ANNUAL REPORT & ACCOUNTS 2017-2018 CENTRAL COALFIELDS LIMITED A Miniratna Company www.centralcoalfields.in Annual Report & Accounts 2017-18 CENTRAL COALFIELDS LIMITED A Miniratna Company (A Subsidiary of Coal India Limited) (CIN: U10200JH1956GOI000581) Regd. Office : Darbhanga House, Ranchi - 834 029 JHARKHAND CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2017-18 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. Page No. 1. Management 1 2. Bankers & Auditors 3 3. Notice – AGM 4 4. Operational Statistics 7 5. Financial Position 13 6. Director’s Report 17 7. Report on Corporate Governance 61 8. Profile of Directors 71 9. Certificate on Corporate Governance by Statutory Auditor 76 10. Secretarial Audit Report and Management Reply 77 11. Comments of the Comptroller and Auditor General of India under Section 143(6)(b) of the Companies Act, 2013 84 12. Annexures forming part of Directors Report 86 13. Management Discussions & Analysis Report 108 14. Auditors’ Report on Standalone Financial Results 114 (Pursuant to Regulation 33 of SEBI LODR Regulations 2015) 15. Standalone Financial Results 116 16. Standalone Balance Sheet as at 31st March, 2018 119 17. Standalone Profit & Loss Account for the Year Ended 31st March, 2018 121 18. Standalone Cash Flow Statement for 2017–18 123 19. Notes to the Standalone Financial Statement (Note 1 to 37) 126 20. Additional Notes to the Standalone Financial Statement (Note 38) 189 21. Auditors’ Report & Management Reply (including Appendix 1) on Standalone Financial Statement 209 22. Auditors’ Report on Consolidated Financial Statement 225 (Pursuant to Regulation 33 of SEBI LODR Regulations 2015) 23. Consolidated Financial Results 227 24. Consolidated Balance Sheet as at 31st March, 2018 230 25. Consolidated Profit & Loss Account for the Year Ended 31st March, 2018 232 26. Consolidated Cash Flow Statement for 2017–18 234 27. Notes to the Consolidated Financial Statement (Note 1 to 37) 237 28. Additional Notes to the Consolidated Financial Statement (Note 38) 294 29. Form AOC – 1 313 30. Auditors’ Report & Management Reply (including Appendix 1) on Consolidated Financial Statement 316 1 CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2017-18 PRESENT MANAGEMENT As on 07th August, 2018 (i.e. on the date of the Sixty Second Annual General Meeting) CHAIRMAN-CUM-MANAGING DIRECTOR Shri Gopal Singh FUNCTIONAL DIRECTORS Shri D.K. Ghosh : Director (Finance) Shri Awadh Kishor Mishra : Director (Tech./Oprn.) Shri R.S. Mahapatro : Director (Personnel) Shri V. K. Srivastava : 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 Ashok Gupta : Chartered Accountant PERMANENT INVITEES Shri Salil Kumar Jha : Chief Operation Manager, EC Railway Shri S. K. Barnwal : Secretary (Mines & Geology) Govt. of Jharkhand COMPANY SECRETARY Shri Ravi Prakash 1 CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2017-18 MANAGEMENT DURING 2017-18 CHAIRMAN-CUM-MANAGING DIRECTOR Shri Gopal Singh FUNCTIONAL DIRECTORS Shri D. K. Ghosh : Director (Finance) Shri Subir Chandra : Director (Tech./Oprn.) (Superannuated on 31.03.2018) Shri R.S. Mahapatro : Director (Personnel) Shri Awadh Kishor Mishra : Director (Tech./P&P) PART TIME DIRECTORS Shri R. P. Gupta, IAS : Jt. Secretary, Ministry of Coal, Govt. Of India, New-Delhi. (Resigned on 09.08.2017) Shri C. K. Dey : Director (Finance)Coal India Limited, Kolkata (from 19.09.2017 to 19.02.2018) 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 Shri Ashok Gupta : Chartered Accountant PERMANENT INVITEES Shri S. K. Barnwal : Secretary (Mines & Geology) Govt. of Jharkhand Shri Salil Kumar Jha : Chief Operation Manager, EC Railway company secretary : Shri Ravi Prakash (w.e.f. 13.07.2017) 2 CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2017-18 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.S. K. Singhania & Co. 217B, Kutchary Road, Panchwati Plaza, 2nd Floor, Ranchi- 834001, Jharkhand BRANCH AUDITORS M/s. J. N. Agrawal & Co. M/s. L. K. Saraf & Co. Ranchi – 834001, Jharkhand Ranchi – 834001, Jharkhand M/s Sanjay Bajoria & Associates M/s N.K.D. & Co. 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 Pratibha Khandelwal & Associates F – 2/14, LIC Flats, Sector – 2, Vidhyadhar Nagar, Jaipur – 302039 (Rajasthan) REGISTERED OFFICE Darbhanga House Ranchi 834 029 (Jharkhand) 3 CENTRAL COALFIELDS LIMITED ANNUAL REPORT 2017-18 N O T I C E Secy. CS/3(4)/AGM–62/2018/992 Dated: 06.08.2018 NOTICE FOR THE SIXTY SECOND ANNUAL GENERAL MEETING Notice is hereby given that the 62nd Annual General Meeting of the members of Central Coalfields Limited will be held on Tuesday the 7th day of August, 2018 at 01.00 PM at Scope Complex, CIL, New Delhi 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, 2018 including Audited Balance Sheet as at 31st March, 2018, 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 2017-18, 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, 2018 including Audited Balance Sheet as at 31st March, 2018, 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 2017-18, 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 2017-18. 3. To appoint a Director in place of Shri A.K Mishra (DIN-07646542) 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. S. Mahapatro (DIN-07248972), Whole-time Director who retires by rotation in terms of Section 152 (6) of the Companies Act 2013 and being eligible, offers himself for reappointment. B. SPECIAL BUSINESS : 1. Ratification of Appointment & Remuneration of Cost Auditor for the Financial Year 2018-19 under section 148 of Companies Act 2013 To consider & if thought fit, to ratify with or without modification(s), the following resolution as an Ordinary Resolution: “RESOLVED THAT pursuant to Section 148(3) of the Companies Act, 2013 and Rule 14 of the Companies (Audit and Auditors) Rules, 2014 and other provisions of the Act, the remuneration and reimbursement of out of pocket expenses approved by the Board in its 430th Board Meeting held on 28.09.2016 to M/s S.C. MOHANTY & ASSOCIATES, Bhubaneswar, the Principal Cost Auditor and M/s MANI & CO, Kolkata, M/s MUSIB & CO, Jamshedpur, M/s K.B.SAXENA & ASSOCIATES, Lucknow and M/s KG GOYAL & ASSOCIATES, New Delhi, the Branch Cost Auditors in connection with the cost audit of CCL Head Quarter and respective areas of CCL for the financial year 2018-19 be and is hereby ratified”.