LIMITED

MANAGEMENT DURING 2014-15 MANAGEMENT AS ON 27th JUNE, 2015 FUNCTIONAL DIRECTORS: FUNCTIONAL DIRECTORS: Shri Rakesh Sinha Shri Chandan Kumar Dey Chairman-cum-Mg. Director Chairman-cum-Mg. Director (additional charge) Shri S. Chakravarty Shri S. Chakravarty Director (Technical) Opn. Director (Technical) Opn. Shri Chandan Kumar Dey Shri K.S. Patro Director (Finance) (upto 28.02.2015) Director (Personnel)/[(Finance) (additional charge)] Shri Ramesh Chandra Shri B.R. Reddy Director (Technical) P&P (upto 30.06.2014) Director (Technical) P&P Shri K.S. Patro Director (Personnel) PART-TIME OFFICIAL DIRECTORS: Shri B.R. Reddy Shri V. Peddanna Director (Technical) P&P (From 30.09.2014) Director, MoC PART-TIME OFFICIAL DIRECTORS: Shri Chandan Kumar Dey Shri A. Chatterjee Director (Finance), CIL Director (Finance), CIL (upto 28.02.2015)

Shri V. Peddanna Permanent Invitee: Director, MoC Shri A.K. Gupta Shri Chandan Kumar Dey Chief Operations Manager, Eastern Railway Director (Finance), CIL (w.e.f 19.03.2015) COMPANY SECRETARY: SPECIAL DIRECTOR APPOINTED BY BIFR: Shri V.R. Reddy Shri K.K. Gautam (upto 28.02.2015) NON-OFFICIAL PART-TIME DIRECTORS: Shri Subrata Chaudhuri (upto 23.06.2014) Shri S.K. Mohanty (upto 23.06.2014) Shri S.M. Lodha (upto 23.06.2014) Shri S.M. Sharma (upto 08.09.2014) PERMANENT INVITEE : Shri A.K. Gupta Chief Operations Manager, Eastern Railway COMPANY SECRETARY: Shri V.R. Reddy

1 ANNUAL REPORT 2014-15

BANKERS DURING 2014-15 State Bank of India Axis Bank Bank of Baroda United Commercial Bank Union Bank of India United Bank of India Oriental Bank of Commerce Canara Bank Bank of India Punjab National Bank

STATUTORY AUDITOR DURING 2014-15 1. M/s. M Choudhury & Co., 162, Jodhpur Park, Kolkata-700068.

BRANCH AUDITORS DURING 2014-15 2. M/s U S Saha & Co., 228 Kamalalaya Centre, 2nd Floor, 156 A Lenin Sarani, Kolkata-700013. 3. M/s R. P. Boobna & Co., Karnani Estate, 209, AJC Bose Road, 2nd Floor, Room No. 87, Kolkata - 700017. 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 Roy Ghosh & Associates, 39, Kalna Road, Badamtala, Burdwan-713401

COST AUDITORS DURING 2014-15 1 M/s B.G. Chowdhury & Co., Sree Appartments, 4A, 11/47A, Panditya Road, Kolkata-700029 2 M/s Mani & Co., Ashoka, 111, Southern Avenue, Kolkata-700029, 3 M/s Datta Ghosh Bhattacharya & Associates, 37, Gobindo Bose Lane, Kolkata-700025 4 M/s M.G. & Associates, Punjabi Para, RN Road, Burnpur, , Dist.: Burdwan-713325 5 M/s Basu Banerjee Chakraborty Chattopadhyay & Co., 42/B, Shibtala Street, Hooghly-712258 6 M/s ATM & Associates, 36/1, Block A, Bangur Avenue, Kolkata-700055

INTERNAL AUDITORS DURING 2014-15 1. M/s Abhijit Dutta & Associates, 8/2 Kiran Shanker Roy Rd, Room-2&3, 2nd Floor, Kolkata-700001. 2. M/s D N Dokania & Associates, 103A, Shanti Bhawan, Bank More, Dhanbad-826001. 3. M/s S.K. Mallick & Co., Bikaner Bldg., 8-B Lal Bazar Street, 1st Floor, Room-2, Kolkata-700001. 4. M/s Mitra Ghosh & Roy, Room No.-5, 33/B, Lake Avenue, Kolkata-700026. 5. M/s K.L. Banerjee & Co., Hastings Chambers, 7C, Kiran Shanker Roy Rd., Kolkata-700001. 6. M/s S.K. Bhattachariya & Co., 4, Kiran Shanker Roy Rd., Raja Chambers, Kolkata-700001. 7. M/s Amit Ray & Co., 5-B Sardar Patel Marg, Allahabad-211001. 8. M/s A.J.S & Associates, 55-B, SP Mukherjee Rd., 1st Floor, Near Hazra Crossing., Kolkata-700026. 9. M/s N.C. Mittal & Co., Behl House, 13, Daryaganj, New Delhi-110002. 10. M/s H.P. Jhunjhunwala & Co., 907, Marshal House, 33/1 NS Road, Kolkata-700001. 11. M/s P.D. Rungta & Co., 21, Hemanta Basu Sarani, 3rd Floor, Room No.-317, Kolkata-700001. 12. M/s SBA Associates, 27, Mirza Ghalib Street, 5th Floor, Kolkata-700013. 13. M/s K.N. Jain & Co., 2, Lal Bazar Street, 2nd Floor, Room No.-204, 205, Kolkata-700001. 14. M/s G G M & Co., 503, Parnasree, RIC More, Kolkata-700060. 15. M/s A.R. Maiti & Co., Centre Point, Room-442, 21 Old Court House Street, Kolkata-700001.

REGISTERED OFFICE OF THE COMPANY CMD's Office, Sanctoria, Post - Dishergarh, District - Burdwan, Pin - 713333

MISSION STATEMENT To produce and market the planned quantity of coal and coal products efficiently and economically in an eco-friendly manner with due regard to safety, conservation and quality.

VISION STATEMENT To emerge as a global player in the primary energy sector committed to provide energy security to the country by attaining environmentally & socially sustainable growth through best practices from mine to market.

2 EASTERN COALFIELDS LIMITED

B©ñQ>Z© H$mob\$sëS²>g {b{_Q>oS> Eastern Coalfields Limited «AÜ`j-gh-à~§Y {ZXoeH$ H$m H$m`m©b` Office of the Chairman-cum-Managing Director gm§H$Vmo{‹S>`m, nÌmb` - {S>goaJ‹T>, Sanctoria, P.O. Disergarh- 713333, {Obm - ~Õ©_mZ, npíM_ ~§Jmb - 713333 Distt. Burdwan ( W.B.) H§$nZr g{Mdmb` Company Secretariat gr.AmB.EZ.-U10101WB1975GOI030295 CIN: U10101WB1975GOI030295 do~gmBQ> - www.easterncoal.gov.in Website : www.easterncoal.gov.in Telefax : 0341-2520546 E-mail: [email protected]

Ref.No. ECL:CS: 15(2015)/2242 5th June, 2015 NOTICE

Notice is hereby given that the Fortieth Annual General Meeting of the Shareholders of Eastern Coalfields Limited will be held on Saturday, the 27th June, 2015 at the Registered Office of the Company at Sanctoria, P.O. Disergarh-713333, Dist.-Burdwan () at 11:00 A.M. to transact the following businesses. ORDINARY BUSINESS: 1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2015, Profit and Loss Account for the financial year ended on that date together with the Reports of Statutory Auditor & Comptroller & Auditor General of India and Directors’ Report. 2. To appoint a Director in place of Shri Subrata Chakravarty (DIN-02586945), Director, who retires by rotation in terms of Section 152(6) of the Companies Act 2013 and being eligible, offers himself for reappointment. 3. To appoint a Director in place of Shri K.S. Patro (DIN-06739224), Director, who retires by rotation in terms of Section 152(6) of the Companies Act 2013 and being eligible, offers himself for reappointment.

Dated: June 5, 2015 By order of the Board

Registered Office: Eastern Coalfields Limited, (V. R. Reddy) Sanctoria, P.O. Dishergarh, (dr.Ama. aoÈ>r) / Distt. Burdwan (West Bengal), _hmà~§YH$ ({dÎm)/H§$nZr g{Md PIN: 713333. General Manager (Finance) / Company Secretary

Notes : (i) A member entitled to attend and vote at the Annual General 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. In order to be effective , the Proxy form duly completed should be deposited at the registered office of the company not less than forty-eight hours before the scheduled time of the Annual General Meeting. (ii) Pursuant to Section 139(5) of the Companies Act, 2013, the Auditors of a Government Company are to be appointed or re-appointed by the Comptroller and Auditor General of India (C&AG) and in terms Section 142(1) of the Companies Act, 2013, their remuneration has to be fixed by the Company in the Annual General Meeting or in such manner as the Company in General Meeting may determine. The Members of your Company in its 8th Extra Ordinary General Meeting held on 30th July, 2001 authorised the Board of Directors to fix the remuneration of Statutory Auditors. Copy to : a. M/s M. Choudhury & Co., Chartered Accountants, Statutory Auditors 162, Jodhpur Park, Kolkata-700068 b. M/s. Mitul Jain & Associates, Company Secretaries, Secretarial Auditors 3, Maharshi Debendra Road, 3rd Floor, Kolkata-700007 c. All Directors, Eastern Coalfields Limited

3 ANNUAL REPORT 2014-15

CHAIRMAN’S STATEMENT

Friends,

I have immense pleasure in welcoming you to the 40th Annual General Meeting of Eastern Coalfields Limited. The Directors’ Report, audited accounts for the financial year 2014-15 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, and coal dominates the energy mix in India, contributing over 52% of the country’s energy need. Today the Indian economy is in acute need of energy. Our company produces one of the best qualities of Non-Coking Coal which caters to the needs of various power plants, cement factories etc.

2. The strategic vision of the company is to emerge as a global player in the primary energy sector committed to provide energy security to the country by attaining environmentally & socially sustainable growth through best practices from mine to market.

3. With an overall astounding performance, ECL has been able to come out of BIFR during the year 2014-15. The company reported a positive networth of ` 916.87 crore as on 31.12.2014 and accordingly BIFR declared ECL as no longer sick company within the meaning of Section 3(1) of SICA.

4. ECL has surpassed all physical parameters in the year 2014-15. ECL has produced 40.006 Mt Coal. ECL has surpassed the target of 38.00 Mt with a growth rate of 10.99 % over last year. The Company has achieved ever highest OB removal to the tune of 94.047 Million Cum which is 106.89 % of the Annual Target with a substantial positive growth of 9.66 % over last year.The UG production has recorded a phenomenal growth of 6.13 % over last year after a long gap. With the introduction of mass production technology by deploying Continuous Miner and Power Support Longwall etc in and other mines, the underground coal production will continue to improve in the coming years.

5. ECL has despatched 38.469 MT Coal (101% of target) during 2014-15 with a positive growth of 6.11% over last year.

6. In 2014-15, projects namely UCE of New Kenda OC, UCE of Jhanjra Low Height CM and RCE of Khottadih OCP were approved by the Board.

7. During the year 2014-15, 2 (two) projects namely Kumardih-B CM and New Kenda OC were approved by the Board of Directors of Coal India Limited.

8. Highwall Mining Technology is proposed to be introduced in Sripur and Nimcha Project. Continuous efforts are being made to enhance the coal production from underground mines. As on 31.03.2015 215

4 EASTERN COALFIELDS LIMITED

Nos. of SDLs, 27Nos. of LHDs and 70 Nos. of UDMs are in operation in different underground mines of ECL.

9. 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 2014-15 we planted 66500 Nos. of trees/sapling covering an area of 35 Ha.

10. 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 etc. During the year ` 2485.68 lakh (approx.) was spent on Sustainable Development, Welfare and CSR activities. We have also committed to construct/repair 3488 toilets in various schools under Swachh Bharat Mission (Swachh Vidyalaya Abhiyaan) at an approximate cost of ` 82.92 crore.

11. We have always given the highest priority towards safety, which is considered as a part of core production process in ECL. To improve the safety standards, ECL has vigorously pursued several measures during the year.

12. As required under Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs) issued by the Department of Public Enterprises, Government of India a separate section on Corporate Governance has been added in the Directors’ Report and a Compliance Certificate has been obtained from the statutory auditors.

13. We are committed to produce more than 42 MT coal during 2015-16 and confident that ECL will march ahead in the times to come.

I express my sincere thanks to Coal India Limited, Ministry of Coal, other Central Government Ministries and Departments, State Governments, Railways, Bankers, all employees, Trade Unions, consumers, suppliers other stake holders for their unstinted support and relentless co-operation.

(Chadan Kumar Dey) Chairman Place: Sanctoria Date: 27th June, 2015

5 ANNUAL REPORT 2014-15 DIRECTORS' REPORT To The Shareholders, Eastern Coalfields Limited Gentlemen, I, on behalf of the Board of Directors, have pleasure in presenting the 40th Annual Report on the working of your Company together with audited accounts for the year ended 31st March, 2015, 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. Eastern Coalfields Limited came out of purview of BIFR during the financial year 2014-15. b. Eastern Coalfields Limited is the only subsidiary of CIL which has surpassed the targets for all the key physical parameters as well as sales realization with substantial positive growth. All these achievements are ever highest since inception of the company. c. ECL is the only subsidiary of CIL which not only achieved the target for underground coal production, but has also registered positive growth of more than 6%. d. ECL has obtained environment clearance for almost all mines which were taken over at the time of nationalization through cluster concept. e. Different mines of Eastern Coalfields Limited have received 7 awards from Hon’ble President of India during National Mines Safety Award Ceremony. f. ECL received 2nd Prize from Hon’ble President of India for its contribution in use of Hindi in “C” category. g. Eastern Coalfields Limited was awarded 1st prize for commendable job done for working women through WIPS amongst Non-Navratna/Maharatna PSUs. h. ECL won the 1st prize in the inter subsidiary athletic tournament, cricket tournament and cultural meet. 1.0 PRODUCTION: 1.1 Production performance of the Company in 2014-15 against the target as well as compared to last year was as under: Growth Over Particulars Unit 2014-15 2013-14 last year Target Actual Achieved Actual Absolute % (%)

1. Production : M.Te. i) Raw Coal - UG 7.25 7.292 100.57 6.871 0.421 6.13 - OC 30.75 32.714 106.39 29.175 3.539 12.13 Total 38.00 40.006 105.28 36.046 3.960 10.99 ii) Coking Coal : - Blendable 0.00 0.004 100.00 0.010 -0.006 -60.00 - Others 0.00 0.029 100.00 0.038 -0.009 -23.68 iii) Non-Coking : 38.00 39.973 105.19 35.998 3.975 11.04 2. O.B. Removal MCuM 88.00 94.047 106.89 85.76 8.287 9.66 3. Productivity(OMS) Tonnes - Underground 0.527 0.534 101.33 0.48 0.054 11.25 - Opencast 12.116 12.121 100.04 10.96 1.161 10.59 - Overall 2.333 2.445 104.80 2.12 0.325 15.33

6 EASTERN COALFIELDS LIMITED

1.2 SYSTEM CAPACITY UTILISATION : (Figure in %)

Particualars 2014-15 2013-14 Target Actual Achieved(%) Actual a) UG 79.11 79.56 100.57 70.76

b) OC (Dept) Excv. 100.33 88.32 88.03 105.86

c) OC (Hired) Excv. 101.19 113.98 112.64 173.68

d) OC (Dept.+Hired) Excv. 100.81 108.28 107.41 147.06

e) Total [UG + OC (D)] 97.99 86.40 88.17 101.55

f) Overall (UG+OC) (Hired + Dept.) 99.69 106.80 107.13 130.77

2.0 FINANCIAL RESULTS : 2.1. Gross sales turnover for the year ending 31st March, 2015 was ` 13413.84 crores compared to ` 11945.92 crores in the previous year resulting in increase of 12.29% over previous year. During the year under review, company had made a pre-tax profit of ` 1782.41 crore and a Post-tax Profit of ` 1139.40 crore compared to last year’s pre-tax profit of ` 1299.28 crore and post-tax profit of ` 872.23 crore. Details were as under: (` in Crore)

Particulars 2014-15 2013-14

Profit(+)/Loss(-) after charging all expenses but before PRP / Executive Superannuation benefit interest, depreciation, impairment, O.B.R., prior period adjustment. 2505.87 1831.37 Less: Impact of PRP/Executive Superannuation Benefit. 90.98 88.51 Less: Actuarial provision (AS-15) 148.96 –54.31 Less: Interest. -- -- Less: Depreciation/Impairment/Mine Closure Provision. 311.28 284.53 Less: OBR Adjustment 174.42 210.00 Profit (+)/Loss (-) for the year after charging interest and depreciation, impairment and OBR Adjustment. 1780.23 1302.64 Less: Prior Period Adjustment. –2.18 3.36 Net Profit (+)/Loss (-) after considering Prior Period Adjustment. 1782.41 1299.28 Cash Profit 2539.88 1518.43 Profit after Tax 1139.40 872.23

2.2 Capital Expenditure :

Total Capital Expenditure during the year under review was `686.69 crores (Excluding exchange fluctuation) against the Capital Expenditure of ` 408.87 crores during 2013-14.

7 ANNUAL REPORT 2014-15

2.3 Capital Structure :

(` in Crore)

Particulars 2014-15 2013-14

A. SHARE CAPITAL i) Authorized Share Capital (2,50,00,000 Eq. shares of ` 1000 each & (2,10,00,000 Preference Shares of ` 1000 each) 4600.00 2500.00 ii) Paid up Equity Share Capital (2,21,84,500 shares of ` 1000 each) 2218.45 2218.45 iii) Paid up 6% non-convertible, cumulative, redeemable Preference Shares, fully paid up (20509700 shares of ` 1000 each) 2050.97 --- B. LOAN FUNDS: i) Coal India Limited (Holding Company) -- 518.97 ii) Export Development Corporation, Canada. 170.21 168.07

2.4 Repayment of Foreign Loan : (` in Crore)

Particulars 2014-15 2013-14

Repayment of foreign loan through CIL. 5.75 5.74

2.5 Payment/Adjustment of Royalty, Cess, Stowing excise duty & Sales Tax during the year:

(` in Crore)

Particulars

i) Royalty on Coal 12.29 320.47 -- 332.76 11.80 300.65 -- 312.45 ii) RE & PE Cess 1411.72 -- -- 1411.72 1455.22 -- -- 1455.22 iii) AMBH Cess 1.69 -- -- 1.69 1.62 -- -- 1.62 iv) PW & Road Cess 1.74 -- -- 1.74 1.62 -- -- 1.62 v) Sales Tax (VAT/CST) 283.71 79.72 -- 363.43 313.55 68.06 -- 381.61 vi) Stowing Excise Duty -- -- 38.44 38.44 -- -- 35.78 35.78 vii) Clean Energy Cess -- -- 307.78 307.78 -- -- 189.55 189.55 viii) Excise Duty on Coal -- -- 565.40 565.40 -- -- 547.20 547.20 TOTAL 1711.15 400.19 911.62 3022.96 1783.81 368.71 772.53 2925.05

2.6 Directors' Responsibility Statement : Pursuant to sub-section (5) of Section 134 of the Companies Act, 2013 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 2015, all the applicable accounting standards were followed with proper explanation relating to material departures; 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;

8 EASTERN COALFIELDS LIMITED

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, 2013 for safeguarding the assets of the company and for preventing and detecting fraud and other irregularities; d. the Directors had prepared the annual accounts on a going concern basis; e. the Directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operating effectively; and f. the Directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively. 3.0 PLANNING : 3.1 Command Area of Operations: There are 14 number of operating areas with 103 number of working mines, 75 being underground mines, 19 opencast mines and 9 mixed mines.

3.2 Capex Target and Actual for 2014-15 and Target for 2015-16 :

2014-15 2013-14 2015-16 Sl. No. Particulars Target Revised Actual Actual Target (BE) Target (RE)

1 Production (Mt) 38.00 38.00 40.006 36.046 42.13

2 Plan expenditure ((in ` Crore)in Crore)970.00 970.00 686.69 408.87 1030.50

3.3 Research and Development:

3.3.1 CIL R&D Project: Detailed status of implementation of ongoing R&D Projects funded under R&D grant of CIL is enclosed as Annexure –I.

3.3.2 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.

3.4 Modernization of Coal Industry: In order to increase the level of modernization and mechanization in underground mines intermediate technology deploying LHD/SDL was introduced in 65 no of mines of ECL till 2014-15. Five manual districts have been converted to mechanized district during 2014-15. As on 31.3.2015, 215 no of SDLs and 27 no of LHDs were on roll in different underground mines of ECL. During 2014-15, production achieved from SDLs was 4.385 Mt., from LHDs was 0.95 Mt and from Dosco is 0.025 Mt. Upto 31.03.2015, 70 Nos. of UDM were procured to cater the shortage of driller as well as to improve coal preparation and support at faces.

Apart from introduction of intermediate technology by deploying SDL/LHD in loading operation, “Mass production technology” by deploying Continuous Miner combined with Shuttle car had been deployed at Jhanjra and Sarpi project. In Jhanjra Project, the production achieved during 2014-15 from 2 no of Continuous Miners was 0.990 Mt. Production achieved from CM operation at Sarpi during 2014-15 was 0.407 Mt.

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3.5 Steps taken to improve underground production: Considering the various operational constraints, liquidation of upper seam, delay in 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 Low height CM, Kumardihi B, Khottadih, Tilaboni, Shankarpur, Sidhuli apart from gradual phasing out of manual operation. For Jhanjra PSLW (R-VI), powered support prototype has been manufactured by M/s CODCO. Approval of shield Support obtained from DGMS on 03.09.2014. Permission for field trial of Road Header, electrical equipment for Longwall, Side Loader & electrical equipment for Belt conveyors from DGMS obtained in Feb’2015.

3.6 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 New Kenda OC (UCE) 1.20 127.72 Approved on 13.09.2014

2 Jhanjra Low Height 0.72 114.23 Approved on 06.12.2014 Continuous Miner(UCE)

3. Tilaboni UG 1.86 727.40 Approved on 27.01.2015

4. Khottadih OCP (RCE) 1.50 60.10 Approved on 25.12.2014

3.7 Details of Projects approved by Board of Directors of CIL during the year :

SL Name of the Capacity (MTY) Approved Capital Date of Approval No Project Investment (` Cr)

1 Kumardih-B CM 1.02 117.90 Approved on 29.05.2014 2. New Kenda OC 1.20 127.72 Approved on 21.10.2014

3.8 Details of Project Formulation :

Sl. No. Name of the project Capacity (MTY) Estimated Capital (` in crore) 1 Tilaboni UG 1.86 727.40 2 Recast Hura-C OC 3.00 Outsourcing-396.69 Departmental-1095.57 3 Nakrakonda-Kumardih-B OC 3.00 Outsourcing-181.86 Departmental-926.06 4 Parasea-Belbaid UG 1.83 886.41 5 Mohanpur Expansion OC 2.00 Outsourcing-326.55 6 Chitra Expansion OCP 4.00 Outsourcing-1055.23 Departmental-1589.15 7 Recast of Siduli OC:1.00 & UG:1.02 605.78 8 Nabakajora-Madhabpur UG Mine 1.08 1310.60 Phase-I

10 EASTERN COALFIELDS LIMITED

3.9 Capital Projects/ Schemes: i. No. of new Projects: 2 (Kumardih - B CM and New Kenda OC) ii. Others - 16 iii. Total – 18

3.10 New Initiatives and Future Programme: Following initiative have been taken in 2014-15 for augmentation of production from underground and opencast operation: a. Introduction of High-wall Mining: ESC of CIL Board in its 83rd meeting held on 21.10.2014 approved the proposal for extraction of coal by Highwall Mining at the following patches/sites.

SL No Name of the Estimated extractable reserve (Mt) Land Capacity (MTY) & Block/Seam for maximum drivage length required Capital Investment 300 Meter 200 Meter (Ha) (` Cr)

1 Sripur / Taltore (R-I) 0.86 0.81 81.61 0.50 (MTY) & 2 Nimcha / (R-IXA) 1.84 1.66 120.90 ` 36.65 Cr..

b. Technological up-gradation and Modernization of existing UG mines: The existing underground mines which have been identified for Technological up-gradation and Modernization are Badjna, Shyampur B, Siduli, Ghusick and Nimcha. M/S KPMG Advisory Services Pvt. Ltd. was assigned with the above job. They have submitted the final report to ECL and MoC and the report is found to be acceptable.

c. Introduction of mass production technology [Continuous Miner (CM)] : The following mines have been identified for introduction of CM in XII/XIII plan :

Sl Name of the Mine/Project Capacity Estimated Capital No (MTY) Expenditure (` in Cr.)

1 Kumardih - B CM 1.02 117.90 2. Jhanjra LHCM 0.72 114.23 3. Tilabaoni UG 1.86 727.40 4. Siduli UG OC : 1.00 & UG : 1.02 605.78 5. Shankarpur OC : 2.00 & UG : 1.163 401.43 6. Parasea-Belbaid UG 1.83 886.41 7. Naba- Madhabpur UG 1.08 1310.60 8. Khottadih CM 1.00 127.17 d. Foreign collaboration/Technology Absorption-Adaptation and innovation: 2nd Set CM at Jhanjra UG has been commissioned in underground on 04.05.2014 and production started from May 2014. For Jhanjra R-VI Seam PSLW, contract for supply and operation of PSLW was signed on 8th January, 2013. Testing of Prototype Support was done in China in March 2014. Permission for field trial of Road Header from DGMS was obtained on 10.02.2015. Permission for field trial of electrical equipment for Longwall from DGMS has been obtained on 12.02.2015. Permission for field trial of Side Loader & electrical equipment

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for Belt conveyors from DGMS was obtained on 24.02.2015. The Break Bulk Cargo (mainly all the Power Supports) has been shipped from China. e. Introduction of Man-riding System: Order for procurement of Man-riding system for Haripur and Parasea Colliery were placed and equipment has since been supplied which is under testing. Action has been taken for procurement of 3 no. of Free-steered vehicle at Jhanjra Longwall and for 2nd set CM. 3.11 Details of OC Patches approved during 2014-15:

SL No. Name of Patch Area Minable Volume of OB Reserve (MT) (M Cum) 1 Bonjemehari (Extension) Salanpur 2.40 10.50 2 Kalipahari Patch-C Sripur 0.087 1.00 3 Damalia (Extension) Satgram 0.35 1.25 4 Dabor(Ph-III) Salanpur 6.73 22.93 5 Shankarpur(Ph-IV) Kenda 4.40 12.80 6 North Searsole (Extension) Kunustoria 2.00 9.30 7 Dalurband (Ph-III) Pandaveswar 2.60 31.00 8 Parasea (Sonachora) Kunustoria 0.50 6.00 9 Kapasara (Extension) Mugma 0.50 1.90 10 Revised Scheme of Narainkuri OC patch. Kunustoria 1.36 6.18

3.12 MoU Activities:

Measurement Sl. Performance Target for Achievements No. Indicator Unit the year 1 Approval & Recommendation Month Oct, 2014 Achieved. UCE of PR of New Kenda of ECL Board for seeking OC approved and recommended by approval of CIL Board for UCE ECL Board on 12.09.2014 for of New Kenda OC: Capacity placing the same to CIL Board for 1.2MTY final approval. 2 Approval by CIL Board of UCE Month Jan, 2015 Achieved. UCE of New Kenda OC of New Kenda OC: Capacity PR placed before 83rd ESC of CIL 1.2MTY Board on 21.10.2014 and was approved. 3 Approval & Recommendation Month Nov, 2014 Not Achieved. UCE was approved of ECL Board for seeking in 274th meeting of Board of approval of CIL Board for UCE Directors of ECL held on of Jhanjra Low Height 06.12.2014. Continuous Miner. Capacity 0.72MTY 4 Approval by CIL Board of UCE Month Feb, 2015 UCE of Jhanjra Low Height CM of of Jhanjra Low Height capacity 0.72 MTY has been Continuous Miner: Capacity submitted to CIL on 22.12.2014 for 0.72MTY approval. CIL Board in its meeting held on 27.02.2015, accorded

12 EASTERN COALFIELDS LIMITED

approval for 1st Year expenditure of ` 31.23 crore of PR. Final approval of PR is still awaited. 5. Commissioning of 2nd set of Month July, 2014 Achieved. Commissioned on Continuous Miner at Jhanjra 04.05.2014 6. Rehabilitation of villages at No. of PAFs 100 96 Rajmahal OC Project by shifting of PAFs 7. Rehabilitation of villages at No. of PAFs 100 338 Sonepur Bazari OC (combined) Project by shifting of PAFs 8. Completion of Drivage of Month March'15 Achieved. Bottom gate drivage Bottom gate for Longwall completed for 1673 Metre on panel at Jhanjra for PSLW 09.11.2014. project 9. Testing & DGMS approval of Month Oct., 2014 Achieved. Testing of powered roof powered roof support for support for Jhanjra PSLW project Jhanjra PSLW Project in China is completed. DGMS approval of powered roof support obtained on 03.09.2014. 10. Updation of 3 nos. Master Month 25th Mar, Achieved. Updation of 3 Nos. Master Control Network of MOSPI 2015 Control Network of MOSPI monitored new projects monitored new projects has been prepared and sent to MOSPI, New Delhi and CIL on 30.12.2014. 11. Determination of barrier Month Feb'15 Achieved. Radar survey by CIMFR, thickness of R-V seam Dhanbad has been completed in between old abandoned the month of June-2014. Report workings of Pure Kenda submitted in Sept.14 colliery & present workings of No. 7 pit of Lower Kenda colliery at by Ground Probe (Mine view) Radar Method. 12. Use of innovative water gel to Month Jan, 2014 Trial for water gel has been done combat fire of coal stack/ successfully. Procurement is under overburden dumps process. 13. Capital Expenditure ` Crore 875.00 686.69

3.13 Project Monitoring and Status of Implementation : Details given as Annexure - III (Separately)

13 ANNUAL REPORT 2014-15

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 2014-15 was 38.469 million tonne against the demand of 38.00 million tonne i.e. demand satisfaction of 101%. Sector-wise demand and off-take during the year 2014-15 compared to 2013-14 is as follows: (Figures in Million Tonne) (Figure(( in Million Tonne)

Sector Off-take 2014-15 Off-take 2013-14

Demand Actual % Satisfaction Demand Actual % Satisfaction

POWER 33.727 35.102 104 29.950 31.052 104 CEMENT 0.128 0.080 62 0.200 0.064 32 CPP(ORS) 0.279 0.090 32 0.403 0.123 31 CPP (STEEL) 0.303 0.364 120 0.300 0.313 104 STEEL (BLEND) 0.014 0.007 47 0.008 0.007 88 SPONGE IRON 0.227 0.134 59 0.807 0.146 18 EXPORT -- 0.004 ------LOCO -- 0.001 ------DEF -- 0.001 -- 0.030 0.004 13 COLLY. CONS. 0.38 0.249 66 0.340 0.277 81 OTHERS 2.942 2.438 83 3.162 4.269 135 TOTAL 38.000 38.469 101 35.200 36.255 103

5.2. Average loading of Wagons per day : Field-wise average loading of wagons for the year 2014-15 compared to previous year is as follows : (Figures in Box/Day)

Loading of wagons Field 2014-15 2013-14 Target Actual Target Actual 656 696 701 663 Mugma/Salanpur 180 190 150 164 Adra 20 19 24 16 Pirpainti 122 28 201 76 Rajmahal (Wharf Wall) 142 143 0 130 Total 1120 1076 1076 1049

14 EASTERN COALFIELDS LIMITED

5.3. Mode-wise despatch : Mode-wise despatch of coal in 2014-15 compared to previous year as follows: (Figures in Million Tonnes) Mode of Despatch 2014-15 2013-14 Rail 25.538 24.598 Road 1.639 1.936 Merry-Go-Round(MGR) 11.043 9.444 Total 38.220 35.978

5.4. Stock of Coal as on 31st March 2015 is as follows : (Figures in lakh Tonnes) Field As on 31.3.15

Raniganj 14.1996 Mugma/Salanpur 2.9417 S.P. Mines 2.7250 Rajmahal 14.6465 Total 34.5128

5.5. Spot 'e' auction : 2014-15 2013-14

Mode Despatched Gain over % age Despatched Gain over % age Qty. notified Gain Qty. notified Gain (in lakh price (in lakh price tonne) (` in Cr.) tonne) (` in Cr.)

Rail 6.12 35.11 19.93 23.22 59.71 9.35 Road 12.77 263.83 60.70 15.82 164.69 30.80 Total 18.89 298.94 48.94 39.04 224.40 19.13

5.6. Sales Realisation : (` in Crore )

Particulars 2014-15 2013-14

Sales Realisation 14015.75 14108.85

5.7 Major achievements during 2014-15 : a. During 2014-15, ECL is the only subsidiary in CIL which has achieved the offtake target as per Annual Action Plan (AAP). ECL has achieved 101% of the offtake target. b. After the introduction of Cash and Carry system, the outstanding dues of various power houses have

reduced to ` 1385.64 crore from ` 1877.97 crore in last year..

15 ANNUAL REPORT 2014-15

6.0 POPULATION OF EQUIPMENT (HEMM) : 6.1 Population of Equipment as on 31st March 2015 compared to 31st March 2014 and major repair / rehabilitation done during 2014-15 is as follows :

No. of Equipment Repair / Rehabilitation of Equipment as on equipment during 2014-15 31.03.2015 31.03.2014 Target Achievement

Dragline 1 1 ------Dumper 270 232 ------Dozer 87 87 ------Shovel 62 71 ------Drill 47 48 1 1

6.2 Percentage availability & utilisation of each type of equipment against CMPDIL norms during the year 2014-15 compared to previous year is as follows :

Equip- ment CMPDIL 2013-14 CMPDIL 2013-14 Norms 2014-15 Norms 2014-15 Dragline 85 94.16 91.98 2.18 73 89.70 87.09 2.61 Dumper 67 78.12 72.10 6.02 50 37.11 38.21 –1.10 Dozer 70 69.45 69.45 --- 45 28.28 27.27 1.01 Shovel 80 79.04 75.49 3.55 58 49.89 45.40 4.49 Drill 78 82.26 79.27 2.99 40 30.94 30.35 0.59

The %age availability of Dragline, Dumper and Drill is more than CMPDIL norms. The %age availability of shovel and dozer is almost close to CMPDIL norms and more than or equal to last year same period availability. The %age utilisation of Dragline is more than CMPDIL norms. The %age utilisation of Shovel, Dozer and Drill is more than last year same period. The %age utilisation of dumper has suffered mainly due to land problem and shortage of dumper operators in many projects.

