___________________________________________________ CENTRAL COALFIELDS LIMITED Contents Sl. No. Page No. 1. Management 1 2. Bankers & Auditors 3 3. Notice 4 4. Financial Position 7 5. Director’s Report 12 6. Minutes of the Annual General Meeting 81 7. Comments of the Comptroller and Auditor General of India under Section 619 (4) of the Companies Act, 1956 83 8. Management Discussions & Analysis Report 84 9. Financial Results as per Clause 41 89 10. Balance Sheet as at 31st March, 2012 94 11. Profit & Loss Account for the Year Ended 31st March, 2012 96 12. Notes to Balance Sheet (1 to 19) 97 13. Notes to Profit & Loss Account ( 20 to 32) 117 14. Significant Accounting Policy (Note - 33) 126 15. Additional Notes on Accounts (Note - 34) 131 16. Cash Flow Statement for 2011-12 141 17. Annexure VII to Clause - 41 143 18. Auditor’s Report and Management’s Reply (Including Appendix - 1) 145 1 Board of Directors (As on 25th May, 2012) Shri Gopal Singh Chairman-cum-Managing Director FUNCTIONAL DIRECTORS Shri T. K. Nag Shri A. Chatterjee Shri R. R. Mishra GOVERNMENT NOMINEES Shri S. K. Singh Shri R. Mohan Das Jt. Secy., MOC Dir. (P&IR), CIL INDEPENDENT DIRECTORS Shri Gautam Basu Shri S. K. Sarkar Shri S. Chakrabarti Shri Anand Kumar Prof. K. V. Ramani PERMANENT INVITEES Shri Deepak Nath Shri A. K. Sarkar Chief Operations Manager Addl. Chief Secretary, Mines & Geology Deptt. East Central Railway Govt. of Jharkhand COMPANY SECRETARY Shri C.V.N. Gangaram ___________________________________________________ CENTRAL COALFIELDS LIMITED PRESENT MANAGEMENT As on 25th May, 2012 (i.e on the date of the Fifty Sixth Annual General Meeting) CHAIRMAN-CUM-MANAGING DIRECTOR Shri Gopal Singh FUNCTIONAL DIRECTORS Shri T.K. Nag : Director (Tech./Oprn.) Shri A. Chatterjee : Director (Finance) Shri R. R. Mishra : Director (Personnel) PART TIME OFFICIAL DIRECTORS Shri S. K. Singh : Jt. Secretary Ministry of Coal, Govt. of India, New Delhi Shri R. Mohan Das : Director(P&IR), Coal India Limited, 10, N.S. Road, Kolkata PART TIME NON-OFFICIAL DIRECTORS (INDEPENDENT DIRECTORS) Shri Gautam Basu Shri S. K. Sarkar Shri S. Chakrabarti Shri Anand Kumar, and Prof. K. V. Ramani PERMANENT INVITEES Shri Deepak Nath, IRTS : Chief Operations Manager East Central Railway, Hajipur (Bihar) Shri A. K. Sarkar, IAS : Addl. Chief Secretary, Mines & Geology Deptt. Govt. of Jharkhand COMPANY SECRETARY : Shri C.V.N.Gangaram 1 ANNUAL REPORT 2011-12 _________________________________________________________ MANAGEMENT DURING 2011-2012 CHAIRMAN-CUM-MANAGING DIRECTOR Shri R. K. Saha (Upto 29.02.2012) Shri Gopal Singh (w.e.f. 01.03.2012) FUNCTIONAL DIRECTORS Shri T. K. Nag : Director (Tech./Oprn.) Shri A. Chattejee : Director (Finance) Shri R. R. Mishra : Director (Personnel) (w.e.f. 12.09.2011) PART TIME DIRECTORS Shri R. K. Mahajan : Jt. Secretary, Ministry of Coal, Govt. of India, New Delhi (Upto 23.09.2011) Shri D. N. Prasad : Director, MoC, Govt. of India, New Delhi (From 12.10.2011 to 13.01.2012) Shri Shailesh Kumar Singh : Jt. Secretary, Ministry of Coal Govt. of India, New Delhi (From 13.01.2012) Shri R. Mohan Das : Director(P&IR), Coal India Limited, Kolkata. PART TIME NON-OFFICIAL DIRECTORS (INDEPENDENT DIRECTORS) Shri Gautam Basu : W.e.f. 27.04.2010 Shri S. K. Sarkar : W.e.f. 27.04.2010 Shri S. Chakrabarti : W.e.f. 23.02.2011 Shri Anand Kumar, and : W.e.f. 23.02.2011 Prof. K. V. Ramani : W.e.f. 23.02.2011 PERMANENT INVITEES Shri R. S. Pandey, IRTS : Chief Operations Manager, East Central Railway, Hajipur (Bihar) (From 03.07.2008 to 26.09.2011) Shri Deepak Chhabra, IRTS : Chief Operations Manager, East Central Railway, Hajipur (Bihar) (From 10.10.11 to 02.05.12) Shri Deepak Nath, IRTS : Chief Operations Manager, East Central Railway, Hajipur (Bihar) (From 02.05.12) Shri N. N. Sinha, IAS : Secretary, Mines & Geology Deptt. Govt. of Jharkhand, Ranchi (Upto 03.04.2011) Shri A. K. Sarkar, IAS : Addl. Chief Secretary, Mines & Geology Deptt. Govt. of Jharkhand (From 03.04.2011) COMPANY SECRETARY Shri C.V.N. Gangaram 2 ___________________________________________________ CENTRAL COALFIELDS LIMITED BANKERS Allahabad Bank Indian Overseas Bank Andhra