Permanent Invitee:Shri A.K. GuptaChief Operations Manager, Eastern Railway
COMPANY SECRETARY:Shri V.R. Reddy
ANNUAL REPORT 2014-15
2
BANKERS DURING 2014-15
State Bank of India Axis Bank Bank of BarodaUnited Commercial Bank Union Bank of India United Bank of IndiaOriental Bank of Commerce Canara Bank Bank of IndiaPunjab National Bank
STATUTORY AUDITOR DURING 2014-151. M/s. M Choudhury & Co., 162, Jodhpur Park, Kolkata-700068.
BRANCH AUDITORS DURING 2014-152. M/s U S Saha & Co., 228 Kamalalaya Centre, 2nd Floor, 156 A Lenin Sarani, Kolkata-700013.3. M/s R. P. Boobna & Co., Karnani Estate, 209, AJC Bose Road, 2nd Floor, Room No. 87, Kolkata - 700017.4. M/s L B Jha & Co., GF-1, Gillander House, 8, Netaji Subhas Road, Kolkata- 7000015. M/s U S Saha & Co., 35, Bahir Sarbamangla Road, Burdwan-7131016. M/s Roy Ghosh & Associates, 39, Kalna Road, Badamtala, Burdwan-713401
COST AUDITORS DURING 2014-151 M/s B.G. Chowdhury & Co., Sree Appartments, 4A, 11/47A, Panditya Road, Kolkata-7000292 M/s Mani & Co., Ashoka, 111, Southern Avenue, Kolkata-700029,3 M/s Datta Ghosh Bhattacharya & Associates, 37, Gobindo Bose Lane, Kolkata-7000254 M/s M.G. & Associates, Punjabi Para, RN Road, Burnpur, Asansol, Dist.: Burdwan-7133255 M/s Basu Banerjee Chakraborty Chattopadhyay & Co., 42/B, Shibtala Street, Hooghly-7122586 M/s ATM & Associates, 36/1, Block A, Bangur Avenue, Kolkata-700055
INTERNAL AUDITORS DURING 2014-151. M/s Abhijit Dutta & Associates, 8/2 Kiran Shanker Roy Rd, Room-2&3, 2nd Floor, Kolkata-700001.2. M/s D N Dokania & Associates, 103A, Shanti Bhawan, Bank More, Dhanbad-826001.3. M/s S.K. Mallick & Co., Bikaner Bldg., 8-B Lal Bazar Street, 1st Floor, Room-2, Kolkata-700001.4. M/s Mitra Ghosh & Roy, Room No.-5, 33/B, Lake Avenue, Kolkata-700026.5. M/s K.L. Banerjee & Co., Hastings Chambers, 7C, Kiran Shanker Roy Rd., Kolkata-700001.6. M/s S.K. Bhattachariya & Co., 4, Kiran Shanker Roy Rd., Raja Chambers, Kolkata-700001.7. M/s Amit Ray & Co., 5-B Sardar Patel Marg, Allahabad-211001.8. M/s A.J.S & Associates, 55-B, SP Mukherjee Rd., 1st Floor, Near Hazra Crossing., Kolkata-700026.9. M/s N.C. Mittal & Co., Behl House, 13, Daryaganj, New Delhi-110002.10. M/s H.P. Jhunjhunwala & Co., 907, Marshal House, 33/1 NS Road, Kolkata-700001.11. M/s P.D. Rungta & Co., 21, Hemanta Basu Sarani, 3rd Floor, Room No.-317, Kolkata-700001.12. M/s SBA Associates, 27, Mirza Ghalib Street, 5th Floor, Kolkata-700013.13. M/s K.N. Jain & Co., 2, Lal Bazar Street, 2nd Floor, Room No.-204, 205, Kolkata-700001.14. M/s G G M & Co., 503, Parnasree, RIC More, Kolkata-700060.15. M/s A.R. Maiti & Co., Centre Point, Room-442, 21 Old Court House Street, Kolkata-700001.
REGISTERED OFFICE OF THE COMPANYCMD's Office, Sanctoria, Post - Dishergarh, District - Burdwan, Pin - 713333
MISSION STATEMENTTo produce and market the planned quantity of coal and coal products efficiently and economically in an eco-friendlymanner with due regard to safety, conservation and quality.
VISION STATEMENTTo emerge as a global player in the primary energy sector committed to provide energy security to the country by attainingenvironmentally & socially sustainable growth through best practices from mine to market.
EASTERN COALFIELDS LIMITED
3
Eastern Coalfields LimitedOffice of the Chairman-cum-Managing Director
Notice is hereby given that the Fortieth Annual General Meeting of the Shareholders of Eastern Coalfields Limitedwill be held on Saturday, the 27th June, 2015 at the Registered Office of the Company at Sanctoria, P.O.Disergarh-713333, Dist.-Burdwan (West Bengal) at 11:00 A.M. to transact the following businesses.
ORDINARY BUSINESS:1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2015, Profit and Loss
Account for the financial year ended on that date together with the Reports of Statutory Auditor & Comptroller& Auditor General of India and Directors’ Report.
2. To appoint a Director in place of Shri Subrata Chakravarty (DIN-02586945), Director, who retires by rotationin terms of Section 152(6) of the Companies Act 2013 and being eligible, offers himself for reappointment.
3. To appoint a Director in place of Shri K.S. Patro (DIN-06739224), Director, who retires by rotation in termsof Section 152(6) of the Companies Act 2013 and being eligible, offers himself for reappointment.
Dated: June 5, 2015
Registered Office:Eastern Coalfields Limited,Sanctoria, P.O. Dishergarh,Distt. Burdwan (West Bengal),PIN: 713333.
Notes : (i) A member entitled to attend and vote at the Annual General Meeting is entitled to appoint a proxy toattend and vote instead of himself and the proxy need not be a member of the Company. In order tobe effective , the Proxy form duly completed should be deposited at the registered office of thecompany not less than forty-eight hours before the scheduled time of the Annual General Meeting.
(ii) Pursuant to Section 139(5) of the Companies Act, 2013, the Auditors of a Government Company areto be appointed or re-appointed by the Comptroller and Auditor General of India (C&AG) and in termsSection 142(1) of the Companies Act, 2013, their remuneration has to be fixed by the Company inthe Annual General Meeting or in such manner as the Company in General Meeting may determine.The Members of your Company in its 8th Extra Ordinary General Meeting held on 30th July, 2001authorised the Board of Directors to fix the remuneration of Statutory Auditors.
Copy to :a. M/s M. Choudhury & Co., Chartered Accountants, Statutory Auditors
162, Jodhpur Park, Kolkata-700068
b. M/s. Mitul Jain & Associates, Company Secretaries, Secretarial Auditors3, Maharshi Debendra Road, 3rd Floor, Kolkata-700007
c. All Directors, Eastern Coalfields Limited
By order of the Board
(dr.Ama. aoÈ>r) / (V. R. Reddy)
_hmà~§YH$ ({dÎm)/H§$nZr g{MdGeneral Manager (Finance) / Company Secretary
Ref.No. ECL:CS: 15(2015)/2242 5th June, 2015
ANNUAL REPORT 2014-15
4
CHAIRMAN’S STATEMENT
Friends,
I have immense pleasure in welcoming you to the 40th Annual General Meeting of Eastern Coalfields Limited. TheDirectors’ Report, audited accounts for the financial year 2014-15 together with the report of Statutory Auditorsand the report and review of the Comptroller and Auditor General of India, are already with you.
1. Energy is one of the major inputs for economic development of any country, and coal dominates theenergy mix in India, contributing over 52% of the country’s energy need. Today the Indian economy is inacute need of energy. Our company produces one of the best qualities of Non-Coking Coal which catersto the needs of various power plants, cement factories etc.
2. The strategic vision of the company is to emerge as a global player in the primary energy sector committedto provide energy security to the country by attaining environmentally & socially sustainable growththrough best practices from mine to market.
3. With an overall astounding performance, ECL has been able to come out of BIFR during the year 2014-15.The company reported a positive networth of `916.87 crore as on 31.12.2014 and accordingly BIFRdeclared ECL as no longer sick company within the meaning of Section 3(1) of SICA.
4. ECL has surpassed all physical parameters in the year 2014-15. ECL has produced 40.006 Mt Coal. ECLhas surpassed the target of 38.00 Mt with a growth rate of 10.99 % over last year. The Company hasachieved ever highest OB removal to the tune of 94.047 Million Cum which is 106.89 % of the AnnualTarget with a substantial positive growth of 9.66 % over last year.The UG production has recorded aphenomenal growth of 6.13 % over last year after a long gap. With the introduction of mass productiontechnology by deploying Continuous Miner and Power Support Longwall etc in Jhanjra and other mines,the underground coal production will continue to improve in the coming years.
5. ECL has despatched 38.469 MT Coal (101% of target) during 2014-15 with a positive growth of 6.11% overlast year.
6. In 2014-15, projects namely UCE of New Kenda OC, UCE of Jhanjra Low Height CM and RCE of KhottadihOCP were approved by the Board.
7. During the year 2014-15, 2 (two) projects namely Kumardih-B CM and New Kenda OC were approved bythe Board of Directors of Coal India Limited.
8. Highwall Mining Technology is proposed to be introduced in Sripur and Nimcha Project. Continuousefforts are being made to enhance the coal production from underground mines. As on 31.03.2015 215
EASTERN COALFIELDS LIMITED
5
Nos. of SDLs, 27Nos. of LHDs and 70 Nos. of UDMs are in operation in different underground mines ofECL.
9. The impact on the environment due to extraction of coal is being monitored constantly by our Companyand adequate measures are undertaken for control of Air, Water & Noise Pollution, Land degradation,Deforestation etc. These measures are being undertaken in accordance with the provisions of all statutorynorms, Acts and Rules on a regular basis. During 2014-15 we planted 66500 Nos. of trees/sapling coveringan area of 35 Ha.
10. We have also committed for sustainable development and CSR activities in villages around ECL commandarea by providing drinking water, improving educational facilities and health care etc. During the year
` 2485.68 lakh (approx.) was spent on Sustainable Development, Welfare and CSR activities. We havealso committed to construct/repair 3488 toilets in various schools under Swachh Bharat Mission (SwachhVidyalaya Abhiyaan) at an approximate cost of `82.92 crore.
11. We have always given the highest priority towards safety, which is considered as a part of core productionprocess in ECL. To improve the safety standards, ECL has vigorously pursued several measures duringthe year.
12. As required under Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs)issued by the Department of Public Enterprises, Government of India a separate section on CorporateGovernance has been added in the Directors’ Report and a Compliance Certificate has been obtainedfrom the statutory auditors.
13. We are committed to produce more than 42 MT coal during 2015-16 and confident that ECL will marchahead in the times to come.
I express my sincere thanks to Coal India Limited, Ministry of Coal, other Central Government Ministries andDepartments, State Governments, Railways, Bankers, all employees, Trade Unions, consumers, suppliers otherstake holders for their unstinted support and relentless co-operation.
Gentlemen,I, on behalf of the Board of Directors, have pleasure in presenting the 40th Annual Report on the working
of your Company together with audited accounts for the year ended 31st March, 2015, report of the StatutoryAuditors and Management’s reply thereon as well as the comments of the Comptroller and Auditor General of Indiaon the audited accounts.
Special Achievements:a. Eastern Coalfields Limited came out of purview of BIFR during the financial year 2014-15.b. Eastern Coalfields Limited is the only subsidiary of CIL which has surpassed the targets for all the key
physical parameters as well as sales realization with substantial positive growth. All these achievementsare ever highest since inception of the company.
c. ECL is the only subsidiary of CIL which not only achieved the target for underground coal production, buthas also registered positive growth of more than 6%.
d. ECL has obtained environment clearance for almost all mines which were taken over at the time ofnationalization through cluster concept.
e. Different mines of Eastern Coalfields Limited have received 7 awards from Hon’ble President of India duringNational Mines Safety Award Ceremony.
f. ECL received 2nd Prize from Hon’ble President of India for its contribution in use of Hindi in “C” category.g. Eastern Coalfields Limited was awarded 1st prize for commendable job done for working women through
WIPS amongst Non-Navratna/Maharatna PSUs.h. ECL won the 1st prize in the inter subsidiary athletic tournament, cricket tournament and cultural meet.
1.0 PRODUCTION:1.1 Production performance of the Company in 2014-15 against the target as well as compared to last year
was as under:
Particulars Unit 2014-15 2013-14
Target Actual Achieved Actual Absolute % (%)
1. Production : M.Te.i) Raw Coal - UG 7.25 7.292 100.57 6.871 0.421 6.13 - OC 30.75 32.714 106.39 29.175 3.539 12.13 Total 38.00 40.006 105.28 36.046 3.960 10.99
2.1. Gross sales turnover for the year ending 31st March, 2015 was ` 13413.84 crores compared to` 11945.92 crores in the previous year resulting in increase of 12.29% over previous year. During the yearunder review, company had made a pre-tax profit of ` 1782.41 crore and a Post-tax Profit of `1139.40crore compared to last year’s pre-tax profit of ` 1299.28 crore and post-tax profit of `872.23 crore.
Details were as under: (` in Crore)
Particulars 2014-15 2013-14
Profit(+)/Loss(-) after charging all expenses but before PRP /
Profit (+)/Loss (-) for the year after charging interest and
depreciation, impairment and OBR Adjustment. 1780.23 1302.64
Less: Prior Period Adjustment. –2.18 3.36
Net Profit (+)/Loss (-) after considering Prior Period Adjustment. 1782.41 1299.28
Cash Profit 2539.88 1518.43
Profit after Tax 1139.40 872.23
2.2 Capital Expenditure :
Total Capital Expenditure during the year under review was `686.69 crores (Excluding exchange fluctuation)
against the Capital Expenditure of `408.87 crores during 2013-14.
ANNUAL REPORT 2014-15
8
2.3 Capital Structure :
(` in Crore)
Particulars 2014-15 2013-14
A. SHARE CAPITALi) Authorized Share Capital (2,50,00,000 Eq. shares of `1000 each & (2,10,00,000 Preference Shares of ` 1000 each) 4600.00 2500.00ii) Paid up Equity Share Capital (2,21,84,500 shares of ` 1000 each) 2218.45 2218.45iii) Paid up 6% non-convertible, cumulative, redeemable Preference Shares, fully paid up (20509700 shares of ` 1000 each) 2050.97 ---B. LOAN FUNDS:i) Coal India Limited (Holding Company) -- 518.97ii) Export Development Corporation, Canada. 170.21 168.07
2.4 Repayment of Foreign Loan : (` in Crore)
Particulars 2014-15 2013-14
Repayment of foreign loan through CIL. 5.75 5.74
2.5 Payment/Adjustment of Royalty, Cess, Stowing excise duty & Sales Tax during the year:
( in Crore)
2.6 Directors' Responsibility Statement :
Pursuant to sub-section (5) of Section 134 of the Companies Act, 2013 the Board of Directors of theCompany hereby state and confirm that:-
a. in the preparation of the annual accounts for the year ended 31st March 2015, all the applicableaccounting standards were followed with proper explanation relating to material departures;
b. the Directors had selected such accounting policies and applied them consistently and made judgmentsand estimates that are reasonable and prudent so as to give a true and fair view of the state of affairsof the company at the end of the financial year and of the Profit/Loss of the company for that period;
`
Particulars
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
Royalty on Coal
RE & PE Cess
AMBH Cess
PW & Road Cess
Sales Tax (VAT/CST)
Stowing Excise Duty
Clean Energy Cess
Excise Duty on Coal
12.29
1411.72
1.69
1.74
283.71
--
--
--
1711.15
320.47
--
--
--
79.72
--
--
--
400.19
--
--
--
--
--
38.44
307.78
565.40
911.62
332.76
1411.72
1.69
1.74
363.43
38.44
307.78
565.40
3022.96
11.80
1455.22
1.62
1.62
313.55
--
--
--
1783.81
300.65
--
--
--
68.06
--
--
--
368.71
--
--
--
--
--
35.78
189.55
547.20
772.53
312.45
1455.22
1.62
1.62
381.61
35.78
189.55
547.20
2925.05TOTAL
EASTERN COALFIELDS LIMITED
9
c. the Directors had taken proper and sufficient care for the maintenance of adequate accounting recordsin accordance with the provision of the Companies Act, 2013 for safeguarding the assets of thecompany and for preventing and detecting fraud and other irregularities;
d. the Directors had prepared the annual accounts on a going concern basis;
e. the Directors had laid down internal financial controls to be followed by the company and that suchinternal financial controls are adequate and were operating effectively; and
f. the Directors had devised proper systems to ensure compliance with the provisions of all applicablelaws and that such systems were adequate and operating effectively.
3.0 PLANNING :
3.1 Command Area of Operations:
There are 14 number of operating areas with 103 number of working mines, 75 being underground mines,
19 opencast mines and 9 mixed mines.
3.2 Capex Target and Actual for 2014-15 and Target for 2015-16 :
Departmental-1589.157 Recast of Siduli OC:1.00 & UG:1.02 605.788 Nabakajora-Madhabpur UG Mine 1.08 1310.60
Phase-I
EASTERN COALFIELDS LIMITED
11
3.9 Capital Projects/ Schemes:
i. No. of new Projects: 2 (Kumardih - B CM and New Kenda OC)
ii. Others - 16
iii. Total – 18
3.10 New Initiatives and Future Programme:
Following initiative have been taken in 2014-15 for augmentation of production from underground and
opencast operation:
a. Introduction of High-wall Mining: ESC of CIL Board in its 83rd meeting held on 21.10.2014 approved
the proposal for extraction of coal by Highwall Mining at the following patches/sites.
SL No Name of the Estimated extractable reserve (Mt)Block/Seam for maximum drivage length
300 Meter 200 Meter
1 Sripur / Taltore (R-I) 0.86 0.81 81.61
2 Nimcha / (R-IXA) 1.84 1.66 120.90
b. Technological up-gradation and Modernization of existing UG mines: The existing underground
mines which have been identified for Technological up-gradation and Modernization are Badjna, Shyampur
B, Siduli, Ghusick and Nimcha. M/S KPMG Advisory Services Pvt. Ltd. was assigned with the above
job. They have submitted the final report to ECL and MoC and the report is found to be acceptable.
c. Introduction of mass production technology [Continuous Miner (CM)] : The following mines have
been identified for introduction of CM in XII/XIII plan :
Sl Name of the Mine/Project Capacity Estimated CapitalNo (MTY) Expenditure (` in Cr.)
1 Kumardih - B CM 1.02 117.90
2. Jhanjra LHCM 0.72 114.23
3. Tilabaoni UG 1.86 727.40
4. Siduli UG OC : 1.00 & UG : 1.02 605.78
5. Shankarpur OC : 2.00 & UG : 1.163 401.43
6. Parasea-Belbaid UG 1.83 886.41
7. Naba-Kajora Madhabpur UG 1.08 1310.60
8. Khottadih CM 1.00 127.17
d. Foreign collaboration/Technology Absorption-Adaptation and innovation: 2nd Set CM at Jhanjra
UG has been commissioned in underground on 04.05.2014 and production started from May 2014. For
Jhanjra R-VI Seam PSLW, contract for supply and operation of PSLW was signed on 8th January, 2013.
Testing of Prototype Support was done in China in March 2014. Permission for field trial of Road Header
from DGMS was obtained on 10.02.2015. Permission for field trial of electrical equipment for Longwall
from DGMS has been obtained on 12.02.2015. Permission for field trial of Side Loader & electrical equipment
Capacity (MTY) &Capital Investment
(` Cr)
Landrequired
(Ha)
0.50 (MTY) &
` 36.65 Cr..
ANNUAL REPORT 2014-15
12
for Belt conveyors from DGMS was obtained on 24.02.2015. The Break Bulk Cargo (mainly all the Power
Supports) has been shipped from China.
e. Introduction of Man-riding System: Order for procurement of Man-riding system for Haripur and Parasea
Colliery were placed and equipment has since been supplied which is under testing. Action has been
taken for procurement of 3 no. of Free-steered vehicle at Jhanjra Longwall and for 2nd set CM.
3.11 Details of OC Patches approved during 2014-15:
SL No. Name of Patch Area Minable Volume of OB
Reserve (MT) (M Cum)
1 Bonjemehari (Extension) Salanpur 2.40 10.50
2 Kalipahari Patch-C Sripur 0.087 1.00
3 Damalia (Extension) Satgram 0.35 1.25
4 Dabor(Ph-III) Salanpur 6.73 22.93
5 Shankarpur(Ph-IV) Kenda 4.40 12.80
6 North Searsole (Extension) Kunustoria 2.00 9.30
7 Dalurband (Ph-III) Pandaveswar 2.60 31.00
8 Parasea (Sonachora) Kunustoria 0.50 6.00
9 Kapasara (Extension) Mugma 0.50 1.90
10 Revised Scheme of Narainkuri OC patch. Kunustoria 1.36 6.18
3.12 MoU Activities:
Approval & Recommendationof ECL Board for seekingapproval of CIL Board for UCEof New Kenda OC: Capacity1.2MTYApproval by CIL Board of UCEof New Kenda OC: Capacity1.2MTY
Approval & Recommendationof ECL Board for seekingapproval of CIL Board for UCEof Jhanjra Low HeightContinuous Miner. Capacity0.72MTYApproval by CIL Board of UCEof Jhanjra Low HeightContinuous Miner: Capacity0.72MTY
Sl.No.
PerformanceIndicator
MeasurementUnit
Target forthe year
Achieved. UCE of PR of New KendaOC approved and recommended byECL Board on 12.09.2014 forplacing the same to CIL Board forfinal approval.Achieved. UCE of New Kenda OCPR placed before 83rd ESC of CILBoard on 21.10.2014 and wasapproved.Not Achieved. UCE was approvedin 274th meeting of Board ofDirectors of ECL held on06.12.2014.
UCE of Jhanjra Low Height CM ofcapacity 0.72 MTY has beensubmitted to CIL on 22.12.2014 forapproval. CIL Board in its meetingheld on 27.02.2015, accorded
Achievements
1
2
3
4
Month
Month
Month
Month
Oct, 2014
Jan, 2015
Nov, 2014
Feb, 2015
EASTERN COALFIELDS LIMITED
13
5.
6.
7.
8.
9.
10.
11.
12.
13.
approval for 1st Year expenditureof ` 31.23 crore of PR. Finalapproval of PR is still awaited.Achieved. Commissioned on04.05.201496
338
Achieved. Bottom gate drivagecompleted for 1673 Metre on09.11.2014.
Achieved. Testing of powered roofsupport for Jhanjra PSLW projectin China is completed. DGMSapproval of powered roof supportobtained on 03.09.2014.Achieved. Updation of 3 Nos. MasterControl Network of MOSPImonitored new projects has beenprepared and sent to MOSPI, NewDelhi and CIL on 30.12.2014.Achieved. Radar survey by CIMFR,Dhanbad has been completed inthe month of June-2014. Reportsubmitted in Sept.14
Trial for water gel has been donesuccessfully. Procurement is underprocess.
686.69
Commissioning of 2nd set ofContinuous Miner at JhanjraRehabilitation of villages atRajmahal OC Project byshifting of PAFsRehabilitation of villages atSonepur Bazari OC(combined) Project by shiftingof PAFsCompletion of Drivage ofBottom gate for Longwallpanel at Jhanjra for PSLWprojectTesting & DGMS approval ofpowered roof support forJhanjra PSLW Project
Updation of 3 nos. MasterControl Network of MOSPImonitored new projects
Determination of barrierthickness of R-V seambetween old abandonedworkings of Pure Kendacolliery & present workings ofNo. 7 pit of Lower Kendacolliery at Kenda Area byGround Probe (Mine view)Radar Method.Use of innovative water gel tocombat fire of coal stack/overburden dumps
Capital Expenditure
Month
No. of PAFs
No. of PAFs
Month
Month
Month
Month
Month
` Crore
July, 2014
100
100
March'15
Oct., 2014
25th Mar,2015
Feb'15
Jan, 2014
875.00
3.13 Project Monitoring and Status of Implementation :
Details given as Annexure - III (Separately)
ANNUAL REPORT 2014-15
14
Field
4.0 MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT:
Management’s Discussion and Analysis Report is presented in a separate section forming part of the
Annual Report (ANNEXURE-IV).
5.0 COAL MARKETING:
5.1 Demand vis-a-vis off-take:
Actual off-take of coal in 2014-15 was 38.469 million tonne against the demand of 38.00 million tonne i.e.
demand satisfaction of 101%. Sector-wise demand and off-take during the year 2014-15 compared to
2013-14 is as follows: (Figures in Million Tonne) ((
Sector Off-take 2014-15 Off-take 2013-14
Demand Actual % Satisfaction Demand Actual % Satisfaction
POWER 33.727 35.102 104 29.950 31.052 104
CEMENT 0.128 0.080 62 0.200 0.064 32
CPP(ORS) 0.279 0.090 32 0.403 0.123 31
CPP (STEEL) 0.303 0.364 120 0.300 0.313 104
STEEL (BLEND) 0.014 0.007 47 0.008 0.007 88
SPONGE IRON 0.227 0.134 59 0.807 0.146 18
EXPORT -- 0.004 -- -- -- --
LOCO -- 0.001 -- -- -- --
DEF -- 0.001 -- 0.030 0.004 13
COLLY. CONS. 0.38 0.249 66 0.340 0.277 81
OTHERS 2.942 2.438 83 3.162 4.269 135
TOTAL 38.000 38.469 101 35.200 36.255 103
5.2. Average loading of Wagons per day :
Field-wise average loading of wagons for the year 2014-15 compared to previous year is as
follows : (Figures in Box/Day)
Loading of wagons
2014-15 2013-14
Target Actual Target Actual
Raniganj 656 696 701 663
Mugma/Salanpur 180 190 150 164
Adra 20 19 24 16
Pirpainti 122 28 201 76
Rajmahal (Wharf Wall) 142 143 0 130
Total 1120 1076 1076 1049
(Figure in Million Tonne)
EASTERN COALFIELDS LIMITED
15
5.3. Mode-wise despatch :
Mode-wise despatch of coal in 2014-15 compared to previous year as follows:
(Figures in Million Tonnes)
Mode of Despatch 2014-15 2013-14
Rail 25.538 24.598
Road 1.639 1.936 Merry-Go-Round(MGR) 11.043 9.444
Total 38.220 35.978
5.4. Stock of Coal as on 31st March 2015 is as follows : (Figures in lakh Tonnes)
Field As on 31.3.15
Raniganj 14.1996
Mugma/Salanpur 2.9417
S.P. Mines 2.7250
Rajmahal 14.6465
Total 34.5128
5.5. Spot 'e' auction :
Despatched Gain over % age Despatched Gain over % ageQty. notified Gain Qty. notified Gain
(in lakh price (in lakh pricetonne) (` in Cr.) tonne) (` in Cr.)
Rail 6.12 35.11 19.93 23.22 59.71 9.35
Road 12.77 263.83 60.70 15.82 164.69 30.80
Total 18.89 298.94 48.94 39.04 224.40 19.13
5.6. Sales Realisation :
( in Crore )
Particulars 2014-15 2013-14
Sales Realisation 14015.75 14108.85
5.7 Major achievements during 2014-15 :
a. During 2014-15, ECL is the only subsidiary in CIL which has achieved the offtake target as per Annual
Action Plan (AAP). ECL has achieved 101% of the offtake target.
b. After the introduction of Cash and Carry system, the outstanding dues of various power houses have
reduced to ` 1385.64 crore from ` 1877.97 crore in last year..
Mode
2014-15 2013-14
`
ANNUAL REPORT 2014-15
16
6.0 POPULATION OF EQUIPMENT (HEMM) :
6.1 Population of Equipment as on 31st March 2015 compared to 31st March 2014 and major repair / rehabilitation
done during 2014-15 is as follows :
No. of Equipment Repair / Rehabilitation ofas on equipment during 2014-15
31.03.2015 31.03.2014 Target Achievement
Dragline 1 1 --- ---
Dumper 270 232 --- ---
Dozer 87 87 --- ---
Shovel 62 71 --- ---
Drill 47 48 1 1
6.2 Percentage availability & utilisation of each type of equipment against CMPDIL norms during the year
2014-15 compared to previous year is as follows :
The %age availability of Dragline, Dumper and Drill is more than CMPDIL norms. The %age availability of shovel
and dozer is almost close to CMPDIL norms and more than or equal to last year same period availability. The
%age utilisation of Dragline is more than CMPDIL norms. The %age utilisation of Shovel, Dozer and Drill is more
than last year same period. The %age utilisation of dumper has suffered mainly due to land problem and shortage
of dumper operators in many projects.
Steps taken to achieve CMPDIL norms of Dumper Utilisation:
• Action has been taken to induct Dumper Operator (Trainee) from internal source to improve the utilisation
of dumper.
• Reviews of HEMM performance of projects are being done at regular intervals and necessary assistance/
help was provided from HQ to reduce breakdown hours of equipment.
Equip-ment CMPDIL
NormsCMPDILNorms2014-15 2014-152013-14 2013-14
Dragline
Dumper
Dozer
Shovel
Drill
85
67
70
80
78
91.98
72.10
69.45
75.49
79.27
94.16
78.12
69.45
79.04
82.26
2.18
6.02
---
3.55
2.99
73
50
45
58
40
87.09
38.21
27.27
45.40
30.35
89.70
37.11
28.28
49.89
30.94
2.61
–1.10
1.01
4.49
0.59
Equipment
EASTERN COALFIELDS LIMITED
17
6.3 New/Replacement equipment provided to OCPs in 2014-15 is as under :
a) DAV School 04 2 06b.i) No. of Schools receiving recurring Grant - in - aid 162 0 162b.ii) Amount of Recurring grant-in-Aid (` in lakh) 4159.89 373.92 4533.81c.i) No. of Schools receiving Non-Recurring Grant-in-aid 387 00 387c.ii) Amount of Non-Recurring grant-in-aid (` in lakh) 288.21 15 303.21d.i) No. of schools sanctioned ad-hoc grant 79 0 79d.ii) Amount of ad-hoc grant sanctioned (` in lakh) 69.60 0 69.60e) No. of School buses engaged 156 0 156
5. Games & Sports amount spent (` in lakh) 379.91 17.47 397.386. Social & Cultural activities, amount spent (` in lakh) 70.25 2.31 72.567. CIL Scholarship
a) No. of Scholarship and Cash awarded 14492 922 15414b) Amount sanctioned (` in lakh) 173.37 19.12 192.49
8. CIL Scheme for Financial assitance to extend the Tuition Fees & Hostel Charges of the Wards of Wage BoardEmployee studying in the Selected Engineering & Govt. Medical Colleges.a) No. of wards of WBE sanctioned 232 80 312b) Amount sanctioned (` in lakh) 41.72 20.69 62.41
9.0 MEDICAL AMENITIES:
9.1 2 Central Hospitals, 11 Area Hospitals with total bed capacity of 1032 and 115 Dispensaries extended
medical services to the employees and their dependants. 113 Nos. of Ambulances were in service in these
hospitals.