Steps taken to achieve CMPDIL norms of Dumper Utilisation:

· Action has been taken to induct Dumper Operator (Trainee) from internal source to improve the utilisation of dumper.

· Reviews of HEMM performance of projects are being done at regular intervals and 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 2014-15 is as under :

Equipment Nos. Project

Dumper 58 Sonepur Bazari-1, Shankerpur-5, Rajmahal-6, Mohanpur-5, Khottadih-15, Jambad-12, Dabor-3, Chitra-5, Bonjemehari-2, Baramuri-4. Dozer 9 Chitra-1, Gopinathpur-2, Jambad-2, Khottadih-1, Rajmahal-3. Shovel 3 Chitra-2, Shankarpur-1.

7.0 ENERGY CONSERVATION :

7.1.1 POWER AND FUEL CONSUMPTION Sl. No. Particulars Unit 2014-15 2013-14 I. ELECTRICITY PURCHASED a) Purchased Units M.KWH 846.31 836.38 b) Total amount paid to the supply agencies (Approx) ` in crore 601.47 579.90 c) Rate/Unit (Average) ` / KWH 7.11 6.93 d) Specific Consumption of Electricity(Composite) (Appro.) KWH/Cum 7.01 7.62

II. OWN GENERATION (Through DG Sets) :

a) Generated Units Lakh KWH 6.22 6.63 b) Unit generated per Ltr. of Diesel Oil KWH/Ltr. 5.85 6.23 c) Cost of Generation ` / KWH 8.94 10.30

III. AVAILABILITY OF POWER: a) Average availability of power MVA 170.83 167.18 b) Power Demand MVA 178.77 181.27 c) % Availability % 95.56 92.23

7.1.2 Progress of Power Generation from Chinakuri Power Plant: Lease of Chinakuri Power Plant expired on 31.03.2012. Fresh tender has been opened on 25.04.2014 and it is in the final stage. There is no captive power generation during 2014-15.

7.2 Energy Conservation & Audit: CMPDIL is empanelled as an accredited energy auditor by Govt. of West Bengal. In 2014-15, Energy Audit has been conducted at Khas Kajora Colliery, Bankola UG Colliery, Khas Kenda, New Kenda and East Nimcha Colliery. Draft report of Khas Kajora and Bankola UG mines has been submitted by CMPDIL in July, 2014. Energy Audit at Sonepur Bazari OCP has been conducted by an External Agency, M/s State Productivity Council and report has been submitted in June-2014. Energy cost per tonne of coal production in 2014-15 was ` 150.76 as compared to ` 160.88 in 2013-14.

17 ANNUAL REPORT 2014-15

7.3 Underground Machinery Performance: The detail of Underground Machineries with productivity is given below:

2014-15 2013-14 Remarks Equipment On Productivity Productivity Roll (TPD) (TPD) SDL 215 61 60 LHD 27 102 91 Road Header 1 73 79 The Road Header machine (UK - DOSCO) was commissioned in 1984. This model is obsolete and spares are readily available. Continous 3 1491 1498 During 2014- 15, CM has Miner produced 1397083 Tonnes of coal in comparison to 1072860 Tonnes of coal in 2013-14 registering a growth of 30.22%.

7.4 Performance of CHPs: As on 31st March 2015, Company was operating 6 Nos. of major CHPs and 5 Nos. of Mini CHPs. Upto March 2015, the Major CHPs handled 18.99 MT and Mini CHPs handled 0.309 MT of Coal.

7.5 MoU Activities :

Sl. Performance Measurement Target for Achievements No. Indicator Unit the year 1 Commissioning of Expansion CHP at Jhanjra Month Feb. 2015 Time extension sought which is under process for approval. 2 Installation of CCTV based Surveillance No.of Cameras 8 Achieved.10 system on Road Weighbridges Installed 3 Placement of supply order of free steered Month Feb. 2015 Achieved. Purchase vehicles for Man riding at Jhanjra project order issued on 13.01.2015. 4 Procurement of Chair-Lift system for No. of Mines 1 Achieved Underground mines 5 Award of work of Benchmarking of energy conservation in any one of the collieries through an external agency- a. Specific Power/ Electrical Energy Month March, Achieved. Work done consumption 2015 and report submitted on 23.02.2015 b. Specific Diesel consumption Month March, Achieved. 2015 Work order issued on 24.01.2015.

18 EASTERN COALFIELDS LIMITED

8.0 WELFARE AMENITIES :

Sl. PARTICULARS Cumulative Achievement Cumulative No. position as during position as on 31.3.2014 2014-15 on 31.3.2015 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 1 27 3. Canteens 82 0 82 4. Educational Facilities a) DAV School 04 2 06 b.i) No. of Schools receiving recurring Grant - in - aid 162 0 162 b.ii) Amount of Recurring grant-in-Aid (` in lakh) 4159.89 373.92 4533.81 c.i) No. of Schools receiving Non-Recurring Grant-in-aid 387 00 387 c.ii) Amount of Non-Recurring grant-in-aid (` in lakh) 288.21 15 303.21 d.i) No. of schools sanctioned ad-hoc grant 79 0 79 d.ii) Amount of ad-hoc grant sanctioned (` in lakh) 69.60 0 69.60 e) No. of School buses engaged 156 0 156 5. Games & Sports amount spent (` in lakh) 379.91 17.47 397.38 6. Social & Cultural activities, amount spent (` in lakh) 70.25 2.31 72.56 7. CIL Scholarship a) No. of Scholarship and Cash awarded 14492 922 15414 b) Amount sanctioned (` in lakh) 173.37 19.12 192.49 8. 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 232 80 312 b) Amount sanctioned (` in lakh) 41.72 20.69 62.41 9.0 MEDICAL AMENITIES: 9.1 2 Central Hospitals, 11 Area Hospitals with total bed capacity of 1032 and 115 Dispensaries extended medical services to the employees and their dependants. 113 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 under CSR. 9.2 No. of persons referred to outside for treatment & expenditure incurred for their treatment and Villagers covered by Mobile Dispensary:

Particulars 2014-15 2013-14 No. of patients referred outside: 1372 1329 Expenditure incurred for their treatment (in ` crore) 10.83 12.80 Health & family welfare programme: - No of camps 24 18 - No of beneficiaries 2092 685 Villagers covered by Mobile Dispensary: - No of camps 1007 544 - No of beneficiaries 47090 30969

19 ANNUAL REPORT 2014-15

In addition to above, 125 Nos. of differently abled persons were supplied with medical appliances. The company also incurred a medical expenditure of ` 2.44 crore on the retired executives under the CPRMSE scheme of Coal India Limited. During the year 2014-15 an amount of ` 2.95 crore were used for medicine procurement.

9.3 Major Achievements during 2014-15 : a. Opening of Nursing Training School at Central Hospital, Kalla. b. The renovation work of Dialysis unit of Central Hospital Kalla is in process. c. Installation of Colposcopy for early detection of Cancer Cervix at Central Hospital Kalla and Sanctoria Hospital. d. BPL card holders are given free OPD treatment at our hospital. e. ENDO-UROLOGY surgery started at Sanctoria Hospital.

10.0 CORPORATE SOCIAL RESPONSIBILITY: Report on Corporate Social Responsibility pursuant to Section 135(2) of Companies Act, 2013 is presented in a separate section forming part of the Director’s Report (ANNEXURE-V). The MoU activities relating to CSR is given as below:

Sl. Performance Measurement Target for Achievements No. Indicator Unit the year 1 Providing Multi Skill Development centre at Month 25th March Achieved. Training Kenda Area 2015 centre functioning from 25.02.2015. 2 Laying of pipeline from Ajoy river to Khottadih Month 25th March Achieved. Work village for supply of drinking water to villagers 2015 completed on at 01.03.2015

10.1 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. Brief description is as below:-

10.1.1 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. Additionally, under Block Repairing concept, thorough repairing of complete blocks of residential quarters is being

taken up. During 2014-15 a budget of ` 19.88 crore was provided for block repairing and about 4141 quarters were thoroughly repaired under this programme.

10.1.2 Welfare Buildings: For the welfare of the workmen, there is tremendous improvement in the assets since nationalization, details as below- a) Hospitals- 13 b) Dispensaries- 115 c) Canteens- 82 d) Rest Shelters- 137 e) Multipurpose Institutes- 12 f) Adult Education Centers- 03 g) Community Centers – 54 20 EASTERN COALFIELDS LIMITED

10.1.3 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. In the year 2014-15, 7 nos. of pressure filter and electro chlorinators were commissioned.

11.0 INFRASTRUCTURE DEVELOPMENT : 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. Brief description of works is as below:- a. Roads- During the year 06 nos. of works for strengthening of coal transportation roads for a total

length of 14.58 Km. (approx.) were completed in different Areas at a cost of ` 831.19 lakh.

Additionally, during the year 2014-15, 13 nos. of works related to strengthening, widening and construction of 46.57 km coal transportation road for total values of ` 3163.77 lakh were awarded.

b. Railway Siding, Wharf Wall etc.

Sl. No. Name of Work Work Order Present Value (` in lakh) Status 1 Construction of new railway siding to serve Sonepur Bazari Project. (Project cost ` 108.15 crore). 5940.00

2. Construction of wharf wall at Kumardihi B railway siding at Purushottampur under Kumardihi B Colliery, . 155.93

3. Construction of wharf wall at Siding no. 1 & 2 of Bankola Colliery, Bankola Area. 155.03 Work in Progress 4. Construction of wharf wall and drain along railway siding at ROCP. 359.83

5. Construction of concrete wharf wall R.C.C. boundary wall, R.C.C. culvert, Pucca drain and earth filling in platform (including yard) at Dalurband- Pandaweshwar Railway Siding at Dalurband Colliery, Pandaveswar Area. 116.70

6. Construction of RCC wharf wall at J.K. Nagar Railway Siding, . 172.75

c. Other works: ECL is also providing funds to State Govt. and other District Board Authorities for maintaining and upgrading State/District Board roads which are being used for transportation of coal from mine to siding/coal depot. Details of roads completed during the year 2014-15 are as below –

21 ANNUAL REPORT 2014-15

Sl. No. Name of Work Contribution by Present ECL (` in lakh) Status 1. Improvement of Ukhra Haripur Road from 1.80 Km. to 238.03 Work Completed. 5.00 Km. (in a stretch 2.6 Km.) under Asansol Division, Work executed by PWD, Asansol. PWD, Asansol.

2. Strengthening of road from Ranishire More to Nimcha 100.00 Work Completed. Work executed by Cabin a stretch of road from Ranishire More to Burns PWD, Asansol- Club passing under rail over bridge at Nimcha Devel- connecting to Mejia Road. opment Authority.

12.0 SAFETY: 12.1 Accident Statistics for the year of 2014-15

YEAR 2014-15* 2013-14 i) Fatal Accidents (Nos.) 4 11 ii) Fatalities (Nos.) 4 11 iii) Serious Injuries (Nos.) 73 62 iv) Fatality / Million tonne output 0.10 0.305 v) Fatality / 3 Lakh Man-shifts 0.073 0.195

(* subject to reconciliation with DGMS) 12.2 Safety Measures Jobs undertaken by ISO for enhancing safety in Mines of ECL a. Safety Board 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. b. To conduct Special Meeting of Safety Committee after the accident and implementation of the recommendation of Special Safety Committee. c. Enquiring into accidents in order to know the root causes and taking corrective measures. 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. 30 minutes duration SCCR have been procured for UG mines workers for use in any emergency in UG. g. 45 numbers SCBA of positive pressure type procured for Mines Rescue Station, Sitarampur. h. Internal safety audit have been done by Inter Area Team by senior officers from various disciplines. i. Annual Mines Safety week 2015 held from 16.02.2015 to 21.02.2015. j. Monitoring of methane and carbon monoxide for Degree-III gassy mines. k. Regular family counselling is being done for safety awareness amongst family members of employees. l. 90% of working districts in underground mines have been converted to mechanised districts as per the recommendation of 10th conference on safety. m. Quality of materials and their supply in mines has been ensured. n. Strata Control Monitoring Cell has been established in ECL HQ 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.

22 EASTERN COALFIELDS LIMITED

o. Safe Operating Procedures in respect of Mining and allied activities and operation of Mining Machinery/ HEMM have been made and distributed to concerned workers. p. Efforts are being taken to prevent generation of dust at sources. q. Preparation and implementation of Risk Assessment based on Safety Management Plan (SMP) has been completed. r. Training for contractors’ workers is being regularly done along with IME.

12.3 Safety Monitoring Agencies in ECL: Apart from statutory monitoring by DGMS, the status of safety is being monitored at various levels by the following agencies:

Level Monitored by Mine level 1. Workman inspectors: as per Mines Rule-1955. 2. Safety committee: constituted as per Mines Rule-1955 Area level 1. Bipartite/Tripartite committee meeting 2. Safety officers’ Coordination Meeting HQ level 1. Bipartite/Tripartite committee meeting at HQ level 2. Area Safety Officers’ Coordination Meeting 3. Inspection by ISO officials.

No. of roof bolts consumed in various years are as under: (No. in Lakhs) Consumption 2014-15 2013-14 Roof bolts 10.81 9.30 Cement capsules 34.38 34.16

12.4 Safety Audit Internal Safety Audit has been done. We are in the process of conducting Safety Audit by external agencies as recommended by DGMS.

12.5 Monsoon preparation A Control Room was opened at Head Quarter, ECL from 10.06.2014 to 15.10.2014 on 24 X 7 basis which was manned by Executives for 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’. 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’ for alerting the Areas to be affected by heavy Rain/ Thunder/ Shower.

12.6 Safety Training Two Weeks Structured Training for Front line supervisors Workmen’s Inspector Year No. of No. of No. of No. of Programme Participant Programme Participant

2014-15 4 112 3 38 2013-14 4 96 3 41

23 ANNUAL REPORT 2014-15

12.7 Training for appearing in Statutory Exams:

Type of Exam No. of employees trained Training Institute A. For appearing in 1st Class - Coal 8 2nd class - Coal 8 Mining Sirdar 61 MTS , Dhadka Surveyor 6 Electrical Supervisor 23 Winding Engine driver 30 MTI, Ratibatti Gas Testing 23 MTS, Dhadka B. Trade Course Surveyor 28 Mining Sirdar 50 MTS , Dhadka Electrician 30 C. Diploma in Mining (Part time) 163 Raniganj Mining Institute

12.8 Vocational training (Statutory at VTC) 2014-15.

Type of Training 2014-15 2013-14 Basic 869 1313 Refresher 10010 9672 Spl. Training 6707 5653 I.O.D. 99 121 Contractors Workers 2305 3833

12.9. RESCUE SERVICES IN ECL: Rescue Services have been rendered to all collieries of ECL, Chanch Victoria Area of BCCL, Ramnagar Colliery of IISCO as well as to Civil Administration and Public Authorities (as and when required) through Mines Rescue Station, Sitarampur, Rescue Room with Refresher Training (RRRT) Kenda and Rescue Rooms operating at Jhanjra, Mugma & Kalidaspur.

12.9.1 During the year Rescue Services dealt fire/spontaneous heating in the following mines successfully.

Sl. Colliery / Place Area Date Nature of occurrence No. Occurance From To 1. Pandaveswar Pandaveswar 19.05.14 21.05.14 Dealing of spontaneous eating in old working. 2. Lakhimata Mugma 23.07.14 24.07.14 Sealing of foul area.

24 EASTERN COALFIELDS LIMITED

3. Mandman Mugma 13.08.14 11.10.14 Controlling of heating and fire in underground. 4. Jhanjra Jhanjra 04.10.14 18.10.14 Dealing of spontaneous heating and fire. 5. Mahabir OCP Kunustoria 19.02.15 07.03.15 Dealing with coal bench fire. 6. Near Sripur Sripur 03.05.2014 Rescued 6 persons Village entrapped in an illegal pit. 7. Igra Village Satgram 04.07.2014 Rescued 3 persons who were gas affected during digging well. 8. New Kenda Kenda 06.08.2014 Recovery of a dead body from 3 pit New Kenda colliery.

12.9.2 TRAINING :

Refresher as well as initial training was imparted at Mines Rescue Station regularly, details are as follows:

Details 2014-15 2013-14

No. of Rescue personnel trained 668 676

No. of personnel freshly trained 23 26

No. of Refresher practices 8392 6040

No. of Emergencies 9 13

12.9.3 New apparatus/equipment purchased: 45 numbers of SCBA (BIO PAK 240R) and 2 numbers of dummy body MANIKIN (67 kg) were purchased. One Motorized Tread Mill for the use in testing of SCSR was also purchased during the year. 12.9.4 Zonal Mines Rescue Competition : Zonal Mines Rescue Competition, Eastern Zone, for the year 2014-15 was held on 31st October, 2014 in which 12 (twelve) Nos. Rescue teams took part.

12.9.5 All India Mines Rescue Competition (Coal & Metal) : 45th All India Mines Rescue Competition (Coal & Metal) was conducted at Mines Rescue Station, Ramgarh (CCL) from 14th to 17th January, 2015. Two teams from ECL took part in the competition.

12.9.6 Budget Provision for Mines Rescue Station : (` in Lakhs) Capital Budget Revenue Budget Particulars 2014-15 2013-14 2014-15 2013-14 Sanctioned 576.26 6.10 1639.17 1614.05 Expenditure 325.98 5.86 1491.43 1460.67

25 ANNUAL REPORT 2014-15

12.10 MoU Activities :

Measurement Sl. Performance Target for Achievements No. Indicator Unit the year Reduction in Fatality Rate per Achieved. 67.21 1 % reduction 4 million tonne of coal production w.r.t previous year

Reduction in Serious Injury Not Achieved, -6.047. 2 % reduction 4 Rate per million tonne of coal production w.r.t previous year

Preparation of risk Achieved. Plan has been prepared 3 No. of Mines 25 assessment based Safety for 30 mines. Management Plan

13.0 QUALITY CONTROL:

13.1 Weighment Status: In 2014-15, quantity weighed in EPS for supplies account Power houses & others compared to last year is given below:

2014-15 2013-14 Details Power Other Total Power Other Total Consumers Consumers Qnty. Despatched (in L/T) 351.02 31.17 382.19 310.52 48.84 359.36 Qnty. Weighed under EPS (in L/T) 346.02 31.17 377.24 307.25 48.67 355.92 Weighment % under EPS 98.59 100.00 98.70 98.95 99.65 99.04

13.2 Sizing Status The total despatch of coal in 2014-15 was 382.19 Lakh Tonne of which the despatch to the power sector was 351.02 Lakh Tonne. In despatches from sidings other than CHP/FB facility, sizing was done by dozer and thus 100% mechanically crushed coal was supplied to power stations. There have been 100% sized coal dispatches through alternative methods. The details are given below.

Sizing of Coal 2014-15 2013-14 Power Others Total Power Others Total Qnty. Sized in CHP/ FB (L/T) 294.30 17.49 312.01 269.31 31.61 300.92 % 83.84 56.11 81.58 86.73 64.72 83.74 DZR/MNL 56.72 13.68 70.40 41.21 17.23 58.44 % 16.16 43.89 18.42 13.27 35.28 16.26 Total 100.00 100.00 100.00 100.00 100.00 100.00

26 EASTERN COALFIELDS LIMITED

13.3 MoU Activities :

Measurement Sl. Performance Target for Achievements No. Indicator Unit the year 1 Despatch of Sized Coal to Power Sector by % 85 84 Rail through CHP/Feeder Breaker/UG Coal. 2 Despatch covered under agreed sampling/ % 98 100 analysis to power sector. 3 Weighed on electronic weighbridges before % 96 98.7 despatch. 4 Creation of a portal in company’s website for Month May '14 Achieved in online submission of grievances by consumers April '14 5 Redressal of grievances received online % 90 100

14.0 VIGILANCE ACTIVITIES Considering its critical role in ensuring a transparent, fair and efficient functioning of the organization, the vigilance activities have been truly integrated with the management functions in ECL. The path-breaking initiatives taken last year to instill a sense of confidence among various stakeholders, resulting in significant improvement in efficiency, have been taken a step further this year. Frequent surprise inspections have been conducted and intensive examination of a large number of cases was undertaken laying emphasis on system improvement measures. Preventive vigilance, however, has continued to be the focus resulting in significant savings for the company through control of leakages and pilferages in the system. Awareness- cum-motivation programmes, conducted by Vigilance department for various stakeholders have yielded rich dividends for the company. Besides, the initiatives taken by Vigilance department for leveraging technology through introduction of e-procurement, e-payment, discount bidding, CCTV, toll-free helpline for lodging complaints, Biometric attendance etc. have added immense value to the performance of the organization.

14.1 Preventive Vigilance: The number of surprise checks conducted by the Vigilance department has covered almost entire gamut of activities of the Company. Besides, vigilance awareness-cum-motivation programmes were organized on a large scale for various stakeholders covering over one thousand beneficiaries. These efforts have had a salutary effect on the work-culture of the organization resulting in all-round improved performance.

Sl. No. Subject No. 1 Surprise Checks/Inspections conducted 50 2 Vigilance awareness cum motivational programmes organized: a) Awareness Programmes with internal faculties 18 b) Stake Holders Meet 1 c) Competitions Essay/Painting etc. 5 d) Seminar/Workshop with external faculties 23

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14.2 Measures taken for improvement: During the year 2014-15, the following systemic improvement measures were undertaken: a) One System improvement in respect of procurement of provisions and upkeep/ maintenance at Kalla Central Hospital. b) Comprehensive guidelines have been issued as a System improvement in respect of execution of Transfer Orders of employees to curb malpractices. c) System improvement measures have been taken in respect of payment to the Land Losers for acquisition of land by ECL through e-mode only (i.e. NEFT/RTGS). 14.3 Punitive Vigilance: Instances of irregularities, found to be committed willfully with mala-fide intention, have been dealt with firmly and exemplary punitive measures were taken as prescribed under the relevant Conduct Rules. 11 Persons were awarded various penalties. 14.4 Leveraging Technology: Several initiatives have been taken by the Vigilance department towards leveraging technology for improving transparency and efficiency of the organization. E-Tendering has become fully operational and in 2014-15, a total of 1015 tenders floated out of which 578 tenders were awarded and 379 are under finalization. The average cycle period of completion of tender process has been reduced to 95.53 days and the minimum completion period was only 23 days in the current year. It automatically translates into not only tremendous savings but also reputation and goodwill for the company. Introduction of discount bidding has helped in considerable cost-cutting in almost all bids. E-payment has been made mandatory which has helped eliminate the essential human interface used to brew and support corrupt practices. The e-governance initiatives have made the processes transparent, people-friendly and also reduced the paper work and associated drudgery to a large extent. Launch of a toll-free helpline by the Vigilance department has been welcomed by all for getting easy access to ventilate their issues/complaints/grievances. 14.5 Implementation of Integrity Pact Programme :

Integrity Pact has been duly implemented in ECL. The threshold limit is fixed at ` 2 crores. Two numbers of Independent External Monitors have been appointed during the current year to ensure the implementation of Integrity Pact in the concerned contracts. 14.6 Observance of Vigilance Awareness Week: Vigilance Awareness Week was observed in ECL from 27th October, 2014 to 1st November, 2014 as per directives of Central Vigilance Commission. A pledge was administered on 27.10.2014 in all establishments of ECL to bring about integrity and transparency in various spheres of activities and also to work unstintingly for eradication of corruption. Several awareness programmes like seminar, workshop, Stakeholders’ Meet etc were organized in the Headquarter as well as various Areas/Units to enlighten and spread the message of integrity amongst the stakeholders. There was a mammoth participation of about 600 students in the competitive events organized during the week. The next issue of vigilance magazine of ECL, namely ‘Sachetana’ was also published.

28 EASTERN COALFIELDS LIMITED

14.7 Important Achievements: a) Integrating the vigilance functioning with the management functioning, there has been a significant morale- boosting of employees and other stakeholders through regular interactions in awareness-cum-motivation programmes. It has resulted in increase in production and productivity significantly.

b) Regular monitoring has helped in controlling over-reporting of production and recovery of large quantum of penalties. c) Introduction of several IT-initiatives has been instrumental in enhancing transparency as well as efficiency. 15.0 PARTICULARS OF EMPLOYEES: None of the employees received remuneration in excess of limits prescribed under Rule 5 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 under Chapter XIII of the Companies Act, 2013. 16.0 OFFICIAL LANGUAGE IMPLEMENTATION: ECL’s HQ and its 11 Areas are situated in ‘C’ region (West Bengal) where 86% employees are posted. Only 3 Areas are situated in ‘A’ region (Jharkhand). During the period under review, the following steps have been taken to implement Official Language in our company: a. 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. b. The rule of writing the subject of the files in Hindi & English on the covers has been fully implemented.

c. The certificates being given as memento to the retired employees containing their name, designation length of service etc. were given in Hindi. d. The officers of each department were trained to work 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. e. The names of all the officers and employees are written in Hindi and English in all the attendance registers of all departments. Maximum number of employees put their signatures either in Hindi or in their mother language. f. During 2014-15, Hindi correspondence has been recorded as 68.60% in Region ‘A’, 66.20% in Region ‘B’ and 57.65% in Region ‘C’. g. During 2014-15, Hindi Pakhwara was organized from 1st September, 2014 to 14th September, 2014 in which Hindi Essay-writing competition, Hindi Speech competition and Hindi Debate competition were organized for Hindi-speaking and Non-Hindi-speaking employees separately in which 49 competitors participated and all of them were awarded with various prizes along with certificates. h. Along with HQ, Hindi Pakhwara was organized in all the areas of ECL. i. A Hindi Kavi Sammelan was organized on 28th March, 2015 in which the poets of all India level addressed the audience.

29 ANNUAL REPORT 2014-15

j. In the high level Hindi workshop on the topic “RAJBHASHA SAMBANDHI SAMWAIDHANIK PRAWADHAN” ON 29.12.2014 organized by Town Official Language Implementation Committee (TOLIC) ECL parted a proactive role. Before this, our company had played an important role in Town Official Language Implementation Committee (TOLIC) meeting on 21.11.2014. k. During 2014-15, seven workshops were organized out of which one high level Hindi Workshop was organized on 27.05.2014 for the CGMs, GMs and all HODs of HQ. Dr. B. N. Pandey, Dy. Director, Regional Implementation Office, Kolkata under the Ministry of Home Affairs, Govt. of India addressed the workshop. l. President of India honoured ECL for excellent performance in Implementation of Official Language during 2013-14 in ECL. This award is highly recognised as the best achievement in the field of Official Language Implementation. The President of India handed over a silver shield as 2nd prize. ECL is the alone recipient of this award of 2013-14 in any Subsidiary of CIL as well as O.L.I Office, Eastern Zone. m. The publication of a Wall Poster “ECL SAMACHAR” in Hindi is still continuing and its 11 (Eleven) issues have been published till January, 2015 in which different news of ECL & achievements of the employees etc. along with photographs were published.

n. Apart from it, three annual magazines named “Chetna” from Sanctoria Hospital, “Sachetna” from Vigilance Deptt & “Jagriti” from WIPS ECL Branch were released in which articles in Hindi were also included & published. 17.0 BIFR & BRPSE STATUS:

The networth of the Company became negative as on 31st March, 1999 and the Company was referred to BIFR in November, 1999. The Company’s case was registered as case no. 501/2000. BIFR sanctioned the Draft Rehabilitation Scheme in November, 2004 for implementation. As per the scheme, the networth of the Company was slated to become positive in 2008-09 with concessions from CIL. The Cabinet Committee on Economic Affairs had also approved the BRPSE recommended Revival Plan of ECL on 6th October, 2006. As per this Scheme, the networth of the Company was slated to become positive in 2009-10. BIFR in its hearing held on 22.09.2014 gave the following directions:

a. the Monitoring Agency (SBI) clarify to the company about the procedure of implementation of the unimplemented part of the scheme and its treatment in the Balance Sheet regarding waiver of unsecured loan and conversion of current account balance into equity share capital. b. SBI (MA) to submit a report that the implementation of the sanctioned scheme is in consistent in the manner it was sanctioned. State Bank of India vide its letter dated 1st November, 2014 to ECL proposed modification of terms of relief and concession from CIL from “Waiver of unsecured loan of ` 519 crore and conversion of Current Account Balance of ` 1532 crore as on 31st March, 2003 into Equity Share Capital” to “issue of non-convertible, redeemable, cumulative preference shares for an aggregate value of ` 2051 crore to CIL by ECL in full satisfaction of Unsecured Loan and Current Account Balance as on 31st March, 2003”.

30 EASTERN COALFIELDS LIMITED

Coal India Limited (the Holding company) in its 310th Board Meeting held on 8th November, 2014 has

approved to convert unsecured loan of ` 519 crore and current account balance of ` 1532 crore as on 31st March, 2003 of ECL with CIL aggregating to ` 2051 crore to issue fully paid 6% non-convertible, cumulative, redeemable Preference Shares of face value ` 1000/- each to CIL. Accordingly in terms of to Article-15 of the Articles of Association of the Company, with the approval of shareholders, ECL Board has issued 2,05,09,700 6% Non-convertible, redeemable, cumulative Preference Shares ` 1000/- each to Coal India Limited for their consideration. As per accounts of the company for the period ending 31st December, 2014, the company has reported a positive networth of ` 916.87 crore. BRPSE reviewed the case of ECL in its meeting held on 30.01.2015. In the BIFR hearing held on 11.02.2015, the Bench issued the following order: “The sick company, M/s Eastern Coalfields Ltd. (BIFR Case No.501/2000) ceases to be a sick industrial company, within the meaning of Section 3(1) (o) of SICA, as its networth has turned positive.” 18.0 COMPUTERISATION & I.T. ENABLED SERVICES:

18.1 Activities of e-Tendering Cell in ECL :

a. By 31.03.2015, a total of 1015 tenders amounting to ` 4893.03 Crore were published on ECL e-Tendering portal i.e. https://ecltenders.gov.in out of which a total of 578 tenders were finalized and the rest are at different stages of finalization. b. Awareness/Training on e-Tendering has been given to 371 bidders in e-Procurement Cell at HQ. c. e-Tendering Cell imparted in-house & remote training/assistance to officers using different modern software tools like Gtalk, Team Viewer, Ammay also over telephone pertaining to processes involved in e-Tendering. In this regard, a total of 585 officers of ECL including HQ and Areas has been given instant techncial assistance/training. d. Digital Signature Certificates (DSC) have been arranged for 20 officers of different areas and workshops inclding HQ in FY 2014-15 and total for 266 officers since launching. e. e-Tendering Cell generates MIS Reports regarding status of e-Tendering and provides to concerned departments including Vigilance Deptt., on weekly as well as on monthly basis. f. e-Procurement Cell is providing guidance as and when required to Departmental users of Areas of ECL regarding preparation of pre-requisite tender documents like Notice Inviting Tenders (e-NIT), Bill of Quantities (BOQ), Letter of Bid (LOB) and Terms and Conditions of the tenders which are scheduled to be floated at Area level. 18.2 Special Achievements:

a. Online MMS application is implemented in all area except Kajora where stores connectivity will be established within 3 month then MMS will be implemented. b. Job for LAN connectivity in all areas of ECL have been assigned to M/s ECIL. c. Trial run for GPS/GPRS based Coal Truck monitoring had been successfully completed in on 18.09.2014 and work order issued for implementing it in all area of ECL.

31 ANNUAL REPORT 2014-15

d. Web based File Tracking system has been tested successfully in HQ for implementation. e. e-Tendering solution for ‘Works & Services’ tenders has been rolled out in all areas of ECL.

f. Average cycle period of completion of tender through e-Tendering portal is reduced to 76 days in 2014 which is almost at par with bid validity period of 75 days. Even, one tender pertaining to Pandaveswar Area has been finalized within 18 days out of which 10 days were earmarked for publication purpose. g. Government e-Procurement of National Informatics Centre (GePNIC) software deployed at e-Tendering portal of ECL i.e. https://ecltenders.gov.in has been tested and audited by STQC and found to be complaint with all the applicable requirements relating to functionality, security and transparency. h. YoY growth of e-Tendering portal of ECL w.r.t. tenders published & tenders finalized is recorded as 150% and 425%, respectively from FY 2013-14 to FY 2014-15. More competition has generated resulting in finalization of tenders in a transparent manner and at a competitive price leading to saving of significant amount. 19.0 ELECTRONICS & TELECOMMUNICATION : In order to keep pace with advancement of communication and information technology the following has been achieved in 2014-15: a. Underground Communication: 4 Auto manual underground communication systems with 15 lines have been installed at Kajora Area. b. WAN: Steps has been taken for introduction of Secondary Network Connectivity between HQ/Area Computer Centers/Weighbridges of 96 locations of ECL. 20.0 LAND ACQUISITION & LAND INFORMATION STATUS: 20.1 Status of Land Acquisition: The status of land acquisition/possession under different modes for the year 2014-15 is given below:

Mode of Acquisition Acquired (in Ha) Possession (in Ha) Direct Purchase of Tenancy land 118.03 118.03

CBA Act 92.67 238.81 Transfer of Govt. Land 12.01 12.01 Total 222.71 368.85

Following Government Land for the mines/project of ECL has been approved by the State Govt. after the meeting held on 13th November, 2014 with the Chief Secretary, Govt. of West Bengal under the Chairmanship of Secretary (Coal) Ministry of Coal, Govt. of India: 1. Transfer of 106.73 acres of Govt. vested land at Mouza Kendra-Khottadih and Bilpahari in respect of Khottadih Project and to reduce the demand from ` 272,18,13,065/- to ` 36,32,64,738/- has been approved by the State Govt. on 17th Feb. 2015. 2. Transfer of 15.57 acre of Govt. Land at Mallick Basti, Satgram Area, Mouza Nimcha-Approved by the Govt. of West Bengal and demanded ` 4,36,02,929/- which has been paid by ECL.

32 EASTERN COALFIELDS LIMITED

3. Transfer of 14.02 acre of Govt. Land at , Mouza Egra- Approved by the Govt. of West Bengal and demand of ` 7,61,00,000/- has been paid by ECL. 4. Transfer of 14.11 acre of Govt. Land at Kalipahari OCP, , Mouza Kalipahari- Approved by the Govt. of West Bengal and demand of ` 11,42,62,946/- has been paid by ECL. 5. Transfer of 22.05 acre of Govt. Land at Narainkuri OCP, Kunustoria Area, Mouza Egra & Narainkuri- Approved by the Govt. of West Bengal and demand of ` 11,42,62,946/- has been paid. 6. Transfer of 23.61 acre of Govt. Land at Dabor Phase-III OCP- Approved by the Govt. of West Bengal and demand of ` 7,31,73,170/- has been paid by ECL.

