ANNUAL REPORT & ACCOUNTS 2012-13 ering ow In p d m ia E EASTERN COALFIELDS LIMITED ( A Subsidiary of Coal India Limited ) SANCTORIA , P.O. DISHERGARH, DIST. BURDWAN CONTENTS Page No. 1. Management/Bankers/Auditors 1 2. Bankers / Auditors / Vision / Mission Statement 2 3. Notice of Annual General Meeting 3 4. Chairman's Statement 4 5. Directors' Report 6 6. Comments of the Comptroller and Auditor General of India 98 7. Auditors' Report and Management's Reply 99 8. Balance Sheet as on 31st March, 2012 113 9. Profit & Loss Accounts for the year ended 31st March, 2012 115 10. Cash Flow Statement for the year ended 31st March, 2012 117 11. Notes forming part of Balance Sheet 119 12. Notes forming part of Profit & Loss Account 146 13. Significant Accounting Policies 159 14. Notes on Accounts 164 EASTERN COALFIELDS LIMITED MANAGEMENT DURING 2012-13 MANAGEMENT AS ON 25th MAY, 2013 FUNCTIONAL DIRECTORS: FUNCTIONAL DIRECTORS: Shri Rakesh Sinha Shri Rakesh Sinha Chairman-cum-Mg. Director Chairman-cum-Mg. Director Shri S.K. Srivastava Shri S.K. Srivastava Director (Personnel) Director (Personnel) Shri S. Chakravarty Shri S. Chakravarty Director (Technical) Opn. Director (Technical) Opn. Shri A.K. Soni Shri C.K. Dey Director (Finance) (Up to 31.01.2013) Director (Finance) Shri C.K. Dey Shri Ramesh Chandra Director (Finance) (From 01.02.2013) Director (Technical) P&P Shri Ramesh Chandra Director (Technical) P&P (From 04.03.2013) PART-TIME OFFICIAL DIRECTORS: PART-TIME OFFICIAL DIRECTORS: Shri A. Chatterjee Shri A.K. Sinha Director (Finance), CIL Director (Finance), CIL (Up to 31.10.2012) Shri V. Peddanna Shri A. Chatterjee Director, MoC Director (Finance), CIL (From 03.12.2012) SPECIAL DIRECTOR APPOINTED BY BIFR: Shri D.N. Prasad Shri K.K. Gautam Director (Technical), MoC (Up to 01.06.2012) NON-OFFICIAL PART-TIME DIRECTORS: Shri V. Peddanna Director, MoC (From 01.06.2012) Shri Subrata Chaudhuri SPECIAL DIRECTOR APPOINTED BY BIFR: Shri S.K. Mohanty Shri K.K. Gautam Shri S.M. Lodha NON-OFFICIAL PART-TIME DIRECTORS: Shri S.M. Sharma Shri Subrata Chaudhuri Shri S.K. Mohanty COMPANY SECRETARY: Shri S.M. Lodha Shri V.R. Reddy Shri S.M. Sharma Prof. (Dr.) M.K. Srivastava (Up to 07.06.2012) COMPANY SECRETARY: Shri V.R. Reddy (From 19.07.2012) 1 ANNUAL REPORT 2012-13 BANKERS DURING 2012-13 State Bank of India Canara Bank United Bank of India United Commercial Bank STATUTORY AUDITOR DURING 2012-13 M/s. Dutta Sarkar & Co., 7A, Kiran Sankar Roy Road, 2nd Floor, Kolkata - 700001 BRANCH AUDITORS DURING 2012-13 M/s. Lodha & Co., 14 Government Place East, Kolkata-700069 M/s. Roy Ghosh & Associates, 39, Kalna Road, Badamtala, Burdwan-713401 M/s. L B Jha & Co., GF-1, Gillander House, 8, Netaji Subhas Road, Kolkata-700001 M/s. U S Saha & Co., 35, Bahir Sarbamangla Road, Burdwan-713101 M/s. J. Gupta & Co., 3, Satyanarayan Temple Road, 1st Floor, Bandaghat, Howrah - 711106 REGISTERED OFFICE OF THE COMPANY CMD's Office, Sanctoria, Post - Dishergarh, District - Burdwan, Pin - 713333 VISION STATEMENT To emerge from the position of domestic leader to leading global player in the energy sector by adopting best practices from mine to market with due care to environmental and social sustenance. MISSION STATEMENT Produce the planned quantity of coal efficiently and economically with due regard to safety, conservation & quality. 2 EASTERN COALFIELDS LIMITED ering ow In p d m ia E Eastern Coalfields Limited ( A Subsidiary of Coal India Limited ) Office of the Chairman-cum-Managing Director Sanctoria, P.O. Disergarh- 713333, Distt. Burdwan ( W.B.) Company Secretariat Ref. No: ECL : CS: 15(2013)/710 May 20, 2013 NOTICE Notice is hereby given that the Thirty-eight Annual General Meeting of the Shareholders of Eastern Coalfields Limited will be held on Saturday, the 25th May, 2013 at the Registered Office of the Company at Sanctoria, P.O. Disergarh-713333, Distt. Burdwan (West Bengal) at 11.00 A.M. to transact the following business:- ORDINARY BUSINESS: 1. To receive, consider and adopt the Audited Balance Sheet as on 31st March, 2013 and Profit & Loss Account for the year ended 31st March, 2013 together with the Report of the Auditors and Directors thereon. 2. To appoint a Director in place of Shri A. Chatterjee, Director, who retires in terms of Articles 33(i) (e) (iii) of the Articles of Association of the Company and is eligible for reappointment. 