ANNUAL REPORT & ACCOUNTS 2012-13
ering ow In p d m ia E
EASTERN COALFIELDS LIMITED ( A Subsidiary of Coal India Limited ) SANCTORIA , P.O. DISHERGARH, DIST. BURDWAN CONTENTS
Page No. 1. Management/Bankers/Auditors 1
2. Bankers / Auditors / Vision / Mission Statement 2
3. Notice of Annual General Meeting 3
4. Chairman's Statement 4
5. Directors' Report 6
6. Comments of the Comptroller and Auditor General of India 98 7. Auditors' Report and Management's Reply 99
8. Balance Sheet as on 31st March, 2012 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
11. Notes forming part of Balance Sheet 119
12. Notes forming part of Profit & Loss Account 146
13. Significant Accounting Policies 159
14. Notes on Accounts 164 EASTERN COALFIELDS LIMITED
MANAGEMENT DURING 2012-13 MANAGEMENT AS ON 25th MAY, 2013
FUNCTIONAL DIRECTORS: FUNCTIONAL DIRECTORS: Shri Rakesh Sinha Shri Rakesh Sinha Chairman-cum-Mg. Director Chairman-cum-Mg. Director Shri S.K. Srivastava Shri S.K. Srivastava Director (Personnel) Director (Personnel) Shri S. Chakravarty Shri S. Chakravarty Director (Technical) Opn. Director (Technical) Opn. Shri A.K. Soni Shri C.K. Dey Director (Finance) (Up to 31.01.2013) Director (Finance) Shri C.K. Dey Shri Ramesh Chandra Director (Finance) (From 01.02.2013) Director (Technical) P&P Shri Ramesh Chandra Director (Technical) P&P (From 04.03.2013) PART-TIME OFFICIAL DIRECTORS: PART-TIME OFFICIAL DIRECTORS: Shri A. Chatterjee Shri A.K. Sinha Director (Finance), CIL Director (Finance), CIL (Up to 31.10.2012) Shri V. Peddanna Shri A. Chatterjee Director, MoC Director (Finance), CIL (From 03.12.2012) SPECIAL DIRECTOR APPOINTED BY BIFR: Shri D.N. Prasad Shri K.K. Gautam Director (Technical), MoC (Up to 01.06.2012) NON-OFFICIAL PART-TIME DIRECTORS: Shri V. Peddanna Director, MoC (From 01.06.2012) Shri Subrata Chaudhuri SPECIAL DIRECTOR APPOINTED BY BIFR: Shri S.K. Mohanty Shri K.K. Gautam Shri S.M. Lodha NON-OFFICIAL PART-TIME DIRECTORS: Shri S.M. Sharma Shri Subrata Chaudhuri Shri S.K. Mohanty COMPANY SECRETARY: Shri S.M. Lodha Shri V.R. Reddy Shri S.M. Sharma Prof. (Dr.) M.K. Srivastava (Up to 07.06.2012) COMPANY SECRETARY: Shri V.R. Reddy (From 19.07.2012)
1 ANNUAL REPORT 2012-13
BANKERS DURING 2012-13 State Bank of India Canara Bank United Bank of India United Commercial Bank
STATUTORY AUDITOR DURING 2012-13 M/s. Dutta Sarkar & Co., 7A, Kiran Sankar Roy Road, 2nd Floor, Kolkata - 700001
BRANCH AUDITORS DURING 2012-13 M/s. Lodha & Co., 14 Government Place East, Kolkata-700069 M/s. Roy Ghosh & Associates, 39, Kalna Road, Badamtala, Burdwan-713401 M/s. L B Jha & Co., GF-1, Gillander House, 8, Netaji Subhas Road, Kolkata-700001 M/s. U S Saha & Co., 35, Bahir Sarbamangla Road, Burdwan-713101 M/s. J. Gupta & Co., 3, Satyanarayan Temple Road, 1st Floor, Bandaghat, Howrah - 711106
REGISTERED OFFICE OF THE COMPANY CMD's Office, Sanctoria, Post - Dishergarh, District - Burdwan, Pin - 713333
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.
2 EASTERN COALFIELDS LIMITED
ering ow In p d m ia E
Eastern Coalfields Limited ( A Subsidiary of Coal India Limited ) Office of the Chairman-cum-Managing Director Sanctoria, P.O. Disergarh- 713333, Distt. Burdwan ( W.B.) Company Secretariat
Ref. No: ECL : CS: 15(2013)/710 May 20, 2013
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 Dated : May 20, 2013 Registered Office : sd/- Eastern Coalfields Limited (V. R. Reddy) Sanctoria, P.O. Disergarh, Distt. Burdwan (West Bengal) General Manager (Finance) / PIN : 713333. 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 ANNUAL REPORT 2012-13
CHAIRMAN’S 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 off- take 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 EASTERN COALFIELDS LIMITED
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
5 ANNUAL REPORT 2012-13
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 Management’s 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 2012- 13 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 PRODUCTION: 1.1 Production performance of the Company in 2012-13 against the target as well as compared to last year was as under:
Growth Over Particulars Unit 2012-13 2011-12 last year Target Actual Achieved Actual Absolute % (%)
1. Production : M.Te. i) Raw Coal - UG 7.63 6.849 89.76 6.833 0.016 0.23 - OC 25.37 27.052 106.63 23.725 3.327 14.02 Total 33.00 33.901 102.73 30.558 3.343 10.94 ii) Coking Coal : - Blendable 0.010 0.010 100.00 0.010 0.000 0.00 - Others 0.031 0.033 106.452 0.041 –0.008 –19.51 iii) Non-Coking : 32.959 33.858 102.728 30.507 3.351 10.98 2. O.B. Removal MCuM 60.000 76.448 125.877 60.305 16.143 26.77 3. Productivity(OMS) Tonnes - Underground 0.507 0.463 91.321 0.442 0.021 4.75 - Opencast 9.872 10.170 103.019 8.642 1.528 17.68 - Overall 1.874 1.944 103.735 1.678 0.266 15.85
6 EASTERN COALFIELDS LIMITED
1.2 CONSTRAINTS : (Figures in M. Te) Particulars As on 31.3.13 As on 31.3.12
Loss of Production due to : i) Power failure 0.285 0.316 ii) Absenteeism 0.121 0.362 iii) Labour Unrest (Industrial Relations) 0.174 0.439 iv) Others 0.708 3.590 Total 1.288 4.707
1.3 SYSTEM CAPACITY UTILISATION : (In %)
Particualars 2012-13 2011-12 Growth Over last year Target Actual Achieved(%) Actual Absolute % a) UG 73.72 66.18 89.77 62.80 3.38 5.38 b) OC (Dept) 117.80 123.03 104.44 116.39 6.64 5.70 c) OBR (Dept) 95.85 77.28 80.63 80.47 –3.19 –3.96 d) OC (Coal+OBR) Dept 100.39 86.25 85.91 87.38 –1.13 –1.29 e) OC (Coal) Hired 94.34 105.52 111.85 292.96 –187.46 –63.98 f) OC (OBR) Hired 99.26 206.91 208.45 415.31 –208.40 –50.18 g) OC (Coal+OBR) Hired 98.55 188.65 191.43 393.64 –204.99 –52.08 h) Overall (UG+OC) (Hired+ Dept.) 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 year’s profit of ` 962.13 crores. Details were as under:
(` in Crore)
Particulars 2012-13 2011-12
Profit(+)/Loss(-) after charging all expenses but before PRP / Executive Superannuation benefit interest, depreciation, impairment, O.B.R., prior period adjustment. 2090.61 2220.44 Less: Impact of PRP/Executive Superannuation Benefit. 75.94 43.07 Less: Actuarial provision (AS-15) 164.84 708.57 Less: Interest. 8.48 0.16 Less: Depreciation/Impairment/Mine Closure Provision. 267.31 258.32 Less: OBR Adjustment (–) 324.59 248.19 Profit (+)/Loss (-) for the year after charging interest and depreciation, impairment and OBR Adjustment. 1898.63 962.13
7 ANNUAL REPORT 2012-13
Particulars 2012-13 2011-12
Less: Prior Period Adjustment. 1.45 0.00 Net Profit (+)/Loss (-) after considering Prior Period Adjustment. 1897.18 962.13 Cash Profit 2282.86 2251.36 Profit after Tax 1655.54 962.13
2.2 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 2012-13 2011-12
A. SHARE CAPITAL i) Authorized Share Capital (2,50,00,000 Eq. shares of ` 1000 each) 2500.00 2500.00 ii) Paid up Equity Share Capital (22184500 shares of ` 1000 each) 2218.45 2218.45 B. LOAN FUNDS: i) Coal India Limited (Holding Company) 518.97 518.97 ii) Export Development Corporation, Canada. 160.35 155.64
2.4 Repayment of Foreign Loan : (` in Crore)
Particulars 2012-13 2011-12
i) Repayment of foreign loan through CIL. 5.14 4.43
2.5 Payment / Adjustment of Royalty, Cess, Stowing excise duty & Sales Tax during the year:
(` in Crore) Particulars 2012-13 2011-12 i) Royalty on Coal 240.15 189.44 ii) Cess on Coal. 1527.32 1509.45 iii) Sales Tax (Central & State). 376.56 321.06 iv) Stowing Excise Duty. 34.75 29.03 v) Central Excise Duty 545.00 413.40 Total 2723.78 2462.38
2.6 Directors' Responsibility Statement : Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956 the Board of Directors of the Company hereby state and confirm that:- (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 EASTERN COALFIELDS LIMITED
(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) the Directors had prepared the annual accounts on a going concern basis.
3.0 PLANNING : 3.1 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 ECL’s 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.
Profit After Tax ( ` in Crore )
9 ANNUAL REPORT 2012-13
3.2 Planned and Actual for 2012-13 and Plan for 2013-14 :
2012-13 2011-12 2013-14 Sl. No. Particulars Target Revised Actual Actual Planned (BE) Target (RE)
1 Production (Mt) 33.00 33.30 33.901 30.56 34.70 2 Overall Productivity 1.874 1.896 1.944 1.68 2.057 3 Plan expenditure (in ` Crore) 450.00 425.00 202.94 332.94 525.00
3.3 GEOLOGICAL EXPLORATION AND DRILLING :
During 2012-13, 29150 metre (CIL and Non-CIL blocks) was drilled by CMPDIL against the target of 28000 metre in CIL Block : (Figures in Metre)
2012-13 2011-12 2013-14 Drilling Agency Target Revised Actual Actual Target (BE) Target (RE) (BE)
CMPDIL 28000 30000 29150 28920 30000
3.4. RESEARCH AND DEVELOPMENT : 3.4.1 CIL R&D Project: 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 Modernization of Coal Industry: In order to increase the level of modernization and mechanization in underground mines intermediate technology by deploying LHD/SDL was introduced in 64 no of mines of ECL. As on 31.3.2013, 220 no of SDL’s and 32 no of LHD’s were on roll in different underground mines of ECL. Production achieved from 220 Nos. of SDLs was 3.825 Mt, from 32 Nos. of LHDs was 0.9277 Mt and from 2 no of Doscos was 0.0174 Mt during 2012-13. Apart from introduction of intermediate technology “Mass production technology” by deploying Continuous Miner combined with Shuttle car was introduced at Jhanjra and Sarpi. Production achieved during 2012-13 from Continuous Miner operation was 0.5064 Mt at Jhanjra Project and 0.5368 Mt at Sarpi.
Introduction of Operator Independent Truck Despatch System : In order to improve fleet management and thereby productivity of HEMM, ECL has introduced a GPS based Operator Independent Truck Despatch system in Sonepur Bazari OC mine which is being successfully operated. 10 EASTERN COALFIELDS LIMITED
3.6 Steps taken to improve underground production: Considering the various operational constraints, liquidation of upper seam, availability of land for caving etc. action has been taken to improve underground production mainly by introduction of mass production technology deploying Continuous Miner with Shuttle Car in more no of underground mines in XII Plan like Jhanjra 2nd set CM, Jhanjra Low height CM, Khottadih, Tilaboni, Shankarpur, Pandaweshwar –Dalurband and Kumardihi B apart from phasing out of manual operation and converting manual mines to semi- mechanized operation by deploying SDL/LHD in loading operation. Action has been taken to introduce UDM at faces keeping in view of shortage of drilling gang and the dual purpose of availability of more coal at face and supporting as well. For Introduction of 2nd set CM at Jhanjra agreement was signed with M/s Bucyrus DBI GmbH on 14.06.12. Production from 2nd set CM is expected to start from middle of 2013-14. In Khottadih UG, CIL Board approved the PR for introduction of CM at an incremental capacity of 0.60 MTY. For introduction of high capacity PSLW in RVI seam at Jhanjra Project at a rated capacity of 1.70 MTY agreement has been signed with M/S CODCO, China on 08.01.2013.
3.7 Details of Projects approved by Board of Directors of ECL during the year :
SL Name of the Capacity (MTY) Approved Capital Date of Approval No Project Investment (` Cr)
1 PR of Jhanjhra Low 0.72 277.81 Approved by ECL Board on height CM 5.11.2012
2 PR of Kumardihi B- 0.51 171.39 Approved by ECL Board on CM 28.1.2013
3. UCE of Shankarpur OC - 2.00 401.43 Initial PR was approved by ECL (OC + UG) UG - 1.163 Board on 16.5.2011. UCE approved by ECL Board on 5.11.2012 along with financial vetting.
4. Tilaboni 1.86 788.53 Initial PR was approved by ECL Board on 28.3.11.UCE approved by ECL Board on 5.11.2012 along with financial vetting.
3.8 Details of Projects approved by the board of Directors of CIL during the year :
Sl Name of the Capacity (MTY) Approved Capital Date of Approval No Project Investment (` Cr.)
1 Sonepur Bazari 8.00 1055.05 Approved by ESC of Combined OC CIL Board on 7.8.2012
11 ANNUAL REPORT 2012-13
3.9 Project Formulation: DPR have been formulated for the Projects:
Sl. No. Project Details
1 New Kenda OC 1.10 MTY- Estimated Capital ` 94.45 Crore. 2 Ghusick UG 1.46 MTY- Estimated Capital ` 842.16 Crore. 3 North Searsole 2.00 MTY- Estimated Capital ` 883.31 Crore (departmental) & ` 214.93 crore (outsourcing) 4 Rangamati B (Tumni and 0.72 MTY Estimated Capital ` 559.56 Crore. Kanchanpur Sector) UG
3.10 Foreign Collaboration/ Technology absorption- Adaptation and innovation: i. 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. 3.11 Capital Projects/ Schemes: i. No. of new Projects: 1. Sonepur Bazari Combined OC Capacity 8.00 MTY. 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. Total – 18
3.12 Other Activities taken up during the year 2012-13:
Sl.No. Performance Indicator Target Achievement
1 ECL Final Board Approval for Continuous Miner January-2013 Not Achieved. Project(Pandaweshwar-Dalurband CM) 2 Stage - II Clearance & Final approval of Shankarpur December-2012 Not Achieved. (UG+OC) Project by Board 3 Commissioning of New Expansion project September-2012 Achieved, Commissioned (Sonepur Bazari Quarry II) in the month of May- 2012. 4 Finalisation of tenders & shortlisting of final bidder January-2013 The proposal for for construction of washery at Sonepur Bazari (8 Construction of washery Mty) has been dropped. 5 Finalisation of Tender for CM package at Khottadih February-2013 Not Achieved. UG 6 Finalisation of agreement for expansion of Rajmahal May-2012 Agreement signed on OCP (17.00 MTY) through partial outsourcing. 12.10.2012. 7 Rehabilitation of Project Affected Families of 65 Nos. 3 Families Shifted Barabhorai village for Expansion of Rajmahal OCP 8 Award of Contract for diversion of Tumni Nala at January-2013 Achieved.Work Order Sonepur Bazari Expansion Project issued on 23.05.2012.
12 EASTERN COALFIELDS LIMITED
Sl.No. Performance Indicator Target Achievement
9 Signing of agreement for second set Continuous August-2012 Achieved, Agreement Miner at Jhanjra. signed on 14th June, 2012. 10 Conversion of Manual/Mixed Under Ground Mine 5 Nos. Achieved, 7 Mines. Districts to Fully Mechanized System. 11 Capital Investment(AP 12-13) ` 450.00 crore. ` 202.94 crore. 12 Using long hole drilling technique for improving 3 Nos. of Mines Achieved. Khottadih, blasting efficiency Siduli and Chora Block Incline 13 Rationalization of Underground districts by re- 2 Nos. of Districts Achieved. Madhabpur and organization. Parascole East. 14 Preparation of Master Control Network Achieved. 1.Sonepur-Bazari Combined OC (8.00 MTY), 2.Rajmahal Expansion OC (17.00MTY), 3.Chitra Expansion OC(2.50 MTY), 4.Sarpi Augmentation UG ( 0.76 MTY), 5.Jhanjra PH-II PSLW (1.70 MTY), 6.Jhanjra 2nd set Continuous Miner ( 0.51 MTY) 7.Khottadih Continuous Miner (0.60 MTY)
3.13 Project Monitoring and Status of Implementation : Details given as Annexure - III (Separately) Gross Sales ( ` in Crores )
13 ANNUAL REPORT 2012-13
4.0 MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT: Management’s Discussion and Analysis Report is presented in a separate section forming part of the Annual Report (ANNEXURE-IV).
5.0 COAL MARKETING: 5.1 Demand vis-a-vis off-take: Actual off-take of coal in 2012-13 was 35.844 million tonne against the demand of 34.25 million tonne i.e. demand satisfaction of 105%. Sector-wise demand and off-take during the year 2012-13 compared to 2011-12 is as follows:
(Figures in Million Tonne)
Sector Off-take 2012-13 Off-take 2011-12
Demand Actual % Satisfaction Demand Actual %Satisfaction
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 0.02 0.00 0 LOCO 0.01 0.00 0 0.01 0.00 0 DEF 0.03 0.01 33 0.03 0.00 0 COLLY. CONS. 0.40 0.301 75 0.40 0.341 85 OTHERS 5.35 4.556 85 2.26 4.989 221 TOTAL 34.25 35.844 105 34.00 30.83 91
5.2. Average loading of Wagons per day : Field-wise average loading of wagons for the year 2012-13 compared to previous year is as follows : (Figures in Box/Day)
Loading of wagons Field 2012-13 2011-12 Target Actual Target Actual Raniganj 668 647 612 573 Mugma/Salanpur 119 149 109 147 Adra 21 17 20 20 Pirpainti 144 84 40 62 Rajmahal (Wharf Wall) 0 153 0 71 Total 952 1050 781 873
14 EASTERN COALFIELDS LIMITED
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 2011-12
Rail 24.158 19.79 Road 2.117 2.19 Merry-Go-Round(MGR) 9.267 8.51 Total 35.542 30.49
5.4. Stock of Coal as on 31st March 2013 is as follows : (Figures in lakh Tonnes) FIELD As on 31.3.13
Raniganj 6.40 Mugma/Salanpur 3.83 S.P. Mines 0.98 Rajmahal 10.26
Total 21.47
5.5. Spot 'e' auction & Forward 'e' auction :
2012-13 2011-12
Despatched Gain over % age Despatched Gain over % age Qty. notified Gain Qty. notified Gain Mode (in lakh price (in lakh price tonne) (` in Cr.) tonne) (` in Cr.) Spot 'e' auction Rail 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 Forward 'e' auction Road 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 2012-13 2011-12
Sales Realisation 11121.88 9100.88
15 ANNUAL REPORT 2012-13
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 POPULATION OF EQUIPMENT (HEMM) : 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 Repair / Rehabilitation of as on equipment during 2012-13
31.03.2013 31.03.2012 Target Achievement
Dragline 1 1 ------Dumper 197 232 ------Dozer 82 80 1 1 Shovel 59 62 ------Drill 45 41 ------
6.2 Percentage availability & utilisation of each type of equipment against CMPDIL norms during the year 2012-13 compared to previous year is as follows :
Equip- CMPDIL CMPDIL ment 2012-13 2011-12 2012-13 2011-12 Norms Norms 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 EASTERN COALFIELDS LIMITED
6.3 New/Replacement equipment provided to OCPs in 2012-13 is as under :
Equipment Nos. Project
Dozer 13 Rajmahal-3, Sonepur Bazari-2, Chitra-2, Shankarpur-2, Parasea-1, Baramuri-1, Mahabir-1, Bonjemehari-1
Shovel 1 Khottadih
Drill 10 Rajmahal-3, Sonepur Bazari-2, Khottadih-2, Chitra-1, Parasea-1, Baramuri-1
7.0 ENERGY CONSERVATION :
7.1.1 POWER AND FUEL CONSUMPTION
Sl. Particulars Unit 2012-13 2011-12 I. ELECTRICITY PURCHASED a) Purchased Units M.KWH 824.53 808.52 b) Total amount paid to the supply agencies (Approximate) ` in crore 559.07 505.71 c) Rate/Unit (Average) ` / KWH 6.78 6.25 d) Specific Consumption of Electricity (Approximate) KWH/Te 24.30 26.45 II. OWN GENERATION (Through DG Sets) :
a) Generated Units Lakh KWH 7.04 1.30 b) Unit generated per Ltr. of Diesel Oil KWH/Ltr. 5.80 4.70 c) Cost of Generation ` / KWH 9.87 9.44
III. AVAILABILITY OF POWER: a) Average availability of power MVA 171.54 154.10 b) Power Demand MVA 182.41 167.50 c) % Availability % 94.04 92.00
7.1.2 Progress of Power Generation from Chinakuri Power Plant: Lease of Chinakuri Power Plant expired on 31.03.2012. We are in the process of inviting tender for a fresh lease. There is no captive generation during 2012-13.
7.2 Energy Conservation & Audit: CMPDIL is empanelled as an accredited energy auditor by Govt. of West Bengal. In 2012-13, Energy Audit has been conducted for two collieries of Pandaweshwar Area and final recommendation will be implemented during 2013-14.
Energy cost per tonne of coal production in 2012-13 was ` 164.79 as compared to ` 165.49 in 2011-12. The specific consumption of electricity also decreased in 2012-13 as compared to 2011-12.
17 ANNUAL REPORT 2012-13
7.3 Underground Machinery Performance:
The detail of Underground Machineries with productivity is given below:
Equipment 2012-13 2011-12 Remarks On Productivity Productivity Roll (TPD) (TPD) SDL 219 55 57 Depletion in coal preparation gang has reduced coal LHD 30 85 95 preparation which is being compensated by introducing UDM Road Header 1 24 15 The Road Header machine (UK-DOSCO) is very old and was commissioned in 1984. This model is obsolete and spares are readily not available. It is difficult to run the machine by locally developed spares. PSLW 0 0 15 As the long wall equipment has outlived its life, long wall panel has stopped. Continous 2 1521 1566 During 2012-13, CM has Miner produced 1043332 Tonnes of coal in comparison to 779930 Tonnes of coal in 2011-12.
