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ANNUAL REPORT 2012-13

WESTERN COALFIELDS LIMITED( 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 17

7 Directors’ Report 25

8 Addendum to the Directors’ Report : 80

a) Comments of the Comptroller and Auditor General ofIndia under section 619(4) of the Companies Act, 1956

b) Auditors’ Report and Management’s Reply

9 Balance Sheet as at 31st March, 2013 99

10 Profit & Loss Account for the year ended 31st March, 2013 100

11 Cash flow statement for the year 2012-13 101

12 Notes to Balance Sheet ( Notes 1 to 19 ) 102

13 Schedules (20 to 32) to Profit & Loss Account 121

14 Significant Accounting Policies - Note 33 129

15 Additional Notes on Accounts - Note 34 135

16 Statement of Audited Results for theQuarter and Year Ended 31.03.2013 155

1

WESTERN COALFIELDS LIMITED


( A Subsidiary of Coal India Limited )

Board of Directors

( As on 27th May, 2013 )

Chairman-cum-Managing Director

Shri D.C. Garg

Functional Directors

Shri Om Prakash - TechnicalShri Sushil Behl - FinanceShri Rupak Dayal - PersonnelShri S.S. Malhi - Technical

Government Directors (Part time)

Dr. M.R. Anand - Economic AdvisorMinistry of Coal.

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

Non-official Directors (Part time)

Ms. 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 R.D. Tripathi - Chief Operations Manager,Central Railway, Mumbai.

Company Secretary

Shri Rameher

2



(A Subsidiary of Coal India Limited )

Board of Directors

( During the year 2012-13)


Shri D.C. Garg - From 01.05.2007

Functional Directors

Shri B.K. Saxena - Technical ( upto 24.06.2012 )

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 )

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

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

(upto 18.04.2012 )

Shri Shailendra Singh Secretary, Mineral Resources

Department, Govt. of Madhya

Pradesh, Bhopal

(w.e.f.31.05.2012)

Shri Z.A. Siddiqui - Chief Operations Manager,

Central Railway, Mumbai

(upto 31.10.2012 )

Company Secretary

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

3


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 BANKPUNJAB NATIONAL BANK

BANK OF INDIAHDFC BANKIDBI BANK

DENA BANK

STATUTORY AUDITORS

M/S JODH JOSHI AND COCHARTERED ACCOUNTANTS

NAGPUR

BRANCH AUDITORS

M/S B. CHHAWCHHARIA & COCHARTERED ACCOUNTANTS

NAGPUR

M/S A . S . DANI & COCHARTERED ACCOUNTANTS

NAGPUR

M/S KPRK & ASSOCIATESCHARTERED ACCOUNTANTS

NAGPUR

REGISTERED OFFICE

COAL ESTATE ,CIVIL LINES ,

NAGPUR – 440001

4



Ref : WCL/SECY/BD/AGM-38/2013/190 Date : 19th May, 2013

N O T I C E

THIRTY EIGHTH ANNUAL GENERAL MEETING

Notice is hereby given that the Thirty Eighth Annual General Meeting of

Western Coalfields Limited will be held at 10.00 A.M. on Monday, the 27th May,

2013 at the Registered Office of the Company at Coal Estate, Civil Lines, Nagpur

to transact the following business :

ORDINARY BUSINESS:

1. To receive, consider and adopt the Audited Balance Sheet as on 31st March, 2013 and

Profit & Loss Account for the year ended 31st March, 2013 together with the Directors’

Report and Reports of the Statutory Auditors & Comptroller and Auditor General of India

thereon.

2. To declare dividend.

3. To appoint a Director in place of Dr. M.R. Anand, 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 proxy

or proxies to attend and vote instead of himself/herself and such proxy need not be a

member of the Company. In order to be effective, the Proxy form duly completed should

be deposited at the registered office of the Company not less than forty-eight hours

before the scheduled time of the Annual General Meeting. A proxy form is enclosed.

Contd.....

5


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

PERFORMANCE AT A GLANCE

6


7


8

9


Chairman’s Statement

Friends,

I feel great pleasure in reporting another robust year for Western

Coalfields Limited, at the 38thAnnual General Meeting of the company.

We reported strong top line, that is revenues of Rs. 8703.97 crores

along with sturdy bottom line, that is pretax profit of Rs. 428.87

crores during the financial year 2012-13.

I am happy to share that we are well positioned among the coal

producers in the country on the strength of our strong balance sheet

and sturdy performance year after year, despite the challenges posed

by adverse geo 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 the subsidiaries of CIL, strata control problems due to adverse geo

tectonic parameters and high susceptibility of coal to spontaneous heating/fire in underground

mines.

Vision

The XIIth plan document envisages,GDP growth of 9% per year, with 6.5% annual

growth in energy supply and the demand of 980.50 million tonnes of coal was projected

to meet the 55% of the total primary commercial energy requirement in terminal year

2016-17. At Present 58.3 % of the total installed power generation capacity in the country

is coal based whichcontributed for 75.83% of the total electricity generation during 2012-

13.It is a matter of fact that exponential rise in Coal demand has resulted in negative

coal balance and accordingly coal industry needs to re-orient its production plan for

minimizing the demand supply gap.

Keeping the fact in the mind, WCL has set its vision to emerge as a key player in the primary

energy sector committed to provide energy security to the country by attaining

environmentally and socially sustainable growth through best practices from mine to market.

Performance 2012-13

Financial Year 2012-13 had been a year full of challenges but the undeterred WCL team

with concerted efforts achieved coal production of 42.29million tonnes against last

year’s 43.11million tonnes and the REtarget of 42.00 million tonnes. The performance

was affectedmainly due to the factors that were beyond our control such as delayin

acquisition/physical possession of land, forestry clearances, lease renewal and adverse

geo-mining conditions.

10


The coal off-take during the current fiscal was 41.546 million tonnes as against last

year’s actual of 41.967 million tonnes and the RE target of 42.00million tonnes. The

shortfall in off-take was mainly due to inadequate lifting of coal by MAHAGENCO

through captive mode (rope/MGR), and road mode against allocations. Non fructification

of cost plus agreement due to the failure of MAHAGENCO to achieve milestones as per

LOA in respect of Bhusawal/Parlipower housesled to less offtake from Ukni and Bellora-

Naigaon cost plus mines and accretion of coal stock.

However, Coal desptaches through rail have registered appreciable growth as WCL has

despatched 21.37 million tonnes coal through rail mode as against the AAP target of

19.05 million tonnes and last year’s actual of 18.28million tonnes registering an

achievement of 112% of target & a growth of 16.9% over last year.The wagon loading

was 15 rakes/ day as against AAP target of 15 rakes/ day with a growth of 16% over last

year.

During 2012-13 WCL achieved growth in coal despatches to core sector industries viz.

2.6% in Power, 11.8% in Cement, 6.5% in Steel, 5.7% in Sponge Iron and 10.1 % in

Captive power plants.

The sales realization during current fiscal had been Rs. 8137.05 crores which is 5.61%

lower than the last year’s realization of Rs. 8620.70 crores. Additional revenue of Rs.

392.11 crores generated through e-auction during 2012-13 was less than the additional

revenue of Rs. 713.55 crores earned during the last year. The drop in realization over

previous year is mainly due to fall in off-take by 0.42 million tonnes and less generation

of additional revenue through e-auction.

WCL produces about 85.08% of Coal through departmental means, whereas the system

capacity utilization in departmental coal production has been 100.08%. The system capacity

utilization during the year with respect to departmental OB removal has been 97.59% and

the overall departmental system capacity utilization has been 98.22% (89.19 million cubic

metres achieved as against the capacity of 90.81 million cubic metres as assessed by

CMPDI as on 1/4/2012).

Your company has achieved ever highest overall productivity of 2.97tonnes per man-shift

during the year 2012-13, which is 115% of the targeted 2.58 tonnes per man shift, thus

registering a growth of 10% over the last year’s actual 2.70 tonnes per man shift.

WCL continued to maintain high utilization of HEMM, which has been more than CIL’s

average during the year 2012-13. WCL ranked 2nd in utilization of Dragline, Shovel, Dumper

& Dozer amongst all subsidiaries of CIL.For further strengthening WCL purchased 94 new

11


equipment including 60T Dumpers and Shovels (Electrical and Hydraulic) against surveyed

off during the fiscal.

Financial Performance

During the year, WCL achieved the highest turnover of Rs.8703.97croreswith a pretax

profit of Rs. 428.87crores, which is of course less than the last year’s pretax profit of

Rs. 440.50crores,despite of increase in employee cost by Rs. 83.00 crores, increase in

POL & Explosive Cost by Rs. 77 croresand increase in Power Cost by Rs. 48 crores.

Net worth of the company has risen from a level of Rs3315.22crores last year to

Rs.3410.91crores on 31-03-2013.

Your Directors have recommended a dividend payment of Rs. 194.60 crores @ 65.50%

on the Paid up Capital of the company that isRs. 297.10 crores, a tangible demonstration

of WCL’s ability to continue creating value.

Creation of Assets

Company has Invested Rs. 264.05 during FY 2012-13 on development of new mines

and infrastructure along with replacement of old assets, entirely from internal resources.

HEMM worth Rs.145.38crores were purchased during the year, whereas the equipment

for underground mining costing Rs.20.51croreswere added in the fleet.

Planning Preparedness

Planning Preparedness: At present, your company is operating 32 Ongoing Projects/

Schemes with a sanctioned capacity of 32.181 MTY and capital of Rs. 1487.167 crores,

out of which, 20 projects have contributed 17.0686 million tonnesof coal production

duringthe year2012-13. For sustaining production levels, company has planned 22

Projects during XII Plan period with a capacity of 24.03 MTY, and initial capital of Rs.

6415.64 crores.

Cost Plus Projects

Total 38 projects have been approved till FY 2012-13 on Cost Plus Basis, that is to yield

requisite 12% IRR, out of which Coal Supply Agreements for 12 projects have already

been signed. 5 projects, namely Sharda UG, Harradol UG, Dhankasa UG,

DhuptalaOC(Sasti UG to OC) and Dinesh OC were offered to MAHAGENCO and

MPPGCL on cost plus basis prior to issuance of MoC guideline dated 07/10/2008. “In

Principle” consent has been received from these State power utilities and Coal Supply

Agreements are under finalization.

12


As per guidelines from Ministry of Coal, 13 numbers of financially unviable projects

were placed on the website of the company and applications were invited from LoA

holders/ FSA holders/ Linkage holders both from Cost Plus category and notified price

category. Based on the applications CSA on cost plus basis have been executed for

partial capacity for BelloraNaigaon Deep OC and Ukni Deep OC. CSA on cost plus

basis has been executed for complete capacity for Urdhan OC.

Due to enhancement of rates of land compensation by Maharashtra Govt., and

implementation of R&R policy 2012, ongoing projects (13 numbers) are likely to come

under the cost plus ambit, and no investment even for land acquisition can be done without

entering in to cost plus agreement with prospective consumer, resulting in delay in opening

of the ongoing/future projects.

Issues related to cost plus agreements have been flagged with CIL/MOC for suitable

guidelines for expeditious opening of the on-going/future projects.

Exploration and addition in Reserves

Exploratory drilling to the tune of 65,520 meters has been carried out during the fiscal

by CMPDIL in WCL command area. Coal reserves of about 60.56 million metric

tonneshave been proved in Shaktigarh Block of Pathakhera Area.

Technology infusion in Underground Mines

For sustaining the current production levels, production from UG mines needs to be

augmented, as the production from OC mines will be on decline due to the paucity of

suitable reserves.WCL has taken initiatives for adoption of mass production and

continuous mining technology in UG mines for increase in production and productivity

but results may not be expected immediately.

At present, Continuous Minertechnology is under operation at Tandsi UG mines of

WCL and it is planned to introduceatTawa-II Expn. andSaoner-I,both operating mines

in 1st phase and atJamunia u/g and Dhankasa u/g new projects in 2nd phase.

WCL has taken further initiatives for adoption of new technology for mass production in

underground mines through global tender for development, construction and operation

on turn-key basis (MDO concept) of two underground blocks namely Murpar and

Bordawith capacity of 2.0million tonnes per year each, in 1stphase,and two more

blocksnamely Nand with 1.0 million tonnes per year capacity and Shaktigarh with

2.0million tonnes per year capacity have been identified for development in 2ndphase.

13


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 five UG mines. Further such

systems are under installation in three UG mines and one more is under procurement.

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

roof support,by deploying 31 departmental Universal Drilling Machines (UDMs), which

has resulted in significant improvement in the blasting efficiency and in green zone

support with added safety.

Energy Efficiency initiatives

Accepting the fact that there is scope to save energy by rationalization of operations,

WCL has undertaken various initiatives, which have resulted in arresting the energy

consumption levels with just 0.20% increase, despite 13.2% increase in average

rainfall over previous year requiring additional pumping to dewater our inundated

mines during heavy and incessant rains.

Material Management

During the year 2012-13, all the procurement cases of material were finalized through

e-tendering mode, total 137 nos. of e-tenders were floated with estimated amount of

Rs.583 crores. WCL has maintained its position at the top amongst CILsubsidiaries by

keeping the lowest inventory during the fiscal, that is inventory of 0.89 month’s

consumption against 1.00 month during 2011-12. Your company has realized Rs. 8.69

crores by means of scrap disposal during the year 2012-13.

Environment Management

Coal mining is environmentally sensitive activity and mitigation of its adverse impacts is

imperative for sustainable development.Your company is aware of its responsibility and

has taken initiatives for environmental protection and mitigation measures in all the

operating mines.

WCL is committed to restore the degraded land through reclamation, afforestation and

green beltdevelopment. Till date, 180.49 Lakh trees have been planted covering an

area of 6533.23 Ha.in its command area in the states of Maharashtra & Madhya

Pradesh. During 2012-13, a total of 1.60 Lakh saplings were planted in the mining and

adjoining areas through expert forest agencies namely Forest Development Corporation

of Maharashtra (FDCM) and Madhya Pradesh Rajya Van VikasNigam(MPRVVN).

14


The progress of afforestation in the 10 major Open cast Projects of WCL is monitored

regularly through satellite imagery which indicates that there is an increase in

afforestation/plantation area.The Satellite data substantiates that green cover due to

plantation has increased by 10.26 Sq. Km. in last five years that is from 2008 to 2012.

In the recent past, statutory stipulations such as restrictions imposed on expansion of

existing projects in Maharashtra due to River Regulatory zone Policy 2009 even after

obtaining EC from MoEF, extension of moratorium on grant of EC under CEPI in

Chandrapur industrial cluster, and mandatory Stage-I forest clearance to get EC, etc.

are some of the nagging problems that are being faced by WCL. I am sure that most of

these issues will be resolved in due course of time as we have taken up these issues

with the concerned State Ministry and at Chief Secretary level.

Acquisition of Land

Your company is facing hardships due to undue delay in acquisition/physical possession

of land, lease renewal and forestry clearances. The issues have been flagged in the

meetings held with Chief Secretary, Govt. of Maharashtra, Minister of forest Govt. of

Madhya Pradesh, and other concerned authorities. WCL could acquire 2025.823 Ha

land under LA Act, CBA Act, FC Act and Direct Purchase and took physical possession

of 201.21 Ha land with constant persuasions.

During the fiscal, total 61 Project affected families, have been resettled by providing

resettlement grant as opted by land oustees, within the provisions of R&R Policy of CIL.

Employment of 753 land oustees and monetary compensation to 46 in lieu of employment

during FY 2012-13 has been approved.

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, WCL has

undertaken massive CSR initiatives during the year 2012-13 and completed 205 CSR

activities, with an expenditure of Rs. 20.96crores as compared to Rs. 7.85 crores incurred

during last year. The major activities during the year includes construction/repair of 43.56

Km length road, construction of 35 school class rooms, construction/repair of 30 community

centers to enrich the village life, provision of 43 borewells/handpumps to meet the drinking

water needs of villagers,organization of16 no. of coaching camps to promote sports,

organization of 221 Medical camps, with 28,647 beneficiaries, and 906 camps by Mobile

Medical Vans with 68,529 beneficiaries in nearby villages.

15


Safety

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

standards through adoption of best practices. Thrust is being givenfor enhancement in

safety awareness at the grass root level through participative management forums likesafety

committee meetings, and special safety awareness drives,programmed and co-ordinated

by internal safety organization (ISO) on various subjects like green roof support, safe

practices in haulage, belt conveyors, face equipment, ventilation, dust suppression, explosives

and blasting. Tripartite safety committee meetings with active participation of DGMS officials

are also being held to review the status. During the calendar year 2012, there had been

no change in fatalities that is 10 and reduction of serious injuries from 37 to 29 vis-a-vis

2011.Scientific studies have been carriedout onstability of OB dumps, spontaneous heating

etc. by reputed scientific/educational institutions for enhancing the safety in operations.

Further, we have continued our focus on training and retraining of the workforce.

Industrial Relations

Industrial Relations during the fiscal 2012-13 has been peaceful, cordial and harmonious in

the company. However, there was two days nationwide strike on 20th and 21st February,

2013 called by all the five Central Trade Unions on demands related to national level issues.

Awards and Accolades

I feel pleasure to share with you that, Golden Peacock (special commendation) Award

2012 has been conferred on WCL in recognition of its excellent environment management.

Your company was bestowed with “Caring company Award” for its CSR work by the

council of Board members of World CSR Congress.

I am also happy to inform you that as the CEO of your company I have been awarded

as “CEO with HR orientation” at World HRD Congress,Raj Bhasha ShreeSamman by

the BhartiyaRajbhashaVikasSansthan Dehradun and Best Chief Executive Corporate

Management Excellence Award2012-13 during GEOMINETECH symposium.

WCL Stood First amongst different Coal India Subsidiaries and adjudged 3rd Best

Overall Company at the National Level in 43rd all India Mines Rescue Competition.

Company has secured 1st position in Table Tennis & 2nd position in Carom in CIL Inter

Company Tournament.

Corporate Governance

WCL 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,

16


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.

Last but not the Least

While summing up in retrospect, I am happy to say that WCL’s sustained performance

year after year, despite unsurmountable challenges is the testament of our team’s

strength and capability to deliver.

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

holders- its shareholders, customers, employees and local populace.

I call upon all of WCL family to rise and move towards the goal of 44.20 million tonnes

of coal production and offtake of 44.15 million tonnes during FY 2013-14. Thus we will

be fulfilling our bounden duty to energize India and in turn contributing to the progress

of the nation.

With Best Wishes,

(D. C. Garg)

Chairman Cum MD

17


Shri D.C. Garg, CMD, WCL receiving “Golden Peacock Environment Management Award-

2013” from Shri M. Veerappa Moily, Minister of Petroleum and Natural Gas, Govt. of India

during 15th World Congress in New Delhi on Environment Management for contribution toward

development of new belt and afforestation of Mining area.

Shri D.C. Garg, CMD, WCL receiving “BT-Star PSU Award-2013” from Shri Bhupinder Singh

Hooda, Chief Minister of Haryana in New Delhi for Best practices in CSR under Miniratna categories.

18


Shri D.C. Garg, CMD, WCL receiving “Best Chief Executive Corporate Management Excellence

Award 2012-13” from Shri G.B. Mishra during GEOMINETECH Symposium at Bhubneshwar

Shri D.C. Garg, CMD, WCL representing Ministry of Coal, Govt. of India during

“Mining Indaba – 2013” held at Cape Town, South Africa.

19


Shri D.C. Garg, CMD, WCL addressing “Global Mining Summit-2012”

organised by Confederation of Indian Industry(CII) in Kolkata.

Shri D.C. Garg, CMD, WCL addressing National Seminar “Explo-Safe 2013” on Safety,

Security and Recent trends in Explosives, organised by Petroleum and Explosive Safety

Organisation (PESO) at Nagpur.

20


Smt. Shashi Garg, First Lady and President, Jhankar Mahila Mandal, WCL giving Trophy to

the winning team of WCL during Coal India Inter Company Table Tennis Tournament

Shri D.C. Garg, CMD, WCL was conferred “Rajbhasha Shree Award” by

Bhartiya Rajbhasha Vikas Sansthan, Dehradun.

21

WE

ST

ER

N C

OA

LF

IEL

DS

LIM

ITE

D


BALANCE SHEET AS AT 31st MARCH

22


24


25


To

The Members/Shareholders,

Western Coalfields Limited.

Your Directors have pleasure in presenting

the 38th Annual Report of Western Coalfields

Limited and Audited Accounts for the year

ended 31st March, 2013 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-

West Madhya Pradesh. For effective

administrative control and operations,

the mines have been grouped in 10

(Ten) Areas as follows:

3. PERFORMANCE

During the year 2012-13 yourCompany has achieved coalproduction of 42.287 Million Tonnesagainst the AAP target of 45.000million tonnes which is 2.713 Milliontonnes less than the AAP target and0.823 million tonnes less than lastyear’s actual of 43.110 MT.Productivity of the Company has goneup upto 2.97 tonnes per manshiftduring the year 2012-13 which is morethan the target of 2.58 tonnes and alsomore than last year actual of 2.70tonnes

DIRECTORS’ REPORT

Overburden removal during the year

2012-13 was 113.685 million cubic

meters against the AAP target of

130.000 million cubic meters which is

16.315 million cubic meters less than the

target and 8.803 million cubic meters

less than last year’s actual of 122.488

million cubic meters

Coal off take during 2012-13 was 41.546

Million tonnes which is 3.704 Million

tonnes less than the targeted 45.250

Million tonnes i.e. 92% achievement and

0.421 Million tonnes less than last year’s

actual of 41.967 Million tonnes

Shortfall in coal production of 2012-13

can be attributed to following reasons:-

1) Delay in physical possession of land

& forestry clearance

2) Heavy rainfall in July 2012 (48.82%

more than July 2011)

3) Non commencement, belated

commencement of work of HOE for

OB removal

4) Some of the HOE tenders for OB

removal could not be materialised

due to higher unjustified rates

quoted by bidders, affected coal

production & OBR.

5) Incidences of fire / Spontaneous

heating, encountering geological

disturbances, bad roof, high water

percolation and soft floor affected

coal production in underground

mines.

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 1.4.2013

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-ground

Opencast Mixed

Nagpur and Umrer Nagpur Maharashtra 5

27

7

-

39

-

-

1

-

1

10

12

13

7

42

26


Apropos supply of coal to Steel Plant,

the production of Coking Coal from

Tandsi UG, which is only producer

of Coking Coal in WCL is less as the

continuous Miner is working in

geologically disturbed zone where

extensive roof support is required.

3.2 Coal Production and OB Removal

from Opencast Mines :

Shovel Dumper

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

SL

NO

i)

ii)

iii)

iv)

v)

vi)

Target

AAP

45.000

45.250

45.230

0.1870

0.1870

2.58

Coal Production

(million tonnes)

Total Off-take(million tonnes)

Despatches (Sales)

(million tonnes)

Washed CoalProduction

(million tonnes)Despatch to

Steel Plants(million tonnes)

Productivity OMS

2011-12Actual

43.110

41.967

41.959

0.1365

0.1361

2.70

Actual

42.287

41.546

41.539

0.1445

0.1450

2.97

%

Achieve-ment

overTarget

94.0

91.8

91.8

77.3

77.5

115.1

%

Growth Over

last year

-1.9

-1.0

-1.0

5.9

6.5

10.0

2012-13

PARAMETERS

PARAMETERS 2012-13

%Achie-vement

overTarget

i

ii

Coal production

( Million Tonnes)

Overburden

Removal( Mill. Cub. Mtrs.)

36.180

130.000

2011-12

Actual

34.087

113.685

94.2

87.5

34.720

122.488

Target

AAP

Actual

Sl.

no.

% Growth

over lastyear

-1.8

-7.2

27


3.3 Mechanised Underground Coal

Production:

The Mechanised Coal Production fromUnderground mines during the year2012-13 was 7.987 million tonneswhich is 0.071 million tonnes less thanlast year’s actual of 8.058 milliontonnes. Coal production by Conti-nuous Miner (CM) Technology atTandsi and Kumberkhani Mines was0.1053 million tonnes which is 0.0442million tonnes less than last year actualof 0.1496 million tonnes. Adverse Geo-Mining conditions at Tandsi UG &expiry of contract for CM operation atKumberkhani UG in July 2012 affectedthe production of Continuous Miner.

3.4 Coal Stock:

Coal Stock at the end of fiscal 2012-13 increased by 0.741 million tonnesand stood at 5.834 million tonnes ascompared to last year’s 5.093 million

tonnes. Accreditation in Coal Stock has

been mainly due to following reasons:

1) The actual off take was less than MOU

target mainly due to inadequate lifting

of coal by MAHAGENCO through

captive modes (Rope/MGR) and Road

mode.

2) Evacuation of coal from Ukni & Bellora

Naigaon cost plus mines was affected

to the tune of 1.14 MT as cost plus

agreement with Mahagenco did not

fructify due to non achievement of

milestone in respect of Bhusawal/Parli

TPS

3) The Off take through e-auction route

was restricted upto 10% of planned

production till November12 which has

resulted in less off take of 1.04MT than

the last year’s off take through e-

auction route.

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

28


works in OC mines was carried

out from 19.11.2012 to

01.12.2012.

(e) Annual Safety Fortnight was

conducted in all the mines of WCL

from 17.12.2012 to 30.12.2012.

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.

3) Pit top safety talks are 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 recommendations of

these committees are implemented

and monitored regularly.

5) Back shift inspections by senior

officers of mine and area have been

intensified.

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.

7) Area level committees have been

constituted to conduct safety audit of

the mines to evaluate the safety status

of the mines.

8) Meetings with 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) and other

officials are regularly monitored and

rectification of deficiencies pointed out

are ensured.

4. SAFETY :

4.1 During the calender year 2012, there

had been no change in fatalities i.e,

10 and a reduction of serious injuries

from 37 to 29 vis a vis 2011.

Skilled human resource are the

biggest asset for your 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 by

inculcating participative management

at the unit level by way of safety

committee meetings being 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 your workforce to follow safe

practices at the work place has also

been our thrust area in 2012-13.

4.2 Steps Taken during 2012-13 to

improve safety and reduce

accidents :

1) (a) A Special safety awareness drive

on Green roof and side support,

safe practices in haulage, belt

conveyor, SDL/LHD operations

was conducted in all underground

mines of WCL from 23.04.2012 to

05.05.2012.

(b) A Special Safety Awareness Drive

on Ventilation, Dust Suppression,

Storage, transport & use of

explosives was observed in UG

mines from 27.08.2012 to

07.09.2012.

(c) A Special Safety Awareness

Drive on Maintenance of Statutory

Records & Plans was conducted

in UG and OC Mines from

22.10.2012 to 07.11.2012.

(d) A special safety drive on

contractor’s workmen & contractual

29


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.

10) A high level committee have

inspected all the mines of WCL to

ascertain the preparedness for

monsoon against water danger.

4.3 Statistics of Fatal Accidents :

4.4 Statistics of Injury frequency :

4.5 Technical Contribution in 2012-13 :

i) Vetting of operational plans of all

mines 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 into

major dangerous occurrences /

incidents .

iv) Analysis of all accidents and

incidents so as to decide preventive

safe practices.

4.6 Special Achivements in 2012-13

4.6.1Following scientific studies have been

undertaken by Scientific/ Educational

institutes during 2012-13 :

1. Scientific study of the OB Dump Stability

at Gondegaon OC, Nagpur Area by BIT

Meshra.

2. Scientific Study for full extraction of coal

seam at Tawa-1 and Sarni mine of

Patharkhera Area by NIRM KGF.

3. Scientific Study to suggest suitable

method for extraction/ liquidation of coal

in Kumbharkhani UG mine of Wani-

North Area by CIMFR.

4. Scientific study to asses the impact of

depillaring at Saoner Mine 1, Nagpur

Area by NIRM KGF.

5. Scientifc Study for dragline dump & OB

dump at Mungoli OC, Wani Area for

deployment of M-7400 marion dragline

by NIT Rourkela.

6. Scientifc Study for dump stability at

mungoli OC, Wani Area by BHU

7. Scientific study for suitable method for

depillaring along with support system

for seam I of Mohan / Mauri, Kanhan

Area by NIRM KGF

8. Scientific Study for OB dump stability

at Chinda OC, Pench Area by BIT

Meshra.

9. Scientific Investigation for possibilities

of spontaneous heating in HLC-1,

Chandrapur Area by CIMFR, Dhanbad.

4.6.2 To eliminate manual drill ing,

Mechanised roof bolting has been

introduced by deployment of 31

departmental UDMs, 1 contractual

quard bolter, 2 converted UDMs, 27

Hydraulic roof bolting machines, 3

pneumatic roof bolting machines and

41 Kargil type and other roof bolting

machines.