20.2 Progress under CBA (A& D) Act 1957:

Sl. Name of the Project Status No. 1 Lohandiha-92.67 Ha Application for Notification u/s 11(i) done on 07.04.2014

2 Lalmatia Ph IXRajmahal- Notification u/s 4(i) done on 10.12.2014. Application for draft Notification 4.047 Ha is under process.

3 Lalmatia Ph XRajmahal- Application for Notification u/s 4(i) sent to MOC on 13.10.2014. MOC 13.79 Ha sent for publication of Notification u/s 4(i) on 13.01.2015.

4 Lalmatia Ph XIRajmahal- Application for Notification u/s 4(i) sent to MOC on 13.03.2015. 2.99 Ha

5 Simlong Ph IIRajmahal- Notification u/s 7(i) done on 09.07.2014. Notification u/s 9(i) done on 249.70 Ha 05.02.2015. Application for Notification u/s 11(i) done on 26.02.2015

20.3 Status of Rehabilitation: During the year 2014-15 following action has been taken in respect of Rehabilitation

Name of Area Plots Given Monetary Total PAPs/Household for Compensation which R&R benefits given Sonepur Bazari 225 113 338 Salanpur 0 17 17 Rajmahal * 745 14 759 Total 970 144 1114

* Actual shifting has not yet been done so far. Constructions of new houses are going on.

20.4 Status of Mining lease of Sand: Temporary working permit for extraction of sand for stowing purpose for the period of 01.04.2014 to 30.09.2014 and from 01.10.2014 to 31.3.2015 has been obtained from the Jt. Secretary, Government of West Bengal, C&I Dept., Kolkata on 10.04.2014 and on 29.09.2014 respectively.

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20.5 MoU Activities :

Sl. Performance Measurement Target for Achievements No. Indicator Unit the year 1 Acquisition of land - issue of Month Feb, 2015 Notification u/s 9(i) for 249.701 Ha Notification u/s 9(i) for 249 Ha has been done in Feb-15 land 2 Acquisition of land - issue of Month Feb, 2015 Notification u/s 11 for 92.67 Ha land Notification u/s 11(i) for 92 Ha done in April-14. land 3 Possession of 150 Ha Land Month Feb, 2015 Land Possessed- 176.37 Ha. within 31st Jan-2015

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 – 1619 persons as on 01.04.2014. 2. Contractual Security – 2229 persons. 3. CISF – 950 persons (Approx.). ECL Security: The main duty of ECL Security is to guard the company’s property 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 along with involved 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 empanelled 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 be deployed during Strike/Gherao in the colliery/area.

Steps taken for revamping of security at ECL: a. Requisition of 449 CISF personnel has been sent to CISF HQ for deploying exclusively at Explosive Magazine of ECL out of which 210 CISF has been approved by Ministry of Home Affairs. b. New recruitment of 106 security sub-inspector is in process.

34 EASTERN COALFIELDS LIMITED

c. Action is being taken for installation of CCTV and procurement of other techno-gazatory Explosive Magazine, Central Store and Railway Siding. d. Installation of CCTV Cameras and Bio-metric attendance system in ECL HQ is under process. e. Arms Training by CISF Instructors have been imparted to Security Guards of ECL who will be deployed for guarding Explosive Magazines. f. Basic training has been imparted to persons of other category who after training will deployed as security persons both male and female. g. A mechanism to collect the seized coal from local Police Stations has been put in place. ECL has received seized coal from different Police Stations. 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 GM, 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. g. For logical conclusion of the cases which are pending in Court, ECL has engaged lawyer to follow up these cases. h. Discussion has also been held with Public Prosecutor to take steps for speedy trial of the cases pending in the Courts. 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 CISF and ECL Security has taken various steps which resulted in reduction of coal theft activities in West Bengal Areas of ECL. e. GPS system introduced at Salanpur Area & being introduced in other Areas is also a step to curb theft of Coal.

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A) Details of Seizure of Illegal Trafficking Coal and Illegal Mined Coal by ECL Security, CISF and Local Police:

Year State No. of Coal Vehicles Person FIRs Raids seized (tonne) seized Apprehended Lodged

Seizure of Coal from illegal Traffcking

2014-15 West Bengal 319 2183 35 09 22 Jharkhand 300 2046 09 00 02 Total 619 4229 44 09 24 2013-14 Total 688 3869 06 02 08 Variation –69 360 38 7 16 Seizure of Illegal Mined Coal by Security, CISF & Local Police : 2014-15 West Bengal 17 35.15 0 0 08 Jharkhand 41 236.72 0 0 08 Total 58 271.87 0 0 16 2013-14 Total 127 04 --- 06 03 Variation –69 267.87 --- –6 13

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 2014-15 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 2014-15 West Bengal 683 0.56 24.43 28 Jharkhand 167 1.57 59.24 26 Total 850 2.13 83.67 54 2013-14 Total 867 35.37 179.42 121 Variation –17 –33.24 –95.75 –67

The State administration is actively involved to curb the menace of illegal Coal Mining and Pilferage of Coal. Periodical meetings at State Level, District Level & Block Level Meetings are held with State Authorities, Police Personnel and ECL Authorities. C) Theft / Recovery of other materials : Year 2014-15 2013-14 Variation (Increase/decrease)

No. of Incidents 46 80 –34 No. of FIRs/ Infos. 46 80 –34

Property Stolen (in ` ) 1988896 2799654 –810758

Property recovered (in ` ) 50250 --- 50250 Person apprehended –– 08 –8

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22.0 OUTSOURCING OC PATCHES:

In 2014-15, company produced 141.73 LT of coal and raised 587.91 L.Cum OB from 27 outsourcing OC patches. In 2013-14 company produced Coal of 88.95 LT of coal and OB removal of 532.96 L. Cum from 22 outsourcing OC Patches.

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. Corporate Governance is 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-VI and a certification from Auditors regarding compliance of conditions of Corporate Governance by your company for the year ended 31st March 2014 is also placed at ANNEXURE-VII to this report.

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.

37 ANNUAL REPORT 2014-15

Your Directors acknowledge with thanks the assistance and guidance received from Statutory Auditors, Cost Auditors, Secretarial Auditors, Tax Auditor, Concurrent Auditor, BIFR, BRPSE, Bankers, 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 143(6) of the Companies Act, 2013. ii) Secretarial Audit Report in Form No.-MR-3, given by Company Secretary in Practice pursuant to Section 204(1) of the Companies Act, 2013 (Annexure-VIII). iii) Extract of Annual Return in Form No. MGT-9 as on financial year ended 31.03.2015 pursuant to Section 92(3) of the Companies Act, 2013 (Annexure-IX). iv) Foreign exchange earnings and outgo (Annexure-X). v) Details about research and development activities of the company (Annexure-XI). vi) Addendum to the Director’s Report under Sec. 134(2) and 134(3) (f) of the Companies Act, 2013 stating Statutory Auditor’s Report and Management’s reply thereon.

For and on behalf of the Board of Directors

Sanctoria, Dated: 19th June, 2015

(Chandan Kumar Dey) Chairman-cum-Mg. Director

38 EASTERN COALFIELDS LIMITED Annexure - I Status The status of project was reviewed in the Apex Committee meeting held on 24.12.2014. The Committee advised TCS/CMC, Kolkata and CMPDI to approach Director (S&T), DGMS and convince them to get permission of field trial the total system for R&D purpose only. The Committee agreed to recommend the extension of project duration for 6 months i.e. up to March 2015 R&D Board of CIL for consideration. Regarding field trial of MF Repeater, Director (S&T), DGMS told that if TCS/CMC would submit the test report of recognised laboratory of originating country for IS, then DGMS may consider to provide permission for field trial on the basis of new guidelines DGMS on approval policy (Clause No: 6.2), which came in to effect from 7th January, 2015. TCS/CMC team assured DGMS that after consulting with the technology stakeholders (Kutta Drum 100R manufactures), they will get back to DGMS for amicable solutions for the project. Regarding field trial permission of other sub-system such as MCD (Wi-Fi Dongal), Wi-Fi Access point Antena & VHF Motorola sets, Director (S&T), Director, DGMS told that he will discuss issues with concerned officers in DGMS and try to find out the appropriate solutions. TCS has received some documents from Kutta Drum 100R manufactures, USA. Compilation of documents is in progress at TCS/CMC before submission to DGMS for getting field trial permission. 447.98 in Lakh) ( Progressive Disbursement Revised / March 2015 of completion scheduled date 2010 Start Date of 15th Jan, 489.70 in Lakhs) Outlay

Financial ( Status of On-going R & D Projects upto 31st March, 2015 Name of the Project Underground Trapped Miner Location system. Project code - CIL/R&D/ 1/35/10Implementing agency: TCS, CMC & CMPDIL(ME), Ranchi 1 Sl. No. 3.3.1. 39 ANNUAL REPORT 2014-15 The outcome of the project was discussed in Apex committee meeting held on 24.12.2014. The Committee after detailed deliberation, advised CMPDI to conduct more field trials in both development and depillaring panels to validate results obtained earlier to arrive a concrete conclusion on the findings of project in consultation with General Manager (Jhanjra), ECL. To conduct further field trials, the Committee agreed to extend the project duration up June 2015 within approved project outlay and recommended the same to R&D Board of CIL for consideration. Project completed. Outcome of the project was discussed in the Apex Committee meeting held on 24.12.2014. The Committee suggested some modifications in the recommendations proposed by the project proponents regarding Variable Frequency Drive (VFD) for ventilation fan at Jhanjra UG mine to control the air flow and advised handover the software developed for effective energy utilization to Jhanjra area for its validation. The Committee after detailed deliberation, advised IISWBM, Kolkata and DFIC Management Consultants Pvt. Ltd., Kolkata to visit Jhanjra area, ECL before submission of the final project completion report to CMPDIL incorporating the suggestions made by the Committee for consideration of R&D Board CIL. After incorporating the suggestions, IISWBM has submitted final completion report. 64.70 422.40 May, 2014 June, 2015 2010 2013 March, 15th Dec., 66.19 491.08 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. 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 2 3.

40 EASTERN COALFIELDS LIMITED 16.22 lakh.

Under this project, so far, repair of one trailing cable of 25 sq.mm dia. and 70 meters length collected from Patmohana Colliery, ECL with rubber compound developed by IIT, Kharagpur has been completed and different tests were carried out on the cable before final delivery to colliery. Another piece of damaged trailing cable, 55sq mm dia and 125 meters length collected from JK Ropeways has also been repaired with new developed rubber. High voltage testing of cable has been performed and weak and defective portions were removed healthy segments having acceptable insulation resistance value have been spliced. In January 2015, IIT, KGP has received 561 meter damaged trailing cables from ECL, which are required to rectified and sent back to ECL for field trial. As per the committed cable repair schedule, a minimum period of six months is required in totality to deliver the cables to ECL. Another six months would be required to analyze the performance of cables undergoing the field trials. For this IIT, Kharagpur has sought 12 months i.e. up to February 2016 time extension to complete the project. To meet the project expenditure during extended period of the project, IIT, KGP has also sought cost escalation of the project by The project has been commenced w.e.f 1st June 2014. DGMS permission received for conducting the field trial. Action has been taken for procurement of equipment and expected to be completed within three months. Panel preparation (B2 Panel) in Khottadih, ECL is expected to be completed within two months. 30.00 184.00 ECL-20.00 CIMFR-10.00 Feb., 2015 June, 2016 July, 2013 2014 March, 187.84 41.066 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 To find a methodology of safe liquidation in thick seams of Raniganj Coalfields: Design & Development & show- casing demonstrative trials at Khottadih colliery, ECL 4. 5.

41 ANNUAL REPORT 2014-15 Annexure - II Status Literature survey and basic data collection from mine completed. Concept has been developed for the wireless technology. Modules for vibrating wire sensors were developed. After analysis of detailed system, 3D CAD models and architecture design of the proposed robot has been finalized. After successful design, the modules for vibrating wire sensor and wireless nodes have been developed. Front and rear arm, C-bracket, shafts of the proposed model of the robot were already been developed by CMERI, Durgapur. Field trails were carried out at Nigahi Project, NCL and Sonepur Bazari Project, ECL. The effect of blast design parameters on rock fragmentation, distribution pattern and scattering effect were studied for each blast. Fragment size analyses were carried out using WIPFRAG software. Shale samples from Dharma block of Raniganj and West Mahuda, Singra, Kapuria of Jharia coalfields and Bokaro Coalfields were collected by CIMFR for petrographic, TOC and Rock eval pyrolysis tests at CMPDI & NGRI, Hyderabad. Proximate analysis was carried out for 60 shale core samples and adsorption isotherm of 20 shale core samples was conducted by CIMFR, Dhanbad. Geo-chemical analysis of shale samples for Rock eval pyrolysis tests is under progress at NGRI, Hyderabad. Rangamati B Block at Raniganj coalfields and western Jharia coalfields has been selected as suitable site for conducting 3D seismic survey. The vibrator, which is major equipment in the project, was procured by NGRI, Hyderabad. Lakhs) 240.00 250.00 694.07 ( NGRI-410.00 Progressive CMERI-165.00 CIMFR - 75.00 CIMFR-140.00 Disbursement CMPDIL-144.07 date of Revised Aug. 2015 Nov., 2015 Dec., 2015 completion Scheduled / Jan. Sep. Dec, 2012 2013 2012 Start Date of 63.00 440.12 251.57 125.55 303.86 169.95 in Lakhs) Outlay 2038.09 1054.30

Financial For CIMFR- For CMERI - For CIMFR - For CMPDIL- ( For CMPDIL - For NGRI-813.84 With Code Status of On-going S & T Projects upto 31st March, 2015 Name of the Project / Development of tele robotics and remote operation technology for- underground coal mines – MT (EoI) / 162. Implementing Agency : CMERI, Durgapur, CIMFR, Dhanbad &CMPDIL, Ranchi Blast design and fragmentation control- key to productivity - MT/164. Implementing agency: CIMFR, Dhanbad Shale gas potentiality evaluation of Damodar Basin of India - CE(EoI)/ 30. Implementing Agency : NGRI, Hyderabad, CIMFR, Dhanbad and CMPDI, Ranchi

1 2 3 Sl. No. 3.3.2. 42 EASTERN COALFIELDS LIMITED

Annexure - III

3.13 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 Khottadih OC Aug. 1.50 19.26 Nov’ 11 1. Production achieved in 2014-15: 2.04 MT. 2. Acquisition completed for 42.83 Ha. of Govt. land on 17.02.2015. 3. RCE of PR (Capital: ` 60.10 crore) was approved by ECL Board on 25.12.14. CIL Board on 27.2.2015 approved the expenditure envisaged in first year in RCE till it is finally approved by CIL Board.

2 Sarpi Aug UG. 0.30+0.46 147.86 June’08 CM commissioned on 29-8-10. = 0.76 (120.35 Production achieved in 14-15 is 0.607 Mt. Additional)

3 Bankola R-VI Seam 0.24 19.14 Mar’03 PR involves widening and deepening of (UG) existing shafts for entry to the lower seams. CMPDIL, RI-1 has been asked for Recast of PR along with updation of technology.

4 Kumardih B UG 1.02 117.90 May '14 1. CIL Board has approved PR for capacity of 1.02 MTY in hiring of continuous miner with capital investment of ` 117.90 crore on 29.05.2014. 2. NIT documents for high speed incline drivages and continuous miner are under preparation.

5 Khandra NKJ UG 0.285 18.85 July’ 03 Widening and deepening of shafts have been completed. RI-I has been asked for Recast PR along with updation of technology.

6 Parasea Dobrana UG. 0.16 (Inc.) 11.89 Feb’ 04 PR involves widening and deepening of existing shafts for entry to the lower seams. CMPDIL has submitted the Draft PR of Parasea-Belbaid UG: Capacity: 1.83 MTY, Estimated Capital: ` 886.41 crore in last week of March 2015.

7 Belbaid 0.36 Incr. 69.11 Feb' 09 PR involves widening and deepening of existing shafts for entry to the lower seams. CMPDIL, RI-I was asked for Recast PR. CMPDIL has submitted the Draft PR of Parasea-Belbaid UG,

43 ANNUAL REPORT 2014-15

Capacity: 1.83 MTY, Estimated Capital: ` 886.41 crore with 3 CMs in last week of March 2015. Same is under examination.

8 Siduli UG. 0.30 54.99 Dec’ 06 Project Report involves shaft sinking for entry to the lower seams. Draft Recast of Siduli, OC: 1.00 MTY, UG: 1.02 MTY, Estimated Capital ` 605.78 crore was submitted by CMPDIL in Dec’2014. CMPDIL has been asked to modify the PR.

9 Nabkajora– 0.30 56.14 Dec’ 06 PR involves widening and deepening of Madhabpur Block existing shafts for entry to the lower seams. CMPDIL has submitted the Project Report Capacity: 1.08 MTY, Estimated Capital: ` 1310 crore in 1st week of Apr.’2015.

10 Jhanjra PSLW (R-VI) 1.70 287.17 Nov. 06 Powered support Prototype manufactured by M/s CODCO. Approval of shield Support obtained from DGMS on 03.09.2014. Permission for field trial of Road Header, electrical equipment for Longwall, Side Loader & electrical equipment for Belt conveyors from DGMS obtained in Feb’2015. The Break Bulk Cargo (mainly all the Power Supports) shipped from China on 25.02.2015.

11 Rajmahal Expansion 17.00 153.82 Sept 09 1. Acquisition/Possession of land and R & R activities is going on. 2. Production Achieved in 2014-15: 15.92 MT

12 Mohanpur Expansion 1.00 14.23 June 08 The project achieved its targeted OC production in 11-12.

13 Narainkuri UG 0.54 149.06 Feb’ 09 EC order issued on 23.01.2015. However project is under recast at CMPDIL.

14 2nd Set Continuous 0.51 147.25 May 11 The CM package commissioned. Miner at Jhanjra Production achieved during 2014-15: 0.518 MT

15. Sonepur Bazari 8.00 1055.05 Aug’ 12 1. Production Achieved in 14-15 is 6.40 Combined OC MT. 2. Diversion of NH-60: ` 57.67 crore already deposited to NHAI. The revised cost estimate of ` 69.50 crore is under approval by MoRTH.

44 EASTERN COALFIELDS LIMITED

3. Railway Siding: Work of leveling and filling & construction of bridges is under progress. 30% work completed.

16. Khottadih CM 0.6 (Incre) 127.17 May 11 Global Bid document for Continuous Miner on risk & gain basis is under process for approval.

17. Chitra East OC 2.50 112.69 Aug’ 07 1. Production achieved during 2014-15: 1.735 MT. 2. Transfer of Govt. land: Valuation of land is completed but Demand by State authority has not been issued. 3. Forest land: (a) Stage-I FC for 124.28 Ha obtained on 21.04.2010, (b) The compliance of stage-I for obtaining stage-II was recommended by Nodal Officer to PCCF, Jharkhand on 05.12.2014 for forwarding it to Principal Secretary (Forest). Principal Secretary (Forest) has requested Sr. AIG (Forest), MoEF on 16.02.2015 to send the required information with respect to amendment/ relaxation in condition no 1 before forwarding the compliance to MoEF.

45 ANNUAL REPORT 2014-15

Annexure-IV

MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT - 2014-15

Overview of the Indian economy: With an estimated GDP of approximately US $4.96 trillion in 2013, on a purchasing power parity basis, India is one of the largest economies in the world (Source: CIA World Fact Book). 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 2013 are estimated to suffice on an average for the next 113 years, whereas going by the rate of production of coal in India vis-à-vis its proved reserves such period stands on an average at 100 years. Although proved coal reserves are widely distributed across the world, 82.8% of the world’s recoverable reserves are located in five regions: the United States (26.6%), Russian Federation (17.6%), China (12.8%), Total Europe and Eurasia (other than Russian Federation) (17.2%), and Australia (8.6%) (Source: BP Statistical Review of World Energy June 2014). According to the BP Statistical Review of World Energy June 2013, India accounted for 6.8% of the world’s proved reserves.

Global coal production and consumption: China is the largest producer of coal 3,680.0 million tons (47.4% of the total worldwide production in 2013), followed by the United States 892.6 million tons (12.9% of the total worldwide production in 2013. Asia is the biggest market for coal and currently accounts for 70.5% of global coal consumption, owing to China and India, who are the primary consumers (Source: BP Statistical Review World Energy June 2014).

Indian coal industry and reserves: As on 01.04.2014, the estimated geological resource of Indian coal was 301.56 billion tons (Source: MOC, GoI). In India, coal is the prime fuel used in firing thermal power plants due to its availability and affordability. Coal is the dominant source of energy and met a substantial part, of the total primary energy requirement of India. The coal sector in India is primarily dominated by the PSUs under the central and the state governments.

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). It operates in the states of West Bengal and Jharkhand. ECL is one of the best quality coal producing companies in India. As on date there are 103 working mines in Eastern Coalfields Ltd., 75 being underground mines, 19 opencast mines and 9 mixed mine.

Strength and weakness:

Competitive Strength: a. Total geological reserve of 31.32 Billion Tonne of Coal in the state of West Bengal in ECL command area out of which 13.40 Billion Tonne is in the proven category. ECL has premium grade of coal with average 46 EASTERN COALFIELDS LIMITED

ash content less than 20% at Raniganj Coalfields. This coal can be blended with high ash coal from other subsidiaries to satisfy MoEF stipulations. b. Reserves of 18.61 Billion Tonne of Coal down to a depth of 600 metre as on 01.04.2014 (as per GSI) in Jharkhand where scope for comparatively easy extraction of coal by open cast mining exists. c. Demand is more than the supply position. d. Workmen capable of working in difficult conditions.

Weakness: a. The coal mining in the 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. Upper water-logged seams impede introduction of Mass Production Technology in lower seams

Opportunities and Threats:

Opportunities: a. Realisation of better value for coal through e-marketing. b. Recourse working small OC patches to curb illegal mining. c. Positive response from Central Trade Unions to issues involving production and productivity. d. Increasing co-operation from State Governments/local authorities in solving the problems. Threats: a. Opposition to acquisition of land by villagers. b. Opposition to closure of unviable underground mines.

c. Land constraints in introduction of mass production technology in large scale owing to waterlogging of upper horizon & expansion of OC. d. 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. b. Improve realizations through increased sales of higher quality coal, and e-auction of coal. c. Enhance profitability and maintain competitiveness by improving operating and cost efficiencies and control. d. Continue to increase our reserve base by detailed exploration. e. Continue to focus on developing environmentally and socially sustainable operations.

47 ANNUAL REPORT 2014-15

Production:

Particulars 2014-15 2013-14 OCP - Coal (MT) 32.714 29.175 Underground Coal (MT) 7.292 6.871 Total (MT) 40.006 36.046 Growth % 10.99 6.33 OBR- (MCUM) 94.047 85.76 Growth % 9.66 12.18

SEGMENT-WISE OR PRODUCT WISE PERFORMANCE: (in Million Tonnes) Particulars 2014-15 % 2013-14 % Growth (%) Despatch to Outsiders under FSA 31.960 83.08 30.368 83.76 33.85 E-auction 1.889 4.91 3.904 10.77 –53.89 Despatch under MoU 4.250 11.05 1.626 4.48 16.68 Others 0.121 0.31 0.080 0.22 199.09 Own Consumption 0.249 0.65 0.277 0.77 –5.05 Total Off-take 38.469 100.00 36.255 100.00 6.07

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. 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.

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

48 EASTERN COALFIELDS LIMITED between ECL and the linked customers. In addition, coal is also sold under E-auction scheme. We have adopted GCV based coal pricing mechanism with effect from 1st January, 2012.

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. The E-auction scheme provides an avenue for additional coal procurement by customers.

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.

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 2013-14, ECL has obtained “Excellent” grading.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY: As a coal producing company, Eastern Coalfields Limited has a sound system of internal control for efficient running of its business as well as for complying with the different guidelines and procedures in the day to day operation. There are different Manuals in operation (e.g. Manuals for Purchase, Civil, Finance, Contract Management etc.) with detailed laid down procedures, which are required to be followed up in the day to day functioning. At times the Manuals are supplemented by circulars which are issued from time to time by the competent authority as and when deemed fit, in furtherance of the objective of the organization. The Manuals/Circulars not only provide the requisite checks and balances at the different stages in the system, but also provides extensive guidance in off- setting errors, omission or commission and thereby render the system more effective. 49 ANNUAL REPORT 2014-15

The delegation of power (DOP) is comprehensive and it percolates down to the colliery/unit level to ensure that the decisions are taken promptly at various levels in terms of DOP depending upon materiality & importance. Thus there is a smooth decision making process which ensures timely decisions on all important issues at the different levels. In order to ensure that the requisite checks and balances are in place & all internal control systems are in order, regular and exhaustive Internal Audit is being carried out by experienced firms of Chartered/Cost Accountants throughout the year in co-ordination with the Internal Audit Department of the company in terms of scope of work finalized by Coal India Limited (CIL), the holding company. C&AG Officials also conduct transaction audit in different areas/establishments throughout the year in which justification in support of the expenditure as also the Internal Control aspects are analysed in- depth. Imbalances occurring, if any, are pointed out in the Inspection Report of C&AG Office for justification and corrective action by the management.

The Audit Committee of the company/CIL maintain a close watch on the internal control systems and significant observations of the Internal Auditors are placed before the Audit Committee for review on a quarterly basis. After consideration thereof, the Audit Committee issues such necessary directives, as deemed fit for compliance. The Internal Audit Department also undertakes Special Audit/enquiries on specific issues as and when required by the Management. While conducting such special audit/enquiry, the Internal Control system in operation is examined in-depth vis-à-vis lapses occurring, if any, and the matter is reported to the competent Authority for necessary remedial action. Thus the company has a sound system of Internal Control having regard to the size of the company and the nature of transactions carried out by it. COST AUDIT: Pursuant to Section 148 of the Companies Act, 2013 and The Companies (Cost Audit Report) Rules, 2011, Cost Audit has become mandatory for Eastern Coalfields Limited. For financial year 2013-14, Cost Audit Report was filed with the Central Government in Form-I-XBRL on 26th September, 2014.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

Results of Operations: (` in crores) Particulars 2014 – 15 2013– 14 Growth (%) Gross Sales 13413.84 11945.92 12.29 Less : Levies 3395.30 3058.13 11.03 Net Sales 10018.54 8887.79 12.72 Other Income 894.25 712.91 25.44 Total Income 10912.79 9600.70 13.67

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.

50 EASTERN COALFIELDS LIMITED

Expenditure: Break up of Major Heads: (` in crores) 2014-15 2013-14 Growth Particulars Absolute % age (Accretion)/Decretion in stock –84.84 5.64 –90.48 –1604.26 Stores & Spares 797.82 735.36 62.46 8.49 Salary & Wages 5850.50 5512.57 337.93 6.13 Power & Fuel 475.78 463.77 12.01 2.59 Social Overhead 24.85 -- 24.85 -- Contractual Exp/Repairs 1025.03 820.53 204.50 24.92 Other Expenditure 349.99 342.47 7.52 2.20 OBR Adjustment 174.42 210.00 –35.58 –16.94 Depreciation/Impairment 244.79 213.50 31.29 14.66 Provision 99.58 –131.57 231.15 175.69 Profit Before tax 1782.41 1299.28 483.13 37.18 Profit after tax 1139.40 872.23 267.17 30.63

Cash Flows: (` in crores) P a r t i c u l a r s 31.03.2015 31.03.2014 Opening Cash & Cash equivalents 1188.07 439.15 Net cash from operating activities 981.85 2118.87 Net cash from investing activities –1477.34 –1364.21 Net cash used in financing activities –5.75 –5.74 Change in Cash and cash equivalents –501.24 748.92 Closing cash & cash equivalents 686.83 1188.07

MoU Activities :

Measurement Sl. Performance Target for Achievements No. Indicator Unit the year 1 Gross Operating Margin ` in crore 671 .82 1644.56 2 Working Capital Turnover Ratio Ratio –0.028 0.267 3 Average number of days of inventory Days 14.45 14.61 4 Average collection period of Trade Days 56.70 42.81 Receivables.

51 ANNUAL REPORT 2014-15

HUMAN RESOURCE DEVELOPMENT:

Manpower:

Manpower as on Increase (+)/ Category Decrease (-) 31.3.2015 31.3.2014 Executive 2472 2518 –46 Supervisor 4736 5633 –897 Ministerial/ Clerical 3175 3466 –291 Highly Skilled/ Skilled 23422 23636 –214 Semi-Skilled/ Unskilled 34121 35453 –1332 Trainee 755 1120 –365 Total 68681 71826 –3145

Reasons for Variation in Manpower : Particulars Executive Non-Executive Total INCREASE Fresh Appointment 134 35 169 Appointment against medically unfit cases 0 6 6 Appointment against death cases. 0 556 556 Reinstatement/Re-joined. 2 54 56 Transfer in from other companies. 31 4 35 Appointment against Land Losers 0 313 313 Total Increase (A) 167 968 1135 DECREASE Retirement 158 3188 3346 Medical Unfit 0 46 46 Death 3 647 650 Resignation 17 7 24 Dismissal/Termination 32 24 56 Transfer to other companies 3 25 28 VR under GHS / EVRS 0 7 7 Special Female VRS 0 123 123 Total Decrease (B) 213 4067 4280

VARIATION (A – B) –46 –3099 –3145

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 2014-15 remained cordial. The statistics relating to Industrial Relation and Law & Order is given below:

52 EASTERN COALFIELDS LIMITED

Sl No Subject 2014-15 2013-14 1 No. of strikes 1 1 2 Mandays lost (in lakh) 0.25 0.02 3 Production lost (in lakh tonnes) 0.97 0.36 Law and Order : Subject 2014-15 2013-14 Law and order (Disturbance) 18 54 Production Lost (in Lakh Tonne) 0.63 1.08

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 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 2014-15 2013-14 No. of JCC Meeting held at HQ level 06 04 No. of structured Meeting held at HQ level 20 20

Employment provided under NCWA & LLS :

Employment provided under 2014-15 2013-14 NCWA 665 590 Land Losers Scheme 275 488 Direct Recruitment 62 158

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. The representation of SC and ST candidates in total manpower is as under :

As on Total Manpower SC Candidates ST Candidates Number % Number %

31.03.2015 68681 18811 27.39 8949 13.03

31.03.2014 71826 19774 27.53 9475 13.19

A total of 450 candidates belonging to SC community and 206 candidates belonging to ST community were promoted during 2014-15 against 401 and 187 candidates respectively during 2013-14. As on 31.03.2015, on Roll OBC community employees are 17094. 53 ANNUAL REPORT 2014-15

Disclosure under Sexual Harassment of women at Workplace (Prevention and Redressal) Act, 2013: The Internal Complaint Committee (ICC) of ECL under section-2 (h) of Sexual Harassment of women at Workplace (Prevention and Redressal) Act, 2013 has been constituted on 23.05.2014. So far, two complaints regarding sexual harassment at ECL have been received and both the cases are under enquiry.

Mou Activities : Measurement Sl. Performance Target for Achievements No. Indicator Unit the year 1 Formation of the policy for Job Month March, Achieved. Job rotation policy rotation of the employees 2015 approved on 17.02.2015. 2 Implementation of Online Month March, Online recruitment system is in Recruitment system 2015 practice. 3 Number of structured No.of Meetings 16 Achieved. 26 meetings at Corporate level with employee’s representatives 4 IT initiatives in HR function % updation of 75 Achieved. NEIS updation is being NEIS System done regularly. 5 Formation of Quality Circles No. 4 8

Trade Unions: The majority of our non-executive employees are members of several unions including INTUC, AITUC, HMS, BMS, UTUC, CITU etc. Some 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.

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 such as Advanced Management programmes, Leadership Development programmes, General Management programmes, Young Managers programmes, Advanced Maintenance practices, Management Development programme, Training and Coaching, Career Development for junior officers and Communication skills. In addition, our company has arranged for a significant number of executives to attend external training programmes and sent our employees (including Directors, senior executives and non- executive employees) for a number of international training sessions outside India. Apart from IICM, at ECL, we have our HRD centre, VTCs which provide various training to our staff and executives. Induction programmes are also carried out regularly for newly recruited Management Trainees. HRD is also arranging industrial/vocational training on need basis for students of various Institutes. In 2014-15, company had imparted training to 4077 persons compared to 4076 persons in 2013-14. The details are given below:

54 EASTERN COALFIELDS LIMITED

1. Action Plan : No. of participants No. of Course Year Target Actual Target Actual Exe. Supv. Worker Total Exe. Supv. Worker Total

2014-15 138 149 315 510 960 1785 423 561 1270 2254

2013-14 132 142 280 500 1030 1810 508 532 1324 2364

2. Details of various training provided during the year 2014-15 as compared to 2013-14

Sl Nature of Training 2014-15 2013-14 No. Exe. Supv. Worker Total Exe. Supv. Worker Total

1 General/In-Company Training: 1.i 3 days or more 423 561 1270 2254 508 532 1324 2364 1.ii Less than 3 days 304 112 200 616 323 70 162 555 2 Training External (within India): 2.i At IICM: 2.i.a 3 days or more 399 4 0 403 467 0 0 467 2.i.b Seminar/Short course 31 0 0 31 27 0 0 27 2.ii Out Company Training (Other than IICM): 2.ii.a Short duration 41 3 7 51 24 1 0 25 2.ii.b Long duration 0 0 163 163 0 0 160 160 2.ii.c 3 days or more 148 20 1 169 123 7 1 131 2.ii.d 6 weeks intensive course in survey (at ISM) 0 0 0 0 6 0 0 6 3 Trainees: PDPT 0 57 0 57 0 56 0 56 4 Seminar/Workshop excluding in-company 298 4 0 302 250 16 2 268 5 External (abroad) 31 0 0 31 17 0 0 17 TOTAL 1675 761 1671 4077 1745 682 1649 4076

3. Details of Special Training Programme conducted to meet the requirement of Skilled Manpower: Sl. Details of Programme Number of No. Participants 1 Special coaching class for Mining Sirdarship Examination through MGMI, Kolkata. 30 2 Shovel operator training 16 3 Dumper operator training (Simulator training) 145 4 Electrician training 30 Total 221 55 ANNUAL REPORT 2014-15

Apart from this, 60 local youths were provided Skill Development Training at Govt ITI, Kanyapur Asansol. 358 students were provided underground training for Mining Sirdar Examination. 77 children (30 girls and 47 boys) from weaker section of the society were given computer training.

