.56
46.09
0.95
2.63
36.57
5.94
Addition Adj./Sales/ As on
As on
during Transfer 31.03.13 01.04.12
the
during the
period period
Total
360.62
367.72
315.06
321.63
45.56
46.09
0.95
2.63
36.57
5.94
Crores)
61.32
61.32
2.77
3.98
41.60
12.97
51.28
51.28
51.28
51.28
3.02
3.96
38.60
5.70
As on
31.03.12
CARRYING VALUE
Addition Adj./Sales/ As on
Total
As on
during the Transfer 31.03.13 Depreciation/ 31.03.13
period during the
Impairment
period
Loss
IMPAIRMENT LOSS
Note-Assets under lease shall be separately specified for each class of asset
Note- 10B.1:- Total provision for Tangiable Assets upto the end of the period is 46.09 crores ( 45.56 cr)
Note- 10B.2:- Full provision amounitng to 1.41 cr ( 3.06 cr) on the value of Surveyed Off Assets has been made.
96.84
Development
TOTAL
6.58
Railway Sidings
3.33
75.33
Others
11.60
As on
Addition Adj./Sales/Tr
As on
As on
01.04.12 during the ansfer during 31.03.13 01.04.12
period
the period
Tangible Assets
Building/Water Supply
/Road & Culverts
PARTICULARS
COST
NOTE - 10 B
CAPITAL WORK-IN-PROGRESS
121
4.11
78.58
TOTAL
Note 10 C. 1 :
(As on 31.03.2012)
74.69
34.72
1.01
33.71
(40.72)
(59.18)
(1.01)
(58.17)
78.58
54.12
4.11
50.01
14.43
14.39
2.73
11.66
(0.04)
(0.45)
(0.45)
18.90
17.97
1.38
16.59
33.91 Crores (
14.39
13.94
2.73
11.21
Total
(3.19)
(0.15)
(0.15)
32.36 crores)
2.26
2.15
2.15
17.97
19.97
1.38
18.59
32.36
33.91
4.11
29.80
Crores)
20.21
20.21
46.22
46.22
46.22
As on
31.03.12
CARRYING VALUE
Addition Adj./Sales/ As on
Total
As on
during the Transfer 31.03.13 Depreciation/ 31.03.13
period during the
Impairment
period
Loss
IMPAIRMENT LOSS
Addition Adj./Sales/ As on
As on
during Transfer 31.03.13 01.04.12
the
during the
period period
44.61
74.47
Intangible Assets
PROVISION
As on
Addition Adj./Sales/Tr
As on
As on
01.04.12 during the ansfer during 31.03.13 01.04.12
period
the period
Development
Intangible Assets
PARTICULARS
COST
NOTE - 10 C
INTANGIBLE ASSET UNDER DEVELOPMENT
NOTE - 11
NON - CURRENT INVESTMENTS - Unquoted at Cost
( ` crores)
Number of
shares/bonds/sec
urities current
Year / (previous)
year)
As at
31.03.13
As at
31.03.12
0.07
-
0.10
-
0.08
0.08
0.15
-
0.18
-
TRADE
8.5% Tax Free Special Bonds (Fully Paid up) :
(on securitisation of Sundry Debtors)
Major State-wise Break-up
(4 Bonds of ` 1,65,000/- each)
UP
Haryana
Maharashtra
Madhya Pradesh
Gujarat
West Bengal
Others
Equity Shares in Joint Venture Companies
( with name of joint ventures)
Equity Shares in Subsidiaries Companies
( with name of Subsidiaries)
Others (in Co-operative Shares)
i) 500 B class shares of ` 1000/- each in Coal Mines
Officers Co operative credit Society Ltd.
` 0.05
ii) 1000 D class shares of ` 100/- each in Dishergarh
colly Workers central co-opt store Ltd.
` 0.01
iii) 4000 shares of ` 25/- each in the Mugma coalfield
colly Workers central co-opt store Ltd.
` 0.01
iv) 500 B class shares of ` 100/- each in Sodepur colly
Employees co-opt credit society Ltd. & 500 B class
shares of ` 100 each in Dhenomain colly. Employees
co-opt credit society Ltd.
` 0.01
NON-TRADE
7.55% Non Convertible IRFC Tax Free Bonds
2021 Series
Total :
Aggregate of Quoted Investment
Aggregate of Unquoted Investment
Market Value of Quoted Investment
Provision made for diminution in the value of Investment
122
NOTE - 12
( ` Crores)
AS AT
31-03-2013
AS AT
31-03-2012
LOANS
ADVANCES
For Capital
- Secured considered goods
- Unsecured considered goods
- Doubtful
Less : Provision for Doubtful Loans and Advances
For Revenue
- Secured considered goods
- Unsecured considered goods
- Doubtful
Less : Provision for Doubtful Loans and Advances
Security Deposits
- Secured considered goods
- Unsecured considered goods
- Doubtful
Less : Provision for Doubtful Loans and Advances
Deposit for P&T, Electricity etc.