4.6.3 To eliminate long and arduous travel,

five Man Riding Systems are being

used (one each) in Tandsi, Mohan/

Mouri Incline, Saoner-1, Tawa-1 and

Particulars

No. of fatal accidents

Persons involved

Rate per million tonne output

Rate per 3 lakhs manshift

2012

(Calendar year)

2011

(Calendar year)

9

10

0.24

0.2

9

10

0.23

0.19

2012

(Calendar year)

129

3.08

2.52

Particulars

Injury frequency

Injury frequency Rate per

million tonne output

Injury frequency Rate per 3

lakhs manshift

2011

(Calendar year)

137

3.16

2.55

30


Shobhapur (1st system). Further,

installation and commissioning of three

such systems in WCL, i.e, BC 3&4,

Shobhapur (2nd system) and

Kumbharkhani mines is in process. In

addition to the above, one system which

was procured for Sarni mine is being

shifted to Chattarpur-1 mine and one

system is under procurement for

Saoner mine no. 2.

4.7 Utilisation of Safety Budget 2012-13 :

* Out of BE 2012-13 allocation of Rs.

2565 lakhs, Rs. 310.18 lakhs re-

appropriated to other head.

5. RESCUE

5.1 MAJOR ACHIEVEMENTS

5.1.1 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 the

Coal and Metal Companies

obtained this certification. Now

RRRT Parasia, Pathakhera and

Tadali have also been accorded

ISO 9001:2008 Certification.

5.2 Prompt Service in Emergency &

Reopening

5.2.1 During 2012-13, Three Sponta-

neous Heating and Two Fire

operations have been dealt

successfully. The details are as

under.

5.3: EXPANDING EXPERTISE TO

CALIBRATE GAS DETECTORS

The importance of gas detectors in

mines need no explanation. Though

maintenance and calibration of gas

detectors are not in the ambit of our

core competence, two officers were

trained to calibrate Drager, Oldham/

Industrial Scientific and Honeywell

make gas detectors.

This initiative has resulted in

considerable amount of saving of

Rs.19,78,659.00. Further, the acquired

in-house expertise in these gas

detectors calibrations has increased the

reliability, efficiency 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.18,91,904/- (Rs. Eighteen

lakhs ninety one thousand nine hundred

four) during the financial year 2012-13.

5.5 Competition/Drives in Rescue

Services

5.5.1Inter Rescue Room Competition washeld in the month of January, 2013.RRRT, Parasia bagged the First Prize

Head

Budget

Expenditure

Revenue

Rs. 8800.00 lakhs

Rs. 8300.00 lakhs

Capital

Rs. 2254.82* lakhs

Rs. 425.27 lakhs

Sl.

No.

01

02

03

04

05

02.05.12

30.06.12

21.07.12

29.09.12

26.12.12

04.05.12

03.07.12

22.07.12

28.12.12

Mohan/Kanhan

HLC-1/

Chandrapur

DRC/Chandrapur

Vishnupuri -

2 / Pench

Ballarpur3&4 Pit

Sealing of depillaring panel dueto Spontaneous heating Panel

E4-B in Seam 1.Panel 1B18L - Old area roof fire

dealt under rescue cover.

Panel M2, 22LS/24D - FSpontaneous heating in fallen coal.

Spontaneous heating in D-5

depillaring panel of VB-2 Seam.

Fire in Q-A Bottom DevelopmentSection.

DateColliery/

AreaReasons

31


under RRRT group and Rescue RoomMajri was adjudged First in RescueRoom group.

5.5.2 Zonal /Inter Area Rescue Competitionwas held at RRRT, Parasia. OverallFirst Prize was bagged by Pench Area,Overall Second - Nagpur Area, OverallThird-Kanhan Area, Best Captain-ShriR.K. Suman, Pench Area & Secondbest Captain Shri Mahendra Singh,Nagpur Area. Best Member Shri KunalGajbhiye, Nagpur Area and SecondBest Member Shri Sharad Kumar,Pathakhera Area.

5.5.3 All India Mines Rescue Competitionwas held at Mines Rescue Station,Singareni Collieries Company Ltd.,Ramagundam from 27th to 29thNovember, 2012. In this competitionWCL Team bagged the following prizes :

1. Overall 3rd Prize

2. Drill and Turnout - 1st prize

3. Fresh Air Base 2nd Prize

4. Rescue 2nd prize

5. Statutory test 3rd prize

6. Theory test 3rd prize

In this 43rd all India Mines RescueCompetition, We were adjudged 3rdBest Overall Company at the NationalLevel and Stood First amongst differentCoal India Subsidiaries.

6. AVAILABILITY OF POWER AND

POWER & FUEL CONSUMPTION :

6.1 Availability of Power

6.2 Power and fuel consumption

6.2.1Electricity

7. Population & Performance of

Equipment

7.1 Population of Equipment

7.2 Annual system Capacity of WCL

assessed by CMPDIL as on

01.04.2011 was 82.45 M.Cu.M. and that

01.04.2012 was 85.03 M.Cu.M.

7.3 Performance of HEMMs

7.3.1 Availability of HEMMs

i) Dragline & Dumper have achieved

CMPDIL-Norms for availability.

ii) Availability of Dragline,Shovel &

Dumper is more than CIL average

7.3.2 Utilization of HEMMs

i) Utilization of Dragline is higher than

CMPDIL - Norms.

ii) Utilization of all the HEMMs in WCL

is higher than CIL average.

7.4 Special Achievements

7.4.1 WCL is ranked as 2nd in utilization of

Dragline, Shovel, Dumper & Dozer,

while 3rd in Drill among all

subsidiaries of CIL.

(Rs. in Lakhs)

Area

Average Contract Demand in MVA

Average Availed Demand in MVA

2012-13

139.421

125.651

2011-12

136.200

123.590

% Varitation

2.36

1.67

Purchased

Units in MKWH

Rate / unit

2012-13

614.04

7.42

2011-12

612.93

6.49

S.No. Equipment Population As Remarkson 31st March2013 2012

1 Dragline 3 4 15/90 Dragline Sl.No. 101 of UmrerOCP has been surveyed off andgrounded.

2 E.R.Shovel 41 42 During 2012-13, 3 nos. havebeen procurred against Survey-offof 4 nos.

3 HydraulicExcavator 93 104 During 2012-13, 20 nos. of highercapacity (4.3/5 Cu.Mt.) have beenprocurred against Survey-off of 26nos. (2.8 Cu.Mt.), 10 nos. HydraulicExcavators have to be supplied andcommissioned.

4 Dumper 542 568 During 2012-13, 64 nos. of highercapacity (60T) dumpers have beenprocured against Survey-off of 60nos. (35(T) and 21 nos. (50T)dumpers.

5 Dozer 155 165 During 2012-13, 10 nos. have beensurveyed-off

6 Drill 96 104 During 2012-13, 8 nos. have beensurveyed-off

TOTAL 9 3 0 9 8 7

32


8. FINANCIAL PERFORMANCE:

The Company has earned a profit before

tax in the year 2012-13 Rs. 429 Crores

as against Rs.441 Crores in the

previous year 2011-12. The financial

performance of the Company for the

year 2012-13 vis-a-vis 2011-12 is

furnished below:(Rs. in Crores)

8.2 The working results for the year as

compared to the previous year are given

below :-

(Rs. in Crores)

7.4.2 Equipments under break down for more

than 3 months (8.4% of total population

of equipments as on 31st March, 2013),

is 1.1% less than last year (9.5% of total

population of equipments).

7.4.3 94 nos. new equipments including 60T

Dumpers and Shovels (Electrical and

Hydraulic) were purchased against

surveyed off during the year.

7.4.4 To increase reliability of aged equip-

ments, 6 Equipments have been

covered under Rehabilitation

programme and 14 Dumpers have been

overhauled under Extended Life

Programme during 2012-13.

7.4.5 System Capacity Utilization of Open

Cast Mines of WCL

7.4.6 Reason for Decrease in Capacity

Utilisation :

1. Various constraints in land acquisition,

mainly in Majri, Nagpur, Wani,Chandrapur, Ballarpur, Umrer and WaniNorth Areas.

2. Idling of HEMM awaiting environmentalclearance from State govt. at Wani(N)and Nagpur Area.

3. 44.9% of total fleet of equipments (as on25.03.2013) have qualified for survey-

off (i.e. covered their life in hours as wellas in years).

4. Prolonged Breakdown of equipmentsdue to delay in supply of critical spareslike bearings for transmission, torqueconvertor and final drive of dozers.

5. Unavailable capacity of 1.34 M.Cu.M. of

15/90 drafline (damaged in accident) wasfinally deleted after its survey off afterapproval by WCL Board in December,2012.

Year

2012-13

2011-12

Capacity

Utilization

98.68%

104.67%

Capacity in

Mill. Cu.m.

85.03

82.45

Remarks

Based on CMPDI capacity as on

1st April, 2012.

Based on CMPDI capacity as on

1st April, 2011.

PARTICULARS 2012-13 2011-12

GROSS SALES 8703.97 8357.48

Less: LEVIES MAHARASTRA 1677.48 1359.41

MADHYA PRADESH 321.34 1998.82 248.06 1607.47

NET SALES 6 7 0 5 . 1 5 6750.01

Less: EXPENDITURE -

Net of Misc. Income 6073.32 6119.43

GROSS MARGIN 6 3 1 . 8 3 6 3 0 . 5 8

Less: DEPRECIATION/ 188.53 195.65

AMORTIATION/IMPAIRMENT

GROSS PROFIT 443.30 434.93

Less: INTEREST 2.87 3.20

PROFIT BEFORE PPA 440.43 431.73

Add : PRIOR PERIOD ADJUSTMENTS -11.56 8.77

PROFIT BEFORE TAX 428.87 440.50

Add/(Less): Withdrawal provision for

Deferred Tax Assets/Liabilities 122.73 105.59

Less: PROVISION FOR TAXATION 227.29 239.37

PROFIT AFTER TAX 3 2 4 . 3 1 3 0 6 . 7 2

Add : Profit/(Loss) from

discontinuing operation (0.01) (0.01)

Add: Profit Brought Forward 2013.77 1988.80

Distributable Surplus 2 3 3 8 . 0 7 2 2 9 5 . 5 1

Sl. Particulars Amount Amount

No

1 Profit before tax for the year 2011-12 441

2 FACTORS CONTRIBUTING TO DECREASEIN PROFIT

i Increase in POL & Explosive Cost(POL 64.39 and Explosive 12.11 ) 77

i i Decrease in Sales revenue 45i i i Increase in Employee Cost 83

iv Increase in Power Cost 48v Increase in Post-Retirement Medical Benefit

cost to retired employee 42vi Increase in Coal Transportation

and other contract work 39vii Increase in other Miscellaneous expenses 10 344

3 FACTORS CONTRIBUTING TO INCREASE

IN PROFIT

i OBR Adjustment (After considering revision

in Standard Ratio) 179

i i Decrease in Mine closure expenses 146

i i i Decrease in Depreciation 7 332

Profit before tax for the year 2012-13 4 2 9

33


APPROPRIATION :

(Rs. in Crores)

8.3 Dividend:

Directors are pleased to recommend a

final dividend of Rs.194.60 Crores

(Previous Year Rs.184.04 Crores)

@65.50% (Previous Year 61.95%) on

the paid up Equity Shares Capital of the

Company. The total dividend per share

is @ Rs. 655 ( Previous Year Rs.

619.45 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 lakhs

Equity Shares of Rs.1000/- each) which

remained unchanged during the year.

9.2 Loan Fund :

Unsecured Loans : ( Rs. in crores)

NOTES :

1) Loans from Coal India Ltd. amountingto Rs.84.92 crores comprises of :

a)Coal Sector Rehabilitation Projectfrom International Bank forReconstruction and Development(IBRD) - Rs. 43.18 crores.

b)Coal Sector Rehabilitation Projectfrom Japan Bank of InternationalCooperation (JBIC) - Rs. 41.74crores.

2) The loan amount of Rs.84.92 croresincludes adjustment of downwardfluctuation of foreign exchange to thetune of Rs. 0.34 crores.

3) A charge has been created forRs.165.00 crores on current assets forsecuring working capital facility fromCIL’s Consortium Banks as per jointdeed of hypothecation dated01.09.2008. This loan has, however, notbeen availed so far.

10. WORLD BANK ASSISTANCE:

Your Company has not received anyassistance directly from World Bank,though assistance through Coal IndiaLimited , under ESMP and CSRPSchemes to the extent of Rs.2.87 crores(Previous Year Rs.3.20 crores) hasbeen received during the year 2012-13 .

11. BORROWINGS FROM GOVT. OF

INDIA :

Your Company has not borrowed anyamount from the Government of Indiadirectly during the year 2012-13.

FINAL DIVIDEND

TAX ON DIVIDEND

TRANSFER TO CSR RESERVE

TRANSFER TO SD RESERVE

TRANSFER TO GENERAL RESERVE

TRANSFER TO BALANCE SHEET

2012-13

194.60

33.07

21.55

0.71

48.64

2039.50

2011-12

184.04

29.86

21.83

0.00

46.01

2013.77

SOURCES OF FUNDS 2012-13

1 Addition to reserve & surplus 96.63

2 Addition to cumulative depreciation & Impairment -32.84

3 Decrease in non-current investment 16.04

4 Increase in Other Long Term Liabilities & Provisions 173.56

Total 253.39

APPLICATION OF FUNDS :

1 Additions to fixed assets & capital WIP 27.97

2 Increase in working capital 88.30

3 Decrease in long term Loans & Advances -3.20

4 Decrease in Long Term Borrowings 17.60

5 Increase in deferred tax assets 122.72

Total 253.39

Name Balance as Addition Repayment Balance as Security

of Financial on Due to during on details

Institution 01.04.2012 exchange the year 31.03.2013

Fluctuation

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

CIL– World 101.97 -0.34 16.71 84.92 Ref.note

Bank Loan 1& 2

TOTAL 1 0 1 . 9 7 - 0 . 3 4 16 .71 8 4 . 9 2

34


12. CAPITAL EXPENDITURE :

During the year ending 31st March, 2013

an amount of Rs.264.05 crores

(excluding capital commitment of

Rs.376.36 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.275.72 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 raised supplementary bills

on 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

head Other Current Liabilities. In view

of the judgement of the Hon’ble 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

Hon’ble Supreme Court against it.

14. PLANNING

14.1 The production achieved during the year

2012-13 and targeted production for the

year 2013-14 is given below:

15. DRILLING & EXPLORATION

15.1 During the fiscal 2012-13, 65,520 meters

exploratory drilling has been carried out

by CMPDIL in WCL command area.

60.56 Mte coal reserves have been

proved in Shaktigarh Block of

Pathakhera Area.

The target for drilling in 2013-14 in WCL

command area is 1,13,000 meters.

16. REPORT FORMULATION

16.1 Geological Reports

During the year the following

Geological Report was prepared :

16.2 Mining Project Reports

During 2012-13 following 6 Mining

Project Reports were formulated :

Royalty

Sales Tax:

State

Central

Entry Tax

S.E. Duty

Clean Energy

Cess

Central

Excise Duty

Total

M.P.

140.31

53.82

6.91

9.34

6.43

31.33

73.59

321.73

Maha-

rashtra

704.23

238.60

30.10

0.00

34.86

174.16

363.67

1545 .62

Total

844.54

292.42

37.01

9.34

41.29

205.49

437.26

1867.35

M.P.

99.07

50.13

9.10

10.23

6.49

29.63

53.87

2 5 8 . 5 2

Maha-

rashtra

526.30

222.07

34.93

0.00

35.69

163.95

288.23

1271.17

Total

625.37

272.20

44.03

10.23

42.18

193.58

342.10

1 5 2 9 . 6 9

2012-13 2011-12

S. No Name of Geological Reports

1. Shaktigarh

S. Name of Project Capacity Capital

No. (Mty.) (Rs. Crores)

1 Expansion of Nandgaon Incline 0.27 95.0996

2 Pimpalgaon Deep OC 1.20 223.3083

3 Pauni Combined OC 2.50 466.8690

4 Hindustan Lalpeth Expansion OC 1.00 87.8883

5 RPR for Bhatadih Expansion OC 1.50 494.5909

6 RPR for Kolgaon OC 0.80 246.8041

Total 7.27 1614.56

Particulars

1 Production (in million tonnes)

2 Productivity (OMS)

2013-142012-13

Target

45.00

02.58

Actual

42.287

02.970

AAP Target

(As Per Annual

Action Plan)

44.00

02.70

35


16.3 PLANNING PREPAREDNESS

16.3.1 X Plan Projects

24 mining projects were envisaged in X

Plan, mainly to sustain present level of

production from existing and completed

group of mines.

The total capacity & production

contribution of these X Plan projects is

given below :

STATUS OF X PLAN PROJECTS

* Waghoda UG (0.39 Mty) and Junad

Extn. OC (0.60 Mty) have been shifted

to XI Plan, as CSA on cost plus basis

was finalized on18.04.2007

** Saoner UG Mine No. III (with Conti-

nuous Miner Technology), has been

dropped, due to insufficient balance

reserve for deployment of Continuous

Miner.

Out of 21 X Plan projects, 5 projects have

been completed. 15 projects (10 ongoing

and 5 completed) are contributing

production. One Project viz Junakunada

OC has been commi-ssioned in 2011-

12 and it has contributed to coal

production in 2012-13. Remaining 6

projects could not be started because

physical possession of land could not be

obtained due to expectations of very high

land compensation by land losers, which

was beyond norms. Capital requirement

in these projects has increased due to

enhancement of rate of land

compensation by Maharashtra

Government and implementation of R&R

Policy, 2012. The PRs of these projects

are being updated. None of these 6

projects are likely to remain viable at

notified price.

16.3.2 XI Plan Projects

Out of 33 XI Plan projects, 4 projects

were shifted to XII Plan. Presently, there

are 29 Projects of XI Plan with a

sanctioned capacity of 38.75 MTY and

capital of Rs. 5765.77 crore identified

to sustain the present level of production

of the Company.

STATUS OF XI PLAN PROJECTS

16.3.3 XII PLAN PROJECTS

22 projects, including 4 projects shifted

from XI Plan, with an anticipated

capacity of 24.03 MTPA and estimated

capital expenditure of Rs. 6415.64 crore

have been planned for the XII Plan

period for sustaining production levels.

No. of Capacity Capital Contribution

Project (Mty.) (Rs. Crs.) of production

in 2012-13

(M.Te.)

PROJECTS ALREADY APPROVED 21 16.64 980.83 12.0194

PROJECTS SHIFTED TO XI PLAN 2 * Details given below with XI Plan

projects.

PROJECTS DROPPED 1 ** — — —

Total 24 16.64 980.83 12.0194

On-going Project

Stage I Approved/ Cost Plus

Under Approval/Formulation

To be formulated

Total

Number of

Projects

1

5

6

10

22

Anticipated

Capacity MTPA

2.00

3.83

7.40

10.80

24.03

Estimated Capital

Rs. crore

64.11

1240.88

1632.42

3478.23

6415.64

On-going Project (Under Production)

On-going Project (Under Implementation)

Future Projects (Approved Stage-I /Cost Plus)

Projects to be Approved/under recast

Total

No of

Projects

3

3

22

1

29

Capacity

MTPA

3.90

4.39

29.21

1.25

38.75

Capital

Rs. Crore

61.90

491.33

5081.22

131.31

5765.77

36


17. DETAILED STATUS OF XI PLAN

PROJECTS

17.1 APPROVED SUBJECT TO COST

PLUS DURING 2012-13

17.1.1Out of 29 Projects of XI Plan, PR for all

29 projects has been formulated by

CMPDIL & out of 29 projects, 6 projects

have been approved by WCL Board

and are at different stages of

implementation, while 22 projects have

been approved subject to finalization of

Cost Plus Agreement with prospective

consumer/ accorded I stage Approval.

Remaining 1 Project i.e. Bhatadih II

Expansion OC is under recast.

17.1.2Project Report of Chinchala

Chikhalgaon Amalgamated OCM was

approved subject to cost plus

agreement by CIL Board in its 292nd

meeting held on 12/12/2012 on Total

Hiring Option.

17.1.3Out of 6 approved ongoing projects of

XI Plan, 3projects namely Scheme for

Extension of Ghugus OC, Scheme for

Extension of Gauri- I and Gauri -II

(Merger) OC & Junad Extension OC are

contributing production. The production

from these mines during 2012-13 is

3.62 MTe.

17.2 Coal Supply Agreement (CSA) on

negotiated price to yield requisite

IRR % for approval of Project

Total 38 Projects have been approved

till 2012-13 on cost plus basis, out of

which Coal Supply Agreements for 12

projects have already been signed.

5 projects, namely, Sharda UG,

Harradol UG, Dhankasa UG, Dhoptala

(Sasti UG to OC) and Dinesh OC, have

been offered to MAHAGENCO and

MPPGCL on cost plus basis prior to

issuance of MoC guideline dated 07/10/

2008. “In Principle” consent has been

received from these State Power

Utilities & Coal supply agreements are

under finalisation.

17.3 In order to open new mines, which are

financially non-viable at Notified Price,

the following alternatives are being

explored :-

a) Efforts are being made to plan mines

by total/partial hiring of equipment at

enhanced capacity ensuring

minimum 12 % IRR at 85 % capacity

utilisation as per Govt. of India

guidelines.

b) To enter into Coal Supply Agreement

with the consumers who are

agreeable to pay the price yielding

12 % IRR at 85 % capacity.

c) As per MOC guidelines details of

thirteen financially non-viable projects

were placed on the Website of WCL

and applications were invited from

LOA holders /FSA holders/ Linkage

holders both from Cost Plus

Category & Notified Price Category.

Based on the applications, allocation

of Coal from 3 mines namely Urdhan

OC, Bellora Naigaon OC and Ukni

Deep OC, has been approved for

M/s MAHAGENCO and M/S Wardha

Power Ltd on Cost Plus Basis. Coal

Supply Agreement on cost plus basis

has been executed for five projects

during the year. Details are as follows:

S.No.

1

Capacity

(Mty)

3.00

Capital

(Rs. Crs.)

1176.1265

Name of Project

Chinchala Chikhalgaon

Amalgamated OCM

37


Proposal for allocation for six projects

was placed before SLC-LT in its

meeting held on 07/01/2013 for

approval of shifting of linkage from

notified price to cost plus price.

Minutes of the meeting awaited. The

details are as below:

*- Applications received for partialcapacity.

Allocation could not be done for twoprojects viz. Bhakra and Extensionof Nandan II in Dhau North Block dueto non-receipt of applications underCoking Coal Linkage. Allocation couldnot be done for Motaghat OC as itwas decided to revise this PR forcarving out reserves for maintainingcontinuity of production of DurgapurOCM. This was required to be doneas OB removal at Durgapur ExtensionDeep OC had to be discontinued dueto non-diversion of forest land.Application received for Maori UG(CCT) was withdrawn by customer.

Further it has been observed that thepresent procedure for allocation of costplus projects is long and cumbersome.A proposal depicting difficulties beingfaced in implementation of cost plus

projects was placed before WCL Boardin its 243rd meeting held on 05/12/2012.After deliberation it was directed to referthe issue to CIL/MoC for decision/deliberation on alternatives suggestedbelow :

1. Price of WCL as a whole by poolingcost plus projects and notifiedprojects.

2. Pooling the difference betweendesired selling price of cost plusprojects of WCL with the notified priceon the whole of CIL for each GCV band.

In case one or both options are agreedto, all projects of WCL may come out ofthe cost plus ambit thereby facilitatingexpeditious approval and execution ofongoing/future projects.

The matter has been referred to CIL.

18. PROJECTS / SCHEMES APPROVAL

AND COMPLETION

18.1 Approval of Project Reports

During the year 2012-13, the followingproject has been accorded Stage Iapproval for making application for EC/FC and identification of consumer forentering into Coal Supply Agreement oncost plus basis.

18.2 Projects approved subject to Cost

plus agreement

During the year 2012-13, the followingproject has been accorded approvalsubject to Coal Supply Agreement oncost plus basis.

Sr. Name of the Project Capacity in Sanctioned

No No.Million Te Capitalper annum in Rs. crore

1 Chincholi OC 0.30 24.64102 Saoner UG Mine -1 Expn. (CMT) 0.75 68.1679

3 Sakhari-Irawati (Pauni-III) OC 1.25 360.79874 Tawa-II Expn. UG* 0.75 89.1888

5 Jamunia UG (CMT) 0.72 127.52236 Tawa-III UG* 0.48 105.6926

S.No.

1

Capacity

(Mty)

0.80

Capital

(Rs. Crs.)

451.0397

Name of Project

Parsoda OC

Name of the

Project

Ukni Deep OC

Bellora Naigaon

Deep OC

New Majri UG

to OC

Scheme for

Durgapur OCM

Urdhan OC RCE

Total

Capacity in

Million Te

Per Annum

2.00

1.00

0.80

1.357

0.50

5 . 6 5 7

Sanct.

Capital in

Rs. crore

319.97

114.41

72.57

0.00

70.23

577.17

Contracted

Capacity in Million

Te Per Annum

0.80

0.40

0.68

1.15

0.425

3 . 4 5 5

Date of

agreement

03/04/2012

03/04/2012

30/06/2012

31/08/2012

03/04/2012

S.No.

1

Capacity

(Mty)

3.00

Capital

(Rs. Crs.)

1176.1265

Name of Project

Chinchala Chikhalgaon

Amalgamated OCM

38


18.3 Approval of Schemes for sustaining

production

During the year 2012-13, following two

schemes have been accorded approval

for sustaining production :

18.4 Final Approval of Projects/Schemes

During the year 2012-13, following two

projects/schemes have been accorded

final approval :

18.5 Commissioning of Projects

During the year Scheme for Gauri Deep

OC has been commissioned and the

project has started to contribute coal

production also.

18.6 Brief Status of Ongoing Projects

At present there are 32 ongoing projects

(20 projects having a sanctioned capital

of more than Rs.20 Crore & 12 projects/

schemes having a sanctioned capital of

less than Rs.20 Crore). The sanctioned

capacity of these projects is 32.181

Million Tonne per Annum and

sanctioned capital of Rs.1487.167 crore.

Out of 32 Projects, 20 are contributing

to coal production and rest are under

implementation. Contribution of 20

projects in coal production for 2012-13

was 17.0686 Mte with an increment of

0.3563 Mte over last year. Due to

enhancement of land rates by

Maharashtra Govt. and implementation

of R&R Policy, 2012 most of the

opencast projects approved on notified

price are not likely to remain viable at

such price. For projects approved on

cost plus basis, cost plus price is also

likely to undergo upward revision due

to the factors mentioned above.

18.7 Acquisition of land

18.7.1The Coal Bearing Areas (Acquisition &

Development) Act, 1957 is the main

stay of Central Government for

acquiring land and vesting 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. Since

Nationalization WCL has acquired

18821.581 Ha. of land till March, 2013

under CBA Act out of which 9828.151

Ha. is under possession.

18.7.1.1 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 extented under this acquisition also.

Sinc Nationalization WCL has acquired

4184.64 Ha. land till March, 2013 out of

which 3973.26 Ha. is under possession.

18.7.1.2 The provisions of Land evenue Code

of Madhya Pradesh and Maharashtra

have also been referred for acquiring

land in cases where mining lease has

Sr. Name of Project Capacity Capital

No. (Mty) (Rs. Crore)

1 Gauri Deep 0.40 86.210

Sr. Name of the Schemes Capacity Capital

No. (Mty) (Rs. crore)

1 Scheme for Narayani OC 0.17 2.6809

2 Scheme for Bharat OC 0.27 5.5860

Total 0.44 8.2669

Sr.No.

1.

2.

Name of the Project

Scheme for Diversion

of Amb River Phase- IVat Umrer OC

Urdhan OC RCE

Total

Capacity in Million

Te Per Annum

2.00

0.50

2.50

Sanctioned Capitalin Rs. crore

64.1133

70.2267

134.3400

39


been obtained under Mineral

Concession Rules. WCL has acquired

and taken possession of 1558.096 Ha.

land under this provision.

18.7.1.3 This year your Company has made a

remarkable achievement in acquisition

of land for mining and allied activities.

The details of acquisition in 2012-13 is

as under :-

18.7.2 Details of physical possession

during 2012-13 is as under :-

18.7.2.1Summarised Status of land

acquired during the year 2012-13

is as under :

18.7.3 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 2nd Stage clearance for 9.50 Ha.

(Surface Right) forest land obtained for

Sharda UG Mine of Kanhan Area.

18.7.4 Rehabilitation and Resettlement

39 families of Beghar Basti under

Mungoli OCP, Wani Area, 8 families of

Pits Colony under Ghugus OCP, Wani

Area, 7 families of Takiya Nallah

(Ghorawari) of Kanhan Area, 5 families

of Kamptee UG to OC, Nagpur Area

and 2 families of Padmapur OC,

Chandrapur Area have been resettled

by providing resettlement grant as opted

by land oustees, within the provisions

of R&R Policy of CIL.