7.4 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. ITEM Cumulative Achievement Cumulative Remarks No. position as during position as on 31.3.2012 2012-13 on 31.3.2013
1. Co-operative Societies a) Co-operative Credit Society 74 0 74 b) Primary Consumer Co-operative Stores 30 0 30 c) Central Co-operative 04 0 04 d) Loan and Investment to Co-operative Societies (` in Lakh) 63.80 0 63.80 2. Banking Facilities No. of branches functioning 26 0 26 3. Creches 48 0 48 4. Canteens 82 0 82 5. Educational Facilities 18 EASTERN COALFIELDS LIMITED
Sl. ITEM Cumulative Achievement Cumulative Remarks No. position as during position as on 31.3.2012 2012-13 on 31.3.2013
a) DAV School 04 0 04 b.i) No. of Schools receiving recurring Grant - in - aid 162 0 162 b.ii) Amount of Recurring grant-in-Aid (` in lakh) 3381.63 404.34 3785.97 c.i) No. of Schools receiving non-Recurring Grant-in-aid 386 01 387 c.ii) Amount of non-recurring grant-in-aid (` in lakh) 286.71 1.50 288.21 d.i) No. of schools sanctioned ad-hoc grant 79 0 79 d.ii) No. of ad-hoc grant sanctioned (` in lakh) 69.60 0 69.60 e) No. of School buses engaged 156 0 156 6. Games & Sports amount spent (` in lakh) 343.50 14.58 358.08 7. Social & Cultural activities, amount spent (` in lakh) 64.85 1.46 66.31 8. CIL Scholarship a) No. of Scholarship and Cash awarded 12403 1165 13568 37 students were given special cash cash awarded b) Amount sanctioned (` in lakh) 142.38 13.59 155.97 9. 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 111 61 172 b) Amount sanctioned (` in lakh) 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 2011-12 No. of patients referred outside: 1084 759 Expenditure incurred for their treatment (in ` Lakh) 876 707.62 Health & family welfare programme: - No of camps 23 23 - No of beneficiaries 1221 1205 Villagers covered by Mobile Dispensary: - No of camps 647 648 - No of beneficiaries 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 ANNUAL REPORT 2012-13
9.1.3 Reorganisation for up gradation of Hospitals: a. 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 CORPORATE SOCIAL RESPONSIBILITY: In terms of provisions of guidelines issued by Department of Public Enterprises (DPE) on Corporate Social Responsibility (CSR) and CIL CSR Policy, ECL has taken steps for taking up various CSR activities. The following priority areas are taken up in Eastern Coalfields Ltd under the CSR activities:- 1. Drinking water facility. 2. Education. 3. Solar lighting system. 4. Health and family welfare. 5. Sanitation and public health. 6. Infrastructure development such as construction / repair of Community centers / Night shelters / Old Age Homes, building of roads, pathways and bridges. 7. Promotion of Sports & Games. 8. Setting of skill development centers. 9. Scholarship to meritorious students belonging to SC, ST, OBC & disabled categories. 10. Supplementing Development Programs of the Government.
10.1 Major Activities undertaken under CSR during the year 2012-13 :
a. Baseline Survey / Need Assessment: I In terms of DPE guidelines and CIL CSR policy Base Line Survey/Need Assessment Study (NAS) for Rajmahal, Sonepur Bazari and Pandaveswar has been conducted by engaging National Corporate Social Responsibility Hub (NCSR HUB) – Tata Institute of Social Science (TISS). In the first phase, Baseline Survey/Need Assessment Survey has been conducted in 14 villages of Rajmahal Area of Jharkhand and the final report has been submitted, which is under examination. In the second phase Baseline Survey/Need Assessment Survey has been conducted by NCSR HUB in the Sonepur Bazari and Pandaveswar of West Bengal, which has been completed and report is expected to be received shortly. 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 EASTERN COALFIELDS LIMITED
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. Construction of Additional Classroom at Maheela College, Godda:
The proposal for above work received from DC, Godda has been approved for an estimate of ` 2.95 crore.
An amount of ` 1.47crores have been released to DC Godda, Government of Jharkhand for the execution of first stage of work. d. Construction of Additional Classroom at Deoghar College, Deoghar:
The proposal for above work received from DC Deoghar for an estimated amount of ` 2.95 crore has been
approved. An amount of ` 1.02 crores have been released to DC Deoghar, Government of Jharkhand for execution of the work. e. Skill Development Initiatives of ECL with ATDC, Jharkhand: ECL with its initiatives to provide livelihood to project affected people of coalfield areas in collaboration with Apparel Training & Design Centre (ATDC), a Nodal Agency, Ministry of Textiles, Government of India, two training programmes were sponsored consisting of 44 and 43 candidates belonging to weaker section of the society SC/ST/OBC and after training all were given gainful placement in the different textile industries
of Bangalore, Delhi and Ranchi. An amount of ` 8.77 lakhs has been spent in this regard. This initiative taken by ECL towards the Skill Development was appreciated by Secretary, Ministry of Textile, Government of India and also applauded to initiate more of such training. f. Women Empowerment at Bankola Area: Another step to strengthen the women belonging to the weaker section of the society in the area of sustainable development and women empowerment is being undertaken by providing training in Tailoring, and other Village Industries product like Candle Making, Food Processing, Silk Screen Painting, Phenyl
and Liquid Soap Making to the 100 women of nearby villages of Bankola Area. An amount of ` 9.89 lakhs has been approved for this project run by an NGO Durgapur Creative Welfare Society in the name of
“SWABHIMAAN” under the supervision of WIPS and AIWC of ECL, an amount of ` 6.4 lakhs has been disbursed for this initiatives. g. Summer Camp at Bidhan Chandra Pratibandhi Karma Kendra, Khandra: A Camp was organized for the distribution of aids and appliances for the physically challenged persons of Bidhan Chandra Pratibandhi Karma Kendra, Khandra is an example of sharing value in the society by AIWC. It also distributes items of regular use among the Old Aged persons of Prantik Old Age Home Burnpur for the upliftment of downtrodden and weaker section of the society. h. Imparting free Computer education at DAV School, Pandaweshwar: A school for imparting training on Computer skill has been opened for children belonging to the poor and weaker section of the society at Pandaweshwar Area which is facilitating habitants of the nearby villages and surrounding areas where there is no facilities for conducting Computer training.
21 ANNUAL REPORT 2012-13
10.2 MoU Activities :
Date of Date of Measure- Sl. Performance Target Achievements Reporting of Acceptance ment No. Indicator for the Details to TISS Conveyed by Unit year Database TISS
1 Providing drinking water ` Lakh 45 Completed in 18.01.2013 21.01.2013 by 60 nos. of hand pumps March-2013 in nearby villages (Rajmahal Area)
2 Lighting by solar lights in ` Lakh 20 Completed in 18.01.2013 21.01.2013 the villages nearby March-2013 Rajmahal Area.
3 Construction of PCC Month of Jan’13 Completed in 18.01.2013 21.01.2013 road from Nema completion March-2013 panchayat Bhawan to Telegama Village via Johar Sthan with culverts.
4 Providing well-equipped Month of Dec’12 Completed in 18.01.2013 21.01.2013 mobile medical van (1 completion March-2013 No.)
5 Construction of 2 nos. Month of Jan’13 Completed in 18.01.2013 21.01.2013 room at Pandaweshwar completion August-2012 Community Centre
10.2.1 Details of CSR Expenditure:
Sl. Details Amount (in ` crore)/ No. Percentage 1 PAT for the year under review(2011-12) 962.13 2 CSR expenditure 9.42 3 CSR expenditure as percentage of PAT 0.98% 4 CSR expenditure as percentage of minimum prescribed 5% of retained earning or ` 5/- per tone of coal production. 5 Training expenditure on CSR (to be treated as CSR expenditure) 0.00 6 Unspent Balance amount of CSR Budget rolled over to the following year 7.08 7 Contribution to CSR HUB as percentage of CSR Budget 0.20% 8 CSR Budget for the year 2012-13 16.50
22 EASTERN COALFIELDS LIMITED
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:-
10.3.1 Residential Building: There are altogether 91180 number of residential houses in the company, out of which 62960 numbers are standard quarters and 28220 numbers of non-standard houses. At present housing satisfaction is more than 118%. Regular repairing and maintenance of these quarters are being attended. In the year 2012-13 a budget of ` 17.73 crore was provided for block repairing and about 4136 quarters were thoroughly repaired under block repairing programme.
10.3.2 Welfare Buildings: For the welfare of the workmen, there is tremendous improvement in the assets since nationalization, details as below- a) Hospitals- 12 b) Dispensaries- 128 c) Canteens- 82 d) Rest Shelters- 137 e) Multipurpose Institutes- 12 f) Adult Education Centers- 03 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. Name of Work Present Status
1 Construction of Coal transportation road from MIC to Nakrakonda at Jhanjra area Work completed
2 Construction of permanent bye pass road from Nabaghanapur to Jhanjra Area Office. Work completed.
23 ANNUAL REPORT 2012-13
Sl. no. Name of Work Present Status 3 Strengthening of coal traffic road from Kunustoria Road junction to ‘C’ Pit of Bansra Colliery along with construction of culverts at Kunustoria Area. Work completed.
4 Construction of road from Nimcha cabin to weigh bridge at Kunustoria Area. Work completed.
5 Construction of approach road (1.00 km) with culverts/ retaining wall and strengthening of balance portion (2.70 km) of the road from Shyamsundarpur Colliery to Bankola no. 1 Railway Siding via Area Office under Bankola Area. Work completed.
b) One of the major works related to railway siding, wharf wall etc. is as below :
Sl. No. Name of Work Present Status
1 Construction of new railway siding Detailed Project Report has been approved by Eastern to serve Sonepur Bazari Project. 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 Accident Statistics for the year of 2012-13
YEAR 2012-13* 2011-12 i) Fatal Accidents (Nos.) 10 7 ii) Fatalities (Nos.) 10 7 iii) Serious Injuries (Nos.) 79 82 iv) Fatality / Million tonne output 0.295 0.229 v) Fatality / 3 Lakh Man-shifts 0.172 0.115
(* subject to reconciliation with DGMS)
11.2 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 EASTERN COALFIELDS LIMITED 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. Quality of materials and their supply in mines has been ensured. 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. Illumination Survey in OC Mines and UG Mines were carried out. 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. We have followed recommendation of 10th Conference on Safety in Mines in respect of contractual workers like IME, Supply of protective footwear etc. t. Inclusion of safety bylaws, statutory provisions in NIT. 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. w. 2nd ETMS is working and one more is to be installed. x. LMDs have been provided in Degree III Mines. y. A meeting held with all Workmen’s 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 ANNUAL REPORT 2012-13
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 :
CALENDER OF SAFETY DRIVE FOR THE YEAR 2012 – 13 :
MONTH ITEMS OF SAFETY DRIVE
April-12 Safety drive on Fire & Explosion Hazard in UG Mines. May-12 General cleanliness on surface. June-12 Review of monsoon preparedness. July-12 Stowing, mechanization of UG loading and roof bolting. August-12 Survey, ventilation of UG mines, Roof and side dressing and support. September-12 Rescue preparedness, handling of explosives and magazine & surface installation like winding, MMV etc. October-12 Roof and side dressing and support. November-12 Fire hazards and firefighting arrangement. December-12 Roof and side dressing and support. January-13 Special drive on Departmental OCP & Out sourcing patches. February-13 Removal of fallen coal. March-13 Restricted Neutral System.
No. of roof bolts consumed in various years are as under: (Nos. in lakh) CONSUMPTION 2012-13 2011-12 Roof Bolts 8.53 6.68 Cement Capsules 32.31 27.12
11.3 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 EASTERN COALFIELDS LIMITED
11.5 Safety Training
Year Two Weeks Structured Training for Front line supervisors Workmen’s Inspector
No. of No. of No. of No. of Programme Participant Programme Participant
2012-13 4 86 3 33
2011-12 4 115 3 50
11.6 Training for appearing in Statutory Exams:
Type of Exam No. of employees trained Training Institute A. For appearing in 1st Class - Coal 12 MTS , Dhadka 2nd class –Coal 18 MTS , Dhadka Overman 11 MTS , Dhadka Mining Sirdar 157 MTS , Dhadka Surveyor 16 MTS , Dhadka Electrical Supervisor 14 MTS , Dhadka Winding Engine driver 27 MTI, Ratibatti B. Trade Course Surveyor 33 MTS , Dhadka Mining Sirdar 52 MTS , Dhadka Electrician 31 MTS , Dhadka C. Diploma in Mining (Part time) 160 Raniganj Mining Institute
11.7 Vocational training (Statutory at VTC) 2012-13.
Type of Training 2012-13 2011-12 Basic 564 1027 Refresher 8690 9351 Spl. Training 6399 6675 I.O.D. 394 170 Contractors Workers 4568 3142
11.8. RESCUE SERVICES IN ECL: Rescue Services have been rendered to all collieries of ECL, Chunch Victoria Area of BCCL, Ramnagar Colliery of IISCO as well as to Civil Administration and Public Authorities (as and when required) through
27 ANNUAL REPORT 2012-13
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 1 Belbaid Kunustoria 03.05.2012 --- 2 Parascol(W) Kajora 18.06.2012 22.06.2012 3 Belbaid OCP patch Kunustoria 28.06.2012 07.07.2012 4 Parascol(W) Kajora 27.07.2012 28.07.2012 5 Khottadih Pandaweshwar 31.10.2012 24.11.2012 6 Nakrakonda Bankola 12.03.2013 14.03.2013
Other than the above 4 (four) more emergency rescue services were done as follows :
Sl. No. Colliery Area Date Nature of occurrence 1 Lachipur Kajora 25.09.2012 Lifesaving Call 2 Ratibati Satgram 05.01.2013 Inspection against water accumulation deep faces and position of other equipment in face. 3 Banjemehari OCP Salanpur 17.01.2013 Open blazing fire and dealing in 2.1m3 hydraulic shovel. 4 Khottadih Pandaweshwar 10.02.2013 Open blazing fire in CHP
11.9 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
No. of Rescue personnel trained 679 682
No. of personnel freshly trained 40 47
No. of Refresher practices 5970 5834
No. of Emergencies 10 6
11.10 New apparatus/equipment purchased: Procurement of 70 kg dummy body for training purpose & 14 Nos. of Resuscitating Apparatus are in pipe line.
28 EASTERN COALFIELDS LIMITED
11.11 Zonal Rescue Competition: Zonal Mines Rescue Competition, Eastern Zone, for the year 2012-2013 was held on 13th October, 2012 in which 13 (thirteen) Nos. Rescue teams took part (including BCCL Area-XII).
11.12 All India Mines Rescue Competition (Coal & Metal): 43rd All India Mines Rescue Competition (Coal & Metal) was conducted by Mines Rescue Station Ramagundam (SCCL) from 27th to 29th November, 2012 two teams from ECL took part in that competition and were awarded 3rd Best in Fresh Air Base & First Aid.
11.13 Budget Provision for Mines Rescue Station : (` in Lakhs) Capital Budget Revenue Budget Particulars 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 Measures taken for Inventory Control and Management: The closing inventory figures for the year ending 2012-13 as compared to the last year 2011-12 shows that the inventory in value terms has decreased by 6.98% and in months consumption the decrease is to the extent of 17.82%. The figures are given as follows:
Sl. No. Details 31.03.2013 31.03.2012 % Reduction
1 Inventory (Value) (` in crore) 167.26 179.81 6.98 2 Inventory (Months’ Consumption) 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 Implementation of Online Materials Management System: Online Material Management System (MMS) is fully operational in eight areas stores of ECL. At moment efforts are on to implement the same in Neamatpur Central Excavation Stores and Sodepur Central Stores. The implementation of online MMS at Pandaweshwar, Mugma and Bankola area stores is also scheduled during 2013-14.
13.0 QUALITY CONTROL:
29 ANNUAL REPORT 2012-13
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 2012-13 2011-12
% of Grade conformation with respect to despatch 98.20 89.66
No. of samples with one grade slippage 332 811
% of one grade slippage 5.70 10.15
No. of samples with two grade slippage & more 46 15
% of two grade slippage & more 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 Total Quantity Despatched Amount of Deduction (Rail & Road) Deduction ` /Tonne (in Lakh 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 2011-12 Details Power Other Total Power Other Total EPS Consumers EPS Consumers Qnty. Despatched (by Rail) (in L/T) 300.21 55.21 355.42 246.36 57.04 303.40 Qnty. Weighed under EPS (in L/T) 297.02 55.13 352.15 244.19 56.55 300.74 Weighment % under EPS 98.94 99.85 99.08 99.12 99.14 99.12
30 EASTERN COALFIELDS LIMITED
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 2011-12 Power Others Total Power Others Total Qnty. Sized in CHP/ FB (L/T) 248.66 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 Total 100 100 100 100 100 100
14.0 VIGILANCE:
Vigilance Activities : (2012-13)
14.1 Punitive :
Sl. No. Subject No. 1 Complaints received 301 2 Complaints taken up for verification 54 3 Complaints pending as on 31.03.2013 17 4 Cases taken up for Investigation 12 5 Investigations completed 08 6 Investigation pending as on 31.03.2013 04 7 Regular cases registered by CBI 01 8 Cases taken up for Disciplinary Action No. of No. of Cases of persons Major 04 05 Minor 02 03 9 Departmental Inquiries completed 10 14 10 Cases in which penalty imposed : (i) Major penalty 02 03 (ii) Minor penalty 05 06 (iii) Administrative Action 02 02 (iv) Exoneration 01 03 11 Departmental Enquiry Cases pending as on 31.3.2013 : (i) Major 21 33 (ii) Minor 03 31 12 Inquiries pending with IAs more than 6 months 09 11
31 ANNUAL REPORT 2012-13
14.1 PREVENTIVE: Sl. No. Subject No. 1 Surprise Checks/Inspections conducted 34 2 Vigilance Awareness programmes organized: a) Awareness Programmes with internal faculties 27 b) Stake Holders Meet 3 c) Competitions Essay/Painting etc. 2 d) Seminar/Workshops with external faculties 3
In regular HRD programmes, 2 sessions (3 hours) are devoted for vigilance awareness.
14.3 Measures taken for systematic improvement: During the year 2012-13, the following systemic improvement proposals were received : 1. 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. An exercise was undertaken regarding system improvement in respect of recording of dependents of employees and its periodic updation. 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 Vigilance Awareness Week: ECL observed Vigilance Awareness Week from 29th October, 2012 to 3rd November, 2012 as per directives of Central Vigilance Commission. A pledge was taken to bring about integrity and transparency in all spheres of our activities and also to work unstintingly for eradication of corruption in all spheres of life. On this occasion, a Compendium of CVC Circulars was also released. Vigilance Department organized 5 seminars in different areas of ECL on the topic- “Transparency in Public Procurement”. On 31.10.2012, Birth Anniversary of Sardar Vallabh Bhai Patel was celebrated at the Vigilance Department hall by paying rich tributes to Sardar Vallabh Bhai Patel. On 01.11.2012, various competitions like essay writing, debate, painting (sit and draw), slogan writing and cultural presentations were organized by Vigilance Department. Prizes to the winners and all participants were distributed. A T- 20 Cricket Match was organized on 02.11.2012 at Bankola Area on this occasion. A Stake Holders’ Meet was organized at ECL HQ on 3.11.2012. A News Letter “Sachetana” was released by Vigilance Department, ECL during the final day programme of the Vigilance Awareness Week, 2012. Stake Holders and others were presented with Mementoes.
14.5 Extent of IT usage and the E-Governance: Tenders are being placed simultaneously on company website www.easterncoal.gov.in & Govt. Tender portal-www.tenders.gov.in. Besides, the Tender and Bid documents, Registration Forms for the Vendors and vigilance circulars are also available on the website. The company has started posting of information related to Voluntary Retirement Scheme approvals, Re- instatement of employees, monthly status of employment under NCWA and Employment offered against Land Loser Scheme regularly on the Website for improving transparency.
32 EASTERN COALFIELDS LIMITED
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 ITI’s 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 ECL’s 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 ANNUAL REPORT 2012-13
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 IMPLEMENTATION OF INTEGRITY PACT PROGRAMME: Integrity Pact has been implemented in ECL. During the year 2012, in 157 tenders (149 from Purchase, 7 from CMC ands 1 from Civil) IP were incorporated. No complaints were received and no matters were referred to Independent External Monitors.
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 OFFICIAL LANGUAGE IMPLEMENTATION: ECL’s HQ and 11 Areas are situated in ‘C’ region where 86% employees are posted. Only 3 areas are situated in ‘A’ region (Jharkhand). The following steps have been taken to increase the use of official language in our company: 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 EASTERN COALFIELDS LIMITED
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 BIFR & BRPSE STATUS: As on 31st March, 1997 accumulated losses of the company exceeded its networth by ` 251.20 crores. Hence company was referred to BIFR in October, 1997 in terms of Section 15(1) of SICA. Due to financial restructuring done by CIL on 31st May 1998 by converting unsecured loan of ` 1179.45 crore into equity, the net worth of the company became positive as on that date and company came out of BIFR. Since the company continued to incur losses year after year the networth of the company again became negative as on 31st March, 1999 and the company was again referred to BIFR in November, 1999. Company’s case was registered as case no. 501/2000. BIFR declared the company as sick company in February, 2001 and appointed State Bank of India as its operating agency for formulating a Rehabilitation Scheme. After detailed deliberations with the stakeholders company prepared a Rehabilitation Scheme dated 31st January, 2004. This was discussed in a joint meeting held on 3rd March, 2004 and all the stakeholders supported the scheme. Hence operating agency submitted a fully tied up Draft Rehabilitation Scheme of Eastern Coalfields Limited (March 2004) to BIFR. As per scheme, net worth of the company was slated to become positive in 2008-09 with concessions from CIL. BIFR sanctioned the scheme in November, 2004 for implementation. The scheme was also examined by the office of the Controller General of Accounts. They had also recommended the scheme for revival of the company. BIFR’s sanctioned Rehabilitation Scheme was revised as per the advice of BRPSE. As per the Revised
35 ANNUAL REPORT 2012-13
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 Jan’10 advised to revise the physical parameters from 2010-11 to 2016-17. Hence the financial projections earlier made were revised. BRPSE reviewed the ECL’s 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-à-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 COMPUTERISATION & I.T. ENABLED SERVICES:
18 .1 Roll out of e-Tendering Solution in ECL: i) 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 EASTERN COALFIELDS LIMITED
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 Non-Executive Information System (NEIS): NEIS has been developed, implemented and made available in ECL website so that the person concerned may get information on-line from anywhere at any time.
