Directors Report 2011 12 WCL

WESTERN COALFIELDS LIMITED

( A Miniratna Company)
ANNUAL REPORT AND ACCOUNTS 2011-2012
Coal Estate, Civil Lines, Nagpur - 440 001
ANNUAL REPORT 2011-12

( A Miniratna Company)
CONTENTS
Page No. 1 2 3 4 5 6 7 8 Board of Directors Bankers & Auditors Notice Performance at a glance Chairman's Statement Awards and Accolades Directors Report Addendum to the Directors Report : 70 a) Comments of the Comptroller and Auditor General of India under section 619(4) of the Companies Act, 1956 Auditors Report and Managements Reply 87 88 89 90 106 113 119 1 3 4 6 9 14 21
b) 9 10 11 12 13 14 15 16
Balance Sheet as at 31st March, 2011 Profit & Loss Account for the year ended 31st March, 2011 Cash flow statement for the year 2010-11 Notes to Balance Sheet ( Notes 1 to 19 ) Schedules (20 to 32) to Profit & Loss Account Significant Accounting Policies - Note 33 Additional Notes on Accounts - Note 34 Statement of Audited Results for the Quarter and Year Ended 31.03.2012
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( A Subsidiary of Coal India Limited )
Board of Directors
( As on 25th May, 2012 ) Chairman-cum-Managing Director Shri D.C. Garg Functional Directors Shri B.K. Saxena Shri Om Prakash Shri Sushil Behl Shri Rupak Dayal Government Directors (Part time) Shri A.K. Bhalla Shri R. Mohan Das Non-official Directors (Part time) Dr. Ahindra Chakrabarti Ms. Lalitha Kumar Shri Vinod Somani Shri Arun Balakrishnan Dr. D. Chamdrashekharam Permanent Invitee(s) Shri Z.A. Siddiqui Company Secretary Shri Rameher Chief Operations Manager, Central Railway, Mumbai. Professor, IMI, New Delhi Former IAS Officer, New Delhi CA, New Delhi Former CMD, HPCL Professor, IIT, Mumbai Joint Secretary, Ministry of Coal. Director (Personnel & IR), Coal India Limited, Kolkata. Technical Technical Finance Personeel

( A Subsidiary of Coal India Limited )
Board of Directors
( During the year 2011-12 )
Chairman-cum-Managing Director Shri D.C. Garg Functional Directors Shri O.P. Miglani Shri B.K. Saxena Shri Om Prakash Shri Sushil Behl Shri Rupak Dayal Personnel (upto 01.05.2011) Technical ( w.e.f. 07.03.2008 ) Technical ( w.e.f. 01.06.2008 ) Finance ( w.e.f. 01.11.2009 ) Personnel ( w.e.f. 28.09.2011 ) From 01.05.2007
Government Directors (Part time) Shri A.K. Bhalla Joint Secretary, Ministry of Coal, New Delhi ( w.e.f. 06.07.2010 ) Shri R. Mohan Das Director (Personnel & IR),Coal India Limited, Kolkata ( w.e.f. 28.06.2007 ) Non-official Directors (Part time) Dr. Ahindra Chakrabarti Ms. Lalitha Kumar Shri Vinod Somani Shri Arun Balakrishnan Dr. D. Chandrashekharam Permanent Invitee(s) Shri S.K. Mishra Secretary, Mineral Resources Department, Govt. of Madhya Pradesh, Bhopal ( w.e.f. 25.09.2008 ) Shri Satya Prakash Chief Operations Manager, Central Railway, Mumbai( upto 28.11.2011 ) Shri Z.A. Siddiqui Chief Operations Manager, Central Railway, Mumbai( w.e.f. 06.01.2012 ) Company Secretary Shri Rameher _ ( w.e.f. 01.02.2008 )
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w.e.f. 27.04.2010 w.e.f. 24.02.2011 w.e.f. 24.02.2011 w.e.f. 24.02.2011 w.e.f. 24.02.2011
BANKERS
STATE BANK OF INDIA STATE BANK OF HYDERABAD CENTRAL BANK OF INDIA UCO BANK BANK OF MAHARASHTRA UNION BANK OF INDIA ORIENTAL BANK OF COMMERCE ALLAHABAD BANK INDIAN BANK PUNJAB NATIONAL BANK BANK OF INDIA HDFC BANK IDBI BANK DENA BANK
STATUTORY AUDITORS M/S C . R . SAGDEO & CO CHARTERED ACCOUNTANTS NAGPUR
BRANCH AUDITORS M/S JODH JOSHI & CO CHARTERED ACCOUNTANTS NAGPUR M/S A . S . DANI & CO CHARTERED ACCOUNTANTS NAGPUR M/S CHANDAK , KHANZODE & SHENWAI CHARTERED ACCOUNTANTS NAGPUR
REGISTERED OFFICE COAL ESTATE , CIVIL LINES , NAGPUR 440001