5 Nos. of Mobile Medical Vans also catered to the medical needs of localities situated in ECL commandarea under CSR.
9.2 No. of persons referred to outside for treatment & expenditure incurred for their treatment and
Villagers covered by Mobile Dispensary:
Particulars 2014-15 2013-14
No. of patients referred outside: 1372 1329Expenditure incurred for their treatment (in ` crore) 10.83 12.80Health & family welfare programme:
- No of camps 24 18 - No of beneficiaries 2092 685
Villagers covered by Mobile Dispensary: - No of camps 1007 544
- No of beneficiaries 47090 30969
ANNUAL REPORT 2014-15
20
In addition to above, 125 Nos. of differently abled persons were supplied with medical appliances. Thecompany also incurred a medical expenditure of ` 2.44 crore on the retired executives under the CPRMSEscheme of Coal India Limited. During the year 2014-15 an amount of ` 2.95 crore were used for medicine
procurement.
9.3 Major Achievements during 2014-15 :a. Opening of Nursing Training School at Central Hospital, Kalla.b. The renovation work of Dialysis unit of Central Hospital Kalla is in process.
c. Installation of Colposcopy for early detection of Cancer Cervix at Central Hospital Kalla andSanctoria Hospital.
d. BPL card holders are given free OPD treatment at our hospital.
e. ENDO-UROLOGY surgery started at Sanctoria Hospital.
10.0 CORPORATE SOCIAL RESPONSIBILITY:Report on Corporate Social Responsibility pursuant to Section 135(2) of Companies Act, 2013 is presentedin a separate section forming part of the Director’s Report (ANNEXURE-V). The MoU activities relating to
CSR is given as below:
10.1 SOCIAL AMENITIES:Since the inception, Eastern Coalfields Limited has taken up various activities for the welfare of its workersas well as development of people/communities living in the surrounding areas of the mines. Brief description
is as below:-
10.1.1 Residential Building:
There are altogether 91180 number of residential houses in the company, out of which 62960 numbers
are standard quarters and 28220 numbers of non-standard houses. At present housing satisfaction ismore than 118%. Regular repairing and maintenance of these quarters are being attended. Additionally,under Block Repairing concept, thorough repairing of complete blocks of residential quarters is being
taken up. During 2014-15 a budget of ` 19.88 crore was provided for block repairing and about 4141
quarters were thoroughly repaired under this programme.
10.1.2 Welfare Buildings:For the welfare of the workmen, there is tremendous improvement in the assets since nationalization,
details as below-a) Hospitals- 13 b) Dispensaries- 115c) Canteens- 82 d) Rest Shelters- 137
ECL has always given special attention for the improvement of potable water supply to the occupants ofour residential houses as well as to the people of nearby communities. There are 22 numbers of slowsand filters, 20 numbers rapid gravity filters to provide filtered and treated potable water to the employeesand their dependents. There are also 11 numbers of river bed bore wells.
In addition to this ECL has also participated with RCFA-1 and RCFA-2 water supply schemes of WestBengal government and Chirkunda water supply scheme of Jharkhand Govt. for augmenting the source ofwater and water is served to a population of 5,40,000. In the year 2014-15, 7 nos. of pressure filter andelectro chlorinators were commissioned.
11.0 INFRASTRUCTURE DEVELOPMENT :Dispatch of coal is one of the prime activities of ECL and it is being done effectively and efficiently. Coal isbeing dispatched mainly by the mode of roads and railways. ECL has taken proper steps in this regard.Brief description of works is as below:-
a. Roads- During the year 06 nos. of works for strengthening of coal transportation roads for a totallength of 14.58 Km. (approx.) were completed in different Areas at a cost of `
831.19 lakh.
Additionally, during the year 2014-15, 13 nos. of works related to strengthening, widening andconstruction of 46.57 km coal transportation road for total values of ` 3163.77 lakh were awarded.
b. Railway Siding, Wharf Wall etc.
Sl. No. Name of Work Work Order Present
Value (` in lakh) Status
1 Construction of new railway siding to serve SonepurBazari Project. (Project cost ` 108.15 crore). 5940.00
2. Construction of wharf wall at Kumardihi B railway sidingat Purushottampur under Kumardihi B Colliery, BankolaArea. 155.93
3. Construction of wharf wall at Siding no. 1 & 2 of BankolaColliery, Bankola Area. 155.03
4. Construction of wharf wall and drain along railway sidingat ROCP. 359.83
5. Construction of concrete wharf wall R.C.C. boundary wall,R.C.C. culvert, Pucca drain and earth filling in platform(including yard) at Dalurband- Pandaweshwar RailwaySiding at Dalurband Colliery, Pandaveswar Area. 116.70
6. Construction of RCC wharf wall at J.K. Nagar RailwaySiding, Satgram Area. 172.75
Work inProgress
c. Other works: ECL is also providing funds to State Govt. and other District Board Authorities formaintaining and upgrading State/District Board roads which are being used for transportation ofcoal from mine to siding/coal depot. Details of roads completed during the year 2014-15 are as
below –
ANNUAL REPORT 2014-15
22
12.0 SAFETY:
12.1 Accident Statistics for the year of 2014-15
YEAR 2014-15* 2013-14
i) Fatal Accidents (Nos.) 4 11
ii) Fatalities (Nos.) 4 11
iii) Serious Injuries (Nos.) 73 62
iv) Fatality / Million tonne output 0.10 0.305
v) Fatality / 3 Lakh Man-shifts 0.073 0.195
(* subject to reconciliation with DGMS)
12.2 Safety MeasuresJobs undertaken by ISO for enhancing safety in Mines of ECL
a. Safety Board has been constituted for inspecting the Mines and removing deficiencies observed. MonthlyMeeting of Safety Board is regularly held for reviewing safety of Mines. This meeting is attended by allFunctional Directors, all HoDs, all Safety board Members, all Area CGM/GMs and all Area safety Officers.
b. To conduct Special Meeting of Safety Committee after the accident and implementation of therecommendation of Special Safety Committee.
c. Enquiring into accidents in order to know the root causes and taking corrective measures.d. Issuance of Safety Circulars in line with finding of the enquiry into Accidents/Dangerous Occurrences/
Near-miss Incidents to prevent recurrence.e. Maintenance and Analysis of Statistics of Fatal and Serious Accidents for taking remedial measures.f. 30 minutes duration SCCR have been procured for UG mines workers for use in any emergency in UG.g. 45 numbers SCBA of positive pressure type procured for Mines Rescue Station, Sitarampur.h. Internal safety audit have been done by Inter Area Team by senior officers from various disciplines.i. Annual Mines Safety week 2015 held from 16.02.2015 to 21.02.2015.j. Monitoring of methane and carbon monoxide for Degree-III gassy mines.k. Regular family counselling is being done for safety awareness amongst family members of employees.l. 90% of working districts in underground mines have been converted to mechanised districts as per the
recommendation of 10th conference on safety.m. Quality of materials and their supply in mines has been ensured.n. Strata Control Monitoring Cell has been established in ECL HQ and subsequently Strata Control Monitoring
Cell has been established in all areas to study the roof behavior and for improvement of roof support inmines. RMR is determined wherever required and Support Rules are framed accordingly.
Sl. No. Name of Work Contribution by Present
ECL (` in lakh) Status
1. Improvement of Ukhra Haripur Road from 1.80 Km. to 238.035.00 Km. (in a stretch 2.6 Km.) under Asansol Division,PWD, Asansol.
2. Strengthening of road from Ranishire More to Nimcha 100.00Cabin a stretch of road from Ranishire More to BurnsClub passing under rail over bridge at Nimchaconnecting to Mejia Road.
Work Completed.Work executed byPWD, Asansol.
Work Completed.Work executed byPWD, Asansol-Durgapur Devel-opment Authority.
EASTERN COALFIELDS LIMITED
23
o. Safe Operating Procedures in respect of Mining and allied activities and operation of Mining Machinery/HEMM have been made and distributed to concerned workers.
p. Efforts are being taken to prevent generation of dust at sources.q. Preparation and implementation of Risk Assessment based on Safety Management Plan (SMP) has been
completed.r. Training for contractors’ workers is being regularly done along with IME.
12.3 Safety Monitoring Agencies in ECL:
Apart from statutory monitoring by DGMS, the status of safety is being monitored at various levels by thefollowing agencies:
Level Monitored by
Mine level 1. Workman inspectors: as per Mines Rule-1955.2. Safety committee: constituted as per Mines Rule-1955
Area level 1. Bipartite/Tripartite committee meeting2. Safety officers’ Coordination Meeting
HQ level 1. Bipartite/Tripartite committee meeting at HQ level2. Area Safety Officers’ Coordination Meeting3. Inspection by ISO officials.
No. of roof bolts consumed in various years are as under:
(No. in Lakhs)
Consumption 2014-15 2013-14
Roof bolts 10.81 9.30
Cement capsules 34.38 34.16
12.4 Safety AuditInternal Safety Audit has been done. We are in the process of conducting Safety Audit by externalagencies as recommended by DGMS.
12.5 Monsoon preparationA Control Room was opened at Head Quarter, ECL from 10.06.2014 to 15.10.2014 on 24 X 7 basis whichwas manned by Executives for keeping close liaison with Area Control Rooms operating in all Areas.Close liaison is maintained with the Chief Engineer (Hydel), DVC, Maithon for getting ‘Flood WarningMessage’. Close liaison is also maintained with the Director, Indian Meteorological Department, Alipur,Kolkata and the Director, Area Cyclone Warning Centre, Alipur, Kolkata for obtaining ‘Weather Forecast
Report’ for alerting the Areas to be affected by heavy Rain/ Thunder/ Shower.
12.6 Safety Training
Two Weeks Structured Training for
Front line supervisors Workmen’s Inspector
No. of No. of No. of No. of
Programme Participant Programme Participant
2014-15 4 112 3 38
2013-14 4 96 3 41
Year
ANNUAL REPORT 2014-15
24
12.7 Training for appearing in Statutory Exams:
Type of Exam No. of employees trained Training Institute
A. For appearing in
1st Class - Coal 8
2nd class - Coal 8
Mining Sirdar 61 MTS , Dhadka
Surveyor 6
Electrical Supervisor 23
Winding Engine driver 30 MTI, Ratibatti
Gas Testing 23 MTS, Dhadka
B. Trade Course
Surveyor 28
Mining Sirdar 50 MTS , Dhadka
Electrician 30
C. Diploma in Mining (Part time) 163 Raniganj Mining Institute
12.8 Vocational training (Statutory at VTC) 2014-15.
Type of Training 2014-15 2013-14
Basic 869 1313
Refresher 10010 9672
Spl. Training 6707 5653
I.O.D. 99 121
Contractors Workers 2305 3833
12.9. RESCUE SERVICES IN ECL:
Rescue Services have been rendered to all collieries of ECL, Chanch Victoria Area of BCCL, Ramnagar
Colliery of IISCO as well as to Civil Administration and Public Authorities (as and when required) through
Mines Rescue Station, Sitarampur, Rescue Room with Refresher Training (RRRT) Kenda and Rescue
Rooms operating at Jhanjra, Mugma & Kalidaspur.
12.9.1 During the year Rescue Services dealt fire/spontaneous heating in the following mines
successfully.
Sl. Colliery / Place Area Date Nature of occurrence
No. Occurance From To
1. Pandaveswar Pandaveswar 19.05.14 21.05.14 Dealing of spontaneous
eating in old working.
2. Lakhimata Mugma 23.07.14 24.07.14 Sealing of foul area.
EASTERN COALFIELDS LIMITED
25
3. Mandman Mugma 13.08.14 11.10.14 Controlling of heating and fire
in underground.
4. Jhanjra Jhanjra 04.10.14 18.10.14 Dealing of spontaneous
6. Near Sripur Sripur 03.05.2014 Rescued 6 persons
Village entrapped in an illegal pit.
7. Igra Village Satgram 04.07.2014 Rescued 3 persons who were
gas affected during digging
well.
8. New Kenda Kenda 06.08.2014 Recovery of a dead body from
3 pit New Kenda colliery.
12.9.2 TRAINING :
Refresher as well as initial training was imparted at Mines Rescue Station regularly, details are as follows:
Details 2014-15 2013-14
No. of Rescue personnel trained 668 676
No. of personnel freshly trained 23 26
No. of Refresher practices 8392 6040
No. of Emergencies 9 13
12.9.3 New apparatus/equipment purchased:
45 numbers of SCBA (BIO PAK 240R) and 2 numbers of dummy body MANIKIN (67 kg) were purchased.
One Motorized Tread Mill for the use in testing of SCSR was also purchased during the year.
12.9.4 Zonal Mines Rescue Competition :
Zonal Mines Rescue Competition, Eastern Zone, for the year 2014-15 was held on 31st October, 2014 in
which 12 (twelve) Nos. Rescue teams took part.
12.9.5 All India Mines Rescue Competition (Coal & Metal) :
45th All India Mines Rescue Competition (Coal & Metal) was conducted at Mines Rescue Station, Ramgarh
(CCL) from 14th to 17th January, 2015. Two teams from ECL took part in the competition.
12.9.6 Budget Provision for Mines Rescue Station :
(` in Lakhs)
Capital Budget Revenue Budget
2014-15 2013-14 2014-15 2013-14
Sanctioned 576.26 6.10 1639.17 1614.05
Expenditure 325.98 5.86 1491.43 1460.67
Particulars
ANNUAL REPORT 2014-15
26
12.10 MoU Activities :
13.0 QUALITY CONTROL:
13.1 Weighment Status:In 2014-15, quantity weighed in EPS for supplies account Power houses & others compared to last year
is given below:
2014-15 2013-14
Details Power Other Total Power Other TotalConsumers Consumers
Qnty. Despatched (in L/T) 351.02 31.17 382.19 310.52 48.84 359.36
Qnty. Weighed under EPS (in L/T) 346.02 31.17 377.24 307.25 48.67 355.92
Weighment % under EPS 98.59 100.00 98.70 98.95 99.65 99.04
13.2 Sizing StatusThe total despatch of coal in 2014-15 was 382.19 Lakh Tonne of which the despatch to the powersector was 351.02 Lakh Tonne. In despatches from sidings other than CHP/FB facility, sizing was
done by dozer and thus 100% mechanically crushed coal was supplied to power stations. There
have been 100% sized coal dispatches through alternative methods. The details are given below.
Considering its critical role in ensuring a transparent, fair and efficient functioning of the organization, the
vigilance activities have been truly integrated with the management functions in ECL. The path-breaking
initiatives taken last year to instill a sense of confidence among various stakeholders, resulting in significant
improvement in efficiency, have been taken a step further this year. Frequent surprise inspections have
been conducted and intensive examination of a large number of cases was undertaken laying emphasis
on system improvement measures. Preventive vigilance, however, has continued to be the focus resulting
in significant savings for the company through control of leakages and pilferages in the system. Awareness-
cum-motivation programmes, conducted by Vigilance department for various stakeholders have yielded
rich dividends for the company. Besides, the initiatives taken by Vigilance department for leveraging
technology through introduction of e-procurement, e-payment, discount bidding, CCTV, toll-free helpline
for lodging complaints, Biometric attendance etc. have added immense value to the performance of the
organization.
14.1 Preventive Vigilance:
The number of surprise checks conducted by the Vigilance department has covered almost entire gamut
of activities of the Company. Besides, vigilance awareness-cum-motivation programmes were organized
on a large scale for various stakeholders covering over one thousand beneficiaries. These efforts have had
a salutary effect on the work-culture of the organization resulting in all-round improved performance.
Sl. No. Subject No.
1 Surprise Checks/Inspections conducted 50
2 Vigilance awareness cum motivational programmes organized:
a) Awareness Programmes with internal faculties 18
b) Stake Holders Meet 1
c) Competitions Essay/Painting etc. 5
d) Seminar/Workshop with external faculties 23
Sl.No.
PerformanceIndicator
MeasurementUnit
Target forthe year
Despatch of Sized Coal to Power Sector byRail through CHP/Feeder Breaker/UG Coal.Despatch covered under agreed sampling/analysis to power sector.Weighed on electronic weighbridges beforedespatch.Creation of a portal in company’s website foronline submission of grievances by consumersRedressal of grievances received online
84
100
98.7
Achieved inApril '14
100
Achievements
%
%
%
Month
%
85
98
96
May '14
90
1
2
3
4
5
ANNUAL REPORT 2014-15
28
14.2 Measures taken for improvement:
During the year 2014-15, the following systemic improvement measures were undertaken:
a) One System improvement in respect of procurement of provisions and upkeep/ maintenance at Kalla
Central Hospital.
b) Comprehensive guidelines have been issued as a System improvement in respect of execution of Transfer
Orders of employees to curb malpractices.
c) System improvement measures have been taken in respect of payment to the Land Losers for acquisition
of land by ECL through e-mode only (i.e. NEFT/RTGS).
14.3 Punitive Vigilance:
Instances of irregularities, found to be committed willfully with mala-fide intention, have been dealt with
firmly and exemplary punitive measures were taken as prescribed under the relevant Conduct Rules. 11
Persons were awarded various penalties.
14.4 Leveraging Technology:
Several initiatives have been taken by the Vigilance department towards leveraging technology for improving
transparency and efficiency of the organization. E-Tendering has become fully operational and in 2014-15,
a total of 1015 tenders floated out of which 578 tenders were awarded and 379 are under finalization. The
average cycle period of completion of tender process has been reduced to 95.53 days and the minimum
completion period was only 23 days in the current year. It automatically translates into not only tremendous
savings but also reputation and goodwill for the company. Introduction of discount bidding has helped in
considerable cost-cutting in almost all bids. E-payment has been made mandatory which has helped
eliminate the essential human interface used to brew and support corrupt practices. The e-governance
initiatives have made the processes transparent, people-friendly and also reduced the paper work and
associated drudgery to a large extent. Launch of a toll-free helpline by the Vigilance department has been
welcomed by all for getting easy access to ventilate their issues/complaints/grievances.
14.5 Implementation of Integrity Pact Programme :
Integrity Pact has been duly implemented in ECL. The threshold limit is fixed at ` 2 crores. Two numbers
of Independent External Monitors have been appointed during the current year to ensure the implementation
of Integrity Pact in the concerned contracts.
14.6 Observance of Vigilance Awareness Week:
Vigilance Awareness Week was observed in ECL from 27th October, 2014 to 1st November, 2014 as per
directives of Central Vigilance Commission. A pledge was administered on 27.10.2014 in all establishments
of ECL to bring about integrity and transparency in various spheres of activities and also to work unstintingly
for eradication of corruption. Several awareness programmes like seminar, workshop, Stakeholders’ Meet
etc were organized in the Headquarter as well as various Areas/Units to enlighten and spread the message
of integrity amongst the stakeholders. There was a mammoth participation of about 600 students in the
competitive events organized during the week. The next issue of vigilance magazine of ECL, namely
‘Sachetana’ was also published.
EASTERN COALFIELDS LIMITED
29
14.7 Important Achievements:
a) Integrating the vigilance functioning with the management functioning, there has been a significant morale-
boosting of employees and other stakeholders through regular interactions in awareness-cum-motivation
programmes. It has resulted in increase in production and productivity significantly.
b) Regular monitoring has helped in controlling over-reporting of production and recovery of large quantum of
penalties.
c) Introduction of several IT-initiatives has been instrumental in enhancing transparency as well as efficiency.
15.0 PARTICULARS OF EMPLOYEES:
None of the employees received remuneration in excess of limits prescribed under Rule 5 of Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014 under Chapter XIII of the Companies
Act, 2013.
16.0 OFFICIAL LANGUAGE IMPLEMENTATION:
ECL’s HQ and its 11 Areas are situated in ‘C’ region (West Bengal) where 86% employees are posted.
Only 3 Areas are situated in ‘A’ region (Jharkhand). During the period under review, the following steps
have been taken to implement Official Language in our company:
a. All the computers of HQ, as well as 90% computers of Areas have been activated with Unicode and thus
made able to work in Hindi.
b. The rule of writing the subject of the files in Hindi & English on the covers has been fully implemented.
c. The certificates being given as memento to the retired employees containing their name, designation
length of service etc. were given in Hindi.
d. The officers of each department were trained to work in Hindi with Unicode so that the growth in Hindi
correspondence could be accelerated. This training is going on regularly at present also for new officers
and employees.
e. The names of all the officers and employees are written in Hindi and English in all the attendance registers
of all departments. Maximum number of employees put their signatures either in Hindi or in their mother
language.
f. During 2014-15, Hindi correspondence has been recorded as 68.60% in Region ‘A’, 66.20% in Region ‘B’
and 57.65% in Region ‘C’.
g. During 2014-15, Hindi Pakhwara was organized from 1st September, 2014 to 14th September, 2014 in
which Hindi Essay-writing competition, Hindi Speech competition and Hindi Debate competition were
organized for Hindi-speaking and Non-Hindi-speaking employees separately in which 49 competitors
participated and all of them were awarded with various prizes along with certificates.
h. Along with HQ, Hindi Pakhwara was organized in all the areas of ECL.
i. A Hindi Kavi Sammelan was organized on 28th March, 2015 in which the poets of all India level addressed
the audience.
ANNUAL REPORT 2014-15
30
j. In the high level Hindi workshop on the topic “RAJBHASHA SAMBANDHI SAMWAIDHANIK PRAWADHAN”
ON 29.12.2014 organized by Town Official Language Implementation Committee (TOLIC) ECL parted a
proactive role. Before this, our company had played an important role in Town Official Language
Implementation Committee (TOLIC) meeting on 21.11.2014.
k. During 2014-15, seven workshops were organized out of which one high level Hindi Workshop was organized
on 27.05.2014 for the CGMs, GMs and all HODs of HQ. Dr. B. N. Pandey, Dy. Director, Regional
Implementation Office, Kolkata under the Ministry of Home Affairs, Govt. of India addressed the workshop.
l. President of India honoured ECL for excellent performance in Implementation of Official Language during
2013-14 in ECL. This award is highly recognised as the best achievement in the field of Official Language
Implementation. The President of India handed over a silver shield as 2nd prize. ECL is the alone recipient
of this award of 2013-14 in any Subsidiary of CIL as well as O.L.I Office, Eastern Zone.
m. The publication of a Wall Poster “ECL SAMACHAR” in Hindi is still continuing and its 11 (Eleven) issues
have been published till January, 2015 in which different news of ECL & achievements of the employees
etc. along with photographs were published.
n. Apart from it, three annual magazines named “Chetna” from Sanctoria Hospital, “Sachetna” from Vigilance
Deptt & “Jagriti” from WIPS ECL Branch were released in which articles in Hindi were also included &
published.
17.0 BIFR & BRPSE STATUS:
The networth of the Company became negative as on 31st March, 1999 and the Company was referred to
BIFR in November, 1999. The Company’s case was registered as case no. 501/2000.
BIFR sanctioned the Draft Rehabilitation Scheme in November, 2004 for implementation. As per the
scheme, the networth of the Company was slated to become positive in 2008-09 with concessions from
CIL. The Cabinet Committee on Economic Affairs had also approved the BRPSE recommended Revival
Plan of ECL on 6th October, 2006. As per this Scheme, the networth of the Company was slated to
become positive in 2009-10.
BIFR in its hearing held on 22.09.2014 gave the following directions:
a. the Monitoring Agency (SBI) clarify to the company about the procedure of implementation of the
unimplemented part of the scheme and its treatment in the Balance Sheet regarding waiver of unsecured
loan and conversion of current account balance into equity share capital.
b. SBI (MA) to submit a report that the implementation of the sanctioned scheme is in consistent in the
manner it was sanctioned.
State Bank of India vide its letter dated 1st November, 2014 to ECL proposed modification of terms of relief
and concession from CIL from “Waiver of unsecured loan of ` 519 crore and conversion of Current Account
Balance of ` 1532 crore as on 31st March, 2003 into Equity Share Capital” to “issue of non-convertible,
redeemable, cumulative preference shares for an aggregate value of ` 2051 crore to CIL by ECL in full
satisfaction of Unsecured Loan and Current Account Balance as on 31st March, 2003”.
EASTERN COALFIELDS LIMITED
31
Coal India Limited (the Holding company) in its 310th Board Meeting held on 8th November, 2014 has
approved to convert unsecured loan of ` 519 crore and current account balance of ` 1532 crore as on
31st March, 2003 of ECL with CIL aggregating to ` 2051 crore to issue fully paid 6% non-convertible,
cumulative, redeemable Preference Shares of face value ` 1000/- each to CIL.
Accordingly in terms of to Article-15 of the Articles of Association of the Company, with the approval of
Shares ` 1000/- each to Coal India Limited for their consideration.
As per accounts of the company for the period ending 31st December, 2014, the company has reported a
positive networth of ` 916.87 crore.
BRPSE reviewed the case of ECL in its meeting held on 30.01.2015. In the BIFR hearing held on 11.02.2015,
the Bench issued the following order:
“The sick company, M/s Eastern Coalfields Ltd. (BIFR Case No.501/2000) ceases to be a sick industrial
company, within the meaning of Section 3(1) (o) of SICA, as its networth has turned positive.”
18.0 COMPUTERISATION & I.T. ENABLED SERVICES:
18.1 Activities of e-Tendering Cell in ECL :
a. By 31.03.2015, a total of 1015 tenders amounting to ` 4893.03 Crore were published on ECL e-Tendering
portal i.e. https://ecltenders.gov.in out of which a total of 578 tenders were finalized and the rest are at
different stages of finalization.
b. Awareness/Training on e-Tendering has been given to 371 bidders in e-Procurement Cell at HQ.
c. e-Tendering Cell imparted in-house & remote training/assistance to officers using different modern software
tools like Gtalk, Team Viewer, Ammay also over telephone pertaining to processes involved in e-Tendering.
In this regard, a total of 585 officers of ECL including HQ and Areas has been given instant techncial
assistance/training.
d. Digital Signature Certificates (DSC) have been arranged for 20 officers of different areas and workshops
inclding HQ in FY 2014-15 and total for 266 officers since launching.
e. e-Tendering Cell generates MIS Reports regarding status of e-Tendering and provides to concerned
departments including Vigilance Deptt., on weekly as well as on monthly basis.
f. e-Procurement Cell is providing guidance as and when required to Departmental users of Areas of ECL
regarding preparation of pre-requisite tender documents like Notice Inviting Tenders (e-NIT), Bill of Quantities
(BOQ), Letter of Bid (LOB) and Terms and Conditions of the tenders which are scheduled to be floated at
Area level.
18.2 Special Achievements:
a. Online MMS application is implemented in all area except Kajora where stores connectivity will be
established within 3 month then MMS will be implemented.
b. Job for LAN connectivity in all areas of ECL have been assigned to M/s ECIL.
c. Trial run for GPS/GPRS based Coal Truck monitoring had been successfully completed in Salanpur area
on 18.09.2014 and work order issued for implementing it in all area of ECL.
ANNUAL REPORT 2014-15
32
d. Web based File Tracking system has been tested successfully in HQ for implementation.
e. e-Tendering solution for ‘Works & Services’ tenders has been rolled out in all areas of ECL.
f. Average cycle period of completion of tender through e-Tendering portal is reduced to 76 days in 2014
which is almost at par with bid validity period of 75 days. Even, one tender pertaining to Pandaveswar Area
has been finalized within 18 days out of which 10 days were earmarked for publication purpose.
g. Government e-Procurement of National Informatics Centre (GePNIC) software deployed at e-Tendering
portal of ECL i.e. https://ecltenders.gov.in has been tested and audited by STQC and found to be complaint
with all the applicable requirements relating to functionality, security and transparency.
h. YoY growth of e-Tendering portal of ECL w.r.t. tenders published & tenders finalized is recorded as 150%
and 425%, respectively from FY 2013-14 to FY 2014-15. More competition has generated resulting in
finalization of tenders in a transparent manner and at a competitive price leading to saving of significant
amount.
19.0 ELECTRONICS & TELECOMMUNICATION :
In order to keep pace with advancement of communication and information technology the following has
been achieved in 2014-15:
a. Underground Communication: 4 Auto manual underground communication systems with 15 lines have
been installed at Kajora Area.
b. WAN: Steps has been taken for introduction of Secondary Network Connectivity between HQ/Area Computer
Centers/Weighbridges of 96 locations of ECL.
20.0 LAND ACQUISITION & LAND INFORMATION STATUS:
20.1 Status of Land Acquisition:
The status of land acquisition/possession under different modes for the year 2014-15 is given below:
Mode of Acquisition Acquired (in Ha) Possession (in Ha)
Direct Purchase of Tenancy land 118.03 118.03
CBA Act 92.67 238.81
Transfer of Govt. Land 12.01 12.01
Total 222.71 368.85
Following Government Land for the mines/project of ECL has been approved by the State Govt. after the
meeting held on 13th November, 2014 with the Chief Secretary, Govt. of West Bengal under the
Chairmanship of Secretary (Coal) Ministry of Coal, Govt. of India:
1. Transfer of 106.73 acres of Govt. vested land at Mouza Kendra-Khottadih and Bilpahari in respect of
Khottadih Project and to reduce the demand from ` 272,18,13,065/- to ` 36,32,64,738/- has been
approved by the State Govt. on 17th Feb. 2015.
2. Transfer of 15.57 acre of Govt. Land at Mallick Basti, Satgram Area, Mouza Nimcha-Approved by the
Govt. of West Bengal and demanded ` 4,36,02,929/- which has been paid by ECL.
EASTERN COALFIELDS LIMITED
33
3. Transfer of 14.02 acre of Govt. Land at Kunustoria Area, Mouza Egra- Approved by the Govt. of West
Bengal and demand of ` 7,61,00,000/- has been paid by ECL.
4. Transfer of 14.11 acre of Govt. Land at Kalipahari OCP, Sripur Area, Mouza Kalipahari- Approved by the
Govt. of West Bengal and demand of ` 11,42,62,946/- has been paid by ECL.
5. Transfer of 22.05 acre of Govt. Land at Narainkuri OCP, Kunustoria Area, Mouza Egra & Narainkuri-
Approved by the Govt. of West Bengal and demand of ` 11,42,62,946/- has been paid.
6. Transfer of 23.61 acre of Govt. Land at Dabor Phase-III OCP- Approved by the Govt. of West Bengal and
demand of ` 7,31,73,170/- has been paid by ECL.
20.2 Progress under CBA (A& D) Act 1957:
20.3 Status of Rehabilitation:
During the year 2014-15 following action has been taken in respect of Rehabilitation
Name of Area Plots Given Monetary Total PAPs/Household for
Compensation which R&R benefits given
Sonepur Bazari 225 113 338
Salanpur 0 17 17
Rajmahal * 745 14 759
Total 970 144 1114
* Actual shifting has not yet been done so far. Constructions of new houses are going on.
20.4 Status of Mining lease of Sand:
Temporary working permit for extraction of sand for stowing purpose for the period of 01.04.2014 to
30.09.2014 and from 01.10.2014 to 31.3.2015 has been obtained from the Jt. Secretary, Government of
West Bengal, C&I Dept., Kolkata on 10.04.2014 and on 29.09.2014 respectively.
Sl.No.
