Directors Report 2011 12 Wcl

8/13/2019 Directors Report 2011 12 Wcl

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WESTERN COALFIELDS LIMITED

ANNUAL REPORT AND ACCOUNTS

2011-2012


( A Miniratna Company)

Coal Estate, Civil Lines, Nagpur - 440 001


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ANNUAL REPORT 2011-12


( A Miniratna Company)

CONTENTSPage No.

1 Board of Directors 1

2 Bankers & Auditors 3

3 Notice 4

4 Performance at a glance 6

5 Chairman's Statement 9

6 Awards and Accolades 14

7 Directors Report 21

8 Addendum to the Directors Report : 70

a) Comments of the Comptroller and Auditor General of

India under section 619(4) of the Companies Act, 1956

b) Auditors Report and Managements Reply

9 Balance Sheet as at 31st March, 2011 87

10 Profit & Loss Account for the year ended 31st March, 2011 88

11 Cash flow statement for the year 2010-11 89

12 Notes to Balance Sheet ( Notes 1 to 19 ) 90

13 Schedules (20 to 32) to Profit & Loss Account 106

14 Significant Accounting Policies - Note 33 113

15 Additional Notes on Accounts - Note 34 119

16 Statement of Audited Results for theQuarter and Year Ended 31.03.2012 141


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WESTERN COALFIELDS LIMITED( A Subsidiary of Coal India Limited )

Board of Directors( As on 25th May, 2012 )

Chairman-cum-Managing Director

Shri D.C. Garg

Functional Directors

Shri B.K. Saxena - TechnicalShri Om Prakash - TechnicalShri Sushil Behl - FinanceShri Rupak Dayal - Personeel

Government Directors (Part time)

Shri A.K. Bhalla - Joint Secretary,Ministry of Coal.

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

Coal India Limited, Kolkata.

Non-official Directors (Part time)

Dr. Ahindra Chakrabarti - Professor, IMI, New DelhiMs. Lalitha Kumar - Former IAS Officer, New DelhiShri Vinod Somani - CA, New DelhiShri Arun Balakrishnan - Former CMD, HPCLDr. D. Chamdrashekharam - Professor, IIT, Mumbai

Permanent Invitee(s)

Shri Z.A. Siddiqui - Chief Operations Manager,Central Railway, Mumbai.

Company Secretary

Shri Rameher


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WESTERN COALFIELDS LIMITED( A Subsidiary of Coal India Limited )

Board of Directors( During the year 2011-12 )

Chairman-cum-Managing Director

Shri D.C. Garg - From 01.05.2007

Functional Directors

Shri O.P. Miglani - Personnel (upto 01.05.2011)

Shri B.K. Saxena - Technical ( w.e.f. 07.03.2008 )

Shri Om Prakash - Technical ( w.e.f. 01.06.2008 )Shri Sushil Behl - Finance ( w.e.f. 01.11.2009 )

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

Government Directors (Part time)

Shri A.K. Bhalla - Joint Secretary, Ministry of Coal,

New Delhi ( w.e.f. 06.07.2010 )

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

Limited, Kolkata ( w.e.f. 28.06.2007 )

Non-official Directors (Part time)

Dr. Ahindra Chakrabarti - w.e.f. 27.04.2010

Ms. Lalitha Kumar - w.e.f. 24.02.2011

Shri Vinod Somani - w.e.f. 24.02.2011

Shri Arun Balakrishnan - w.e.f. 24.02.2011

Dr. D. Chandrashekharam - w.e.f. 24.02.2011

Permanent Invitee(s)

Shri S.K. Mishra - Secretary, Mineral Resources Department,Govt. of Madhya Pradesh, Bhopal ( w.e.f. 25.09.2008 )

Shri Satya Prakash Chief Operations Manager, Central Railway,

Mumbai( upto 28.11.2011 )

Shri Z.A. Siddiqui - Chief Operations Manager, Central Railway,

Mumbai( w.e.f. 06.01.2012 )

Company Secretary _

Shri Rameher ( w.e.f. 01.02.2008 )


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BANKERS

STATE BANK OF INDIASTATE BANK OF HYDERABAD

CENTRAL BANK OF INDIAUCO BANK

BANK OF MAHARASHTRAUNION BANK OF INDIA

ORIENTAL BANK OF COMMERCEALLAHABAD BANK

INDIAN BANK

PUNJAB NATIONAL BANKBANK OF INDIA

HDFC BANKIDBI BANK

DENA BANK

STATUTORY AUDITORS

M/S C . R . SAGDEO & COCHARTERED ACCOUNTANTS

NAGPUR

BRANCH AUDITORS

M/S JODH JOSHI & COCHARTERED ACCOUNTANTS

NAGPUR

M/S A . S . DANI & COCHARTERED ACCOUNTANTS

NAGPUR

M/S CHANDAK , KHANZODE & SHENWAICHARTERED ACCOUNTANTS

NAGPUR

REGISTERED OFFICECOAL ESTATE ,

CIVIL LINES ,NAGPUR 440001


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Ref : WCL/SECY/BD/AGM-37/2012/782 Date : 21st May, 2012

N O T I C E

THIRTY SEVENTH ANNUAL GENERAL MEETING

Notice is hereby given that the Thirty Seventh Annual General Meeting ofWestern Coalfields Limited will be held at 1.00 P.M. on Friday, the 25th May, 2012at the Registered Office of the Company at Coal Estate, Civil Lines, Nagpurtotransact the following business :

ORDINARY BUSINESS:1. To receive, consider and adopt the Audited Balance Sheet as on 31st March, 2012 and

Profit & Loss Account for the year ended 31st March, 2012 together with the DirectorsReport and Reports of the Statutory Auditors & Comptroller and Auditor General of Indiathereon.

2. To declare dividend.

3. To appoint a Director in place of Shri A.K. Bhalla, who retires in terms of Article 33(e)(iii)of the Articles of Association of the Company and is eligible for re-appointment.

4. To appoint a Director in place of Shri R. Mohan Das, who retires in terms of Article 33 (e) (iii)

of the Articles of Association of the Company and is eligible for re-appointment.

By order of Board of Directors

FOR WESTERN COALFIELDS LIMITED

Sd/-

( Rameher ) Sr. Manager (Finance)/

Company Secretary

Registered Office :Coal Estate, Civil Lines,NAGPUR - 440 001

NOTE :

1. A member entitled to attend and vote at the meeting is also entitled to appoint a proxyor proxies to attend and vote instead of himself/herself and such proxy need not be amember of the Company. In order to be effective, the Proxy form duly completed shouldbe deposited at the registered office of the Company not less than forty-eight hoursbefore the scheduled time of the Annual General Meeting. A proxy form is enclosed.

Contd.....


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2. Members are also requested to accord their consent for convening the meeting at a

shorter Notice under section 171(2)(i) of the Companies Act, 1956.

To,

1. Members/Shareholders,

Western Coalfields Limited

2. Statutory Auditors,


3. Chairman, Audit Committee,


Copy to

All Directors, Western Coalfields Limited, Nagpur

Company Secretary, Coal India Limited, Kolkata

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


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Chairmans StatementFriends,

I feel great pleasure in reporting another strong year for WesternCoalfields Limited, at the 37th Annual General Meeting of the company.We reported strong top line, that is, revenues of Rs 8357.48 croresalong with sturdy bottom line, that is, pre tax profit of Rs 440.50 croresduring the financial year 2011-12.

I am delighted to share that we are extremely well positioned amongthe coal producers in the country on the strength of our strong balancesheet and sturdy performance year after year by surmounting thechallenges posed by adverse geo mining parameters, paucity of

reserves amenable to mega projects, constraints in land acquisition,the highest stripping ratio among all the subsidiaries of CIL and stratacontrol problems at underground mines by adverse geo tectonicparameters.

Vision

It is well deliberated fact, that to sustain the high growth of economy, India needs to augmentpower generation capacity, as the country faces 12% shortage of peak demand in power.

It is obvious that the coal producers will have to augment coal availability to meet the highdemand for coal, as it is the prime energy mineral. It is a matter of record that exponential risein Coal demand has resulted in negative coal balance (The difference between aggregatedemand and availability of coal) at Western Coalfields Limited to the tune of 34.72 million tonnesduring the current year itself).

Keeping the reality in the mind, WCL has set its vision to emerge as a key player in the primaryenergy sector committed to provide energy security to the country by attaining environmentallyand socially sustainable growth through best practices from mine to market.

Performance 2011-12With the concerted efforts by the team of WCL, we could achieve 43.11 million tonnes of CoalProduction as against the last years 43.65 million tonnes and RE Target of 43.80 million tonnes.

Notably the coal production of 1.8 million tonnes could not materialize from Umrer OC due to itsprolonged discontinuance since Sept10, due to bench failure leading to inrush of Amb river intothe mine. The mine has been started and it will contribute coal production during FY 2012-13.

The Coal off-take of 41.967 million tonnes during the financial year, has been constrainedmainly on account of non lifting of 4.036 million tonnes of coal over contracted quantity byMAHAGENCO through Road cum Rail mode since Aug 2011, coupled with 1.072 million tonnesless drawal of coal through captive modes (Rope, MGR & Belt) by CSTPS, MAHAGENCO. Ofcourse, non availability of 1.8 million tonnes of coal from Umrer OC on account of itsdiscontinuance had certainly affected the off-take. Factoring these shortfalls on the actualproduction of FY 2011-12, it may be appreciated that the company could have exceeded itstarget of 45.50 MT of coal production and Coal off-take.


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WCL produces about 88% of Coal through departmental means, whereas the system capacityutilization in coal production has been 107.02% (System capacity 40.28 MT as assessed by

CMPDI for FY 2011-12). The system capacity utilization during the year with respect to OBremoval has been 100.55% (122.49 million cubic metres achieved as against the systemcapacity of 121.81 million cubic metres assessed by CMPDI for FY 2011-12). This achievementis certainly commendable for the company which operates in highest Stripping Ratio.

The company has achieved an overall productivity of 2.70 tonnes per man shift, which is 106.3%of the targeted 2.54 tonnes per man shift, thus registering a growth of 1.88% over the lastyears 2.65 tonnes per man shift.

Sales Realisation from customers during 2011-12 has been the highest ever approximately Rs8620.70 crores, showing a growth of 17.86% against that of Rs 7314.00 crores during last

fiscal.

