ANNUAL R EP O RT AND ACCOUNTS 2 0 14- 1 5 - Western...

WESTERN COALFIELDS LIMITED(A Miniratna Company)

ANNUAL REPORT AND ACCOUNTS2014-15

Registered Office

COAL ESTATE, CIVIL LINES, NAGPUR - 440001

WESTERN COALFIELDS LIMITED( A Miniratna Company)

C O N T E N T S

Page No.

1 Board of Directors 1

2 Bankers & Auditors 3

3 Notice 4

4 Performance at a glance 7

5 Chairman's Statement 10

6 Awards and Accolades 17

7 Directors’ Report 23

8 Annexures to Directors’ Report 64

9 Addendum to the Directors’ Report 85

10 Balance Sheet as at 31st March, 2015 108

11 Profit & Loss Account for the year ended 31st March, 2015 109

12 Cash flow statement for the year 2014-15 110

13 Notes to Balance Sheet ( Notes 1 to 19 ) 111

14 Notes to Profit & Loss Account (Notes 20 to 32) 131

15 Significant Accounting Policies - Note 33 139

16 Additional Notes on Accounts - Note 34 146

17 Statement of Un - Audited Results for the 163

Quarter and Year Ended on 31.03.2015

(As on 22nd June, 2015)

SHRI R. R. MISHRA

Chairman-cum-Managing Director

SHRI MUKUL MARWAH

( A Miniratna Company)

SHRI RUPAK DAYAL SHRI B.K. MISHRA

SHRI R. P. GUPTA SHRI R. MOHAN DAS

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WESTERN COALFIELDS LIMITED

WESTERN COALFIELDS LIMITED( A Subsidiary of Coal India Limited )

Board of Directors( As on 22nd June, 2015 )


Shri R.R. Mishra

Functional Directors

Shri Rupak Dayal - Personnel

Shri S.S. Malhi - Technical

Shri B. K. Mishra - Technical

Government Directors (Part time)

Shri R. P. Gupta - Joint Secretary,Ministry of Coal

Shri R. Mohan Das - Director (Personnel & IR),Coal India Limited, Kolkata.

Permanent Invitee(s)

Shri Mukul Marwah - Chief Operations Manager,Central Railway, Mumbai.

Company Secretary

Shri Rameher

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ANNUAL REPORT 2014-15

WESTERN COALFIELDS LIMITED(A Subsidiary of Coal India Limited )

Board of Directors( During the year 2014-15)


Shri D.C. Garg - Upto 18.06.2014

Shri Om Prakash (Add.Charge) - From 05.07.2014 to 08.10.2014

Shri Rupak Dayal (Add.Charge) - From 09.10.2014 to 10.10.2014

Shri R.R. Mishra - From 11.10.2014

Functional Directors

Shri Om Prakash - Technical ( Upto 08.10.2014 )

Shri Rupak Dayal - Personnel ( w.e.f. 28.09.2011 )

Shri S.S. Malhi - Technical (w.e.f. 03.03.2013)

Government Directors (Part time)

Shri M.R. Anand - Economic Adviser Ministry of Coal

( Upto 26.03.2015)

Shri R. Mohan Das Director (Personnel & IR),

Coal India Limited, Kolkata

( w.e.f. 28.06.2007 )

Permanent Invitee(s)

Shri R. D. Tripathi - Chief Operations Manager,

Central Railway Mumbai

(upto 19.11.2014 )

Shri Arvind Kumar - Chief Operations Manager,

Central Railway, Mumbai

(From 26.12.2014 to 09.02.2015)

Company Secretary

Shri Rameher - (w.e.f. 01.02.2008)

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BANKERS

STATE BANK OF INDIAUNION BANK OF INDIA

UCO BANKHDFC BANK

ALLAHABAD BANKBANK OF MAHARASHTRAPUNJAB NATIONAL BANK

ORIENTAL BANK OF COMMERCESTATE BANK OF HYDERABAD

CENTRAL BANK OF INDIAINDIAN BANKDENA BANK

STATUTORY AUDITORS

M/S V.K. SURANA & CO.CHARTERED ACCOUNTANTS

NAGPUR

BRANCH AUDITORS

M/S V.K. LADHA & ASSOCIATESCHARTERED ACCOUNTANTS

UJJAIN

M/S KPRK & ASSOCIATESCHARTERED ACCOUNTANTS

NAGPUR

M/S. B. CHHAWCHHARIA & CO.CHARTERED ACCONANTS

NAGPUR

REGISTERED OFFICECOAL ESTATE ,CIVIL LINES ,

NAGPUR – 440001

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Ref : WCL/SECY/BD/AGM-40/2015/271 Date : 16/06/2015

N O T I C E

FORTIETH ANNUAL GENERAL MEETING

Notice is hereby given that the Fortieth Annual General Meeting of Western Coalfields

Limited will be held at 10.00 A.M. on Monday, the 22nd June, 2015 at the Registered

Office of the Company at Coal Estate, Civil Lines, Nagpur to transact the following

business :

I. ORDINARY BUSINESS:

1. To receive, consider and adopt the Audited Financial Statements of the Company for

the financial year ended March31,2015 including the Audited Balance Sheet as at

March 31, 2015 and Statement of Profit and Loss for the year ended on that date

and the Reports of Board of Directors, Statutory Auditor and Comptroller and Auditor

General of India thereon.

2 To confirm the dividend declared on equity shares for the financial year 2014-15 as

final dividend for the year 2014-15.

3. To appoint a Director in place of Shri R. Mohan Das(DIN: 01594255), who retires by

rotation in terms of Section 152(6) of the Companies Act 2013 and being eligible,

offers himself for re-appointment.

4. To appoint a Director in place of Shri Rupak Dayal (DIN: 05105263), who retires by

rotation in terms of Section 152(6) of the Companies Act 2013 and being eligible,

offers himself for re-appointment.

II. SPECIAL BUSINESS:

ITEM NO.1

Subject : Ratification of Remuneration of Cost Auditors of the Company for the financial

year 2015-16.

ORDINARY RESOLUTION :

To consider and if thought fit to pass 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 14of the Companies (Audit and Auditors) Rules, 2014 and other provisions of the Act, thefollowing cost audit firms appointed as Cost Auditors be paid audit fees as per the followingdetails for conducting cost audit for 2015-16 in respect of Western Coalfields Limited:

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*(a) In addition to fees, traveling and out of pocket expenses restricted to 50% of the audit feeswill be paid subject to production of documentary evidence.

(b) Service tax etc. will be paid extra as applicable on furnishing the registration number with theappropriate authority”.

“RESOLVED FURTHER THAT Chief of Internal Audit & Company Secretary to take necessary

action in the matter.”

By order of Board of Directors FOR WESTERN COALFIELDS LIMITED

Sd/- ( Rameher )

Company SecretaryRegistered Office :Coal Estate, Civil Lines, NAGPUR - 440 001CIN NUMBER : U10100MH1975GOI018626

NOTE :1. A member entitled to attend and vote at the meeting is also entitled to appoint a

proxy or proxies to attend and vote instead of himself/herself and such proxy need notbe a member of the Company. In order to be effective, the Proxy form duly completedshould be deposited at the registered office of the Company not less than forty-eighthours before the scheduled time of the Annual General Meeting. A proxy form is enclosed.

2. For Item No. 1 of Special Business, an Explanatory Statement, pursuant to Section102(1) of the Companies Act, 2013 with regard to the Special Business mentionedabove is enclosed.

3. Members are also requested to accord their consent for convening the meeting at ashorter Notice under section 101(1) of the Companies Act, 2013.

To1. Members/Shareholders, Western Coalfields Limited2. Statutory Auditors Western Coalfields Limited3. Secretarial Auditors Western Coalfields Limited4. Chairman-Audit Committee, WCL

Copy to

All Directors, Western Coalfields Limited, Nagpur

Company Secretary, Coal India Limited, Kolkata

General Manager (Finance) I/C-I WCL, Nagpur

Sl. No.

1

2

3

4

Name of the Firm & Address

M/S M.R. Pandit & Co. cost Accountants,Pawanvihar N-4, E-40, CIDCO,Aurangabad -431003 (M.S.)

M/S G.R. Paliwal & Co.,Cost Accountants,408A, Lokmat Square, Ramdaspeth,Nagpur- 440012 (M.S.)

M/S R.M. Bansal & Co., Cost Accountants,A-201.Twin Towers, Lakhanpur,Kanpur – 208024 (U.P.)

M/S Aman Malviya & Associates,Cost Accountants, B-12, Basement,Murli Bhavan, Lucknow - 226001 (UP).

Regn. No.

‘000268

100058

‘000022

‘00189

Zone Allotted

Zone I : Consisting of WCL Hqrs& Nagpur Area.

Zone II : Consisting of Wani,Majri, Wani North Areas and CentralWorkshop Tadali

Zone III : Consisting of Pench,Kanhan, Nandan Washery andPatherkhera Areas.

Zone IV : Consisting of Umrer,Chandrapur and Ballarpur Areas.

Audit Fees*

Rs.2,30,000/-

Rs.1,23,000/-

Rs.1,23,000/-

Rs.95,700/-

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ANNEXURE TO THE NOTICE FOR ANNUAL GENERAL MEETING OF


EXPLANATORY STATEMENT UNDER SECTION 102(1) OF THE

COMPANIES ACT, 2013

SPECIAL BUSINESS

ITEM NO. 1:

Subject : To approve the remuneration payable to cost auditors for conducting

cost audit for 2015-16.

The Board of Directors of WCL in its 265th meeting held on 23/05/2015 passed a resolution

to appoint cost auditors to conduct cost audit for financial year 2015-16 for a Audit Fees amounting

to total of Rs.5,71,700 plus travelling expenses and out of pocket expenses restricting to 50% of

the audit fees payable subject to production of documentary evidence.

The Board of Directors approved the fee subject to the ratification by Members of the

Company in General Meeting in order to comply with Rule No. 14 of Companies (Audit & Auditors)

Rules 2014 on Remuneration of the Auditors and sub section (3) of section 148 of Companies

Act 2013.

In view of above mentioned provision, it has become mandatory that the remuneration

as recommended by the audit committee and approved by the Board of Directors for conducting

cost audit for the year 2015-16 be placed for ratification by the shareholders in the ensuing

General meeting.

Accordingly the resolution for approving the fees payable to cost auditors for conducting

cost audit for 2015-16 is placed before the Annual General Meeting for consideration and approval.

None of the Directors, Key Managerial Personnel or their relatives are interested or

concerned in the Resolution.

———————————


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9


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Chairman’s Statement

I feel great pleasure in reporting at the 40th Annual General Meeting thatWestern Coalfields Limited has improved its financial performance withstrong top line, i.e. revenues of ̀ 9652.74 Crores along with sturdy bottomline, that is pre-tax profit of ̀ 544.74 Crores during the financial year 2014-15.

I am happy to share that we are well positioned among the coal producersin the country on the strength of our strong balance sheet and sturdyperformance year after year, despite the stiff challenges posed by adversegeo mining conditions, paucity of reserves amenable to mega projects,constraints in land acquisition/physical possession, delay in forestry/environment clearances, the highest stripping ratio among all thesubsidiaries of CIL, strata control problems due to adverse geo tectonic

parameters and high susceptibility of coal to spontaneous heating/fire in underground mines andunviable ongoing/future projects.

Vision

It is well established fact that Energy is the prime mover for the growth of the nation and coal isthe primary source of energy in India. Indian Coal Industry in general and CIL in specific needsto augment the coal production at an unprecedented rate of growth to match with the growingdemand. Thus, Coal India Ltd has set its target to double its output from 494 Million Tonnes to1 Billion Tonnes by 2019-20.

Keeping the above target in mind, your company has also revisited its earlier long term projectionand has set its goal to enhance output to 60.00 MTY and beyond by the year 2020.

Accordingly, the Company has set its vision to emerge as a key player in the primary energy sectorcommitted to provide energy security to the country by attaining environmentally and sociallysustainable growth through best practices from mine to market.

Performance 2014-15

Financial Year 2014-15 had been a year full of challenges but the undeterred Company teamwith concerted efforts achieved coal production of 41.147 Million Tonnes against last year’s39.729 million tonnes, registering a growth of 3.6%.

The coal off-take during the fiscal was 41.247 Million Tonnes as against last year’s actual of39.945 Million Tonnes, registering a growth of 3.3%.

Coal desptaches through rail have registered growth as Company has dispatched 22.866 MillionTonnes coal through rail mode as against the AAP target of 22.182 Million Tonnes and lastyear’s actual of 22.374 Million Tonnes that is an achievement of 103% of target & a growth of2.2% over last year. The wagon loading was 16 rakes/ day as against the last year’s actual of15.6 rakes/day, registering a growth of 2.6%.

The sales realization during the fiscal was ` 9924.11 Crores which is 14% more than the lastyear’s realization of ̀ 8711.93 Crores. Additional revenue of ̀ 331.49 Crores generated throughe-auction during 2014-15 which was more than ̀ 310.01 Crores earned during the last year.

Your Company achieved overall productivity of 3.26 tonnes per man-shift during the year 2014-15,which is 111.6% of the target of 2.92 tonnes per man shift and registered appreciable growth of10.1% over last year’s actual of 2.96 tonnes per man shift. Company produced about 88.10% ofCoal through departmental means and the capacity utilization in departmental coal production was103.50%.during the year.

Friends,

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Company continued to maintain high utilization of HEMM, which has been more than CIL’s averageduring the year 2014-15 and it is ranked 2nd in utilization of Dumpers & Dozers and 3rd in Draglines,Shovel and Drill amongst all Subsidiaries of CIL. For further strengthening, Company purchased 56 newequipment comprising of 60T Dumpers and Hydraulic Excavators against surveyed off during the fiscal.

Financial Performance

During the year, Company achieved turnover of ` 9652.74 Crores with a pre-tax profit of ` 545Crores, which is more than the last year’s pre-tax profit of ` 326 Crores. Net worth of thecompany has increased from ̀ 3479.48 Crores of last year to ̀ 3514.28 Crores during current fiscal.

Your Directors have recommended a dividend payment of ` 188.06 Crores @ 64.47% on thePaid up Capital of the company that is ̀ 297.10 Crores, a tangible demonstration of Company’sability to continue creating value.

Creation of Assets

Company has invested ̀ 518.79 Crores during FY 2014-15 on development of new mines andinfrastructure along with replacement of old assets, entirely from internal resources againstrevised budget of ̀ 575.00 Crores i.e. an achievement of 90.22% utilization, which is highestduring the last five years. An amount of ` 300.29 Crores was invested for acquisition of landduring the year. HEMM worth ` 92.00 Crores were purchased in addition to the undergroundequipment worth ` 9.98 Crores..

Planning Preparedness

Your company is operating 33 Ongoing Projects/Schemes with a sanctioned capacity of 36.16MTY and capital of ̀ 2775.56 Crores. Out of these, 22 projects have contributed 17.24 milliontonnes of coal production during the year 2014-15 and further 22.94 Million Tonnes of coalproduction has been envisaged from ongoing /future projects during FY 2015-16.

Thinking Beyond - Shri Piyush Goyal, Hon’ble Minister of State (IC), Power, Coal, New &Renewable Energy, Govt. of India unveiling Vision 2020 Document of WCL in the august presenceof Shri Chandrashekhar Bawankule, Hon’ble Energy Minister, Govt. of Maharashtra, Shri SutirthaBhattacharya, Chairman, CIL and Shri R.R. Mishra, CMD, WCL.

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Unviable Projects

Many of the ongoing projects and most of the projects in future category are not viable to yield

requisite 12% IRR at 85% capacity, at notified price due to higher cost of production on account

of high stripping ratio, high wage bill, hike in land compensation rate by Govt. of Maharashtra,

etc. Unviable projects cannot take off as no investment can be made without entering in to cost

plus agreement with prospective/willing consumers.

Initiatives have been taken to bring the unviable projects out of the ambit of un-viability which

enabled the company in opening of projects viz, Makhardhokra I OC, Penganga OC and

Bhanegaon OC during the year 2014-15. Further planned for opening of 12 nos of projects

during in FY 2015-16 and 11 Nos projects in FY 2016-17.

Exploration and addition in Reserves

Exploratory drilling to the tune of 111014.50 meters has been carried out during the fiscal by

CMPDIL in WCL command area, which includes 75867.65 meters in CIL Blocks and 35146.85

meters in Captive Blocks. The purpose of drilling was for value addition and accordingly revised

Geological Reports have been prepared. Reserves of 314.797 MT (proved 304.914 MT) in CIL

Blocks and 90.928 MT reserves in Non-CIL Blocks have been established.

Technology infusion in Underground Mines

For sustaining the current production levels and to achieve the targeted growth in the coming

years, production from UG mines needs to be augmented, as the production from OC mines will

be on decline due to paucity of suitable reserves in the company. Initiatives have been taken for

adoption of mass production and continuous mining technology in UG mines for augmenting

production and productivity.

Continuous Miner :

Currently, Continuous Miner is in operation at Tandsi UG mine and during the year 2014-15 bids

were invited for introduction of Continuous Miner on partial hiring basis with minimum guaranteed

production at Tawa-II UG an operating mine. Further, it is proposed to introduce the said

technology at two other operating mines i.e. Tawa-I and Chattarpur-I during the fiscal 2015-16.

Introduction of Man Riding

In order to eliminate long arduous travel, fatigue and to improve the efficiency of workmen in UG

mines, Man Riding Systems have been installed in eight UG mines. During the fiscal 2014-15,

Man Riding System was commissioned on trial basis in Adasa UG Mine, Nagpur Area.

Further planned for installation of two more Man Riding Systems at Rajur UG and Neharia UG

Mine during the year 2015-16. To cater the needs of other underground mines, 15 Nos. of Man

Riding Systems are programmed for installation by FY 2019-20.

Introduction of Universal Drilling Machines (UDM)

Your company has played a leading role in mechanizing the drilling for face as well as roof

support. So far 45 Nos. of Universal Drilling Machines (UDMs) have been deployed in the ines.

This resulted in significant improvement in blasting efficiency leading to increased availability of

coal and also improvement in Green Zone support with added safety.

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Energy Efficiency initiatives:

Accepting the fact that there is scope to save energy by rationalization of operations, yourCompany has undertaken various initiatives.

Power consumption during the year has been reduced over previous year by 6.77% (42.941Million kWh) due to Implementation of various energy conservation measures and less rainfallby 45% than previous year.

Material Management

All the procurement cases of material were finalized through e-tendering with e-price bid in thecompany. Total 1551 nos. of e-tenders were floated with estimated amount of ` 1173 Croresduring the year 2014-15.

Your company has maintained its position at the top amongst CIL subsidiaries by keeping thelowest inventory during the fiscal, that is inventory of 0.77 month’s consumption against 0.75month during 2013-14. i.e. 1.86% increase despite of 5% increase in stores and spares’ cost.Company has realized ̀ 18.70 Crores by means of scrap disposal during the fiscal.

Environment Management

Coal mining is environmentally sensitive activity and mitigation of its adverse impacts is imperativefor sustainable development. Your company is aware of its responsibility and has taken initiativesfor environmental protection and pollution mitigation measures in all the operating mines.

Your Company is committed to restore the degraded land through reclamation, afforestationand green belt development. In this pursuit, 182.69 lakh saplings have been planted upto31.03.2015 covering an area of 6621.20 Ha in its command area in the state of Maharashtraand Madhya Pradesh. Progress of afforestation in 10 major Open Cast Projects producingmore than 5 million cubic meter (Coal+OB) is monitored every year through Satellite Imagerywhich indicates the increase in green cover area by 11.26 Sq. Kms during the years 2008-2014.

In furtherance to corporate commitment, your company has completed plantation over 125 Hain Chandrapur (100 Ha) & Yavatmal (25 Ha) districts through Forest Development Corporationof Maharashtra for regeneration of degraded forest land outside its command area in the stateof Maharashtra, as a part of CSR activities for securing “Green Credits” during the year.

Acquisition of Land

Your company has made remarkable achievement in land acquisition and physical possessionfor mining and allied activities during the FY 2014-15. The Company could acquire 1363.463 Haof land under CBA Act.

Further, through various initiatives to resolve contentious issues and trust building measures,the company took all time high physical possession of 1370.43 Ha. of land which is 5.8 timesyearly average of 230 Ha.

During the fiscal, total 09 Project affected families, have been resettled by providing resettlementgrant as opted by land oustees, within the provisions of R&R Policy of CIL. Administrativeapproval was accorded by Company Board for Employment/monetary compensation in lieu ofemployment to 224 land oustees.

Corporate Social Responsibility

With a view to bring meaningful change in the lives of our most important stake holders that is,populace residing in our command area in particular and the society at large, your company undertookmassive CSR initiatives during the year 2014-15 and spent about ` 20.15 Crores, which is ̀ 12.18Crores more than the prescribed requirement of ̀ 7.97 Crores under provisions of Companies Act 2013.

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The activities undertaken broadly covers; Infrastructure Support, Education, Drinking Water, Health-

care, Swachch Vidyalaya Abhiyaan, Environment, Sustainable Development, Solar Lights and Social

Empowerment.

Further, to mitigate the hardships faced due to shortage of water by villagers, your company has

taken an initiative under ‘Jal-Sahayog’ through a pilot project for gainful use of mine discharge water

for drinking and irrigation purpose at Boregaon village, Nagpur Area. Successful implementation of

this project fulfilled the requirement of water at this village.

WELFARE :

During the year the company incurred an expenditure of ̀ 96.06 Crores for improving the quality of

life, medical & health care services and educational facilities for its employees and their wards.

An initiative has been taken to ensure hassle free post retirement medical treatment to the members

of CPRMSE (Contributory Post Retirement Medicare Scheme for Executives of CIL) by providing

‘Aarogya – Gold Card’ i.e. a photo ID with portal based access to medical history.

HUMAN CAPITAL MANAGEMENT

An initiative has been taken in the Company to create an online portal for uploading individual

employee data with regard to qualification, skills acquired, experience, hobbies, training requirement

etc. for effective planning, training and gainful utilization of human resources.

Further, Gen-next executives were mobilized to be a part of cohesive force in the decision making

process for transforming them into future leaders to shoulder the responsibility

Nurturing Future Leaders - 1st batch of Gen-next Leaders of WCL with Shri P.S.

Bhattacharyya, Ex-Chairman, Coal India Ltd and Shri R.R. Mishra, CMD, WCL, Shri Rupak

Dayal, Director (Personnel), WCL and Shri S.S. Malhi, Director (Tech) OP, WCL

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Safety

Safety is always our top priority and we are continuously thriving for achieving the superior standards

through adoption of best practices. Thrust is given to boost safety awareness at the grass root level

so as to prevent repetitive nature of accidents. Participative Safety Management is also practiced at

the unit level through monthly Safety Committee meetings and Tri-partite Safety Committee meetings

at Area Level with active participation of DGMS officials as well. Special safety awareness drives on

various subjects like green roof support, safe practices in haulage, belt conveyors, face equipment,

ventilation, dust suppression, explosives and blasting were also organized by Internal Safety

Organization (ISO), to improve the safety standards, practices and safety awareness etc.,

During the fiscal 2014-15 serious accidents were reduced by six numbers in comparison to last

year while the number of fatal accidents remained at same level.

Industrial Relations

Industrial Relations during the fiscal 2014-15 has been peaceful, cordial and harmonious in the

company. However, there was a General Strike called by all the Five Central Trade Unions in all the

Subsidiaries of Coal India Ltd., for five days during 06/01/2015 to 10/01/2015 over 10 point charter

of demands of National issues. The strike was called off on 7th Jan. 2015.

Awards and Accolades

I feel pleasure to share with you that your company was bestowed with following awards during

the year 2014-15 –

H “Excellence Award for CSR” by Bureaucracy Today for best practices in CSR

under Mini Ratna Category at New Delhi in the month of June 2014.

H “Organization with Innovative HR” during Asia Pacific HRM Congress, at

Bengaluru on 11th September 2014.

H “Corporate Performance Award 2013-14” for MoU Excellent Rating by Coal

India Ltd. On 1st November 2014.

H “Most Caring Companies of India Award” by World CSR Congress 2014 at

Mumbai on 18th Feb. 2015.

H National Safety Award for Accident Free Mine for Tawa-I UG Mine by Hon’ble

President of India, New Delhi, 20th March 2015

Your company stood First in Kabbadi and Body Building, Second position in Table Tennis in CIL

Inter-Company Tournament. Company Rescue Team secured awards in individual capacity for

Drill, Turnouts, Rescue Work and Rescue and Recovery work, during All India Mines Rescue

Competition held at Ramgarh, CCL Ranchi.

Corporate Governance

Company has complied with conditions (except a few which are under progress) of Corporate

Governance as stipulated in the Guidelines on Corporate Governance 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 to the Director’s Report and a certificate regarding

compliance of conditions of Corporate Governance obtained from the practicing Company Secretary.

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“Excellent” rating was accorded by DPE in the field of Corporate Governance to your Company for

the year 2013-14. This year also, as per self-evaluation, your company’s Corporate Governance

compliance stood at 94.87%.

Last but not the Least

We are committed to achieve growth despite stiff challenges while ensuring highest priority to

the Corporate Governance, Environment and Corporate Social Responsibility.

We firmly believe that we will continue to maximize the returns of Company’s key stake holders

- its shareholders, customers, employees and local populace.

I call upon all of Company family to arise, aspire, perspire and move towards for not only

attaining the goal of 45.50 Million Tonnes of coal production and offtake of 45.50 Million Tonnes

during FY 2015-16 but also to ensure requisite growth in the coming years to reach 60.00

Million Tonnes coal production by 2020 in line with our Vision 2020. Thus, we will be fulfilling

our bounden duty to energize India and in turn contributing to the progress of the nation.

With Best Wishes,

(Rajiv R Mishra)


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Shri R.R. Mishra, CMD,

WCL rece iv ing the

'Corporate Performance

Award - 2013-14' for

Excellent MOU rating from

Shri S.K. Srivastava,

Secretary (Coal), MOC,

Govt. of India on the

occasion of Coal India

Foundation Day on 1st

N o v e m b e r , 2 0 1 4 i n

Kolkata.

An Initiative - on the

occasion of launching

' P R A G A T I ' a n

initiative by WCL Shri

A n i l S w a r u p ,

Secretary (Coal),

Govt. of India, Shri

A.K. Debnath, CMD,

CMPDIL, Shri R.R.

Mishra, CMD, WCL,

Shri Rupak Dayal,

Director (Personnel),

WCL and Shri S.S.

M a l h i , D i r e c t o r

(Technical) OP, WCL.


WCL conferred with 'Organisation

with Innovative HR' at Asia Pacific

HRM Congress - 2014 held in

Banga lo re on 11th & 12th

September, 2014.

Western Coalfields Ltd. conferred

with 'Most Caring Companies of

India Award-2014' by World CSR

Congress on 18th February, 2015 in

Mumbai.


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BALANCE SHEET AS AT 31st MARCH

PARTICULARS

SOURCE OF FUND

SHARE CAPITAL

RESERVES & SURPLUS

PROFIT & LOSS A/C

LOAN FUND

DEFERRED TAX LIABILITIES

LONG TERM LIABILITIES & PROVISIONS

T O T A L

APPLICATION

FIXED ASSETS :

GROSS BLOCK

LESS: DEPRECIATION

LESS: IMPAIRMENT OF ASSETS

NET BLOCK

CAPITAL WORK IN PROGRESS

DISCARDED/SURVEYED OFF ASSETS

INVESTMENTS

DEFERRED TAX ASSETS

LONG TERM LOANS & ADVANCES

OTHER NON-CURRENT ASSETS

CURRENT ASSETS, LOANS & ADVANCES:-

CURRENT INVESTMENT

INVENTORIES

SUNDRY DEBTORS

CASH & BANK BALANCE

LOANS & ADVANCES

OTHER CURRENT ASSETS

SUB TOTAL

LESS: CURRENT LIABILITIES &

PROVISIONS

NET CURRENT ASSETS

T O T A L

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10

788.67 1049.59 1343.88 1680.34 2089.39 984.68 1052.52 1123.42 1178.82 1210.13

1429.36 1673.10 1794.26 1843.91 1932.82 1988.80 2013.77 2039.50 2050.57 2054.06

135.49 122.97 112.98 133.60 109.52 102.56 101.97 84.92 - -

63.10 32.65 29.18 15.22 20.48 - - - - -

- - - 0.28 0.00 2155.89 3273.04 3554.40 3788.05 4128.08

2713.72 3175.41 3577.40 3970.45 4449.31 5529.03 6738.40 7099.34 7314.54 7689.37

3480.99 3668.24 3782.45 3986.99 4137.27 4294.58 4490.39 4493.04 4625.57 4909.70

2072.22 2251.34 2398.13 2539.15 2651.49 2769.51 2884.24 2853.64 2912.97 3083.65

81.93 80.63 85.75 89.39 93.83 100.70 104.01 101.77 104.32 104.42

1326.84 1336.27 1298.57 1358.45 1391.95 1424.37 1502.14 1537.63 1608.28 1721.63

204.41 174.85 187.65 217.31 252.63 274.53 269.50 293.19 335.88 419.11

10.49 11.29 11.36 13.23 16.09 17.31 19.50 21.13 - -

320.90 288.81 272.77 240.68 192.54 128.36 96.27 80.23 48.14 -

151.07 140.25 315.83 345.33 340.98 350.13 455.72 578.44 439.04 464.13

- - - - - 58.21 61.99 56.12 59.90 88.18

- - - - - - - - - 0.58

- - - - - 32.09 32.09 450.14 312.20 137.31

287.77 363.97 301.43 288.46 294.17 437.09 570.60 667.33 743.07 757.11

235.06 238.14 126.02 191.52 109.18 25.20 13.97 471.27 468.93 672.92

1513.75 1296.62 2262.20 3033.11 3919.96 4063.78 5503.40 4243.83 4626.81 5138.03

1518.80 1983.95 2490.98 2868.96 1784.73 704.54 860.70 1104.50 991.40 988.19

351.20 432.06 427.52 320.14 362.14

3555.38 3882.68 5180.63 6382.05 6108.04 5613.90 7412.82 7364.59 7462.55 8055.70

2855.37 2658.74 3689.41 4586.60 3852.92 2337.78 3079.54 2831.99 2639.25 3059.96

700.01 1223.94 1491.22 1795.45 2255.12 3276.12 4333.28 4532.60 4823.30 4995.74

2713.72 3175.41 3577.40 3970.45 4449.31 5529.03 6738.40 7099.34 7314.54 7689.37

NOTE : 1. Figures in this statement are rearranged from the printed accounts excluding contra items.

2. The Financial Statements are prepared on the basis of Schedule III of the Companies Act, 2013 as notified by Ministry of Corporate Affairs from the F.Y. 2014-15.

Figures prior to 2010-11 are as per pre-revised Schedule III.

3. Surveyed Off Assets amounting ` 26.62 Crores (P.Y. ` 25.32 crores) and ` 25.46 crores (P.Y. ` 24.16 Crores) are including in Gross Block and Net Block for the year

2014- 15 and 2013-14 respectively

(` in crores)

20

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14

-15


STATEMENT OF PROFIT AND LOSS( EXCLUDING CONTRA ITEMS)

NOTE : 1. Figures in this statement are rearranged from the printed accounts excluding contra items.

2. The Financial Statements are prepared on the basis of Schedule III of the Companies Act, 2013 as notified by Ministry of Corporate Affairs from the F.Y. 2014-15. Figures prior

to 2010-11 are as per pre-revised Schedule III.

3. Welfare Expenses amounting to ` (5.65) crores (P .Y. ̀ 21.64 crores) and ̀ 16.17 crores (P.Y. ` 16.62 Crores) are included in employees Benfefit expenses and other exprnses

for the year 2014-15 and 2013-14 respectively.

--

PPPPPARARARARARTICULARSTICULARSTICULARSTICULARSTICULARS 2005-062005-062005-062005-062005-06 2006-072006-072006-072006-072006-07 2007-082007-082007-082007-082007-08 2008-092008-092008-092008-092008-09 2009-102009-102009-102009-102009-10 2010-112010-112010-112010-112010-11 2011-122011-122011-122011-122011-12 2012-132012-132012-132012-132012-13 2013-142013-142013-142013-142013-14 2014-152014-152014-152014-152014-15

NET REVENUE FROM OPERATIONS 4382.35 4392.96 4909.18 5636.01 5836.63 5994.27 6750.01 6705.15 6613.83 7325.39

OTHER OPERATING REVENUE 160.08 223.13

OTHER INCOME 328.83 387.13 507.63 558.94 560.35 464.78 680.69 717.78 473.81 429.12

ACCRETION/(DECRETION) IN STOCK 83.87 73 .07 -54.08 -34.22 13 .18 129.60 128.96 89 .31 84 .15 0.63

(A) (A) (A) (A) (A) 4795.054795.054795.054795.054795.05 4853.164853.164853.164853.164853.16 5362.735362.735362.735362.735362.73 6160.736160.736160.736160.736160.73 6410.166410.166410.166410.166410.16 6588.656588.656588.656588.656588.65 7559.667559.667559.667559.667559.66 7512.247512.247512.247512.247512.24 7331.877331.877331.877331.877331.87 7978.277978.277978.277978.277978.27

EMPLOYEES BENEFIT EXPENSES 1420.21 1497.59 1910.02 2967.70 2595.21 2780.58 3991.41 4296.43 4241.11 4454.04

COST OF MATERIAL CONSUMED 724.64 750.69 762.88 872.72 856.32 863.43 920.26 998.24 1143.82 1149.93

POWER & FUEL 184.68 221.56 225.63 229.09 242.85 259.20 281.94 330.20 329.95 309.72

REPAIRS & MAINTENANCE 110.70 111.52 117.40 126.62 122.86 68 .46 64 .09 68 .05 51 .12 64 .34

CONTRACTUAL EXPENSES 383.14 396.10 491.84 536.10 570.98 467.51 501.01 537.90 604.97 708.83

CORPORATE SOCIAL RESPONSIBILITY 23.95 20 .15

WELFARE EXPENSES 211.78 223.81 228.14 239.99 269.17 223.71 253.80 82 .54

DEPRECIATION/AMMORTIZATION/ IMPAIRMENT 164.50 178.28 185.65 176.44 171.41 188.16 195.65 188.53 192.23 236.07

FINANCE COSTS 4.31 5.55 4.33 3.97 4.85 3.30 3.20 2.87 2.26 -

P R OV I S I O N S -133.00 -19.07 45 .68 -25.01 -17.57 110.25 220.62 34 .15 116.49 210.69

OBR ADJUSTMENT 35.16 158.57 262.77 280.37 305.61 314.56 458.95 279.96 47 .61 15 .97

OTHER EXPENSES 187.00 223.66 208.32 241.65 346.63 249.35 237.00 252.94 255.80 263.79

(B) (B) (B) (B) (B) 3293.123293.123293.123293.123293.12 3748.263748.263748.263748.263748.26 4442.664442.664442.664442.664442.66 5649.645649.645649.645649.645649.64 5468.325468.325468.325468.325468.32 5528.515528.515528.515528.515528.51 7127.937127.937127.937127.937127.93 7071.817071.817071.817071.817071.81 7009.317009.317009.317009.317009.31 7433.537433.537433.537433.537433.53

PROFIT/LOSS FOR THE YEAR (A-B)(A-B)(A-B)(A-B)(A-B) 1501.93 1104.90 920.07 511.09 941.84 1060.14 431.73 440.43 322.56 544.74

PRIOR PERIOD ADJUSTMENTS 54.97 50 .46 -10.15 -5 .03 10 .81 -7 .84 -8 .77 11 .56 -3 .30 -0 .05

PROFIT AFTER PRIOR PERIOD ADJUSTEMENT 1446.96 1054.44 930.22 516.12 931.03 1067.98 440.50 428.87 325.86 544.79

PROVISION FOR TAXATION 472.03 391.70 487.96 224.15 275.81 559.28 239.37 227.29 -37.13 287.98

PROVISION FOR DEFERED TAX (ASSET)/LIABILITIES -15.61 -19.64 -169.52 -43.46 9.61 -29.62 -105.59 -122.73 139.40 -56.34

PROFIT AFTER TAX 990.54 682.38 611.78 335.43 645.61 538.32 306.72 324.31 223.59 313.15

(` in crores)

21

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CAPTIAL EMPLOYED, NET WORTH AND RATIOS

PPPPPARARARARARTICULARSTICULARSTICULARSTICULARSTICULARS 2005-062005-062005-062005-062005-06 2006-072006-072006-072006-072006-07 2007-082007-082007-082007-082007-08 2008-092008-092008-092008-092008-09 2009-102009-102009-102009-102009-10 2010-12010-12010-12010-12010-111111 2012012012012011-121-121-121-121-12 2012-132012-132012-132012-132012-13 2013-142013-142013-142013-142013-14 2014-152014-152014-152014-152014-15

CAPITAL EMPLOYED (` in crores) 2028.44 2561.71 2846.06 3153.90 3647.08 4686.32 5822.03 6053.62 6431.58 6717.37

NET WORTH (` in crores) 2304.21 2650.31 2814.14 2914.11 3099.86 3236.56 3315.22 3410.91 3479.48 3561.29

PAID UP CAPITAL (` in crores) 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10

NET WORTH PER RUPEE OF PAID UP CAPITAL 7.76 8.92 9.47 9.81 10.43 10.89 11.16 11.48 11.71 11.99

LOAN FROM CIL AND OTHERS (ìn crores) 135.49 122.97 112.98 133.60 109.52 102.56 101.97 84.92 0.00 0.00

DEBT/EQUITY RATIO 0.06:1 0.05:1 0.04:1 0.05:1 0.04:1 0.03:1 0.03:1 0.02:1 0.00 0.00

NET PROFIT(BEFORE PPA & TAX) (` in crores) 1501.93 1104.90 920.07 511.09 941.84 1060.14 431.73 440.43 322.56 544.74

NET PROFIT FOR THE YEAR AS % TO 74.04 43.13 32.33 16.21 25.82 22.62 7.42 7.28 5.02 8.11CAPITAL EMPLOYED

NET PROFIT(BEFORE TAX BUT AFTER 1446.96 1054.44 930.22 516.12 931.03 1067.97 440.50 428.87 325.86 544.79PPA) (` in crores)

NET PROFIT AFTER PPA AS % TO 71.33 41.16 32.68 16.36 25.53 22.79 7.57 7.08 5.07 8.11CAPITAL EMPLOYED

DEBTORS AS % TO GROSS SALES 8.44 8.01 5.73 5.59 3.90 2.08 1.59 6.34 6.40 7.84

INVENTORY OF STORES & SPARES IN NO.OF 1.04 1.05 1.09 1.05 1.06 1.10 1.09 0.93 0.75 0.82MONTHS CONSUMPTION.

VALUE ADDED (` in crores) 3485.32 3414.45 3789.27 4426.82 4667.86 4895.92 5676.58 5466.02 5224.21 5866.37

VALUE ADDED /EMPLOYEE (` in ‘000) 517.30 520.50 590.60 708.38 766.86 829.21 996.08 994.55 995.39 1171.61

22


23


DIRECTORS’ REPORTTo

The Members/Shareholders,

Western Coalfields Limited.

Your Directors have pleasure in

presenting the 40th Annual Report of Western

Coalfields Limited and Audited Accounts for

the year ended 31st March, 2015 together with

the report of the Statutory Auditors and report

and review of the Comptroller and Auditor

General of India thereon.