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Ref : WCL/SECY/BD/AGM-37/2012/782 NOTICE THIRTY SEVENTH ANNUAL GENERAL MEETING Notice is hereby given that the Thirty Seventh Annual General Meeting of Western Coalfields Limited will be held at 1.00 P.M. on Friday, the 25th May, 2012 at the Registered Office of the Company at Coal Estate, Civil Lines, Nagpur to transact the following business : ORDINARY BUSINESS:
1. To receive, consider and adopt the Audited Balance Sheet as on 31st March, 2012 and Profit & Loss Account for the year ended 31st March, 2012 together with the Directors Report and Reports of the Statutory Auditors & Comptroller and Auditor General of India thereon. To declare dividend. To appoint a Director in place of Shri A.K. Bhalla, who retires in terms of Article 33(e)(iii) of the Articles of Association of the Company and is eligible for re-appointment. To appoint a Director in place of Shri R. Mohan Das, who retires in terms of Article 33 (e) (iii) of the Articles of Association of the Company and is eligible for re-appointment.
Date : 21st May, 2012
2. 3. 4.
By order of Board of Directors FOR WESTERN COALFIELDS LIMITED Sd/( Rameher ) Sr. Manager (Finance)/ Company Secretary Registered Office : Coal Estate, Civil Lines, NAGPUR - 440 001
NOTE : 1. A member entitled to attend and vote at the meeting is also entitled to appoint a proxy or proxies to attend and vote instead of himself/herself and such proxy need not be a member of the Company. In order to be effective, the Proxy form duly completed should be deposited at the registered office of the Company not less than forty-eight hours before the scheduled time of the Annual General Meeting. A proxy form is enclosed. Contd..... 4
2.
Members are also requested to accord their consent for convening the meeting at a shorter Notice under section 171(2)(i) of the Companies Act, 1956.
To, 1. Members/Shareholders, Western Coalfields Limited Statutory Auditors, Western Coalfields Limited Chairman, Audit Committee, Western Coalfields Limited
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Copy to All Directors, Western Coalfields Limited, Nagpur Company Secretary, Coal India Limited, Kolkata General Manager (Finance) I/C-I WCL, Nagpur
Chairmans Statement
Friends, I feel great pleasure in reporting another strong year for Western Coalfields Limited, at the 37th Annual General Meeting of the company. We reported strong top line, that is, revenues of Rs 8357.48 crores along with sturdy bottom line, that is, pre tax profit of Rs 440.50 crores during the financial year 2011-12. I am delighted to share that we are extremely well positioned among the coal producers in the country on the strength of our strong balance sheet and sturdy performance year after year by surmounting the challenges posed by adverse geo mining parameters, paucity of reserves amenable to mega projects, constraints in land acquisition, the highest stripping ratio among all the subsidiaries of CIL and strata control problems at underground mines by adverse geo tectonic parameters. Vision It is well deliberated fact, that to sustain the high growth of economy, India needs to augment power generation capacity, as the country faces 12% shortage of peak demand in power. It is obvious that the coal producers will have to augment coal availability to meet the high demand for coal, as it is the prime energy mineral. It is a matter of record that exponential rise in Coal demand has resulted in negative coal balance (The difference between aggregate demand and availability of coal) at Western Coalfields Limited to the tune of 34.72 million tonnes during the current year itself). Keeping the reality in the mind, WCL has set its vision to emerge as a key player in the primary energy sector committed to provide energy security to the country by attaining environmentally and socially sustainable growth through best practices from mine to market. Performance 2011-12 With the concerted efforts by the team of WCL, we could achieve 43.11 million tonnes of Coal Production as against the last years 43.65 million tonnes and RE Target of 43.80 million tonnes. Notably the coal production of 1.8 million tonnes could not materialize from Umrer OC due to its prolonged discontinuance since Sept10, due to bench failure leading to inrush of Amb river into the mine. The mine has been started and it will contribute coal production during FY 2012-13. The Coal off-take of 41.967 million tonnes during the financial year, has been constrained mainly on account of non lifting of 4.036 million tonnes of coal over contracted quantity by MAHAGENCO through Road cum Rail mode since Aug 2011, coupled with 1.072 million tonnes less drawal of coal through captive modes (Rope, MGR & Belt) by CSTPS, MAHAGENCO. Of course, non availability of 1.8 million tonnes of coal from Umrer OC on account of its discontinuance had certainly affected the off-take. Factoring these shortfalls on the actual production of FY 2011-12, it may be appreciated that the company could have exceeded its target of 45.50 MT of coal production and Coal off-take.
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WCL produces about 88% of Coal through departmental means, whereas the system capacity utilization in coal production has been 107.02% (System capacity 40.28 MT as assessed by CMPDI for FY 2011-12). The system capacity utilization during the year with respect to OB removal has been 100.55% (122.49 million cubic metres achieved as against the system capacity of 121.81 million cubic metres assessed by CMPDI for FY 2011-12). This achievement is certainly commendable for the company which operates in highest Stripping Ratio. The company has achieved an overall productivity of 2.70 tonnes per man shift, which is 106.3% of the targeted 2.54 tonnes per man shift, thus registering a growth of 1.88% over the last years 2.65 tonnes per man shift. Sales Realisation from customers during 2011-12 has been the highest ever approximately Rs 8620.70 crores, showing a growth of 17.86% against that of Rs 7314.00 crores during last fiscal. The total outstanding dues with customers brought down from Rs 147.37 crores as on 01/04/ 11 to Rs 133.05 crores as on 01/04/12, that is, reduction in outstanding dues by 9.72%. Financial Performance During the year, WCL achieved the highest turnover of Rs 8357.48 crores with a pretax profit of Rs 440.50 crores, which is of course less than the last years corresponding figure of Rs 1067.98 crores. I wish to add here that, we had to provide for Rs 854.30 crores on account wage increase and actuarial liability arising out of the National Coal Wage Agreement IX effective from 1st July11. Adding the figures, we may appreciate that our actual profit had been Rs 1294.80 crores. Net worth of the company has risen from a level of Rs 3236.59 crores last year to Rs 3315.22 crores on 31-03-12. Your Directors have recommended a dividend payment of Rs 184.04crores @ 61.95% on the Paid up Capital of the company i.e. Rs 297.10 crores. I feel pleasure to share with you that our assessment against MoU parameters 2011-12 by Department of Public Enterprises is expected to be Excellent (Provisional) on the strength of our overall performance of the company. Creation of Assets Company has Invested Rs 275.72 crores during FY 2011-12 on development of new mines and infrastructure along with replacement of old assests, entirely from internal resources. HEMM worth Rs 161.85 crores were purchased during the year, whereas the equipments for underground mining costing Rs 23.05 crores were added in the fleet. Planning Preparedness Out of 29 projects of XIth plan with a sanctioned capacity of 38.75 MTA and capital of Rs 5357.52 cr identified to sustain the production, Project Reports for all the projects have been formulated and 6 projects approved by WCL Board are at different stages of implementation, while 21 projects have been approved subject to finalization of cost plus agreements with prospective consumer, accorded 1st stage approval and 2 projects are being re-casted.
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At present, the company is implementing 33 ongoing projects with a sanctioned capacity of 32.081 MTA and Capital of Rs 1396.33 crores. Out of 33 projects, 22 are in operation and rest, under various stages of implementation. Contribution of ongoing projects in Coal production was 16.7123 million tonnes during FY 2011-12 as compared to 13.2751 million tonnes during FY 2010-11. Cost Plus Projects Total 32 projects have been approved till FY 2011-12 on Cost Plus Basis, on negotiated price to yield requisite IRR%, out of which Coal Supply Agreements for 7 projects have already been signed. 6 projects, namely Sarda UG, Hurradol UG, Dhankasa UG, Dhuptala UG, New Majri UG to OC and Dinesh OC have been offered to MAHAGENCO and MPPGCL on cost plus basis for which In Principle consent has been received and Coal Supply Agreements are under finalization. As per guidelines from Ministry of Coal, 13 numbers of financially unviable projects were placed on the website of the company and applications were invited from LoA holders/ FSA holders/ Linkage holders both from Cost Plus category and notified price category. Based on the applications allocation of coal from three cost plus mines namely Urdhan OC, Bellora Naigaon OC and Ukni Deep OC has been approved for M/S MAHAGENCO and M/S Wardha Power Limited on cost plus basis. At the same time, it is a point to ponder that in coming days, with implementation of liberalized R&R policy the project financing will be constrained and almost all projects may not yield 12% IRR at 85% capacity utilization in view of already high stripping ratio. In that scenario sustainability of production will be an issue because opening of new projects may have to wait for fructification of cost plus agreement, and at the same time it may not be feasible to implement project specific coal pricing regime. Energy Efficiency initiatives Accepting the fact that there is scope to save at least 20 percent of energy by rationalization of operations, WCL has undertaken various initiatives, which have resulted in net saving of 46.70 million units of power during 2011-12 as compared to last year. Specific Energy Consumption at 4.08 KWH/cum is 10.92% less than the last years 4.58KWH/cum. Material Management e- Procurement has now become a regular feature in procurement of materials. As per advice of Ministry of Commerce, Department of Expenditure, all the tenders are uploaded in CPP portal from January 2012. WCL has been appreciated for keeping the lowest inventory amongst all the subsidiaries of CIL i.e. 1.03 months during the year 2011-12. Company has realized Rs 10.31 crores by means of scrap disposal during the year up by 38.76% over the last years Rs 7.43 crores. Environment Management It is a well accepted fact that Coal mining is environmentally sensitive activity and mitigation of its adverse impacts bears the prime concern in the mind of Coal mining companies in view of environmental sustenance.
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Restoration of degraded land through afforestation and green belt development is another area where WCL has unwavering commitment and achievement. Till date, WCL has planted 178.88 lakh trees covering an area of 6469 ha. in its command area in states of Maharashtra & Madhya Pradesh. During 2011-12, a total of 2.26 lakh saplings were planted in the mining and adjoining areas through expert forest agencies namely FDCM and MPRVVN and also by distribution of saplings to employees and villagers. The progress of afforestation in the command areas of WCL are monitored regularly thro satellite imagery which indicates that there is an increase in afforestation/ plantation in mining projects. The 10 major OCPs which are being monitored every year through Satellite Imagery Survey have proved this fact beyond doubt. After analyzing the Satellite data of the year 2010 vs 2011, it has transpired that the plantation works, carried out on back filled area, external OB Dumps as well as on plain land in all these mines of WCL, has increased from 25.35 sq.km to 26.82 sq. km. (an increase 1.47 sq km). In recent past, statutory stipulations such as mandatory public hearing even for expansion projects, extending moratorium on grant of EC under CEPI in Chandrapur industrial cluster, mandatory Stage-I forest clearance to get EC, implementation of Mechanically closed trucks for coal transportation imposed by Maharashtra State Pollution Control Board etc. are some of the nagging problems that are being faced by WCL. I have no doubt that WCL team will rise to the occasion and meet these challenges in coming days, by effective management of natural resources so that the CIL/WCLs policy of sustainable development i.e. achieving the coal production target with minimal degradation of environment, is reached. Acquisition of Land Your company has made a remarkable achievement in acquisition of land for mining and allied activities. It has acquired all time high 2240.194 Ha land which is 9.24% growth over last year. Similarly, we have taken possession of 332.387 Ha of Land which is 1.64% growth over last year. Moreover with enhancement of Monetary compensation in lieu of employment to Rs 500000/- per acre and liberalizing the land compensation rates through Revised R&R Policy of CIL, there has been a positive shift in the attitude of PAPs and coupled with our Confidence Building Measures by CSR initiatives they have been appreciating and are inclined to join us by giving their land. It is a perfect Win- Win situation. Corporate Social Responsibility The CSR Policy of the company broadly covers education, water supply, health care, environment management, infrastructure support, employment generation, encouraging sports etc. The CSR initiatives are village specific, need based and in sync with local development to ensure that they are socially acceptable to local people. WCL has provided @Rs 5/- per tonnes as CSR budget. It has spent Rs 7.65 crore during FY 2011-12 under CSR , up by 8.82% over last years Rs 7.03 crores. During 2011-12, WCL has conducted 171 medical camps in and around its command area, organized 25 coaching camps for promotion of sports, organized 12 de-addiction camps to improve socio economic fabric and commissioned 67 tube wells under CSR initiatives apart from providing 8 classrooms in different schools and providing 2 ambulances for the programme Medicare at your Door Step.
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Safety Human resources are the biggest asset for us hence their safety is of paramount importance to us. Thrust is being given to enhance safety awareness at the grass root level by inculcating participative management at the unit level by way of safety committee meetings and special safety awareness drive on various subjects like green roof support, safe practices in haulage, belt conveyors, face equipments, explosives and blasting etc. Besides, tripartite safety committee meetings at area level with active participation of DGMS officials are also being held. Training and retraining of our workforce to follow safe practices at the work place has also been our thrust are in FY 2011-12. During the calendar year 2011, there had been a reduction in fatalities from 14 during the year 2010 to 10, along with corresponding reduction of serious injuries from 46 to 37. Corporate Governance WCL has complied with conditions (except a few which are under progress) of Corporate Governance as stipulated in the Guidelines on Corporate Governance issued by the Department of Public Enterprises, Government of India. As required under the said guidelines, a separate section on corporate governance has been added to the Directors Report and a certificate regarding compliance of conditions of Corporate Governance obtained from the Practicing company Last but not the Least Our team which has performed consistently in past, is geared up to leverage its proven strengths and the capability to deliver. We are committed to achieve our growth while ensuring highest priority to the corporate governance, environment and corporate social responsibility. We firmly believe that we will continue to maximize the returns of WCLs key stake holders- its shareholders, customers, employees and local populace. I call upon all of WCL family to Arise, Aspire, Perspire and Move towards the goal of 45.69 million tonnes of coal production during FY 2012-13. Thus we will be contributing to the larger goal that is progress of the nation. With Best Wishes, (D. C. Garg) Chairman cum MD
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WESTERN COALFIELDS LIMITED BALANCE SHEET AS AT 31st MARCH