- Secured considered goods
- Unsecured considered goods
- Doubtful
Less : Provision for Doubtful Loans and Advances
123
10.11
2.68
12.79
2.68
10.11
7.77
2.68
10.45
2.68
7.77
31.17
3.60
34.77
3.60
31.17
8.76
2.70
11.46
2.70
8.76
3.10
0.66
3.76
0.66
3.10
2.64
0.66
3.30
0.66
2.64
0.41
0.45
0.86
0.45
0.41
0.40
0.45
0.85
0.45
0.40
1.16
1.16
1.35
1.35
0.02
0.02
For Others
- Secured considered goods
- Unsecured considered goods
- Doubtful
5.29
5.29
0.12
0.12
5.29
0.12
51.26
21.04
51.26
21.04
Loan To Subsidiaries
- Secured considered goods
- Unsecured considered goods
- Doubtful
TOTAL
Note
CLOSING BALANCE
CURRENT
PERIOD
PREVIOUS
PERIOD
CURRENT
PERIOD
PREVIOUS
PERIOD
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
124
NOTE - 13
( ` Crores)
AS AT
31-03-2013
AS AT
31-03-2012
17.43
5.33
22.76
5.33
17.43
17.68
5.34
23.02
5.34
17.68
17.43
17.68
Note :
CLOSING BALANCE
CURRENT
PERIOD
PREVIOUS
PERIOD
PREVIOUS
PERIOD
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
Other Receivable includes balance claim of ` 20.86 cr. ( ` 21.11 cr) against total claim of
` 47.67 cr. lodged with Director of Electricity, Govt. of West Bengal in support of relief / concession
required for revival of ECL accordingly to BIFRs sanctioned scheme. Against the above claim
10% provision has been made considering its doubtful recovery.
125
NOTE - 14
CURRENT INVESTMENTS - Quoted / Unquoted at Cost
Number of
shares/bonds/sec
urities current
Year / (previous)
( ` crores)
year)
year) (` )
(` )
As at
As at
31.03.13
31.03.12
NON-TRADE
Mutual Fund Investment
( with name of mutual fund )
7.55% Non Convertible IRFC Tax Free Bonds
2021 Series
UP
0.03
0.03
Total :
0.03
0.03
TRADE
8.5% Tax Free Special Bonds (Fully Paid up) :
(on securitisation of Sundry Debtors)
Major State-wise Break-up
(2 Bonds of ` 1,65,000/- each)
126
NOTE - 15
( ` Crores)
INVENTORIES
AS AT
31-03-2013
AS AT
31-03-2012
Stock of Coal
Coal Under Development
Less : Provision
309.74
1.76
478.41
1.76
307.98
476.65
167.24
0.02
47.17
174.02
5.79
46.98
120.09
132.83
Workshop Jobs :
Work-in-progress and Finished Goods
Less : Provision
13.83
0.20
12.83
0.23
13.63
12.60
Press :
Work-in-Progress and Finished Goods
0.63
0.85
442.33
622.93
Total ( A to F )
Note - 15.1 :
Perpetual verification of inventories has been carried our during the year except in certain areas.
Closing Stock of stores at Central and Area Stores have been valued at weighted average cost.
Provision at the end of the period of ` 47.17cr (` 46.98 cr) is consisting of the following:
a) Provision for quantitative discrepancies noticed between Bin Cards and Stores Ledger upto
March,2013 ` 2.32 cr ( ` 2.32 cr)
b) Provision for unserviceable, damaged and obsolete store ` 10.62 cr (` 11.66 cr.)
.)
c) Prov for non-moving stores & spares ` 34.23 crore ( ` 33.00 crore. )
127
`)
TABLE - A
Reconciliation of closing stock adopted in Account with Book stock as at the end of the year:
OVERALL STOCK
Qty.
Value
45.19
52409.92
4.71
4656.14
40.48
47753.78
0.00
45.19
86.66
52496.58
0.00
4.71
0.00
4656.14
0.00
40.48
86.66
47840.44
2.
339.11
913656.34
0.00
0.00
339.11
913656.34
3.
Sub-Total ( 1+2)
384.30
966152.92
4.71
4656.14
379.59
961496.78
355.42
919190.10
0.00
0.00
355.45
919190.10
0.00
0.00
0.00
0.00
0.00
0.00
3.03
11333.15
0.00
0.00
3.03
11333.15
358.45
930523.25
0.00
0.00
358.45
930523.25
5. Derived Stock
25.85
35629.67
4.71
4656.14
21.14
30973.53
6. Measured Stock
25.34
34953.87
4.71
4656.14
20.63
30297.73
7. Difference (5-6)
0.51
675.80
0.51
675.80
0.01
16.81
0.00
0.00
0.01
16.81
0.52
692.60
0.00
0.00
0.52
692.60
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.01
25.85
35629.66
4.71
4656.14
21.14
30973.52
4.