2. LOCATION OF UNITS

The mines of your Company arelocated in Maharashtra and South-West Madhya Pradesh. For Effectiveadministrative control and operations,

the mines have been grouped in 10(Ten) Areas as follows:

3. PERFORMANCE

During the year 2014-15 WCL hasachieved coal production of 41.147Million Tonnes against the AAP targetof 44.0 million tonnes which is 2.853Million tonnes less than the AAP targetand 1.418 million tonnes more than

last year’s actual of 39.729 milliontonnes.

Coal offtake during 2014-15 was41.247 million tonnes which is 3.753

million tonnes less than targeted45.000 million tonnes i.e. 91.7%achievement and 1.302 million tonnesmore than last year’s actual of 39.945million tonnes.

Overburden removal during the year

2014-15 was 122.914 million cubic meter

against the AAP target of 130.00 million

cubic meter which is 7.086 million cubic

meter less than the target and 2.838

million cubic meters more than last year’s

actual of 120.076 million cubic meter.

Shortfall in coal production during 2014-

15 was mainly due to following reasons:-

(i) Non materialisation of production from

ongoing/future projects as envisaged

in the annual plan on account of non/

delayed opening of un-viable projects

(ii) Termination of HoE (Hir ing of

Equipment) contracts, due to non

commencement of awarded work/

poor performance.

(iii) Poor performance of HoE (Hiring of

Equipment) contractors against

awarded work for OB removal/coal

production affected performance.

(iv) Restricted working space at HLOC

mine as the mine working reached the

boundary and presence of major

geological fault.

(v) Incidences of spontaneous heating/

fire, restricting the scale of production

in UG mines

(vi) Adverse geo-mining conditions such

as poor roof, high water percolation,

soft floor, geological disturbances

(Dyke/faults) affected coal production

in UG mines.

(vii)Shortage of Sand for Stowing at New

Majri UG

3.1 Performance of Production (Coal and

Washed Coal), Productivity, Coal Sales

and Off-take against Annual Action Plan

(AAP) targets and as compared to last

year’s is given in the following table:

Area District State Mines as on 1.4.2015

Chandrapur, Ballarpur,Majri, Wani and Wani North

Pench and Kanhan

Pathakhera

TTTTTotalotalotalotalotal

Chandrapur& Yavatmal

Chhindwara

Betul

Maharashtra

Madhya

Pradesh

Madhya

Pradesh

Under-

ground

Opencast Total

Nagpur and Umrer Nagpur Maharashtra 7

2 7

7

-

4 1

1 7

3 9

2 0

6

8 2

10

12

13

0 6

4 1

24


A Shovel-Dumper in operation at one of the Opencast Mine of WCL

3.2 Mechanised Underground Coal

Production

The Mechanised Coal Production from

Underground mines during the year

2014-15 was 7.405 million tonnes

which is 0.158 million tonnes less than

last year’s actual of 7.563 million

tonnes. Major reasons for shortfall in

coal production due to Restricted

working space on account of closure

of working due to

i) spontaneous heating/fire at DRC

3&4 and DRC6,7,8,

ii) adverse geo-mining conditions such

as-poor roof, high water percolation,

soft floor, geological disturbances

(Dyke/faults) at Kumbharkhani,

Rajur, Morpar, Saoner-II, Vishnupuri-

I & Vishnupuri-II UG.

S L

N O Target

AAP

36.100

7.900

44.000

45.00

44.941

0.108

0.108

Coal Production

OC (Mill Tonnes)

Coal Production

UG (Mill Tonnes)

Total Coal

Production

(Mill Tonnes)

Total Off-take

(Mill Tonnes)

Despatches

(Sales)

(Mill Tonnes)

Washed Coal

Production

(Mill Tonnes)

Despatches to

Steel Plants

(Mill Tonnes)

2013 -14Actual

31.999

7.730

39.729

39.945

39.953

0.120

0.118

Actual

33.581

7.566

41.147

41.247

41.350

0.0727

0.0747

%

Achieve-ment

overTarget

%Growth Over

lastyear

2 0 1 4 - 1 5

PARAMETERS

93.0

95.8

93.5

91.7

92.0

67.3

69.2

i)

ii)

iii)

iv)

v)

vi)

vii)

4.9

-2.1

3.6

3.3

3.5

-39.4

-36.7

25


iii) Shortage of Sand for Stowing at

New Majri UG on account of pending

clearance from Govt. of Maharashtra

for Kunada Sand Ghat

3.3 Productivity & overall System

Capacity Utilisation

Productivity per manshift of the Company

has gone up to 3.26 tonnes during the year

2014-15 which is more than the target of

2.92 tonnes and also more than last year’s

actual of 2.96 tonnes. SDL productivity

during the year was 78 Tonnes / Machine/

day against AAP Target of 81 TPD and

LHD productivity was 164 Tonnes /

Machine/day against AAP Target of 157

TPD. Overall system capacity utilization

of WCL for the year 2014-15 was 108.22 %.

3.4 Coal Stock

Coal Stock at the end of fiscal 2014-15

was 5.500 million tonnes as compared

to last years 5.600 million tonnes.

4. SAFETY

4.1 During the financial year 2014-15, there

had been a reduction of six serious

accidents vis a vis 2013-14. However,

there was no reduction in the number of

fatal accidents.

Skilled human resource are the biggest

asset for our company, hence their safety

is of paramount importance to us. Thrust

is being given in your company to increase

safety awareness at the grass-root level

in order to prevent repetitive nature of

accidents and accidents due to

negligence and casual attitude.

Participative safety management is being

practiced at the unit level by way of safety

committee meetings conducted every

month. Besides, tripartite safety committee

meetings at Area level with active

participation of DGMS officials are also

being held. Training and re-training of our

workforce to follow safe practices at the

work place has also been our thrust area

in 2014-15.

4.2 Steps Taken during 2014-15 to improve

safety and reduce accidents :

1) Special Safety Drives on various

subjects and operations were

conducted in all the mines of WCL in

order to assess the safety standards

of the mines and safety awareness

amongst the workmen

2) Special stress has been given on

green roof support & qualitative face

suppor t by roof bolting. Resin

capsules has also been introduced in

many underground mines specially in

watery strata.

3) Pit top safety talks were regularly

given in all the mines and the same

are being monitored during ISO

inspections.

4) Pit safety committees of all mines

have been re-activated and are being

attended by Area level and Hq. level

officers. The implementation of the

recommendations of these

committees are implemented and

monitored regularly.

5) Back shift inspections by senior

officers of mine and area have been

intensified.

6) CIL officers who were trained by

SIMTARS, Australia were engaged for

imparting training and upgrading the

knowledge of executives and

supervisors in evaluation of risk in the

mine, management of the risk and

preparation of Safety Management

Plan. On the basis of this training,

Safety Management Plans (SMPs)

have been prepared and submitted

26


to CIL for all mines of WCL. The same

are being reviewed at colliery level

periodically. A SIMTARS accredited

executive from CIL had visited Pench

Area of WCL on 16.12.2014 and

17.12.2014 to update and review the

Safety Management Plan (SMP)

prepared for each underground mine

of Pench Area and its implemen-

tation.

7) A subsidiary level bipartite meeting

was conducted between WCL

management and DGMS officials on

07.08.2014. During this meeting, Area

General Managers and Area Safety

Officers were advised to keep strict

vigil on unsafe practices.

8) Similarly, a subsidiary level tri-partite

meeting was also conducted on

27.08.2014 which was attended by

WCL management, DGMS officials

and Trade Union representatives.

Suggestions obtained from CMD, DT,

DGMS officials and trade union

representatives were noted for

improving the standard of safety so

that accidents could be avoided. The

next tr i-par tite meeting will be

conducted by May 2015.

9) Meetings with Area Safety Officers

were conducted periodically to

evaluate the implementation status of

various safety measures in the mines.

The mine inspection repor ts of

Workmen Inspectors (in form U) and

other officials are regularly monitored

and rectification of deficiencies

pointed out are ensured.

10) A high level committee had inspected

all the mines of WCL to ascertain the

preparedness for monsoon against

water danger.

11) General Manager(S&C) attends the

Safety Committee meeting of all

mines where fatal accident has taken

place during 2014-15 in order to

review the safety status of the mine.

12) The Annual Safety Fortnight – 2014

mine inspections were conducted

from 27.11.2014 to 10.12.2014

wherein each mine was inspected by

multi-disciplinary team in order to

ensure that all operations are being

conducted safely and as per statute.

4.3 Statistics of Fatal and Serious

Accidents (Financial Year)

Statistics of Fatal and Serious

Accidents (Calender Year)

4.4 Technical Contribution in 2014-15 :

i) Vetting of operational plans of all

mines by ISO at Hq.

ii) RMR study for development districts

for support design.

Particulars

No. of fatal accidents

Fatalities

Fatality rate per million Tn. production

Fatality rate per 3 lakh manshift

No. of serious accidents

Serious Injuries

S.Injury rate per million Tn. production

S.Injury rate per 3 lakh manshift

2014 -15

(Financialyear)

2013 -14(Financial

year)

8

9

0.22

0.21

3 3

3 5

0.85

0.83

8

8

0.2

0.18

3 9

4 0

1.00

0.89

8

9

0.23

0 .2

4 5

4 7

1.19

1.04

Particulars

No. of fatal accidents

Fatalities

Rate per million tonne output

Rate per 3 lakhs manshift

No. of serious accidents

Serious Injuries

Rate per million tonne output

Rate per 3 lakhs manshift

2014 -15

(Calenderyear)

2013 -14(Calender

year)

9

1 0

0.24

0.24

3 6

3 8

0.92

0.91

27


iii) Accident enquiry in case of fatal &

serious accidents and enquiry into

major dangerous occurrences /

incidents .

iv) Analysis of all accidents and

incidents so as to decide preventive

safe practices.

4.5 Special Achievements in 2014-15 :

(i) In addition to statutory initial training

imparted to contractor workers, a

special training is being imparted to

contractor workers on safety

aspects. In this connection, 2418

numbers of contractor workers

(engaged as dumper/ tipper/

excavator and pay loader operators)

to be imparted the above special

training has been identified. A

schedule of training of contractor

workers at different VTC centre of

WCL has been prepared in

consultation with HRD Deptt, WCL

and the same is being conducted

and is expected to be completed by

8th June 2015.

(ii) Workshop on functional skill

updation programme for Ventilation

Officers was conducted at MDI ,

Nagpur from 08/09/2014 to 10/09/2014

(iii) Workshop on functional skill

updation programme for Safety

Officers was also conducted at MDI

Nagpur from 15/12/2014 to 17/12/2014.

(iv) Workshop was also conducted on

22.01.2015 at WCL Hq. on ‘Control

of Spontaneous Heating / Fire in UG

mines. This workshop was

conducted by expert faculty Shri

N.Sahay, Sr. Scientist, CIMFR,

Dhanbad and was attended by Area

Safety officers, Managers and other

senior officers of WCL.

(v) In WCL, seven numbers of Gas

Chromatographs have been

procured. Six stationary type have

been installed in 6 areas (Ballarpur,

Chandrapur, Majri, Nagpur, Kanhan

and Pathakhera) and one portable

type has been commissioned at

Mines Rescue Station, Nagpur.

(vi) In WCL, there are nine Man riding

Systems installed in 8 mines [i.e,

Tandsi, Mohan, Saoner-1, Tawa-1,

Shobhapur (2nos.) Kumbharkhani,

Ballarpur Colliery 3&4 and

Chattarpur-1 Another man-riding

system has been installed at Adasa

UG mine, Nagpur Area and is likely

to be commissioned shortly.

Future Programme :- Further, eight

mines have been identified for

installation of man-riding system. [

viz. Saoner-2, Nandgaon Incl., HLC-

1, Mahakali, Rajur, Nehariya, Tandsi

(second system) and Saoner-3] .

Competent approval has been

obtained for Nandgaon incl. and for

the remaining mines, action for

approval is under process.

(vii) In WCL, there are no degree-III

mines. However, presently six tele-

monitoring systems have been

installed in the following mines of

WCL, (Viz. BC3&4, DRC, NMC-3/

Naglone, HLC-1, Sasti UG and

Mahakali).

Further, 9 nos of telemonitoring

systems for Nehariya, Thesgora,

Mathani, Tawa-1, Tawa-2, Tandsi,

Mohan, DRC 6,7,8 and Nandgaon

Incl. underground mines of WCL

have been identified and proposal

is under process of competent

approval.

28


(viii) Slope Stability Radar (SSR) issuitably integrated with a real timevisual imaging system forcontinuously scanning the problemarea in opencast mines to identifythe potential areas of failure andvisualise any ground movement /failure by comparing measurementagainst the first scan having suitableaudio-visual warning system.

In vew of slope failures at Sasti OCmine in the past, WCL has placedorder for one number of SlopeStability Radar to be installed atSasti OC mine (dragline mine),Ballarpur Area for round the clockdump slope and bench slopemonitoring. The same is likely to beinstalled by 31st May 2015.

4.6 Utilisation of Safety Budget : 2014-15

Head Capital

5. RESCUE

5.1 Prompt Service in Emergency &Reopening.

During 2014-15, two incidents ofSpontaneous Heating/fire and three re-opening operations have been dealtsuccessfully as per the following details :-

5.2: IN-HOUSE EXPERTISE TO

CALIBRATE GAS DETECTORS

The initiative taken to acquire in-house

exper tise for maintenance and

caliberation of gas detectors of

different make led to increased

reliability, availability and efficiency of

the gas detectors in mines besides

considerable saving in cost of

Rs.46.00 Lakhs during the year.

5.3 REVENUE GENERATION :

Mines Rescue Station, Nagpur

imparted Rescue training to

employees of M/S. Sunflag Iron &

Steel Company and MOIL Ltd. and

generated revenue to the tune of

Rs.17.33 Lakhs.

5.4 Competition/Drives in Rescue

Services:

5.4.1 Inter Rescue Room Competition was

held in the month of February 2015.

RRRT, Tadali bagged the First Prize

under RRRT group and Rescue

Room Sasti was adjudged First in

Rescue Room group.

5.4.2 Zonal / Inter Area Rescue Competition

was held at RRRT, Pathakhera on

dt.14.11.2014. Overall First Prize was

bagged by Pench Area, Overall

Second – Chandrapur Area and

Overall Third- Pathakhera Area.

5.4.3 All India Mines Rescue Competition

was held at Mines Rescue Station,

Ramgarh (CCL), from 14th to 17th

January 2015. In this competition

WCL Team bagged the following

prizes.

Drill & Turnout -2nd and 3rd Prize

Rescue and Recovery - 3rd Prize

Rescue Work - 3rd and 4th Prize

CapitalCapitalCapitalCapitalCapital

Rs. 433 lakhs

Rs. 205.47 lakhs

H e a dH e a dH e a dH e a dH e a d

Budget

Expenditure

Sl.Sl.Sl.Sl.Sl.No.No.No.No.No.

01

02

0 3

0 4

0 5

12.07.14

20.07.14

13.09.14

25.02.15

24.03.15

— -

—

15.09 .14

—

25.03 .15

Silewara /

Nagpur

Vishnupuri-2 / Pench

DRC-6,7,8/Chandrapur



Fire occurred in IV Top

Sector- C, 0L / 3R

Re-opening of part panel ofVB-2 seam, which was sealed

due to spontaneous heating

DRC Incline No.6,7,8 hasbeen sealed due to fire in

underground at 5R/14L.

Partial re-opening (recoveryof main fan)

Partial re-opening of mine

DateColliery/

AreaReasons

29


5.5 Gas Chromatograph : One Portable

Gas Chromatograph and two

stationary Gas Chromatograph has

been installed at Mines Rescue

Station, Nagpur and RRRT-Parasia,

Pathakhera respectively for prompt and

precise mine gas analysis.

6. AVAILABILITY OF POWER AND

CONSUMPTION

6.1 Availability of Power

6.2 Power Consumption

6.2.1 Electricity

(a) Power consumption during the

year has been reduced over

previous year by 6.77% (42.941

Million kWh) due to Implemen-

tation of various energy

conservation measures and less

rainfall by 45% than previous

year.

(b) Average Rate (Rs/kWh) during

the year as compared to previous

year has been increased due to

increment in the tariff charged by

MSEDCL and Regulatory Liability

Charges refund amounting Rs

69.75 lakhs/ month has been

stopped since March, 2014 by

MSEDCL, despite of the increase

in incentives for high power by Rs

20.65 lakhs, reduction in penalties

due to low power factor by Rs

53.95 lakhs, reduction in

additional charges paid due to

Excess Recorded Maximum

Demand by Rs 68.43 lakhs &

segregation of domestic

consumption from industrial at

Sundar Nagar, Kailash Nagar and

Pipla.

6.2.2 As a part of initiatives under Energy

Conservation, the Company awarded

the work for benchmarking of electric

power consumption at Umrer

Opencast mine to M/s. Elion

Technology and Consulting during the

month of January, 2015.

7. Population & Performance of

Equipment

7.1 Population of Equipment

7.2 Performance of HEMMs

7.2.1 Availability of HEMMs

i) CMPDIL-Norms for availability of

Dumper has been achieved.

ii) WCL ranked Third in Availability

of Shovel among all subsidiaries

of CIL.

iii) Availability of Dumper, Dozer and

Drill has been higher than last

year.

7.2.2 Utilization of HEMMs

i) Utilization of all the HEMM’s in

WCL is more than CIL average.

ii) CMPDIL Norms of utilization with

respect to Shovels, Dumpers,

Dozers and Drills could not be

achieved due to ageing of

equipment, as 29.4% of total fleet

of equipment (as on 25.03.2015)

have qualified for survey-off.

Area

Average Contract Demand in MVA

Average Availed Demand in MVA

2014 -15

140 .846

120 .893

2013 -14

141 .975

127 .941

Purchased

Units in MKWH

Rate / unit

2014 -15

591 .013

7 .41

2013 -14

633 .953

7 .29

S.No. Equipment As on 31st March

2015 2014

1 Dragline 3 3

2 E.R.Shovel 37 39

3 Hydraulic Excavator 92 99

4 Dumper 449 494

5 Dozer 150 158

6 Drill 98 91

TOTAL 829 884

Population

30


7.3 Special Achievements

7.3.1 WCL is ranked as SECOND in

utilization of Dumper & Dozer while

THIRD in Dragline, Shovel & Drill

among all subsidiaries of CIL.

7.3.2 56 new equipment including 60T

Dumpers and Hydraulic Excavators

were purchased against surveyed off

during the year.

7.3.3 To increase reliability of aged

equipments, 5 Equipments have been

covered under Rehabilitation

programme and 28 Equipments have

been taken under Reliability

Programme.

7.3.4 During FY 2014-15 CWS, Tadali has

achieved 110% against Target in repair

jobs of Machine, Heat Treatment and

Structural shops. Engine

transmission, sub-assembly repair

shop registered 106.5% achievement

against target.

7.3.5 Initiative has been taken for

benchmarking of specific diesel

consumption in Bhatadi opencast mine

and the work was awarded to M/s.

CSIR in the month of January, 2015.

7.3.6 System Capacity Utilization of Open

Cast Mines of WCL :-

8. FINANCIAL PERFORMANCE:

The Company has earned a profit

before tax in the year 2014-15 Rs.545

Crores as against Rs. 326 Crores in

the previous year 2013-14. The

financial performance of the Company

for the year 2014-15 vis- a-vis 2013-

14 is furnished below:

8.2 THE WORKING RESULTS FOR THE

YEAR AS COMPARED TO THEPREVIOUS YEAR ARE GIVEN

BELOW:-

Year

2014 -15

2013 -14

Capacity

Utilization

9 8 . 0 8 %

9 6 . 5 9 %

Capacity in

Mill. Cu.m.

81 .76

80 .73

Remarks

Based on CMPDI capacity ason 1st April, 2014.

Based on CMPDI capacity ason 1st April, 2013.

Sl.Sl.Sl.Sl.Sl. ParticularsParticularsParticularsParticularsParticulars AmountAmountAmountAmountAmount Amount Amount Amount Amount Amount

N oN oN oN oN o

11111 PRPRPRPRPROFIT BEFORE OFIT BEFORE OFIT BEFORE OFIT BEFORE OFIT BEFORE TTTTTAX FOR AX FOR AX FOR AX FOR AX FOR THE THE THE THE THE YEAR 2013-14YEAR 2013-14YEAR 2013-14YEAR 2013-14YEAR 2013-14 3 2 6

22222 CHANGE IN INCOMECHANGE IN INCOMECHANGE IN INCOMECHANGE IN INCOMECHANGE IN INCOME

i Increase in Sales Revenue 7 1 2

ii Increase in Other Operating Revenue 6 3

iii Increase / (Decrease) in Other Income (45)

Net increase in Income 7 3 0

33333 CHANGE IN EXPENSESCHANGE IN EXPENSESCHANGE IN EXPENSESCHANGE IN EXPENSESCHANGE IN EXPENSES

i Increase in Cost of Material consumed 6

ii Change in inventory 8 4

iii Increase in Employee expenses 2 1 3

iv Increase in Contractual expenses 1 0 4

v Increase in provisions / mine closure expenses 9 4

vi Increase in Depreciation 4 4

vii Change in OBR Adjustment and Other expenses (34 )

Net increase in Expenses 5 1 1

PROFIT BEFORE TAX FOR THE YEAR 2014-15 (1+2-3) 5 4 5

(` in crores)

PPPPPA RA RA RA RA RT I C U L A R ST I C U L A R ST I C U L A R ST I C U L A R ST I C U L A R S 2 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 5 2013-14 2013-14 2013-14 2013-14 2013-14

Revenue From Operations 9652.74 8 5 6 3 . 6 4

Less:Less:Less:Less:Less: Levies Maharastra 1 9 9 1 . 4 9 1 6 5 3 . 7 6

Madhya Pradesh 3 3 5 . 8 6 2 9 6 . 0 5

2 3 2 7 . 3 5 1 9 4 9 . 8 1

Net Revenue FromNet Revenue FromNet Revenue FromNet Revenue FromNet Revenue From

O p e r a t i o n sO p e r a t i o n sO p e r a t i o n sO p e r a t i o n sO p e r a t i o n s 7 3 2 5 . 3 97 3 2 5 . 3 97 3 2 5 . 3 97 3 2 5 . 3 97 3 2 5 . 3 9 6 6 1 3 . 8 36 6 1 3 . 8 36 6 1 3 . 8 36 6 1 3 . 8 36 6 1 3 . 8 3

Net Other OperatingNet Other OperatingNet Other OperatingNet Other OperatingNet Other Operating

R e v e n u eR e v e n u eR e v e n u eR e v e n u eR e v e n u e 2 2 3 . 1 32 2 3 . 1 32 2 3 . 1 32 2 3 . 1 32 2 3 . 1 3 1 6 0 . 0 81 6 0 . 0 81 6 0 . 0 81 6 0 . 0 81 6 0 . 0 8

TTTTTotal Reotal Reotal Reotal Reotal Revenvenvenvenven ue frue frue frue frue fromomomomom

O p e r a t i o n sO p e r a t i o n sO p e r a t i o n sO p e r a t i o n sO p e r a t i o n s 7 5 4 8 . 5 27 5 4 8 . 5 27 5 4 8 . 5 27 5 4 8 . 5 27 5 4 8 . 5 2 6 7 7 3 . 9 16 7 7 3 . 9 16 7 7 3 . 9 16 7 7 3 . 9 16 7 7 3 . 9 1

Less:Less:Less:Less:Less: Expenditure -

Net of other. Income 7 0 0 3 . 7 8 6 4 5 1 . 3 5

Gross MarginGross MarginGross MarginGross MarginGross Margin 7 8 0 . 8 17 8 0 . 8 17 8 0 . 8 17 8 0 . 8 17 8 0 . 8 1 5 1 7 . 0 55 1 7 . 0 55 1 7 . 0 55 1 7 . 0 55 1 7 . 0 5

Less: Depreciation/

Amortizat ion/ Impairment 2 3 6 . 0 7 1 9 2 . 2 3

Gross ProfitGross ProfitGross ProfitGross ProfitGross Profit 5 4 4 . 7 45 4 4 . 7 45 4 4 . 7 45 4 4 . 7 45 4 4 . 7 4 3 2 4 . 8 23 2 4 . 8 23 2 4 . 8 23 2 4 . 8 23 2 4 . 8 2

LessLessLessLessLess: Interest 0 . 0 0 2 . 2 6

Profit Before PPA 5 4 4 . 7 4 3 2 2 . 5 6

Less/(AdLess/(AdLess/(AdLess/(AdLess/(Add) :d) :d) :d) :d) : Prior Period

Adjustments ( 0 . 0 5 ) ( 3 . 3 0 )

Profit Before Tax 5 4 4 . 7 9 3 2 5 . 8 6

Less:Less:Less:Less:Less: TTTTTax Expensesax Expensesax Expensesax Expensesax Expenses

Provision For Taxation 2 4 2 . 3 3 1 5 1 . 3 9

Deferred Tax ( 5 6 . 3 4 ) 1 3 9 . 4 0

Earlier Tax 4 5 . 6 5 ( 1 8 8 . 5 2 )

PrPrPrPrProfit After ofit After ofit After ofit After ofit After TTTTTaxaxaxaxax 3 1 3 . 1 53 1 3 . 1 53 1 3 . 1 53 1 3 . 1 53 1 3 . 1 5 2 2 3 . 5 92 2 3 . 5 92 2 3 . 5 92 2 3 . 5 92 2 3 . 5 9

Add : Profit/(Loss)

from discontinuing operation ( 0 . 0 1 ) ( 0 . 0 1 )

Add: Add: Add: Add: Add: Profit Brought Forward 2 0 5 0 . 5 7 2 0 3 9 . 5 0

Less: Adjustment forLess: Adjustment forLess: Adjustment forLess: Adjustment forLess: Adjustment for

D e p r e c i a t i o nD e p r e c i a t i o nD e p r e c i a t i o nD e p r e c i a t i o nD e p r e c i a t i o n ( 5 2 . 6 8 ) 0 .00

Distributable SurplusDistributable SurplusDistributable SurplusDistributable SurplusDistributable Surplus 2 3 1 1 . 0 3 2 2 6 3 . 0 82 2 6 3 . 0 82 2 6 3 . 0 82 2 6 3 . 0 82 2 6 3 . 0 8

(` in crores)

31


10. BORROWING FROM GOVT. OF

INDIA:

Your Company has not borrowed anyamount from the Government of Indiadirectly during the year 2014-15.

11. CAPITAL EXPENDITURE:

During the year ending 31st March,2015 an amount of Rs. 518.79 crores(excluding capital commitment ofRs.978.44 crores) was invested inFixed Assets and Capital Work-in-progress of existing and upcomingMines/Projects.

The capital expenditure for theprevious year was Rs. 287.67 crores.

12. ROYALTY, SALES TAX, ENTRY TAX,EXCISE DUTY & OTHER DUTIESON COAL:

Royalty, Sales Tax, Entry Tax, StowingExcise Duty, Clean Energy Cess andCentral Excise Duty paid to Govt

during the year are as given below:-

14. PLANNING:

14.1 Group-wise production programme

and achievement during the year

2014-15 and target for the year 2015-

16 is furnished below:

APPROPRIATION :

8.3 DIVIDEND:

Directors are pleased to recommenda final dividend of Rs. 188.06 Crores(P Y Rs. 134.29 Crores ) @ 64.47%(P Y 45.20% ) on the paid up EquityShares Capital of the Company. Thetotal dividend per share is @ Rs. 633( P Y Rs. 452 per share ) on 29,71,000Equity Shares of the Company .

9. CAPITAL STRUCTURE:

9.1 SHARE CAPITAL:

The Authorised Share Capital of yourCompany is Rs.800 crores comprisingof 80 lakhs Equity Shares of Rs. 1000/- each of which Rs.297.10 crores ispaid up Equity Share Capital (29.71lakhs Equity Shares of Rs. 1000/-each) which remained unchanged

during the year.

9.2 LOAN FUND:

Unsecured Loans: NIL

Secured Loan: NIL.

However, charge has been created for

Rs.165.00 crores on current assets for

securing working capital facility from

CIL’s Consortium Banks as per joint

deed of hypothecation dated

01.09.2008. Further against approval

of CIL towards fund based facility an

amount for Rs.30 crores was allocated

to WCL. This loan has, however, not

been availed so far.

FINAL DIVIDEND

TAX ON DIVIDEND

TRANSFER TO CSR RESERVE

TRANSFER TO SD RESERVE

TRANSFER TO GENERAL RESERVE

SURPLUS SURPLUS SURPLUS SURPLUS SURPLUS

2 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 5

1 8 8 . 0 6

3 7 . 6 0

0 . 0 0

0 . 0 0

3 1 . 3 1

2 0 5 4 . 0 62 0 5 4 . 0 62 0 5 4 . 0 62 0 5 4 . 0 62 0 5 4 . 0 6

2 0 1 3 - 1 42 0 1 3 - 1 42 0 1 3 - 1 42 0 1 3 - 1 42 0 1 3 - 1 4

1 3 4 . 2 9

2 2 . 8 2

2 1 . 1 4

0 . 7 2

3 3 . 5 4

2 0 5 0 . 5 72 0 5 0 . 5 72 0 5 0 . 5 72 0 5 0 . 5 72 0 5 0 . 5 7

Particulars

1 Existing/ Completed Project

2 Ongoing/future Projects

2014-15

Target

24 .03

19 .97

44 .00

Actual

23.903

17.243

41.147

2013-14AAP Target

(As Per AnnualAction Plan)

22.16

22.94

45.10

(` in crores)

Royalty

Sales Tax

State

Central

Entry Tax

Stowing

Excise Duty

C l e a n

Energy Cess

Central Excise

Duty

TTTTTotalotalotalotalotal

M.....P.....

157.10

5 8 . 4 6

5 .18

1 0 . 2 1

5 .56

4 8 . 0 9

5 2 . 7 3

337.33337.33337.33337.33337.33

M. H

8 4 5 . 9 3

2 7 3 . 0 6

3 9 . 5 2

0 .00

3 5 . 4 6

2 9 8 . 2 8

3 0 5 . 5 3

1797 .781797 .781797 .781797 .781797 .78

Total

1003.03

331.52

44.70

10.21

41.02

346.37

358.27

2135.11

M.....P.....

1 4 0 . 8 5

5 0 . 8 0

6 .27

1 0 . 6 7

5 .79

2 8 . 1 3

6 0 . 6 3

3 0 3 . 1 43 0 3 . 1 43 0 3 . 1 43 0 3 . 1 43 0 3 . 1 4

M. H.

754.00

239.86

35.58

0.00

33.64

167.60

285.57

1516.25

Total

894.85

290.66

41.85

10.67

39.43

195.73

346.20

1819.39

2 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 52 0 1 4 - 1 5 2 0 1 3 - 1 42 0 1 3 - 1 42 0 1 3 - 1 42 0 1 3 - 1 42 0 1 3 - 1 4

(` in crores)

32


15. DRILLING & EXPLORATION:

15.1 During the fiscal, total 111014.50

meters of drilling was carried out by

CMPDIL in WCL command area. This

includes 758677.65 meters in CIL

Blocks and 35146.85 meters in Captive

Blocks. Reserves of 314.797 Mt had

been established in CIL Blocks (Proved

304.914 Mt) and reserves of 90.928 Mt

had been established in Non CIL

Blocks.

The target for drilling in 2015-16 in WCL

command area is 154000 meters

(Departmental as well as outsourcing

in CIL blocks and captive blocks).

16. REPORT FORMULATION

16.1 Geological Reports

During the year 2014-15 the following

Geological Reports were prepared:

i) GR of Gouri Central, Wardha

Valley Coalfield.

ii) GR for Bansuli, Bander Coalfield.

iii) GR for Chimri/Bababehra/

Vishnupur, Patherkhera Coalfield

(Non-CIL).

iv) GR for PR Dhankasa OC, Pench

Coalfield.

v) GR for PR of Silori OC, Kamptee

Coalfield.

vi) GR for PR of Bhandak West OC,

Wardha Valley C.F.(Captive

Block).

The following GR/Interim GR are

scheduled to be prepared during 2015-16:

i) Saoner- II & III, Kamptee coalfield

ii) Konda Hardola, Wardha valley

Coalfield.

iii) Rajur- Manikgarh, Wardha valley

Coalfield.

iv) Bahmni- Palasgaon, Wardha

Valley Coalfield.

The following Geological Reports

arescheduled to be prepared during

2015-16 by outsourcing agency:

i) Sangam. Kamptee Coalfield

ii) Silewara Kamptee Coalfield

iii) Ambara- Sukri Pench – Kanhan

Coalfield

16.2 Mining Project Reports:

During 2014-15 following 7 Mining

Project Reports were formulated:

16.3 PLANNING PREPAREDNESS

16.3.1 At present there are 33 ongoing

projects with a capacity of 36.165

Million Te/annum with a total

sanctioned capital of ̀ 2775.557 Crores.

Out of this 22 projects have contributed

17.243 Mte coal production during the

year 2014-15 and rest are under

implementation.

16.3.2 Overcoming the financial

challenges

The financial challenges faced by WCL

is the viability of projects in terms of

desired selling price to yield 12% IRR

as many of the ongoing / future /

replacement projects were falling in the

ambit of cost plus after revision of land

rates declared by Government of

Maharashtra, new R&R Policy, 2012

and other cost in parameters.

S. Name of Project Capacity Capital

No. (Mty.) (Rs. Crores)

1 Recast PR of Tawa –III UG 0 .48 1 3 5 . 1 7 3 5

2 Recast of Jamunia UG 0.84 1 9 8 . 7 6 7

3 PR of Shaktigarh UG 1.70 8 4 2 . 1 1 3 2

4 RPR of Dinesh OC 4.00 6 1 1 . 1 6 0 5

5 RPR of Penganga OC 4.00 4 4 1 . 8 2 0 9

6 PR of Silori OC 2 .00 1 7 9 4 . 8 7 5 0

7 PR of Adasa UG to OC 1.5 4 4 3 . 7 5 8 0

33


WCL has taken steps in bringing

revision of old CMPDIL norms for

formulation of the Project Report,

capacity enhancement in some of the

projects wherever possible,

amalgamation of adjacent projects etc.,

After taking these steps many Projects

of WCL namely Makhardhokra I OC,

Penganga OC, Bhanegaon OC, Gokul

OC & Dinesh OC came out of the ambit

of cost plus and viable on notified price.

16.3.3 LONG TERM PLANNING :

WCL has planned to open 23 New/

Replacement projects with total

capacity of 34.35 MTY in the state of

Maharastra & Madhya Pradesh during

the FY 2015-16 & 2016-17 to create a

production capacity of 60 MT as a part

of 1 BT production programme of CIL

by 2019-20. The details of projects are

as under:-

17. PROJECTS/SCHEMES APPROVAL

17.1 Approval of Project Reports

During the year 2014-15 following

projects were approval by WCL/CIL Board

* Approved by CIL Board.

17.2 Commissioning of Projects:

17.3 Major activities/milestones achievedduring the year in respec of new ongoing projects

i) Makardhokra-I mine was openedon 28.11.2014 with the approvalof WCL Board on 27.09.2014 and

after the award of work for the OBremoval on 08.11.2014. The mineproduced 69000 tonnes of coalupto March, 2015.

ii) Milestones of building capacity of0.45 MT of scheme of DhurwasaOC Mine was achieved in themonth of December, 2014.

iii) OB rehandling and soilexcavation of 37.43 lakhs cu.m(88.7% of awarded work) wasexecuted along path of Amb riverfor diversion.

iv) Master control network in respectof 15 projects costing more than

Rs.20 rores or having capacity

more than 1 MTPA was prepared

and submitted.

Sl.Sl.Sl.Sl.Sl. Name of ProjectName of ProjectName of ProjectName of ProjectName of Project AreaAreaAreaAreaArea CapacityCapacityCapacityCapacityCapacity OpeningOpeningOpeningOpeningOpening

No.No.No.No.No. (Mty )(Mty )(Mty )(Mty )(Mty ) ScheduleScheduleScheduleScheduleSchedule

1 New Majri Sector IA & IIA OC Majri 1 .20 May-15

2 Gokul OC Umrer 1 .50 May-15

3 Jamunia UG Pench 0 .84 July-15

4 New Majri UG to OC Majri 0 .80 Jun-15

5 Sharda UG Kanhan 0 .32 Jun-15

6 Dinesh OC Umrer 4 .00 Oct-15

7 Dhau North UG Kanhan 0 .36 Oct-15

8 Singhori OC Nagpur 0 .80 Nov-15

9 Amalgamated Yekona -I & II OC Majri 2 .50 D e c - 1 5

1 0 Amalgamated Pauni-II & III OC Ballarpur 2 .50 Jan-16

1 1 Chincholi OC Ballarpur 0 .30 Feb-16

1 2 Kamptee Deep OC Nagpur 1 .50 Mar -16

2 0 1 6 - 1 72 0 1 6 - 1 72 0 1 6 - 1 72 0 1 6 - 1 72 0 1 6 - 1 7

1 Mungoli Nirguda Deep OC Wani 4 .00 April-16

2 Bellora / Naigaon Wani 1 .00 M a y - 1 6

(Amb River Diversion) OC

3 Umrer Expansion Umrer 2 .00 Jun-16

(Amb River Diversion) OC

4 Waghoda UG Nagpur 0 .39 July-16

5 Tawa-III UG Pathakhera 1 .00 Sept-16

6 Hindustan Lalpeth Expn. OC Chandrapur 1 .00 Oct-16

7 Dhuptala Extn. Ballarpur 1 .70 Nov-16

(Sasti UG to OC)

8 Pimpalgaon Deep OC Wani North 1 .00 D e c - 1 6

9 Padmapur Deep OC Chandrapur 2 .50 Jan-17

1 0 Niljai Expansion (Deep) OC Wani 3 .00 Feb-17

1 1 Harradol UG Kanhan 0 .14 Mar -17

Sl. Project Date Sanctioned Sanctioned

No of Approval Capacity Capital

(Mtpa) (Rs. Crores)

1 Penganga OC 2 7 . 0 9 . 2 0 1 4 4 . 0 0 4 4 1 . 8 22 Makhardhokhda I OC 2 7 . 0 9 . 2 0 1 4 2 . 0 0 2 6 6 . 2 33 Gokul OC 2 9 . 1 1 . 2 0 1 4 1 . 5 2 6 7 . 6 74 Bhanegaon OC 0 3 . 0 2 . 2 0 1 5 1 . 0 0 1 8 7 . 9 45 Junnad Ext. OCP 0 3 . 0 2 . 2 0 1 5 0 . 6 7 9 . 3 7 9 3

(additional)6 New Majri Sector 0 3 . 0 2 . 2 0 1 5 1 . 2 5 2 . 2 5 5 9

IA & Sector II A OC (additional)7 Dinesh OC* 0 8 . 1 1 . 2 0 1 4 4 . 0 0 611.16

Sub-

sidiary

W C L

W C L

W C L

Sl.

No.

1

2

3

Name of the Projects

Makhardhokdhra-I

Bhanegaon

Penganga

Type

O C

O C

O C

Sanctioned

Capacity

(Mty)

2.00

1.00

3.00

Sanctioned

Capital

(Rs. Crores)

266.30

187.94

441.82

34


v) Depar tment of BusinessManagement, Rashtrasant TukdojiMaharaj Nagpur University wasawarded the work as anindependent consultant to developa business model to enable WCLto open new projects with specialemphasis on cost analysis.

vi) Construction of approach road atGouri Deep OC was completed inthe month of January, 2015.