Total Project Affected Families

Resettled in 2012-13 are 61 Nos.

Administrative approval for

employment during 2012-13:

18.7.5 Special Achievement

The notification U/s. 11 of CBA Act is

5115.48 Ha. against MoU Target of

533.90 Ha. (for very good rating), which

is 958.13 %.

The physical possession of land is

201.21 Ha. against MoU Target of

190.00 Ha. (for very good rating), which

is 105.90%.

Details Total land Land taken inacquired possession

Under LA Act, CBA Act, FC ACT 2025.823 201.21and Direct Purchase.

Sl.No.

1

2

3

4

5

6

Area

Wani North

Umrer

Kanhan

Pench

Nagpur

Wani

Mode of

acquisition

CBA

CBA

FC Act

CBA

Direct

Purchase

LA

Total Area

(In Ha.)

110.660

1596.000

9.500

294.293

11.140

4.230

2025.823

Project

Ghonsa OC (RPR)

Dinesh OC (Makardhokra - III)

Sharda UG

Dhankasa UG

Gondegaon-Ghatrohana

Amalgamated OC

Penganga OC

Total

Sl.

No

1

2

3

4

5

6

7

8

9

1 0

11

1 2

Area

Ballarpur

Nagpur

Nagpur

Nagpur

Nagpur

Nagpur

Chandrapur

Umrer

Umrer

Wani North

Wani North

Wani North

Project

Gouri Deep OC

Gondegaon-

Ghatrohana

Amalgamated OC

Gondegaon-

Ghatrohana

Amalgamated OC

Singori OC

Kamptee UG to OC

Bhanegaon OC

Bhatadi

Expansion OC

Makardhokra – I OC

Makardhokra – II OC

Kolarpimpri

Extension OC

Junad

Extension OC

Ghonsa (RPR)

Total

Mode of

acqui-

sition

CBA

CBA

Direct

Purchase

CBA

LA

CBA

LA

LA

LA

CBA

CBA

CBA

Tenancy

26.04

6.02

11.14

23.21

17.00

5.01

3.54

31.70

37.97

9.19

10.19

5.42

186.43

Govt.

14.78

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

14.78

Forest

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Total

Area

(in Ha.)

40.82

6.02

11.14

23.21

17.00

5.01

3.54

31.70

37.97

9.19

10.19

5.42

201.21

Year Employment/ Monetary compensation

monetary compensation in lieu of empolymentadministratively approved approved

by WCL Board

2012-13 753 Nos. 46 Nos.

40


vi)State Government officials show their

inability for providing Government land

for resettlement of Project Affected

Families. Identification of land for

resettlement in consultation with PAFs

causes delay in their resettlement.

To overcome the above constraints

New R&R Policy of CIL – 2012 has

been approved by CIL Board in its

279th Meeting held on 12th & 13th

March, 2012, which is implemented

in WCL.

Meeting held with Chief Secretary,

Government of Maharashtra on 2nd

November, 2012, 12th December,

2012 and 19th December, 2012 for

expediting the proposals of land

acquisition under LA Act and

expeditious processing of forestry

clearance proposals. The progress

was reviewed in subsequent

meetings held on 4th February, 2013

and 4th March, 2013. Besides above

several meetings are also held with

Divisional Commissioner, Nagpur,

APCCF/ Nodal Officer and other

Officials at Nagpur for expediting the

proposals of LA Act and forestry

clearance proposals.

Meeting was held with Minister of

Forest, Government of Madhya

Pradesh on 8th August, 2012 and with

Addl. PCCF (LM), Bhopal on 28th April,

2012, 29th August, 2012 and 14th

March, 2013 for expediting the

forestry clearance proposals in

Madhya Pradesh. Meeting was also

held with APCCF (C), MoEF,

Regional Office, Bhopal on 25th May,

2012 and meeting with DG (Forests),

MoEF, New Delhi on 11 th/12 th

January, 2013 for expediting forestry

clearance proposals, which are under

process at MoEF.

18.7.6 Constraints in acquisition of land

i) There is undue delay in acquisition of

land applied for acquisition under LA

Act, 1894 by State Government

Authorities such as in Gondegaon-

Ghatrohana Amalgamated OC,

Singori OC, Kamptee UG to OC and

Inder UG to OC Projects of Nagpur

Area.

ii) 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 declared

by Government of Maharashtra for

compensation of land.

iii) Provision of fund in the project

reports under the head “Land” is not

sufficient for payment of

compensation of land as per the rate

declared by Government of

Maharashtra. Therefore project

reports are being revised/cost

updated.

iv)Due to the enhanced rate of land,

many of the ongoing projects

approved on notified price may

become unviable at notified price and

may fall in cost plus category. The

compensation of land in such projects

cannot be paid under present

guidelines until cost plus agreement

is executed with consumers,

resulting in delay in physical

possession of land.

v) 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.

41


could not fructify due to non- achievement

of milestone in respect of Bhusawal/Parli

TPS.

iii) The offtake through e-auction route

was restricted upto 10% of the planned

production till November, 2012 which has

resulted in less offtake of 1.04 MT than

the last year’s offtake through e- auction

route.

19.1.1 Modewise AAP TGT and despatches

( Sales) by Rail & Road for 2011-12 &

2012-13 are furnished below :

DESPATCHES

(Fig in Mill Te)

19 COAL MARKETING

19.1 Raw Coal Offtake during the Fiscal 2012-

13 was 41.546 Mill Te against the TGT

of 45.25 Mill Te i.e achievement of 92

% of Target. Offtake during the fiscal

2011- 12 was 41.967 Million tonne thus

growth during 2012-13 as against

2011-12 was (-)1%. The reasons for

short fall are :

i) The offtake of WCL has been less

than MOU target mainly because of

inadequate lifting of coal by

MAHAGENCO through captive

modes (Rope/MGR) and Road modes

to the tune of 2.45 MT against

allocations.

ii) Evacuation of coal from Ukni and

Bellora Naigaon Cost Plus Mines was

affected to the tune of 1.14 MT as Cost

Plus agreement with MAHAGENCO

YEAR AAP TGTRAIL ROAD MGR OTHER TOTAL

MODE DESPATCHES(SALES)

2012-13 45.250 21.374 15.432 0.970 3.749 41.5252011-12 45.399 18.283 18.525 1.072 4.052 41.932

ACTUAL DISPATCHES

Ropeway in operation – Transporting coal from Pit head to Power house.

42


DETAILS OF SECTORWISE TARGET &

DESPATCHES DURING 2012-13

Power utilities could source a quantity of1.29 MT on “As is where is basis” duringthe fiscal 2012-13 to build comfortablestocks at their power plant. This has beenhelpful in augmenting offtake of coal fromWCL.

19.2 Wagon Loading ( in Boxes / Day)

The details of AAP TGT Loading on dailyAverage Basis & quantity despatched forthe year 2012-13 as compared to 2011-12

Remarks:

WCL has despatched 21.37 MT coal

through rail mode as against the AAP

target of 19.05 MT and against last

year’s actual of 18.23 MT. Thus WCL

has achieved 112% of traget & a

growth of 16.8% over last year.

19.3 Sales realization

The Sales Realization during the

current fiscal 2012-13 had been

Rs.8137.05 cr which was 5.61%

lower than the last year’s

realization of Rs.8620.70 cr. Less

realization by Rs.483.65 cr over the

previous year is mainly due to less

off take by 0.42 MT and less

generation of additional revenue

through e-Auction.

19.4 Spot e-Auction :

Quantity offered under Spot e-

Auction, quantity allocated and

additional revenue generated based

on the quantities allocated to the

bidders during the years 2011-12 and

2012-13 are given below :

As compared to the year 2011-12,

realisation during the year 2012-13

decreased by Rs.321.45 crs. The main

reasons for decrease in additional

revenue generation during 2012-13 are

(i) the quantity under e-Auction was

less as per the ceiling prescribed by CIL

upto November 2012-13 and (ii) less

booking against the offered quantity.

19.4.1Additional Revenue Generated

Aditional revenue of Rs.392.11 cr was

generated through e-auction during

2012-13 but was less by Rs.321.44 cr

from last year’s level of Rs.713.55 cr.

Sector

Power

including

IPP

Middling

& Slurry

Cement

incl CPP

Steel

(Raw)

Sponge

I ron

CPP

Others

Total

Despatch

(Internal

Raw)

C C

Total

Offtake

AAPTGT

31.880

0.137

1.830

0.381

0.360

2.070

8.709

45.230

0.020

45.250

ACT

30.008

0.122

2.060

0.281

0.355

1.635

7.200

41.539

0.007

41.546

% age

94.1

89.1

112.6

73.8

98.6

79.0

82.7

91.8

35.0

91.8

ACT

29.252

0.107

1.843

0.270

0.336

1.485

8.773

41.959

0.008

41.967

2.6

14.0

11.8

4.1

5.7

10.1

-17.9

-1.0

-12.5

-1.0

Less drawal of Coal by

MAHAGENCO from captive

mode Ropeway, MGR & By

Road from cost plus

Bhatadih OC mine.

Source of Washery Grade

coal as feed to Washery have

reduced which has resulted

in less off-take of WG coal.

Despatch was more since the

contract quantity as per the

FSAs was more than the AAP

Target.

Raw coal feed to Washery

reduced due to closure of

Damua UG mine and Tandsi

is not able to produce due to

adverse roof condition.

Coal Supplied as per FSA

Despatch was less since the

contract quantity as per the

FSAs was less than the AAP

Target.

Includes FSA & e-Auction

2012-13 2011-12%age

Growthover

2 0 1 1 - 1 2

(Fig in Mill Te)

Remarks

Year TGT ACT ACH% Rail Desp

in Mill Te

2012-13 887 885 100 21.374

2011-12 876 761 8 7 18.283

Year Quantity offered Quantity allocated Additional Revenue

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

2012-13 60.08 47.26 392.11

2011-12 70.47 64.14 713.55

43


19.4.2 Forward e-Auction

For the year 2012-13, four Forward e-

Auctions have been held covering the

four quarters of the year,performance of

which is given below :

20. CONSUMER SATISFACTION

WCL has adopted various measures to

ensure supply of quality coal to the

consumers, as brought out hereunder :

20.1 Quality of Coal

20.1.1The Grade materialization of our

Company during the period 2012-13 is

90.56% as compared to 90.55%

achieved last year. The bonus earned

per tonne is Rs.0.35/- during 2012-13

against a deduction of Rs.1.30 per tonne

during 2011-12.The dispatches 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, incentive of Rs111.54

per tonne, Rs.122.24 per tonne, Rs

11.42 per tonne, Rs.8.13 per tonne and

Rs.60.74 per tonne respectively has

been earned during the fiscal 2012-13.

20.1.3 The grade materialization of coal

supplies to Gujarat State Electricity

Corporation Limited (GSECL) and

Karnataka Power Corporation Limited

(KPCL) are 100% & 99.95% respectively.

20.1.4 During 2012-13 the weighted average

Gross Calorific value (GCV) of coal

supplied to MAHAGENCO was more

than the required GCV, as per boiler

parameters.

20.1.5 The average monthly generation of

Maharashtra State Power Generation

Company Limited (MSPGCL) during

fiscal 2012-13 is 2955.513 MU (Less

Generation Due to Scarcity of Water

at Power House) as compared to

3107.012 MU during 2011-12.

20.2 Weighment

Total 110 Electronic Road

Weighbridges and 26 Rail Weigh-

bridges are working/ operational and

Overall weighment percentage during

2012-13 was as under :-

20.3 Crushing

The installed annual crushing capacity

for Open Cast mines is 46.20 million

tonnes.

20.4 Quality Dispute Redressal

a) In 2012-13, total 138 complaints have

been received. The complaints were

of lumpy coal, extraneous material and

wet and sticky coal.

b) Complaints received are registered,

acknowledged, investigated and

corrective remedial measures are

taken on top most priority for redressal

April’12 to March’13 2.39 1.38 2.95July’12 to June’13 1.87 1.34 1.90Oct’12 to Sept’13 1.18 0.92 1.80Jan’13 to Dec’13 0.79 0.33 1.44

“Forward e-Auction

Years” for whichauctions were

conducted

Quantityoffered

(in lakh tes)

QuantityAllocated

offered(in lakh tes)

Addl. Revenue

generated (as per theqty. allocated in

e-auctions)(Rs. in crs)

Power Sector GCV (Kcal/Kg)

Required GCV Supplied GCV

MSPGCL 4212 4788

(MAHAGENCO)

YEAR BY RAIL BY OTHER MODES OVERALL

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

2012-13 98.50 99.99 100.00 100.00 99.50 99.99

44


c) Regular feedback obtained to

maintain high quality standards.

d) Remedial measures :

Following measures are taken at Area

level to improve the quality of coal

supplied to the consumers to minimize

the complaints:

1) Selective mining

2) Deployment of sufficient pickers at

coal faces, Stock and Siding to

separate extraneous materials

from coal.

3) Proper cleaning and maintenance

of sidings.

4) The crushing facilities are

provided at the mines/at loading

points to dispatch sized coal.

5) All weighbridges of WCL are

annually 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. and Stores

through BSNL leased lines.

Surface Communication

i) During 2012-13 total 7 Nos. of state

of art IP EPABX systems have been

procured and commissioned at AHQ,

Chanda Rayatwari mine, Bhatadi Sub

Area, Durgapur Sub Area, Hindustan

Lalpeth UG SA (5 nos) at

Chandrapur Area, AHQ, Kanhan

Area & 1 no. at New Majri UG-3 mine

Majri Area has been ordered and

commissioned.

ii) During 2012-13, 6 Mbps leased

internet service at WCL HQ has been

commissioned & is in operation

catering the need for various

applications such as tender

uploading, e-auctioning, web

browsing etc.

iii) During 2012-13, supply order has

been placed for the supply of 3 nos of

environmental telemonitoring systems

one each at Mahakali & HLC mines

of Chandrapur and Sasti UG mine of

Ballarpur Area. It is expected to

complete the installation and

commissioning soon.

iv) During 2012-13, digital TETRA based

mobile communication system has

been established at Gondegaon &

Inder mines of Nagpur Area which

has contributed to enhance

operational efficiency of the mines.

22. COMPUTERISATION :

22.1 Status of activities planned for the

year 2012-13

Sr.

No

1

2

3

4

5

6

7

Particulars of Activities

Consolidation of 22 existing database

servers at 10 areas to a Central Database

for entire WCL

Deployment of Biometric attendance

System at WCL, integrated with payroll

system and subsequent action for entire

WCL .

Finalisation of specification and taking

necessary actions for deployment of a

central data base server connected upto

Mine/Weighbridge level with MPLS/VPN

network(to be provided by E & T department).

Development of oracle base pension & PF

system

Development of consolidated database

for Gratuity for entire WCL

Additional Achievement

Computerisation of Medical referral

package at WCL Hq

Computerisation of Training Database

and capturing the same since 2010 at

HRD.

Status

Achieved

Software part is ready to be

implemented after procurement

of Bio-metric machine.

Procurement to be done through

MM department.

A joint scheme has been

prepared with E & T department

and is under process for

approval.

To be implemented after

establishment of high speed network

.

Achieved

Achieved

Achieved

45


24.3 To have better control over inventory

and consumption 43 charged off

stores have been computerized.

24.4 LONG TERM AGREEMENT

24.4.1 WCL has entered into a Long Term

Agreement with 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. The same has been

extended upto 31.03.2014.

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

was up-to 31.03.2013 for off-take

value of Rs.46.68 crores for an

approximate quantity of 11000 MT.

WCL is first amongst CIL

subsidiaries to have such an

Agreement for smooth supply of

Iron and Steel materials. The MOU

for the year 2013-14 has been

finalised.

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 2012-

13, all the procurement cases of

22.2 Activities planned for 2013-14

23. ROLE PLAYED BY WCL IN

DEVELOPMENT AND 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. WCL has fully

implemented MSE Policy promulgated

on 23rd March 2012 by Ministry of MSME.

All the benefits as per MSME Policy are

also available to these Industries.

Materials Management Wing has

showcased important stores and spares

required in WCL in various Vendor

Development Programs arranged by

MSME Development Institute Nagpur.

24. MANAGEMENT OF INVENTORIES

24.1 WCL has maintained its position at the

top (amongst CIL Subsidiaries) in

respect of Inventory Management.

Online MMS has been introduced in

WCL and all the Regional Stores

accountal is done online.

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 :

1 Implementation of Biometric attendance at WCL HQ and Areas

2 Implementation of central data base server (after providing connectivity

upto Mine/Weighbridge by E & T department) and taking all application

and utility upto unit Level.

3 Modified Payroll package interfacing with other application.

4 Implementation of CIL financial code upto unit level transactions and

cash/bank book .

5 Replacement & installation of 485 personal computers .

6 Implementation of PF and Pension central database after networking is

established .

(Fig. Rs. in Lakhs)

Sr. No. Financial Net Annual Inventory in % age

Year Inventory Consumption terms of change inmonths inventory

consumption

1 2010-11 7425.74 86519.43 0.03 +01.00

2 2011-12 7606.00 92026.00 1.00 +01.02

3 2012-13 7467.00 99824.00 0.89 -01.82

46


material were finalized through e-

tendering mode. During the current

year total 137 nos. of e-tenders have

been floated with estimated amount of

Rs.583 Crore CIL concluded a

contract with National Informatic

Centre New Delhi for providing e-

tendering services to CIL and its

subsidiaries.

24.7 MODEL DEPOT AGREEMENT

24.7.1 WCL has finalized Model Depot

Agreement with M/s Bharat Power

Corporation Limited for supply of

transmission spares being the lead

company nominated by Coal India Ltd.

25. HUMAN RESOURCES

MANAGEMENT

25.1 Manpower

The Company’s manpower as on

31.03.2013 as compared to that on

31.03.2012 is furnished below :-

25.2 HUMAN RESOURCE DEVELOPMENT

(HRD)

25.2.1 In-Company training

In-Company training plays a vital role

in the skill updation 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.

A) The break-up of number of

executives, supervisors and workers

trained during 2012-13 in the four

Institutes are as given below:

B) Number of persons trained at IICM-

Ranchi

Total trained - 287 (Executives – 283

& Supervisors - 04)

25.2.2 Out-Company Training

a) Within Country - HRD department of

the company takes important initiative

of Out company training, 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

T e c h n o l o g y ( N I T ) , v a r i o u s

organisations such as Indian Institute

Sl.. Category Manpower as on

No. 31 .03 .2013 31.03 .2012

1 Executive 2868 2620

2 Supervisor 5321 5288

3 Clerical 3166 3546

4 Highly Skilled / Skilled 27759 28828

5 Semi-skilled / Unskilled 15512 16460

6 Company’s Trainee 334 247

T O T A L 5 4 9 6 0 5 6 9 8 9

INSTITUTES

MDI, NAGPUR

WTI, WARDHASTI, CHHINDWARA

HEMM TI,DURGAPUR

TOTAL

EXECUTIVES

16020

3164

1697

SUPERVISORS

75

235666

64

1040

WORKERS

166

321359

827

1673

TOTAL

1843

5561056

955

4410

47


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

and also Original Equipment

Manufacturers (OEM) such as BEML,

L&T etc.

The breakup of executives,

supervisors and workers sent for Out-

Company training is as below :

b) Foreign Training : Apart from various

typesof Out-company trainings in

India, employees are also sent abroad

for different types of study tours,

trainings, development courses,

international Exhibitions / Expo etc. In

the year 2012-13 : 02 Executives

participated in such programmes.

25.2.3 Safety Training: Under VT Rules,

various trainings such as Initial,

Refresher and Special trainings are

imparted to the workers working in

mines. This purpose is fulfilled by 12

VTCs located in different Areas of

WCL. In addition, the Contractors’

workers, who play an important role

in today’s scenario, are also imparted

Initial and Refresher training in our

VTCs. As per recommendation 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 2012-

13 are as given below:

25.2.4 Training Under Apprentice Act

This year, 285 apprentices were

engaged in various trades such as

Fitter, Electrician, Materials

Handling Equipment Operator

cum-mechanic (MHEO), Mining

(Trainee) etc against the quota of

281.

25.2.5 Coaching for Statutory

Examination

To make up shortfall of Statutory

Manpower, extensive coaching

was conducted for DGMS

examination at MDI, Nagpur for 1st

Class Mine Managers Certificate

of Competency and at STI,

Chhindwara for 2nd Class Mine

Manager Certificate of

Competency, Mining Sirdar,

Overman and Surveyor. Following

number of employees qualified in

statutory examinations.

Executives Supervisors Workers TOTAL

Out-Company Training

(including GLF, Puri) 274 72 45 3 9 1

TYPE OF TRAINING NO. OF WORKERS /SUPERVISORS TRAINED

1. INITIAL TRAINING 687

2. REFRESHER TRG 8269

3. SPECIAL TRG 1761

4. AREA BASED TRAINING 5028

5. CONTRACTORS’ WORKERS TRG

a) Initial training 2364

b) Refresher training 375

c) Area based trg 243

6. TRG. FOR SUPERVISORS

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

a) Mining 398

b) E&M 235

c) Excv 33

Sr Examination No. of employees

No. passed

1 1st Class Mine Managers Certificate 36

2 2nd Class Mine Manager Certificate 18

3 Overman Certificate 21

4 Mining Sirdar Certificate 40

5 Surveyor Competency Certificate 2

48


25.2.6 Training of SC / ST / OBCs

Training for upliftment of SC/ST/OBCs

is an important thrust area.

SC / ST / OBC Training (In-company

& Out-company) :- Through the

training programmes of the company,

SC (3487), ST (2161), OBC (6111)

employees were benefited through

different Skill Improvement courses.

26. SCHEDULED CASTES AND

SCHEDULED TRIBES/OBC

26.1 As on 31/03/2013, the total number of

employees including the number of SC/

ST/OBC is tabulated below:

26.2 The Presidential directives with respect

to 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:

* Formulation and evaluation of Action

plans/budgets;

* Resources utilization

* Cost/profitability

* Quality of coal

* Safety

* Employees’ welfare and

* 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.

27.3 Employment to dependants

In WCL during 2012-13 employment/

monetary compensation under the

provisions of NCWA have been

sanctioned as under:

· Employment : 582

· Monetary compensation : 37

28. INDUSTRIAL RELATIONS

28.1 Industrial Relations scenario in WCL

during the fiscal 2012-13 has been

peaceful, cordial and harmonious.

28.2 Status of Industrial Relations

situation for the last two years is

given below:-

2011-12 :

* (1) Joint demonstration by the five

Central Trade Unions before WCL

Hqrs. on 18/07/2011 in support of

their 3 days strike notice w.e.f. 8th to

10th August 2011.

* (2) Demonstration/Dharna by BKKMS

(BMS) Union on 26/09/2011 in front

of WCL Hqrs., Nagpur.

** (1) One day joint strike on 10/10/2011

by INTUC, AITUC, BMS, HMS and

Total No. of employees SC ST OBC

as on 31/03/2013

54960 11719 4378 16013

Law & order incidents 2011-2012 2012 -2013

Relay Hunger Strike Nil Nil

Gherao Nil Nil

Assault Nil Nil

Dharna/Morcha/Demonstration 2 * 01#

Total 2 1

Strike/Work Stoppage

No. of strikes 02* 1 ##

Mandays lost 50006 42569

Production loss (Te.) 154898.5 194900

49


CITU Unions in all units of CIL over

the issue of PLR/Bonus/ Ex-gratia.

** (2) One day strike on 28/2/2012 by

INTUC, AITUC, BMS, HMS and CITU

Unions over National level issues.

2012-13:

# Demonstration/Dharna in front of W C L

Hqrs., Nagpur on 26/6/2012 by Shri Sudhir

Mungantiwar, Hon’ble MLA of BJP,

Chandrapur Dist. Over the 36 points of

demands related to Chandrapur Dist.

## Two days general strike called by all the 5

Central Trade Unions, i.e. INTUC, BMS,

AITUC, HMS and CITU on 20th and 21st

February 2013 over 10 points charter of

demands of national level issues.

28.3 Voluntary Retirement Scheme (VRS):

The scheme was kept under suspension

w.e.f. 30/9/2007 due to shortage of

manpower.

28.4 Recruitment during 2012-13 :

i) Mining Sirdar .. 74

ii) Staff Nurse .. 50

iii) Job provided to land .. 72

oustee

Notified for recruitment of following

posts :

Special recruitment drive for SC/ST/

OBC -

• Mining Sirdar : 31

• Mining Sirdar (General) : 215

• Recruitment of Surveyor : 27

28.5 Promotions during 2012-13 :

As part of career- care of employees, the

following number of non-executives have

been given promotion:

Non-Executives

a) Excavation personnel 455

b) Non-excavation personnel 1655

TOTAL 2110

29. WELFARE MEASURES AND SOCIAL

AMENITIES :

29.1 Group Gratuity Scheme :

29.1.1 The Group Gratuity Scheme is in

vogue with effect from 10 th

March,2003. The actuarial liability as

on 31/03/2013 is Rs.2270.78 crores

and unpaid liability will be paid to Life

Insurance Corporation of India. The

trust has earned an interest amounting

to Rs.178.75 crores in the year 2012-13

@ 9.60%

29.1.2 During the financial year 2012-13 total

number of 3249 superannuation cases

and 500 death cases were settled

under the WCL Employees Group

Gratuity Scheme and total amount of

Rs.250,94,00,790.00 was paid to the

employees superannuated and in case

of death to their nominees.

29.2 WELFARE AMENITIES

29.2.1Following are the details of various

amenities for the welfare of our

employee:

29.3 Medical Services :

29.3.1 WCL incurred total expenditure of

Rs.51.99 Crores on Medical services

(employees on roll and retired

employees) during the year 2012-13.

The per capita expenditure in 2012-

13 was Rs.9122.81 as against the

provision of Rs.2,000/- under NCWA-IX.

Sl.No. Details As on 31.03.13

1 Houses- Standard -42527 Non-Standard -10086 52613

2 Water Supply (Population covered) 3238553 Schools (receiving recurring, non recurring grants

or infrastructural facilities) 154 Co-operative Stores 245 Co-operative Societies 456 Bank Branches/ Extension Counters 1137 Ambulances 1118 Dispensaries 549 Hospitals 11

10 Canteens 7911 Gymnasiums 2712 Stadium 13

50


29.4 Family Welfare

29.4.1 During 2012-13 under Family Welfare

Programmes, total beneficiaries were

1813 (TT+VT) in 51 camps, out of

which 22 camps with 588 beneficiaries

were organised in collaboration with

State Health authorities and 29 camps

were conducted by WCL Hospitals

with 1225 beneficiaries.

29.5 Other Medical camps under C.S.R.

29.5.1 221 Medical camps, such as, eye,

village check-up etc. (including family

planning) under Corporate Social

Responsibility with 28,647

beneficiaries, were organised during

the year.

29.5.2 906 camps by Mobile Medical Vans

were organised during the year in

nearby villages, under Corporate

social Responsibility with 68,529

beneficiaries.

30. GAMES & SPORTS

Company has secured 1st position in

Table Tennis & 2nd position in Carom

in CIL Inter Company Tournament.

31. Corporate Social Responsibility :

31.1 In pursuance of the directives from Coal

India Ltd. Vide no.CIL/C-5/ 55231 dt.

29.6.2010 and CIL/CSR/247A dtd.

19.12.2012, the CSR Policy of CIL has

been implemented in WCL from 2010-11.

31.2 The main objective of CSR Policy is to

make CSR a key initiative for sustainable

development for the Society. It aims

mainly at supplementing the role of Govt.

in enhancing welfare measures of the

society based on immediate and long

term social & environmental

consequences of their activities. The

CSR programme also covers the existing

components of Special Component Plan

(SCP) and Tribal Sub Plan (TSP) for

Sports Activities : Lawn Tennis Match in progress during Inter Area Lawn Tennis

Tournament 2012-13

51


development of the SC/ST population

besides development component for the

entire population.

31.3 The Action Plan includes the Scope of

works under Education, Water Supply,

Health Care, Infrastructure of villages,

Sports & Culture, Generation of

employment, Infrastructure support,

Grant/Donation/ Financial Assistance,

Empowerment of Women, Relief to

victims of Natural Calamities, Disaster

Management, distribution clothes to poor

villagers with the help of Mahila Mandals

etc. The CSR works are executed through

the CSR Committees at Area/ Hq. Level.

The Action Plan is prepared in

consultation with the District Authorities/

Govt. Official/Local body/Village

Panchayat/Sarpanch etc.