19.0 ELECTRONICS & TELECOMMUNICATION: In order to keep pace with advancement of communication and information technology the following had been achieved in 2012-13.
19.1 Surface Communication: a. 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 Underground Communication: a. 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. 89 Nos. Loud hailing sets are being procured for providing U/G communication system.
19.3 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 LAND ACQUISITION & LAND INFORMATION STATUS:
20.1 Status of Land Acquisition: The status of land acquisition/possession mode-wise, project-wise for the year 2012-13 is given below:
Mode of Acquisition Acquired (in Ha) Possession (in Ha) Direct Purchase of Tenancy land 19.45 22.67 L.A. Act 2.29 2.29
CBA Act 310.60 416.69 Issue of Notification U/s(9) 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 ANNUAL REPORT 2012-13
Under L.A. Act: 1. 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. Gourandih D Block - 42.48 acre - Proposal is pending with LA Collector, Burdwan. 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 EASTERN COALFIELDS LIMITED
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 Status of Mining lease of Sand: Temporary Working Permit for extraction of sand for stowing purpose for the period of 01.04.2012 to 30.09.2012 and from 01.10.2012 to 31.3.2013 has been obtained from the Jt. Secretary, Government of West Bengal, C&I Dept., Kolkata on 04.04.2012 and on 06.10.2012 respectively.
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. ECL Security – 1806 as on 01.04.2012. 2. Contractual Security – 2109 persons. 3. CISF- 950 persons.
ECL Security: The main duty of ECL Security is to guard the company’s 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 ANNUAL REPORT 2012-13
Steps taken for revamping of security at ECL: a. Requisition of 449 CISF personnel has been sent to CISF HQ. These persons are exclusively for Explosive Magazine of ECL. b. New recruitment of 215 security guards. 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 June’12.
Steps being taken to check/prevent the illegal mining of coal: a. 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. Regular meeting of Central/State/District level Authorities to check/prevent illegal mining. The concerned Police Stations are advised by District Authority and Sub-Divisional Authority to increase their vigil check to stop re-opening of the dozed illegal mining spots. 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.
Steps taken to check/prevent theft of coal: a. 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 EASTERN COALFIELDS LIMITED
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 Coal Vehicle Person FIRs Raids seized (tonne) seized Apprehended Lodged
Seizure of Coal from illegal traffcking
2012-13 West Bengal 295 1944 11 19 19 Jharkhand 324 2104 --- 07 02 Total 619 4048 11 26 21 2011-12 Total 551 5648 18 07 28 Variation 68 –1600 –07 19 –07 Seizure of Illegal Mined Coal by Security, CISF & Local Police : 2012-13 West Bengal 70 ------Jharkhand 16 ------Total 86 ------2011-12 Total 40 667 05 47 11 Variation 46 –667 –05 –47 –11
B) 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 State Sites Volume Used Expend (approx) Fir/Info. Sent Dozed (L. Cum) ( ` in Lakh) to Local PS 2012-13 West Bengal 1315 0.4104 32.35 116 Jharkhand 28 4.7063 165.91 44 Total 1343 5.1167 198.26 160 2011-12 Total 1893 3.4215 114.48 111 Variation –550 1.6952 83.78 49
This year different type of Meetings i.e. Central/State/District/Sub-Divisional/CIL/Company and Colliery level were held on Mitigation of Illegal Mining and Theft of Coal in West Bengal and Jharkhand States. After setting up the Commissionrate Asansol-Durgapur in the month of Sept’11, the drastic action taken by ECL Management alongwith District Authority, the Illegal Trafficking of Coal and Illegal Mining has gone down considerably. Due to close liaison with Police, re-opening of those dozed off illegal mining pits are not re- opened as was done in earlier period by the miscreants Theft of other materials from colliery / units has decreased in the recent past.
41 ANNUAL REPORT 2012-13
C. Theft / Recovery of other materials : Year 2012-13 2011-12 Variation (Increase/decrease)
No. of Incidents 175 196 –21
No. of FIRs/ Infos. 170 168 02
Property Stolen (in ` ) 7519033.00 10465859.00 –2946827.00 Property recovered (in ` ) 206450.00 639000.00 –432550.00
Person apprehended 03 03 ----
22.0 PERFORMANCE OF OUTSOURCING OC PATCHES :
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.
22.1.1. OC Patches awarded through hiring of HEMM :
Sl. W.O. / LOA No. & Work Value / Completion Name of Patch / Area No. Name of Agency Period
1 Lohandia OC Patch at Rajmahal LOA No.-345, Date- 21.05.2012 2 years ` 104.05 crore, M/s. Mahalaxmi Infra Contract Pvt. Ltd.
2 Simlong Ph-II at Rajmahal LOA No.-378, Date - 01.06.2012 4 years ` 43.06 crore, M/s. ANE(JV)
3 North Searsole OC patch Kunustoria LOA No.-863, Date - 11.10.2012 2 ½ years ` 64.10 crore, M/s. Coal Mines Associated Traders Pvt. Ltd.
4 OB Removal of Khottadih at LOA No.-112, Date - 30.01.2013 7 years Pandaweshwar ` 159.48 crore, M/s. Mahalaxmi Infra Contract Pvt. Ltd.
5 Mallick Basti OC Patch at Satgram LOA No.-884, Date-29.10.2012 1 year ` 8.66 crore, M/s. BBTA-MTLT-AJJW(JV)
LOA No.-942, Date-28.11.2012 1 year 6 Nakrakonda Ext.-B at Bankola ` 65.54 crore, M/s. APM-CISC (JV)
LOA No.-755, Date-22.08.2012 3 years 7 Jambad OC Patch at Kajora ` 55.44 crore, M/s. Mahalaxmi Infra Contract Pvt. Ltd.
8 Rajmahal Expansion OCP (17 MTY) W.O. No.-264 dated 14.04.2012. Agr. No.-04 / 12 ½ years HQ / 2012-13 dated 12.10.2012. ` 4679.53 crore. M/s Rajmahal Coal Mining Ltd.
42 EASTERN COALFIELDS LIMITED
22.1.2. Work tendered through e-mode & under finalization (Outsourcing OC Patch) :
Sl Name of work Proposed Proposed Remarks No Coal Overburden
1 Chapapur 10 8.00 L. Te. 23.00 L. cum Part-II is yet to be opened.
2 Madhabpur Ph-II 0.54 L. Te 1.80 L. cum
3 Kumardihi ‘B’ 4.03 L. Te. 13.62 L. cum Award of work is under finalization. 4 Bahula 6.00 L. Te. 39.63 L. cum
5 S.P. Mines - 54.50 L. cum
22.1.3 Transportation works: Discount Bidding: Transportation works having estimated value more than ` 1.5 crore (Coal) and more than ` 2.00 Crores (Sand) through tendering from HQs in respect of different areas of ECL had been finalized.
23.0 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. It’s 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 ANNUAL REPORT 2012-13
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) Foreign exchange earnings and outgo (ANNEXURE-VII). iii) Details about research and development activities of the company (ANNEXURE-VIII). iv) Addendum to the Director’s Report under Sec. 217(3) and 227(2) of the Companies Act 1956 stating Statutory Auditor’s Report and Management’s reply thereon.
For and on behalf of the Board of Directors
Sanctoria, Dated: 24th May 2013 (Rakesh Sinha) Chairman-cum-Mg. Director
44 EASTERN COALFIELDS LIMITED Annexure - I Present Status Project completion report submitted by IIT, Kharagpur was discussed in Apex Committee meeting held on 12.05.2012 at Ranchi. The Committee suggested IIT, Kharagpur to conduct further field trials at Jhanjra project by utilizing the balance fund in the project, to refine sensors developed and provide real-time strata monitoring system as envisaged in the project and submit addendum to the report by Nov 2012. IIT, Kharagpur is yet to submit the Addendum. Project completion report submitted. The Borehole GPR system was used for the first time to delineate inaccessible mine workings below railway lines near Ratibati Colliery, Satgram area. The Apex Committee in its meeting held on 10.08.2011 accepted the project completion report and recommended the same for consideration by R&D Board of CIL. The status of the project was reviewed in Apex Committee meeting held on 10.8.2011. The Committee after detailed deliberation recommended to R&D Board of CIL for for-closure the project as it was found not feasible to continue with the project.The foreclosure report is yet to be submitted by CIMFR, Dhanbad. Lakh) 215.00 20.422 2100.00 ( Progressive Disbursement
Revised / Feb. 2011 May, 2011 June, 2010 of completion scheduled date
Feb, May, 2008 2009 2009 June, Start Date of
216.98 3339.98 20.90518 in Lakhs) Outley
Financial ( Status of On-going R & D Projects upto 31st March, 2013 Name of the Project 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. Recovery and Utilization of Coal Mine Methane in Jharia and Raniganj Coalfields Project Code: CIL/R&D/ 1/30/09 Implementing agency: CIMFR, Dhanbad 1 2 3. Sl. No. 3.4.1. 45 ANNUAL REPORT 2012-13 Present Status Field trial permission has been obtained from DGMS vide letter No. 1745 dated 10.7.2012. Installation of portable radio has been completed at Jhanjra MIC mine and field trial is going on satisfactory from 26.7.2012. Two way voice communication systems from surface to underground and vice versa is working well. Testing of MCD is in progress at ERTL. Testing of flame proof enclosure for both Root Access Point (RAP) and Mesh (MAP) is in progress at CIMFR, Dhanbad. i) Laboratory investigations in respect of 20mm, 22mm and 25mm, Fe-600 bolts supplied by SAIL are under trial at IIT, Kharagpur ii) Pullout tests were conducted at Jhanjra project in W-6 panel. iii) Lab work has been started for standardization of resin grouted material. iv) Several pull out tests were conducted on resin grouted rock bolt samples at IIT, Kharagpur lab. 33 numerical models for different rock bolts assemblies have been developed and accordingly technical report submitted by blasting cell, CMPDIL in the month of Jan. 2013. Lakh) 446.20 273.83 ( Progressive Disbursement 2013 Revised / Dec. 2011 Dec. 2012 14th Dec., June, 2011 June, 2013 June, 2012 of completion scheduled date 2010 2010 Start Date of 15th Jan. 15th Dec., 489.70 491.08 in Lakhs) Outley
Financial ( Name of the Project Underground Trapped Miner Location system Project code - CIL/R&D/ 1/35/10 Implementing agency: TCS, CMC & CMPDIL (ME), Ranchi Investigation of Bolt Behavior in Development and Depillaring panels under Blast induced dynamic loading. Project Code: CIL/R&D/ 1/42/10. Implementing Agencies: CMPDIL, Ranchi, IIT, Kharagpur & RDCIS (SAIL), Ranchi. 4. 5. Sl. No.
46 EASTERN COALFIELDS LIMITED Present Status Commenced from 1st March 2013. Date of approval: 05.12.2012 and Commenced from 1st March, 2013. 0.00 Lakh) 50.00 ( Progressive Disbursement Revised / May, 2014 Feb., 2015 of completion scheduled date 1st 2013 2013 Start March, March, Date of 66.19 187.84 in Lakhs) Outley
Financial ( Name of the Project Research and development on efficient energy management pilot study and action plan. Project Code: CIL/R&D/ 1/55/13. Implementing Agencies: IISWBM, Kolkata & DFIC Management Consultants Pvt. Ltd., Kolkata Development of Rubber Compound and Repair Techniques for Trailing Cables of Underground Mining Machines Project Code : CIL/R&D/1/54/2013 Implementing Agency : IIT, Kharagpur 6 7 Sl. No.
47 ANNUAL REPORT 2012-13 Annexure - II Status Final project completion report submitted. Final project completion report submitted. Final project completion report submitted.
Lakh) 255.00 340.00 400.00 ( CMRI - 70.0 ISM – 55.00 Progressive NIRM - 130.00 Disbursement
date of Revised Nov. 2011 Mar. 2010 Oct. 2008 Mar. 2012 Jan. 2012 Mar. 2011 Oct. 2010 Feb. 2011 Sep. 2010 Sep. 2011 April, 2009 completion Scheduled /
Nov. Mar. 2005 May, 2007 2008 Start Date of
10.00 402.66 200.142 461.3674 342.2692 For CMRI - in Lakhs) Outley
For CMPDIL - Financial For ISM-63.3154 For NIRM-187.91 ( Status of On-going S & T Projects upto 31st March, 2013 Name of the Project 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 Model studies on gravity blind back filling method and evaluation of pre- jamming indication parameters in the field (MT/154) Implementing agency: IIT, Kharagpur
1 2 3 Sl. No. 3.4.2. 48 EASTERN COALFIELDS LIMITED Present Status Final project completion report submitted. Draft project completion report submitted. Detailed system analysis for finalization of and design of 3D CAD models development is in progress. Procurement of equipment is under progress. 170 Lakh) 70.00 30.00 ( CMERI-95.0 CIMFR - 75.0 Progressive Disbursement date of Revised Jan. 2012 Dec. 2011 Aug. 2015 completion Scheduled / Start Date of Jan. 2010 Feb. 2009 Sep. 2012 89.02 14.20 63.00 64.76 103.22 440.12 251.57 125.55 in Lakhs) Outley For RDCIS - For CMERI - For CIMFR -
For CMPDIL - For CMPDIL - Financial ( Name of the Project Application of high strength steel roof-bolts in underground coal mines(MT/156) Implementing agency: RDCIS, DGMS & CMPDIL Carbon sequestration in re-vegetated coal mine wastelands (EE/ 40) Implementing agency: CIMFR Development of tele robotics and remote operation technology for- underground coal mines MT(EoI)/162 Implementing Agency : CMERI, Durgapur, CIMFR, Dhanbad & CMPDIL, Ranchi 4 5 6 Sl. No.
49 ANNUAL REPORT 2012-13
Annexure - III
3.14 Project Monitoring and Status of Implementation of Ongoing Projects :
Sl. Name of Capacity Capital Date of Status of Implementation No. Project (MTY) (` Cr.) Approval 1 Shankarpur UG 0.12 (Inc.) 8.13 Jun’ 02 Project has completed. Completion report is under examination.
2 Kottadih OC Aug. 1.5 19.26 Nov’ 11 LOI issued on 30.01.13 for OB removal. Work started.
3 Sarpi Aug UG. 0.30+0.46 147.86(120.35 June’ 08 Production achieved during 12-13 is = 0.76 Additional) 0.5368 Mt. Land acquisition is under progress. For construction of CHP, LoI has been issued on 27.02.2013.
4 Bankola R-VI Seam 0.24 19.14 Mar’ 03 Project involves deepening & widening of UG shafts. Out of 208m of drift drivage, 102m completed. Project has been advised to prepare estimate for deepening and widening of shaft as per conventional method.
5 Kumardihi B UG 0.42 79.23 June’ 06 ECL Board approved the proposal for withdrawal of PR. Project Report for introduction of Continuous Miner for Capacity of 0.51 MTY with a capital
investment of ` 171.39 crores has been approved by ECL Board in its meeting held on 28-01-2013. Financial vetting of the PR for Continuous Miner is under process.
6 Khandra NKJ UG 0.285 18.85 July’ 03 Deepening & widening of shafts have been completed.
7 Parasea Dobrana UG 0.16 (Inc.) 11.89 Feb’ 04 Project involves deepening & widening of shafts. Staple pit completed. Drift drivage completed 160 m out of 253 m. Action has been initiated for preparing the drawing & estimate for shaft sinking/ deepening and widening of shaft.
8 Siduli UG 0.30 54.99 Dec’ 06 Project involves two new shafts sinking for entry to the lower seams. But top seams are yet to be liquidated. A proposal had been received from Area for exploitation of R-VI seam with the drivage of 2 Nos. of incline in place of Shafts. CMPDIL has taken up the job for Recast of PR.
50 EASTERN COALFIELDS LIMITED
Sl. Name of Capacity Capital Date of Status of Implementation No. Project (MTY) (` Cr.) Approval
9 Nabakajora- 0.30 56.14 Dec’ 06 Proposal for exploitation of developed pillar Madhabpur Block UG of upper seam by opencast method in this block along with the drivage of incline for entry to bottom seams for UG method of exploitation in place of this Nabakajora- Madhabpur Block on-going Project is being examined.
10 Chitra East OC 2.50 112.69 Aug' 07 Section 11 has been completed for acquisition/ possession of 323Ha. (J.B. land) under LA act. Distribution of compensation has been completed. But possession of aforesaid land is yet to be received from State Govt. Stage-II clearance for diversion of 124.28Ha Forest land is pending.
11 Rajmahal Expansion 17 MTY 153.82 Sept '09 Tender for Partial outsourcing (17.00 OC MTY) has been finalized. W.O. issued on 14.04.2012. Contract agreement signed on 13.10.2012.
12 Jhanjra R-VI Seam 1.70 287.17 Nov' 06 Contract was signed with M/s CODCO, PSLW China for PSLW Package on 8-01-2013.
13 Mohanpur Expansion 1.0 14.23 June' 08 Land acquisition is under progress. OC
14 Belbaid (Dhasal ) UG 0.36 (Incre) 69.11 Feb' 09 Project involves deepening & widening of shafts. Staple pit completed. Action has been initiated for preparing the drawing & estimate for shaft sinking/deepening and widening of shaft.
15. 2nd set Continuous 0.51 147.25 May - 11 Agreement was signed with M/s Bucyrus Miner at Jhanjra UG DBT GmbH on 14.06.2012 for supply of Mine CM Package.
51 ANNUAL REPORT 2012-13
Sl. Name of Capacity Capital Date of Status of Implementation No. Project (MTY) (` Cr.) Approval
16. Narainkuri UG 0.54 149.06 Feb' 09 Action has been initiated for preparing the drawing & estimate for shaft sinking/ deepening and widening of shaft.
17. Khottadih Continuous 0.6 127.17 May '11 Model NIT document for continuous Miner UG cutting equipment received from CIL in March’13. For new incline drivage tender floated on 21.11.12. Price bid opened on 25.03.2013.
18. Sonepur Bazari 8.00 1055.05 Aug.' 12 Development activities like Diversion of combined OC Tumni nala, Rehabilitation of villages is under progress. DPR for construction of Railway Siding has been approved by Eastern Railway. Revised and Final DPR (May 2013) submitted by RITES on 25.03.2013.
52 EASTERN COALFIELDS LIMITED
Annexure-IV
MANAGEMENT’S 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 India’s total energy needs and will continue to be crucial to India’s 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 world’s 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. India’s 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 ANNUAL REPORT 2012-13
Strength and weakness:
Competitive Strength: a. 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. Demand is more than the supply position. e. Workmen capable of working in difficult conditions. 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. Difficult geo-mining condition. c. Dense population impedes acquisition of land. d. Huge infrastructure built on coal bearing areas hinder open cast mining. e. Huge pumping and sand stowing cost. f. Socio-political conditions and work culture not conducive.
Opportunities and Threats:
Opportunities: a. Leverage on rise in prices of non-coking coal internationally. b. Realisation of better value for coal through e-marketing. c. Resource working small OC patches to curb illegal mining. d. Positive response from Central Trade Unions to issues involving production and productivity. e. Increasing co-operation from State Governments in solving the problems.
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 ECL’s 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 EASTERN COALFIELDS LIMITED
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 2011-12 OCP - Coal (MT) 27.052 23.725 Underground Coal (MT) 6.849 6.833 Total (MT) 33.901 30.558 Growth % 10.94 -0.8 OBR- (MCUM) 76.448 60.305 Growth % 26.77 7.22
SEGMENT-WISE OR PRODUCT WISE PERFORMANCE: (in Million Tonnes) Particulars 2012-13 % 2011-12 % Growth (%) Despatch to Outsiders under FSA 27.300 75.36 21.689 70.35 25.87 E-auction 4.209 11.68 3.872 12.56 8.70 Despatch under MoU 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 Total Off-take 35.844 100.00 30.832 100.00 16.25
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 ANNUAL REPORT 2012-13
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 Rail 24.158 19.79 Road 2.117 2.19 Merry-Go-Round(MGR) 9.267 8.51 Total 35.542 30.49
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. FSAs with State Nominated Agencies.
56 EASTERN COALFIELDS LIMITED
Research and Development For research and development needs ECL engaged CMPDIL, which is one of the subsidiary of CIL. CMPDIL acts as a nodal agency for coordination of the research activities, disbursement of funds as well as monitoring the progress of our research and development activities.
Memorandum of Understanding between Eastern Coalfields Limited and Coal India Limited and Ministry of Coal: For every financial year ECL enters into a MoU with CIL and MoC to set various parameters for physical and financial performances. The achievements are graded on a scale of 1 to 5; excellent being the grade 1 and poor as 5. For the year 2011-12, ECL has obtained “Very Good” grading.
Risks and Concerns: The major risk and concerns of ECL are outlined below: a. 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 it’s 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 management’s 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 ANNUAL REPORT 2012-13
Special Audit by the Departmental officials As and when required, the Internal Audit Department of the company undertakes special audit assignments, at the direction of Competent Authority, which cover specified areas. The Internal Control Systems in force are evaluated and the detailed report is submitted to the competent authority with suggestions, if any, for improvement.
Physical verification of stores: Physical verification of stores is conducted by Store Verification Inspectors of the department. The shortage/ surplus noticed during such verification is immediately brought to the notice of the concerned store authority.
Checking and Certification of Stowing & Protective works: Checking and certification is conducted on quarterly basis by Internal Audit Department and the final claim is submitted to the Office of Coal Controller, Kolkata.
Compliance with the directive of ECL/CIL Audit Committee: The Audit Committees of ECL/CIL review the adequacy of the Internal Control System based on reports submitted by the Internal Auditors and suggest corrective measures for implementation wherever necessary. Audit Committee of CIL has also identified the areas for control and improvement of performances. It is felt that the Internal Control systems are adequate having regard to the size of the Company and the nature of transactions carried out by it vis-à-vis different types of audits and control measure, in force.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE Results of Operations: (` in crores) Particulars 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
Income from Sale of Coal: Sales is presented as gross sales net of (i) various statutory levies comprising royalty, cess on coal, central excise duty and stowing excise duty : and (ii) sales tax. The Income from sale of coal is mainly dependent on the pricing and production of coal and distribution thereof.