17.4 ISO-9001-2008 certification:

During the year, ISO-9001-2008certification was accredited to 9 Mines/Training Institutes and re- certificationof 18 units was also received fromQMS Certification Services Pvt. Ltd,Bangalore with the approval ofJASANZ Australia.

18. Acquisition of land :

18.1 The Coal Bearing Areas (Acquisition &Development) Act, 1957 is the mainstay for acquiring land by the CentralGovernment and thereafter vestingwith WCL for coal mining activities.After execution of agreements u/s14(1) of CBA Act, with Land Owners,the amount of compensation isassessed as per the provisions of theAct or as per rates declared andinvoked by Government ofMaharashtra. Compensation amountis disbursed after obtaining thesanction from Ministry of Coal, Govt.of India and all benefits under the R&RPolicy of CIL are extended.

Since nationalization, WCL hadacquired under CBA Act, 21472.618Ha. of land till March, 2015, out of which11210.942 Ha. is under possession.

During the fiscal, 1363.46 Ha. land wasnotified U/s. 9(1) of CBA Act and1441.08 Ha. land was notified U/s.11(1) of CBA Act.

18.1.1 Land acquisition has been done underLand Acquisition Act 1984 throughState Government alsoand all benefits

under the R&R Policy of CIL areextended.

Since nationalization WCL hadacquired 4184.642 Ha. land till March,2015 out of which 4080.842 Ha. isunder possession.

18.1.2 The provisions of Land Revenue Code

of Madhya Pradesh and Maharashtra

have also been preferred for acquiring

land in cases where mining lease has

been obtained under Mineral

Concession Rules.

WCL had acquired and taken

possession of 1594.329 Ha. and

1572.417 Ha. land respectively under

this provision. During the year 36.232

Ha. land under MPLRC was acquired,

out of which 14.320 Ha. land was taken

under possession. At times, land was

also being acquired through direct

purchase to meet the critical

equirement as well.

18.1.3 During the FY 2014-15, your Company

has made a remarkable achievement

in acquisition of land for mining and

allied activities and details of acquisition

are as under :

18.2 Physical possession of land :

18.2.1 The Company has achieved a

remarkable landmark in physical

possession of land i.e. to the tune of

1370.432 Ha during the year as a result

of initiatives taken from the month of

November, 2014 to resolve contentious

and long pending issues of land owners.

Sl.Sl.Sl.Sl.Sl. A r e aA r e aA r e aA r e aA r e a ProjectProjectProjectProjectProject Mode of acquisitionMode of acquisitionMode of acquisitionMode of acquisitionMode of acquisition TTTTTotal Areaotal Areaotal Areaotal Areaotal Area

No.No.No.No.No. (In Ha.)(In Ha.)(In Ha.)(In Ha.)(In Ha.)

1 Ballarpur Dhuptala OC CBA (A&D) Act 8 7 0 . 8 7 0

2 Nagpur Kamptee UG to OC Direct Purchase 6 . 2 0 0

3 Nagpur Inder UG to OC Direct Purchase 1 9 . 5 2 0

4 Wani Niljai Deep OC CBA (A&D) Act 4 1 0 . 4 7 0

5 Wani North Ukni Deep OC Direct Purchase 2 . 2 0 0

6 Pench Barkuhi Ph. - III M P L R C 3 6 . 2 3 2

T O T O T O T O T O T A LT A LT A LT A LT A L 1 3 4 5 . 4 9 21 3 4 5 . 4 9 21 3 4 5 . 4 9 21 3 4 5 . 4 9 21 3 4 5 . 4 9 2

35


18.2.2Details of land taken in physical

possession during FY 2014-1518.4.3 Forest land acquisition

Forest land is diverted from State

Government as per the provisions of

Forest Conservation Act, 1980 after

approval from MoEF, New Delhi. This

year Stage- II clearance has been

obtained for 19.50 Ha. forest land for

Ghorawari OC Mine of Kanhan Area

and physical possession of 9.50 Ha.

forest land for Sharda UG Mine of

Kanhan Area has been handed over

by Forest Department.

18.4.4 Rehabilitation and Resettlement

Total 9 Project Affected Families were

resettled in 2014-15 by providing

resettlement grant on the option given

Sl.No.1

2

3

4

5

6

7

89

10

11

12

13

141516

1718

Area

Ballarpur

Ballarpur

Chandrapur

Nagpur

Nagpur

Nagpur

Nagpur

UmrerUmrer

Wani North

Wani North

Wani North

Wani North

WaniWaniPench

PenchKanhan

Project

Sasti Expn.OCGouri DeepOCBhatadi Extn.OCKampteeUG to OCKampteeUG to OCInder UGto OCBhanegaonOCGokul OCMakardhokra-I

Ukni DeepOCKolarpimpriDeep Extn. OCJunadExtn.OCGhonsa OCPenganga OCPenganga OCBarkuhi OCPhase – IIIJamunia UGSharda UG

Mode ofacquisition

LA Act

CBA(A&D) ActLA Act

LA Act

DirectPurchaseDirectPurchaseCBA(A&D) ActCBA (A&D) ActCBA (A&D) Act

DirectPurchaseCBA(A&D) ActCBA(A&D) ActCBA(A&D) ActCBA (A&D) ActLA ActMPLR

CBA (A&D) ActFC ActTTTTT OOOOO TTTTT A LA LA LA LA L

Tenancy

44.110

7.670

3.440

5.070

6.200

19.520

25.70

282.570294.920

2.200

101.180

6.340

20.92335.150

4.23014.320

48.6780.000

1222 .2181222 .2181222 .2181222 .2181222 .218

Govt .

-

-

-

-

-

-

-

2 2 . 1 02 0 . 2 2

-

-

-

-96.394

--

-0 . 0 0 0138.714138.714138.714138.714138.714

Total Area(in Ha.)44.110

7.670

3.440

5.070

6.200

19.520

25.70

304.670315.140

2.200

101.180

6.340

20.920431.544

4.23014.320

48.6789.500

1370.4321370.4321370.4321370.4321370.432

Forest

-

-

-

-

-

-

-

--

-

-

-

----

-9 . 5 0 09 . 5 0 09 . 5 0 09 . 5 0 09 . 5 0 09 . 5 0 0

Opening new Chapter - Inauguration of Penganga Opencast Project, the largest mine of WCL on 22ndMarch, 2015 at the hand of Shri Devendra Fadnavis, Hon’ble Chief Minister of Maharashtra in the augustpresence of Shri Nitin Gadkari, Hon’ble Minister of Road Transport and Highways, Govt. of India, ShriPiyush Goyal, Hon’ble Minister of State (IC) for Power, Coal, New & Renewable Energy, Govt. of India,Shri Hansraj Ahir, Minister of State for Chemical & Fertilizers, Govt. of India amongst other.

36


by land oustees, within the provision

of R&R Policy of CIL. These includes 5

families of Pits Colony under Ghugus

OCP and 4 families of Kamptee UG to

OC Mine, Nagpur Area.

Administrative approval for

employment during 2014-15:

18.4.5 Constraints in acquisition of land:

i) For the land notified U/s. 9(1) of

CBA Act, 1957 considerable time

elapsed in executing agreement

with each land owners U/s. 14(1)

of CBA Act, which is required for

preparation of compensation bill at

the rate of land compensation

applicable for WCL as declared by

Government of Maharashtra.

ii) There is inordinate delay in

processing the forestry clearance

proposals at different levels of

State Forest Department causing

delay in obtaining clearance for

diversion of forest land from MoEF.

iii) State Government officials show

their inability for providing

Government land for resettlement

of Project Affected Families (PAFs).

Identification of land for

resettlement in consultation with

PAFs causes delay in identification

of resettlement site.

Adding another Feather - Bhumipujan on the occasion of inauguration of Bina-Bhanegaon

Opencast Project under Nagpur Area.

Year

2014-15

Employment/ Monetary

Compensa-tion in

lieu of Employment

administratively

approved by WCL Board

163 Nos. / 61 Nos.

Name-wise

Monetary compen-

sation in lieu of

employment

approved

113 Nos.

37


18.4.6 To overcome the above constraints

meetings were held with Chief

Secretary, Government of Maharashtra

on 9th April, 2014, 1st July, 2014, 21st

November, 2014 and 10th December,

2014 and with Principal Secretary

(Revenue) on 31st December, 2014 and

23rd February, 2015, for expeditious

processing of forestry clearance

proposals. Besides above, meetings

were also held with Collector,

Chandrapur and Nagpur on 7th January,

2015 and 15th January, 2015. The

progress was reviewed in subsequent

meetings held on 13th January 2015

and 10th February, 2015, with APCCF/

Nodal Officer and other Officials at

Nagpur for expediting the forestry

clearance proposals. With the active

cooperation and support of State

authorities, the proposals for forestry

clearance in respect of Ghonsa OC,

Singori OC, Durgapur Extn. OC, Gokul

OC and Mahakali UG have been

recommended and forwarded to MoEF.

18.4.7 Meetings were also held with Madhya

Pradesh State Forest Officials CCF,

Chhindwara on 10th December, 2014

and at MoEF, R. O., Bhopal on 10th

February, 2015 for expediting forestry

clearance proposals which are under

process at State Level and at MoEF.

19 COAL MARKETING

19.1 Raw Coal Offtake during the Fiscal

2014-15 was 41.247 Mill Te against the

TGT of 45.00 Mill Te i.e achievement

of 91.7 % of Target. Offtake during the

fiscal 2013-14 was 39.945 Mill Te.

Offtake during the year was affected

mainly due to the reasons beyond the

control of WCL. The main reasons of

shortfall are as under

Failure of Contractors engaged by

Mahagenco in transporting Coal from

Bhatadih to CSTPS resulted in

accumulation of stock at Bhatadih Cost

Plus Mine dedicated to CSTPS to the

tune of 0.253 Mill Te

Restriction in sale of Coal under e-

auction to 3.000 Mill Te (w.e.f Aug’14)

resulted in shortfall by 0.600 Mill Te as

compared to last year.

Disruption in production and despatch

due to 2 days’ strike by Trade Unions

on 6th and 7th January, 2015 (estimated

impact on offtake : 2.50 lakh tonnes).

Transporters failure against awarded

LOI contributed to Pshortfall of 1.760

Mill Te

19.1.1 Modewise AAP TGT and despatches

( Sales) by Rail , Road& Other mode

for 2013-14 & 2014- 15 are furnished

below:

DESPATCHES

(Fig in Mill-Te)

19.1.2 Modewise AAP Target &

Despatches(Sales) by Rail, Road &

Other Modes for 2013-14 & 2014-15

are furnished below:

YYYYYe a re a re a re a re a r

(By all(By all(By all(By all(By all

Modes )Modes)Modes)Modes)Modes)

2 0 1 3 - 1 4

2 0 1 4 - 1 5

AAP

TGT

44.100

45.00

ACTUAL DESPATCHES

RAIL

22.374

22.867

ROAD

13.603

14.731

MGR

0.581

0.400

OTHER/MODE

3.395

3.352

TTTTT OOOOO TTTTT A LA LA LA LA L

DESPDESPDESPDESPDESPAAAAATCHESTCHESTCHESTCHESTCHES

( S A L E S )( S A L E S )( S A L E S )( S A L E S )( S A L E S )

3 9 . 9 5 3

4 1 . 3 5 0

38


DETAILS OF SECTORWISE TARGET &

DESPATCHES DURING 2014-15

Govt. Power utilities could source a

quantity of 26.76 Lte on “As is where

is basis” during the fiscal 2014-15 as

per requirement of their power plant.

This has been helpful in augmenting

coal offtake from WCL

19.2 Wagon Loading ( in Boxes / Day

The details of AAP Target for wagon

Loading on daily Average basis &

quantity despatched for the year 2014

15 as compared to 2013-14 -

WCL has despatched 22.867 MT coal

through rail mode as against the AAP

target of 22.171 MT and against last

year’s actual of 22.374 MT. Thus WCL

has achieved 103.14% of target with

growth of 2.2 % over last year.

19.3 Sales realization

The Sales Realization during the

financial year 2014-15 was

Rs.9924.11 crs which was

Rs.1212.18 crores ( i.e.14% ) more

than the last year’s realization of

Rs.8711.93 crores.

19.4 Spot e-Auction :

Details of the total quantity of coal

offered under Spot e-auction, the

quantity allocated based on bids made

by the bidders and the additional

revenue generation on the basis of the

quantity allocated during the year

2013-14 and 2014 -15 are as below :

Even though the quantity offered/

allocated under spot e-auction during

2014-15 was less than 2013-14 due

to restriction in e- auction by CIL, still

the additional revenue generated under

Spot e-Auction conducted during 2014-

15 was more by Rs. 21.48 crs. as

compared to the additional revenue

generation in the Spot e-Auctions in

2013- 14. The variations in the Bid

Prices under the e-auctions are market

driven.

Sector A A PT G T

3 5 . 7 4 5

4 . 1 5 5

0 . 2 2 1

0 . 2 9 0

4 . 5 6 4

4 4 . 9 7 5

0 . 0 2 5

4 5 . 0 0 0

0 . 0 7 9

A C T

* 3 0 . 9 5

3 . 5 1 4

0 . 1 5 0

0 . 3 9 5

6 . 2 3 2

4 1 . 2 4 1

0 . 0 0 6

4 1 . 2 4 7

0 . 1 8 4

%a g e

8 7

8 5

6 8

1 3 6

1 3 6

9 2

2 4

9 2

2 3 3

ACT

Apart from *30.95 MTof raw coal 0.07 MT ofmiddlings was alsodispatched to powerutilities thus the totaldespatches to powerutilities including IPPsstands at 31.02 MT.during FY 2014-15Despatches were asper booking.

WCL has dispatched

Washed Coal to the

tune of 0.075Mill Te

& Washery Grade-II

Raw Coal to SAIL

Plants under MOU

as 0.049Mill Te as

Washery was not in

operation due to is-

sues related to Envi-

ronmental Clear-

ance w.e.f June’14.

Coal Supplied as perF S A

Includes FSA & E-Auct ion

2 0 1 4 - 1 5 2013 -14 % ageGrowth

over2013-14

(Fig in Mill Te)

R e m a r k s

Po w e rincludingI P P( R a wC o a l )

C e m e n t& C P P

S t e e l( R a w )

S p o n g eIron

Others

Tota lDespatch(Internal Raw)

C CTota l

Offtake(RawCoal)

Middl &Slurry(Despatch)

2 8 . 9 1 3

3 . 5 0 0

0 . 2 2 9

0 . 3 9 2

6 . 9 0 5

3 9 . 9 3 9

0 . 0 0 6

3 9 . 9 4 5

0 . 0 8 9

7

0 . 5

(-)53

1

(-) 11

3

0

3

3 2

Year Quantity offered Quantity allocated Additional Revenue(lakh tonnes) (lakh tonnes) g e n e r a t e d

(Rs. in crs.)

2 0 1 3 - 1 4 7 4 . 6 9 5 0 . 3 7 3 1 0 . 0 1

2 0 1 4 - 1 5 5 5 . 3 0 4 1 . 5 4 3 3 1 . 4 9

Year TGT ACT ACH% Rail Desp(Boxes) (Boxes) in Mill Te

2013-14 944 921 97.6 22.374

2014-15 928 944 101.7 22.867

39


19.4.1 Forward e-Auction

Quarterly Forward e-Auctions wereconducted in the year 2014-15. TheQuantity offered, the Bid Quantity by

the Customers and the Additionalrevenue Generated over and abovethe applicable Notified price are as

under:

20. CONSUMER SATISFACTION:

For furthering confidence andimprove consumer satisfaction

various steps were taken forimproving the quality of coal, for100% weighment on electronicweighbridges, and sampling &analysis by third party appointed byCIL during the FY 2014-15.

20.1 QUALITY OF COAL:

20.1.1 Coal Sampling & Analysis wascarried out by independent thirdparty agencies appointed by CIL,throughout WCL.

20.1.2 The overall Grade materialization ofthe coal supplied to the power sector

was 91.08% as compared to90.94% achieved during last fiscal.

20.1.3 Total dispatched quantity to thepower sector including IPPs by allmodes was 31.02 million Te, out ofwhich 30.90 million Te, was covered

under agreed third party sampling.

20.1.4 Following was the bonus earnedunder quality head against coalsupplies to Mahagenco from different

cost-plus mines of WCL:

20.1.5 The grade materialization in respect

of coal supplies made to GSECL &

UPRVUNL was 100% and it was

99.83% and 98.75% incase of

supplies to KPCL & HPGCL

respectively.

20.1.6 The weighted average Gross Calorific

Value (GCV) of coal supplied to

MAHAGENCO was more than the

GCV required for Mahagenco as

stated below:

20.1.7 WCL is the only subsidiary in CIL to

have one NABL-accredited

laboratory, functioning under the

administrative control of GM (QC).

Action is underway to get NABL

accreditation for other laboratories

also.

20.1.8 With a view to give further impetus

to the quality of coal and to

increase the awareness

Quality Fortnight was organized

throughout WCL during the period 21st

Oct. to 4th November 2014 at mine

level. Area level Quality Control

Teams were constituted to keep vigil

on the quality aspects and a Topic on

coal quality was included in the

curriculum of HRD for imparting

training with special emphasis on

maintenance of coal quality to

executives and staff engaged in the

activities of coal production and

dispatches.

20.1.9 Two flying squads with four members

each from Hqrs Q.C. Department have

been constituted to pay surprise visits

to problem Areas on receipt of

complaints regarding any coal quality-

related issue. The flying squads have

been empowered to issue spot memos

Mine Bonus Earned (Rs/Ton)

Durgapur OC 73.32

Bhattadi OC 149.11

Junad Extn OC 2.51

Adasa UG 30.48

Kolgaon OC 67.28

Year Quantity offered Quantity allocated Additional Revenue

(lakh tonnes) (lakh tonnes) generated

(Rs. in crs.)

2014-15 9.14 5.29 6.66

GCV required as perMahagenco’s Boiler parameters

4212 Kcal/Kg

GCV ActuallyDelivered

4796 Kcal/Kg

40


to the officials, if found to be negligent on

ensuring dispatch of coal as per grades/

quality declared.

20.1.10 Started conducting exclusive training

classes aimed at imparting required in-

house training and providing relevant

and updated information on coal quality

and allied matters to executives/ staff/

workers associated with coal

production, weighment and dispatch.

The inaugural classes were conducted

for two days from 29th Sept 2014 to 30th

Sept 2014. Apart from the exclusive

classes, topics on coal quality were also

included in the HRD Department’s

regular course modules. WCL is the first

subsidiary in CIL to have introduced

exclusive classes on coal quality.

20.2 WEIGHMENT OF COAL:

20.2.1 The total quantity of 41.35 million

Tonnes by all modes was dispatched

after weighment on Electronic

weighbridges at loading-points

20.2.2 The total dispatched quantity to power

sector by Rail mode including MGR was

21.68 million Tonnes, which was

dispatched after weighment on

Electronic Rail weighbridges at loading-

points.

20.2.3 Three nos. additional Electronic Road

weighbridges were installed and

commissioned at Shivpuri OC and

Semi Store of Pench Area and Gouri

Deep OC of Ballarpur Area.

20.2.4 All the Rail and Road weighbridges in

WCL have been duly verified, certified

and stamped by the statutory authority,

Legal & Metrology Department.

20.3 CRUSHING/SIZING OF COAL:

20.3.1 Total Installed crushing capacity for

sizing of coal to (-) 250 mm size from

the opencast mines is 46.20 million

Tonnes per annum, out of which 6.6

million te capacity available is for

sizing to (-) 100 mm. Further

installation of secondary crushers to

convert entire crushing capacity for

sizing (-) 100 mm had been

undertaken.

20.3.2 During the FY 2014-15 entire quantity

of coal (100%) dispatched to power

sector by Rail mode including MGR i.e.

21.69 Million te, was sized before

dispatch.

20.3.3 Action has already been taken for

installation of additional (-) 100 mmcrushing capacity equivalent to 29.14million tons. With this additionalinstallation, 100% requirement of (-) 100mm quantity to the power sector shallbe taken care of.

20.4 QUALITY COMPLAINTS ANDREDRESSAL

20.4.1 Proper complaint redressalmechanism is in place to address theconsumer complaints in a time- boundmanner. The details of the complaints

received and action taken is uploadedon WCL’s website.

20.4.2 During FY 14-15, total 58 Complaints

were raised by consumers regarding

receipt of lumpy coal, extraneous

material and wet/sticky coal. All the

complaints were registered,

investigated and corrective remedial

measures were taken and necessary

feedback was arranged to the

complainant(s).

20.4.3 Customer Satisfaction Survey :

During the FY 2014-15 customer (FSA

Holders) satisfaction survey was

undertaken by inviting feedback in the

proforma jointly worked out. The survey

was completed on 24.10.2014.

41


21. TELECOMMUNICATION

21.1 Existing TelecommunicationSystems

21.1.1 VOICE & DATA Communication

WCL (HQ) has an efficient voice and

data communication network of 64Kbps speed connecting WCL HQ withArea Hqrs. Stores through BSNLleased lines.

a) Surface Communication :

i) During 2014-15, 500 lines IPEPABX system at WCL HQ

has been installed andcommissioned.

ii) During 2014-15, a supply

order dt. 26.04.2014 forCCTV Video surveillancesystem for WCL HQ hasbeen placed, installed andcommissioned for CCTVsurveillance at WCL HQ.

iii) During 2014-15, a supplyorder dt. 08.09.2014 for IPEPABX system has been

placed, installed andcommissioned atMakardokda and Murparmines of Umrer Area andTawa I mine of PatherkheraArea for smooth surface

communication.

iv) During 2014-15, a supplyorder dt. 13.03.2015 for 6 nos

of small EPABX systemshas been placed, andinstallation and commission-ing is under progress for theoffice of Directors & CVO.

b) UG Communication :

i) During 2014-15, a Auto cumManual UG telephonesystem, installed andcommissioned at Tawa I UGmine of Patherkhera Area.

ii) During 2014-15, a supply

order dt. 30.03.2015 has

been placed for 2 nos of Auto

cum Manual UG telephone

system 1 no. for Murpar UG

mine of Umrer Area & 1 no.

for Chattarpur II UG mine of

Patherkhera Area to ensure

smooth UG communication.

22 COMPUTERISATION

Status of activities of systemdepartment planned for the year

2014-15 :

Sr.No1

2

3

4

5

6

Particulars of Activities

Implementation of Biometricattendance at All Areas andunits.

Implementation of deployment of acentral data base server connectedup-to Mine/Weighbridge level withMPLS/ VPN network (to be providedby E & T department) afterprocurement of the same

Implementation of PF andPension central Database afternetworking is established.

Implementation of four modules ofCoalNet Package afterprocurement of consolidatedservers , modification of thepackage to suit WCL requirementseither through outside agencies orin house and establishment ofnetworking up-to unit/weighbridgelevel.

Replacement and installation of485 personal computers.

Implementation of modifiedpayroll package interfacing withother application

Status

Implemented at HQ. Andwill be implemented in allAreas and Units by July 2015.

Tender has been floatedfor Centralized server andto be opened on 7.5.2015.

To be implemented afterestablishment of highspeed network up-to unitlevel by E&T dept forwhich tender has beenfloated and Price bid hasbeen opened.

Procurement of consolidatedServers : tender is to be openedon 07.05.2015Modification ofthe CoalNet package to suitWCL requirements. Tender hasbeen floated and opened on7.4.2015. TCR is beingp r e p a r e d . H o w e v e r ,modification of the package isbeing carried out in-house alsoand out of total 13 modules ofCoalNet , 2 modules (PIS &ADM) have been implementedat HQ. Payroll and S&M are ontrial run. MMS & FAS will beimplemented soon beforeOct’15).

Administrative approvalfor procurement ofPersonal Computersthrough DGS&D ratecontract is under process.

Trial run of modifiedPayroll is going on.

42


23. ROLE PLAYED BY WCL INDEVELOPMENT AND SUSTAININGSMALL SCALE INDUSTRIAL UNITS

23.1 WCL, a key Public Sector company inthis region, is making all efforts indevelopment of Small Scale Industrialunits in Vidarbha Region. WCL hasfully implemented MSE Policypromulgated on 23rd March, 2012by Ministry of MSME. All the benefitsas per MSME Policy are also availableto Stores and Spares required in WCLin various National Level and StateLevel Vendor Development Programsarranged by MSME Development

Institute, Nagpur.

24 MANAGEMENT OF INVENTORIES

24.1 WCL has maintained its position as thetop (amongst CIL subsidiaries) inrespect of Inventory Management.Online MMS has been introduced inWCL and all the functional activities arebeing done through OL-MMS.

24.2 Comparative position of net inventoryvis-à-vis annual consumption of storesand spares in respect of last threeyears is as under

:

Note : Although, there is an increase in the prices of stores

and spares by approx 5%, the increase in inventory

is marginal i.e. 1.86% in absolute value. Inventory

during month’s consumption has remained practically

same.

24.3 To have better control over inventoryand consumption, 47 charged off storeshave been computerized.

24.4 LONG TERM AGREEMENT :

Indian Oil Corporation Ltd., has enteredinto a Long Term Agreement (LTA) withWestern Coalfields Ltd., on 22-10-2014

for supply of Diesel for 3 years which

is further extendable for 2 years with

due approval of WCL Board.

This agreement gives a win-win

opportunity to both the organizations.

IOCL has got assured market of nearly

Rs.1500 Crores for the next three years

and WCL has got assured and

dependable supply source of Diesel

and with maximum benefit of approx.

Rs.438/- per KL, against previous

discount of Rs.50/- per KL. Net savings

in three years agreement period will be

Rs.9.33 Crores.

On similar lines, Hindustan Petroleum

Corporation Ltd., has entered into a

Long Term Agreement (LTA) with

Western Coalfields Ltd., for supply of

Diesel for 3 years which is further

extendable for 2 years with due

approval of WCL Board. Net savings

in three years agreement period will be

Rs.1.18 Crores.

24.5 SPECIAL AGREEMENT :

24.5.1 WCL has entered into a MoU with M/s

SAIL for supply of various types of Iron

and Steel materials w.e.f. 01- 04-2014.

The validity of MoU was up to 31-03-

2015 for off take value of Rs.51.75

crores for an approximate quantity of

11000 M.T. WCL is first amongst CIL

subsidiaries to have such an

agreement for smooth supply of Iron

and Steel materials.

24.6 e-PROCUREMENT :

24.6.1 WCL has introduced e-tendering with

e-price bid with effect from September,

2009. During the F.Y. 2014-15, all the

cases of material procurement in

respect of both Head Quarter and Area

Purchase with threshold limit of more

than Rs.2.00 Lakhs in each case were

finalized through e-tendering mode.

(Fig. Rs. in Lakhs)

Sr. No. Financial Net Annual Inventory in % age

Year Inventory Consumption terms of change inmonths inventory

consumption

1 2012-13 7467.17 99824.00 0.93 -10.37%

2 2013-14 7195.00 114382.00 0.75 - 3.64%

3 2014-15 7328.54 114552.00 0.77 +1.86%

43


During the current year, total 1551 nos.of e-tenders have been floated withestimated amount of Rs.1173 Crore.CIL concluded a contract with NationalInformatics Centre, New Delhi forproviding e-tendering services to CILand its subsidiaries.

24.7 MODEL DEPOT AGREEMENT :

24.7.1 Being the lead company nominated by

Coal India Limited, WCL has finalized

the Model Depot Agreement with M/s

Bharat Power Corporation Limited for

supply of transmission spares.

24.8 DISPOSAL :

24.8.124.8.124.8.124.8.124.8.1 WCL has achieved the target fordisposal of scrap and unserviceableitems during the year 2014-15. Year-wise disposal value is as below :

(Rs. in Lakhs)

25.125 .125 .125 .125 .1 Manpower Manpower Manpower Manpower Manpower

25.1.125.1.125.1.125.1.125.1.1 The Company’s manpower as on31.03.2015 as compared that on31.03.2014 is furnished below :

25.2 HUMAN RESOURCE EVELOPMENT

(HRD), WCL - 2014-15

25.2.1. During the financial year 2014- 15 WCL

achieved a total of 193242 Training

mandays through Internal and External

training initiatives for Executives,

Supervisors and Workers. Percentage

of Training Plan was 133% against

YYYYYearearearearear

2 0 1 1 - 1 2

2 0 1 2 - 1 3

2 0 1 3 - 1 4

2 0 1 4 - 1 5

TTTTTarararararggggget fet fet fet fet for Saleor Saleor Saleor Saleor Sale

830

960

1 0 0 0

2 0 0 0

Sale Sale Sale Sale Sale VVVVValuealuealuealuealue

1 1 9 3

952

1 7 2 5

2 4 0 0

R e a l i z a t i o nR e a l i z a t i o nR e a l i z a t i o nR e a l i z a t i o nR e a l i z a t i o n

1 0 8 6

869

1 6 5 6

1 8 7 0

Planned Training Mandays 145489.

Expenditure incurred towards training

during financial year 2014-15 is Rs 16.09

Crore.

25.2.2 IN-COMPANY TRAINING :

In-Company training plays a vital role

in improving knowledge, skill and

attitude leading to overall development

of Human Resources. Four Institutes

viz. Management Development

Institute (MDI)-Nagpur, Supervisory

Training Institute (STI)-,Chhindwara,

Workers Training Institute (WTI) -

Wardha and HEMM Training Institute

(HEMMTI)- Durgapur and 12

Vocational Training Centres impart

functional, cross-functional and other

training courses for the executives,

supervisors and workers. In addition,

the executives are also imparted

specialized contextual training at Indian

Institute of Coal Management, Ranchi.

A) 188282 training mandays of

executives, supervisors and workers in

the 04 Institutes and 12 Vocational

Training Centres have been achieved

during 2014-15 as tabulated below:

In CompanyTraining Mandays

VTCs andInsittutes1 8 8 2 8 2

I I C M

1 2 5 3

Institution Basedand Seminars

3 5 9 4

Fore ignTra in ing

1 1 3

Tota l

1 9 3 2 4 2

Out Company Training Mandays

Sl..Sl..Sl..Sl..Sl.. CategoryCategoryCategoryCategoryCategory Manpower as on Manpower as on Manpower as on Manpower as on Manpower as on

No.No.No.No.No. 31.03.201431.03.201431.03.201431.03.201431.03.2014 31.03.201531.03.201531.03.201531.03.201531.03.2015

1 Executive ` 2693 2 6 3 1

2 Supervisor 5 2 2 7 4 9 2 1

3 Clerical 2 8 1 6 2 6 7 5

4 Highly Skilled / Skilled 26126 24772

5 Semi-skilled / Unskilled 15135 14586

6 Company’s Trainee 487 486

T O T A LT O T A LT O T A LT O T A LT O T A L 5248452484524845248452484 5007150071500715007150071INSTITUTESINSTITUTESINSTITUTESINSTITUTESINSTITUTES

MDI, NAGPUR

WTI, WARDHA

STI, CHHINDWARA

HEMM TI,

D U R G A P U R

AREA BASED

T R A I N I N G

INITIAL TRAINING

R E F R E S H E R

T R A I N I N G

SPECIAL TRAINING

TTTTT OOOOO TTTTT A LA LA LA LA L

EXEEXEEXEEXEEXE

2 2 6 1

-

-

1 0 3

8 3 4

-

-

-

3 1 9 83 1 9 83 1 9 83 1 9 83 1 9 8

SUPSUPSUPSUPSUP

1 8 0

1 3 8

4 1 3

9 2

5 3 2

-

-

-

1 3 5 51 3 5 51 3 5 51 3 5 51 3 5 5

TOTALTOTALTOTALTOTALTOTAL

6 1 8 1

3 6 0 4 0

8 0 1 2

2 7 6 9

1 3 3 1 4

3 8 8 2 8

7 9 4 8 3

3 6 5 5

1 8 8 2 8 21 8 8 2 8 21 8 8 2 8 21 8 8 2 8 21 8 8 2 8 2

WORWORWORWORWOR

4 0 8

3 3 3

7 8 7

6 2 3

4 7 1 5

8 8 7

7 3 8 6

1 4 8 8

1 6 6 2 71 6 6 2 71 6 6 2 71 6 6 2 71 6 6 2 7

TOTALTOTALTOTALTOTALTOTAL

2 8 4 9

4 7 1

1 2 0 0

8 1 8

6 0 8 1

8 8 7

7 3 8 6

1 4 8 8

2 1 1 8 02 1 1 8 02 1 1 8 02 1 1 8 02 1 1 8 0

44


B) NUMBER OF PERSONS TRAINED AT

IICM, RANCHI

25.2.3 OUT-COMPANY TRAINING :

Human Resource Development

Department acts as nodal department

to arrange and provide Out- Company

training to the employees to expose

them to the Global and Sectoral

industrial environment through

participation in various seminars,

Conferences, institution based training

in the educational institutes and Original

Equipment Manufacturers facilities.

a) Within Country

During FY 2014-15, the employees have

been nominated to attend training

programmes organised by various

Educational Institutes such as Indian

School of Mines University (ISMU),

Dhanbad , Indian Institutes of

Technology (IIT), National Institutes of

Technology(NIT), Banaras Hindu

University, Varanasi, C-Dac Pune and

various organisations such as Indian

Institute of Industrial Engineering (IIIE)

Mumbai, Institute of Public Enterprise,

Hyderabad, Administrative Staff

College of India, Hyderabad, Indian

Institute of Materials Management

(IIMM), National Productivity Council

(NPC), MGMI , National Institute of

Personnel Management (NIPM) ,

Gandhi Labour Foundation Puri etc and

Manufacturers (OEM) such as BEML,

L&T etc. In order to improve the

efficiency and productivity of

supervisors and workers by sharpening

their managerial , technical and

functional skills, they have been

nominated to Gandhi Labour

Foundation(GLF), Puri.

The breakup of executives, supervisorsand workers sent for Out-companytraining is as given below :

b) Foreign Training :

Apart from various types of Out-company training in India, employeesare also sent abroad for different typesof study tours, trainings, development

courses, inter-national Exhibitions/Expo etc.

25.2.4 SAFETY TRAINING :

Under VT Rules, various trainings suchas Initial, Refresher and Specialtrainings are imparted to the workersworking in mines. This purpose isfulfilled by 12 VTCs located in differentAreas of WCL. Additionally,Contractors' workers, who play animportant role in today's scenario, arealso imparted Initial and Refreshertraining in our VTCs. As perrecommendation of 8th / 9th Safety

Conference, the supervisors are

provided Safety training in the

respective Institutes. The break-up

of various types of safety training

imparted during 2014-15 is tabulated

below :

EXE SUP WOR TOTAL Trg. Mandays

IICM RANCHI 256 - - 256 1253E X EE X EE X EE X EE X E S U PS U PS U PS U PS U P W O RW O RW O RW O RW O R TTTTTOOOOOTTTTTA LA LA LA LA LTTTTTrrrrrg.g.g.g.g. Manda Manda Manda Manda Mandaysysysysys

Out-CompanOut-CompanOut-CompanOut-CompanOut-Company y y y y TTTTTrainingrainingrainingrainingraining

(including GLF, Puri) 7 3 2 6 8 5 8 8 5 8 3 5 9 4

EXE SUP WOR TOTAL Trg. Mandays

IICM RANCHI 10 - - 10 113

TYPE OF TRAINING TYPE OF TRAINING TYPE OF TRAINING TYPE OF TRAINING TYPE OF TRAINING NO. OF WORKERS /NO. OF WORKERS /NO. OF WORKERS /NO. OF WORKERS /NO. OF WORKERS /SUPERSUPERSUPERSUPERSUPERVISORS VISORS VISORS VISORS VISORS TRAINEDTRAINEDTRAINEDTRAINEDTRAINED

1. INITIAL TRAINING 887

2. REFRESHER TRG 7386

3. SPECIAL TRG 1488

4. AREA BASED TRAINING 6081

5. CONTRACTORS’ WORKERS TRG

a) Initial training 3006

b) Refresher training 309

c) Area based trg 723

6. TRG. FOR SUPERVISORS

(as per 8th / 9th Safety Conf.)

a) Mining 227

b) E&M 108

c) Excv 3 3

S.S.S.S.S.No.No.No.No.No.

45


25.2.5 TRAINING UNDER APPRENICE ACT :

This year, 592 apprentices were

engaged in various trades such as Fitter,

Electrician, Materials Handling

Equipment Operator-cum- Mechanic

(MHEO), Mining (Trainee) etc against the

quota of 404.

25.2.6. TRAINING OF SC / ST / OBCS :

Training for upliftment of SC/ST/ OBCs

has been an important thrust area for

the company.

SC / ST / OBC Training (In-company &

Out-company) :-

SC - 2928

ST - 1572

OBC - 4702

25.2.7.During FY 2014-15, training of

employees in different Skill

Improvement courses was the thrust

area and accordingly initiatives were

taken as below :-

i) 79 Executives of WCL have

par ticipated in the training

programme "CERTIFIED

TRAINING IN PROJECT

MANAGEMENT" organized at

following Institutes :

a) Advance Computing Training

School, C-DAC, Pune

b) Indian Institute of Coal

Management, Ranchi

ii) 25 Executives of WCL have

participated in the Course on

"CERTIFIED TRAINING IN

CONTRACT MANAGEMENT"

organised at Indian Institute of

Coal Management, Ranchi.

iii) Training programmes / Workshop

on subject - "Formal training in

Environment, Forest Management

and Land Acquisition" were

organised at Management

Development Institute, Nagpur

during the financial year 2014-15

in which 29 Executives have

participated.

iv) 07 Executives from the companyhad participated in the on "Formaltraining in Risk Management”organized by Indian Institute ofCoal Management, Ranchi.

v) Training of “Mine Managers or

other Executives to make them

aware of conditions stipulated in

Environmental Clearance” was

organised at Management

Development Institute, Nagpur, in

which 23 Executives of WCL had

participated.

vi) For Developing Critical mass of

Leaders, a training programme

“Leadership Development

Programme” has been designed

and successfully organised at

Management Development

Institute, Nagpur & Indian Institute

of Coal Management, Ranchi.

Total 236 Executives of WCL were

trained during the year 2014-15.

During the financial year 2014-15, WCL

achieved a total of 193242 Training

Mandays through Internal and External

Training initiatives to Executives,

Supervisors and Workers, against

Target Mandays - 145489. Total

Number of persons trained is 22304

AWARDS :

Western Coalfields Limited was

bestowed with the award of “Best

Innovative Practices in Human

Resource” under the head of “Building

a Great Place to work with Powerful

Results” during Asia Pacific HRM

congress 2014 on 11-12 Sept 2014 at

Bengaluru.

46


26. SCHEDULED CASTES AND

SCHEDULED TRIBES/OBC.

26.1 As on 31/03/2015, the details of

number of employees including the

number of SC/ST/OBC is furnished

below .

26.2 The Presidential directives of SC/ ST

and OBCs are being implemented in

respect of recruitment as well as in

promotion.

27. WORKERS' PARTICIPATION IN

MANAGEMENT :

27.1 The Steering Committee at Company

level comprising of CMD and all

Functional Directors and Trade Union

representatives of five central trade

unions viz. INTUC, BMS, AITUC,

HMS, CITU and representatives of

CMOAI and GM(P&IR) is functioning

smoothly.