(Rs. In Crores) PARTICULARS SOURCE OF FUND SHARE CAPITAL RESERVES & SURPLUS PROFIT & LOSS A/C LOAN FUND DEFERRED TAX LIABILITIES LONG TERM LIABILITIES & PROVISIONS TOTAL APPLICATION FIXED ASSETS : Gross Block Less: Depreciation Less: Impairment of Assets Net Block Capital Work in Progress Discarded/Surveyed off Assets Investments Deferred Tax Assets Long Term Loans & Advances CURRENT ASSETS,LOANS & ADVANCES : Inventories Sundry Debtors Cash & Bank Balance Loans & Advances Current Investment Other Current Assets SUB TOTAL LESS:CURRENT LIABILITIES & PROVISIONS NET CURRENT ASSETS MISC.EXPENDITURE TOTAL 159.76 69.77 71.57 0.00 189.85 0.00 700.01 1223.94 1491.22 1795.45 2255.12 3276.12 4333.28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 106.19 471.93 291.67 671.87 151.59 319.59 340.22 210.15 389.95 287.77 235.06 363.97 238.14 301.43 126.02 288.46 191.52 294.17 109.18 437.09 25.20 704.54 32.09 351.20 570.60 13.97 860.70 32.09 432.06 154.79 181.06 4.64 182.96 6.19 320.90 249.70 3145.82 3218.69 3365.83 3480.99 3668.24 3782.45 3986.99 4137.27 4294.58 4490.39 1688.52 1814.25 1956.82 2072.22 2251.34 2398.13 2539.15 2651.49 2769.51 2884.24 71.37 183.06 8.02 320.90 177.42 81.93 204.41 10.49 320.90 151.07 80.63 174.85 11.29 288.81 140.25 85.75 187.65 11.36 272.77 315.83 89.39 217.31 13.23 240.68 345.33 93.83 252.63 16.09 192.54 340.98 100.70 274.53 17.31 128.36 350.13 58.21 104.01 269.50 19.50 96.27 455.72 61.99 1457.30 1404.44 1337.64 1326.84 1336.27 1298.57 1358.45 1391.95 1424.37 1502.14 2027.32 2235.76 2216.89 2713.72 3175.41 3577.40 3970.45 4449.31 5529.03 6738.40 297.10 437.99 742.45 549.78 297.10 522.50 363.80 125.98 0.00 297.10 604.92 148.02 105.07 0.00 297.10 297.10 297.10 297.10 297.10 297.10 297.10 788.67 1049.59 1343.88 1680.34 2089.39 135.49 63.10 0.00 122.97 32.65 0.00 112.98 29.18 0.00 133.60 15.22 0.28 109.52 20.48 984.68 1052.52 102.56 0.00 101.97 0.00 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
926.38 1061.78 1429.36 1673.10 1794.26 1843.91 1932.82 1988.80 2013.77
0.00 2155.89 3273.04
761.60 1513.75 1296.62 2262.20 3033.11 3919.96 4063.78 5503.40
988.67 1236.50 1518.80 1983.95 2490.98 2868.96 1784.73
1541.66 1800.07 2598.20 3555.38 3882.68 5180.63 6382.05 6108.04 5613.90 7412.82 1381.90 1728.50 2408.35 2855.37 2658.74 3689.41 4586.60 3852.92 2337.78 3079.54
2027.32 2235.76 2216.89 2713.72 3175.41 3577.40 3970.45 4449.31 5529.03 6738.40
Note : The financial statements for the current year are prepared on the basis of Revised Schedule VI of the Companies Act, 1956, as notified by Ministry of Corporate Afairs. Accordingly, previsous year (2010-11) figures are re-grouped in order to make comparable with current year figures. Figures prior to 2010-11 are as per pre-revised schedule VI. setting one condensed
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WESTERN COALFIELDS LIMITED CAPITAL EMPLOYED, NET WORTH AND RATIOS