TOTAL(A)
8. Break-up of Difference:
128
Production
129
-
Own Consumption
(B)
(C)
-
Closing Stock **
Less: Shortage
Offtake*
Raw Coal
Coking
Qty
Value
21.14
21.14
3.03
355.42
339.11
40.48
4.71
45.19
Non-Coking
Qty
30,706.41
267.11
30,973.52
0.01
30,973.53
11,333.15
919,190.10
913,656.34
47,840.44
4,656.14
52,496.58
Table : B
Qty
Value
Other Products
21.14
21.14
3.03
355.42
339.11
40.88
4.71
45.19
Qty
Total
30,706.41
267.11
30,973.52
0.01
30,973.53
11,333.15
919,190.10
913,656.34
47,840.44
4,656.14
52,496.58
Value
NOTE - 16
( ` Crores)
TRADE RECEIVABLES
AS AT
31-03-2013
Debts outstanding for a period exceeding six months
from the due date
- Secured considered goods
- Unsecured considered goods
- Doubtful
Less Provision for bad and doubtful trade receivables
Other Debts
- Secured considered goods
- Unsecured considered goods
- Doubtful
Less Provision for bad and doubtful trade receivables
Total
AS AT
31-03-2012
620.98
353.19
974.17
353.19
620.98
103.64
122.08
225.72
122.08
103.64
2,961.15
46.20
3,007.35
46.20
2,961.15
2,355.73
83.59
2,439.32
83.59
2,355.73
3,582.13
2,459.37
Notes :
CLOSING BALANCE
CURRENT
PERIOD
PREVIOUS
PERIOD
CURRENT
PERIOD
PREVIOUS
PERIOD
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
Adjustment of an amount of ` 101.35 crores (Previous period ` 167.99 crores) for grade
slippage has been made after reconciliation, settlement and issuing credit notes to parties during
the period.
` in crore
31.03.13
205.67
---272.75
79.03
399.39
` in crore
31.03.12
85.42
---236.69
116.44
205.67
NOTE - 17
( ` Crores)
AS AT
31-03-2013
AS AT
31-03-2012
8.00
429.58
-
361.44
230.66
-
Remittance - in transit
Cheques, Drafts and Stamps on hand
Cash on hand
0.12
0.73
0.72
3.08
7.14
0.83
1,510.38
645.59
Total
Maximum amount outstanding with Banks other than Scheduled
Banks at any time during the year
Deposit for more than 1 (one) year from the date of purchase
131
1,949.53
1,248.74
nil
nil
nil
nil
NOTE - 18
( ` Crores)
AS AT
31-03-2013
AS AT
31-03-2012
LOANS
ADVANCE
( Recoverable in cash or in kind or for value to be received)
ADVANCE TO SUPPLIERS
For Revenue
- Secured considered goods
- Unsecured considered goods
- Doubtful
Less Provision for bad and doubtful Advance
67.82
2.42
70.24
2.42
67.82
70.19
2.35
72.54
2.35
70.19
67.82
70.19
22.51
22.51
22.51
13.36
13.36
13.36
19.32
19.32
18.98
0.12
19.10
0.12
18.98
41.49
18.55
0.12
18.67
0.12
18.55
51.23
132
Advance to Employees
- Secured considered goods
- Unsecured considered goods
- Doubtful
Less Provision for bad and doubtful Advance
Current Account with Coal India Limited & other
Subsidiaries of Coal India Limited
Loan Account with Subsidiaries
- Secured considered goods
- Unsecured considered goods
- Doubtful
Less Provision for bad and doubtful Loan
Claims Receivables
- Secured considered goods
- Unsecured considered goods
- Doubtful
Less Provision for bad and doubtful claim receivables
Prepaid Expenses
TOTAL
77.53
2.94
80.47
2.94
77.53
54.05
2.95
57.00
2.95
54.05
0.13
2.04
2.17
2.04
0.13
0.46
78.12
187.43
0.15
2.05
2.20
2.05
0.15
0.61
54.81
176.23
Note :
CLOSING BALANCE
CURRENT
PERIOD
PREVIOUS
PERIOD
PREVIOUS
PERIOD
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
133
NOTE - 19
( ` Crores)
AS AT
31-03-2013
AS AT
31-03-2012
140.23
-
52.21
-
0.03
0.03
0.03
0.03
0.67
3.69
-
0.68
7.72
-
38.79
0.11
38.68
22.74
0.10
22.64
183.30
83.28
Interest Accrued
- Investment
- Deposit with Banks
- Others
Ex Owners Account
Other Advances
Less: Provision
DEPOSITS
Other Receivables
Less: Provision
TOTAL
134
NOTE - 20
( ` Crores)
12,162.59
10,695.11
578.00
410.58
254.93
1,542.89
35.54
127.40
177.71
244.93
9.28
185.75
1,327.19
30.49
108.85
152.45
217.71
-
TOTAL LEVIES
2,392.68
2,022.44
9,191.91
8,262.09
Note 20.1 :-
Sale is net of deduction for grade slippage for current period and earlier period. Sales for the period
have been reduced by ` 101.35 cr.( ` 161.70 cr.) due to credit note issued to the parties for grade
slippage.
Note 20.2 :-
Sales includes ` 559.87 cr. ( ` 626.05 cr.) as incentive under fuel supply agreement with various power
sector for achieving despatch target.