3. To appoint a Director in place of Shri V. Peddanna, Director, who retires in terms of Articles 33(i) (e) (iii) of the Articles of Association of the Company and is eligible for reappointment. By order of the Board Dated : May 20, 2013 Registered Office : sd/- Eastern Coalfields Limited (V. R. Reddy) Sanctoria, P.O. Disergarh, Distt. Burdwan (West Bengal) General Manager (Finance) / PIN : 713333. Company Secretary Notes : (i) A member entitled to attend and vote at the meeting is entitled to appoint a Proxy to attend and vote instead of himself and the proxy need not be a member of the Company. The instrument appointing the proxy should be deposited at the Registered Office of the Company not less than forty-eight hours before the commencement of the meeting. (ii) Members are also requested to accord their consent for convening the meeting at a shorter Notice under Sec. 171(2) (i) of the Companies Act, 1956. 3 ANNUAL REPORT 2012-13 CHAIRMAN’S STATEMENT Friends, I have great pleasure in welcoming you to the 38th Annual General Meeting of Eastern Coalfields Limited. The Directors’ Report, audited accounts for the financial year 2012-13 together with the report of Statutory Auditors and the report and review of the Comptroller and Auditor General of India, are already with you. 1. Energy is one of the major inputs for economic development of any country, today the Indian economy is in acute need of energy and coal dominates the energy mix in India, contributing over 52% of the total primary energy production. Our company produces one of the best qualities of Non-Coking Coal which caters to the needs of various power plants, steel plants, cement factories etc. 2. The strategic vision of our company is to place itself on a path of accelerated growth with enhancement in productivity, competitiveness and profitability while meeting the growing demand of coal in the country in an environmentally and socially sustainable manner. 3. In the financial year 2012-13 our company has set new records in terms of production, despatch, profit etc. This year the coal production was 33.901 MT. During the year, we have set milestones in the history of the company in recording highest ever turnover of ` 12162.59 crores, highest ever profit of ` 1655.54crores, highest ever OBR of 76.448 M Cu.M and highest ever coal off- take of 35.84 MT. But success also comes with more responsibility. We have to strive hard to maintain this growth rate and perform better in the days to come. 4. During the year 2012-13, 4 (four) projects namely PR for Jhanjra low height CM, PR for Kumardihi B CM, UCE of Shankarpur (UG+OC) and Tilaboni were approved by the Board. 5. Continuous efforts are being made to enhance the coal production from underground mines. As on 31.03.2013, 220 Nos. of SDLs and 32 Nos. of LHDs are in operation in different underground mines of ECL. 6. The impact on the environment due to extraction of coal is being monitored constantly by our Company and adequate measures are undertaken for control of Air, Water & Noise Pollution, Land degradation, Deforestation etc. These measures are being undertaken in accordance with the provisions of all statutory norms, Acts and Rules on a regular basis. During 2012-13 we planted 50950 Nos. of trees/sapling covering an area of 25 Ha. 7. We have also committed for sustainable development and CSR activities in villages around ECL command area by providing drinking water, improving educational facilities and health care. 4 EASTERN COALFIELDS LIMITED 8. We have always given the highest priority towards safety, which in ECL is considered as a part of core production process. To improve the safety standards, ECL has vigorously pursued several measures during the year. 9. Our Company has complied with the conditions of corporate governance as stipulated in the Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs) issued by the Department of Public Enterprises, Government of India. As required under the said guidelines a separate section on Corporate Governance has been added in the Directors’ Report and a Compliance Certificate has been obtained from the statutory auditors. 10. We are committed to produce more than 35 MT coal during 2013-14 and confident that ECL will march ahead in the times to come and with co-operation of all and our tireless efforts, the company will come out of BIFR in days to come. I express my sincere thanks to Coal India Limited, Ministry of Coal, other Central Government Ministries and Departments, State Governments, all employees, Trade Unions, consumers, and suppliers for their unstinted support and relentless co-operation. (Rakesh Sinha) Chairman Place: Sanctoria Date: 25th May, 2013 5 ANNUAL REPORT 2012-13 DIRECTORS' REPORT To The Shareholders, Eastern Coalfields Limited Gentlemen, I, on behalf of the Board of Directors, have pleasure in presenting the 38th Annual Report on the working of your Company together with audited accounts for the year ended 31st March, 2013, report of the Statutory Auditors and Management’s reply thereon as well as the comments of the Comptroller and Auditor General of India on the audited accounts.