4. MoU Activities

Sl. Measurement Target for Performance Indicator Achievement No. Unit the Year

1 Certified training in Project Management No. of Executives 13 26

2 Formal Training in Environment, Forest No. of Executives 13 32 Management & Land Acquisition

3 Certified Training in Contact Management No. of Executives 4 6

4 Formal Training in Risk Management. No. of Executives 18 24

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 regular basis by adopting following Environment Protection Activities. At present there are 93 mines with Environment Clearance. 87 running mines have been accorded EC for the first time in 2014-15 with total no. of conditions varying from 75 to 90. With the growing importance on reclamation of land, proper closure of mines, better air, water and land management, addressing public concerns on environment, R & R, CSR etc., the area addressed in the EC conditions has also increased manifolds. Also the developed concept of environmental parameters like reduction in carbon and water footprint, earning carbon credit, combating Climate Change, etc. have made us inclined to work on this front as expected by the stakeholders. ECL firmly believes in adhering to the concepts of Sustainable Development and adoption of non-conventional energy to meet the energy demands. As a part of this we have initiated programs such as Rainwater Harvesting, installation of Solar Panels etc.

Major Achievements during 2014-15:

1. Environment clearance: EC obtained for 93 mines with EC capacity 63.92 MTPA. All the 12 clusters consisting of 106 mines have been cleared by EAC out of which EC of 10 clusters have been issued, and EC of rest 2 clusters is under process for issue. In addition EC of Simlong OCP has also been obtained. It was possible due to continuous effort by ECL since 2006 to bring the old mines under the ambit of EIA notification-2006, therefore securing better environment management with implementation of integrated Environmental Management Plan under cluster scheme that has been approved by MoEF. It was possible due to excellent coordination with MoEF and SPCB which also cooperated in our effort for bringing success.

56 EASTERN COALFIELDS LIMITED

The details of EC activities is listed below to highlight the efforts put by ECL vis-à-vis Achievement.

Progress of EC process in 2014-15:

Sl.No Activity during 2014-15 No. of Proposals / Clusters

1. Fresh Proposals, submitted to MoEF 2 2 Draft EIA/EMP prepared 4 3 Public Hearing conducted successfully 4 4 Final EIA/EMP Prepared 9 5 Final EIA/EMP submitted to MoEF 9 6 No. of EAC meeting attended 8 7 Environment Clearance granted by MoEFCC 11

EC Granted in 2014-15 :

SL No. Name of Proposal No.of Mines EC Capacity (MT) Date of Grant of EC

1 Cluster No. 1 11 3.30 16.01.2015 2 Cluster No. 2 3 0.45 16.01.2015 3 Cluster No. 3 3 3.97 20.10.2014 4 Cluster No. 5 2 0.63 22.09.2014 5 Cluster No. 6 9 2.25 16.01.2015 6 Cluster No. 7 4 0.74 16.01.2015 7 Cluster No. 8 7 2.75 19.03.2015 8 Cluster No. 9 15 8.00 23.01.2015 9 Cluster No. 10 19 7.70 20.01.2015 10 Cluster No. 12 19 31.83 09.02.2015 11 Simlong Expansion OC 1 2.30 24.12.2015 Total 93 63.92

2. Forest Clearance: Stage-I Clearance has been obtained for diversion of 90.30 Ha of Forest land in favour of Jhanjra UG which will facilitate expansion of Jhanjra Project by introduction of Longwall panel in the project. Grant of Stage- I Clearance obtained for diversion of 78.00 Ha of Forest land in favour of Jhanjra UG is in pipeline. Three New Forestry Proposals initiated for submission of document in the online format as per the requirement of MoEFCC. Progress of Forest Clearance in 2014-15 at a glance:

Sl.No Activity during 2014-15 No. of Proposals / Clusters

1 Stage-I Clearance Granted 1 2 Proposals Forwarded to MoEFCC for Stage-I Clearance 3 3 Proposals Considered in FAC Meeting 2 4 Proposals Under consideration at State Govt. for Stage-II Clearance 3 5 New proposals for Stage-I Clearance Initiated 3

The CCI-Project Monitoring Group meeting with Cabinet Secretary, Govt. of West Bengal requires a

57 ANNUAL REPORT 2014-15

special mention, especially w.r.t. speeding up the forestry proposals of West Bengal. The meetings were of great help in clearing proposals of the state quickly.

3. ISO Certification: In 2012-13 ISO certification of two projects (Sonepur Bazari, Rajmahal) was obtained for the first time in ECL. This is also first time in the history of Coal India that a project has obtained certification under IMS in one go comprising ISO 9001, ISO 14001, OHSAS 18001 instead of attaining IMS in stages. With a view to maintain a high standard on quality, environment and occupational health care, ECL has decided to obtain IMS certification for the company as a whole.Approval of the proposal for all units of ECL was made

on 16.07.2014 for an amount ` 82.94 lakhs appointing CMPDI as consultant in the job. Manuals on Integrated Management System (IMS) have been released on 26-03-2015.

4. Participation International Conference: A paper on reclamation work of ECL regarding “The Development of Ratibati OCP to Gunjan Ecological Park” was presented in the International Conference on “ Environment Management in Coal Mining- Sustainable Way Forward” organized by MoEFCC on 21st -22nd March, 2015 The paper highlighted the joint efforts of ECL with Asansol Police Commissionrate in restoring Ecological Balance in the Area. The effort was highly appreciated specifically for the attraction of migratory birds in the Park, an activity on sustainable way forward.

5. Sustainable Development initiatives: Rain Water Harvesting In continuation to our initiative for rain water harvesting, three more rooftop rainwater harvesting projects at Salanpur, Satgram, Sonepur Bazari areas were successfully completed and evaluated during the year.

Regular Environmental Programs:

1. Plantation: During 2014-15, 66500 saplings were planted over an area of 35 Ha against a target of 50000 saplings under MoU. Progressive plantation made through State Forest Departments in ECL command area is 6.9913 million saplings over an area of 2805 .497 Ha of land.

2. Campaigns & Awareness Program: Observation Of World Environment Day: World Environment Day was observed on 5th June 2014 throughout ECL by hoisting Environment Flag, oath taking and tree plantation. It was followed by inter-colliery/project//area competition on 6th, 7th & 9th June 2014. Different inspection teams were constituted to inspect all units and areas and evaluate their annual performance of environment measures/activities. On the eve of World Environment Day, the prizes for the last year’s competition were awarded to the winners of area/ colliery.

3. Reclamation and Restoration work in Areas of ECL: 3-tier Plantation and Ecological restoration is requirement of day to attain better restoration. The plantation works in exemplifies the same. On the similar lines we have planned for reclamation of 10 Ha in Sonepur Bazari area, wherein, 3-Tier Plantation will be done to convert the rocky OB to a lush green forest.

58 EASTERN COALFIELDS LIMITED

MoU Activities:

Sl. Measurement Target for Performance Indicator Achievement No. Unit the Year

1. Submission of draft EIA/EMP of North Month July, Achieved. Draft EIA/EMP Searsole OC based on TOR to WBSPCB 2014 submitted to WBPCB on for conducting Public Hearing 24.04.2014

2. Conduction of Public Hearing for EC Month Oct, Achieved. Public hearing held 2014 on 18.07.2014

3. Approval of EMP by MoEF Month Jan, Achieved. Submitted for 2015 approval on 12.09.2014.

4. Tree Plantation No. of Plants 45000 Achieved. 66500 trees planted

59 ANNUAL REPORT 2014-15

ANNEXURE-V CSR Activities-2014-15

Brief outline of the company’s CSR Policy: Revised CIL CSR Policy communicated vide Office Memorandum No.-CIL/CSR/2014/1082 dated 13.06.2014 in consonance with amendment of Companies Act, 2013 has been adopted and implemented at ECL. The DPE Guidelines on CSR vide F.No.-15(13)/2013-DPE(GM) dated 21st October, 2014 effective form 01.04.2014 are also adhered to. It integrates our business with social processes by making its welfare measure focused primarily on land oustees and PAP’s staying in the radius of 25 KM. It ensures that poor and needy section of the society derives the maximum benefit to support their development and sustainability. The Projects and Programs have been directed in the following priority areas at ECL. 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/ Buildings/ Old Age Homes, building of roads, pathways and bridges etc. 7. Promotion of Sports & Games. 8. Setting of skill development centers. 9. Supplementing Development Programs of the Govt. 10. Construction of Toilets and other related activities under Swachh Bharat/Swachh Vidyalaya Abhiyan.

Composition of CSR Committee: In order to steer the CSR & Sustainability agenda of the company the two-tier structure, comprising of a Board level committee, headed by Chairman-cum-Mg. Director and a below Board level committee headed by GM(W&CSR) were constituted for planning, implementation, monitoring and evaluation of CSR and Sustainability activities of ECL.

In addition to above a CSR committee has been constituted at ECL HQ as specified in CIL CSR Policy for co- ordination of CSR activities from concept to conclusion.

At the Area Level, a CSR Committee of multi-disciplinary executives has also been constituted for implementing their CSR Activities.

Average net profit of the company for last three financial years:

The determination of the amount as 2% of Average Net Profit/Profit before Tax of previous three years as per section 198 of the Companies Act, 2013 is as follows: : 60 EASTERN COALFIELDS LIMITED

Particulars 2011-12 2012-13 2013-14 Profit before Tax 962.13 1897.18 1299.28 Less Profit on Sale of Assets 1.32 0.80 1.63 Profit u/s 198 960.81 1896.38 1297.65

Average of CSR Budget for 2014-15: {[(960.81+1896.38+1297.65}*2%} i.e. ` 27.70 Crore. Thus the CSR budget should be restricted to the 2% of Average Net Profit + ` 10.20 crore as unspent committed expenditure of 2013- 14 i.e. ` 37.90 Crore.

Prescribed CSR Expenditure: Fund provisioning by ECL is based on the CSR Policy of CIL which is 2% of Avg. net profit or ` 2/- per tonne of coal production of previous year which ever is higher. Production in 2013-14 was 36.046 MT. Hence CSR provision at the rate of ` 2/- per tonne of coal production would have been ` 7.21 crore, whereas @ 2% of Average Net Profit comes to ` 27.70 crore which is higher. The spill over expenditure of last year is ` 10.20 crore and hence the totalal budgeted amount comes to ` 37.90 crore.

Details of amount spent on CSR activities during the financial year: a. Total Budget for the financial year 2014-15- ` 37.90 crore b. Amount unspent- ` 13.05 crore c. Actual amount incurred on CSR Activities ` 24.85 Crore. Details of CSR Activities are enclosed as Annexure-A. Reason for unspent amount lying in CSR budget: As per the directions given by MHRD, Govt. of India and final report of survey conducted, ECL has been assigned to take up toilet work in 1942 schools in district of Purulia (West Bengal) and Deoghar & Shaibganj (Jharkhand). We are to construct 1344 new toilets and make functional 2144 number of dysfunctional toilets in totality 3488 by 30th June, 2015. With the Swachh Bharat Abhiyaan the budget was diverted towards construction of toilets. Due to the introduction of code of conduct in the state of Jharkhand because of the Legislative Election the process got delayed. The resources are being geared up to minimize the time delay and maximize the scope of CSR expenditure by the CSR Committee of HQ and Areas. It is hereby confirmed that the implementation and monitoring of CSR Policy at ECL is in compliance with CIL CSR Policy in line with Companies Act, 2013 and DPE Guidelines effective from 01.04.2014.

Place-Sanctoria (Rakesh Sinha) Date- 14th May, 2015 Chairman-cum-Mg. Director Chairman-CSR & Sustainability Committee

61 ANNUAL REPORT 2014-15

ANNEXURE - A

CSR Activity for the Financial Year 2014-15 ( ` in Lakh)

Comulative Amount Spent Budget Amount directly or through Sl. Activity Sector Expenditure No. outlay Spent upto Implementing 31.03.2015 agency

1. Construction of borewell, Water supply 5.48 5.48 5.48 Implementing Agency submersible pump, pump house, water reservoir, ladies bathroom at Hansdiha village under S.B. Area.

2. Construction of borewell, Water supply 6.77 6.75 6.75 Implementing Agency submersible pump, pump house, water reservoir, ladies bathroom at Bazari village under S.B. Area.

3. Construction of borewell, Water supply 5.27 4.99 4.99 Implementing Agency submersible pump, pump house, water reservoir, ladies bathroom at Bhaluka Arsola village under S.B. Area.

4. Construction of borewell, Water supply 5.34 5.14 5.14 Implementing Agency submersible pump, pump house, water reservoir, ladies bathroom at Sonepur village under S.B. Area.

5. Construction of borewell, Water supply 5.25 5.19 5.19 Implementing Agency submersible pump, pump house, water reservoir, ladies bathroom at Basak Dangar village under S.B. Area.

6. Construction of One Room for Infrastructure 2.37 2.53 2.53 Implementing Agency Cricket Academy at Haripur, Sonepur Bazari Area.

7. Construction of community hall Infrastructure 10.21 10.21 10.21 Implementing Agency near Primary school, Chinchuria Village, Sonepur Bazari Area.

8. Mobile Medical Van at Sonepur Medical 2.7 2.70 2.70 Implementing Agency Bazari

9. Medical Camps at Sonepur Medical 1.25 1.01 1.01 Implementing Agency Bazari 62 EASTERN COALFIELDS LIMITED

10. Construction of Toilets and Infrastructure 19.18 18.62 18.62 Implementing Agency Drinking water provision with water purification in all schools situated in and around Coalfields of ECL

11. Programme at Khandra Medical 0.45 0.45 0.45 Implementing Agency Partibandhi Karmakendra

12. Construction of Burning Stage Infrastructure 2.8 2.77 2.77 Implementing Agency with overhead shed at Chora Village, Kenda Area

13. Construction of Burning Stage Infrastructure 2.68 2.68 2.68 Implementing Agency

14. Sports for Physical Challenge/ Sports 0.35 0.35 0.35 Implementing Agency disable person

15. Medical camp at Kenda Area Medical 0.52 0.52 0.52 Implementing Agency

16. Construction of Toilets and Infrastructure 14.95 12.33 12.33 Implementing Agency Drinking water provision with water purification in all the schools situated in and around Coalfields of ECL

17. Child and Adult Education Infrastructure 2.06 1.92 1.92 Implementing Agency Centre for SC/ST at Nuni Village

18. Construction of Toilets and Infrastructure 23.11 8.18 8.18 Implementing Agency Drinking water provision with water purification in all schools situated in and around Coalfields of ECL

19. Construction of Boundary Wall Infrastructure 3.59 3.58 3.58 Implementing Agency at Balanpur Primary School at Balanpur Village

20. Construction of Road to Infrastructure 69.6 32.38 32.38 Implementing Agency Mahabir Colliery from NSB Road Raniganj

21. Making Concrete Pavement Infrastructure 1.84 1.31 1.31 Implementing Agency through burial Ground from Northsearsole Road Junction to Katagoria village

22. Construction of 3 (Three) room Infrastructure 4.13 1.13 1.13 Implementing Agency with Verandah at Dansha Playing Ground

63 ANNUAL REPORT 2014-15

23. Construction of approach Road Infrastructure 34.32 31.07 31.07 Implementing Agency from Toposi Rail Gate to Toposi village.

24. Renovation of water supply pipe Water 5.8 5.71 5.71 Implementing Agency line at Dandadih village Supply

25. CSR budget for skill Skill 24.53 10.26 10.26 Implementing Agency development Training development Programm (ATDC)

26. Medical Camp at Kunustoria Medical 1 0.55 0.55 Implementing Agency Area

27. Construction of Boundary wall Infrastructure 17.79 17.02 17.02 Implementing Agency at Shyamsunderpur village football ground

28. Construction of Boundary wall Infrastructure 13.46 13.33 13.33 Implementing Agency in front side of Dihipark and PCC road including drain inside Dihi Park at Kumardihi Village

29. Making RCC roof over the stage Infrastructure 4.2 2.83 2.83 Implementing Agency including green room at Ukhra school Football ground in Ukhra village, Bankola Area

30. Permanent Water Supply Infrastructure 0.77 0.74 0.74 Implementing Agency pipeline at Kumardihi & SSPur Village from Kumardihi-A Colliery

31. Distribution of Aids Appliances Medical 0.5 0.5 0.50 Implementing Agency to physically Challenged person

32. Medical Camp at Bankola Area Medical 1 0.69 0.69 Implementing Agency

33. Construction of Road at Tilaboni Infrastructure 10.93 9.92 9.92 Implementing Agency gram to Main Para and one Bus Stand

34. Installation of 4 Number Water 3.76 0.27 0.27 Implementing Agency Handpump in Jamgura Village Supply

35. Construction of PCC Road of Infrastructure 11.3 9.94 9.94 Implementing Agency 257 mtr from Kali Mandir to Ghosh Para with Drain

36. Construction of Road From Infrastructure 4.34 3.77 3.77 Implementing Agency Hazra Para to Shiv Mandhir at Kuchudihi village & drain at Namu Para (110 mtr Length)

64 EASTERN COALFIELDS LIMITED

37. Construction of PCC Road at Infrastructure 3.01 3.00 3.00 Implementing Agency Balijuri from main Road to Bagdi Para and Construction of Wall at Pond nearby the road- Balance work of 80 mtr

38. Construction of PCC Road of Infrastructure 20.79 18.29 18.29 Implementing Agency 700 mtrs from Bouri Para to Samshan Ghat and two culverts at Luadoha Village

39. Construction of PCC Road at Infrastructure 16.68 14.07 14.07 Implementing Agency Nabhagahanpur from Das Para to Netaji Sangha

40. Health Camps at Jhanjra Area Medical 1.59 1.59 1.59 Implementing Agency

41. Community Development at CD 25.04 25.04 25.04 Implementing Agency Jhanjra Area

42. Proposal for Drinking Water Water 198.07 198.07 198.07 Implementing Agency through Water Tanker to nearby Supply villages in periphery of Rajmahal Area.

43. Construction of P.C.C. Road in Infrastructure 22.81 23.99 23.99 Implementing Agency Gudia village, Rajmahal Area

44. Construction of P.C.C. Road in Infrastructure 23.72 22.16 22.16 Implementing Agency Beltekri village, Rajmahal Area

45. Construction of P.C.C. Road in Infrastructure 23.68 23.42 23.42 Implementing Agency Gandhinagar, Rajmahal Area

46. Construction of PCC Road in Infrastructure 33.63 31.18 31.18 Implementing Agency Lalmatia- Pirpainti road at Jhirli Village from Starting Point to existing P.C.C. road (L=1000 m)

47. Construction of PCC Road at Infrastructure 7.95 9.85 9.85 Implementing Agency Babupur Village near Panchayat Bhawan towards village end (L=225m)

48. Construction of PCC Road at Infrastructure 33.62 33.62 33.62 Implementing Agency Dorma Village from Primary School towards village end (L=1000m)

49. Construction of Kurkutia Village Infrastructure 13.16 13.16 13.16 Implementing Agency from Culvert to Lalmatia- Mahagama road junction Via Primary School (L=400m)

65 ANNUAL REPORT 2014-15

50. Construction of PCC Road at Infrastructure 24.68 24.49 24.49 Implementing Agency Harkatta Village near Manjhi Sthan & Anganwadi Kendra (L=700m)

51. Construction of PCC Road Infrastructure 13.45 12.58 12.58 Implementing Agency towards Hetbandha village end.

52. Construction of PCC road from Infrastructure 10.42 10.33 10.33 Implementing Agency Simra More to Chhota Simra.

53. Rain Water Harvesting near Water 11.07 7.17 7.17 Implementing Agency Expert Hostel,Rajmahal Area supply

54. Construction of Library at Iswar Infrastructure 15.74 11.49 11.49 Implementing Agency Marandhi Nagar Rehabilitation site at Rajmahal Area

55. Skill development Training Skill 35.91 21.62 21.62 Implementing Agency Program(ATDC) Development

56. Skill development Training Skill 17.8 9.4 9.4 Implementing Agency Program(ATDC) Development

57. Medical Camp at Rajmahal Medical 3.48 3.25 3.25 Implementing Agency

58. Construction of Toilet at Girls Infrastructure 2.04 1.69 1.69 Implementing Agency School, Kendua

59. Const. of Bus shed with 2 No Infrastructure 2.59 1.52 1.52 Implementing Agency Urinals at Basua Chowk at Mahagama

60. Deep borewell with pipeline CSR Water 4.52 3.83 3.83 Implementing Agency work in 2012-13 Tetaria village Supply near Bajarangabali Mandir

61. Community Toilet (15 Nos.)at 10 Infrastructure 6.25 5.8 5.8 Implementing Agency different villages

62. Air Ticket for Professionals Others 0.29 0.29 0.29 Implementing Agency

63. Construction of toilets in the Swachh 465 465 465.00 Implementing Agency Govt. schools of Purulia district. Bharat

64. Construction of toilets in the Swachh 500 500 500.0 Implementing Agency Govt. schools of Deoghar Bharat district.

65. Construction of toilets in the Swachh 250 250 250.00 Implementing Agency Govt. schools of Sahibganj Bharat district.

66 EASTERN COALFIELDS LIMITED

66. Skill development livelihood Skill 21.66 10.83 10.83 Implementing Agency centre for vocational training Development (Sambhav Foundation)

67. Financial assistance for Infrastructure 3.81 1.9 1.9 Implementing Agency constrution of classroom for Sanctoria Upendranath Sishu Siksha Kendra

68. Engagement of MMV for Medical 7.00 7.00 7.00 Implementing Agency providing medical and health care service for underprivileged around ECL

69. Payment to TISS Others 3.03 3.03 3.03 Implementing Agency

70. Conducting Residential Skill 48.8 24.4 24.4 Implementing Agency Employable Skill development Development Training Programmes for SC, ST, OBC, GEN & Minority Youths on Plastic Engineering & Technology under CSR Scheme by Central Institute of Plastic Engineering & Technology (CIPET), Bhubaneswar.

71. Livelihood Skill Development Skill 15.42 7.713 7.713 Implementing Agency Training Programme at Salanpur Development Area by Vyakti Vikash Kendra (VVKI)

72 Construction of Graveyard shed Infrastructure 12.72 6.36 6.36 Implementing Agency building at Kultora, Muncipality (Ward No.2)

73 Construction of two classrooms Infrastructure 5.93 5.93 5.93 Implementing Agency for computer class to Sitarampur Ramakrishna Sarada Sangha, Master Para, Sitrampur, Burdwan.

74 Community Participation Model Skill 49.6 19.84 19.84 Implementing Agency Project for Economic Development Development and Nutritional Health Management Through Organic Farming, Education and Demonstrations by I.I.T., Kharagpur

67 ANNUAL REPORT 2014-15

75 Construction of Students Home Infrastructure 14.06 14.06 14.06 Implementing Agency Barapukhuria, rural centre of Asansol Vivekananda Math

76 Engagement of MMV for Medical 21.15 21.15 21.15 Implementing Agency Providing Medical and Health Care Service for Underprivieged around ECL, Health Management and Research Institite

77 Engagement of MMV for Medical 21.15 21.15 21.15 Implementing Agency Providing Medical and Health Care Service for Underprivieged around ECL, Wockhardt Foundation

78 Solar Electrification programme Solar Light 24.7 24.7 24.7 Implementing Agency at Purulia District, by MLINDA foundation

79 Training Program at Hyderabad Skill 0.528 0.528 0.528 Implementing Agency Development

80 Nomination fee for training Skill 0.2 0.2 0.2 Implementing Agency programme organized by Global Development Gandhian Trust ship & Corporate Responsibility Foundation on Advance Certificate Training Workshop on Corporate Social Responsibility Bhubaneswar

81 Taxi bill for local movement in Others 0.06 0.06 0.06 Implementing Agency Mumbai to attend Seminar Workshop on SR/SD from 7 th to 9th March 2014

82 Financial Assistance for further Infrastructure 15.9 15.9 15.9 Implementing Agency development of Punardrishti Eye & General Hospital (A unit of Asansol Prevention of Blindness Society) at Asansol

83 Skill development to create for Skill 6.00 6.00 6.00 Implementing Agency income generation for project Development affected people/poor and needy persons ITI Kanyapur

84 Issue of 60 nos of Solar Street Solar Light 5.56 5.56 5.56 Implementing Agency Lights in 10 nos of villages under Kulti Muncipality.

85 Construction of Classroom of Infrastructure 2.75 2.75 2.75 Implementing Agency Ramakrishna Ashrama Vidyapith 68 EASTERN COALFIELDS LIMITED

86 Hire Charges for Ambulance Medical 3.99 3.72 3.72 Implementing Agency

87 Computer Training Others 0.16 0.16 0.16 Implementing Agency

88 Swachh Vidyalaya awareness Swachh 0.34 0.34 0.34 Implementing Agency program in Schools Vidyalay Skill 0.19 Implementing Agency 89 Workshop on CSR at Pune Development 0.19 0.19 90 Burdwan District TT Association Sports 0.15 0.15 0.15 Implementing Agency

91 Miscellaneous Expenditure Others 0.05 0.05 0.05 Implementing Agency

92 Community Development CD 7.35 7.35 7.35 Implementing Agency

93 Construction of Classroom of Infrastructure 5.49 (–) 5.49 (–) 5.49 Implementing Agency Ramakrishna Ashrama Vidyapith

94 Strengthening of Road from Sand Infrastructure 18.51 17.51 17.51 Implementing Agency Bunker to Bhara High School, Satgram Area

95 Construction of community Infrastructure 1.26 1.23 1.23 Implementing Agency centre at Jemeri Colliery, Satgram

96 New Talab Ghat at Birala Village Infrastructure 1.00 0.99 0.99 Implementing Agency (Chasapara), Satgram Area

97 Construction of Toilets and Infrastructure 14.4 9.25 9.25 Implementing Agency Drinking water provision with water purification in all schools situated in and around Coalfields of ECL

98 Laying of pipeline from officer Water 8 7.47 7.47 Implementing Agency colony to bunker & bunker to pond Supply at Beliadathan Village

99 Medical Camp at Satgram Area Medical 1 0.35 0.35 Implementing Agency

100 Construction of 8 nos of Bathing Infrastructure 3.5 3.46 3.46 Implementing Agency ghat (2 nos each at 4 nos. pond) at Khottadih Village under Khottadih OCP.

101 Construction of 8 nos. shed in Infrastructure 7.46 7.42 7.42 Implementing Agency four nos. of football ground at Khottadih Village.

102 Construction of boundary wall & Infrastructure 3.24 3.24 3.24 Implementing Agency gate around Shyama Smrity Vidyamandir Primary School at Khottadih Village under Khottadih OCP. 69 ANNUAL REPORT 2014-15

103 Laying of Pipeline from Ajoy River Water 14.99 12.21 12.21 Implementing Agency to Khottadih Village for Supply of Supply drinking water to villages at Pandaveswar

104 Construction of rest shelter and Infrastructure 7.99 7.96 7.96 Implementing Agency approach road at Pandavsthan at Pandaveswar.

105 Medical Camp at Pandaveshwar Medical 1.08 1.08 1.08 Implementing Agency Area

106 Various CSR Activities Infrastructure 2.79 2.79 2.79 Implementing Agency

107 Construction of Toilets and Infrastructure 16.78 16.14 16.14 Implementing Agency Drinking water provision with water purification in all schools situated in and around Coalfields of ECL

108 Medical Camp at Sripur Area Medical 0.4 0.4 0.4 Implementing Agency

109 Providing P.C.C road at Dhamna- Infrastructure 5.46 5.4 5.40 Implementing Agency Chikania Village through SPM Area

110 Construction of PCC road (500m) Infrastructure 9.1 9.1 9.10 Implementing Agency at Damgarha Road to Yadav Tola and Kole Tola through SPM Area

111 Construction of PCC road (450m) Infrastructure 8.2 7.75 7.75 Implementing Agency from Harijan Tola to Sona Pokhara Pond at Chitra through SPM Area

112 Installation of 31 Nos of Hand Water 20.76 20.76 20.76 Implementing Agency Pump in Nearby Villages Through Supply SPM Area

113 Medical Camp at SP Mines Medical 4.08 4.08 4.08 Implementing Agency

114 Construction of Toilets and Infrastructure 12.4 7.67 7.67 Implementing Agency Drinking water provision with water purification in all schools situated in and around Coalfields of ECL

115 Connstruction of Community Infrastructure 1.12 1.3 1.30 Implementing Agency Toilet at Ruidas Para near ICDS centre of Kajoragram.

116 Construction of Water Tank at Water 0.74 0.72 0.72 Implementing Agency Mugdhi Para Primary School at Supply Dakshinkhanda.

70 EASTERN COALFIELDS LIMITED

117 Construction of Burning Shed & Infrastructure 2.33 2.65 2.65 Implementing Agency Masonary Ghat at Goidhaba Samsan of Damari Bandh.

118 Construction of Burning Shed & Infrastructure 2.76 2.27 2.27 Implementing Agency Masonary Ghat at Kodmo Samsan of Dakshinda.

119 Construction of Community Toilet Infrastructure 1.34 1.28 1.28 Implementing Agency near D.S.A Club at Dakshinkhanda.

120 Construction of Well at Ruidas Infrastructure 1.12 1.07 1.07 Implementing Agency Para near ICDS Centre of Kajoragram.

121 Construction of Bus Stand Shed Infrastructure 1.03 1.01 1.01 Implementing Agency at Kajora Bazar Near High School of Kajora Gram.

122 Construction of Community Hall Infrastructure 2.2 2.2 2.2 Implementing Agency at Pasrascol Village

123 Community Hall Construction. Infrastructure 0.06 0.06 0.06 Implementing Agency

124 Medical Activity at Kajora Area Medical 3.8 3.8 3.8 Implementing Agency

125 Construction of Community Hall Infrastructure 7.05 7.05 7.05 Implementing Agency at Alkusha ST Village near Bhamuria Colliery

126 Construction of Community Hall Infrastructure 7.2 7.2 7.2 Implementing Agency at Bhamuria Bauri Para near Dharmasthan

127 Construction of Toilets and Infrastructure 10.4 8.72 8.72 Implementing Agency Drinking water provision with water purification in all schools situated in and around Coalfields of ECL

128 Construction of Cement Concrete Infrastructure 5.46 5.19 5.19 Implementing Agency Road Mithani Village (Dompara and Kewarpara and heightening of guard wall Mithani Village),

129 Water Supply Scheme for Hijuli Water 23.5 9.14 9.14 Implementing Agency Village under Parbelia Group, Supply Sodepur Area

130 Hire charges of MMV Medical 1.89 1.89 1.89 Implementing Agency

131 World Diabetic Day Medical 0.02 0.02 0.02 Implementing Agency 71 ANNUAL REPORT 2014-15

132 World Aids Day Medical 0.06 0.06 0.06 Implementing Agency

133 Baby Show Day Medical 0.21 0.21 0.21 Implementing Agency

134 Hydrocele Camp Medicine Medical 0.12 0.12 0.12 Implementing Agency

135 Bidhan Chandra Pratibandhi Medical 10.29 10.29 10.29 Implementing Agency Karma Kendra for donation to Handicap person

136 Pipeline work at Shiv Danga Water 8.04 4.7 4.7 Implementing Agency village from Mandman Colliery Supply V.T. Pump for supply of water

137 P/F G.I. pipeline for water supply Water 3.11 2.97 2.97 Implementing Agency at Amdangal village near Supply Chapapur Colliery

138 P/F of G.I. Pipeline at Jhilnglar Water 4.11 3.37 3.37 Implementing Agency tola Ramkanali village for supply Supply of water near Hariajam Colliery

139 P/L of G.I. Pipeline from V.T Pump Water 7.78 6.99 6.99 Implementing Agency to Kuhuka village for supply of Supply water near Hariajam Colliery

140 P/L pipeline from Mugma More Water 5.36 3.74 3.74 Implementing Agency Barrack to Muchipara and Supply Kalimali Colony for supply of water near Mandman Colliery

141 P/L G.I. Pipeline at different Water 11.87 10.73 10.73 Implementing Agency places for Pandra village near Supply Harijam Colliery

142 Development of playing ground & Infrastructure 9.4 8.44 8.44 Implementing Agency heightening of B/wall including drainage system at JKR high school and Ginni Devi Girls High School at Chikunda

143 P/L GI pipeline from Sasanberia Water 13.63 11.58 11.58 Implementing Agency Panchayat office to Danga para Supply village

72 EASTERN COALFIELDS LIMITED

144 P/F G.I.Pipeline for water Supply Water 1.69 1.36 1.36 Implementing Agency to Ramkanali Village near Supply Chapapur Colliery

145 Construction of Toilets and Infrastructure 16.78 16.62 16.62 Implementing Agency Drinking water provision with water purification in all schools situated in and around Coalfields of ECL

146 Medical Camp at Mugma Area Medical 0.14 0.14 0.14 Implementing Agency

147 TA/DA to Attend Seminar in Delhi Others 0.22 0.22 0.22 Implementing Agency related to CSR

Total Expenditure 2485.69

73 ANNUAL REPORT 2014-15

ANNEXURE - VI REPORT ON CORPORATE GOVERNANCE:

(1) Philosophy:

Corporate Governance may be defined as a set of systems, processes and principles which ensure that a company is governed in the best interest of all stakeholders. ECL firmly believes that Corporate Governance is a culture under which an organization is nurtured and flourishes by using its core values and the means by which it fulfills the public trust and its stakeholders’ expectations. At ECL, it is not just a compliance with laws and ethical standards instead it is an important business investment which is not only necessary to preserve our reputation but also crucial for obtaining and retaining our business.

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 2(45) of the Companies Act, 2013 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 2 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 2015, Board comprised 6 Directors, out of which 4 were whole-time Functional Directors including Chairman-cum-Mg. Director.

The Directors bring to Board wide range of experience and skills.

DIRECTORS:

During the year 2014-15, Shri Rakesh Sinha was the Chairman-cum-Managing Director of the Company. The other Directors on the Board of the Company during 2014-15 were Shri A. Chatterjee (till 28.02.2015), Shri V. Peddanna, Shri K.K. Gautam (till 28.02.2015), Shri Subrata Chaudhuri (till 23.06.2014), Shri S.K. Mohanty (till 23.06.2014), Shri S.M. Lodha (till 23.06.2014), Shri S.M. Sharma (till 08.09.2014), Shri S. Chakravarty, Shri C.K. Dey (till 28.02.2015), Shri Ramesh Chandra (till 30.06.2014), Shri K.S. Patro and Shri B.R. Reddy (from 30.09.2014). Shri C.K. Dey, Director

74 EASTERN COALFIELDS LIMITED

(Finance), CIL was appointed as part time official Director on the Board of ECL w.e.f 19.03.2015. In addition, Shri A.K. Gupta, Chief Operations Manager, Eastern Railway was appointed as permanent invitee to the Board w.e.f 14.08.2014

Brief profile of Directors is enclosed as Annexure - B.