31.4 The allocation of fund for CSR is based

on 5% of the retained earning of previous

year subject to minimum of Rs. 5/- per

tonne of coal production of previous year.

31.5 The CSR Budget of WCL for the year

2012-13 was Rs. 21.556 crore and

expenditure incurred is to the tune of

Rs.20.960 crore.

31.6 Highlights of the activities undertaken

during the year are as under :

A HELPING HAND - Smt. Shashi Garg, First Lady and President, Jhankar Mahila Mandal,

WCL donating Sewing Machines to Viraja Apang Utthan Sanstha, Nagpur for the welfare

of disable persons.

Sr.No.

1

2

3

4

5

6

7

Activities

No. of Village Medical Camps

No. of beneficiaries

No. of Medical Camps through Mobile Medical Vans

No. of beneficiaries

Construction/Repairing of Roads

Construction of School Class Rooms

Construction/Repairing of Community Centre

No. of Borewells/Hand pumps provided

No. of village Sports/Coaching Camps

No./Distance covered

221

28647

906

68529

43565 Mtrs.

3 5

3 0

4 3

16

52


32 . PENSION

32.1 Processing and sanction of pension

cases

32.1.1WCL is trail blazer among subsidiaries

of CIL with respect to implementation of

the provision of CMPS-1998. Up to the

year ending 3/2013 Total 46042 claims

have been processed and sent to

CMPFO for release of Pension out of

46133 claims received comprising

99.80% of the claims received.

32.1.2 During the current Financial Year 3642

Pension claims completed and sent to

CMPF-Office, Nagpur & Chhindwara

for the release of pension.

32.1.3 Up to 31/03/2013, 45993 pension

claims in respect of WCL have been

settled by CMPF Office, Nagpur &

Chhindwara . During the year 2012-13,

3642 claims have been settled by

CMPF Office, Nagpur & Chhindwara.

32.2 Computerization Of Process of PF

and Pension Claims

Complete computerization has been

achieved in respect of processing of

current pension claims by WCL and all

the pensioner are being given pension

calculation sheet, the pension data is

saved in computer for future reference

for all the claims forwarded to CMPF-

Office by WCL.

32.3 Settlement of “PF” & Pension in the

month of superannuation under

“MISSION BISWAS”

The status of settlement of PF &

Pension claims under MISSION–

BISWAS during the year 2012-2013 is

as under:

32.4 Pension Help line is in operation for

solving the problems being faced by

the Pensioners, if any. During the

current financial year total number of

388 calls of individual grievances and

letters received, out of which 382

cases have been replied and cleared

and balance cases have been

persuaded with CMPF Office and

concerned Nationalized Bank. The

Pensioners have been encouraged to

make maximum use of Pension Helpline,

and sincere & dedicated efforts have

been made to sort out the problems of

Pensioners over Helpline.

32.5 Submission of Annual VV Statement

for the year 2012-2013

The Annual VV Statement for the year

2011-12 has been submitted by All The

Units/Area to concerned Regional

Commissioner, CMPF Nagpur &

Chhindwara. Instruction to all Area of

WCL has been given in advance

regarding submission of Annual VV

Statement for the year 2012-13 in

respect of all the Units to concerned

CMPF-Office within scheduled time.

33. PROGRESSIVE USE OF HINDI 2012-13

33.1 In accordance with Official Language

policy of Government of India, under the

efforts made during 2012-13 for

enhancing impetus to the use of Hindi in

the official working and progressive use

of Hindi in the Company, 8 Rajbhasha

Workshops were organized, in which,

191 officers/employees participated. In

these Workshops, they were acquainted

NO OF EMPLOYEES NO. OF CLAIMS BALANCE

SUPERANNUATED FROM/ SUBMITTED TO CMPFO’

01.04.2012TO 31.03.2013 OUT OF ‘A'

A B C

2317 2314 03 (Disputed)

53


with Official Languages Act and Rules

and Rajbhasha targets and they were

also imparted practical sessions for Hindi

noting, drafting and Hindi

correspondence etc.

33.2 In the year 2012-13, the meetings of

Official Language Implementation

Committee was held in each quarter

regularly. Total 20 meetings of the

Committee were held during the year,

during which, Hindi progress and steps

taken to achieve Rajbhasha targets were

reviewed.

33.3 During the year, 57 offices and units of

WCL were inspected, during which the

progressive use of Hindi and compliance

of Official Language Act and Rules were

reviewed.

33.4 During the year, “Aaj Ke Shabd” were

continuously displayed near entrance of

the office building and this is continuing.

The same is also being displayed in the

Areas of WCL.

33.5 During the year, 2 issues of “Khanan

Bharti”, CIL’s representative Hindi

magazine published from WCL, were

brought out, in which, articles etc. of the

employees of the Company published. 4

issues of bi-lingual magazine “Pragati”

were published. 14 issues of Hindi fort-

nightly “Wall Poster” were published, in

which, activities and achievements of

WCL were highlighted.

33.6 On the occasion of “Hindi Diwas”,

Rajbhasha Week was observed from

10th to 15th September, 2012 in WCL

HQ, during which, various programmes/

competitions, such as, Cross word

competition, self general knowledge,

Story writing competition by seeing

picture, Hindi Signature including

“Prashna Manch” were organised. 25

winners of these competitions were

felicitated. Besides this, 60 prizes were

provided during “Prashna Manch”. During

the concluding function of Rajbhasha

Week, 12 departments of WCL HQ and

2 Areas of WCL were given away

Rajbhasha Shield/Rajbhasha Cup for

doing outstanding work in Hindi during

the year.

33.7 At present, 6768 Hindi Books on various

subjects are available in Dinkar Hindi

Library which are being used by the

employees. 5 Hindi monthly magazines

were also made available during the year.

33.8 During the year 67 employees were

trained at Central Hindi Training Institute,

New Delhi.

33.9 Rajbhasha Anuwad Prashikshan

Workshop was organised by HRD in

WCL HQ from 23rd to 27th July, 2012

during which Shri Vijay Ram Nautiyal and

Shri Rajesh Singh, both Assistant

Directors from Central Translation

Bureau, New Delhi gave Training to 25

participants from different offices of

Central and Public Sector Undertakings.

33.10 Shri Dinesh Chandra Garg, CMD, WCL

was awarded Rajbhasha Shree Samman

by the Bhartiya Rajbhasha Vikas

Sansthan Dehradun at a concluding

function of All India Rajbhasha Seminar

held at Shimla from 10th to 12th October,

2012 for doing excellent guidance and

work in Hindi in WCL.

33.11 Shri Balkishan Chandora, Rajbhasha

Pramukh, WCL was awarded Rajbhasha

Kriti Sanman by Rashtriya Hindi

Acadamy Rupambara Kolkata at a

concluding function of All India Rajbhasha

Seminar held at Puri from 2nd to 4th

October, 2012 for Excellent

implementation work in Official Language

in WCL.

54


ENVIRONMENT CONCERN – Tree Plantation on OB Dump

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

31-03-2013 is as under:

34.1.1 Environmental Impact Assessment

(EIA)/Environmental Management

Plans (EMPs) for new Projects/

Existing Projects – Status of

Environmental Clearance

i) During the year 2012-13, a total of 5

(five) nos. EIA/EMPs were prepared

as per Terms of Reference (TOR)

granted by MOEF and after

completion of Public Hearing. These

EMPs were submitted to Ministry of

Environment & Forests (MOEF),

Govt. of India for obtaining

Environmental Clearance namely

Chincholi OC, Inder UG to OC Expn.,

Tawa- II UG Expn, Tawa- III UG and

Juna Kunada OC Expn. In addition,

two alternate proposals excluding the

forest land viz. Jamuniya UG and

Bhakra UG were also submitted to

MoEF during 2012-13.

ii) The company has received

Environmental Clearance for 6(six)

projects/mines namely Telwasa OC

Expn (2.00 MTPA), Dhorwasa OC

Expn (2.00 MTPA), Jamuniya UG

(Alternate proposal)(0.828MTPA),

Dhuptala OC (1.70 MTPA).,

Penganga OC (4.50 MTPA) and Inder

UG to OC Expn (1.20 MTPA) during

the year 2012-13 as per EIA

Notification, 2006.

55


34.1.2 Public Hearing

The company has conducted Public

Hearings through State Pollution Control

Board for 6 (Six)) nos. of projects given

hereunder during the year 2012-13.

i) Inder UG to OC Expn.

ii) Chincholi OC

iii) Sakari Irawati OC

iv) Kamptee Deep OC

v) Juna Kunada OC Expn.

vi) Junad Extn.OC

34.1.3 Terms of Reference (TOR)

The company has received Terms of

Reference (TOR) in respect of Niljai

Expansion (Deep) OC project as per

EIA Notification, 2006 during the year

2012–13 from Ministry of Environment

& Forests, Govt. of India.

34.1.4 Implementation of EMPs approved

by MOEF

The projects having EMPs approved

by MOEF are implemented and the

reports on compliance of MOEF

stipulations as given in the respective

Environmental Clearances (ECs) are

submitted every six months to IA

Division, MOEF, New – Delhi and

Regional Office, Western Region,

Bhopal.

34.2 Afforestation

Five year Plantation Contract finalized

and awarded to State Forest

Corporations namely Forest

Development Corporation of

Maharashtra (FDCM) and Madhya

Pradesh Rajya Van Vikas

Nigam(MPRVVN) for planting 12.40

lakhs saplings from 2009–10 to 2013–

14 covering about 500 ha of land. In

the Year 2012-13, a total of 1,60,625

numbers of tree saplings have been

planted in the mining and adjoining

areas through these agencies.

34.3 Other Environmental Mitigation

Measures completed in 2012-13

Land Reclamation monitoring through

Remote Sensing Technique –

Following10 major OCPs producing

more than 5 million cubic meter (Coal

+ OB) have been completed during

2012-13 and are being monitored by

CMPDIL every year.

- Sasti OC

- Durgapur OC

- Padmapur OC

- Niljai OC

- Mugoli OC

- New – Majri OC

- Umrer OC

- Ukni OC

- Pimpalgaon OC

- Ghughus OC

34.4 Environmental Awareness

Environment Week (June 1 – 7, 2012) and

World Environment Day on 5th June, 2012

were observed in your Company at HQ,

Area Levels and Project Levels.

The activities undertaken during the

week–long celebration were as follows :-

i) Pledge on Environment Protection as

per UN-theme “ GREEN ECONOMY:

Does it include you?” taken by all

employees both at Corporate (HQ) and

at all Areas.

ii) Organizing various competitions

among wards of employees viz.

Drawing, Slogan, Prasna Manch (Quiz

on Environment) etc.

iii) Organising talk on Environment by

Outside Experts

56


iv)Plantation & distribution of plants

v) Awareness on environment

34.5 Award

WCL has received the Golden Peacock

(Special Commendation) Award in 2012.

35. ACTIVITIES OF VIGILANCE DIVISION

DURING 2012-13

35.1 Preventive Vigilance :

In order to increase transparency in

dealing with Public matters, online

complaint handling system has been

introduced in the last financial year. Now

complaint can be made online from any

place and the complaint is also being

processed online. It has three users

interfaces where a complaint and top most

official of the company can directly look

into the compaint. The complaint is rest

with the dealing officer till he submits

report to CVO. All tenders irrespective to

its value are being uploaded on the

company’s website. Three compendiums

covering all circulars from CVC,

consolidated documentation of CTEO

activities and technical error prone

activities were published last year in 2012

and distributed for the benefit of the

officers dealing with similar tasks. This

year one consolidated compendium

consisting of further Circulars of CVC,

DOPT, CIL and WCL between Sept.,

2011 to October, 2012 have been

compiled and published.29 Surprise

Inspections by the Vigilance department

on its own. 03 CTE type inspection had

been carried out and as its outcome, A

circular has been issued in the initiative

of Vigilance Department to improve upon

the system of loading, unloading,

stacking and shifting of store materials

and suggested improvement in practices

and procedures.

35.2 Punitive Vigilance :

As punitive vigilance 351 investigations

were taken up out of which, 247 have

been disposed of. The vigilance activities

have resulted into a total 55 Regular

Departmental Actions (RDA) excluding

the opening balance of 82 Regular

Departmental Actions. Inquiry Reports

have been submitted in 59 cases

resultng into 07 numbers of major

penalty have been imposed in addition

to forfeiture of a part of Gratuity amount

in one case and 12 other minor penalty

has been imposed. In addition, 10 officers

have been cautioned/warned to remain

careful in future.

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, 12974 numbers

of vigilance clearance to Executives and

Non-executives were issued.

36. DIRECTORS :

36.1 The following persons continued to be

the Directors of your Company during the

year under report :

1. Shri D.C. Garg,


2. Shri A.K. Bhalla, Director

3. Shri R. Mohan Das, Director

4. Dr. Ahindra Chakrabarti, Director

5. Ms. Lalitha Kumar, Director

6. Shri Vinod Somani, Director

7. Shri Arun Balakrishnan, Director

8. Dr. D. Chandrashekharam, Director

9. Shri Om Prakash, Director (Tech.) P&P

10. Shri Sushil Behl, Director (Finance)

11.Shri Rupak Dayal, Director (Personnel)

57


36.2 Shri S.S. Malhi was appointed asDirector (Technical) of your Companyw.e.f. 03/03/2013, during the year underreport.

36.3 Shri B.K. Saxena, Director (Tech.) OPceased to be Director of your Companyw.e.f. 24.06.2012, during the year underreport.

36.4 After 31st March, 2013, Dr. M.R. Anandhas been appointed as Part Time Directorof your Company w.e.f. 03/04/2013.

36.5 After 31st March, 2013, followingpersons ceased to be Directors of yourCompany :

1 Shri A.K. Bhalla - w.e.f. 03/04/2013

2. Dr. Ahindra Chakarbarti - w.e.f. 27/04/2013

37. Corporate Governance in WCL :

37.1 Company’s Philosophy :

37.1.1 Corporate Governance is acommitment backed by transparency infunctioning, value and mutual trustamong all the constituents of an

organization. It is a self-imposeddiscipline which guides themanagement and employees tofunction towards the goal of theorganization. It involves essentially acreative, generative and positive

thinking activity that adds value to thestakeholders.

37.1.2 In your Company, CorporateGovernance philosophy stems fromour belienf that Corporate Governance

is a key element in improvingefficiency and growth as well asenhancing outsiders confidence. Weare making continuous efforts to adoptthe best practice in CorporateGovernance and we believe that the

practice we are putting into place forthe company shall go beyond

adherence to regulatory framework.

37.2 Board of Directors :

37.2.1 Size of the Board :

In terms of Articles of Association of

the Company, strength of our Board

shall not be less than three 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 :

As on 31st March, 2013, the Board

comprised of twelve Directors, out of

which five are whole time Functional

Directors including the Chairman-

cum-Managing Director. Two

Directors are nominees of the

Government of India. The Board also

has five Independent Directors who

have been appointed by the Govt. of

India through a Search Committee

constituted for the purpose. In

addition to this, Government has

nominated two representatives each

from 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 :

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.

8 (eight) Board meetings were held

during the financial year 2012-13 on

1 9 . 0 5 . 2 0 1 2 , 2 7 . 0 7 . 2 0 1 2 ,

2 5 . 0 8 . 2 0 1 2 , 1 1 . 1 0 . 2 0 1 2 ,

31.10.2012, 05.12.2012, 28.01.2013

and 20.03.2013 respectively. Details

58


of number of Board meetings

attended by Directors are tabulated

below:-

37.4 Information placed before the

Board of Directors :

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 theguidelines of Corporate Governance.

37.5.1.1Scope of Audit Committee :

a) Ensure compliance of internal control

system.

b) Reviewing the financial statementswith the management beforesubmission to the Board for approval.

c) Reviewing the adequacy of internalaudit function.

d) Discussions with internal auditors anysignificant findings and follow upthereon.

e) Discussions with Statutory Auditors.

37.5.1.2Constitution :

The Audit Committee has been

constituted with the membership of -

i) Five Independent Directors, one beingthe Chairman of the Audit Committeeand

ii) Director (P&IR), Coal India Limited,nominated on the Board of WCL.

iii) Director (Technical) OP

Sl. Directors Meetings No. of Number of

No. held during Board Committeerespective Meetings membership

tenure of attended in theCompany Directors in 2012-13

As As

Chairman Member

Functional Directors :

1. Shri D.C. Garg, 8 8 - -

Chairman-cum-Mg. Director

2. Shri B.K. Saxena, 1 1 - -

Director (Tech.) Operations

3. Shri Om Prakash, 8 8 1 5

Director (Tech.)

Planning & Projects

4. Shri Sushil Behl, 8 8 - 2

Director (Finance)

5 Shri Rupak Dayal, 8 8 2 1

Director (Personnel)

6. Shri S.S. Malhi, 1 1 1 1

Director (Tech.) Planning & Projects

Government Directors :

7. Shri A.K. Bhalla, 8 6 - -

Jt. Secretary, Ministry of Coal.

8. Shri R. Mohan Das, 8 6 - 1

Director (P&IR), Coal India Limited.

Independent Directors :

9. Dr. Ahindra Chakrabarti, 8 7 - 2

Professor, IMI, N. Delhi.

10. Ms. Lalitha Kumar, 8 7 - 1

Former IAS Officer

11. Shri Vinod Somani, 8 5 1 -

Chartered Accountant.

12. Shri Arun Balakrishnan, 8 7 1 1

Former CMD, HPCL.

13. Dr. D. Chandrasekharam, 8 6 1 1

Professor, IIT, Mumbai.

59


37.5.1.3 Composition :

During the year, Audit Committee of the

Company comprised of seven Directors,

five of which were Independent

Directors, one Govt. Director and one

Functional Director.

During the year, the Audit Committee

comprised the following :-

Shri Vinod Somani

Non-official Director - Chairman

Shri R. Mohan Das

Govt. Director - Member

Dr. Ahindra Chakrabarti

Non-official Director - Member

Ms. Lalitha Kumar,


Shri Arun .Balakrishnan


Dr. D. Chandrasekharam


Shri B.K. Saxena

Director (Technical) OP

(upto 24.06.2012) - Member

Shri Om Prapash

Director (Technical)

OP(w.e.f. 28.06.2012) - Member

Director (Finance) also attended the

meetings of the Audit Committee as

invitee.

37.5.1.4 Meeting and Attendance :

During the year 2012-13 only 7 (seven)

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, 1956 for attending the

Board Meetings as well as Committee

Meetings. Details of remuneration of

Functional Directors of the Company

are as under :-

* Includes PF and Medical reimbursement.

37.6.2 Details of payment made towards sitting

fees to Non-official Directors during the

year 2012-13 are given below :-

Member of Audit Meetings heldCommittee during his/her tenureMeetings attended

Shri Vinod Somani 7 4

Shri R. Mohan Das 7 3

Dr. Ahindra Chakrabarti 7 7

MS. Lalitha Kumar 7 4

Shri Arun Balakrishnan 7 5

Dr. D. Chandrasekharam 7 4

Dr. B. K. Saxena 1 1

Shri Om Praskash 6 6

Name Designation 2012-13 Total

Salary Perquisites*

Shri D.C. Garg CMD 2418665 278243 2696908

Shri B.K. Saxena Director (Tech) 430779 45045 475824

Shri Om Prakash Director (Tech) 2017515 219642 2237157

Shri Sushil Behl Director (Fin) 2080519 259848 2340367

Shri Rupak Dayal Director (Pers) 1754253 178613 1932866

T o t a l 8 7 0 1 7 3 1 9 8 1 3 9 1 9683122

(Figs. in Rs.)

Sl.

No.

Total

amount

Name of theIndependent

Directors

Sitting Fees paid for

attending

Committee

Meeting

Board

Meeting

1. Dr. Ahindra Chakrabarti 105000 105000 210000

2. Ms. Lalitha Kumar 105000 60000 165000

3. Shri Vinod Somani 75000 60000 135000

4. Shri Arun Balakrishnan 105000 90000 195000

5. Dr. D. Chandrasekharam 90000 60000 150000

TOTAL 4 8 0 0 0 0 3 7 5 0 0 0 8 5 5 0 0 0

60


37.7 General Body Meetings / Annual

General Meetings :

Date, time and locations where the last

three Annual General Meetings were

held are as under:-

37.8 Disclosure :

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, 1956.

37.9 Audit Qualifications :

It is always the Company’s endeavour to

present unqualified financial statement.

Management reply to the Statutory

Auditors’ observations on the Accounts

of the Company for the year ended March,

2013 are furnished as an Annexure to

the Directors’ Report. Comments of the

Comptroller and Auditor General of India

under Sec. 619(4) of the Companies Act,

1956 on the Accounts of Western

Coalfields Limited for the year ended 31st

March, 2013 is also enclosed.

37.10Whistle Blower Policy :

Your 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 identity of the

complainants.

38. 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

224(8) of the Companies Act, 1956, the

Board of Directors in its 241st meeting

held on 11th October 2012, fixed the

remuneration of Statutory and Branch

Auditors appointed by the Comptroller

and Auditor General of India, under

section 619(2) of the Companies Act,

1956 for the financial year 2012-13. The

annual audit fees approved, has

subsequently revised by Board through

Circular Resolution no.CR-1/2013-14.

In addition to annual audit, the auditors

are appointed for carrying out review of

1st Quarter Accounts ended on 30th June

2012, 2nd Quarter Accounts ended on

30.09.2012 & 3rd Quarter Accounts

ended on 31.12.2012 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

Date : May 27, 2011 May 25, 2012 May 27, 2013

Time : 01.00 P.M. 01.00 P.M. 10.00 A.M.Venue : Coal Estate, Coal Estate, Coal Estate,

Civil Lines, Civil Lines, Civil Lines,Nagpur. Nagpur. Nagpur

SpecialResolut- -

ions :

61


Quarter Review and 3rd Quarter Review

are as under :-

39. MEMORANDUM OF UNDERSTANDING

BETWEEN WCL & CIL FOR THE

YEAR 2012-13 :

As per the extant guidelines of DPE,

Memorandum of Understanding (MoU)

between WCL & CIL for the year 2012-13

was signed on 31st March 2012.

Performance of MoU 2012-13 (both

financial & Non-financial parameters)

during the year has been verified and duly

authenticated by the independent auditor

appointed for the purpose. Parameter-

wise performance vis-à-vis MoU target

is enclosed as Performance Evaluation

Report (Annexure III)

40. FIXED DEPOSITS :

Your Company has not accepted any

fixed deposits from public during the year

2012-13, as defined under section 58-A

of the Companies Act, 1956 and the rules

made thereunder.

41. DIRECTORS’ RESPONSIBILITY

STATEMENT :

Pursuant to the requirement under

section 217(2AA) of the Companies Act,

1956, with respect to Directors’

Responsibility Statement, it is hereby

confirmed :

i) That in the preparation of the Annual

Accounts for the financial year ended

31st March, 2013; the applicable

Accounting Standards have been

followed along with proper

explanations relating to material

departures;

ii) 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

Statutory/BranchAudi to rs

StatutoryAuditors:M/s

C.R.Sagdeo &Co.Chartered

Accountants,Nagpur.

M/s Jodh Joshi &Co.,Chartered

Accountants,Nagpur.

Audit Fee

At actuals , subjectto maximum of

actual fare plus DAfor Partners /

qualified assistants@ Rs.140/- per day

and for auditassistants @

Rs.120/- per day forthe actual man days

engaged for audit ofAreas/ off ices

situated outsideNagpur city.

1

2

Rs.1,05,156/- for 1 st

Quarter Review plus

applicable taxes

Rs.5,25,780/- for AnnualAudit,plus applicable taxes

Rs.1,05,156/-for 2 nd

quarter Review plus

applicable taxesRs.1,05,156/- for 3rd

quarter Review plusapplicable taxes

TA/DA and out-of-pocket expenses

Branch Auditors :M/s Jodh Joshi & Co.,

Chartered Accountants,Nagpur.

Chandak KhanzodeShenwaiChartered

Accountants,Nagpur.

M/S B Chhawchharia

& Co.Chartered Accountants

Nagpur.

M/S. A . S . Dani & Co.,Chartered Accountants,

Nagpur.

M/S KPRK &AssociatesChartered

AccountantsNagpur

Total

Rs.56,250/- for 1 st

Quarter Review plusapplicable taxes

Rs.43,750/- for 1st Quarter

Review plus applicable taxes

Rs.2,18,750/- for AnnualAudit,plus applicable taxes

Rs.43,750/-for 2nd QuarterReview plus applicable taxes

Rs.43,750/-for 3rd QuarterReview plus applicable taxes

Rs.2,81,250/- for Annual

Audit, plus applicabletaxesRs.56,250/- for 1st

Quarter Review plusapplicable taxesRs.56,250/-

for 2nd Quarter Review plusapplicable taxesRs.56,250/-

for 3rd Quarter Review plusapplicable taxes

Rs.2,81,250/- for Annual

Audit,plus applicable taxesRs.56,250/-for 2nd Quarter

Review plus applicable taxesRs.56,250/-for 3rd Quarter

Review plus applicable taxes

Rs. 13,07,030/- for AnnualAudit plus applicableTaxes

Rs.2,61,406/-for 1st QuarterReview plus applicableTaxes

Rs.2,61,406/- for 2nd QuarterReview plus applicableTaxes

Rs.2,61,406/- for 3rd QuarterReview plus applicable taxes.

- do -

- do -

- do -

B

Actual TA/DA, limited

to total Rs.1,50,000/-for Annual Audit.

Actual TA/DA limitedto total Rs.50,000/-

for 1st QuarterReview.

Actual TA/DA,limited

to total Rs.75,000/-for 2nd Quarter

Review.

Actual TA/DA,limited

to total Rs.75,000/-for 3rd Quarter

Review.

62


year and of the profit or loss of the

Company for the year under review;

iii) 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, 1956 for safeguarding

the assets of the Company and for

preventing and detecting fraud and

other irregularities;

iv) That the Directors have prepared the

accounts for the financial year ended

31st March, 2013 on a ‘Going

Concern’ basis.

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.

42. ACKNOWLEDGEMENTS :

42.1 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.

42.2 The Directors thank various Ministries of

the Central Government and the State

Governments of Maharashtra and

Madhya Pradesh for their valuable

support.

42.3 The Directors also take this opportunity

to acknowledge with thanks the

assistance rendered by the sister

organisations and Directorate General of

Mines Safety.

42.4 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.

42.5 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.

42.6 The Directors also extend their thanks

to various important citizens of Nagpur,

Maharashtra and Madhya Pradesh

States, stationed in the Coalfields for

their co-operation from time to time and

also to the Steering Committee of WCL

comprising of Trade Union

representatives and Management.

43. ADDENDA :

43.1 The following papers are annexed :

43.2 In pursuance to the provisions of section

217(1)(e) of the Companies Act, 1956,

read with Companies (Disclosure of

Particulars in the Report of Board of

Directors) Rules, 1988, information in

regard to the Conservation of Energy,

Technology Absorption and Foreign

Exchange Earning & Outgo is given in

Annexure-I to this report.

43.3 A statement showing names and other

particulars of those employees of the

Company who were in receipt of

remuneration of not less than

Rs.60,00,000/- during the financial year

2012-13 or Rs.5,00,000/- per month in

compliance of the provisions of section

217 (2-A) of the Companies Act, 1956

and Companies (Par ticulars of

Employees) Rules, 1975 is furnished in

Annexure-II to this report.

63


43.4 Corpoate Governance Certificate, in

compliance of conditions of Corporate

Governance, from Practising Company

Secretary.

43.5 Addendum to the Directors’ Report under

section 217 (3) of the Companies Act,

1956.

For and on behalf of Board of Directors

( D.C. Garg )

CHAIRMAN-CUM-MANAGING DIRECTOR

NAGPUR

DATED : 27th May, 2013

43.6 Comments of the Comptroller & Auditor

General (C&AG) of India under section

619 (4) of the Companies Act, 1956.

64


ANNEXURE - I

A. Conservation of Energy :

There was 0.2% increase of Energy Consumption in 2012-13 due to 13.2% more rain

fall against previous year.

(a) However several measures were taken for Energy Conservation, which are given

as under :-

1. ADDITION OF CAPACITORS TO IMPROVE AND MAINTAIN THE POWER

FACTOR ABOVE 0.95.

2. STAGGERING OF PUMPING OPERATIONS.

3. ELIMINATION OF STAGE PUMPING / RE-ORGANISATION OF PUMPING.

4. USE OF ENERGY EFFICIENT TUBES/ CFL IN PLACE OF HIGH WATT

LUMINAIRES/ CONVENTIONAL FITTINGS.