The broad functional areas of the

Steering Committee include:

i) Formulation and evaluation of

Action plans/budgets;

ii) Resources utilization:

iii) Cost/profitability:

iv) Quality of coal:

v) Safety:

vi) Employees' welfare and

vii) Environmental protection

27.2 The periodical meetings of the Steering

Committee were held regularly which

not only helped in inducing cordial

industrial relations but also in achieving

organizational goal.

Total No. of employees SC ST OBC

as on 31/03/2015

5 0 0 7 1 1 0 1 8 8 3 8 9 6 1 4 0 2 1

27.3 Employment to dependants :

During 2014-15, under the provision of

NCWA, employment to 692

dependents of employees and

monetary compensation to 59 was

sanctioned. Further employment to 26

dependents under Special Female

Voluntary Retirement Scheme was

also sanctioned for posting at CMPDIL.

28. INDUSTRIAL RELATIONS :

28.1 Industrial Relations scenario in WCL

during the fiscal 2014-15 harmonious.

28.2 Status of Industrial Relations during

the FY 2013-14 and 2014-15 is given

as below :-

28.3 Recruitment during FY 2014-2015

:

i) Job provided to land oustee- 665

ii) Mining Sirdar - 02

iii) Surveyor Mining - 04

Notified for recruitment of following posts :

a) Mining Sirdar - 438

b) Mine Surveyor - 27

28.4 Promotions during 2014-15

As part of career care of employees,

2452 non-executive employees of

various disciplines were given

promotions.

Law & order incidents 2013-2014 2014-2015

Relay Hunger Strike Nil Nil

Gherao Nil Nil

Assault Nil Nil

Dharna/Morcha/Demonstration 01 02

Total 1 2

Strike/Work Stoppage

No. of strikes 01 1

Mandays lost 2493 53716

Production loss (Te.) 9700 263900

47


28.5 Grievance Redressal:

In order to redress the grievances of

employees in WCL, a well-defined

system is in vogue:

i) During the year 457 grievances

were received out of which 419

were redressed i.e. 91.6 %.

ii) During 2014-15 total 253

structured meetings were held with

the employees representatives of

Central Trade Unions at operating

areas and Head Quarter.

29. WELFARE MEASURES AND

SOCIAL AMENITIES :

29.1 Group Gratuity Scheme :

29.1.1 WCL adopted LIC's Group Gratuity

Scheme as a part of its sound financial

management system for providing

gratuity liability every year and claiming

the tax benefit. Unique feature of the

scheme is to ensure notional gratuity

in the event of premature death.

The Group Gratuity Scheme is in

vogue with effect from 10th

March,2003. The actuarial liability as on

31/03/2015 is Rs 2247.25 crores and

unpaid liability will be paid to Life

Insurance Corporation of India. The

trust had earned an interest amounting

to Rs. 197.00 crores @ 9.52% under

existing scheme for old members and

Rs. 1.42 crores @ 9.25% under revised

scheme as per IRDA for new members

in the year 2014-15.

29.1.2 Payment of Gratuity :

An amount of Rs 252.92 Crs was paid

to 2769 superannuated/separated

employees and an amount of Rs 7.04

Crs Life cover in addition to Rs 23.49

Crs Gratuity was paid to the nominees

of deceased employees during the

financial year 2014-15.

29.2 WELFARE AMENITIES:

29.2.1 Following are the details of various

amenities for the welfare of our employee:

29.3 Family Welfare:

29.3.1 During 2014-15 under Family Welfare

Programmes, total beneficiaries were

3588 (TT+VT) out of which 36 camps

with 1211 beneficiaries were organised

in collaboration with State Health

Authorities.

30. GAMES & SPORTS

Company has secured 1st position in

Table Tennis, Kabaddi and Body Building

and 2nd position in Carom and

Badminton in last CIL Inter Company

Tournament.

31. Brief outline of the company's CSR

policy:

31.1 While implementing CSR activities,

WCL follows the CSR policy framed

by CIL reference no. CIL/CSR/2014/

1082 dated 13.06.2014 incorporating

the features of Companies Act 2013

and the notifications issued by the

Ministry of Corporate Affairs,

Government of India on 27.02.2014 as

well as Department of Public

Enterprises (DPE) guidelines.

The main objective of CSR policy is tomake CSR a key business process forsustainable development for the

Sl.No.Sl.No.Sl.No.Sl.No.Sl.No. Detai lsDetai lsDetai lsDetai lsDetai ls As on 31.03.As on 31.03.As on 31.03.As on 31.03.As on 31.03.1515151515

1 (i) Houses- Standard - 42527(ii) Non-Standard - 10086 5 2 6 1 3

2 Water Supply (Population covered) 3 ,23 ,8553 Schools (receiving recurring, non

recurring grants or infrastructural facilities) 1 54 Co-operative Stores 2 4

5 Co-operative Societies 4 56 Bank Branches/ Extension Counters 1 1 3

7 Ambulances 1 1 18 Dispensaries 5 4

9 Hospitals 1 11 0 Canteens 7 9

1 1 Gymnasiums 2 71 2 Stadium 1 3

48


Caring - Providing Medical facilities to the nearby villagers in command Areas of WCL

through Mobile Medical Van.

Society. It aims at supplementing the

role of the Government in enhancing

welfare measures of the society based

on the immediate and long term social

and environmental consequences of

their activities.

The primary beneficiaries of CSR in

CIL and its subsidiaries are land

oustees, Project affected persons

(PAP's) and those staying within the

radius of 25 kms of the project areas.

Poor and needy section of the society

living in different parts of India are the

secondary beneficiaries.

The CSR action plan is prepared in

Consultation with the District

Authorities/ Govt. Official/ Village

Panchayat/ Sarpanch/ Gram Sevak.

CSR activities are carried out in the

arena of Education, Water supply,

Health care, Environment, Social

Empowerment, Skill Development,

Infrastructure support, Village

electricity/solar lights, Sports and

Culture, Grant/donation/ Financial

assistance, Empowerment to women,

Relief to victims of natural Calamities,

Disaster management activities to

bring meaningful & sustainable

changes in the living standards of

villagers.

CIL's CSR Policy is available in thecompany's website: westerncoal.nic.in

31.2 Overview of projects or programsproposed to be undertaken

31.2.1 Vision of CSR activities for next fiveyears i.e. 2015 2020

31.2.2 The composition of the CSRCommittee

CSR & Sustainable development

committee at company level was

49


Promoting Sport - A Hockey Match in Progress

constituted on 05.01.2012 consisting

of the following:

Independent director – Chairman

Director (Personnel) – Member

Director (T/P&P) – Member

During the financial year 2014-2015

there was no Independent Director on

the Board of Western Coalfields

Limited.

In Western Coalfields limited there is

a CSR Cell at HQ level headed by

General Manager (CSR) and a CSR

committee of company having

representative of Finance, Civil,

Environment, CSR and Medical

discipline and also Area level CSR

committee headed by Area General

Manager having representative of

Personnel, Finance, Civil, Environ-

ment and Medical discipline was

functional during the year 2014-15.

31.2.3 Average net profit of the company

for last three financial years.

Average net profit of the company for

the last three financial years (i.e. 2011-

12, 2012-13 & 2013-14) is Rs.

3,98,40,16,793.19 (Rs. 398.40

Crores). Details are given below :

31.2.4 As per the provision of The

Companies Act, 2013, Company is

required to spend 2% of the average

S.N Year/Particulars Net profit( Rupees in crores)

a 2 0 1 1 - 1 2 4 4 0 . 4 9

b 2 0 1 2 - 1 3 4 2 8 . 8 7

c 2 0 1 3 - 1 4 3 2 5 . 8 6

d Total (a +b +c) 1 1 9 5 . 2 2

e Average Net Profit (d)/3 3 9 8 . 4 1

50


of last three years' net profit which is

Rs.796.80 lakhs. However, your

Company has spent Rs.2014.83 lakhs

during the period which is Rs.1218.03

lakhs more than the prescribed

requirement.

31.2.5 Details of CSR amount spent during

the financial year.

i) Total amount to be spent for the

financial year-Rs.796.80 Lakhs

ii) Total amount spent for the

financial year-Rs.2014.83 Lakhs

iii) Amount unspent, if any

- Not applicable.

iv) Manner in which the amount spent

during the financial year is detailed

below :

(Figures in Rs. Lakhs)

Promoting Sport - A Hockey Match in Progress

51


31.2.6 In case the company has failed to

spend the two percent of the average

net profit of the last three financial years

or any part thereof, the company shall

provide the reasons for not spending

the amount in its Board report -

Not applicable.

31.2.7 A responsibility statement of the CSR

Committee that the implementation and

monitoring of CSR Policy, is in

compliance with CSR objectives and

Policy of the company.

Implementation & monitoring of CSR

Policy in WCL is in compliance with

CSR objectives and policy of company.

31.2.8 With a view to encourage unemployed

rural youth for self- employment, 100

youth residing nearby villages of

Chandrapur and Ballalrpur Areas of

Company were trained in Welding and

Fabrication through an external agency

namely Maharashtra Centre for

Entrepreneurship Development' a Govt.

of Maharashtra organization.

31.2.9 In order to strengthen the infrastructure

of nearby villages 9.29 kms of road

was constructed during the FY 2014-15

32. PENSION

32.1 Processing and sanction of Pension

cases :

WCL is torch bearer and trail blazer in

CIL for implementing the provision of

CMPS 1998. All 4197 Pension claims

received during the year 2014-15 were

settled.

32.1.1 Up to 31st March 2015, ( Since

inception of the scheme) total 55337

claims were received, out of which

55297 claims were settled by CMPF

Office Nagpur Region & Chhindwara

Region. 40 balance claims were under

process.

A Step Forward - Members of Jhankar Mahila Mandal of WCL at a Medical Camp jointly

organized with ‘Help Age India’ at Manewada, Nagpur.

52


32.2 Computerization of processing

Pension & PF Claims:

The processing of Pension/PF claims

has been completely computerized and

the database is maintained for future

reference in respect of all the claims.

The individual data sheet is provided to

all the Pensioners.

32.3 Settlement of Pension/PF in the

month of Superannuation under

“Mission Biswas”

The status of settlement of PF/ Pension

claims under MISSION- BISWAS

during the year 2014-15 is as under :

32.4 Pension Help Line :

Pension help line is in operation forsolving the problem being faced by thePensioners, and dedicated efforts arebeing made to sort out the issue, if any.During the financial year 2014-2015total 334 calls including grievances inwriting were received, out of which 327cases were cleared and feedbackabout the action taken was given.CMPF-Office at Nagpur, at Chhindwaraand concerned Nationalized Bankswere persuaded for expeditiousdisposal of balance cases.

32.5 Submission of Annual VV Statement forthe year 2013-14 and for the year 2014-15. WCL had always given priority intimely submission of “VV” statements.“VV” Statements for the currency periodending 3/2014 in respect of all the Units/Areas under Regional CommissionerCMPF Nagpur & Chhindwara, havebeen submitted within the scheduledtime. Further, “VV” statements for theperiod from April 2014 to January 2015were also submitted within scheduledtime.

33 PROGRESSIVE USE OF HINDI 2014-

15 :

In accordance with official Language

policy of Government of India following

efforts were made during 2014-15 for

popularising the use of Hindi in official

working and progressive use of Hindi

in the company.

33.1 During the Year 2014-15, three

numbers of Rajbhasha Workshops

were organised, in which, 151 officer/

employees participated. The

participants were acquainted with

Official Languages Act and Rules,

Rajbhasha targets and practiced Hindi

noting, drafting and Hindi

correspondence.

33.2 Meetings of Official Language

Implementation Committee were held

regularly in each quarter to review Hindi

progress and steps taken to achieve

Rajbhasha targets. Total 12 Nos. of

meetings were held during the year

2014-15, Eight offices of WCL were

inspected to review compliance of

Official Languge Act and Rules.

33.3 In order to popularize the use of Hindi

words substituting English Words in

day to day official works, “Aaj ke shabd”

were displayed near entrance of the

Headquarter office building and at Area

Offices regularly.

33.4 During the financial year, 4 issues of

bi-lingual In-house magazine “Pragati”

and 25 issues of Hindi fortnightly “Wall

poster“ were published, highlighting the

activities and performance of WCL.

33.5 Celebration of 'Hindi Diwas' on 14th

September 2014 in the Company, was

followed by a week long observation of

Rajbhasha Saptah during 15th to 20th

September. On this occasion various

events of competition such as, self

created Poetry, general knowledge,

cross word, for Non-Hindi employees,

No. of Employees

superannuated from

April 2014 to March 2015

A

2489

No. of claims submitted

to CMPF – O, out of A.

B

2481

Balance

C

08

53


Antaaxary and “Prashna Manch” were

organised for furthering the use of Hindi.

Winners of these competitions, were

felicitated and Prizes were given away.

Outstanding performers amongst the

Areas and Hq. Departments in the

promotion of Hindi were awarded with

“Raajbhasha Shield/Cup.

33.6 At present 6768 Hindi Books on various

subjects are available in Dinker Hindi

Library for use of employees. Besides

this, 5 Hindi monthly magazines were

also made available.

33.7 3 issues of E- Magazine “Rajbhasha

Vividha“ was uploaded on WCL

Website for encouraging upcoming

Writers .

33.8 AWARDS

During All India Rajbhasha Seminar at

Khajuraho from 29.10.2014 to

31.10.2014 organized by 'Rajbhasha

Vikas Sansthan', Dehradun following

awards were conferred to

i) Sri Rupak Dayal, Director

(Personnel) WCL - “Rajbhasha

Keerti Samman“ Shri Chetan

Yadav, Manager (Secty./

Rajbhasha) - “Vishesh Rajbhasha

Vishishta Samman“

ii) Shri Hardal Singh, Sr. officer

(Secty./Rajbhasha)- “Rajbhasha

Shilpi Samman”.

34. ENVIRONMENT AND ECOLOGY:

34.1 Your Company is aware of its

responsibilities towards the environment

and ecology aspects of project

management and is taking due care for

Environmental Protection and Pollution

mitigative measures in all operating

mines. Status of the different activities

under environment management as on

31-03-2015 is as under:

34.1.1 Environmental Impact Assessment

(EIA)/Environmental Management

Plans (EMPs) for new Projects/ Existing

Projects – Status of Environmental

Clearance:

The company has received

Environmental Clearance for 7(seven)

projects/mines namely Harradol UG (

0.135 MTPA ), Ghonsa OC Expn. ( 0.60

MTPA ), Shivani OC ( 1.4375 MTPA ),

Pauni OC Expn. ( 0.90 MTPA ),

Ballarpur OC Expn. ( 0.625 MTPA ),

Gouri Deep OC Expn. ( 0.60

MTPA),Bhatadih OC Expn. ( 0.975

MTPA ) during the year 2014-15 as per

EIA Notification, 2006.

In view of envisaged enhancement of

production during the year from Pauni

OC, pending proposal of environmental

clearance was pursued on priority and

secured the same. With the relaxation

of CEPI pending application of Ballarpur

OC was considered and EC was

granted by MoEF. Fur ther, for

augmenting production EC capacity

expansion in respect of Bhatadih OC

and Gouri Deep OC Expn,was taken up

in the midst of FY 2014-15 on fast track

and obtained their ECs. Formal ECs

were also received during the year for

new Projects, Shivani OC and Harradol

UG as they were pending with MoEF/

SEIAA since long.

34.1.2 Terms of Reference (TOR)

The company has received Terms of

Reference (TOR) of Four (4) Projects

viz. Hindustan Lalpeth OC Expn. (1.25

MTPA ), Chinchala Chikalgaon OC

(3.90 MTPA), Mungoli Nirguda

Extension Deep OC ( 3.90 MTPA ) &

Nandan–II UG Extn.(In Dhau North

Block)( 0.405 MTPA ) as per EIA

Notification, 2006 during the year 2014-

15 from Ministry of Environment &

Forests, Govt. of India.

54


34.1.3 Implementation of EMPs approvedby MOEF

The projects having EMPs approved

by MOEF are implemented and thereports on compliance of MOEFstipulations as given in the respectiveEnvironmental Clearances (ECs) aresubmitted every six months to IADivision, MOEF, New – Delhi and

Regional Office, Western Region,Bhopal. Certificates of EC complianceobtained from Regional Office,MoEF&CC, Bhopal in respect of PauniOC, Ballarpur OC, Gouri Deep OC &Bhatadi OC.

34.2 Afforestation

34.2.1 In compliance of environmentalclearance conditions under MoU,20000 saplings of Bamboo alongtransport roads in mines areas and27500 of other local multi species have

been planted in FY 2014-15 in theadjoining mining areas through StateForest Development Corporations.

34.2.2 The plantation work was executed byState Expert Agencies viz; ForestDevelopment Corporation of

Maharashtra Limited and MadhyaPradesh Rajya Van Vikas NigamLimited. 182.69 lakh saplings havebeen planted upto 31.03.2015,covering an area of 6621.20 Ha in itscommand area in the state of

Maharashtra and Madhya Pradesh.

34.2.3 During FY 2014-15 plantation over 125Ha of degraded forest land inChandrapur (100 Ha) & Yavatmal (25Ha) districts was undertaken throughForest Development Corporation of

Maharashtra Limited as a part of CSRactivities for securing “Green Credits”.

34.3 Other Environmental MitigationMeasures completed in 2014-15

34.3.1 Land Reclamation Monitoring through

Remote Sensing Technique

34.3.1.1 Progress of afforestation in the below

mentioned 10 major OCPs producing

more than 5 million cubic meter

(Coal+OB) is monitored regularly by

CMPDIL on yearly basis, through

Satellite Imagery which indicates that

the increase in green cover area by

11.26 Sq.Kms during the years 2008-

2014.

i) Sasti OC

ii) Durgapur OC

iii) Padmapur OC

iv) Niljai OC

v) Mungoli OC

vi) New – Majri OC

vii) Umrer OC

viii) Ukni OC

ix) Pimpalgaon OC

x) Ghughus OC

34.3.2 Conservation of Natural resource

34.3.2.1Company is concerned with

conservation of water resources. To

improve water availability and increase

the level of ground water, two number

of Rainwater Harvesting Schemes

were implemented in FY 14-15 one

each in Chandrapur and Umrer Areas.

34.3.2.2 Quality of effluent is an important

parameter of natural resource like

water, an initiative in this regard was

taken by implementing two Nos. of

Recycling Projects at Gondegaon OC,

Nagpur Area and Central Workshop –

Tadali, for industrial waste water.

34.3.3 Initiative towards non- conventional

source of energy – LOA for two number

of schemes for generation of 140 KWp

(80 KWp in Nagpur Area + 60 KWp in

Ballarpur Area) of solar energy was

issued.

55


34.4 Environmental Awareness

34.4.1 Environment Week (June 1 – 7, 2014)

and World Environment Day on 5th

June, 2014 were observed in your

Company at HQ, Area Levels and

Project Levels.

34.4.2 The activities undertaken during the

week – long celebration were as

follows:-

i) Pledge on Environment Protection

as per UN- theme” Small Islands

and Climate Change” taken by all

employees both at Corporate (HQ)

and at all areas. ii)

Organizing various competitions

among wards of employees viz.

Drawing, Slogan etc

iii) Plantation & distribution of plants

iv) Awareness on environment.

35. VIGILANCE

35.1 Preventive Vigilance :

31.1.1 In order to increase transparency in

dealing with public matters, online

complaint handling system has been

introduced. Now complaint can be

made online from any place and the

complaint is also being processed

online. It has three users interface where

a complainant and top most officials of

the company can directly look into the

complaint. The complaint rests with the

dealing officer till the report is submitted

to CVO. All tenders irrespective of its

value are being uploaded on the

company's website. This year one

souvenir consisting of various articles

related to Vigilance Awareness and list

of circulars issued by CVC, DOPT, CIL

& WCL have been compiled &

published and distributed for the benefit

of officers dealing with similar tasks. 24

Protecting Environment - Tree Plantation on the overburden at one of the Opencast Mine of WCL.

56


surprise inspections were conducted by

Vigilance Department. Circulars have

been issued in the initiative of Vigilance

Department to improve upon the

system of Tender procedure.

35.1.2 For improvement of procurement of

bearing by Tendering through proven

sources.

35.1.3 For improvement in the procedure for

delivery of coal against the Delivery

Orders. Stake holders'/Customers meet

was organized in all the Areas of WCL

, Total Meet held were 9.

35.2 Punitive Vigilance :

35.2.1 As punitive vigilance 45 investigations

were taken up out of which 44 have

been disposed of. The vigilance

activities have resulted into a total 10

cases(30 employees) of Regular

Departmental Action (RDA) excluding

the opening balance of 21 cases (72

employees) of Regular Departmental

Actions. Inquiry reports have been

submitted in 3 cases(6 employees)into

12 cases(28 employees) have been

imposed major penalty and 06 case (09

employees) of minor penalty have

been imposed and 06 cases(19

officers) have been issued censure or

warned/ cautioned.

35.3 Other activities like observance of

Vigilance Awareness Week,

Preparation of “Agreed List” and

“Officer of Doubtful Integrity list” and

rotation of employees on sensitive

posts have been carried out. Close

liaison with Central Bureau of

Investigation(CBI)and Central

Vigilance Commission(CVC) have

been maintained. In addition, 13103

numbers of vigilance clearance to

Executives and Non- executives were

issued. 9 Workshop/Training

Programmes on Vigilance Awareness

& Personality Development and 4

workshops for IAs and POs were

organized in which 634 and 240

executives participated respectively.

One day workshop on Financial

Management, Check and Balances

was also organized for executives of

Finance discipline in which 57

executives participated.

36. DIRECTORS :

36.1 The following persons continued to be

the Directors of your Company during

the year under report :

1 Shri R. Mohan Das, Director

2 Shri Rupak Dayal, Director

(Personnel)

3 Shri S.S. Malhi, Director (Technical)

P&P

36.2 Shri D.C. Garg, Chairman-cum- ManagingDirector (CMD) ceased to be CMD ofyour Company w.e.f. 18/06/2014 duringthe year under report.

36.3 Shri Om Prakash, Director (Technical)OP with Additional Charge of CMD(w.e.f. 05/07/2014), ceased to beDirector of your company w.e.f. 09/10/2014 during the year under report.

36.4 Dr. M.R. Anand, Director, ceased tobe Director of your Company w.e.f.27.3.2015 during the year under report.

36.5 Shri R.R. Mishra joined your Companyas Chairman-cum- Managing Directorw.e.f. 11/10/ 2014 during the year underreport.

36.6 Shri B.K. Mishra joined your Companyas Director (Technical) w.e.f. 23/05/2015.

36.7 Shri R.P. Gupta joined your Companyas Part-time official Director w.e.f. 08/

06/2015.

57


37.0 Corporate Governance in WCL :

37.1 Company's Philosophy :

37.1.1 Corporate Governance is a

commitment backed by transparency

in functioning, value and mutual trust

among all the constituents of an

organization. It is a self-imposed

discipline which guides the

management and employees to

function towards the goal of the

organization. It involves essentially a

creative, generative and positive

thinking activity that adds value to the

stakeholders.

37.1.2 In your Company, Corporate

Governance philosophy stems from

our belief that Corporate Governance

is a key element in improving efficiency

and growth as well as enhancing

outsiders confidence. We are making

continuous efforts to adopt the best

practice in Corporate Governance and

we believe that the practice we are

putting into place for the company shall

go beyond adherence to regulatory

framework.

37.1.3 As per self evaluation report on

compliance of Corporate Governance

Guidelines submitted to Ministry of

Coal, WCL achieved excellent rating

i.e. 94.87% for the year 2014-15.

37.2 Board of Directors :

37.2.1 Size of the Board :

37.2.1.1 In terms of Articles of Association of

the Company, strength of our Board

shall not be less than two Directors

and more than fifteen Directors. These

Directors may be either whole time

Functional Director or Part-time

Directors.

37.2.2 Composition of the Board :

37.2.2.1As on 31st March, 2015, the Board

comprised of four Directors, out of which

three were whole time Functional

Directors including the Chairman-cum-

Managing Director. one Director was

nominee of the Government of India. The

appointment of one Government nomine,

two functional Directors five independent

directors as per the constitution of Board,

is under process of approval. In addition

to this, Government has nominated three

representatives one each from Govt. of

Maharashtra, Govt. of Madhya Pradesh

and Central Railway as Permanent

Invitees on the Board of WCL. The

Directors bring to the Board wide range

of experience and skill.

37.3 Board Meeting :

37.3.1 The meeting of the Board of Directors

are normally held at the Company's

registered office at Nagpur. The

Company has defined procedure for

meeting of the Board of Directors and

Committees thereof so as to facilitate

decision making in an informed and

efficient manner. 9 (nine) Board

meetings were held during the financial

year 2014-15 on 28/04/2014, 23/05/

2014, 26/07/2014, 27/09/2014,

02.11.2014, 29/11/2014, 10/01/ 2015, 03/

02/2015 and 03/03/2015 respectively.

Details of number of Board meetings

attended by Directors are tabulated

below:-

58


37.4 Information placed before the

Board of Directors :

37.4.1 Board has complete access to any

information within the Company. The

information regularly supplied to Board

includes :-

- Annual operating plans and

budgets and any update.

- Capital budget and any update.

- Quarterly result of the Company.

- Annual Report, Directors' Report

etc.

- Minutes of the meetings of all

Board Sub-committees.

- Fatal or serious accidents,

dangerous occurrence etc.

- Operational highlights.

- Award of large contracts.

- Major investment, joint venture

etc.

- Disclosure of interest by Directors

about Directorship and position

occupied by them in other

companies.

- Non-compliance of any

regulatory, statutory requirement.

- Utilization of equipment.

- Other materially important

information.

37.5 Audit Committee :

37.5.1 The scope, constitution etc. of the Audit

Committee is in line with the guidelines

of Corporate Governance.

37.5.1.1 Scope of Audit Committee :

a) Ensure compliance of internal

control system.

b) Reviewing the financial

statements with the management

before submission to the Board for

approval.

c) Reviewing the adequacy of

internal audit function.

d) Discussions with internal auditors

any significant findings and follow

up thereon.

e) Discussions with Statutory

Auditors.

37.5.1.2 Constitution :

The Audit Committee has beenconstituted with the membership of -

i) Four Independent Directors, onebeing the Chairman of the AuditCommittee;

ii) Nominee of Ministry of Coal(MOC), nominated on the Boardof WCL;

iii) Nominee of Coal India Limited,nominated on the Board of WCLand

iv) Director (Technical) OP

Sl. Directors Meetings No. of Number ofNo. held during Board Committee

respective Meetings membership tenure of attended in theCompany

Directors in 2014-15As As

ChairmanMember

Functional Directors :

1 Shri D.C. Garg, 2 2 - -Chairman-cum-Mg. Director

2 Shri R.R. Mishra, 5 5 - -

Chairman-cum-Mg. Director

3 Shri Om Prakash 4 4 - 3

Director (Tech.) Operations

with additional charge of CMD

4 Shri Rupak Dayal, 9 9 2 1

Director (Personnel)

5 Shri S.S. Malhi,Director 9 9 1 3

(Tech.) Planning & Projects

Government Directors :

6 Dr. M.R. Anand, 9 9 1 -

Economic Adviser,

Ministry of Coal

7 Shri R. Mohan Das, 9 8 - 1

Director (P&IR),

Coal India Limited

59


37.5.1.3 Composition :

During the year, Audit Committee of

the Company comprised of only three

Directors, two Govt. Director and one

Functional Director as the term of

Independent Directors completed and

fresh appointment is under process of

approval by MOC.

During the year, the Audit Committee

comprised of the following :-

Dr. M.R. Anand, Govt. Director - Chairman

Shri R. Mohan Das, Govt. Director- Member

Shri Om Prapash, Director (Technical)

OP (upto 08/10/2014) - Member

Shri S.S. Malhi, Director (Technical)

P&P (w.e.f. 09/10/2014) - Member

Director (Finance) also attended the

meetings of the Audit Committee as

invitee.

37.5.1.4Meeting and Attendance :

During the year 2014-15, 5 (five)

meetings of the Committee were held.

The details of Audit Committee

meetings attended by members are as

under :-

37.6 Remuneration Committee /

Remuneration of Directors :

37.6.1 Your Company, being a Central Public

Sector Undertaking, the appointment,

tenure and remuneration of Directors

are decided by the President of India.

Hence, the Board does not decide

remuneration of the Directors.

Independent Directors are paid only

sitting fees at the rate fixed by the

Board within the ceiling fixed under the

Companies Act, 2013 for attending the

Board Meetings as well as Committee

Meetings. Details of remuneration of

Functional Directors and Key

Managerial Person of the Company for

2014-15 are given in Form MGT-9

attached with the report.

37.7 General Body Meetings / Annual

General Meetings :

37.7.1 Date, time and locations where the last

three Annual General Meetings were

held are as under:-

37.7.2 During the year one Extraordinary

General Meeting was held on 27th

March 2015 to approve the modified

Articles of Association (AoA) of your

Company and to ratify the fee paid to

the Cost Auditors for the financial year

2014-15.

37.8 Disclosure :

37.8.1 As per the disclosure given by the

Directors of the Company, there were

no material related party transactions

that have potential conflicts with the

interest of the Company. The financial

statements are prepared in

accordance with applicable mandatory

Accounting Standards and relevant

presentational requirement of the

Companies Act, 2013.

37.9 Audit Qualifications :

37.9.1 It is always the Company’s endeavour

to present unqualified financial

Members of AuditMembers of AuditMembers of AuditMembers of AuditMembers of Audit Meetings held duringMeetings held duringMeetings held duringMeetings held duringMeetings held during Meetings attendedMeetings attendedMeetings attendedMeetings attendedMeetings attended

CommitteeCommitteeCommitteeCommitteeCommittee his / her tenurehis / her tenurehis / her tenurehis / her tenurehis / her tenure

Dr. M.R. Anand 5 5

Shri R. Mohan Das 5 5

Shri Om Prakash 3 3

Shri S.S. Malhi 2 2

Date :Date :Date :Date :Date : May 25May 25May 25May 25May 25, , , , , 20122012201220122012 May 27, 2013May 27, 2013May 27, 2013May 27, 2013May 27, 2013 June 11, 2014June 11, 2014June 11, 2014June 11, 2014June 11, 2014

Time :Time :Time :Time :Time : 01.00 P.M. 10.00 A.M. 10.00 A.M.

VVVVVenenenenenue ue ue ue ue : Coal Estate, Coal Estate, Coal Estate,

Civil Lines, Civil Lines, Civil Lines,

Nagpur. Nagpur. Nagpur

SpecialSpecialSpecialSpecialSpecial

Resolu-Resolu-Resolu-Resolu-Resolu- - - - - - ----- -----

tttttions ons ons ons ons :

60


statement. Management reply to the

Statutory Auditors’ observations on the

Accounts of the Company for the year

ended March, 2015 are furnished as

an Annexure to the Directors’ Report.

Comments of the Comptroller and

Auditor General of India under Sec.

143(6) of the Companies Act, 2013 on

the Accounts of Western Coalfields

Limited for the year ended 31st March,

2015 is also enclosed.

37.10 Whistle Blower Policy :

37.10.1Your Company is a fully owned

subsidiary of Coal India Limited. Coal

India has prepared and adopted

Whistle Blower Policy which is also

applicable to all its subsidiaries. Apart

from that, your Company has an

independent Vigilance Branch, headed

by a Chief Vigilance Officer. The

Vigilance Branch, functioning under

the overall guidance of Central

Vigilance Commission, mainly lay

stresses on preventive vigilance. Drop

Box has been kept, where employees

and others can report to the Vigilance

Branch, concerns about unethical

behaviour, actual or suspected fraud

etc. and the complaints so lodged are

reviewed by the Vigilance Branch and

necessary action, as deemed fit, is

taken while protecting the identityof the

complainants.

38. CODE OF CONDUCT :

The Board of Directors has approved

a Code of Business Conduct and

Ethics for the Board members and

Senior Management.

The Code lays down the standard of

conduct which is expected to be

followed by the Directors and the

Senior Management Personnel in their

business dealing and in particular on

the matter relating to integrity at the

work place, in business practices and

in dealing with stakeholders.

All the Board members and Senior

Management Personnel have

confirmed compliance with the code.

39. AUDITORS:

In exercise of the powers conferred

by the Company at the Extra-ordinary

General Meeting held on 30th August,

2001, pursuant to provisions of section

142(1) of the Companies Act, 2013 the

Board of Directors in its 250th meeting

held on 2nd November, 2013 fixed the

remuneration of Statutory and Branch

Auditors appointed by the Comptroller

and Auditor General of India, under

section 139(5) of the Companies Act,

2013 for the financial year 2014-15.

In addition to annual audit, the auditors

are appointed for carrying out review

of 1st Quarter Accounts ended on 30th

June 2014, 2nd Quarter Accounts

ended on 30th September, 2014 and

3rd Quarter Accounts ended on 31st

December, 2014 with a fees for each

quarter @ 25% of the annual audit fees

of previous year.

The details of Auditors appointed, their

fees and other expenses approved for

Annual Audit, 1st Quarter Review, 2nd

Quarter Review and 3 rd Quarter

Review are as under -

61


39. MEMORANDUM OF

UNDERSTANDING

As per guidelines of Department of

Public Enterprises (DPE)

Memorandum of Understanding

(MOU) between WCL and CIL for the

year 2014-15 has been verified and

duly authenticated by Independent

Auditor, appointed by the Board for

the Performance and auditors’ report

is annexed to this report.

40. DIRECTORS’ RESPONSIBILITY

STATEMENT:

Pursuant to the requirement under

section 134 (3) (c) of the Companies

Act, 2013, with respect to Directors’

Responsibility Statement, it is hereby

confirmed:

a) That in the preparation of the

Annual Accounts for the financial

year ended 31st March, 2015 the

applicable accounting standards

have been followed along with

proper explanations relating to

material departures;

b) That the Directors have selected

such Accounting Policies and

applied them consistently and

made judgments and estimates

that were 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 or

loss of the Company for the year

under review;

c) That the Directors have taken

proper and sufficient care for the

maintenance of adequate

accounting records in

accordance with the provisions of

the Companies Act, 2013 for

safeguarding the assets of the

Company and for preventing and

detecting fraud and other

irregularities; and

Statutory/BranchStatutory/BranchStatutory/BranchStatutory/BranchStatutory/Branch

AuditorsAuditorsAuditorsAuditorsAuditors

Statutory AuditorsStatutory AuditorsStatutory AuditorsStatutory AuditorsStatutory Auditors : : : : :

M/S Jodh Joshi and co,

Chartered Accountants,

Nagpur.

M/S V K Surana & co,

Chartered Accountants,

Nagpur.

Audit FeeAudit FeeAudit FeeAudit FeeAudit Fee

At actuals , subject

to maximum of ac-

tual fare plus DA

for Partners /

qualified assis-

tants @ Rs.140/-

per day and for

audit assistants @

Rs.120/- per day

for the actual man

days engaged for

audit of Areas/ of-

fices situated out-

side Nagpur city.

1

2

1

2

3

4

Rs.1,31,445/- for 1st

Quarter Review.

plus applicable taxes

Rs.5,25,780/- for

Annual Audit and

Rs.1,31,445/- each for

2nd and 3 rd Quarter

R ev i ew .


Rs.2,18,750/- for

Annual Audit and Rs.

54,690/- each for 1st

Quarter, 2nd Quarter

and 3 rd Quarter Review


Rs.70,310/- for 1st

Quarter Review. plus

applicable taxes

Rs.2,81,250/- for






Rs.2,81,250/- for






Rs.13,07,030/- for


3,26,755/- each for 1st,

2nd and 3 rd Quarter

Review plus

applicable taxes

TA/DA and out-of-A/DA and out-of-A/DA and out-of-A/DA and out-of-A/DA and out-of-

pocket expensespocket expensespocket expensespocket expensespocket expenses

Branch AuditorsBranch AuditorsBranch AuditorsBranch AuditorsBranch Auditors : : : : :

M/S B Chhawchharia

& CoChartered

Accountants

N a g p u r.

M/S. A . S . Dani &

C o C h a r t e r e d

Accountants

N a g p u r.

M/S V K Ladda &

C o C h a r t e r e d

Accountants

Uj ja in .

M/S KPRK &

Associates

C h a r t e r e d

Accountants

N a g p u r.

T O T A L

- do -

- do -

- do -

- do -

B

Actual TA/DA, limited

to total

Rs.1,50,000/- for

Annual Audit

and Actual TA/

DA, limited to

total Rs.75,000/-

each for 1st , 2nd

and 3rd Quarter

R e v i e w

62


d) That the Directors have prepared

the accounts for the financial year

ended 31st March, 2015 on a

‘Going Concern’ basis; and

e) That 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 prope

systems to ensure compliance

with the provisions of all applicable

laws and that such systems were

adequate and operating effectively.

The accounts of your company would

be available at the Headquarter of the

Company for providing information to

the shareholders of the CIL on demand

if any.

41. ACKNOWLEDGEMENTS :

41.1 Your Directors express their gratitude

to the Ministry of Coal, Government of

India and Coal India Limited, for their

valuable assistance, support and

guidance from time to time.

41.2 The Directors thank various Ministries

of the Central Government and the

State Governments of Maharashtra

and Madhya Pradesh for their valuable

support.

41.3 The Directors also take this opportunity

to acknowledge with thanks the

assistance rendered by the sister

organisations and Directorate General

of Mines Safety.

41.4 Industrial Relations in the Company

continued to be cordial. The Directors

place on record their appreciation for

the co-operation extended by the Trade

Unions and Officers Association and all

Steering Committee Members, Officers

of Ministry of Labour and the team

spirit shown by the employees at all

levels towards the achievement of the

objectives of the Company.

41.5 The Directors record the appreciation

of services rendered by Statutory and

Branch Auditors and the Officers and

Staff of Comptroller & Auditor General

of India, Department of Company

Affairs, Company Law Board and

Registrar of Companies, Maharashtra.

41.6 The Directors also extend their thanks

to various important citizens of

Nagpur, Maharashtra and Madhya

Pradesh States, stationed in the

Coalfields for their cooperation from

time to time and also to the Steering

Committee of WCL comprising of

Trade Union representatives and

Management.

42. ADDENDA :

42.1 The following papers are annexed :

42.2 In pursuance to the provisions of

section 134(3)(m) of theCompanies

Act, 2013, read with Companies Rule

(8), Sub-Rule (3) of the

Company(Accounts) rules, 2014,

information in regard to the

Conservation of Energy, Technology

Absorption and Foreign Exchange

Earning & Outgo is given in Annexure-

I to this report.

42.3 The Secretarial Audit Report for the

financial year ended 31st March, 2015

from Practising Company Secretary.

42.4 Corpoate Governance Certificate, in

compliance of conditions of Corporate

Governance, from Practising Company

Secretary.

63


NAGPUR

DATED : 22nd June, 2015

For and on behalf of Board of Directors

( R.R. MISHRA )CHAIRMAN-CUM-MANAGING DIRECTOR

42.5 Addendum to the Directors' Report

under section 134(3)(f) of the

Companies Act, 2013.

42.6 Comments of the Comptroller & Auditor

General (C&AG) of India under section

143(6) of the Companies Act, 2013.

42.7 Your Directors further state that "The

Company has in place an Anti Sexual

Harassment Policy in line with the

requirements of The Sexual

Harassment of Women at the

Workplace (Prevention, Prohibition &

Redressal) Act, 2013.