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 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 2015, 9 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

24.05.2014 5 5 2 1 5 3 12 9

11.07.2014 4 4 2 2 2 2 8 8

28.07.2014 4 4 2 2 2 2 8 8

12.09.2014 4 4 2 2 1 1 7 7

02.11.2014 5 5 2 1 1 1 8 7

06.12.2014 5 5 2 2 1 - 8 7

25.12.2014 5 5 2 2 1 1 8 8

27.01.2015 5 5 2 2 1 - 8 7

25.02.2015 5 4 2 1 1 1 8 6

75 ANNUAL REPORT 2014-15

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 Director :

1 Shri Rakesh Sinha Chairman-cum-Mg. Director 9 9 NIL

2 Shri S. Chakravarty Director (Technical) Opn. 9 8 NIL

3 Shri Chandan Kumar Dey Director (Finance) (upto 28.02.2015) 9 9 NIL

4 Shri Ramesh Chandra Director (Technical) P&P (upto 30.06.2015) 1 1 NIL

5 Shri K.S Patro Director (Personnel) 9 9 NIL

6 Shri B.R. Reddy Director (Technical) P&P (w.e.f 30.09.2015) 5 5 NIL

Part-time Official Directors:

7 Shri V. Peddanna Director, MoC 9 7 NIL

8 Shri A. Chatterjee Director (Finance), CIL (upto 28.02.2015) 9 8 2

9 Shri Chandan Kumar Dey Director (Finance), CIL (w.e.f 19.03.2015) - - 2

Special Director appointed by BIFR:

10 Shri K.K. Gautam (upto 28.02.2015) 9 7 NIL

Part Time Non-Official Director:

11 Shri Subrata Chaudhuri (upto 23.06.2014) 1 - NIL

12 Shri S.K. Mohanty (upto 23.06.2014) 1 - NIL

13 Shri S.M. Lodha (upto 23.06.2014) 1 1 6

14 Shri S.M. Sharma (upto 08.09.2014) 3 3 NIL

76 EASTERN COALFIELDS LIMITED

(C) Remuneration of the Director :

(i) Functional Directors :

Remuneration for the year 2014-15

(Amount in ` )

Name Designation All elements of remuneration package (i.e. salary, pension, Other Total P.F., gratuity etc.) benefits Shri Rakesh Sinha Chairman-cum-Mg. Director 2,623,068.00 59,237.00 2,682,305.00 Shri S. Chakravarty Director (Technical) Opn. 2,329,031.00 87,746.00 2,416,777.0 Shri C. K. Dey Director (Finance) 2,519,248.00 208,395.00 2,727,643.00 (Upto 28.02.2015) Shri Ramesh Chandra Director (Technical) P&P 968,005.00 157,802.00 1,125,807.00 (upto 30.06.2014) Shri K.S. Patro Director (Personnel) 2,261,248.00 254,693.00 2,515,941.00 Shri B.R. Reddy Director (Technical) P&P 1,183,103.00 20,375.00 1,203,478.00 (From 30.09.2014)

(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 1,70,000 2 Shri Subrata Chaudhuri 10,000 3 Shri S.K. Mohanty 10,000 4 Shri S.M. Lodha 20,000 5 Shri S.M. Sharma 60,000 TOTAL 2,70,000

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.

77 ANNUAL REPORT 2014-15

Scope of Audit Committee: 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 section 134 (5) of the Companies Act, 2013; 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 non-payment 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 audit. 14. Any difficulties encountered during audit work including any restrictions on the scope of activities or access to required information. 15. Reviewing the follow up action taken on the recommendations of Committee on Public Undertakings (COPU) of the Parliament.

78 EASTERN COALFIELDS LIMITED

Composition: Audit Committee comprised of 2 (Two) part-time official directors viz. Shri V. Peddanna, and Shri A. Chatterjee (upto 28.02.2015), 4 (four) part-time non-official directors viz. S/Shri S. Chaudhuri (upto 23.06.2014), S.K. Mohanty (upto 23.06.2014), S.M. Lodha (upto 23.06.2014) and S.M. Sharma (upto 08.09.2014), 1 (one) Special Director, BIFR viz. Shri K.K. Gautam (upto 28.02.2015) and 2 (two) Functional Director viz. Shri S. Chakravarty, Director (Technical) Operations and Shri K.S Patro, Director (Personnel), ECL w.e.f 25.02.2015. Shri S.M. Sharma, part-time non-official director was Chairman of the Committee for first 2 meetings (63rd and 64th Audit Committee Meetings held on 24.05.2014 and 28.07.2014 respectively) and Shri V. Peddanna, part-time official director was Chairman for rest of the meetings. Director (Finance) and Chief Manager (F)/HOD (IA) are the permanent invitee to the Audit Committee and Company Secretary is Secretary to the Committee. 6 (six) meetings of the Audit Committee were held during the financial year 2014-15. 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 24.04.2014 / 1 1 2 1 5 5 8 7 24.05.2014 28.07.2014 1 1 2 2 2 2 5 5 12.09.2014 1 1 2 2 1 1 4 4 01.11.2014 1 1 2 2 1 1 4 4 06.12.2014 1 1 2 2 1 - 4 3

27.01.2015 1 1 2 2 1 - 4 3

Audit Committee Attendance: Details of number of Audit Committee meetings attended by each of the members are given below:-

Sl. No. Members Meeting held during No. of respective tenure of Meetings members attended.

1. Shri S.M. Sharma (upto 08.09.2014) 2 2 2. Shri V. Peddanna 6 5 3. Shri A. Chatterjee (upto 28.02.2015) 6 6 4. Shri K.K. Gautam (upto 28.02.2015) 6 4 5. Shri S.K. Mohanty (upto 23.06.2014) 1 1 6. Shri S.M. Lodha (upto 23.06.2014) 1 1 7. Shri S. Chaudhuri (upto 23.06.2014) 1 1 8. Shri S. Chakravarty 6 6 9. Shri K.S. Patro (w.e.f 25.02.2015) - -

79 ANNUAL REPORT 2014-15

[B] 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. The Committee for Evaluation, Appraisal and Approval of Projects was re-constituted by including Shri B.R. Reddy, Director (Technical) P&P, ECL w.e.f 02.11.2014. During the year 2014-15, 6 (six) meetings of the Committee for Evaluation, Appraisal and Approval of Projects were held i.e. on 19.05.2014, 28.07.2014, 12.09.2014, 01.11.2014, 06.12.2014 & 25.12.2014.

Shri S. Chakravarty, Director (Technical) Opn. ECL was Chairman for the first meeting of FY-2014-15 (13th Meeting of Sub-committee of ECL Board on Evaluation, Appraisal and Approval of projects held on 19.05.2014). For rest of the meetings held during the FY- 2014-15, Shri V. Peddanna, Director, Ministry of Coal was the Chairman. 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 Subrata Chaudhuri (upto 23.06.2014) 1 - 2 Shri V. Peddanna 6 5 3 Shri K.K. Gautam (upto 28.02.2015) 6 4 4 Shri S.M. Lodha (upto 23.06.2014) 1 - 5 Shri S. Chakravarty 6 6 6 Shri C.K. Dey (upto 28.02.2015) 6 5 7 Shri Ramesh Chandra (upto 30.06.2014) 1 1 8 Shri B.R. Reddy (w.e.f 02.11.2014) 2 2

[C] Committee on C.S.R. & Sustainability. In the 261st meeting of the ECL Board, CSR & Sustainability Committee was constituted. The Committee was re-constituted by including Shri C.K. Dey, Director (Finance), ECL (upto 28.02.2015) and Shri B.R. Reddy, Director (Technical) P&P w.e.f 02.11.2014. The Chairman of the Committee was Shri Rakesh Sinha. During the year 2014-15, 2 (two) meetings of the Committee on C.S.R. & Sustainability were held i.e. on 11.07.2014 & 02.11.2014. The details of members and their attendance at meeting are given below:

Sl. Members Meeting held during No. of Meetings No. respective tenure of members attended 1 Shri Rakesh Sinha 2 2 2 Shri V. Peddanna 2 2 3 Shri K.K. Gautam (upto 28.02.2015) 2 2 4 Shri Subrata Chaudhuri (upto 23.06.2014) - - 5 Shri S. K. Mohanty (upto 23.06.2014) - - 6 Shri S.M. Sharma (upto 08.09.2014) 1 1 7 Shri S. Chakravarty 2 2 8 Shri Ramesh Chandra (upto 30.06.2014) - - 9 Shri K.S. Patro 2 2 10 Shri C.K. Dey (from 02.11.2014 to 28.02.2015) - - 11 Shri B.R. Reddy (from 02.11.2014) - -

80 EASTERN COALFIELDS LIMITED

Statutory Auditors: Under Section 139 of the Companies Act, 2013 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 2014-15: Statutory Auditors: 1. M/s. M Choudhury & Co., 162, Jodhpur Park, Kolkata-700068. Branch Auditors: 2. M/s. U S Saha & Co., 228 Kamalalaya Centre, 2nd Floor, 156 A Lenin Sarani, Kolkata-700013. 3. M/s R P Boobna & Co., Karnani Estate, 209 AJC Bose Road, 2nd Floor, Room No.-87, Kolkata-700017 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. Roy Ghosh & Associates, 39, Kalna Road, Badamtala, Burdwan-713401

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 2011-12 21.05.20120 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), Operations, ECL (member of Audit Committee) Shri A.K. Soni, D (F), ECL

2012-13 25.05.2013 Sanctoria Shri Rakesh Sinha, CMD, ECL 11:00 AM Shri D. Sett, Chief Manager(F), CIL, Representative of CIL, Chairman, CIL and Director (Finance), CIL Shri S.M. Sharma, Chairman, - Audit Committee Shri S.K. Srivastava, D (P), ECL Shri S. Chakravarty, D (T) Operation, ECL (member of audit committee) Shri C.K. Dey, D(F), ECL

2013-14 14.06.2014 Sanctoria Shri Rakesh Sinha, CMD, ECL 12:15 PM Shri S. Manna, Chief Manager(F), CIL, Representative of CIL, Chairman, - CIL and Director (Finance), CIL Shri S.M. Sharma, Chairman, Audit Committee

81 ANNUAL REPORT 2014-15

Shri K.K. Gautam, Special Director, BIFR Shri S. Chakravarty, D (T) Operation, ECL (member of audit committee) Shri C.K. Dey, D(F), ECL, Shri Ramesh Chandra, D (T) P&P, Shri K.S. Patro, D(P).

Extra-ordinary General Meeting

Special Year Date & Time Place Attendance Resolution, if any 2014-15 16.12.2014 Sanctoria Shri Rakesh Sinha, CMD, ECL Change in 11:00 AM Shri M. Viswanathan, Dy. GM (F)/ Memorandum and Articles of Company Secretary, CIL, Representative Association of of CIL and Director (Finance), CIL. ECL for Shri K.K. Gautam, Special Director, BIFR increasing the Shri C.K. Dey, D(F), ECL, Authorised Shri K.S. Patro, D(P), Share Capital. Shri B.R. Reddy, D (T) P&P.

Change of 2014-15 25.03.2015 Sanctoria Shri Rakesh Sinha, CMD, ECL Articles of 11:00 AM Ms. Shweta Loharuka, Association Asst. Manager (F) CIL, Representative of ECL in line of CIL, Chairman, CIL and with Director (Finance), CIL. Companies Act, 2013 Shri K.S. Patro, D(P), Shri B.R. Reddy, D (T) P&P.

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.

(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, 2013.

82 EASTERN COALFIELDS LIMITED

(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.

(e) CEO/CFO Certification: A certificate duly signed by Shri Subir Dutta, GM (Finance) I/C and Shri Rakesh Sinha, Chairman- cum-Mg. Director was placed in the 279th Board Meeting is annexed to the Corporate Governance Report as Annexure-C.

(f) Compliance with applicable laws: During the Financial Year 2014-15, all the laws applicable to the company has been complied.

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, 2015 are furnished as an Annexure to Directors’ Report. Comments of the Comptroller and Auditor General of India under section 143(6) of the Companies Act, 2013 on the accounts of Eastern Coalfields Limited for the year ended 31st March, 2015 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 behavior in all its business activities. The Board has put in place mechanism of reporting illegal or unethical behavior. 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. During 2014-15, no person has been prevented from direct access to the Chairperson of the Audit Committee.

11. The actual date of submission to DPE of completed data-sheet for PE Survey was 29.08.2014.

83 ANNUAL REPORT 2014-15

ANNEXURE - B

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, and Memberships of Board/Committees are given below.

Sri Rakesh Sinha born on 17th May 1955, graduated in mining engineering in 1977 from National Institute of Technology, Raipur. He also holds 1st Class Mine Manager 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.

Sri 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 18.3.2007 coal production reached to a level of 1.0 L. Te, which was the ever highest production from a single project on a day in the history of Coal India Limited. Subsequently in 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.

Sri Sinha was selected for the post of Director (Technical), Bharat Coking Coal Limited in September 2007 and joined BCCL as Director (Technical) Operation in June 2008. Under his dynamic leadership there were remarkable improvements in different spheres at BCCL.

Sri Rakesh Sinha after joining ECL as Chairman-cum-Managing Director took a number of initiatives in many spheres of the Company like mechanization of underground workings, rationalization of underground manpower and machinery, early finalization of a number of contracts for expansion of OCPs, early procurement of production related items, strict disciplinary steps leading to better law & order situation, improved industrial relation minimizing obstruction in production & despatch activities, due to which the Company could achieve a sustainable level of production of more than 30 million tones. The Company continued to excel in all the fields of production, productivity, off-take etc reaching new heights and creating new records year after year. In turn the financial health of the company also improved drastically by registering substantial profits. After completing all the formalities, official declaration of coming out of BIFR was issued by BIFR Court in February 2015. Because of his firm commitment and broad vision, during 2014-15 ECL achieved 40 Million Te of coal production with a mentionable positive growth to the tune of 11% over last year adding golden chapter in the history of ECL. It may also be mentioned here that ECL was the only Subsidiary of CIL which not only achieved the targets for all the three parameters of coal production, off-take and OB removal, but has also registered substantial positive growth in all the parameters.

Shri Rakesh Sinha has been conferred upon a number of prestigious Awards like “CEO with HR Orientation” by IPE, “Life Time Achievement Award” by Indian Mine Managers Association, “Udyog Rattan Award” by Institute of Economic Studies (IES), “Indira Gandhi Rajbhasa Award” given away by Hon’ble President of India, “Excellent Administrator in Coal and Mine of the Year Award” by R.K. HIV AIDS Research & Care Centre etc.

84 EASTERN COALFIELDS LIMITED

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 35 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.

Shri Chandan Kumar Dey, Director (Finance), Coal India Limited was born in Kolkata on 10th September, 1958. Prior to joining Coal India Limited on 1st March, 2015, Shri Dey served Eastern Coalfields Limited as Director (Finance) from 01.02.2013 to 28.02.2015.

Shri Dey completed his schooling from Kendriya Vidyalaya in 1975 and graduated from Calcutta University in Commerce with Honours in Accountancy in the year 1978. Shri Dey is a Chartered Accountant and Cost Accountant.

Shri Dey has wide experience of over 34 years and served in different organisations of repute including Lovelock & Lewes, Dunlop India Limited, NICCO Group, Balmer Lawrie & Co. Limited and Oil India Limited.

During his professional career Shri Dey headed the Accounts, Treasury, Taxation and Internal Audit functions and served as Chief Finance Officer. Shri Dey also headed the operations of Balmer Lawrie (UK) Limited for 3 years as Chief Operating officer based in United Kingdom. Shri Dey has travelled extensively within India and Foreign countries like UK, France, Germany, Switzerland, USA, Hong Kong, UAE and the Central Asian Republic on official assignments.

Shri Dey is interested in reading books and loves music.

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 26 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, 6 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 2014-15

Shri K.S. Patro, born on 3rd April, 1958, comes from a learned family of Ganjam, Odisha. Sri Patro, a graduate from KSUB College, Bhanjanagar (Odisha) with Economics Honours with Post Graduate Degree in Labour & Social Welfare.

Sri Patro joined Coal India Limited in 1982 as trainee Welfare Officer and posted to Eastern Coalfields Limited (ECL), a subsidiary company of Coal India Limited. At ECL he worked in different capacities, heading the Personnel Department in Units & Area level dealing with the multifarious functions related to Industrial Relation, workers welfare, Personnel matters especially wages & Salary administration, promotion etc.. During his long tenure at ECL he confronted a lot of delicate situations especially during major mining accidents involving fatality at New Kenda mines (1994), Shyamsundarpur Colliery and Bankola Colliery and with his rich field knowledge handled them effectively. After serving ECL for more than 27 years (1982-2009), joined Central Coalfields Limited (CCL) in the capacity of Chief Manager (Personnel) in 2009.

On being promoted during 2011 as General Manager (Personnel & IR and Welfare) headed Personnel Department of CCL, Ranchi. CCL, a company with manpower of more than 50000, he established a harmonious liaison with Functional Trade Unions at Company level and maintained rapport with the nearby villages with the sole aim of Corporate Social Responsibility. With his innovative and positive approach the IR scenario of company was not only cordial but also positively contributed to the growth of the company in production, productivity, offtake, profitability and helped in creating high motivational environment among the workers, Project Affected Peoples and villagers at large. Sri Patro always concerned about the welfare of the employees contributed towards improvement of the socio-economic condition of the people living in periphery of company with thrust toward weaker section of society under Community Development (CD) / corporate social Responsibility (CSR). At CCL he played a major role in adoption of 03 nos. of villages namely Lupungtoli, Seemartoli and Zari(The birth place of Martyr of 1971 Bangladesh war Sir Albert Ekka) under CSR, keeping a personal touch of all-round development of these villages with a special emphasis on health, education and welfare. He possesses a knack to visit workers colonies to know about their well-being.

On rejoining ECL he is instrumental in accelerating welfare and CSR activities. Opening of Nursing School at CH Kalla, procurement of latest medical appliances for Kalla and Sanctoria Hospital, upgradation of Canteen with AC and other facilities, fast disposal of compassionate appointment cases and appointment against land looser cases, opening of DAV school at Jhanjra & Mugma Area, opening of skill development centre at Salanpur, Kenda, Rajmahal, Bankola etc are amongst some of the achievements during FY-2014-15. Besides this, recruitment of paramedical staffs, statutory personnel and other essential manpower along with imparting skill development training to existing manpower and training to skilled manpower of the company to mainstream production, productivity and safety are also notable.

With a vast experience of 33 years in Coal industry and innovative positive approach towards the work his achievements were instrumental in his success story and on being selected as Director (Personnel) of ECL assumed charge from 01st November, 2013 with a determination to bring comprehensive improvement of standard of living of the employees their families and the larger family of ECL consisting of the villagers, the poor and the downtrodden.

86 EASTERN COALFIELDS LIMITED

Sri B.R. Reddy, S/o Late B. Ranga Reddy, 56 Years graduated in Mining Engineering from Kothagudam School of Mines, Andhra Pradesh in the Year 1981 and has done M. Tech in Opencast Mining in the Year 1992 from Indian School of Mines, Dhanbad. He holds 1st Class Mine Managers’ Certificate of Competency (Coal). Moreover, he has also obtained Diploma in Industrial Relation and Personnel Management (DIRPM) from Nagpur University.

He joined Coal India Limited on 5th September, 1981 as Jr. Executive Trainee and worked in different capacities in various mines of Ballarpur Area of Western Coalfields Limited till June, 2003. Thereafter, he got transferred and joined at Central Coalfields Limited, Ranchi in July, 2003. He has served as Project Officer of Tapin North, Parej East OCP, as A.G.M. of Dhori Area till 31-10-2007. Later he took the charge of Dhori Area as General Manager. During the tenure of General Manager in different Areas like Dhori, Argada, N.K. Area of C.C.L., he has contributed a lot for solving I.R. problems, opening New Open Cast Mines etc. Due to his sincere effort, the Purandih Greenfield O.C. of C.C.L. could be opened. He has submitted a paper on dragline working in the National Seminar on Opencast Mine, which was appreciated by all.

He has visited China in the Year 2009 to attend Coal Trans Seminar and also visited Sweden, Switzerland and Germany in the Year 2014 on Advance Management Programmes.

Due to his managerial skill, capacity and administrative acumen, he has been selected as Director (Technical)/ Project & Planning of Eastern Coalfields Limited and has taken over the charge on 30th September, 2014.

87 ANNUAL REPORT 2014-15

ANNEXURE - C

To, The Board of Directors,

CEO AND CFO CERTIFICATION

We, Rakesh Sinha, Chairman and Subir Dutta, General Manager (Finance) I/C, responsible for the finance function certify that:

a. We have reviewed financial statements and the cash flow statement for the year ended 31st March, 2015 and that to the best of our knowledge and belief:

i. These statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading.

ii. These statements together present a true and fair view of the company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations.

b. To the best of our knowledge and belief, no transactions entered into by the company during the quarter ended 31st March, 2015 are fraudulent, illegal or violate of the company’s code of conduct.

c. We accept responsibility for establishing and maintaining internal controls for financial reporting and we have evaluated the effectiveness of internal control systems of the company pertaining to financial reporting and we have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which they are aware and the steps they have taken or propose to take to rectify these deficiencies.

d. We have indicated to the auditors and the Audit committee:

i. There has not been any significant changes in internal control over financial reporting during the quarter under reference:

ii. There has not been any significant changes in accounting policies during the year ; and

iii. We are not aware of any instance of significant fraud with involvement therein of the management or an employee having a significant role in the company’s internal control system over financial reporting.

Date: 26-05-2015

General Manager (Finance) I/C Chairman-cum-Managing Director

88 EASTERN COALFIELDS LIMITED

ANNEXURE - VII

M. CHOUDHURY & CO, 162, Jodhpur Park, Kolkata - 700 068 CHARTERED ACCOUNTANTS Email : [email protected] Ph.: (033) 2429-2417, 2248-0668

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 (the Company) for the year ended 31st March, 2015.

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. The shares of the Company are not listed in any stock exchange and 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 efficacy with which the management has conducted the affairs of the Company.

M. CHOUDHURY & CO. Chartered Accountants Registration No. 302186E Date : 3rd June, 2015 Place : Kolkata Sd/- (D. Choudhury ) Partner Membership No. 052066

89 ANNUAL REPORT 2014-15

ANNEXURE - VIII

Mitul Jain & Associates Mobile : + 91 91639 09775 3, Maharshi Debendra Road, 3rd Floor, Kolkata – 700 007 E-mail : [email protected]

SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31ST March 2015 [Pursuant to section 204(1) of the Companies Act, 2013 and rule No. 9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]

To, The Members, Eastern Coalfields Limited. Sanctoria, Dishergarh. West Bengal-713333.

We have examined the registers, records, books and papers of Eastern Coalfields Limited for the financial year ended on 31st March 2015. I have checked all the documents according to the provisions of: a) The Companies Act, 2013 (the Act) and the rules made there under including any re•enactment thereof; b) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made there under; c) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under; d) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; e) The Securities and Exchange Board of India Act, 1992 f) Other laws specifically applicable to the Company.

We have also examined compliance with the applicable clauses of the following: a) Secretarial Standards issued by The Institute of Company Secretaries of India. b) Guidelines on Corporate Governance of CPSE, 2010.

I) In our opinion, based on test check carried out by us, verification of records produced to us and according to the information furnished to us by the Company, its Company Secretary and Officers, the Company has complied with the provisions of the Companies Act, 2013 (“the Act”) and Rules made under the Act including any re-enactment thereof and the Memorandum and Articles of Association of the Company, subject to the provisions as stated specifically herein, with regard to: a) maintenance of various- Statutory Registers and documents and making necessary entries therein; b) filing of the requisite forms and returns with the Registrar of Companies and Central Government within the

90 EASTERN COALFIELDS LIMITED

time prescribed under the Act and rules made there under; c) convening and holding of the meetings of Directors and Committees of the Directors including passing of the resolutions by Circulation; d) convening and holding of 39th Annual General Meeting on 14th June, 2014; e) minutes of the proceedings of General Meeting and meetings of the Board and its committees were properly recorded in loose leaf form which are being bound in book form at regular intervals; f) appointment and remuneration of Auditors and Cost Auditors; g) transfers and transmission of shares; h) composition and terms of reference of Audit Committee; i) service of documents by the Company on its Members and Auditors; j) borrowings and registration, modification and satisfaction of charges; k) deposit of both the employees and employers contribution relating to Provident Fund with the Trusts created for the purpose; I) form of Balance Sheet, statement of Profit & Loss Account and disclosures to be made therein as per the Act; m) contracts, Common Seal, Registered Office, and publication of name of the Company, and n) generally all other applicable provisions of the Act and the Rules made there under that Act.

II) We further state that: a) The Directors have disclosed their interest and concerns in contracts and arrangements, shareholdings and directorships in other companies and interests in other entities as and when required and their disclosures have been noted and recorded by the Board; b) The Directors have complied with the disclosure requirements in respect of their eligibility of appointments, their being independent and compliance with the Code of Conduct for Directors and Senior Management Personnel; c) The Company has obtained all necessary approvals under the various provisions of the Act; and d) There was no prosecution initiated and no fines or penalties were imposed during the year under review under the Companies Act, 2013, Securities Exchange Board of India Act, 1992, Listing Agreement, Foreign Exchange Management Act, 1992 and Rules, Regulation and Guidelines framed under these Acts against/ on the Company, its Directors and Officers.

III) We further report that: a. The Company has complied with the applicable provisions of the Companies Act, 2013, the Rules made there under including re-enactment thereof,

91 ANNUAL REPORT 2014-15 b) The Company has complied with the provisions of the Securities Exchange Board of India (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 including the provisions with regard to disclosures and maintenance of records required under the Regulations; c) The Company has complied with the provisions of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 including provisions with regard to disclosures and maintenance of records required under the Regulations; d) The Company has complied with Guidelines on Corporate Governance for Central Public Sector Enterprises, 2010 subject to the provision in relation to composition of Board of Directors in the Company and appointment of independent directors in the material subsidiaries of the Company.

Place:- Kolkata. Date:- 3rd June, 2015 For Mitul Jain & Associates Practicing Company Secretaries

(Mitul Jain) C.P. No.:- 10850

92 EASTERN COALFIELDS LIMITED

Annexure - IX

Form No. MGT-9

EXTRACT OF ANNUAL RETURN as on the financial year ended on 31.03.2015 [Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS: i) CIN:-U10101WB1975GOI030295 ii) Registration Date:-01.11.1975 iii) Name of the Company:- Eastern Coalfields Limited iv) Category/Sub-Category of the Company:- Public Limited Company u/s. 2(71) of Companies Act - 2013. v) Address of the Registered office and contact details:- CMD’s Office, Sanctoria, Post-Dishergarh, Dist. Burdwan, PIN-713333, West Bengal. vi) Whether listed company Yes / No: No vii) Name, Address and Contact details of Registrar and Transfer Agent, if any: NA II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-

Sl. Name and Description of main NIC Code of the % to total turnover of the No. products / services Product/ service company

1 Coal 0510 100 %

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES –

Holding/ % of Applicable Sl. Name and address of the Section of CIN/GLN Subsidiary/ shares No. company Companies Associate held Act 2013 1 Coal India Limited, 10 NS L23109WB1973GOI028844 Holding 100% 2(46) Road, Kolkata-700001 Company

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) a. Category-wise Share Holding

93 ANNUAL REPORT 2014-15

Total Share holding 100 Nil

`

`

94 EASTERN COALFIELDS LIMITED

b Shareholding of Promoters

Sl Shareholder’s Shareholding at the beginning of the year Share holding at the end of the year % change in No. Name shareholding No. of Shares % of total %of Shares No. of % of total %of Shares during the Shares of Pledged / Shares Shares of Pledged / year the encumbered the encumbered company to total company to total shares shares 1 Coal India 22184497 99.99 Nil 22184497 99.99 Nil Nil Limited TOTAL 22184497 99.99 Nil 22184497 99.99 Nil Nil c. Change in Promoters’ Shareholding (please specify, if there is no change): There is no change in Promoters’ Shareholding during the year. The details are given below: Sl. Particulars Shareholding at the beginning of the year Cumulative Shareholding during No. the year No. of shares % of total shares of No. of shares % of total shares the company of the company 1 At the beginning of the year 22184497 99.99 22184497 99.99 2 Date wise Increase / Decrease in Nil Nil Nil Nil Promoters Shareholding during the year specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus/ sweat equity etc): 3 At the End of the year 22184497 99.99 22184497 99.99 d. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs): Sl. For Each of the Top 10 Shareholders Shareholding at the beginning of the Cumulative Shareholding during the No. year year No. of shares % of total shares No. of shares % of total shares of the company of the company 1 At the beginning of the year 2 Date wise Increase / Decrease in Shareholding during the year specifying the reasons for increase / decrease (e.g. allotment / transfer / bonus / sweat equity etc): NIL 3 At the End of the year ( or on the date of separation, if separated during the year)

e. Shareholding of Directors and Key Managerial Personnel:

Sl. For Each of the Directors and Shareholding at the beginning of the Cumulative Shareholding during the year No. KMP year

No. of shares % of total shares No. of shares % of total shares of of the company the company 1 At the beginning of the year 1 0.01 1 0.01 2 Date wise Increase / Decrease in Nil Nil Nil Nil Shareholding during the year specifying the reasons for increase / decrease (e.g.allotment / transfer / bonus/ sweat equity etc): 3 At the End of the year 1 0.01 1 0.01

95 ANNUAL REPORT 2014-15

V. INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment (` in Crore) Particulars Secured Unsecured Deposits Total Loans Loans Indebtedness excluding deposits Indebtedness at the beginning of the financial year i) Principal Amount 164.33 164.33 ii) Interest due but not paid iii) Interest accrued but not due Total (i+ii+iii) 164.33 164.33 Change in Indebtedness during the financial year àAddition 7.89 7.89 àReduction 5.75 5.75 Net Change 2.14 2.14 Indebtedness at the end of the financial year i) Principal Amount ii) Interest due but not paid 166.47 166.47 iii) Interest accrued but not due

Total (i+ii+iii) 166.47 166.47 VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL a. Remuneration to Managing Director, Whole-time Directors and/or Manager: (Figures in ` ) Sl. Particulars of Name of MD/WTD/Manager Total No. Remuneration Shri Shri S. Shri K.S. Shri B.R. Shri Shri C.K. Amount Rakesh Chakravarty, Patro, Reddy, Ramesh Dey, Sinha Director Director Director Chandra, Director Chairman- (Technical) (Personnel), (Technical) Director (Finance), cum-Mg. Opn., (WTD) (WTD) P&P, (Technical), (WTD) Director (WTD) P&P, (WTD) upto w.e.f upto 28.2.15 30.9.14 30.6.14 1 Gross salary (a) Salary as 2241838.00 1991001.00 1932905.00 1014473.00 880928.00 2200757.00 10261902.00 per provisions contained in section 17(1) of the Income- tax Act, 1961 (b) Value of 381230.00 338030.00 328343.00 168630.00 87077.00 318491.00 1621801.00 perquisites u/s 17(2) Income- tax Act, 1961

(c) Profits in Nil Nil Nil Nil Nil Nil Nil lieu of salary under section 17(3) Income- tax Act, 1961 2 Stock Option Nil Nil Nil Nil Nil Nil Nil 3 Sweat Equity Nil Nil Nil Nil Nil Nil Nil 4 Commission Nil Nil Nil Nil Nil Nil Nil -as % of profit -others, specify 5 Others, please 59327.00 87746.00 254693.00 20375.00 157802.00 208395.00 788248.00 specify 6 Total (A) 2682305.00 2416777.00 2515941.00 1203478.00 1125807.00 2727643.00 12671951.00 7 Ceiling as per 179.97 crore the Act 96 EASTERN COALFIELDS LIMITED

b. Remuneration to other directors: (Figures in ` ) Sl. Particulars of Name of Directors No. Remuneration Shri S. Shri S.K. Shri S.M. Shri S.M. Shri K.K. Total Amount Chaudhuri Mohanty Lodha Sharma Gautam 1 Independent Directors àFee for attending 10,000.00 10,000.00 20,000.00 60,000.00 1,00,000.00 board / committee meetings àCommission Nil Nil Nil Nil Nil àOthers, specify Nil Nil Nil Nil Nil Total (1) 10,000.00 10,000.00 20,000.00 60,000.00 1,00,000.00 2 Other Non- Executive Directors àFee for attending 1,70,000.00 1,70,000.00 board / committee meetings àCommission Nil Nil àOthers, specify Nil Nil 3 Total (2) 1,70,000.00 1,70,000.00 4 Total (B)=(1+2) 10,000.00 10,000.00 20,000.00 60,000.00 1,70,000.00 2,70,000.00 5 Total Managerial 1,29,41,951.00 Remuneration (A+B) 6 Overall Ceiling as 18.00 crore per the Act

c. Remuneration to key managerial personnel other than MD/Manager/WTD (Figures in ` ) Sl. Particulars of Remuneration Key Managerial Total No. Personnel Company Secretary 1 Gross salary (a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 2098158.00 2098158.00 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 381988.00 381988.00 (c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 Nil Nil Stock Option Nil Nil Sweat Equity Nil Nil Commission - as % of profit Nil Nil - Others, specify… Others, please specify 9021.00 9021.00 Total 2480146.00 2480146.00

97 ANNUAL REPORT 2014-15

VII. Penalties / punishment/ compounding of offences:

Type Section of Brief Details of Authority Appeal made, the Description Penalty / [RD / NCLT if any (give Companies Punishment/ / COURT] Details) Act Compounding fees imposed a. Company Penalty Punishment NIL Compounding b. Directors Penalty Punishment NIL Compounding c. Other officers in default Penalty Punishment NIL Compounding

98 EASTERN COALFIELDS LIMITED

ANNEXURE - X 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 2014-15 2013-14

(A) Foreign Exchange Used 1. CIF value of imports (a) Raw materials 0.00 0.00 (b) Components, stores & spares 671.00 1011.00 (c) Capital goods. 17625.00 0.00

2. Traveling / Training Expenses 13.00 54.00

3. Expenses on know-how and Foreign Consultancy 0.00 0.00

4. Pension to the Foreigners 0.00 0.00

5. Others 10652.00 1294.00

Total 28961.00 2359.00

(B) Foreign Exchange Earned – Nil Nil

99 ANNUAL REPORT 2014-15

ANNEXURE - XI

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.