5. USE OF TIMERS IN STREET LIGHT CIRCUITS.

6. INSTALLATION OF UG BUNKER.

7. REPLACEMENT OF OVER RATED MOTOR.

8. LOAD SHEDDING ON DOMESTIC FEEDERS.

9. REDUCTION IN IDLE RUNNING OF CHP.

10. REORGANISATION OF LT OH LINE BY CABLE AND SMALLER SIZE

DISTRIBUTION TRANSFORMERS.

11. OLD COLONIES OF WCL IN PENCH AREA WERE HANDED OVER TO

MPPKVVCL TO AVOIDELECTRICITY PILFERAGE.

(b) Additional investments and proposals if any being implemented for reduction of

consumption of energy for electrical energy :

An amount of Rs 21.12 lakhs was invested towards the purchase of capacitors for

improving and maintaining power factor.

However, Specific Energy Consumption per cubic metre of composite production

has increased by 6.86% due to reason mentioned above and in spite of action taken

at (a) & (b), which is reflected as under :-

65


Particulars

Consumption of energy

per ton of coal production

KWH/TON

KWH/CUM

(Coal+O.B)

2012-13

14.52

4.36

2011-12 % increase/

decrease

14.22 2.11

(Increase)

4.08 6.86

(Increase)

Impact on cost of production

Power cost per ton increased from

Rs 92.25 to Rs 107.75 mainly due

to upward revision in tariff by power

supply agencies of M.P. And

Maharashtra and increased

pumping due to more rain fall

compared to previous year. Av. Rain

fall in 2011-12 – 1826.60 mm and

2012-13 – 2067.60 mm.

B. Form 'B' is enclosed.

C. Foreign Exchange Earning & Outgo :

(i) Activities relating to exports , initiatives taken to increase exports , development of

new export markets for products and services and export plans :

Company is not engaged in export activities .

(ii) Total Foreign Exchange used and earned :

Particulars Current year

Previous year

(A) Foreign Exchange earned 0.00 0.00

(B) Foreign Exchange used :

i) C.I.F Value of Imports

a) Raw materials 0.00 0.00

b) Components , Stores & Spare Parts 3.00 7.14

c) Capital Goods 0.00 0.00

ii) Repayment of JBIC Loan 9.62 9.03

iii) Repayment of IBRD Loan 7.09 5.88

iv) Effect of Exchange fluctuation -0.34 14.32 v) Travelling Expenses 0.07 0.04

vi) Interest/Commitment/Agency charges etc. of IBRD/JEXIM (including swap cost)

2.87 3.20

66


Form ‘B’

Disclosure of Particulars with respect to Technology Absorption

A. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

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. MINING TECHNOLOGY

1. CONTINUOUS MINER TECHNOLOGY

Continuous Miner technology is under operation at Tandsi UG mines of WCL.

After introduction of Continuous Miner Technology at Tandsi Mine on risk and gain

sharing basis & Kumbherkhani on partial hiring basis, it is envisaged that said technology

shall be introduced with minimum guaranteed production on partial hiring basis (paid

on Rs/ tonne), in the following Mines:-

Saoner-I u/g Expansion Mine (Operating Mine)

Tawa-II u/g (Operating Mine)

Jamunia

Dhankasa

In view of above, in 1st phase Tawa-II Expn. and Saoner-I shall be taken up and

subsequently in 2nd phase, the future projects viz, Jamunia u/g and Dhankasa u/g shall

be taken up for introduction of continuous cutting technology after development of

infrastructure, etc.

2. LONGWALL MINING/ MASS PRODUCTION TECHNOLOGY

Your company plans to introduce mass production technology by development,

construction and operation on turn-key basis (MDO concept) through Global tender

with the aim of improving production and productivity for operation in u/g mines.

In this context, two underground blocks namely Murpar and Borda Blocks were identified

for development, construction and operation on turn-key basis (MDO concept) having

capacity as 2 MTY, in the command Area of WCL.

3. UNIVERSAL DRILLING MACHINES

Your Company has played a leading role in mechanizing face drilling as well as drilling

for roof support. In this regard, 31 Nos. UDMs have been put in operation.

67


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

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

zone support with added Safety.

4. APPLICATION OF MAN RIDING SYSTEM IN UG MINES

During 2012-13, Chairlift Man riding system has been successfully installed and

commissioned in Tawa mine.

In all 5 UG mines, where in the workings are deep and far from the surface have been

provided with Man Riding System in WCL.The system reduces traveling time and fatigue

of workers to work with increased efficiency & renewed vigor.

Further, the consignment for Man riding System has been received and is under

installation in following UG mines:

1. Kumbherkhani - Rail Car Man riding system.

2. Chattarpur- I - Chairlift Man riding system

3. Sobhapur - Rail Car Man riding system

Introduction of Man-riding system in Saoner-II has been approved by WCL Board.

5. NON-COKING COAL WASHERY

One 5 Mty capacity Non-Coking Coal washery was being planned to be set up in WCL

in Wardha Valley Coalfields.

A feasibility study has been conducted in all the areas under command area of WCL,

wherein all other tentative sites were eliminated due to lack of sustainable supply of

raw coal feed throughout the life of the proposed washery. Nakoda site was identified

as best probable site with linked mine as Mungoli O/C (reserve as on 01. 04.12 as

12.93MT), Kolgaon O/C (reserve as on 01.04.12 as 3.323MT) & approved Penganga

OC (Reserve as 44.06MT), however CMPDIL (HQ) have communicated that alternate

site may be looked into as the proposed site lies below HFL of the area.

·

In view of above, a committee has been constituted to re-visit and site finalization which

is under process.

77


78


79


80


ADDENDUM TO DIRECTORS’ REPORT

UNDER SECTION 217(3) AND 227(2) OF THE COMPANIES ACT 1956

AUDIT OBSERVATION

No Comments

No Comments

No Comments

MANAGEMENT REPLY

We have audited the accompanying financial statements ofWESTERN COALFIELDS LIMITED, which compromise the BalanceSheet as at 31st March, 2013, the Statement of Profit and Loss,Cash Flow Statement for the year ended on that date annexed theretoand a summary of significant accounting policies and otherexplanatory information. The financial statements audited by usincorporate the accounts of:-

a) 5 Areas / Units audited by us andb) 11 Areas / Units audited by Branch Auditors

The reports of Branch Auditors have been furnished to us and havebeen appropriately dealt with by us in preparing this report.

Management’s Responsibility for the Financial Statement

Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position,financial performance and cash flows of the Company in accordancewith the Accounting Standards referred to in sub-section (3C) ofsection 211 of the Companies Act, 1956. This responsibility includesthe design, implementation and maintenance of internal controlrelevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from materialmisstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financialstatements based on our audit. We conducted our audit inaccordance with the Standards on Auditing issued by the Instituteof Chartered Accountants of India. Those Standards require thatwe comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the financialstatements are free from material misstatement.An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditor’s judgment, includingthe assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to theCompany’s preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriatein the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonablenessof the accounting estimates made by management, as well asevaluating the overall presentation of the financial statements.

81


We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion.

Report on Other Legal and Regulatory Requirements·

As required by the Companies (Auditor’s Report) Order, 2003issued by the Central Government of India in terms of sub-section(4A) of section 227 of the Act, we give in the Annexure “A” a statementon the matters specified in paragraphs 4 and5 of the said Order. ·

As required by section 227(3) of the Act and subject to ourcomments in Annexure “B”, we report that:

ii) We have obtained all the information and explanations whichto the best of our knowledge and belief were necessary forthe purpose of our audit.

iii) In our opinion, proper books of account as required by lawhave been kept by the Company so far as appears from ourexamination of those books.

iv) The Balance Sheet and Statement of Profit and Loss andCash Flow Statement dealt with by this report are inagreement with the books of account.

v) In our opinion, the Balance Sheet and Statement of Profitand Loss comply with the Accounting Standards referred toin sub-section 3C of Section 211 of the Companies Act,1956 subject to the following:

1 Accrual basis of accounting as required by provisions

of section 209(3) (b) of Companies Act, 1956 has not

been followed in respect of :

v Liquidated damages, interest on delayed payments and

escalation claims from customers are accounted for on

the basis of final settlement.

v Insurance / Railway claims are accounted for on

admission / final settlement. v Sale of scrap is

accounted on realisation.

v 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 are treated

as advance / claims receivables.

No comments

No comments

No Comments

No Comments

Disclosure is given inadditional Notes onAccounts, pointno.8.a.As per

82


v Land under Coal Bearing Area [CBA (A&D)] Act is

accounted for on payment basis.

(ii) As per the policy of the Company only such individual prior-period items which exceed Rs. 10 lacs each are accountedas Prior-period items and rest of the items are taken ascurrent year’s expenditure/income. Such policy is contraryto AS-5 which requires a separate disclosure of all prior-period items irrespective of their value. For financial year2012-13 prior period items amounting to ` 0.02 croreshave been treated as current year’s expenses due to whichProfit for the year is understated to the tune of ̀ . 0.02 crores.

(iii) As stated in footnote no. (a), (b) and (c) to Note No. 10A,finalization of purchase consideration of certain fixed assetsis still pending, ‘Assets taken over on Nationalization’ arenot classified into proper sub-head within fixed assets.These have impact on reported figures of Gross Block ofFixed Assets, Accumulated Depreciation and Reserves &Surplus and also on the presentation of fixed assets. Theimpact however is not ascertainable.

(iv) As stated in Note No. 3 (a) of Notes - 34 ‘Additional Noteson Accounts,’ certain Lands acquired are accounted for onpayment basis only. The likely payment for the Lands infuture, if any, are not accounted for until paid (even thoughthe liability is accrued). This may result in understatementof Fixed Assets and corresponding liability.

vi) Clause (g) of sub-section 1 of section 274 of the CompaniesAct, 1956 is not applicable to the Company being aGovernment Company.

vii) Since the Central Government has not issued anynotification as to the rate at which the cess is to be paidunder section 441A of the Companies Act, 1956 nor has itissued any Rules under the said section, prescribing themanner in which such cess is to be paid, no cess is dueand payable by the Company.

Accounting Policy.

No Comments

Land is accounted onpayment andpossession.

No Comments

No Comments

83


FOR JODH JOSHI AND CO.

CHARTERED ACCOUNTANTS

FRN : 104317W

CA. M. Y. SHASTRI

(PARTNER)

Membership No. 039763

Place : NAGPURDate : 20st May 2011

Opinion

In our opinion and to the best of our information andaccording to the explanations given to us, the financialstatements, read together with Additional Notes to Accountsand Accounting Policies give the information required by theAct in the manner so required and give a true and fair view inconformity with the accounting principles generally acceptedin India:·

v in the case of the Balance Sheet, of the state of affairs ofthe Company as at March 31, 2013;·

v in the case of the Statement of Profit and Loss, of theProfit for the year ended on that date; and·

v in case of Cash Flow Statement, of the cash flows of thecompany for the year ended on that date.

No Comments

84


ANNEXURE ‘A’ TO AUDITORS’ REPORT

Referred to in Paragraph (3) of our report of even date in respect ofWestern Coalfield Limited , Nagpur

as on 31st March 2013.

AUDIT OBSERVATION MANAGEMENT

REPLY

i) In respect of its Fixed Assets :

[a] The Company has maintained proper records showingfull particulars including quantitative details and situationof Fixed Assets, except for assets taken over from Coal MinesAuthority on Nationalisation and those taken from CoalMines Rescue Station and Coal Mines Labour WelfareOrganisation, which have not been recorded. Some of thetitle deeds / lease deeds for land building and moving rightscontinue to be held in name of Coal India Limited.

[b] As explained to us, all the assets as on 31.03.2003, havebeen physically verified by firms of Chartered Accountant /Outside Agencies for all areas except Head Quarters,Domestic Fuel Development (DFD) Plant and CommercialBlast Explosives (CBE) Plant. Their reports have beenreceived, showing items of fixed assets found short / excessduring physical verification. The management has appointedan outside agency to carry out detailed study andreconciliation of the discrepancies pointed out. At some ofthe area, report is submitted by outside agency onreconciliation of shortages / excesses of assets and thesame still shows many un-reconciled items. However,pending final reconciliation of items of fixed assets foundshort / excess and pending HQ approval, no adjustmenthas been made in the accounts of the Company for theyear 2012 – 13.

The discarded / surveyed off assets lyingin stores which are valued at 5% residual value and capitalWork in Progress (WIP) have not been physically verified.

In respect of CBE Plant Bhandara, major items of fixed assetsare stated to have been physically verified by themanagement of Ordinance Factory, Bhandara at reasonableintervals. No material discrepancy is reported to have beennoticed on such verification.

In respect of DFD Plant, Hinganghat, no physical verificationof assets has been conducted during the year.

No Comments

Reconciliation is underprogress .

Noted

No Comments

No Comments

85


As per information and explanation given to us, all fixedassetsof the value exceeding Rs. One lakh are physicallyverified departmentally at Area level during the year.Wherever the reports have been received the reconciliationis in progress and no adjustment has been made in accountsof the Company.

[c] There was no substantial disposal of fixed assets during theyear.

ii) In respect of Inventory:

[a] The management, at regular intervals, has conducted thephysical verification of coal by adopting volumetricmeasures. The physical verification of stock of coal as on31.03.2013 has been done by a team deputed by Coal IndiaLimited. Physical verification of stores and spares of theCompany has been conducted by the firm of CharteredAccountants and / or Cost Accountants appointed for thepurpose.

Physical verification of Units stores and stores intransit has not been conducted.

[b] In our opinion and according to the information andexplanation given to us, the procedures followed by themanagement for physical verification of stock are reasonableand adequate in relation to the size of the company andnature of its business. However, procedures of physicalverification of stores and spares, needs to be strengthened,especially the procedure for identification of slow / nonmoving and obsolete items of inventory requiresimprovement.

[c] The company is maintaining proper records of inventory. Inaccordance with Company’s policy as set out in Para 6 ofAccounting Policies (Note 33), no adjustment is made inthe books of accounts in case the difference between booksstock of coal and volumetrically measured physical stock ofcoal is within (+/-) 5%, due to approximate nature of themethod of measurement.

In case of Shivpuri Mines, since the difference betweenmeasured stock and book stock is beyond +/- 5%, theCompany has taken measured stock for the purpose ofvaluation of coal.

Reconciliation is underprocess.

No comments

NoComments

Inventory at unit storeshave been physicallyverified by management

Every year end,physical verification ofstores and spares arecarried out by OutsideAgency.

No Comments

86


In the case of other inventories, discrepancies noticed onphysical verification as compared to the book records werenot material in relation to the operation of the company andhave been duly dealt with.

iii) [a] The company has not granted any loans to companies, firmsor other parties listed in the Register maintained undersection 301 of the Companies Act, 1956.

[b] There is no overdue amount in respect of principal amountof loans and interest thereon.

[c] The company had taken unsecured loans in foreign currencystanding to ‘43.18 Crores and ‘ 41.74 crores as on 31.03.2013from IBRD and JBIC respectively, through Coal India Ltd.and guaranteed by the Government of India, for purchase ofHEMMs & spares. It is observed that the above balance ofLoan outstanding as on March 31st 2013 is after an adjustmentof ‘ 0.35 Crores (Credit) net for giving effect of exchangefluctuation in both US $ and Japanese Yen.

[d] The rate of interest and other terms and conditions of theabove loans taken by the company are prima facie notprejudicial to the interest of the company.

[e] The company is regular in repayment of principal amount ofabove loans and interest thereon.

11. In our opinion the Company has adequate Internal Controlprocedure commensurate with the size of the Company andthe nature of its business with regard to Purchase of inventory,fixed assets and with regard to the Sale of goods, except thatinsurance cover of most of the fixed assets, excluding motorcars and on stock of stores and spares has not been taken bythe company. Further, in under-mentioned cases, the internalcontrol needs to be strengthened:

a) Follow-up of old advances to suppliers, adjustment of certainadvances against corresponding liability after receipts ofitems in few areas, transfer of stores to other areas and itsaccountal.

No Comments

No comments

No Comments

No Comments

No Comments

No Comments

Monthly follow up ofadvances are doneregularly and advanceshas been reduced to aminimum possible level.However very small oldadvances are pendingadjustments for whichnecessary provisionsexists.

87


b) Non receipt of confirmations of outstanding balances fromcustomers, suppliers and contractors and timelyreconciliation of balances in case of difference.

c) Follow-up and adjustment of stale cheques.

v) In respect of transaction covered under section 301 of the

Companies Act, 1956.

a) In our opinion and according to the information and explanationgiven to us, there are no transactions in pursuance ofcontract or arrangements entered in the register maintainedunder section 301 of the Companies Act, 1956 aggregatingduring the financial year to ‘ 5 lakhs (‘ Five Lakhs only) ormore in respect of any party.

b) As there is no transaction with parties mentioned in registermaintained under section 301 of the Companies Act, 1956,this clause is not applicable to the Company.

vi) The company has not accepted any deposits from the Public,hence the directives issued by Reserve Bank of India and theprovision of Section 58 A, 58AA or any other relevant provisionof the Companies Act, 1956 and rules made there under arenot applicable for the year under audit.

vii) The Internal Audit System of the Company consists of StoresAudit and Internal Audit (including Wage Audit) which wereconducted by the independent firms of Chartered Accountants /Cost Accountants. Observations in this regard are as under.

a) In few areas the branch auditors have reported that InternalAudit System needs to be strengthened as to coverage andfollow up.

b) Further the Internal Audit Report of Chandrapur Area for themonth of March 2013 has not been received till the date ofour audit.On an overall view, we are of the opinion that theinternal audit system should be further strengthened by thecompany as to coverage and follow-up to make itcommensurate with the size and nature of its business.

Regularly periodicalreconciliation is beingdone with major powerhouses (customers).Obtaining confirmationfrom Creditors havebeen taken up.

Noted for furthernecessary action .

No Comments

No Comments

No Comments

Adequate internal auditsystem exist.

No Comments.

88


viii)Maintenance of Cost records has been made mandatory by theCentral Government under clause (d) of sub-section (1) of section209 of the Companies Act, 1956 in respect of Coal MiningIndustry vide Notification No. GSR/429E dated 03.06.2011. Asper information and explanation provided to us, the requiredaccounts and records are being maintained at respective Areaoffices.

ix) In respect of Statutory Dues.

(a) According to the records of the Company produced beforeus, the Company is generally regular in depositing undisputedstatutory dues including Provident Fund, Income Tax, WealthTax, Sales Tax, Custom Duty, Excise Duty, Cess and otherstatutory dues applicable to the Company with appropriateauthorities. There are no undisputed statutory dues pendingfor a period of more than six months from the date ofbecoming payable.

(b) We enclose in Annexure “I”, the details of disputed statutorydues such as taxes / Cess not deposited due to dispute andthe forum where the dispute is pending.

x) The Company neither has accumulated losses and nor it hasincurred any cash losses during the financial year covered byour audit or in the immediately preceding financial year.

xi) To the best of our knowledge and explanation given to us, theCompany has not defaulted in repayment of dues to financialinstitutions or banks.

xii) To the best of our knowledge and explanation given to us, theCompany has not granted any Loans and Advances on the basisof security by way of pledge of shares, debentures and othersecurities.

xiii) The Company is not a chit fund, nidhi or mutual benefit fund /society. Therefore, the provisions of clause 4 (xiii) of theCompanies (Auditor’s Report) Order, 2003, are not applicable tothe Company.

xiv) The Company is not dealing or trading in shares, debenturesand other investments. However during the year the companyhas invested in mutual funds, which are held in the name of theCompany.

Adequate internal auditsystem exists. Thescope/areas of internalaudit is decided by CIL.

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

89


FOR JOIDH JOSHI AND CO.


F.R.N.: 104317W

CA. M.Y.SHASTRI

PARTNER


Place : NAGPURDate : 23rd May, 2013

xv) As informed to us Company has not given any guarantee forloans taken by others from Banks or Financial Institutions.

xvi) According to the information and explanations given to us, theCompany has not borrowed any term loan during the year.

xvii)On the basis of an overall examination of the Balance Sheet ofthe Company, in our opinion and according to the informationand explanations given to us, there are no funds raised on ashort-term basis which have been used for long-term investment.

xviii)During the year, the Company has not made any preferentialallotment of shares to Parties and Companies covered in theRegister maintained under Section 301 of the Companies Act, 1956.- According to the information and explanation given to us, the

Company has not created securities by issuing any debenturesduring the period under audit.

xx) The Company has not raised any money by public issues duringthe year.

xxi) According to the information and explanations given to us by theCompany, no fraud on or by the Company has been noticed orreported during the course of our audit.

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

90


ANNEXURE B TO STATUTORY AUDIT REPORT

(As referred to in Paragraph 2 of our report of even date)

Without qualifying our opinion, attention is invited in5y6 respect of

following foot notes given in various Note numbers of final accounts

and also Additional Notes (Note No. 34) forming part of final accounts -

i) Note No. 10B foot-note no.(a) regarding amount equivalent to

depreciation provided on Plant & Machinery lying in stores

for more than 3 years, pending capitalization.

ii) Note No. 12 foot note (a) regarding advances to suppliers /

contractors & for capital works / mobilization advances lying

unadjusted since long amounting to Rs.1.58 crores against

which provision of equivalent amount is made.

iii) Note No. 24 foot-note no. (a) regarding provision for Post

Superannuation Medical Benefit for executives amounting to

Rs.56.37 crores made during the year for the period from

January 2007 to March 2013, out of which, Rs. 32.14 crores

pertains to the period from 1st January, 2007 to 31st March,

2012, resulting in understatement of profit for the current year

by Rs. 32.14 crores.

iv) Note No. 24 foot note no. (b) regarding provision made during

the year for Pension and Superannuation Benefits to the

Employees amounting to Rs. 23.03 crores with cumulative

amount of Rs. 104.21 crs. as on 31/3/2013.

v) Note No. 24 foot note no. (c) regarding provision made during

the current year for Performance Linked Reward Scheme for

non-executives amounting to Rs 139.88 crores.

vi) Note No. 24 foot-note no.(d) regarding provision made during

the current year for Performance Related Pay for Executives

for the year amounting to Rs 75.30 crores.

vii) Additional Note No. 3 (c) regarding physical verification of

fixed assets as on 31.03.2003 and subsequent reconciliation

done by an outside agency. However, the inter area

adjustments are still under process.

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

91


viii) Additional Note No. 4 (a) regarding Capital Work in Progress

amounting to Rs 17.52 crores, pending since more than 3years.

ix) Additional Note No. 4 (c) regarding Discarded / Surveyed offassets amounting to Rs. 22.29 crores valued at residual 5%have not been physically verified.

x) Additional Note No. 6(a) regarding Madhya PradeshGraminAvsanrachnaTathaSadakAdhiniyam 2005 (MP GATSVAct, 2005) tax collected from customers and fixed depositsmade against that amount as per Court Order and alsotreatment of interest on such fixed deposits which has beentreated as liability.

xi) Additional Note No. 6(n) regarding deviation in permissible

norms beyond +/- 5% in Shivpuri Mine resulting in reduction

of stock by Rs. 2.81 crores.

xii) Additional Note No. 7 (ix) regarding net provision made duringthe year for mine closure amounting to Rs 77.69 crores.

xiii) Additional Note No. 8 (i& j) regarding non-receipt of confirmations for sundry debtors, sundry creditors, advances fromcustomer and other accounts payable.

xiv) Additional Note No. 10 (b) regarding Excise duty calculatedon Royalty and Stowing Excise Duty(SED) from March, 2011onwards as per directives dated 5/3/2013 received from CoalIndia Limited (CIL). Hence, the opening stock of coal doesnot include Excise Duty on above two items.

xv) The company has shown liability towards stalecheques

amounting to Rs. 12.12 crores. The same should be credited

to respective natural heads.

xvi) Impact on profit due to changes in accounting policy/

estimates–

(a) Additional Note no. 6(l) regarding change in

rate of depreciation on photocopier machine ; resultingimpact is understatement of profit by Rs. 0.07 crores

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

No Comments

Noted

No Comments

No Comments

92


(b) Additional Note No. 6(o) regarding revision of Standard

Ratio in the case of open cast mines and subsequent

calculation of OBR; resulting impact is overstatement of

profit by Rs. 337.31crores;

(c) Additional Note No.9(a) regarding Prior Period Expenses/

income which do not exceed Rs 0.10 crores in each case

and are treated as expenditure/ income of current year;

resulting impact is understatement of profit by Rs.0.02

crores;

(d) Additional Note No.9(b) regarding prepaid expenditure

which do not exceed Rs 0.10 crores in each case and

treated as expenditure of current year; resulting impact

is understatement of profit by Rs 0.95 crores.

No Comments

As per AccountingPolicy

As per AccountingPolicy

FOR JOIDH JOSHI AND CO.


F.R.N.: 104317W

CA. M.Y.SHASTRI

PARTNER


Place : NAGPURDate : 23rd May, 2013

93


Annexure – 1

Statement of Disputed Statutory Dues ( Ref. Para IX B of Annexure ‘ A ’ to our report dated23.05.2013) in respect of Western Coalfields Ltd., Nagpur

Details of disputed liabilities are given below:-

Name Name of Statute Nature of dues Amount (‘) Period to Forum where

of Area which the dispute is

amount pending

relates

PENCH MP Entry Tax Act, 1978 Entry Tax 7,72,782.00 2000-01 H. Court, Jabalpur

MP Entry Tax Act, 1978 Entry Tax 1,31,190.00 2005-06 D.C. Chhindwara

MP Entry Tax Act, 1978 Entry Tax 23,60,968.00 2006-07 Appellate Board,

Bhopal

MP Entry Tax Act, 1978 Entry Tax 1,07,99,314.002008-09 Appellate Board,

Bhopal

Central Sales Tax Act, 1956 Central Sales Tax 5,39,034.00 1998-99 A.C, Jabalpur

Central Sales Tax Act, 1956 Central Sales Tax 4,28,160.00 2004-05 A.C, Jabalpur

Central Sales Tax Act, 1956 Central Sales Tax 7,46,280.00 2005-06 D.C., Chhindwara

Central Sales Tax Act, 1956 Central Sales Tax 26,93,148.00 2006-07 Appellate Board,

Bhopal

Central Sales Tax Act, 1956 Central Sales Tax 8,55,190.00 2008-09 A.C./CTO, Jabalpur

Central Sales Tax Act, 1956 Central Sales Tax 17,30,658.00 2009-10 Addl. Comm., Jabalpur

MP Commercial Tax Act, 1994 Commercial Tax 11,12,764.00 2000-01 H. Court, Jabalpur

MP Commercial Tax Act, 1994 Commercial Tax 23,568.00 2002-03 Appellate Board,

Bhopal

MP Commercial Tax Act, 1994 Commercial Tax 2,02,265.00 2004-05 Addl. Comm. Jabalpur

MP Commercial Tax Act, 1994 Commercial Tax 73,14,591.00 2005-06 D.C. Chhindwara

MP Commercial Tax Act, 1994 Commercial Tax 19,09,474.00 2006-07 Appellate Board,

Bhopal

MP Commercial Tax Act, 1994 Commercial Tax 82,51,105.00 2008-09 Appellate Board,

Bhopal



Minerals (Validation) Act, 1992 Cess on Royalty 58,40,276.00 1982-83 SLP, Supreme Court

BALLARPUR Mineral Concession Rules, Cess on Royalty 6,04,133.23 1991-92 SLP pending with

1960 of Coal Supreme Court

CHANDR- Minerals (Validation) Act, 1992 Cess on Royalty 6,62,667.29 1991-92 SLP pending with

APUR Supreme Court

Minerals (Validation) Act, 1992 MSEB MAD Cess 4,30,449.42 1991-92 SLP pending with

Supreme Court

94


UMRER Minerals (Validation) Act, 1992 Cess on Royalty 28,40,857.54 1991-92 SLP pending with

Supreme Court

Minerals (Validation) Act, 1992 MSEB MAD Cess 2,62,799.08 1991-92 SLP pending with

Supreme Court

MAJRI Minerals (Validation) Act, 1992 MSEB MAD Cess 1,52,127.81 1991-92 SLP pending with

Supreme Court

CENTRAL Tax on Perks u/s 17(2) of Tax on Perquisites 44,88,000.00 2004-05 ITAT , Nagpur

WORKSHO Income Tax Act 1961 to 2006-07

P TADALI

PATHAR- M.P.State Govt. Sales Tax Dept. Central Sales Tax 5,391.00 2000-01 For revision With Dy

KHEDA Comm. Bhopal

M.P.State Govt. Sales Tax Dept. State Sales Tax 13,87,152.00 2000-01 Appellate board ,

Bhopal , MP.

M.P.State Govt. Sales Tax Dept. Entry Tax 1,79,496.00 2001-02 Appeal Dy. Comm.

Bhopal

M.P.State Govt. Sales Tax Dept. State Sales Tax 14,45,793.00 2001-02 Appeal Dy. Comm.