No: 20.2 :-
Sales includes e-auction quantity of 41.85 LT (39.63 LT) and e-auction gain of ` 390.72 crores
( ` 479.34 crores)
135
NOTE - 21
( ` Crores)
OTHER INCOME
0.01
0.01
179.36
0.13
70.58
0.19
0.93
41.80
0.80
136.85
6.62
182.06
34.17
1.32
110.93
3.50
2.55
75.37
TOTAL
548.56
298.62
Note : Other non-operating includes sales compensation of ` 106.22 crores ( ` 1.37 crores)
136
NOTE - 22
( ` Crores)
115.92
93.27
4.23
4.44
POL
210.88
186.13
HEMM Spares
134.36
131.03
184.56
159.35
TOTAL
649.95
574.22
Timber
137
NOTE - 23
( ` Crores)
477.01
431.32
1.76
475.25
1.71
429.61
307.06
1.76
305.30
477.01
1.76
475.25
169.95
(45.64)
12.83
0.23
12.60
14.12
0.20
13.92
13.83
0.20
13.63
12.83
0.23
12.60
(1.03)
1.32
Total (5)
Total (6)
168.92
(44.32)
NOTE - 24
( ` Crores)
3,758.51
218.66
3,359.64
193.67
54.34
430.13
29.64
332.53
Gratuity
Leave Encashment
375.20
187.06
912.32
103.79
6.25
1.42
26.59
2.83
1.56
24.68
7.55
0.37
7.60
0.38
0.11
105.96
4.57
0.09
92.26
4.71
66.55
56.87
151.36
--
5,300.14
5,217.06
PRP
VRS
Workman Compensation
Medical Expenses
Grants to Schools & Institutions
Sports & Recreation
Canteen &Creche
Power - Township
Hire Charges of Bus, Ambulance eyc.
Other Employee Benefits
Post Retirement Medical Benefit
TOTAL
Note 24.1:
Salary, wages, allowances & benefits includes ` 21.60 Crore provision made for Superannuation
Benefit to Executive.
139
NOTE - 25
( ` Crores)
WELFARE EXPENSES
39.87
3.85
CSR Expenses
--
9.11
Environmental Expenses
0.81
1.75
0.09
76.35
0.46
64.16
Tree Plantation
Other Expenses
TOTAL
117.12
79.33
NOTE - 26
( ` Crores)
REPAIRS
1.64
1.50
55.42
55.98
Others
3.17
4.28
TOTAL
60.23
61.76
140
NOTE - 27
( ` Crores)
CONTRACTUAL EXPENSES
Transportation Charges :
- Sand
- Coal & Coke
- Stores & Others etc.
Wagon Loading
Hiring of P&M
Other Contractual Work
TOTAL
29.41
32.23
200.32
139.45
1.26
1.13
1.91
4.05
379.24
247.08
60.22
57.48
672.36
481.42
NOTE - 28
( ` Crores)
FINANCE COSTS
INTEREST EXPENSE
Deferred Payments
Bank Overdraft / Cash Credit
Interest on IBRD & JBIC Loan
CIL Fund Loan Interest
Interest to Subsidiaries
Others
--
8.48
0.16
TOTAL(A)
8.48
0.16
TOTAL(B)
TOTAL (A+B)
8.48
0.16
141
NOTE - 29
PROVISIONS
( ` Crores)
272.75
0.99
2.41
64.11
2.13
236.70
1.36
5.07
57.42
5.41
-
TOTAL (A)
342.39
305.96
79.03
0.04
2.22
0.18
-
116.44
0.16
0.26
0.11
-
TOTAL (B)
81.47
116.97
260.92
188.99
TOTAL ( A-B )
Note - 29.1 :-
Provision for mine closure expenses of ` 64.11 crores ( ` 57.42 crores) has been taken being the
pro-rata cost of total mine closure expenditure of all operating mines being determined as per guideline
issued by the Ministry of Coal, GOI.
NOTE - 30
WRITE OFF
( ` Crores)
Doubtful debts
Doubtful advances
Others
TOTAL
142
NOTE - 31
OTHER EXPENSES
11.47
0.19
2.22
1.96
3.29
0.02
0.47
-57.03
14.35
9.69
0.14
2.04
1.27
3.13
0.02
1.39
0.17
52.76
14.17
1.30
0.18
0.78
0.64
4.80
-
1.37
0.33
0.76
0.34
5.58
-
0.22
0.02
0.12
1.70
0.12
1.65
--2.61
0.05
9.86
1.92
31.78
3.11
0.01
109.42
0.19
0.01
1.22
0.05
1.62
3.27
0.03
1.15
0.11
18.50
1.56
0.32
2.60
0.01
84.65
261.29
208.45
Note 31.1 : Dead Rent / Surface Rent includes Land revenue of ` 27.57 crores.
143
( ` Crores)
NOTE - 32
( ` Crores)
(A) Expenditure
10.56
TOTAL (A)
10.56
9.11
-
TOTAL (B)
9.11
TOTAL ( A-B )
1.45
(B) Income
144
NOTES - 33
A.
1.0
Accounting Convention:
Financial statements are prepared under the historical cost convention and on accrual basis of
accounting and going concern concept, in accordance with the generally accepted accounting principles
in India and the relevant provisions of the Companies Act, 1956 including accounting standards notified
there under, except otherwise stated.
2.0
2.1
Subsidies / Grants on capital account are deducted from the cost of respective assets to which they
relate. The unspent amount at the Balance Sheet date, if any, is shown as current liabilities.
2.2
Subsidies / Grants on revenue account are credited to Statement of Profit & Loss under the head- Other
Income and the relevant expenses are debited to the respective heads. The unspent amount at the
Balance Sheet date, if any, is shown as current liabilities.
2.3*
2.3.1*
Certain Grant / Funds received under S&T, PRE, EMSC, CCDA etc as an implementing agency and used
for creation of assets are treated as Capital Reserve and depreciation thereon is debited to Capital
Reserve Account. The ownership of the asset created through grants lies with the authority from whom
the grant is received.