The total outstanding dues with customers brought down from Rs 147.37 crores as on 01/04/11 to Rs 133.05 crores as on 01/04/12, that is, reduction in outstanding dues by 9.72%.

Financial PerformanceDuring the year, WCL achieved the highest turnover of Rs 8357.48 crores with a pretax profitof Rs 440.50 crores, which is of course less than the last years corresponding figure of Rs1067.98 crores. I wish to add here that, we had to provide for Rs 854.30 crores on accountwage increase and actuarial liability arising out of the National Coal Wage Agreement IX effectivefrom 1st July11. Adding the figures, we may appreciate that our actual profit had been Rs

1294.80 crores. Net worth of the company has risen from a level of Rs 3236.59 crores lastyear to Rs 3315.22 crores on 31-03-12.

Your Directors have recommended a dividend payment of Rs 184.04crores @ 61.95% on thePaid up Capital of the company i.e. Rs 297.10 crores.

I feel pleasure to share with you that our assessment against MoU parameters 2011-12 byDepartment of Public Enterprises is expected to be Excellent (Provisional) on the strength ofour overall performance of the company.

Creation of AssetsCompany has Invested Rs 275.72 crores during FY 2011-12 on development of new minesand infrastructure along with replacement of old assests, entirely from internal resources. HEMMworth Rs 161.85 crores were purchased during the year, whereas the equipments forunderground mining costing Rs 23.05 crores were added in the fleet.

Planning PreparednessOut of 29 projects of XIth plan with a sanctioned capacity of 38.75 MTA and capital of Rs5357.52 cr identified to sustain the production, Project Reports for all the projects have beenformulated and 6 projects approved by WCL Board are at different stages of implementation,while 21 projects have been approved subject to finalization of cost plus agreements withprospective consumer, accorded 1st stage approval and 2 projects are being re-casted.


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Restoration of degraded land through afforestation and green belt development is another areawhere WCL has unwavering commitment and achievement. Till date, WCL has planted 178.88lakh trees covering an area of 6469 ha. in its command area in states of Maharashtra & MadhyaPradesh. During 2011-12, a total of 2.26 lakh saplings were planted in the mining and adjoiningareas through expert forest agencies namely FDCM and MPRVVN and also by distribution ofsaplings to employees and villagers.

The progress of afforestation in the command areas of WCL are monitored regularly thro satelliteimagery which indicates that there is an increase in afforestation/ plantation in mining projects.The 10 major OCPs which are being monitored every year through Satellite Imagery Surveyhave proved this fact beyond doubt. After analyzing the Satellite data of the year 2010 vs 2011,it has transpired that the plantation works, carried out on back filled area, external OB Dumpsas well as on plain land in all these mines of WCL, has increased from 25.35 sq.km to 26.82 sq.km. (an increase 1.47 sq km).

In recent past, statutory stipulations such as mandatory public hearing even for expansionprojects, extending moratorium on grant of EC under CEPI in Chandrapur industrial cluster,mandatory Stage-I forest clearance to get EC, implementation of Mechanically closed trucksfor coal transportation imposed by Maharashtra State Pollution Control Board etc. are some ofthe nagging problems that are being faced by WCL. I have no doubt that WCL team will rise tothe occasion and meet these challenges in coming days, by effective management of naturalresources so that the CIL/WCLs policy of sustainable development i.e. achieving the coalproduction target with minimal degradation of environment, is reached.

Acquisition of Land

Your company has made a remarkable achievement in acquisition of land for mining and alliedactivities. It has acquired all time high 2240.194 Ha land which is 9.24% growth over last year.Similarly, we have taken possession of 332.387 Ha of Land which is 1.64% growth over lastyear. Moreover with enhancement of Monetary compensation in lieu of employment to Rs500000/- per acre and liberalizing the land compensation rates through Revised R&R Policy ofCIL, there has been a positive shift in the attitude of PAPs and coupled with our ConfidenceBuilding Measures by CSR initiatives they have been appreciating and are inclined to join us bygiving their land. It is a perfect Win- Win situation.

Corporate Social ResponsibilityThe CSR Policy of the company broadly covers education, water supply, health care,

environment management, infrastructure support, employment generation, encouraging sportsetc. The CSR initiatives are village specific, need based and in sync with local development toensure that they are socially acceptable to local people. WCL has provided @Rs 5/- per tonnesas CSR budget. It has spent Rs 7.65 crore during FY 2011-12 under CSR , up by 8.82% overlast years Rs 7.03 crores.

During 2011-12, WCL has conducted 171 medical camps in and around its command area,organized 25 coaching camps for promotion of sports, organized 12 de-addiction camps toimprove socio economic fabric and commissioned 67 tube wells under CSR initiatives apartfrom providing 8 classrooms in different schools and providing 2 ambulances for the programmeMedicare at your Door Step.


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SafetyHuman resources are the biggest asset for us hence their safety is of paramount importance tous. Thrust is being given to enhance safety awareness at the grass root level by inculcatingparticipative management at the unit level by way of safety committee meetings and specialsafety awareness drive on various subjects like green roof support, safe practices in haulage,belt conveyors, face equipments, explosives and blasting etc. Besides, tripartite safety committeemeetings at area level with active participation of DGMS officials are also being held. Trainingand retraining of our workforce to follow safe practices at the work place has also been ourthrust are in FY 2011-12.

During the calendar year 2011, there had been a reduction in fatalities from 14 during the year2010 to 10, along with corresponding reduction of serious injuries from 46 to 37.

Corporate Governance

WCL has complied with conditions (except a few which are under progress) of CorporateGovernance as stipulated in the Guidelines on Corporate Governance issued by the Departmentof Public Enterprises, Government of India. As required under the said guidelines, a separatesection on corporate governance has been added to the Directors Report and a certificateregarding compliance of conditions of Corporate Governance obtained from the Practicingcompany

Last but not the LeastOur team which has performed consistently in past, is geared up to leverage its proven strengthsand the capability to deliver. We are committed to achieve our growth while ensuring highestpriority to the corporate governance, environment and corporate social responsibility.

We firmly believe that we will continue to maximize the returns of WCLs key stake holders- itsshareholders, customers, employees and local populace.

I call upon all of WCL family to Arise, Aspire, Perspire and Move towards the goal of 45.69million tonnes of coal production during FY 2012-13. Thus we will be contributing to the largergoal that is progress of the nation.

With Best Wishes,

(D. C. Garg)

Chairman cum MD


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BALANCE SHEET AS AT 31st MARCH

PARTICULARS 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

SOURCE OF FUND

SHARE CAPITAL 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10

RESERVES & SURPLUS 437.99 522.50 604.92 788.67 1049.59 1343.88 1680.34 2089.39 984.68 1052.52

PROFIT & LOSS A/C 742.45 926.38 1061.78 1429.36 1673.10 1794.26 1843.91 1932.82 1988.80 2013.77

LOAN FUND 549.78 363.80 148.02 135.49 122.97 112.98 133.60 109.52 102.56 101.97

DEFERRED TAX LIABILITIES 125.98 105.07 63.10 32.65 29.18 15.22 20.48 0.00 0.00

LONG TERM LIABILITIES & 0.00 0.00 0.00 0.00 0.00 0.28 0.00 2155.89 3273.04

PROVISIONS

T O T A L 2027.32 2235.76 2216.89 2713.72 3175.41 3577.40 3970.45 4449.31 5529.03 6738.40APPLICATION

FIXED ASSETS :

Gross Block 3145.82 3218.69 3365.83 3480.99 3668.24 3782.45 3986.99 4137.27 4294.58 4490.39

Less: Depreciat ion 1688.52 1814.25 1956.82 2072.22 2251.34 2398.13 2539.15 2651.49 2769.51 2884.24

Less: Impairment of Assets 71.37 81.93 80.63 85.75 89.39 93.83 100.70 104.01

Net Block 1457.30 1404.44 1337.64 1326.84 1336.27 1298.57 1358.45 1391.95 1424.37 1502.14

Capital Work in Progress 181.06 182.96 183.06 204.41 174.85 187.65 217.31 252.63 274.53 269.50

Discarded/Surveyed off Assets 4.64 6.19 8.02 10.49 11.29 11.36 13.23 16.09 17.31 19.50

Investments 320.90 320.90 320.90 288.81 272.77 240.68 192.54 128.36 96.27

Deferred Tax Assets 154.79 249.70 177.42 151.07 140.25 315.83 345.33 340.98 350.13 455.72

Long Term Loans & Advances 58.21 61.99

CURRENT ASSETS,LOANS &

ADVANCES :

Inventories 106.19 151.59 210.15 287.77 363.97 301.43 288.46 294.17 437.09 570.60

Sundry Debtors 471.93 319.59 389.95 235.06 238.14 126.02 191.52 109.18 25.20 13.97

Cash & Bank Balance 291.67 340.22 761.60 1513.75 1296.62 2262.20 3033.11 3919.96 4063.78 5503.40

Loans & Advances 671.87 988.67 1236.50 1518.80 1983.95 2490.98 2868.96 1784.73 704.54 860.70

Current Investment 32.09 32.09

Other Current Assets 351.20 432.06

SUB TOTAL 1541.66 1800.07 2598.20 3555.38 3882.68 5180.63 6382.05 6108.04 5613.90 7412.82

LESS:CURRENT LIABILITIES 1381.90 1728.50 2408.35 2855.37 2658.74 3689.41 4586.60 3852.92 2337.78 3079.54

& PROVISIONS

NET CURRENT ASSETS 159.76 71.57 189.85 700.01 1223.94 1491.22 1795.45 2255.12 3276.12 4333.28

MISC.EXPENDITURE 69.77 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

T O T A L 2027.32 2235.76 2216.89 2713.72 3175.41 3577.40 3970.45 4449.31 5529.03 6738.40

(Rs. In Crores)

Note : The financial statements for the current year are prepared on the basis of Revised Schedule VI ofthe Companies Act, 1956, as notified by Ministry of Corporate Afairs. Accordingly, previsous year(2010-11) figures are re-grouped in order to make comparable with current year figures. Figures prior to2010-11 are as per pre-revised schedule VI. setting one condensed


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WESTERN COALFIELDS LIMITEDCAPITAL EMPLOYED, NET WORTH AND RATIOS

(Rs. In Crores)

* NET PROFIT BEFORE TAX & AFTER PPA INCLUDES EARLIER YEARS PROVISION WRITTEN BACK.