100 EASTERN COALFIELDS LIMITED

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. : 87 / CA / LA-1 / Accounts / ECL / 2014-15 Dated : 11th June, 2015

To The Chairman-cum-Managing Director, Eastern Coalfields Limited, Sanctoria, West Bengal

Sub. : Comments of the Comptroller & Auditor General of India under Section 143(6)(b) of the Companies Act, 2013 on the Accounts of Eastern Coalfields Limited for the year ended 31st March, 2015.

Sir, I forward herewith the Comments of the Comptroller & Auditor General of India under Section 143(6)(b) of the Companies Act, 2013 on the Accounts of Eastern Coalfields Limited for the year ended 31st March, 2015. The receipt of this letter may please be acknowledged.

Encl. As stated. Yours faithfully,

sd/- Place : Kolkata (Yashodhara Ray Chaudhuri) Dated : 11.06.2015 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",

101 ANNUAL REPORT 2014-15

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143 (6)(b) OF THE COMPANIES ACT, 2013 ON THE ACCOUNTS OF EASTERN COALFIELDS LIMITED FOR THE YEAR ENDED 31ST MARCH, 2015

The preparation of financial statements of Eastern Coalfields Limited for the year ended 31st March, 2015 in accordance with the financial reporting framework prescribed under the Companies Act, 2013 is the responsibility of the management of the company. The statutory auditor/auditors appointed by the Comptroller and Auditor General of India under Section 139(5) of the Act is/are responsible for expressing opinion on the financial statements under section 143 of the Act based on independent audit in accordance with standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 03.06.2015.

I, on the behalf of the Comptroller and Auditor General of India have conducted a supple- mentary audit under section 143(6)(a) of the Act of the financial statements of Eastern Coalfields Limited for the year ended 31 March, 2015. This supplementary audit has been carried out independently without access to the working papers of the statutory auditors and is limited pri- marily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records. On the basis of my audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditors' report.

For and on behalf of the Place : Kolkata, Comptroller & Auditor General of India Dated : 11.06.2015 Sd/- (Yashodhara Ray Chaudhuri) Pr. Director of Commercial Audit & Ex-Officio Member, Audit Board - II Kolkata.

102 EASTERN COALFIELDS LIMITED

AUDITORS' REPORT TO THE MEMBERS OF EASTERN COALFIELDS LIMITED

Sr.No. Auditor's Report Management's Reply 1. Report on the Financial Statements We have audited the accompanying Financial Statements of EASTERN It is a statement of COALFIELDS LIMITED (“the Company”) which comprise the Balance Sheet as fact. at 31st March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, in which are incorporated the accounts of: (a) Head Office and 7 Areas/Units audited by us and (b) 19 Areas/Units audited by the Branch Auditors appointed under section 139 of the Companies Act 2013 (the “Act”), and a summary of the significant accounting policies and other explanatory information.

2. Management’s Responsibility for the Financial Statements The Company’s Board of Directors is responsible for the matters in Section It is a statement of 134(5) of the Act with respect to the preparation of these financial statements fact. that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgements and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free of material misstatement, whether due to fraud or error.

Auditor's Responsibility :

3. Our responsibility is to express an opinion on these financial statements based It is a statement of on our audit. We have taken into account the provisions of the Act, the accounting fact. and auditing standards and matters which are required to be included in the Audit Report under the provisions of the Act and the Rules made there under.

4. We conducted our audit in accordance with the Standards on Auditing specified It is a statement of under section 143(10) of the Act. These standards require that we comply with fact. the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the It is a statement of amounts and disclosures in the financial statements. The procedures selected fact. depend on the auditor’s judgement, including the assessment of risks of material 103 ANNUAL REPORT 2014-15

misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company’s preparation of the financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of the financial statements.

6. We believe that the audit evidence we have obtained is sufficient and appropriate It is a statement of to provide a basis for our audit opinion on the financial statements. fact.

Opinion : 7. In our opinion and to the best of our information and according to the explanations It is a statement of given to us, the aforesaid financial statements give the information required by fact. the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i. In the case of the Balance Sheet, of the state of affairs of the Company as at 31st It is a statement of March 2015; fact. ii. In the case of the statement of Profit and Loss, of the profit of the Company for It is a statement of the year ended on that date; and fact. iii. In the case of Cash Flow Statement, of the cash flows of the Company for the It is a statement of year ended on that date. fact.

Report on Other Legal and Regulatory Requirements 8. a. As required by the Companies (Auditor’s Report) Order, 2015 issued by the It is a statement of Government of India in terms of sub-section (11) of Section 143 of the Act, we fact. give in Annexure ‘A’ to this report a statement on the matters specified in paragraphs 3 and 4 of the said order.

b. In compliance with the directions, issued by the Comptroller and Auditor General It is a statement of of India under section 143(5) of the Companies Act 2013, the actions taken on fact. the Directions and its impact on the accounts and financial statements of the Company are placed in Annexure ‘B’ to this Report. 9. As required by sub-section (3) of Section 143 of the Act, we report that: a. We have sought and obtained all the information and explanations which, to the It is a statement of best of our knowledge and belief, were necessary for the purpose of our audit. fact. b. In our opinion, proper books of account as required by law have been kept by the It is a statement of Company so far as appears from our examination of those books and proper fact. returns adequate for the purpose of our audit have been received from the Areas/ Units not visited by us.

104 EASTERN COALFIELDS LIMITED c. The reports on the accounts of the Areas/Units of the Company audited under It is a statement of sub-section (8) of Section 143 of the Act by the Area/Unit Auditors had been fact. sent to us under the proviso to that sub-section and have been dealt with by us in preparing this report. d. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow It is a statement of Statement dealt with by this report are in agreement with the books of account fact. and returns received from Areas/Units not visited by us. e. In our opinion, the aforesaid financial statements comply with the Accounting It is a statement of Standards specified in Section 133 of the Act read with Rule 7 of the Companies fact. (Accounts) Rules 2014. f. There are no observations or comments on financial transactions or matters It is a statement of which have any adverse effect on the functioning of the Company. fact. g. On the basis of written representations received from the Directors none of the It is a statement of Directors is disqualified as on 31st March 2015 from being appointed as a Director fact.fact. in terms of sub-section (2) of Section 164 of the Act. h. There are no qualifications, reservations or adverse remarks relating to the It is a statement of maintenance of accounts and other matters connected therewith. fact. i. 1. The Company has disclosed the contingent liabilities in Note No.14 G. We It is a statement of have not come across any other pending litigation which would impact its financial fact. position.

2. The Company was not required to make provision under the applicable law or It is a statement of accounting standards for material foreseeable losses on long term contracts. fact.

3. Transfer of funds to the Investor Education and Protection Fund was not It is a statement of applicable to the Company. fact.

105 ANNUAL REPORT 2014-15

ANNEXURE 'A' TO THE AUDITORS' REPORT ON EASTERN COALFIELDS LIMITED FOR THE YEAR ENDED 31ST MARCH, 2015 (Referred to in Paragraph 8(a) of our Report of even date) Sl. AUDITORS' REPORT MANAGEMENT'S No. REPLY 1. a. The Company is maintaining proper records showing full particulars, including It is a statement of quantitative details and situation of fixed assets. fact.

b. Fixed assets, except Plant & Machinery each worth less than ` 1 Lakh, have It is a statement of been physically verified by the management at reasonable intervals and no fact. material discrepancies were noticed on such verification. According to the explanations given to us by the management discrepancies on physical verification in respect of such Plant & Machinery each worth less than ` 1 Lakh will not be material.

2. a. Physical verification of inventory has been conducted at reasonable intervals It is a statement of by the management. fact.

b. The procedures of physical verification of inventory followed by the management It is a statement of appear to be reasonable and adequate in relation to the size of the Company fact. and the nature of its business.

c. The Company is maintaining proper records of inventory and no material It is a statement of discrepancies were noticed on physical verification. fact.

3. The Company has not granted any loans, secured or unsecured, to companies, It is a statement of firms or other parties covered in the register maintained under Section 189 of the fact. Act.

4. The Company has an adequate internal control system commensurate with its It is a statement of size and the nature of its business for the purchase of inventory and fixed assets fact. and for the sale of goods. We did not come across continuing failure to correct major weaknesses in internal control system.

5. The Company has not accepted deposits attracting the directives issued by the It is a statement of Reserve Bank of India and the provisions of Sections 73 to 76 or any other fact. relevant provisions of the Act and the rules framed there under. No order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal requiring compliance.

6. In respect of cost records specified by the Central Government under sub-section It is a statement of (1) of Section 148 of the Act, the Company has made and maintained such fact. accounts and records.

106 EASTERN COALFIELDS LIMITED

7. a. The Company is generally regular in depositing undisputed statutory dues, It is a statement of including provident fund, employees’ state insurance, income tax, sales tax, fact. wealth tax, service tax, customs duty, excise duty, value added tax, cess and other statutory dues, as applicable, with the appropriate authorities. There is no arrear of outstanding statutory dues as at the last day of the financial year for a period of more than six months from the date they became payable. b. The amounts involved and the forum where dispute is pending in respect of dues It is a statement of of income tax or sales tax or wealth tax or service tax or customs duty or excise fact. However, these duty or value added tax or cess that have not been deposited on account of any disputed dues are dispute are given in the Table below: included in contin- gent liability (claim Nature of Amount Period to Forum against the company Dues (` In which the where Sl. Name of Statute not acknowledged as No. Lakhs) amount dispute is debts) shown in relate pending Additional Notes to 1 West Bengal Rural West Bengal 14203.11 1997-98 JCCT,Asansol Accounts under Employment and Rural Emplo- clause no. 14.7(b). Production Act, yment Cess 1973 14978.46 1998-99 to WBTT 2000-01

11760.39 2001-02 to SPL.COMM WB 2008-09 COM TAX

2 West Bengal 1973 West 2704.08 1997-98 J.C.ASANSOL Primary Education Bengal Act, 1973 Primary Edu- 8291.92 1998-99 to WBTT cation Cess 2000-01

2940.10 2001-02 to SPL.COMM WB 2008-09 COM TAX 3 West Bengal VAT Act, 2003 WB VAT/CST 9.96 1998-99 WBTT

456.17 2004-05,09- 10 & 10-11 Sr JCCT,Asn

3827.95 2005-06 to Revision Board 2007-08 4 Finance Act, 1994 Demand of 3653.51 2006-07 to Service Tax 2010-11 CESTAT, Kolkata on Sizing

5 Central Excise act Disallowance 601.94 Mar.'11 - 1944 of exemption Mar.'12 CESTAT, Kolkata on boiler 895.16 April '12 to consumption Sept. '13 CESTAT, Kolkata

107 ANNUAL REPORT 2014-15

6 Bihar Finance Act Excess TOT 191.01 1989-90 Tribunal Court 1981 & Central included in Sales Tax Act,1956 the GTO for BST differ- ence against Rail despatch, Tax on stock transfer

Demand of 952.68 1990-91 to Tribunal Court Arrear Cess 1993-94 Tax on free issue of coal. Short Forms. Tax on Stock Transfer

Short 267.60 1994-95 Tribunal Court Payment

Tax on stock 520.69 1995-96 Tribunal Court write-off.Tax on stock transfer & free issue of Coal

Tax on 91.97 1997-98 to ACCT, Deoghar shortage of 99-2000 & forms and 2001-02 disallowance of claim of grade slip- page

Disallowance 13.54 2000-01 J.C.C.T., Dumka of Claim on Grade Slippage & GTO enhanced for free issue of coal

GTO 161.75 2002-03 Tribunal Court, Ranchi enhanced. Short Forms.Tax on sale of Scrap,etc.

108 EASTERN COALFIELDS LIMITED

GTO 706.74 2003-04 J.C.C.T.(Appeal), Dumka enhanced. Short Forms.Tax on sale of Scrap,etc.

GTO 1601.48 2004-05 to Commissioner of Commercial enhanced. 2010-11 Tax, Ranchi Disallowance of Forms.

7 Bihar Finance Act Sales Tax 43.71 1988-89 to Dy. CCT, Dumka 1981 & Central 92-93 Sales Tax Act, 8.80 1988-89 to Dy. CCT, Pakur 1956 92-93 32.67 1988-89 to ACCT, Godda 92-93 54.83 1993-94 Dy. CCT (Appeal), Dumka

68.43 1993-94 to ACCT, Godda 95-96 3.00 1994-95 to Dy. CCT, Pakur 96-97 280.79 1994-95 to Dy. CCT (Appeal), Dumka 95-96 328.14 1996-97 to ACCT, Godda 99-00 792.78 1996-97 to Dy. CCT, Dumka 00-01 21.18 1998-99 ACCT, Godda 5280.11 2005-06 JCCT, Dumka 6243.05 2006-07 JCCT, Dumka 319.53 2008-09 JCCT, Dumka 179.26 2009-10 DCCT, Godda 109.22 2010-11 DCCT, Godda 501.18 April 2006 to Tribunal Ranchi August 2013

8 MMRD Act, 1957 Royalty on 684.50 April 1986 to Hon’ble High Court, Ranchi, Coal 2005-06 D.C. Deoghar Royalty 23.40 1990-91 Certificate Officer, Dumka

8.78 1997-98 Hon’ble High Court, Ranchi

2856.14 1997-98 Hon’ble High

109 ANNUAL REPORT 2014-15

49.80 1997-98 Hon’ble Supreme Court of India 1020.66 2007-08 & Certificate Officer, Dumka 2008-09 17.06 1990-91 Certificate Officer, Dumka 3.09 1996-97 Certificate Officer, Dumka 45.64 2011-12 Certificate Officer, Dumka 17.83 01.05.73 to Certificate Officer, Dumka 31.12.97 9. Excise 250.90 March 2011 Central Excise, Ranchi to Feb 2013 10. Land & 235.97 1991-96 Dy. Commissioner, Godda Revenue 11. JSEB Penal 10.66 2013-14 JSEB, Ranchi Charge 12. Afforestation 88.80 2014-15 DFO, Godda 13. Govt. Land 508.80 2005-13 DC, Godda 14. Income Tax 79.03 2007-15 Asst. Commissioner Of Income (TDS) Tax (TDS), Dhanbad

Sl. Name of Dues Notice No. Date ` In Lakhs Forum where dispute is No. pending 15. VAT 1978-79 1500 27.07.89 6.02 JCCT (Appeal), Dhanbad 1979-80 1502 27.07.89 3.26 JCCT (Appeal), Dhanbad 1978-88 1734 04.11.91 2.84 JCCT (Appeal), Dhanbad 1990-91 8294 09.09.97 1.59 JCCT (Appeal), Dhanbad 1992-93 8298 09.09.97 7.77 JCCT (Appeal), Dhanbad 1990-91 8425 10.09.07 1.44 Dy. CCT, Chirkunda Circle 1992-93 8429 10.09.07 2.37 Dy. CCT, Chirkunda Circle 1993-94 694 30.04.98 3.83 JCCT (Appeal), Dhanbad 1993-94 691 30.04.98 8.40 JCCT (Appeal), Dhanbad 1994-95 6063 01.12.98 0.96 JCCT (Appeal), Dhanbad 1995-96 2520 01.06.99 11.23 JCCT (Appeal), Dhanbad 1996-97 885 09.02.00 11.26 JCCT (Appeal), Dhanbad 1999-00 1168 29.06.04 60.72 JCCT (Appeal), Dhanbad 2000-01 1757 27.12.05 125.21 JCCT (Appeal), Dhanbad 2002-03 7913 25.01.07 3.44 JCCT (Appeal), Dhanbad 2003-04 10772 22.03.10 12.19 Dy. CCT, Chirkunda Circle 2006-07 17037 21.03.09 41.93 Dy. CCT, Chirkunda Circle 2007-08 8115 16.02.10 157.56 Dy. CCT, Chirkunda Circle 2008-09 896 20.05.11 23.07 Dy. CCT, Chirkunda Circle 2009-10 3824 18.12.12 126.13 JCCT (Appeal), Dhanbad 2011-12 6814 13.02.15 53.36 JCCT (Appeal), Dhanbad

110 EASTERN COALFIELDS LIMITED

16. CST 1978-79 1499 27.07.89 1.04 JCCT (Appeal), Dhanbad 1979-80 1501 27.07.89 23.35 JCCT (Appeal), Dhanbad 1978-88 1734 04.11.91 0.75 JCCT (Appeal), Dhanbad 1990-91 8295 09.09.97 11.82 JCCT (Appeal), Dhanbad 1992-93 8299 09.09.97 29.32 JCCT (Appeal), Dhanbad 1990-91 8426 10.09.07 7.33 Dy. CCT, Chirkunda Circle 1992-93 8430 10.09.07 37.97 Dy. CCT, Chirkunda Circle 1993-94 693 30.04.98 265.16 JCCT (Appeal), Dhanbad 1993-94 692 30.04.98 1.41 JCCT (Appeal), Dhanbad 1994-95 6044 01.12.98 75.13 JCCT (Appeal), Dhanbad 1995-96 2519 01.06.99 278.31 JCCT (Appeal), Dhanbad 1999-00 1169 29.06.04 73.90 JCCT (Appeal), Dhanbad 2000-01 1758 27.12.05 211.25 JCCT (Appeal), Dhanbad 2002-03 7914 25.01.07 0.72 JCCT (Appeal), Dhanbad 2003-04 10773 22.03.10 11.47 Dy. CCT, Chirkunda Circle 2005-06 12561 27.11.12 176.31 Dy. CCT, Chirkunda Circle 2006-07 17036 21.03.09 245.15 Dy. CCT, Chirkunda Circle 2007-08 8116 16.02.10 418.79 Dy. CCT, Chirkunda Circle 2008-09 897 20.05.11 230.99 Dy. CCT, Chirkunda Circle 2009-10 3825 18.12.12 519.95 Dy. CCT, Chirkunda Circle 2010-11 5376 27.09.13 62.39 Dy. CCT, Chirkunda Circle 2011-12 6815 13.02.15 5.02 JCCT (Appeal), Dhanbad 17. Royalty 1994-95 68/94-95 4.03 Certificate Officer, Dhanbad 1994-95 81/94-95 5.83 Certificate Officer, Dhanbad 1999-00 36/99-00 40.02 Certificate Officer, Dhanbad

c.The amount required to be transferred to Investor Education and Protection It is a statement of Fund in accordance with the provisions of the Companies Act 1956 and rules fact. made there under was not applicable to the company.

8. The Company’s accumulated losses at the end of the financial year are not less It is a statement of than fifty per cent of its net worth. It has not incurred cash losses in this financial fact. year and in the immediately preceding financial year.

9. The Company has no dues to financial institutions or banks or debenture holders. It is a statement of fact.

111 ANNUAL REPORT 2014-15

10. The Company has not given guarantee for loans, taken by others from banks or It is a statement of financial institutions, the terms and conditions whereof are prejudicial to the fact. interest of the Company.

11. Term Loans were applied for the purpose for which they were obtained. It is a statement of fact.

12. As represented to us by the management and based on our examination in the It is a statement of normal course of audit, no fraud on or by the company has been noticed or fact. reported during the year.

112 EASTERN COALFIELDS LIMITED

ANNEXURE ‘B’ to the AUDITORS’ REPORT ON EASTERN COALFIELDS LIMITED FOR THE YEAR ENDED 31ST MARCH 2015 (Referred to in Paragraph 8(b) of our report of even date)

Directions under section 143(5) of the Companies Act, 2013

Sl. Auditors' Report Auditors' Comment Management Reply No.

1. If the Company has been selected for This clause is not applicable to the It is a statement of disinvestment, a complete status report Company since it has not been selected fact. in terms of valuation of Assets (including for disinvestment. intangible assets and land) and Liabilities (included Committed & General Reserves) may be examined including the mode and present stage of disinvestment process.

2. Please report whether there are any There has been no case of waiver, write- It is a statement of cases of waiver/write-off of debts/loans/ off of debts, loans etc. fact. interest etc. If yes, the reasons there for and the amounts involved.

3. Whether proper records are maintained There is no inventory lying with third It is a statement of for inventories lying with third parties and parties and no assets have been received fact. assets received as gift from Government as gift from Government or other or other authorities. authorities.

4. A report on age-wise analysis of pending The details of pending legal cases are It is a statement of legal/arbitration cases including the furnished in ANNEXURE I. There is no fact. reasons of pendency and existence/ case of arbitration applicable to the effectiveness of a monitoring mechanism Company. The expenditure on all legal for expenditure on all legal cases (foreign cases is monitored by the Legal and local) may be given. Department of the Company. The monitoring system appears to be effective.

113 ANNUAL REPORT 2014-15

ANNEXURE ‘B’ to the AUDITORS’ REPORT ON EASTERN COALFIELDS LIMITED FOR THE YEAR ENDED 31ST MARCH 2015

ADDITIONAL DIRECTIONS under section 143(5) of the Companies Act 2013

Sl. Auditors' Report Auditors' Comment Management Reply No.

1. Provisioning done in case of unpaid The position of GCV dues is given It is a statement of amount on GCV issues may be below: fact. examined. Latest GCV dues position of 31.03.14 31.03.15 concerned subsidiaries of CIL as on ` ` 31.03.2015 is required to be examined. Unpaid Amount *16.04 Cr. Nil Provision Made Nil Nil It may also be confirmed whether the *Received on 11.04.2014 annual accounts have been prepared/ The Annual Accounts have been maintained as per the new Companies Act prepared as per the new Companies 2013. Act 2013.

2. Valuation of inventories with compliance to Accounting Standard 2 in entirety.

a. Whether stock measurement was done Stock Measurements were done using It is a statement of keeping in view the contour map? the ground contour maps. fact.

Whether physical stock measurement Physical stock measurements are reports are accompanied by contour map usually accompanied by contour maps. in all cases?

Whether new heap, if any, created during New heaps, whenever created, have been the year has got the approval of the approved by the competent authority. competent authority?

b. Whether there is age wise analysis of Age wise analysis of non-vendible coal It is a statement of non-vendible stock of coal? was not done by the Company. fact. The stock of non-vendible coal is Is there any substantial variance (beyond There has not been substantial variation considered at NIL +/- 5%) found on measurement of non- on measurement of non-vendible stock value. vendible stock of coal? If yes, has it been of coal. properly recorded with reasons?

Whether valuation of such stock was as Such stock was valued as per the laid per the laid down accounting practice by down accounting practice by the the competent authority competent authority.

c. As per the new policy adopted by CIL The contractors who are purchasing It is a statement of as well as Government of India, HSD is diesel at bulk rate are allowed price fact. to be procured at the projects/mines at escalation at bulk rate instead of retail bulk rate. Whether the contractors who rate. are purchasing diesel at bulk rate are allowed price escalation at bulk rate instead of retail rate?

114 EASTERN COALFIELDS LIMITED

· d. Whether provisions in Consolidated This clause is not applicable to the It is a statement of Financial Statements (CFS) under the Company. fact. new Companies Act 2013 are made with a view to representing true and fair view of financial condition and operating result of the business entity?

e. Special emphasis should be given to This clause is not applicable to the It is a statement of satisfy that the CFS has been prepared Company. fact. in accordance with AS21, 23 and 27.

3. It may be verified that the capital Capital expenditure incurred on assets It is a statement of expenditure incurred on assets not not belonging to the company has been fact. belonging to the company has been properly identified and accounted for as properly identified and accounted for as per established accounting principles. per established accounting principles.

4. Special emphasis on compliance with Observations/comments raised by the It is a statement of respect to observations/comments raised Statutory Auditors and Government fact. by Statutory Auditors/Government Auditors in 2013-14 have been complied Auditors in 2013-14 and also in the Review with. Report on Half Yearly Accounts for the Observations/comments in the Review year 2014-15. Report on Half Yearly Accounts for the year 2014-15 have been complied with.

5. It may be verified that the third party Third party confirmations as such are not It is a statement of confirmations on debtors, bank balances, taken by the Company in respect of fact. accounts receivable, accounts payable Sundry Debtors. However, regular and loans and advances has been done reconciliation is done jointly with the in full? If not, party-wise including respective debtor companies on an percentage of such unconfirmed amounts ongoing basis and these statements are may also be reported. Similarly, whether signed by officials of both the companies. separate Escrow Fund Accounts have been opened/maintained or earmarked in Third party confirmations in respect of the Bank in CIL and its subsidiaries for bank balances have been obtained in all the specific purpose? the cases.

In respect of accounts receivable, accounts payable and loans and advances balance confirmation letters were sent out by the Company to the parties concerned. Till these balance confirmations are received by the Company, the book balances are considered as correct. Separate Escrow Fund Accounts have been maintained in the Bank by the Company.

115 0 ANNUAL REPORT 2014-15 0.00 0.00 0.08 0.03 0.00 2015 18.92 80.19 91.95 17.41 164.33 265.86 172.71 551.02 345.73 377.81 4269.42 3135.23 4871.90 6618.71 5053.31 1565.40 1426.88 4563.88 7265.35 4587.05 2678.30 4871.90 -2716.00 0.00 0.00 0.13 0.03 0.00 17.99 30.36 16.33 99.86 2014 681.29 106.87 510.99 450.52 270.65 205.25 2218.45 4042.55 3155.46 5797.26 4413.47 1383.79 1720.01 3852.00 6498.46 5491.33 1007.13 3155.46 -3804.82 0.00 0.00 0.15 0.03 0.00 17.95 61.32 20.21 17.43 50.87 674.17 864.20 442.33 182.14 188.98 634.78 2013 2218.45 4670.27 2903.79 5535.55 4280.72 1254.83 3582.13 1949.53 6345.14 5710.36 2903.79 -4677.05 0.00 0.00 5.51 0.18 0.03 0.00 51.28 46.22 17.68 21.04 83.28 670.18 460.77 622.93 176.23 460.77 2012 -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 in Crores). 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 BALANCE SHEET AS AT 31ST. MARCH. 0.00 0.00 0.41 0.00 40.63 35.45 2006 708.33 404.49 276.07 143.17 -659.54 -659.54 2218.45 1668.15 4831.90 3568.83 1263.07 1314.80 2173.98 4137.63 -5254.47 -1963.65 OURCES OF FUNDS : NOTE : FIGURES FOR THE YEAR 2010-11, 2011-12, 2012-13 & 2013-14 ARE AS PER REVISED SCHEDULE VI 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 TOTAL 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 : 116 EASTERN COALFIELDS LIMITED - - - - 2.18 84.84 24.85 19.66 98.35 73.42 894.25 797.82 475.78 101.22 930.65 444.37 226.36 174.42 398.59 419.04 (174.62) 1139.40 5850.50 9217.40 1780.23 -4637.53 (3498.13) 10018.54 10997.63 2014-15 in Crore).

( 0.00 0.00 0.00 0.00 0.00 0.00 0.98 0.00 0.00 (5.64) (3.36) 76.47 92.98 73.84 712.91 735.36 463.77 742.15 265.34 213.50 210.00 127.70 353.21 872.23 (131.57) 8887.79 9595.06 5495.74 8292.42 1302.64 -5509.76 -4637.53 2013-14 0.00 0.00 0.00 0.00 0.00 0.00 8.48 0.00 0.00 0.00 (1.45) 60.23 (31.49) 117.12 548.56 649.95 433.97 672.36 261.29 203.20 260.92 273.13 (168.92) (324.59) 9191.91 9571.55 5329.99 7672.92 1898.63 1655.54 -7165.30 -5509.76 2012-13 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 0.01 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 0.16 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 0.09 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 0.07 0.29 0.00 -3.27 44.72 16.22 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 PROFIT AND LOSS. 2007-08 0.00 0.00 0.09 5.28 0.41 3.64 2.90 -7.52 22.21 45.34 34.32 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 0.00 0.03 2.68 -8.96 -2.89 -8.10 99.94 51.41 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 2005-06 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 - MAT CREDIT ENTITLEMENT - 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, 2012-13 AND 2013-14 ARE AS PER REVISED SCHEDULE VI 117 ANNUAL REPORT 2014-15 7.29 0.00 0.08 0.00 0.25 3.04 0.53 2.45 32.72 40.01 94.05 35.10 38.47 12.12 2015 68681 6.87 0.00 0.06 0.00 0.28 4.86 0.48 2.12 29.18 36.05 85.76 31.05 36.25 10.96 2014 71826 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 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 90470 OPERATIONAL STATISTICS 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 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.

118 EASTERN COALFIELDS LIMITED 1.58 2.18 1.69 2.26 0.43 2.85 0.04 0.11 4589.75 1553.42 2014-15 1.18 3.52 2.15 2.89 0.38 2.91 0.31 -0.43 2528.15 -1586.37 2013-14 1.11 4.66 3.93 5.20 0.37 3.10 0.30 -0.27 1973.68 -2458.60 2012-13 0.83 2.99 3.87 0.66 3.78 0.30 -0.14 48.29 171.10 -4946.85 0.52 1.76 2.13 0.84 3.70 0.30 -4.46 -0.11 2010-11 2011-12 -1320.30 -5908.98 0.44 1.61 1.93 0.74 3.99 0.30 -1.67 -0.11 -3135.66 -6015.55 0.30 1.25 1.58 0.62 4.00 0.31 -1.09 -0.11 -3526.75 -6348.95 0.36 1.33 1.70 0.80 4.26 0.30 -1.37 -0.15 -2318.43 -4239.86 0.50 1.29 1.65 1.01 4.59 0.30 -2.52 -0.23 -1395.59 -2925.42 2006-07 2007-08 2008-09 2009-10 0.53 1.41 1.80 0.96 4.61 0.32 -2.23 -0.23 2005-06 -1534.04 -3036.02 CAPITAL EMPLOYED, NET WORTH AND FINANCIAL RATIOS. in Crore) in Crore) PARTICULARS. CAPITAL EMPLOYED. ( NET WORTH ( 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. NOTE : FIGURES FOR THE YEAR 2010-11, 2011-12, 2012-13 AND 2013-14 ARE AS PER REVISED SCHEDULE VI

119 ANNUAL REPORT 2014-15

EASTERN COALFIELDS LIMITED BALANCE SHEET (CONSOLIDATED) As at 31st March, 2015 (` in Crores) AS AT AS AT NOTES 31.03.2015 31.03.2014

I EQUITY AND LIABILITIES (1) Shareholders’ Fund a) ShareCapital 1 4,269.42 2,218.45 b) Reserves & Surplus 2 (2716.00) (3804.82) 1,553.42 (1,586.37)

(2) Non-Current Liabilities a) Long Term Borrowing 3 164.33 681.29 b) Deferred Tax Liabilities -- -- c) Other Long Term Liabilities 4 18.92 17.99 d) Long Term Provisions 5 3,135.23 4,042.55

3,318.48 4,741.83

(3) Minority Interest - -

(4) Current Liabilities - a) Short Term Borrowing 6 129.01 1,714.51 b) Trade Payables 7 72.56 63.86 c) Other Current Liabilities 8 3,334.07 2,854.20 d) Short Term Provisions 9 1,051.41 858.76 4,587.05 5,491.33

Total 9,458.95 8,646.79

II ASSETS (1) Non-Current Assets (a) Fixed Assets i) Tangible Assets - Gross Block 10A 5,276.83 4,863.43 Less : Depreciation, Impairment & Provisions 3,843.25 3,607.44 Net Carrying Value 1,433.58 1,255.99

ii) Intangible Assets - Gross Block 10A 1,341.88 1,295.49 Less : Depreciation, Impairment & Provisions 1,210.06 1,167.69 Net Carrying Value 131.82 127.80

iii) Capital Work-in-Progress 10B 265.86 106.87

120 EASTERN COALFIELDS LIMITED

AS AT AS AT NOTES 31.03.2015 31.03.2014 iv) Intangible Assets under Development 10C 80.19 30.36

(b) Non-Current Investment 11 0.08 0.13 (c) Deferred Tax Asset (Net) 91.95 510.99 (d) Long Term Loans & Advances 12 172.71 99.86 (e) Other Non-Current Assets 13 17.41 16.33

(2) Current Assets (a) Current Investments 14 0.03 0.03 (b) Inventories 15 551.02 450.52 (c) Trade Receivables 16 1,426.88 1,720.01 (d) Cash & Bank Balance 17 4,563.88 3,852.00 (e) Short Term Loans & Advances 18 377.81 205.25 (f) Other Current Assets 19 345.73 270.65 7,265.35 6,498.46

Total 9,458.95 8,646.79

Significant Accounting Policies 33 Additional Notes on Accounts 34 The Notes referred to above form an integral part of Balance Sheet

V. R. Reddy Subir Dutta B. R. Reddy Rakesh Sinha Company Secretary GM (Finance) (I/C) Director (Tech.) P&P Chairman-cum-Managing Director DIN : 07001710 DIN : 02186695

(D. Choudhury) Partner Membership No. : 052066 for and on behalf of M. Choudhury & Co. Date : 26th May, 2015 Chartered Accountants. Place : Kolkata Firm Regn. No.: 30218E

121 ANNUAL REPORT 2014-15

EASTERN COALFIELDS LIMITED STATEMENT OF PROFIT & LOSS For the Year Ended 31st March, 2015 (` in Crore) Notes For the Year For the Year ended 31.03.15 ended 31.03.14

INCOME

A. Sale of Coal, coke etc. 20 13,413.84 11,945.92

Less:- Excise Duty (655.62) (595.80) Other Levies (2,739.68) (2,462.33) Net Sales 10,018.54 8,887.79 B. Other Operating Revenue (Net) 221.99 221.66 (I) Revenue from Operations (A+B) 10,240.53 9,109.45 (II) Other Income 21 672.26 491.25 Total Revenue (I + II) 10,912.79 9,600.70 EXPENSES Cost of Material Consumed 22 797.82 735.36 Change in inventories of finished goods work in progress and Stock in trade 23 (84.84) 5.64 Employee benefit expenses 24 5,850.50 5,512.57 Power & Fuel 475.78 463.77 Coporate Social Responsibility Expenses 25 24.85 --- Repairs 26 101.22 76.47 Contractual Expenses 27 1,025.03 820.53 Finance Costs 28 -- -- Depreciation/amortization/Impairment 244.79 213.50 Provisions 29 99.58 (131.57) Write off 30 73.42 127.70 Overburden Removal Adjustment 174.42 210.00 Other Expenditure 31 349.99 264.09

Total Expenses 9,132.56 8,298.06

Profit/(Loss) before Prior Period, exceptional and extraordinary items and tax 1,780.23 1,302.64

Prior Period Adjustment { charges/ (Incomes) } 32 (2.18) 3.36 Exceptional Items - -

122 EASTERN COALFIELDS LIMITED

Notes For the Year For the Year ended 31.03.15 ended 31.03.14

Profit/(Loss) before extraordinary items and tax 1,782.41 1,299.28

Extraordinary Items { charges/ (Incomes) } - -

Profit/(Loss) before Tax 1,782.41 1,299.28

Less : Tax Expense - Current year 398.59 73.84 - Add: MAT Credit Entitlement (174.62) - Deferred Tax 419.04 353.21 - Earlier years - -

Profit/(Loss) for the period 1,139.40 872.23

Earning per equity share (in ` )

(Face Value of ` 1000/- per share)

(1) Basic 513.60 393.17 (2) Diluted - -

Significant Accounting Policies 33

Additional Notes on Accounts 34

The Notes referred to above form an integral part of Profit & Loss Account.