2.3.2*
Grant / Funds received as Nodal/Implementing Agency are accounted for on the basis of receipts and
disbursement.
3.0
Fixed Assets:
3.1
Land:
Value of land includes cost of acquisition and cash rehabilitation expenses and resettlement cost incurred
for concerned displaced persons. Other expenditure incurred on acquisition of land viz. compensation in
lieu of employment etc. are, however, treated as revenue expenditure.
3.2
3.3
Railway Siding:
Pending commissioning, payments made to the railway authorities for construction of railway sidings are
shown in Note 12 Long Term Loans & Advances under Advances for Capital.
145
3.4
Development:
Expenses net of income of the projects / mines under development are booked to Development Account
and grouped under Capital Work-in-Progress till the projects / mines are brought to revenue account.
Except otherwise specifically stated in the project report to determine the commercial readiness of the
project to yield production on a sustainable basis and completion of required development activity during
the period of constructions, projects and mines under development are brought to revenue considering the
following criteria:
(a) From beginning of the financial year immediately after the year in which the project achieves
physical output of 25% of rated capacity as per approved project report, or
(b) 2 years of touching of coal, or
(c) From the beginning of the financial year in which the value of production is more than total
expenses,
- Whichever event occurs first.
4.0
5.0
Investments:
Current investments are valued at the lower of cost and fair value as at the Balance Sheet date. Investments
in mutual fund are considered as current investments. Non-Current investments are valued at cost.
6.0
6.1
Inventories:
Book stock of coal / coke is considered in the accounts where the variance between book stock and
measured stock is upto +/- 5% and in cases where the variance is beyond +/- 5% the measured stock is
considered. Such stock are valued at net realisable value or cost whichever is lower.
6.1.1
Coal & coke fines are valued at lower of cost or net realisable value.
6.1.2
Slurry (coking/semi-coking), middling of washeries and by products are valued at net realisable value.
6.2
6.2.1
The closing stock of stores and spare parts has been considered in the accounts as per balances appearing
in priced stores ledger of the Central Stores and as per physically verified stores lying at the collieries/
units.
6.2.2
Stock of stores & spare parts at central & area stores are valued at cost calculated on the basis of
weighted average method. The year-end inventory of stores & spare parts lying at collieries / sub-stores /
146
drilling camps/ consuming centres, initially charged off, are valued at issue price of Area Stores, Cost /
estimated cost. Workshop jobs including work-in-progress are valued at cost.
6.2.3
6.2.4
Provisions are made at the rate of 100% for unserviceable, damaged and obsolete stores and at the rate
of 50% for stores & spares not moved for 5 years.
6.3
Stock of stationery (other than lying at printing press), bricks, sand, medicine (except at Central Hospitals),
aircraft spares and scraps are not considered in inventory.
7.0
Depreciation:
7.1.
Depreciation on fixed assets is provided on straight line method at the rates and manner specified in
Schedule XIV of the Companies Act, 1956 (as amended) except for telecommunication equipment and
photocopying machine, which are charged at higher rates on the basis of their technically estimated life,
as follows :Telecommunication equipment
:-
Photocopying machine
:-
10.55% p.a.
Depreciation on Earth Science Museum and high volume samplers and respiratory dust are charged
@5.15% and 33.33% respectively on the basis of their technically estimated life.
Further, depreciation on certain equipments /HEMM is charged over the technically estimated life at
higher rates viz. 11.88%; 13.57% and 15.83% as applicable.
Depreciation on SDL and LHD (equipments) are charged @19% p.a. and @15.83% p.a. respectively on
the basis of technical estimation.
Depreciation on the assets added / disposed off during the year is provided on pro-rata basis with reference
to the month of addition / disposal, except on those assets attracting 100% depreciation p.a. (SLM
basis), which are fully depreciated in the year of their addition. Assets attracting 100% depreciation are
taken out from the Assets after expiry of two years following the year in which these are fully depreciated.
7.2
Value of land acquired under Coal Bearing Area (Acquisition & Development) Act, 1957 is amortised on
the basis of the balance life of the project. Value of
Prospecting, Boring and Development expenditure are amortised from the year when the mine is brought
under revenue in 20 years or working life of the project whichever is less.
8.0
Impairment of Asset:
Impairment loss is recognised wherever the carrying amount of an asset is in excess of its recoverable
amount and the same is recognized as an expense in the statement of profit and loss and carrying
amount of the asset is reduced to its recoverable amount.
147
Reversal of impairment losses recognised in prior years is recorded when there is an indication that the
impairment losses recognised for the asset no longer exist or have decreased.
9.0
9.1
Balance of foreign currency transactions is translated at the rates prevailing on the Balance Sheet date
and the corresponding
Transactions covered by cross currency swap options contracts to be settled on future dates are recognised
at the rates prevailing on the Balance Sheet date, of the underlying foreign currency. Effects arising out
of such contracts are taken into accounts on the date of settlement.
10.0
11.0
11.1
Sales
a) Revenue in respect of sales is recognised when the property in the goods with the risks and rewards
of ownership are transferred to the buyer.
148
b) Sale of coal are net of statutory dues and accepted deduction made by customer on account of
quality of coal.
c) The revenue recognition is done where there is reasonable certainty of collection. On the other hand,
revenue recognition is postponed in case of uncertainty as assessed by management.
11.2
Dividend
Dividend income is recognised when right to receive is established.