Bhopal


Bhopal

M.P.State Govt. Sales Tax Dept. State Sales Tax 3,94,359.00 2004-05 Appellate Board ,

Bhopal , MP

M.P.State Govt. Sales Tax Dept. Entry Tax 19,02,271.00 2004-05 Appellate Board ,

Bhopal , MP.

M.P.State Govt. Sales Tax Dept. VAT 11,50,704.00 2005-06 Appeal Dy. Comm.

Bhopal

M.P.State Govt. Sales Tax Dept. Entry Tax 87,362.00 2005-06 Appeal Dy. Comm.

Bhopal

M.P.State Govt. Sales Tax Dept. State Sales Tax 35,499.00 1998-99 Appeal Dy. Comm.

Bhopal

M.P.State Govt. Sales Tax Dept. Entry Tax 4,201.00 1998-99 Appeal Dy. Comm.

Bhopal

M.P.State Govt. Sales Tax Dept. State Sales Tax 64,547.00 1986-87 Appeal Dy. Comm.

Bhopal


Bhopal

M.P.State Govt. Sales Tax Dept. State Sales Tax VAT 57,14,516.00 2007-08 Appeal Dy. Comm.

Bhopal


Bhopal

95



Bhopal

M.P.State Govt. Sales Tax Dept. VAT ON MPGATSVA 67,28,795.00 2010-11 M.P. Govt.



Minerals(Validation) Act, 1992 Cess on Storage 21,67,294.52 1991-92 SLP pending with

Coal Supreme Court

KANHAN Minerals (Validation) Act, 1992 Cess on Royalty 38,64,874.00 1982-83 SLP pending with

and Cess on to 1989-90 Hon’ble Supreme

storage of coal Court

MP State Govt. Sales Tax, 2002 VAT 39,03,341.00 2006-07 Commissioner

( Appeals)

MP State Govt. Sales Tax, 2002 VAT 30,30,194.00 2007-08 Commissioner

(Appeals)

MP State Govt. Sales Tax, 2002 VAT 15,13,032.00 2008-09 Dy. Commissioner

MP Entry Tax Act, 1976 Entry Tax 1,67,850.00 2005-06 Dy. Commissioner

MP Entry Tax Act, 1976 Entry Tax 90,949.00 2007-08 Commissioner

( Appeals)

MP Entry Tax Act, 1976 Entry Tax 4,78,753.00 2008-09 Dy. Commissioner

Central Sales Tax Act, 1956 CST 88,10,414,.00 2005-06 Appellate Board

Central Sales Tax Act, 1956 CST 48,15,900.00 2006-07 Dy. Commissioner

Central Sales Tax Act, 1956 CST 48,11,455.00 2007-08 Commissioner

( Appeals)



NANDAN Mineral Validation Act.1992 Cess on Royalty 73,62,824.42 1991-92 SLP pending before

WASHERY supreme Court

SALES Mineral Validation Act.1992 Cess on Royalty 29,11,374.92 1991-92 SLP pending before

ACCOUNTS supreme Court

WANI Land Revenue Surface Rent 3,13,62,000.00 1972-73 District Collector

to 2005-06 Chandrapur.

Land Revenue Enhancement 3,96,36,000.00 2004-05 District Collector

Land Comp. Yavatmal.

Land Revenue NAA. Tax 17,89,91,000.00 1972-73 District Collector

to 2003-04 Yavatmal.

Bombay Sales Tax Act,1959 Entry Tax 59,000.00 March-2004 Sales Tax Tribunal,

on Vehicle Nagpur

96


Mineral Validation Act.1992 Cess on Royalty 5,80,967.93 1991-92 SLP pending before

supreme Court

Mineral Validation Act.1992 MSEB MAD Cess 3,82,553.60 1991-92 SLP pending with

Supreme Court

CESTAT Service Tax 15,59,04,000.00 2007-08 Appellate Tribunal,

to 2011-12 Mumbai

NAGPUR Income Tax Act,1961 TDS on payment 13,08,000.00 2008-09 ITAT , Nagpur

to Doctors /

Hospitals

Income Tax Act,1961 TDS on payment 24,82,000.00 2009-10 ITAT , Nagpur

to Doctors /

Hospitals

BST Act Sales Tax 93,09,000.00 1994-95 S T Tribunal , Mumbai

BST Act Sales Tax 1,17,41,000.00 1993-94 S T Tribunal , Mumbai

CST Act. Sales Tax 2,48,000.00 1997-98 S T Tribunal , Mumbai



Maharashtra Land Non Agricultural 1,12,89,000.00 2009 High Court , Nagpur

Revenue Code Tax

Rent Act Surface Rent 1,81,000.00 2001 District Court ,Nagpur

Rent Act Surface Rent 8,91,00,000.00 2005 High Court , Nagpur

Mineral Validation Act, 1992 Cess on Royalty 36,75,950.03 SLP pending with

Supreme Court

Minerals (Validation) Act, 1992 MSEB MAD Cess 1,74,447.04 SLP pending with

Supreme Court

Finance Act 1994 Service Tax on 7,29,28,000.00 CESTAT, Mumbai

Crushing Charges

HEAD Income Tax Act Corporate Tax 15,21,86,000.00 2002-03 High Court , Nagpur

QUARTERS Income Tax Act Corporate Tax 14,73,30,000.00 2003-04 High Court , Nagpur

Income Tax Act Corporate Tax 3,24,000.00 2003-04 High Court , Nagpur

Income Tax Act Corporate Tax 4,07,11,000.00 2004-05 High Court , Nagpur

Income Tax Act Corporate Tax 6,74,61,000.00 2004-05 ITAT , Nagpur

Income Tax Act Corporate Tax 65,24,000.00 2005-06 ITAT , Nagpur

Income Tax Act Corporate Tax 3,20,97,000.00 2005-06 Income Tax Appellate

Tribunal

Income Tax Act Corporate Tax 3,03,15,000.00 2005-06 CIT (Appeal), Nagpur



Tribunal


97


Income Tax Act Corporate Tax 8,09,04,000.00 2007-08 ITAT, Nagpur

Income Tax Act Corporate Tax 4,66,05,000.00 2007-08 ITAT, Nagpur


Tribunal


Tribunal



Tribunal


Tribunal


Income Tax Act TDS 13,58,000.00 2007-08 ITAT, Nagpur







Maharashtra Entry Tax Act Entry Tax on HEMM 96,36,56,000.00 1.4.1988 High Court , Nagpur

to

31.10.1996

Bombay Sales Tax Act Sales Tax 21,24,000.00 2001-02 MSTT, Mumbai

Bombay Sales Tax Act Sales Tax 31,58,48,000.00 2002-03 Appellate Authority,

Nagpur

Central Sales Tax Act Sales Tax 25,18,65,000.00 2002-03 Appellate Authority,

Nagpur

Bombay Sales Tax Act Sales Tax 8,86,61,000.00 2003-04 Appellate Authority,

Nagpur

Central Sales Tax Act Sales Tax 48,75,000.00 2003-04 Appellate Authority,

Nagpur

Bombay Sales Tax Act Sales Tax 72,15,000.00 2004-05 MSTT, Mumbai

Central Sales Tax Act Sales Tax 1,27,85,000.00 2004-05 MSTT, Mumbai

Central Excise Department Central Excise 2182,93,00,000.00 2012-13 Appellate Tribunal,

Mumbai & New Delhi.

98


99



(A MINI RATNA COMPANY)

(A Subsidiary of Coal India Limited)

BALANCE SHEET AS AT 31ST MARCH 2013

Note No As at As at

3/31/2013 3/31/2012

I EQUITY AND LIABILITIES

(1) Shareholders’ Fund

a) Share Capital 1 297.10 297.10b) Reserves & Surplus 2 3,162.92 3,066.29c) Money Received against Share warrants - -

3,460.02 3,363.39(2) Share Application money pending allotment - -(3) Non-Current Liabilities

a) Long Term Borrowings 3 68.31 85.91b)Deferred Tax Liabilities (Net) - -

c)Other Long Term Liabilities 4 1.70 0.25d)Long Term Provisions 5 3,444.90 3,272.79

3,514.91 3,358.95(4) Minority Interest - -(5) Current Liabilities

a) Short Term Borrowing 6 - -b) Trade Payables 7 82.01 91.32c) Other Current Liabilities 8 1,734.51 2,106.58d) Short Term Provisions 9 1,139.88 897.70

2,956.40 3,095.60Total 9,931.33 9,817.94

II ASSETS

(1) Non-Current Assets

(a) Fixed Assets i) Tangible Assets - Gross Block 10A 3,950.81 3,798.98Less : Depreciation, Impairment & Provisions 2,526.01 2,427.45

Net Carrying Value 1,424.80 1,371.53ii) Intangible Assets - Gross Block 10A 542.23 691.41

Less : Depreciation, Impairment & Provisions 429.40 560.80 Net Carrying Value 112.83 130.61

iii) Capital Work-in-Progress 10B 61.71 74.56 iv) Intangible Assets under Development 10C 252.61 214.44(b) Non-Current Investments 11 80.23 96.27(c)Deferred Tax Assets (Net) 578.44 455.72(d ) Long Term Loans & Advances 12 56.12 59.32(e) Other Non-Current Assets 13 - -

(2) Current Assets

(a) Current Investments 14 450.14 32.09(b) Inventories 15 667.33 570.60(c ) Trade Receivables 16 471.27 13.97(d) Cash & Bank Balance 17 4,243.83 5,503.40(e) Short Term Loans & Advances 18 1,104.50 864.83(f) Other Current Assets 19 427.52 430.60

7,364.59 7,415.49

Total 9,931.33 9,817.94

Note : ontingent Liabilities and Commitments (to the extentnot provided for) 34 A 3518.20 1050.51Significant Accounting Policies 3 3Additional Notes on Accounts 3 4The Notes referred to above form an integral part of Balance Sheet

PROBAL DAS RAMEHER SUSHIL BEHL D.C. GARG

General Manager (Finance) Company Secretary Director (Finance) Chairman-cum-Managing Director

(DIN-02841938) (DIN-00267658)

As per our report of even date


Chartered Accountants (FRN 104317W)

Place : Nagpur

Date : 23/05/2013

M.Y. SHASHTRI PARTNER

(M.No. 039763)

100




(A Subsidiary of Coal India Limited)

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ON 31ST MARCH, 2013

INCOME Notes For the Year For the Year

ended 31.03.13 ended 31.03.12

Revenue From Operations 20Sale of Coal, coke etc. 8,703.97 8,357.48Less:- Excise Duty 500.36 373.01 Other Levies 1,498.46 1,234.46

I. Net Revenue From Operations 6,705.15 6,750.01

II. Other Income 21 717.78 680.69

III. Total Revenue (I+II) 7,422.93 7,430.70

IV. EXPENSES

Cost of Material Consumed 22 998.24 920.45Purchase of Stock-in-trade - -Change in inventories of finished goods work in progress 23 (89.31) (128.96)and Stock in tradeEmployee benefit expenses 24 4,296.43 4,213.01Power & Fuel 330.20 281.94Welfare Expenses 25 82.54 32.20Repairs & Maintenance 26 68.05 67.45Contractual Expenses 27 537.90 497.65Finance Costs 28 2.87 3.20Depreciation/amortization/Impairment 188.53 195.65Provisions 29 34.15 220.62Write off 30 - -Overburden Removal Adjustment 279.96 458.95Other Expenses 31 252.94 236.81Total Expenses 6,982.50 6,998.97

V. Profit/(Loss) before Prior Period, exceptional 440.43 431.73

and extraordinary items and tax (III-IV)

VI. Prior Period Adjustment { charges/ (Incomes) } 32 11.56 (8.77)VII. Exceptional Items - -VIII. Profit/(Loss) before extraordinary items and tax (V-VI-VII) 428.87 440.50

IX. Extraordinary Items { charges/ (Incomes) } - -

X. Profit/(Loss) before Tax (VIII-IX) 428.87 440.50

XI. Less : Tax Expense - Current year 247.05 262.14 - Deferred Tax (122.73) (105.59) - Earlier years (19.76) (22.77)

XII. Profit/(Loss) for the period from continuing operations ( X-XI) 324.31 306.72

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) 324.30 306.71

XVII.Earning per equity share (in Rs. )

(Face Value of Rs.1000/- per share)(1) Basic 1,091.55 1,032.35(2) Diluted 1,091.55 1,032.35Significant Accounting Policies 33Additional Notes on Accounts 34The Notes referred to above form an integral part of Statement of Profit and Loss



(DIN-02841938) (DIN-00267658)




Place : Nagpur

Date : 23/05/2013


(M.No. 039763)

101




(A Subsidiary of Coal India Limited)CASH FLOW STATEMENT FOR YEAR ENDED ON 31ST MARCH, 2013

3/31/2013 3/31/2012

A) CASH FLOWS FROM OPERATING ACTIVITIES

Net Profit before taxation and extraordinary items 428.87 440.50

Adjustments for:

Depreciation 199.22 195.78Foreign Exchange Fluctuation (0.34) 14.32Interest Income (516.21) (459.64)Dividend Received from Mutual Fund (8.05) -OBR Adjustment 279.96 458.96Finance Cost 2.87 3.20Provision for Doubtful Debts/Advances/Claims (43.54) (2.23)Other Provisions 77.69 223.66(Profit)/Loss on Sale of Assets (0.57) (0.60)

Operating profit before working capital changes 419.90 873.95

(Increase)/Decrease in Trade Receivables (418.61) 14.32(Increase)/Decrease in Inventories (89.25) (133.51)(Increase)/Decrease in Loans & Advances (209.14) (221.38)Increase/(Decrease) in Trade & Other Payable (337.60) 1338.48

Cash generated from operations (634.70) 1871.86

Direct Taxes paid (Net) (251.62) (260.05)Loss from Discontinued Operations (0.01) (0.01)Cash flow before Extraordinary Items (886.33) 1611.80

Extraordinary Items - -Net cash flow from Operating Activities (886.33) (886.33) 1611.80

B) CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (264.05) (272.55)Proceeds from Sale of Assets 2.04 2.43Change in Non-Current Investments 16.04 32.09Investment in Mutual Fund (418.05) -Interest Received 516.21 459.64Dividend Received from Mutual Fund 8.05 0.00Change in Other Bank Balance (Fixed Deposits) 99.85 (1510.46)Net cash flow from investing activities (39.91) (1288.85)

C ) CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from Long Term Borrowings - -Repayment of Long Term Borrowings (16.71) (14.91)Finance Cost (2.87) (3.20)Dividend Paid (including Dividend Distribution Tax) (213.90) (375.68)Net cash used in Financing Activities (233.48) (393.79)

NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS (1159.72) (70.84)

CASH & CASH EQUIVALENTS AT BEGINNING OF PERIOD 1962.89 2033.73

CASH & CASH EQUIVALENTS AT END OF PERIOD 803.17 1962.89

Note:

1. Cash & Cash Equivalents ( Maturity upto 3 Months) 803.17 1962.89 Other Bank Balances (considered in investing activities) 3440.66 3540.51Total (Refer Note 17) 4243.83 5503.40

2. Purchase of Fixed Assets includes movements of Capital Work-in-progress between the beginning and the end of the year.


General Manager (Finance) Company Secretary Director (Finance) Chairman-cum-Managing Director(DIN-02841938) (DIN-00267658)




Place : Nagpur

Date : 23/05/2013


(M.No. 039763)

102


NOTES TO BALANCE SHEET

NOTE - 1

SHARE CAPITALAs at As at

31/3/2013 31/3/2012

Authorised share capital

(i) 8000000 Equity Shares of ̀ 1000/- each 800.00 800.00800.00 800.00

Issued, 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 117.10 117.10

for funds adjusted against purchase consideration other than cash 297.10 297.10

1 Shares in the company held by each shareholder holding more than 5% SharesName of Shareholder No. of Shares Held % of Total Shares

( Face value of `̀̀̀̀1000 each)

Coal India Ltd 2971000 1002 During the year there is no change in the number of shares issued.

As at As at31-03-13 31-03-12

RESERVES :

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 48.17 33.99 Add: Addition during the year 21.55 21.83 Less: Transfer to General Reserve 20.96 7.65

48.76 48.17Sustainable Development Reserve As per last Balance Sheet - - Add: Addition during the year 0.71 - Less: Transfer to General Reserve 0.36 -

0.35 -General Reserve As per last Balance Sheet 1,004.35 950.69 Add: Transfer from Profit & Loss Account 48.64 46.01 Add: Adjustment During the year 21.32 7.65

1,074.31 1,004.35Surplus in Statement of Profit & Loss As per last Balance Sheet 2,013.77 1,988.80 Profit/(Loss) after Tax During the Year 324.30 306.71 Profit/(Loss) available for Appropriation 2,338.07 2,295.51 APPROPRIATION Reserve for Foreign Exchange Transaction - - Transfer to General Reserve 48.64 46.01 Transfer to CSR Reserve 21.55 21.83 Transfer to SD Reserve 0.71 - Interim Dividend - - Proposed Dividend on Equity Shares (@ ̀ 655 Per share) 194.60 184.04 Corporate Dividend Tax 33.07 29.86

2,039.50 2,013.77Miscellaneous Expenditure(to the extent not written off) Preliminary Expenses - - Pre-Operational Expenses - -

- -

Total : 3162.92 3,066.29

NOTE - 2

CSR Reserve : As per CIL’s policy on Corporate Social Responsibility (CSR), fund is to be allocated for CSR activities during the yearbased on 5% of retained earnings of previous year subject to a minimum of ‘ 5/- per tonne of coal production of previous year. Accordingly,during current year ` 21.55 crores is earmarked and credited to CSR Reserve and an amount of ̀ 20.96 crores being the expenditure upto31st March 2013, is transferred from CSR Reserve to General Reserve.Sustainable Development Reserve : Reserve for Sustainable Development is created based on Guidelines on Sustainable Developmentfor CPSEs issued by Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises vide its memorandum dated 23rdSeptember, 2011.Accordingly, during current year ̀ 0.71 crores is earmarked and credited to SD Reserve and an amount of ̀ 0.36 croresbeing the expenditure upto 31st March 2013, is transferred from SD Reserve to General Reserve.General Reserve : An amount of ̀ 48.64 crores (P Y 46.01 crores) is transferred to General Reserve

103


NOTE - 3

As at As at

31-03-13 31-03-12

Term Loan

International Bank for Reconstruction and

Development (IBRD)- Through CIL 35.54 40.80

Japan Bank of International Co-operation (JBIC)

- Through CIL 32.77 45.11

Export Development Corp., Canada

Liebherr France S.A., France

From Coal India Limited - -

Total 68.31 85.91

CLASSIFICATION 1

Secured - -

Unsecured 68.31 85.91

CLASSIFICATION 2

Loan Guaranteed by directors & others

Particulars of Loan Amount in n ssn s Nature of Guarantee

LONG TERM BORROWING

(Refer additional Note No- 3 )

NOTES TO BALANCE SHEET (CONTD.)

2 There is no default in repayment of loans and interest.

3 Term loan is being repaid in 30 semi annual instalments starting from May 15, 2003 and February 15, 2003 for IBRD and

JBIC respectively

4 The total outstanding amount in Long Term Borrowing is ̀ 84.92 crore, out of this ̀ 16.61 crore is Repayable within one year

which is shown in Note 8 under the head current maturities.

1 Amount outstanding in foreign currency as at 31.03.2013 31.03.2012

IBRD US $ 6,485,575.31 7,878,962.27

JBIC JPY ¥ 560,523,822.57 713,872,230.55

104



NOTE - 4

OTHER LONG TERM LIABILITIES

As at As at

31/3/2013 31/3/2012

Shifting & Rehabilitation Fund

Opening Balance - -Add: Interest from Investment of the fund - -Add: Contribution Received - -Less : Amount utilised - -

- -

Trade Payable - -

Security Deposits 1.70 0.25Others ( Specify Nature) - -

Total 1.70 0.25

105



NOTE - 5

LONG TERM PROVISIONS

As at As at

31/3/2013 31/3/2012

For Employee Benefits

- Gratuity - 258.77 - Leave Encashment 369.61 320.72 - Other Employee Benefits 244.51 220.17

For Foreign Exchange Transactions (Marked to Market) - -OBR Adjustment Account 2,266.33 1,986.37Mine Closure 564.45 486.76For Others - -

TOTAL

3,444.90 3,272.79

Note:Details of OBR ADJUSTMENT ACCOUNT as above

A OBR Advance stripping

as per last accounts 1,436.82 1,213.90Add: expenditure during the year 1,368.69 1,227.84Written off/adjusted 1,332.38 1,004.92TOTAL (A) 1,473.13 1,436.82

B Ratio Variance

as per last accounts 3,423.19 2,741.32Written off/adjusted 316.27 681.87TOTAL (B) 3,739.46 3,423.19

C Total (A-B)

2,266.33 1,986.37

a) Gratuity Liability under payment of Gratuity Act is based on actuarial valuation by certified Actuary. The liability as on 31stMarch 2013 has been certified by Actuary at ̀ 2270.78 crores. After considering the fund available with the trustees of theGratuity fund, an additional liability as on 31st March 2013 is ` 208.69 crores. As certified by Actuary expected paymentwithin next 12 months is more than ` 208.69 crores as such the liability is shown under Note 9

b) Acturial valuation for Leave Encashment has been made and liability assessed by actuary is ̀ 401.38 crores as on 31/03/2013. As a result an amount of ̀ 55.83 crore has been debited to statement of Profit & Loss during the year. As certifiedby Actuary expected payment within next 12 months is ` 31.77 crores, the same is shown under Note 9

c) Actuarial valuation of LLTC/LTA, Settlement Allowance, Accidental insurance cover, Life cover and Fatal Mine Accidenthas been made by the Actuary for an amount of ̀ 140.30 crores. Accordingly incremental amount of ̀ 8.65 crores has beendebited to the statement of Profit and Loss

106



NOTE - 6

SHORT TERM BORROWING ( ̀ Crores )As at As at

3/31/2013 3/31/2012

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 : - -

CLASSIFICATION 1

Secured - -

Unsecured - -

CLASSIFICATION 2

Loan Guaranteed by directors & others

Particulars of Loan Amount in ̀ crores Nature of Guarantee

TRADE PAYABLES As at As at

31-03-13 31-03-12

Sundry Creditors For Revenue Stores 82.01 91.32

TOTAL 82.01 91.32

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 ` 0.17

crores (P. Y ` 0.32 crores)

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 ` 7.93 Crores (Previous year `1.45 Crores) remain unadjusted for more than three years

pending reconciliation.

107


Current Maturities of Long Term Borrowings

Term Loan From IBRD- Through CIL (Holding Company) 7.64 6.56Term Loan From JBIC- Through CIL (Holding Company) 8.97 9.50Term 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) 32.03 28.58

FOR EXPENSES :

Salary Wages & Allowances 385.38 670.56Power & Fuel 38.99 23.36Others 208.25 171.51

632.62 865.43

STATUTORY DUES :

Central Sales Tax 5.08 2.92Sales Tax/VAT 22.28 15.86Provident Fund & Pension Fund 63.32 49.49Central Excise Duty (7.21) (15.89)Royalty & Cess on Coal 95.08 60.57Stowing Excise Duty 11.80 11.45Clean Energy Cess 39.43 37.20Other Statutory Levies 29.55 70.13

259.33 231.73

Income Tax Deducted at Source 26.03 6.74Security Deposit 50.47 45.18Earnest Money 30.71 26.87Advance & Deposit from customers / others 523.42 765.94Interest 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 - -Others Liabilities 163.29 120.05

TOTAL 1,734.51 2,106.58

Amount outstanding in foreign currency as at 31.03.2013 31.03.2012 IBRD US $ 1,393,386.96 1,312,789.62

JBIC JPY ¥ 153,348,407.98 150,423,537.09

NOTE - 8


OTHER CURRENT LIABILITIES As at As at

(Refer additional Note No- 5 ) 31-03-13 31-03-12

2 Sales Tax/VAT, Central Excise Duty are shown above is Net of Credit Receivables3 During the year 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 ofthe Court, the amount so recovered has been deposited with the State Bank of India, Nagpur. As per directives of CIL andpending settlement with the employees the same has been kept separately under FC 470120 to the tune of ` 28.51 Crores.During the year, this deposit has earned an interest of ̀ 2.48 crores (P Y ̀ 1.14 crores) and the same is treated as liability. Thereis a contingent liability against the company to the extent of interest, it any, awarded by the Court on final disposal of the case.

4 Outstanding capital liability for civil works / Plant & Machinery completed in different Areas include an amount of ̀ 1.76 Crores(Previous year ̀ 1.06 Crore) outstanding for more than three years.

5 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 31stMarch, 2013 is ̀ 1.78 Crores (C.Y ̀ 0.23 Crores) and ̀ 0.93 Crores (C.Y.` 0.16 Crores) respectively. The deduction together withthe interest is appearing under the head Other Liability.

108


NOTE - 9

SHORT TERM PROVISIONS


As at As at

31/3/2013 31/3/2012

For Employee Benefits

- Gratuity 208.69 226.01

- Leave Encashment 31.77 24.83

- PPLB 139.88 108.96

- PRP 356.52 280.80

- Other Employee Benefits 107.80 -

For Proposed Dividend 194.60 184.04

For Corporate Dividend Tax 33.07 29.86

Provision for Income Tax - -

Less : Advance Income Tax / Tax Deducted at Source - - - -

For Excise Duty on Closing Stock of Coal 67.55 43.20

For Others - -

TOTAL 1,139.88 897.70

a) Actuarial valuation of Post Retirement Medical Benefit as certified by the Actuary as on 31st March 2013 amounts to` 107.80 crores (for employees retired prior to 01.01.2007 ̀ 16.54 crores, for employees retired after 01.01.2007 ̀ 34.89 croresand for existing employees- ` 56.37 crores. Accordingly incremental amount of `100.45 crores has been debited to thestatement of Profit & Loss. (In Note 24 - Employee benefits ̀ 56.37 crores and ̀ 44.08 crores in Note 25 - Welfare Expenses)

109


110


111


112



NOTE - 11

NON - CURRENT INVESTMENTS - Unquoted at Cost


As at As at

31-03-13 31-03-12

TRADE INVESTMENTS

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 492,600 1,000.00 49.26 59.10

(590,970)

Madhya Pradesh 309,700 1,000.00 30.97 37.17

(371,730)

Gujarat - - - -

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 - - - -

Rs. 7.55% Non Convertible IRFC Tax Free Bonds 2021 Series- - - - -

Total : 80.23 96.27

Aggregate of Unquoted Investment 80.23 96.27

Face value per

shares/bonds/

security

current year/

(previous year) Rs.

Number of

shares/bonds/

securities current

year/

(previous year)

Investments:

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 31.3.2013 is ̀ 112.32 crores. Out of this the amount

maturing within 12 months ` 32.09 crores is shown as current investment (Note- 14).