Internal Complaints Committee (ICC)

has been set up to redress

complaintsreceived regarding sexul

harasment. All employees (permanent,

contractual, temporary, trainees) are

covered under this policy.

The following is a summary of Sexual

harassment complaints received and

disposed off during the year 2014-15 :

No. of complaints received : 1

No. of complaints disposed off : 1

64


ANNEXURE - I

A. Conservation of Energy:

(i) Steps taken or impact on conservation of energy

1. Benchmarking of electrical power consumption in Umrer OC mine, including colony

& office by an external agency.

2. Conducting “Electrical Energy Audit” at Chattarpur UG mine by CMPDIL.

3. Addition of Capacitors to improve and maintain the power factor above 0.96.

4. Use of energy efficient tubes/ CFL in place of high watt luminaries/ conventional

fittings.

5. Use of auto-timers in street light circuits.

6. Installation of UG bunker.

7. Load shedding on domestic feeders.

8. Reduction in idle running of CHP.

9. Re-organization of LT OH Line by Aerial Bunched Cable.

10. Installation of de-watering pumps on float in OC mines during monsoon season.

11. Continuous monitoring & disconnection of unauthorized connections.

12. Installation of de-watering pumps with positive suction for UG mines sumps.

13. Elimination or reduction of stage pumping as far as practicable.

14. Stoppage of purchasing high energy consuming lights & fittings.

(ii) Steps taken by the company for utilising alternate sources of energy

1. Installation of Solar Power Generation system at Nagpur Area (80 kWp) &

Ballarpur Area (60 kWp) – tender was finalized during year 2014-15 & work

awarded on 15.04.2015

2. Installation of 619 kWp Solar Power Generation system at different locations –

under process of approval during 2014-15.

(iii) Capital investment on energy conservation measures

An amount of Rs. 2.83 Crores has been invested towards measures listed above at

point no. (i).

65


B. FORM "B" IS enclosed

C. FOREGIN EXCHANGE EARNING & OUTGO :

i) Acitvities relating to exports, initatives taken to increase exports, development of

new export markets for products and services and export plans

Company is not engaged in export activities.

PPPPPararararar t icu lart icu lart icu lart icu lart icu larsssss Current yearCurrent yearCurrent yearCurrent yearCurrent year Previous yearPrevious yearPrevious yearPrevious yearPrevious year

( A )( A )( A )( A )( A ) Foreign Exchange earnedForeign Exchange earnedForeign Exchange earnedForeign Exchange earnedForeign Exchange earned 0 .000 .000 .000 .000 .00 0 .000 .000 .000 .000 .00

( B )( B )( B )( B )( B ) Foreign Exchange used :Foreign Exchange used :Foreign Exchange used :Foreign Exchange used :Foreign Exchange used :

i )i )i )i )i ) C.I.F C.I.F C.I.F C.I.F C.I.F VVVVValue of Imporalue of Imporalue of Imporalue of Imporalue of Importststststs

Raw materialsRaw materialsRaw materialsRaw materialsRaw materials 0 .000 .000 .000 .000 .00 0 .000 .000 .000 .000 .00

Components , Stores & Spare Parts 3 .28 9 .11

Capital GoodsCapital GoodsCapital GoodsCapital GoodsCapital Goods 0 .000 .000 .000 .000 .00 0 .000 .000 .000 .000 .00

ii) Repayment of JBIC Loan 0 .00 41.74

iii) Repayment of IBRD Loan 0 .00 43.18

iv) Effect of Exchange fluctuation 0 .00 9 .00

v ) Travelling Expenses 0 .05 0 .12

vi) Interest/Commitment/Agency

charges etc. of IBRD/JEXIM (including swap cost) 0 .00 2 .26

66


Form Form Form Form Form ‘B’‘B’‘B’‘B’‘B’

DiscDiscDiscDiscDisclosure of Plosure of Plosure of Plosure of Plosure of Pararararar ticularticularticularticularticulars with respect to s with respect to s with respect to s with respect to s with respect to TTTTTececececechnology Absorptionhnology Absorptionhnology Absorptionhnology Absorptionhnology Absorption:::::

A.A.A.A.A. TTTTTececececechnology Absorption :hnology Absorption :hnology Absorption :hnology Absorption :hnology Absorption :

Efforts, in brief, made towards technology absorption, adaptation and innovation:

Concerted efforts are being made for technology absorption, adaptation and innovation

and various scientific studies in the sphere of mining with due emphasis on safety,

environment control, conservation and quality improvement details of which are furnished

below:

B.B.B.B.B. Mining Mining Mining Mining Mining TTTTTececececechnology:hnology:hnology:hnology:hnology:

1.1.1.1.1. Contin Contin Contin Contin Continuous Miner uous Miner uous Miner uous Miner uous Miner TTTTTececececechnology & its benefits:hnology & its benefits:hnology & its benefits:hnology & its benefits:hnology & its benefits:

Continuous Miner technology is under operation at Tandsi UG mine of WCL. Further,

the said technology has been proposed to be introduced with minimum guaranteed

production on partial hiring basis (paid on Rs/Tonne), at Tawa-II U/G, Pathakhera Area,

an operating mine. Accordingly, the proposal along with estimated cost and customized

bid document were approved by WCL Board in its 260th meeting held on 10th January,

2015. Global bid was floated on 26th March 2015, with scheduled date of opening of bid

on 09th June, 2015.During the financial year 2015-16, it is envisaged to introduce the

said technology in two operating mines viz. Tawa-I and Chhatarpur-I. Feasibility report

for both the mines has been submitted by CMPDIL and necessary scheme is under

preparation. After necessary approval, tendering action shall be initiated.

There are numerous benefits by deployment of said technology, some of them

are listed below:-

1. Significant increase in production and productivity

2. Safety of workmen from exposure to active face of operation

3. Reduces induced stress on overlying strata by eliminating blasting operation

4. Increase in output thereby reduces the cost per tonne of coal production.,

2. Application of Bottom ash as stowing material & its advantage:2. Application of Bottom ash as stowing material & its advantage:2. Application of Bottom ash as stowing material & its advantage:2. Application of Bottom ash as stowing material & its advantage:2. Application of Bottom ash as stowing material & its advantage:

Directives imposed by State Government restricted availability of sufficient quantity of

sand for stowing material in underground mines. Pilot study for using bottom ash as

stowing material has been undertaken in Sarni Mine, Pathakhera area under guidance

of CIMFR. After successful completion of pilot study, it is envisaged to introduce bottom

ash stowing in Rajur Mine, Wani North Area and other underground mines, depending

upon techno-economic feasibility and availability of bottom ash.

Successful study of bottom ash as stowing material will address environmental issues

and also to protect the important surface features over the mining area.

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3. Application of Man Riding System in UG Mines & its advantage :3. Application of Man Riding System in UG Mines & its advantage :3. Application of Man Riding System in UG Mines & its advantage :3. Application of Man Riding System in UG Mines & its advantage :3. Application of Man Riding System in UG Mines & its advantage :

9 Nos. of man riding systems are under operation in 08 underground mines. In the

financial year 2014-15, man riding system was commissioned in Adasa Mine, Nagpur

Area, on trial basis.

For the financial year 2015-16, it is envisaged to introduce man riding system in 02

mines viz. Rajur and Naheriya underground mines.

The said system was introduced in order to eliminate fatigue to the workman due to

long and arduous travel in UG mines and to improve their efficiency.

4. Universal Drilling Machines & its benefit:4. Universal Drilling Machines & its benefit:4. Universal Drilling Machines & its benefit:4. Universal Drilling Machines & its benefit:4. Universal Drilling Machines & its benefit:

The Company has played a leading role in mechanizing underground drilling operation

for coal face as well as for roof support. In this regard, 45 Nos. UDMs have been put in

operation.

After introduction of UDM, there is significant increase in blasting efficiency, thereby

increasing Coal availability and also there is significant improvement in green zone

support with added Safety.


MOU PERFORMANCE in F.Y. 2014-15 ( APRIL'14 - MARCH'15 )

Static / Financial Parameters

(i) Mandatory

a ) Sales Turnover Rs. Crs 10.0 7627.05 7571.68 7193.10 6833.44 6491.77 7571.68 7325.39In between V.Good & Good 2.651 0.2651

b ) Gross operating Margin Rate Ratio 10.0 0.0138 0.0104 0.0099 0.0094 0.0089 0.0104 0.0734Excellent 1 0.1

( i i ) Profitability

a ) PAT/Net Worth Ratio 5.0 0.00655 0.00154 0.00146 0.00139 0.00132 0.00154 0.0879 Excellent 1 0.05

b ) EBIDTA/ Net Block Ratio 7.0 0.12790 0.11640 0.11050 0.10500 0.09980 0.11640 0.4535 Excellent 1 0.07

( iii ) Cost/Output efficiency

a ) Sales turnover/Net Block Ratio 10.0 3.7755 3.7753 3.5865 3.4072 3.2368 3.7753 4.2550 Excellent 1 0.1

( iv) Efficiency of Asset Use

a) Average collection period for trade receivables No of days 8.0 19.43 19.85 20.84 21.88 22.98 19.85 21.590In between Good & Fair 3.721 0.2977

Sub Total of Static / Financial Parameters 50.0 0.8828

11.06.2015Evaluation Criteria Unit Weight

(in %) MoU TargetPerformance

in

14-15

Remarks/ Rating Score

Excellent Very Good Good Fair Poor Target Actual

1 2 3 4 5

2 Dynamic Parameters

(i) Corporate Social Responsibility ( CSR) & Sustainablity

1 Self/Gainful employment training programme for rural youth

for self employment in villages around WCL areas for 50

youths by external agencies

Nos 0.50 50 40 30 20 10 40 100 Excellent 1 0.005

2 Contruction of 5.5 KM road in villages % 0.50 100 90 80 70 60 90 166.54 Excellent 1 0.005

3 Implementation of 02 nos of Rain water harvesting

Schemes in areas

Date 0.50 28.02.2015 15.03.2015 31.03.2015 --- --- 15.03.2015 Before

28.02.2015Excellent 1 0.005

4 Implementation of 02 nos of Recycling projects for

Industrial / Sewage water ( at Tadali Workshop and

Gondegaon Nagpur Area )

Date 0.50 28.02.2015 15.03.2015 31.03.2015 --- --- 15.03.2015 Before

28.02.2015Excellent 1 0.005

SUB TOTAL 2.00 0.02

Achievementfor F.Y.

2014-15

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MOU PERFORMANCE in F.Y. 2014-15 ( APRIL'14 - MARCH'15 )11.06.2015

Evaluation Criteria Unit Weight


in

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Remarks Rating Score


1 2 3 4 5

( III ) Initiatives of Growth

a) Physical targets / output or No. of new orders/ projects

1 Approval of PR of Makardhokra - I Mine by WCL Board

and award of work for OB removal

Date 2.0 28.02.2015 31.03.2015 --- --- --- 31.03.2015 PR Approved

on 27.09.2014 & W.O.Excellent 1 0.02

2 Acquition and Possession of land

i ) Notification under Section 9 ( 1 ) of CBA Act Ha 1.00 1280 1216 1152 1095 1039 1216 1363.460 Excellent 1 0.01

ii ) Notification under Section 11 ( 1 ) of CBA Act Ha 1.00 1440 1368 1299 1234 1172 1368 1441.080 Excellent 1 0.01

iii ) Possession of Land Ha 1.00 280 220 180 170 160 220 1370.432 Excellent 1 0.01

Sub Total 5.00.05

( iv ) Project Management & Implementation

a ) Capacity Addition

1 Capacity Built up of 0.45 MT of Scheme for Dhorwasa OC

mine

Date 2.0 31.12.2014 31.01.2015 28.02.2015 15.03.2015 31.03.2015 31.01.2015 31.12.2014 Excellent 1 0.02

2 Environment clearance of Pauni OC Date 1.0 31.12.2014 31.01.2015 28.02.2015 15.03.2015 31.03.2015 31.01.2015 24.12.2014 Excellent 1 0.01

c ) Milestones to be reached for new / ongoing projects that can not be completed during the year

1 OB rehandling and soil excavation along path of Amb River

for diversion

% 1.00 60% 50% 40% 30% 20% 50% 88.7% Excellent 1 0.01

2 Completion of Approach road at Gauri deep OC Date 0.50 31.01.2015 28.02.2015 15.03.2015 31.03.2015 --- 28.02.2015 30.01.2015 Excellent 1 0.005

3 Preperation of Master Control Network of Projects costing

Rs 20 Crores or having capacity more than 1.00 MTPA

Nos. 2.00 15 10 6 4 1 10 15 Excellent 1 0.02

4CAPEX Rs. Crores 1.00 475.00 455.00 432.25 410.64 390.11 455.00 518.79 Excellent 1 0.01

Sub Total 7.50 0.075

Issued on 08.11.2014

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1 2 3 4 5

v ) Productivity & Internal Process

a ) Asset/ machine/ Facility Utilisation/ Downtime

1 Overall System Capacity Utilisation % 0.5 92% 90% 86% 84% 82% 90% 108.22% Excellent 1 0.005

f ) Customer satisfaction and redress of customer grievances

1 Customer ( FSA holder) satisfaction survey Date 1.0 31.12.2014 31.01.2015 28.02.2015 31.03.2015 --- 31.01.2015 Completed

on 24.10.2014Excellent 1 0.01

2 Despatch covered under third party sampling to power

sector

% 1.0 99.00 98.00 97.00 96.00 95.00 98.00 99.61 Excellent 1 0.01

3 Sized coal Despatch to power sector by Rail % 1.00 99.00 98.00 97.00 96.00 95.00 98.00 100 Excellent 1 0.01

4 Weighment on electrinic weighbridges before despatch of

coal

% 1.00 99.00 98.00 97.00 96.00 95.00 98.00 99.99 Excellent 1 0.01

5 Commitment to supply of coal to power utilities including

IPPsunder FSA complying directives of Govt.

MT 1.0 35.960 35.745 33.958 32.260 30.647 35.745 31.020 In between Fair & Poor 4.769 0.048

Sub Total 5.5 0.093

vi ) Technology, Quality, Innovative practices

a ) New Technologies / improving exsisting ones/other innovative practices

1 Award of work for bench marking of specific diesel

consumption in an opencast mine by an external agency

Date 0.5 28.02.2015 31.03.2015 --- --- --- 31.03.2015 07.02.2015 Excellent 1 0.005

2 Award of work for Benchmarking of electric Power

consumption in an opencast mine by an external agency

Date 0.5 28.02.2015 31.03.2015 --- --- --- 31.03.2015 07.01.2015 Excellent 1 0.005

3 Award of work to engage an independent consultant to

develop a business model to enable WCL to open new

projects with specific emphasis on cost analysis.

Date 1.0 15.01.2015 31.01.2015 28.02.2015 31.03.2015 --- 31.01.2015 14.01.2015 Excellent 1 0.01

c ) Quality Management - Method like TQM, Six Sigma and

ISO, Baldrige Performance Excellence Criteria etc.

1 Quality Management System ( QMS) under ISO -9001

2008 ( Recertification of 18 units )

Date 1.00 31.08.2014 30.09.2014 31.10.2014 30.11.2014 31.12.2014 30.09.2014 Completed

on 12.08.2014Excellent 1 0.01

2 Quality Management System ( QMS) under ISO -9001

2008for New Mines / Training Institutes.(4no.)

No 1.00 4 3 2 1 --- 3 10 Excellent 1 0.01

Sub Total 4.00 0.04

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vii ) Human Resource Management - HRM -

1 Certified Training in Project Management No. of

Executives

1.0 60 50 40 30 20 50 79 Excellent 1 0.01

2 Certified Training in Contract Management No. of

Executives

1.0 5 4 3 2 1 4 25 Excellent 1 0.01

3 Certified Training inEnvoronment, Forest Management &

Land Acquisition

No. of

Executives

1.0 5 4 3 2 1 4 29 Excellent 1 0.01

4 Formal Training in Risk Management No. of

Executives

1.0 5 4 3 2 1 4 7 Excellent 1 0.01

5 Training for mine managers and other executives to make

them aware of conditions stipulated in environmental

clearance

No. of

Executives

1.0 10 8 6 4 2 8 23 Excellent 1 0.01

6 Developing critical mass of leader through a system of

career planning & development of executives.

No. of

Executives

1.0 140 130 120 110 100 130 236 Excellent 1 0.01

Sub Total 6.0 0.06

Sub Total of Dynamic Parameters 30.0 0.3377

3 Sector specific & Enterprise specific Parameters

a ) Sector Specific

1 Coal Offtake ( subject to availability of 17.4 rake / day on

an annual basis as per Annexure D )

Million tonnes 9.0 45.50 45.00 42.75 40.61 38.58 45.00 41.246 In between Good & Fair 3.703 0.333

2 Total Coal Production Million tonnes 9.0 44.50 44.00 41.80 39.71 37.72 44.00 41.147 In between Good & Fair 3.312 0.298

3 Coal Production from UG Mine Million tonnes 1.0 8.00 7.90 7.51 7.13 6.77 7.90 7.565 In between V.Good & Good 2.859 0.029

Enterprise Specific

1 Man Productivity OMS (Output/manshift) Te 0.50 2.59 2.54 2.41 2.29 2.18 2.54 3.26 Excellent 1 0.005

2 Afforestation / Tree plantation including Bamboo plantation

along transport roads in mines areas

No 0.50 20000 18000 16000 14000 12000 18000 47750 Excellent 1 0.005

Sub Total 20.00.6699

Total of Non- Financial Parameters 50.00 1.0076

GRAND TOTAL ( Fin. + Non-Fin) 100.00 1.8904





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73

FORM NO. MGT 9

EXTRACT OF ANNUAL RETURN

As on financial year ended on 31.3.2015

Pursuant to Section 92 (3) of the Companies Act, 2013 and Rule 12(1) of the Company (Management & Administration) Rules, 2014

A) REGISTRATION & OTHER DETAILS:

1. CIN U10100MH1975GOI018626

2. Registration Date 29th October 1975

3. Name of the Company Western Coalfields Limited

4. Category/Sub-category of the Company Private Company/Government Company

5. Address of the Registered office & contact

details

Coal Estate, Civil Lines, Nagpur – 440001,Maharashtra

Contact No. : 0712-2511216 Fax No. : 0712-2511216

Email Id. : [email protected]

6. Whether listed company No

7. Name, Address & contact details of the

Registrar & Transfer Agent, if any.

NA

B) PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:

[All the business activities contributing 10% or more of the total turnover of the company shall be stated]

S. No. Name and Description of main products / services NIC Code of the

Product/service% to total turnover of the company

1. Coal Mining 051-05101 and 051-05102 100.0

C) PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES:

S.No Name and Address of the Company CIN/GLN Holding/Subsidiary/Associate % of ShareHeld

Applicable Section

NA

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D) SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity):

1. Category-wise Share Holding:

the year

Category of Shareholders - -04No. of Shares held at the beginning of the year

[as on 01 2014]

No. of Shares held at the end of the year[as on 31-03-2015]

%

Changeduring

Demat Physical Total % of TotalShares


A. Promoter`s

(1) Indian:

a) Individual/ HUF 0 0 0 0 0 0 0 0 0

b) Central Govt 0 0 0 0 0 0 0 0 0

c) State Govt(s) 0 0 0 0 0 0 0 0 0

d) Bodies Corp. 0 2971000 2971000 100.0 0 2971000 2971000 100.0 0.00

e) Banks / FI 0 0 0 0 0 0 0 0 0

f) Any other 0 0 0 0 0 0 0 0 0

Sub-Total (A)(1): 0 2971000 2971000 100.0 0 2971000 2971000 100.0 0.00

(2) Foreign:

a) NRIs- Individuals 0 0 0 0 0 0 0 0 0

b) Other- Individuals 0 0 0 0 0 0 0 0 0

c) Bodies Corp. 0 0 0 0 0 0 0 0 0

d) Banks / FI. 0 0 0 0 0 0 0 0 0

e) Any other 0 0 0 0 0 0 0 0 0

Sub-Total (A)(2): 0 0 0 0 0 0 0 0 0

Total shareholding of

Promoter (A)=(A)(1)+(A)(2)0 2971000 2971000 100.0 0 2971000 2971000 100.0 0.00

Total shareholding of

Promoter (A)0 2971000 2971000 100.0 0 2971000 2971000 100.0 0.00

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Category of Shareholders-04-

No. of Shares held at the beginning of the year[as on 01 2014]

No. of Shares held %Changeduring

the year



B. Public Shareholding

a) Mutual Funds 0 0 0 0 0 0 0 0

b) Banks / FI 0 0 0 0 0 0 0 0

c) Central Govt 0 0 0 0 0 0 0 0

d) State Govt(s) 0 0 0 0 0 0 0 0

e) Venture Capital Funds 0 0 0 0 0 0 0 0

f) Insurance Companies 0 0 0 0 0 0 0 0

g) FIIs 0 0 0 0 0 0 0 0

h) Foreign Venture Capital

Funds

0 0 0 0 0 0 0 0

i) Others 0 0 0 0 0 0 0 0

Sub-total (B)(1):- 0 0 0 0 0 0 0 0

(2) Non-Institutions

a) Bodies Corporate:

i) Indian 0 0 0 0 0 0 0 0

ii) Overseas 0 0 0 0 0 0 0 0

b) Individuals:

i) Individual shareholders

holding nominal share capital

upto Rs. 1 lakh

0 0 0 0 0 0 0 0

ii) Individual shareholders

holding nominal share capital

in excess of Rs 1 lakh

0 0 0 0 0 0 0 0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

at the end of the year

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Category of Shareholders No. of Shares held at the beginning of the year[as on 01-04-2014] -03-

No. of Shares held at the end of the year[as on 31 2015]

%Changeduring

the yearDemat Physical Total % of Total

SharesDemat Physical Total % of Total

Sharesc) Others (specify):

Non Resident Indians 0 0 0 0 0 0 0 0 0

Overseas Corporate Bodies 0 0 0 0 0 0 0 0 0

Foreign Nationals 0 0 0 0 0 0 0 0 0

Clearing Members 0 0 0 0 0 0 0 0 0

Trusts 0 0 0 0 0 0 0 0 0

Foreign Bodies - D R 0 0 0 0 0 0 0 0 0

Sub-total (B)(2):-

Total Public Shareholding

(B)=(B)(1)+ (B)(2)

0 0 0 0 0 0 0 0 0

C. Shares held by Custodian

for GDRs & ADRs

0 0 0 0 0 0 0 0 0

Grand Total (A+B+C) 0 2971000 2971000 100.0 0 2971000 2971000 100.0 0.00

2. Shareholding of Promoter:

S.No.

’Shareholders Name Shareholding at the beginning of the year[as on 01-04-2014]

Shareholding at the end of theyear % change

shareholdingduring the

year

No. of Shares % of totalShares of the

company

%of SharesPledged /

encumbered tototal shares

No. of Shares % of totalShares of

the company

%of SharesPledged /

encumberedto totalshares

[as on 31-03-2015]

1. Coal India Limited 2971000 100.00 0.00 2971000 100.0 0 0.00

in

5

3. Change in Promoters’ Shareholding (please specify, if there is no change):

S.

No. Particulars

Cumulative Shareholding during the year[2014 -2015]

No. of shares % of total

shares of the

company

No. of shares % of total

shares of the

company

Shareholding at the beginning of the year

[as on 01- 04-2014]

1. At the beginning of the year 2971000 100.0 2971000 100.0

2.

during the ye

Date wise Increase/Decrease in Promoters Shareholding

ar specifying the reasons for

increase/decrease (e.g. allotment/transfer/ bonus/ sweat

equity etc.):

-

3. At the end of the year 2971000 100.0 2971000 100.0

4. Shareholding Pattern of top ten Shareholders: (Other than Directors, Promoters and Holder s of GDRs and ADRs):

S.No.

’Shareholder s Name04

Shareholding at the beginning of the year[as on 01- -2014]

Shareholding at the end of the year[as on 31-03-2015]

% change inshareholding during the

year

No. of Shares % of totalShares of the

company

%of SharesPledged /

encumbered tototal shares

No. of Shares % of totalShares of

the company

%of SharesPledged /

encumberedto totalshares

1. NA

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5. Shareholding of Directors and Key M anagerial Personnel:

S. No. Shareholding of each Directors and each Key ManagerialPersonnel

Shareholding at the beginning Cumulative Shareholding-

No. of shares % of totalshares of the

company

No. of % of totalshares of the

company

of the year[as on 01-04-2014]

1. Shri Rajiv Ranjan Mishra

Chairman-cum-Managing Director,Western Coalfields Limited

At the beginning of the year Nil Nil Nil Nil

Date wise Increase / Decrease in Shareholding during the year

specifying the reasons for increase /decrease (e.g. allotment / transfer

/ bonus/ sweat equity etc.)

-

At the end of the year Nil Nil

2. Shri R. Mohan Das

Government Director (Part time)




/ bonus/ sweat equity etc.)-

At the end of the year Nil Nil

3. Dr M.R.Anand

Government Director (Part




/ bonus/ sweat equity etc.)-

At the end of the year Nil Nil Nil Nil

- 2015]during theYear [2014

shares

Time)

TRANSFER

DATE : 10/01/2015

TRANSFER

DATE : 01/03/2015

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S. No. Shareholding of each Directors and each Key ManagerialPersonnel

Shareholding at the beginning Cumulative Shareholding-

No. of shares % of totalshares of the

company

No. of % of totalshares of the

company

of the year[as on 01-04-2014] - 2015]during theYear [2014

shares

4. Shri Rupak Dayal







5. Shri S.S.Malhi

Director (Technical)






6. Shri Rameher

Company Secretary






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E. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but

Secured Loans excluding deposits Unsecured Loans Deposits Total Indebtedness

Indebtedness at thebeginning of the financial year

Nil

i) Principal Amount Nil

ii) Interest due but not paid Nil

iii) Interest accrued but not due Nil

Total (i+ii+iii) Nil

Change in Indebtedness duringthe financial year

Addition Nil

Reduction Nil

Net Change Nil

Indebtedness at theend of the financial year

i) Principal Amount Nil

ii) Interest due but not paid Nil

iii) Interest accrued but not due Nil

Total (i+ii+iii)

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil

Nil Nil

not due for payment

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F). REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL:

A. Remuneration to Managing Director, Whole-Time Directors and/or Manager:

S.N

Particulars of RemunerationName of MD/WTD/ Manager Amount

Shri Rajiv Ranjan Mishra(appointed as Chairman-cum-Managing Director

w.e.f 11th October 2014)

Shri D C Garg(upto 17th June 2014)

Shri Om Prakashupto

8th October 2014

Shri Rupak

Dayal

Shri S.S.Malhi

1. Gross salary 1012994 824424 1446972 2309260 2637627 8231277

(a) Salary as per provisions contained in section17(1) of the Income-tax Act, 1961

917858 748258 1315047 2089890 2388406 7459459

(b) Value of perquisites u/s 17(2) Income -tax Act,1961

95136 76166 131925 219370 249221 771818

(c) Profits in lieu of salary under section 17(3)Income- tax Act, 1961

- - - - -

2. Stock Option - - - - -3. Sweat Equity - - - - -4. Commission

- as % of profit- others, specify

- - - - -

5. Others, please specify* 98622 2575478 304677 256360 256186 3491323

Total (A) 1111616 3399902 1751649 2565620 2893813 11722600

Ceiling as per the ACT

*includes Medical Reimbursements,Provident Fund & Family Pension and Encashment of Leave.

Total

-

---

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B. Remuneration to Other Directors:

SN.

Particulars of Remuneration Name of Directors Total Amount (Rs.)

1. Independent Directors: No Independent Directors were present during the year NA

Fee for attending board committee meetings 0 0

Commission 0 0

Others, please specify 0 0

Total (1) 0 0

2. Other Non-Executive Directors: No Non-Executive Directors were present during the year NA

Fee for attending board committee meetings 0 0

Commission 0 0

Others, please specify 0 0

Total (2) 0 0

Total (B)=(1+2) 0 0

Total Managerial Remuneration 0 0

Overall Ceiling as per the Act

C. Remuneration to Key Managerial Personnel Other than MD/Manager/WTD:

S.No.

Particulars of Remuneration Key Managerial Personnel Total Amount (Rs.)

(Shri Rameher), CS

1. Gross salary 2341419 2341419

(a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 2135381 2135381

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 206038 206038

(c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961 - -

2. Stock Option - -

3. Sweat Equity - -

4. Commission - -

- as % of profit - -

Others, specify… - -

5. Others, please specify* 236809 236809

Total 2578228 2578228

*includes Medical Reimbursements,Provident Fund & Family Pension .

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G. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

TypeSection of the

Companies ActBrief

Description

Details of Penalty /Punishment/

Compounding feesimposed

Authority[RD / NCLT/ COURT]

Appeal made,if any (give Details)

A. COMPANY:

Penalty

NonePunishment

Compounding

B. DIRECTORS:

Penalty

NonePunishment

Compounding

C. OTHER OFFICERS IN DEFAULT:

Penalty

NonePunishment

Compounding

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ADDENDUM TO DIRECTORS’ REPORT

UNDER SECTION 134(3) and 143(3) OF THE COMPANIES ACT, 2013

Author Report to the Members of Western Coalfields Ltd.

This audit report supersedes the earlier audit report dated May 23' 2015 and is being revised to

include the directions and sub directions issued u/s 143(5) of the Companies Act, 2013 as per

the direction of Comptroller and Auditor General of India vide his letter no. 251/CAR/CCL/PDCA/

COMM/A/CS/2014-15 Dated 03.06.2015.

Report on the Financial Statements

We have audited the accompanying financial statements of WESTERN COALFIELDS LIMITED

(A Subsidiary of Coal India Limited), which comprise the balance sheet as at 31st March

2015, the statement of profit and loss and the cash flow statement for the year then ended, and

a summary of significant accounting policies and other explanatory information. The financial

statements audited by us incorporate the accounts of:-

a) 5 Areas / Units audited by us, and

b) 11 Areas / Units audited by Branch Auditors

The reports of Branch Auditors have been furnished to us and have been appropriately dealt

with by us in preparing this report.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the

Companies Act, 2013 (“the Act”) with respect to the preparation and presentation of these

financial statements 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 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 frauds and other irregularities;

selection and application of appropriate accounting policies; making judgments and estimates

that are reasonable and prudent; and design, implementation and maintenance of adequate

internal financial controls, 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 from material misstatement,

whether due to fraud or error.


86

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We

have taken into account the provisions of the Act, the accounting 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 thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section

143(10) of the Act. Those Standards require that we comply with ethical requirements and plan

and perform the audit to obtain reasonable assurance about whether the financial statements are

free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and the

disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,

including the assessment of the risks of material 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 a true and fair

view in order to design audit procedures that are appropriate in the circumstances, but not for the

purpose of expressing an opinion on whether the Company has in place an adequate internal

financial control system over financial reporting and the operating effectiveness of such controls.

An audit also includes evaluating the appropriateness of the 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.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the

aforesaid financial statements, read together with Additional Notes to Accounts and Accounting

Policies give the information required by the Act in the manner so required and give a true and fair

view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the state of affairs of the company as at March 31,

2015

(b) in the case of the Statement of Profit and Loss, of the Profit for the year ended on that date;

and


87

(c) In case of Cash Flow Statement, of the cash flows of the company for the year ended

on that date.

Report on Other Legal and Regulatory Requirements

1. As required under section 143(5) of the Companies Act, 2013, we give in the Annexure

“A”, a statement on the directions issued by the Comptroller and Auditor General of India

after complying the suggested methodology of Audit, the action taken thereon and its

impact on the accounts and financial statement of the company.

2. As required by the Companies (Auditor’s Report) Order, 2015 (“the Order”) issued by the

Central Government of India in terms of sub-section (11) of section 143 of the Act, we give

in the Annexure “B” a statement on the matters specified in the paragraph 3 and 4 of the

Order, to the extent applicable.

3. As required by Section 143 (3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of

our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion proper books of account as required by law have been kept by the

Company so far as it appears from our examination of those books.

c) The report on the accounts of the Areas/ units, audited under section 143(8) by branch

auditors has been forwarded to us and have been dealt with in preparing our report

in a manner considered necessary by us.

d) The balance sheet, the statement of profit and loss and the cash flow statement dealt

with by this Report are in agreement with the books of account.

e) In our opinion, the aforesaid financial statements comply with the Accounting Standards

specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)

Rules, 2014, subject to the following:


88

AUDIT OBSERVATION

(i) Accrual basis of accounting as required by provisions

of section 128(I) of Companies Act, 2013 has not been

followed in respect of :

a) Liquidated damages, interest on delayed payments

and escalation claims from customers are

accounted for on the basis on final settlement

b) Insurance / Railway claims are accounted

for on admission / final settlement.

c) Sale of scrap is accounted for on realization

d) Refund/Adjustment of Tax from tax authorities

except Input Tax Credit claim on VAT are

accounted for on cash basis. Additional demand

for Income Tax, Royalty, Cess, Sales Tax, Entry

Tax etc. are accounted for after final orders in

appeals are received. Pending such appeals,

payments made against additional demands

claims receivable

(ii) As stated in footnote no. (c) to Note No.16 Non

recognition of interest of Rs. 7.94 crores in respect of

interest not securitized.

Recognition of revenue arising

out of claims made on railway

authorities, customers etc. is

done only when there is a

reasonable cer tainty of

collection of such claims. Thus

a prudent accounting practice

is followed resulting in

depiction of true and fair view

of the state of affairs of the

company. Further the practice

has been adequately

disclosed in the Additional

notes to the Accounts Point

No.8.a

Ministry of Power, Government

of India had advised Madhya

Pradesh Power Generation

Corporation Ltd (MPPGCL) to

securitise outstanding principal

and interest upto 30.09.2001

of Rs.171.94 cr and Rs.21.99

cr respectively. MPPGCL had

securitied Rs.123.91 cr in the

year 2003. For the balance

Rs.70.02 cr (principal Rs.62.08

cr & interest Rs.7.94 cr)

MPPGCL preferred for

Arbitration. Pending

finalisation of Arbitration,

Provision for Doubtful debt for

Rs.62.08 cr

towards principal is made and

balance Rs.7.98 cr being

interest has not been

recognised in the books as per

practice adequately disclosed

in the Additional notes to the

Accounts Point No.8.a.

MANAGEMENT REPLY


89

The detailed records are not

available for the taken over

assets. However, Net Residual

value/ WDV of all such Assets

is Rs.1.00 lakh. The value of

these assets is very meagre &

hence immaterial.

Assets were taken over from

Coal Mines Labour Welfare

organisation (CMLWO)

through administrative orders

issued by the concerned

ministries and no purchase

consideration was fixed.

This being a statement of fact

calls for no comments





(iii) As stated in footnote no. (a) to Note No. 10A, ‘Assets Taken

over on Nationalization’ of the company with Gross Value

of Rs. 9.07 crores, Accumulated Depreciation of Rs. 9.06

crores and WDV of Rs. 0.01 crores are not classified into

proper sub-head within fixed assets.

(iv) As stated in footnote no. (b) to Note No. 10A, finalization of

purchase consideration of certain fixed assets taken over

by company from the Coal Mines Labour Welfare

Organization is still pending. This has impact on reported

figures of Gross block of such Fixed Assets, Accumulated

Depreciation and Reserves & Surplus and also on the

presentation of fixed assets. The impact however is not

ascertainable.

(f) sub-section (2) of section 164 of the Companies Act, 2013

is not applicable to the Company being the Government

Company; and

(g) The company has adequate internal financial control in place

and such control are effectively operative in the company.

(h) with respect to the other matters to be included in the

Auditor’s Report in accordance with Rule 11 of the

Companies (Audit and Auditors) Rules, 2014, in our opinion

and to the best of our information and according to the

explanations given to us the said accounts give the

information required by the Companies Act, 2013, in the

manner so required and subject to forgoing and read

together with the accounting policies and additional notes

on accounts gives a true and fair view in conformity with

the accounting standards generally accepted in India.

AUDIT OBSERVATION MANAGEMENT REPLY

For V. K. Surana & Co.

Chartered Accountants

CA. Sudhir Surana

Partner

Membership No. 43414

Firm Reg. No.: 110634W

Nagpur,

Jun 05, 2015


90

ANNEXURE “A” TO THE AUDITORS’ REPORT OFWESTERN COALFIELD LIMITED FOR THE YEAR ENDED 31ST MARCH, 2015

(As referred to in Paragraph 1 of Report on Other Legal and Regulatory Requirements of

our report on the statement of Directions & Sub Directions under section 143(5) of

Companies Act 2013, issued by the Comptroller and Auditor General of India for the year

2014-15)

1 If the Company has been

selected for disinvestment, a

complete status report in terms

of valuation of Assets (including

intangible assets and land) and

Liabilities (including Committed

& General Reserves) may be

examined including the mode

and present stage of

disinvestment process.

2 Please report whether there are

any cases of waiver/ write off of

debts/loans/interest etc., if yes,

the reasons there for and the

amount involved.

3 Whether proper records are

maintained for inventories lying

with third parties & assets

received as gift from Govt. or

other authorities.

4 A report on age-wise analysis

of pending legal/ arbitration

cases including the reasons of

pendency and existence/

effectiveness of a monitoring

mechanism for expenditure on

all legal cases(foreign and local)

may be given.

The Company is a

Subsidiary of CIL and as

informed to us the Company

is not being selected for

disinvestment.

No such cases are found.

No such cases are found.

The age wise details of total

number of pending legal

cases at different courts

including High Court Nagpur

as on 31.03.15 are as

under.Up to 3 Year – 1627

CasesAbove 3 Year – 1575

CasesTotal – 3202 Cases

This being a statement of

fact calls for no comments.

.





Yes. The status of legal

pending cases has been

disclosed as contingent

liabilities. Financial impact

will depend on the outcome

of the legal cases.

Sr.No.

Details/Directions Auditor’s Reply Management Reply


91

Sub Directions For Audit Of

Companies Engaged In

Coal Mining :-

i. Provisioning done in case

of unpaid amount on GCV

issues may be examined.

Latest GCV dues position

of concerned subsidiaries

of CIL as on 31.03.2015

is required to be

examined.

It may also be confirmed

whether the annual

accounts have been

prepared/maintained as

per the New Companies

Act 2013.

ii. Valuation of inventories

with compliance to

Accounting Standard-2 in

entirety.

(a) Whether stock

measure-ment was

done keeping in

view the contour

As explained and / or verified the

same are pending as proceedings

are underway and final judgement

is pending.Presently there is no

mechanism to monitor the legal

cost involved in individual cases.

The same is approved based on

the approved rate / slab taking into

account the involvement /

appearance at different court.

Provision for GCV if any, as per

the Quality Control Report is being

done.

Yes

Yes

Yes, the stock measurement was

done keeping in view the contour

map.Yes, physical stock

measurement repor ts are

accompanied by contour map in

Yes. Provision for GCV if

any, as per the Quality

Control Report has been

done.

Yes. The provision of New

Companies Act, 2013

complied with.





Sr.No.



92

map. Whether physical stock

measurement reports are

accompanied by contour map

in all cases? Whether new

heap, if any, created during

the year has got the approval

of the competent authority?

(b) Whether there is age wise

analysis of non-vendable

stock of coal? Is there any

substantial variance (beyond

+/- 5%) found on

measurement of non-

vendable stock of coal? If

yes, has it been properly

recorded with reasons?

Whether valuation of such

stock was as per the laid

down accounting practice by

the competent authority.