Name of the Project Status
Lohandiha-92.67 Ha
Lalmatia Ph IXRajmahal-
4.047 Ha
Lalmatia Ph XRajmahal-
13.79 Ha
Lalmatia Ph XIRajmahal-
2.99 Ha
Simlong Ph IIRajmahal-
249.70 Ha
1
2
3
4
5
Application for Notification u/s 11(i) done on 07.04.2014
Notification u/s 4(i) done on 10.12.2014. Application for draft Notification
is under process.
Application for Notification u/s 4(i) sent to MOC on 13.10.2014. MOC
sent for publication of Notification u/s 4(i) on 13.01.2015.
Application for Notification u/s 4(i) sent to MOC on 13.03.2015.
Notification u/s 7(i) done on 09.07.2014. Notification u/s 9(i) done on
05.02.2015. Application for Notification u/s 11(i) done on 26.02.2015
ANNUAL REPORT 2014-15
34
20.5 MoU Activities :
21.0 SECURITY MANAGEMENT:
The aim of Security Department is to protect men and materials of the company. Company is having 3
(three) types of security.
1. ECL Security – 1619 persons as on 01.04.2014.
2. Contractual Security – 2229 persons.
3. CISF – 950 persons (Approx.).
ECL Security:
The main duty of ECL Security is to guard the company’s property and escorting of VIPs as and when
required by the Management. Escorting of loaded Railway Rakes, Tipping Trucks/Dumpers from Coal
Depot/Siding to Railway Weigh Bridges respectively till the weighment is done. The raids are also conducted
throughout the year by our security personnel, CISF along with local police, accordingly seizure of coal
along with involved trucks/vehicles, and apprehension of miscreants are also made during the course of
raids and subsequently the same is handed over to the local police station/ management. ECL Security
Personnel were also deployed during the time of strike/gherao/demonstration/hunger strike and any type
of law and order problem in ECL Area.
Contractual Security:
The Contractual Security personnel engaged through DGR empanelled agencies are generally deployed
for outsourcing patches and some collieries of ECL and escorting of Railway Rakes, due to acute shortage
of departmental security.
CISF:
CISF is deployed for static duty at Rajmahal, Sonepur Bazari and S.P. Mines. Besides they are having
camps at Mugma, Salanpur, Sripur, Kunustoria, Pandaveswar, Kalidaspur and Satgram Area. They remain
on mobile duty to conduct raids against illegal mining, illegal trafficking of coal and illegal coal depots and
to be deployed during Strike/Gherao in the colliery/area.
Steps taken for revamping of security at ECL:
a. Requisition of 449 CISF personnel has been sent to CISF HQ for deploying exclusively at Explosive
Magazine of ECL out of which 210 CISF has been approved by Ministry of Home Affairs.
b. New recruitment of 106 security sub-inspector is in process.
Sl.No.
PerformanceIndicator
MeasurementUnit
Target forthe year
Acquisition of land - issue ofNotification u/s 9(i) for 249 HalandAcquisition of land - issue ofNotification u/s 11(i) for 92 HalandPossession of 150 Ha Land
Notification u/s 9(i) for 249.701 Hahas been done in Feb-15
Notification u/s 11 for 92.67 Ha landdone in April-14.
Land Possessed- 176.37 Ha. within31st Jan-2015
Achievements
Month
Month
Month
Feb, 2015
Feb, 2015
Feb, 2015
1
2
3
EASTERN COALFIELDS LIMITED
35
c. Action is being taken for installation of CCTV and procurement of other techno-gazatory Explosive
Magazine, Central Store and Railway Siding.
d. Installation of CCTV Cameras and Bio-metric attendance system in ECL HQ is under process.
e. Arms Training by CISF Instructors have been imparted to Security Guards of ECL who will be
deployed for guarding Explosive Magazines.
f. Basic training has been imparted to persons of other category who after training will deployed as
security persons both male and female.
g. A mechanism to collect the seized coal from local Police Stations has been put in place. ECL
has received seized coal from different Police Stations.
Steps being taken to check/prevent the illegal mining of coal:
a. Intelligence collection.
b. Dozing off/filling up/sealing the illegal coal mining sites and subside area by departmental Pay
Loaders/Dozers and some times contractually.
c. Surprise checks/raids by CISF, ECL Security along with Police and seizure of illegal coal/illegal
trafficking of coal along with involved vehicles and apprehension of miscreants and subsequently
handed over to the same to the local Police station.
d. Regular meeting of Central/State/District level Authorities to check/prevent illegal mining. The
concerned Police Stations are advised by District Authority and Sub-Divisional Authority to increase
their vigil check to stop re-opening of the dozed illegal mining spots.
e. Frequent inspection by Area Team consisting of GM, Area Survey Officer, Area Security Officer
along with CISF officials to the affected sites and accordingly meetings are held in the Commandant,
CISF Office regularly.
f. The resolution has been taken for constitution of Security Co-ordination committee for Asansol
Sub-division for reviewing the status of illegal mining.
g. For logical conclusion of the cases which are pending in Court, ECL has engaged lawyer to follow
up these cases.
h. Discussion has also been held with Public Prosecutor to take steps for speedy trial of the cases
pending in the Courts.
Steps taken to check/prevent theft of coal:
a. Surprise checks/raids are conducted by ECL Security along with CISF personnel/Private Security
to prevent theft of coal. During the course of checks/raids, they seized coal, apprehended
miscreants and FIRs lodged to local Police Stations.
b. Armed Security personnel escorting coal loaded rake from Siding to Railway Weighbridges.
c. 8 Nos. of strategic points are identified in coal belt for detection of vehicles loaded with stolen/
illegally mined coal.
d. After setting up of Commissionrate from 1st Sept, 2011 onwards at Asansol-Durgapur there has
been improvement in curbing of coal theft activities. Commissionrate Officers in co-operation with
CISF and ECL Security has taken various steps which resulted in reduction of coal theft activities
in West Bengal Areas of ECL.
e. GPS system introduced at Salanpur Area & being introduced in other Areas is also a step to curb
theft of Coal.
ANNUAL REPORT 2014-15
36
B) During the course of dozing off/sealing/filling up of the illegal mining sites the ECL security along with CISFand local Police are also deployed at the dozing points within leasehold and outside the leasehold areas.
In the year 2014-15 following dozing /sealing are done to curb the illegal coal mining.
Year State Sites Volume Used Expend (approx) Fir/Info. SentDozed (L. Cum) ( in Lakh) to Local PS
2014-15 West Bengal 683 0.56 24.43 28
Jharkhand 167 1.57 59.24 26
Total 850 2.13 83.67 54
2013-14 Total 867 35.37 179.42 121
Variation –17 –33.24 –95.75 –67
The State administration is actively involved to curb the menace of illegal Coal Mining and Pilferage of Coal.Periodical meetings at State Level, District Level & Block Level Meetings are held with State Authorities,Police Personnel and ECL Authorities.
C) Theft / Recovery of other materials :
Year 2014-15 2013-14 Variation (Increase/decrease)
No. of Incidents 46 80 –34
No. of FIRs/ Infos. 46 80 –34
Property Stolen (in ` ) 1988896 2799654 –810758
Property recovered (in ` ) 50250 --- 50250
Person apprehended –– 08 –8
A) Details of Seizure of Illegal Trafficking Coal and Illegal Mined Coal by ECL Security, CISF and
Local Police:
Year State No. of Coal Vehicles Person FIRsRaids seized (tonne) seized Apprehended Lodged
Seizure of Coal from illegal Traffcking
2014-15 West Bengal 319 2183 35 09 22
Jharkhand 300 2046 09 00 02
Total 619 4229 44 09 24
2013-14 Total 688 3869 06 02 08
Variation –69 360 38 7 16
Seizure of Illegal Mined Coal by Security, CISF & Local Police :
2014-15 West Bengal 17 35.15 0 0 08
Jharkhand 41 236.72 0 0 08
Total 58 271.87 0 0 16
2013-14 Total 127 04 --- 06 03
Variation –69 267.87 --- –6 13
`
EASTERN COALFIELDS LIMITED
37
22.0 OUTSOURCING OC PATCHES:
In 2014-15, company produced 141.73 LT of coal and raised 587.91 L.Cum OB from 27 outsourcing OC
patches. In 2013-14 company produced Coal of 88.95 LT of coal and OB removal of 532.96 L. Cum from 22
outsourcing OC Patches.
23.0 CORPORATE GOVERNANCE :
Corporate Governance is a process that aims to meet shareholders aspirations and societal expectations.
It is a commitment that is backed by the fundamental belief of maximising shareholders value, transparency
in functioning, values and mutual trust amongst all the constituents of organisation. Corporate Governance
is a culture that guides the Board, management and employees to function towards the best interest of
shareholders. It involves essentially a creative, generative and positive thinking activity that adds value to
the various stakeholders that are served as end customers of the corporate entity.
ECL is committed to achieving highest level of transparency, openness and accountability and fairness in
all areas of operation, meeting the aspirations of all its stakeholders with primary objective of enhancing
shareholders value, timely and balanced disclosure of all material information to all the stakeholders and
protection of their interest. The Company has put in place a sound system of internal control to mitigate
the risks and comply with the laws of land, rules & regulations in true letter and spirit with a view to provide
oversight and guidance to management in strategy implementation.
In our Company, Corporate Governance philosophy stems from our belief that corporate governance is a
key element in improving efficiency and growth as well as enhancing investor confidence and accordingly
the Corporate Governance philosophy has been scripted as under:
“As a good corporate citizen, the Company is committed to sound corporate practices, based
on conscience, openness, fairness, professionalism and accountability in building confidence
of its various stakeholders in it thereby paving the way for its long term success.”
A report on Corporate Governance of your company is placed at ANNEXURE-VI and a certification from
Auditors regarding compliance of conditions of Corporate Governance by your company for the year
ended 31st March 2014 is also placed at ANNEXURE-VII to this report.
24.0 ACKNOWLEDGEMENT:
Your Directors express their sincere gratitude to Govt. of India in general, Ministry of Coal, Govt. of West
Bengal, Govt. of Jharkhand and Coal India Limited in particular for their valuable guidance and co-operation
throughout the year towards attainment of the objectives of the company. Your Directors also thank all the
operating Trade Unions for their co-operation and to the employees of the Company at all level for their
sincere and dedicated services rendered by them in the functioning of the Company. They are fully confident
that the employees of all ranks would continue to strive hard to improve the performance of the company
in the coming years.
ANNUAL REPORT 2014-15
38
Your Directors acknowledge with thanks the assistance and guidance received from Statutory Auditors,
Companies, West Bengal and Comptroller and Auditor General of India. Your Directors also wish to place
on record their sincere thanks to the valued customers and consumers for their patronage to the company.
The following papers are annexed to the Report:
i) Comments of the Comptroller and Auditor General of India under Section 143(6) of the Companies Act,
2013.
ii) Secretarial Audit Report in Form No.-MR-3, given by Company Secretary in Practice pursuant to Section
204(1) of the Companies Act, 2013 (Annexure-VIII).
iii) Extract of Annual Return in Form No. MGT-9 as on financial year ended 31.03.2015 pursuant to Section
92(3) of the Companies Act, 2013 (Annexure-IX).
iv) Foreign exchange earnings and outgo (Annexure-X).
v) Details about research and development activities of the company (Annexure-XI).
vi) Addendum to the Director’s Report under Sec. 134(2) and 134(3) (f) of the Companies Act, 2013 stating
Statutory Auditor’s Report and Management’s reply thereon.
For and on behalf of the Board of Directors
(Chandan Kumar Dey)Chairman-cum-Mg. Director
Sanctoria,Dated: 19th June, 2015
EASTERN COALFIELDS LIMITED
39
Mar
ch 2
015
Und
ergr
ound
Tra
pped
Min
er L
ocat
ion
syst
em.
Pro
ject
cod
e -
CIL
/R&
D/
1/3
5/1
0Im
ple
me
nti
ng
agen
cy:
TC
S,
CM
C &
CM
PD
IL(M
E),
Ran
chi
Fin
anci
alO
utl
ay(
in L
akhs
)
489.
7015
th J
an,
2010
Dat
e o
fS
tart
Pro
gres
sive
Dis
bu
rsem
ent
( in
Lak
h)
Sta
tus
447.
98T
he s
tatu
s of
pro
ject
was
rev
iew
ed i
n th
e A
pex
Com
mitt
ee m
eetin
g he
ld o
n 24
.12.
2014
. T
heC
omm
ittee
adv
ised
TC
S/C
MC
, Kol
kata
and
CM
PD
Ito
app
roac
h D
irect
or (
S&
T),
DG
MS
and
con
vinc
eth
em t
o ge
t pe
rmis
sion
of
field
tria
l of
the
tot
alsy
stem
for
R&
D p
urpo
se o
nly.
The
Com
mitt
eeag
reed
to r
ecom
men
d th
e ex
tens
ion
of th
e pr
ojec
tdu
ratio
n fo
r 6 m
onth
s i.e
. up
to M
arch
201
5 to
R&
DB
oard
of C
IL fo
r co
nsid
erat
ion.
Reg
ardi
ng fi
eld
trial
of M
F R
epea
ter,
Dire
ctor
(S
&T
), D
GM
S to
ld th
at if
TC
S/C
MC
wo
uld
su
bm
it t
he
te
st r
ep
ort
of
reco
gnis
ed la
bora
tory
of o
rigin
atin
g co
untr
y fo
r IS
,th
en D
GM
S m
ay c
onsi
der
to p
rovi
de p
erm
issi
onfo
r fie
ld tr
ial o
n th
e ba
sis
of n
ew g
uide
lines
of D
GM
Son
app
rova
l pol
icy
(Cla
use
No:
6.2
), w
hich
cam
e in
to e
ffect
fro
m 7
th J
anua
ry,
2015
. T
CS
/CM
C t
eam
assu
red
DG
MS
tha
t af
ter
cons
ultin
g w
ith t
hete
chn
olo
gy
sta
keh
old
ers
(K
utt
a D
rum
10
0R
man
ufac
ture
s),
they
will
get
bac
k to
DG
MS
for
amic
able
sol
utio
ns f
or t
he p
roje
ct.
Reg
ardi
ng f
ield
tria
l per
mis
sion
of o
ther
sub
-sys
tem
suc
h as
MC
D(W
i-Fi D
onga
l), W
i-Fi A
cces
s po
int A
nten
a &
VH
FM
otor
ola
sets
, Dire
ctor
(S&
T),
Dire
ctor
, DG
MS
told
that
he
will
dis
cuss
issu
es w
ith c
once
rned
offi
cers
in D
GM
S a
nd t
ry t
o fin
d ou
t th
e ap
prop
riat
eso
lutio
ns. T
CS
has
rece
ived
som
e do
cum
ents
from
Kut
ta D
rum
100
R m
anuf
actu
res,
US
A. C
ompi
latio
nof
doc
umen
ts i
s in
pro
gres
s at
TC
S/C
MC
bef
ore
sub
mis
sio
n t
o D
GM
S f
or
ge
ttin
g f
ield
tri
al
perm
issi
on.
Rev
ised
/sc
hed
ule
d d
ate
of
com
ple
tio
nN
ame
of
the
Pro
ject
3.3.
1.S
tatu
s o
f On
-go
ing
R &
D P
roje
cts
up
to 3
1st M
arch
, 201
5
1Sl.
No
.
Annexure - I
ANNUAL REPORT 2014-15
40
June
, 201
5
May
, 20
14
Inve
stig
ati
on
o
f B
olt
Beh
avio
r in
Dev
elop
men
t
and
Dep
illar
ing
pane
ls
un
de
r B
last
in
du
ced
dyna
mic
load
ing.
Pro
ject
Co
de
: C
IL/R
&D
/1/4
2/
10
.Im
ple
me
nti
ng
Ag
en
cie
s:
CM
PD
IL,
Ran
chi,
IIT, K
hara
gpur
&
RD
CIS
(S
AIL
), R
anch
i.
Re
sea
rch
a
nd
deve
lopm
ent
on e
ffici
ent
en
erg
y m
an
ag
em
en
t
pilo
t st
udy
and
actio
n
plan
.Pro
ject
Cod
e: C
IL/
R&
D/
1/
55
/
13
.Im
ple
me
nti
ng
Ag
en
cie
s:
IIS
WB
M,
Ko
lka
ta
&
DF
IC
Ma
na
ge
me
nt
Con
sulta
nts
Pvt
. Lt
d.,
Kol
kata
491.
08
66.1
9
15th
Dec
.,
2010
Mar
ch,
2013
422.
40
64.7
0
The
out
com
e of
the
pro
ject
was
dis
cuss
ed in
the
Ape
x co
mm
ittee
mee
ting
held
on
24.1
2.20
14. T
he
Com
mitt
ee a
fter
deta
iled
delib
erat
ion,
adv
ised
CM
PD
I to
co
nd
uct
mo
re f
ield
tri
als
in
bo
th
deve
lopm
ent
and
depi
llarin
g pa
nels
to
valid
ate
resu
lts
ob
tain
ed
ea
rlie
r to
arr
ive
a c
on
cre
te
con
clu
sio
n o
n t
he
fin
din
gs
of
the
pro
ject
in
cons
ulta
tion
with
Gen
eral
Man
ager
(Jha
njra
), E
CL.
To c
ondu
ct fu
rther
fiel
d tri
als,
the
Com
mitt
ee a
gree
d
to e
xten
d th
e pr
ojec
t dur
atio
n up
to J
une
2015
with
in
appr
oved
pro
ject
out
lay
and
reco
mm
ende
d th
e sa
me
to R
&D
Boa
rd o
f CIL
for
cons
ider
atio
n.
Pro
ject
com
plet
ed.
Out
com
e of
the
pro
ject
was
disc
usse
d in
the
Ape
x C
omm
ittee
mee
ting
held
on
24.1
2.20
14.
The
Com
mitt
ee s
ugge
sted
som
e
mod
ifica
tions
in th
e re
com
men
datio
ns p
ropo
sed
by
the
pro
ject
pro
po
ne
nts
re
ga
rdin
g V
ari
ab
le
Freq
uenc
y D
rive
(VFD
) for
ven
tilat
ion
fan
at J
hanj
ra
UG
min
e to
con
trol
the
air
flow
and
adv
ised
to
hand
over
the
softw
are
deve
lope
d fo
r effe
ctiv
e en
ergy
utili
zatio
n to
Jha
njra
are
a fo
r its
val
idat
ion.
The
Com
mitt
ee a
fter
deta
iled
delib
erat
ion,
adv
ised
IIS
WB
M,
Ko
lka
ta
an
d
DF
IC
Ma
na
ge
me
nt
Con
sulta
nts
Pvt
. Ltd
., K
olka
ta to
vis
it Jh
anjra
are
a,
EC
L b
efo
re s
ub
mis
sio
n o
f th
e f
ina
l p
roje
ct
com
plet
ion
repo
rt t
o C
MP
DIL
inc
orpo
ratin
g th
e
sug
ge
stio
ns
ma
de
b
y th
e
Co
mm
itte
e
for
con
sid
era
tio
n o
f R
&D
Bo
ard
of
CIL
. A
fte
r
inco
rpo
rati
ng
th
e s
ug
ge
stio
ns,
IIS
WB
M h
as
subm
itted
fina
l com
plet
ion
repo
rt.
2 3.
EASTERN COALFIELDS LIMITED
41
Feb
., 20
15
June
, 201
6
Dev
elop
men
t of
Rub
ber
Com
poun
d an
d R
epai
rT
echn
ique
s fo
r T
raili
ngC
able
s of
Und
ergr
ound
Min
ing
Mac
hine
s P
roje
ctC
ode
: C
IL/R
&D
/1/5
4/2
01
3
Imp
lem
en
tin
gA
genc
y : I
IT, K
hara
gpur
To fi
nd a
met
hodo
logy
of
safe
liq
uida
tion
in t
hick
sea
ms
of
Ra
nig
an
jC
oa
lfie
lds:
De
sig
n &
Dev
elop
men
t &
sho
w-
casi
ng
de
mo
nst
rativ
etr
ials
a
t K
ho
tta
dih
colli
ery,
EC
L
187.
84
41.0
66
Mar
ch,
2013
July
,20
14
184.
00
30.0
0C
IMFR
-10.
00E
CL-
20.0
0
Und
er th
is p
roje
ct, s
o fa
r, re
pair
of o
ne tr
ailin
g ca
ble
of 2
5 sq
.mm
dia
. an
d 70
met
ers
leng
th c
olle
cted
fro
m P
atm
oh
an
a C
olli
ery
, E
CL
wit
h r
ub
be
rco
mpo
und
deve
lope
d by
IIT
, K
hara
gpur
has
bee
nco
mpl
eted
and
diff
eren
t te
sts
wer
e ca
rrie
d ou
t on
the
cabl
e be
fore
fina
l del
iver
y to
the
colli
ery.
Ano
ther
piec
e of
dam
aged
trai
ling
cabl
e, 5
5sq
mm
dia
and
125
met
ers
leng
th c
olle
cted
from
JK
Rop
eway
s ha
sal
so b
een
repa
ired
with
new
dev
elop
ed ru
bber
. Hig
hvo
ltage
tes
ting
of c
able
has
bee
n pe
rform
ed a
ndw
eak
and
defe
ctiv
e po
rtio
ns w
ere
rem
oved
and
heal
thy
segm
ents
hav
ing
acce
ptab
le i
nsul
atio
nre
sist
ance
val
ue h
ave
been
spl
iced
. In
Janu
ary
2015
,IIT
, KG
P h
as r
ecei
ved
561
met
er d
amag
ed tr
ailin
gca
bles
fro
m E
CL,
whi
ch a
re r
equi
red
to r
ectif
ied
and
sent
bac
k to
EC
L fo
r fie
ld t
rial.
As
per
the
com
mitt
ed c
able
repa
ir sc
hedu
le, a
min
imum
per
iod
of s
ix m
onth
s is
req
uire
d in
tot
ality
to
deliv
er t
heca
bles
to
EC
L. A
noth
er s
ix m
onth
s w
ould
be
requ
ired
to a
naly
ze th
e pe
rform
ance
of t
he c
able
sun
derg
oing
the
fie
ld t
rials
. Fo
r th
is I
IT,
Kha
ragp
urha
s so
ught
12
mon
ths
i.e.
up t
o F
ebru
ary
2016
time
exte
nsio
n to
com
plet
e th
e pr
ojec
t. T
o m
eet
the
proj
ect
expe
nditu
re d
urin
g ex
tend
ed p
erio
d of
the
pro
ject
, II
T,
KG
P h
as
als
o s
ou
gh
t co
stes
cala
tion
of th
e pr
ojec
t by
1
6.22
lakh
.
The
pro
ject
has
bee
n co
mm
ence
d w
.e.f
1st
June
2014
. D
GM
S p
erm
issi
on r
ecei
ved
for
cond
uctin
gth
e fie
ld tr
ial.
Act
ion
has
been
take
n fo
r pro
cure
men
tof
equ
ipm
ent a
nd e
xpec
ted
to b
e co
mpl
eted
with
inth
ree
mon
ths.
Pan
el p
repa
ratio
n (B
2 P
anel
) in
Kho
ttadi
h, E
CL
is e
xpec
ted
to b
e co
mpl
eted
with
intw
o m
onth
s.
4. 5.
ANNUAL REPORT 2014-15
42
De
velo
pm
en
t o
f te
lero
bo
tics
a
nd
re
mo
teop
erat
ion
tech
nolo
gy f
or-
unde
rgro
und
coal
min
es –
MT
(E
oI)
/
16
2.
Impl
emen
ting
Age
ncy
:C
ME
RI,
D
urg
ap
ur,
CIM
FR
, D
ha
nb
ad
&C
MP
DIL
, Ran
chi
Bla
st
de
sig
n
an
dfra
gmen
tatio
n co
ntro
l- ke
yto
pro
duct
ivity
- M
T/1
64.
Imp
lem
en
tin
g a
ge
ncy
:C
IMFR
, D
hanb
ad
Sh
ale
ga
s p
ote
nti
alit
yev
alua
tion
of D
amod
arB
asin
of
Indi
a -
CE
(EoI
)/30
.Im
plem
entin
g A
genc
y :
NG
RI,
H
yde
rab
ad
,C
IMF
R,
Dh
an
ba
d a
nd
CM
PD
I, R
anch
i
Fin
anci
alO
utl
ay(
in L
akhs
)
440.
12F
or C
ME
RI -
251.
57F
or C
IMF
R -
125.
55F
or C
MP
DIL
-63
.00
303.
86
2038
.09
For
NG
RI-8
13.8
4Fo
r C
IMFR
-16
9.95
For
CM
PD
IL-
1054
.30
Sep
.20
12
Jan.
2013
Dec
,20
12
Dat
e o
fS
tart
Aug
. 20
15
Dec
., 20
15
Nov
., 20
15
Pro
gres
sive
Dis
bu
rsem
ent
( L
akhs
)S
tatu
s
240.
00C
ME
RI-1
65.0
0C
IMFR
- 7
5.00
250.
00
694.
07N
GR
I-410
.00
CIM
FR-1
40.0
0C
MP
DIL
-144
.07
Lite
ratu
re s
urve
y an
d ba
sic
data
col
lect
ion
from
min
e co
mpl
eted
. C
once
pt h
as b
een
deve
lope
d fo
rth
e w
irele
ss te
chno
logy
. Mod
ules
for
vibr
atin
g w
irese
nsor
s w
ere
deve
lope
d. A
fter
anal
ysis
of d
etai
led
syst
em,
3D C
AD
mod
els
and
arch
itect
ure
desi
gnof
the
pro
pose
d ro
bot
has
been
fin
aliz
ed.
Afte
rsu
cces
sful
des
ign,
the
mod
ules
for
vib
ratin
g w
irese
nsor
and
wire
less
nod
es h
ave
been
dev
elop
ed.
Fro
nt a
nd r
ear
arm
, C
-bra
cket
, sh
afts
of
the
prop
osed
mod
el o
f th
e ro
bot
wer
e al
read
y be
ende
velo
ped
by C
ME
RI,
Dur
gapu
r.
Fie
ld tr
ails
wer
e ca
rrie
d ou
t at N
igah
i Pro
ject
, NC
Lan
d S
onep
ur B
azar
i Pro
ject
, EC
L. T
he e
ffect
of b
last
de
sig
n p
ara
me
ters
on
ro
ck f
rag
me
nta
tio
n,
dist
ribut
ion
patt
ern
and
scat
terin
g ef
fect
wer
est
udie
d fo
r ea
ch b
last
. F
ragm
ent
size
ana
lyse
sw
ere
carr
ied
out u
sing
WIP
FR
AG
sof
twar
e.
Sha
le s
ampl
es fr
om D
harm
a bl
ock
of R
anig
anj a
ndW
est M
ahud
a, S
ingr
a, K
apur
ia o
f Jha
ria c
oalfi
elds
and
Bok
aro
Coa
lfiel
ds w
ere
colle
cted
by
CIM
FR
for
petr
ogra
phic
, T
OC
and
Roc
k ev
al p
yrol
ysis
tes
tsat
CM
PD
I & N
GR
I, H
yder
abad
. Pro
xim
ate
anal
ysis
was
car
ried
out
for
60 s
hale
cor
e sa
mpl
es a
ndad
sorp
tion
isot
herm
of 2
0 sh
ale
core
sam
ples
was
cond
ucte
d by
CIM
FR
, D
hanb
ad.
Geo
-che
mic
alan
alys
is o
f sh
ale
sam
ples
for
Roc
k ev
al p
yrol
ysis
test
s is
und
er p
rogr
ess
at N
GR
I, H
yder
abad
.R
anga
mat
i B
Blo
ck a
t R
anig
anj
coal
field
s an
dw
este
rn J
haria
coa
lfiel
ds h
as b
een
sele
cted
as
suita
ble
site
for c
ondu
ctin
g 3D
sei
smic
sur
vey.
The
vibr
ator
, w
hich
is
maj
or e
quip
men
t in
the
pro
ject
,w
as p
rocu
red
by N
GR
I, H
yder
abad
.
Sch
edu
led
/R
evis
edd
ate
of
com
ple
tio
n
Nam
e o
f th
e P
roje
ct /
Wit
h C
od
e
3.3.
2.S
tatu
s o
f On
-go
ing
S &
T P
roje
cts
up
to 3
1st M
arch
, 201
5
1 2 3Sl.
No
.
Annexure - II
EASTERN COALFIELDS LIMITED
43
Name ofProject
Capacity(MTY)
Capital(`Cr.) Status of Implementation
3.13 Project Monitoring and Status of Implementation of Ongoing Projects :
Annexure - III
Date ofApproval
Khottadih OC Aug.
Sarpi Aug UG.
Bankola R-VI Seam(UG)
Kumardih B UG
Khandra NKJ UG
Parasea Dobrana UG.
Belbaid
1.50
0.30+0.46= 0.76
0.24
1.02
0.285
0.16 (Inc.)
0.36 Incr.
19.26
147.86(120.35
Additional)
19.14
117.90
18.85
11.89
69.11
1. Production achieved in 2014-15: 2.04MT.
2. Acquisition completed for 42.83 Ha.of Govt. land on 17.02.2015.
3. RCE of PR (Capital: ` 60.10 crore)was approved by ECL Board on25.12.14. CIL Board on 27.2.2015approved the expenditure envisagedin first year in RCE till it is finallyapproved by CIL Board.
CM commissioned on 29-8-10.Production achieved in 14-15 is 0.607 Mt.
PR involves widening and deepening ofexisting shafts for entry to the lowerseams. CMPDIL, RI-1 has been askedfor Recast of PR along with updation oftechnology.
1. CIL Board has approved PR forcapacity of 1.02 MTY in hiring ofcontinuous miner with capitalinvestment of ` 117.90 crore on29.05.2014.
2. NIT documents for high speed inclinedrivages and continuous miner areunder preparation.
Widening and deepening of shafts havebeen completed. RI-I has been asked forRecast PR along with updation oftechnology.
PR involves widening and deepening ofexisting shafts for entry to the lowerseams. CMPDIL has submitted the DraftPR of Parasea-Belbaid UG: Capacity:1.83 MTY, Estimated Capital: ` 886.41crore in last week of March 2015.
PR involves widening and deepening ofexisting shafts for entry to the lowerseams. CMPDIL, RI-I was asked forRecast PR. CMPDIL has submitted theDraft PR of Parasea-Belbaid UG,
Nov’ 11
June’08
Mar’03
May '14
July’ 03
Feb’ 04
Feb' 09
Sl.No.
1
2
3
4
5
6
7
ANNUAL REPORT 2014-15
44
Siduli UG.
Nabkajora–Madhabpur Block
Jhanjra PSLW (R-VI)
Rajmahal Expansion
Mohanpur ExpansionOC
Narainkuri UG
2nd Set ContinuousMiner at Jhanjra
Sonepur BazariCombined OC
0.30
0.30
1.70
17.00
1.00
0.54
0.51
8.00
54.99
56.14
287.17
153.82
14.23
149.06
147.25
1055.05
Capacity: 1.83 MTY, Estimated Capital:` 886.41 crore with 3 CMs in last weekof March 2015. Same is underexamination.