12.0
Borrowing Costs:
Borrowing Cost directly attributable to the acquisition or construction of qualifying assets is capitalised.
Other borrowing costs are recognised as expenses in the period in which they are incurred.
13.0
Taxation:
Provision of current income tax is made in accordance with the Income Tax Act., 1961. Deferred tax
liabilities and assets are recognised at substantively enacted tax rates, subject to the consideration of
prudence, on timing difference, being the difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more subsequent period.
14.0
Provision:
A provision is recognised when an enterprise has a present obligation as a result of past event; it is
probable that an outflow of resources embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not discounted to present value and
are determined based on best estimate required to settle the obligation at the balance sheet date.
15.0
Contingent Liability:
Contingent liability is a possible obligation that arises from past events and the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the enterprise or a present obligation that arises from past events but is not recognised
because it is not probable that an outflow of resources embodying economic benefit will be required to
settle the obligations or reliable estimate of the amount of the obligations can not be made.
Contingent liabilities are not provided for in the accounts and are disclosed by way of Notes.
16.0
149
The reported quantity of overburden as per record is considered in calculating the ratio for OBR accounting
where the variance between reported quantity and measured quantity is within the lower of the two
alternative permissible limits, as detailed hereunder:-
II
Quantum
(in Mill.Cu.Mtr.)
+/- 5%
0.03
+/- 3%
0.20
+/- 2%
Nil
However, where the variance is beyond the permissible limits as above, the measured quantity is considered.
17.0
150
NOTE - 34
ADDITIONAL NOTES ON ACCOUNTS
1.0 :
BACKGROUND:
1.1
Eastern Coalfields Limited was incorporated as a Private Limited Company on 1st November, 1975 as a
100% Subsidiary of Coal India Limited (CIL) upon taking over of Assets and Liabilities vested with the
Eastern Division of Coal Mines Authority Ltd.( former name of Coal India Limited).
1.2
Pending completion of legal formalities for transfer of assets and liabilities to the Company certain Assets
including Mining Rights etc. continued to be in the name of CIL.
1.3
The formal transfer Deeds/ Agreement for Assets & Liabilities transferred and taken over by the Company
in respect of coal Mines Labour Welfare Organisation, Kalla & Central Hospital along with 4 other Hospitals/
Dispensaries, Mines Rescue Station, Barakar Engineering & Foundry Works are yet to be finalised and
executed in favour of the Company. In the absence of formal transfer and/or details of assets and liabilities
of the above units, the valuation thereof has not been considered in the accounts. Consequently payment
of ` 26.92 lakhs (` 26.92. lakhs) made for Mines Rescue Station and Kalla Hospital has been shown in
the accounts as receivable.
2.0 :
2.1
2.2
S.P.Mines is the custodian of presently abandoned Soft Coke Plant as installed by CMPDIL. Neither any
value of assets is recognised nor any operational expense is incurred by the Company for such Plant.
2.3
Capital items of stores like Conveyor Belt, Power Cables, Engineering Ropes and 90% value of civil
materials lying in the Stores are shown as Capital W.I.P.
2.4
Physical verification of Plant & Machinery each worth ` 1.00 lakh and more have been carried out as per
programme. Resultant differences on completion of formalities have been adjusted.
2.5
3.0 :
INVETORY :
3.1
The enquiry proceedings by CBI, Dhanbad for shortage of coal at Rajmahal OCP of ` 19.54 lakhs tonne
valuing to ` 63.58 crore in 2007-08 has been completed in 2010-2011 and the same has been forwarded
to Chairman, CIL for information and advice the Vigilance department for taking action against the charged
officers as per CBI order.
3.2
4.0 :
4.1
Coal of 471408 M.T. (471408 M.T.) mixed with matti etc. is non-vendible and has been taken as NIL value.
SUNDRY DEBTORS :
Provision of Sundry Debtors are generally made on case to case basis. Normally no provision of Sundry
Debtors is made on unsettled amount of Debtors at the initial years. In the 2nd year provision is made
upto 50% amount of unsettled amount of debtors, and the rest is provided in 3rd year if remains unsettled.
Further, no provision is made on vendible stock except deterioration of old stock due to fire, theft, etc.
151
4.2
An amount of ` 92.45 lakhs is includes in Sundry Debtors representing receivable in various Areas
Accounts which are quite old. Pending collection of party-wise details, full provision exists in the Accounts
against the said receivable.
5.0 :
5.1
As required by section 22 of Micro, Small & Medium Enterprises Development Act, 2006, the following
information is disclosed on the basis of information available with company. As on 31.03.2013 Principal
amount remaining unpaid to MSME is ` 1.18 crores and interest due thereon is NIL
B. PROVISIONS:
5.2
The year end provision towards gratuity, leave encashment, Gross Personal Accident Insurance, LTA/
LTC, Life Cover Scheme, settlement allowances, Fatal Accident benefit and medical benefit of retired
employees has been made on actuarial valuation as per the certification given by the actuary. The
assumptions considered by the Actuary for determining the above actuarial valuation are as under :Demographic Assumptions
Mortality rate
Superannuation Age
60 years
Financial Assumpton
Discount rate
Inflation rate
Return on Assets
Remaining working life
Formula used
5.3
5.4
5.5
6.0 :
6.1
6.2
8. %
6%
Not-funded
12 years
Projected Unit credit Method
During the year company has ad-hoc provision for ` 54.34 crore (` 29.64 cr.) as Performance Related
Pay as per advice of Coal India Ltd.