PARTICULARS 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

CAPITAL EMPLOYED 1810.16 1527.36 1530.33 2028.44 2561.71 2846.06 3153.90 3647.08 4686.82 5819.36

NET WORTH 1239.67 1562.62 1788.04 2304.21 2650.31 2814.14 2914.11 3099.86 3236.56 3315.22

PAID UP CAPITAL 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(RUPEE) 4.17 5.26 6.02 7.76 8.92 9.47 9.81 10.43 10.89 11.16

LOAN FROM CIL AND OTHERS 549.77 363.80 148.02 135.49 122.97 112.98 133.60 109.52 102.56 101.97

DEBT/EQUITY RATIO 0.44:1 0.23:1 0.08:1 0.06:1 0.05:1 0.04:1 0.05:1 0.04:1 0.03:1 0.03:1

NET PROFIT(Rs.Cr) 478.63 741.67 917.09 1501.93 1104.90 920.07 511.09 941.84 1060.14 431.73

(BEFORE PPA, & TAX)

NET PROFIT FOR THE 26.44 48.56 59.93 74.04 43.13 32.33 16.21 25.82 25.87 7.42

YEAR AS % TO CAPITAL EMPLOYED

NET PROFIT(Rs.Cr) 472.53 743.60 935.30 1446.96 1054.44 930.22 516.12 931.03 1067.97 440.50

(BEFORE TAX BUT AFTER PPA.)

NET PROFIT AFTER PPA AS % TO 26.10 48.69 61.12 71.33 41.16 32.68 16.36 25.53 22.06 7.57

CAPITAL EMPLOYED

DEBTORS AS % TO GROSS SALES 26.06 21.40 15.74 8.44 8.01 5.73 5.59 3.90 2.08 1.59

INVENTORY OF STORES & SPARES 1.33 1.56 1.25 1.04 1.05 1.09 1.05 1.06 1.10 1.09

IN NO.OF MONTHS CONSUMPTION.

VALUE ADDED (Rs.Cr.) 2432.06 2570.54 3085.80 3485.32 3414.45 3789.27 4426.82 4667.86 4895.92 5678.68

MANPOWER

VALUE ADDED /EMPLOYEE (RS. 000) 335.45 364.54 447.62 517.30 520.50 590.60 708.38 766.86 829.21 996.45


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(Rs. In Crores)

WESTERN COALFIELDS LIMITEDPROFIT & LOSS ACCOUNT

(EXCLUDING CONTRA ITEMS)

PARTICULARS 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

SALES 3199.76 3359.74 3941.35 4382.35 4392.96 4909.18 5636.01 5836.63 5994.27 6750.01

(Net of Statutory Levies)

OTHER INCOME 270.61 440.08 287.38 328.83 387.13 507.63 558.94 560.35 464.78 680.69

ACCRETION/ -10.41 23.87 62.52 83.87 73.07 -54.08 -34.22 13.18 129.60 128.96

DECRETION IN STOCK

3459.96 3823.69 4291.25 4795.05 4853.16 5362.73 6160.73 6410.16 6588.65 7559.66

EMPLOYEES 1199.94 1358.21 1646.44 1420.21 1497.59 1910.02 2967.70 2595.21 2780.58 3991.41

REMUNERATION & BENEFITS

CONSUMPTION OF 530.26 564.80 667.85 724.64 750.69 762.88 872.72 856.32 863.43 920.26

STORES & SPARES

POWER & FUEL 184.15 189.21 186.41 184.68 221.56 225.63 229.09 242.85 259.20 281.94

REPAIRS 82.92 109.14 98.32 110.70 111.52 117.40 126.62 122.86 68.46 64.09

(PURCHASED)

CONTRACTUAL 231.57 244.85 331.40 383.14 396.10 491.84 536.10 570.98 467.51 501.01

EXPENSES

SOCIAL OVERHEAD 154.34 180.69 189.83 211.78 223.81 228.14 239.99 269.17 223.71 253.80

DEPRECIATION 173.31 182.92 170.91 164.50 178.28 185.65 176.44 171.41 188.16 195.65

INTEREST 46.72 25.22 8.29 4.31 5.55 4.33 3.97 4.85 3.30 3.20

PROVISIONS 255.94 57.93 -45.25 -133.00 -19.07 45.68 -25.01 -17.57 110.25 220.62

OTHER EXP :

OBR ADJUSTMENT -16.02 15.26 -7.60 35.16 158.57 262.77 280.37 305.61 314.56 458.95

OTHERS 138.20 153.79 127.56 187.00 223.66 208.32 241.65 346.63 249.35 237.00

2981.33 3082.02 3374.16 3293.12 3748.26 4442.66 5649.64 5468.32 5528.51 7127.93

PROFIT/LOSS FOR THE YEAR 478.63 741.67 917.09 1501.93 1104.90 920.07 511.09 941.84 1060.14 431.73

PRIOR PERIOD ADJUSTMENTS -6.10 1.93 18.21 -54.97 -50.46 10.15 5.03 -10.81 7.84 8.77

PROFIT AFTER PRIOR 472.53 743.60 935.30 1446.96 1054.44 930.22 516.12 931.03 1067.98 440.50

PERIOD ADJUSTEMENT

PROVISION FOR TAXATION 250.20 250.88 283.75 472.03 391.70 487.96 224.15 275.81 559.28 239.37

PROVISION FOR DEFERED TAX -57.45 31.07 51.36 -15.61 -19.64 -169.52 -43.46 9.61 -29.62 -105.59(ASSETS/LIABILITIES)

PROFIT AFTER TAX 279.78 461.65 600.19 990.54 682.38 611.78 335.43 645.61 538.32 306.72

NOTE : 1. FIGURES IN THIS STATEMENT ARE REARRANGED FROM THE PRINTED ACCOUNTS EXCLUDING CONTRA ITEMS.

2. The financial statements for the current year are prepared on the basis of Revised Schedule VI of the Companies Act, 1956, asnotified by Ministry of Corporate Afairs. Accordingly,previsous year (2010-11) figures are re-grouped in order to make comparablewith current year figures. Figures prior to 2010-11 are as per pre-revised schedule VI.


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MAP


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To

The Members/Shareholders,Western Coalfields Limited.

Your Directors have pleasure in

presenting the 37th Annual Report of Western

Coalfields Limited and Audited Accounts for

the year ended 31st March, 2012 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 are

located in Maharashtra and South-WestMadhya Pradesh. For Effective

administrative control and operations, the

mines have been grouped in 10 (Ten) Areas

as follows :

3. PERFORMANCE :

During the year 2011-12 your

Company has achieved coal production of

43.110 Million Tonnes against the AAP targetof 45.500 million tonnes which is 2.390 Million

tonnes less than the AAP target and 0.544

million tonnes less than last year actual

progressive of 43.654 million tonnes for the

same period. Productivity of the Company

has gone up upto 2.70 tonnes during the year

2011-12 which is more than the target of 2.54

tonnes and also more than actual progressive

last year of 2.65 tonnes for the same period.

DIRECTORS REPORT

Area District State Mines as on 1.4.2012

Chandrapur, Ballarpur,Majri, Wani and Wani North

Pench and Kanhan

Pathakhera

Total Numbers of Mines- WCL 82

Chandrapur& Yavatmal

Chhindwara

Betul

Maharashtra

Madhya

Pradesh

Madhya

Pradesh

Under-

groundOpencast Mixed

Nagpur and Umrer Nagpur Maharashtra 5

26

7

-

38

-

-

2

-

2

10

12

13

7

42

Overburden removal during the year

2011-12 was 122.488 million cubic meters

against the AAP target of 127.000 million cubic

meters which is 4.512 million cubic meters less

than the target and 6.664 million cubic meters

more than last year actual progressive of

115.824 cubic meters for the same period.

Notably, the Financial Year 2011-12 hadbeen a year full of challenges, whereas the

concerted efforts by the team of WCL could

lead to achievement of plus 94% performance.

Non-achievement of coal and OB target has

been mainly on account of non-revival of Umrer

OC, delay in physical possession of land in

opencast mines, adverse geo-mining conditions

prevailing in underground mines, incidences of

fire in underground districts and closure of PK-

II Under ground mine due to exhaustion ofreserves.

Coal Off-take during 2011-12 was

41.967 million tonnes which is 3.533 million

tonnes less than the targetted 45.500 million

tonnes that is 92.2% achievement and 0.593

million tonnes less than last years actual

42.560 million tonnes due to abrupt stoppage

of despatch of coal by Maharashtra Power

Generation Co. Limited (MAHAGENCO)

through Road/Rail mode w.e.f. 16/08/2011 andnon lifting of coal during monsoon by Himachal

Pradesh Power Generation Co. Limited

(HPPGCL) and Uttar Pradesh Rajya Vidyut

Utpadan Nigam Ltd.(UPRVUNL).

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

years is given in the following table :


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3.2 Coal Production and OB Removalfrom Opencast Mines :

Apropos supply of Steel Plants, the produc-

tion of Coking Coal from Tandsi UG, which

is major producer of Coking Coal in WCL, isless as the continuous Miner is working in

geologically distrubed zone where extensive

support is required.

PARAMETERS 2011-12

%Achie-vement

overTarget

i

ii

Coal production

( Million Tonnes)

Overburden

Removal

( Mill. Cub. Mtrs.)

36.200

127.000

2010-11Actual

34.720

122.488

95.9

96.4

34.950

115.824

TargetAAP

Actual

Sl.

no.

% Growthover last

year

-0.7

5.8

Shovel DumperA Shovel-Dumper in operation in one of the opencast Mine of WCL.