Project Report involves shaft sinking forentry to the lower seams. Draft Recastof Siduli, OC: 1.00 MTY, UG: 1.02 MTY,Estimated Capital ` 605.78 crore wassubmitted by CMPDIL in Dec’2014.CMPDIL has been asked to modify thePR.
PR involves widening and deepening ofexisting shafts for entry to the lowerseams. CMPDIL has submitted theProject Report Capacity: 1.08 MTY,Estimated Capital: `1310 crore in 1stweek of Apr.’2015.
Powered support Prototype manufacturedby M/s CODCO. Approval of shieldSupport obtained from DGMS on03.09.2014. Permission for field trial ofRoad Header, electrical equipment forLongwall, Side Loader & electricalequipment for Belt conveyors from DGMSobtained in Feb’2015. The Break BulkCargo (mainly all the Power Supports)shipped from China on 25.02.2015.
1. Acquisition/Possession of land andR & R activities is going on.
2. Production Achieved in 2014-15:15.92 MT
The project achieved its targetedproduction in 11-12.
EC order issued on 23.01.2015. Howeverproject is under recast at CMPDIL.
The CM package commissioned.Production achieved during 2014-15:0.518 MT
1. Production Achieved in 14-15 is 6.40MT.
2. Diversion of NH-60: ` 57.67 crorealready deposited to NHAI. Therevised cost estimate of ` 69.50 croreis under approval by MoRTH.
Dec’ 06
Dec’ 06
Nov. 06
Sept 09
June 08
Feb’ 09
May 11
Aug’ 12
8
9
10
11
12
13
14
15.
EASTERN COALFIELDS LIMITED
45
Khottadih CM
Chitra East OC
0.6 (Incre)
2.50
127.17
112.69
3. Railway Siding: Work of leveling andfilling & construction of bridges isunder progress. 30% work completed.
Global Bid document for ContinuousMiner on risk & gain basis is underprocess for approval.
1. Production achieved during 2014-15:1.735 MT.
2. Transfer of Govt. land: Valuation ofland is completed but Demand byState authority has not been issued.
3. Forest land: (a) Stage-I FC for 124.28Ha obtained on 21.04.2010, (b) Thecompliance of stage-I for obtainingstage-II was recommended by NodalOfficer to PCCF, Jharkhand on05.12.2014 for forwarding it toPrincipal Secretary (Forest). PrincipalSecretary (Forest) has requested Sr.AIG (Forest), MoEF on 16.02.2015 tosend the required information withrespect to amendment/ relaxation incondition no 1 before forwarding thecompliance to MoEF.
May 11
Aug’ 07
16.
17.
ANNUAL REPORT 2014-15
46
Annexure-IV
MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT - 2014-15
Overview of the Indian economy:
With an estimated GDP of approximately US $4.96 trillion in 2013, on a purchasing power parity basis, India is
one of the largest economies in the world (Source: CIA World Fact Book). India is also one of the fastest growing
economies in the world. Coal is the one of the prime fuels in India and has met approximately 52% of India’s total
energy needs and will continue to be crucial to India’s future energy needs.
Global coal industry and reserves:
The world coal reserves as per the rate of production in 2013 are estimated to suffice on an average for the next
113 years, whereas going by the rate of production of coal in India vis-à-vis its proved reserves such period stands
on an average at 100 years. Although proved coal reserves are widely distributed across the world, 82.8% of the
world’s recoverable reserves are located in five regions: the United States (26.6%), Russian Federation (17.6%),
China (12.8%), Total Europe and Eurasia (other than Russian Federation) (17.2%), and Australia (8.6%) (Source:
BP Statistical Review of World Energy June 2014). According to the BP Statistical Review of World Energy June
2013, India accounted for 6.8% of the world’s proved reserves.
Global coal production and consumption:
China is the largest producer of coal 3,680.0 million tons (47.4% of the total worldwide production in 2013),
followed by the United States 892.6 million tons (12.9% of the total worldwide production in 2013. Asia is the
biggest market for coal and currently accounts for 70.5% of global coal consumption, owing to China and India,
who are the primary consumers (Source: BP Statistical Review World Energy June 2014).
Indian coal industry and reserves:
As on 01.04.2014, the estimated geological resource of Indian coal was 301.56 billion tons (Source: MOC, GoI).
In India, coal is the prime fuel used in firing thermal power plants due to its availability and affordability. Coal is the
dominant source of energy and met a substantial part, of the total primary energy requirement of India. The coal
sector in India is primarily dominated by the PSUs under the central and the state governments.
OUTLOOK:
Overview of Eastern Coalfields Limited:
Eastern Coalfields Limited (ECL) a subsidiary of Coal India Limited was incorporated on 1st November 1975 by
taking over 414 mines vested with Eastern Division of Coal Mines Authority Limited (CMAL). It operates in the
states of West Bengal and Jharkhand. ECL is one of the best quality coal producing companies in India. As on
date there are 103 working mines in Eastern Coalfields Ltd., 75 being underground mines, 19 opencast mines and
9 mixed mine.
Strength and weakness:
Competitive Strength:
a. Total geological reserve of 31.32 Billion Tonne of Coal in the state of West Bengal in ECL command area
out of which 13.40 Billion Tonne is in the proven category. ECL has premium grade of coal with average
EASTERN COALFIELDS LIMITED
47
ash content less than 20% at Raniganj Coalfields. This coal can be blended with high ash coal from other
subsidiaries to satisfy MoEF stipulations.
b. Reserves of 18.61 Billion Tonne of Coal down to a depth of 600 metre as on 01.04.2014 (as per GSI) in
Jharkhand where scope for comparatively easy extraction of coal by open cast mining exists.
c. Demand is more than the supply position.
d. Workmen capable of working in difficult conditions.
Weakness:
a. The coal mining in the Raniganj coalfield had started about 150 years back. Hence the company is loaded
with old legacy of small mines, old steam winders working at 50% of its capacity.
b. Difficult geo-mining condition.
c. Dense population impedes acquisition of land.
d. Huge infrastructure built on coal bearing areas hinder open cast mining.
e. Huge pumping and sand stowing cost.
f. Upper water-logged seams impede introduction of Mass Production Technology in lower seams
Opportunities and Threats:
Opportunities:
a. Realisation of better value for coal through e-marketing.
b. Recourse working small OC patches to curb illegal mining.
c. Positive response from Central Trade Unions to issues involving production and productivity.
d. Increasing co-operation from State Governments/local authorities in solving the problems.
Threats:
a. Opposition to acquisition of land by villagers.
b. Opposition to closure of unviable underground mines.
c. Land constraints in introduction of mass production technology in large scale owing to waterlogging of
upper horizon & expansion of OC.
d. Difficulty in better e-marketing of ECL’s coal due to 25% cess charged by the Government of West
Bengal.
Business Strategies:
a. Continue to increase production, productivity and capitalize on the significant demand-supply gap for coalin India.
b. Improve realizations through increased sales of higher quality coal, and e-auction of coal.
c. Enhance profitability and maintain competitiveness by improving operating and cost efficiencies and control.
d. Continue to increase our reserve base by detailed exploration.
e. Continue to focus on developing environmentally and socially sustainable operations.
Net cash from investing activities –1477.34 –1364.21
Net cash used in financing activities –5.75 –5.74
Change in Cash and cash equivalents –501.24 748.92
Closing cash & cash equivalents 686.83 1188.07
MoU Activities :
Particulars
Sl.No.
PerformanceIndicator
MeasurementUnit
Target forthe year
Gross Operating Margin
Working Capital Turnover Ratio
Average number of days of inventory
Average collection period of Trade
Receivables.
1644.56
0.267
14.61
42.81
Achievements
` in crore
Ratio
Days
Days
671 .82
–0.028
14.45
56.70
1
2
3
4
ANNUAL REPORT 2014-15
52
Reasons for Variation in Manpower :
Particulars Executive Non-Executive Total
INCREASE
Fresh Appointment 134 35 169
Appointment against medically unfit cases 0 6 6
Appointment against death cases. 0 556 556
Reinstatement/Re-joined. 2 54 56
Transfer in from other companies. 31 4 35
Appointment against Land Losers 0 313 313
Total Increase (A) 167 968 1135
DECREASE
Retirement 158 3188 3346
Medical Unfit 0 46 46
Death 3 647 650
Resignation 17 7 24
Dismissal/Termination 32 24 56
Transfer to other companies 3 25 28
VR under GHS / EVRS 0 7 7
Special Female VRS 0 123 123
Total Decrease (B) 213 4067 4280
VARIATION (A – B) –46 –3099 –3145
Industrial Relations :
The participative style of management facilitates in settling the disputes/grievances amicably thorough discussion.
As a result the industrial relations in the company during 2014-15 remained cordial. The statistics relating to
Industrial Relation and Law & Order is given below:
HUMAN RESOURCE DEVELOPMENT:
Manpower:
Manpower as on Increase (+)/
31.3.2015 31.3.2014
Executive 2472 2518 –46
Supervisor 4736 5633 –897
Ministerial/ Clerical 3175 3466 –291
Highly Skilled/ Skilled 23422 23636 –214
Semi-Skilled/ Unskilled 34121 35453 –1332
Trainee 755 1120 –365
Total 68681 71826 –3145
Category Decrease (-)
EASTERN COALFIELDS LIMITED
53
Sl No Subject 2014-15 2013-14
1 No. of strikes 1 1
2 Mandays lost (in lakh) 0.25 0.02
3 Production lost (in lakh tonnes) 0.97 0.36
Law and Order :
Subject 2014-15 2013-14
Law and order (Disturbance) 18 54
Production Lost (in Lakh Tonne) 0.63 1.08
Workers’ Participation in Management :
The workers participation in management in ECL is fully operative in all wings of our company. The Joint Consultative
Committees are operating at Corporate as well as at Project/Unit level. The meeting of JCC are held regularly
where important issues are discussed thread bear viz. production, productivity, safety, cost, welfare etc besides
other committee/boards viz safety committee, welfare board, medical advisory board, house allotment committee,
canteen committee etc are also functioning in our company. The Trade Unions very actively participated in such
committees.
Meetings 2014-15 2013-14
No. of JCC Meeting held at HQ level 06 04
No. of structured Meeting held at HQ level 20 20
Employment provided under NCWA & LLS :
Employment provided under 2014-15 2013-14
NCWA 665 590
Land Losers Scheme 275 488
Direct Recruitment 62 158
Reservation for Schedule Caste (SC) / Scheduled Tribe (ST) and Other Backward Class (OBC) in
recruitment and promotion :The Presidential Directives in the matter of recruitment of Scheduled Caste (SC), Scheduled Tribe (ST) and OtherBackward Class (OBC) have been implemented in ECL. The representation of SC and ST candidates in totalmanpower is as under :
As on Total Manpower SC Candidates ST Candidates Number % Number %
31.03.2015 68681 18811 27.39 8949 13.03
31.03.2014 71826 19774 27.53 9475 13.19
A total of 450 candidates belonging to SC community and 206 candidates belonging to ST community were
promoted during 2014-15 against 401 and 187 candidates respectively during 2013-14. As on 31.03.2015, on Roll
OBC community employees are 17094.
ANNUAL REPORT 2014-15
54
Disclosure under Sexual Harassment of women at Workplace (Prevention and Redressal) Act, 2013:
The Internal Complaint Committee (ICC) of ECL under section-2 (h) of Sexual Harassment of women at Workplace
(Prevention and Redressal) Act, 2013 has been constituted on 23.05.2014. So far, two complaints regarding
sexual harassment at ECL have been received and both the cases are under enquiry.
Mou Activities :
Trade Unions:
The majority of our non-executive employees are members of several unions including INTUC, AITUC, HMS, BMS,
UTUC, CITU etc. Some executives are members of CMOAI. The wage revision and other conditions of service of
non-executives employees are governed by the National Coal Wage Agreement (NCWA) formulated by JBCCI.
The JBCCI has signed the MoU for NCWA-IX on 31.12.2011 and consequent from that the NCWA-IX has came into
force with effect from 01.07.2011 for a period of 5 years benefiting all categories of employees excluding executives.
Salaries, perks and allowances etc. of our executive cadre employees are determined by Government of India. The
current compensation package for executives was revised from 1st January, 2007.
Training:
We aim to provide continuous training for our employees. Indian Institute of Coal Management (IICM) which was
formed in 1994 by Coal India Limited (CIL) offers training programmes such as Advanced Management programmes,
Leadership Development programmes, General Management programmes, Young Managers programmes, Advanced
Maintenance practices, Management Development programme, Training and Coaching, Career Development for
junior officers and Communication skills. In addition, our company has arranged for a significant number of executives
to attend external training programmes and sent our employees (including Directors, senior executives and non-
executive employees) for a number of international training sessions outside India. Apart from IICM, at ECL, we
have our HRD centre, VTCs which provide various training to our staff and executives. Induction programmes are
also carried out regularly for newly recruited Management Trainees. HRD is also arranging industrial/vocational
training on need basis for students of various Institutes.
In 2014-15, company had imparted training to 4077 persons compared to 4076 persons in 2013-14. The details are
given below:
Sl.No.
PerformanceIndicator
MeasurementUnit
Target forthe year
Formation of the policy for Jobrotation of the employeesImplementation of OnlineRecruitment systemNumber of structuredmeetings at Corporate levelwith employee’srepresentativesIT initiatives in HR function
Formation of Quality Circles
Achieved. Job rotation policyapproved on 17.02.2015.Online recruitment system is inpractice.Achieved. 26
Achieved. NEIS updation is beingdone regularly.8
Achievements
Month
Month
No.of Meetings
% updation ofNEIS System
No.
March,2015
March,201516
75
4
1
2
3
4
5
EASTERN COALFIELDS LIMITED
55
No. of Course
SlNo.
1. Action Plan :
No. of participants
Year Target Actual
Target Actual Exe. Supv. Worker Total Exe. Supv. Worker Total
Stage-I Clearance has been obtained for diversion of 90.30 Ha of Forest land in favour of Jhanjra UG which
will facilitate expansion of Jhanjra Project by introduction of Longwall panel in the project. Grant of Stage-
I Clearance obtained for diversion of 78.00 Ha of Forest land in favour of Jhanjra UG is in pipeline. Three
New Forestry Proposals initiated for submission of document in the online format as per the requirement
of MoEFCC. Progress of Forest Clearance in 2014-15 at a glance:
Sl.No Activity during 2014-15 No. of Proposals / Clusters
1 Stage-I Clearance Granted 1
2 Proposals Forwarded to MoEFCC for Stage-I Clearance 3
3 Proposals Considered in FAC Meeting 2
4 Proposals Under consideration at State Govt. for Stage-II
Clearance 3
5 New proposals for Stage-I Clearance Initiated 3
The CCI-Project Monitoring Group meeting with Cabinet Secretary, Govt. of West Bengal requires a
ANNUAL REPORT 2014-15
58
special mention, especially w.r.t. speeding up the forestry proposals of West Bengal. The meetings were
of great help in clearing proposals of the state quickly.
3. ISO Certification:
In 2012-13 ISO certification of two projects (Sonepur Bazari, Rajmahal) was obtained for the first time in
ECL. This is also first time in the history of Coal India that a project has obtained certification under IMS
in one go comprising ISO 9001, ISO 14001, OHSAS 18001 instead of attaining IMS in stages. With a view
to maintain a high standard on quality, environment and occupational health care, ECL has decided to
obtain IMS certification for the company as a whole.Approval of the proposal for all units of ECL was made
on 16.07.2014 for an amount `82.94 lakhs appointing CMPDI as consultant in the job. Manuals on
Integrated Management System (IMS) have been released on 26-03-2015.
4. Participation International Conference:
A paper on reclamation work of ECL regarding “The Development of Ratibati OCP to Gunjan Ecological
Park” was presented in the International Conference on “ Environment Management in Coal Mining-
Sustainable Way Forward” organized by MoEFCC on 21st -22nd March, 2015 The paper highlighted the
joint efforts of ECL with Asansol Police Commissionrate in restoring Ecological Balance in the Area. The
effort was highly appreciated specifically for the attraction of migratory birds in the Park, an activity on
sustainable way forward.
5. Sustainable Development initiatives: Rain Water Harvesting
In continuation to our initiative for rain water harvesting, three more rooftop rainwater harvesting projects at
Salanpur, Satgram, Sonepur Bazari areas were successfully completed and evaluated during the year.
Regular Environmental Programs:
1. Plantation:
During 2014-15, 66500 saplings were planted over an area of 35 Ha against a target of 50000 saplings
under MoU. Progressive plantation made through State Forest Departments in ECL command area is
6.9913 million saplings over an area of 2805 .497 Ha of land.
2. Campaigns & Awareness Program: Observation Of World Environment Day:
World Environment Day was observed on 5th June 2014 throughout ECL by hoisting Environment Flag,
oath taking and tree plantation. It was followed by inter-colliery/project//area competition on 6th, 7th & 9th
June 2014. Different inspection teams were constituted to inspect all units and areas and evaluate their
annual performance of environment measures/activities. On the eve of World Environment Day, the prizes
for the last year’s competition were awarded to the winners of area/ colliery.
3. Reclamation and Restoration work in Areas of ECL:
3-tier Plantation and Ecological restoration is requirement of day to attain better restoration. The plantation
works in Mugma Area exemplifies the same. On the similar lines we have planned for reclamation of 10 Ha
in Sonepur Bazari area, wherein, 3-Tier Plantation will be done to convert the rocky OB to a lush green
forest.
EASTERN COALFIELDS LIMITED
59
MoU Activities:
Sl.No. Performance Indicator Measurement
UnitAchievement
Target forthe Year
Achieved. Draft EIA/EMPsubmitted to WBPCB on24.04.2014
Achieved. Public hearing heldon 18.07.2014
Achieved. Submitted forapproval on 12.09.2014.
Achieved. 66500 trees planted
Month
Month
Month
No. of Plants
July,2014
Oct,2014
Jan,2015
45000
1.
2.
3.
4.
Submission of draft EIA/EMP of NorthSearsole OC based on TOR to WBSPCBfor conducting Public Hearing
Conduction of Public Hearing for EC
Approval of EMP by MoEF
Tree Plantation
ANNUAL REPORT 2014-15
60
ANNEXURE-V
CSR Activities-2014-15
Brief outline of the company’s CSR Policy:
Revised CIL CSR Policy communicated vide Office Memorandum No.-CIL/CSR/2014/1082 dated 13.06.2014 in
consonance with amendment of Companies Act, 2013 has been adopted and implemented at ECL. The DPE
Guidelines on CSR vide F.No.-15(13)/2013-DPE(GM) dated 21st October, 2014 effective form 01.04.2014 are also
adhered to. It integrates our business with social processes by making its welfare measure focused primarily on
land oustees and PAP’s staying in the radius of 25 KM. It ensures that poor and needy section of the society
derives the maximum benefit to support their development and sustainability. The Projects and Programs have
been directed in the following priority areas at ECL.
1. Drinking water facility.
2. Education.
3. Solar lighting system.
4. Health and family welfare.
5. Sanitation and public health.
6. Infrastructure development such as construction/repair of Community Centers/ Buildings/ Old AgeHomes, building of roads, pathways and bridges etc.
7. Promotion of Sports & Games.
8. Setting of skill development centers.
9. Supplementing Development Programs of the Govt.
10. Construction of Toilets and other related activities under Swachh Bharat/Swachh Vidyalaya Abhiyan.
Composition of CSR Committee:
In order to steer the CSR & Sustainability agenda of the company the two-tier structure, comprising of a Board
level committee, headed by Chairman-cum-Mg. Director and a below Board level committee headed by GM(W&CSR)
were constituted for planning, implementation, monitoring and evaluation of CSR and Sustainability activities of
ECL.
In addition to above a CSR committee has been constituted at ECL HQ as specified in CIL CSR Policy for co-
ordination of CSR activities from concept to conclusion.
At the Area Level, a CSR Committee of multi-disciplinary executives has also been constituted for implementing
their CSR Activities.
Average net profit of the company for last three financial years:
The determination of the amount as 2% of Average Net Profit/Profit before Tax of previous three years as per
section 198 of the Companies Act, 2013 is as follows:
:
EASTERN COALFIELDS LIMITED
61
(Rakesh Sinha)
Chairman-cum-Mg. Director
Chairman-CSR & Sustainability Committee
Place-Sanctoria
Date- 14th May, 2015
Particulars 2011-12 2012-13 2013-14
Profit before Tax 962.13 1897.18 1299.28
Less Profit on Sale of Assets 1.32 0.80 1.63
Profit u/s 198 960.81 1896.38 1297.65
Average of CSR Budget for 2014-15: {[(960.81+1896.38+1297.65}*2%} i.e. ` 27.70 Crore. Thus the CSR budget
should be restricted to the 2% of Average Net Profit + `10.20 crore as unspent committed expenditure of 2013-
14 i.e. `37.90 Crore.
Prescribed CSR Expenditure:
Fund provisioning by ECL is based on the CSR Policy of CIL which is 2% of Avg. net profit or ` 2/- per tonne of
coal production of previous year which ever is higher. Production in 2013-14 was 36.046 MT. Hence CSR provision
at the rate of `2/- per tonne of coal production would have been ` 7.21 crore, whereas @ 2% of Average Net Profit
comes to `27.70 crore which is higher. The spill over expenditure of last year is `10.20 crore and hence the totalal
budgeted amount comes to ` 37.90 crore.
Details of amount spent on CSR activities during the financial year:
a. Total Budget for the financial year 2014-15- ` 37.90 crore
b. Amount unspent- `13.05 crore
c. Actual amount incurred on CSR Activities ` 24.85 Crore. Details of CSR Activities are enclosed as
Annexure-A.
Reason for unspent amount lying in CSR budget:
As per the directions given by MHRD, Govt. of India and final report of survey conducted, ECL has been assigned
to take up toilet work in 1942 schools in district of Purulia (West Bengal) and Deoghar & Shaibganj (Jharkhand).
We are to construct 1344 new toilets and make functional 2144 number of dysfunctional toilets in totality 3488 by
30th June, 2015. With the Swachh Bharat Abhiyaan the budget was diverted towards construction of toilets. Due
to the introduction of code of conduct in the state of Jharkhand because of the Legislative Election the process got
delayed. The resources are being geared up to minimize the time delay and maximize the scope of CSR expenditure
by the CSR Committee of HQ and Areas.
It is hereby confirmed that the implementation and monitoring of CSR Policy at ECL is in compliance with CIL
CSR Policy in line with Companies Act, 2013 and DPE Guidelines effective from 01.04.2014.
ANNUAL REPORT 2014-15
62
ANNEXURE - A
CSR Activity for the Financial Year 2014-15
Water supply
Water supply
Water supply
Water supply
Water supply
Infrastructure
Infrastructure
Medical
Medical
5.48
6.77
5.27
5.34
5.25
2.37
10.21
2.7
1.25
1.
2.
3.
4.
5.
6.
7.
8.
9.
Construction of borewell,submersible pump, pumphouse, water reservoir, ladiesbathroom at Hansdiha villageunder S.B. Area.
Construction of borewell,submersible pump, pumphouse, water reservoir, ladiesbathroom at Bazari village underS.B. Area.
Construction of borewell,submersible pump, pumphouse, water reservoir, ladiesbathroom at Bhaluka Arsolavillage under S.B. Area.
Construction of borewell,submersible pump, pumphouse, water reservoir, ladiesbathroom at Sonepur villageunder S.B. Area.
Construction of borewell,submersible pump, pumphouse, water reservoir, ladiesbathroom at Basak Dangarvillage under S.B. Area.
Construction of One Room forCricket Academy at Haripur,Sonepur Bazari Area.
Construction of community hallnear Primary school,Chinchuria Village, SonepurBazari Area.
Mobile Medical Van at SonepurBazari
Medical Camps at SonepurBazari
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
5.48
6.75
4.99
5.14
5.19
2.53
10.21
2.70
1.01
5.48
6.75
4.99
5.14
5.19
2.53
10.21
2.70
1.01
( ` in Lakh)
Sl.No. Activity Sector
Amount Spentdirectly or through
Implementingagency
Budgetoutlay
AmountSpent
ComulativeExpenditure
upto31.03.2015
EASTERN COALFIELDS LIMITED
63
Infrastructure
Medical
Infrastructure
Infrastructure
Sports
Medical
Infrastructure
Infrastructure
Infrastructure
Infrastructure
Infrastructure
Infrastructure
Infrastructure
19.18
0.45
2.8
2.68
0.35
0.52
14.95
2.06
23.11
3.59
69.6
1.84
4.13
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
18.62
0.45
2.77
2.68
0.35
0.52
12.33
1.92
8.18
3.58
32.38
1.31
1.13
Construction of Toilets andDrinking water provision withwater purification in all schoolssituated in and aroundCoalfields of ECL
Programme at KhandraPartibandhi Karmakendra
Construction of Burning Stagewith overhead shed at ChoraVillage, Kenda Area
Construction of Burning Stage
Sports for Physical Challenge/disable person
Medical camp at Kenda Area
Construction of Toilets andDrinking water provision withwater purification in all theschools situated in and aroundCoalfields of ECL
Child and Adult EducationCentre for SC/ST at NuniVillage
Construction of Toilets andDrinking water provision withwater purification in all schoolssituated in and aroundCoalfields of ECL
Construction of Boundary Wallat Balanpur Primary School atBalanpur Village
Construction of Road toMahabir Colliery from NSBRoad Raniganj
Making Concrete Pavementthrough burial Ground fromNorthsearsole Road Junction toKatagoria village
Construction of 3 (Three) roomwith Verandah at DanshaPlaying Ground
18.62
0.45
2.77
2.68
0.35
0.52
12.33
1.92
8.18
3.58
32.38
1.31
1.13
ANNUAL REPORT 2014-15
64
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
Construction of approach Roadfrom Toposi Rail Gate to Toposivillage.
Renovation of water supply pipeline at Dandadih village
CSR budget for skil ldevelopment TrainingProgramm (ATDC)
Medical Camp at KunustoriaArea
Construction of Boundary wallat Shyamsunderpur villagefootball ground
Construction of Boundary wallin front side of Dihipark and PCCroad including drain inside DihiPark at Kumardihi Village
Making RCC roof over the stageincluding green room at Ukhraschool Football ground in Ukhravillage, Bankola Area
Permanent Water Supplypipeline at Kumardihi & SSPurVillage from Kumardihi-AColliery
Distribution of Aids Appliancesto physically Challenged person
Medical Camp at Bankola Area
Construction of Road at Tilabonigram to Main Para and one BusStand
Installation of 4 NumberHandpump in Jamgura Village
Construction of PCC Road of257 mtr from Kali Mandir toGhosh Para with Drain
Construction of Road FromHazra Para to Shiv Mandhir atKuchudihi village & drain atNamu Para (110 mtr Length)
Infrastructure
WaterSupply
Skilldevelopment
Medical
Infrastructure
Infrastructure
Infrastructure
Infrastructure
Medical
Medical
Infrastructure
WaterSupply
Infrastructure
Infrastructure
34.32
5.8
24.53
1
17.79
13.46
4.2
0.77
0.5
1
10.93
3.76
11.3
4.34
31.07
5.71
10.26
0.55
17.02
13.33
2.83
0.74
0.5
0.69
9.92
0.27
9.94
3.77
31.07
5.71
10.26
0.55
17.02
13.33
2.83
0.74
0.50
0.69
9.92
0.27
9.94
3.77
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
EASTERN COALFIELDS LIMITED
65
Construction of PCC Road atBalijuri from main Road to BagdiPara and Construction of Wallat Pond nearby the road-Balance work of 80 mtr
Construction of PCC Road of700 mtrs from Bouri Para toSamshan Ghat and two culvertsat Luadoha Village
Construction of PCC Road atNabhagahanpur from Das Parato Netaji Sangha
Health Camps at Jhanjra Area
Community Development atJhanjra Area
Proposal for Drinking Waterthrough Water Tanker to nearbyvillages in periphery of RajmahalArea.
Construction of P.C.C. Road inGudia village, Rajmahal Area
Construction of P.C.C. Road inBeltekri village, Rajmahal Area
Construction of P.C.C. Road inGandhinagar, Rajmahal Area
Construction of PCC Road inLalmatia- Pirpainti road at JhirliVillage from Starting Point toexisting P.C.C. road (L=1000 m)
Construction of PCC Road atBabupur Village near PanchayatBhawan towards village end(L=225m)
Construction of PCC Road atDorma Village from PrimarySchool towards village end(L=1000m)
Construction of Kurkutia Villagefrom Culvert to Lalmatia-Mahagama road junction ViaPrimary School (L=400m)
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
Infrastructure
Infrastructure
Infrastructure
Medical
CD
WaterSupply
Infrastructure
Infrastructure
Infrastructure
Infrastructure
Infrastructure
Infrastructure
Infrastructure
3.01
20.79
16.68
1.59
25.04
198.07
22.81
23.72
23.68
33.63
7.95
33.62
13.16
3.00
18.29
14.07
1.59
25.04
198.07
23.99
22.16
23.42
31.18
9.85
33.62
13.16
3.00
18.29
14.07
1.59
25.04
198.07
23.99
22.16
23.42
31.18
9.85
33.62
13.16
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
ANNUAL REPORT 2014-15
66
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
Construction of PCC Road atHarkatta Village near ManjhiSthan & Anganwadi Kendra(L=700m)
Construction of PCC Roadtowards Hetbandha village end.
Construction of PCC road fromSimra More to Chhota Simra.
Rain Water Harvesting nearExpert Hostel,Rajmahal Area
Construction of Library at IswarMarandhi Nagar Rehabilitationsite at Rajmahal Area
Skill development TrainingProgram(ATDC)
Skill development TrainingProgram(ATDC)
Medical Camp at Rajmahal
Construction of Toilet at GirlsSchool, Kendua
Const. of Bus shed with 2 NoUrinals at Basua Chowk atMahagama
Deep borewell with pipeline CSRwork in 2012-13 Tetaria villagenear Bajarangabali Mandir
Community Toilet (15 Nos.)at 10different villages
Air Ticket for Professionals
Construction of toilets in theGovt. schools of Purulia district.
Construction of toilets in theGovt. schools of Deoghardistrict.
Construction of toilets in theGovt. schools of Sahibganjdistrict.
Infrastructure
Infrastructure
Infrastructure
Watersupply
Infrastructure
SkillDevelopment
SkillDevelopment
Medical
Infrastructure
Infrastructure
WaterSupply
Infrastructure
Others
SwachhBharat
SwachhBharat
SwachhBharat
24.68
13.45
10.42
11.07
15.74
35.91
17.8
3.48
2.04
2.59
4.52
6.25
0.29
465
500
250
24.49
12.58
10.33
7.17
11.49
21.62
9.4
3.25
1.69
1.52
3.83
5.8
0.29
465
500
250
24.49
12.58
10.33
7.17
11.49
21.62
9.4
3.25
1.69
1.52
3.83
5.8
0.29
465.00
500.0
250.00
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
EASTERN COALFIELDS LIMITED
67
Skill development livelihoodcentre for vocational training(Sambhav Foundation)
Financial assistance forconstrution of classroom forSanctoria Upendranath SishuSiksha Kendra
Engagement of MMV forproviding medical and health careservice for underprivileged aroundECL
Payment to TISS
Conducting ResidentialEmployable Skill developmentTraining Programmes for SC, ST,OBC, GEN & Minority Youths onPlastic Engineering &Technology under CSR Schemeby Central Institute of PlasticEngineering & Technology(CIPET), Bhubaneswar.