(Rs. In Crores) PARTICULARS CAPITAL EMPLOYED NET WORTH PAID UP CAPITAL NET WORTH PER RUPEE OF PAID UP CAPITAL(RUPEE) LOAN FROM CIL AND OTHERS DEBT/EQUITY RATIO NET PROFIT(Rs.Cr) (BEFORE PPA, & TAX) NET PROFIT FOR THE YEAR AS % TO CAPITAL EMPLOYED NET PROFIT(Rs.Cr) (BEFORE TAX BUT AFTER PPA.) NET PROFIT AFTER PPA AS % TO CAPITAL EMPLOYED DEBTORS AS % TO GROSS SALES INVENTORY OF STORES & SPARES IN NO.OF MONTHS CONSUMPTION. VALUE ADDED (Rs.Cr.) MANPOWER VALUE ADDED /EMPLOYEE (RS. 000) 335.45 364.54 447.62 517.30 520.50 590.60 708.38 766.86 829.21 996.45 2432.06 2570.54 3085.80 3485.32 3414.45 3789.27 4426.82 4667.86 4895.92 5678.68 26.06 1.33 21.40 1.56 15.74 1.25 8.44 1.04 8.01 1.05 5.73 1.09 5.59 1.05 3.90 1.06 2.08 1.10 1.59 1.09 26.10 48.69 61.12 71.33 41.16 32.68 16.36 25.53 22.06 7.57 472.53 743.60 935.30 1446.96 1054.44 930.22 516.12 931.03 1067.97 440.50 26.44 48.56 59.93 74.04 43.13 32.33 16.21 25.82 25.87 7.42 4.17 549.77 0.44:1 478.63 5.26 363.80 0.23:1 741.67 6.02 148.02 0.08:1 7.76 135.49 0.06:1 8.92 122.97 0.05:1 9.47 112.98 0.04:1 920.07 9.81 133.60 0.05:1 511.09 10.43 109.52 0.04:1 10.89 102.56 0.03:1 11.16 101.97 0.03:1 431.73 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
1810.16 1527.36 1530.33 2028.44 2561.71 2846.06 3153.90 3647.08 4686.82 5819.36 1239.67 1562.62 1788.04 2304.21 2650.31 2814.14 2914.11 3099.86 3236.56 3315.22 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10 297.10
917.09 1501.93 1104.90
941.84 1060.14
* NET PROFIT BEFORE TAX & AFTER PPA INCLUDES EARLIER YEARS PROVISION WRITTEN BACK.
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WESTERN COALFIELDS LIMITED PROFIT & LOSS ACCOUNT (EXCLUDING CONTRA ITEMS)
(Rs. In Crores)
PARTICULARS SALES (Net of Statutory Levies) OTHER INCOME ACCRETION/ DECRETION IN STOCK 3459.96 3823.69 4291.25 4795.05 4853.16 5362.73 6160.73 6410.16 6588.65 7559.66 EMPLOYEES REMUNERATION & BENEFITS CONSUMPTION OF STORES & SPARES POWER & FUEL REPAIRS (PURCHASED) CONTRACTUAL EXPENSES SOCIAL OVERHEAD DEPRECIATION INTEREST PROVISIONS OTHER EXP : OBR ADJUSTMENT OTHERS -16.02 138.20 15.26 153.79 -7.60 127.56 35.16 187.00 158.57 223.66 262.77 208.32 280.37 241.65 305.61 346.63 314.56 458.95 249.35 237.00 154.34 173.31 46.72 255.94 180.69 182.92 25.22 57.93 189.83 170.91 8.29 -45.25 211.78 164.50 4.31 -133.00 223.81 178.28 5.55 -19.07 228.14 185.65 4.33 45.68 239.99 176.44 3.97 -25.01 269.17 171.41 4.85 -17.57 223.71 253.80 188.16 195.65 3.30 3.20 110.25 220.62 231.57 244.85 331.40 383.14 396.10 491.84 536.10 570.98 467.51 501.01 184.15 82.92 189.21 109.14 186.41 98.32 184.68 110.70 221.56 111.52 225.63 117.40 229.09 126.62 242.85 122.86 259.20 281.94 68.46 64.09 530.26 564.80 667.85 724.64 750.69 762.88 872.72 856.32 863.43 920.26 1199.94 1358.21 1646.44 1420.21 1497.59 1910.02 2967.70 2595.21 2780.58 3991.41 270.61 -10.41 440.08 23.87 287.38 62.52 328.83 83.87 387.13 73.07 507.63 -54.08 558.94 -34.22 560.35 13.18 464.78 680.69 129.60 128.96 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 3199.76 3359.74 3941.35 4382.35 4392.96 4909.18 5636.01 5836.63 5994.27 6750.01
2981.33 3082.02 3374.16 3293.12 3748.26 4442.66 5649.64 5468.32 5528.51 7127.93 PROFIT/LOSS FOR THE YEAR PRIOR PERIOD ADJUSTMENTS PROFIT AFTER PRIOR PERIOD ADJUSTEMENT PROVISION FOR TAXATION PROVISION FOR DEFERED TAX (ASSETS/LIABILITIES) PROFIT AFTER TAX NOTE : 279.78 461.65 600.19 990.54 682.38 611.78 335.43 645.61 538.32 306.72 250.20 -57.45 250.88 31.07 283.75 51.36 472.03 -15.61 391.70 487.96 224.15 -43.46 275.81 9.61 559.28 239.37 -29.62 -105.59 -19.64 -169.52 478.63 -6.10 472.53 741.67 1.93 743.60 917.09 1501.93 1104.90 18.21 -54.97 -50.46 935.30 1446.96 1054.44 920.07 10.15 930.22 511.09 5.03 516.12 941.84 1060.14 431.73 -10.81 7.84 8.77 931.03 1067.98 440.50
1. FIGURES IN THIS STATEMENT ARE REARRANGED FROM THE PRINTED ACCOUNTS EXCLUDING CONTRA ITEMS. 2. The financial statements for the current year are prepared on the basis of Revised Schedule VI of the Companies Act, 1956, as notified by Ministry of Corporate Afairs. Accordingly,previsous year (2010-11) figures are re-grouped in order to make comparable with current year figures. Figures prior to 2010-11 are as per pre-revised schedule VI.
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MAP
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DIRECTORS REPORT
To The Members/Shareholders, Western Coalfields Limited. Your Directors have pleasure in presenting the 37th Annual Report of Western Coalfields Limited and Audited Accounts for the year ended 31st March, 2012 together with the report of the Statutory Auditors and report and review of the Comptroller and Auditor General of India thereon. 2. LOCATION OF UNITS : The mines of your Company are located in Maharashtra and South-West Madhya Pradesh. For Effective administrative control and operations, the mines have been grouped in 10 (Ten) Areas as follows :
Area District State Underground Nagpur and Umrer Nagpur Maharashtra 10 12 Chandrapur, Ballarpur, Chandrapur Maharashtra Majri, Wani and Wani North & Yavatmal 13 Pench and Kanhan Chhindwara Madhya Pradesh 7 Pathakhera Betul Madhya Pradesh Total Numbers of Mines- WCL 82 42 Mines as on 1.4.2012 Opencast Mixed 5 26 7 2 -
Overburden removal during the year 2011-12 was 122.488 million cubic meters against the AAP target of 127.000 million cubic meters which is 4.512 million cubic meters less than the target and 6.664 million cubic meters more than last year actual progressive of 115.824 cubic meters for the same period. Notably, the Financial Year 2011-12 had been a year full of challenges, whereas the concerted efforts by the team of WCL could lead to achievement of plus 94% performance. Non-achievement of coal and OB target has been mainly on account of non-revival of Umrer OC, delay in physical possession of land in opencast mines, adverse geo-mining conditions prevailing in underground mines, incidences of fire in underground districts and closure of PKII Under ground mine due to exhaustion of reserves. Coal Off-take during 2011-12 was 41.967 million tonnes which is 3.533 million tonnes less than the targetted 45.500 million tonnes that is 92.2% achievement and 0.593 million tonnes less than last years actual 42.560 million tonnes due to abrupt stoppage of despatch of coal by Maharashtra Power Generation Co. Limited (MAHAGENCO) through Road/Rail mode w.e.f. 16/08/2011 and non lifting of coal during monsoon by Himachal Pradesh Power Generation Co. Limited (HPPGCL) and Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd.(UPRVUNL). 3.1 Performance of Production (Coal and Washed Coal), Productivity, Coal Sales and Off-take against Annual Action Plan (AAP) targets and as compared to last years is given in the following table :
21
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3. PERFORMANCE : During the year 2011-12 your Company has achieved coal production of 43.110 Million Tonnes against the AAP target of 45.500 million tonnes which is 2.390 Million tonnes less than the AAP target and 0.544 million tonnes less than last year actual progressive of 43.654 million tonnes for the same period. Productivity of the Company has gone up upto 2.70 tonnes during the year 2011-12 which is more than the target of 2.54 tonnes and also more than actual progressive last year of 2.65 tonnes for the same period.