SL

NO

i)

ii)

iii)

iv)

v)

vi)

Target

AAP

45.500

2.54

45.500

45.399

0.2700

0.2700

Coal Production(million tonnes)

Overall Productivity(OMS) (in tonnes)

Total Off-take(million tonnes)

Despatches (Sales)(million tonnes)

Washed CoalProduction

(million tonnes)

Despatch toSteel Plants

(million tonnes)

2011-12Actual

43.654

2.65

42.560

42.536

0.1913

0.1930

Actual

43.110

2.70

41.967

41.932

0.1365

0.1361

%

Achieve-ment

overTarget

94.7

106.3

92.2

92.4

50.6

50.4

%GrowthOver

last year

-1.2

1.9

-1.4

-1.4

-28.6

-29.5

2011-12

PARAMETERS


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3.3 Mechanised Underground Coal

Production

The Mechanised Coal Production fromUnderground mines during the year 2011-12was 8.058 million tonnes which is 0.170 milliontonnes less than last years actual 8.228million tonnes. Production from ContinuousMiner Technology, which is in operation atTandsi and Kumberkhani Mines, was 0.150million tonnes which is 0.057 million tonnesless than last years actual 0.207 milliontonnes. Shifting of Continuous Miner toalternative dip side section due to

encountering of un-foreseen fault in levelsection, adverse geo-mining conditions atTandsi UG and shifting of Continuous Minerto next panel at Kumbharkhani UG affected

the production of Continuous Miners.

3.4 Coal Stock :

Coal Stock at the end of fiscal 2011-12

increased by 1.143 million tonnes and stood

at 5.093 million tonnes as compared to last

years 3.950 million tonnes, which has

accumulated due to non-lifting of 4.036 M.T.coal by Maharashtra State Power Generation

Co. Limited by road/rail mode w.e.f.16-8-2011.

4. SAFETY :

4.1 During the calender year 2011, there

had been a reduction in fatalities from

14 to 10 and a reduction of serious

injuries from 46 to 37 vis a vis 2010.

Skilled human resource are the

biggest asset for our company, hencetheir safety is of paramount

importance to us. Thrust is being

given in our company to increase

safety awareness at the grass-root

level by inculcating participative

management at the unit level by way

of safety committee meetings being

Load Haul Dump - A Coal Mining Machine in operation in one of the underground mine WCL


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(f) Annual Safety Fortnight was

conducted in all the mines of WCL

from 30.01.2012 to11.02.20124.2.2 Special stress has been given on

green roof support& qualitative face

support by roof bolting. Resin

capsules has also been introduced in

many underground mines specially in

watery strata.

4.2.3 Pit top safety talks are regularly

given in all the mines and the same

are being monitored during ISO

inspections.

4.2.4 Pit safety committeesof 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.

4.2.5 Back shift inspectionsby senior

officers of mine and area have beenintensified.

4.2.6 Officers who have been trained by

SIMTARS, Australia were engaged

for imparting training and

upgrading the knowledge of

executives and supervisors in

prevention of fire and evaluation of

risk management.

4.2.7 Area level committees have beenconstituted to conduct safety audit

of the minesto evaluate the safety

status of the mines.

4.2.8 Meetingswith Area Safety Officers

are conducted to evaluate the

implementation status of various

safety measures in the mines. The

mine inspection reports of

Workmen Inspectors (in form U)

conducted every month. Besides,

tripartite safety committee meetings

at Area level with active participationof 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 2011-12.

4.2 S t e ps T a k en d u r i ng 2 0 1 1- 1 2

to improve safety and reduce

accidents :

4.2.1(a) A Special safety awareness

drive on Green roof side and

support, safe practices in

haulage, belt conveyor, SDL/

LHD operations and face

equipment was conducted in all

underground mines of WCL

from 25.04.2011 to 07.05.2011.

(b) A Special Safety Awareness

Drive on Ventilation, Dust

Suppression, EmergencyOrganisation in association with

Rescue Department was

observed in UG mines from

25.07.2011 to 06.08.2011

(c) A Special Safety Awareness

Drive on Maintenance of Statutory

Records & Plans was conducted

in UG and OC Mines from

19.09.2011 to 30.09.2011.

(d) A special safety drive on

contractors workmen &

contractual works in OC mines

was carried out from 03.11.2011 to

12.11.2011

(e) VTC annual inspection in

association with HRD department

was organised from16.01.2012 to

29.01.2012.


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and other officials are regularly

monitored and rectification of

deficiencies pointed out areensured.

4.2.9 High powered multi-disciplinary

task force consisting of Steering

Committee Members, CGM(S&C)

and other senior officials of Hq.

randomly visit mines to evaluate

safety standards.

4.2.10 A high level committee has

inspected all the mines of WCL to

ascertain the preparedness formonsoon against water danger.

4.3 Statistics of Fatal Accidents :

4.4 Statistics of Injury frequency :

4.5 Technical Contribution in 2011-12 :

i) Vetting of operational plans of allmines by ISO at Hq.

ii) RMR study for each development

district for support design.iii) Accident enquiry in case of fatal &serious accidents and enquiry intomajor dangerous occurrences /incidents .

iv) Analysis of all accidents and incidentsso as to decide preventive safepractices.

4.6 Special Achievements in 2011-12 :

i) Fol lowing scien ti fi c s tudies have

been initiated by Scientific / Educational

institutes during 11-12.

a)Scientific Study of the OB DumpStability at Gondegoan OC beingdone by BIT Meshra;

b)Scientific Study of the OB DumpStability of Old OB dumps at Ukni OC being done by BIT Meshra;

c) Scientific Study for Supervision ofMining Operations of WesternQuarry of Umrer OC, Umrer Area being done by BIT Meshra;

d)Scientific Study to suggest suitablemethod for extraction/liquidation of

coal in Kumbharkhani UG of WaniNorth Area being done by CIMFR,Dhanbad;

e)Scientific study to asses the impactof depillaring at Saoner Mine 1,Nagpur Area being done by NIRM,KGF and

f) Scientific study for design of Mining &support design for thick seam 1 (a +b)at Mathani UG mine, Pench Area being done by NIRM, KGF

ii) To eliminate manual drilling, Mechanisedroof bolting has been introduced bydeployment of 31 departmental UDMs,1 contractual quard bolter, 2 convertedUDMs, 27 Hydraulic roof boltingmachines, 3 pneumatic roof boltingmachines and 41 Kargil type and otherroof bolting machines.

iii) To eliminate long and arduous travel,four Man Riding Systems are being used

(one each) in Tandsi, Mohan/MouriIncline, Saoner-1 and Shobhapur (1stsystem). Further, installation andcommissioning of 2 chair lift systems and2 rail car systems in four mines of WCL,i.e, Tawa-1, BC 3&4, Shobhapur (2nd

system) and Kumbharkhani mines is inprocess. In addition to the above, onesystem which was procured for Sarnimine is being shifted to Chattarpur-1mine and one system is under

procurement for Saoner mine no. 2.

Particulars

No. of fatal accidents

Persons involved

Rate per million tonne output

Rate per 3 lakhs manshift

2011(Calendar year)

2010(Calendar year)

9

10

0.23

0.19

11

14

0.32

0.26

2011

(Calendar year)

13 7

3.16

2.55

Particulars

Injury frequency

Injury frequency Rate per

million tonne output

Injury frequency Rate per 3

lakhs manshift

2010*

(Calendar year)

18 6

4.24

3.41


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4.7 Utilisation of Safety Budget 2011 12 :

5.0 RESCUE :

5.1 MAJOR ACHIEVEMENTS

5.1.1GETTING ISO 9001:2008

CERTIFICATION :

Your Company added in its cap the

prestigious ISO 9001:2008 Certification

when Mines Rescue Station, Nagpur,

the first Rescue Organization in India

amongst all Coal and Metal Companies,

obtained this certification.

5.2 Prompt Service in Emergency &

Reopening

5.2.1During 2011-12, two Spontaneous

Heating and five Reopening operations

have been dealt successfully. The

details are as under.

5.3 EXPANDING EXPERTISE TOCALIBRATE GAS DETECTORS:

5.3.1The importance of gas detectors in minesneed no explanation. Thoughmaintenance and calibration of gasdetectors are not in the ambit of our corecompetence, two officers were trainedto calibrate Drager make and Oldhammake gas detectors.

This venture will result in considerable

positive financial impact as well as

Head

Budget

Expenditure

Revenue

Rs. 8000.00 lakhs

Rs. 8050.00 lakhs

Capital

Rs. 728.00 lakhs

Rs. 220.92 lakhs

Sl.No.01

02

03

04

05

06

07

26.04.11

28.05.11

28.09.11

26.11.11

19.12.11

25.01.12

14.03.12

28.04.11

29.05.11

29.09.11

26.01.12

Mahakali/ChandrapurMathani/

PenchBC 3&4/Ballarpur

DRC/

ChandrapurSaoner-2/NagpurMahakali/Chandrapur

Silewara/Nagpur

Reopening of sealed off area toascertain stability of workingReopening of sealing of 10LN

section in 1 (B+C) seamReopening of sealed off area toascertain stability of working(panel C&H)Dealing of spontaneous heating

in sealed off area near main dip.Reopening of depillaring panelE-1(B) of seam VReopening and resealing ofPanel-M

Dealing of Spontaneous heatingin Section-C Panel (Seam IV-Bottom West)

DateColliery/

AreaReasons

Efforts to save time and energy - Chair Lift Manriding System


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27


improving operational efficiency. The

move is having a direct yearly financial

saving of around Rs.38 lakh. Further theacquired in-house expertise in these gas

detectors will increase the reliability as

well as availability of the detectors.

5.4 BECOMING A REVENUE

GENERATING ORGANIZATION:

Mines Rescue Station, Nagpur imparted

Rescue training to employees of M/S.

Sunflag Iron & Steel Company as well

as M/S. Manganese Ore India Limited

(MOIL) and generated revenue to the

tune of Rs. 08,86,256/- ( Rs. Eight Lakhs

Eighty Six Thousand Two Hundred Fifty Six)

during the financial year 2011-12.

5.5 COMPETITION/DRIVES IN RESCUE

SERVICES :

5.5.1 Inter Rescue Room Competition was

held in the month of December- 2011 .

RRRT, Parasia bagged the First Prize

under RRRT group and Rescue Room

Majri was adjudged First in Rescue

Room group.

5.5.2 Zonal /Inter Area Rescue Competition

was held at RRRT , Pathakhera On Dt:

09.02.2012. Overall First Prize was

bagged by Pathakhera Area, Overall

Second - Nagpur Area, Overall Third-

Chandrapur Area, Best Captain-Shri

Dilip Tripathi, Pathakhera Area &

Second best Captain Shri D.S.Satyarthi, Ballarpur Area.

5.5.3 All India Mines Rescue Competition

was held at RRRT, Talcher (MCL) from

24th to 26th February2012. In this

competition WCL- B Team has been

adjudged as Overall Third and B-Team

Captain Shri R.K. Suman,

Sr.Officer(Mining),Pench Area has

been awarded as Second Best Captain

in addition to other Prizes.