Livelihood Skill DevelopmentTraining Programme at SalanpurArea by Vyakti Vikash Kendra(VVKI)
Construction of Graveyard shedbuilding at Kultora, Kult iMuncipality (Ward No.2)
Construction of two classroomsfor computer class to SitarampurRamakrishna Sarada Sangha,Master Para, Sitrampur,Burdwan.
Community Participation ModelProject for EconomicDevelopment and NutritionalHealth Management ThroughOrganic Farming, Education andDemonstrations by I.I.T.,Kharagpur
66.
67.
68.
69.
70.
71.
72
73
74
SkillDevelopment
Infrastructure
Medical
Others
SkillDevelopment
SkillDevelopment
Infrastructure
Infrastructure
SkillDevelopment
21.66
3.81
7.00
3.03
48.8
15.42
12.72
5.93
49.6
10.83
1.9
7.00
3.03
24.4
7.713
6.36
5.93
19.84
10.83
1.9
7.00
3.03
24.4
7.713
6.36
5.93
19.84
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
ANNUAL REPORT 2014-15
68
75
76
77
78
79
80
81
82
83
84
85
Construction of Students HomeBarapukhuria, rural centre ofAsansol Vivekananda Math
Engagement of MMV forProviding Medical and HealthCare Service for Underpriviegedaround ECL, HealthManagement and ResearchInstitite
Engagement of MMV forProviding Medical and HealthCare Service for Underpriviegedaround ECL, WockhardtFoundation
Solar Electrification programmeat Purulia District, by MLINDAfoundation
Training Program at Hyderabad
Nomination fee for trainingprogramme organized by GlobalGandhian Trust ship & CorporateResponsibility Foundation onAdvance Certificate TrainingWorkshop on Corporate SocialResponsibility Bhubaneswar
Taxi bill for local movement inMumbai to attend SeminarWorkshop on SR/SD from 7 thto 9th March 2014
Financial Assistance for furtherdevelopment of Punardrishti Eye& General Hospital (A unit ofAsansol Prevention of BlindnessSociety) at Asansol
Skill development to create forincome generation for projectaffected people/poor and needypersons ITI Kanyapur
Issue of 60 nos of Solar StreetLights in 10 nos of villages underKulti Muncipality.
Construction of Classroom ofRamakrishna Ashrama Vidyapith
Infrastructure
Medical
Medical
Solar Light
SkillDevelopment
SkillDevelopment
Others
Infrastructure
SkillDevelopment
Solar Light
Infrastructure
14.06
21.15
21.15
24.7
0.528
0.2
0.06
15.9
6.00
5.56
2.75
14.06
21.15
21.15
24.7
0.528
0.2
0.06
15.9
6.00
5.56
2.75
14.06
21.15
21.15
24.7
0.528
0.2
0.06
15.9
6.00
5.56
2.75
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
EASTERN COALFIELDS LIMITED
69
Hire Charges for Ambulance
Computer Training
Swachh Vidyalaya awarenessprogram in Schools
Workshop on CSR at Pune
Burdwan District TT Association
Miscellaneous Expenditure
Community Development
Construction of Classroom ofRamakrishna Ashrama Vidyapith
Strengthening of Road from SandBunker to Bhara High School,Satgram Area
Construction of communitycentre at Jemeri Colliery, Satgram
New Talab Ghat at Birala Village(Chasapara), Satgram Area
Construction of Toilets andDrinking water provision withwater purification in all schoolssituated in and around Coalfieldsof ECL
Laying of pipeline from officercolony to bunker & bunker to pondat Beliadathan Village
Medical Camp at Satgram Area
Construction of 8 nos of Bathingghat (2 nos each at 4 nos. pond)at Khottadih Vil lage underKhottadih OCP.
Construction of 8 nos. shed infour nos. of football ground atKhottadih Village.
Construction of boundary wall &gate around Shyama SmrityVidyamandir Primary School atKhottadih Village under KhottadihOCP.
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
Medical
Others
SwachhVidyalay
Sports
Others
CD
Infrastructure
Infrastructure
Infrastructure
Infrastructure
Infrastructure
WaterSupply
Medical
Infrastructure
Infrastructure
Infrastructure
SkillDevelopment
3.99
0.16
0.34
0.19
0.15
0.05
7.35
5.49
18.51
1.26
1.00
14.4
8
1
3.5
7.46
3.24
3.72
0.16
0.34
0.19
0.15
0.05
7.35
(–) 5.49
17.51
1.23
0.99
9.25
7.47
0.35
3.46
7.42
3.24
3.72
0.16
0.34
0.19
0.15
0.05
7.35
(–) 5.49
17.51
1.23
0.99
9.25
7.47
0.35
3.46
7.42
3.24
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
ANNUAL REPORT 2014-15
70
Laying of Pipeline from Ajoy Riverto Khottadih Village for Supply ofdrinking water to villages atPandaveswar
Construction of rest shelter andapproach road at Pandavsthan atPandaveswar.
Medical Camp at PandaveshwarArea
Various CSR Activities
Construction of Toilets andDrinking water provision withwater purification in all schoolssituated in and around Coalfieldsof ECL
Medical Camp at Sripur Area
Providing P.C.C road at Dhamna-Chikania Village through SPMArea
Construction of PCC road (500m)at Damgarha Road to Yadav Tolaand Kole Tola through SPM Area
Construction of PCC road (450m)from Harijan Tola to SonaPokhara Pond at Chitra throughSPM Area
Installation of 31 Nos of HandPump in Nearby Villages ThroughSPM Area
Medical Camp at SP Mines
Construction of Toilets andDrinking water provision withwater purification in all schoolssituated in and around Coalfieldsof ECL
Connstruction of CommunityToilet at Ruidas Para near ICDScentre of Kajoragram.
Construction of Water Tank atMugdhi Para Primary School atDakshinkhanda.
103
104
105
106
107
108
109
110
111
112
113
114
115
116
WaterSupply
Infrastructure
Medical
Infrastructure
Infrastructure
Medical
Infrastructure
Infrastructure
Infrastructure
WaterSupply
Medical
Infrastructure
Infrastructure
WaterSupply
14.99
7.99
1.08
2.79
16.78
0.4
5.46
9.1
8.2
20.76
4.08
12.4
1.12
0.74
12.21
7.96
1.08
2.79
16.14
0.4
5.4
9.1
7.75
20.76
4.08
7.67
1.3
0.72
12.21
7.96
1.08
2.79
16.14
0.4
5.40
9.10
7.75
20.76
4.08
7.67
1.30
0.72
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
EASTERN COALFIELDS LIMITED
71
Construction of Burning Shed &Masonary Ghat at GoidhabaSamsan of Damari Bandh.
Construction of Burning Shed &Masonary Ghat at KodmoSamsan of Dakshinda.
Construction of Community Toiletnear D.S.A Club atDakshinkhanda.
Construction of Well at RuidasPara near ICDS Centre ofKajoragram.
Construction of Bus Stand Shedat Kajora Bazar Near High Schoolof Kajora Gram.
Construction of Community Hallat Pasrascol Village
Community Hall Construction.
Medical Activity at Kajora Area
Construction of Community Hallat Alkusha ST Village nearBhamuria Colliery
Construction of Community Hallat Bhamuria Bauri Para nearDharmasthan
Construction of Toilets andDrinking water provision withwater purification in all schoolssituated in and around Coalfieldsof ECL
Construction of Cement ConcreteRoad Mithani Village (Domparaand Kewarpara and heighteningof guard wall Mithani Village),Sodepur Area
Water Supply Scheme for HijuliVillage under Parbelia Group,Sodepur Area
Hire charges of MMV
World Diabetic Day
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
Infrastructure
Infrastructure
Infrastructure
Infrastructure
Infrastructure
Infrastructure
Infrastructure
Medical
Infrastructure
Infrastructure
Infrastructure
Infrastructure
WaterSupply
Medical
Medical
2.33
2.76
1.34
1.12
1.03
2.2
0.06
3.8
7.05
7.2
10.4
5.46
23.5
1.89
0.02
2.65
2.27
1.28
1.07
1.01
2.2
0.06
3.8
7.05
7.2
8.72
5.19
9.14
1.89
0.02
2.65
2.27
1.28
1.07
1.01
2.2
0.06
3.8
7.05
7.2
8.72
5.19
9.14
1.89
0.02
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
ANNUAL REPORT 2014-15
72
World Aids Day
Baby Show Day
Hydrocele Camp Medicine
Bidhan Chandra PratibandhiKarma Kendra for donation toHandicap person
Pipeline work at Shiv Dangavillage from Mandman CollieryV.T. Pump for supply of water
P/F G.I. pipeline for water supplyat Amdangal village nearChapapur Colliery
P/F of G.I. Pipeline at Jhilnglartola Ramkanali village for supplyof water near Hariajam Colliery
P/L of G.I. Pipeline from V.T Pumpto Kuhuka village for supply ofwater near Hariajam Colliery
P/L pipeline from Mugma MoreBarrack to Muchipara andKalimali Colony for supply ofwater near Mandman Colliery
P/L G.I. Pipeline at differentplaces for Pandra village nearHarijam Colliery
Development of playing ground &heightening of B/wall includingdrainage system at JKR highschool and Ginni Devi Girls HighSchool at Chikunda
P/L GI pipeline from SasanberiaPanchayat office to Danga paravillage
132
133
134
135
136
137
138
139
140
141
142
143
Medical
Medical
Medical
Medical
WaterSupply
WaterSupply
WaterSupply
WaterSupply
WaterSupply
WaterSupply
Infrastructure
WaterSupply
0.06
0.21
0.12
10.29
8.04
3.11
4.11
7.78
5.36
11.87
9.4
13.63
0.06
0.21
0.12
10.29
4.7
2.97
3.37
6.99
3.74
10.73
8.44
11.58
0.06
0.21
0.12
10.29
4.7
2.97
3.37
6.99
3.74
10.73
8.44
11.58
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
EASTERN COALFIELDS LIMITED
73
P/F G.I.Pipeline for water Supplyto Ramkanali Vil lage nearChapapur Colliery
Construction of Toilets andDrinking water provision withwater purification in all schoolssituated in and around Coalfieldsof ECL
Medical Camp at Mugma Area
TA/DA to Attend Seminar in Delhirelated to CSR
Total Expenditure
144
145
146
147
WaterSupply
Infrastructure
Medical
Others
1.69
16.78
0.14
0.22
1.36
16.62
0.14
0.22
1.36
16.62
0.14
0.22
2485.69
Implementing Agency
Implementing Agency
Implementing Agency
Implementing Agency
ANNUAL REPORT 2014-15
74
ANNEXURE - VI
REPORT ON CORPORATE GOVERNANCE:
(1) Philosophy:
Corporate Governance may be defined as a set of systems, processes and principles which
ensure that a company is governed in the best interest of all stakeholders. ECL firmly believes
that Corporate Governance is a culture under which an organization is nurtured and flourishes
by using its core values and the means by which it fulfills the public trust and its stakeholders’
expectations. At ECL, it is not just a compliance with laws and ethical standards instead it is an
important business investment which is not only necessary to preserve our reputation but also
crucial for obtaining and retaining our business.
Transparency, accountability and integrity are the main ingredients of good corporate governance.
Your company as a good corporate citizen believes in adhering to the highest standards of
corporate governance. ECL provides appropriate access to information to the citizens of India
under the provisions of Right to Information (RTI) Act, 2005.
(2) Board of Directors:
(A) Composition of the Board:
We are a Government company within the meaning of section 2(45) of the Companies Act, 2013
as Coal India Limited holds entire paid-up share capital. As per Articles of Association the power
to appoint Directors rests with the President of India.
In terms of Articles of Association of the company strength of our Board shall not be less than 2
Directors and not more than 15 Directors. These Directors may be either whole-time Functional
Directors or part-time Directors. The Directors are not required to hold any qualification share.
As on 31st March 2015, Board comprised 6 Directors, out of which 4 were whole-time Functional
Directors including Chairman-cum-Mg. Director.
The Directors bring to Board wide range of experience and skills.
DIRECTORS:
During the year 2014-15, Shri Rakesh Sinha was the Chairman-cum-Managing Director of the
Company. The other Directors on the Board of the Company during 2014-15 were Shri A. Chatterjee
Details of number of Board meetings attended by each of the Directors are given below :
EASTERN COALFIELDS LIMITED
77
Shri Rakesh Sinha Chairman-cum-Mg. Director 2,623,068.00 59,237.00 2,682,305.00
Shri S. Chakravarty Director (Technical) Opn. 2,329,031.00 87,746.00 2,416,777.0
Shri C. K. Dey Director (Finance) 2,519,248.00 208,395.00 2,727,643.00(Upto 28.02.2015)
Shri Ramesh Chandra Director (Technical) P&P 968,005.00 157,802.00 1,125,807.00(upto 30.06.2014)
Shri K.S. Patro Director (Personnel) 2,261,248.00 254,693.00 2,515,941.00
Shri B.R. Reddy Director (Technical) P&P 1,183,103.00 20,375.00 1,203,478.00(From 30.09.2014)
DesignationName
(C) Remuneration of the Director :
(i) Functional Directors :
Remuneration for the year 2014-15(Amount in ` )
Other
benefits
All elements of remunerationpackage (i.e. salary, pension,
P.F., gratuity etc.)Total
(ii) Part-time official Directors:
No remuneration is paid to the Part-time official Directors by the Company.
(iii) Part-time Non-official Directors:
No remuneration is being paid to Part-time Non-official Directors except sitting fee. Details of sitting fee
paid for attending Board / Committee Meetings are shown below.
Sl. No. Name of the Director Total Sitting Fee Paid (` )
1 Shri K.K. Gautam 1,70,000
2 Shri Subrata Chaudhuri 10,000
3 Shri S.K. Mohanty 10,000
4 Shri S.M. Lodha 20,000
5 Shri S.M. Sharma 60,000
TOTAL 2,70,000
3. Board Committee:
[A] Audit Committee:
Your Company has an independent Audit Committee. The composition, procedures, powers and role/
functions of the Audit Committee, constituted by the Company is to comply with the requirements of
the Companies Act.
ANNUAL REPORT 2014-15
78
Scope of Audit Committee:
The scope of Audit Committee is as follows:-
1. Overseeing of the company’s financial reporting process and the disclosure of its financial information toensure that the financial statement is correct, sufficient and credible.
2. Recommending to the Board the fixation of audit fees.
3. Recommendation to the Board for fixation of fees to statutory auditors for any other services rendered bythe statutory auditors.
4. Reviewing, with the management, and ensuring that the annual financial statements are in compliancewith applicable laws before submission to the Board for approval, with particular reference to:
a) Matters required to be included in the Directors Responsibility Statement to be included in theBoard’s report in terms of section 134 (5) of the Companies Act, 2013;
b) Changes, if any, in accounting policies and practices;
c) Major accounting entries involving estimates based on the exercise of judgment by management;
d) Significant adjustments made in the financial statements arising out of audit findings;
e) Compliance with legal requirements relating to financial statements;
f) Disclosure of any related party transactions; and
g) Qualifications in the draft audit report.
h) The management discussion and analysis of financial condition and results of operations.
5. Reviewing, with the management, the quarterly financial statements before submission to the Board forapproval.
6. Reviewing with the management, performance of internal auditors and adequacy of the internal controlsystems.
7. Reviewing the adequacy of internal audit function, if any including the structure of the internal auditdepartment, staffing and seniority of the official heading the department, reporting structure coverage andfrequency of internal audit and the information regarding appointment and / or removal of Internal Auditor.
8. Discussion with internal auditor and / or auditors any significant findings and follow up thereon.
9. Reviewing the findings of any internal investigations by the internal auditors / auditors / agencies intomatters where there is suspected fraud or irregularity or a failure of internal control system of a materialnature and reporting the matter to the Board.
10. Discussion with statutory auditors before the audit commences, about the nature and scope of audit aswell as post-audit discussion to ascertain any area of concern.
11. Looking into the reasons for substantial default in the payment to the depositors, debenture holders,shareholders (in case of non-payment of declared dividends) and creditors.
12. Reviewing the functioning of the Whistle Blower Mechanism.
13. Reviewing the follow up action on the audit observations of the C&A G audit.
14. Any difficulties encountered during audit work including any restrictions on the scope of activities oraccess to required information.
15. Reviewing the follow up action taken on the recommendations of Committee on Public Undertakings(COPU) of the Parliament.
EASTERN COALFIELDS LIMITED
79
Composition:
Audit Committee comprised of 2 (Two) part-time official directors viz. Shri V. Peddanna, and Shri A.Chatterjee (upto 28.02.2015), 4 (four) part-time non-official directors viz. S/Shri S. Chaudhuri (upto23.06.2014), S.K. Mohanty (upto 23.06.2014), S.M. Lodha (upto 23.06.2014) and S.M. Sharma (upto08.09.2014), 1 (one) Special Director, BIFR viz. Shri K.K. Gautam (upto 28.02.2015) and 2 (two) FunctionalDirector viz. Shri S. Chakravarty, Director (Technical) Operations and Shri K.S Patro, Director (Personnel),ECL w.e.f 25.02.2015.
Shri S.M. Sharma, part-time non-official director was Chairman of the Committee for first 2 meetings (63rdand 64th Audit Committee Meetings held on 24.05.2014 and 28.07.2014 respectively) and Shri V. Peddanna,part-time official director was Chairman for rest of the meetings.
Director (Finance) and Chief Manager (F)/HOD (IA) are the permanent invitee to the Audit Committee andCompany Secretary is Secretary to the Committee.
6 (six) meetings of the Audit Committee were held during the financial year 2014-15. The details of theAudit Committee Meeting are as follows:
Members
Functional Part-time Part Time Total Official Non-Official
In the 261st meeting of the ECL Board, CSR & Sustainability Committee was constituted. The Committee
was re-constituted by including Shri C.K. Dey, Director (Finance), ECL (upto 28.02.2015) and Shri B.R.
Reddy, Director (Technical) P&P w.e.f 02.11.2014. The Chairman of the Committee was Shri Rakesh
Sinha. During the year 2014-15, 2 (two) meetings of the Committee on C.S.R. & Sustainability were held
i.e. on 11.07.2014 & 02.11.2014. The details of members and their attendance at meeting are given below:
Sl. Members Meeting held during No. of Meetings
No. respective tenure of members attended
1 Shri Rakesh Sinha 2 2
2 Shri V. Peddanna 2 2
3 Shri K.K. Gautam (upto 28.02.2015) 2 2
4 Shri Subrata Chaudhuri (upto 23.06.2014) - -
5 Shri S. K. Mohanty (upto 23.06.2014) - -
6 Shri S.M. Sharma (upto 08.09.2014) 1 1
7 Shri S. Chakravarty 2 2
8 Shri Ramesh Chandra (upto 30.06.2014) - -
9 Shri K.S. Patro 2 2
10 Shri C.K. Dey (from 02.11.2014 to 28.02.2015) - -
11 Shri B.R. Reddy (from 02.11.2014) - -
EASTERN COALFIELDS LIMITED
81
Statutory Auditors:
Under Section 139 of the Companies Act, 2013 the following Chartered Accountants Firms were appointed by theComptroller and Auditor General of India for conducting audit of the financial accounts of the company for the year2014-15:
Statutory Auditors:1. M/s. M Choudhury & Co., 162, Jodhpur Park, Kolkata-700068.
Branch Auditors:
2. M/s. U S Saha & Co., 228 Kamalalaya Centre, 2nd Floor, 156 A Lenin Sarani, Kolkata-700013.
3. M/s R P Boobna & Co., Karnani Estate, 209 AJC Bose Road, 2nd Floor, Room No.-87, Kolkata-700017
4. M/s. L B Jha & Co., GF-1, Gillander House, 8, Netaji Subhas Road, Kolkata- 700001
5. M/s. U S Saha & Co., 35, Bahir Sarbamangla Road, Burdwan-713101
6. M/s. Roy Ghosh & Associates, 39, Kalna Road, Badamtala, Burdwan-713401
Annual General Meeting :
Particulars of Annual General Meeting of Shareholders of the company held during last 3 years were asunder :
CIL,Representative of CIL, Chairman,CIL and Director (Finance), CILShri S.K. Srivastava, D (P), ECL -Shri S. Chakravarty, D (T), Operations,ECL (member of Audit Committee)Shri A.K. Soni, D (F), ECL
2012-13 25.05.2013 Sanctoria Shri Rakesh Sinha, CMD, ECL11:00 AM Shri D. Sett, Chief Manager(F), CIL,
Representative of CIL, Chairman,CIL and Director (Finance), CILShri S.M. Sharma, Chairman, -Audit CommitteeShri S.K. Srivastava, D (P), ECLShri S. Chakravarty, D (T) Operation, ECL(member of audit committee)Shri C.K. Dey, D(F), ECL
12:15 PM Shri S. Manna, Chief Manager(F), CIL,Representative of CIL, Chairman, -CIL and Director (Finance), CIL
Shri S.M. Sharma, Chairman, AuditCommittee
Year Date & Time Place AttendanceSpecial
Resolution,if any
ANNUAL REPORT 2014-15
82
No Special Resolution was passed through postal ballot at any of the General Meetings of the members heldduring the above three years.
4. DISCLOSURES :
(a) Related Party Transactions:As per the disclosures given by the Directors of the company there were no related partytransactions that have potential conflict with the interest of the company at large.
(b) Code of Conduct for Directors and Senior Executives:The Code of Conduct for Directors and Senior Executives was approved by the Board of Directorsof the company in its 214th Meeting held on 15th October, 2007. This was circulated to theDirectors and senior executives and obtained their affirmation. It was also uploaded in the websiteof the company www.easterncoal.gov.in.
(c) Accounting Treatment:The financial statements are prepared in accordance with applicable mandatory AccountingStandards and relevant presentational requirements of the Companies Act, 2013.
Shri K.K. Gautam, Special Director, BIFRShri S. Chakravarty, D (T) Operation,
ECL (member of audit committee)Shri C.K. Dey, D(F), ECL,Shri Ramesh Chandra, D (T) P&P,
Shri K.S. Patro, D(P).
2014-15 16.12.2014 Sanctoria Shri Rakesh Sinha, CMD, ECL11:00 AM Shri M. Viswanathan, Dy. GM (F)/
Company Secretary, CIL, Representativeof CIL and Director (Finance), CIL.Shri K.K. Gautam, Special Director, BIFRShri C.K. Dey, D(F), ECL,Shri K.S. Patro, D(P),Shri B.R. Reddy, D (T) P&P.
Change inMemorandumand Articles ofAssociation ofECL forincreasing theA u t h o r i s e dShare Capital.
Change ofArticles ofAssociationof ECL in linewithCompaniesAct, 2013
EASTERN COALFIELDS LIMITED
83
(d) Risk Management, Fraud Prevention and Identification:Risk Assessment and Mitigation Policy has been approved by the ECL Board in its 257th Meetingheld on 05.11.2012.
(e) CEO/CFO Certification:A certificate duly signed by Shri Subir Dutta, GM (Finance) I/C and Shri Rakesh Sinha, Chairman-cum-Mg. Director was placed in the 279th Board Meeting is annexed to the Corporate GovernanceReport as Annexure-C.
(f) Compliance with applicable laws:During the Financial Year 2014-15, all the laws applicable to the company has been complied.
5. Means of Communications:Annual Report, Operational and financial performance of the company is uploaded in company’s websitewww.easterncoal.gov.in.
Apart from Annual Accounts, quarterly review of accounts is also conducted by the statutory auditors ofthe company.
6. Audit Qualifications:It is always the company’s endeavour to present an unqualified financial statement. Management reply tothe statutory auditors’ observations on the accounts of the company for the year ended 31st March, 2015are furnished as an Annexure to Directors’ Report. Comments of the Comptroller and Auditor General ofIndia under section 143(6) of the Companies Act, 2013 on the accounts of Eastern Coalfields Limited forthe year ended 31st March, 2015 are also enclosed.
7. Training of Board Members:The Functional Directors are the heads of the respective functional areas by virtue of their possessing therequisite expertise and experience. They are aware of the business model of the company as well as therisk profile of the company’s business. The Part-time Directors are also fully aware of the company’sbusiness model.
8. Shareholding pattern of the Company:100% shares of the company are held by Coal India Ltd.
9. Whistle Blower Policy:The company promotes ethical behavior in all its business activities. The Board has put in place mechanismof reporting illegal or unethical behavior. Employees are free to report violation of laws, rules, fraud orunethical conduct to the Competent Authority. The reports received from any employee will be reviewed bythe Screening Committee. The management personnel are obligated to maintain confidentiality of suchreporting and ensure that the whistle blowers are not subjected to any discriminatory practices.
The Board of your company had accorded its approval in its 218th Meeting held on 27th March, 2008 tosign a MoU with M/s. Transparency International in line with the MoU entered into by CIL for implementationof Integrity Pact and the same was carried out.
10. During 2014-15, no person has been prevented from direct access to the Chairperson of the Audit Committee.
11. The actual date of submission to DPE of completed data-sheet for PE Survey was 29.08.2014.
ANNUAL REPORT 2014-15
84
ANNEXURE - B
PROFILE OF DIRECTORSBrief resume of all Directors, nature of their expertise in specific functional areas and names of companies in which
they hold Chairmanships, Directorships, and Memberships of Board/Committees are given below.
Sri Rakesh Sinha born on 17th May 1955, graduated in mining engineering in 1977 from National Institute of
Technology, Raipur. He also holds 1st Class Mine Manager Certificate of Competency (Coal). He joined Coal India
Limited on 18th November 1977 and was posted at Bharat Coking Coal Limited as Junior Executive Trainee.
Thereafter he worked in different capacities in various mines of BCCL including prestigious Moonidih Project, the
first completely mechanised mine in India.
Sri Sinha was transferred to South Eastern Coalfields Limited in April 1989, where he worked in different capacities
like Superintendent of Mines / Manager, Project Officer, General Manager and Technical Secretary to Director
(Technical) OP, SECL. He also worked as Project Officer of prestigious high capacity Gevra Opencast Project,
where on 18.3.2007 coal production reached to a level of 1.0 L. Te, which was the ever highest production from a
single project on a day in the history of Coal India Limited. Subsequently in 2007 on promotion as Chief General
Manager he was again transferred back to his parent Company i.e. BCCL and took over the charge of Chief
General Manager, Lodna Area.
Sri Sinha was selected for the post of Director (Technical), Bharat Coking Coal Limited in September 2007 and
joined BCCL as Director (Technical) Operation in June 2008. Under his dynamic leadership there were remarkable
improvements in different spheres at BCCL.
Sri Rakesh Sinha after joining ECL as Chairman-cum-Managing Director took a number of initiatives in many
spheres of the Company like mechanization of underground workings, rationalization of underground manpower
and machinery, early finalization of a number of contracts for expansion of OCPs, early procurement of production
related items, strict disciplinary steps leading to better law & order situation, improved industrial relation minimizing
obstruction in production & despatch activities, due to which the Company could achieve a sustainable level of
production of more than 30 million tones. The Company continued to excel in all the fields of production, productivity,
off-take etc reaching new heights and creating new records year after year. In turn the financial health of the
company also improved drastically by registering substantial profits. After completing all the formalities, official
declaration of coming out of BIFR was issued by BIFR Court in February 2015. Because of his firm commitment
and broad vision, during 2014-15 ECL achieved 40 Million Te of coal production with a mentionable positive growth
to the tune of 11% over last year adding golden chapter in the history of ECL. It may also be mentioned here that
ECL was the only Subsidiary of CIL which not only achieved the targets for all the three parameters of coal
production, off-take and OB removal, but has also registered substantial positive growth in all the parameters.
Shri Rakesh Sinha has been conferred upon a number of prestigious Awards like “CEO with HR Orientation” by
IPE, “Life Time Achievement Award” by Indian Mine Managers Association, “Udyog Rattan Award” by Institute of
Economic Studies (IES), “Indira Gandhi Rajbhasa Award” given away by Hon’ble President of India, “Excellent
Administrator in Coal and Mine of the Year Award” by R.K. HIV AIDS Research & Care Centre etc.
EASTERN COALFIELDS LIMITED
85
Sri Subrata Chakravarty, working as Director (Technical) in Eastern Coalfields Ltd. (A subsidiary of Coal India
Ltd.), was born on 06-03-1958.
Having initial school education at Patha Bhawana, Santiniketan, he pursued his Graduation in Mining Engineering
from Indian School of Mines, Dhanbad in the year, 1979. Thereafter, acquired Master of Computer Application from
BIT, Mesra in the year 1997. He was awarded William Selkirk Scholarship and Haarlem-E-West Scholarship for
higher studies in Imperial College of Science & Technology, London, which remained unavailed.
Sri Chakravarty has a vast practical experience in Mining Industry for more than 35 years. He has worked in
different capacities of Management Administration, Production, Planning Functions in underground as well as
opencast mines of CCL, BCCL, NCL and ECL. Prior to joining as Director Technical in ECL, he worked in various
capacities like Chief General Manager/Technical Secretary to Chairman, Coal India Ltd., Chief General Manager,
Amlohri Project, Northern Coalfields Ltd. He has an excellent track record of various performance indicators which
has always been appreciated.
Sri Chakravarty has widely travelled foreign countries like U.S.A., Russia, Belarus, Germany, Switzerland, France,
China, Singapore etc., as a part of Indian Delegation, U.N.D.P. and official tours. Sri Chakravarty is interested in
reading books, singing and is a keen follower of all sports.
Shri Chandan Kumar Dey, Director (Finance), Coal India Limited was born in Kolkata on 10th September, 1958.
Prior to joining Coal India Limited on 1st March, 2015, Shri Dey served Eastern Coalfields Limited as Director
(Finance) from 01.02.2013 to 28.02.2015.
Shri Dey completed his schooling from Kendriya Vidyalaya in 1975 and graduated from Calcutta University in
Commerce with Honours in Accountancy in the year 1978. Shri Dey is a Chartered Accountant and Cost Accountant.
Shri Dey has wide experience of over 34 years and served in different organisations of repute including Lovelock &
Lewes, Dunlop India Limited, NICCO Group, Balmer Lawrie & Co. Limited and Oil India Limited.
During his professional career Shri Dey headed the Accounts, Treasury, Taxation and Internal Audit functions and
served as Chief Finance Officer. Shri Dey also headed the operations of Balmer Lawrie (UK) Limited for 3 years as
Chief Operating officer based in United Kingdom. Shri Dey has travelled extensively within India and Foreign
countries like UK, France, Germany, Switzerland, USA, Hong Kong, UAE and the Central Asian Republic on
official assignments.
Shri Dey is interested in reading books and loves music.