V. R. Reddy Subir Dutta B. R. Reddy Rakesh Sinha Company Secretary GM (Finance) (I/C) Director (Tech.) P&P Chairman-cum-Managing Director DIN : 07001710 DIN : 02186695

(D. Choudhury) Partner Membership No. : 052066 for and on behalf of M. Choudhury & Co. Date : 26th May, 2015 Chartered Accountants. Place : Kolkata Firm Regn. No.: 30218E

123 ANNUAL REPORT 2014-15

EASTERN COALFIELDS LIMITED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2015

(` in Crores) 31.03.2015 31.03.2014 (a) Cash Flow from Operating Activities Net Profit Before Taxation : 1,782.41 1,299.28 Add / Less Non Operating Expenses / (Non Operating Incomes) Liability Written Back (12.43) (124.45) Depreciation / Impairment 244.79 213.50 Interest Income (421.99) (189.86) OBR Adjustment 174.42 210.00 Profit on Sale of Asset (1.10) (1.63) Provision for Loss of Asset / Surveyed Off Asset 1.56 4.01 Debit / (Credit) for Foreign Exchange Fluctuation 9.61 13.46 (5.14) 125.06

Operating Profit before working capital changes 1,777.27 1,424.31 Decrease / (Increase) in Sundry Debtors 293.13 1,862.12 Decrease / (Increase) in Loans & Advances (70.79) (16.27) Decrease / (Increase) in Current assets (76.16) (88.51) Decrease /(Increase) in Inventories (100.50) (8.19) Increase/(Decrease) in Liabilities & Provisions (excl. LIAB W/Back) (625.68) (580.00) (1,054.59) 694.56 Cash Generation from Operation 1,197.27 2,118.87 Advance Income Tax Paid 215.42 215.42 -- -- Net Cash Flow from Operating Activities (A) : 981.85 2,118.87 (B) Cash Flow from Investing Activities Purchases of Assets including Capital WIP (686.69) (408.87) Adjustment in Value of Fixed Assets (0.67) 6.70 Redemption of Power Bond 0.05 0.02 Decrease/ (Increase) in Deposits (More than 3 Mths.)(1,213.12) (1,153.55) Interest Income 421.99 189.86 Profit on Sale of Fixed Asset 1.10 (1,477.34) 1.63 (1,364.21) Net cash flow from investing activities (B) (1,477.34) (1,364.21)

124 EASTERN COALFIELDS LIMITED

(` in Crores) 31.03.2015 31.03.2014

(C) Cash Flow from Financing Activities : Repayment of Long Term Borrowings (5.75) (5.74)

Net Cash Flow from Financing Activities (C) (5.75) (5.74)

Net Increase in Cash / Cash Equivalents (A+B+C) (501.24) 748.92 Cash & Cash Equivalent (Excl. Deposit more than three mths) Opening Cash & Bank Balance 1,188.07 439.15 Closing Cash & Bank Balance 686.83 (501.24) 1,188.07 748.92

V. R. Reddy Subir Dutta B. R. Reddy Rakesh Sinha Company Secretary GM (Finance) (I/C) Director (Tech.) P&P Chairman-cum-Managing Director DIN : 07001710 DIN : 02186695

(D. Choudhury) Partner Membership No. : 052066 for and on behalf of M. Choudhury & Co. Date : 26th May, 2015 Chartered Accountants. Place : Kolkata Firm Regn. No.: 30218E

125 ANNUAL REPORT 2014-15

NOTES TO BALANCE SHEET CONSOLIDATED NOTE - 1

SHARE CAPITAL (` Crores)

AS AT AS AT 31-03-2015 31-03-2014

AUTHORISED :

(i) 250,00,000 Equity Share of ` 1000.00 each. 2500.00 2500.00

(ii) 210,00,000 (P.Y. NIL), 6% Non Convertible Comulative, Redeemable Preference Shares of ` 1000/- each 2100.00 -- 4,600.00 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

20509700 (P.Y. NIL), 6% Non Convertible Comulative, Reedemable Preference Shares of `1000/- each alloted as fully paid up for Consideration received other than cash 2,050.97 ---

Total 4,269.42 2218.45 Note 1.1 : 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 `1000 each) Coal India Limited Holding Company 22184500 100% (Equity Share) Coal India Limited Holding Company 20509700 100% (Preference Share) Note 1.2 : (a) There was no change in the Number of Equity Shares during the year. Note 1.2 : (b) All Prefernece Shares were issued to the Coal India Limited Holding Company during the year. 126 EASTERN COALFIELDS LIMITED

NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED NOTE - 2

RESERVES & SURPLUS (` Crores)

AS AT AS AT 31-03-2015 31-03-2014 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 832.71 832.71 Add : Transfer from Statement of Profit & Loss - - Add : Less: Adjustment During the year - - 832.71 832.71

Surplus in Statement of Profit & Loss

As per last Balance Sheet (4,637.53) (5,509.76) Retained earnings (as per schedules of Companies Act 2013) (50.58) Profit after Tax During the year 1,139.40 872.23 Profit/(Loss) available for Appropriation (3,548.71) (4,637.53)

127 ANNUAL REPORT 2014-15

APPROPRIATION Reserve for Foreign Exchange Transaction - - Transfer to General Reserve - - Transfer to CSR Reserve - - Interim Dividend - - Proposed Dividend on Equity Shares - - Corporate Dividend Tax - - (3,548.71) (4,637.53)

Miscellaneous Expenditure (to the extent not written off) Preliminary Expenses - - Pre-Operational Expenses

Total : (2,716.00) (3,804.82)

NOTE - 3 LONG TERM BORROWING ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014 Term Loan

IBRD - - JBIC - - Export Development Corp., Canada 164.33 162.32 Liebherr France S.A., France Loan From Coal India Limited - 518.97 Total (A+B) 164.33 681.29

CLASSIFICATION 1 Secured - - Unsecured 164.33 681.29 CLASSIFICATION 2 Loan Guaranteed by directors & others

Particulars of Loan Amount in `crores Nature of Guarantee Export Development Corporation, Canada 164.33 GOI Previous Year 162.32 GOI Note 3.1 :- Loss on Exchange Rate Variance of ` 7.89 crores (` 13.46 crores) in respect of unsecured loan from Export Development Corporation, Canada has been adjusted in the value of the unsecured loan and corresponding effect in Other expenses (Note - 31) of the Statement of Profit and Loss. Note 3.2 : During the year repayment of foreigh loan of ` 5.75 crores (` 5.74 crores) has been made. Note 3.3 : During the year the CIL Loan has been converted into 6% Non Convertible, Cumulative Redeemable Preference share capital. 128 EASTERN COALFIELDS LIMITED

NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 4 OTHER LONG TERM LIABILITIES ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014 Shifting & Rehabilitation Fund Opening Balance - - Add: Interest from Investment of the fund - - Add: Contribution Received - - Less : Amount utilised - - - - Trade Payable - - Security Deposits 17.54 16.79 Others 1.38 1.20 Total 18.92 17.99

NOTE - 5 LONG TERM PROVISIONS ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014 For Employee Benefits - Gratuity 256.56 1,515.36 - Leave Encashment 499.71 451.72 - Other Employee Benefits 304.14 276.91 - -

For Foreign Exchange Transactions (Marked to Market) - - OBR Adjustment Account 1,785.17 1,610.75 Mine Closure 148.06 73.52 For Others (Post Retirement Medical Benefit) 141.59 114.29

TOTAL 3.135.23 4,042.55

Note 5.1: The year end liability of Gratuity, Leave encashment, Medical benefit for retired executives and other employees benefit like Group Personal Accident Insurance Policy, Leave Travel Concession, compensation to dependents in case of mines accidental death are valued on actuarial basis. Note 5.2 : Provisions of long term gratuity is after adjustment of gratuity trust fund balance of ` 2042.35 Crores ( ` 662.31 Crores) 129 ANNUAL REPORT 2014-15

NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 6 SHORT TERM BORROWING ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014 Loan From Bank - -

Loans Repayable on Demand

Balance with Coal India Limited & other Subsidiaries of Coal India Limited 129.01 1,714.51

Overdraft against Pledge of Term Deposit - - Other Loans and Advances - - Deferred Credits - -

Total : 129.01 1,714.51

CLASSIFICATION 1 Secured - - Unsecured 129.01 1,714.51

CLASSIFICATION 2 Loan Guaranteed by directors & others

Particulars of Loan Amount in ` crores Nature of Guarantee NIL NIL NIL

Note 6.1 :- During the year Balance with CIL of ` 1532 crores has been converted into 6% Non convertible Cumulative, Redeemable Preference Share capital.

NOTE - 7

TRADE PAYABLES ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014

Sundry Creditors For Revenue Stores 72.56 63.86

TOTAL 72.56 63.86

130 EASTERN COALFIELDS LIMITED

NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 8

OTHER CURRENT LIABILITIES ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014

Current Maturities of Long Term Borrowings Term Loan From IBRD - - Term Loan From JBIC - - Term Loan From Export Development Corp., Canada 5.88 5.75 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) 71.59 20.73

FOR EXPENSES :

Salary Wages & Allowances 298.43 330.57 Power & Fuel 55.79 61.01 Others 107.38 95.19 461.60 486.77

STATUTORY DUES :

Sales Tax/VAT 3.00 - Provident Fund & Pension Fund 68.10 66.09 Central Excise Duty 0.32 23.34 Royalty & Cess on Coal 42.11 29.74 Stowing Excise Duty 11.36 11.05 Clean Energy Cess 98.16 24.51 Other Statutory Levies 42.20 17.52 265.25 172.25

Income Tax Deducted at Source 47.00 38.13 Security Deposit 90.54 79.63 Earnest Money 49.37 48.02 Advance & Deposit from customers / others 526.00 388.17 Interest Accrued and due on Borrowings - - Interest Accrued but not due on Borrowings - -

131 ANNUAL REPORT 2014-15

Cess Equilisation Account* 1,410.51 1,241.82 Current Account with IICM - - Unpaid Dividend - - Ex-Owner Account - - Advance Deposit other Pre-Nationalisation - - Others Liabilities 406.33 372.93

TOTAL 3,334.07 2,854.20

*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 customers on the value of despatches of Coal considering the sale price prevailing on 31st March of the financial year, there remains a balance accumulating to ` 1410.51 cr. (` 1241.82 cr.).) which has been shown under cess equilisation A/C.

NOTE - 9

SHORT TERM PROVISIONS ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014

For Employee Benefits - Gratuity 74.84 76.09 - Leave Encashment 73.60 75.03 - PPLB 261.78 217.39 - PRP 330.29 264.46 - Other Employee Benefits 65.57 69.12

For Proposed Dividend - - For Corporate Dividend Tax - - Provision for Income Tax 469.52 154.06 Less : Advance Income Tax / Tax Deducted at Source (252.91) (18.74) For Excise Duty on Closing Stock of Coal 26.14 18.59 For Others 2.58 2.76

TOTAL 1,051.41 858.76

Note: 9.1 : Provision for short term gratuity is after adjustment of gratuity trust fund balance of ` 310.83 Crores (` 355.74 Crores)

132 EASTERN COALFIELDS LIMITED - - 6.84 2.12 4.89 64.09 91.17 13.10 29.73 258.43 790.51 122.91 127.80 157.83 As on 1124.94 1255.99 1383.79 31.03.14 Crores ) ( - - 6.47 2.29 3.95 72.72 12.32 29.36 As on 202.73 248.48 859.21 127.87 131.82 127.80 1433.58 1255.99 1565.40 31.03.15 CARRYING VALUE 0.01 8.17 11.85 52.20 19.67 21.78 86.71 264.78 384.63 199.43 Total Total Loss 1167.69 2993.45 3843.25 3245.78 1010.63 1210.06 5053.31 Impairment Depreciation/ ------61.68 384.63 384.63 251.66 313.34 292.84 697.97 As on 31.03.15 ------2.62 2.62 (0.29) 21.74 21.74 24.36 period Transfer Adj./Sales/ during the ------1.23 1.23 0.62 17.26 17.88 15.27 19.11 period Addition during the ------61.06 As on 361.66 361.66 231.78 292.84 277.86 654.50 01.04.14 - - 0.01 8.17 IMPAIRMENT LOSS 11.85 52.20 19.67 21.78 86.71 264.78 758.97 137.75 896.72 874.85 As on 2993.45 3458.62 3245.78 4355.34 31.03.15 - - - - 5.58 0.94 4.57 0.01 (5.58) (6.36) (0.25) (0.99) (0.20) (0.20) 13.01 10.92 10.72 (76.45) the period Adj./Sales/Tr ansfer during NOTE - 10 A FIXED ASSETS - - - - 1.06 0.93 4.47 0.26 1.16 13.57 17.18 20.91 22.07 32.57 164.45 201.92 161.64 223.99 period Addition during the - - 5.59 9.16 11.84 33.25 18.61 19.91 77.67 234.59 738.06 136.79 874.85 842.27 As on 2835.36 3245.78 3160.59 4120.63 01.04.14 DEPRECIATION - 8.17 72.73 31.99 28.25 14.14 As on 116.07 254.93 513.26 384.63 203.38 1138.50 3852.66 5276.83 4501.77 1341.88 1295.49 6618.71 31.03.15 3.87 crore) on the value of surveyed off Assets has been made. ------(0.30) (0.26) (0.99) (0.06) 31.38 22.97 (31.85) (39.55) (18.60) (88.06) (18.60) the period Adj./Sales/Tr ansfer during 1.23 Crore (

- - - 0.28 1.50 8.67 0.44 0.64 34.90 99.33 20.54 45.75 46.39 32.75 period 266.34 432.00 317.08 478.39 Addition during the - 9.16 69.68 31.71 26.75 13.96 124.22 493.02 107.40 361.66 202.74 As on 3625.87 4863.43 4272.75 1092.75 1295.49 1262.80 6158.92 01.04.14 GROSS BLOCK PARTICULARS 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 Surveyed Off Assets TOTAL Tangible Assets (As on 31.03.2014) Intangible Assets Computer Software Development Prospecting & Boring Total Intangible Assets (As on 31.03.2014) GRAND TOTAL Note-10A.1:- Direct purchase of Tenancy Land are classified as free hold Land. acquired under Coal Bearing Acquisition Act, 1957, L.A. Act 1894, inherited land on nationalisation, direct transfer Govt. Land and Forest are classified as Other. Note-10A.2 :- 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 included. Note-10A.3 :- Full provision amounitng to 133 ANNUAL REPORT 2014-15 - 4.51 3.13 As on 13.55 85.68 61.32 Crores) 106.87 31.03.14 ( 0.08 4.88 22.66 21.11 As on 217.13 265.86 106.87 31.03.15 CARRYING VALUE - 5.92 2.63 0.98 36.96 46.49 46.18 Total Loss Total Impairment Depreciation/

------As on 31.03.15 ------period Transfer during the Adj./Sales/ ------period Addition during the IMPAIRMENT LOSS ------As on 01.04.14 - 5.92 2.63 0.98 36.96 46.49 46.18 As on 31.03.15 - - - - (0.01) (0.01) 46.18 crores) –0.05 period Transfer during the Adj./Sales/ NOTE - 10 B - - 0.01 0.28 0.03 0.32 0.14 the PROVISION during period Addition 46.49 crores ( CAPITAL WORK-IN-PROGRESS - 5.91 2.63 0.95 36.69 46.18 46.09 As on 01.04.14 0.08 5.86 28.58 23.74 As on 254.09 312.35 153.05 31.03.15 - (1.21) (9.71) (20.62) (196.15) (227.69) (273.31) the period ansfer during Adj./Sales/Tr 0.08 COST 11.49 29.74 17.81 327.87 386.99 318.95 period Addition during the - 7.14 4.08 19.46 As on 122.37 153.05 107.41 01.04.14 Total provision for Tangiable Assets upto the end of period is PARTICULARS PARTICULARS Tangible Assets Building/Water Supply /Road & Culverts Plant & Equipments Railway Sidings Development Others TOTAL Tangible Assets (As on 31.03.2014) Note- 10B.1:-

134 EASTERN COALFIELDS LIMITED 0.71 As on 29.65 30.36 20.21 Crores) 31.03.14 ( 47.46 32.73 80.19 30.36 As on 31.03.15 CARRYING VALUE 4.11 32.22 36.33 37.16 Total Loss Total Impairment Depreciation/

1.38 As on 24.01 25.39 23.96 31.03.15 - (0.35) (0.35) (0.03) period Transfer during the Adj./Sales/ - 1.78 1.78 4.02 period Addition during the IMPAIRMENT LOSS 37.16 crores) under intangible Assets.

1.38 As on 22.58 23.96 19.97 01.04.14 8.21 2.73 10.94 13.20 As on 31.03.15 36.33 Crores (

- (2.27) (2.27) (0.74) period Transfer during the Adj./Sales/ NOTE - 10 C - - ASSET UNDER DEVELOPMENT 0.01 0.01 the PROVISION during period Addition 2.73 ANGIBLE 10.47 13.20 13.94 As on INT 01.04.14 79.68 36.84 67.52 116.52 As on 31.03.15 (0.64) (40.13) (40.77) (33.16) the period ansfer during Adj./Sales/Tr COST 57.11 32.66 89.77 46.56 period Addition during the 4.82 67.52 54.12 As on 01.04.14 62.70 PARTICULARS Note 10 C. 1 : Total provision / Impairment loss upto the end of year is PARTICULARS Intangible Assets Development Prospecting & Boring TOTAL Intangible Assets (As on 31.03.2014)

135 ANNUAL REPORT 2014-15

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) (` ) 31.03.15 31.03.14

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 - - - 0.05 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 : 0.08 0.13 Aggregate of Quoted Investment - - Aggregate of Unquoted Investment - - Market Value of Quoted Investment - - Provision made for diminution in the value of Investment - -

136 EASTERN COALFIELDS LIMITED

NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 12

LONG TERM LOANS & ADVANCES ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014 LOANS

ADVANCES

For Capital - Secured considered goods - - - Unsecured considered goods 162.29 88.57 - Doubtful 3.95 4.80 166.24 93.37 Less : Provision for Doubtful Loans and Advances 3.95 4.80 162.29 88.57

For Revenue - - - Secured considered goods - - - Unsecured considered goods 2.23 2.20 - Doubtful 0.56 0.56 2.79 2.76 Less : Provision for Doubtful Loans and Advances 0.56 0.56 2.23 2.20

Security Deposits - Secured considered goods - - - Unsecured considered goods 7.26 7.89 - Doubtful 1.52 0.66 8.78 8.55 Less : Provision for Doubtful Loans and Advances 1.52 0.66 7.26 7.89 Deposit for P&T, Electricity etc. - Secured considered goods - - - Unsecured considered goods 0.35 0.37 - Doubtful 0.44 0.44 0.79 0.81 Less : Provision for Doubtful Loans and Advances 0.44 0.44 0.35 0.37 137 ANNUAL REPORT 2014-15

LOAN TO EMPLOYEES & OTHERS

For House Building - - - Secured considered goods 0.56 0.82 - Unsecured considered goods - - - Doubtful - - 0.56 0.82

For Motor Car and Other Conveyance - - - Secured considered goods 0.02 0.01 - Unsecured considered goods - - - Doubtful - - 0.02 0.01

For Others - - - Secured considered goods - - - Unsecured considered goods - - - Doubtful - - - -

Less : Provision for Doubtful Loans and Advances - - - -

172.71 99.86

Loan To Subsidiaries - - Secured considered goods - - - Unsecured considered goods - - - Doubtful - - - -

TOTAL 172.71 99.86

Note

CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING PARTICULARS 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

138 EASTERN COALFIELDS LIMITED

NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 13

OTHER NON-CURRENT ASSETS ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014 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 - - Receivables for Mine Closure Expenses 1.09 - Other Receivables - Secured considered goods - - - Unsecured considered goods 16.32 16.33 - Doubtful 4.98 5.22 21.30 21.55 Less Provision for bad and doubtful Receivables 4.98 5.22 16.32 16.33 TOTAL 17.41 16.33

Note : CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING PARTICULARS 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

139 ANNUAL REPORT 2014-15

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) (` ) ( ` ) 31.03.15 31.03.14

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 - -

140 EASTERN COALFIELDS LIMITED

NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 15

INVENTORIES ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014

Stock of Coal 386.00 299.95 Coal Under Development - - Less : Provision 1.76 1.76

A Stock of Coal (Net) at lower of cost or net realisable value 384.24 298.19

Stock of Stores & Spares (at cost) 188.06 177.68 Stores -in -transit 0.34 0.06 Less : Provision 38.81 43.97

B Net Stock of Stores & Spares (at cost) 149.59 133.77

C Workshop Jobs : Work-in-progress and Finished Goods 16.50 18.06 Less : Provision 0.12 0.20

Net Stock of Workshop Jobs (at cost) 16.38 17.86

D Press : Work-in-Progress and Finished Goods - -

E Stock of Medicine at Central Hospital (at cost) 0.81 0.70

F Prospecting & Boring/ Development Exp./Coal Blocks meant for Sale - -

Total ( A to F ) 551.02 450.52

Note - 15.1 :- Closing Stock of stores at Central and Area Stores have been valued at weighted average cost. Provision at the end of the year for ` 38.81 crore (` 43.97 crore) consists of the following: a) Provision for quantitative discrepancies noticed between Bin Cards and Stores Ledger upto NIL (` 2.07 Crore) b) Provision for unserviceable, damaged and obsolete store ` 10.47 crore (` 10.47 crore) c) Provision for non-moving stores & spares ` 28.34 crore ( ` 31.43 crore. )

141 ANNUAL REPORT 2014-15

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 31.03.2015

OVERALL STOCK NON-VENDABLE STOCK VENDABLE STOCK Qty. Value Qty. Value Qty. Value

1. (A) Opening stock as on 01.04.14 23.84 34651 4.71 4656 19.13 29995 (B) Adjustment in Opening Stock 0.00 0 0.00 0 0.00 0 23.84 34651 4.71 4656 19.13 29995 2. Production for the year 400.08 1019102 0.00 0 400.08 1019102

3. Sub-Total ( 1+2) 423.92 1053753 4.71 4656 419.21 1049097

4. Off- Take for the year : (A) Outside Despatch 382.20 1001853 0.00 0 382.20 1001853 (B) Coal feed to Washeries 0.00 0 0.00 0 0.00 0 (C) Own Consumption 2.50 8644 0.00 0 2.50 8644 TOTAL(A) 384.70 1010497 0.00 0 384.70 1010497

5. Derived Stock 39.22 43256 4.71 4656 34.51 38600

6. Measured Stock 38.61 42585 4.71 4656 33.90 37929

7. Difference (5-6) 0.61 671 0.61 671

8. Break-up of Difference: (A) Excess within 5% 0.07 73 0.00 0 0.07 73 (B) Shortage within 5% 0.68 744 0.00 0 0.68 744 (C) Excess beyond 5% 0.00 0 0.00 0 0.00 0 (D) Shortage beyond 5% 0.00 0 0.00 0 0.00 0

9. Closing stock adopted in A/c. 39.22 43256 4.71 4656 34.51 38600 (6-8A+8B)

Note : Production includes seized coal of 0.02 lakh tonne.

142 EASTERN COALFIELDS LIMITED - - - - 249 4,656 8,644 34,651 29,995 38,600 38,600 Value 38,351 1,019,102 1,001,853 - - - - - 4.71 2.50 23.84 19.13 34.51 34.51 Qty 400.08 382.20 ------Value ------Qty Other Products Total ------Value ------Qty Non-Coking ------Value Washed / Deshaled Coal ------Qty - - Coking 4,656 8,644 Value 34,651 29,995 38,600 38,600 lakh ) Table : B 1,019,102 1,001,853 38,351 249 - - 4.71 2.50 Qty 23.84 19.13 34.51 34.51 400.08 382.20 - - Non-Coking ------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) Note: Production includes seized coal of 0.02 lakh tonne. Should Form Part of Notes to Accounts Summary of Closing Stock Coal (Qty. in Lakh tonnes / Value

143 ANNUAL REPORT 2014-15

NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 16 TRADE RECEIVABLES ( ` Crores) AS AT AS AT 31-03-2015 31-03-2014 Debts outstanding for a period exceeding six months from the due date - Secured considered good - - - Unsecured considered good 761.31 1142.74 - Doubtful 455.07 423.70 1216.38 1566.44 Less Provision for bad and doubtful trade receivables 455.07 423.70 761.31 1142.74

Other Debts - Secured considered good - - - Unsecured considered good 665.57 577.27 - Doubtful 8.07 - A 673.64 577.27 Less Provision for bad and doubtful trade receivables 8.07 A - 655.57 577.27

Total 1426.88 1720.01

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 ` 86.25 crores (Previous year ` 382.91 crores) for grade slippage has been made after reconciliation, settlement and issuing credit notes to parties during the year.

` in crore ` in crore Note 16.2 :- The details of provision are as under :- 31.03.15 31.03.14 Opening Provision 423.70 399.39 Less: Settled/Written off/adjusted against opening debtors ------Add: New provision during the year 90.23 92.82 Less: Written back from opening provision 50.79 68.51 Closing Balance 463.14 423.70 144 EASTERN COALFIELDS LIMITED

NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 17

CASH & BANK BALANCE ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014

Balances with Scheduled Banks - SBI Dividend Account (unpaid/unclaimed dividend account) - In Deposit Accounts with maturity upto 3 months 318.28 529.32 - In Current Accounts 219.09 584.43 - In Cash Credit Accounts - -

Balances with Non - Scheduled Banks

In Account with Banks outside India - -

Remittance - in transit - - Cheques, Drafts and Stamps on hand 0.83 0.08 Cash on hand 0.57 0.72

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 3,877.05 2,663.93

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* 148.06 73.52

Total 4,563.88 3,852.00

1. Maximum amount outstanding with Banks other than Scheduled Banks at any time during the year nil nil 2. Deposit for more than 1 (one) year from the date of purchase nil nil 3. ` 66.49 crores has been deposited with Union Bank of India towards Mine closure Escrow a/c during the period. 4. ` 8.05 crores has been deposited with Union Bank of India as Interest towards Mine closure Escrow a/c during the year.

145 ANNUAL REPORT 2014-15

NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 18

SHORT TERM LOANS & ADVANCES ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014 LOANS

ADVANCE ( Recoverable in cash or in kind or for value to be received)

ADVANCE TO SUPPLIERS

For Revenue - Secured considered good - - - Unsecured considered good 75.21 74.09 - Doubtful 0.49 2.50 75.70 76.59 Less Provision for bad and doubtful Advance 0.49 2.50 75.21 74.09

75.21 74.09

ADV PAYMENT OF STATUTORY DUES

SalesTax - - - Secured considered good - - - Unsecured considered good 28.03 24.08 - Doubtful - - 28.03 24.08 Less Provision for bad and doubtful Advance - - 28.03 24.08

Advance Income Tax / Tax Deducted at Source - - Less : Provision for Income Tax - - - -

Others - Secured considered good - - - Unsecured considered good 21.53 20.15 - Doubtful 0.20 0.44 21.73 20.59 Less Provision for bad and doubtful Advance 0.20 0.44 21.53 20.15 49.56 44.23

146 EASTERN COALFIELDS LIMITED

Advance to Employees - Secured considered good - - - Unsecured considered good 78.02 79.84 - Doubtful 1.32 1.32 79.34 81.16 Less Provision for bad and doubtful Advance 1.32 1.32 78.02 79.84

Current Account with Coal India Limited & other Subsidiaries of Coal India Limited - - Loan Account with Subsidiaries - Secured considered good - - - Unsecured considered good - - - Doubtful - -

Less Provision for bad and doubtful Loan - -

MAT Credit Entitlement 174.62 - Claims Receivables - - - Secured considered good - - - Unsecured considered good 0.01 6.70 - Doubtful 2.20 2.20 2.21 8.90 Less Provision for bad and doubtful claim receivables 2.20 2.20 0.01 6.70 Prepaid Expenses 0.39 0.39 253.04 86.93 TOTAL 377.81 205.25 Note :

CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING PARTICULARS 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

147 ANNUAL REPORT 2014-15

NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED : NOTE - 19

OTHER CURRENT ASSETS ( ` Crores)

AS AT AS AT 31-03-2015 31-03-2014

Interest Accrued - Investment - - - Deposit with Banks 257.35 127.72 - Others - -

Ex Owner’s Account - - Other Advances 0.06 0.06 Less: Provision - - 0.06 0.06 DEPOSITS

Deposit for Customs Duty, Port Charges etc. - - Deposit with Coal India Limited - - Deposit for Royalty, Cess & Sales Tax - - Less: Provision - - Others 5.55 3.74 Less: Provision 0.49 0.49 5.06 3.25

Amount Receivable from Govt of India for transactions on behalf of Ex-Coal Board - - Less: Provision - -

Other Receivables 84.42 140.75 Less: Provision 1.16 1.13 83.26 139.62

TOTAL 345.73 270.65

148 EASTERN COALFIELDS LIMITED

NOTES TO STATEMENT OF PROFIT & LOSS CONSOLIDATED : NOTE - 20

REVENUE FROM OPERATIONS ( ` Crores)

For the year For the year ended ended 31-03-2015 31-03-2014

A. Sales of Coal 13,413.84 11,945.92

Less: Excise Duty 655.62 595.80

Less : Other Levies Royalty 350.75 322.83 Cess on Coal 1,578.58 1,522.89 Stowing Excise Duty 38.22 35.98 Central Sales Tax 192.68 150.20 Clean Energy Cess 374.17 179.89 State Sales Tax/VAT 176.99 238.22 Other Levies 28.29 12.32

TOTAL LEVIES 3,395.30 3,058.13

NET SALES : 10,018.54 8,887.79 B. Other operating Revenue Facilitation charges for coal Import Subsidiy for Sand stowing and protective works 49.58 53.62 Loading and additional transportation charges 185.57 181.87 Less: Excise Duty 8.42 8.37 Less: Other Levies 4.74 5.46 OTHER OPERATING REVENUE (B) 221.99 221.66 C. Revenue from Operation(A+B) 10240.53 9109.45

Note 20.1:- Sale is net of deduction for grade slippage of ` 86.25 crores (` 382.91 crores) due to credit note issued to the parties for grade slippage. Note 20.2:- Sale includes MOU quantity of 42.50 LT.(8.91 LT) and MOU gain of ` 596.16 Crores (` 122.71 Crores) Note 20.3:- Sales includes ` 268.40 crores (` 349.11 crores ) as incentive under fuel supply agreement with various power sector for achieving despatch target. Note 20.4:- Sales includes e-auction quantity of 18.89 LT (39.04 LT) and e-auction gain of ` 298.96 crores (` 224.35 crores ) Note 20.5:- Sales includes Export sales to Bhutan of 0.04 LT amounting to ` 1.33 crores.

149 ANNUAL REPORT 2014-15

NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED : NOTE - 21

OTHER INCOME ( ` Crores)

For the year For the year ended ended 31-03-2015 31-03-2014 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 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 421.89 189.86 From Loans and Advances to Employees 0.10 0.10 From Income Tax Refunds - 0.09 From Coal India - - Others 0.01 0.01

Central Excise Duty on closing of coal - 2.16 Apex Charges - - Profit on Sale of Assets 1.10 1.63 Recovery of Transportation & Loading Cost - - Gain on Foreign exchange Transactions - - Exchange Rate Variance - - Lease Rent - - Liability Write Backs 12.43 124.45 Guarantee Fees from Subsidiaries - - Other non-operating Income 236.73 172.94

TOTAL 672.26 491.25

Note : Other non-operating income includes sales compensation under F.S.A. of ` 143.12 crores (` 91.57 crores)

150 EASTERN COALFIELDS LIMITED

NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED : NOTE - 22

COST OF MATERIAL CONSUMED ( ` Crores)

For the year For the year ended ended 31-03-2015 31-03-2014

Explosives 147.58 126.14 Timber 5.04 4.33 P O L 280.09 277.57 HEMM Spares 134.26 140.79 Other Consumable Stores & Spares 230.85 186.53

TOTAL 797.82 735.36

151 ANNUAL REPORT 2014-15

NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED : NOTE - 23 ( ` Crores) CHANGE IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE For the year For the year ended ended 31-03-2015 31-03-2014 Opening Stock of Coal / Coke 297.19 307.06 Add : Adjustment of Opening Stock - - Less : Deterioration of Coal/Coke 1.76 1.76 Total (1) 295.43 305.30

Less : Closing Stock of Coal/Coke 383.51 297.19 Less: Deterioration of Coal/Coke 1.76 1.76 Total (2) 381.75 295.43

A) Change in Inventory of Closing Stock (1-2) (86.32) 9.87

Opening Stock of Workshop made finished goods and WIP 18.06 13.83 Less: Provision 0.20 0.20 Total (3) 17.86 13.63

Closing Stock of Workshop made finished goods and WIP 16.50 18.06 Less: Provision 0.12 0.20 Total (4) 16.38 17.86

B) Change in Inventory of Closing Stock of workshop (3-4) 1.48 (4.23)

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 ) (84.84) 5.64

152 EASTERN COALFIELDS LIMITED

NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED : NOTE - 24

EMPLOYEE BENEFIT EXPENSES (` Crores)

For the year For the year ended ended 31-03-2015 31-03-2014

Salary, Wages, Allowances & Benefits 4,177.68 4,056.42 Exgratia 296.44 231.96 PRP 65.82 64.02

Contribution to P.F. & Other Funds 489.96 468.03 Gratuity 339.79 264.43 Leave Encashment 170.36 145.82 VRS 1.85 3.12 Workman Compensation 5.29 4.13 Medical Expenses for existing employees 36.41 33.43 Medical Expenses for retired employees 29.62 13.41 Grants to Schools & Institutions 6.61 5.96 Sports & Recreation 1.45 1.42 Canteen & Creche 0.24 0.13 Power - Township 111.21 113.63 Hire Charges of Bus, Ambulance eyc. 5.33 5.36 Other Employee Benefits 112.44 101.30

TOTAL 5,850.50 5,512.57

Note 24.1: Salary, Wages, Allowances & Benefits includes provisions of ` 25.16 crores (` 24.49 crores) made for Superannuation Benefit to Executive.