113


NOTE - 12


LONG TERM LOANS & ADVANCES As at As at

31/3/2013 31/3/2012

LOANS

ADVANCESFor Capital

- Secured considered Good - - - Unsecured considered Good - 4.05 - Doubtful 1.58 1.58

1.58 5.63 Less : Provision for Doubtful Loans and Advances 1.58 1.58

- 4.05 For Revenue - Secured considered Good - - - Unsecured considered Good - - - Doubtful - -

- - Less : Provision for Doubtful Loans and Advances - -

- - Security Deposits - Secured considered Good - - - Unsecured considered Good - - - Doubtful - -


- -Deposit for P&T, Electricity etc. - Secured considered Good - - - Unsecured considered Good 45.43 42.26 - Doubtful 1.09 1.09

46.52 43.35 Less : Provision for Doubtful Loans and Advances 1.09 1.09

45.43 42.26LOAN TO EMPLOYEES & OTHERS For House Building - Secured Considered Good 10.42 12.58 - Unsecured Considered Good - - Doubtful - -

10.42 12.58 For Motor Car and Other Conveyance - Secured Considered Good 0.27 0.43 - Unsecured Considered Good - - - Doubtful - -

0.27 0.43 For Others - Secured considered Good - - - Unsecured considered Good - - - Doubtful - -


- - - -

Loan To Subsidiaries- Secured considered Good - -

- Unsecured considered Good - - - Doubtful - -

- -TOTAL 56.12 59.32

The advances to suppliers/contractors and for capital works/mobilisation advances lying unadjusted since long are ̀ 1.58 Crores

(Previous year ` 1.93 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( With name of the Companies)Due by the parties in which the Director(s) ofcompany is /are interested

CLOSING BALANCE

CURRENT

PERIOD

MAXIMUM AMOUNT

DUE AT ANY TIME DURING

CURRENT

PERIOD

CURRENT

PERIOD

PREVIOUS

PERIOD

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

114


NOTE - 13

Due by the Companies in which directors of the

company is also a director/member

( With name of the Companies)

Due by the parties in which the Director(s) of

company is /are interested

CLOSING BALANCE

CURRENT

PERIOD

MAXIMUM AMOUNT


CURRENT

PERIOD

CURRENT

PERIOD

PREVIOUS

PERIOD


OTHER NON-CURRENT ASSETS As at As at

31/3//2013 31/3/2012

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 - -

Other Receivables



- Doubtful - -

- -

Less Provision for bad and doubtful Receivables - -

- -

TOTAL - -

NIL NIL NIL NIL

NIL NIL NIL NIL

115


Number of shares/

bonds/securitiescurrent year/

(previous year)

CURRENT INVESTMENTS - Quoted /

Unquoted at Cost


NOTE - 14

Face value per

shares/bonds/security current year

/(previous year) (`)

Market Value/NAVper shares/bonds/

security current year/

(previous year)

(`)

As at

31-03-13

As at

31-03-12

NON-TRADE

Mutual Fund Investment

SBI Mutual Fund 1,284,093 1,003.25 1,003.25 128.83 -

(NIL)

UTI Mutual Fund 770,053 1,019.45 1,019.45 78.50 -

(NIL)

Canara Rebeco Mutual Fund 1,281,406 1,005.50 1,005.50 128.84 -

(NIL)

LIC Nomura Mutual Fund 745,714 1,098.00 1,098.00 81.88 -

7.55% Non Convertible IRFC Tax Free

Bonds 2021 Series - -

TRADE

Investments in Govt. Securities

8.5% Tax Free Special Bonds (Fully Paid up) :

(on securitisation of Sundry Debtors)

Major State-wise Break-up

Maharashtra 196,890 1,000.00 19.70 19.70

(196,890) (1,000.00)

Madhya Pradesh 123,910 1,000.00

12.39 12.39

(123,910) (1,000.00)

Total : 450.14 32.09

Aggregate of Unquoted Investment 450.14 32.09

Mutual Fund:

During the year Investment in Mutual Fund has been made for an amount of ̀ 410.00 crores, which has earned a dividend of ̀ 8.05

crores and the same has been reinvested.

(` Crores)

116


INVENTORIES

(Valuation as per Accounting Policy No 6)

As at As at

31-03-13 31-03-12

NOTE - 15


Stock of Coal - Revenue Mines 579.11 488.15

Development Mines 5.44 -

584.55 488.15

Less : Provision 0.01 0.01

A Stock of Coal (Net) 584.54 488.14

Stock of Stores & Spares (at cost) 74.67 76.06

Stores -in -transit 3.06 7.17


B Net Stock of Stores & Spares (at cost) 64.76 70.38

C Workshop Jobs :

Work-in-progress and Finished Goods 7.80 9.45


Net Stock of Workshop Jobs 6.35 8.00

D Press :

Work-in-Progress and Finished Goods - -

E Stock of Medicine at Central Hospital - -

F Prospecting & Boring/ Development Exp./Coal Blocks meant for Sale 11.68 4.08

Total ( A to F ) 667.33 570.60

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 ` 0.12 Crores (previous year withdrawal of ` 0.79 Crores) has been made. Thus the closing provision as on

date stands at ̀ 12.97 Crores (P Y ` 12.85 Crores).

2 Coal Blocks Meant for Sale :

During the year Ministry of Coal vide its notification no.13016/47/2008-CA-1 dated 30th May 2012 has identified nine coal

blocks as Captive coal blocks meant for sale. Accordingly, as per the accounting policy of the company, an amount of

` 7.60 crores is transferred from CWIP Prospecting & Boring and Development expenditure to Inventory.

117


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: 31/03/2013

1. (A) Opening stock as on 01.04.12 5,192.69 488.14 5,192.69 488.14

( B) Adjustment in Opening Stock - - - - - -

2. Production for the year 42,567.66 7,338.11 - - 42,567.66 7,338.11

3. Sub-Total ( 1+2) 47,760.35 7,338.11 - - 47,760.35 7,338.11

4. Off- Take for the year :

(A) Outside Despatch 41,525.22 6,705.15 - - 41,525.22 6,705.15

(B) Coal feed to Washeries 281.40 44.31 - - 281.40 44.31

(C) Own Consumption 6.94 1.29 - - 6.94 1.29

TOTAL(A) 41,813.56 6,750.75 - - 41,813.56 6,750.75

5. Derived Stock 5,946.79 587.36 - - 5,946.79 587.36

6. Measured Stock 5,917.92 580.59 - - 5,917.92 580.59

7. Difference (5-6) 28.87 6.77 - - 28.87 6.77

8. Break-up of Difference:

(A) Excess within 5% 51.94 3.29 - - 51.94 3.29

(B) Shortage within 5% 63.21 7.25 - - 63.21 7.25

(C ) Excess beyond 5% - - - - - -

(D ) Shortage beyond 5% 17.60 2.81 - - 17.60 2.81

9. Closing stock adopted 5,929.19 584.55 - - 5,929.19 584.55

in A/c.( 6-8A+8B)

OVERALL STOCK NON-VENDABLE STOCK VENDABLE STOCK

Qty. Value Qty. Value Qty. Value


* offtake includes outside despatch, Coal feed to washeries & own consumption.

** Excluding non-vendable Stock

118


As at As at

31/3/2013 31/3/2012

Debts outstanding for a period exceeding six months from the due date


- Unsecured considered good 13.11 -

- Doubtful 72.54 72.54

85.65 72.54

Less Provision for bad and doubtful trade receivables 72.54 119.08

13.11 (46.54)

Other Debts


- Unsecured considered good 458.16 60.51

- Doubtful 7.85 -

466.01 60.51

Less Provision for bad and doubtful trade receivables 7.85 -

458.16 60.51

Total 471.27 13.97

NOTE - 16


Due by the Companies in which directors of the

company is also a director/member



CLOSING BALANCE

CURRENT

PERIOD


PREVIOUS

PERIOD

CURRENT

PERIOD

PREVIOUS

PERIOD

NIL

NIL

NIL

NIL

NIL

NIL

NIL

NIL

b) During the year an amount of Rs.38.69 Crores has been withdrawn from provision for Doubtful Debts. Total Provision for

Doubtful Debts as at 31st March 2013 stands at Rs.80.39 Crores (P.Y. Rs.119.08 Crores).

c) 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 Rs.171.94 crores and Rs.21.99 crores respectively.

MPPGCL had securitised Rs.123.91 cores in 2003. The balance of Rs.70.02 crores is still lying unsecuritised .

TRADE RECEIVABLE :

119


CASH & BANK BALANCE As at As at

31-03-13 31-03-12

Cash & Cash Equivalents

Cash & Cash Equivalents

Balances with Scheduled Banks

- SBI Dividend Account (unpaid/unclaimed dividend account) - -

- In Deposit Accounts with maturity upto 3 months 650.00 1,708.37

- In Current Accounts 148.60 250.32

- In Cash Credit Accounts - -

Balances with Non - Scheduled Banks - -

In Account with Banks outside India - -

Remittance - in transit 4.36 3.86

Cheques, Drafts and Stamps on hand - 0.04

Cash in hand 0.21 0.30

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 3,440.66 3,540.51

- In Deposit accounts under Shifting and Rehabilitation Fund

Scheme with maturity more than 3 months - -

Deposit with Scheduled Banks under Mine Closure Plan Scheme - -

Total 4,243.83 5,503.40

Cash & Cash Equivalents ( Maturity upto 3 Months) 803.17 1,962.89

Other Bank Balances (Maturity more than 3 Months) 3,440.66 3,540.51

Total 4,243.83 5,503.40

1 Balance in Deposit Accounts includes deposits of ` NIL (P Y ` NIL) having maturity of more than 12 months

from the date of acquisition

2 Balance in Deposits Accounts includes an amount of ` 2.81 crores (P Y ` 1.18 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 33.08 22.60

c) Court cases for Union Fund, Relief Fund & 5% MPGATSVA 81.99 112.33

NOTE - 17


120


SHORT TERM LOANS & ADVANCES As at As at

31/3/2013 31/3/2012

LOANS

ADVANCE

( Recoverable in cash or in kind or for value to be received)

ADVANCE TO SUPPLIERSFor Revenue

- Secured considered good - -- Unsecured considered good 2.76 5.01 - Doubtful 2.21 2.21

4.97 7.22 Less Provision for bad and doubtful Advance 2.21 2.21

2.76 5.01ADV 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 1,749.91 1,725.58 Less : Provision for Income Tax 920.34 1,101.03

829.57 624.55 Others - Secured considered good - - - Unsecured considered good - - - Doubtful - -

- - Less Provision for bad and doubtful Advance - -

- - - -

Advance to Employees

- Secured considered good - - - Unsecured considered good 106.45 102.41 - Doubtful 0.09 0.09

106.54 102.50 Less Provision for bad and doubtful Advance 0.09 0.09

106.45 102.41Current Account with Coal India Limited & other Subsidiaries of Coal India Limited 61.48 47.97Loan 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 91.63 72.18 - Doubtful 6.06 5.98

97.69 78.16 Less Provision for bad and doubtful claim receivables 6.06 5.98

91.63 72.18Prepaid Expenses 12.61 12.71

TOTAL 1,104.50 864.83

NOTE - 18


Due by the Companies in which directors of the company is also a

director/member



CLOSING BALANCE

CURRENT

PERIOD

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 2013, ` 247.05 Crores (Previous Year :` 262.14 Crores) has been worked out as per the provisions of the Income Tax Act 1961 and on the basis of completed assessments

of the Company. An amount of ̀ 19.76 crores is withdrawn against earlier year provision.

121



OTHER CURRENT ASSETS As at As at

31/3/2013 31/3/2012

Interest Accrued

- Investment 4.77 6.14

- Deposit with Banks 117.34 192.44

- Others - -

Ex Owner’s Account - -

Other Advances 7.27 6.89

Less: Provision 1.32 1.32

DEPOSITS

Deposit for Customs Duty, Port Charges etc. - -

Deposit with Coal India Limited 248.92 201.15

Deposit for Royalty, Cess & Sales Tax 4.92 4.34

Less: Provision - -

Others 0.45 0.45

Less: Provision - -

Amount Receivable from Govt of India for transactions on behalf of Ex-Coal Board - -

Less: Provision - -

Other Receivables 45.31 20.65


TOTAL 427.52 430.60

NOTE - 19

Revenue From Operations For the Year Ended on

31/3/2013 31/3/2012

Sales of Coal, coke etc 8,703.97 8,357.48

Less: Excise Duty 500.36 373.01

Less : Other Levies

Royalty 871.23 622.35

Cess on Coal - -

Stowing Excise Duty 41.28 41.66

Central Sales Tax 41.03 43.43

Clean Energy Cess 206.92 209.34

State Sales Tax/VAT 338.00 317.68

Other Levies - -

TOTAL LEVIES 1,498.46 1,234.46

Revenue From Operations (NET SALES) 6,705.15 6,750.01

NOTE - 20

NOTES TO STATEMENT OF PROFIT & LOSS

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 `56.83 Crores (P Y ` 45.73 crores)

b) Net Revenue from operations includes ` 81.18 Crores , Performance Incentive Bills raised as per Fuel Supply Agreements (FSA).

This includes ` 69.50 crores for the supplies made in current year and ` 11.68 crores for balance supplies for the year 2011-12,

lifted during 2012-13.

c) As per the Coal Supply Agreement on Cost Plus basis between the Company and MAHAGENCO for supplies from Adasa UG mines of

Nagpur Area, Clause 7.4 provides for a discount in price of 30% of the contracted price if the coal supply exceeds the contracted

quantity. Accordingly, during the year Nagpur Area has made a provision of ` 11.99 Crores (P.Y. ` 8.49 crores).

d) 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. For the current year final bills consisting of 10% portion amounting to ` 18.30 Crores (previous

year ` 35.90 crores)have been accounted for.

122


NOTE - 21

OTHER INCOME

For the Year For the Year

31-03-13 31-03-12

Income From Long Term Investments

Dividend from Joint Ventures - -

Dividend from Subsidiaries - -

Interest from - -

Government Securities ( 8.5% Tax Free Special Bonds) ( Trade ) 7.50 10.23

7.55% Non Convertible IRFC Tax Free Bonds 2021 Series (Non-Trade) - -

Income From Current Investments

Dividend from Mutual Fund Investments 8.05 -

Interest from

Government Securities ( 8.5% Tax Free Special Bonds) ( Trade ) 2.73 2.73

7.55% Non Convertible IRFC Tax Free Bonds 2021 Series (Non-Trade) - -

Income From Others

Interest (Gross)

From Deposit with Banks 434.91 422.40

From Loans and Advances to Employees 0.16 0.39

From Income Tax Refunds 35.72 63.20

From Coal India 27.76 22.24

Others 7.43 1.72

Apex Charges - -

Subsidy for Sand Stowing & Protective Works 24.27 21.59

Profit on Sale of Assets 0.66 0.63

Recovery of Transportation & Loading Cost 98.58 104.91

Gain on Foreign exchange Transactions 0.34 -

Exchange Rate Variance - -

Lease Rent 0.02 0.01

Liability Write Backs - -

Guarantee Fees from Subsidiaries - -

Other non-operating Income 69.65 30.64

TOTAL 717.78 680.69

NOTES TO STATEMENT OF PROFIT & LOSS

NOTE - 22

COST OF MATERIAL CONSUMED

For the Year Ended on

31-3-2013 31-3-2012

Explosives 148.42 136.31

Timber 15.18 15.95

P O L 476.27 411.88

HEMM Spares 183.10 182.61

Other Consumable Stores & Spares 175.27 173.70

TOTAL 998.24 920.45

123


NOTE - 23

NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.)

CHANGE IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE


31-03-13 31-03-12

Opening Stock of Coal 488.15 360.38

Add: Adjustment of opening stock

Less: Deterioration of Coal 0.01 0.01

488.14 360.37

Less:

Closing Stock of Coal 579.11 488.15

Less: Deterioration of Coal 0.01 0.01

579.10 488.14

A. Change in Inventory of Coal (90.96) (127.77)

Opening Stock of Workshop made finished goods and WIP 9.45 8.26


8.00 6.81

Less:

Closing Stock of Workshop made finished goods and WIP 7.80 9.45


6.35 8.00

B. Change in Inventory of workshop 1.65 (1.19)

Press Opening Job

i)Finished Goods - -

ii)Work in Progress - -

- -

Less:

Press Closing Job

i)Finished Goods - -

ii)Work in Progress - -

- -

C. Change in Inventory of Closing Stock of Press

Job made finished goods and WIP

- -

Change in Inventory of Stock in Trade (A+B+C) (89.31) (128.96)

Deccretion / (Accretion)}

124


NOTE - 24

Salary, Wages, Allowances & Benefits 3,018.11 2,641.32

Exgratia 164.90 133.56

PRP 75.30 60.89

Contribution to P.F. & Other Funds 338.26 268.18

Gratuity 209.47 629.01

Leave Encashment 108.30 130.85

VRS - 0.35

Workman Compensation 1.84 1.41

Employee Welfare Expenses:

Medical Expenses 51.99 43.92

Grants to Schools & Institutions 8.51 7.93

Sports & Recreation 1.97 1.57

Canteen & Creche 0.54 0.52

Power - Township 139.55 127.47

Hire charges of Bus, Ambulance etc. 10.69 5.93

Other Employee Benefits 167.00 160.10

TOTAL 4,296.43 4,213.01

EMPLOYEE BENEFIT EXPENSES

(Refer additional Note No- 15 )For the Year For the Year

31-03-13 31-03-12

a) In terms CIL’s office Memorandum bearing no. CIL/C-5A(vi)/005/35/1210 dated 2/7th May 2009 under para 13

against superannuation benefit, it was stated that the said benefit will be limited to 30% of basic pay + DA. Out of

which 4% of fund was allocated against Post Superannuation Medical Benefit.Accordingly w.e.f.1.1.2007 a

provision/charge equivalent to 4% of basic plus DA for all executives (both Board level & below Board level) on

it’s roll, till their superannuation be made by CIL & its subsidiaries.In view of the above, as per directive from CIL

vide letter no. CIL/C-5A(PC)/pay revision/171, dated 10th October 2012, an amount equivalent to 4% of Basic +

DA of executives amounting to Rs.32.14 Crores is provided in the books of accounts for the period 1.1.2007 to

31.3.2012 and an amount of Rs.10.23 Crores is provided for the current year. Further an amount of Rs.14.00

crores is provided, being the differential amount between Actuarial valuation (Rs.56.37 crores) and actual charged

(Rs.42.37 crores) to Statement of Profit & Loss.

b) As per instructions from CIL, provision has been created for Pension payable to employees @ 3% of pay

(Basic+DA) and @ 6.84% of pay for other Superannuation Benefits amounting to Rs.23.03 Crores (P.Y. Rs.20.58

crores).

c) The provision for Performance Linked Reward Scheme / Productivity Linked Bonus Scheme for non-executives

for the year 2011-12 was made @ Rs.20000/- per employees. The said amount has increased to Rs.26500/-. As

a result an additional amount Rs.25.02 crores has been debited to Statement of Profit & Loss. Provision for the

current year @ Rs.26500/- per employee amounting to Rs.139.88 Crores has been made.

d) As per instructions from CIL, the provision for Performance Related Pay for Executives has been made at

Rs.75.30 Crores (previous year Rs.60.89 Crores)

125


NOTE - 25

REPAIRS


31-03-13 31-03-12

Building 15.34 17.80

Plant & Machinery 41.66 40.35

Others 11.05 9.30

TOTAL 68.05 67.45

NOTE - 26


WELFARE EXPENSES


31-03-13 31-03-12

Medical Expenses for retired employees 45.95 4.19

CSR Expenses 20.95 7.65

Environmental Expenses 12.99 14.37

Tree Plantation 2.29 5.99

Sustainable Development 0.36 -

Other Welfare Expenses - -

TOTAL 82.54 32.20

Medical expenses for retired employees includes ̀ 44.08 crores towards incremental actuarial liability.

CONTRACTUAL EXPENSES For the Year For the Year

31-03-13 31-03-12

Transportation Charges :

- Sand 13.38 11.88

- Coal & Coke 138.05 135.64

- Stores & Others etc. 0.58 0.43

Wagon Loading 9.09 6.23

Hiring of P&M 306.36 284.98

Other Contractual Work 70.44 58.49

TOTAL 537.90 497.65

NOTE - 27

126


FINANCE COSTS For the Year For the Year

31-03-13 31-03-12

NOTE - 28

NOTE - 29

PROVISIONS For the Year For the Year

31-03-13 31-03-12

WRITE OFF For the Year For the Year

31-03-13 31-03-12

Doubtful debts - -

Doubtful advances - -

Others - -

TOTAL - -

NOTE - 30


INTEREST EXPENSE

Deferred Payments - -

Bank Overdraft / Cash Credit - -

Interest on IBRD & JBIC Loan 1.52 1.51

CIL Fund Loan Interest - -

Interest to Subsidiaries - -

Others - -

TOTAL(A) 1.52 1.51

OTHER BORROWING COSTS

Guarantee Fees on (IBRD & JBIC) Loan 1.35 1.69

Other Expenses / Bank Charges - -

TOTAL(B) 1.35 1.69

TOTAL (A+B) 2.87 3.20

(A) PROVISION MADE FOR

Doubtful debts - -

Doubtful advances & Claims 0.08 0.86

Foreign exchange Transaction - -

Stores & Spares 0.12 -

Reclamation of Land/Mine Closure Expenses 77.69 223.66

Surveyed off Fixed Assets/Capital WIP 0.06 0.11

Others - -

TOTAL (A) 77.95 224.63

(B) PROVISION WRITTEN BACK

Doubtful debts 38.69 3.09

Doubtful advances & Claims - -

Foreign exchange Transaction - -

Stores & Spares - 0.79

Reclamation of Land/Mine Closure Expenses - -

Surveyed off Fixed Assets/Capital WIP 5.11 -

Others - 0.13

TOTAL (B) 43.80 4.01

TOTAL ( A-B ) 34.15 220.62

127



NOTE - 31

OTHER EXPENSES

For the Year Ended on

31/3/2013 31/3/2012

Travelling expenses

- Domestic 20.73 19.36

- Foreign 0.07 0.27

Training Expenses 3.06 3.03

Telephone & Postage 2.23 2.30

Advertisement & Publicity 4.23 3.48

Freight Charges 0.29 0.34

Demurrage 2.93 3.37

Donation/Subscription 0.41 0.43

Security Expenses 26.25 24.17

Service Charges of CIL 18.80 23.78

Hire Charges 24.12 22.08

CMPDI Expenses 5.16 3.71

Legal Expenses 1.30 1.29

Bank Charges 0.18 0.18

Guest House Expenses - -

Consultancy Charges 8.77 11.80

Under Loading Charges 18.58 9.25

Loss on Sale/Discard/Surveyed of Assets 0.09 0.03

Auditor’s Remuneration & Expenses

- For Audit Fees 0.15 0.12

- For Taxation Matters -

- For Company Law Matters -

- For Management Services -

- For Other Services 0.29 0.21

- For Reimbursement of Expenses 0.10 0.03

Internal Audit expenses etc 1.19 0.60

Rehabilitation Charges 24.93 25.18

Royalty & Cess 8.46 8.97

Central Excise Duty 24.13 15.94

Rent 3.14 3.23

Rates & Taxes 14.91 7.24

Insurance 0.95 0.61

Loss on Exchange Rate Variance - 2.10

Lease Rent - -

Rescue/Safety Expenses 1.11 0.91

Dead Rent/Surface Rent (0.85) 1.34

Siding Maintenance Charges 2.57 1.43

Land/Crops Compensation 2.48 1.79

Misceleneous Expenses 32.18 38.24

TOTAL 252.94 236.81

128


(A) Expenditure

Sale of Coal & Coke - -

Other Income - -

Consumption of Stores & Spares - 0.22

Employees Remuneration & Benefits 1.52 -

Power & Fuel - -

Welfare Expenses - -

Repairs 0.18

Contractual Expenses - -

Other Expenditure 0.24 -

Interest and other financial charges - -

Depreciation 10.69 0.13

TOTAL (A) 12.45 0.53

(B) Income

Sale of Coal & Coke - -

Other Income 0.89 -

Consumption of Stores & Spares - -

Employees Remuneration & Benefits 7.53

Power & Fuel - -

Welfare Expenses - -

Repairs - -

Contractual Expenses - -

Other Expenditure 1.45

Interest and other financial charges - 0.32

Depreciation - -

TOTAL (B) 0.89 9.30

TOTAL ( A-B ) 11.56 (8.77)

PRIOR PERIOD ADJUSTMENT


31-03-13 31-03-12

NOTE - 32


129



NOTE - 33

A. 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, 1956 including accounting standards notified there under , except otherwise stated.

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 under

the head- Other 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.

3.0 Fixed Assets:

3.1 Land:

Value of land includes cost of acquisition and cash rehabilitation expenses and

resettlement cost incurred for concerned displaced persons. Other expenditure

incurred on acquisition of land viz. compensation in lieu of employment etc. are,

however, treated as revenue expenditure.

3.2 Plant & Machinery:

Plant & Machinery includes cost and expenses incurred for erection / installation

and other attributable costs of bringing those assets to working

conditions for their intended use.

3.3 Railway Siding:

Pending commissioning, payments made to the railway authorities for construction

of railway sidings are shown in Note 12 – “Long Term Loans & Advances” under

Advances for Capital.

3.4 Development:

Expenses net of income of the projects / mines under development are booked

to Development Account and grouped under Capital Work-in-Progress till the

130


projects mines are brought to revenue account. Except otherwise specifically

stated in the project report to determine the commercial readiness of the project

to yield production on a sustainable basis and completion of required development

activity during the period of constructions, projects and mines under development

are brought to revenue considering the following criteria:

(a) From beginning of the financial year immediately after the year in which

the project achieves physical output of 25% of rated capacity as per

approved project report, or

(b) 2 years of touching of coal, or

(c) From the beginning of the financial year in which the value of production

is 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 “Five

year” plan periods for formulation of projects, before it is written-off, except in the case

of Blocks identified for sale or proposed to be sold to outside agency which will be kept

in inventory till finalisation of sale.

5.0 Investments:

Current investments are valued at the lower of cost and fair value as at the Balance

Sheet date.Investments in mutual fund are considered as current investments. Non-

Current investments are valued at cost.

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.

131


6.2.2 Stock of stores & spare parts 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.

6.2.3 Stores & spare parts include loose tools.

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.

6.3 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.

7.0 Depreciation:

7.1. Depreciation on fixed assets is provided on straight line method at the rates and

manner specified in Schedule XIV of the Companies Act, 1956 (as amended)

except for telecommunication equipment and photocopying machine, which are

charged at higher rates on the basis of their technically estimated life, as follows :-

Telecommunication equipment : - 15.83% p.a. and 10.55% p.a.

Photocopying machine : - 10.55% p.a.

Depreciation on Earth Science Museum and high volume samplers and

respiratory dust are charged @5.15% and 33.33% respectively on the basis of

their technically estimated life.

Further, depreciation on certain equipments /HEMM is charged over the

technically estimated life at higher rates viz. 11.88%; 13.57% and 15.83% as

applicable.

Depreciation on SDL and LHD (equipments) are charged @19% p.a. and

@15.83% p.a. respectively on the basis of technical estimation.

Depreciation on the assets added / disposed off during the year is provided on

pro-rata basis with reference to the month of addition / disposal, except on

those assets attracting 100% depreciation p.a. (SLM basis), which are fully

depreciated in the year of their addition. Assets attracting 100% depreciation

are taken out from the Assets after expiry of two years following the year in

which these are fully depreciated.

7.2 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

132


leasehold land is amortised on the basis of lease period or balance life of the

project whichever is earlier.

7.3 Prospecting, Boring and Development expenditure are amortised from the year

when the mine is brought under revenue in 20 years or working life of the project

whichever is less.

8.0 Impairment of Asset:

Impairment loss is recognised wherever the carrying amount of an asset is in excess of

its recoverable amount and the same is recognized as an expense in the statement of

profit 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 an

indication that the impairment losses recognised for the asset no longer exist or have

decreased.

9.0 Foreign Currency Transactions:

9.1 Balance of foreign currency transactions is translated at the rates prevailing on

the Balance Sheet date and the corresponding effect is given in the respective

accounts. Transactions completed during the period are adjusted on actual basis.

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) Define contribution Plan

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.

133


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, Retired Executive 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.

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

134


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.

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:-

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.

Annual Quantum Permissible limits of variance

of OBR Of the Mine

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.

I II

% Quantum (in Mill.Cu. Mtr.)

135



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 at 1stNovember, 1975 vested with the Western Division of Coal Mines Authority Limited. TheCompany is 100% subsidiary of Coal India Ltd.

2. LONG TERM BORROWING:(Refer Note No-3)

SECURED Nil. However, a charge has been created for ̀ 165 crores on current assets forsecuring working capital facility from CIL’s Consortium Banks as per modified Joint Deedof Hypothecation dated 01.09.2008. This loan has, however, not been availed so far.

UNSECURED LOANS :

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 Land Acquisition Act, CBA (A&D) Act, and onprivate negotiations, amounting to ` 14.06 Crores (Previous year ` 33.84Crores) on the basis of payments/compensation made as per approval ofCompetent Authorities pending final settlement are, included in Fixed Assets.

b) DFD Plant and CBE Plant continue to remain inoperative during the year. CBEPlant stands closed since 2003 and DFD Plant since 1994. Leasehold Land of DFDPlant is being amortized over the lease period of 30 years. Plant & Machinery of

CBE Plant, excepting Hospital Equipments, has been disposed off by auctionthrough MSTC. All the other assets of both these plants are carried in the books at a

residual value of 5% of their cost.

c) Physical verification of Fixed Assets as on 31.03.2003 was done in all the Areas

NAME OF

FINANCIAL

INSTITUTION

(1)

International Bank

for Reconstruction

and Development

(IBRD)

Japan Bank of

International Co-

operation (JBIC)

TOTAL

BALANCE

AS ON

1.4.2012

(Note 3+8)

(2)

47.36

54.61

101.97

EXCHANGE

FLUCTUATION

DURING

THE YEAR

(3)

2.91

-3.25

-0.34

REPAYMENT

DURING

THE YEAR

(4)

7.09

9.62

16.71

Balance

as on

31.03.13

(5)

43.18

41.74

84.92

Repayable

within one year

(Shown in

Note - 8)

(6)

7.64

8.97

16.61

Balance

(Shown in

Note -3)

(7)

35.54

32.77

68.31

(` Crores)

136


by firms of Chartered/Cost Accountants and their reports were received. Anoutside agency has done the reconciliation for inter-area and intra-area transfersand their report has been received during 2006-07. Some intra-area and inter-area discrepancies were accounted in cases where items were physically identified.The balance inter-area adjustment is under process. However, physical verificationof P&M and vehicles valued at ` 1 lakh and above is done by local Area management

every year.