Sri V. Peddanna, (58) is the Director in the Ministry of Coal since May, 2011. Shri Peddanna graduated in
Agriculture Sciences from Andhra Pradesh Agriculture University, Hyderabad. He has done Executive Masters in
International Business from the Indian Institute of Foreign Trade. Further, he obtained M. Phil degree from Punjab
University on Public Administration. His experience spanning 26 years include 4 years in the Ministry of Health &
Family Welfare, 7 years in Department of Elementary Education in the Ministry of Human Resource Development,
6 years in the Ministry of Commerce & Industry and 3 years in Ministry of Personnel, Public Grievances L&
Pensions. Before joining the Board of Eastern Coalfields Limited as representative of Govt. of India, he has worked
as Govt. nominee on the Board of Directors of Northern coalfields Limited.
ANNUAL REPORT 2014-15
86
Shri K.S. Patro, born on 3rd April, 1958, comes from a learned family of Ganjam, Odisha. Sri Patro, a graduate
from KSUB College, Bhanjanagar (Odisha) with Economics Honours with Post Graduate Degree in Labour &
Social Welfare.
Sri Patro joined Coal India Limited in 1982 as trainee Welfare Officer and posted to Eastern Coalfields Limited
(ECL), a subsidiary company of Coal India Limited. At ECL he worked in different capacities, heading the Personnel
Department in Units & Area level dealing with the multifarious functions related to Industrial Relation, workers
welfare, Personnel matters especially wages & Salary administration, promotion etc.. During his long tenure at
ECL he confronted a lot of delicate situations especially during major mining accidents involving fatality at New
Kenda mines (1994), Shyamsundarpur Colliery and Bankola Colliery and with his rich field knowledge handled
them effectively. After serving ECL for more than 27 years (1982-2009), joined Central Coalfields Limited (CCL) in
the capacity of Chief Manager (Personnel) in 2009.
On being promoted during 2011 as General Manager (Personnel & IR and Welfare) headed Personnel Department
of CCL, Ranchi. CCL, a company with manpower of more than 50000, he established a harmonious liaison with
Functional Trade Unions at Company level and maintained rapport with the nearby villages with the sole aim of
Corporate Social Responsibility. With his innovative and positive approach the IR scenario of company was not
only cordial but also positively contributed to the growth of the company in production, productivity, offtake, profitability
and helped in creating high motivational environment among the workers, Project Affected Peoples and villagers at
large. Sri Patro always concerned about the welfare of the employees contributed towards improvement of the
socio-economic condition of the people living in periphery of company with thrust toward weaker section of society
under Community Development (CD) / corporate social Responsibility (CSR). At CCL he played a major role in
adoption of 03 nos. of villages namely Lupungtoli, Seemartoli and Zari(The birth place of Martyr of 1971 Bangladesh
war Sir Albert Ekka) under CSR, keeping a personal touch of all-round development of these villages with a special
emphasis on health, education and welfare. He possesses a knack to visit workers colonies to know about their
well-being.
On rejoining ECL he is instrumental in accelerating welfare and CSR activities. Opening of Nursing School at CH
Kalla, procurement of latest medical appliances for Kalla and Sanctoria Hospital, upgradation of Canteen with AC
and other facilities, fast disposal of compassionate appointment cases and appointment against land looser
cases, opening of DAV school at Jhanjra & Mugma Area, opening of skill development centre at Salanpur, Kenda,
Rajmahal, Bankola etc are amongst some of the achievements during FY-2014-15. Besides this, recruitment of
paramedical staffs, statutory personnel and other essential manpower along with imparting skill development
training to existing manpower and training to skilled manpower of the company to mainstream production, productivity
and safety are also notable.
With a vast experience of 33 years in Coal industry and innovative positive approach towards the work his
achievements were instrumental in his success story and on being selected as Director (Personnel) of ECL
assumed charge from 01st November, 2013 with a determination to bring comprehensive improvement of standard
of living of the employees their families and the larger family of ECL consisting of the villagers, the poor and the
downtrodden.
EASTERN COALFIELDS LIMITED
87
Sri B.R. Reddy, S/o Late B. Ranga Reddy, 56 Years graduated in Mining Engineering from Kothagudam School
of Mines, Andhra Pradesh in the Year 1981 and has done M. Tech in Opencast Mining in the Year 1992 from Indian
School of Mines, Dhanbad. He holds 1st Class Mine Managers’ Certificate of Competency (Coal). Moreover, he
has also obtained Diploma in Industrial Relation and Personnel Management (DIRPM) from Nagpur University.
He joined Coal India Limited on 5th September, 1981 as Jr. Executive Trainee and worked in different capacities in
various mines of Ballarpur Area of Western Coalfields Limited till June, 2003. Thereafter, he got transferred and
joined at Central Coalfields Limited, Ranchi in July, 2003. He has served as Project Officer of Tapin North, Parej
East OCP, as A.G.M. of Dhori Area till 31-10-2007. Later he took the charge of Dhori Area as General Manager.
During the tenure of General Manager in different Areas like Dhori, Argada, N.K. Area of C.C.L., he has contributed
a lot for solving I.R. problems, opening New Open Cast Mines etc. Due to his sincere effort, the Purandih Greenfield
O.C. of C.C.L. could be opened. He has submitted a paper on dragline working in the National Seminar on
Opencast Mine, which was appreciated by all.
He has visited China in the Year 2009 to attend Coal Trans Seminar and also visited Sweden, Switzerland and
Germany in the Year 2014 on Advance Management Programmes.
Due to his managerial skill, capacity and administrative acumen, he has been selected as Director (Technical)/
Project & Planning of Eastern Coalfields Limited and has taken over the charge on 30th September, 2014.
ANNUAL REPORT 2014-15
88
ANNEXURE - C
To,The Board of Directors,
CEO AND CFO CERTIFICATION
We, Rakesh Sinha, Chairman and Subir Dutta, General Manager (Finance) I/C, responsible for the finance functioncertify that:
a. We have reviewed financial statements and the cash flow statement for the year ended 31st March, 2015and that to the best of our knowledge and belief:
i. These statements do not contain any materially untrue statement or omit any material fact or containstatements that might be misleading.
ii. These statements together present a true and fair view of the company’s affairs and are in compliancewith existing accounting standards, applicable laws and regulations.
b. To the best of our knowledge and belief, no transactions entered into by the company during the quarterended 31st March, 2015 are fraudulent, illegal or violate of the company’s code of conduct.
c. We accept responsibility for establishing and maintaining internal controls for financial reporting and wehave evaluated the effectiveness of internal control systems of the company pertaining to financial reportingand we have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation ofsuch internal controls, if any, of which they are aware and the steps they have taken or propose to take torectify these deficiencies.
d. We have indicated to the auditors and the Audit committee:
i. There has not been any significant changes in internal control over financial reporting during the quarterunder reference:
ii. There has not been any significant changes in accounting policies during the year ; and
iii. We are not aware of any instance of significant fraud with involvement therein of the management or anemployee having a significant role in the company’s internal control system over financial reporting.
Date: 26-05-2015
General Manager (Finance) I/C Chairman-cum-Managing Director
Auditors' Certificate on Compliance with the conditions of Corporate Governance
ToThe Members of Eastern Coalfields Limited
We have examined the compliance of conditions of Corporate Governance by EasternCoalfields Limited (the Company) for the year ended 31st March, 2015.
The compliance of conditions of Corporate Goverance is the responsibility of the management.The Company is the subsidiary of Coal India Limited, a Government Company which is listed.The shares of the Company are not listed in any stock exchange and our examination was carriedout in accordance with the Guidance Note issued by the Institute of Chartered Accountants ofIndia and was limited to procedures and implementation thereof adopted by the Company forensuring the compliance of the conditions of Corporate Goverance. It is neither an audit nor anexpression of opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, wecertify that the Company has generally complied with the conditions of Corporate Governance.
We further state that such compliance is neither an assurance as to the future viability of theCompany nor the efficacy with which the management has conducted the affairs of theCompany.
time prescribed under the Act and rules made there under;
c) convening and holding of the meetings of Directors and Committees of the Directors including passing of
the resolutions by Circulation;
d) convening and holding of 39th Annual General Meeting on 14th June, 2014;
e) minutes of the proceedings of General Meeting and meetings of the Board and its committees were
properly recorded in loose leaf form which are being bound in book form at regular intervals;
f) appointment and remuneration of Auditors and Cost Auditors;
g) transfers and transmission of shares;
h) composition and terms of reference of Audit Committee;
i) service of documents by the Company on its Members and Auditors;
j) borrowings and registration, modification and satisfaction of charges;
k) deposit of both the employees and employers contribution relating to Provident Fund with the Trusts
created for the purpose;
I) form of Balance Sheet, statement of Profit & Loss Account and disclosures to be made therein as per
the Act;
m) contracts, Common Seal, Registered Office, and publication of name of the Company, and
n) generally all other applicable provisions of the Act and the Rules made there under that Act.
II) We further state that:
a) The Directors have disclosed their interest and concerns in contracts and arrangements, shareholdings
and directorships in other companies and interests in other entities as and when required and their
disclosures have been noted and recorded by the Board;
b) The Directors have complied with the disclosure requirements in respect of their eligibility of appointments,
their being independent and compliance with the Code of Conduct for Directors and Senior Management
Personnel;
c) The Company has obtained all necessary approvals under the various provisions of the Act; and
d) There was no prosecution initiated and no fines or penalties were imposed during the year under
review under the Companies Act, 2013, Securities Exchange Board of India Act, 1992, Listing Agreement,
Foreign Exchange Management Act, 1992 and Rules, Regulation and Guidelines framed under these
Acts against/ on the Company, its Directors and Officers.
III) We further report that:
a. The Company has complied with the applicable provisions of the Companies Act, 2013, the Rules made
there under including re-enactment thereof,
ANNUAL REPORT 2014-15
92
b) The Company has complied with the provisions of the Securities Exchange Board of India (Substantial
Acquisition of Shares & Takeovers) Regulations, 2011 including the provisions with regard to disclosures and
maintenance of records required under the Regulations;
c) The Company has complied with the provisions of the Securities and Exchange Board of India (Prohibition
of Insider Trading) Regulations, 1992 including provisions with regard to disclosures and maintenance
of records required under the Regulations;
d) The Company has complied with Guidelines on Corporate Governance for Central Public Sector
Enterprises, 2010 subject to the provision in relation to composition of Board of Directors in the
Company and appointment of independent directors in the material subsidiaries of the Company.
Place:- Kolkata.
Date:- 3rd June, 2015
For Mitul Jain & Associates
Practicing Company Secretaries
(Mitul Jain)
C.P. No.:- 10850
EASTERN COALFIELDS LIMITED
93
Annexure - IX
Form No. MGT-9
EXTRACT OF ANNUAL RETURNas on the financial year ended on 31.03.2015
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management andAdministration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:
i) CIN:-U10101WB1975GOI030295
ii) Registration Date:-01.11.1975
iii) Name of the Company:- Eastern Coalfields Limited
iv) Category/Sub-Category of the Company:- Public Limited Company u/s. 2(71) of Companies Act - 2013.
v) Address of the Registered office and contact details:- CMD’s Office, Sanctoria, Post-Dishergarh,
Dist. Burdwan, PIN-713333, West Bengal.
vi) Whether listed company Yes / No: No
vii) Name, Address and Contact details of Registrar and Transfer Agent, if any: NA
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10 % or more of the total turnover of the company shall bestated:-
Sl. Name and Description of main NIC Code of the % to total turnover of theNo. products / services Product/ service company
1 Coal 0510 100 %
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES –
Sl.No.
Name and address of thecompany
CIN/GLN
Holding/Subsidiary/Associate
% ofsharesheld
ApplicableSection ofCompanies
Act 2013
2(46)L23109WB1973GOI028844Coal India Limited, 10 NSRoad, Kolkata-700001
1 HoldingCompany
100%
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
a. Category-wise Share Holding
ANNUAL REPORT 2014-15
94
Total Share holding
`
`
100 Nil
EASTERN COALFIELDS LIMITED
95
Sl N o .
Shareho lder ’ s N a m e
Shareho ld ing a t t he beg inn ing o f t he yea r
Share hold ing a t the end o f the year
% c h a n g e i n shareho ld ing
dur ing the yea r
No . o f Sha res
% of to ta l Sha res o f
t h e c o m p a n y
%o f Sha res P ledged /
encumbered to to ta l shares
No. of S h a r e s
% of total Sha res o f
the c o m p a n y
% o f S h a r e s P ledged /
e n c u m b e r e d to total s h a r e s
1 Coa l Ind ia L im i t ed
22184497 99.99 Ni l 22184497 99 .99 Ni l Nil
T O T A L 22184497 99.99 Ni l 22184497 99 .99 Ni l Nil
b Shareholding of Promoters
c. Change in Promoters’ Shareholding (please specify, if there is no change): There is no change inPromoters’ Shareholding during the year. The details are given below:
Sl.No.
Particulars Shareholding at the beginning of the year Cumulative Shareholding duringthe year
No. of shares % of total shares ofthe company
No. of shares % of total sharesof the company
1 At the beginning of the year 22184497 99.99 22184497 99.992 Date wise Increase / Decrease in
Promoters Shareholding during theyear specifying the reasons forincrease / decrease (e.g. allotment /transfer / bonus/ sweat equity etc):
Nil Nil Nil Nil
3 At the End of the year 22184497 99.99 22184497 99.99
d. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs andADRs):
Sl.No.
For Each of the Top 10 Shareholders Shareholding at the beginning of theyear
Cumulative Shareholding during theyear
No. of shares % of total sharesof the company
No. of shares % of total sharesof the company
1 At the beginning of the year
NIL
2 Date wise Increase / Decrease inShareholding during the yearspecifying the reasons for increase /decrease (e.g. allotment / transfer /bonus / sweat equity etc):
3 At the End of the year ( or on the dateof separation, if separated during theyear)
e. Shareholding of Directors and Key Managerial Personnel:
Sl.No.
For Each of the Directors andKMP
Shareholding at the beginning of theyear
Cumulative Shareholding during the year
No. of shares % of total sharesof the company
No. of shares % of total shares ofthe company
1 At the beginning of the year 1 0.01 1 0.012 Date wise Increase / Decrease in
Shareholding during the yearspecifying the reasons forincrease / decrease(e.g.allotment / transfer / bonus/sweat equity etc):
Nil Nil Nil Nil
3 At the End of the year 1 0.01 1 0.01
ANNUAL REPORT 2014-15
96
(Figures in ` )
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Particulars SecuredLoans
excludingdeposits
UnsecuredLoans
Deposits TotalIndebtedness
Indebtedness at the beginning of thefinancial yeari) Principal Amountii) Interest due but not paidiii) Interest accrued but not due
164.33 164.33
Total (i+ii+iii) 164.33 164.33Change in Indebtedness during the financialyearàAdditionàReduction
7.895.75
7.895.75
Net Change 2.14 2.14Indebtedness at the end of the financial yeari) Principal Amountii) Interest due but not paidiii) Interest accrued but not due
166.47 166.47
Total (i+ii+iii) 166.47 166.47
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
a. Remuneration to Managing Director, Whole-time Directors and/or Manager:
(` in Crore)
Sl . No.
Particulars of Remuneration
Name of MD/WTD/Manager Total Amount
Shri Rakesh Sinha Chairman-cum -Mg. Director
Shri S. Chakravarty, Director (Technical) Opn., (WTD)
Shri K.S. Patro, Director (Personnel), (WTD)
Shri B.R. Reddy, Director (Technical) P&P, (WTD) w.e.f 30.9.14
Shri Ramesh Chandra, Director (Technical), P&P, (WTD) upto 30.6.14
Shri C.K. Dey, Director (Finance), (WTD) upto 28.2.15
1
Gross salary (a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 (c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961
3 Total (2) 1,70,000.00 1,70,000.00 4 Total (B)=(1+2) 10,000.00 10,000.00 20,000.00 60,000.00 1,70,000.00 2,70,000.00 5 Total Managerial
Remuneration (A+B) 1,29,41,951.00
6 Overall Ceiling as per the Act
18.00 crore
(Figures in ` )
c. Remuneration to key managerial personnel other than MD/Manager/WTD
Sl. No.
Particulars of Remuneration Key Managerial Personnel
Company Secretary
Total
1 Gross salary (a) Salary as per provisions contained in section 17(1) of the Income-tax Act, 1961 (b) Value of perquisites u/s 17(2) Income-tax Act, 1961 (c) Profits in lieu of salary under section 17(3) Income-tax Act, 1961
Others, please specify 9021.00 9021.00 Total 2480146.00 2480146.00
(Figures in ` )
ANNUAL REPORT 2014-15
98
VII. Penalties / punishment/ compounding of offences:
Type Section ofthe
CompaniesAct
BriefDescription
Details ofPenalty /
Punishment/Compoundingfees imposed
Authority[RD / NCLT/ COURT]
Appeal made,if any (give
Details)
a. CompanyPenalty
NILPunishmentCompoundingb. DirectorsPenalty
NILPunishment
Compoundingc. Other officers in defaultPenalty
NILPunishmentCompounding
EASTERN COALFIELDS LIMITED
99
ANNEXURE - XFOREIGN EXCHANGE EARNING & OUTGO
(i) Activities relating to exports, initiativestaken to increase exports, developmentof new export markets for products,services and export plans.
: Company is not engaged in export activities.
(ii) Total Foreign Exchange used and earned :(` in Lakh)
Sl.No. Description 2014-15 2013-14
(A) Foreign Exchange Used1. CIF value of imports (a) Raw materials 0.00 0.00 (b) Components, stores & spares 671.00 1011.00 (c) Capital goods. 17625.00 0.00
2. Traveling / Training Expenses 13.00 54.00
3. Expenses on know-how and Foreign Consultancy 0.00 0.00
4. Pension to the Foreigners 0.00 0.00
5. Others 10652.00 1294.00
Total 28961.00 2359.00
(B) Foreign Exchange Earned – Nil Nil
ANNUAL REPORT 2014-15
100
ANNEXURE - XI
FORM FOR DISCLOSURE OF PARTICULARS WITHRESPECT TO TECHNOLOGY ABSORPTION
RESEARCH AND DEVELOPMENT (R & D)
1. Specific area in which R&D carried out : Company does not have its ownby the Company Research & Development (R&D) set up.
CMPDIL, a Subsidiary of Coal India Lim-ited (CIL) does the R&D work centrally forall the Subsidiaries of CIL.
2. Benefits derived as a result of the above R & D : NA3. Future Plan of action : NA4. Expenditure on R & D : NA
(a) Capital --(b) Recurring --(c) Total --Total R&D expenditure as a percentage of : NAtotal turnover.
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION1. Efforts, in brief, made towards technology : Nil
absorption, adaptation and innovation.2. Benefits derived as a result of the above : Nil
efforts, e.g. product improvement, costreduction, product development, importsubstitution, etc.
3. In case of imported technology (imported : Nilduring the last 5 years reckoned from thebeginning of the financial year), followinginformation may be furnished :(i) Technology imported : Nil(ii) Year of Import : Nil(iii) Has technology been fully absorbed? : Nil(iv) If not fully absorbed, areas where this : Nil
has not taken place, reasons thereforeand future plans of action.
Sub. : Comments of the Comptroller & Auditor General of India underSection 143(6)(b) of the Companies Act, 2013 on the Accounts ofEastern Coalfields Limited for the year ended 31st March, 2015.
Sir,
I forward herewith the Comments of the Comptroller & Auditor General of India under Section143(6)(b) of the Companies Act, 2013 on the Accounts of Eastern Coalfields Limited for the year ended31st March, 2015.
The receipt of this letter may please be acknowledged.
Encl. As stated. Yours faithfully,
sd/-Place : Kolkata (Yashodhara Ray Chaudhuri)Dated : 11.06.2015 Principal Director of Commercial Audit
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDERSECTION 143 (6)(b) OF THE COMPANIES ACT, 2013 ON THE ACCOUNTS OFEASTERN COALFIELDS LIMITED FOR THE YEAR ENDED 31ST MARCH, 2015
The preparation of financial statements of Eastern Coalfields Limited for the year ended31st March, 2015 in accordance with the financial reporting framework prescribed under theCompanies Act, 2013 is the responsibility of the management of the company. The statutoryauditor/auditors appointed by the Comptroller and Auditor General of India under Section 139(5)of the Act is/are responsible for expressing opinion on the financial statementsunder section 143 of the Act based on independent audit in accordance with standards on auditingprescribed under section 143(10) of the Act. This is stated to have been done by them vide theirAudit Report dated 03.06.2015.
I, on the behalf of the Comptroller and Auditor General of India have conducted a supple-mentary audit under section 143(6)(a) of the Act of the financial statements of Eastern CoalfieldsLimited for the year ended 31 March, 2015. This supplementary audit has been carried outindependently without access to the working papers of the statutory auditors and is limited pri-marily to inquiries of the statutory auditors and company personnel and a selective examinationof some of the accounting records. On the basis of my audit nothing significant has come to myknowledge which would give rise to any comment upon or supplement to Statutory Auditors'report.
Place : Kolkata,Dated : 11.06.2015
For and on behalf of theComptroller & Auditor General of India
Sd/-(Yashodhara Ray Chaudhuri)Pr. Director of Commercial Audit
& Ex-Officio Member, Audit Board - IIKolkata.
EASTERN COALFIELDS LIMITED
103
Sr.No. Auditor's Report
1. Report on the Financial StatementsWe have audited the accompanying Financial Statements of EASTERNCOALFIELDS LIMITED (“the Company”) which comprise the Balance Sheet asat 31st March 2015, the Statement of Profit and Loss, the Cash Flow Statementfor the year then ended, in which are incorporated the accounts of: (a) HeadOffice and 7 Areas/Units audited by us and (b) 19 Areas/Units audited by theBranch Auditors appointed under section 139 of the Companies Act 2013 (the“Act”), and a summary of the significant accounting policies and other explanatoryinformation.
2. Management’s Responsibility for the Financial StatementsThe Company’s Board of Directors is responsible for the matters in Section134(5) of the Act with respect to the preparation of these financial statementsthat give a true and fair view of the financial position, financial performance andcash flows of the Company in accordance with the accounting principles generallyaccepted in India, including the Accounting Standards specified under Section133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes the maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting the frauds and other irregularities;selection and application of appropriate accounting policies; making judgementsand estimates that are reasonable and prudent; and design, implementation andmaintenance of internal financial control, that were operating effectively for ensuringthe accuracy and completeness of the accounting records, relevant to thepreparation and presentation of the financial statements that give a true and fairview and are free of material misstatement, whether due to fraud or error.
Auditor's Responsibility :
3. Our responsibility is to express an opinion on these financial statements basedon our audit. We have taken into account the provisions of the Act, the accountingand auditing standards and matters which are required to be included in theAudit Report under the provisions of the Act and the Rules made there under.
4. We conducted our audit in accordance with the Standards on Auditing specifiedunder section 143(10) of the Act. These standards require that we comply withthe ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from materialmisstatement.
5. An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selecteddepend on the auditor’s judgement, including the assessment of risks of material
Management's
Reply
It is a statement offact.
It is a statement offact.
AUDITORS' REPORT TO THE MEMBERS OFEASTERN COALFIELDS LIMITED
It is a statement offact.
It is a statement offact.
It is a statement offact.
ANNUAL REPORT 2014-15
104
misstatement of the financial statements, whether due to fraud or error. In makingthose risk assessments, the auditor considers internal financial control relevantto the Company’s preparation of the financial statements that give true and fairview in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by the Company’sDirectors, as well as evaluating the overall presentation of the financial statements.
6. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the financial statements.
Opinion :7. In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity withthe accounting principles generally accepted in India:
i. In the case of the Balance Sheet, of the state of affairs of the Company as at 31stMarch 2015;
ii. In the case of the statement of Profit and Loss, of the profit of the Company forthe year ended on that date; and
iii. In the case of Cash Flow Statement, of the cash flows of the Company for theyear ended on that date.
Report on Other Legal and Regulatory Requirements8. a. As required by the Companies (Auditor’s Report) Order, 2015 issued by the
Government of India in terms of sub-section (11) of Section 143 of the Act, wegive in Annexure ‘A’ to this report a statement on the matters specified inparagraphs 3 and 4 of the said order.
b. In compliance with the directions, issued by the Comptroller and Auditor Generalof India under section 143(5) of the Companies Act 2013, the actions taken onthe Directions and its impact on the accounts and financial statements of theCompany are placed in Annexure ‘B’ to this Report.
9. As required by sub-section (3) of Section 143 of the Act, we report that:
a. We have sought and obtained all the information and explanations which, to thebest of our knowledge and belief, were necessary for the purpose of our audit.
b. In our opinion, proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books and properreturns adequate for the purpose of our audit have been received from the Areas/Units not visited by us.
It is a statement offact.
It is a statement offact.
It is a statement offact.
It is a statement offact.
It is a statement offact.
It is a statement offact.
It is a statement offact.
It is a statement offact.
It is a statement offact.
EASTERN COALFIELDS LIMITED
105
c. The reports on the accounts of the Areas/Units of the Company audited undersub-section (8) of Section 143 of the Act by the Area/Unit Auditors had beensent to us under the proviso to that sub-section and have been dealt with by usin preparing this report.
d. The Balance Sheet, the Statement of Profit and Loss and the Cash FlowStatement dealt with by this report are in agreement with the books of accountand returns received from Areas/Units not visited by us.
e. In our opinion, the aforesaid financial statements comply with the AccountingStandards specified in Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
f. There are no observations or comments on financial transactions or matterswhich have any adverse effect on the functioning of the Company.
g. On the basis of written representations received from the Directors none of theDirectors is disqualified as on 31st March 2015 from being appointed as a Directorin terms of sub-section (2) of Section 164 of the Act.
h. There are no qualifications, reservations or adverse remarks relating to themaintenance of accounts and other matters connected therewith.
i. 1. The Company has disclosed the contingent liabilities in Note No.14 G. Wehave not come across any other pending litigation which would impact its financialposition.
2. The Company was not required to make provision under the applicable law oraccounting standards for material foreseeable losses on long term contracts.
3. Transfer of funds to the Investor Education and Protection Fund was notapplicable to the Company.
It is a statement offact.
It is a statement offact.
It is a statement offact.
It is a statement offact.
It is a statement offact.fact.
It is a statement offact.
It is a statement offact.
It is a statement offact.
It is a statement offact.
ANNUAL REPORT 2014-15
106
AUDITORS' REPORT
1. a. The Company is maintaining proper records showing full particulars, including
quantitative details and situation of fixed assets.
b. Fixed assets, except Plant & Machinery each worth less than ` 1 Lakh, have
been physically verified by the management at reasonable intervals and no
material discrepancies were noticed on such verification. According to the
explanations given to us by the management discrepancies on physical verification
in respect of such Plant & Machinery each worth less than `1 Lakh will not be
material.
2. a. Physical verification of inventory has been conducted at reasonable intervals
by the management.
b. The procedures of physical verification of inventory followed by the management
appear to be reasonable and adequate in relation to the size of the Company
and the nature of its business.
c. The Company is maintaining proper records of inventory and no material
discrepancies were noticed on physical verification.
3. The Company has not granted any loans, secured or unsecured, to companies,
firms or other parties covered in the register maintained under Section 189 of the
Act.
4. The Company has an adequate internal control system commensurate with its
size and the nature of its business for the purchase of inventory and fixed assets
and for the sale of goods. We did not come across continuing failure to correct
major weaknesses in internal control system.
5. The Company has not accepted deposits attracting the directives issued by the
Reserve Bank of India and the provisions of Sections 73 to 76 or any other
relevant provisions of the Act and the rules framed there under. No order has
been passed by Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any court or any other Tribunal requiring compliance.
6. In respect of cost records specified by the Central Government under sub-section
(1) of Section 148 of the Act, the Company has made and maintained such
accounts and records.
MANAGEMENT'S
REPLY
It is a statement of
fact.
It is a statement of
fact.
It is a statement of
fact.
It is a statement of
fact.
It is a statement of
fact.
It is a statement of
fact.
It is a statement of
fact.
It is a statement of
fact.
It is a statement of
fact.
ANNEXURE 'A' TO THE AUDITORS' REPORTON EASTERN COALFIELDS LIMITED FOR THE YEAR ENDED 31ST MARCH, 2015
(Referred to in Paragraph 8(a) of our Report of even date)Sl.No.
EASTERN COALFIELDS LIMITED
107
It is a statement of
fact.
It is a statement of
fact. However, these
disputed dues are
included in contin-
gent liability (claim
against the company
not acknowledged as
debts) shown in
Additional Notes to
Accounts under
clause no. 14.7(b).
7. a. The Company is generally regular in depositing undisputed statutory dues,
including provident fund, employees’ state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, excise duty, value added tax, cess and
other statutory dues, as applicable, with the appropriate authorities. There is no
arrear of outstanding statutory dues as at the last day of the financial year for
a period of more than six months from the date they became payable.
b. The amounts involved and the forum where dispute is pending in respect of dues
of income tax or sales tax or wealth tax or service tax or customs duty or excise
duty or value added tax or cess that have not been deposited on account of any
dispute are given in the Table below:
Sl.No.
Name of Statute
Nature ofDues
Amount(` In
Lakhs)
Period towhich the
amountrelate
Forumwhere
dispute ispending
West Bengal RuralEmployment andProduction Act,1973
West BengalPrimary EducationAct, 1973
West Bengal VATAct, 2003
Finance Act, 1994
Central Excise act1944
West BengalRural Emplo-yment Cess
1973 WestB e n g a lPrimary Edu-cation Cess
WB VAT/CST
Demand ofService Taxon Sizing
Disallowanceof exemptionon boilerconsumption
14203.11
14978.46
11760.39
2704.08
8291.92
2940.10
9.96
456.17
3827.95
3653.51
601.94
895.16
1997-98
1998-99 to2000-01
2001-02 to2008-09
1997-98
1998-99 to2000-01
2001-02 to2008-09
1998-99
2004-05,09-10 & 10-11
2005-06 to2007-082006-07 to2010-11
Mar.'11 -Mar.'12April '12 toSept. '13
JCCT,Asansol
WBTT
SPL.COMM WBCOM TAX
J.C.ASANSOL
WBTT
SPL.COMM WBCOM TAX
WBTT
Sr JCCT,Asn
Revision Board
CESTAT, Kolkata
CESTAT, Kolkata
CESTAT, Kolkata
1
2
3
4
5
ANNUAL REPORT 2014-15
108
Excess TOTincluded inthe GTO forBST differ-ence againstRail despatch,Tax on stocktransfer
Demand ofArrear CessTax on freeissue of coal.Short Forms.Tax on StockTransfer
ShortPayment
Tax on stockwrite-off.Taxon stocktransfer & freeissue of Coal
If the Company has been selected fordisinvestment, a complete status reportin terms of valuation of Assets (includingintangible assets and land) and Liabilities(included Committed & General Reserves)may be examined including the mode andpresent stage of disinvestment process.
Please report whether there are anycases of waiver/write-off of debts/loans/interest etc. If yes, the reasons there forand the amounts involved.
Whether proper records are maintainedfor inventories lying with third parties andassets received as gift from Governmentor other authorities.
A report on age-wise analysis of pendinglegal/arbitration cases including thereasons of pendency and existence/effectiveness of a monitoring mechanismfor expenditure on all legal cases (foreignand local) may be given.