SL NO 2011-12 PARAMETERS Target AAP Actual % % 2011-12 Achieve- Actual Growth ment Over overTarget last year 94.7 43.654 -1.2
i)
Coal Production (million tonnes)
45.500 43.110
ii) Overall Productivity (OMS) (in tonnes) iii) Total Off-take (million tonnes)
2.54
2.70
106.3
2.65
1.9
Apropos supply of Steel Plants, the production of Coking Coal from Tandsi UG, which is major producer of Coking Coal in WCL, is less as the continuous Miner is working in geologically distrubed zone where extensive support is required.
45.500 41.967
92.2
42.560
-1.4
3.2 Coal Production and OB Removal from Opencast Mines :

Sl. PARAMETERS no. i Coal production ( Million Tonnes) Overburden Removal ( Mill. Cub. Mtrs.) 2010-11 % Growth 2011-12 Actual over last Target Actual %Achieyear vement AAP overTarget 36.200 34.720 95.9 -0.7 34.950
iv) Despatches (Sales) 45.399 41.932 (million tonnes) v) Washed Coal Production (million tonnes) vi) Despatch to Steel Plants (million tonnes) 0.2700 0.1365
92.4
42.536
-1.4
50.6
0.1913
-28.6
0.2700 0.1361
50.4
0.1930
-29.5
ii
127.000 122.488
96.4
115.824
5.8
Shovel Dumper A Shovel-Dumper in operation in one of the opencast Mine of WCL.
22
3.3 Mechanised Underground Coal Production

The Mechanised Coal Production from Underground mines during the year 2011-12 was 8.058 million tonnes which is 0.170 million tonnes less than last years actual 8.228 million tonnes. Production from Continuous Miner Technology, which is in operation at Tandsi and Kumberkhani Mines, was 0.150 million tonnes which is 0.057 million tonnes less than last years actual 0.207 million tonnes. Shifting of Continuous Miner to alternative dip side section due to encountering of un-foreseen fault in level section, adverse geo-mining conditions at Tandsi UG and shifting of Continuous Miner to next panel at Kumbharkhani UG affected the production of Continuous Miners. 3.4 Coal Stock : Coal Stock at the end of fiscal 2011-12 increased by 1.143 million tonnes and stood
at 5.093 million tonnes as compared to last years 3.950 million tonnes, which has accumulated due to non-lifting of 4.036 M.T. coal by Maharashtra State Power Generation Co. Limited by road/rail mode w.e.f.16-8-2011. 4. SAFETY :
4.1 During the calender year 2011, there had been a reduction in fatalities from 14 to 10 and a reduction of serious injuries from 46 to 37 vis a vis 2010. Skilled human resource are the biggest asset for our company, hence their safety is of paramount importance to us. Thrust is being given in our company to increase safety awareness at the grass-root level by inculcating participative management at the unit level by way of safety committee meetings being
Load Haul Dump - A Coal Mining Machine in operation in one of the underground mine WCL
23
conducted every month. Besides, tripartite safety committee meetings at Area level with active participation of DGMS officials are also being held. Training and re-training of our workforce to follow safe practices at the work place has also been our thrust area in 2011-12. 4.2 S t e p s T a k e n d u r i n g 2 0 1 1 - 1 2 to improve safety and reduce accidents : 4.2.1 (a) A Special safety awareness drive on Green roof side and support, safe practices in haulage, belt conveyor, SDL/ LHD operations and face equipment was conducted in all underground mines of WCL from 25.04.2011 to 07.05.2011. A Special Safety Awareness Drive on Ventilation, Dust Suppression, Emergency Organisation in association with Rescue Department was observed in UG mines from 25.07.2011 to 06.08.2011 A Special Safety Awareness Drive on Maintenance of Statutory Records & Plans was conducted in UG and OC Mines from 19.09.2011 to 30.09.2011. A special safety drive on contractors workmen & contractual works in OC mines was carried out from 03.11.2011 to 12.11.2011 VTC annual inspection in association with HRD department was organised from16.01.2012 to 29.01.2012.
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(f)
Annual Safety Fortnight was conducted in all the mines of WCL from 30.01.2012 to11.02.2012 Special stress has been given on green roof support & qualitative face support by roof bolting. Resin capsules has also been introduced in many underground mines specially in watery strata. Pit top safety talks are regularly given in all the mines and the same are being monitored during ISO inspections. Pit safety committees of all mines have been re-activated and are being attended by Area level and Hq. level officers. The implementation of the recommendations of these committees are implemented and monitored regularly. Back shift inspections by senior officers of mine and area have been intensified. Officers who have been trained by SIMTARS, Australia were engaged for imparting training and upgrading the knowledge of executives and supervisors in prevention of fire and evaluation of risk management. Area level committees have been constituted to conduct safety audit of the mines to evaluate the safety status of the mines. Meetings with Area Safety Officers are conducted to evaluate the implementation status of various safety measures in the mines. The mine inspection reports of Workmen Inspectors (in form U)
4.2.2
4.2.3
4.2.4
(b)
4.2.5
4.2.6
(c)
4.2.7
(d)
4.2.8
(e)
and other officials are regularly monitored and rectification of deficiencies pointed out are ensured. High powered multi-disciplinary task force consisting of Steering Committee Members, CGM(S&C) and other senior officials of Hq. randomly visit mines to evaluate safety standards. 4.2.10 A high level committee has inspected all the mines of WCL to ascertain the preparedness for monsoon against water danger. 4.2.9 4.3 Statistics of Fatal Accidents :
Particulars No. of fatal accidents Persons involved Rate per million tonne output Rate per 3 lakhs manshift 2011 (Calendar year) 9 10 0.23 0.19 2010 (Calendar year) 11 14 0.32 0.26
institutes during 11-12. a) Scientific Study of the OB Dump Stability at Gondegoan OC being done by BIT Meshra; b) Scientific Study of the OB Dump Stability of Old OB dumps at Ukni OC being done by BIT Meshra; c) Scientific Study for Supervision of Mining Operations of Western Quarry of Umrer OC, Umrer Area being done by BIT Meshra; d)Scientific Study to suggest suitable method for extraction/liquidation of coal in Kumbharkhani UG of Wani North Area being done by CIMFR, Dhanbad; e) Scientific study to asses the impact of depillaring at Saoner Mine 1, Nagpur Area being done by NIRM, KGF and f) Scientific study for design of Mining & support design for thick seam 1 (a +b) at Mathani UG mine, Pench Area being done by NIRM, KGF ii) To eliminate manual drilling, Mechanised roof bolting has been introduced by deployment of 31 departmental UDMs, 1 contractual quard bolter, 2 converted UDMs, 27 Hydraulic roof bolting machines, 3 pneumatic roof bolting machines and 41 Kargil type and other roof bolting machines. To eliminate long and arduous travel, four Man Riding Systems are being used (one each) in Tandsi, Mohan/Mouri Incline, Saoner-1 and Shobhapur (1st system). Further, installation and commissioning of 2 chair lift systems and 2 rail car systems in four mines of WCL, i.e, Tawa-1, BC 3&4, Shobhapur (2nd system) and Kumbharkhani mines is in process. In addition to the above, one system which was procured for Sarni mine is being shifted to Chattarpur-1 mine and one system is under procurement for Saoner mine no. 2.
4.4
Statistics of Injury frequency :