Expenditure: Break up of Major Heads: (` in crores) Particulars 2012-13 2011-12 Growth Absolute % age (Accretion)/Decretion in stock 168.92 –44.32 213.24 481.14 Stores & Spares 649.95 574.22 75.73 13.19 Salary & Wages 5300.14 5217.06 83.08 1.59 Power & Fuel 463.82 382.42 81.40 21.29
58 EASTERN COALFIELDS LIMITED
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 Interest & Finance Charges 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 Profit Before tax 1897.18 962.13 935.05 97.18 Profit after tax 1655.54 962.13 693.41 72.07
Cash Flows: (` in crores) P a r t i c u l a r s 31.03.2013 31.03.2012 Opening Cash & Cash equivalents 603.15 337.95 Net cash from operating activities –154.00 543.27 Net cash from investing activities –11.51 –253.85 Net cash used in financing activities 1.51 –24.22 Change in Cash and cash equivalents –164.00 265.20 Closing cash & cash equivalents 439.15 603.15
Man Power
59 ANNUAL REPORT 2012-13
HUMAN RESOURCE DEVELOPMENT:
Manpower:
Manpower as on Increase (+)/ Category Decrease (-) 31.3.2013 31.3.2012 Executive 2587 2446 141 Supervisor 5870 6175 –305 Ministerial/ Clerical 3954 4416 –462 Highly Skilled/ Skilled 23944 24076 –132 Semi-Skilled/ Unskilled 37092 39817 –2725 Badli 0 2 –2 Trainee 829 1077 –248 Total 74276 78009 –3733
Reasons for Variation in Manpower : Particulars Executive Non-Executive Total INCREASE Fresh Appointment 219 1 220 Appointment against medically unfit cases 0 4 4 Appointment against death cases. 0 511 511 Reinstatement/Re-joined. 0 80 80 Transfer in from other companies. 248 3 251 Appointment against Land Losers 0 146 146 Total Increase (A) 467 745 1212 DECREASE Retirement 160 3744 3904 Medical Unfit 0 12 12 Death 10 704 714 Resignation 11 6 17 Dismissal/Termination 1 39 40 Transfer to other companies 145 50 195 VR under GHS / EVRS 1 62 63 Total Decrease (B) 328 4617 4945
VARIATION (A – B) 139 –3872 –3733
60 EASTERN COALFIELDS LIMITED
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 1 No. of strikes 1 2 2 Mandays lost (in lakh) 0.28 0.69 3 Production lost (in lakh tonnes) 0.17 0.89
Law and Order :
Subject 2012-13 2011-12 Law and order (Disturbance) 119 159 Production Lost (in Lakh Tonne) 0.097 0.15
Workers’ Participation in Management : The workers participation in management in ECL is fully operative in all wings of our company. The Joint Consultative Committees are also operating at Corporate as well as at Project/Unit level. The meeting of JCC are held regularly where important issues are discussed thread bear viz. production, productivity, safety, cost, welfare etc besides other committee/boards viz safety committee, welfare board, medical advisory board, house allotment committee, canteen committee etc are also functioning in our company. The Trade Unions very actively participated in such committees.
Meetings 2012-13 2011-12
No. of JCC Meeting held at HQ level 03 03 No. of structured Meeting held at HQ level 21 21
Employment provided under NCWA & LLS : Employment provided under 2012-13 2011-12 NCWA 738 1079 Land Losers Scheme 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 ANNUAL REPORT 2012-13
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 ST Candidates Number % Number %
31.03.2013 74276 15319 20.62 7893 10.62
31.03.2012 78009 17614 22.57 8379 10.74
Mobile Medical Dispensary at one of the Areas of Eastern Coalfields Limited
Other Activities :
Sl. Measurement Target for Performance Indicator Achievement No. Unit the Year
1. Manpower Rationalization through - Voluntary retirements Number 25 64 - Redeployment % 100% 78 %
2. Attrition as % of total employees % 0.01 0.021 %
62 EASTERN COALFIELDS LIMITED
Sl. Measurement Target for Performance Indicator Achievement No. Unit the Year
3. Formulation / Implementation of systems for yes 5 4 management of Talent such as - Job rotation No. of Executives system, reward system, sponsoring sr. executives for Advanced Management Programme, growth opportunities etc.
4. Number of suggestions generated per 0.005 0.008 employee per year
5. Linkage of Developmental Plan of Executives Yes/No Yes Yes with Performance Management System
6. Implementation of PRP linked to PMS Yes/No Yes Yes
7. Nos. of Nominations/entries submitted for Nos. of nominations/ 5 6 National Awards ( PM Shram Awards, entries submitted for Achieved Vishwakarma Rashtriya Puraskar) national awards
8. Effectiveness of Grievance Redressal system % settlement 80% 84% - % of grievances settled vis-a-vis received during the year
9. Pension, medicare, Yoga classes to reduce Number of programs/ 5 5 stress where the job is stressful, setting up date of implemen- Achieved of wellness centre such as Gym etc. tation of scheme
10. Employee satisfaction survey - ESI measure % 50 62.7 %, Achieved in %
11. Formulation & Implementation of social Yes/ No Yes Yes security scheme
12. Number of structured meetings with Number of meetings 20 24 employees’ representatives at corporate level
13. Participation in survey conducted by external Participation in Feb’13 Achieved, agencies (Employer of choice, Best Survey by External Nomination filed in employer, Best Place to Work etc.) Agency for exce- October-2012 llence awards
63 ANNUAL REPORT 2012-13
Sl. Measurement Target for Performance Indicator Achievement No. Unit the Year
14. Benchmarking projects undertaken in area Automation of Feb’13 Achieved, of HR employee information February-13 system
15. Reservation for SC,ST,OBC in appointment Yes Yes
16. Posting of Deputationist Yes Yes
17. Submission of Report on compliance of DPE 30th Achieved. Report Guidelines June’12 sent on 16.08.2012
18. Date of submission to DPE of completed 15.09.12 Achieved.Report data-sheet for PE Survey sent on 14.09.2012
Implementation of 2007 Pay Revision :
Sl. Whether Complied Performance Indicator Relevant Para / O.M. No. Yes No 1. Affordability clause for adoption of 2007 pays revision. Para 3 of O.M. YES dated 26.11.2008
2. No intermediary pay scale and 3% increment rate Para 2(vi) & Para 5 of O.M. YES with no predetermined stages dated 26.11.2008
3. Fitment to be given only once, no revision during Para 1(i) of O.M. YES currency of pay revision dated 26.11.2008
4. Perks and Allowances limited to 50% of Basic pay Para 10 of O.M. YES dated 26.11.2008
5. Only four specified allowances will be outside the Para 10 of O.M. dated YES purview of ceiling of 50% OF BASIC PAY. No other 26.11.2008 allowances/perks to be kept outside 50% limit
6. PMS in place with ‘Bell Curve Approach’(not more Annexure-III(iii) of O.M. Note-1 than 15% graded as ’Outstanding’ and 10% to be dated 26.11.2008 graded as below par(No PRP for ‘Below Par’)
7. Constitution of Remuneration Committee headed by Annex-III(iv) of O.M. dated YES Independent Director(for PRP purpose) 26.11.2008
64 EASTERN COALFIELDS LIMITED
Sl. Whether Complied Performance Indicator Relevant Para / O.M. No. Yes No 8. Company’s car can be allowed to Executive Director/ Para 14 of O.M. dated Note-2 GM only if they head the Projects. 26.11.2008
9. Allowances are allowed w.e.f. the date of issue of Para 17 & Para 2(v) of YES Presidential Directive or w.e.f. 26.11.2008 (if the O.M. dated 26.11.2008 & Presidential Directive is issued by 1.5.2009) 02.04.2009
10. No conflict between Officers pay revision and wage Para(viii) of O.M. dated Note-3 revision of workmen 9.11.2006
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 -Company’s 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 Schedule’B’ 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 ANNUAL REPORT 2012-13
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 non- executive 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 non- executives 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 EASTERN COALFIELDS LIMITED
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 Actual Target Actual Exe. 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 2011-12 Exe. 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. Training External (Within India) : 2.i) At IICM :
2.i.a) 1 Week or more 373 0 0 373 402 0 0 402
2.i.b) Seminar / Short Course 15 3 0 18 30 0 0 30
2.ii) Out Company Training (other than IICM) 2.ii.a) Short duration 27 0 0 27 12 2 2 16 2.ii.b) Long duration 0 0 160 160 0 0 160 160 2.ii.c) 1 Week or more 87 27 37 151 92 19 5 116 2.ii.d) 6 Weeks intensive 4 0 0 4 4 0 0 4 course in survey (at ISM) 67 ANNUAL REPORT 2012-13
Nature of Training 2012-13 2011-12 Exe. Supv. Worker Total Exe. Supv. Worker Total 3. Trainees :
3.a) MT's 0 0 0 0 0 0 0 0
3.b) PDPT 0 98 0 98 0 67 0 67 4. Seminar / Workshop 170 23 7 200 246 4 0 250 excluding in-company 5. External (abroad) 2 0 0 2 9 0 0 9
TOTAL 1449 669 1672 3790 1897 1329 1640 4866
3. Other Training Activities :
Sl. Measurement Target for Performance Indicator Achievement No. Unit the Year
1. Certified training in project management No. of Executives 5 Achieved. 7
2. Certified training in Contract management No. of Executives 5 Achieved. 5
3. % actualization of Training Plan & Training % 15.30 25.3 Days per employee per year
4. Developing critical mass of leaders through % 5.10 6.11 a system of career planning & development
5. Training budget as % of employee cost % of employees 0.184 0.06 cost
6. % fulfilment of training plan for Multi-skilling (%) 2.04 2.55 / Skill Up-gradation of non-executives
7. Training interventions in new/advanced (%) 1.02 7.22 technology - % fulfilment of training plan in new technology
8. Presence of Mentorship Development Yes (%) 80 160, Achieved Programme - Nos. of Mentors & Mentees
9. % of Quality Circle projects completed 5 quality circles to 100% 100% Achieved, 6 against total Quality circle projects be formed Quality Circle. undertaken in a year
68 EASTERN COALFIELDS LIMITED
ENVIRONMENTAL PROTECTION AND CONSERVATION: The impact on the environment due to coal mining activity is being monitored constantly by the company and adequate measures for control of Air, Water & Noise Pollution, Land degradation, Deforestation etc. are being undertaken in accordance with the provisions of all statutory norms, Acts, Rules on a regular basis by way of the following Environment Protection Activities.
Afforestation activity: Afforestation/plantation is a regular activity taken up every year in ECL. This year, plantation of fruit bearing and medicinal species have been taken up as a sustainable development activity opening up approach to commercial bio-diversity and income generation of local people. Against MoU Target of 10,500, the total number of trees/ sapling planted during the year 2012-13 is 50,950 Nos. in 25 Ha area.
Environment Management Plan Monitoring: Monitoring of EMP and EC conditions, as approved by MoEF, is being done on a regular basis.
Statutory Compliance of State Pollution control Boards: a. 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.
Observance of World Environment Day: World Environment Day was observed on 5th June 2012 in ECL HQs, Sanctoria and also in areas of ECL by hoisting Environment Flag & taking oath along with tree plantation.
Environmental Clearance of Cluster mines and new / expansion of Projects :
No. of Normative Peak Capacity Lease Cluster Status of Progress in 2012-13 No. Mines Capacity in MTPA Area
1 11 2.70 3.30 3692 EMP document submitted to Jharkhand State Pollution Control Board on 21-01- 2013 for conducting Public Hearing.
2 3 0.36 0.45 1081 EIA study conducted and draft EMP prepared.
3 3 3.33 3.97 1628 Revision of TOR made on 23-07-2012 and Data generation for EIA/EMP is being conducted.
69 ANNUAL REPORT 2012-13
No. of Normative Peak Capacity Lease Cluster Status of Progress in 2012-13 No. Mines Capacity in MTPA Area
4 3 6.35 7.71 3353 Mohanpur OCP was deleted from Cluster- 4 by MoEF letter dated 19-03-2013 for separate consideration of Mohanpur OCP. But revision of TOR is awaited.
5 2 0.485 0.63 2970 EIA study conducted and draft EMP prepared.
6 9 1.453 2.25 4775 EMP document submitted to Jharkhand State Pollution Control Board on 30-01- 2013 for conducting Public Hearing.
7 4 0.58 0.74 2313 Draft EMP prepared.
8 7 1.53 2.75 8281 Revision of TOR made on 20-07-2012 and Data generation for EIA/EMP is being conducted.
9 15 6.25 8.00 7145.4 EMP document submitted to West Bengal State Pollution Control Board, modification made as per SPCB and submitted again to SPCB on 05-02-13 for conducting Public Hearing.
10 19 7.70 7.70 6349 11 11 9.10 9.90 4218 Data generation for EIA/EMP is being 12 19 27.16 31.83 13167 conducted.
Simlong 1 2.00 2.30 327 EMP document submitted to Jharkhand Expansion State Pollution Control Board on 05-02- OCP 13 for conducting Public Hearing.
Status of Air Pollution Control Facility : Drilling, blasting & transport of coal are the main cause of air pollution. Design of the mining equipment is such that it produces less dust and it is suppressed at the point of generation. Before starting the drilling & cutting of coal, water spraying is done and blasting is done scientifically with optimum quantity of explosive and in a designed pattern so as to generate less dust, provides good fragmentation, less ground vibration and less fumes. Spraying is done before coal is transported out. The transfer points of coal transport are fitted with static water sprinklers. All OCPs have adequate nos. of Mobile Water Sprinklers through which haul roads are kept wet to suppress the dust. Fixed type of water sprinklers is used in CHP, Siding and other transfer points to suppress the dust.
Status of monitoring facility of Air, Water and Noise pollution. The existing Environmental Laboratory at CMPDIL, RI-I, Asansol, which monitors air, water and noise level data of ECL, is being expanded to cater to additional monitoring requirements for matching the expansion of production capacity in future. There will be modernization of the existing facility with installation of PM 2.5 latest designed air monitoring equipment to cater to the requirements of recent statutory requirements
70 EASTERN COALFIELDS LIMITED
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. Minor irrigation activities : Water from many abandoned OCPs/quarries is being used for irrigation by the villages around the ECL’s lease hold areas. The West Bengal Govt. is utilizing many such OCPs like Old Purusottampur OCP, Old Real Jambad OCP, Old Alkusha Gopalpur OCP, Old Dabor OCP and Old Dalmia OCP to provide Minor irrigation facilities to surrounding villages. 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. Filling with fly ash and its eco-restoration: About 50 Hectares of land of few old abandoned pits of Kajora and Kunustoria has been filled in the fly-ash from nearby Thermal Power Plants of DVC. c. Land reclamation study by Satellite Surveillances: Land restoration/reclamation monitoring in Rajmahal (17.0 MTY)OCP & Sonepur Bazari (8.0 MTY) OCP is being conducted through remote sensing satellite surveillance by CMPDIL since 2008 to assess the area of backfilled, social forestry, active mining area, water bodies and distribution of wasteland, agriculture land and forest in the leasehold area of the project. Study of the report of 2012-13 reveals that: 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 ANNUAL REPORT 2012-13
ISO certification of Sonepur Bazari OCP & Rajmahal OCP: ISO certification (ISO 9001: 2008, ISO 14001:2004, OHSAS 18001 and SA: 8000:2008) for Rajmahal OCP and Sonepur Bazari OCP is underway through CMPDIL at an estimated cost of ` 65, 95,954/-. The process started in 2012-13 and is progressing as per schedule.
Sustainable Development initiatives by ECL : Sustainable Development is development that meets the need of the present without compromising the ability of future generations to meet their own needs. Sustainable development involves an enduring and balanced approach to economic activity, social progress and environmental responsibility. A host of Sustainable Development activities were being undertaken by ECL which stands integrated into the core activities as well as ancillary activities; i.e. in the form of environmental management, Research & Development as well as CSR/Welfare activities. The activities taken up during the year are afforestation, solar lamps, rain water harvesting and bio-diversity conservation project. SD Committee has been constituted. In the 2nd Sub-Committee Meeting of SD held on 04.08.2012 SD plan has been approved. The key decisions taken by the committee during the year are as follows: 1. 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. Measurement Target for Performance Indicator Achievement No. Unit the Year
1. Total S.D. Expenditure Amount (` ) 51.67 Lakh 37.00 Lakh
2. Renewable/Clean/Alternative Energy No of projects 2 Completed uses(Solar Lights) undertaken
3. Rain water Harvesting No of schemes 2 Completed
4. Conducting Workshop / Training on Nos. of Programme 2 Completed awareness of Sustainable Development
5. S.D. Reporting of 2011-12 Completion Time January,2013 Completed
6. S.D. performance report Yes Published in website on 18.12.2012.
72 EASTERN COALFIELDS LIMITED
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) Composition of the Board: 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 ANNUAL REPORT 2012-13
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 Part Time Non- Total Official Official Date Strength Present Strength Present Strength Present Strength Present 18.05.2012 4 4 2 0 6 4 12 8 24.07.2012 4 4 2 2 5 5 11 11 04.08.2012 4 4 2 2 5 5 11 11 19.09.2012 4 4 2 1 5 5 11 10 05.11.2012 4 3 1 1 5 3 10 7 28.01.2013 4 4 2 2 5 3 11 9 16.02.2013 4 4 2 2 5 3 11 9 24.03.2013 5 5 2 2 5 5 12 12
Details of number of Board meetings attended by each of the Directors are given below :
Board Meetings Sl. No. of other Directors Held during the Directorships No. Attended tenure Functional Directors:
1 Shri Rakesh Sinha Chairman-cum-Mg. Director 8 8 NIL 2 Shri S.K. Srivastava Director (Personnel) 8 7 NIL 3 Shri S. Chakravarty Director (Technical) Opn. 8 8 NIL
74 EASTERN COALFIELDS LIMITED
Board Meetings Sl. No. of other Directors Held during the Directorships No. Attended tenure
4 Shri A.K. Soni, Director (Finance) (up to 31.01.2013) 6 6 NIL
5 Shri C. K. Dey, Director (Finance) (w.e.f 01.02.2013) 2 2 NIL
6 Shri Ramesh Chandra Director (Technical) P&P (w.e.f 04.03.2013) 1 1 NIL
Part-time Official Directors:
7 Shri D.N. Prasad Director (Technical), MoC (Up to 01.06.2012) 1 0 2
8 Shri V. Peddanna Director, MoC (w.e.f 01.06.2012) 7 6 NIL
9 Shri A.K.Sinha Director (Finance), CIL (up to 31.10.2012) 4 3 2
10 Shri A. Chatterjee Director (Finance), CIL (w.e.f 03.12.2012) 3 3 2
Special Director appointed by BIFR:
11 Shri K.K.Gautam 8 7 NIL
Part Time Non-Official Director:
12 Shri Subrata Chaudhuri 8 6 1
13 Shri S.K. Mohanty 8 8 NIL
14 Prof. (Dr.) M.K. Srivastava (till 07.06.2012) 1 0 NIL
15 Shri S.M. Lodha 8 4 8
16 Shri S.M. Sharma 8 8 NIL
75 ANNUAL REPORT 2012-13
(C) Remuneration of the Director :
(i) Functional Directors :
Remuneration for the year 2012-13
(Amount in ` )
Name Designation All elements of remuneration Other package (i.e. salary, pension, Total P.F., gratuity etc.) benefits Shri Rakesh Sinha Chairman-cum-Mg. Director 3102276 36990 3139266 Shri S.K. Srivastava Director (Personnel) 2311949 23600 2335549 Shri S. Chakravarty Director (Technical) Opn. 2422077 0 2422077 Shri A.K. Soni Director (Finance) (Upto 31.01.2013) 4613001 12140 4625141 Shri C. K. Dey Director (Finance) (From 01.02.2013) 357356 0 357356
(ii) Part-time official Directors: No remuneration is paid to the Part-time official Directors by the Company.
(iii) Part-time Non-official Directors: No remuneration is being paid to Part-time Non-official Directors except sitting fee. Details of sitting fee paid for attending Board / Committee Meetings are shown below.
Sl. No. Name of the Director Total Sitting Fee Paid (`) 1 Shri K.K. Gautam 265956 2 Shri Subrata Chaudhuri 122360 3 Shri S.K. Mohanty 176068 4 Shri S.M. Lodha 156068 5 Shri S.M. Sharma 232248
TOTAL 952700
3. 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.
Scope of Audit Committee: 76 EASTERN COALFIELDS LIMITED
The scope of Audit Committee is as follows:- 1. Overseeing of the company’s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible. 2. Recommending to the Board the fixation of audit fees. 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) Matters required to be included in the Directors Responsibility Statement to be included in the Board’s report in terms of clause (2AA) of section 217 of the Companies Act, 1956; b) Changes, if any, in accounting policies and practices; 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) Compliance with legal requirements relating to financial statements; f) Disclosure of any related party transactions; and g) Qualifications in the draft audit report. h) The management discussion and analysis of financial condition and results of operations. 5. 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 ANNUAL REPORT 2012-13
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 Part Time Total Official Non-Official Strength Present Strength Present Strength Present Strength Present 16.04.2012 1 1 2 0 5 2 8 3 17.05.2012 1 1 2 0 5 2 8 3 24.07.2012 1 1 1 1 4 4 6 6 04.08.2012 1 1 1 1 4 4 6 6 19.09.2012 1 1 2 1 4 4 7 6 04.11.2012 1 1 1 1 4 4 6 6 28.01.2013 1 1 1 1 5 3 7 5 01.03.2013 1 1 1 0 5 4 7 5
Audit Committee Attendance: Details of number of Audit Committee meetings attended by each of the members are given below:-
78 EASTERN COALFIELDS LIMITED
Sl. No. Members Meeting held during No. of respective tenure of Meetings members attended.