This clause is not applicable to theCompany since it has not been selectedfor disinvestment.
There has been no case of waiver, write-off of debts, loans etc.
There is no inventory lying with thirdparties and no assets have been receivedas gift from Government or otherauthorities.
The details of pending legal cases arefurnished in ANNEXURE I. There is nocase of arbitration applicable to theCompany. The expenditure on all legalcases is monitored by the LegalDepartment of the Company. Themonitoring system appears to beeffective.
It is a statement offact.
It is a statement offact.
It is a statement offact.
It is a statement offact.
ANNUAL REPORT 2014-15
114
Sl.No.
ANNEXURE ‘B’ to the AUDITORS’ REPORTON EASTERN COALFIELDS LIMITED FOR THE YEAR ENDED 31ST MARCH 2015
ADDITIONAL DIRECTIONS under section 143(5) of the Companies Act 2013
Provisioning done in case of unpaidamount on GCV issues may beexamined. Latest GCV dues position ofconcerned subsidiaries of CIL as on31.03.2015 is required to be examined.
It may also be confirmed whether theannual accounts have been prepared/maintained as per the new Companies Act2013.
Valuation of inventories with complianceto Accounting Standard 2 in entirety.
a. Whether stock measurement was donekeeping in view the contour map?
Whether physical stock measurementreports are accompanied by contour mapin all cases?
Whether new heap, if any, created duringthe year has got the approval of thecompetent authority?
b. Whether there is age wise analysis ofnon-vendible stock of coal?
Is there any substantial variance (beyond+/- 5%) found on measurement of non-vendible stock of coal? If yes, has it beenproperly recorded with reasons?
Whether valuation of such stock was asper the laid down accounting practice bythe competent authority
c. As per the new policy adopted by CILas well as Government of India, HSD isto be procured at the projects/mines atbulk rate. Whether the contractors whoare purchasing diesel at bulk rate areallowed price escalation at bulk rateinstead of retail rate?
The position of GCV dues is givenbelow: 31.03.14 31.03.15 ` `Unpaid Amount *16.04 Cr. NilProvision Made Nil Nil*Received on 11.04.2014The Annual Accounts have beenprepared as per the new CompaniesAct 2013.
Stock Measurements were done usingthe ground contour maps.
Physical stock measurements areusually accompanied by contour maps.
New heaps, whenever created, have beenapproved by the competent authority.
Age wise analysis of non-vendible coalwas not done by the Company.
There has not been substantial variationon measurement of non-vendible stockof coal.
Such stock was valued as per the laiddown accounting practice by thecompetent authority.
The contractors who are purchasingdiesel at bulk rate are allowed priceescalation at bulk rate instead of retailrate.
It is a statement offact.
It is a statement offact.
It is a statement offact. The stock ofnon-vendible coal isconsidered at NILvalue.
It is a statement offact.
EASTERN COALFIELDS LIMITED
1150
·
3.
4.
5.
It is a statement offact.
It is a statement offact.
It is a statement offact.
It is a statement offact.
It is a statement offact.
d. Whether provisions in ConsolidatedFinancial Statements (CFS) under thenew Companies Act 2013 are made witha view to representing true and fair viewof financial condition and operating resultof the business entity?
e. Special emphasis should be given tosatisfy that the CFS has been preparedin accordance with AS21, 23 and 27.
It may be verified that the capitalexpenditure incurred on assets notbelonging to the company has beenproperly identified and accounted for asper established accounting principles.
Special emphasis on compliance withrespect to observations/comments raisedby Statutory Auditors/GovernmentAuditors in 2013-14 and also in the ReviewReport on Half Yearly Accounts for theyear 2014-15.
It may be verified that the third partyconfirmations on debtors, bank balances,accounts receivable, accounts payableand loans and advances has been donein full? If not, party-wise includingpercentage of such unconfirmed amountsmay also be reported. Similarly, whetherseparate Escrow Fund Accounts havebeen opened/maintained or earmarked inthe Bank in CIL and its subsidiaries forthe specific purpose?
This clause is not applicable to theCompany.
This clause is not applicable to theCompany.
Capital expenditure incurred on assetsnot belonging to the company has beenproperly identified and accounted for asper established accounting principles.
Observations/comments raised by theStatutory Auditors and GovernmentAuditors in 2013-14 have been compliedwith.Observations/comments in the ReviewReport on Half Yearly Accounts for theyear 2014-15 have been complied with.
Third party confirmations as such are nottaken by the Company in respect ofSundry Debtors. However, regularreconciliation is done jointly with therespective debtor companies on anongoing basis and these statements aresigned by officials of both the companies.
Third party confirmations in respect ofbank balances have been obtained in allthe cases.
In respect of accounts receivable,accounts payable and loans andadvances balance confirmation letterswere sent out by the Company to theparties concerned. Till these balanceconfirmations are received by theCompany, the book balances areconsidered as correct. Separate EscrowFund Accounts have been maintained inthe Bank by the Company.
(2) Non-Current Liabilitiesa) Long Term Borrowing 3 164.33 681.29b) Deferred Tax Liabilities -- --c) Other Long Term Liabilities 4 18.92 17.99d) Long Term Provisions 5 3,135.23 4,042.55
3,318.48 4,741.83
(3) Minority Interest - -
(4) Current Liabilities -a) Short Term Borrowing 6 129.01 1,714.51b) Trade Payables 7 72.56 63.86c) Other Current Liabilities 8 3,334.07 2,854.20d) Short Term Provisions 9 1,051.41 858.76
Profit/(Loss) before extraordinary items and tax 1,782.41 1,299.28
Extraordinary Items { charges/ (Incomes) } - -
Profit/(Loss) before Tax 1,782.41 1,299.28
Less : Tax Expense- Current year 398.59 73.84- Add: MAT Credit Entitlement (174.62)- Deferred Tax 419.04 353.21- Earlier years - -
Profit/(Loss) for the period 1,139.40 872.23
Earning per equity share (in ` )
(Face Value of ` 1000/- per share)
(1) Basic 513.60 393.17 (2) Diluted - -
Significant Accounting Policies 33
Additional Notes on Accounts 34
The Notes referred to above form an integral part of Profit & Loss Account.
Notes For the Year For the Yearended 31.03.15 ended 31.03.14
V. R. Reddy Subir Dutta B. R. Reddy Rakesh SinhaCompany Secretary GM (Finance) (I/C) Director (Tech.) P&P Chairman-cum-Managing Director
DIN : 07001710 DIN : 02186695
(D. Choudhury) Partner Membership No. : 052066 for and on behalf of
M. Choudhury & Co. Chartered Accountants.
Firm Regn. No.: 30218EDate : 26th May, 2015Place : Kolkata
ANNUAL REPORT 2014-15
124
EASTERN COALFIELDS LIMITEDCASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2015
(` in Crores)
31.03.2015 31.03.2014
(a) Cash Flow from Operating ActivitiesNet Profit Before Taxation : 1,782.41 1,299.28Add / Less Non Operating Expenses /(Non Operating Incomes)Liability Written Back (12.43) (124.45)Depreciation / Impairment 244.79 213.50Interest Income (421.99) (189.86)OBR Adjustment 174.42 210.00Profit on Sale of Asset (1.10) (1.63)Provision for Loss of Asset / Surveyed Off Asset 1.56 4.01Debit / (Credit) for Foreign Exchange Fluctuation 9.61 13.46
(5.14) 125.06
Operating Profit before working capital changes 1,777.27 1,424.31Decrease / (Increase) in Sundry Debtors 293.13 1,862.12Decrease / (Increase) in Loans & Advances (70.79) (16.27)Decrease / (Increase) in Current assets (76.16) (88.51)Decrease /(Increase) in Inventories (100.50) (8.19)Increase/(Decrease) in Liabilities & Provisions(excl. LIAB W/Back) (625.68) (580.00) (1,054.59) 694.56Cash Generation from Operation 1,197.27 2,118.87Advance Income Tax Paid 215.42 215.42 -- --Net Cash Flow from Operating Activities (A) : 981.85 2,118.87(B) Cash Flow from Investing ActivitiesPurchases of Assets including Capital WIP (686.69) (408.87)Adjustment in Value of Fixed Assets (0.67) 6.70Redemption of Power Bond 0.05 0.02Decrease/ (Increase) in Deposits (More than 3 Mths.)(1,213.12) (1,153.55)Interest Income 421.99 189.86Profit on Sale of Fixed Asset 1.10 (1,477.34) 1.63 (1,364.21)Net cash flow from investing activities (B) (1,477.34) (1,364.21)
EASTERN COALFIELDS LIMITED
125
(C) Cash Flow from Financing Activities :Repayment of Long Term Borrowings (5.75) (5.74)
Net Cash Flow from Financing Activities (C) (5.75) (5.74)
Net Increase in Cash / Cash Equivalents (A+B+C) (501.24) 748.92Cash & Cash Equivalent (Excl. Deposit more than three mths)Opening Cash & Bank Balance 1,188.07 439.15Closing Cash & Bank Balance 686.83 (501.24) 1,188.07 748.92
(` in Crores)
31.03.2015 31.03.2014
V. R. Reddy Subir Dutta B. R. Reddy Rakesh SinhaCompany Secretary GM (Finance) (I/C) Director (Tech.) P&P Chairman-cum-Managing Director
DIN : 07001710 DIN : 02186695
(D. Choudhury) Partner Membership No. : 052066 for and on behalf of
M. Choudhury & Co. Chartered Accountants.
Firm Regn. No.: 30218EDate : 26th May, 2015Place : Kolkata
ANNUAL REPORT 2014-15
126
NOTES TO BALANCE SHEET CONSOLIDATED
NOTE - 1
SHARE CAPITAL (` Crores)
AS AT AS AT31-03-2015 31-03-2014
AUTHORISED :
(i) 250,00,000 Equity Share of ` 1000.00 each. 2500.00 2500.00
(ii) 210,00,000 (P.Y. NIL), 6% Non Convertible Comulative, Redeemable Preference Shares of ` 1000/- each 2100.00 --
4,600.00 2,500.00Issued, Subscribed & Paid up :10390000 Equity Shares of ` 1000/-each fully Paid-up in cash 1,039.00 1,039.00
11794500 Equity Shares of `1000/- eachalloted as fully paid-up consideration 1,179.45 1,179.45received other than cash
20509700 (P.Y. NIL), 6% Non ConvertibleComulative, Reedemable Preference Sharesof `1000/- each alloted as fully paid up forConsideration received other than cash 2,050.97 ---
Total 4,269.42 2218.45
Note 1.1 : Shares in the company held by each shareholder holding more than 5% Shares.
Name of ShareholderNo. of Shares Held
(Face value of`1000 each)
% of Total Shares
Note 1.2 : (a) There was no change in the Number of Equity Shares during the year.Note 1.2 : (b) All Prefernece Shares were issued to the Coal India Limited Holding Company
during the year.
Coal India Limited Holding Company(Equity Share)
Coal India Limited Holding Company(Preference Share)
22184500 100%
20509700 100%
EASTERN COALFIELDS LIMITED
127
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED
NOTE - 2
RESERVES & SURPLUS (` Crores)
AS AT AS AT31-03-2015 31-03-2014
RESERVES :
Capital Reserve As per last Balance Sheet - - Add: Addition during the year - - Less: Adjustment During the year - -
- -
Capital 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 - - Add: Addition during the year - - Less: Transfer to General Reserve - -
- -
General Reserve As per last Balance Sheet 832.71 832.71 Add : Transfer from Statement of Profit & Loss - - Add : Less: Adjustment During the year - -
832.71 832.71
Surplus in Statement of Profit & Loss
As per last Balance Sheet (4,637.53) (5,509.76) Retained earnings (as per schedules of
Companies Act 2013) (50.58)Profit after Tax During the year 1,139.40 872.23
Profit/(Loss) available for Appropriation (3,548.71) (4,637.53)
ANNUAL REPORT 2014-15
128
APPROPRIATION Reserve for Foreign Exchange Transaction - - Transfer to General Reserve - - Transfer to CSR Reserve - - Interim Dividend - - Proposed Dividend on Equity Shares - - Corporate Dividend Tax - -
(3,548.71) (4,637.53)
Miscellaneous Expenditure(to the extent not written off) Preliminary Expenses - - Pre-Operational Expenses
Total : (2,716.00) (3,804.82)
NOTE - 3LONG TERM BORROWING (` Crores)
AS AT AS AT31-03-2015 31-03-2014
Term Loan
IBRD - -JBIC - -Export Development Corp., Canada 164.33 162.32Liebherr France S.A., FranceLoan From Coal India Limited - 518.97Total (A+B) 164.33 681.29
Particulars of Loan Amount in `crores Nature of GuaranteeExport Development Corporation, Canada 164.33 GOIPrevious Year 162.32 GOI
Note 3.1 :- Loss on Exchange Rate Variance of ` 7.89 crores (` 13.46 crores) in respect of unsecured loan fromExport Development Corporation, Canada has been adjusted in the value of the unsecured loan and correspondingeffect in Other expenses (Note - 31) of the Statement of Profit and Loss.Note 3.2 : During the year repayment of foreigh loan of ` 5.75 crores (` 5.74 crores) has been made.Note 3.3 : During the year the CIL Loan has been converted into 6% Non Convertible, Cumulative Redeemable Preference
share capital.
EASTERN COALFIELDS LIMITED
129
NOTE - 5LONG TERM PROVISIONS (` Crores)
AS AT AS AT31-03-2015 31-03-2014
For Employee Benefits
- Gratuity 256.56 1,515.36
- Leave Encashment 499.71 451.72
- Other Employee Benefits 304.14 276.91 - -
For Foreign Exchange Transactions (Marked to Market) - -
OBR Adjustment Account 1,785.17 1,610.75
Mine Closure 148.06 73.52
For Others (Post Retirement Medical Benefit) 141.59 114.29
TOTAL 3.135.23 4,042.55
Note 5.1: The year end liability of Gratuity, Leave encashment, Medical benefit for retired executives and otheremployees benefit like Group Personal Accident Insurance Policy, Leave Travel Concession, compensationto dependents in case of mines accidental death are valued on actuarial basis.
Note 5.2 : Provisions of long term gratuity is after adjustment of gratuity trust fund balance of 2042.35 Crores (`662.31Crores)
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED :
NOTE - 4OTHER LONG TERM LIABILITIES (` Crores)
AS AT AS AT31-03-2015 31-03-2014
Shifting & Rehabilitation Fund
Opening Balance - -Add: Interest from Investment of the fund - -
Add: Contribution Received - -Less : Amount utilised - -
- -
Trade Payable - -Security Deposits 17.54 16.79
Others 1.38 1.20Total 18.92 17.99
ANNUAL REPORT 2014-15
130
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED :
NOTE - 6SHORT TERM BORROWING (` Crores)
AS AT AS AT31-03-2015 31-03-2014
Loan From Bank - -
Loans Repayable on Demand
Balance with Coal India Limited & other Subsidiariesof Coal India Limited 129.01 1,714.51
Overdraft against Pledge of Term Deposit - -Other Loans and Advances - -Deferred Credits - -
CLASSIFICATION 2Loan Guaranteed by directors & others
Particulars of Loan Amount in ` crores Nature of Guarantee
NIL NIL NIL
NOTE - 7
TRADE PAYABLES (` Crores)
AS AT AS AT31-03-2015 31-03-2014
Sundry Creditors For Revenue Stores 72.56 63.86
TOTAL 72.56 63.86
Note 6.1 :- During the year Balance with CIL of `1532 crores has been converted into 6% Non convertible Cumulative,Redeemable Preference Share capital.
EASTERN COALFIELDS LIMITED
131
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED :
NOTE - 8
OTHER CURRENT LIABILITIES (` Crores)
AS AT AS AT31-03-2015 31-03-2014
Current Maturities of Long Term BorrowingsTerm Loan From IBRD - -Term Loan From JBIC - -Term Loan From Export Development Corp., Canada 5.88 5.75Term Loan From Liebherr France S.A., France - -Loan From Coal India Limited - -Surplus Fund from Coal India Limited - -Current Account with Subsidiaries - -For Capital (including Stores) 71.59 20.73
Sales Tax/VAT 3.00 -Provident Fund & Pension Fund 68.10 66.09Central Excise Duty 0.32 23.34Royalty & Cess on Coal 42.11 29.74Stowing Excise Duty 11.36 11.05Clean Energy Cess 98.16 24.51Other Statutory Levies 42.20 17.52
265.25 172.25
Income Tax Deducted at Source 47.00 38.13Security Deposit 90.54 79.63Earnest Money 49.37 48.02Advance & Deposit from customers / others 526.00 388.17Interest Accrued and due on Borrowings - -Interest Accrued but not due on Borrowings - -
*Note - 8.1 :-In the process of making payment of Cess on the annual value of coal bearing land based on the averageproduction of preceding two years valuing at a rate prevailing as on 1st April of each year and realisationmade from customers on the value of despatches of Coal considering the sale price prevailing on 31stMarch of the financial year, there remains a balance accumulating to ` 1410.51 cr. (` 1241.82 cr.).)which has been shown under cess equilisation A/C.
For Proposed Dividend - -For Corporate Dividend Tax - -Provision for Income Tax 469.52 154.06Less : Advance Income Tax / Tax Deducted at Source (252.91) (18.74)For Excise Duty on Closing Stock of Coal 26.14 18.59For Others 2.58 2.76
TOTAL 1,051.41 858.76
Note: 9.1 : Provision for short term gratuity is after adjustment of gratuity trust fund balance of 310.83 Crores (` 355.74Crores)
EASTERN COALFIELDS LIMITED
133
GRO
SS B
LOCK
D
EPRE
CIAT
ION
IM
PAIR
MEN
T LO
SSTo
tal
CAR
RYIN
G V
ALUE
PART
ICUL
ARS
As o
nAd
ditio
nAd
j./Sa
les/
TrAs
on
As o
nAd
ditio
nAd
j./Sa
les/
TrAs
on
As o
nAd
ditio
nAd
j./Sa
les/
As o
nTo
tal
As o
nAs
on
01.0
4.14
durin
g th
ean
sfer
dur
ing
31.0
3.15
01.0
4.14
durin
g th
ean
sfer
dur
ing
31.0
3.15
01.0
4.14
durin
g th
eTr
ansf
er31
.03.
15D
epre
ciat
ion/
31.0
3.15
31.
03.1
4pe
riod
the
perio
dpe
riod
the
perio
dpe
riod
durin
g th
eIm
pairm
ent
perio
dLo
ssTa
ngib
le A
sset
sLa
nd
(a) F
reeh
old
69.6
834
.90
(31.
85)
72.7
35.
59-
(5.5
8)0.
01-
--
-0.
0172
.72
64.0
9
(b) L
ease
hold
124.
2299
.33
31.3
825
4.93
33.2
513
.57
5.58
52.2
0-
--
-52
.20
202.
7391
.17
Build
ing/
Wat
er S
uppl
y/R
oad
& C
ulve
rts49
3.02
20.5
4(0
.30)
513.
2623
4.59
17.1
813
.01
264.
78-
--
-26
4.78
248.
4825
8.43
Plan
t & E
quip
men
ts36
25.8
726
6.34
(39.
55)
3852
.66
2835
.36
164.
45(6
.36)
2993
.45
--
--
2993
.45
859.
2179
0.51
Tele
com
mun
icat
ion
31.7
10.
28-
31.9
918
.61
1.06
-19
.67
--
--
19.6
712
.32
13.1
0R
ailw
ay S
idin
gs26
.75
1.50
-28
.25
19.9
10.
930.
9421
.78
--
--
21.7
86.
476.
84Fu
rnitu
re &
Fix
ture
s/O
ffice
Tool
s& E
quip
men
ts/E
lect
rical
Fitti
ngs/
Fire
Arm
s10
7.40
8.67
-11
6.07
77.6
74.
474.
5786
.71
--
--
86.7
129
.36
29.7
3Ve
hicl
e13
.96
0.44
(0.2
6)14
.14
11.8
40.
26(0
.25)
11.8
5-
--
-11
.85
2.29
2.12
Airc
raft
--
--
--
--
Dev
elop
men
tAs
sets
taken
on
Natio
nalis
ation
9.16
-(0
.99)
8.17
9.16
-(0
.99)
8.17
--
--
8.17
--
Surv
eyed
Off
Asse
ts36
1.66
-22
.97
384.
63-
--
-36
1.66
1.23
21.7
438
4.63
384.
63-
-TO
TAL
4863
.43
432.
00(1
8.60
)52
76.8
332
45.7
820
1.92
10.9
234
58.6
236
1.66
1.23
21.7
438
4.63
3843
.25
1433
.58
1255
.99
Tang
ible
Ass
ets
(As
on 3
1.03
.201
4)42
72.7
531
7.08
(88.
06)
4501
.77
3160
.59
161.
64(7
6.45
)32
45.7
8-
--
-32
45.7
812
55.9
911
24.9
4In
tang
ible
Ass
ets
Com
pute
r Sof
twar
eD
evel
opm
ent
1092
.75
45.7
5-
1138
.50
738.
0620
.91
-75
8.97
231.
7817
.26
2.62
251.
6610
10.6
312
7.87
122.
91Pr
ospe
ctin
g &
Borin
g20
2.74
0.64
-20
3.38
136.
791.
16(0
.20)
137.
7561
.06
0.62
-61
.68
199.
433.
954.
89To
tal
1295
.49
46.3
9-
1341
.88
874.
8522
.07
(0.2
0)89
6.72
292.
8417
.88
2.62
313.
3412
10.0
613
1.82
127.
80In
tang
ible
Ass
ets
(As
on 3
1.03
.201
4)12
62.8
032
.75
(0.0
6)12
95.4
984
2.27
32.5
70.
0187
4.85
277.
8615
.27
(0.2
9)29
2.84
1167
.69
127.
8015
7.83
GRA
ND T
OTA
L61
58.9
247
8.39
(18.
60)
6618
.71
4120
.63
223.
9910
.72
4355
.34
654.
5019
.11
24.3
669
7.97
5053
.31
1565
.40
1383
.79
NO
TE -
10 A
FIXE
D A
SSET
S
PART
ICUL
ARS
( C
rore
s )
Note
-10A
.1:-
Dire
ct p
urch
ase
of T
enan
cy L
and
are
clas
sifie
d as
free
hol
d La
nd. L
and
acqu
ired
unde
r Coa
l Bea
ring
Acqu
isiti
on A
ct, 1
957,
L.A
. Act
189
4, in
herit
ed la
nd o
n na
tiona
lisat
ion,
dire
ct tr
ansf
er o
f Gov
t.La
nd a
nd F
ores
t Lan
d ar
e cl
assi
fied
as L
and
Oth
er.
Not
e-10
A.2
:- La
nd in
clud
es c
erta
in la
nd ta
ken
on p
osse
sion
by
the
Com
pany
for w
hich
lega
l for
mal
ities
in re
spec
t of t
itle
deed
s et
c. a
re p
endi
ng. H
owev
er, l
and
take
n on
pos
sess
ion
by th
e C
ompa
ny, f
or w
hich
valu
es a
re y
et to
be
asce
rtain
ed p
endi
ng c
ompl
etio
n of
lega
l for
mal
ities
, hav
e no
t bee
n in
clud
ed.
Not
e-10
A.3
:- Fu
ll pr
ovis
ion
amou
nitn
g to
1
.23
Cro
re
( 3
.87
cror
e) o
n th
e va
lue
of s
urve
yed
off A
sset
s ha
s be
en m
ade.
ANNUAL REPORT 2014-15
134
CO
ST
PR
OVI
SIO
N
IMPA
IRM
ENT
LOSS
Tota
l
CA
RR
YIN
G V
ALU
E
As o
nAd
ditio
nAd
j./Sa
les/
TrAs
on
As o
nAd
ditio
nAd
j./Sa
les/
As
onAs
on
Addi
tion
Adj./
Sale
s/As
on
Tota
lAs
on
As o
nPA
RTI
CU
LAR
S01
.04.
14du
ring
the
ansf
er d
urin
g31
.03.
1501
.04.
14du
ring
Tran
sfer
31.
03.1
501
.04.
14du
ring
the
Tra
nsfe
r31
.03.
15 D
epre
ciat
ion/
31.0
3.15
31.0
3.14
perio
dth
e pe
riod
the
durin
g th
e p
erio
ddu
ring
the
Impa
irm
ent
per
iod
perio
dpe
riod
Los
sTa
ngib
le A
sset
sBu
ildin
g/W
ater
Sup
ply
/Roa
d &
Cul
verts
19.4
629
.74
(20.
62)
28.5
85.
910.
01-
5.92
--
--
5.92
22.6
613
.55
Plan
t & E
quip
men
ts12
2.37
327.
87(1
96.1
5)25
4.09
36.6
90.
28(0
.01)
36.9
6-
--
-36
.96
217.
1385
.68
Rai
lway
Sid
ings
7.14
17.8
1(1
.21)
23.7
42.
63-
-2.
63-
--
-2.
6321
.11
4.51
Dev
elop
men
t-
0.08
-0.
08-
--
--
--
--
0.08
-
Oth
ers
4.08
11.4
9(9
.71)
5.86
0.95
0.03
-0.
98-
--
-0.
984.
883.
13
TOTA
L15
3.05
386.
99(2
27.6
9)31
2.35
46.1
80.
32(0
.01)
46.4
9-
--
-46
.49
265.
8610
6.87
Tang
ible
Ass
ets
(As
on 3
1.03
.201
4)10
7.41
318.
95(2
73.3
1)15
3.05
46.0
90.
14–0
.05
46.1
8-
--
-46
.18
106.
8761
.32
Not
e- 1
0B.1
:-To
tal p
rovi
sion
for T
angi
able
Ass
ets
upto
the
end
of th
e pe
riod
is
46.
49 c
rore
s (
46.
18 c
rore
s)
NOTE
- 10
BCA
PITA
L W
ORK
-IN-P
ROG
RESS
( C
rore
s)
PAR
TIC
ULA
RS
EASTERN COALFIELDS LIMITED
135
CO
ST
PRO
VISI
ON
IMPA
IRM
ENT
LOSS
T
otal
C
AR
RYI
NG
VA
LUE
As o
nAd
ditio
nAd
j./Sa
les/
TrAs
on
As o
nAd
ditio
nAd
j./Sa
les/
As
onAs
on
Addi
tion
Adj./
Sale
s/As
on
Tota
lAs
on
As o
nPA
RTI
CU
LAR
S01
.04.
14du
ring
the
ansf
er d
urin
g31
.03.
1501
.04.
14du
ring
Tran
sfer
31.
03.1
501
.04.
14du
ring
the
Tra
nsfe
r31
.03.
15 D
epre
ciat
ion/
31.0
3.15
31.0
3.14
perio
dth
e pe
riod
the
durin
g th
e p
erio
ddu
ring
the
Impa
irm
ent
per
iod
perio
dpe
riod
Los
s
Inta
ngib
le A
sset
s
Deve
lopm
ent
6
2.70
57.11
(40.
13)
79.6
810
.47
0.01
(2.2
7)8.
2122
.58
1.78
(0.3
5)24
.01
32.2
247
.46
29.6
5
Pros
pect
ing
& Bo
ring
4.82
32.6
6(0
.64)
36.8
42.
73-
-2.
731.
38-
-1.
384.1
132
.73
0.71
TOTA
L67
.52
89.7
7(4
0.77
)11
6.52
13.2
00.
01(2
.27)
10.9
423
.96
1.78
(0.3
5)25
.39
36.3
380
.19
30.3
6
Inta
ngibl
e As
sets
(As
on 3
1.03
.201
4)54
.12
46.5
6(3
3.16
)67
.52
13.9
4-
(0.7
4)13
.20
19.9
74.
02(0
.03)
23.9
637
.16
30.3
620
.21
NOTE
- 10
CIN
TANG
IBLE
ASS
ET U
NDER
DEV
ELO
PMEN
T(
Cro
res)
Note
10
C. 1
: T
otal
pro
visio
n / I
mpa
irmen
t los
s up
to th
e en
d of
the
year
is
36.
33 C
rore
s (
37.
16 cr
ores
) und
er in
tang
ible
Ass
ets.