(c) As per the new policy adopted

by CIL as well as Government

of India, HSD is to be

procured at the projects/

mines at bulk rate. Whether

the contractors who are

purchasing diesel at bulk rate

are allowed price escalation

at bulk rate instead of retail

rate.

(d) Whether provisions inConsolidated FinancialStatement (CFS) under theNew Companies Act 2013 aremade with a view torepresenting true and fairview of financial condition andoperating result of the

business entity.

all casesIn respect of new heaps,

wherever created during the year

at various mines the necessary

approval is obtained from the

competent authority.

As per the explanation and

records there is no non-vendable

stock of coal.

As explained, there are no such

cases. The escalation is allowed

at Retail rate as per the terms of

tender.

Not Applicable.





WCL does not have

subsidiary, Associates or

JVs hence, not applicable.

Sr.No.



93

(e) Special emphasis should

be given to satisfy that

the CFS has been

prepared in

accordance with the AS

21, 23 and 27.

iii. It may be verified that the

capital expenditure incurred

on assets not belonging to

the company has been

properly identified and

accounted for as per

established accounting

principles.

iv. Special emphasis on

compliance with respect to

observations / comments

raised by Statutory Auditors/

Govt. Auditors in 2013-14

and also in the Review

Report on Half Yearly

Accounts for the year 2014-15.

v. It may be verified that the

third party confirmation on

debtors, creditors, bank

balances, account

receivable, account payable

and loans and advances

have been done in full? If not,

par ty-wise including

percentage of such

unconfirmed amount may

also be reported.

Not Applicable.

Yes, the capital expenditure

incurred on assets not

belonging to the company are

properly identified and

accounted for as per

established accounting

principles]

The observations given by Govt

Auditor in 2013-14 and also in

the Review Report on Half

Yearly Accounts for the year

2014-15 are complied with.

Confirmations are received in

respect of bank balances.

In respect of Sundry Creditors, for

F.Y 14-15, letter for confirmations

have been issued but response

to the same is yet to be received.

As regards confirmations for F.Y.

13-14, the status of confirmation

from Sundry Creditors at

NAGPUR Area is as follows:

WCL does not have

subsidiary, Associates or

JVs hence, AS - 21, 23

and 27 are not applicable.





Yes. Confirmations are

received from Banks.

Parties were requested

to send the confirmation

of the balances, which

are awaited.

Reconciliation with all

power houses is complete

which constitute 90% of

our customer.

Sr.No.


Gross 945.18 100

Confirmation letter sent 801.87 86

Confirmation received 321.72 20

Percentage 34% 20%

Particulars

amountTotal Amt

in LakhsNo


94

vi. Similarly, whether separate

Escrow Fund Accounts have

been opened/maintained or

earmarked in the Bank in CIL

and its subsidiaries, for the

specific purpose.


fact calls for no

comments.

Impact on accounts and

financial statements is not

ascertainable.



Sr.No.


In respect to Sundry Debtors,

the process of reconciliation with

major Power House debtors is

done till different interim period

of F.Y. 2014-15. The same shows

un-reconciled / un-confirmed

balance of Rs. 389 Lacs. Apart

from this, there is unsettled

claim of Rs. 7137 Lacs relating

to performance incentive for FY

12-13 & 13-14. As explained the

verification and reconciliation

process thereof is underway.

However in respect of private

parties, generally having credit

balance, there is no system of

doing reconciliation.In respect of

other account receivable,

account payable and loans and

advances there is no system of

calling confirmation.

Yes, the same is maintained at

Head Office in respect of Mine

Closure Account.


Chartered Accountants

CA. Sudhir Surana

Partner

-Membership No. 43414


Nagpur,

Jun 05, 2015


95

ANNEXURE "B" TO THE AUDITOR'S REPORT OF

WESTERN COALFIELDS LIMITED FOR THE YEAR ENDED 31ST MARCH, 2015

(As referred to in Paragraph 2 of Report on Other Legal and Regulatory

Requirements forming part of our report of even date)

i) (a) The Company has maintained proper records

showing full particulars, including quantitative

details and the situation of fixed assets, except

for assets taken over from Coal Mines Authority

on Nationalization and those taken from Coal

Mines Rescue Station and Coal Mines Labour

Welfare Organization, which have not been

recorded. Some of the title deeds/lease deeds for

land building and moving rights continue to be

held in name of Coal India Limited.

(b) The Physical verification of Plant & Machinery

valuing Rs. 1 Lac and above and Vehicles as on

31.03.2015 has been done by Departmental

Committee at respective areas and no material

discrepancies were noticed on such verification.

Physical verification of Plant & Machinery items

having book value less than Rs.1 lac has been

carried out by the departmental committee of all

the areas of the Company, except few areas where

no such physical verification is done since last

three years which is contrary to the Company’s

policy.

In respect of CBE Plant Bhandara, fixed assets

are in the custody of the management of

Ordinance Factory and as stated the same are

physically verified by them and no material

discrepancy is reported on such verification.

In respect of DFD Plant, Hinganghat, major items

of fixed assets are physically verified by the

management. No material discrepancy is reported

to have been noticed on such verification.

Assets were taken over from Coal Mines

Labour Welfare organisation (CMLWO)

through administrative orders issued by

the concerned ministries and no purchase

consideration was fixed.

Also, lease of Coal mines nationalised

under Coal Mines (Nationalisation) Act,

1973 were vested in Coal Mines Authority

Limited by statutory order No. GSR/345

dated 9th July’1973, New Delhi. Further

as per Gazette Notification No.45/2000

dated 8.12.2000, all title /lease deeds are

deemed to have been vested with the

subsidiary concern.

This being a statement of fact calls for no

comments.

Physical verification of Plant & Machinery

items having book value less than Rs.1

lac has been carried out in most of the

areas except in few areas where the

reconciliation for physical verification is

under progress and on completion,

adjustment required, if any, shall be made.


comments.


comments.

MANAGEMENT REPLYAUDIT OBSERVATION


96

However, in respect of few items found short or

excess during the Physical Verification of Fixed

Assets as on 31.03.2003, done by a firm of Cost

Accountants/ Chartered Accountants / Outside

Agencies at various Areas, the work of

reconciliation is in progress. Pending final

reconciliation of items of fixed assets found short

/ excess in few areas, no adjustment has been

made in the accounts of the Company for the

year 2014-15.

(ii) (a) The stock of coal has been physically

verified at reasonable intervals by the

management by adopting volumetric measures.

The physical verification of stock of coal as on

31.03.2015 has been done by a team appointed

by Coal India Ltd. However, the certification of

production for the year 2014-15 and books stock

as on 31st March’ 2015 is pending at certain

Areas.

Physical verification of stock of stores & spares

as on 31st March 2015 of Regional Stores and

Charged off Stores has been carried out by an

independent firm of Chartered Accountants /

Cost Accountants appointed for this purpose

(b) In our opinion and according to the

information and explanation given to us, the

procedure of physical verification of inventories

followed by the management is reasonable and

adequate in relation to the size of the Company

and nature of its business. However, procedure

for identification of obsolete items of inventory

requires improvement.

(c) The company is maintaining proper

records of inventory. In accordance with

Company’s policy as set out in Para 6 of

Accounting Policies (Note 33), no adjustment is

made in the books of accounts in case the

difference between books stock of coal and

volumetrically measured physical stock of coal

is within (+/-) 5%, due to approximate nature of

the method of measurement. ‘

In respect of few items found short or

excess in some Area during physical

verification of Fixed Assets as on

31.03.2003, Reconciliation for some inter

area adjustments are under progress and

on completion, adjustment if required, shall

be made.

As per the policy of CIL, the physical

verification has been done.

The certification of production for the year

2014-15 and book stock as on 31st March,

2015 has since been completed in all

Areas..

Provision against identified obsolete items

has been taken in the accounts. Further

Identification of obsolete items being a

continuous process is under progress.

Closing stock of coal is measured

volumetrically and converted to weight

(tonne) by applying the identified

conversion factor. To take care of the

inherent approximation error of volumetric

measurement and subsequent conversion

thereof to weight by applying a

mathematically determined conversion

factor, the variance of (+/-) 5% between



97

As informed to us, in case of other inventories

the discrepancy noticed, if any, on physical

verification as compared to the book/ records

were not material in relation to the operation of

the company and have been duly dealt with.

(iii) The company has not granted any loans,

secured or unsecured to companies, firms, or

other parties listed in the Register maintained

under section 189 of the Companies Act, 2013

(iv) In our opinion and according to the

information and explanations given to us, there

are adequate internal control systems

commensurate with the size of the Company

and the nature of its business with regards to

purchase of inventory, fixed assets and for the

sale of goods and services.

We have not observed continuous major

weakness in internal control system during the

course of the audit except that in under

mentioned cases the internal control needs to

be strengthened:

a. Follow-up of old advances to suppliers,

adjustment of cer tain advances against

corresponding liability after receipts of items in

few areas.

b. Non receipt of confirmations of outstanding

balances from customers, suppliers and

contractors and timely reconciliation of balances

in case of difference.

(v) The Company has not accepted any

deposits from the public within the meaning of

Sections 73 to 76 or any other relevant

provisions of the Companies Act, 2013 and the

rules framed there-under.

(vi) Maintenance of cost records under section

148(1) has been made mandatory by the Central

Government. As per information and explanation

book stock and physical stock is ignored

as per Accounting Policy of the Company.


comments


comments

Continuous monitoring for adjustment of

advances, linking of advances with liability/

sundry creditors shall be done.

Reconciliation with all power houses is

complete which constitute 90% of our

customer and all other parties were

requested to send the confirmation of the

balances, which are awaited.


comments

The cost records as required by the

notification are being maintained by

respective areas



98

provided to us, the required accounts and records

are being maintained at respective Area offices.

We have however not made detailed examination

of such record.

(vii) (a) According to the information and

explanations given to us, the Company is

generally regular in depositing undisputed

statutory dues including Provident Fund,

Employees’ State Insurance, Income-Tax,

Sales-Tax, Wealth Tax, Service Tax, Duty Of

Customs, Duty Of Excise, Value Added Tax, Cess

and other statutory dues with the appropriate

authorities. According to the information and

explanation given to us, no material undisputed

arrears of statutory dues were outstanding as on

31st March, 2015 for a period of more than six

months from the date they become payable.

(b) According to the records of the Company, the

dues of income tax or sales tax or wealth tax or

service tax or duty of customs or duty of excise

or value added tax or cess which have not been

deposited on account of disputes and the forum

where the dispute is pending are given in

Annexure 1 attached herewith.

(c) No amount is required to be transfer in investor

education and protection fund in accordance with

the relevant provisions of Companies Act and

rules made thereunder

(viii) The Company neither has accumulated

losses and nor it has incurred any cash losses

during the financial year covered by our audit or

in the immediately preceding financial year.

(ix) This clause is not applicable to Company, as

it has not taken any loans from any financial

institutions or bank nor has issued any

debentures.

The company is regular in depositing the

statutory dues with the appropriate

authorities in time


comments


comments


comments



99


(x) According to the information and explanations

given to us, the Company has not given any

guarantee for loans taken by others from banks/

financial institutions.

(xi) According to the information and explanations

given to us, the Company has not borrowed any

term loan.

(xii) To the best of our knowledge & belief and

according to the information & explanations given

to us, no material fraud on or by the Company

has been noticed or reported during the course

of our audit


Chartered AccountantsCA. Sudhir Surana

Partner

Membership No. 43414


Nagpur,

Jun 05, 2015


comments


comments


comments


100

Annexure – I

Statement of Disputed Statutory Dues ref. to in Annexrespect of Western Coalfields Ltd., Nagpur

Details of Disputed Liabilities are given below:-

Name of

StatuteForum where dispute is pending Nature of dues

Period to which the

amount relates

Sum ofAmount

Bombay SalesTax Act 1959

Appellate Authority Nagpur Sales Tax 2002-03 & 2003-04 404509000

S T Tribunal Mumbai Sales Tax 1993-94 & 1994-95 21050000

Sales Tax Tribunal Nagpur Entry Tax on Vehicle Mar-04 59000

Central ExciseDepartment

Appellate Tribunal Mumbai & NewDelhi.

Central Excise 2013-1426791250813

Commissioner of Central ExciseNagpur

Wrong Availment ofCENVAT Credit

2012-1326643000

Central Sales TaxAct 1956

A.C./CTO Jabalpur Central Sales Tax 2008-09 855190

Addl. Comm. Jabalpur Central Sales Tax 1998-99 & 2004-05 480606

Appellate Authority Nagpur Sales Tax 2002-03 & 2003-04 256740000

Appellate Board Central Sales Tax2005-06,2006-07,2007-08 & 2009-10 28219038

S T Tribunal Mumbai Sales Tax1989-90, 1994-95 &1997-98 9336000

Income Tax Act1961

CIT (Appeal) Nagpur Corporate Tax2005-06, 2006-07, 2009-10, 2010-11, 2011-12,2012-13 & 2013-14 6062519000

ITAT Nagpur

Perks on Income Tax 2004-05 to 2006-07 22156000

TDS2007-08,2008-09, 2009-10 & 2010-11 7376000

TDS on payment toDoctors / Hospitals

2006-07, 2007-08, 2008-09 & 2009-10 2582579000

Land Revenue

District Collector Yavatmal.

Enhanced LandCompensation

2004-0561530000

Surface Rent 1972-73 to 2005-06 4208000

High Court Nagpur Non Agricultural Tax2002-03, 2003-04 &2004-05 & More than 5years old 684441000

LP at Mumbai High Court NagpurBench

Non Agricultural Tax 1972-73 to 2003-04179932000

M.P.State Govt.Sales Tax Dept.

For revision With Dy Comm.Bhopal

Central Sales Tax 2000-015391

Hon ble High Court Jabalpur’ Central Sales Tax 2000-01 1578431

MaharashtraEntry Tax Act

High Court Nagpur Entry Tax on HEMM1.4.1988 to 31.10.1996,2005-06, 2007-08 &2008-09 1170398000

MaharashtraLand RevenueCode

High Court Nagpur Non Agricultural Tax 2005100389000

MineralConcessionRules 1960

SLP pending with Hon'bleSupreme Court

Cess on Royalty of Coal 1991-92604133.23

MineralValidation Act1992

SLP pending with Hon'bleSupreme Court

Cess on Royalty 1982-83 & 1991-92 23874918.13

Cess on Royalty and Cesson storage of coal

1982-83 to 1989-903864874

Cess on Storage Coal 1991-92 2167294.52

MSEB MAD Cess 1991-92 1402376.95

MP CommercialTax Act 1994

Addl. Comm. Jabalpur Commercial Tax2004-05,2009-10,2010-11, 2011-12 & 2012-13 7803804

Appeal Dy. Comm. Bhopal

Entry Tax1998-99, 2001-02,2005-06, 2011-12 & 2012-13 3163287

State Sales Tax VAT

1986-87,1998-99, 2001-02,2003-04, 2005-06,2006-07, 2007-08, 2008-09,2009-10,2010-11,2011-12 & 2012-13 35756581

MP Entry Tax ActAddl. Comm. Jabalpur Entry Tax

2009-10 2011-12 & 2012-13 38407849

Commissioner( Appeals) Entry Tax 2007-08 3121143

MP State Govt.Sales Tax 2002

Appellate Board VAT 2008-09 & 2009-10 4202626

Appellate Board Bhopal MP VAT2000-01, 2002-03,2004-05,2006-07 & 2008-09 24137386

MP State Govt.Sales Tax 2002

Commissioner( Appeals) VAT 2006-07 3903341

D.C. Chhindwara VAT 2005-06 77161

District Collector Chandrapur. Surface Rent 1972-73 to 2005-06 31362000

MPGATSVA(NON MIN.LEASE AREACLAIM)

Hon ble High Court Jabalpur’ MPGATSVA Oct 2005-Dec 2012

628772447

MPGATSVA2005

Hon ble High Court Jabalpur’ Tax & PenaltyOct 2005-March 2013 &April 13 to March 15’’ 404249765

I Appeal (Commissioner) Tax & Penalty 2011-12 & 2012-13 26492237

Income Tax Appellate Tribunal Tax & Penalty 2008-09 870652000

Rent Act

District Court Nagpur Surface Rent 2001 181000

Dy. Commissioner Surface Rent 2008-09 & 2010-11 3424495

Dy. Commissioner Surface Rent2005-06, 2008-09 &2010-11 6867326

MOC New Delhi Surface Rent More than 5 years old 9757000

MSTT Mumbai Surface Rent2001-02, 2004-05,2005-06,2006-07, 2007-08 &2008-09 1963148000

Grand Total 42513647514


101


102


103


104


105


106


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108


WESTERN COALFIELDS LIMITED(A MINI RATNA COMPANY)

(A Subsidiary of Coal India Limited)

BALANCE SHEET AS AT 31ST MARCH, 2015

Note No As at As at31/03/2015 31/03/2014

I EQUITY AND LIABILITIES(1) Shareholders’ Fund

a) Share Capital 1 297.10 297.10b) Reserves and Surplus 2 3,264.19 3,229.39c) Money Received against Share warrants - -

3,561.29 3,526.49(2) Share Application money pending allotment - -(3) Non-Current Liabilities

a) Long Term Borrowings 3 - -b) Deferred Tax Liabilities (Net) - -c) Other Long Term Liabilities 4 6.45 4.16d) Long Term Provisions 5 4,121.63 3,783.89

4,128.08 3,788.655) Current Liabilities

a) Short Term Borrowing 6 - -b) Trade Payables 7 106.60 84.14c) Other Current Liabilities 8 1,849.76 1,704.19d) Short Term Provisions 9 1,103.60 850.92

3,059.96 2,639.25Total 10,749.33 9953.79

II ASSETS(1) Non-Current Assets

(a) Fixed Assets i) Tangible Assets - Gross Block 10A 4,366.19 4,070.14 Less : Depreciation, Impairment & Provisions 2,755.18 2,579.57 Net Carrying Value 1,611.01 1,490.57

ii) Intangible Assets - Gross Block 10A 543.51 555.43 Less : Depreciation, Impairment & Provisions 432.89 437.72 Net Carrying Value 110.62 117.71

iii) Capital Work-in-Progress 10B 55.25 43.75 iv) Intangible Assets under Development 10C 363.86 292.13

(b) Non-Current Investments 11 - 48.14(c) Deferred Tax Assets (Net) 464.13 439.04(d ) Long Term Loans & Advances 12 88.18 59.90(e) Other Non-Current Assets 13 0.58 -

(2) Current Assets(a) Current Investments 14 137.31 312.20(b) Inventories 15 757.11 743.07(c) Trade Receivables 16 672.92 468.93(d) Cash & Bank Balance 17 5,138.03 4,626.81(e) Short Term Loans & Advances 18 988.19 991.40(f) Other Current Assets 19 362.14 320.14

8,055.70 7,462.55

Total 10,749.33 9,953.79

Note: Contingent Liabilities and Commitments (to the extentnot provided for) 34 A 5728.73 4468.60Significant Accounting Policies 33Additional Notes on Accounts 34The Notes referred to above form an integral part of Balance Sheet

(` crores)

Place : Nagpur

Date : 23rd May, 2015

CA. A M MARATHE RAMEHER RUPAK DAYAL R.R. MISHRAGeneral Manager (Finance) Company Secretary Director (Personnel) Chairman-cum-Managing Director

(DIN-05105263) (DIN-05103300)

As per our report of even date

FOR V.K. SURANA & CO

Chartered Accountants (FRN 110634 W)

CA. SUDHIR SURANA PARTNER

(M.No.43414 )

109




PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ON 31ST MARCH, 2015

INCOME Notes For the Year For the Year

ended 31.03.15 ended 31.03.14

(I) Revenue From Operations 20A Sale of Coal, coke etc. 9,652.74 8,563.64

Less:- Excise Duty 505.42 454.08 Other Levies 1,821.93 1,495.73Net Sales 7,325.39 6,613.83

B Other Operating Revenue 244.87 174.77Less: Excise Duty 12.49 8.45 Other Levies 9.25 6.24Net Other Operating Revenue 223.13 160.08Revenue from Operations (A+B) 7,548.52 6,773.91

II. Other Income 21 429.12 473.81III. Total Revenue (I+II) 7,977.64 7,247.72IV. EXPENSES

Cost of Material Consumed 22 1,149.93 1,143.82Purchase of Stock-in-trade - -Change in inventories of finished goods work inprogress and Stock in trade 23 (0.63) (84.15)Employee benefit expenses 24 4,454.04 4,241.11Power & Fuel 309.72 329.95Corporate Social Responsibility 25 20.15 23.95Repairs & Maintenance 26 64.34 51.12Contractual Expenses 27 708.83 604.97Finance Costs 28 - 2.26Depreciation/amortization/Impairment 236.07 192.23Provisions 29 210.69 116.49Write off 30 - -Overburden Removal Adjustment 15.97 47.61Other Expenses 31 263.79 255.80

Total Expenses 7,432.90 6,925.16V. Profit/(Loss) before Prior Period,

exceptional and extraordinary items and tax (III-IV) 544.74 322.56VI. Prior Period Adjustment { charges/ (Incomes) } 32 (0.05) (3.30)VII. Exceptional Items - -VIII. Profit/(Loss) before extraordinary items and tax (V-VI-VII) 544.79 325.86IX. Extraordinary Items { charges/ (Incomes) } - -X. Profit/(Loss) before Tax (VIII-IX) 544.79 325.86XI. Less : Tax Expense

- Current year 242.33 151.39 - Deferred Tax (56.34) 139.40 - Earlier years (including Deferred Tax � 58.36 crores) 45.65 (188.52)

XII. Profit/(Loss) for the period fromcontinuing operations ( X-XI) 313.15 223.59

XIII. Profit/(Loss) from discontinuing operations (0.01) (0.01)XIV. Tax expenses of discontinuing operations - -XV. Profit/(Loss) from discontinuing operations

(after tax) ( XIII-XIV) (0.01) (0.01)XVI. Profit/(Loss) for the period ( XII+XV) 313.14 223.58XVII. Earning per equity share (in � )

(Face Value of � 1000/- per share) (1) Basic 1,053.99 752.54 (2) Diluted 1,053.99 752.54Significant Accounting Policies 33Additional Notes on Accounts 34The Notes referred to above form an integral part of Statement of Profit and Loss

(` crores)

Place : Nagpur



(DIN-05105263) (DIN-05103300)





(M.No.43414 )

110




CASH FLOW STATEMENT FOR YEAR ENDED ON 31ST MARCH, 2015

31/3/2015 31/3/2014

A) CASH FLOWS FROM OPERATING ACTIVITIESNet Profit before taxation and extraordinary items 544.79 325.86Adjustments for:Depreciation/amortization/Impairment 236.69 191.73Foreign Exchange Fluctuation - 9.00Interest Income (365.60) (415.95)Dividend Received from Mutual Fund (32.16) (26.57)OBR Adjustment 15.97 47.61Finance Cost - 2.26Provisions made during the year 210.69 131.82(Profit)/Loss on Sale of Assets (2.93) (1.12)Operating profit before working capital changes 607.45 264.64

(Increase)/Decrease in Trade Receivables (208.09) 3.02(Increase)/Decrease in Inventories (14.32) (76.68)(Increase)/Decrease in Loans & Advances 163.78 167.56Increase/(Decrease) in Trade & Other Payable 469.21 (67.55)Cash generated from operations 1018.03 290.99Direct Taxes paid (Net) (460.42) 86.61Loss from Discontinued Operations (0.01) (0.01)Cash flow before Extraordinary Items 557.60 377.59

Extraordinary Items - -Net cash flow from Operating Activities 557.60 377.59

B) CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Fixed Assets (518.79) (287.67)Proceeds from Sale of Assets 8.73 4.36Change in Non-Current Investments 32.09 32.09Investment in Mutual Fund 190.94 137.94Interest Received 365.60 415.95Dividend Received from Mutual Fund 32.16 26.57Change in Other Bank Balance (Fixed Deposits) (350.30) (493.98)Net cash flow from investing activities (239.57) (164.74)

C ) CASH FLOWS FROM FINANCING ACTIVITIESProceeds from Long Term Borrowings - -Repayment of Long Term Borrowings - (93.92)Finance Cost - (2.26)Dividend Paid (including Dividend Distribution Tax) (157.11) (227.67)Net cash used in Financing Activities (157.11) (323.85)

NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS 160.92 (111.00)CASH & CASH EQUIVALENTS AT BEGINNING OF PERIOD 692.17 803.17CASH & CASH EQUIVALENTS AT END OF PERIOD 853.09 692.17

Note:1. Cash & Cash Equivalents ( Maturity upto 3 Months) 853.09 692.17 Other Bank Balances (considered in investing activities) 4284.94 3934.64Total (Refer Note 17) 5138.03 4626.812. Purchase of Fixed Assets includes movements of Capital Work-in-progress between the beginning and the end of the period.

(` crores)

FOR THE YEAR ENDED ON

Place : Nagpur



(DIN-05105263) (DIN-05103300)





(M.No.43414 )

111


As at As at31-03-15 31-03-14

NOTE - 2

NOTES TO BALANCE SHEET

NOTE - 1

SHARE CAPITALAs at As at

31/3/2015 31/3/2014

(` crores)

Authorised share capital

(i) 8000000 Equity Shares of ̀ 1000/- each 800.00 800.00

800.00 800.00Issued, Subscribed and fully Paid-up

(i) 1800019 Equity Shares of ̀ 1000/- each fully paid up in cash 180.00 180.00

(ii) 1170981 Equity Shares of ̀ 1000/- each allotted as fully paid

up for funds adjusted against purchase consideration other than cash 117.10 117.10

297.10 297.10

1 Shares in the company held by each shareholder holding more than 5% Shares

Name of Shareholder No. of Shares Held ( Face value of ̀ 1000 each) % of Total SharesCoal India Ltd - Holding Company 2971000 100

2 During the year there is no change in the number of shares issued.

3 Coal India Ltd - Holding Company has got 100% voting rights

Capital Reserve As per last Balance Sheet 0.00 0.00 Add: Addition during the year - - Less: Adjustment During the year - -

0.00 0.00Capital 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 46.10 48.76 Add: Addition during the year - 21.14 Less: Transfer to General Reserve 46.10 23.80

- 46.10Sustainable Development Reserve As per last Balance Sheet 0.91 0.35 Add: Addition during the year - 0.72 Less: Transfer to General Reserve 0.91 0.16

- 0.91General Reserve As per last Balance Sheet 1,131.81 1,074.31 Add: Transfer from Profit & Loss Account 31.31 33.54 Add: Transfer from CSR & SD reserve 47.01 23.96

1,210.13 1,131.81Surplus in Statement of Profit & Loss As per last Balance Sheet 2,050.57 2,039.50 Less: Adjustment for Depreciation (52.68) - Profit/(Loss) after Tax During the Year 313.14 223.58 Profit/(Loss) available for Appropriation 2,311.03 2,263.08APPROPRIATIONReserve for Foreign Exchange Transaction - -Transfer to General Reserve 31.31 33.54Transfer to CSR Reserve - 21.14Transfer to SD Reserve - 0.72Interim Dividend - -Proposed Dividend on Equity Shares (@ ‘. 633/share) 188.06 134.29Corporate Dividend Tax 37.60 22.82

2,054.06 2,050.57Miscellaneous Expenditure(to the extent not written off)Preliminary Expenses

- -Pre-Operational Expenses - -

- -Total : 3,264.19 3,229.39

General Reserve:Opening balance of CSR & SD reserve has been transferred to General reserve, as per Schedule III of Companies Act, 2013.

During the year an amount (10% of PAT) of ̀ . 31.31 crores (`33.54 crores) is transferred to General Reserve.

(` crores)

112


As at As at

31-03-15 31-03-14

- -

NOTE - 3

LONG TERM BORROWING

NOTES TO BALANCE SHEET (CONTD.)

Term Loan

Export Development Corp., Canada - -

Liebherr France S.A., France - -

Loan From Coal India Limited - -

Total - -

(` crores)

113



NOTE - 4

OTHER LONG TERM LIABILITIES

As at As at

31/3/2015 31/3/2014

Shifting & Rehabilitation Fund

Opening Balance - -

Add: Interest from Investment of the fund - -

Add: Contribution Received - -

Less : Amount utilised - -

- -

Trade Payable - -

Security Deposits 6.45 4.16

Others ( Specify Nature) - -

Total 6.45 4.16

(` crores)

114



NOTE - 5

LONG TERM PROVISIONS

As at As at31/3/2015 31/3/2014

For Employee Benefits - -

- Gratuity - 10.72

- Leave Encashment 422.48 389.78

- PRMBS 117.62 121.78

- Other Employee Benefits 283.92 262.53

For Foreign Exchange Transactions (Marked to Market) - -

OBR Adjustment Account 2,329.91 2,313.94

Mine Closure 967.70 695.86

For Others - -

TOTAL

4,121.63 3,783.89

Note:

Details of OBR ADJUSTMENT ACCOUNT as above

A OBR Advance stripping

as per last accounts 1,622.10 1,473.13

Add: expenditure during the year 1,759.88 1,639.06

Written off/adjusted 1,657.64 1,490.09

TOTAL (A) 1,724.34 1,622.10

B Ratio Variance

as per last accounts 3,936.04 3,739.46

Written off/adjusted 118.21 196.58

TOTAL (B) 4,054.25 3,936.04

C Total (A-B) 2,329.91 2,313.94

a) Gratuity Liability under payment of Gratuity Act, is based on actuarial valuation certified by Actuary. which as on 31st

March, 2015 comes to ` 2247.25 crores (` 2218.94 crores). After considering the fund available with the trustees of the

Gratuity fund, an additional expenditure of ` 109.90 crores (` 15.97 crores) is debited to Statement of Profit & Loss.

b) Actuarial valuation for Leave Encashment has been made and liability assessed by actuary is ̀ 464.43 crores (` 427.53

crores) as on 31st March, 2015. As a result an amount of ̀ 36.90 crores (` 26.15 crores) has been charged to statement

of Profit & Loss. As certified by Actuary expected payment within next 12 months is ` 41.95 crores, the same is shown

under Note 9

c) Actuarial valuation of LLTC/LTA, Settlement Allowance, Accidental Insurance Cover, Life Cover and Fatal Mine Accident

has been made by the Actuary for an amount of ̀ 127.97 crores (` 132.83 crores). Accordingly an amount of ̀ 4.86 crores

(` 7.47 crores) has been credited to the statement of Profit and Loss.

d) i) Actuarial Valuation for Post Retirement Medical Benefit for executive employees has been made by Actuary as on 31st

March, 2015 for an amount of ̀ 117.23 Crores (For employees retired prior to 1.1.2007, ̀ 21.04 Crores, for employees retired

after 1.1.2007, ̀ 41.33 Crores and for existing employees ̀ 54.86 Crores). Accordingly, a net amount of ` 13.72 Crores is

withdrawn after adjustment of amount deposited by retired employees to avail medical benefits.

ii) Post Retirement Medical Benefit for Non-executive employees has started from 2014-15. An amount of ̀ 0.32 crores is

provided after adjustment of deposit from retired employees ̀ 0.07 crores. Actuarial liability for the same as on 31.03.2015

is ` 0.39 crores.

(` crores)

115



NOTE - 6

SHORT TERM BORROWING

As at As at

31/3/2015 31/3/2014

Loan From Bank - -

Loans Repayable on Demand

Balance with Coal India Limited & other Subsidiaries of Coal India Limited - -

Overdraft against Pledge of Term Deposit - -

Other Loans and Advances

Deferred Credits - -

Total : - -

TRADE PAYABLES As at As at31-03-15 31-03-14

Sundry Creditors For Revenue Stores 106.60 84.14

TOTAL 106.60 84.14

NOTE - 7

( Refer additional Note WD - 4)

a) Amount due to Small Scale Industries amounting to more than ` 1 lakh and outstanding for more than 30 days is ` NIL

( ` NIL )

b) The applicability of Micro, Small and Medium Enterprises Development Act, 2006 (MSMEDA, 2006) to the company for the

purpose of disclosure and other requirements, could not be ascertained pending information from the suppliers.

c) Sundry Creditors to the tune of ` 12.33 Crores (` 12.68 Crores) remain unadjusted for more than three years pending

reconciliation.

NIL

(` crores)

116


Current Maturities of Long Term Borrowings

Term Loan From IBRD- Through CIL (Holding Company) -

Term Loan From JBIC- Through CIL (Holding Company) -

Term Loan From Export Development Corp., Canada -

Term Loan

From Liebherr France S.A., France - -

Loan From Coal India Limited - -

Surplus Fund from Coal India - -

Current Account with Subsidiaries - -

For Capital (including Stores) 27.81 23.08

FOR EXPENSES :Salary Wages & Allowances 346.81 347.37

Power & Fuel 38.45 40.04

Others 193.83 182.11

579.09 569.52STATUTORY DUES :Central Sales Tax 3.56 3.53

Sales Tax/VAT 20.04 22.98

Provident Fund & Pension Fund 72.15 67.88

Central Excise Duty (9.70) (19.95)

Royalty & Cess on Coal 81.05 95.96

Stowing Excise Duty 10.98 11.42

Clean Energy Cess 73.92 37.38

Other Statutory Levies 32.22 35.97

284.22 255.17Income Tax Deducted at Source 17.51 33.32

Security Deposit 75.95 64.31

Earnest Money 41.29 31.45

Advance & Deposit from customers / others 613.77 548.16

Interest Accrued and due on Borrowings - -

Interest Accrued but not due on Borrowings - -

Cess Equilisation Account - -

Current Account with IICM - -

Unpaid Dividend - -

Ex-Owner Account - -

Advance Deposit other Pre-Nationalisation - -

Liability for CISPA 0.99 1.06

Others Liabilities 209.13 178.12

TOTAL 1,849.76 1,704.19

1 Sales Tax/VAT, Central Excise Duty are shown above is Net of Credit Receivables

2 During the period recovery of electricity charges @ 1% of basic pay has been made from the salary/wages of non-executive

employees. This recovery has been challenged by the employees before the Calcutta High Court and as per the directives of

the Court, the amount so recovered has been deposited with the State Bank of India, Nagpur. As per directives of CIL and

pending settlement with the employees the same has been kept separately under FC 470120 to the tune of ̀ 46.01 Crores.

During the year of 2014-15, this deposit has earned an interest of ̀ 3.12 crores (` 3.44 crores) and the same is treated as

liability. There is a contingent liability against the company to the extent of excess interest, if any, awarded by the Court on

final disposal of the case.

3 Outstanding capital liability for civil works / Plant & Machinery completed in different Areas include an amount of ` 2.99

Crores (` 2.25 Crores) outstanding for more than three years.

4 Deductions made from employees’ remuneration in 1996-97 towards Union Fund (`0.78 Crores) and Relief Fund (`0.39 Crores)

continue to be kept in separate deposit accounts as the matter is sub-judice. The interest earned on these deposits upto 31st

March, 2015 is ` 2.16 Crores (C.Y ̀ 0.21 Crores) and ‘ 0.99 Crores (C.Y. ̀ 0.12 Crores) respectively. The deduction together

with the interest is appearing under the head Other Liability.

5 Liability for CISPAAs per instruction from CIL, liability for Coal India Sports Promotion Association (CISPA) is be provided at ` 0.25 paise per

tonne of coal production of the previous year. Accordingly, during the year an amount of ` 0.99 crores is provided.

NOTE - 8


OTHER CURRENT LIABILITIES As at As at

31-03-15 31-03-14

117


NOTE - 9


SHORT TERM PROVISIONS As at As at

31/03/2015 31/03/2014

For Employee Benefits

- Gratuity 105.95 10.72

- Leave Encashment 41.95 37.75

- PPLB 175.62 158.46

- PRP 490.55 418.54

- Other Employee Benefits - -

For Proposed Dividend 188.06 134.29

For Corporate Dividend Tax 37.60 22.82

Provision for Income Tax - -

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

For Excise Duty on Closing Stock of Coal 63.87 68.34

For Others - -

TOTAL 1,103.60 850.92

(` crores)

NOTE - 10 AFIXED ASSETS

( ` Crores)

PARTICULARSAs on

01.04.2014

Addition

during the

period

Adj./Sales

/Transfer

during the

period

As on

31.03.2015

As on

01.04.2014

Addition

during the

period

Adj./Sales

/Transfer

during the

period

As on

31.03.2015

As on

01.04.2014

Addition

during the

period

Adj./Sales

/Transfer

during the

period

As on

31.03.2015

As on

31.03.2015

As on

31.03.14

(A).Tangible AssetsLand

(a) Freehold 95.04 4.94 2.63 102.61 - - - - - - - 102.61 95.04

(b) Land - others 229.75 301.04 (2.58) 528.21 137.71 14.62 0.02 152.35 - - - - 152.35 375.86 92.04

Building/Water

Supply/Road & Culverts 637.25 13.59 (1.03) 649.81 230.33 27.71 54.47 312.51 0.12 - - 0.12 312.63 337.18 406.80

Plant & Equipments 2,945.31 100.92 (126.09) 2,920.14 2,086.66 172.28 (95.56) 2,163.38 1.54 - - 1.54 2,164.92 755.22 857.11

Telecommunication 16.84 0.23 0.10 17.17 14.90 0.47 (0.04) 15.33 - - - - 15.33 1.84 1.94

Railway Sidings 29.72 0.46 - 30.18 25.95 1.31 0.13 27.39 - - - - 27.39 2.79 3.77

Furniture & Fixtures/

Office Tools &

Equipments/ Electrical

Fittings/ Fire Arms 34.03 2.02 (0.15) 35.90 28.91 1.14 0.64 30.69 - - - - 30.69 5.21 5.12

Vehicle 47.81 0.82 (2.15) 46.48 43.23 0.45 (2.03) 41.65 - - - - 41.65 4.83 4.58

Aircraft - - - - - - - - - - - - - - -

Development - - - - - - - - - - - - - - -

Assets taken on

Nationalisation 9.07 - - 9.07 9.06 - - 9.06 - - - - 9.06 0.01 0.01

TOTAL 4,044.82 424.02 (129.27) 4,339.57 2,576.75 217.98 (42.37) 2,752.36 1.66 - - 1.66 2,754.02 1,585.55 1,466.41

(B). Surveyed off

Assets 25.32 6.53 (5.23) 26.62 - - - - 1.16 - - 1.16 1.16 25.46 24.16

Total Tangible

Assets (A+B)

(As on 31.03.2015) 4,070.14 430.55 (134.50) 4,366.19 2,576.75 217.98 (42.37) 2,752.36 2.82 - - 2.82 2,755.18 1,611.01 1,490.57

Tangible Assets (As

on 31.03.2014) 3,950.81 217.95 (123.94) 4,044.82 2,524.36 169.94 (117.55) 2,576.75 1.65 0.01 1.66 2,578.41 1,466.41 1,424.80

Surveyed off Assets

(As on 31.03.2014) 22.29 6.27 (3.24) 25.32 - - - - 1.16 - - 1.16 1.16 24.16 21.13

Total Tangible Asset

(As on 31.03.2014) 3,973.10 224.22 (127.18) 4,070.14 2,524.36 169.94 (117.55) 2,576.75 2.81 0.01 - 2.82 2,579.57 1,490.57 1,445.93

Intangible AssetsComputer Software - - - - - - - - - - - - - - -

Development 505.10 11.64 (21.89) 494.85 305.42 16.44 (19.61) 302.25 95.88 0.86 (0.80) 95.94 398.19 96.66 103.80

Prospecting & Boring 50.33 - (1.67) 48.66 30.80 1.44 (3.20) 29.04 5.62 - 0.04 5.66 34.70 13.96 13.91

Total 555.43 11.64 (23.56) 543.51 336.22 17.88 (22.81) 331.29 101.50 0.86 (0.76) 101.60 432.89 110.62 117.71

Intangible Assets

(As on 31.03.2014) 542.23 26.55 (13.35) 555.43 329.28 17.76 (10.82) 336.22 100.12 4.02 (2.64) 101.50 437.72 117.71 112.83

a)

b)

c)

d) Land - others also includes Land acquired under Coal Bearing Areas Act, 1957 and Land Acquisition Act, 1894.