Bank State Bank of India Bank of Baroda Oriental Bank of Commerce Bank of India Punjab National Bank Bank of Maharastra Syndicate Bank Canara Bank UCO Bank Central Bank of India Union Bank of India Corporation Bank United Bank of India Dena Bank State Bank of Patiala (upto 30.09.2011) ICICI Bank Ltd. STATUTORY AUDITORS M/s. V. K. Jindal & Co. GG3-Shree Gopal Complex Third Floor, Court Road, Ranchi BRANCH AUDITORS M/s. Lodha Patel Wadhwa & Co. M/s. K. C. Tak & Co. 304, Shreelok Complex 1, New Anantpur, 4-H.B. Road, Ranchi Ranchi M/s. KPMB & Associates Shivam Apartment Near AG Office Ranchi-834002 REGISTERED OFFICE Darbhanga House Ranchi 834 029 (Jharkhand) 3 ANNUAL REPORT 2011-12 _________________________________________________________ N O T I C E Ref. No. : Secy./2012/564 Dated : 21.05.2012 FIFTY SIXTH ANNUAL GENERAL MEETING Notice is hereby given to all Shareholders of Central Coalfields Limited that the Fifty Sixth Annual General Meeting of the Company will be held on Friday, the 25th day of May, 2012 at 2.00 PM at Darbhanga House, Ranchi to transact the following business : ORDINARY BUSINESS: 1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2012 and Profit & Loss Account for the year ended on that date together with the Reports of the Statutory Auditors, Comptroller & Auditor General of India and the Board of Directors of the Company thereon. 2. To declare dividend on Equity Shares for the financial year ended 31st March, 2012 as proposed by the Board. 3. To re-appoint Shri S. K. Singh, Joint Secretary, Ministry of Coal, Govt. of India, as a Part-time Director of the Company as per the provisions of Article 34 (iii) of the Articles of Association of the Company. 4. To re-appoint Shri R. Mohan Das, Director (P&IR), Coal India Limited as a Part-time Director of the Company as per the provisions of Article 34 (iii) of the Articles of Association of the Company. By order of the Board of Directors Central Coalfields Limited Sd/- (C.V.N. Gangaram) Company Secretary Registered Office : Darbhanga House Ranchi 834 029 (Jharkhand) Note : A member entitled to attend and vote at the meeting is also entitled to appoint a proxy to attend and vote instead of himself and the proxy need not be a member of the Company. The Shareholders are also requested to accord their consent for convening the Annual General Meeting at a shorter notice pursuant to the provisions of the Sec. 171(2)(i) of the Companies Act, 1956. 4 ___________________________________________________ CENTRAL COALFIELDS LIMITED MEMBERS : The Coal India Limited, Member (Through Chairman, CIL) 10, Netaji Subhas Road, Kolkata- 700 001 Shri S. Narsing Rao Chairman, Coal India Limited, 10, Netaji Subhas Road, Kolkata- 700 001 Shri Gopal Singh Chairman-cum-Managing Director, Central Coalfields Limited, Darbhanga House, Ranchi – 834 029 Shri A. K. Sinha Director (Finance), Coal India Limited, 10, Netaji Subhas Road, Kolkata- 700 001 CHAIRMAN – AUDIT COMMITTEE, CCL : Shri S. K. Sarkar J-1897, 2nd Floor, Chittaranjan Park New Delhi-110019 STATUTORY AUDITORS : M/s. V. K. Jindal & Co. GG-3, Shree Gopal Complex Third Floor, Court Road, Ranchi 5 ANNUAL REPORT 2011-12 _________________________________________________________ VISION To emerge as a Global 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 with due regard to Safety, Conservation and Quality. 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 Peojects 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 the consumer satisfaction. 10. To enhance the CSR activities specifically in the field of Health, Sanitation and Drinking Water in the surrounding Villages. 6 ___________________________________________________CENTRAL COALFIELDS LIMITED OPERATIONAL STATISTICS Year Ending 31st March 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 1. (a) Production of Raw Coal : (Million Tonnes) Underground 1.09 1.27 1.47 1.56 1.83 1.96 2.31 2.66 2.75 2.76 Opencast 46.91 46.25 45.61 41.68 42.32 39.36 38.20 34.73 34.58 34.22 TOTAL 48.00 47.52 47.08 43.24 44.15 41.32 40.51 37.39 37.33 36.98 (b) Overburden Removal : 65.68 62.52 56.05 55.63 55.22 45.90 49.97 46.68 48.10 46.64 (Million Cu.Mts.) 2.