PAR
TIC
ULA
RS
ANNUAL REPORT 2014-15
136
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED :
NOTE - 11
NON - CURRENT INVESTMENTS - Unquoted at Cost (` crores)
Number of Face value pershares/bonds/sec shares/bonds/sec
urities current rity currentYear/(previous) year/(previous As at As at
year) year) (` ) 31.03.15 31.03.14
TRADE
8.5% Tax Free Special Bonds (Fully Paid up) :(on securitisation of Sundry Debtors)Major State-wise Break-up(4 Bonds of `
1,65,000/- each)
UP - - - 0.05Haryana - - - -Maharashtra - - - -Madhya Pradesh - - - -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) - - 0.08 0.08i) 500 “B” class shares of ` 1000/- each in Coal Mines Officers Co operative credit Society Ltd. ` 0.05ii) 1000 “D” class shares of ` 100/- each in Dishergarh colly Worker’s central co-opt store Ltd. ` 0.01iii) 4000 shares of ` 25/- each in the Mugma coalfield colly Worker’s central co-opt store Ltd. ` 0.01iv) 500 “B” class shares of ` 100/- each in Sodepur colly Employee’s co-opt credit society Ltd. & 500 “B” class shares of ` 100 each in Dhenomain colly. Employees’ co-opt credit society Ltd. ` 0.01NON-TRADE7.55% Non Convertible IRFC Tax Free Bonds2021 Series - - - -
Total : 0.08 0.13Aggregate of Quoted Investment - -Aggregate of Unquoted Investment - -Market Value of Quoted Investment - -Provision made for diminution in the value of Investment - -
EASTERN COALFIELDS LIMITED
137
LOANS
ADVANCES
For Capital - Secured considered goods - - - Unsecured considered goods 162.29 88.57 - Doubtful 3.95 4.80
166.24 93.37 Less : Provision for Doubtful Loans and Advances 3.95 4.80
162.29 88.57
For Revenue - - - Secured considered goods - - - Unsecured considered goods 2.23 2.20 - Doubtful 0.56 0.56
2.79 2.76 Less : Provision for Doubtful Loans and Advances 0.56 0.56
2.23 2.20
Security Deposits - Secured considered goods - - - Unsecured considered goods 7.26 7.89 - Doubtful 1.52 0.66
8.78 8.55 Less : Provision for Doubtful Loans and Advances 1.52 0.66
7.26 7.89Deposit for P&T, Electricity etc. - Secured considered goods - - - Unsecured considered goods 0.35 0.37 - Doubtful 0.44 0.44
0.79 0.81 Less : Provision for Doubtful Loans and Advances 0.44 0.44
0.35 0.37
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED :
NOTE - 12
LONG TERM LOANS & ADVANCES (` Crores)
AS AT AS AT31-03-2015 31-03-2014
ANNUAL REPORT 2014-15
138
LOAN TO EMPLOYEES & OTHERS
For House Building - - - Secured considered goods 0.56 0.82 - Unsecured considered goods - - - Doubtful - -
0.56 0.82
For Motor Car and Other Conveyance - - - Secured considered goods 0.02 0.01 - Unsecured considered goods - - - Doubtful - -
0.02 0.01
For Others - - - Secured considered goods - - - Unsecured considered goods - - - Doubtful - -
- -
Less : Provision for Doubtful Loans and Advances - -- -
172.71 99.86
Loan To Subsidiaries - - Secured considered goods - - - Unsecured considered goods - - - Doubtful - -
- -
TOTAL 172.71 99.86
Note
CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING
CURRENT PREVIOUS CURRENT PREVIOUSPERIOD PERIOD PERIOD PERIOD
Due by the Companies in which directors ofthe company is also a director/member NIL NIL NIL NIL( with name of the Companies)
Due by the parties in which the Director(s) ofcompany is /are interested NIL NIL NIL NIL
P A R T I C U L A R S
EASTERN COALFIELDS LIMITED
139
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED :
NOTE - 13
OTHER NON-CURRENT ASSETS (` Crores)
AS AT AS AT31-03-2015 31-03-2014
Long Term Trade Receivable - Secured considered goods - - - Unsecured considered goods - - - Doubtful - -
- - Less Provision for bad and doubtful Trade Receivable - -
- -Exploratory Drilling Work - Secured considered goods - - - Unsecured considered goods - - - Doubtful - -
- - Less Provision for bad and doubtful - -Receivables for Mine Closure Expenses 1.09 -Other Receivables - Secured considered goods - - - Unsecured considered goods 16.32 16.33 - Doubtful 4.98 5.22
21.30 21.55 Less Provision for bad and doubtful Receivables 4.98 5.22
16.32 16.33
TOTAL 17.41 16.33
Note :
CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING
CURRENT PREVIOUS CURRENT PREVIOUSPERIOD PERIOD PERIOD PERIOD
Due by the Companies in which directors ofthe company is also a director/member NIL NIL NIL NIL( With name of the Companies)
Due by the parties in which the Director(s) ofcompany is /are interested NIL NIL NIL NIL
P A R T I C U L A R S
ANNUAL REPORT 2014-15
140
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED :
NOTE - 14
CURRENT INVESTMENTS - Quoted / Unquoted at Cost (` crores)
Number of Face value per Market Value/NAV Pershares/bonds/sec shares/bonds/sec Shares/bonds/security
urities current rity current current year /Year/(previous) year/(previous (previous year) As at As at
year) year) (` ) ( ` ) 31.03.15 31.03.14
NON-TRADE
Mutual Fund Investment - - - - -( with name of mutual fund )7.55% Non Convertible IRFC Tax Free Bonds2021 Series
TRADE
8.5% Tax Free Special Bonds (Fully Paid up) :(on securitisation of Sundry Debtors)Major State-wise Break-up(2 Bonds of `
1,65,000/- each)
UP 0.03 0.03
Total : 0.03 0.03
Aggregate of Quoted Investment - -Aggregate of Unquoted Investment - -Market Value of Quoted Investment - -Market Value of Unquoted Investment - - Provision made for diminution in the value of Investment - -
EASTERN COALFIELDS LIMITED
141
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED :
NOTE - 15
INVENTORIES (` Crores)
AS AT AS AT31-03-2015 31-03-2014
Stock of Coal 386.00 299.95Coal Under Development - -Less : Provision 1.76 1.76
A Stock of Coal (Net) at lower of cost ornet realisable value 384.24 298.19
B Net Stock of Stores & Spares (at cost) 149.59 133.77
C Workshop Jobs :Work-in-progress and Finished Goods 16.50 18.06Less : Provision 0.12 0.20
Net Stock of Workshop Jobs (at cost) 16.38 17.86
D Press :Work-in-Progress and Finished Goods - -
E Stock of Medicine at Central Hospital (at cost) 0.81 0.70
F Prospecting & Boring/ Development Exp./CoalBlocks meant for Sale - -
Total ( A to F ) 551.02 450.52
Note - 15.1 :- Closing Stock of stores at Central and Area Stores have been valued at weighted averagecost. Provision at the end of the year for ` 38.81 crore (` 43.97 crore) consists of the following:
a) Provision for quantitative discrepancies noticed between Bin Cards and Stores Ledger uptoNIL (` 2.07 Crore)
b) Provision for unserviceable, damaged and obsolete store `10.47 crore (` 10.47 crore)
c) Provision for non-moving stores & spares ` 28.34 crore ( ` 31.43 crore. )
ANNUAL REPORT 2014-15
142
SCHEDULES TO BALANCE SHEET (CONTD.) CONSOLIDATED
ANNEXURE TO NOTE - 15
(Qty. in Lakh tonnes) (value in lakh ` )
TABLE - A
Reconciliation of closing stock adopted in Account with Book stock as at 31.03.2015
OVERALL STOCK NON-VENDABLE STOCK VENDABLE STOCKQty. Value Qty. Value Qty. Value
1. (A) Opening stock as on 01.04.14 23.84 34651 4.71 4656 19.13 29995
Note : Production includes seized coal of 0.02 lakh tonne.
EASTERN COALFIELDS LIMITED
143
Shou
ld F
orm
Par
t of N
otes
to A
ccou
nts
Sum
mar
y of
Clo
sing
Sto
ck o
f Coa
l (Q
ty. i
n La
kh to
nnes
/ Va
lue
in
lakh
)Ta
ble
: B
Raw
Coa
l
W
ashe
d / D
esha
led
Coal
Oth
er P
rodu
cts
T
otal
Co
king
No
n-Co
king
Cokin
g
Non
-Cok
ing
Qty
Value
Qty
Value
Qty
Value
Qty
Va
lueQt
yVa
lueQt
yVa
lue
Ope
ning
Sto
ck (A
udite
d)-
-23
.84
34,6
51-
--
--
-23
.84
34,6
51
Less
: Non
-ven
dabl
e Co
al-
-4.
714,
656
--
--
--
4.71
4,65
6
Adjus
ted
Ope
ning
Stoc
k ( V
enda
ble)
--
19.1
329
,995
--
--
--
19.1
329
,995
Prod
uctio
n-
-40
0.08
1,01
9,10
2-
--
--
-40
0.08
1,01
9,10
2
Offt
ake
--
(A
) O
utsid
e De
spat
ch-
-38
2.20
1,00
1,85
3-
--
--
-38
2.20
1,00
1,85
3
(B
)
Coal
feed
to W
ashe
ries
--
--
--
--
--
--
(C
)
Own
Con
sum
ptio
n-
-2.
508,
644
--
--
--
2.50
8,64
4
-
-
Clos
ing
Stoc
k **
--
34.5
138
,600
--
--
--
34.5
138
,600
Less
: Sho
rtage
--
--
--
--
--
--
Clos
ing
Stoc
k **
(Not
e - 1
5)-
-34
.51
38,6
00-
--
--
-34
.51
38,6
00
Less
: Sei
zed
Coal
--
-
2
49-
--
--
--
249
Clos
ing
Stoc
k **
(Not
e - 2
3)-
-
-
38,3
51-
--
--
--
38,3
51
Not
e: P
rodu
ctio
n in
clud
es s
eize
d co
al o
f 0.0
2 la
kh to
nne.
ANNUAL REPORT 2014-15
144
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED :
NOTE - 16TRADE RECEIVABLES (` Crores)
AS AT AS AT31-03-2015 31-03-2014
Debts outstanding for a period exceeding six monthsfrom the due date - Secured considered good - - - Unsecured considered good 761.31 1142.74 - Doubtful 455.07 423.70
1216.38 1566.44 Less Provision for bad and doubtful trade receivables 455.07 423.70
761.31 1142.74
Other Debts - Secured considered good - - - Unsecured considered good 665.57 577.27 - Doubtful 8.07 - A
673.64 577.27 Less Provision for bad and doubtful trade receivables 8.07 A -
655.57 577.27
Total 1426.88 1720.01
Notes :
Note 16.1 :- Adjustment of an amount of ` 86.25 crores (Previous year ` 382.91 crores) for grade slippage hasbeen made after reconciliation, settlement and issuing credit notes to parties during the year.
` in crore ` in croreNote 16.2 :- The details of provision are as under :- 31.03.15 31.03.14 Opening Provision 423.70 399.39 Less: Settled/Written off/adjusted against opening debtors ---- ---- Add: New provision during the year 90.23 92.82 Less: Written back from opening provision 50.79 68.51 Closing Balance 463.14 423.70
CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING
CURRENT PREVIOUS CURRENT PREVIOUSPERIOD PERIOD PERIOD PERIOD
Due by the Companies in which directors ofthe company is also a director/member NIL NIL NIL NIL( With name of the Companies)
Due by the parties in which the Director(s) ofcompany is /are interested NIL NIL NIL NIL
EASTERN COALFIELDS LIMITED
145
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED :
NOTE - 17
CASH & BANK BALANCE (` Crores)
AS AT AS AT31-03-2015 31-03-2014
Balances with Scheduled Banks - SBI Dividend Account (unpaid/unclaimed dividend account) - In Deposit Accounts with maturity upto 3 months 318.28 529.32 - In Current Accounts 219.09 584.43 - In Cash Credit Accounts - -
Balances with Non - Scheduled Banks
In Account with Banks outside India - -
Remittance - in transit - -Cheques, Drafts and Stamps on hand 0.83 0.08Cash on hand 0.57 0.72
Deposit with Scheduled Banks under Shifting and RehabilitationFund Scheme with maturity upto 3 months - -
Other Bank Balances
Balances with Scheduled Banks - In Deposit Accounts with maturity more than 3 months 3,877.05 2,663.93
Deposit with Scheduled Banks under Shifting and RehabilitationFund Scheme with maturity more than 3 months - -
Deposit with Scheduled Banks under Mine Closure Plan Scheme* 148.06 73.52
Total 4,563.88 3,852.00
1. Maximum amount outstanding with Banks other than ScheduledBanks at any time during the year nil nil
2. Deposit for more than 1 (one) year from the date of purchase nil nil3. ` 66.49 crores has been deposited with Union Bank of India towards Mine closure Escrow a/c during the period.4. ` 8.05 crores has been deposited with Union Bank of India as Interest towards Mine closure Escrow a/c during the
year.
ANNUAL REPORT 2014-15
146
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED :
NOTE - 18
SHORT TERM LOANS & ADVANCES (` Crores)
AS AT AS AT31-03-2015 31-03-2014
LOANS
ADVANCE( Recoverable in cash or in kind or for value to be received)
ADVANCE TO SUPPLIERS
For Revenue - Secured considered good - - - Unsecured considered good 75.21 74.09 - Doubtful 0.49 2.50
75.70 76.59 Less Provision for bad and doubtful Advance 0.49 2.50
75.21 74.09
75.21 74.09
ADV PAYMENT OF STATUTORY DUES
SalesTax - - - Secured considered good - - - Unsecured considered good 28.03 24.08 - Doubtful - -
28.03 24.08 Less Provision for bad and doubtful Advance - -
28.03 24.08
Advance Income Tax / Tax Deducted at Source - - Less : Provision for Income Tax - -
- -
Others - Secured considered good - - - Unsecured considered good 21.53 20.15 - Doubtful 0.20 0.44
21.73 20.59 Less Provision for bad and doubtful Advance 0.20 0.44
21.53 20.1549.56 44.23
EASTERN COALFIELDS LIMITED
147
Advance to Employees - Secured considered good - - - Unsecured considered good 78.02 79.84 - Doubtful 1.32 1.32
79.34 81.16 Less Provision for bad and doubtful Advance 1.32 1.32
78.02 79.84
Current Account with Coal India Limited & other Subsidiaries of Coal India Limited - -Loan Account with Subsidiaries - Secured considered good - - - Unsecured considered good - - - Doubtful - -
Less Provision for bad and doubtful Loan - -
MAT Credit Entitlement 174.62 -Claims Receivables - - - Secured considered good - - - Unsecured considered good 0.01 6.70 - Doubtful 2.20 2.20
2.21 8.90 Less Provision for bad and doubtful claim receivables 2.20 2.20
0.01 6.70Prepaid Expenses 0.39 0.39
253.04 86.93TOTAL 377.81 205.25
CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME DURING
CURRENT PREVIOUS CURRENT PREVIOUSPERIOD PERIOD PERIOD PERIOD
Due by the Companies in which directors ofthe company is also a director/member NIL NIL NIL NIL( with name of the Companies)
Due by the parties in which the Director(s) ofcompany is /are interested NIL NIL NIL NIL
Deposit for Customs Duty, Port Charges etc. - -Deposit with Coal India Limited - -Deposit for Royalty, Cess & Sales Tax - -Less: Provision - -Others 5.55 3.74Less: Provision 0.49 0.49
5.06 3.25
Amount Receivable from Govt of India for transactions on behalfof Ex-Coal Board - -Less: Provision - -
Other Receivables 84.42 140.75Less: Provision 1.16 1.13
83.26 139.62
TOTAL 345.73 270.65
EASTERN COALFIELDS LIMITED
149
NOTES TO STATEMENT OF PROFIT & LOSS CONSOLIDATED :
NOTE - 20
REVENUE FROM OPERATIONS (` Crores)
For the year For the yearended ended
31-03-2015 31-03-2014
A. Sales of Coal 13,413.84 11,945.92
Less: Excise Duty 655.62 595.80
Less : Other LeviesRoyalty 350.75 322.83Cess on Coal 1,578.58 1,522.89Stowing Excise Duty 38.22 35.98Central Sales Tax 192.68 150.20Clean Energy Cess 374.17 179.89State Sales Tax/VAT 176.99 238.22Other Levies 28.29 12.32
TOTAL LEVIES 3,395.30 3,058.13
NET SALES : 10,018.54 8,887.79B. Other operating Revenue
Facilitation charges for coal ImportSubsidiy for Sand stowing and protective works 49.58 53.62Loading and additional transportation charges 185.57 181.87Less: Excise Duty 8.42 8.37Less: Other Levies 4.74 5.46OTHER OPERATING REVENUE (B) 221.99 221.66
C. Revenue from Operation(A+B) 10240.53 9109.45
Note 20.1:- Sale is net of deduction for grade slippage of ` 86.25 crores (` 382.91 crores) due to credit noteissued to the parties for grade slippage.
Note 20.2:- Sale includes MOU quantity of 42.50 LT.(8.91 LT) and MOU gain of ` 596.16 Crores ( 122.71Crores)
Note 20.3:- Sales includes ` 268.40 crores ( 349.11 crores ) as incentive under fuel supply agreement withvarious power sector for achieving despatch target.
Note 20.4:- Sales includes e-auction quantity of 18.89 LT (39.04 LT) and e-auction gain of ` 298.96 crores(` 224.35 crores )
Note 20.5:- Sales includes Export sales to Bhutan of 0.04 LT amounting to ` 1.33 crores.
ANNUAL REPORT 2014-15
150
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED :
NOTE - 21
OTHER INCOME (` Crores)
For the year For the yearended ended
31-03-2015 31-03-2014Income From Long Term Investments
Dividend from Joint Ventures - -Dividend from Subsidiaries - -Interest fromGovernment Securities (8.5% Tax Free Special Bonds) (Trade) - 0.01
7.55% Non Convertible IRFC Tax Free Bonds 2021 Series(Non-Trade)
Income From Current Investments
Dividend from Mutual Fund Investments - -Interest fromGovernment Securities (8.5% Tax Free Special Bonds) (Trade)7.55% Non Convertible IRFC Tax Free Bonds 2021 Series (Non-Trade) - -
Income From Others
Interest (Gross)From Deposit with Banks 421.89 189.86From Loans and Advances to Employees 0.10 0.10From Income Tax Refunds - 0.09From Coal India - -Others 0.01 0.01
Central Excise Duty on closing of coal - 2.16Apex Charges - -Profit on Sale of Assets 1.10 1.63Recovery of Transportation & Loading Cost - -Gain on Foreign exchange Transactions - -Exchange Rate Variance - -Lease Rent - -Liability Write Backs 12.43 124.45Guarantee Fees from Subsidiaries - -Other non-operating Income 236.73 172.94
TOTAL 672.26 491.25
Note : Other non-operating income includes sales compensation under F.S.A. of ` 143.12 crores (` 91.57 crores)
EASTERN COALFIELDS LIMITED
151
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED :
NOTE - 22
COST OF MATERIAL CONSUMED (` Crores)
For the year For the yearended ended
31-03-2015 31-03-2014
Explosives 147.58 126.14
Timber 5.04 4.33
P O L 280.09 277.57
HEMM Spares 134.26 140.79
Other Consumable Stores & Spares 230.85 186.53
TOTAL 797.82 735.36
ANNUAL REPORT 2014-15
152
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED :
NOTE - 23(` Crores)
CHANGE IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK INTRADE
For the year For the yearended ended
31-03-2015 31-03-2014
Opening Stock of Coal / Coke 297.19 307.06Add : Adjustment of Opening Stock - -Less : Deterioration of Coal/Coke 1.76 1.76 Total (1) 295.43 305.30
Less : Closing Stock of Coal/Coke 383.51 297.19Less: Deterioration of Coal/Coke 1.76 1.76 Total (2) 381.75 295.43
A) Change in Inventory of Closing Stock (1-2) (86.32) 9.87
Opening Stock of Workshop made finished goods and WIP 18.06 13.83Less: Provision 0.20 0.20 Total (3) 17.86 13.63
Closing Stock of Workshop made finished goods and WIP 16.50 18.06Less: Provision 0.12 0.20 Total (4) 16.38 17.86
B) Change in Inventory of Closing Stock of workshop (3-4) 1.48 (4.23)
Press Opening Job i)Finished Goods - - ii)Work in Progress - - Total (5) - -
Press Closing Job i)Finished Goods - - ii)Work in Progress - - Total (6) - -
C) Change in Inventory of Closing Stock of Press Job madefinished goods and WIP (5-6) - -
- -- -- -
Total Change in Inventory of Stock( A+B+C ) (84.84) 5.64
EASTERN COALFIELDS LIMITED
153
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED :
Note - 29.1 :- Provision for mine closure expenses of ` 66.49 crores (` 71.03 crores) has been taken on the pro-rata cost of total mine closure expenditure of all operating mines being determined as per guidelineissued by the Ministry of Coal, GOI.
EASTERN COALFIELDS LIMITED
157
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED :
NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.) CONSOLIDATED :
NOTE - 32PRIOR PERIOD ADJUSTMENT (` Crores)
For the year For the yearended ended
31-03-2015 31-03-2014(A) Expenditure
Sale of Coal & Coke - -Stock of Coal & Coke - -Other Income - -Consumption of Stores & Spares - -Employees Remuneration & Benefits - -Power & Fuel - -Welfare Expenses - -Repairs - -Contractual Expenses - 2.41Other Expenditure - -Interest and other financial charges - -Depreciation - -
TOTAL (A) - 2.41
(B) Income
Sale of Coal & Coke - -Stock of Coal & Coke - -Other Income 0.45 (1.14)Consumption of Stores & Spares - 0.19Employees Remuneration & Benefits - -Power & Fuel - -Welfare Expenses - -Repairs - -Contractual Expenses - -Other Expenditure 0.59 -Interest and other financial charges - -Depreciation 1.14 -
TOTAL (B) 2.18 (0.95)
TOTAL ( A-B ) (2.18) 3.36
EASTERN COALFIELDS LIMITED
159
NOTES - 33
SIGNIFICANT ACCOUNTING POLICIES
1.0 Accounting Convention:
Financial statements are prepared under the historical cost convention and on accrual basis of
accounting and going concern concept, in accordance with the generally accepted accounting principles
in India and the relevant provisions of the Companies Act, 2013, including accounting standards notified
therein, except otherwise stated.
1.1 Use of estimate : In preparing the financial statements in conformity with Accounting Principles generally
accepted in India, management is sometimes required to make estimates and assumptions that affect
the reported amounts of assets and liabilities and the disclosures of contingent liability as at the date of
financial statements and the amount of revenue and expenses during the reported period. Actual results
may differ from those estimates. Any revision to such estimate is recognized in the period in which the
same is determined.
2.0 Subsidies / Grants from Government:
2.1 Subsidies / Grants on capital account are deducted from the cost of respective assets to which they
relate. The unspent amount at the Balance Sheet date, if any, is shown as current liabilities.
2.2 Subsidies / Grants on revenue account are credited to Statement of Profit & Loss as income and the
relevant expenses are debited to the respective heads of expenses. The unspent amount at the Balance
Sheet date, if any, is shown as current liabilities.
2.3 Subsidies / Grants from Government received as an implementing agency
2.3.1 Certain Grant / Funds received under S&T, PRE, EMSC, CCDA etc. as an implementing agency and
used for creation of assets are treated as Capital Reserve and depreciation thereon is debited to Capital
Reserve Account. The ownership of the asset created through grants lies with the authority from whom
the grant is received.
2.3.2 Grant / Funds received as Nodal/Implementing Agency are accounted for on the basis of receipts and
disbursement.
3.0 Fixed Assets:
3.1 Land: Value of land includes cost of acquisition, cash rehabilitation expenses, resettlement cost and
compensation in lieu of employment incurred for concerned displaced persons.
ANNUAL REPORT 2014-15
160
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 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 carried at cost. However, when there is a decline, other than temporary, in
the value of the long term investment, the carrying amount is reduced to recognize the decline.
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.
EASTERN COALFIELDS LIMITED
161
6.2 Stores & Spares:
6.2.1 The closing stock of stores and spare parts has been considered in the accounts as per balances appearing
in priced stores ledger of the Central Stores and as per physically verified stores lying at the collieries/
units.
6.2.2 Stock of stores & spare parts (which also includes loose tools ) at central & area stores are valued at cost
calculated on the basis of weighted average method. The year-end inventory of stores & spare parts lying
at collieries / sub-stores / drilling camps/ consuming centres, initially charged off, are valued at issue price
of Area Stores, Cost / estimated cost. Workshop jobs including work-in-progress are valued at cost. Similarly
stock of stationary at printing press and medicines at central hospital are valued at cost.
6.2.3 Stock of stationery (other than lying at printing press), bricks, sand, medicine (except at Central Hospitals),
aircraft spares and scraps are not considered in inventory.
6.2.4 Provisions are made at the rate of 100% for unserviceable, damaged and obsolete stores and at the rate
of 50% for stores & spares not moved for 5 years.
7.0 Depreciation / Amortisation :
7.1. Depreciation on fixed assets is provided on straight line method on the basis of useful life specified in
Schedule II of Companies Act 2013 except for assets mentioned below , for which depreciation is provided
on the basis of technically estimated useful life which are lower than that envisaged as per schedule II of
Companies Act, 2013 to depict a more true and fair rate of depreciation :-
Telecommunication equipment : - 6 years and 9 years
Photocopying machine : - 4 years
Fax machine : - 3 years
Mobile phone : - 3 years
Digitally enhance cordless telephone : - 3 years
Printer & Scanner : - 3 years
Earth Science Museum : - 19 years
High volume respiratory dust samplers : - 3 years
Certain equipment /HEMM : - 7 years and 6 years as applicable.
SDL (equipment) : - 5 years
LHD (equipment) :- 6 years
7.2 The residual value of all assets for depreciation purpose is considered as 5% of the original cost of the
asset except those item of assets covered under Para 7.3
7.3 In case of assets namely Coal tub, winding ropes, haulage ropes, stowing pipes & safety lamps the
technically estimated useful life has been determined to be one year with a nil residual value.
7.4 Depreciation on the assets added / disposed of during the year is provided on pro-rata basis with reference
to the month of addition / disposal, except on those assets with one year useful life and nil residual value
ANNUAL REPORT 2014-15
162
as mention under Para 7.3, which are fully depreciated in the year of their addition. These Assets are
taken out from the Assets after expiry of two years following the year in which these are fully depreciated.
7.5 Value of land acquired under Coal Bearing Area (Acquisition & Development) Act, 1957 is amortised on
the basis of the balance life of the project. Value of leasehold land is amortised on the basis of lease
period or balance life of the project whichever is earlier.
7.6 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.
7.7 Cost of Software recognized as intangible asset, is amortised on straight line method over a period of
legal right to use or three years, whichever is less; with a nil residual value.
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) Defined contributions plans:
The company has defined contribution plans for payment of Provident Fund and Pension Fund benefits
to its employees. Such Provident Fund and Pension Fund are maintained and operated by the Coal
Mines Provident Fund (CMPF) Authorities. As per the rules of these schemes, the company is required
to contribute a specified percentage of pay roll cost to the CMPF Authorities to fund the benefits.
b) Defined benefits plans:
The liability on the Balance Sheet date on account of gratuity and leave encashment is provided for on
actuarial valuation basis by applying projected unit credit method. Further the company has created
a Trust with respect to establishment of Funded Group Gratuity (cash accumulation) Scheme through
Life Insurance Corporation of India. Contribution is made to the said fund based on the actuarial
valuation.
EASTERN COALFIELDS LIMITED
163
c) Other employee benefits:
Further liability on the Balance Sheet date of certain other employee benefits viz. benefits on account
of LTA/ LTC; Life Cover Scheme, Group Personal Accident Insurance Scheme, Settlement Allowance,
Post Retirement Medical Benefits 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 knownliabilities.
11.1 Sales
a) Revenue in respect of sales is recognised when the property in the goods with the risks and rewardsof ownership are transferred to the buyer.
b) Sale of coal are net of statutory dues and accepted deduction made by customer on account ofquality 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 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
ANNUAL REPORT 2014-15
164
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:-
Annual Quantum of OBR of the Mine. Permissible limits of variance.
I I I
% Quantum
(in Mill.Cu.Mtr.)
Less than 1 Mill.Cu.M. +/- 5% 0.03
Between 1 and 5 Mill. Cu. M. +/- 3% 0.20
More than 5 Mill. Cu.M +/- 2% Nil
However, where the variance is beyond the permissible limits as above, the measured quantity is considered.
17.0 Prior Period Adjustments and Prepaid Expenses:
Income / expenditures relating to prior period and prepaid expenses, which do not exceed ` 0.10 Crore
in each case, are treated as income / expenditure of current year.
Annual Quantum of OBR of the Mine.
EASTERN COALFIELDS LIMITED
165
NOTE - 34
ADDITIONAL NOTES ON ACCOUNTS(For the Year ended 31st March, 2015)
1. BACKGROUND :
1.1 Eastern Coalfields Limited (The Company) was incorporated as a Private Limited Company on 1st November,
1975 as a 100% Subsidiary of Coal India Limited (CIL) upon taking over of Assets and Liabilities vested
with the Eastern Division of Coal Mines Authority Limited ( former name of Coal India Limited). The
Company is primarily engaged in business of production and sale of coal.
1.2 Pending completion of legal formalities for transfer of assets and liabilities to the Company certain Assets
including Mining Rights etc. continue to be in the name of CIL.
1.3 The formal transfer Deeds/Agreement for Assets & Liabilities transferred and taken over by the Company
in respect of coal Mines Labour Welfare Organisation, Kalla & Central hospital along with 4 other Hospitals/
Dispensaries, Mines Rescue Station, Barakar Engineering & Foundry Works are yet to be finalised and
executed in favour of the Company.
2. FIXED ASSETS AND CAPITAL-WORK-IN-PROGRESS.
2.1 Building includes Roads & Culverts situated in the residential/office/mining areas.
2.2 Physical verification in respect of all fixed assets and in respect of Plant & Machinery each worth ` 1.00
lakh or more have been carried out as per programme. Resultant differences on completion of formalities
have been adjusted.
2.3 The Net value of Assets taken over on nationalization of coal mines amounting to ` 8.17 crores, details of
which are not available, under Coal Mines Nationalization Act, 1973 have been taken into account and
shown under the group of tangible assets and against which full provision has been made.
3. INVENTORY:
3.1 The enquiry proceedings by CBI, Dhanbad for shortage of coal at Rajmahal OCP of ` 19.54 Lakhs tonne
valued at ` 63.58 Crore in 2007-08 has been completed in 2010-2011. The report on the same has been
forwarded to Chairman, CIL for information and to advice the Vigilance department for taking action against
the charged officers as per CBI order. The outcome of the order is still to be received.
3.2 Coal of 471408 M.T. (471408 M.T.) mixed with matti etc. is non-vendible and has been taken at NIL value.
4. SUNDRY DEBTORS:
4.1 Provision for Sundry Debtors is made on case to case basis. Normally no provision of Sundry Debtors is
ANNUAL REPORT 2014-15
166
made on unsettled amount of Debtors in the initial year. In the 2nd year provision is made up to 50%
amount of unsettled amount of debtors, and the rest is provided in the 3rd year if it remains unsettled.
5. CURRENT LIABILITIES & PROVISIONS:
A) CURRENT LIABILITIES:
5.1 As required by section 22 of Micro, Small & Medium Enterprises Development Act, 2006, as on 31-03-
2015 Principal amount remaining unpaid to MSME is ` 0.16 crore (` 0.19 crore) and interest due thereon
is NIL (NIL).
B) PROVISIONS:
5.2 The year end provision towards Gratuity, Leave Encashment, and Gross Personal Accident Insurance,
LTA / LTC, Life Cover Scheme, Settlement Allowances, Fatal Accident Benefits and Medical Benefits of
retired employees has been made on actuarial valuation as per the certificate given by the Actuary.
Actuarial valuation of gratuity liability as per actuary certificate is given as under:
ACTUARIAL VALUATION OF GRATUITY LIABILITY AS AT 31.03.2015
CERTIFCATES AS PER ACCOUNTING STANDARD 15(Revised 2005)
Table 1: DISCLOSURE ITEM 120(c) Table Showing Changes in Present Value Of Obligations.
As at 31/03/2015
Present Value of Obligation at Beginning of year 25334144509
Acquisition Adjustment 0
Interest Cost 1815831560
Past Service Cost 0
Current Service Cost 1282602212
Curtailment cost 0
Settlement Cost 0
Benefits Paid 5272500000
Actuarial gain/loss on Obligations 2937260348
Present Value of Obligation at end of Year 26097338630
EASTERN COALFIELDS LIMITED
167
Table 2 : DISCLOSURE ITEM 120(e) : Table Showing Changes in Fair Value of PlanAssets
As at 31/03/2015
Fair Value of Plan Asset at Beginning of year 101805000000Acquisition Adjustment 0Expected Return on Plan Asset 814440000Contributions 17650200000Benefits Paid 5272500000Actuarial gain/loss on Plan Asset 159160000Fair Value of Plan Asset at End of year 23531800000
Present Value of Obligation at end Year 26097338630Fair Value of Plan Asset at end Year 23531800000Funded Status -2565538630Unrecognized actuarial gain/loss at end of the year 0Net Asset(Liability) Recognized in Balance Sheet −2565538630
Table 4:- DISCLOSURE ITEM 120(g) : Table showing Expense Recognized in Statement of
Profit/Loss
As at 31/03/2015
Current Service Cost 1282602212Past Service Cost 0Interest Cost 1815831560Expected Return on Plan Asset 814440000Curtailment cost 0Settlement Cost 0Actuarial gain/lossrecognized in the year 2778100349Expense Recognized in Statementof Profit/Loss 5062094121