1 Shri S.K. Mohanty 8 8 2 Shri A.K. Sinha (upto 31.10.2012) 5 3
3 Shri D.N. Prasad (upto 01.06.2012) 2 0
4 Shri V. Peddanna (w.e.f 04.08.2012) 4 2 5 Shri K.K. Gautam 8 7
6 Prof. (Dr.) M.K. Srivastava (upto 07.06.2012) 2 0
7 Shri S.M. Lodha 8 5 8 Shri S.M. Sharma 8 7
9 Shri S. Chakravarty 8 8
10 Shri S. Chaudhuri (w.e.f 05.11.2012) 2 0
[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 Meeting held during No. of Meetings respective tenure of attended members
1 Shri S.M. Lodha 3 3 2 Shri K.K. Gautam 3 3 3 Shri S.M. Sharma 3 3 4 Shri S. Chakravarty 3 2 5 Shri A.K. Soni 3 3
79 ANNUAL REPORT 2012-13
[D] Committee for Evaluation, Appraisal and Approval 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 Meeting held during No. of Meetings respective tenure of members attended 1 Shri Rakesh Sinha 4 4 2 Shri V. Peddanna 2 2 3 Shri K.K. Gautam 4 4 4 Shri Subrata Chaudhuri 4 2 5 Shri S.M. Lodha 4 2 6 Shri S. Chakravarty 4 4 7 Shri A.K. Soni 4 4
[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 2012- 13, 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 Meeting held during No. of Meetings respective tenure of members attended 1 Shri Subrata Chaudhuri 3 3
2 Shri K.K. Gautam 3 3
3 Shri S.M. Sharma 3 3 4 Shri S.K. Srivastava 3 3
[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 EASTERN COALFIELDS LIMITED
Branch Auditors : 2. M/s. Lodha & Co., 14 Government Place East, Kolkata-700069 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. M/s. U S Saha & Co., 35, Bahir Sarbamangla Road, Burdwan-713101 6. M/s. J. Gupta & Co., 3, Satyanarayan Temple Road, 1st Floor, Bandaghat, Howrah-711106
Annual General Meeting: Particulars of Annual General Meeting of Shareholders of the company held during last 3 years were as under:-
Special Year Date & Time Place Attendance Resolution, if any
2009-10 22.05.2010 Sanctoria Shri S. Chakrabarti, CMD, ECL - 11:00 AM Shri Prabir Chakraborty, Finance Manager, CIL Shri S.K.Srivastava, D (P), ECL Shri S. Chakravarty, D(T) Opn., ECL Shri N. Kumar D (T) P&P, ECL.
2010-11 23.05.2011 Sanctoria Shri Rakesh Sinha, CMD, ECL - 11:00 AM Shri Anirudha Pal, Sr. Officer (F),CIL Shri S. Chakravarty, D (T), OP, ECL (member of Audit Committee) Shri N. Kumar, D (T), P&P, ECL Shri A.K. Soni, D (F), ECL
2011-12 21.05.2012 Sanctoria Shri Rakesh Sinha, CMD, ECL - 4:00 PM Shri B. Bhattacharya, Sr. Manager (F), CIL, Representative of CIL, Chairman, CIL and Director (Finance), CIL Shri S.K. Srivastava, D (P), ECL Shri S. Chakravarty, D (T), OP, ECL (member of Audit Committee) Shri A.K. Soni, D (F), ECL
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 ANNUAL REPORT 2012-13
(b) Code of Conduct for Directors and Senior Executives: The Code of Conduct for Directors and Senior Executives was approved by the Board of Directors of the company in its 214th Meeting held on 15th October, 2007. This was circulated to the Directors and senior executives and obtained their affirmation. It was also uploaded in the website of the company www.easterncoal.gov.in.
(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) Risk Management, Fraud Prevention and Identification: Risk Assessment and Mitigation Policy has been approved by the ECL Board in its 257th Meeting held on 05.11.2012.
5. Means of Communications: Annual Report, Operational and financial performance of the company is uploaded in company’s 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 company’s 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. Training of Board Members: The Functional Directors are the heads of the respective functional areas by virtue of their possessing the requisite expertise and experience. They are aware of the business model of the company as well as the risk profile of the company’s business. The Part-time Directors are also fully aware of the company’s business model.
8. Shareholding pattern of the Company: 100% shares of the company are held by Coal India Ltd.
9. Whistle Blower Policy: The company promotes ethical behaviour in all its business activities. The Board has put in place mechanism of reporting illegal or unethical behaviour. Employees are free to report violation of laws, rules, fraud or unethical conduct to the Competent Authority. The reports received from any employee will be reviewed by the Screening Committee. The management personnel are obligated to maintain confidentiality of such reporting and ensure that the whistle blowers are not subjected to any discriminatory practices.
The Board of your company had accorded its approval in its 218th Meeting held on 27th March, 2008 to sign a MoU with M/s. Transparency International in line with the MoU entered into by CIL for implementation of Integrity Pact and the same was carried out.
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 data- sheet for PE Survey was 14.09.2012.
82 EASTERN COALFIELDS LIMITED
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 Manager’s 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 Hon’ble 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 ANNUAL REPORT 2012-13
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 EASTERN COALFIELDS LIMITED
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 Manager’s Certificate of Competency (Coal) and qualified for 1st Class Mine Manager’s 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 ANNUAL REPORT 2012-13
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 master’s 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 EASTERN COALFIELDS LIMITED
Union Finance Minister’s 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 Bachelor’s 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 NGO’s 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 who’s who society, USA has recognized him as one of the new member of appear in the 2011-2012 edition of international who’s 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 ANNUAL REPORT 2012-13
ANNEXURE - VI DUTTA 7A, Kiron Sankar Roy Road, 2nd Floor, SARKAR & COMPANY Kolkata - 700 001 CHARTERED ACCOUNTANTS
Auditors' Certificate on Compliance with the conditions of Corporate Governance
To the Members of Eastern Coalfields Limited
We have examined the compliance of conditions of Corporate Governance by Eastern Coalfields Limited (ECL, the Company) for the year ended 31st March, 2013.
The compliance of conditions of Corporate Goverance is the responsibility of the management. The Company is the subsidiary of Coal India Limited, a Government Company which is listed and the shares of the Company (ECL) are not listed in any stock exchange so that Clause 49 of the listing agreement is not applicable. Under the circumstances our examination was carried out in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India and was limited to procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of Corporate Goverance. It is neither an audit nor an expression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we certify that the company has generally complied with the conditions of Corporate Governance.
We further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency with which the management has conducted the affairs of the Company.
For DUTTA SARKAR & CO. Chartered Accountants
Sd/- Date : 19th May, 2013 (B. K. Patra) Place : Kolkata Partner Membership No. 063444 Firm Registration No. : 303114E
Telephone : +91 33 2248 1760 / 2213 1333 / 2248 3297, Telefax : +91 33 2282 4889 / 2210 3885 E-mail : [email protected] / [email protected] Website : www.duttasarkar.com
88 EASTERN COALFIELDS LIMITED
ANNEXURE - VII FOREIGN EXCHANGE EARNING & OUTGO
(i) Activities relating to exports, initiatives : Company is not engaged in export activities. taken to increase exports, development of new export markets for products, services and export plans.
(ii) Total Foreign Exchange used and earned : (` in Lakh)
Sl.No. Description 2012-13 2011-12
(A) Foreign Exchange Used 1. CIF value of imports (a) Raw materials 0.00 0.00 (b) Components, stores & spares 1386.00 2118.00 (c) Capital goods. NIL 2897.00
2. Traveling / Training Expenses 7.00 14.00
3. Expenses on know-how and Foreign Consultancy 0.00 0.00
4. Pension to the Foreigners 0.00 0.00
5. Others 548.00 695.00
Total 1941.00 5724.00
(B) Foreign Exchange Earned – Nil Nil
89 ANNUAL REPORT 2012-13
ANNEXURE - V III FORM - B
FORM FOR DISCLOSURE OF PARTICULARS WITH RESPECT TO TECHNOLOGY ABSORPTION
RESEARCH AND DEVELOPMENT (R & D)
1. Specific area in which R&D carried out : Company does not have its own by the Company Research & Development (R&D) set up. CMPDIL, a Subsidiary of Coal India Lim- ited (CIL) does the R&D work centrally for all the Subsidiaries of CIL. 2. Benefits derived as a result of the above R & D : NA 3. Future Plan of action : NA 4. Expenditure on R & D : NA (a) Capital -- (b) Recurring -- (c) Total -- Total R&D expenditure as a percentage of : NA total turnover.
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION 1. Efforts, in brief, made towards technology` : Nil absorption, adaptation and innovation. 2. Benefits derived as a result of the above : Nil efforts, e.g. product improvement, cost reduction, product development, import substitution, etc. 3. In case of imported technology (imported : Nil during the last 5 years reckoned from the beginning of the financial year), following information may be furnished : (i) Technology imported : Nil (ii) Year of Import : Nil (iii) Has technology been fully absorbed? : Nil (iv) If not fully absorbed, areas where this : Nil has not taken place, reasons therefore and future plans of action.
90 EASTERN COALFIELDS LIMITED CONFIDENTIAL H$m`m©b`, àYmZ {ZXoeH$ dm{UpÁ`H$ boImnarjm VWm nXoZ gXñ` boImnarjm ~moS©>-II H$mobH$mVm nwamZm {ZOm_ _hb, AmMm`© OJXre MÝÐ ~mog amoS>, H$mobH$mVm - 700 020 OFFICE OF THE PRINCIPAL DIRECTOR OF COMMERCIAL AUDIT & EX-OFFICIO gË`_od O`Vo 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 {XZm§H$ / 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/- Kolkata (Yashodhara Ray Chaudhuri) Dated : 20.05.2013 Principal Director of Commercial Audit & Ex-Officio Member, Audit Board - II Kolkata
Xw0^m0/Phones : 91-33-22875380/7165/2360/8838, 2281-0043/5654, \¡$Šg/Fax : 91-33-22800062 B©0 _ob/E-mail : [email protected], Vma : ""H$mo`boIm'' / Telegram : "COLADIT",
91 ANNUAL REPORT 2012-13
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
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 Char- tered 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 supple- mentary 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 selec- tive 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 Statu- tory Auditors report under section 619 (4) of the Companies Act, 1956.
For and on behalf of the Kolkata, Comptroller & Auditor General of India Dated : 20.05.2013 Sd/- (Yashodhara Ray Chaudhuri) Principal Director of Commercial Audit and Ex-Officio Member, Audit Board - II Kolkata.
92 EASTERN COALFIELDS LIMITED
AUDITORS' REPORT TO THE MEMBERS OF EASTERN COALFIELDS LIMITED
AUDITORS' REPORT Management's Reply
1. Report on the Financial Statements We have audited the accompanying financial statements of Eastern It is a statement of fact. Coalfields Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, incorporated (a) the accounts of Head Office and 8 Areas / Units audited by us and also (b) 19 Areas / Units audited under Section 228 of the Companies Act, 1956 by the Branch Auditors, and a summary of significant accounting policies and other explanatory information.
2. Management’s Responsibility for the Financial Statements Management is responsible for the preparation of these financial 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) in the case of the Balance Sheet, of the state of affairs of the It is a statement of fact. Company as at March 31, 2013; (b) in the case of Statement of Profit and Loss, of the profit for the year It is a statement of fact ended on that date; and (c) in the case of the Cash Flow Statement, of the cash flows for the It is a statement of fact year ended on that date.
4. Emphasis of Matter i) A Large quantity of scrap materials appearing to be of considerable Audit observation is noted. It may value (amount is not ascertainable) were found lying in different be seen from the audit observation areas/ units under open sky. These are exposed to the risk of that there is a significant 93 ANNUAL REPORT 2012-13
depletion/loss. Value of scrap, auctioned during the year under audit, improvement in disposal of scrap
is amounted to ` 9.94 crores against ` 1.16 crores during previous as compared to the previous year. year 2011-12. ECL is producing coal with various We are of the opinion that assessment of this large quantity of type of plant & machineries which scrap need to be made with a policy of disposal thereof with physical includes Heavy Earth Moving verification followed by technical evaluation, if necessary. Machineries, Side Discharge Loader etc. which after completion of life are declared as scrap. It is not possible to provide a cover for all such machineries after they are declared as scraped. It may be mentioned that the company has a system of recording generation and disposal of scrap for effective control. Security arrangements are also provided to prevent the possibility of pilferage, theft etc. The disposal of such scrap is a continuous process following strict guidelines of various authorities. All efforts are made to expedite disposal of the scraps following such guidelines and procedures. ii) Difference between Stores Ledger and Financial Ledger was Audit observation is noted. Actions
reconciled up to March’13 with the constant difference of ` 24.89 are being initiated for writing off the Lacs and ` 51.86 Lacs for revenue and capital respectively. However constant difference amount, a provision has been made in the accounts parking in Stores against the provision already Suspense Account. For current year reconciliation between Stores made. ledger and Financial ledger is stated to be in progress. We are of the opinion the above long outstanding un-reconciled amount need to be written off. iii) In spite of the company presently having negative net worth, the It is a statement of fact. financial statements have been prepared on a going concern basis, which assumes that the company will continue in operational existence in the foreseeable future. The validity of this assumption depends on the successful implementation of the BIFR sanctioned rehabilitation scheme prepared u/s 18 of SICA including adherence to production targets, closing down of unviable mines, rationalization of manpower, timely implementation of the Project, obtaining various reliefs and concessions and also meeting the additional impact of provision of impairment of assets, if any, under AS – 28 which was not envisaged in the aforesaid rehabilitation scheme.
94 EASTERN COALFIELDS LIMITED
5. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor’s Report) Order, 2003 (“the It is a statement of fact. Order”) issued by the Central Government of India in terms of sub- section (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. As required by section 227(3) of the Act, we report that: It is a statement of fact. a. we have obtained all the information and explanations which to the It is a statement of fact. best of our knowledge and belief were necessary for the purpose of our audit; b. in our opinion proper books of account as required by law have been It is a statement of fact. kept by the Company so far as appears from our examination of those books and proper returns adequate for the purposes of our audit have been received from branches not visited by us; c. 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. in our opinion, the Balance Sheet, Statement of Profit and Loss, It is a statement of fact. and Cash Flow Statement comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956; e. On the basis of written representation received from the company It is a statement of fact. secretary of the Company all the functional directors of the Company are not prima-facie disqualified as referred to in Section 274(1) (g) of the Companies Act, 1956 and as per General Circular No. 8/2002 dated 22.03.2002 issued by the Ministry of law, Justice and Company Affairs, the provision of Section 274(1)(g) of the Companies Act, 1956 is not applicable to the Company, being a Government Company. f. Since the Central Government has not issued any notification as to It is a statement of fact. the rate at which the cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.
95 ANNUAL REPORT 2012-13
ANNEXURE TO AUDITORS' REPORT AS REPORTED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
AUDITORS' REPORT MANAGEMENT'S REPLY
1. In respect of its fixed assets;
(a) The Company has generally maintained proper records showing full Since inception, ECL has acquired particulars, including quantitative details and situation of the Movable 17832.63 Ha of land in West fixed assets except for assets taken over from Coal Mines Authority Bengal under difference mode of on nationalization and those taken from Coal Mines Rescue Station, acquisition like by virtue of which has not been recorded. According to the information and Nationalization Act 1973, under LA explanations given to us out of total 17836.88 hectares of land Act I & II, under CBA (A & D) Act acquired in West Bengal by the Company under different modes of 1957, Direct Purchase, Transfer of acquisition and took possession of 16961.48 hectares of land though Government Land and Transfer of mutation has been made only for 4368.74 hectares of land leaving Forest Land under FC Act 1980. major volume of land(13468.14 hectares) not mutated in favor of the Out of 17832.63 Ha of acquired Company. land ECL took possession of 16961.48 Ha of land in West Bengal. Efforts are made for mutation of aforesaid land in the record of rights in favour of ECL under West Bengal Government. Since making of records of rights is not under the control of ECL, as such regular persuasion is done with the concerned authorities. However, all records, plans, parcha and other documents related to land acquired/ possessed under different modes of acquisition as stated above are kept in custody of different projects/ mines / Areas Offices.
(b) According to the information and explanation given to us the It is a statement of fact. Company has physically verified the items of Plant and Machinery worth ` 1 Lakh and more and certain other assets in a phased periodical manner during the year and no material discrepancies were noticed on such physical verification. However, no identification number is given on the fixed assets which have been verified. In
96 EASTERN COALFIELDS LIMITED
absence of Physical verification of Plant and Machinery valuing less than ` 1 Lakh and remaining other assets and reconciliation thereto, we are unable to express our opinion regarding material discrepancies, if any. (c) The Company has not disposed off any substantial part of its fixed It is a statement of fact. assets during the year.
2. In respect of its inventories : (a) As explained to us, stock of stores has been physically verified It is a statement of fact. during the year by the management as per perpetual inventory system. Stock of Coal has been physically verified by the designated team of Coal India Limited at the end of the year. In our opinion, the frequency and coverage of verification is required to be improved. (b) In our opinion and according to the information and explanations It is a statement of fact. given to us the procedures for physical verification of inventories . followed by the management are generally reasonable and adequate in relation to the size of the company and the nature of its business. (c) In our opinion and according to the information and explanations It is a statement of fact. given to us the Company has maintained proper records of its inventory. The discrepancies between physical stocks and the book records arising out of physical verification have been properly dealt with in the books of accounts in accordance with accounting policy.
3. The Company has neither granted nor taken any loan secured or It is a statement of fact. unsecured to/from companies, firms or other parties covered in the Register maintained u/s. 301 of the Companies Act,1956.
4. In our opinion and according to the information and explanations It is a statement of fact. given to us, there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regard to purchase of inventory and Fixed assets and with regard to the sale of goods except in some cases there are time lag between receipts of the material, adjustment of advances and recording of liabilities. During the course of our audit, no major weakness has been noticed in the internal controls.
5. In respect of particulars of contract, arrangements referred to in Section 301 of the Companies Act, 1956 :– a) In our opinion and according to the information and explanations It is a statement of fact. given to us, the particulars of contracts or arrangements that needed to be entered into the register maintained under section 301 of the Companies Act, 1956 have been entered.
97 ANNUAL REPORT 2012-13 b) No transaction has been made in pursuance of such contracts or It is a statement of fact. arrangements exceeding the value of ` 5 Lakhs in respect of any party.
6. 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. The Internal Audit has been carried out by firm of Chartered It is a statement of fact. Accountants under the supervision of the Internal Audit department of the Company. The scope of the internal audit need to be enlarged encompassing ‘system audit and risk based audit’. In our opinion compliance to the internal audit report to be strengthened and improved; subject to above the Company’s Internal Audit system is commensurate with the size and nature of its business.
8. During the year, Maintenance of cost records have been prescribed 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. In respect of statutory dues : a) The Company is generally regular in depositing with the appropriate It is a statement of fact. authorities undisputed statutory dues including Provident Fund, Income Tax, Value Added Tax, Central Sales Tax, Customs Duty, Excise Duty, Cess and other statutory dues. b) The disputed statutory dues aggregating to ` 1972.31 Crores that It is a statement of fact. have not been deposited on account of Sales Tax, Excise Duty, Cess, Income Tax-Royalty, Service Tax and interest thereon, etc., before the appropriate authorities.
10. The Company has an accumulated loss of ` 5509.76 Crores (` It is a statement of fact. 7165.30 Crores) and the net worth of the Company remained negative as on 31.03.2013. BIFR has declared the Company as sick industrial company in terms of Section 3(1) (o) of the Sick Industrial Companies (Special Provision) Act, 1985 vide order No. 501/2000 dated 23.02.2001.
11. The Company has no dues to the financial institution or banks or It is a statement of fact. debenture holders.
98 EASTERN COALFIELDS LIMITED
12. In our opinion and according to the explanations given to us and It is a statement of fact. based on the information available, no loans and advances have been granted by the Company on the basis of security by way of pledge of shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi /mutual It is a statement of fact. benefit fund/society. Therefore, the provisions of clause (xiii) of the Companies (Auditor’s Report) Order 2003 are not applicable to the Company.
14. In our opinion, the Company has not dealt or traded in shares, It is a statement of fact. securities, debentures or other investments during the year under audit. However, old investment has been held by the company in its own name.
15. We are informed that the Company has not given any guarantee for It is a statement of fact. loans taken by others from Banks or Financial Institutions.
16. The Company has not raised any term loan during the period under It is a statement of fact. audit.
17. According to the information and explanations given to us and on It is a statement of fact. an overall examination of the Balance Sheet of the Company, we are of the opinion that there are no funds raised on short-term basis that have been used for long - term investment.
18. Since the Company is subsidiary of Coal India limited the question It is a statement of fact. of making preferential allotment of shares does not arise.
19. No debentures have been issued by the company and hence the It is a statement of fact. question of creating security and / or charge in respect thereof does not arise.
20. The company is not a listed company, hence question of raising of It is a statement of fact. fund by public issue and its end-use does not arise.
21. No fraud on or by the Company has been noticed during the year of It is a statement of fact. audit.
99 ANNUAL REPORT 2012-13 0.00 0.00 0.15 0.03 0.00 2013 20.88 61.32 20.21 17.43 51.26 674.17 864.20 442.33 183.30 187.43 637.32 2218.45 4670.27 2906.72 5535.55 4280.72 1254.83 3582.13 1949.53 6344.75 5707.43 2906.72 -4677.05 0.00 0.00 5.51 0.18 0.03 0.00 51.28 46.22 17.68 21.04 83.28 2012 670.18 460.77 622.93 176.23 460.77 -958.40 2218.45 4731.93 5389.97 4107.20 1282.77 2459.37 1248.74 4590.58 5548.98 -7165.30 0.00 0.00 0.21 6.57 0.03 0.00 11.20 11.28 36.91 18.34 65.83 77.59 656.24 568.72 959.20 940.99 2011 2218.45 4136.04 5197.08 3988.28 1208.80 2612.36 4999.97 -1105.50 -1105.50 -8127.43 -2387.61 0.00 0.00 0.28 0.00 64.80 33.65 665.52 453.36 746.79 947.88 146.82 2010 1192.57 2218.45 3634.76 5290.16 4097.59 2328.50 5301.42 -8234.00 -1715.27 -2972.92 -1715.27 0.00 0.00 0.31 0.00 39.85 48.35 689.26 323.83 338.11 688.98 130.33 2009 2218.45 3342.90 5217.34 3983.67 1233.67 1529.60 5120.22 -8567.40 -2316.79 -3590.62 -2316.79 0.00 0.00 0.34 0.00 41.34 42.75 656.23 331.42 269.84 664.36 138.00 2008 2218.45 2324.70 5030.21 3789.40 1240.81 1446.37 3987.79 -6458.31 -1258.93 -2541.42 -1258.93 0.00 0.00 0.38 0.00 49.20 35.99 672.96 427.28 269.15 846.71 132.66 2007 -427.87 -427.87 1711.79 2218.45 1824.59 4920.65 3660.27 1260.38 3449.62 -5143.87 -1737.83 0.00 0.00 0.41 0.00 40.63 35.45 in Crores). 708.33 404.49 276.07 143.17 2006 -659.54 -659.54 2218.45 1668.15 4831.90 3568.83 1263.07 1314.80 2173.98 4137.63 -5254.47 -1963.65 ( 0.00 0.00 0.41 0.00 42.53 18.25 95.64 680.84 309.28 321.12 852.64 2005 2218.45 1608.54 4794.90 3488.87 1306.03 1596.93 4056.40 -1110.50 -1110.50 -5618.33 -2459.47 BALANCE SHEET AS AT 31ST. MARCH. 0.00 0.00 0.41 0.00 43.90 17.78 114.62 2004 708.64 260.41 684.34 628.70 -500.98 -500.98 2218.45 1361.22 4706.47 3203.55 1502.92 1705.85 3754.06 -4789.29 -2048.21 OURCES OF FUNDS : PARTICULARS. S SHARE CAPITAL CONVERSION OF LOAN INTO EQUITY RESERVE AND SURPLUS. INTEREST ACCRUED AND DUE. LOAN FUNDS. OTHER NON CURRENT LIABILITIES LONG TERM PROVISIONS 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 : NOTE : FIGURES FOR THE YEAR 2010-11, 2011-12 & 2012-13 ARE AS PER REVISED SCHEDULE VI 100 EASTERN COALFIELDS LIMITED 0.00 0.00 0.00 0.00 0.00 8.48 0.00 0.00 0.00 (1.45) 60.23 (31.49) 117.12 548.56 649.95 463.82 672.36 261.29 203.20 260.92 273.13 (168.92) (324.59) 9191.91 9571.55 5300.14 7672.92 1898.63 1655.54 -7165.30 -5509.76 2012-13 in Crore).