4. CAPITAL WORK IN PROGRESS (CWIP) :(Refer Note No-10B)

a) CWIP pending since more than 3 years is `17.52 Crores (Previous year `14.63Crores).

b) Provision for Non-Moving Capital Stores & Spares, not moved for 5 years is made,as per company’s accounting policy, @ of 50% and provision is made @ 100% forunserviceable, damaged and obsolete stores.During the year there has been a withdrawal of provision to the tune of ` 0.02Crores (previous year ` 0.13 Crores). Thus the year-end closing provision standsat ` 0.07Crores (Previous year ‘ 0.09 Crores).

c) Cost of Asset as well as provision for depreciation on Surveyed off Assets are taken outof the Gross Block and provision for depreciation respectively and the residual value at5% of Book Value are shown as a separate line item as Surveyed off assets underCapital Work-in-Progress (Note 10B). In case of premature surveyed off assets thedifference between the WDV and residual value of 5% is charged to Statement of Profitand Loss, as loss on surveyed off assets.

Surveyed off assets lying in Stores, amounting to ` 22.29Crores (previous year ` 20.66Crores) valued at 5% residual value, have not been physically verified.Since in the opinion of management, expected realisable value is more than the bookvalue, the existing provision of `1.16 Crores is maintained and no further provision hasbeen made.

5. LONG TERM LOANS AND ADVANCES (Ref. Note no. 12)

The advances unadjusted since long to suppliers/contractors are ` 2.21 Crores (P.Y.2.21Crores) ref. Note no.18 and for capital works/mobilisation advances are ` 1.58 crores(Previous year ` 1.58 Crores), ref. Note no. 12. Necessary Provisions are appearing inthe books of accounts for the same.

6. OTHERS

a) The government of Madhya Pradesh by Gazette Notification dated 30/09/2005 hasimposed a new tax named “Madhya Pradesh Gramin Avsanrachana Tatha Sadak VikasAdhiniyam, 2005 (MPGATSVA 2005), with effect from 30/09/2005. This Adhiniyamprovides for charging of tax @ 5% on annual value w.e.f. 30.09.2005. Some consumersas well as WCL moved the Hon’ble High Court of Madhya Pradesh, Jabalpur and obtainedinterim relief. As per the interim order dated 15/02/2006 the Hon’ble High Court, Jabalpurhad directed the Company not to deposit this tax to the State Government but to keep ina fixed deposit. The matter was later dismissed by the Jabalpur High Court in favour of

137


MP Government. WCL has filed an SLP before the Hon’ble Supreme Court and thematter is still sub judice. The Hon’ble Supreme Court of India vide its order dated 02-08-2010 directed the Company to file its returns for all the years under protest as perMPGATSVA (2005). The Hon’ble Supreme Court directed the assessing officer underthe Act to complete the assessments of returns filed by the Company. In compliancewith the Supreme Court directions the assessing officers raised total demand of ̀ 321.00Crores against the Company upto 31/03/2013. As per legal advice full amount of demandamounting to ̀ 321.00 crores has been paid up to 31.03.2013 and has preferred Appealsagainst the assessment orders with Competent Appellate Authority, Jabalpur and Bhopal.

An amount of ` 357.08 Crores. has been received from customers on this accountupto 31/03/2013 . Term Deposit, against this receipt upto 31st March 2013 (after adjusting` 321.00 Crores paid for appeal), for ` 36.08 Crores has been made upto 31st March2013. The matter is now pending before the Hon’ble Supreme Court and AppellateAuthority Jabalpur . The interest on fixed deposits made on this account is treated as

liability.

b) Pending decision of Hon’ble Supreme Court of India ` 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 (Previous year ̀ 4.52 Crores).

c) By virtue of enactment of Cess and Other Taxes on Mineral Validation Act, 1992, the

Company raised supplementary bills on customers’ upto 4.4.1991. An amount of `

2.96 Crores (Previous Year ̀ 2.96 Crores) has been shown as liability for Cess on Royalty

under the head Current Liabilities & Provisions. In view of the judgment of Hon’ble

High Court, Patna, Ranchi Bench in writ petition no.CWJC/1280 of 1992, the

said Cess is not payable. However a Special Leave Petition is pending in Supreme

Court against it.

d) As per interim orders dated 20.06.2005 and 29.06.2005 of Nagpur Bench of Hon’bleBombay High Court, WCL has made Fixed Deposit in Nationalised Banks for the amountof difference between weighted average of e-auction price and notified price for coalsupplied to the petitioners during the period 01.07.2005 to 31.12.2005. On 12.12.2005,Hon’ble Supreme Court directed to supply coal to petitioners on payment of notifiedprice plus 33.33% of enhanced price and by furnishing security for the balance amountof 66.67% of enhanced price with an undertaking to the Hon’ble Supreme Court thatthe said part will also be paid within 6 weeks of the decision of the apex court in the WritPetitions in case the Writ Petitions are decided against the Petitioners. However, thepetitioners voluntarily deposited with WCL the full value of coal, i.e., notified price plusfull difference between weighted average price and notified price along with a letter ofundertaking. The total amount so deposited by the Customers till 31.03.2007 was` 39.78 crores, which was shown under “Advances and Deposits from Customers”. An

equivalent amount of ` 39.78 Crores was deposited with Nationalised Banks in Fixed

Deposit a/c by the Company. The interest earned on the Fixed Deposits was treated as

a current liability to be adjusted against the actual interest as and when paid to the

customers.

As per the directive of Supreme Court an amount of ̀ 4.04 crores was to be depositedwith the Court and the Company has paid this amount to Coal India Ltd. for depositingwith the Court. This amount is shown as advance deposit inour books.

138


As per the Supreme Court order dated 9th May, 2008, refund claims of the customersare to be verified by a Committee at WCL HQ level and the money is to be refunded tothe claimants directly. Accordingly an amount of ̀ 22.97 crores together with interest of` 4.11 crores has been refunded to the claimants. The total refunds and interest paid till31.3.2013 (including the above refund and interest) are ̀ 39.29 crores and ̀ 7.60 croresrespectively.

Considering the refunds made to the customers and the amount paid to CIL, there is noFixed Deposit on this account as on 31st March 2013

e) The Company had approached MSRDC to construct a bridge over Wardha River near

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 into with MSRDC

on 23.12.1997 for construction of the bridge and a loan of ̀ 2.35 Crores was agreed to

be given by WCL to MSRDC, against which a loan of `1.13 Crores, carrying a simple

interest @ 9% p.a. was given to MSRDC in 1997-98. The bridge is currently being used

to transport coal across Wardha River. The loan is to be 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 been released as WCL wants to establish a

time bound schedule for repayment of the loan and interest thereon. Negotiations have

been initiated with MSRDC for this purpose.

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 `1.01Crores) exists ason 31.03.2013. In view of this, since the year 2010-11, the interest amounting to ̀ 0.10Crores per year on this advance has not been recognised as income and also no

further provision was necessary during the year.

f) Report of the Tripartite Committee, comprising of Subsidiary/Mine Management,

CMPDIL and Explosive Manufacturers, set up to finalise the benchmark powder factor

of each mine for the period 2005-06 and April’06 to July’06, is still awaited. It has beendecided by CIL that Subsidiary Management shall review the impact of considering thepowder factor of 2003-04 and 2004-05, whichever is higher vis-à-vis actual achievedduring 2005-06 and submit the Company’s view through CMD to CIL. This review isyet to be finalized. As such no recovery has been made from bills for supply of explosivesduring that period. Pending finalization of the issue, the Bank Guarantees submittedby the suppliers is not released by CIL. Subsequent supplies are covered by new ratecontracts which specify that recovery on account of powder factor is to be adjustedafter final powder factor reports are received from the Areas on quarterly basis. Pendingreceipt of final reports for quarter ending March 2013 the deduction of ` 2.23 Croresduring current year is appearing as a liability (P.Y. 1.01 Crores). Accordingly, theexpenditure on account of explosive consumption has not been adjusted since theamount is not ascertainable.

g) During the year 1993-94 a suspected fraud case was detected at Nandgaon Incline ofChandrapur Area, quantified by the Internal Audit Department to the tune of ` 0.12Crores and the same is under CBI investigation. An amount of ̀ 0.02 Crores has beenrecovered from the party and credited to income. For the balance of ̀ 0.10 Crores therecoverable figure is matched with a similar provision.

139


h) During the year 1995-96, a theft case at CWS Stores was suspected and policecomplaint was lodged. A department enquiry is also under progress. During thecourse of such enquiry many kardex were seized/taken out of investigation. Pendingfinal outcome of the enquiry, the workshop continues to maintain a provision of ` 0.14Crores.

i) In case of land in Chandrapur/Ballarpur/Wani/Nagpur Areas , a common judgementwas pronounced on 05.01.2009 by Hon’ble Bombay High Court in Non-Agriculturalassessment cases. Accordingly, there is a contingent demand of land revenue, ZP/GPTaxes and additional taxes for the period from 1980 to 2009 to the tune of ` 62.04 crores.However, the Company has filed a Leave Petition before the Divisional Bench of BombayHigh Court, on behalf of the Areas on the ground that such taxes are not payable onlands acquired under Coal Bearing Area Act.

j) The Company had preferred appeals in cases of Income Tax and Sales Tax 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.

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, (six parties) 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 account (Liability Code 480199) since 2008-09,

pending final disposal of the case by the Court.

l) During the year the life of Photocopier Machine has been considered 9 years as against

20 years as advised by CIL vide letter no.CIL/C-3(A)/31073/1128, dated 21.03.2013.

Due to this change an additional amount of `‘0.07 crores has been charged to the

Statement of Profit and Loss during the year.

140


m) Prospecting Boring and Development expenses amounting to ` 183.51 crores along

with provision for depreciation have been taken out from accounts during the year after

expiery of two years, following the year in which these are fully amortised.

n) As on 31st March 2013, a difference in book stock and measured stock has been

reported for Shivdpuri Mines which is beyond the permissible norms of +/-5%. The

details of the variation is as below:

As per Accounting policy of the Company the measured stock of Shivpuri OC is

considered for valuation of closing stock of Coal as on 31.3.2013.

o)The Board of Directors of WCL in it’s 245th meeting held on 2 0th March 2013approved the revision of Standard Ratio of following Opencast Mines. Due to thisrevision the profit of the Company has increased by ` 337.54 Crores. Theminewise details are as under:

p) Impact of e-auction for the year 2012-13 and price revision w.e.f 21.06.2012 are as

follows:

` in Crores

Name of Mine Book Stock(M.T.) Measured Stock (M.T) Difference (M.T.) Percentage Financial Impact

( `in Crores)

Shivpuri OC 53,380.340 35,777.455 -17,602.885 -32.98% 2.81

S.no. Name of Mines Old Standard Revised Standar Increase in Profit

(Coal:OB) Ratio (Coal:OB )Ratio ( ` In Crores)

1 Sasti OC 4.68 5.03 (-) 15.92

2 Gauri OC 4.60 2.46 58.92

3 Durgapur OC 6.51 4.50 171.49

4 Padmapur OC 3.73 3.01 23.66

5 Mungoli OC 4.01 0.35 179.11

6 Ghugus OC 3.54 2.00 16.46

7 Naigaon OC 5.56 6.48 (-) 16.07

8 Neeljai OC 3.18 3.83 (-) 35.11

9 Ukni OC 2.82 4.57 (-) 68.85

10 Kolarpimpri OC 7.15 7.56 (-) 2.47

11 Gondegaon OC 5.26 4.56 26.09

TOTAL 337.31

Impact of Price Revision

E-auction w.e.f 21.06.2012

Net Sales 446.43 256.11Taxes / levies 125.29 69.51

Gross Sales 571.72 325.62

141


q) The position of major provisions as on 31st March 2013 are given below:

7. COMPLIANCE WITH MANDATORY ACCOUNTING STANDARDS:

i. Prior period adjustments (AS-5) :

The Income/expenditures pertaining to previous years which do not exceed ̀ 0.10 Crores

in each case are treated as income /expenditure of current year. The impact of this on the

profit of the Company for the year is reduction in profit to the tune of ` 0.02 Crores (P.Y. ` 0.12

Crores for P.P Income/expenditure less than ̀ 0.05 crores in each case).

ii. Employee Benefits under AS-15 :

The Company has adopted AS 15 (Revised) - Employee benefits with effect from 1st April,

2007. Pursuant to the same, the Company has adjusted the additional liability arising on

adoption of AS-15 (Revised), net of related deferred tax assets arising out of such adoption

as on 1st April, 2007 against the General Reserves.

(` Crores)

Sl. no. Provisions Opening

balance as on

01.04.12

Addition

during the

period ended 31.03.13

Payment/Wr

ite back /adj. during

the period ended 31.03.13

Closing

balance as on

31.03.13

i For proposed Dividend 184.04 194.60 184.04 194.60

ii For Corporate dividend tax 29.86 33.07 29.86 33.07

iii For Gratuity (as per actuarial value)

484.78 208.69 484.78 208.69

iv For Leave encashment 345.54 55.84 - 401.38

v For post retirement medical

benefits

7.35 100.45 - 107.80

vi For other Employee benefits 212.82 31.69 - 244.51

vii For Income Tax 1101.03 247.05 427.74 920.34

viii OBR Adjustment Account 1986.37 279.96 - 2266.33

ix Provision for Mine closure 486.76 244.94 167.25 564.45

x Bad & Doubtful Debts 119.08 0.34 39.03 80.39

xi Provision for doubtful advances and claims

12.41 0.08 0.01 12.48

xii CWIP 13.93 0.07 5.11 8.89

xiii Other Provisions- Impairment of Fixed Assets

104.01 12.62 14.86 101.77

145


` 0.19 crores in the name of Sri B.K.Saxena, Director(Tech.), is transferred to CIL on

his transfer to CIL during the year.

However, the gross salary does not include the provisions for contribution to Gratuity,

Leave encashment and other employee benefits, which are made on the basis of

actuarial valuation, done on an overall Company basis.

3. In view of the exemption granted to State controlled enterprises as regards relatedparty relationship with other State controlled enterprises and there being no transactionwith other related enterprises & parties, no disclosure under the Accounting Standard(AS-18) on Related Party Disclosures is made, being not applicable for the Company.

v. Disclosure of Earning per Share as required under AS-20 :

vi. Accounting for Taxes on Income under AS-22

The deferred tax asset as required under AS-22 comprises of the following:

Particulars Current Year Previous

Year

i) Profit After Tax (` Crores) 324.30 306.71

Less : Preference Dividend 0.00 0.00

ii) Profit attributable to Ordinary Shareholders (` Crores) 324.30 306.71

iii) No. of Ordinary Shares (in Nos.) for basic and diluted

EPS

29,71,000 29,71,000

iv) Nominal value of Ordinary Shares ` 1000.00 ` 1000.00

v) Basic & Diluted Earning per Ordinary Share `1091.55 ` 1032.35

DEFERRED TAX ASSETS/LIABILITY

Deferred Tax

Asset/Liability

as on 31.03.2013

Deferred Tax

Asset/Liability

as on 31.03.2012 A Deferred Tax Liabilities- Depreciation 60.86 56.45 B Deferred Tax Assets

VRS 0.41 0.65 Statutory Dues 2.55 2.34 Provision for Doubtful Debts 27.32 38.63 Provision for Doubtful Advances 2.18 2.09 Provision for Leave Encashment 136.43 112.11 Provision for Obsolescence/ workshop WIP 7.80 4.55 Provision for Claims 2.06 1.94 Provision for Shortage of Stores 0.52 0.49 Land Reclamation Provision 191.86 157.93 Disallowance u/s 40(a) of I.Tax Act 6.33 4.23 PLRS / PLBS & PRP 132.79 93.65 MP Gramin Tax 9.30 22.11 Actuarial provision for other employee benefits 119.75 71.45 TOTAL 639.30 512.17

Deferred Tax Assets (net) (B-A) 578.44 455.72

(` Crores)

(` Crores)

(` Crores)

(` Crores)

146


vii. Consequent to mandatory provisions of AS-24 relating to Discontinuing Operations w.e.f.

01.04.2004, the following disclosures are made:

a) Commercial Blast Explosive (CBE) Plant, Bhandara : The Plant used to manufacture Nitro-

Glycerine based Permitted Explosives used in the underground mines of the Companytill 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 bythe Board of Ordnance Factories of India, the Jt. Venture partner of the Plant, the Plant

was closed on and from 28.04.2003.

CIL had given its approval for disposal of the Plant and the Company in its 197thBoard

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 assetspending disposal is `0.08 Crores.The liability towards Overheads after closure of the

Plant till 31.03.2013 for maintenance and upkeep of the Plant is ̀ 0.40 Crores.

The revenue expenses incurred during the current year is ̀ NIL Crores (Previous Year ̀NIL) Since the Plant works on No-Profit-No-Loss basis, all expenses are passed on to

the Areas. Hence there is no question of profit/loss. There is a ` NIL Crores cashoutflow attributable to operating, investing and financing of discontinuance (Previous

Year ̀ NIL)

b) Domestic Fuel Development (DFD) Plant, Hinganghat : The Plant used to manufacture CoalBriquettes from raw coal for domestic fuel purposes till its closure in 1994. Consequent

upon non-viability of the Plant as per the decision of the Board of the Company, the Plantwas closed in 1994.

The disposal of the Plant is under process and the exact date of completion of discontinuanceis not determinable as of now. The Net Block of assets pending disposal is ̀ 0.03 Crores

and the liability towards Municipal Taxes is ̀ 0.04 Crores . The Company has applied to theHinganghat Nagar Palika for waiver of the Municipal Taxes for the past four years on the

ground that the Plant is no more in operation. The revenue expenses incurred during thecurrent year is ̀ 0.01Crores (Previous Year ̀ 0.01 Crores). Since the Plant is in-operative

for the past ten years and the final disposal of the Plant is yet to be done. There is nocash outflow attributable to operating, investing and financing of discontinuance.

viii. 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 eachBalance 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 recongnised unless Asset is obsolete or damaged.

In respect of prospecting & Boring and Development Expenses in continuous loss makingmines, have been considered for impairment, provided there is no clear indication for its

revival in near future.

147


During the Current Year an amount of ` 7.51 Crores has been charged to Statement ofProfit and Loss as impairment loss against P & B, Development Expenditure (DE) and

Plant & Machinery in the current year (P.Y. ̀ 5.00 Crores)

ix. Provisions, Contingent Liabilities and Contingent Assets AS-29

As per directives of Coal India Ltd. provision for Mine Closure in the books is made from the

year 2010-11 on the basis of guidelines of Ministry of Coal circulated vide letter no. 55011/1/2009 - CPAM dated 27.08.09.

During the year, Mine closure plan(MCP) for 63 Mines have been submitted by C M P D I L

and approved by WCL Board. As per such approved MCP's cumulative provision of Rs.401.00 crores is required as on 31.03.2013, against this an amount of Rs.325.58 crores is

apperaing in provision for MCP in the books of company as on 31.03.2012. Consequently

balance provision of ̀ 75.42 crores is made during the year for the said mines.

For rest of the Mines, where no approved Mine closure plan is available, an amount of Rs.

2.27 crores has been charged. Net debit to the Statement of Profit and Loss ofthe currentyear is ̀ 77.69 Crores. Necessary differential provision, if any require, will be made/adjusted

on approval of MCP by WCL Board.

8. CONSISTENT METHOD OF ACCOUNTING :

As per consistent policy of the Company, the following methods of accounting continue to be invogue:

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 InputTax 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) Subsequent expenditure on Prospecting & Boring and Development in respect of revenuemines which has come to revenue are amortised over 20 years or balance life of the Project

whichever is earlier.

c) 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 ondate of D-Note (Forwarding Note to Railways) and Cash Sales are recognised upto despatches

as of 24:00 hrs. on 31st March.

148


d) Foreign Currency Transactions:

i. 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 applyingthe closing rates.

ii. 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 Statementof Profit and Loss.

e) 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 / receivablefor revenue nature transaction in Current Account is shown under current liabilities / current

assets.

f) Apex Office Charges and Interest to Holding Company.

i. Apex office charges as charged by Holding Company is allocated to revenue mines on thebasis 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 Assetsprocured against specific loan) at the beginning of the year.

g) Own consumption of coal is valued at basic price of declared grade of coal of the related

mines.

h) Production of Coal is derived from records of dispatches billed, internal consumption,openingand closing stock and are further certified by CIL Team.

i) Joint reconciliation with major Sundry Debtors (Power Houses and SAIL) have been

completed up to 31st December 2012. j) Confirmation from major Sundry Creditors are under process.

9. CHANGES IN ACCOUNTING PILICY:

The following changes have been made in the Accounting policy of the Company inthe current

year as advised by CIL, Kolkata vide letter no. CIL/C-3(A)/31073/1128, dated 21.03.2013:

a) The income/expenditure relating to prior period which do not exceed ̀ 0.10 Crores in each

case (up to 31.3.2012 the amount was ` 0.05 Crores in each case) are treated as income/expenditure of current year. As a result an a dditional amount of ̀ 0.02 Crores is debited to the

Statement of Profit and Loss which resulted in decrease in profit to that extent.

b) Prepaid expenses which do not exceed ̀ 0.10 Crores in each case are treated as expenditure

of current year. The profit for the current year is reduced by ̀ 0.95 Crores.

149


10. OTHERS:

a) CIL has been levying additional Apex Charges @ ̀ 6.00 per ton of coal dispatch to meet therehabilitation & fire fighting expenses of Jharia and Raniganj areas of BCCL/ECL. An amount

of ` 24.93Crores (Previous year ` 25.18 Crores) has been charged to P&L A/c on this

account.

b) As advised by CIL vide letter dated 5.03.2013, assessable value for the purpose of computing

Central Excise Duty (C.E.D.) should also include Royalty and Stowing Excise Duty w.e.f.1.03.2011. In view of this, supplementary billing for C.E.D. w.e.f 1.03.2011 to 28.02.2013 was

raised and the payment was made to the Department , under protest. The regular billing w.e.f.01.03.2013 is being done. The details of payment made are as under:

The liability for Central Excise Duty (CED) on closing stock of coal has been calculated

considering Royalty and S.E.D in assessable value. However value of opening stock

does not include the C.E.D. on Royalty and S.E.D.

c) Figures of previous year have been regrouped/rearranged wherever necessary.

d) Notes 1 to 32, Significant Accounting Policies and Additional Notes on Accounts inNotes 33 & 34 form integral part of these Accounts.

March 2011 April 2011 to

March 2012

April 2012 to

February 2013

Total amount

(` in Crores)

3.03 34.60 50.68 88.31



(DIN-02841938) (DIN-00267658)




Place : Nagpur

Date :


(M.No. 039763)

(` Crores )

150


NOTE 34 (A)

NOTES PROVIDING STATUTORY INFORMATION

1. CONTINGENT LIABILITIES

Claims against the Company not acknowledged as debts as on 31st March 2013, amounting

to ̀ 3141.84 Crores (Previous Year ̀ 968.32 Crores), include:

a) Claims under Income Tax, Sales Tax, Service Tax and other Acts:

i. Demand notices from Income Tax authorities for ̀ 323.93 Crores towards Corporate

Tax and ` 3.13 Crores towards Tax on perquisites to employees.

ii. Demand notices from Income Tax authorities for ` 0.74 Crores under section 194 J

rws 201(1)of the Income Tax Act. 1961.

iii. Demand raised by District Revenue Authorities on account of Surface Rent ` 9.01

Crores and Non-Agricultural Assessment Tax of ` 61.14 Crores, Cess on Royalty

`0.58 crores, Central Excise Duty Demand A/C Royalty/SED ̀ 2182.93 Cr. and Gram

Panchayat Tax ` 0.86 crores.

iv. Demands raised by Sales Tax Authorities on account of Sales Tax amounting to

` 82.62 Crores.

v. Demands raised by Sales Tax Authorities on account of Entry Tax amounting to

` 96.37 Crores on HEMM and `1.39 Crores on coal.

vi. Demands raised by Service Tax Authorities on account of Service Tax amounting to

`130.50 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 ̀ 102.33 Crores.

ii. Claims by employees towards remuneration related cases amounting to ̀ 5.72 Crores.

iii. Claims by Contractors & others pending decision by Arbitration/ Courts `127.93

Crores.

iv. Claims by customers ̀ 11.63 Crores.

v. Claims by Railways for Siding maintenance Charges ̀ 1.03 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) Letters of Credit and Bank Guarantees:

i. Letters of Credit outstanding as on 31st March, 2013 amounting to ` 9.45 Crores.

ii. The Company has issued Bank Guarantees amounting to ` 2.81 Crores (Previous

Year ̀ 1.18 Crores) in favour of Maharashtra Pollution Control Board.

2. CAPITAL COMMITMENT

The estimated amount of contracts remaining to be executed on Capital and Revenue

Account and not provided for in the Accounts are ` 376.36 Crores (Previous Year ` 82.19

Crores) and ` 639.13 Crores (Previous Year ` 822.50 Crores) respectively. .

151


( A ) COAL : OPENING STOCK :

2012-13 Previous Year (2011 -12)

Qty '000 MT Value ` Crores Qty '000 MT Value ` Crores

Raw Coal (Revenue Projects) 5093.42 476.1688 3856.30 340.6033

Raw Coal Stock brought to Revenue 0.0 0.00 94.47 11.1636

Washed Coal 0.85 0.3641 0.47 0.1658

Middling 0.42 0.0597 1.81 0.2359

Slurry 98.00 11.5508 70.35 8.2115

5192.69 488.1434 4023.40 360.3801

PRODUCTION :

2012-13 Previous Year (2011 -12)


Raw Coal (Revenue Projects) 42264.14 43109.93

Raw Coal (Development Projects) 22.80 0.00

Washed Coal 144.54 136.48

Middling 102.05 96.65

Slurry 34.12 36.14

42567.65 43379.20

TURNOVER :

2012-13 Previous Year (2011 -12)


Raw Coal(Revenue Projects) 41257.95 6611.5872 41689.52 6660.7401

Raw Coal (Development Projects) - - - -

Washed Coal 144.96 74.8328 136.10 73.9342

Middlings 101.46 15.2792 98.04 14.1417

Slurry Coal 20.84 3.4500 8.49 1.1974

41525.21 6705.1492 41932.15 6750.0134

Internal Consumption 6.94 1.2937 7.76 1.9128

Issued for Process in Washery 281.40 44.3137 270.00 40.6751

288.34 45.6074 277.76 42.5879

3. Details of Opening Stock, Production, Turnover and Closing Stock.

152


CLOSING STOCK :

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 stock of 216.210

etrictonne of DFDP, Hinganghat.

(B) BRIQUETTE AT DOMESTIC FUEL PLANT, HINGANGHAT :

4. INSTALLED/LICENSED CAPACITY:

(a) COAL : Not Applicable.

(b) BRIQUETTE: At Domestic Fuel Plant, Hinganghat : Not applicable since

plant closed in 1994

2012-13 Previous Year (2011-12)

Qty '000 MT Value ̀ Crores Qty '000 MT Value ̀ Crores

Raw Coal (Revenue Projects) 5811.27 568.3339 5093.42 476.1688

Raw Coal (Dev. Projects) 22.80 5.4451 0.00 0.00

Raw Coal Shortage (Shivpuri OC) 17.60 2.8064 0.00 0.00

Net Raw Coal (Revenue Projects) 5793.67 565.5275 5093.42 476.1688

Washed Coal 0.43 0.2053 0.85 0.3641

Middling 1.01 0.1469 0.42 0.0597

Slurry 111.28 13.2295 98.00 11.5508

5929.19 584.5543 5192.69 488.1434

2012-13 Previous Year (2011-12

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

(` Crores )

(`)

(`)(`)(`)

153


5. C.I.F. VALUE OF IMPORTS :

6. VALUE OF THE IMPORTED & INDIGENOUS STORES AND SPARE PARTS

CONSUMED:

2012-13 Previous Year

(2011-12)

( ` in Crores) % ( ` in Crores) %

Imported 3.58 0.36 6.94 0.75

Indegenous 994.66 99.64 913.32 99.25

Total 998.24 100.00 920.26 100.00

(` Crores) (` Crores)

2012-13 Previous Year (2011-12)

( ` in Crores) ( ` in Crores)

Components, Stores & Spare Parts 3.00 7.14

Expenditure incurred through Holding Company,Coal India Limited

0.84

1.88

TOTAL 3.84 9.02

( ` Crores)( ` Crores)

154


155


156




(DIN-02841938) (DIN-00267658)




Place : Nagpur

Date :


(M.No. 039763)

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