Particulars 2011 (Calendar year) 137 3.16 2.55 2010* (Calendar year) 186 4.24 3.41
Injury frequency Injury frequency Rate per million tonne output Injury frequency Rate per 3 lakhs manshift
4.5 Technical Contribution in 2011-12 : i) Vetting of operational plans of all mines by ISO at Hq. ii) RMR study for each development district for support design. iii) Accident enquiry in case of fatal & serious accidents and enquiry into major dangerous occurrences / incidents . iv) Analysis of all accidents and incidents so as to decide preventive safe practices. 4.6 Special Achievements in 2011-12 : i) Following scientific studies have been initiated by Scientific / Educational
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iii)
Efforts to save time and energy - Chair Lift Manriding System 4.7 Utilisation of Safety Budget 2011 12 :
Head Budget Expenditure Capital Rs. 728.00 lakhs Rs. 220.92 lakhs Revenue Rs. 8000.00 lakhs Rs. 8050.00 lakhs Sl. Colliery/ Date No. Area 01 26.04.11 28.04.11 Mahakali/ Chandrapur 02 28.05.11 29.05.11 Mathani/ Pench 03 28.09.11 29.09.11 BC 3&4/ Ballarpur 04 05 26.11.11 DRC/ Chandrapur 19.12.11 Saoner-2/ Nagpur 25.01.12 26.01.12 Mahakali/ Chandrapur 14.03.12 Silewara/ Nagpur Reasons Reopening of sealed off area to ascertain stability of working Reopening of sealing of 10LN section in 1 (B+C) seam Reopening of sealed off area to ascertain stability of working (panel C&H) Dealing of spontaneous heating in sealed off area near main dip. Reopening of depillaring panel E-1(B) of seam V Reopening and resealing of Panel-M Dealing of Spontaneous heating in Section-C Panel (Seam IVBottom West)
5.0 RESCUE : 5.1 MAJOR ACHIEVEMENTS 5.1.1GETTING ISO 9001:2008 CERTIFICATION : Your Company added in its cap the prestigious ISO 9001:2008 Certification when Mines Rescue Station, Nagpur, the first Rescue Organization in India amongst all Coal and Metal Companies, obtained this certification. 5.2 Prompt Service in Emergency & Reopening 5.2.1 During 2011-12, two Spontaneous Heating and five Reopening operations have been dealt successfully. The details are as under.
06 07
5.3 EXPANDING EXPERTISE TO CALIBRATE GAS DETECTORS: 5.3.1 The importance of gas detectors in mines need no explanation. Though maintenance and calibration of gas detectors are not in the ambit of our core competence, two officers were trained to calibrate Drager make and Oldham make gas detectors. This venture will result in considerable positive financial impact as well as
26
improving operational efficiency. The move is having a direct yearly financial saving of around Rs.38 lakh. Further the acquired in-house expertise in these gas detectors will increase the reliability as well as availability of the detectors. 5.4 BECOMING A REVENUE GENERATING ORGANIZATION: Mines Rescue Station, Nagpur imparted Rescue training to employees of M/S. Sunflag Iron & Steel Company as well as M/S. Manganese Ore India Limited (MOIL) and generated revenue to the tune of Rs. 08,86,256/- ( Rs. Eight Lakhs Eighty Six Thousand Two Hundred Fifty Six) during the financial year 2011-12. 5.5 COMPETITION/DRIVES IN RESCUE SERVICES : 5.5.1 Inter Rescue Room Competition was held in the month of December- 2011 . RRRT, Parasia bagged the First Prize under RRRT group and Rescue Room Majri was adjudged First in Rescue Room group. 5.5.2 Zonal /Inter Area Rescue Competition was held at RRRT , Pathakhera On Dt: 09.02.2012. Overall First Prize was bagged by Pathakhera Area, Overall Second - Nagpur Area, Overall ThirdChandrapur Area, Best Captain-Shri Dilip Tripathi, Pathakhera Area & Second best Captain Shri D.S. Satyarthi, Ballarpur Area. 5.5.3 All India Mines Rescue Competition was held at RRRT, Talcher (MCL) from 24th to 26th February2012. In this competition WCL- B Team has been adjudged as Overall Third and B-Team Captain Shri R.K. Suman, Sr.Officer(Mining),Pench Area has been awarded as Second Best Captain in addition to other Prizes.
27
6.
AVAILABILITY OF POWER AND POWER & FUEL CONSUMPTION :
6.1 Availability of Power :

Area Average Contract Demand in MVA Average Availed Demand in MVA 2011-12 136.200 123.590 2010-11 135.997 123.078 % Varitation 0.15 0.42
6.2 Power and fuel consumption : 6.2.1 Electricity :

Purchased Units in MKWH Rate / unit 2011-12 612.93 6.49 2010-11 659.63 5.47
7.
POPULATION AND PERFORMANCE OF EQUIPMENT :
7.1 Population of Equipment :

