CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19 Annual Report & Accounts 2018-19 CENTRAL COALFIELDS LIMITED A Miniratna Company (A Subsidiary of Coal India Limited) (CIN: U10200JH1956GOI000581) Regd. Office : Darbhanga House, Ranchi - 834 029 JHARKHAND 1 CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19 VISION/MISSION & OBJECTIVES 1.1 VISION To emerge as a National player in the Primary Energy Sector, committed to provide energy security to the Country, by attaining environmentally and Socially Sustainable Growth , through best practices from Mine to Market. MISSION The Mission of Central Coalfields Limited (CCL) is to produce and market the planned quantity of Coal and Coal products efficiently and economically in Eco-Friendly manner, with due regard to Safety, Conservation and Quality. 1.2 OBJECTIVES The major objectives of Central Coalfields Limited (CCL) are — 1. To optimize generation of internal resources by improving productivity of resources, prevent wastage and to mobilize adequate external resources to meet investment need. 2. To maintain high standards of Safety and strive for an accident free mining of Coal. 3. To lay emphasis on afforestation, protection of Environment and control of Pollution. 4. To undertake detailed exploration and plan for new Projects to meet the future Coal demand. 5. To modernize existing Mines. 6. To Develop technical know-how and organizational capability of Coal mining as well as Coal beneficiation and undertake, wherever necessary, applied research and development work related to Scientific exploration for greater extraction of Coal. 7. To improve the quality of life of employees and to discharge the corporate obligations to Society at large and the community around the Coalfields in particular. 8. To provide adequate number of skilled manpower to run the operations and impart technical and managerial training for up gradation of skill. 9. To improve consumer satisfaction. 10. To enhance the CSR activities specifically in the field of Health, Sanitation and Drinking Water in the Surrounding villages. 2 ____________________________________________________CENTRAL COALFIELDS LIMITED CONTENTS Sl. No. Particulars Page No. 1. Management 1 2. Bankers & Auditors 3 3. Notice – AGM 4 4. Operational Statistics 8 5. Financial Position 14 6. Director’s Report 18 7. Report on Corporate Governance 64 8. Profile of Directors 75 9. Certificate on Corporate Governance by Statutory Auditor 79 10. Secretarial Audit Report and Management Reply 80 11. Comments of the Comptroller and Auditor General of India under Section 143(6)(b) of the Companies Act, 2013 86 12. Annexures forming part of Directors Report 88 13. Management Discussions & Analysis Report 112 14. Standalone Financial Results 118 15. Standalone Balance Sheet as at 31st March, 2019 121 16. Standalone Profit & Loss Account for the Year Ended 31st March, 2019 123 17. Standalone Cash Flow Statement for 2018–19 125 18. Notes to the Standalone Financial Statement (Note 1 to 37) 128 19. Additional Notes to the Standalone Financial Statement (Note 38) 185 20. Auditors’ Report & Management Reply (including Appendix 1) on Standalone Financial Statement 214 21. Consolidated Financial Results 233 22. Consolidated Balance Sheet as at 31st March, 2019 236 23. Consolidated Profit & Loss Account for the Year Ended 31st March, 2019 238 24. Consolidated Cash Flow Statement for 2018–19 240 25. Notes to the Consolidated Financial Statement (Note 1 to 37) 243 26. Additional Notes to the Consolidated Financial Statement (Note 38) 296 27. Form AOC – 1 323 28. Auditors’ Report & Management Reply (including Appendix 1) on Consolidated Financial Statement 324 1 ____________________________________________________Board of DirectorsCENTRAL COALFIELDS LIMITED (As on 05th August, 2019) Shri Gopal Singh Chairman-cum-Managing Director DIRECTORS Shri N. K. Agarwal Shri V. K. Srivastava Shri R. S. Mahapatro Shri Bhola Singh Director (Finance) Director (Tech./Oprn.) Director (Personnel) Director (Tech./P&P) PART TIME DIRECTORS Shri Ashish Upadhyaya Shri R. P. Srivastava Jt. Secretary, Ministry of Coal Director (P&IL), CIL NON-OFFICIAL PART TIME DIRECTORS Shri Bharat Bhushan Goyal Shri Subhau Kashyap Smt. Jajula Gowri Shri Shiv Arora Shri Harbans Singh Ex-Additional Chief Adviser (Cost) M. B. B. S. Advocate Chartered Accountant Ex–DG Apex, GSI PERMANENT INVITEES Shri Salil Kr. Jha Shri Aboobacker Siddiqui P. COM, EC Rly., Hajipur Secretary (Mines & geology), GoJ 2 Shri Ravi Prakash Company Secretary CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19 PRESENT MANAGEMENT As on 05th August, 2019 (i.e. on the date of the Sixty Third Annual General Meeting) CHAIRMAN-CUM-MANAGING DIRECTOR Shri Gopal Singh FUNCTIONAL DIRECTORS Shri Niranjan Kumar Agarwal : Director (Finance) Shri V. K. Srivastava : Director (Tech./Oprn.) Shri R.S. Mahapatro : Director (Personnel) Shri Bhola Singh : Director (Tech./P&P) PART TIME DIRECTORS Shri Ashish Upadhyaya, IAS : Jt. Secretary, Ministry