6. AVAILABILITY OF POWER AND

POWER & FUEL CONSUMPTION :

6.1 Availability of Power :

6.2 Power and fuel consumption :

6.2.1 Electricity :

7. POPULATION ANDPERFORMANCE OF EQUIPMENT :

7.1 Population of Equipment :

7.2 Performance of HEMMs :

7.2.1Availability of HEMMs :

i) Dragline & Dumper has achieved

CMPDIL-Norms for availability.

ii) Availability of Dragline,Shovel &

Dumper is more than CIL average.

7.2.2 Utilization of HEMMs :

i) Utilization of Dragline is more than

CMPDIL - Norms.

ii) Utilization of all the HEMMs in WCL

is more than CIL average.

7.3 Special Achievements :

7.3.1WCL is ranked as 1st in utilization ofDumper & Dozer, while 2nd in

Dragline & Shovel and 3rd in Drill

among all subsidiaries of CIL.

7.3.2 Equipment under breakdown more than

3 Months (9.5 % of total population of

Area

Average Contract Demand in MVA

Average Availed Demand in MVA

2011-12

136.200

123.590

2010-11

135.997

123.078

% Varitation

0.15

0.42

Purchased

Units in MKWH

Rate / unit

2011-12

612.93

6.49

2010-11

659.63

5.47

S.No. Equipment

1 Dragline

2 E.R. Shovel

3 Hydraulic E xcavator

4 Dumper

5 Dozer

6 Drill

TOTAL

Population As on 31st March

2012 2011

4

42

10 4

56 8

16 5

10 4

98 7

4

40

11 2

57 4

17 3

10 6

1009


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performance of the Company for the year2011-12 vis-a-vis 2010-11 is furnishedbelow : (Rs. in Crores)

equipment as on 31st March 12) is the

2ndLOWEST amongst all subsidiaries

of CIL. Also, it is less than CIL average.

7.3.3 To increase the production and

productivity of the company, 73 new

equipment including 60 Dumpers and 8

Shovels (Electrical and Hydraulic) were

purchased against surveyed off during

the year.

7.3.4 System Capacity Utilization of Open

Cast Mines of WCL :

8. FINANCIAL PERFORMANCE :

The Company has earned a profit beforetax in the year 2011-12 Rs.441 Croresas against Rs.1068 Crores in theprevious year 2010-11. The financial

Year

2010-11

2011-12

Capacity

Utilization

97.13%

104.67%

Capacity in

Mill. Cu.m.

89.14

82.45

Remarks

Based on CMPDI capacity as on

1st April, 2010.

Based on CMPDI capacity as on

1st April, 2011.

A Dragline in operation in one of the Opencast Mine of WCL

Sl. Particulars Amount Amount

No

1 Profit before tax for the year 2010-11 1068

2 FACTORS CONTRIBUTING TO DECREASE IN

PROFIT

i. Normal increase in Salary & Wages due to 158

increment,DA etc

i i. Impact of NCWA-IX on Salary & Wages exc luding 402

terminal benefits

iii. Impact of Actuarial valuation of terminal benefits e.g.

Gratuity, Leave Encashment, Settling Allowance, etc.

( including NCWA-IX Rs.452 crores) 650iv Increase in OBR adjustment cost 144

v Increase in Mine closure cost 121

vi Increase in input cost ( Stores & Spares Rs.57 crores,

Power & Fuel Rs. 23 crores , Other Misc. & welfare

expenses etc. Rs.18 crores ) 98

vii Decrease in withdrawal of provision for bad & doubtful 29 1602

debts

3 FACTORS CONTRIBUTING TO INCREASE IN PROFIT

i Increase in e-auction revenue 586

ii Increase in sales due to price revision w.e.f. 27.02.2011 240

iii Increase in non-operating income 219

iv Impact of GCV pricing w.e.f. 01.01.2012 -70 975

Profit before tax for the year 2011-12 441


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8.2 The working results for the year ascompared to the previous year are givenbelow :- ( Rs. in Crores)

APPROPRIATION :(Rs. in Crores)

8.3 Dividend :

Directors are pleased to recommend a

final dividend of Rs.184.04 Crores

(previous year Rs.323.25 Crores ) @

61.95% ( previous year 108.80% ) on

the paid up Equity Shares Capital of the

Company . The total dividend per share

is @ Rs.619.45( previous year

Rs.1088.00 per share ) on 29,71,000

Equity Shares of the Company.

8.4 Source and Application of funds:(Rs. in Crores)

9 . CAPITAL STRUCTURE :

9.1 Share Capital :

The Authorised Share Capital of your

Company is Rs. 800 crores comprising

of 80 lakhs Equity Shares of Rs. 1000/-

each of which Rs. 297.10 crores is paid

up Equity Share Capital (29.71 lakhsEquity Shares of Rs.1000/- each) which

remained unchanged during the year.

9.2 Loan Fund :

Unsecured Loans : ( Rs. in lakhs )

NOTES :1) Loans from Coal India Ltd. amounting to

Rs.10197.13 lakhs comprises of :

a) Coal Sector Rehabilitation Projectfrom International Bank forReconstruction and Development(IBRD)- Rs.4736.51 lakhs.

b) Coal Sector Rehabilitation Projectfrom Japan Bank of International

Cooperation (JBIC) - Rs.5460.62 lakhs.2) The loan amount of Rs. 10197.13 lakhs

includes adjustment of upwardfluctuation of foreign exchange to thetune of Rs.1431.57 lakhs .

3) A charge has been created fo rRs.165.00 crores on current assets forsecuring working capital facility fromCILs Consortium Banks as per jointdeed of hypothecation dated 01.09.2008 .This loan has, however, not been availed

so far

8357.48 7073.44

: 1359.41 905.15

248.06 174.02

1607.47 1079.17

:

6119.43 4742.67

: / 195.65 188.16

434.93 1063.44

: 3.20 3.30

431.73 1060.14

8.77 7.84

/() : / /

440.50

105.59

29.62

239.37 559.28

: /

1988.80 1932.82

FINAL DIVIDEND

TAX ON DIVIDEND

REVIOUS YEARS EXCESS TAX

PROV. ON DIVIDEND WRITTEN BACKTRANSFER TO CSR RESERVE

TRANSFER TO GENERAL RESERVE

TRANSFER TO BALANCE SHEET

2011-12

184.0429.860.00

21.8346.01

2013.77

2010-11

323.2452.44-1.50

27.4080.75

1988.80

Name of Balance Addition Repayment Balance SecurityFinancial as on due to during the as on details

Institution 01.04.2011 exchange year 31.03.2012fluctuation

(1) (2) (3) (4) (5) (6)(2+3-4)

CIL World 10256.38 1431.57 1490.82 10197.13 Ref.noteBank Loan 1& 2TOTAL 1 02 56 .3 8 1 43 1. 57 1 49 0. 82 1 01 97 .1 3

1234

Addition to reserve & surplusAddition to cumulative depreciation & ImpairmentDecrease in investmentIncrease in Other Long Term Liabilities &

Provisions Total

2011-12

92.81118.04

32.091117.15

1360.09

SOURCES OF FUND

APPLICATION OF FUNDS :

12

345

Additions to fixed assets & capital WIPIncrease in working capital

Increase in long term Loans & AdvancesDecrease in Long Term BorrowingsIncrease in deferred tax assets Total

2011-12

192.97

1054.77

3.782.98

105.591360.09


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10. WORLDBANK ASSISTANCE :

Your Company has not received any

assistance directly from World Bank ,though assistance through Coal India

Limited , under ESMP and CSRP

Schemes to the extent of Rs. 3.20

crores (Previous year Rs. 3.29

crores) has been received during the

year 2011-12.

11. BORROWINGS FROM GOVT. OF

INDIA :

Your Company has not borrowed anyamount from the Government of India

directly during the year 2011-12.

12. CAPITAL EXPENDITURE :

During the year ending 31st March,

2012 an amount of Rs. 275.72 crores

(excluding capital commitment of Rs.

82.19 crores) was invested in Fixed

Assets and Capital Work-in-progress of

existing and upcoming Mines/Projects.

The capital expenditure for the previous

year was Rs. 239.74 crores.

13. ROYALTY, SALES TAX , ENTRY

TAX , EXCISE DUTY & OTHER

DUTIES ON COAL :

13.1 Royalty, Sales Tax , Entry Tax , Stowing

Excise Duty , Clean Energy Cess and

Central Excise Duty paid to Govt. during

the year are as given below :-

( Rs. in Crores )

13.2 By virtue of enactment of Cess & Other

Taxes on Minerals (Validation) Act, 1992,

the Company raiseds upplementary billson customers upto 04.04.1991. An

amount of Rs. 2.96 Crores ( Previous

year Rs. 2.96 Crores) has been shown

as liability for Cess on Royalty under the

headOther Current Liabilities. In view ofthe judgement of the Honble High Court,

Patna, and Ranchi Bench in Writ Petition

No.CWJC/1280 of 1992, the said Cess

is not payable. However, a Special

Leave Petition (SLP) is pending in

Honble SupremeCourt against it.

14. PLANNING :

14.1 The production achieved during the

year 2011-12 and targeted

production for the year 2012-13 is

given below :

15. DRILLING & EXPLORATION :

15.1 During the fiscal year 2011-12,exploratory dril l ing carried out byCMPDIL has been 13655 m in WCLcommand area. 187.876 Mte CoalReserves have been proved inPimpalgaon Deep, Wani Mander & Pauni

Amalgamated Block.The target for drilling in 2012-13 inWCL command area is 27000 m.