S.No. 1 2 3 4 5 6 Equipment Dragline E.R. Shovel Hydraulic Excavator Dumper Dozer Drill TOTAL Population As on 31st March 2012 2011 4 4 40 42 112 104 574 568 173 165 106 104 1009 987
7.2 Performance of HEMMs : 7.2.1Availability of HEMMs : i) Dragline & Dumper has achieved CMPDIL-Norms for availability. ii) Availability of Dragline,Shovel & Dumper is more than CIL average. 7.2.2 Utilization of HEMMs : i) Utilization of Dragline is more than CMPDIL - Norms. ii) Utilization of all the HEMMs in WCL is more than CIL average. 7.3 Special Achievements : 7.3.1 WCL is ranked as 1st in utilization of Dumper & Dozer, while 2nd in Dragline & Shovel and 3rd in Drill among all subsidiaries of CIL. 7.3.2 Equipment under breakdown more than 3 Months (9.5 % of total population of
A Dragline in operation in one of the Opencast Mine of WCL equipment as on 31st March 12) is the 2nd LOWEST amongst all subsidiaries of CIL. Also, it is less than CIL average. 7.3.3 To increase the production and productivity of the company, 73 new equipment including 60 Dumpers and 8 Shovels (Electrical and Hydraulic) were purchased against surveyed off during the year. 7.3.4 System Capacity Utilization of Open Cast Mines of WCL :
Year 2010-11 2011-12 Capacity in Mill. Cu.m. 89.14 82.45 Capacity Utilization 97.13% 104.67% Remarks Based on CMPDI capacity as on 1st April, 2010. Based on CMPDI capacity as on 1st April, 2011.
performance of the Company for the year 2011-12 vis-a-vis 2010-11 is furnished below : (Rs. in Crores)
Sl. Particulars Amount Amount No 1 Profit before tax for the year 2010-11 1068 2 FACTORS CONTRIBUTING TO DECREASE IN PROFIT i. Normal increase in Salary & Wages due to 158 increment,DA etc ii. Impact of NCWA-IX on Salary & Wages excluding 402 terminal benefits iii. Impact of Actuarial valuation of terminal benefits e.g. Gratuity, Leave Encashment, Settling Allowance, etc. ( including NCWA-IX Rs.452 crores) 650 iv Increase in OBR adjustment cost 144 v Increase in Mine closure cost 121 vi Increase in input cost ( Stores & Spares Rs.57 crores, Power & Fuel Rs. 23 crores , Other Misc. & welfare expenses etc. Rs.18 crores ) 98 vii Decrease in withdrawal of provision for bad & doubtful 29 1602 debts 3 FACTORS CONTRIBUTING TO INCREASE IN PROFIT i Increase in e-auction revenue 586 ii Increase in sales due to price revision w.e.f. 27.02.2011 240 iii Increase in non-operating income 219 iv Impact of GCV pricing w.e.f. 01.01.2012 -70 975 Profit before tax for the year 2011-12 441
8.
FINANCIAL PERFORMANCE : The Company has earned a profit before tax in the year 2011-12 Rs.441 Crores as against Rs.1068 Crores in the previous year 2010-11. The financial
28
8.2 The working results for the year as compared to the previous year are given below :( Rs. in Crores)
PARTICULARS GROSS SALES Less: LEVIES MAHARASTRA MADHYA PRADESH NET SALES Less: EXPENDITURE - Net of Misc. Income GROSS MARGIN Less: DEPRECIATION/IMPAIRMENT GROSS PROFIT Less: INTEREST PROFIT BEFORE PPA Add : PRIOR PERIOD ADJUSTMENTS PROFIT BEFORE TAX Add/(Less) : Withdrawal /Provision for deferred Tax Assets/Liabilities Less: PROVISION FOR TAXATION PROFIT AFTER TAX Less : Profit/Loss from discontinuing operation Add: PROFIT BROUGHT FORWARD DISTRIBUTABLE SURPLUS 2011-12 8357.48 1359.41 248.06 1607.47 6750.01 6119.43 630.58 195.65 434.93 3.20 431.73 8.77 440.50 105.59 239.37 306.72 0.01 1988.80 2295.51 905.15 174.02 1079.17 5994.27 4742.67 1251.60 188.16 1063.44 3.30 1060.14 7.84 1067.98 29.62 559.28 538.32 0.01 1932.82 2471.13 2010-11 7073.44
1 2 3 4 5
APPLICATION OF FUNDS : Additions to fixed assets & capital WIP Increase in working capital Increase in long term Loans & Advances Decrease in Long Term Borrowings Increase in deferred tax assets Total
2011-12 192.97 1054.77 3.78 2.98 105.59 1360.09
9.
CAPITAL STRUCTURE :
9.1 Share Capital : The Authorised Share Capital of your Company is Rs. 800 crores comprising of 80 lakhs Equity Shares of Rs. 1000/each of which Rs. 297.10 crores is paid up Equity Share Capital (29.71 lakhs Equity Shares of Rs.1000/- each) which remained unchanged during the year. 9.2 Loan Fund : Unsecured Loans :
Name of Financial Institution (1) Balance Addition as on due to 01.04.2011 exchange fluctuation (2) (3) 1431.57 1431.57 Repayment during the year (4) 1490.82 1490.82
( Rs. in lakhs )
Balance Security as on details 31.03.2012 (5) (2+3-4) 10197.13 10197.13 (6) Ref.note 1& 2
APPROPRIATION :
(Rs. in Crores)
FINAL DIVIDEND TAX ON DIVIDEND REVIOUS YEARS EXCESS TAX PROV. ON DIVIDEND WRITTEN BACK TRANSFER TO CSR RESERVE TRANSFER TO GENERAL RESERVE TRANSFER TO BALANCE SHEET
2011-12 184.04 29.86 0.00 21.83 46.01 2013.77
2010-11 323.24 52.44 -1.50 27.40 80.75 1988.80
CIL World 10256.38 Bank Loan TOTAL 10256.38
8.3 Dividend : Directors are pleased to recommend a final dividend of Rs.184.04 Crores (previous year Rs.323.25 Crores ) @ 61.95% ( previous year 108.80% ) on the paid up Equity Shares Capital of the Company . The total dividend per share is @ Rs.619.45( previous year Rs.1088.00 per share ) on 29,71,000 Equity Shares of the Company. 8.4 Source and Application of funds :
(Rs. in Crores)
NOTES : 1) Loans from Coal India Ltd. amounting to Rs.10197.13 lakhs comprises of : a) Coal Sector Rehabilitation Project from International Bank for Reconstruction and Development (IBRD)- Rs.4736.51 lakhs. b) Coal Sector Rehabilitation Project from Japan Bank of International Cooperation (JBIC) - Rs.5460.62 lakhs. 2) The loan amount of Rs. 10197.13 lakhs includes adjustment of upward fluctuation of foreign exchange to the tune of Rs.1431.57 lakhs . A charge has been created for Rs.165.00 crores on current assets for securing working capital facility from CILs Consortium Banks as per joint deed of hypothecation dated 01.09.2008 . This loan has, however, not been availed so far
3)
1 2 3 4
SOURCES OF FUND Addition to reserve & surplus Addition to cumulative depreciation & Impairment Decrease in investment Increase in Other Long Term Liabilities & Provisions Total
2011-12 92.81 118.04 32.09 1117.15 1360.09
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10. WORLD BANK ASSISTANCE : Your Company has not received any assistance directly from World Bank , though assistance through Coal India Limited , under ESMP and CSRP Schemes to the extent of Rs. 3.20 crores (Previous year Rs. 3.29 crores) has been received during the year 2011-12. 11. BORROWINGS FROM GOVT. OF INDIA : Your Company has not borrowed any amount from the Government of India directly during the year 2011-12. 12. CAPITAL EXPENDITURE : During the year ending 31st March, 2012 an amount of Rs. 275.72 crores (excluding capital commitment of Rs. 82.19 crores) was invested in Fixed Assets and Capital Work-in-progress of existing and upcoming Mines/Projects. The capital expenditure for the previous year was Rs. 239.74 crores. 13. ROYALTY, SALES TAX , ENTRY TAX , EXCISE DUTY & OTHER DUTIES ON COAL : 13.1 Royalty, Sales Tax , Entry Tax , Stowing Excise Duty , Clean Energy Cess and Central Excise Duty paid to Govt. during the year are as given below :( Rs. in Crores )
2011-12 M.P. Maharashtra Total 99.07 526.30 625.37 2010-11 M.P. Maharashtra Total 96.02 499.82 595.84
13.2 By virtue of enactment of Cess & Other Taxes on Minerals (Validation) Act, 1992, the Company raiseds upplementary bills on customers upto 04.04.1991. An amount of Rs. 2.96 Crores ( Previous year Rs. 2.96 Crores) has been shown as liability for Cess on Royalty under the head Other Current Liabilities. In view of the judgement of the Honble High Court, Patna, and Ranchi Bench in Writ Petition No.CWJC/1280 of 1992, the said Cess is not payable. However, a Special Leave Petition (SLP) is pending in Honble SupremeCourt against it. 14. PLANNING : 14.1 The production achieved during the year 2011-12 and targeted production for the year 2012-13 is given below :
Particulars 2011-12 Target 1 2 Production (in million tonnes) Productivity (OMS) 45.50 2.54 Actual Provisional 43.110 2.67 2012-13
AAP Target (As Per Annual Action Plan)
45.00 2.58
15. DRILLING & EXPLORATION : 15.1 During the fiscal year 2011-12, exploratory drilling carried out by CMPDIL has been 13655 m in WCL command area. 187.876 Mte Coal Reserves have been proved in Pimpalgaon Deep, Wani Mander & Pauni Amalgamated Block. The target for drilling in 2012-13 in WCL command area is 27000 m. 16. REPORT FORMULATION: 16.1 During the year the following Geological Reports were prepared:
S. No Name of Geological Reports 1. 2. 3. Pimpalgaon Wani Mander Pauni Amalgamated Block
Royalty Sales Tax: State 50.13 Central 9.10 Entry Tax 10.23 S.E. Duty 6.49 Clean Energy Cess 29.63 Central Excise Duty 53.87 Total 258.52
222.07 272.20 38.84 148.19 187.03 34.93 44.03 5.14 26.46 31.60 0.00 10.23 10.61 0.00 10.61 35.69 42.18 6.99 36.39 43.38 163.95 196.58 21.98 117.54 139.52 288.23 342.10 5.18 23.10 28.28 1271.17 11529.69 184.76 851.50 1036.36
30
16.2 During the year following 7 Mining Project Reports / Schemes were formulated/recast :
S. No. 1 2 3 4 5 6 7 Capacity (Mty.) Visapur OC 1.00 Ghuggus Expn. (Sector C) OC 0.80 Padmapur Extn. Deep OC 2.50 Urdhan Magrahi OC 2.00 Mungoli Nirguda Deep Extn. OC 3.00 Parsoda OC 0.80 Nandgaon Reorg. UG 0.36 Total 10.46 Name of Project Captial ( Crores) 287.92 307.03 66.28 373.23 197.60 361.38 115.30 1708.74
STATUS XI PLAN PROJECTS

TYPE UG OC TOTAL PROJECT APPROVED UG OC TOTAL PROJECTS REPORT APPROVED SUBJECT TO CSA UG OC TOTAL PROJECT ACCORDED Ist STAGE APPROVAL OC UG TOTAL PROJECT REPORTS FORMULATED AND UNDER RECAST/ TO BE APPROVED OC NO. 08 21 29 1 5 6 Capacity (Mty.) 05.55 33.20 38.75 0.39 7.90 8.29 Capital (Rs. in Crs.) 1077.64 4279.87 5357.52 71.73 481.50 553.23
6 5 11
3.96 7.80 11.76
522.28 956.93 1479.20
16.3
PLANNING PREPAREDNESS:
16.3.1 24 new mining projects were envisaged in X Plan, mainly to sustain present level of production from existing and completed group of mines. The total capacity & production contribution of these X Plan projects is given below:
No. of Capacity Capital Contribution of Projects (Mty.) (Rs.Crs.) prodn. in 2011-12 (M.Te.) 21 16.64 980.83 11.2446 2* 0.99 110.49 0.60 1** 24 17.63 1091.321 11.8446
9 1 10
13.25 1.20 14.45
1945.00 483.30 2428.63
4.25
896.45
17. XI PLAN PROJECTS APPROVED DURING 2011 : 17.1