Company took over various assets from the Coal Mines Labour Welfare Organisation (since repealed) situated at various locations and Coal Mines Rescue Station at Pench, in the years 1984 and 1986 respectively, consequent to

decision by Government of India. These Assets have not been incorporated in the Accounts pending finalisation of purchase consideration thereof by the Central Government. Accounting adjustment would be made on final

determinationPlant and Machinery are shown net of Input Tax Credit claim of VAT and CENVAT credit receivable wherever applicable

GROSS BLOCK DEPRECIATION /AMORTISATION IMPAIRMENT LOSSTotal

Depreciation/

Impairment

Loss

NET CARRYING VALUE

Fixed Assets taken over by Company from Western Division of Coal Mines Authority of India Ltd, vested consequent to nationalisation of Coal Mines, appearing as "Assets taken over on Nationalisation” under the head 'Fixed

Assets', stood depreciated in the course of earlier years and are appearing in accounts at a total residual value of ` 0.01 crore only

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118

WESTERN COAL FIELDSLIMITED

(A subsidiary of Coal India Limited)

NOTE - 10 B

CAPITAL WORK-IN-PROGRESS

PARTICULARS As on

01.04.2014

Addition

during the

period

Adj./Sales/

Transferduring the

period

As on

31.03.2015

As on

01.04.2014

Addition

during the

period

Adj./Sales/T

ransferduring the

period

As on

31.03.2015

As on

01.04.2014

Addition

during the

period

Adj./Sales/

Transferduring the

period

As on

31.03.2015

As on

31.03.2015

As on

31.03.14

Tangible Assets

Building/Water

Supply/Road &

Culverts 12.79 14.22 (12.90) 14.11 - - 0.04 0.04 0.04 14.07 12.75

Plant & Equipments 18.04 4.68 (3.92) 18.80 - - 8.73 (0.76) 7.97 7.97 10.83 9.31

Railway Sidings - - - - - - - - -

Development - - - - - - - - -

Others 22.28 80.41 (71.09) 31.60 0.51 0.04 (0.24) 0.31 0.08 0.10 0.76 0.94 1.25 30.35 21.69

TOTAL 53.11 99.31 (87.91) 64.51 0.51 0.04 (0.24) 0.31 8.85 0.10 - 8.95 9.26 55.25 43.75

Tangible Assets(As on 31.03.2014) 49.44 99.40 (95.73) 53.11 0.42 0.09 - 0.51 8.44 0.41 - 8.85 9.36 43.75 40.58

a)

b)

c)

Inventory of Steel, Cement, Cables, Conveyors, etc. lying at year end are forming part of Capital Work-In-Progress.

Provision for Non-moving Capital Stores & Spares, not moved for 5 years is made as per company's accounting policy @ 50% and @ 100% for unserviceable, damaged and obsolete obsolete stores. During

the period an additional provision to the tune of 0.10 crores has been made. Thus the closing provision as on date stands at 0.18 crores` `

COST PROVISION IMPAIRMENT LOSS Total

Deprecia

tion/Impairment Loss

NET CARRYING VALUE

Provision Equivalent to Depreciation has been provided on Plant & Machinery lying in Stores (Pending capitalisation) for more than three years.The resultant impact in current period is ` 0.04 Crores( ` 0.09

Crores).

WE

ST

ER

N C

OA

LF

IELD

S L

IMIT

ED

119

NOTE - 10 C

INTANGIBLE ASSET UNDER DEVELOPMENT

PARTICULARS As on

01.04.14

Addition

duringthe

period

Adj./Sales/

Transferduring the

period

As on

31.03.2015

As on

01.04.14

Addition

duringthe

period

Adj./Sales/Transfer

during theperiod

As on

31.03.201

5

As on

01.04.14

Addition

during the

period

Adj./Sales/

Transfer

during the

period

As on

31.03.2015

As on

31.03.2015

As on

31.03.2014

Intangible Assets

Development 171.72 40.79 (3.37) 209.14 - - - - - 209.14 171.72

Prospecting & Boring 120.41 37.85 (3.54) 154.72 - 154.72 120.41

TOTAL 292.13 78.64 (6.91) 363.86 - - - - - - - - - 363.86 292.13

Intangible Assets

(As on 31.03.2014) 252.63 58.32 (18.82) 292.13 0.02 (0.02) - - - 292.13 252.61

COST PROVISION IMPAIRMENT LOSSTotal

Depreciation

/ Impairment

Loss

NET CARRYING VALUE

AN

NU

AL

RE

PO

RT

2014-1

5

120

121



NOTE - 11NON - CURRENT INVESTMENTS - quoted / Unquoted at Cost

(Refer additional Note No- 9 )

Face value per

shares/bonds/

security

current year/

(previous year) Rs.

Number of

shares/bonds/

securities current

year/

(previous year)

INVESTMENT :

The Bonds received on Securitization of dues from State Electricity Boards, from the State Governments of Maharashtra &

Madhya Pradesh with a lock-in-period of five years are treated as long term investments and are valued at cost unless there is a

permanent diminution in the value of investment. The year end balance as on 31.3.2015, is ̀ 32.09 crores. As the entire amount

will mature within 12 months, it is shown as current investment (Note- 14).

As at As at

31-03-15 31-03-14

TRADE INVESTMENTS (Unquoted)

Investments in Govt. Securities

8.5% Tax Free Special Bonds (Fully Paid up) :

(on securitisation of Sundry Debtors)

Major State-wise Break-up

UP - - - -

Haryana - - - -

Maharashtra - - - 29.55

(2,95,485) 1,000.00 - -

Madhya Pradesh - - - 18.59

Gujarat (1,85,865) 1,000.00 - -

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) - - - -

NON-TRADE - - - -

7.55% Non Convertible IRFC Tax Free Bonds 2021 Series- - - - -

Total : - 48.14

Aggregate of Unquoted Investment - 48.14

122


NOTE - 12


LONG TERM LOANS & ADVANCES As at As at31/3/2015 31/3/2014

The advances to suppliers/contractors and for capital works/mobilisation advances lying unadjusted since long are ̀ 2.34

Crores (` 1.53 Crores). Necessary provisions are appearing in the books of accounts for the same amount.

Due by the Companies in which directors of the companyis also a director/member

Due by the parties in which the Director(s) ofcompany is /are interested

CLOSING BALANCE

CURRENT

PERIOD

MAXIMUM AMOUNT

DUE AT ANY TIME DURING

CURRENTPERIOD

CURRENTPERIOD

PREVIOUSPERIOD

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

(` crores)

LOANSADVANCESFor Capital- Secured considered Good - -- Unsecured considered Good

.05 0.30- Doubtful 0.92 1.53

0.97 1.83Less : Provision for Doubtful Loans and Advances1 0.92 1.53

0.05 0.30For Revenue- Secured considered Good - -- Unsecured considered Good - -- Doubtful - -

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

- -Security Deposits- Secured considered Good - -- Unsecured considered Good - -- Doubtful - - - -Less : Provision for Doubtful Loans and Advances - -

- -Deposit for P&T, Electricity etc.- Secured considered Good - -- Unsecured considered Good 81.32 50.85- Doubtful 1.09 1.09

82.41 51.94Less : Provision for Doubtful Loans and Advances 1.09 1.09

81.32 50.85LOAN TO EMPLOYEES & OTHERSFor House Building- Secured Considered Good 6.59 8.48- Unsecured Considered Good - -- Doubtful - -

6.59 8.48For Motor Car and Other Conveyance- Secured Considered Good 0.22 0.27- Unsecured Considered Good - -- Doubtful - -

0.22 0.27For Others- Secured considered Good - -- Unsecured considered Good - -- Doubtful - -

-Less : Provision for Doubtful Loans and Advances - -

- -- -

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

- -TOTAL 88.18 59.90

123


NOTE - 13


OTHER NON-CURRENT ASSETS As at As at

31/3//2015 31/3/2014

Long Term Trade Receivable

- Secured considered good - -

- Unsecured considered good - -

- Doubtful - -

- -

Less Provision for bad and doubtful Trade Receivable - -

- -

Exploratory Drilling Work



- Doubtful - -

- -

Less Provision for bad and doubtful - -

Receivable for Mine Closure Expenses 0.58 -

Other Receivables



- Doubtful - -

- -

Less Provision for bad and doubtful Receivables - -

- -

TOTAL 0.58 -

Due by the Companies in which directors of the

company is also a director/member

Due by the parties in which the Director(s) of

company is /are interested

CLOSING BALANCE

CURRENT

PERIOD

MAXIMUM AMOUNT


CURRENTPERIOD

CURRENTPERIOD

PREVIOUSPERIOD

NIL NIL NIL NIL

NIL NIL NIL NIL

124



NOTE - 14

Mutual Fund:

As on 31st March, 2015 investement in Mutual Fund amounts to ` 105.22 crores, which includes ` 3.22 crores

dividend earned and re-invested.

125


INVENTORIES

(Valuation as per Accounting Policy No 6)

As at As at

31-03-15 31-03-14

NOTE - 15


Stock of Coal - Revenue Mines 661.50 663.48

Development Mines 6.99 -

668.49 663.48

Less : Provision 0.01 0.01

A Stock of Coal (Net) 668.48 663.47

Stock of Stores & Spares (at cost) 68.87 67.23

Stores -in -transit 9.78 4.72


B Net Stock of Stores & Spares (at cost) 64.46 58.04

C Workshop Jobs :

Work-in-progress and Finished Goods 15.63 13.02


Net Stock of Workshop Jobs 14.18 11.57

D Press :

Work-in-Progress and Finished Goods - -

E Stock of Medicine at Central Hospital - -

F Prospecting, Boring/ Development Expenditure/GR

- Coal Blocks meant for Sale 9.99 9.99

Total ( A to F ) 757.11 743.07

1 Provision - Stores:Provision for Non-Moving Stores & Spares, not moved for 5 years is made as per company’s accounting policy @ of 50% and

provision is made @ 100% for unserviceable, damaged and obsolete stores. During the year an additional provision to the tune

of ` 0.28 crores (` 0.19 crores) has been made. Thus the closing provision as on date stands at ̀ 14.19 crores (` 13.91 crores)

(` crores)

126


ANNEXURE TO NOTE - 15(Qty in '000 tonnes) ( value in crores)

Table:A Reconciliation of closing stock adopted in Account with Book stock as at the end of the year: 31/03/2015

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


1. (A) Opening stock as on 01.04.14 5,699.35 663.48 5,699.35 663.48

(B) Adjustment in Opening Stock - - - - - -

2. Production for the year 41,302.02 7,361.22 - - 41,302.02 7,361.22

3. Sub-Total (1+2) 47,001.37 8,024.70 - - 47,001.37 8,024.70

4. Off- Take for the year :

(A) Outside Despatch 41,349.44 7,325.40 - - 41,349.44 7,325.40

(B) Coal feed to Washeries 149.45 29.20 - - 149.45 29.20

(C) Own Consumption 6.25 1.74 - - 6.25 1.74

TOTAL (A) 41,505.14 7,356.34 - - 41,505.14 7,356.34

5. Derived Stock 5,496.23 668.36 - - 5,496.23 668.36

6. Measured Stock 5,529.87 660.81 - - 5,529.87 660.81

7. Difference (5-6) (33.64) 7.55 - - (33.64) 7.55

8. Break-up of Difference:

(A) Excess within 5% 21.79 2.87 - - 21.79 2.87

(B) Shortage within 5% 82.09 10.42 - - 82.09 10.42

(C ) Excess beyond 5% 0.87 0.13 - - 0.87 0.13

(D ) Shortage beyond 5% - - - - - -

9. Closing stock adopted 5,591.04 668.49 - - 5,591.04 668.49

in A/c.( 6-8A+8B)

Table B : Summary of Closing stock of Coal

127


NOTE - 16


Due by the Companies in which directors of the

company is also a director/member



CLOSING BALANCE

CURRENTPERIOD


PREVIOUS

PERIOD

CURRENT

PERIOD

PREVIOUS

PERIOD

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

As at As at

31/03/2015 31/03/2014

Debts outstanding for a period exceeding six months from the due date


- Unsecured considered good - 4.37

- Doubtful 77.93 72.54

77.93 76.91

Less Provision for bad and doubtful trade receivables 77.93 72.54

- 4.37

Other Debts


- Unsecured considered good 672.92 464.56

- Doubtful 5.88 7.17

678.80 471.73

Less Provision for bad and doubtful trade receivables 5.88 7.17

672.92 464.56

Total 672.92 468.93

a) During the year an amount of ` 4.10 Crores has been provided towards provision for Doubtful Debts. Total Provision for

Doubtful Debts as on 31st March, 2015 stands at ̀ 83.81 Crores (` ̀ 79.71 Crores).

b) Ministry of Power, Government of India had advised Madhya Pradesh Power Generation Corporation Ltd. (MPPGCL) to

securitise outstanding principal and interest up-to 30.09.2001 of ̀ 171.94 crores and ̀ 21.99 crores respectively. MPPGCL

had securitised ` 123.91 crores in 2003. For the balance of ̀ 70.02 crores MPPGCL had gone for Arbitration. Provision for

Doubtful debts for ̀ 62.08 crores is made and the balance ̀ 7.94 crores being interest has not been recongnised in the books.

(` crores)

128


NOTE - 17


CASH & BANK BALANCE As at As at

31/03/2015 31/03/2014

Cash & Cash Equivalents

Balances with Scheduled Banks

- SBI Dividend Account (unpaid/unclaimed dividend account) - -

- In Deposit Accounts with maturity upto 3 months 577.73 577.50

- In Current Accounts 271.84 113.00

- In Cash Credit Accounts - -

Balances with Non - Scheduled Banks

In Account with Banks outside India

Remittance - in transit 0.52 0.67

Cheques, Drafts and Stamps on hand 2.82 0.81

Cash in hand 0.18 0.19

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 3,317.22 3,249.70

- In Deposit accounts under Shifting and Rehabilitation

Fund Scheme with maturity more than 3 months - -

Deposit with Scheduled Banks under Mine Closure Plan Scheme 967.72 684.94

Total 5,138.03 4,626.81

Cash & Cash Equivalents ( Maturity upto 3 Months) 853.09 692.17

Other Bank Balances (Maturity more than 3 Months) 4,284.94 3,934.64

Total 5,138.03 4,626.81

1 Balance in Deposit Accounts includes deposits of ` 967.72 crores ( ` 684.94 crores) having maturity of more than 12

months from the date of deposit.

2 Balance in Deposits Accounts includes an amount of ` 4.73 crores (` 4.70 crores) held as Bank Guarantee.

3 Balance with Scheduled Banks, In Deposit Account includes deposit for:

a) Undisburded Wages 2.04 2.04

b) 1% Electricity charges recovered from Non-Executives 57.20 33.08

c) Court cases for Union Fund, Relief Fund, 5% MPGATSVA and Bank Guarantee 93.89 81.99

129


NOTE - 18NOTES TO BALANCE SHEET (CONTD.)

(` crores)

SHORT TERM LOANS & ADVANCES As at As at31/03/2015 31/03/2014

LOANSADVANCE( Recoverable in cash or in kind or for value to be received)ADVANCE TO SUPPLIERSFor Revenue - Secured considered good - - - Unsecured considered good 7.72 3.99 - Doubtful 1.98 1.97

9.70 5.96 Less Provision for bad and doubtful Advance 1.98 1.97

7.72 3.99ADV PAYMENT OF STATUTORY DUES SalesTax - Secured considered good - - - Unsecured considered good - - - Doubtful - -

- - Less Provision for bad and doubtful Advance - -

- -

Advance Income Tax / Tax Deducted at Source 1,931.23 1,700.43 Less : Provision for Income Tax 1,112.83 883.21

818.40 817.22Others - Secured considered good - - - Unsecured considered good - - - Doubtful - -

- - Less Provision for bad and doubtful Advance - -

- -Advance to Employees - Secured considered good - - - Unsecured considered good 94.23 99.28 - Doubtful 0.10 0.12

94.33 99.40 Less Provision for bad and doubtful Advance 0.10 0.12

94.23 99.28Current 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 - -

- -Claims Receivables - Secured considered good - - - Unsecured considered good 59.11 61.44 - Doubtful 6.04 6.05

65.15 67.49 Less Provision for bad and doubtful claim receivables 6.04 6.05

59.11 61.44Prepaid Expenses 8.73 9.47TOTAL 988.19 991.40

Due by the Companies in which directors of the company is also a

director/member



CLOSING BALANCE

CURRENTPERIOD

AT ANY TIME DURING

PREVIOUS

PERIOD

CURRENT

PERIOD

PREVIOUS

PERIOD

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

b) Provision for Income Tax: Provision for Income Tax for the year ended on 31st March 2015, ` 242.33 Crores (Previous Year :` 151.39 Crores) has been worked out as per the provisions of the Income Tax Act 1961 and on the basis of completed assessmentsof the Company.

130



OTHER CURRENT ASSETS As at As at

31/3/2015 31/3/2014

NOTE - 19 (` crores)

Interest Accrued

- Investment 2.05 3.41

- Deposit with Banks 96.66 97.55

- Others -

Ex Owner’s Account -

Other Advances 40.05 24.93

Less: Provision 1.31 1.31

DEPOSITS

Deposit for Customs Duty, Port Charges etc. - -

Deposit for Royalty, Cess & Sales Tax 6.45 4.98

Less: Provision - -

Others 0.04 0.45

Less: Provision -

Deposit with Coal India Limited 177.46 116.29

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

Less: Provision - -

Other Receivables 40.83 73.93


TOTAL 362.14 320.14

131


Revenue From Operations For the year Ended onFor the Year Ended on 31/03/2015 31/03/2014

Sales of Coal, coke etc 9,652.74 8,563.64

Less: Excise Duty 505.42 454.08

9147.32 8,109.56

Less : Other Levies

Royalty 982.38 893.52

Cess on Coal - -

Stowing Excise Duty 40.31 38.85

Central Sales Tax 46.07 48.87

Clean Energy Cess 384.57 192.57

State Sales Tax/VAT 368.6 321.92

'Other Levies - -

TOTAL OTHER LEVIES 1,821.93 1,495.73

Net Sales (A) 7,325.39 6,613.83

Facilitation charges of coal import - -

Subsidy for sand stowing and protective works 20.48 23.41

Loading and additional transportation charges 224.39 151.36

Less: Excise Duty 12.49 8.45

Other Levies 9.25 6.24

Net Other Operating Revenue (B) 223.13 160.08

Revenue From Operations (A+B) 7,548.52 6,773.91

NOTE - 20

NOTES TO STATEMENT OF PROFIT & LOSS

(` crores)

a) Gross sales as shown above is net of levies like entry tax, transit fees, MPGATSVA Tax, etc. levied in the state of Madhya Pradesh

amounting to ` 53.45 Crores ( ` 49.22 crores)

b) Net Revenue from operations includes ` 51.94 Crore, Performance Incentive Bills raised as per Fuel Supply Agreements (FSA). This

includes ` 45.02 crores for supplies made during the year and ` 6.92 crores for balance Delivery Order quantity for the year 2013-14,

lifted during 2014-15.

c) In respect of mines having cost plus agreement with MSPGCL for supply of coal, coal sales bills are initially raised only for 90% value

of coal plus 100% Duties and Taxes. Final bills (for balance value) are raised after receipt of acceptable quality analysis reports of

sampling at loading and unloading ends.Pending receipt of quality report the accounting of 10% balance value is done on provisional

basis whereby ` 25.73 Crores (` 18.95 crores) have been accounted for.

132


NOTE - 21

OTHER INCOME

31-03-15 31-03-14

NOTES TO STATEMENT OF PROFIT & LOSS

NOTE - 22

COST OF MATERIAL CONSUMED

31-3-2015 31-3-2014

Explosives 190.41 155.28

Timber 14.23 14.92

P O L 579.84 609.00

HEMM Spares 179.06 188.49

Other Consumable Stores & Spares 186.39 176.13

TOTAL 1149.93 1143.82

(` crores)

Income From Long Term InvestmentsDividend from Joint Ventures - -

Dividend from Subsidiaries - -

Interest from

Government Securities ( 8.5% Tax Free Special Bonds) ( Trade ) 2.04 4.77

Income From Current Investments

Dividend from Mutual Fund Investments 32.16 26.57

Interest from Government Securities ( 8.5% Tax Free Special Bonds) ( Trade ) 2.73 2.73

Income From Others

Interest (Gross)

From Deposit with Banks 339.19 357.95

From Loans and Advances to Employees 0.15 0.18

From Income Tax Refunds 2.80 18.89

From Coal India 13.69 12.32

Others 5.00 3.78

Apex Charges - -

Profit on Sale of Assets 4.14 1.48

Gain on Foreign exchange Transactions - -

Exchange Rate Variance - -

Lease Rent 0.05 0.02

Liability Write Backs - -

Guarantee Fees from Subsidiaries - -

Other non-operating Income 27.17 45.12

TOTAL 429.12 473.81

(` crores)

For the Year Ended on


133


NOTE - 23

NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.)

CHANGE IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE

31-03-15 31-03-14

Opening Stock of Coal 663.48 579.11

Add: Adjustment of opening stock - 5.44

Less: Deterioration of Coal 0.01 0.01

663.47 584.54

Less:

Closing Stock of Coal 661.50 663.48

Less: Deterioration of Coal 0.01 0.01

661.49 663.47

Change in Inventory of Coal 1.98 (78.93)

Opening Stock of Workshop made finished goods and WIP 13.02 7.80


11.57 6.35

Less:

Closing Stock of Workshop made finished goods and WIP 15.63 13.02


14.18 11.57

Change in Inventory of workshop (2.61) (5.22)

Press Opening Job

i)Finished Goods - -

ii)Work in Progress - -

- -

Less:

Press Closing Job

i)Finished Goods - -

ii)Work in Progress - -

- -

Change in Inventory of Closing Stock of Press

Job made finished goods and WIP - -

Change in Inventory of Stock in Trade (0.63) (84.15)

(A+B+C)

{Deccretion / (Accretion)}

(` crores)


134


Salary, Wages, Allowances & Benefits 3,257.63 3,195.35

Exgratia 201.19 173.09

PRP 71.84 62.12

Contribution to P.F. & Other Funds 376.27 367.52

Gratuity 109.90 15.97

Leave Encashment 112.42 91.69

VRS - -

Workman Compensation 1.46 1.12

Employee Welfare Expenses:

Medical Expenses for existing employees 62.63 54.93

Medical Expenses for retired employees (5.65) 21.64

Grants to Schools & Institutions 10.59 9.84

Sports & Recreation 2.53 2.49

Canteen & Creche 0.50 0.46

Power - Township 138.32 142.92

Hire charges of Bus, Ambulance etc. 13.79 13.18

Other Employee Benefits 100.62 88.79

TOTAL 4,454.04 4,241.11

NOTE - 24

EMPLOYEE BENEFIT EXPENSES(Refer additional Note No- 15 ) 31-03-15 31-03-14

Notes:a) As per instructions from CIL, provision has been created for Pension payable to executives at 3% of pay (Basic+DA) and

at 6.84% of pay (Basic+DA) for other Superannuation Benefits amounting to ` 26.22 Crores (` 25.48 crores).

b) As per instructions from CIL, provision for Post Superannuation Medical Benefit at 4% of Basic + DA for all executives(both

Board level & below Board Level) amounting to ̀ 10.66 crores ( ̀ .10.36 crores) has been provided.

c) The provision for Performance Linked Reward Scheme/ Productivity Linked Bonus Scheme for non-executives for the year

2013-14, was made at ̀ 31,500/- per employee. The said amount has increased to Rs. 40,000/-. Provision for the year 2014-

15, @ ̀ 40,000/- per employee has been made amounting to ` 175.62 crores.

As per instructions from CIL, the provision for Performance Related Pay for Executives has been made at ` 72.00 crores

(` 62.12 crores), including ‘ 0.16 crores (` NIL) capitlised for development mines


135


NOTE - 25

REPAIRS & MAINTENANCE

31-03-15 31-03-14

Building 25.29 14.54

Plant & Machinery 25.37 24.33

Others 13.68 12.25

TOTAL 64.34 51.12

NOTE - 26


WELFARE EXPENSES

31-03-15 31-03-14

CSR Expenses 20.15 23.95

TOTAL 20.15 23.95

Note:

As per Corporate Social Responsibility policy of CIL, the recommanded expenditure on CSR activities is @ 2% of the net profit

of the company for the three immidiate preceding financial year which comes to ̀ 7.97 crores or ` 2/- per tonne of coal production

of the previous year which is ` 7.95 crores, whichever is higher. Against this, CSR expenses for the year is ` 20.15 crores,

including ‘. 1.50 crores towards Swach Vidhyalaya Abhiyaan.

CONTRACTUAL EXPENSES

31-03-15 31-03-14

Transportation Charges :

- Sand 12.46 11.78

- Coal & Coke 212.50 168.71

- Stores & Others etc. 0.29 0.41

Wagon Loading 10.75 10.88

Hiring of P&M 374.14 343.60

Other Contractual Work 98.69 69.59

TOTAL 708.83 604.97

NOTE - 27

CSR Expenses 20.15 23.95

TOTAL 20.15 23.95

(` crores)

(` crores)

(` crores)




136


(A) PROVISION MADE FORDoubtful debts 4.10 -

Doubtful advances & Claims - -

Foreign exchange Transaction - -

Stores & Spares 0.28 0.94

Reclamation of Land/Mine Closure Expenses 207.02 116.08

Surveyed off Fixed Assets/Capital WIP - 0.48

Others - -

TOTAL (A) 211.40 117.50(B) PROVISION WRITTEN BACKDoubtful debts - 0.68

Doubtful advances & Claims 0.61 0.33

Foreign exchange Transaction - -

Stores & Spares - -

Reclamation of Land/Mine Closure Expenses - -

Surveyed off Fixed Assets/Capital WIP 0.10 -

Others - -

TOTAL (B) 0.71 1.01

TOTAL ( A-B ) 210.69 116.49

FINANCE COSTS31-03-15 31-03-14

NOTE - 28

NOTE - 29

PROVISIONS31-03-15 31-03-14

WRITE OFF31-03-15 31-03-13

Doubtful debts - -

Doubtful advances - -

Others - -

TOTAL - -

NOTE - 30


INTEREST EXPENSE

Deferred Payments - -

Bank Overdraft / Cash Credit - -

Interest on IBRD & JBIC Loan 0.89

CIL Fund Loan Interest - -

Interest to Subsidiaries - -

Others - -

TOTAL(A) - 0.89

OTHER BORROWING COSTS

Guarantee Fees on (IBRD & JBIC) Loan - 1.37

Other Expenses / Bank Charges - -

TOTAL(A) - 1.37

TOTAL (A+B) - 2.26

(` crores)

(` crores)

(` crores)




137



NOTE - 31

OTHER EXPENSES

31/3/2015 31/3/2014

(` crores)

Travelling expenses

- Domestic 19.31 19.06

- Foreign 0.05 0.12

Training Expenses 3.13 2.94

Telephone & Postage 2.41 2.41

Advertisement & Publicity 4.16 3.29

Freight Charges 0.17 0.21

Demurrage 2.88 3.56

Donation/Subscription 0.39 0.54

Security Expenses 38.22 30.56

Service Charges of CIL 20.54 19.86

Hire Charges 32.98 28.40

CMPDI Expenses 15.77 26.22

Legal Expenses 3.14 2.56

Bank Charges 0.17 0.16

Guest House Expenses - -

Consultancy Charges 6.31 3.46

Under Loading Charges 7.37 11.17

Loss on Sale/Discard/Surveyed of Assets 1.21 0.36

Auditor’s Remuneration & Expenses

- For Audit Fees 0.15 0.15

- For Taxation Matters - -

- For Company Law Matters - -

- For Management Services - -

- For Other Services 0.34 0.31

- For Reimbursement of Expenses 0.03 0.15

Internal Audit expenses etc 1.31 1.19

Rehabilitation Charges 24.75 23.97

Royalty & Cess 7.27 6.46

Central Excise Duty (5.07) 0.95

Rent 2.49 3.12

Rates & Taxes 20.63 13.78

Insurance 0.62 0.72

Loss on Exchange Rate Variance - 9.00

Lease Rent - -

Rescue/Safety Expenses 1.17 0.93

Dead Rent/Surface Rent 0.19 0.21

Siding Maintenance Charges 2.38 3.14

Land/Crops Compensation 0.06 0.48

Environmental Expenses 15.31 14.56

Tree Plantation 0.86 2.06

R & D Expenses 8.26 -

Misceleneous Expenses 24.83 19.74

TOTAL 263.79 255.80


138


PRIOR PERIOD ADJUSTMENT

31-03-15 31-03-14

NOTE - 32


(A) Expenditure

Sale of Coal & Coke - -

Other Income - -

Consumption of Stores & Spares - 1.58

Employees Remuneration & Benefits - -

Power & Fuel 0.66 -

Welfare Expenses - 0.59

Repairs -

Contractual Expenses 0.28 0.35

Other Expenditure - 1.14

Interest and other financial charges - -

Depreciation 0.62 -

TOTAL (A) 1.56 3.66

(B) Income

Sale of Coal & Coke 3.53

Other Income 0.99

Consumption of Stores & Spares - -

Employees Remuneration & Benefits - 1.91

Power & Fuel - -

Welfare Expenses - -

Repairs - -

Contractual Expenses - -

Other Expenditure 1.61 -

Interest and other financial charges - -

Depreciation 0.53

TOTAL (B) 1.61 6.96

TOTAL ( A-B ) (0.05) (3.30)

(` crores)


139



NOTE - 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 there under , 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. 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 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, resettlementcost and compensation in lieu of employment incurred for concerned displacedpersons.

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3.2 Plant & Machinery:

Plant & Machinery includes cost and expenses incurred for erection / installationand other attributable costs of bringing those assets to working conditionsfor their intended use.

3.3 Railway Siding:

Pending commissioning, payments made to the railway authorities for constructionof railway sidings are shown in Note 12 – “Long Term Loans & Advances” underAdvances for Capital.

3.4 Development:

Expenses net of income of the projects / mines under development are booked toDevelopment Account and grouped under Capital Work-in-Progress till the projects/ mines are brought to revenue account. Except otherwise specifically stated in theproject report to determine the commercial readiness of the project to yield productionon a sustainable basis and completion of required development activity during theperiod of constructions, projects and mines under development are brought torevenue considering the following criteria:

(a) From beginning of the financial year immediately after the year in whichthe project achieves physical output of 25% of rated capacity as perapproved project report, or

(b) 2 years of touching of coal, or

(c) From the beginning of the financial year in which the value of productionis 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 “Fiveyear” plan periods for formulation of projects, before it is written-off, except in the case ofBlocks identified for sale or proposed to be sold to outside agency which will be kept ininventory till finalisation of sale.

5.0 Investments:

Current investments are valued at the lower of cost and fair value as at the BalanceSheet date.Investments in mutual fund are considered as current investments.

Non-Current investments are valued at cost. However, when there is a decline, otherthan temporary, in the value of the long term investment, the carrying amount is reduced

to recognize the decline.

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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.

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:-

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

142


Earth Science Museum :- 19 yearsHigh volume respiratorydust samplers :- 3 yearsCertain equipment / HEMM :- 8 years, 7 years and 6 years as applicableSDL (equipment) :- 5 yearsLHD (equipment) :- 6 years

7.2 The residual value of all assets for depreciation purpose is considered as 5% of theoriginal 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 oneyear 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 month of addition / disposal, except on those assetswith one year useful life and nil residual value as mention under para 7.3, whichare fully depreciated in the year of their addition. These Assets are taken out fromthe Assets after expiry of two years following the year in which these are fullydepreciated.

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 leaseholdland is amortised on the basis of lease period of balance life of the project whicheveris earlier.

7.6 Prospecting, Boring and Development expenditure are amortised from the yearwhen the mine is brought under revenue in 20 years or working life of the projectwhichever is less.

7.7 Cost of Software recognized as intangible asset, is amortised on straight line methodover a period of legal right to use or three years, whichever is less; with a nilresidual value

8.0 Impairment of Asset:

Impairment loss is recognised wherever the carrying amount of an asset is in excess ofits recoverable amount and the same is recognized as an expense in the statement ofprofit 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 anindication that the impairment losses recognised for the asset no longer exist or havedecreased.

9.0 Foreign Currency Transactions:

9.1 Balance of foreign currency transactions is translated at the rates prevailing on theBalance Sheet date and the corresponding effect is given in the respective accounts.

Transactions completed during the period are adjusted on actual basis.

143


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.

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 Benefit 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.

144


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 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.

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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 Permissible limits of varianceOBR Of the Mine I II

% Quantum (in Mill.Cu. Mtr.)

Less than 1 Mill. CUM +/- 5% 0.03

Between 1 and 5 Mill. CUM +/- 3% 0.20

More than 5 Mill. CUM +/- 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.

146



NOTE-34

ADDITIONAL NOTES ON ACCOUNTS

1. BACKGROUND:

Western Coalfields Limited came into existence after Nationalization of Coal Mines andwas incorporated on 29th October, 1975 upon take-over of assets and liabilities as at1st November, 1975 vested with the Western Division of Coal Mines AuthorityLimited. The Company is 100% subsidiary of Coal India Ltd.

2. LONG TERM BORROWING:(Refer Note No-3)

SECURED LOAN : Nil. However, a charge has been created for ` 165 Crores oncurrent assets for securing working capital facility from CIL’s Consortium Banks as permodified Joint Deed of Hypothecation dated 01.09.2008. Further against approval ofCIL towards fund based facility, an amount for ` 30 Crores ( ̀ 30 Crores) was allocatedto WCL. This loan has, however, not been availed so far.

UNSECURED LOANS: Nil (Nil)

3. FIXED ASSETS : (Refer Note No-10A)

a) Since physical possession of land is obtained only after making payment to theland owners, Land acquired under various Acts including private negotiations,amounting to ` 305.98 Crores ( ` 44.17 Crores) are included in Fixed Assets, onthe basis of payments / compensation made as per approval of CompetentAuthorities pending final settlement .

b) DFD Plant and CBE Plant continue to remain inoperative during the year. LeaseholdLand of DFD Plant is being amortized over the lease period of 30 years. Otherassets of both these plants are carried in the books at a residual value of 5% oftheir cost.

c) Physical verification of Fixed Assets as on 31.03.2003 was done in all the Areas byfirms of Chartered / Cost Accountants and their reports were received. An outsideagency has done the reconciliation for inter-area and intra-area transfers and theirreport has been received during 2006-07. Most of intra-area and inter-areadiscrepancies were accounted in cases where items were physically identified. Forbalance some items the inter-area adjustment is under process.

d) Physical verification of Plant & Machinery valued at ̀ 1 lakh and above and Vehiclesis done by Management every year. However, Physical verification of assets valuingless than `1 lakh is done at Area / Unit level in a manner that all such assets atArea / Unit / Mine is covered once in three years as per policy of the Company.

e) Consequent to adoption of useful life as per Schedule II of the Companies Act,2013,read with significant Accounting policy (Ref Note-33 Point 7) the rate of depreciationare changed whereby useful life as per Companies Act,2013 translated into annual

147


rate of depreciation per annum. For assets acquired prior to 01.04.2014 and carriedin the Balance sheet, the depreciation has been considered as per Note-7 (a & b)of Schedule II of the Companies Act,2013 and as per which an amount of ̀ 52.68Crores (net of Deferred Tax credit of ` 27.12 Crores ) have been charged againstopening balance of retained earnings towards shortfall of depreciation consequentupon change in useful life of assets.

f) Ballarpur Area Hospital was constructed in 2.83 Hectres of Mouza Dhoptala ofTribal land at a cost of ` 1.57 Crores in the year 2000. Physical possession of thesaid land was taken after memorandum of settlement entered in January,1998 withland owners (tribal). However,the sale deed for the said land is yet to be executedpending permission from the Government.

g) Cost of Asset as well as provision for depreciation on Surveyed off Assets aretaken out of the Gross Block and provision for depreciation respectively and theresidual value at 5% of Book Value are shown as a separate line item as Surveyedoff assets under Tangible Asset (Note 10A). In case of premature survey off, thedifference between the WDV and residual value of 5% is charged to Statement ofProfit and Loss, as loss on surveyed off assets.

Surveyed off assets amounting to ̀ 26.62 Crores ( ̀ 25.32 Crores) which is valuedat 5% residual value is lying in Stores. Since in the opinion of management, theexpected realisable value is more than the book value, the existing provision of ‘1.16 Crores is maintained and no further provision has been made.

4. CAPITAL WORK IN PROGRESS (CWIP) : (Refer Note No-10B)

CWIP pending since more than 3 years is ` 20.99 Crores ( ` 6.52 Crores).

5. LOANS AND ADVANCES (Ref. Note no.12&18)

The advances unadjusted since long to suppliers / contractors are ̀ 1.98 Crores (` 1.97crore) ref. Note No.18 and for capital works/ mobilisation advances are ̀ 0.92 crores(` 1.53 Crores), ref. Note no. 12. Full Provisions are appearing in the books of accounts

for the same.

6. OTHERS

a) Against the levy of 5% tax under “Madhya Pradesh Gramin Avsanrachana TathaSadak Vikas Adhiniyam, 2005 (MPGATSVA 2005), some consumers as well asWCL has moved to the Hon’ble High Court of Madhya Pradesh, Jabalpur andobtained interim relief. As per the interim order dated 15/02/2006 the Hon’ble HighCourt, Jabalpur had directed the Company not to deposit this tax to the StateGovernment but to keep in a fixed deposit. The matter was later dismissed by theJabalpur High Court in favour of MP Government. WCL has filed an SLP before theHon’ble Supreme Court and the matter is still sub judice. The Hon’ble SupremeCourt of India vide its order dated 02-08-2010 directed the Company to file itsreturns for all the years under protest as per MPGATSVA (2005). The Hon’ble

148


Supreme Court directed the assessing officer under the Act to complete theassessments of returns filed by the Company. In compliance with the Supreme

Court directions, upto 31/03/2015 the assessing officers raised total demand of

` 433.71 Crores against the Company ( `370.58 Crores). As per legal advice full

amount of demand amounting to ` 433.71 crores has been paid up to 31.03.2015

and has preferred Appeals against the assessment orders / demand notes with

Competent Appellate Authority, Jabalpur and Bhopal.