( 0.00 0.00 0.00 0.00 0.00 0.00 0.16 0.00 0.00 0.00 0.00 44.32 61.76 79.33 298.62 574.22 382.42 481.42 208.45 200.90 248.19 188.99 962.13 962.13 8262.09 8605.03 5217.06 7642.90 -8127.43 -7165.30 2011-12 0.00 0.00 0.00 0.00 0.00 0.00 1.01 0.00 0.00 0.00 57.02 87.27 22.61 112.35 354.37 539.95 376.11 180.52 410.98 176.44 184.72 164.08 106.57 106.57 5882.60 6349.32 4042.04 6242.75 -8234.00 -8127.43 2010-11 0.00 0.00 0.00 0.01 9.51 0.01 1.97 0.00 0.00 -1.62 50.48 58.81 82.82 -13.55 348.76 123.26 490.96 304.79 296.40 342.00 160.16 146.69 170.35 335.02 333.40 5227.78 5750.29 3364.35 5415.27 -8567.40 -8234.00 2009-10 0.00 0.00 0.00 0.16 0.07 2.76 0.00 -2.78 -3.39 44.51 70.95 20.96 17.43 -11.90 207.77 504.89 466.61 259.25 268.09 254.87 148.51 206.86 155.86 3837.40 4077.94 3803.75 6180.86 -2102.92 -2109.09 -6458.31 -8567.40 2008-09 0.00 0.00 0.00 0.09 0.29 0.00 -3.27 44.72 74.63 21.83 80.42 12.47 -85.86 -12.92 204.53 163.80 427.37 263.66 229.89 210.91 134.69 147.00 -284.50 3187.61 3351.09 2597.87 4364.83 -1013.74 -1029.93 -5143.88 -6458.31 2007-08 0.00 0.00 0.07 5.28 0.41 3.64 2.90 -7.52 22.21 45.34 16.22 67.93 97.60 82.73 10.04 411.14 115.22 110.60 186.01 253.63 199.72 243.61 136.24 3518.21 3788.06 2160.87 3672.84 -5254.48 -5143.88 2006-07 0.00 0.00 0.09 2.68 -8.96 -2.89 -8.10 99.94 51.41 34.32 69.50 86.95 14.73 10.05 99.80 227.18 404.62 272.18 166.28 213.27 142.98 374.85 363.86 3417.68 3830.62 1981.69 3455.77 -5618.34 -5254.48 PROFIT AND LOSS. 2005-06 0.00 0.00 0.00 0.03 0.81 7.77 -2.24 11.49 47.50 47.81 65.87 82.86 69.25 -29.89 148.20 375.32 353.60 258.81 151.03 167.25 148.84 -649.31 -679.20 -149.84 3048.19 3291.73 2250.38 3941.04 -4789.30 -5618.34 2004-05 0.00 0.08 0.00 4.14 0.00 -6.03 13.70 48.20 82.47 84.86 60.64 91.81 94.09 191.53 168.65 204.61 343.51 246.13 141.14 108.12 169.42 -320.35 -326.38 2746.24 3250.87 2022.75 3571.22 -4462.92 -4789.30 2003-04 PARTICULARS. SALES (NET OF LEVIES). OTHER INCOME. ACCRETION/DECRETION. WORKSHOP JOBS FOR OWN PURPOSE. WAIVER OF INTEREST. WAIVER OF APEX CHARGES. WAIVER OF ELECTRICITY DUTY COAL ISSUED FOR SUNDRY PURPOSES. EMPLOYEES REMUNERATION & BENEFITS. ARREAR SALARY & WAGES CONSUMPTION OF STORES & SPARES. POWER & FUEL. REPAIRS. SOCIAL OVERHEAD. CONTRACTUAL EXPENSES. MISCELLANEOUS EXPENSES. DEPRECIATION. IMPAIRMENT INTEREST & FINANCIAL CHARGES. OVER BURDEN REMOVAL. PROVISIONS. WRITE OFF. PROFIT(+)/LOSS(-) FOR THE YEAR BEFORE PPA PRIOR PERIOD ADJUSTMENT. FRINGE BENEFIT TAX TAX EXPENSES - CURRENT YEAR - DEFFERED TAX - EARLIER YEAR PROFIT(+)/LOSS (-) AFTER CPRA. PROFIT & LOSS UPTO PREVIOUS YEAR TRANSITIONAL PROVISION BALANCE CARRIED TO SHEET NOTE : FIGURES FOR THE YEAR 2010-11 & 2011-12 AND 2012-13 ARE AS PER REVISED SCHEDULE VI
101 ANNUAL REPORT 2012-13 6.85 0.00 0.14 0.00 0.30 5.38 0.46 1.94 27.05 33.90 76.45 30.02 35.84 10.17 2013 74276 6.83 0.00 0.14 0.00 0.34 6.08 0.44 8.64 1.68 23.73 30.56 60.31 24.27 30.83 2012 78009 7.37 0.00 0.15 0.00 0.38 3.00 0.45 8.14 1.60 23.43 30.80 56.25 26.21 29.74 2011 81128 8.23 0.00 0.15 0.00 0.40 3.45 0.47 7.29 1.46 21.83 30.06 49.74 25.22 29.22 2010 85617 8.39 0.00 0.15 0.00 0.41 4.01 0.46 6.42 1.33 19.74 28.13 43.07 23.69 28.26 2009 90470 8.32 0.00 0.17 0.00 0.42 2.91 0.43 5.04 1.07 15.74 24.06 39.98 21.94 25.44 2008 94943 8.27 0.00 0.18 0.00 0.45 2.99 0.42 7.03 1.34 22.20 30.47 48.78 26.17 29.79 2007 98780 9.33 0.00 0.14 0.00 0.48 2.90 0.45 6.61 1.29 21.78 31.11 44.30 25.17 28.69 2006 101474 OPERATIONAL STATISTICS 9.45 0.00 0.13 0.00 0.50 2.43 0.43 5.30 1.07 17.80 27.25 39.70 24.11 27.17 2005 105692 9.91 0.00 0.11 0.00 0.52 2.66 0.45 5.30 1.10 18.09 28.00 35.96 24.14 27.43 2004 110132 PRODUCTION OF RAW COAL : ( MILLION TONNE) UNDERGROUND OPENCAST TOTAL : OVERBURDEN REMOVAL ( MILLION CU.MTS) OFFTAKE (RAW COAL) : ( MILLION TONNE) LOCO POWER CEMENT FERTILIZER COLLIERY CONSUMPTION OTHERS TOTAL : MANPOWER PRODUCTIVITY (O.M.S) UNDERGROUND OPENCAST OVERALL : YEAR ENDING 31ST MARCH 1 (a) (b) 2. 3. 4. 102 EASTERN COALFIELDS LIMITED 1.11 4.66 3.93 5.20 0.37 3.10 0.30 -0.27 421.31 1973.68 -2458.60 2012-13 0.83 2.99 3.87 0.66 3.78 0.30 -0.14 48.29 in Crores.) 171.10 -224.94 -4946.85 2011-12 0.52 1.76 2.13 0.84 3.70 0.30 -4.46 -0.11 -1320.30 -5908.98 -1050.73 ( 2010-11 0.44 1.61 1.93 0.74 3.99 0.30 -1.67 -0.11 -3135.66 -6015.55 -1968.26 0.30 1.25 1.58 0.62 4.00 0.31 -1.09 -0.11 -3526.75 -6348.95 -2839.76 0.36 1.33 1.70 0.80 4.26 0.30 -1.37 -0.15 -2318.43 -4239.86 -3382.32 0.50 1.29 1.65 1.01 4.59 0.30 -2.52 -0.23 2006-07 2007-08 2008-09 2009-10 -1395.59 -2925.42 -3366.12 0.53 1.41 1.80 0.96 4.61 0.32 -2.23 -0.23 2005-06 -1534.04 -3036.02 -3318.41 0.39 1.77 2.26 0.72 5.32 0.31 -1.62 -0.20 -1877.35 -3399.88 -3399.89 2004-05 0.45 3.24 4.10 0.58 5.31 0.32 -2.29 -0.28 2003-04 -1199.95 -2570.84 CAPITAL EMPLOYED, NET WORTH AND FINANCIAL RATIOS. PARTICULARS. CAPITAL EMPLOYED. NET WORTH NET WORTH AS PER BRPSE PROJECTION LIQUIDITY RATIOS : i) Current Ratio (Current Assets/Current Liabilities). TURNOVER RATIOS : i) Capital Turnover Ratio (Net Sales/Capital Employed). ii) Sundry Debtors(Gross) as Nos. of months : a). Gross Sales b). Net Sales. iii) Stock of coal (Net excise duty) as a No. months’ sale value iv). Stock of Stores & Spares (Gross) as a No. months’ consmption (Including Stock of Medicine at Central Hospital) STRUCTURAL RATIOS : i). Debt : Equity. ii). Debt : Net Worth.
103 ANNUAL REPORT 2012-13
EASTERN COALFIELDS LIMITED BALANCE SHEET (CONSOLIDATED) As at 31st March, 2013 (` in Crores) AS AT AS AT NOTES 31.03.2013 31.03.2012
I EQUITY AND LIABILITIES (1) Shareholders’ Fund a) ShareCapital 1 2,218.45 2,218.45 b) Reserves & Surplus 2 (4677.05) (7165.30) (2,458.60) (4,946.85)
(2) Non-Current Liabilities a) Long Term Borrowing 3 674.17 670.18 b) Deferred Tax Liabilities c) Other Long Term Liabilities 4 20.88 5.51 d) Long Term Provisions 5 4,670.27 4,731.93
5,365.32 5,407.62
(3) Minority Interest - -
(4) Current Liabilities - a) Short Term Borrowing 6 1,766.10 1,772.49 b) Trade Payables 7 80.52 72.85 c) Other Current Liabilities 8 2,588.69 2,734.10 d) Short Term Provisions 9 1,272.12 969.54 5,707.43 5,548.98
Total 8,614.15 6,009.75
II ASSETS (1) Non-Current Assets (a) Fixed Assets i) Tangible Assets - Gross Block 10A 4,272.75 4,157.09 Less : Depreciation, Impairment & Provisions 3,160.59 3,032.15 Net Carrying Value 1,112.16 1,124.94
ii) Intangible Assets - Gross Block 10A 1,262.80 1,232.88 Less : Depreciation, Impairment & Provisions 1,120.13 1,075.05 Net Carrying Value 142.67 157.83
iii) Capital Work-in-Progress 10B 61.32 51.28
104 EASTERN COALFIELDS LIMITED
AS AT AS AT NOTES 31.03.2013 31.03.2012 iv) Intangible Assets under Development 10C 20.21 46.22
(b) Non-Current Investment 11 0.15 0.18 (c) Deferred Tax Asset (Net) 864.20 (d ) Long Term Loans & Advances 12 51.26 21.04 (e) Other Non-Current Assets 13 17.43 17.68
(2) Current Assets (a) Current Investments 14 0.03 0.03 (b) Inventories 15 442.33 622.93 (c ) Trade Receivables 16 3,582.13 2,459.37 (d) Cash & Bank Balance 17 1,949.53 1,248.74 (e) Short Term Loans & Advances 18 187.43 176.23 (f) Other Current Assets 19 183.30 83.28 6,344.75 4,590.58
Total 8,614.15 6,009.75
Significant Accounting Policies 33 Additional Notes on Accounts 34 The Notes referred to above form an integral part of Balance Sheet
Rakesh Sinha C. K. Dey V. R. Reddy Chairman-cum-Managing Director Director (Finance) GM (Finance) / DIN - 02186695 DIN - 03204505 Company Secretary
S. Roychoudhury G. M. (Finance) (Corporate Account)
(B. K. Patra) Partner Membership No. : "63444" Date : 19th May, 2013 for and on behalf of Place : Kolkata Dutta Sarkar & Co. Chartered Accountants. Firm Regn. No.: 303114E
105 ANNUAL REPORT 2012-13
EASTERN COALFIELDS LIMITED STATEMENT OF PROFIT & LOSS For the Year Ended 31st March, 2013 (` in Crore) Notes For the Year For the Year ended 31.03.13 ended 31.03.12
INCOME
Sale of Coal, coke etc. 20 12,162.59 10,695.11
Less:- Excise Duty (578.00) (410.58) Other Levies (2,392.68) (2,022.44) Revenue From Operations 9,191.91 8,262.09 Other Income 21 548.56 298.62 Total Revenue 9,740.47 8,560.71 EXPENSES Cost of Material Consumed 22 649.95 574.22 Change in inventories of finished goods work in progress and Stock in trade 23 168.92 (44.32) Employee benefit expenses 24 5,300.14 5,217.06 Power & Fuel 463.82 382.42 Welfare Expenses 25 117.12 79.33 Repairs 26 60.23 61.76 Contractual Expenses 27 672.36 481.42 Finance Costs 28 8.48 0.16 Depreciation/amortization/Impairment 203.20 200.90 Provisions 29 260.92 188.99 Write off 30 -- -- Overburden Removal Adjustment (324.59) 248.19 Other Expenditure 31 261.29 208.45
Total Expenses 7,841.84 7,598.58
Profit/(Loss) before Prior Period, exceptional and extraordinary items and tax 1,898.63 962.13
Prior Period Adjustment { charges/ (Incomes) } 32 1.45 - Exceptional Items - -
Profit/(Loss) before extraordinary items and tax 1,897.18 962.13
Extraordinary Items { charges/ (Incomes) } - -
106 EASTERN COALFIELDS LIMITED
INCOME Notes For the Year For the Year ended 31.03.13 ended 31.03.12
Profit/(Loss) before Tax 1,897.18 962.13
Less : Tax Expense - Current year 273.13 - - Deferred Tax (31.49) - - Earlier years - -
Profit/(Loss) for the period 1,655.54 962.13
Earning per equity share (in ` )
(Face Value of ` 1000/- per share)
(1) Basic 746.26 433.69 (2) Diluted - -
Significant Accounting Policies 33
Additional Notes on Accounts 34
The Notes referred to above form an integral part of Profit & Loss Account.
Rakesh Sinha C. K. Dey V. R. Reddy Chairman-cum-Managing Director Director (Finance) GM (Finance) / DIN - 02186695 DIN - 03204505 Company Secretary
S. Roychoudhury G. M. (Finance) (Corporate Account)
(B. K. Patra) Partner Date : 19th May, 2013 Membership No. : "63444" Place : Kolkata for and on behalf of Dutta Sarkar & Co. Chartered Accountants. Firm Regn. No.: 303114E
107 ANNUAL REPORT 2012-13
EASTERN COALFIELDS LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2013
(` in Crores) 31.03.2013 31.03.2012 (a) Cash Flow from Operating Activities Net Profit Before Taxation : 1,897.18 962.13 Add / Less Non Operating Expenses / (Non Operating Incomes) Liability Written Back (6.62) (2.55) Depreciation / Impairment 203.20 200.90 Lease Rent Received -- (3.50) Interest Income (179.36) (70.78) OBR Adjustment (324.59) 248.19 Profit on Sale of Asset (0.80) (1.32) Interest Paid 8.48 0.16 Provision for Loss of Asset / Surveyed Off Asset 1.95 5.30 Debit / (Credit) for Foreign Exchange Flactuation 9.86 18.50 Increase / (Decrease) in Long Tern Prov. (Excl. OBR) 262.93 (24.95) 347.70 742.60
Operating Profit before working capital changes 1,872.23 1,704.73 Decrease / (Increase) in Sundry Debtors (1,122.76) (1500.17) Decrease / (Increase) in Loans & Advances (11.20) (98.64) Decrease / (Increase) in Current assets & Invest. (Incl. Deposit) (964.81) (60.00) Decrease /(Increase) in Inventories 180.60 (54.21) (Decrease)/Increase in Current Liabilities (excl. LIAB W/Back) (108.06) (2,026.23) 551.56 (1,161.46) Cash Generation from Operation (154.00) 543.27 Net Cash Flow from Operating Activities (A) : (154.00) 543.27 (B) Cash Flow from Investing Activities Purchases of Assets including Capital WIP (202.94) (332.96) Adjustment in Value of Fixed Assets 11.24 3.48 Redemption of Power Bond 0.03 0.03 Lease Rent Received -- 3.50 Interest Income 179.36 70.78 Profit on Sale of Fixed Asset 0.80 (11.51) 1.32 (253.85) Net cash flow from investing activities (B) (11.51) (253.85)
108 EASTERN COALFIELDS LIMITED
(` in Crores) 31.03.2013 31.03.2012
(C) Cash Flow from Financing Activities : Proceeds / (Repayment) of Long Term Liabialities 15.37 (5.69) Proceeds / (Repayment) of Long Term Borrowings (5.87) (4.56) Decrease / (Increase) in other non Current Assets 0.25 0.66 Decrease / (Increase) in Long Term Loans & Advances 0.24 (14.47) Interest Paid (8.48) 1.51 (0.16) (24.22)
Net Cash Flow from Financing Activities (C) 1.51 (24.22)
Net Increase in Cash / Cash Equivalents (A+B+C) (164.00) 265.20 Cash & Cash Equivalent (Excl. Deposit more than three mths) Opening Cash & Bank Balance 603.15 337.95 Closing Cash & Bank Balance 439.15 (164.00) 603.15 265.20
Rakesh Sinha C. K. Dey V. R. Reddy Chairman-cum-Managing Director Director (Finance) GM (Finance) / DIN - 02186695 DIN - 03204505 Company Secretary
S. Roychoudhury G. M. (Finance) (Corporate Account)
(B. K. Patra) Partner Date : 19th May, 2013 Membership No. : "63444" Place : Kolkata for and on behalf of Dutta Sarkar & Co. Chartered Accountants. Firm Regn. No.: 303114E
109 ANNUAL REPORT 2012-13
NOTES TO BALANCE SHEET CONSOLIDATED NOTE - 1
SHARE CAPITAL (` Crores)
AS AT AS AT 31-03-2013 31-03-2012
AUTHORISED :
250,00,000 Equity Share of ` 1000.00 each. 2500.00 2500.00
-- --
2,500.00 2,500.00
Issued, Subscribed & Paid up : 10390000 Equity Shares of ` 1000/- each fully Paid-up in cash 1,039.00 1,039.00
11794500 Equity Shares of `1000/- each alloted as fully paid-up consideration 1,179.45 1,179.45 received other than cash
Total 2218.45 2218.45
Note 1 : Shares in the company held by each shareholder holding more than 5% Shares.
No. of Shares Held % of Total Shares Name of Shareholder (Face value of `10 each) Coal India Limited 22184497 99.99%
Note 2 : During the year there is no change in the number of shares.