During the year company has made a provision of ` 39.44 Cr. as Post Retirement Medical Benefit
(Executives Retired after 01.01.2007) and ` 56.87 Cr. as 4% Post Retirement Medical Benefit for
existing executives.
During the year Company has made a provision of ` 218.66 Cr. towards payment of Ex-gratia to nonexecutives employees @ ` 26500/- per employee.
PROFIT AND LOSS ACCOUNT :
Coal issued to employees (free issue) amounting to ` 24.23 crores (` 32.71 cr.) and for internal
consumption of ` 89.10 crore ( ` 90.25 cr) are accounted for on the basis of norms fixed by the management
and valued at related grade selling price and the same is exhibited in the accounts as a specific contra.
Subsidy due from appropriate authority for stowing and protective work undertaken during the year has
been received for six months amounting to ` 17.75 crore (` 15.84 cr) Subsidy receivable for the balance
period of six months have been estimated on pro-rata basis and shown under Other Current Assets (Note
19).
152
7.0
CAPITAL COMMITMENT :
7.1
7.2
Current year
Sales Tax
146.80
149.54
1262.78
2947.50
Others
562.73
460.00
Total
1972.31
3557.04
7.3 :
Previous year
( ` in Crores)
DIRECTORS REMUNERATION :
Particulars
Current year
Previous year
0.80
1.24
Provident Fund.
0.07
0.08
Perquisites.
0.14
0.16
NIL
NIL
1.29
1.48
Retirement benefit.
Total
Perquisites do not include value/charges for House Rent / Electrical Energy which has been recovered
as per rules of the Company and value of Free Medical facilities in Company Hospital/Dispensary.
b)
Besides the above, Directors have been allowed to use car for private journey up to a ceiling of 750 Kms.
per month on payment of ` 400/= per month as per service rules.
8.0 :
9.0 :
COAL :
( ` in crores)
31.03.13
31.03.13
31.03.12
476.65
430.58
3.54
1.40
Op. Stock
45.19
47.91
---
----
Sales(*)
355.42
304.90
9191.91
8262.09
25.86
45.19
309.74
476.65
31.03.12
Does not include coal issued for domestic consumption by Employees and boiler consumption of 2.89
lakh tonnes ( 3.40 lakh tonnes) and Sundry purpose 0.12 lakh tonnes (0.01 lakh tonnes) .
(**)
153
10.0 :
11.0 :
( ` in Crores)
in Crores)
Particulars
Current Year.
a. Raw Materials
b. Components, Stores & Spares.
c. Capital Goods.
12.0 :
Previous Year.
Nil
Nil
13.86
21.18
Nil
28.97
Current Year
a. Travelling Expenses.
b. Expenses on Know - How & Foreign Consultancy.
c. Pension to the Foreigners.
13.0 :
.07
0.14
--
--
--
d. Others
Previous Year.
--
5.48
6.95
(Percentage)
Current
Previous
Current
Previous
Period
Period
Period
Period
19.63
21.64
3.02
3.82
630.32
552.58
96.98
96.18
a. Total consumption of
imported materials.
b. Indigenous
14.0 : GENERAL
14.1 : Impairment of assets (Prospecting Boring & Mine Development) is made when the carrying amount
of each mine ( Cash Generating Unit) exceeds its recoverable amount, which are being determined
on the basis of future Cash Flows of subsequent five years calculated on constant price level.
14.2 : An advance payment of ` 8.10 crores has been made towards FBT in 2005-06, against which
the return was submitted for ` 7.49 crores as per self assessment/tax audit report and assessment
was made accordingly. Subsequently an appeal petition was submitted showing revised liabilities
as ` 4.0 crores which is pending with the appropriate authority..
14.3
In the opinion of the management, all current assets including loans and advances have
realisable value in the ordinary course of business at least equal to the amount at which they
are stated. Further adequate provision has also been made in respect of all known liabilities.
154
14.4 : Reconciliation of balances with Debtors are made on perpetual basis. Where confirmation
from Creditors and other parties are not obtained, in that case the book balances are considered
as correct.
14.5 : A case of misappropriation was detected at Satgram Area in the year 2004-05 and FIR was
lodged and the matter has been taken up with the Insurance Company. The amount involved
has been worked out to ` 0.40 crore. The same is yet to be settled by the Insurance Company..
14.6
As per CSR policy of CIL , since ECL is having a negative net worth, the CSR expenditure
incurred by ECL is to be borne by CIL. An amount of ` 9.43 crores has been incurred by ECL on
account of CSR during the current year and has been shown as Other Receivables in Note No:
19 to be transferred to CIL in 2013-14.
14.7 : The company was declared Sick Company and was referred to the Board for Industrial and
Financial Reconstruction (BIFR) and a case was registered as case no. 501/2000. BIFR has
appointed State Bank of India as its operating agency for formulating a Rehabilitation Scheme.