16. REPORT FORMULATION:

16.1 During the year the following GeologicalReports were prepared:

Particulars

1 Production (in million tonnes)

2 Productivi ty (OMS)

2012-13AAP Target

(As Per Annual

Action Plan)

45.00

2.58

2011-12

Target

45.50

2.54

Actual

Provisional

43.110

2.67

Royalty 99.07 526.30 625.37 96.02 499.82 595.84

Sales Tax:

State 50.13 222.07 272.20 38.84 148.19 187.03

Central 9.10 34.93 44.03 5.14 26.46 31.60

Entry Tax 10.23 0.00 10.23 10.61 0.00 10.61

S.E. Duty 6.49 35.69 42.18 6.99 36.39 43.38

Clean E nergy Cess 29.63 16 3.95 19 6.58 21.98 11 7.54 139.52

Central Excise Duty 53.87 288.23 342.10 5.18 23.10 28.28

Total 258.52 1271.17 11529.69 184.76 851.50 1036.36

2011-12 2010-11

M.P. Maharashtra Total M.P. Maharashtra Total

S. No Name of Geological Reports

1. Pimpalgaon

2. Wani Mander3 . Pauni Amalgamated Block


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16.2 During the year following 7 MiningProject Reports / Schemes wereformulated/recast :

16.3 PLANNING PREPAREDNESS:

16.3.1 24 new mining projects wereenvisaged in X Plan, mainly to sustainpresent level of production fromexisting and completed group of mines.The total capacity & productioncontribution of these X Plan projectsis given below:

* Waghoda UG (0.39 Mty) and JunadExtn. OC (0.60 Mty) have been shiftedto XI Plan, as CSA on Cost plus wasfinalised on 18.04.2007

** Saoner UG Mine No. III (with ContinuousMiner Technology), has been dropped,due to insufficient balance reserve fordeployment of Continuous Miner.

Out of 21 X Plan projects, 14 (09 ongoingand 5 completed) are contributingproduction. One Project viz Junakunada

OC has been commissioned in 2011-12and remaining 7 projects could not bestarted because physical possession ofland could not be obtained due toexpectations of very high landcompensation by land losers, which isbeyond norms.

16.3.2 Presently, there are 29 Projects of XIPlan with a sanctioned Capacity of 38.75MTY and Capital of Rs.5357.52 Cr.identified to sustain the present level ofproduction of your Company.

STATUS XI PLAN PROJECTS

17. XI PLAN PROJECTS APPROVEDDURING 2011 :

17.1

17.2 Out of 29 Projects of XI Plan , PRs forall 29 no. of Project Reports have beenformulated by CMPDIL & out of 29projects, 6 projects have been approvedby WCL Board and are at differentstages of implementation, while 21projects have been approved subject tofinalization of Cost Plus Agreement withprospective consumer/ accorded Ist

stage Approval. Remaining 2 Projectsare being recasted.

17.2.1 Status of 5 Projects of XI plan, thatwere placed before WCL Board in 2011-12 is as under :

PR of 3 projects, namely Shivani OC,Wanoja OC & Gandhigram UG wereaccorded I stage approval by WCLBoard for the purpose of environmentaland / forestry clearance.

PR of 2 projects namely Padmapur

Deep OC & New Majri Sector IA &

No. ofProjects

Capacity

(Mty.)Capital(Rs.Crs.)

21

2*1**24

16.64

0.99

17.63

11.2446

0.60

11.8446

980.83

110.49

1091.321

Projects already approved

Projects shifted to XI PlanProjects droppedTotal

Contribution ofprodn. in

2011-12 (M.Te.)

TYPE NO. Capacity Capital(Mty.) (Rs. in Crs.)

UG 08 05.55 1077.64OC 21 33.20 4279.87TOTAL 29 38.75 5357.52PROJECT APPROVEDUG 1 0.39 71.73OC 5 7.90 481.50TOTAL 6 8.29 553.23

PROJECTS REPORT APPROVEDSUBJECT TO CSAUG 6 3.96 522.28OC 5 7.80 956.93TOTAL 11 11.76 1479.20

S. Name of the Project Capacity CapitalNo. (Mty.) (Rs.crs.)

1 Shivani OC 1.25 348.892 Wanoja OC 0.50 140.463 Gandhigram UG 1.20 483.63

4 Padmapur Deep OC 2.50 66.28

5 New Majri Sector IA & Sector IIAExtn. OC 1.00 54.28Total 6.45 1093.54

PROJECT ACCORDED IstSTAGEAPPROVALOC 9 13.25 1945.00UG 1 1.20 483.30

TOTAL 10 14.45 2428.63

PROJECT REPORTS FORMULATEDAND UNDER RECAST/TO BE APPROVEDOC 2 4.25 896.45

S. Name of Project Capacity Captial

No. (Mty.) ( Crores)

1 Visapur OC 1.00 287.92

2 Ghuggus Expn. (Sector C) OC 0.80 307.03

3 Padmapur Extn. Deep OC 2.50 66.28

4 Urdhan Magrahi OC 2.00 373.23

5 Mungoli Nirguda Deep Extn. OC 3.00 197.60

6 Parsoda OC 0.80 361.38

7 Nandgaon Reorg. UG 0.36 115.30

Total 10.46 1708.74


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Sector IIA Extn. OC were accorded Istage approval by WCL Board for thepurpose of environmental clearance with

permission to enter in to cost plusagreement with prospective consumers.Project Reports of remaining 2projects,namely Chikalgaon ChinchalaAmalgamated OC & Bhatadih Expn IIOC are being recasted.

Out of 6 approved Ongoing projects ofXI Plan, 3 projects namely Scheme forExtension of Ghugus OC, Scheme forExtension of Gauri- I and Gauri -II(Merger) OC & Junad Extension OC arecontributing production. The productionfrom these mines during 2011-12 is 3.77M.Te.

17.2.2 Coal Supply Agreement (CSA) onnegotiated price to yield requisite IRR% for approval of Project:

Total 32Projects have been approved till2011-12 on cost plus basis, out of whichCoal Supply Agreements for 07 projectshave already been signed. 6 projects,namely, Sharda UG , Harradol UG,Dhankasa UG, Dhuptala (Sasti UG toOC ), New Majri UG to OC and DineshOC, have been offered to MAHAGENCO

and MPPGCL on cost plus basis for whichIn Principal consent has been received& Coal supply agreements are underfinalisation .

17.2.3 In order to open new mines, which arefinancially unviable at Notified Price, thefollowing alternatives are being explored :-

a)Efforts are being made to plan minesby total/partial hiring of equipment atenhanced capacity ensuring minimum12 % IRR at 85 % capacity utilisationas per Govt. of India guidelines.

b)To enter into Coal Supply Agreementwith the consumers who are agreeableto pay the price yielding 12 % IRR at85 % capacity.

c)As per MOC guidelines 13 nos. offinancially unviable projects wereplaced on the Website of WCL. andapplications were invited from LOAholders /FSA holders/ Linkage holdersboth from Cost Plus Category &Notified Price Category. Based on theapplications, allocation of Coal from 3Cost Plus Mines namely Urdhan OC,

Bellora Naigaon OC and Ukni Deep

OC, has been approved for M/sMAHAGENCO and M/S WardhaPower Ltd on Cost Plus Basis.

Applications received for remainingprojects are proposed for shifting fromnotified price to cost plus price.Accordingly a proposal has been sentto MOC on 17.03.2012.Coal supply agreements are to besigned shortly with MAHAGENCO forsupply of coal on Cost Plus Basis fromNew Majri UG to OC,Bellora NaigaonDeep OC& Ukni Deep OC.

18. PROJECTS / SCHEMES APPROVALAND COMPLETION:

18.1 Approval of Project Reports :

During the year 2011-12, following 10projects/Schemes have been approvedfor a total capacity of 10.13 MillionTonnes (1 underground project of 1.20million tonne capacity and 9 Opencastprojects/ Schemes of 8.93 million tonnescapacity) with a total Capital Investmentof 1699.50 crores:

18.2 Completion of Projects :

During the year 2011-12 Scheme for

Extension of Gauri- I and Gauri -II(Merger) OC has achieved the norms ofcompletion, and Completion Report isunder formulation.

18.3 Brief Status of Ongoing Projects :

At present there are 33 Ongoing Projects

(19 Projects having a Capital of more

S. Name of the Project Capacity CapitalNo. (Mty.) (Rs. crs.)1 Shivani OC 1.25 348.89

2 Wanoja OC 0.50 140.463 Gandhigram UG 1.20 483.634 Ghugus Expansion (Sector C) OC 0.80 307.03

5 Padmapur Deep OC 2.50 66.286 New Majri Sector IA & Sector IIA Extn. OC 1.00 54.287 Visapur OC 1.00 287.92

8 Scheme for Shivpuri OC 0.50 0.749 Scheme for Padmapur OC 1.00 9.9310 Scheme for InderUG to OC 0.38 0.34

Total 10.13 1699.50

S.No.

1

Capacity(Mty)

1.20

Capital(Rs. Crs.)

13.00

Name of Project

Scheme for Extension of Gauri- I

and Gauri - II (Merger) OC


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than Rs. 20 Cr. & 14 Projects having a

Capital of less than Rs. 20 Cr.) with a

Sanctioned Capacity of 32.081 MTY and

Capital of Rs. 1396.33 Cr. Out of 33

Projects, 22 are in operation and rest are

under implementation. Contribution of

18 Projects in Coal production for 2011-

12 was 16.7123 Mte as compared to

13.2751 Mte in 2010-11.

18.4 Acquisition of land

18.4.1 The Coal Bearing Areas (Acquisition

& Development) Act, 1957 is the main

stay for acquiring land by the Central

Government and vested with WCL for

coal mining activities. The

compensation is assessed by WCL as

per the provisions of the Act and

disbursed after getting sanction from

the Ministry of Coal, Government of

India. All facilities under the R&R

Policy of CIL are extended while

acquisition through CBA (A&D) Act,

1957. Under CBA Act, WCL has

acquired, since Nationalization16820.628 Ha. of land till March, 2012

out of which 9728.291 Ha. is under

possession.

18.4.1.1.The Land Acquisition Act has also

been invoked invariably for acquiring

land by our Company, which is done

through State Government on

requisition by Central Government. All

facilities under the R&R Policy of CIL

are extended under this acquisition also.18.4.1.2 WCL has acquired, since

nationalization, 4180.41 Ha. land till

March, 2012 out of which 3883.05 Ha.

is under possession.

18.4.1.3The provisions of Land Revenue Code

of Madhya Pradesh and Maharashtra

have also been referred for acquiring

land in cases where mining lease has

been obtained under Mineral

Concession Rules.

18.4.1.4 WCL has acquired and taken

possession of 1558.096 Ha. landunder

this provision.18.4.1.5This year your Company has made

a remarkable achievement in

acquisition of land for mining and allied

activities. The details of acquisition in

2011-12 is as under :-

18.4.2 Details of physical possession during2011-12 is as under :

18.4.2.1Summerised Status of land acquired

during the year 2011-12 is as under :-

Details Total land Land taken inacquired possession

Under LA Act, CBA Act, MPLR 2240.194 332.387and Direct Purchase.