110 EASTERN COALFIELDS LIMITED
NOTES TO BALANCE SHEET CONSOLIDATED NOTE - 2
RESERVES & SURPLUS (` Crores)
AS AT AS AT 31-03-2013 31-03-2012 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 832.71 - 832.71 -
Surplus in Profit & Loss Account - -
As per last Balance Sheet (7,165.30) (8,127.43) Profit/(Loss) after Tax During the Year 1,655.54 962.13 Profit/(Loss) available for Appropriation (5,509.76) (7,165.30)
111 ANNUAL REPORT 2012-13
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) (7,165.30)
112 EASTERN COALFIELDS LIMITED
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 3
LONG TERM BORROWING ( ` Crores)
AS AT AS AT 31-03-2013 31-03-2012 Term Loan
IBRD - - JBIC - - Export Development Corp., Canada 155.20 151.21 Liebherr France S.A., France
Loan From Coal India Limited 518.97 518.97
Total (A+B) 674.17 670.18
CLASSIFICATION 1 Secured - - Unsecured 674.17 670.18
CLASSIFICATION 2
Loan Guaranteed by directors & others
Particulars of Loan Amount in `crores Nature of Guarantee Export Development Corporation, Canada 155.20 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 ANNUAL REPORT 2012-13
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 4 OTHER LONG TERM LIABILITIES ( ` Crores)
AS AT AS AT 31-03-2013 31-03-2012 Shifting & Rehabilitation Fund Opening Balance - - Add: Interest from Investment of the fund - - Add: Contribution Received - - Less : Amount utilised - - - - Trade Payable - - Security Deposits 19.68 4.31 Others ( Specify Nature) 1.20 1.20 Total 20.88 5.51
NOTE - 5 LONG TERM PROVISIONS ( ` Crores)
AS AT AS AT 31-03-2013 31-03-2012 For Employee Benefits - Gratuity 2,268.99 2,271.77 - Leave Encashment 421.92 340.33 - Other Employee Benefits 258.40 241.22 - -
For Foreign Exchange Transactions (Marked to Market) - - OBR Adjustment Account 1,400.75 1,725.34 Mine Closure 217.38 153.27 For Others (Post Retirement Medical Benefit) 102.83 -
TOTAL 4,670.27 4,731.93
Note 5.1: 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 EASTERN COALFIELDS LIMITED
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 6 SHORT TERM BORROWING ( ` Crores)
AS AT AS AT 31-03-2013 31-03-2012 Loan From Bank - -
Loans Repayable on Demand
Balance with Coal India Limited & other Subsidiaries of Coal India Limited 1,766.10 1,772.49
Overdraft against Pledge of Term Deposit - -
Other Loans and Advances
Deferred Credits - -
Total : 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 Amount in ` crores Nature of Guarantee NIL NIL NIL
NOTE - 7
TRADE PAYABLES ( ` Crores)
AS AT AS AT 31-03-2013 31-03-2012
Sundry Creditors For Revenue Stores 80.52 72.85
TOTAL 80.52 72.85
115 ANNUAL REPORT 2012-13
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 8
OTHER CURRENT LIABILITIES ( ` Crores)
AS AT AS AT 31-03-2013 31-03-2012
Current Maturities of Long Term Borrowings Term Loan From IBRD - - Term Loan From JBIC - - Term Loan From Export Development Corp., Canada 5.15 4.42 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) 19.42 12.30
FOR EXPENSES :
Salary Wages & Allowances 361.32 780.63 Power & Fuel 59.18 40.89 Others 119.45 79.96 539.95 901.48
STATUTORY DUES :
Sales Tax/VAT** - - Provident Fund & Pension Fund 60.77 70.11 Central Excise Duty 0.37 Royalty & Cess on Coal 29.52 23.75 Stowing Excise Duty 10.83 10.08 Clean Energy Cess 34.24 19.19 Other Statutory Levies 14.21 9.90 149.57 133.40
Income Tax Deducted at Source 35.72 12.20 Security Deposit 67.19 70.03 Earnest Money 59.08 67.21 Advance & Deposit from customers / others 318.23 430.25 Interest Accrued and due on Borrowings - - Interest Accrued but not due on Borrowings - -
116 EASTERN COALFIELDS LIMITED
Cess Equilisation Account 1,044.22 849.78 Current Account with IICM - - Unpaid Dividend* - - Ex-Owner Account - - Advance Deposit other Pre-Nationalisation - - Others Liabilities 350.16 253.03
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 ANNUAL REPORT 2012-13
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 9
SHORT TERM PROVISIONS ( ` Crores)
AS AT AS AT 31-03-2013 31-03-2012
For Employee Benefits - Gratuity 460.30 530.67 - Leave Encashment 67.17 49.40 - PPLB 192.05 162.52 - PRP 200.44 146.10 - Other Employee Benefits 76.58 58.62
For Proposed Dividend - - For Corporate Dividend Tax - - Provision for Income Tax 273.13 - Less : Advance Income Tax / Tax Deducted at Source 20.98 - For Excise Duty on Closing Stock of Coal 20.76 21.04 For Others 2.67 1.19
TOTAL 1,272.12 969.54
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 EASTERN COALFIELDS LIMITED - 2.36 7.89 2.71 6.16 68.80 39.76 26.22 257.05 720.15 151.67 157.83 157.83 As on 1,124.94 1,124.94 1,282.77 Crores ) 31.12.12 ( - - 2.23 7.27 2.48 4.52 53.53 85.13 26.92 As on 257.06 677.54 138.15 142.67 31.03.13 1,112.16 1,254.83 CARRYING VALUE 5.29 8.17 11.54 26.78 17.09 19.13 74.44 223.36 923.35 196.78 Total Total Loss 2,774.79 3,160.59 3,032.15 1,120.13 1,075.05 4,280.72 Impairment Depreciation/ ------60.97 216.89 277.86 259.81 277.86 As on 31.03.13 ------0.13 0.13 3.15 0.13 0.74 crores. period
Transfer Adj./Sales/ during the ------1.22 16.70 17.92 26.49 17.92 period Addition during the ------59.71 As on 200.06 259.81 230.14 259.81 01.04.12 5.29 8.17 IMPAIRMENT LOSS 11.54 26.78 17.09 19.13 74.44 223.36 703.46 135.81 842.27 815.24 As on 2,774.79 3,160.59 3,032.15 4,002.86 31.03.13 - - - - - 7.90 0.04 0.43 0.40 (7.89) (0.03) (38.67) (38.62) (82.90) (38.22) the period Adj./Sales/Tr ansfer during NOTE - 10 A FIXED ASSETS 0.30 7.45 0.37 0.80 2.68 0.23 1.46 10.81 25.17 26.63 36.21 144.42 167.06 135.94 193.69 period Addition during the 8.17 11.43 11.31 12.88 16.72 18.33 71.76 212.51 680.86 134.38 815.24 779.03 As on 2,669.04 3,032.15 2,979.11 3,847.39 01.04.12 DEPRECIATION 8.17 58.82 19.32 26.40 14.02 111.91 As on 480.42 101.36 201.30 31.03.13 3,452.33 4,272.75 4,157.09 1,061.50 1,262.80 1,232.88 5,535.55 ------0.56 (0.58) (0.58) 30.61 (31.16) (40.22) (40.21) (89.44) (40.79) the period Adj./Sales/Tr ansfer during - - 8.30 0.24 0.18 3.38 1.01 30.11 10.30 29.49 30.50 39.73 period 103.36 155.87 242.60 186.37 Addition during the 8.17 81.68 51.19 19.08 26.22 97.98 14.02 469.56 200.29 As on 3,389.19 4,157.09 4,003.93 1,032.59 1,232.88 1,193.15 5,389.97 01.04.12 Due to change in depreciation rate of Xerox machine from 6.33% 10.55%, the additional charge P & L account is Land acquired under Coal Bearing Acquisition Act, 1957, L.A. Act abd direct purchase of tenancy land are classified as free hold and acquisition other like inherited on nationalisation, direct transfer of Govt. land and forest 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, possession Company, values are yet to be ascertained pending completion of legal formalities have not been includes. GROSS BLOCK PARTICULARS 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 Intangible Assets (As on 31.03.2012) Note- Note-10A.1 :- Note-10A.2 :-
119 ANNUAL REPORT 2012-13 - - 5.70 3.96 3.02 As on 38.60 51.28 51.28 51.28 51.28 Crores) 31.03.12 ( - - - - 3.98 2.77 12.97 41.60 61.32 61.32 As on 31.03.13 CARRYING VALUE - 5.94 2.63 0.95 36.57 46.09 45.56 Total 321.63 315.06 367.72 360.62 Loss Total Impairment Depreciation/
------As on 31.03.13 ------period Transfer during the Adj./Sales/ ------period Addition during the ------As on 01.04.12 IMPAIRMENT LOSS - 5.94 2.63 0.95 36.57 46.09 45.56 321.63 315.06 367.72 360.62 As on 31.03.13 - - 0.01 0.00 5.16 5.15 (0.01) (0.01) (0.01) 45.56 cr) 58.31 58.31 period Transfer during the Adj./Sales/ NOTE - 10 B - - 0.05 0.65 0.54 2.28 1.41 3.06 1.95 5.34 the (0.16) during period Addition 46.09 crores (
CAPITAL WORK-IN-PROGRESS - 5.90 2.62 0.31 36.73 45.56 43.28 As on 315.06 253.69 360.62 296.97 01.04.12 PROVISION - 6.61 3.72 18.91 78.17 96.84 411.90 As on 107.41 321.63 315.06 429.04 31.03.13 3.06 cr) on the value of Surveyed Off Assets has been made. 6.57 (9.86) (0.17) (8.71) (2.88) 61.37 (118.10) (103.05) (124.67) (234.10) (172.73) the period ansfer during Adj./Sales/Tr 1.41 cr ( - - 0.20 8.71 3.27 17.17 105.89 135.24 250.75 135.24 250.75 period Addition during the - 6.58 3.33 11.60 75.33 96.84 80.19 As on 411.90 315.06 253.69 333.88 01.04.12 COST Total provision for Tangiable Assets upto the end of period is Full provision amounitng to Assets under lease shall be separately specified for each class of asset PARTICULARS Tangible Assets Building/Water Supply /Road & Culverts Plant & Equipments Railway Sidings Development Others TOTAL Tangible Assets (As on 31.03.2012) Surveyed off Assets Surveyed off Assets (As on 31.03.2012) Grand Total Grand Total (As on 31.03.2012) Note- Note- 10B.1:- Note- 10B.2:- 120 EASTERN COALFIELDS LIMITED - As on 46.22 46.22 46.22 Crores) 31.03.12 ( - - 20.21 20.21 As on 31.03.13 CARRYING VALUE 4.11 29.80 33.91 32.36 Total Loss Total Impairment Depreciation/
1.38 As on 18.59 19.97 17.97 31.03.13 - (0.15) (0.15) (3.19) period Transfer during the Adj./Sales/ 32.36 crores)
- 2.15 2.15 2.26 period Addition during the 1.38 As on 16.59 17.97 18.90 01.04.12 IMPAIRMENT LOSS 33.91 Crores (
2.73 11.21 13.94 14.39 As on 31.03.13 - - (0.45) (0.45) period Transfer during the Adj./Sales/ NOTE - 10 C - - - ASSET UNDER DEVELOPMENT the (0.04) during period Addition 2.73 ANGIBLE 11.66 14.39 14.43 As on INT 01.04.12 PROVISION 4.11 50.01 54.12 78.58 As on 31.03.13 (1.01) (58.17) (59.18) (40.72) the period ansfer during Adj./Sales/Tr 1.01 33.71 34.72 74.69 period Addition during the Total provision / Impairment loss upto the end of period under intangible Assets has been made. 4.11 78.58 44.61 As on 01.04.12 COST 74.47 Note 10 C. 1 : PARTICULARS Intangible Assets Development Prospecting & Boring TOTAL Intangible Assets (As on 31.03.2012)
121 ANNUAL REPORT 2012-13
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 11
NON - CURRENT INVESTMENTS - Unquoted at Cost ( ` crores)
Number of Face value per shares/bonds/sec shares/bonds/sec urities current rity current Year / (previous) year/(previous As at As at year) year) (` ) 31.03.13 31.03.12
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 - - 0.07 0.10 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) - - 0.08 0.08 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 Worker’s central co-opt store Ltd. ` 0.01 iii) 4000 shares of ` 25/- each in the Mugma coalfield colly Worker’s central co-opt store Ltd. ` 0.01 iv) 500 “B” class shares of ` 100/- each in Sodepur colly Employee’s 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 : 0.15 0.18 Aggregate of Quoted Investment - - Aggregate of Unquoted Investment - - Market Value of Quoted Investment - - Provision made for diminution in the value of Investment - -
122 EASTERN COALFIELDS LIMITED
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 12
LONG TERM LOANS & ADVANCES ( ` Crores)
AS AT AS AT 31-03-2013 31-03-2012 LOANS
ADVANCES
For Capital - - Secured considered goods - - - Unsecured considered goods 10.11 7.77 - Doubtful 2.68 2.68 12.79 10.45 Less : Provision for Doubtful Loans and Advances 2.68 2.68 10.11 7.77
For Revenue - - - Secured considered goods - - - Unsecured considered goods 31.17 8.76 - Doubtful 3.60 2.70 34.77 11.46 Less : Provision for Doubtful Loans and Advances 3.60 2.70 31.17 8.76
Security Deposits - - - Secured considered goods - - - Unsecured considered goods 3.10 2.64 - Doubtful 0.66 0.66 3.76 3.30 Less : Provision for Doubtful Loans and Advances 0.66 0.66 3.10 2.64 Deposit for P&T, Electricity etc. - Secured considered goods - - - Unsecured considered goods 0.41 0.40 - Doubtful 0.45 0.45 0.86 0.85 Less : Provision for Doubtful Loans and Advances 0.45 0.45 0.41 0.40 123 ANNUAL REPORT 2012-13
LOAN TO EMPLOYEES & OTHERS
For House Building* - - - Secured considered goods 1.16 1.35 - Unsecured considered goods - - - Doubtful - - 1.16 1.35
For Motor Car and Other Conveyance* - - - Secured considered goods - - - Unsecured considered goods 0.02 - - Doubtful - - 0.02 -
For Others - - - Secured considered goods - - - Unsecured considered goods 5.29 0.12 - Doubtful - - 5.29 0.12
Less : Provision for Doubtful Loans and Advances - - 5.29 0.12
51.26 21.04
Loan To Subsidiaries - - Secured considered goods - - - Unsecured considered goods - - - Doubtful - - - -
TOTAL 51.26 21.04
Note
CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING CURRENT PREVIOUS CURRENT PREVIOUS PERIOD PERIOD PERIOD PERIOD
Due by the Companies in which directors of the company is also a director/member NIL NIL NIL NIL ( With name of the Companies)
Due by the parties in which the Director(s) of company is /are interested NIL NIL NIL NIL
124 EASTERN COALFIELDS LIMITED
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 13
OTHER NON-CURRENT ASSETS ( ` Crores)
AS AT AS AT 31-03-2013 31-03-2012 Long Term Trade Receivable - Secured considered goods - - - Unsecured considered goods - - - Doubtful - - - - Less Provision for bad and doubtful Trade Receivable - - - - Exploratory Drilling Work - - - Secured considered goods - - - Unsecured considered goods - - - Doubtful - - - - Less Provision for bad and doubtful - - - - Other Receivables - - - Secured considered goods - - - Unsecured considered goods 17.43 17.68 - Doubtful 5.33 5.34 22.76 23.02 Less Provision for bad and doubtful Receivables 5.33 5.34 17.43 17.68 TOTAL 17.43 17.68
Note : CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING CURRENT PREVIOUS CURRENT PREVIOUS PERIOD PERIOD PERIOD PERIOD
Due by the Companies in which directors of the company is also a director/member NIL NIL NIL NIL ( With name of the Companies)
Due by the parties in which the Director(s) of company is /are interested NIL NIL NIL NIL
Note - 13.1 : 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 BIFR’s sanctioned scheme. Against the above claim 10% provision has been made considering its doubtful recovery. 125 ANNUAL REPORT 2012-13
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 14
CURRENT INVESTMENTS - Quoted / Unquoted at Cost ( ` crores)
Number of Face value per Market Value/NAV Per shares/bonds/sec shares/bonds/sec Shares/bonds/security urities current rity current current year / Year / (previous) year/(previous (previous year) As at As at year) year) (` ) ( ` ) 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
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) UP 0.03 0.03
Total : 0.03 0.03
Aggregate of Quoted Investment - - Aggregate of Unquoted Investment - - Market Value of Quoted Investment - - Market Value of Unquoted Investment - - Provision made for diminution in the value of Investment - -
126 EASTERN COALFIELDS LIMITED
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 15
INVENTORIES ( ` Crores)
AS AT AS AT 31-03-2013 31-03-2012
Stock of Coal 309.74 478.41 Coal Under Development - - Less : Provision 1.76 1.76
A Stock of Coal (Net) 307.98 476.65
Stock of Stores & Spares (at cost) 167.24 174.02 Stores -in -transit 0.02 5.79 Less : Provision 47.17 46.98
B Net Stock of Stores & Spares (at cost) 120.09 132.83
C Workshop Jobs : Work-in-progress and Finished Goods 13.83 12.83 Less : Provision 0.20 0.23
Net Stock of Workshop Jobs 13.63 12.60
D Press : Work-in-Progress and Finished Goods - -
E Stock of Medicine at Central Hospital 0.63 0.85
F Prospecting & Boring/ Development Exp./Coal Blocks meant for Sale - -
Total ( A to F ) 442.33 622.93
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 ANNUAL REPORT 2012-13
SCHEDULES TO BALANCE SHEET (CONTD.) CONSOLIDATED
ANNEXURE TO NOTE - 15
(Qty. in Lakh tonnes) (value in lakh ` )
TABLE - A
Reconciliation of closing stock adopted in Account with Book stock as at the end of the year:
OVERALL STOCK NON-VENDABLE STOCK VENDABLE STOCK Qty. Value Qty. Value Qty. Value
1. (A) Opening stock as on 01.04.12 45.19 52409.92 4.71 4656.14 40.48 47753.78 ( B) Adjustment in Opening Stock 0.00 86.66 0.00 0.00 0.00 86.66 45.19 52496.58 4.71 4656.14 40.48 47840.44 2. Production for the year 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
4. Off- Take for the year : (A) Outside Despatch 355.42 919190.10 0.00 0.00 355.45 919190.10 (B) Coal feed to Washeries 0.00 0.00 0.00 0.00 0.00 0.00 (C) Own Consumption 3.03 11333.15 0.00 0.00 3.03 11333.15 TOTAL(A) 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
8. Break-up of Difference: (A) Excess within 5% 0.01 16.81 0.00 0.00 0.01 16.81 (B) Shortage within 5% 0.52 692.60 0.00 0.00 0.52 692.60 (C) Excess beyond 5% 0.00 0.00 0.00 0.00 0.00 0.00 (D) Shortage beyond 5% 0.00 0.01 0.00 0.00 0.00 0.01
9. Closing stock adopted in A/c. 25.85 35629.66 4.71 4656.14 21.14 30973.52 (6-8A+8B)
128 EASTERN COALFIELDS LIMITED - - - 0.01 267.11 Value 4,656.14 11,333.15 52,496.58 47,840.44 30,973.53 30,973.52 30,706.41 913,656.34 919,190.10 - - - - - 4.71 3.03 45.19 40.88 21.14 21.14 Qty 339.11 355.42 Total ------Value ------Qty Other Products ------Value ------Qty Non-Coking ------Value ------Qty Coking - 0.01 Washed / Deshaled Coal Value 4,656.14 11,333.15 52,496.58 47,840.44 30,973.53 30,973.52 913,656.34 919,190.10 Table : B 30,706.41 267.11 - - 4.71 3.03 Qty 45.19 40.48 21.14 339.11 355.42 Non-Coking 21.14 ------Value ------Qty Coking Raw Coal Opening Stock (Audited) Less: Non-vendable Coal Adjusted Opening Stock ( Vendable) Production Offtake* (A) Outside Despatch (B) Coal feed to Washeries (C) Own Consumption Closing Stock ** Less: Shortage Closing Stock **(Note - 15) Less: Seized Coal Closing Stock **(Note - 23) Should Form Part of Notes to Accounts Summary of Closing Stock Coal
129 ANNUAL REPORT 2012-13
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 16 TRADE RECEIVABLES ( ` Crores) AS AT AS AT 31-03-2013 31-03-2012 Debts outstanding for a period exceeding six months from the due date - Secured considered goods - - - Unsecured considered goods 620.98 103.64 - Doubtful 353.19 122.08 974.17 225.72 Less Provision for bad and doubtful trade receivables 353.19 122.08 620.98 103.64
Other Debts - - - Secured considered goods - - - Unsecured considered goods 2,961.15 2,355.73 - Doubtful 46.20 83.59 3,007.35 2,439.32 Less Provision for bad and doubtful trade receivables 46.20 83.59 2,961.15 2,355.73
Total 3,582.13 2,459.37
Notes : CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING CURRENT PREVIOUS CURRENT PREVIOUS PERIOD PERIOD PERIOD PERIOD
Due by the Companies in which directors of the company is also a director/member NIL NIL NIL NIL ( With name of the Companies)
Due by the parties in which the Director(s) of company is /are interested NIL NIL NIL NIL
Note 16.1 :- 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 ` in crore Note 16.2 :- The details of provision are as under :- 31.03.13 31.03.12 Opening Provision 205.67 85.42 Less: Settled/Written off/adjusted against opening debtors ------Add: New provision during the year 272.75 236.69 Less: Written back from opening provision 79.03 116.44 Closing Balance 399.39 205.67 130 EASTERN COALFIELDS LIMITED
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 17
CASH & BANK BALANCE ( ` Crores)
AS AT AS AT 31-03-2013 31-03-2012
Balances with Scheduled Banks - SBI Dividend Account (unpaid/unclaimed dividend account) - In Deposit Accounts with maturity upto 3 months 8.00 361.44 - In Current Accounts 429.58 230.66 - In Cash Credit Accounts - -
Balances with Non - Scheduled Banks
In Account with Banks outside India - -
Remittance - in transit 0.12 3.08 Cheques, Drafts and Stamps on hand 0.73 7.14 Cash on hand 0.72 0.83
Deposit with Scheduled Banks under Shifting and Rehabilitation Fund Scheme with maturity upto 3 months - -
Other Bank Balances
Balances with Scheduled Banks - In Deposit Accounts with maturity more than 3 months 1,510.38 645.59
Deposit with Scheduled Banks under Shifting and Rehabilitation Fund Scheme with maturity more than 3 months - -
Deposit with Scheduled Banks under Mine Closure Plan Scheme* - -
Total 1,949.53 1,248.74
Maximum amount outstanding with Banks other than Scheduled Banks at any time during the year nil nil Deposit for more than 1 (one) year from the date of purchase nil nil
131 ANNUAL REPORT 2012-13
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 18
SHORT TERM LOANS & ADVANCES ( ` Crores)
AS AT AS AT 31-03-2013 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 67.82 70.19 - Doubtful 2.42 2.35 70.24 72.54 Less Provision for bad and doubtful Advance 2.42 2.35 67.82 70.19
67.82 70.19
ADV PAYMENT OF STATUTORY DUES
SalesTax - - - Secured considered goods - - - Unsecured considered goods 22.51 13.36 - Doubtful - - 22.51 13.36 Less Provision for bad and doubtful Advance - - 22.51 13.36
Advance Income Tax / Tax Deducted at Source - 19.32 Less : Provision for Income Tax - - - 19.32
Others - - - Secured considered goods - - - Unsecured considered goods 18.98 18.55 - Doubtful 0.12 0.12 19.10 18.67 Less Provision for bad and doubtful Advance 0.12 0.12 18.98 18.55 41.49 51.23
132 EASTERN COALFIELDS LIMITED
Advance to Employees - Secured considered goods - - - Unsecured considered goods 77.53 54.05 - Doubtful 2.94 2.95 80.47 57.00 Less Provision for bad and doubtful Advance 2.94 2.95 77.53 54.05
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 0.13 0.15 - Doubtful 2.04 2.05 2.17 2.20 Less Provision for bad and doubtful claim receivables 2.04 2.05 0.13 0.15 Prepaid Expenses 0.46 0.61 78.12 54.81 TOTAL 187.43 176.23
Note :
CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING CURRENT PREVIOUS CURRENT PREVIOUS PERIOD PERIOD PERIOD PERIOD
Due by the Companies in which directors of the company is also a director/member NIL NIL NIL NIL ( With name of the Companies)
Due by the parties in which the Director(s) of company is /are interested NIL NIL NIL NIL
133 ANNUAL REPORT 2012-13
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 19
OTHER CURRENT ASSETS ( ` Crores)
AS AT AS AT 31-03-2013 31-03-2012
Interest Accrued - Investment - - - Deposit with Banks 140.23 52.21 - Others - -
Ex Owner’s Account - - Other Advances 0.03 0.03 Less: Provision - - 0.03 0.03 DEPOSITS
Deposit for Customs Duty, Port Charges etc. 0.67 0.68 Deposit with Coal India Limited - - Deposit for Royalty, Cess & Sales Tax - - Less: Provision - - Others 3.69 7.72 Less: Provision - -
Amount Receivable from Govt of India for transactions on behalf of Ex-Coal Board - - Less: Provision - -
Other Receivables 38.79 22.74 Less: Provision 0.11 0.10 38.68 22.64
TOTAL 183.30 83.28
134 EASTERN COALFIELDS LIMITED
NOTES TO PROFIT & LOSS ACCOUNT CONSOLIDATED : NOTE - 20
REVENUE FROM OPERATIONS ( ` Crores)
For the period For the period ended ended 31-03-2013 31-03-2012
Sales of Coal, coke etc * 12,162.59 10,695.11
Less: Excise Duty 578.00 410.58
Less : Other Levies Royalty 254.93 185.75 Cess on Coal 1,542.89 1,327.19 Stowing Excise Duty 35.54 30.49 Central Sales Tax 127.40 108.85 Clean Energy Cess 177.71 152.45 State Sales Tax/VAT 244.93 217.71 Other Levies 9.28 -
TOTAL LEVIES 2,392.68 2,022.44
Revenue From Operations (NET SALES*) 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 ANNUAL REPORT 2012-13
NOTES TO PROFIT & LOSS ACCOUNT CONSOLIDATED : NOTE - 21
OTHER INCOME ( ` Crores)
For the period For the period ended ended 31-03-2013 31-03-2012 Income From Long Term Investments
Dividend from Joint Ventures - - Dividend from Subsidiaries - - Interest from Government Securities ( 8.5% Tax Free Special Bonds) ( Trade ) 0.01 0.01 7.55% Non Convertible IRFC Tax Free Bonds 2021 Series (Non-Trade)
Income From Current Investments
Dividend from Mutual Fund Investments - - Interest from Government Securities ( 8.5% Tax Free Special Bonds) ( Trade ) 7.55% Non Convertible IRFC Tax Free Bonds 2021 Series (Non-Trade)
Income From Others
Interest (Gross) From Deposit with Banks 179.36 70.58 From Loans and Advances to Employees - From Income Tax Refunds - - From Coal India - - Others 0.13 0.19
Central Excise Duty on closing of coal 0.93 - Apex Charges - - Subsidy for Sand Stowing & Protective Works 41.80 34.17 Profit on Sale of Assets 0.80 1.32 Recovery of Transportation & Loading Cost 136.85 110.93 Gain on Foreign exchange Transactions - - Exchange Rate Variance - - Lease Rent - 3.50 Liability Write Backs 6.62 2.55 Guarantee Fees from Subsidiaries - - Other non-operating Income 182.06 75.37
TOTAL 548.56 298.62
Note : Other non-operating includes sales compensation of ` 106.22 crores (` 1.37 crores)
136 EASTERN COALFIELDS LIMITED
NOTES TO PROFIT & LOSS ACCOUNT (CONTD.) CONSOLIDATED : NOTE - 22
COST OF MATERIAL CONSUMED ( ` Crores)
For the period For the period ended ended 31-03-2013 31-03-2012
Explosives 115.92 93.27 Timber 4.23 4.44 P O L 210.88 186.13 HEMM Spares 134.36 131.03 Other Consumable Stores & Spares 184.56 159.35
TOTAL 649.95 574.22
137 ANNUAL REPORT 2012-13
NOTES TO PROFIT & LOSS ACCOUNT (CONTD.) CONSOLIDATED : NOTE - 23 ( ` Crores) CHANGE IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE For the period For the period ended ended 31-03-2013 31-03-2012 Opening Stock of Coal / Coke 477.01 431.32 Add : Adjustment of Coal / Coke Less : Deterioration of Coal/Coke 1.76 1.71 Total (1) 475.25 429.61
Less : Closing Stock of Coal/Coke 307.06 477.01 Less: Deterioration of Coal/Coke 1.76 1.76 Total (2) 305.30 475.25
A) Change in Inventory of Closing Stock (1-2) 169.95 (45.64)
Opening Stock of Workshop made finished goods and WIP 12.83 14.12 Less: Provision 0.23 0.20 Total (3) 12.60 13.92
Closing Stock of Workshop made finished goods and WIP 13.83 12.83 Less: Provision 0.20 0.23 Total (4) 13.63 12.60
B) Change in Inventory of Closing Stock of workshop (4-3) (1.03) 1.32
Press Opening Job i)Finished Goods - - ii)Work in Progress - - Total (5) - -
Press Closing Job i)Finished Goods - - ii)Work in Progress - - Total (6) - -
C) Change in Inventory of Closing Stock of Press Job made finished goods and WIP (5-6) ------
Total Change in Inventory of Stock( A+B+C ) 168.92 (44.32)
138 EASTERN COALFIELDS LIMITED
NOTES TO PROFIT & LOSS ACCOUNT (CONTD.) CONSOLIDATED : NOTE - 24
EMPLOYEE BENEFIT EXPENSES (` Crores)
For the period For the period ended ended 31-03-2013 31-03-2012
Salary, Wages, Allowances & Benefits 3,758.51 3,359.64 Exgratia 218.66 193.67 PRP 54.34 29.64 - - Contribution to P.F. & Other Funds 430.13 332.53 Gratuity 375.20 912.32 Leave Encashment 187.06 103.79 VRS 6.25 2.83 Workman Compensation 1.42 1.56 Medical Expenses 26.59 24.68 Grants to Schools & Institutions 7.55 7.60 Sports & Recreation 0.37 0.38 Canteen &Creche 0.11 0.09 Power - Township 105.96 92.26 Hire Charges of Bus, Ambulance eyc. 4.57 4.71 Other Employee Benefits 66.55 151.36 Post Retirement Medical Benefit 56.87 --
TOTAL 5,300.14 5,217.06
Note 24.1: Salary, wages, allowances & benefits includes ` 21.60 Crore provision made for Superannuation Benefit to Executive.