of Coal, Govt. of India, New Delhi Shri R. P. Srivastava : Director (P&IR), CIL NON-OFFICIAL PART TIME DIRECTORS Shri Bharat Bhushan Goyal : Ex-Additional Chief Adviser (Cost), D/o Expenditure Shri Subhau Kashyap : M. B. B. S. Smt. Jajula Gowri : Advocate Shri Shiv Arora : Chartered Accountant Shri Harbans Singh : Ex – Director General Apex, Geological Survey of India PERMANENT INVITEES Shri Salil Kumar Jha : Chief Operation Manager, EC Railway Shri Shri Aboobacker Siddique P : Secretary (Mines & Geology) Govt. of Jharkhand COMPANY SECRETARY Shri Ravi Prakash 1 CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19 MANAGEMENT DURING 2018-19 CHAIRMAN-CUM-MANAGING DIRECTOR Shri Gopal Singh : Chairman-cum-Managing Director (w.e.f. 01.03.2012) FUNCTIONAL DIRECTORS Shri D. K. Ghosh : Director (Finance) (w.e.f. 06.07.2013 to 30.04.2019) Shri V.K. Srivastava : Director (Tech.) (w.e.f. 15.05.2018) Shri Bhola Singh : Director (Tech.) (From 15.01.2019) Shri R.S. Mahapatro : Director (Personnel) (w.e.f. 08.06.2015) Shri Awadh Kishor Mishra : Director (Tech.) (w.e.f. 01.10.2016 to 30.11.2018) PART TIME DIRECTORS Shri Ashish Upadhyaya : Jt. Secretary, Ministry of Coal, Govt. Of India, New-Delhi. (w.e.f. 05.02.2018) Shri R. P. Shrivastava : Director (P&IR), Coal India Limited, Kolkata (w.e.f. 19.02.2018) NON-OFFICIAL PART TIME DIRECTORS Shri Bharat Bhushan Goyal : Ex-Additional Chief Adviser (Cost), D/o Expenditure (w.e.f. 14.11.2015) Shri Ashok Gupta : Chartered Accountant (w.e.f. 14.11.2015 to 29.01.2019) Shri Subhau Kashyap : MBBS (w.e.f. 13.12.2018) PERMANENT INVITEES Shri S. K. Barnwal : Secretary (Mines & Geology) (w.e.f. 16.11.2016) Govt. of Jharkhand Shri Salil Kumar Jha : Chief Operation Manager, EC Railway (w.e.f. 24.05.2016) company secretary : Shri Ravi Prakash (w.e.f. 13.07.2017) 2 CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19 BANKERS Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Corporation Bank Dena Bank Indian Overseas Bank State Bank of India Oriental Bank of Commerce Punjab National Bank Syndicate Bank UCO Bank Union Bank of India United Bank of India STATUTORY AUDITORS M/s. K.C. Tak & Co. New Ananthpur, Ranchi, Jharkhand BRANCH AUDITORS M/s. V. Rohatgi & Co. M/s N.K.D. & Co. 1st Floor, Sarjana Building, Main Road, Ranchi , Jharkhand Ranchi – 834001, Jharkhand M/s. L. K. Saraf & Co. M/s Sanjay Bajoria & Associates Ranchi – 834001, Jharkhand Ranchi – 834001, Jharkhand COST AUDITORS M/s SC Mohanty & Associates Plot No. 370/186/2157 Shakti Bhawan, Beside Toyota Showroom AT – Patia, PO – KIIT, Bhubaneswar – 751024, Odisha BRANCH COST AUDITORS M/s. MANI & CO. M/s. MUSIB & Co. Ashoka Building, No. 204, Gajraj Mansion, 111, Southern Avenue, 2nd Floor, Diagnol Road, Kolkata – 700029 Bistupur, Jamshedpur, Jharkhand M/s K. B. Saxena & Associates M/s K. G. Goyal & Associates 3rd Floor, Shagun Palace Sapru Marg, 4A, POCKET 2, Mix Housing, New Kondli, Hazratganj, Lucknow – 226001 Mayur Vihar – III, New Delhi – 110096 SECRETARIAL AUDITORS M/s Kant Sanat & Associates 1st Floor, Raghunandan Sahu Bhawan, Beside Durian Furniture, Argora-Kadru Road, Opp. Ashok Nagar, Ranchi-834002 REGISTERED OFFICE Darbhanga House Ranchi 834 029 (Jharkhand) 3 CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2018-19 N O T I C E Secy. CS/3(4)/AGM–63/2019/622 Dated: — 03.08.2019 NOTICE FOR THE SIXTY THIRD ANNUAL GENERAL MEETING Notice is hereby given that the 63rd Annual General Meeting of the members of Central Coalfields Limited will be held on Monday the day of 5th August, 2019 at 11.30 AM at the registered office of the Company, Darbhanga House, Ranchi-834029, Jharkhand to transact the following business: A. ORDINARY BUSINESS : 1. To consider and adopt : a. The Audited Financial Statements of the Company for the financial year ended March 31, 2019 including Audited Balance Sheet as at 31st March, 2019, Profit and Loss Account for the year ended on that date, Cash Flow Statement together with all Notes, Additional Notes on the Financial Statements and Significant Accounting Policy for the year 2018-19, the Reports of Statutory Auditor and Comptroller & Auditor General of India and Directors’ Report. b. The Consolidated Audited Financial Statements of the Company for the financial year ended March 31, 2019 including Audited Balance Sheet as at 31st March, 2019, Profit and Loss Account for the year ended on that date, Cash Flow Statement together with all Notes, Additional Notes on the Financial Statements and Significant Accounting Policy for the year 2018-19, the Reports of Statutory Auditor and Comptroller & Auditor General of India. 2. To confirm payment of two Interim Dividends paid on equity shares of the Company as Final Dividend for the Financial Year 2018- 19. 3. To appoint a Director in place of Shri V.K. Srivastava (DIN- 8155817) Whole-time Director who retires by rotation in terms of Section 152(6) of the Companies Act 2014 and being eligible, offers himself for reappointment. 4. To appoint a Director in place of Shri R.