Sl. Area Project Mode of TotalNo. acquisition (In Ha.)

1 Majri New Majri UG to OC CBA 431.2702 Chandrapur Bhatadi Expn. OC CBA 467.210

3 Wani North Kolarpimpri Extn. OC CBA 692.180

4 Wani North Junad Extn. OC CBA 132.7305 Pench Jamunia UG CBA 310.638

6 Nagpur Kamptee UG to OC LA 34.7507 Ballarpur Extension of Sasti OC LA 149.3008 Ballarpur Sasti OC Direct Purchase 5.860

9 Nagpur Gondegaon-GhatrohanaAmalgamated OC Direct Purchase 3.280

10 Kanhan Datla (Takiya Nallah) MPLRC 12.976

Phase - VIITotal : 2240.194

Sl. Area Project Mode T enancy Govt. Forest TotalNo.

1 Ballarpur Gouri Deep CBA 25.060 0.000 0.000 25.060

Extn. OC

2 Ballarpur Ballarpur LA 17.680 0.000 0.000 17.680Expn. OC

3 Ballarpur Sasti OC Direct 5.860 0.000 0.000 5.860

PurchaseMajri Navin CBA 88.090 11.290 0.000 99.380

Kunada OC

4 Majri Dhorwasa OC CBA 13.640 0.040 0.000 13.6805 Wani North Junad Extn. OC CBA 1.200 0.000 0.000 1.200

6 Pench Urdhan OC CBA 78.851 0.000 0.000 78.851

7 Kanhan Datla (Takiya MPLRC 12.976 0.000 0.000 12.976Nallah Ph - VII)

8 Nagpur Gondegaon Direct 3.280 0.000 0.000 3.280

Ghatrohana PurchaseAmalgamated OC

9 Nagpur Gondegaon CBA 52.550 0.000 0.000 52.55GhatrohanaAmalgamated OC

10 Nagpur Bhanegaon OCP CBA 21.870 0.000 0.000 21.870

T O T A L 321.057 11.33 0.000 332.387


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18.4.3 Forest land acquisitionForest land is diverted from StateGovernment as per the provisions of

Forest Conservation Act, 1980 afterapproval from MOEF, New Delhi. Thisyear 5.00 Ha. forest lease renewalobtained for Pathakhera Magazine forPathakhera Area.Details of forest land released during2011-12 is as under :-

2nd Stage clearance obtained forSurface Rights :

Pathakhera (PKD Magazine)-5.00 Ha.

(Renewal of lease)

1st Stage clearance obtained forSurface Rights :Shobhapur UG, Pathakhera Area -90.00 Ha.(Renewal of lease)Ghorawari OC, Kanhan Area-19.50 Ha.

18.4.4 Rehabilitation and Re-settlement :

07Families of Padmapur OCPChandrapur Area and 42 Families ofTakia Nallah (Ghorawari) of KanhanArea have been resettled by providingresettlement grant as opted by landoustees, within the provisions of R&RPolicy of CIL.

Total Project Affected Families Resettledin 2011-12 are 49 Nos.

Administrative approval for employmentduring 2011-12 :

18.4.5 Special Achievement:

There is 9.24% growth in land acquisitionover last year and highest everacquisition since last 21 years.

There is 1.64 % growth in possessionof land over last year and highest sincelast 6 years.

18.4.6 Constraints in acquisition of land

i) Demand of higher rate of land

compensation by land owners.ii) Demand for employment beyond

norms.

iii)Physical possession of land

becomes extremely difficult due to (I)

and (II) as above.

iv)Pursuance of State Authorities to

implement States R&R Policy instead

of CILs R&R Policy.

v)High expectations by Project

Displaced Families in resettlement

and rehabilitation beyond norm,

causing resettlement of village over

delayed.

To overcome the above constraints

New R&R Policy of CIL 2012 has been

approved by CIL Board in its 279 th

Meeting held on 12th& 13thMarch, 2012,

which is under the process of

implementation in WCL.

19. COAL MARKETING :

19.1 Raw Coal Offtake during the Fiscal

2011-12 was 41.967 Mill Te against the

TGT of 45.50 Mill Te i.e achiement of

92.2 % of Target. Offtake during the

fiscal 2010-11 was 42.560 Mill Te thus

growth during 2011-12 as against 10-

11 was (-) 1.4%

19.1.2 Modewise AAP TGT and despatches(Sales) by Rail & Road for 2010-11 &

2011-12 are furnished below :

DESPATCHES (Figs. in Mill.te.)

Year Employment/ Employment Monetary Total

monetary compensation provided compensationadministratively approved provided

by WCL Board

2011-12 04 Nos. 103 Nos. 10 Nos. 113 Nos.

YEAR AAP

TARET RAIL ROAD MGR ROPE TOTAL(By All & BELT DESPATCHESModes) SALE

2010-11 46.411 17.908 20.153 0.813 3.662 42.5362011-12 45.399 18.283 18.525 1.072 4.052 41.932

ACTUAL


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19.2 WAGON LOADING (IN BOXES/DAY)

The details of AAP TGT Loading on dailyAvg Basis & quantity despatched for the

year 2011-12 as compared to 10-11

Remarks :

1. Despatches by Rail during 2011-12 wasless against the Targetted Loading due

to less drawal of coal by Mahagenco &

non lifting of coal by Parichha & Panipatduring Rainy season, & failure oftransport Contractors in execution of

contracts .

2. PU have been given opportunity tosource additional requirement by liftingcoal on as is where is basis during thefiscal 2011-12. to build comfortablestocks. The quantity offered was 27.16lac Te & the lifting was 10.0 LTE till31.3.12.

3. Besides, offtake of coal to the tune of1.80 Mill Te from Umrer OC could not be

materialised on account of non-availibilityof coal from Umrer OC due to ForceMajeure conditions.

4. The actual offtake was less than MOUtarget mainly due to non lifting of 4.036Mill Te through Road cum rail mode sinceAug11 alongwith 1.072 Mill Te lessdrawal of coal through Captive Modes(Rope, MGR & Belt) by CSTPSMahagenco

19.3 Sales Realisation :

19.3.1 Sales realisation during 2011-12 was

Rs.8620.70 crore which represents a

growth of 17.86% over the previous year.

Sales realisation during 2010-11 was

Rs.7314.00 crore.

19.3.2 The total sales outstanding dues

which was Rs.147.32 crore as on

01.04.2011 has decreased by 19.18% to

the level of Rs.119.07 crore (includingdues for performance incentives of

Rs.52.87 crore) as on 31.03.2012. The

reduction in outstanding is mainly in

respect of the major Power Houses.

19.4 Sale of coal through e-Auction

19.4.1 Spot e-Auction :

Quantity offered under Spot e-Auction,

quantity allocated and additional

revenue generated based on the

YEAR TARGET ACTUAL % Achievment Rail Desp.

in MT

2010-11 916 765 84 17.908

2011-12 876 761 87 18.283

SECTOR

Power

includingIPP

Middling

and Slurry

Cement

Including

CPP

Steel

(Raw)

Sponge

Iron

CPP

OTHERS

TOTAL

C.C

Total

Offtake

AAP

Target

34.260

0.190

1.600

0.541

0.410

2.300

6.369

45.480

0.020

45.500

Actual

29.252

0.107

1.843

0.270

0.336

1.485

8.773

41.959

0.008

41.967

85.382

56.316

115.188

49.908

81.951

64.565

137.745

92.258

40.000

92.235

ACTUAL

2010-11

30.848

0.176

1.902

0.384

0.369

1.341

7.707

42.551

0.009

42.560

Growth

over

2010-11

-5.2

-39.2

-3.1

-29.7

-8.9

10.74

13.83

-1.39

-11.11

-1.39

Less drawal ofCoal byM a h a g e n c oabrupt stoppageof Rail / RD modefrom16.8.11

Source ofwashery Gradecoal as feed toWashery havereduced whichhas resulted inless off-take ofWG coal.

Coal supplied as

per FSA

Source ofwashery Gradecoal as feed toWashery havereduced whichhas resulted inless off-take ofWG coal.

Coal supplied as

per FSA

Coal supplied as

per FSA

Inculudes FSA/

e-Auction

Achiev-

ment

%

2011-12

REMARK


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19.4.1.2 Forward e-Auction

For the year 2011-12, four Forwarde-Auctions have been heldcovering the four quarters of theyear, performance of which isgiven below :

*also include quarters of 2012-13.

20. CONSUMER SATISFACTION:

WCL has adopted various measures to

ensure supply of quality coal to the

consumers, as brought out hereunder:

Year Quant ity of fered Quantity al located Additional Revenue

( lakh tonnes) ( lakh tonnes) (generated (Rs.in crs.)

2010-11 59.59 58.16 613.40

2011-12 70.47 64.14 713.55

Jan.12 to Dec12 2.44 1.09 13.19Oct.11 to Sept.12* 1.99 0.78 8.98July11 to June12* 1.25 0.21 2.61

April11 to March12* 5.12 5.11 50.77

Forward e-Auction

Years for whichauctions were

conducted

Quantity

offered(in lakh tes)

Quantity

Allocatedoffered

(in lakh tes)

Addl. Revenue

generated (as per theqty. allocated in

e-auctions)(Rs. in crs)

A view of Coal Washery at Nandan, Kanhan Area of WCL

quantities allocated to the bidders

during the years 2010-11 and 2011-

12, are given below :

As compared to the year 2010-11,realisation during the year 2011-12increased by Rs.100.15 crs. One ofthe main reasons for increase inadditional revenue generation during2011-12, is increase in the offered

quantity.

19.4.1.1 Additional Revenue GeneratedDuring 2011-12, considering thequantities allocated to thesuccessful bidders, the total ofRs.713.55 crs. was generatedadditionally under Spot e-Auction.


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20.1 Quality of Coal:

20.1.1 The Grade materialization of our

Company during the period 2011-12 is90.57% as compared to 91.88%

achieved last year which is mainly due

to less grade materialisation of

Patherkheda Area from January 2012

to March 2012.The despatches

covered under Joint Sampling and

analysis is 100% in WCL.