139 ANNUAL REPORT 2012-13
NOTES TO PROFIT & LOSS ACCOUNT (CONTD.) CONSOLIDATED : NOTE - 25
WELFARE EXPENSES (` Crores)
For the period For the period ended ended 31-03-2013 31-03-2012 Medical Expenses for retired employees 39.87 3.85 CSR Expenses -- 9.11
Environmental Expenses 0.81 1.75 Tree Plantation 0.09 0.46 Other Expenses 76.35 64.16
-
TOTAL 117.12 79.33
NOTE - 26
REPAIRS (` Crores)
For the period For the period ended ended 31-03-2013 31-03-2012 Building 1.64 1.50 Plant & Machinery 55.42 55.98 Others 3.17 4.28
TOTAL 60.23 61.76
140 EASTERN COALFIELDS LIMITED
NOTES TO PROFIT & LOSS ACCOUNT (CONTD.) CONSOLIDATED : NOTE - 27 CONTRACTUAL EXPENSES (` Crores)
For the period For the period ended ended 31-03-2013 31-03-2012 Transportation Charges : - Sand 29.41 32.23 - Coal & Coke 200.32 139.45 - Stores & Others etc. 1.26 1.13
Wagon Loading 1.91 4.05 Hiring of P&M 379.24 247.08 Other Contractual Work 60.22 57.48
TOTAL 672.36 481.42
NOTE - 28 FINANCE COSTS (` Crores)
For the period For the period ended ended INTEREST EXPENSE 31-03-2013 31-03-2012
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
OTHER BORROWING COSTS
Guarantee Fees on (IBRD & JBIC) Loan - - Other Expenses / Bank Charges * - -
TOTAL(B) - - TOTAL (A+B) 8.48 0.16
141 ANNUAL REPORT 2012-13
NOTES TO PROFIT & LOSS ACCOUNT (CONTD.) CONSOLIDATED : NOTE - 29 PROVISIONS (` Crores) For the period For the period ended ended 31-03-2013 31-03-2012 (A) PROVISION MADE FOR Doubtful debts 272.75 236.70 Doubtful advances & Claims 0.99 1.36 Foreign exchange Transaction - - Stores & Spares 2.41 5.07 Reclamation of Land/Mine Closure Expenses 64.11 57.42 Surveyed of Fixed Assets/Capital WIP 2.13 5.41 Others -
TOTAL (A) 342.39 305.96
(B) PROVISION WRITTEN BACK Doubtful debts 79.03 116.44 Doubtful advances & Claims 0.04 0.16 Foreign exchange Transaction - - Stores & Spares 2.22 0.26 Reclamation of Land/Mine Closure Expenses - - Surveyed of Fixed Assets/Capital WIP 0.18 0.11 Others - -
TOTAL (B) 81.47 116.97 TOTAL ( A-B ) 260.92 188.99
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) For the period For the period ended ended 31-03-2013 31-03-2012 Doubtful debts - - Doubtful advances - - Others - -
TOTAL - -
142 EASTERN COALFIELDS LIMITED
NOTES TO PROFIT & LOSS ACCOUNT (CONTD.) CONSOLIDATED : NOTE - 31 OTHER EXPENSES (` Crores) For the period For the period ended ended 31-03-2013 31-03-2012 Travelling expenses - Domestic 11.47 9.69 - Foreign 0.19 0.14 Training Expenses 2.22 2.04 Telephone & Postage 1.96 1.27 Advertisement & Publicity 3.29 3.13 Freight Charges 0.02 0.02 Demurrage 0.47 1.39 Donation/Subscription -- 0.17 Security Expenses 57.03 52.76 Service Charges of CIL - - Hire Charges 14.35 14.17 CMPDI Expenses Legal Expenses 1.30 1.37 Bank Charges 0.18 0.33 Guest House Expenses 0.78 0.76 Consultancy Charges 0.64 0.34 Under Loading Charges 4.80 5.58 Loss on Sale/Discard/Surveyed of Assets - - Auditor’s Remuneration & Expenses - For Audit Fees 0.22 0.19 - For Taxation Matters 0.02 0.01 - For Company Law Matters - - - For Management Services 0.12 - - For Other Services 1.70 1.22 - For Reimbursement of Expenses 0.12 0.05 Rehabilitation Charges - - Royalty & Cess 1.65 1.62 Central Excise Duty -- 3.27 Rent -- 0.03 Rates & Taxes 2.61 1.15 Insurance 0.05 0.11 Loss on Exchange Rate Variance 9.86 18.50 Lease Rent - - Rescue/Safety Expenses 1.92 1.56 Dead Rent/Surface Rent 31.78 0.32 Siding Maintenance Charges 3.11 2.60 Land/Crops Compensation 0.01 0.01 Misceleneous Expenses 109.42 84.65
TOTAL 261.29 208.45
Note 31.1 : Dead Rent / Surface Rent includes Land revenue of ` 27.57 crores.
143 ANNUAL REPORT 2012-13
NOTES TO PROFIT & LOSS ACCOUNT (CONTD.) CONSOLIDATED : NOTE - 32 PRIOR PERIOD ADJUSTMENT (` Crores)
For the period For the period ended ended 31-03-2013 31-03-2012 (A) Expenditure
Sale of Coal & Coke - - Stock of Coal & Coke - - Other Income - - Consumption of Stores & Spares - - Employees Remuneration & Benefits - - Power & Fuel - - Welfare Expenses - - Repairs - - Contractual Expenses - - Other Expenditure - - Interest and other financial charges - - Depreciation 10.56 -
TOTAL (A) 10.56 -
(B) Income
Sale of Coal & Coke - - Stock of Coal & Coke - - Other Income - - Consumption of Stores & Spares - - Employees Remuneration & Benefits - - Power & Fuel - - Welfare Expenses 9.11 - Repairs - - Contractual Expenses - - Other Expenditure - - Interest and other financial charges - - Depreciation - -
TOTAL (B) 9.11 -
TOTAL ( A-B ) 1.45 -
144 EASTERN COALFIELDS LIMITED
NOTES - 33
A. SIGNIFICANT ACCOUNTING POLICIES
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 Subsidies / Grants from Government:
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* Subsidies / Grants from Government received as an implementing agency
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 Plant & Machinery:
Plant & Machinery includes cost and expenses incurred for erection / installation and other attributable costs of bringing those assets to working conditions for their intended use.
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 ANNUAL REPORT 2012-13
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 Prospecting & Boring and other Development Expenditure:
The cost of exploration and other development expenditure incurred in one “Five year” plan period will be kept in Capital work-in-progress till the end of subsequent two “Five year” plan periods for formulation of projects, before it is written-off, except in the case of Blocks identified for sale or proposed to be sold to outside agency which will be kept in inventory till finalisation of sale.
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 Inventories:
6.1 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 Stores & Spares :
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 EASTERN COALFIELDS LIMITED
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 Stores & spare parts include loose tools.
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 : - 15.83% p.a. and 10.55% p.a.
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 leasehold land is amortised on the basis of lease period or balance life of the project whichever is earlier.
7.3 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 ANNUAL REPORT 2012-13
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 Foreign Currency Transactions:
9.1 Balance of foreign currency transactions is translated at the rates prevailing on the Balance Sheet date and the corresponding effect is given in the respective accounts. Transactions completed during the period are adjusted on actual basis.
9.2 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 Retirement benefits / other employee benefits:
a) Defined contributions plans:
The company has defined contribution plans for payment of Provident Fund and Pension Fund benefits to its employees. Such Provident Fund and Pension Fund are maintained and operated by the Coal Mines Provident Fund (CMPF) Authorities. As per the rules of these schemes, the company is required to contribute a specified percentage of pay roll cost to the CMPF Authorities to fund the benefits.
b) Defined benefits plans:
The liability on the Balance Sheet date on account of gratuity and leave encashment is provided for on actuarial valuation basis by applying projected unit credit method. [Further the company has created a Trust with respect to establishment of Funded Group Gratuity (cash accumulation) Scheme through Life Insurance Corporation of India. Contribution is made to the said fund based on the actuarial valuation.]**
c) Other employee benefits:
Further liability on the Balance Sheet date of certain other employee benefits viz. benefits on account of LTA/ LTC; Life Cover Scheme, Group Personal Accident Insurance Scheme, Settlement Allowance, Retired Executive Medical Benefit Scheme and compensation to dependants of deceased in mines accidents etc. are also valued on actuarial basis by applying projected unit credit method.
11.0 Recognition of Income and Expenditure:
Income and Expenditure are generally recognised on accrual basis and provision is made for all known liabilities.
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 EASTERN COALFIELDS LIMITED
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 Overburden Removal (OBR) Expenses :
In open cast mines with rated capacity of one million tonnes per annum and above, cost of OBR is charged on technically evaluated average ratio (COAL:OB) at each mine with due adjustment for advance stripping and ratio-variance account after the mines are brought to revenue. Net of balances of advance stripping and ratio variance at the Balance Sheet date is shown as cost of removal of OB under the head Non - Current Assets/ Long Term Provisions as the case may be.
149 ANNUAL REPORT 2012-13
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:-
Annual Quantum of OBR of the Mine. Permissible limits of variance. I I I % Quantum (in Mill.Cu.Mtr.)
Less than 1 Mill.Cu.M. +/- 5% 0.03
Between 1 and 5 Mill. Cu. M. +/- 3% 0.20
More than 5 Mill. Cu.M +/- 2% Nil
However, where the variance is beyond the permissible limits as above, the measured quantity is considered.
17.0 Prior Period Adjustments and Prepaid Expenses: Income / expenditures relating to prior period and prepaid expenses, which do not exceed ` 0.10 Crore in each case, are treated as income / expenditure of current year.
· * Policy No 2.3 not applcable to any subsidiaries except CMPDIL · ** Applicable to subsidiaries having such trust.
150 EASTERN COALFIELDS LIMITED
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 : FIXED ASSETS AND CAPITAL-WORK-IN-PROGRESS. 2.1 Building includes Roads & Culverts situated in the residential/official/factory areas. 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 ASSETS TAKEN OVER ON NATIONALISATION : The net value of assets, details of which are not available amounting to ` 8.17 crores acquired on nationalization of Coal Mines under Coal Mines Nationalisation Act, 1973 have been taken into accounts and shown under group of tangible assets against which full provision has been made.
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 Coal of 471408 M.T. (471408 M.T.) mixed with matti etc. is non-vendible and has been taken as NIL value.
4.0 : SUNDRY DEBTORS : 4.1 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 ANNUAL REPORT 2012-13
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 : CURRENT LIABILITIES & PROVISIONS. A. CURRENT LIABILITIES : 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 Table LICI 1994 – 1996 Superannuation Age 60 years Early retirement & disablement 10 per thousand per annum 6 above age 45 3 between 29 and 45 1 below age 29 Financial Assumpton Discount rate 8. % Inflation rate 6 % Return on Assets Not-funded Remaining working life 12 years Formula used Projected Unit credit Method
5.3 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. 5.4 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. 5.5 During the year Company has made a provision of ` 218.66 Cr. towards payment of Ex-gratia to non- executives employees @ ` 26500/- per employee.
6.0 : PROFIT AND LOSS ACCOUNT : 6.1 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. 6.2 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 EASTERN COALFIELDS LIMITED
7.0 CAPITAL COMMITMENT : 7.1 Estimated amount of contract remaining to be executed is ` 180.06 crores ( ` 135.30crores). 7.2 CLAIMS AGAINST THE COMPANY NOT ACKNOWLEDGED AS DEBTS. (` in Crores) Particulars Current year Previous year
Sales Tax 146.80 149.54 Royalty & Cess 1262.78 2947.50 Others 562.73 460.00 Total 1972.31 3557.04
7.3 : DIRECTORS’ REMUNERATION : ( ` in Crores) Particulars Current year Previous year
Salary & Allowances 0.80 1.24 Provident Fund. 0.07 0.08 Perquisites. 0.14 0.16 Retirement benefit. NIL NIL Total 1.29 1.48
Salary and Allowances includes PRP of ` 0.12 crores a) 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 : Production of Coal of 339.01 lakh tonnes (305.58 lakh tonnes).
9.0 : COAL :
(Quantity in lakh tonnes) ( ` in crores)
Particulars 31.03.13 31.03.12 31.03.13 31.03.12
Op. Stock 45.19 47.91 476.65 430.58 Adjust / seized coal. ------3.54 1.40 Sales(*) 355.42 304.90 9191.91 8262.09 Closing Stock (**) 25.86 45.19 309.74 476.65
(*) 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) .
(**) Net surplus/shortage – NIL .
153 ANNUAL REPORT 2012-13
10.0 : Earning in foreign exchange :- NIL .
11.0 : CIF Value of Imports. ( ` in Crores) in Crores) Particulars Current Year. Previous Year.
a. Raw Materials Nil Nil b. Components, Stores & Spares. 13.86 21.18 c. Capital Goods. Nil 28.97
12.0 : Expenditure in Foreign Currency :
( ` in Crores) Particulars Current Year Previous Year.
a. Travelling Expenses. .07 0.14 b. Expenses on Know - How & Foreign Consultancy. -- -- c. Pension to the Foreigners. -- -- d. Others 5.48 6.95
13.0 : Total consumption of Stores during the year.
(` in Crores) (Percentage) Particulars Current Previous Current Previous Period Period Period Period a. Total consumption of imported materials. 19.63 21.64 3.02 3.82 b. ·Indigenous 630.32 552.58 96.98 96.18
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 EASTERN COALFIELDS LIMITED
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 ANNUAL REPORT 2012-13
held on 5th August, 2010 had approved the above Draft Modified / Revised Proposal (DMRP). Company presented the DMRP to BRPSE and BRPSE reviewed the ECL’s 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 , 2010- 11,2011-12 & 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) Production targets have been reviewed further with pessimistic approach. ii) Pricing of coal at par with imported coal price iii) Projection to be made with conservative estimates. Accordingly, ECL has submitted a revised estimate where it shows that by considering the above approach, the net worth of ECL will become positive in the year 2013-14 or otherwise by CIL pricing guidelines, the net worth of the company will become positive in the year 2015-16. The position has been intimated to BIFR on 15.10.2011. In view of above, the accounts of the company has been prepared on the basis of Going Concern Concept.
15.0 : ACCOUNTING STANDARDS a). 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, 2013- ` 1655.54 b) Weighted average number of shares - 22184500 Nos.
EPS - (Basic & diluted) (a/b) ` 746.26 d) 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 EASTERN COALFIELDS LIMITED
( ` 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 Deferred Tax Assets: (i) Provision for Gratuity 2655.84 (26.30) 2629.54 (ii) Provision for super annuation benefit 77.02 21.61 98.63 (iii) Provision for Mine Closure 153.27 64.11 217.38 2886.13 59.42 2945.55 Deferred Tax Liability (i)Difference between Tax & Book depreciation (319.61) 37.64 (281.97) Net 2566.52 97.06 2663.58 Net Deferred Tax Asset Transferred to general reserve 832.71 832.71 Net Deferred Tax Asset Credited to Profit & Loss a/c 31.49 31.49 Total Deferred Tax Asset (Net) 864.20 e) AS-24: There is no discontinuation in operation of any activities in any mines during the year. f) 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. g) 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 Provision Closing Provision as on made during Written back provision 31.03.2012 The year/Period During the as on Year 31.03.2013
Unserviceable/Damaged/ 11.66 — 1.04 10.62 Obsolete Stores Suspence 2.32 2.32 Non moving Stores 33.00 2.41 1.18 34.23 Loans and Advances and Other Current Assets 19.40 0.99 0.04 20.35 Mine Closure Plan 153.27 64.11 --- 217.38 Actuarial provision for Gratuity 2655.84 ---- 26.50 2629.54 Actuarial provision for Leave encashment 387.98 92.74 --- 480.72
157 Details Opening Provision Provision Closing Provision as on made during Written back provision 31.03.2012 The year/Period During the as on Year 31.03.2013
Actuarial provision for LTC/ LLTC 22.81 5.15 --- 27.96 Actuarial provision for Life Cover Scheme 21.83 0.73 1.22 21.34 Actuarial provision for Settlement Allowances 64.98 --- 3.92 61.06 Actuarial Provision for Fatal Mine Accident Benefit 47.69 1.54 --- 49.23 Actuarial Provision for Gross Personal Accident Policy 0.18 ------0.18 Actuarial Provision for Post Retirement Medical benefit 6.71 102.83 6.71 102.83 Total 3427.67 270.50 40.41 3657.76
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.