The company after detailed deliberation with Stakeholders prepared a Rehabilitation Scheme
and submitted to BIFR through the operating agency. The BIFR sanctioned the scheme in
November, 2004 for implementation. As per the BIFR sanctioned scheme, the net worth of the
company was slated to become positive in 2008-09 after considering the concessions/relief to
be received from Coal India. But due to delay in implementation of some of the envisaged project
for augmentation of production, implementation of NCWA-VII w.e.f. 01.07.2001 to 30.06.2006
and revision of sale price of coal from 16/06/2004 the physical and financial projection were
revised and accordingly revised revival plan was prepared. The revised plan was recommended
by Board for Reconstructions of Public Sector Enteprises (BRPSE) and approved by Government
of India in October, 2006. As per the revised Revival Plan approved by Government of India, the
net worth of the company was slated to become positive in 2009-2010.
However, the company could not be able to make its net worth positive in 2009-10 as many of the
projects could not be implemented due to inordinate delay in obtaining approval of project report
of many of the envisaged project, difficulty in acquisition of land obtaining forest clearance. In
addition, NCWA-VIII from 01.07.2006 and executive pay revision from 01.01.2007 has also been
implemented.
Hence, the company again prepared a revised Revival Plan taking into account the delay in
implementation of many of the projects, and as per the revised projection, the net worth of the
company was stated to become positive in 2014-15, and was placed for discussion in 230th ECL
Board meeting held on 31st August, 2009 and 1st September, 2009. But due to delay in
implementation of various projects, Functional Directors in its meeting held on 5th Jan, 2010
advised to revise the physical parameters from 2010-11 to 2016-17. In between Coal Sale Price
was also enhanced from 16th October, 2009.
Hence, the financial projections earlier made were further revised and as per the revised
projection, the net worth of the company was stated to become positive in 2016-17 with waivers
of CIL loan and conversion of current account balance into equity. ECL Board in its 237th meeting
155
held on 5th August, 2010 had approved the above Draft Modified / Revised Proposal (DMRP).
Company presented the DMRP to BRPSE and BRPSE reviewed the ECLs case on 27th August,
2010 BRPSE advised the company to revise the physical and financial projection by exploring
the possibility of advancing the project completion to enable the company to come out of BIFR in
advance. Accordingly revised DMRP has been prepared and as per the revised scheme, the
company is expected to come out of BIFR in 2014-15. The sale price of the company has increased
at par with imported coal price which facilitate the company to earn a profit in 2009-10 , 201011,2011-12 & 2012-13
A meeting was held on 02.09.2011 with Monitoring Agency and Technical Consultant appointed
by SBI in the office of the BIFR and re-assessed the status as under consisting the following.
i)
AS-17 : Segment Reporting The Company is primarily engaged in a single segment business
of production and sale of coal. There is no other reportable primary segment identifiable
in accordance with AS-17.
b).
AS-18: Related Party Disclosures In view of the exemption granted to State Controlled enterprises
as regards related party relationship with other State Controlled Enterprises for transactions with
such enterprises, no disclosure under AS-18 is made, being not applicable for the Company.
c)
AS 20 EARNING PER SHARE : Earning per share is calculated by dividing the profit earned by
the company for the year ended 31st March, 2013 with the weighted average number of equity
share of the company outstanding during the period as per details given below :( ` in crores)
a) Profit during period ending 31st March, 2013b) Weighted average number of shares
22184500 Nos.
` 746.26
` 1655.54
AS-22 Deferred Tax Asset: Deferred Tax Asset is accounted for by computing the tax effect of
timing differences, which arise during the year and revenue in subsequent periods. The detail
calculations are given below:
156
( ` in crore)
Deferred Tax
Current Year
Deferred Tax
Asset/(Liability)
(Charge)/Credit
Asset/(Liability)
As on 31.03.12
2012-13
As on 31.03.13
(26.30)
2629.54
2655.84
77.02
21.61
98.63
153.27
64.11
217.38
2886.13
59.42
2945.55
(319.61)
37.64
(281.97)
2566.52
97.06
2663.58
832.71
832.71
31.49
31.49
g)
864.20
AS-24: There is no discontinuation in operation of any activities in any mines during the year.
AS- 28: Impairment loss of ` 20.07 crores ( ` 28.75 crores) on prospecting & boring and other mines
development cost including Capital WIP for the year ending March, 2013 debited to P/L A/c under the
head impairment of assets as per accounting policy.
AS-29 : In respect of Provision, Contingent Liabilities and Contingent Assets, the followings are the
transactions made during the year.
( ` in crores)
Details
Opening
Provision as on
31.03.2012
Unserviceable/Damaged/
Obsolete Stores Suspence
11.66
2.32
33.00
Provision
made during
The year/Period
Closing
provision
as on
31.03.2013
1.04
10.62
2.32
2.41
1.18
34.23
19.40
0.99
0.04
20.35
153.27
64.11
---
----
26.50
92.74
---
2655.84
387.98
Provision
Written back
During the
Year
157
217.38
2629.54
480.72
Details
Opening
Provision as on
31.03.2012
Provision
made during
The year/Period
Provision
Written back
During the
Year
Closing
provision
as on
31.03.2013
22.81
5.15
21.83
0.73
64.98
47.69
0.18
6.71
102.83
6.71
102.83
3427.67
270.50
40.41
3657.76
Total
--1.54
---
---
27.96
1.22
21.34
3.92
61.06
---
49.23
---
0.18
16.0
The figures in the parenthesis represent those for the previous year.
17.0
Figures for the previous year have been regrouped, re-arranged and recast wherever necessary.