20.1.2 Against coal supply to Maharashtra

State Power Generation Company

Limited (MAHAGENCO) from

Durgapur Deep Extension,Bhatadi O/C

Junad Extn, Adasa UG and Kolgaon

O/C on cost plus basis mines,

incentive of approximately Rs.124.59

per tonne, Rs.190.94 per Tonne,

Rs.7.52 per tonne, Rs.4.68 per tonne

and Rs.24.17 per tonne respectively

has been earned during the period

April, 2011 to March, 2012.

20.1.3 The grade materialization of coal

supplies to Gujarat State Electricity

Corporation Limited (GSECL) and

Karnataka Power Corporation Limited

(KPCL) are 100% & 99.71%

respectively.

20.1.4 The weighted average Useful Heat

value (UHV) up to Dec11 & Gross

calorific value (GCV) w.e.f. 01.01.12

to 31.03.12 of coal supplied to followingPower Generating Companies was

more than the required UHV, as per

boiler parameters during 2011-12

20.1.5 The average monthly generation ofMaharashtra State Power

Generation Company Limited(MAHAGENCO) during April 2011to March 2012 is 3107.012 MU

(prov) as compared to 3035.519MU generated during April 2010to March 2011.

20.2 Weighment :

Total 103 Electronic. Road

Weighbridges and 24 RailWeighbridges are working/operational and Overall weighmentpercentage during 2011-12 was asunder:-

20.3 Crushing:

The installed annual crushing capacity

for Open Cast mines is 46.20 million

tonnes.

20.4 Quality Dispute Redressal:

a) In 2011-12, total 102 complaints have

been received. The complaints are of

lumpy coal, extraneous material, wet

and sticky coal.

b)Complaints received are registered,

acknowledged, investigated and

corrective remedial measures are

taken on top most priority forredressal

c)Regular feedback obtained to

maintain high quality standards.

d)Remedial measures taken are as

under:

Following measures are taken at Area

level to improve the quality of coal

supplied to the consumers to minimize

the complaints:

Power Sector

Maharashtra StatePower Generation

Co. Ltd (MSPGCL)

Required

UHV/Grade

3056/F

UHV (K.cal/kg)

(From April11 to Dec11)GCV (Kcal/Kg)(From

Jan12 to Mar12)

Supplied

UHV/Grade

3666/E

Required

GCV

4212

Supplied

GCV

4766

YEAR BY RAIL BY OTHER MODES OVERALL

Target% Actual% Target% Actual% Target% Actual%

2011-12 98.00 99.95 100.00 100.00 99.08 99.98


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1)Selective mining

2)Deployment of sufficient pickers at

faces Stock and Siding to separateextraneous materials from coal

3)Proper cleaning and maintenance of

siding

4)The crushing facilities are provided at

the mines/at loading points to

despatch sized coal

5)All weighbridges of WCL are regularly

calibrated and stamped by Weights

and Measures Department for proper

weighment.

21. TELECOMMUNICATION :

21.1 Existing Telecommunication Systems:

VOICE & DATA Communication:

WCL (HQ) has an efficient voice and

data communication network connecting

WCL HQ with Area Hqrs. Stores through

BSNL leased lines.

21.1.1 Surface Communication :i) During 2011-12 total 9 Nos. of state

of art IP EPABX systems have been

procured and commissioned at Sasti

O/C Ballarpur Area, Ukni OC &

Bhandewada mines of Wani North

Area, Chattarpur II, Patherkhera Area,

Area Hospital, Kanhan Area,

Durgapur colony, DRC & Padmapur

mines of Chandrapur Area, MRS

Indora Complex, WCL HQ. Further,one more EPABX system has been

ordered & is under installation at

NMUG mine of Majri Area.

ii) 2 Mbps leased internet service at WCL

HQ is in operation catering the need

for various applications such as tender

uploading, e-auctioning, web browsing etc.

iii)Presently 3 nos of telemonitoring

systems is in operation at Naglone,

DRC & Ballarpur 3 &4 pits to monitor

environmental condition in UG mines

including continous measurement ofCarbon Monoxide, Methane, Oxygen

& Temperature. The telemonitoring

system at NMC-3 mine & Naglone

mine has been restructured with

independent surface monitoring.

iv) During the period a digital TETRA

based mobile communication system

has been introduced at Durgapur OC

mines of Chandrapur Area which has

contributed to enhance operationalefficiency of the mines. Based on the

success story, it is also proposed to

introduce the same in Gondegaon

mine of Nagpur Area & is under

tendering process.

21.1.2 Underground communication :

During 2011-12 1 no. of Auto-cum-

Manual telephone systems of

underground mines has been

procured & is under installation at

NMUG mines of Majri Area for efficient

surface to UG communication & vice

versa to improve safety of UG mine.

22. COMPUTERISATION :

22.1 Status of activities planned for 2011-12

Sl. Particulars of Activities StatusNo.1 Development of Centralised Performance

Incentive Computation Software for FSAconsumers. Achieved

2 Development of Uniform Sales Report based

on class/type of coal and nature of sale acrossall the Areas of WCL. Achieved

3 Development of Daily Attendance System for

use in Unit Level on Oracle platform. Achieved4 Decentralization of Tender Uploading across all

the Areas of WCL. Achieved

5 Segment Report of Balance Sheet and Profitand Loss statement. Achieved

6 Closing Stock valuation of Final Accounts Achieved7 Redesigning of WCL Website to Dynamic mode Achieved

8 Online Vig ilance grievance redressal System Achieved


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22.2 Activities planned for 2012-13

1. Consolidation of 22 existing servers at

10 Areas to a Centralized Data Basefor entire WCL.

2. Deployment of Biometric Attendance

System in WCL HQ integrated with

Payroll System and subsequent action

for entire WCL.

3. Finalisation of specification and taking

necessary actions for deployment of

a central data base server connected

upto Mine/ Weighbridge levelwith

MPLS/VPN network (to be provided by

E&T department).

4. Development of Oracle base Pension

System.

5. Development of a consolidate

database for PF, Pension and Gratuity

for entire WCL.

23. ROLE PLAYED BY YOUR COMPANY

IN DEVELOPMENTAND SUSTAINING

SMALL SCALE INDUSTRIAL UNITS :

23.1 WCL, a key Public Sector company in

this region, is making all efforts in

development of Small Scale Industrial

units in Vidarbha Region. This is evident

from the fact that up to the year 2011-12

14 small industrial units were anciliarised

which qualifies them for securing orders

from WCL (HQ) as well as Areas.

24. MANAGEMENT OF INVENTORIES :

24.1 WCL has maintained its position at the

top (amongst CIL subsidiaries) in respect

of Inventory Management.

24.2 Comparative position of net inventory

vis-a-vis annual consumption of stores

and spares in respect of last three years

is as under :

24.3 To have better control over inventory and

consumption 41 charged off stores have

been computerised.

24.4 LONG TERM AGREEMENT :

WCL has entered into a Long Term

Agreementwith M/s IOC Ltd. for supply

of HS Diesel w.e.f. 01.04.2009 to

31.03.2012 with provision for extension

of the same for further period of two years

i.e. upto 31.03.2014 as per mutual

agreement.

24.5 SPECIAL AGREEMENT :

24.5.1 WCL has entered into a MOU with M/s SAIL for supply of various types of Iron

& Steel materials w.e.f. 01.04.2012. The

validity of MOU is up-to 31.03.2013. The

approved off-take value is 46.68 Crores

for an approximate quantity of 11000 mts.

of materials. 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 and during the year 2010-11/

2011-12, as a further improvement

system, e-tendering with e-price bid has

been introduced. So far, 217 e-tenders

have been hosted with an estimated

tender value of Rs. 419.31 Crores

(Fig. Rs. in Lakhs)

Sr. No. Financial Net Annual Inventory in % ageYear Inventory Consumption terms of change in

months inventoryconsumption

1 2009-10 7383.00 88514.37 1.00 (+) 01.02

2 2010-11 7425.74 86519.43 0.03 (+) 01.00

3 2011-12 7606.00 92026.00 1.00 (+) 01.02


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24.7 MODEL DEPOT AGREEMENT :

WCL has finalized Model Depot

Agreement with M/s Bharat Power

Corporation Limited for supply of

transmission and electrical spares being

the lead company nominated by Coal

India Ltd.

25. HUMAN RESOURCES MANAGEMENT :

25.1 Manpower :

The Companys manpower as on

31.03.2012 as compared to that on31.03.2011 is furnished below :-

25.2 Human Resource Development (HRD)

25.2.1 In-Company training :

In-Company training plays a vital role

in the honing of skills and 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 (HEMM TI), Durgapur

cater needs of functional, cross-

functional and other training courses of

the executives, supervisors and workers.

The break-up of number of executives,

supervisors and workers trained during

2011-12 in the four Institutes are as

given below :

NUMBER OF EXECUTIVES TRAINED AT IICM, RANCHI -114

25.2.2 Out-Company Training :

a) In India - Out-Company trainingincluding Gandhi Labour Foundation

(GLF), Puri is an important activity of

HRD department, through which

improvement in efficiency and

productivity of employees is sought by

sharpening their managerial , technical

and functional skills. For this purpose,

the employees are 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), various

organisations such as Indian Institute

of Industrial Engineering(IIIE), Indian

Institute of Materials Management

(IIMM), National Productivity Council

(NPC), MGMI , National Institute of

Personnel Management (NIPM) ,

Gandhi Labour Foundation Puri etc andalso Original Equipment Manufacturers

(OEM) such as BEML, L&T etc.

The breakup of executives,

supervisors and workers sent for out-

company training is as given below :

Sl.. Category Manpower as on Increase (+)/

No. 31.03.2012 31.03.2011 Decrease (-)

1 Executive 2620 2409 211

2 Supervisor 5288 5675 (-) 387

3 Clerical 3546 3922 (-) 376

4 Highly Skilled / Skilled 28828 28765 63

5 Semi-skilled / Unskilled 16460 17709 (-) 1249

6 Companys Trainee 247 563 (-) 316

T O T A L 56989 59043 (-) 2054

Ex ecutives Supervisors Workers TOTAL

Out-Company Training

(including GLF, Puri) 203 58 27 28 8

INSTITUTES Executives Supervisors Workers TOTAL

Managemen

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Directors Report 2011 12 Wcl

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