153 ANNUAL REPORT 2014-15

NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED : NOTE - 25

Corporate Social Responsibility Expenses (` Crores)

For the year For the year ended ended 31-03-2015 31-03-2014 CSR Expenses 24.85 -

TOTAL 24.85

NOTE - 26

REPAIRS (` Crores)

For the year For the year ended ended 31-03-2015 31-03-2014 Building 6.42 4.24 Plant & Machinery 92.66 69.60 Others 2.14 2.63

TOTAL 101.22 76.47

154 EASTERN COALFIELDS LIMITED

NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED : NOTE - 27 CONTRACTUAL EXPENSES (` Crores)

For the year For the year ended ended 31-03-2015 31-03-2014 Transportation Charges : - Sand 54.54 53.58 - Coal & Coke 230.58 223.23 - Stores & Others etc. 1.66 1.76

Wagon Loading 19.96 7.42 Hiring of P&M 540.91 379.16 Other Contractual Work 177.38 155.38

TOTAL 1,025.03 820.53

NOTE - 28 FINANCE COSTS (` Crores)

For the year For the year ended ended INTEREST EXPENSE 31-03-2015 31-03-2014

Deferred Payments - - Bank Overdraft / Cash Credit - - Interest on IBRD & JBIC Loan - - CIL Fund Loan Interest - - Interest to Subsidiaries - - Others - -

TOTAL(A) - -

OTHER BORROWING COSTS

Guarantee Fees on (IBRD & JBIC) Loan - - Other Expenses / Bank Charges * - -

TOTAL(B) - - TOTAL (A+B) - -

155 ANNUAL REPORT 2014-15

NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED : NOTE - 29 PROVISIONS (` Crores) For the year For the year ended ended 31-03-2015 31-03-2014 (A) PROVISION MADE FOR Doubtful debts 90.23 92.82 Doubtful advances & Claims 0.04 0.03 Foreign exchange Transaction - - Stores & Spares 0.55 0.75 Reclamation of Land/Mine Closure Expenses 66.49 71.03 Surveyed of Fixed Assets/Capital WIP 1.56 4.01 Others 0.09 -

TOTAL (A) 158.96 168.64

(B) PROVISION WRITTEN BACK Doubtful debts 50.79 68.51 Doubtful advances & Claims 2.49 0.62 Foreign exchange Transaction - - Stores & Spares 5.71 3.95 Reclamation of Land/Mine Closure Expenses - 271.38 Surveyed of Fixed Assets/Capital WIP 0.36 1.12 Others 0.03 8.63

TOTAL (B) 59.38 300.21 TOTAL ( A-B ) 99.58 (131.57)

Note - 29.1 :- Provision for mine closure expenses of ` 66.49 crores (` 71.03 crores) has been taken on 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 year For the year ended ended 31-03-2015 31-03-2014 Doubtful debts 68.66 127.70 Doubtful advances 2.49 - Others 2.27 -

TOTAL 73.42 127.70

156 EASTERN COALFIELDS LIMITED

NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED : NOTE - 31 OTHER EXPENSES (` Crores) For the year For the year ended ended 31-03-2015 31-03-2014 Travelling expenses - Domestic 11.11 12.05 - Foreign 0.13 0.54 Training Expenses 2.94 2.65 Telephone & Postage 1.79 1.78 Advertisement & Publicity 3.37 4.21 Freight Charges 0.08 0.03 Demurrage 0.70 0.38 Donation/Subscription 0.03 0.13 Security Expenses 73.81 62.30 Service Charges of CIL 7.46 - Hire Charges 17.88 16.22 CMPDI Expenses 20.57 9.59 Legal Expenses 2.28 1.30 Bank Charges 0.24 0.12 Guest House Expenses 1.76 1.72 Consultancy Charges 4.88 0.65 Under Loading Charges 22.37 10.59 Loss on Sale/Discard/Surveyed of Assets 0.01 - Auditor’s Remuneration & Expenses - - For Audit Fees 0.14 0.14 - For Taxation Matters 0.07 0.09 - For Company Law Matters - - - For Management Services - - - For Other Services 0.10 0.09 - For Reimbursement of Expenses 0.14 0.24 Internal Audit Fees & Expenses 2.28 1.48 Rehabilitation Charges 6.84 - Royalty & Cess 3.26 1.91 Central Excise Duty 7.55 - Rent -- -- Rates & Taxes 1.92 4.29 Insurance 0.08 0.03 Loss on Exchange Rate Variance 9.61 13.46 Lease Rent - - Rescue/Safety Expenses 3.31 2.82 Dead Rent/Surface Rent 14.44 8.47 Siding Maintenance Charges 2.06 2.93 Land/Crops Compensation 0.01 0.98 R&D Expenses 7.50 - Environmental & Tree plantation expenses 2.52 2.42 Misceleneous Expenses 116.75 100.48

TOTAL 349.99 264.09

157 ANNUAL REPORT 2014-15

NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED : NOTE - 32 PRIOR PERIOD ADJUSTMENT (` Crores)

For the year For the year ended ended 31-03-2015 31-03-2014 (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 - 2.41 Other Expenditure - - Interest and other financial charges - - Depreciation - -

TOTAL (A) - 2.41

(B) Income

Sale of Coal & Coke - - Stock of Coal & Coke - - Other Income 0.45 (1.14) Consumption of Stores & Spares - 0.19 Employees Remuneration & Benefits - - Power & Fuel - - Welfare Expenses - - Repairs - - Contractual Expenses - - Other Expenditure 0.59 - Interest and other financial charges - - Depreciation 1.14 -

TOTAL (B) 2.18 (0.95)

TOTAL ( A-B ) (2.18) 3.36

158 EASTERN COALFIELDS LIMITED

NOTES - 33

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, 2013, including accounting standards notified therein, except otherwise stated.

1.1 Use of estimate : In preparing the financial statements in conformity with Accounting Principles generally accepted in India, management is sometimes required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liability as at the date of financial statements and the amount of revenue and expenses during the reported period. Actual results may differ from those estimates. Any revision to such estimate is recognized in the period in which the same is determined.

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 as income and the relevant expenses are debited to the respective heads of expenses. 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, cash rehabilitation expenses, resettlement cost and compensation in lieu of employment incurred for concerned displaced persons.

159 ANNUAL REPORT 2014-15

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.

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 carried at cost. However, when there is a decline, other than temporary, in the value of the long term investment, the carrying amount is reduced to recognize the decline.

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.

160 EASTERN COALFIELDS LIMITED

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 (which also includes loose tools ) 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 / 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. Similarly stock of stationary at printing press and medicines at central hospital are valued at cost.

6.2.3 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.

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.

7.0 Depreciation / Amortisation :

7.1. Depreciation on fixed assets is provided on straight line method on the basis of useful life specified in Schedule II of Companies Act 2013 except for assets mentioned below , for which depreciation is provided on the basis of technically estimated useful life which are lower than that envisaged as per schedule II of Companies Act, 2013 to depict a more true and fair rate of depreciation :- Telecommunication equipment : - 6 years and 9 years Photocopying machine : - 4 years Fax machine : - 3 years Mobile phone : - 3 years Digitally enhance cordless telephone : - 3 years Printer & Scanner : - 3 years Earth Science Museum : - 19 years High volume respiratory dust samplers : - 3 years Certain equipment /HEMM : - 7 years and 6 years as applicable. SDL (equipment) : - 5 years LHD (equipment) :- 6 years

7.2 The residual value of all assets for depreciation purpose is considered as 5% of the original cost of the asset except those item of assets covered under Para 7.3

7.3 In case of assets namely Coal tub, winding ropes, haulage ropes, stowing pipes & safety lamps the technically estimated useful life has been determined to be one year with a nil residual value.

7.4 Depreciation on the assets added / disposed of during the year is provided on pro-rata basis with reference to the month of addition / disposal, except on those assets with one year useful life and nil residual value

161 ANNUAL REPORT 2014-15

as mention under Para 7.3, which are fully depreciated in the year of their addition. These Assets are taken out from the Assets after expiry of two years following the year in which these are fully depreciated.

7.5 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.

7.6 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.

7.7 Cost of Software recognized as intangible asset, is amortised on straight line method over a period of legal right to use or three years, whichever is less; with a nil residual value.

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.

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.

162 EASTERN COALFIELDS LIMITED

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, Post Retirement Medical Benefits 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. 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

163 ANNUAL REPORT 2014-15

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.

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. Annual Quantum of OBR of the Mine. 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.

164 EASTERN COALFIELDS LIMITED

NOTE - 34 ADDITIONAL NOTES ON ACCOUNTS (For the Year ended 31st March, 2015)

1. BACKGROUND :

1.1 Eastern Coalfields Limited (The Company) 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 Limited ( former name of Coal India Limited). The Company is primarily engaged in business of production and sale of coal.

1.2 Pending completion of legal formalities for transfer of assets and liabilities to the Company certain Assets including Mining Rights etc. continue 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.

2. FIXED ASSETS AND CAPITAL-WORK-IN-PROGRESS.

2.1 Building includes Roads & Culverts situated in the residential/office/mining areas.

2.2 Physical verification in respect of all fixed assets and in respect of Plant & Machinery each worth ` 1.00 lakh or more have been carried out as per programme. Resultant differences on completion of formalities have been adjusted.

2.3 The Net value of Assets taken over on nationalization of coal mines amounting to ` 8.17 crores, details of which are not available, under Coal Mines Nationalization Act, 1973 have been taken into account and shown under the group of tangible assets and against which full provision has been made.

3. INVENTORY:

3.1 The enquiry proceedings by CBI, Dhanbad for shortage of coal at Rajmahal OCP of ` 19.54 Lakhs tonne valued at ` 63.58 Crore in 2007-08 has been completed in 2010-2011. The report on the same has been forwarded to Chairman, CIL for information and to advice the Vigilance department for taking action against the charged officers as per CBI order. The outcome of the order is still to be received.

3.2 Coal of 471408 M.T. (471408 M.T.) mixed with matti etc. is non-vendible and has been taken at NIL value.

4. SUNDRY DEBTORS:

4.1 Provision for Sundry Debtors is made on case to case basis. Normally no provision of Sundry Debtors is

165 ANNUAL REPORT 2014-15

made on unsettled amount of Debtors in the initial year. In the 2nd year provision is made up to 50% amount of unsettled amount of debtors, and the rest is provided in the 3rd year if it remains unsettled.

5. CURRENT LIABILITIES & PROVISIONS:

A) CURRENT LIABILITIES:

5.1 As required by section 22 of Micro, Small & Medium Enterprises Development Act, 2006, as on 31-03-

2015 Principal amount remaining unpaid to MSME is ` 0.16 crore (` 0.19 crore) and interest due thereon is NIL (NIL).

B) PROVISIONS:

5.2 The year end provision towards Gratuity, Leave Encashment, and Gross Personal Accident Insurance, LTA / LTC, Life Cover Scheme, Settlement Allowances, Fatal Accident Benefits and Medical Benefits of retired employees has been made on actuarial valuation as per the certificate given by the Actuary.

Actuarial valuation of gratuity liability as per actuary certificate is given as under:

ACTUARIAL VALUATION OF GRATUITY LIABILITY AS AT 31.03.2015

CERTIFCATES AS PER ACCOUNTING STANDARD 15(Revised 2005)

Table 1: DISCLOSURE ITEM 120(c) Table Showing Changes in Present Value Of Obligations.

As at 31/03/2015

Present Value of Obligation at Beginning of year 25334144509

Acquisition Adjustment 0 Interest Cost 1815831560

Past Service Cost 0

Current Service Cost 1282602212

Curtailment cost 0

Settlement Cost 0

Benefits Paid 5272500000

Actuarial gain/loss on Obligations 2937260348

Present Value of Obligation at end of Year 26097338630

166 EASTERN COALFIELDS LIMITED

Table 2 : DISCLOSURE ITEM 120(e) : Table Showing Changes in Fair Value of Plan Assets As at 31/03/2015 Fair Value of Plan Asset at Beginning of year 101805000000 Acquisition Adjustment 0 Expected Return on Plan Asset 814440000 Contributions 17650200000 Benefits Paid 5272500000 Actuarial gain/loss on Plan Asset 159160000 Fair Value of Plan Asset at End of year 23531800000 Table 3 : DISCLOSURE ITEM 120(f) : Table showing Funded Status As at 31/03/2015 Present Value of Obligation at end Year 26097338630 Fair Value of Plan Asset at end Year 23531800000 Funded Status -2565538630 Unrecognized actuarial gain/loss at end of the year 0 Net Asset(Liability) Recognized in Balance Sheet -2565538630

Table 4:- DISCLOSURE ITEM 120(g) : Table showing Expense Recognized in Statement of Profit/Loss

As at 31/03/2015 Current Service Cost 1282602212 Past Service Cost 0 Interest Cost 1815831560 Expected Return on Plan Asset 814440000 Curtailment cost 0 Settlement Cost 0 Actuarial gain/lossrecognized in the year 2778100349 Expense Recognized in Statementof Profit/Loss 5062094121

Table 7 : DISCLOSURE ITEM 120(1) : Table showing Actuarial Assumptions As at 31/03/2015 Mortality Table IALM(2006-08)ULT. Superannuation Age 60 Early Retirement & Disablement 10 PER THOUSAND P.A 6 above age 45 3 between 29 and 45 1 below age 29 Discount Rate 8.00% Inflation Rate 6.25% Return on Asset 8.00% Remaining Working Life 12 Years FORMULA USED PROJECTED UNIT CREDIT METHOD

167 ANNUAL REPORT 2014-15

Table 8 : DISCLOSURE ITEM 120(m) : Not applicable as Scheme is not related to Medical cost Table 9 : DISCLOSURE ITEM 120(n) : Summary of last 4 Valuation Record Company to Produce Table 10 : DISCLOSURE ITEM 120 (o) : Movements in the Liability Recognized in Balance Sheet:

As at 31/03/2015

Opening Net Liability 15153644509 Expenses as above 5062094121 Contributions 17650200000 Closing Net Liability 2565538630 Closing Fund/Provision at end of Year 26097338630

ACTUARIAL, VALUATION OF LEAVE ENCASHMENT BENEFIT(ET / HPL) AS AT 31.03.2015 Table 1 : DISCLOSURE ITEM 120(c) : Table Showing Changes in Present Value Of Obligations As at 31/03/2015 Present Value of Obligation at Beginning of year 5170239012 Acquisition Adjustment 0 Interest Cost 362791120 Past Service Cost 0 Current Service Cost 708521490 Curtailment cost 0 Settlement Cost 0 Benefits Paid 1270700000 Actuarial gain/loss on Obligations 632295283 Present Value of Obligation at end of Year 5603146905

Table 2 : DISCLOSURE ITEM 120(e) : Table Showing Changes in Fair Value of Plan Assets : Not applicable as Scheme is unfunded Table 3 : DISCLOSURE ITEM 120(f) Table showing Funded Status : Not applicable as Scheme is unfunded Table 4 : DISCLOSURE ITEM 120(g) : Table showing Expense Recognized in Statement of Profit/Loss

168 EASTERN COALFIELDS LIMITED

As at 31/03/2015

Current Service Cost 708521490

Past Service Cost 0

Interest Cost 362791120

Expected Return on Plan Asset 0 Curtailment cost 0 Settlement Cost 0 Actuarial gain/loss recognized in the year 632295283 Expense Recognized in Statement of Profit/Loss 1703607893

Table 7 : DISCLOSURE ITEM 120(1) : Table showing Actuarial Assumptions As at 31/03/2015 Mortality Table IALM(2006-08)ULT. Superannuation Age 60 Early Retirement & Disablement 10 Per Thousand P.A 6 above age 45 3 between 29 and 45 1 below age 29 Discount Rate 8.25% Inflation Rate 6.25% Return on Asset N.A Remaining Working Life 12 Years Formula Used : Projected unit Credit Method

Table 10 : DISCLOSURE, ITEM 120(o) : Movements in the Liability Recognized in Balance Sheet:

As at 31/03/2015 Opening Net Liability 0 Expenses as above 1703607893 Contributions 0 Closing Net Liability 1703607893 Closing Fund/Provision at end of Year 5603146905

169 ANNUAL REPORT 2014-15

NOTE TO APPENDIX B OF AS15(REVISED 2005) AS THE SCHEME IS UNFUNDED CHARGES TO PROFIT /LOSS ACCOUNT HAS BEEN BASED ON FOLLOWING ASSUMPTIONS : (1) PREVIOUS OBLIGATION WAS PROVIDED FOR AT LAST ACCOUNTING DATE (2) BENEFIT TO EXITS HAS BEEN PAID TO DEBIT OF ABOVE PROVISION (3) CURRENT OBLIGATION WILL BE PROVIDED FOR AT CURRENT ACCOUNTING DATE

5.3 The company has made an ad-hoc provision of ` 65.82 crore (` 64.02 Crore) during the year as Performance Related Pay as per advice of CIL.

5.4 The company has made a provision of ` 27.30 crore (` 11.46 crore) during the year as Post-Retirement Medical Benefit for the executives.

5.5 The Company has made a provision of ` 296.44 crore (` 231.96 crore) during the year towards payment of Ex-gratia to non-executive employees @ ` 40000- per employee.

6. STATEMENT OF PROFIT AND LOSS

6.1 Coal issued to employees (free issue) amounting to ` 10.68 crore (` 17.65 crore) and for internal consumption amounting to ` 75.27 crore (` 76.68 crore) 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 from appropriate authority for stowing and protective work undertaken during the year amounting to ` 49.58 crore (` 58.65 crore) has been shown under Other Income (Note – 21). Subsidy receivable out of the same amounting to ` 11.88 Crore (` 45.28 crore) has been shown under Other Current Assetss (Note – 19).

6.3 Depreciation on fixed assets for the year has been calculated on the basis of the useful life of assets prescribed as per Schedule II of the Companies Act 2013 (effective from Financial Year 2014-15 onwards) instead of that being followed as per Schedule XIV of the Companies Act 1956 hitherto. This change has resulted in the profit for the year being lower by ` 84.67 Crore.

6.4(A) During the year based on technically estimated useful life depreciation rates of the following assets are revised:

Sl. Assets Useful Life No. 1 Photocopy Machine 4 2 Fax Machine 3 3 Mobile Phone 3 4 Digitally enhance cordless telephone 3 5 Computer (including printer & scanner) 3

170 EASTERN COALFIELDS LIMITED

6.4(B) DEPRECIATION OH HEMM :

Depreciation on HEMM is provided on Straight Line Method at the rate prescribed at schedule II of the Companies Act 2013 except on certain HEMM where higher rate of depreciation is charged as per technically estimated useful life as given below:-

Particulars of the Asset Useful Life

Tele –Communication Equipment 6 Dumper Up to 35T 6 Dumper Up to 50T 7 Hydraulic Shovels up to 1.2 CUM 7 Hydraulic Shovels up to > 1.2 to 2.2 7 Hydraulic Shovels up to >2.2 to 5.0 CUM 7 Hydraulic Shovels up to > 5.0 to 10.0 CUM 7 B.H.Drill < 160mm 6 6.5 Export Sales: Sales includes Export Sales of coal, in Indian Rupee terms, to Dumgsam Cement Corporation Limited Bhutan, details of which is as under:

Quantity Coal Value Gross Value

3720.29 Tonne ` 1.33 Crore ` 1.83 Crore

7.0 CAPITAL COMMITMENT:

Capital Commitment as on 31-3-2015 (` In Crore)

Sl. Particulars Amount 1. Plant & Machineries 123.80

2. Building 3.85 3. Road & Culverts 0.86 4. Railway siding 91.97 5. Development (Prospecting & Boring) 1.94 6. Mines Development 18.08 7. Other Development 1.68 8. Water Supply 1.21

9. Others 5.20 TOTAL 248.59 8.0 :

8.a Production of Coal during the year amounted to 400.06 Lakh Tonne (360.46 Lakh Tonne).

171 ANNUAL REPORT 2014-15

8. b.

(Quantity in lakh tonnes) (` in crores)

Coal Stock 31.03.15 31.03.14 31.03.15 31.03.14

Op. Stock 19.13 21.14 299.95 309.74 Adjust / seized coal. ------Sales(*) 382.20 359.78 10,018.54 8,887.90 Closing Stock (**) 34.51 19.13 386.00 299.95

(*) Does not include coal issued for domestic consumption by Employees and boiler consumption of 2.50 lakh tonnes ( 2.77 lakh tonnes) (**) Net surplus/shortage – (-) NIL lakh tonne { Nil lakh tonne}. 9.0 Earning in foreign exchange :- NIL ( NIL ).

10.0 CIF Value of Imports. in Crores)

Particulars Current Year. Previous Year.

a. Raw Materials ------

b. Components, Stores & Spares. 6.71 10.11

c. Capital Goods. 176.25 ----

11.0 : Expenditure in Foreign Currency : ( ` in Crores) Particulars Current Year Previous Year.

a. Travelling Expenses. 0.13 0.54 b. Expenses on Know - How & Foreign Consultancy. Nil Nil c. Pension to Foreigners. Nil Nil d. Others 106.52 12.91

12.0 : Total consumption of Stores : (` in Crores) (Percentage) Current Previous Current Previous year year year year a. Total consumption of imported materials. 11.68 10.11 1.46% 1.37% b. Indigenous 786.14 725.25 98.54% 98.63% TOTAL 797.82 735.36

13.0 : GENERAL :

13.1 Impairment of assets (Prospecting Boring & Mine Development) is made when the carrying amount of each mine (Cash Generating Unit) exceeds its recoverable amount, which is being determined on the basis of future Cash Flows of subsequent five years calculated on constant price level.

172 EASTERN COALFIELDS LIMITED

13.2 An advance payment of ` 8.10 Crore has been made towards FBT in 2005-06, against which the return was submitted for ` 7.49 Crore as per self-assessment/tax audit report and assessment was made accordingly. Subsequently an appeal petition was submitted showing revised liabilities as ` 4.00 Crore. The matter is pending with the appropriate authority.

13.3 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.

13.4 Reconciliation of balances with sundry debtors is made on a perpetual basis. Confirmation of creditors and other parties are obtained in most of the cases. In the absence of confirmation from them the book balances are considered correct.

13.5 No provision is made on vendible stock except for deterioration of old stock due to fire, theft, etc.

13.6 PRESENT STATUS OF BIFR AND FINANCIAL RESTRUCTURING OF ECL

As on 31st March, 1997 accumulated losses of the Company exceeded its net worth by ` 251.20 Crores. Hence the 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 Crores into equity, the net worth of the company became positive as on that date and company came out of BIFR. The company continued to incur loss and the net worth of the company again became negative as on 31st March, 1999. The Company was again referred to BIFR in November, 1999. Company’s case was registered vide Case No.501/2000.

BIFR sanctioned the Draft Rehabilitation Scheme in November, 2004 for implementation. As per Scheme, net worth of the Company was slated to become positive in 2008-09 with concession from CIL. Cabinet Committee on Economic Affairs has also approved the BRPSE recommended Revival Plan of ECL on 6th October, 2006. As per this Scheme, net worth of the Company was slated to become positive in 2009-10.

As directed by BIFR, in its meeting held on 02.09.2011, DMRP, September, 2011 was submitted but the official approval has not been communicated till now. As per the revised DMRP of ECL – September, 2011, the net worth of the company was slated to become positive in 2015-16.

Miscellaneous Application No.341/2014 filed by the Company before the BIFR was heard on 22nd September, 2014. This application was filed by the Company to pass an order directing CIL for waiver of Unsecured Loan and conversion of Current Account Balance into Equity. The Bench observed that the already sanctioned Scheme envisaged that the relief was categorically sought from CIL for waiver of Unsecured Loan and conversion of Current Account Balance to Equity Share Capital and therefore, permission of the BIFR appeared to be implied and implicit for doing so at the level of CIL and therefore, no further permission from the BIFR was required. Accordingly, BIFR Bench directed State Bank of India (Monitoring Agency) to:

1. Clarify to ECL, being the Applicant Company, about the procedure of implementation of the unimplemented part of the Scheme and its treatment in the Balance Sheet regarding waiver of Unsecured Loan and conversion of Current Account Balance into Equity Share Capital and 173 ANNUAL REPORT 2014-15

2. Submit a report that the implementation of the sanctioned Scheme is consistent in the manner it was sanctioned.

The Bench also directed the Company to file auditor’s certificate stating status of the net worth of the Company along with its current Balance Sheet immediately after implementation of the unimplemented part of the sanctioned scheme.

State Bank of India vide its letter dated 1st November 2014 to ECL proposed modification of terms of relief and concession from CIL from “Waiver of unsecured loan of ` 519 Crore and conversion of Current Account Balance of ` 1532 Crore as on 31st March 2003 into Equity Share Capital” to “issue of non- convertible, redeemable, cumulative preference shares for an aggregate value of ` 2051 Crores to CIL by ECL in full satisfaction of Unsecured Loan and Current Account Balance as on 31st March 2003”.

After detailed deliberation in 310th CIL Board Meeting held on 8th November 2014 and as recommended by Audit Committee, Board accorded its approval to convert Unsecured Loan of ` 519 Crore and Current Account Balance of ` 1532 Crore, aggregating to ` 2051 Crore, as on 31st March 2003 of ECL with CIL into fully paid-up 6% non-convertible, cumulative, redeemable, Preference Shares of face value of ` 1000/ - each to CIL. The Preference Shares are to be redeemed on expiry of 7 years from the date of issue and allotment. However, CIL would have the option to redeem at any time after the expiry of 5 years from the date of issue and allotment. Redemption of preference shares shall be at the face value (no redemption premium). Annual cumulative dividend is 6%.

Accordingly Authorized Capital of ECL was raised from ` 2500 Crore to ` 4600 Crore (Refer Note 1) and in the 275th ECL Board meeting held on 25th December 2014 the Board approved the proposal for offer and allotment of Preference Shares amounting to ` 2050.97 Crore to CIL. On 26th December 2014, 20509700 6% non-convertible, cumulative, redeemable, Preference Shares of ` 1000/- each amounting to ` 2050.97 Crores was allotted and issued to CIL, in accordance with the above, and consequently the net worth of ECL became positive.

The company had filed a Miscellaneous Application (MA) dated 02.02.2015, registered in BC section vide No.53/ 2015/ BC dated 02.02.2015. In the prayer of the MA, the Company had requested the Hon’ble Bench to issue the following directions inter-alia:

a) To make an affirmative declaration with regard to the positive net worth of the Company and further declare it as no longer a Sick Industrial Company as per the provisions of the Act; and

b) To pass such other or further orders as this Hon’ble Board may deem fit and proper on the facts and circumstances of the present case.

In the hearing held on 11.02.2015 in MA No. 53/ 2015, the representative of the company stated that the company has filed an MA requesting the Board to de-register the company from the purview of SICA as

the net worth of the company has turned positive at ` 916.87 Crore based on its audited Balance Sheet as on 31.12.2014 and auditors certificate annexed with the MA.

174 EASTERN COALFIELDS LIMITED

SBI, the monitoring agency, recommended vide its letter dated 09.02.2015 for de-registration of the company from the purview of SICA/ BIFR being a fit case with in the meaning of section 3(1)(o) of SICA since the net worth of the company has become positive.

Having considered the submissions made during the hearing and material on record, the Bench issued the following directions inter-alia:

a) The sick company, M/ s Eastern Coalfields Ltd. (BIFR Case No.501/2000) ceases to be a sick industrial company, with in the meaning of Section 3(1)(o) of SICA, as its net-worth has turned positive. It is therefore, discharged from the purview of SICA / BIFR.

b) The Board discharges State Bank of India from the responsibility of Monitoring Agency to the Board. c) Accordingly, MA No.53/2015 filed by the company stands disposed off.

13.7 In the absence of notification of rules by the Central/State Government the effects of the provisions of the The Mines and Minerals (Development and Regulation) Amendment Act, 2015 has not been considered in the accounts.

13.8 MAT Credit Entitlement: During the year the Company is required to pay Minimum Alternative Tax (MAT) as the same exceeds the normal Income Tax payable for the year. MAT credit being the excess of MAT over the normal Income Tax payable is recognized as an asset – “MAT Credit Entitlement” for adjustment against the normal Income Tax during the specified period under the Income Tax Act, in accordance with the recommendation contained in the guidance note issued by the Institute of Chartered Accountants of India. The Company shall review the “MAT Credit Entitlement” at each Balance Sheet date and make necessary adjustment during the specified period.

14. ACCOUNTING STANDARDS:

1). 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.

2) AS-18: Related Party Disclosures – Key Managerial Personnel Whole time Functional Directors: a) Shri Rakesh Sinha Chairman-cum-Managing Director b) Shri S. Chakravarty Director (Technical) Opn. c) Shri C. K. Dey Director (Finance) (Up to 28.02.15) d) Shri Ramesh Chandra Director (Technical) P&P (Up to 30.06.14) e) Shri B. R. Reddy Director (Technical) P&P (w.e.f. 30.09.14) d) Shri K. S. Patro Director (Personnel)

Part-time Official Director: a) Shri A. Chatterjee Director (Finance), CIL (Up to 28.02.15) b) Shri V. Peddanna Director, MoC c) Shri K. K. Gautam Special Director appointed by BIFR (Up to 28.02.15)

175 ANNUAL REPORT 2014-15

Non-Official Part-time Director

a) Shri Subrata Chaudhuri (Up to 23.06.2014) b) Shri S. K. Mohanti (Up to 23.06.2014) c) Shri S. M. Lodha (Up to 23.06.2014) d) Shri S. M. Sharma (Up to 08.09.2014)

Company Secretary a). Shri V. R. Reddy

Details of transactions during the year DIRECTORS’ REMUNERATION: (` in crores) Current Year PreviousYear

Salary & Allowances 0.86 0.93 Provident Fund 0.11 0.11 Perquisites 0.16 0.19 Retirement Benefit 0.00 Nil Leave Encashment 0.06 0.04 Medical 0.02 0.11 Special Director’s sitting fee 0.03 Nil TA/DA & Others 0.06 Nil Total 1.30 1.38

Salary and Allowances includes PRP of ` NIL

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

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.

Balance with Subsidiaries of Coal India Limited:

Name of Company Amount (Debit) Amount (Credit)

Bharat Coking Coal Limited 17,48,146.60 —- Central Coalfields Limited 13,32,382.45 —- Western Coalfields Limited 8,12,213.08 —- CMPDIL 2,46,85,124.00 —- Northern Coalfields Limited 4,62,681.10 —- South Eastern Coalfields Limited 27,99,07,314.56 —- Mahanadi Coalfields Limited 18,47,729.25 —-

Balance with Coal India Limited (Holding Company): ` 1,29,01,16,099.58 (Credit).

176 EASTERN COALFIELDS LIMITED

3) AS – 20 Earning per share: Earnings per share is calculated by dividing the profit earned by the company for the year with the weighted average number of equity share of the company outstanding during the year as per details given below :- i) Profit during year ended 31ST March, 2015 - ` 1,139.40 Crore ii) Weighted average number of shares - 22184500 Nos. EPS - (Basic & diluted) (a/b) - ` 513.60

4) 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 reversed in subsequent periods. The detailed calculations are given below:

( ` in crore) Deferred Tax Adjustment Deferred Tax Particulars Asset/(Liability) during the year Asset/(Liability) As on 01.04.14 2014-15 As on 31.03.15 Deferred Tax Assets: (i) Provision for Gratuity 1518.73 –1423.70 95.03 (ii) Provision for super annuation benefit 123.12 25.16 148.28 (iii) Provision for Mine Closure 71.03 66.50 137.53 1712.88 –1332.04 380.85 Deferred Tax Liability (i) Difference between Tax & Book depreciation –209.52 99.20 –110.32 Net 1503.36 –1232.84 270.52 Net Deferred Tax Asset 510.99 –419.04 91.95 Impact of change in tax rates in current year Net Amount debited to Profit and Loss Account Deferred Tax Asset (Net) 510.99 –419.04 91.95

In the opinion of the management there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

5) AS-24 : There is no discontinuation in operation of any activity in any mines during the year.

6) AS- 28: Impairment loss of ` 19.66 crores (` 19.29 crores) on prospecting & boring and other mines development cost, including Capital WIP, for the year has been debited to Statement of Profit and Loss under the head "impairment of assets " as per company's accounting policy.

7) AS-29 : In respect of Provision, Contingent Liabilities the information is given below.

177 ANNUAL REPORT 2014-15

(` in Crores)

a) Details of Provision : ( in crores)

Details Opening Provision Provision Closing Provision as on made during Written back provision 31.03.2014 The year/Period During the as on Year 31.03.2015

Unservi ceable/Damaged/ Obsolete Stores 12.54 --- 2.07 10.47 Non moving Stores 31.43 0.55 3.64 28.34 Loans and Advances and Other Current Assets 19.76 0.04 2.49 17.31 Mine Closure Plan 73.52 74.54 ---- 148.06 Actuarial provision for Gratuity 2533.42 76.32 ---- 2609.74 Actuarial provision for Leave encashment 517.03 43.29 ---- 560.32 Actuarial provision for LTC/ LLTC 31.27 3.67 --- 34.94 Actuarial provision for Life Cover Scheme 17.52 0.79 --- 18.31 Actuarial provision for Settlement Allowances 57.94 0.95 --- 58.89 Actuarial Provision for Fatal Mine Accident Policy Benefit 46.92 --- 3.36 43.56 Actuarial Provision for Gross Personal Accident Policy 0.15 ------0.15 Actuarial Provision for Post Retirement Medical benefit 114.29 27.30 --- 141.59 Total 3455.79 227.45 11.56 3671.68

b) Contingent Liabilities : (` in Crores) Current Year PreviousYear Sales tax 219.16 154.80 Royalty & cess 589.70 596.42 Others 999.87 565.20 TOTAL 1,808.73 1,316.42

15.0 The figures in the parenthesis represent those of the corresponding previous year.

16.0 Figures of the previous year have been regrouped, re-arranged and recast wherever necessary in conformity with thoseof the current year.

178 EASTERN COALFIELDS LIMITED

179 CONTENTS

Page No. 1. Management 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 101

7. Auditors' Report and Management's Reply 103

8. Balance Sheet as at 31st March, 2015 120

9. Statement of Profit & Loss for the year ended 31st March, 2015 122

10. Cash Flow Statement for the year ended 31st March, 2015 124

11. Notes forming part of Balance Sheet 126

12. Notes forming part of Statement of Profit & Loss 149

13. Significant Accounting Policies 159

14. Additional Notes on Accounts 165 ANNUAL REPORT & ACCOUNTS 2014-15

EASTERN COALFIELDS LIMITED ( A Subsidiary of Coal India Limited ) SANCTORIA , P.O. DISHERGARH, DIST. BURDWAN www.easterncoal.gov.in