An amount of ̀ 463.45 Crores ( ̀ 408.10 Crores) has been received from customers

on account of MPGATSVA tax and VAT/CST thereon upto 31/03/2015. After adjusting

` 433.71 Crores paid under protest, the balance amount is kept in term deposit of

which ̀ 25.74 Crores has been deposited upto 31st March 2015 and balance ̀ 4.27

Crores has been deposited in April’2015. The matter is pending before the Hon’ble

Supreme Court and Appellate Authority Jabalpur .The cumulative interest accrued

on fixed deposits made on this account is added to liability.

b) Pending decision of Hon’ble Supreme Court of India ` 4.52 Crores (` 4.52 Crores)

being interest on delayed payments on account of enhancement of rate of royalty

on coal, collected from customers in the earlier years, continued to appear in account

‘Advance & Deposits from Customers’ under the head “Current Liabilities”.

c) By virtue of enactment of Cess and Other Taxes under Mineral Validation Act, 1992,

the Company raised supplementary bills on customers’ upto 4.4.1991. An amount

of ` 2.96 Crores

(` 2.96 Crores) has been shown as liability for Cess on Royalty under the head

Current Liabilities & Provisions. Against the judgment of Hon’ble High Court,Patna,

Ranchi Bench in favour of the Company, a Special Leave Petition is pending in

Supreme Court .

d) The Company had approached MSRDC to construct a bridge over Wardha Rivernear Nakoda in Wani Area to reduce the lead for coal transportation between the

mines of Wani Area and Railway Siding at Wani. An agreement was entered intowith MSRDC on 23.12.1997 for construction of the bridge and a loan of ` 2.35Crores was agreed to be given by WCL to MSRDC. Against this a loan of `1.13Crores, carrying a simple interest @ 9% p.a. was given to MSRDC in 1997-98. Thebridge is currently being used to transport coal across Wardha River. The loan is tobe repaid by MSRDC after repayment of its other loans. However, till date no amount

is repaid by MSRDC. The remaining amount of loan of ` 1.22 Crores has not beenreleased as WCL wants to establish a time bound schedule for repayment of theloan and interest thereon. Negotiations have been initiated with MSRDC for thispurpose.

Since the principal amount of advance is doubtful, necessary provision for ` 2.14

Crores (including interest accounted for as income up to 31.3.2010 of ̀ 1.01 Crores)exists as on 31.03.2015. In view of this, since the year 2010-11, the interestamounting to ` 0.10 Crores per year on this advance has not been recognised asincome.

149


e) Report of the Tripartite Committee, comprising of Subsidiary/Mine Management,CMPDIL and Explosive Manufacturers, set up to finalise the benchmark powderfactor of each mine for the period from April’05 to July’06, is still awaited. It hasbeen decided by CIL that Subsidiary Management shall review the impact ofconsidering the powder factor of 2003-04 and 2004-05, whichever is higher vis-à-vis actual achieved during 2005-06 and submit the Company’s view through CMDto CIL. This review is yet to be finalized. As such no recovery has been made frombills for supply of explosives during that period. Pending finalization of the issue,the Bank Guarantees submitted by the suppliers is not released by CIL. Subsequentsupplies are covered by new rate contracts which specify that recovery on accountof powder factor is to be adjusted after final powder factor reports are received fromthe Areas on quarterly basis. Pending receipt of final reports for quarter endingMarch 2015 the deduction of ` 2.98 Crores (`2.74 Crores) during current year isappearing as a liability. Accordingly, the expenditure on account of explosiveconsumption has not been adjusted since the amount is not ascertainable.

f) During the year 1993-94 a suspected fraud case was detected at Nandgaon Inclineof Chandrapur Area, quantified by the Internal Audit Department to the tuneof ` 0.12 Crores and the same is under CBI investigation. An amount of ` 0.02Crores has been 3 recovered from the party and the balance recoverable figure ismatched with a similar provision.

g) During the year 1995-96, a theft case at CWS Stores was suspected and policecomplaint was lodged. During the course of departmental enquiry many kardexwere seized / taken out for investigation. Pending final outcome of the enquiry, theworkshop continues to maintain a provision of ` 0.14 Crores.

h) During the year 2013-14, a suspected fraud case was detected at Wani North Areain which M/s BNS-KBS Infra JV (a Contractor) committed fraud on the Company bysubmitting a fake Bank Guarantees for `1.46 Crores on dt 16.01.2013 from KarurVyasya Bank, Nagpur towards performance securities against Tender Notice No.16/2012-13 dt 26.07.2012 for HOE contract at Ghonsa OC of Wani North Area. Onverification, the Bank Guarantee was found to be fake and the contract wasterminated on dt 25.11.2013 after lodging FIR on dt 26.09.2013 and civil suit is filedfor ̀ 6.14 Crores against the said Contractor.

i) In case of land in Chandrapur / Ballarpur / Wani / Nagpur Areas , a commonjudgement was pronounced on 05.01.2009 by Hon’ble Bombay High Court in Non-Agricultural assessment cases. Accordingly, there is a contingent demand of landrevenue, ZP/GP Taxes and additional taxes for the period from 1980 to 2009 to thetune of ` 62.04 Crores. However, the Company has filed a Special Leave Petitionbefore the Divisional Bench of Bombay High Court, on behalf of the Areas on theground that such taxes are not payable on lands acquired under Coal Bearing AreaAct.

j) The Company had preferred appeals in cases of Income Tax and Sales Tax / VAT /

MPVAT assessments completed. Pending decision, no provision has been

considered necessary and the amount paid / recoverable is being continued to be

kept under Loans and Advances / Claims Receivables.

150


k) The Rate Contracts (RC) for supply of explosives by different suppliers expired on

28th February, 2006 and pending renewal of the RCs the suppliers were asked to

continue the supplies at the same rates as prevalent in the expired RC, subject to

the condition that such extended period supplies would be governed by the rates

as fixed in the new RC. This continued upto 28th July, 2006.

The new RC was finalised and came into effect from 29th July, 2006 with a reduced

price of the explosives. As a result, the supplies during the extended period of the

earlier RC was found to be supplied at a higher price than actually applicable.

Hence recovery of excess amount paid was made from the suppliers.Against the

above recoveries, some of the suppliers filed a Civil Suit before Hon’ble Calcutta

High Court. The Hon’ble High Court of Calcutta granted stay in December 2006 for

recovery and directed CIL to stop such recovery of excess payments. Accordingly

CIL directed WCL to refund the amount deducted from the six suppliers. The Hon’ble

High Court of Calcutta asked these suppliers to deposit the disputed amount in

question in an account with the Joint Receiver appointed by the Hon’ble High Court.

As the suppliers having failed to do so, the Hon’ble Calcutta High Court in July

2008 vacated the stay of recovery of excess payment made to such suppliers.

Hence, CIL directed WCL to restart the recovery of such amount from the running

bills of the suppliers as per directives of Court, an amount of ` 2.58 Crores is

recovered and kept in the books under a separate liability account since 2008-09,

pending final disposal of the case by the Court.

l) Prospecting Boring and Development expenses amounting to ̀ 23.56 Crores (`13.35

Crore) along with provision for depreciation have been taken out from accounts

during the year after expiry of two years, following the year in which these are fully

amortized.

m) Impact of e-auction for the year 2014-15 is as follows:

` in crores

n) In respect of termination of contract awarded to M/s S.T.Construction Pvt Ltd. JV

Sivaswathi Construction Pvt Ltd. with consequent levy of penalty and confiscating

of equipment’s deployed by the contractor in previous year the party has obtained

interim relief from the Court. Further during the year in similar case of termination

of the contract of M/s B.Himmatlal Agrawal, WCL Board has imposed

maximum penalty of 10% amounting ` 3.00 Crores on total contract value of `

30.03 Crores .

o) In the absence of notification of rules by the Central / State Governments the

effects of the provisions of the Mines and Minerals (Development and Regulation)

Amendment Act,2015 has not been considered in the Accounts.

Impact of E-auction

Net Sales 400.23Taxes / levies 107.07

Gross Sales 507.30

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p) The position of major provisions as on 31st March 2015 are given below:

(ìn Crores)

7. COMPLIANCE WITH MANDATORY ACCOUNTING STANDARDS:

i. Employee Benefits under AS-15 :

Terminal benefits : VRS benefits are recognized in the books in the year of occurrence.

Table showing movement in Actuarial valuation of Gratuity, Leave En-cashment and other

Employee benefits.

(` Crores)

Actuarial Valuation as on 31.03.2015Actuarial Valuation as on 31.03.2014

Net Incremental Liability for C.Y.Add : Reduction in Fund due to

disbursement during C.Y.Less : Addition to Fund by Interest

earned in C.Y.Less Addl Payment in C.Y.

Total Charge to Statement of Profitand Loss

Total Premium for Life Cover for C.Y.

2 2 4 7 . 2 62 2 1 8 . 9 4

2 8 . 3 22 7 6 . 1 0

1 9 8 . 4 2

‘11 0.05

1 0 5 .9 5

7 .43

G R AG R AG R AG R AG R AT U I T YT U I T YT U I T YT U I T YT U I T Y

(FUNDED(FUNDED(FUNDED(FUNDED(FUNDED

L E AL E AL E AL E AL E AV EV EV EV EV E

E N C A S H M E N TE N C A S H M E N TE N C A S H M E N TE N C A S H M E N TE N C A S H M E N T

(UNFUNDED)(UNFUNDED)(UNFUNDED)(UNFUNDED)(UNFUNDED)

LLTC/LTA/ LIFE COVER/

SETTLE- MENT ALL./MEDICAL/FATAL ACCI-

DENT COMP. &ACCIDENTAL

INS.(UNFUNDED)

‘245.59254.61

-9.02

464.43427.53

36.90

The total charge on account of gratuity to statement of Profit & loss during the isRs. 105.95 crores (Rs. 26.13 crores)

SL.SL.SL.SL.SL. PRPRPRPRPROOOOOVISIONSVISIONSVISIONSVISIONSVISIONS OpeningOpeningOpeningOpeningOpening AdditionalAdditionalAdditionalAdditionalAdditional Payment/WritePayment/WritePayment/WritePayment/WritePayment/Write ClosingClosingClosingClosingClosing

No.No.No.No.No. Balance as onBalance as onBalance as onBalance as onBalance as on DuringDuringDuringDuringDuring back/adj.back/adj.back/adj.back/adj.back/adj. BalanceBalanceBalanceBalanceBalance

01.04.201401.04.201401.04.201401.04.201401.04.2014 2014-152014-152014-152014-152014-15 During 2014-15During 2014-15During 2014-15During 2014-15During 2014-15 as onas onas onas onas on

31.03.201531.03.201531.03.201531.03.201531.03.2015

i For proposed Dividend 134.29 188.06 134.29 188.06

ii For Corporate dividend tax 22.82 37.60 22.82 37.60

ii For Gratuity (as per actuarial value) 10.72 105.95 10.72 105.95

iv For Leave encashment (Actuarial) 427.53 36.90 - 464.43

v For post - retirement medical ‘121.78 (2.58) 1.58 117.62

benefits (Actuarial)

vi For other Employee benefits 262.53 21.39 - 283.92

vii For Income Tax 883.21 242.33 12.71 1112.83

viii OBR Adjustment Account 2313.94 15.97 - 2329.91

ix Provision for Mine closure 695.86 271.84 - 967.70

x Bad & Doubtful Debts 79.71 4.10 - 83.81

xi Provision for doubtful 12.16 - 0.63 11.53

advances and claims

xii CWIP 9.36 0.14 0.24 9.26

xiii Other Provisions- Impairment 103.16 0.86 0.76 103.26

of Fixed Assets

152


The incremental liability based on actuarial valuation as certified by the Actuary for

retired employees Post-Retirement Medical Benefit amounting to (-) `̀̀̀̀ 6.84 Crores has

been provided in the accounts.

From the financial year 2012-13 in addition of actuarial valuation of Post-Retirement

Medical Benefits of retired employees, the actuarial valuation of medical benefits for

existing employees has also been taken into consideration. The total actuarial valuation

for medical benefits as on 31.03.2015 has been assessed by Actuary at ̀̀̀̀̀ 54.86 Crores.

Necessary provisions has been made in accounts after adjustment of provisions made

at Areas & Hq.@4% of basic plus DA of executives to maintain the actuarial value at `

54.86 Crores as on 31.03.2015..

The following disclosures are made in accordance with AS-15 (Revised) pertaining to

the Gratuity (Funded Plan) :

Changes in Present Value of Obligations (ìn Crores)

As at 31.03.2014 As at 31.03.2015Present Value of Obligation at beginning of the year 2270.78 2218.94

Interest Cost 181.33 166.46

Current Service Cost 99.52 105.46

Benefits paid 275.05 276.41

Actuarial gain/loss on obligations -57.64 32.81

Present value of Obligation at end of the year 2218.94 2247.26

Changes in Fair Value of Plan Assets ( ` in Crores)

As at 31.03.2014 As at 31.03.2015Fair Value of Plan Asset at beginning of the year 2062.09 2208.22

Expected Return on Plan Asset 175.28 176.66

Contributions‘ 224.10 ‘111.07

Benefits paid 275.05 276.40

Actuarial gain/loss on Plan Asset ‘21.80 ‘21.76

Fair Value of Plan Asset at end of year 2208.22 2141.31

Funded Status (` in Crores)

As at 31.03.2014 As at 31.03.2015Present value of obligation at end of the year 2218.94 2247.26

Fair Value of Plan Asset at end of the year 2208.22 2141.31

Funded Status -10.72 -105.95

Unrecognised actuarial gain/loss at end of the year 0 0

Net Asset (Lia.) recognized in Balance Sheet -10.72 -105.95

Expense recognized in Statement of Profit & Loss ( ` in Crores)

As at 31.03.2014 As at 31.03.2015

Current Service Cost 99.52 105.46

Interest Cost 181.33 166.46

Expected Return on Plan Asset 175.28 176.66

Actuarial gain/loss recognized in the year -79.44 11.05

Expense recognized in Statement of Profit/Loss 26.13 106.31

153


Movements in Liability recognised in Balance Sheet ( ` in Crores)

As at 31.03.2014 As at 31.03.2015

Opening Net Liability 208.69 10.72

Expenses as above 26.13 106.31

Contributions ‘224.10 ‘11.08

Closing Net Liability 10.72 105.95

Closing Fund/Provision at end of year 2218.94 2247.26

Summary of Actuarial Assumptions

In 2013-14 In 2014-15

Discount rate 8.50% 8.00%

Inflation rate 6.25% 6.25%

Mortality rate IALM/ 2006 -08/ IALM/ 2006 -08/

Ultimate Ultimate

Attrition rate 10 per thousand p. a. 10 per thousand p. a.

Formula used Projected Unit Projected Unit

Credit Method Credit Method

The provision made during the year for pension and superannuation benefit of Executives

has not been done on the basis of actuarial valuation.

ii Segment Reporting under AS-17 :

The Company has two business segments, viz. Collieries and Washery. Since the

revenue/ profit/assets of the Washery is less than 10% of the total revenue/profit/

assets of the Company, the Washery is not a reportable segment under AS-17. The

operations of the Company are confined to Central India, hence no geographical

segments are identified.

iii Related Party Disclosure as required under AS-18 :

1. KEY MANAGEMENT PERSONNELS:

SHRI R.R.MISHRA CHAIRMAN CUM MANAGING DIRECTOR(w.e.f. 11.10.2014)

SHRI D.C. GARG CHAIRMAN CUM MANAGING DIRECTOR(upto 17.06.2014)

SHRI OM PRAKASH DIRECTOR (TECH)-OPERATION(Acting CMD upto 08.10.14)

SHRI RUPAK DAYAL DIRECTOR (PERSONNEL)

(Acting CMD from 09.10.14 to 10.10.14)

154


`

SHRI S.S.MALHI DIRECTOR (TECH)-PROJECT & PLANNING

SHRI RAMEHER COMPANY SECRETARY

2. Related Party Transaction: ( `̀̀̀̀ in Crores)

2014-15 2013-14

1 Remuneration:

Gross Salary 0.67 1.02

Employer’s contribution to PF 0.10 0.12

Gratuity ‘0.10 0.10

Leave Encashment on retirement 0.28 0.19

2 Medical Reimbursement 0.05 0.05

3 Sitting fees paid to Independent Directors 0.00 0.06

4 Year-end balance of Advances* 0.60 0.70

*Lump sum recoverable advance Rs.0.60 crore paid in the year 2011-12, calculated at

75% of Performance Related Pay (PRP) payable to CMD and other whole time individual

Directors for the years 2007-08 to 2010-11.

The gross salary (remuneration as stated above) does not include the value of perquisites

like medical facility provided for in the Company hospital, the provisions for contribution

to Gratuity, Leave encashment and other employee benefits, which are made on the

basis of actuarial valuation.

House rent, electricity etc. are charged from C.M.D and full time Directors’ as per

Companies Rule applicable to the executives.

The Chairman-cum-Managing Director and full time Directors have the option to use the

staff car for purposes other than official duty upto a ceiling of 750 km per month, on

payment of concessional rate, in accordance with the provisions of Governmentof India,

Ministry of Finance, Bureau of Public Enterprises O.M. No. 2(18)/PC-64 dated 20th

November,1964 as amended from time to time.

Sitting fees of `̀̀̀̀ 15000/-per meeting of the Board and `̀̀̀̀ 15000/- per meeting of the

committee of the Board is payable to the non–official Part Time Directors/Independent

Directors.

3. In view of the exemption granted to State controlled enterprises as regards related partyrelationship with other State controlled enterprises and there being no transaction withother related enterprises & parties, no disclosure under the Accounting Standard (AS-18) on Related Party Disclosures is made, being not applicable for the Company.

155


iv. Disclosure of Earning per Share as required under AS-20 :

Particulars Current Year Previous Year

i) Profit After Tax (`̀̀̀̀ Crores) 313.14 ‘22223.58

Less : Preference Dividend 0.00 0

ii) Profit attributable to Ordinary 313.14 ‘222223.58

Shareholders (`̀̀̀̀ Crores)

iii) Ordinary Shares (in Nos.) for basic and 29,71,000 29,71,000

diluted EPS

iv) Nominal value of Ordinary Shares (`̀̀̀̀) ‘ 1000.00 ‘ 1000.00

v) Basic & Diluted Earnings per Ordinary Share (`)`)`)`)`) 1053.99 752.54

v. Accounting for Taxes on Income under AS-22

The deferred tax asset as required under AS-22 comprises of the following:

( `̀̀̀̀ in Crores)

DEFERRED TAX ASSETS/LIABILITY

Deferred Tax Deferred TaxAsset Liability as Asset / Liability as

on 31.5.2015 on 31.03.2014

A Deferred Tax Liabilities- Depreciation 23.27 65.53

B Deferred Tax Assets

VRS 0.02 0.21

Statutory Dues 6.22 5.54

Provision for Doubtful Debts 28.49 27.09

Provision for Doubtful Advances 1.87 2.08

Provision for Leave Encashment 157.86 145.32

Provision for Obsolescence/ workshop WIP 8.47 8.28

Provision for Claims 2.05 2.05

Provision for Shortage of Stores 0.39 0.52

Land Reclamation Provision 0.00 ‘0.00

Disallowance u/s 40(a) of I.Tax Act 3.90 10.17

PLRS / PLBS & PRP 135.06 162.67

MP Gramin Tax 6.60 10.02

Actuarial provision for other employee benefits 136.47 130.62

TOTAL 487.40 504.57

Deferred Tax Assets (net) (B-A) 464.13 439.04

vi Consequent to mandatory provisions of AS-24 relating to Discontinuing

Operations w.e.f. 01.04.2004, the following disclosures are made:

156


a) Commercial Blast Explosive (CBE) Plant, Bhandara : The Plant used to

manufacture Nitro-Glycerine based Permitted Explosives used in the underground

mines of the Company till its closure on 28.04.2003. Consequent upon decision of

the Government of India to discontinue / ban production of NG-based explosives in

the country and its adoption by the Board of Ordnance Factories of India, the Jt.

Venture partner of the Plant, the Plant was closed.

CIL had given its approval for disposal of the Plant and the Company in its 197th

Board Meeting held on 19.04.2006 had approved the disposal of P&M by

tendering / e-auction and accordingly the P&M along with related stores & spares

have been disposed of during 2006-07 by auction through MSTC. The Net

Block of assets pending disposal is `̀̀̀̀0.08 Crores.The liability towards Overheads

after closure of the Plant till 31.03.2015 for maintenance and upkeep of the Plant is

`̀̀̀̀ 0.37 Crores.

Since there are no operation at plant, there is no revenue or expenses and as such

no Profit or Loss and cash outflow for the year ( `̀̀̀̀ NIL)

b) Domestic Fuel Development Plant(D.F.D.P), Hinganghat :The Plant used to

manufacture Coal Briquettes from raw coal for domestic fuel purposes. Consequent

upon non-viability of the Plant as per the decision of the Board of the Company, the

Plant was closed in 1994.

The disposal of the Plant is under process. The Net Block of assets pending disposal

is `̀̀̀̀0.03 Crores and the liability towards Municipal Taxes is `̀̀̀̀ 0.05 Crores The

Company has applied to the Hinganghat Nagar Palika for waiver of the Municipal

Taxes for the past years on the ground that the Plant is no more in operation. The

revenue expenses incurred during the current year is ̀̀̀̀̀ 0.01 Crores ( ̀̀̀̀̀ 0.01 Crores).

Since the Plant is in-operative, there is no cash outflow attributable to operating,

investing and financing of discontinuance.

Vii. Impairment of Assets : AS-28 :

The Company regularly assesses, at each balance sheet date the impairment of

assets if there is existence of any of the six external and internal indications

prescribed, on each Balance Sheet date.

In case of Land and Building, there is universally upward trend in

Valuation.Unless,there is damage to building, the company does not make any

provision for land and building. Similarly, in case of Plant and Machinery and HEMM

there is no downward trend, hence no impairment is recognised unless Asset is

obsolete or damaged.

In respect of prospecting & Boring and Development Expenses in continuous loss

making mines, have been considered for impairment, provided there is no clear

indication for its revival in near future.

During the Current Year an amount of ̀̀̀̀̀ 0.96 Crores has been charged to Statement

of Profit and Loss as impairment loss against P & B, Development Expenditure

(DE) and Plant & Machinery (`̀̀̀̀4.43 Crores)

157


viii. Provisions, Contingent Liabilities and Contingent Assets AS-29

As per directives of Coal India Ltd. provision for Mine Closure is made on the basis

of guidelines of Ministry of Coal circulated vide letter no. 55011 / 1 / 2009 - CPAM

dated 27.08.2009 based on which the Mine closure plan(MCP) for 76 Mines was

submitted by CMPDIL and approved by WCL Board

Against this a provision of `̀̀̀̀ 271.84 Crores ( `̀̀̀̀131.41 Crores) inclusive of `̀̀̀̀ 64.82

Crores towards accrued interest on MCP Escrow Accounts has been done during

the current year ending on 31st March,2015. Cumulative provision as on 31st March,

2015 is ̀̀̀̀̀ 967.70 Crores inclusive of accumulated accrued interest of ̀̀̀̀̀ 80.15 Crores

( `̀̀̀̀695.86 Crores including accumulated accrued interest of ̀̀̀̀̀ 15.33 Crores).

During the current year new MCP Escrow Accounts for 4 mines were opened against

mine closure plan as submitted by CMPDIL and duly approved by WCL Board. As

per such approval no provision is required during the current year and only to keep

those account operative an amount of `̀̀̀̀0.02 Crores deposited within 31st

March’2015. Thus balance in MCP Escrow Account as on 31.03.2015 is `̀̀̀̀ 967.72

Crores including accrued interest of `̀̀̀̀ 80.15 Crores.

8. CONSISTENT METHOD OF ACCOUNTING :

As per consistent policy of the Company, the following methods of accounting continue :

a) Accrual basis of accounting has been followed except in the following cases:

i. Liquidated damages,interest on delayed payment and escalation claims

from Customers on the basis of final settlement.

ii. Insurance / Railway claims on admission/final settlement.

iii. Scraps are accounted for on realisation.

iv. Refund / adjustment consequent to assessment of tax from Tax authorities

excepting Input Tax Credit claim of VAT are accounted for on cash basis.

Additional demand of Income Tax, Royalty, Cess, Sales Tax, Entry Tax, etc.

are accounted for after final order in appeals, pending such appeal payment

made against additional demand are treated as Advance / Claims.

b) Revenue Recognition: Sales

Bonus claims on customers, as a result of Joint Sampling are accounted for

in sales in the year of settlement irrespective of period of dispatch. Credit

Sales are recognised based on date of D-Note (Forwarding Note to Railways)

and Cash Sales are recognised upto dispatches as of 24:00 hrs. on each

reporting date.

158


c) Foreign Currency Transactions:

Foreign Exchange differences arising on accrual/repayment of liabilities incurred for the

purpose of acquisition of fixed assets are adjusted in the reported currencies by applying

the closing rate.

Foreign exchange fluctuations are accounted in the reported currencies by applying the

closing rates. The effects of changes in foreign exchange rate are charged to the Statement

of Profit and Loss as per AS-11(Revised) effective from 1.4.2004.

d) Captive consumption of coal is valued at basic price of declared grade of coal of the

related mines.

e) Production of Coal is derived from records of dispatches billed, internal

consumption,opening and closing stock .

f) Balance with Coal India Limited ( Holding Company ).

Amount due to Coal India Limited on account of loan after adjustment for conversion to

equity or vice-versa from time to time is shown as Unsecured Loan. Amount due /

receivable for revenue nature transaction in Current Account is shown under current

liabilities/current assets.

g) Apex Office Charges and Interest to Holding Company.

i. Apex office charges as charged by Holding Company are allocated to revenue

mines on the basis of coal production.

ii. Interest on loans from CIL is accounted for as per terms of loan agreement. Interest

is allocated to the units on the basis of Gross Fixed Assets(excluding the Assets

procured against specific loan) at the beginning of the year

iii. CIL has been levying additional Apex Charges @ `̀̀̀̀ 6.00 per ton of coal dispatch

to meet the rehabilitation & firefighting expenses of Jharia and Raniganj areas of

BCCL / ECL. An amount of `̀̀̀̀ 24.75 Crores ( `̀̀̀̀ 23.97 Crores) has been charged to

P&L A/c on this account.

9. CHANGE IN ACCOUNTING POLICY

During the year the Company has changed its Accounting Policy relating to accounting

of payment of one time compensation in lieu of employment on acquisition of land

whereby, the amount so paid is now capitalised instead of treating as expenditure.Due

to this change the profit for the year is higher by `̀̀̀̀16.94 Crores (net of increase in

Depreciation of `̀̀̀̀ 0.50 Crores) with corresponding increase in value of fixed asset by

`̀̀̀̀ 17.44 Crores.

159


10 MISCELLANEOUS:

a) Letter for balance confirmation as on 31st March,2015 is sent to the sundry creditors,

the confirmation of which is not yet received. In respect of balance confirmation as

on 31.03.2014 the reconciliation is in process, whereever necessary.

b) Joint reconciliation with major Sundry Debtors is done periodically. Joint reconciliation

with power house like MSPGCL,MPPGCL,KPCL AND SAIL has been completed

up to interim period of 2014-15 .

c) Figures of previous year have been regrouped / rearranged wherever necessary.

Figures in bracket relates to previous year.

d) Notes 1 to 32, Significant Accounting Policies and Additional Notes on Accounts in

Notes 33 & 34 form integral part of these accounts.

CA A.M.MARATHE

General Manager

(Finance)

RAMEHER

Company Secretary RUPAK DAYAL


(DIN 05105263)

R.R.MISHRA

Chairman-cum-Managing

Director

(DIN 05103300)


FOR V.K. SURANA AND CO.Chartered Accountants

(FRN. 110634 W)

CA. SUDHIR SURANAPARTNER

(M.No. 43414 )

PLACE : Nagpur

DATE : 23rd May 2015

160



NOTE 34 (A)NOTES PROVIDING STATUTORY INFORMATION

1. CONTINGENT LIABILITIES

Claims against the Company not acknowledged as debts as on 31st March, 2015 amounting

to ̀ 4750.29 Crores (`4123.11 Crores), includes:

a) Claims under Income Tax, Sales Tax, Service Tax and other Acts:

i. Demand notices from Income Tax authorities for ` 985.25 Crores towards

Corporate Tax and ̀ 2.22 Crores towards Tax on perquisites to employees.

ii. Demand notices from Income Tax authorities for ` 6.45 Crores under section 194J

of the Income Tax Act. 1961.

iii. Demand raised by District Revenue Authorities on account of Surface Rent

` 83.70 Crores and Non-Agricultural Assessment Tax of ` 64.02 Crores, Cess on

Royalty ` 0.58 crores, Central Excise Duty Demand A/C Royalty/SED ` 2448.19

Crores, Gram Panchayat Tax ̀ NIL crores.

iv. Demands raised by Sales Tax Authorities on account of Sales Tax amounting to

` 285.69 Crores.

v. Demands raised by Sales Tax Authorities on account of Entry Tax amounting to ̀ 117.05

Crores on HEMM and ̀ 2.54 Crores on coal.

vi. Demands raised by Service Tax Authorities on account of Service Tax amounting to

` 230.94 Crores.

b) Claims other than those under Income Tax, Sales Tax, Service Tax and other Acts:

i. Claims for enhanced compensation by land owners amounting to ̀ 105.95 Crores.

ii. Claims by employees towards remuneration related cases amounting to ̀ 11.04 Crores.

iii. Claims by Contractors and others pending decision by Arbitration/ Courts ̀ 171.70 Crores.

iv. Claims by customers ` 234.88 Crores.

v. Claims by Railways for Siding Maintenance Charges ̀ 0.09 Crores

vi. There are claims by employees and others where the amounts are not specified. In

some cases interest has been claimed. However as the amounts are not specified, the

contingent liability is not ascertainable.

c) The Competition Commission of India (CCI), on the basis of complaints by few coal customers

(called as ‘informant’ in the case) against certain conducts of M/S, Coal India Limited, M/S,

Western Coalfields Limited, M/S South Eastern Coalfields Limited, M/S, Mahanadi Coalfields

Limited (called as ‘opposite party’ in the case) heard the case and vide its order dated

09.12.2013, has inter-alia imposed a penalty of ̀ 1773.05 crore.

The appeal against the above order is filed with Competition Appellate Tribunal and as per

their directives dated 26/02/2014 a token penalty of ̀ 50 crore is deposited by CIL and kept

as deposit (under protest) in the books of CIL. The penalty of ` 1773.05 crores, under

appeal, is shown as contingent liability in the books of CIL. No separate Contingent liability

is shown by WCL.

d) Letters of Credit and Bank Guarantees:

i. Letters of Credit outstanding as on 31st March, 2015 amounting to ̀ 0.56 Crores.

( ` 1.51 crores)

161


ii. The Company has issued Bank Guarantees amounting to ̀ 4.73 Crores (` 4.70 Crores)

in favour of Maharashtra Pollution Control Board and others.

2. CAPITAL AND REVENUE COMMITMENT:

The estimated amount of contracts remaining to be executed on Capital Account and

Revenue Account and not provided for in the Accounts `978.44 Crores (` 345.49 Crores)

and ̀ 1253.02 crores (`925.12 crores) respectively.

3. DETAILS OF OPENING STOCK, PRODUCTION, TURNOVER AND CLOSING STOCK:

(A) COAL :

OPENING STOCK:For the Year Ended

on 31.03.2015

Qty ‘000 MT Value ` Crores Qty ‘000 MT Value ` Crores

Raw Coal 5600.31 651.10 5816.47 570.97

Washed Coal 2.46 0.87 0.43 0.20

Middling 0.68 0.11 1.01 0.15

Slurry 95.90 11.40 111.28 13.23

Development Mine 0.00 0.00 0.00 0.00

TOTAL 5699.35 663.48 5929.19 584.55

PRODUCTION:

Raw Coal 41077.74 39729.32

Washed Coal 72.68 120.05

Middling 71.36 88.87

Slurry *105.18 21.11

Development Mine 69.00 0.00

TOTAL 41395.96 39959.35

DESPATCH

Raw Coal 41090.52 7251.12 39710.00 6545.34

Washed Coal 74.71 37.31 118.01 47.70

Middlings 72.03 11.26 89.20 14.16

Slurry Coal 112.18 25.71 36.49 6.63


TOTAL OUTSIDE DESPATCH 41349.44 7325.40 39953.70 6613.83

Internal Consumption 6.25 1.74 6.69 1.36

Issued for Process in Washery 149.45 29.20 228.80 34.41

TOTAL DESPACTH 41505.14 7356.34 40189.19 6649.60

CLOSING STOCK :

Raw Coal 5431.83 643.00 5600.31 651.10

Raw coal Excess- Wani siding 0.87 0.13 0.00 0.00

Net Raw coal 5432.70 643.13 5600.31 651.10

Washed Coal 0.43 0.24 2.46 0.87

Middling 0.01 0.00 0.68 0.11

Slurry 88.90 18.13 95.90 11.40


TOTAL 5591.04 668.49 5699.35 663.48

*Slurry coal to the tune of 93939 tonnes recovered from Nandan washery sewage, the same is

included in production figure

Previous Year(2013-14)

162


Notes:1) Production figures are derived from records of dispatches, internal consumption etc.,

and adjustments for opening and closing stock of Coal.

2) Opening and Closing stock of Raw Coal includes coal of 216.210 Metric tonne of DFDP,

Hinganghat

(B) BRIQUETTE AT DOMESTIC FUEL PLANT, HINGANGHAT :For the Year Previous Year

Ended on 31.03.2015 (2013-14)

Qty MT Value ` Crores Qty MT Value `Crores

Opening Stock 58.00 0.0032 58.00 0.0032

Production 0.00 0.0000 0.00 0.0000

Turnover 0.00 0.0000 0.00 0.0000

Internal Consumption 0.00 0.0000 0.00 0.0000

Closing Stock 58.00 0.0032 58.00 0.0032

4. C.I.F. VALUE OF IMPORTS:

Components, Stores & Spare Parts 3.28 9.11

Expnenditure incurred through Holding Company,

Coal India Limited 1.22 4.29

TOTAL 4.50 13.40

5. VALUE OF THE IMPORTED & INDIGENOUS STORES AND SPARE PARTS CONSUMED:

( `̀̀̀̀ in Crores) % (`̀̀̀̀ in Crores) %

Imported 3.51 0.31 12.71 1.11

Indigenous 1142.01 99.69 1131.11 98.89

TOTAL 1145.52 100.00 1143.82 100.00

6. EXPENDITURE IN FOREIGN CURRENCY:

( ` in Crores) ( ` in Crores)

i) Travelling 0.05 0.12

ii) Others 4.37 0.89

TOTAL 4.42 1.01


For the YearEnded on 31.03.2015





WESTERN COAL FIELDS LIMITED( A MINI RATNA COMPANY)

(A SUBSIDIARY OF COAL INDIA LIMITED)

31.03.2015 31.12.2014 31.03.2014 31.03.2015 31.03.2014

Unaudited Unaudited Unaudited Audited Audited

1 Income from operations

(a) Net Sales/Income from Operations (Net of excise duty) 1,994.34 1,804.33 2,023.08 7,325.39 6,613.83

(b) Other Operating Income (Net of excise duty) 57.71 55.44 61.09 223.13 160.08

Total income from operations (net) 2,052.05 1,859.77 2,084.17 7,548.52 6,773.91

(a) Cost of materials consumed 340.93 291.01 378.39 1,149.93 1,143.82

(b) Change in inventories of finished goods, WIP and stock in trade (139.59) (30.75) (150.90) (0.63) (84.15)

(c) Employees Benefit expense 1,225.15 1,125.39 1,096.38 4,454.04 4,241.11

(d) Power & Fuel 76.22 85.42 74.51 309.72 329.95

(e) Coporate Social Responsibility 7.44 4.95 12.90 20.15 23.95

(f) Repairs & Maintenance 26.12 15.28 24.01 64.34 51.12

(g) Contractual Expenses 206.45 214.18 227.92 708.83 604.97

(h) Financial Charges /Commitment Charges - - 0.26 - 2.26

(i) Depreciation/Amortization/Impairment 74.79 54.23 52.48 236.07 192.23

(j) Provisions 55.01 51.05 (37.14) 210.69 116.49

(m) Write off - - - - -

(n) Overburden Removal Adjustment 171.30 (77.11) 110.19 15.97 47.61

(l) Other Expenditures 84.62 74.85 95.64 263.80 255.81

Total expenses 2,128.44 1,808.50 1,884.64 7,432.91 6,925.17

3 Profit/ (Loss) from Operations before Other Income, finance costsExceptional Items (1-2)

(76.39) 51.27 199.53 115.61 (151.26)

4 Other Income105.62 105.56 124.99 429.12 473.81

5 Profit / (Loss) from ordinary activities before finance costs andExceptional Items (3+4)

29.23 156.83 324.52 544.73 322.55

6 Finance costs - - - - -

7 Profit / (Loss) from ordinary activities after finance costs but beforeExceptional Items (5-6)

29.23 156.83 324.52 544.73 322.55

8 Prior Period Adjustment { charges/ (Incomes) }(0.00) 1.01 3.41 (0.05) (3.30)

9 Exceptional items- - - - -

10 Profit (+)/Loss (-) from Ordinary Activities before tax (7+8-9) 29.23 155.82 321.11 544.78 325.85

11 Tax expense 13.58 93.18 149.88 231.64 102.27

12 Net Profit (+) / Loss (-) from Ordinary Activities after tax (10-11) 15.65 62.64 171.23 313.14 223.58

13 Extraordinary Item (net of tax expense ` Nil crores) charge / (credit) - - - - -

14 Net Profit(+) / Loss(-) for the period (12-13) 15.65 62.64 171.23 313.14 223.58

15 Paid-up equity share capital (Face Value ` 1000/- each) 297.10 297.10 297.10 297.10 297.10

16 Reserve excluding Revaluation Reserves as per balance sheet ofprevious accounting year

3,229.39 3,162.92

17 Earnings Per Share (before extraordinary items) (of ` 1000/- each)(a) Basic 1,053.99 752.54

(b) Diluted 1,053.99 752.54

PART I

Particulars

FOR THE YEAR ENDED ONFOR THE QUARTER ENDED ON

( in crores)`

2

STATEMENT OF UNAUDITED RESULTS FOR THE QUARTER AND THE YEAR ENDED ON 31.3.2015


163

18 Earnings Per Share (after extraordinary items) (of ` 1000/- each)

(a) Basic 1,053.99 752.54

(b) Diluted 1,053.99 752.54

PART II SELECT INFORMATION FOR THE QUARTER AND THE YEAR ENDED ON 31/03/2015

1

PARTICULARS OF SHAREHOLDING

Public Shareholding

- No. of shares

- Percentage of shareholdingNIL NIL NIL NIL NIL

2

Promoters and promoter group Shareholding

a) Pledged/Encumbered

- Number of shares

- Percentage of shares

(as a % of the total shareholding of promoter and promoter group)

- Percentage of shares (as a % of the total share capital of the company)

NIL NIL NIL NIL NIL

b) Non-encumbered

- Number of Shares

2,971,000 2,971,000 2,971,000 2,971,000 2,971,000- Percentage of shares (as a% of the total shareholding of promoter and

promoter group) 100% 100% 100% 100% 100%

- Percentage of shares (as a % of the total share capital of the company) 100% 100% 100% 100% 100%

General Manager (Finance) Company Secretary Director (Personnel) Chairman-cum-Managing Director(DIN-05105263) (DIN-05103300)

CA. A M MARATHE RAMEHER RUPAK DAYAL R. R. MISHRA


Chartered Accountants (FRN 110634 W)FOR V.K. SURANA & CO

Place : Nagpur

Date : 23rd May 2015

CA. SUDHIR SURANA

PARTNER(M.No.43414 )


164

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