S. No. 1 2 3 4 5 Name of the Project Shivani OC Wanoja OC Gandhigram UG Padmapur Deep OC New Majri Sector IA & Sector IIA Extn. OC Total Capacity Capital (Mty.) (Rs.crs.) 1.25 348.89 0.50 140.46 1.20 483.63 2.50 66.28 1.00 6.45 54.28 1093.54
Projects already approved Projects shifted to XI Plan Projects dropped Total
Waghoda UG (0.39 Mty) and Junad Extn. OC (0.60 Mty) have been shifted to XI Plan, as CSA on Cost plus was finalised on 18.04.2007 Saoner UG Mine No. III (with Continuous Miner Technology), has been dropped, due to insufficient balance reserve for deployment of Continuous Miner. Out of 21 X Plan projects, 14 (09 ongoing and 5 completed) are contributing production. One Project viz Junakunada OC has been commissioned in 2011-12 and remaining 7 projects could not be started because physical possession of land could not be obtained due to expectations of very high land compensation by land losers, which is beyond norms.
**
17.2 Out of 29 Projects of XI Plan , PRs for all 29 no. of Project Reports have been formulated by CMPDIL & out of 29 projects, 6 projects have been approved by WCL Board and are at different stages of implementation, while 21 projects have been approved subject to finalization of Cost Plus Agreement with prospective consumer/ accorded Ist stage Approval. Remaining 2 Projects are being recasted. 17.2.1 Status of 5 Projects of XI plan, that were placed before WCL Board in 201112 is as under : PR of 3 projects, namely Shivani OC, Wanoja OC & Gandhigram UG were accorded I stage approval by WCL Board for the purpose of environmental and / forestry clearance. PR of 2 projects namely Padmapur Deep OC & New Majri Sector IA &
16.3.2 Presently, there are 29 Projects of XI Plan with a sanctioned Capacity of 38.75 MTY and Capital of Rs.5357.52 Cr. identified to sustain the present level of production of your Company.
31
ANNUAL REPORT 2011-12 Sector IIA Extn. OC were accorded I stage approval by WCL Board for the purpose of environmental clearance with permission to enter in to cost plus agreement with prospective consumers. Project Reports of remaining 2 projects,namely Chikalgaon Chinchala Amalgamated OC & Bhatadih Expn II OC are being recasted. Out of 6 approved Ongoing projects of XI Plan, 3 projects namely Scheme for Extension of Ghugus OC, Scheme for Extension of Gauri- I and Gauri -II (Merger) OC & Junad Extension OC are contributing production. The production from these mines during 2011-12 is 3.77 M.Te. 17.2.2 Coal Supply Agreement (CSA) on negotiated price to yield requisite IRR % for approval of Project : Total 32 Projects have been approved till 2011-12 on cost plus basis, out of which Coal Supply Agreements for 07 projects have already been signed. 6 projects, namely, Sharda UG , Harradol UG, Dhankasa UG, Dhuptala (Sasti UG to OC ), New Majri UG to OC and Dinesh OC, have been offered to MAHAGENCO and MPPGCL on cost plus basis for which In Principal consent has been received & Coal supply agreements are under finalisation . 17.2.3 In order to open new mines, which are financially unviable at Notified Price, the following alternatives are being explored :a) Efforts are being made to plan mines by total/partial hiring of equipment at enhanced capacity ensuring minimum 12 % IRR at 85 % capacity utilisation as per Govt. of India guidelines. b) To enter into Coal Supply Agreement with the consumers who are agreeable to pay the price yielding 12 % IRR at 85 % capacity. c) As per MOC guidelines 13 nos. of financially unviable projects were placed on the Website of WCL. and applications were invited from LOA holders /FSA holders/ Linkage holders both from Cost Plus Category & Notified Price Category. Based on the applications, allocation of Coal from 3 Cost Plus Mines namely Urdhan OC, Bellora Naigaon OC and Ukni Deep
OC, has been approved for M/s MAHAGENCO and M/S Wardha Power Ltd on Cost Plus Basis. Applications received for remaining projects are proposed for shifting from notified price to cost plus price. Accordingly a proposal has been sent to MOC on 17.03.2012. Coal supply agreements are to be signed shortly with MAHAGENCO for supply of coal on Cost Plus Basis from New Majri UG to OC,Bellora Naigaon Deep OC& Ukni Deep OC. 18. PROJECTS / SCHEMES APPROVAL AND COMPLETION: 18.1 Approval of Project Reports : During the year 2011-12, following 10 projects/Schemes have been approved for a total capacity of 10.13 Million Tonnes (1 underground project of 1.20 million tonne capacity and 9 Opencast projects/ Schemes of 8.93 million tonnes capacity) with a total Capital Investment of 1699.50 crores:
S. No. 1 2 3 4 5 6 7 8 9 10 Capacity Capital (Mty.) (Rs. crs.) Shivani OC 1.25 348.89 Wanoja OC 0.50 140.46 Gandhigram UG 1.20 483.63 Ghugus Expansion (Sector C) OC 0.80 307.03 Padmapur Deep OC 2.50 66.28 New Majri Sector IA & Sector IIA Extn. OC 1.00 54.28 Visapur OC 1.00 287.92 Scheme for Shivpuri OC 0.50 0.74 Scheme for Padmapur OC 1.00 9.93 Scheme for InderUG to OC 0.38 0.34 Total 10.13 1699.50 Name of the Project
18.2 Completion of Projects : During the year 2011-12 Scheme for Extension of Gauri- I and Gauri -II (Merger) OC has achieved the norms of completion, and Completion Report is under formulation.
S.No. Name of Project Capacity Capital (Mty) (Rs. Crs.) 1.20 13.00
Scheme for Extension of Gauri- I and Gauri - II (Merger) OC
32
18.3 Brief Status of Ongoing Projects : At present there are 33 Ongoing Projects (19 Projects having a Capital of more
than Rs. 20 Cr. & 14 Projects having a Capital of less than Rs. 20 Cr.) with a Sanctioned Capacity of 32.081 MTY and Capital of Rs. 1396.33 Cr. Out of 33 Projects, 22 are in operation and rest are under implementation. Contribution of 18 Projects in Coal production for 201112 was 16.7123 Mte as compared to 13.2751 Mte in 2010-11. 18.4 Acquisition of land 18.4.1 The Coal Bearing Areas (Acquisition & Development) Act, 1957 is the main stay for acquiring land by the Central Government and vested with WCL for coal mining activities. The compensation is assessed by WCL as per the provisions of the Act and disbursed after getting sanction from the Ministry of Coal, Government of India. All facilities under the R&R Policy of CIL are extended while acquisition through CBA (A&D) Act, 1957. Under CBA Act, WCL has acquired, since Nationalization 16820.628 Ha. of land till March, 2012 out of which 9728.291 Ha. is under possession. 18.4.1.1. The Land Acquisition Act has also been invoked invariably for acquiring land by our Company, which is done through State Government on requisition by Central Government. All facilities under the R&R Policy of CIL are extended under this acquisition also. 18.4.1.2 WCL has acquired, since nationalization, 4180.41 Ha. land till March, 2012 out of which 3883.05 Ha. is under possession. 18.4.1.3 The provisions of Land Revenue Code of Madhya Pradesh and Maharashtra have also been referred for acquiring land in cases where mining lease has been obtained under Mineral Concession Rules.
33
18.4.1.4 WCL has acquired and taken possession of 1558.096 Ha. landunder this provision. 18.4.1.5 This year your Company has made a remarkable achievement in acquisition of land for mining and allied activities. The details of acquisition in 2011-12 is as under :Sl. Area No. 1 2 3 4 5 6 7 8 9 Majri Chandrapur Wani North Wani North Pench Nagpur Ballarpur Ballarpur Nagpur Project Mode of acquisition Total (In Ha.) 431.270 467.210 692.180 132.730 310.638 34.750 149.300 5.860 3.280 12.976 2240.194
10 Kanhan
New Majri UG to OC CBA Bhatadi Expn. OC CBA Kolarpimpri Extn. OC CBA Junad Extn. OC CBA Jamunia UG CBA Kamptee UG to OC LA Extension of Sasti OC LA Sasti OC Direct Purchase Gondegaon-Ghatrohana Amalgamated OC Direct Purchase Datla (Takiya Nallah) MPLRC Phase - VII Total :
18.4.2 Details of physical possession during 2011-12 is as under :

Sl. Area No. 1 Ballarpur 2 3 Ballarpur Ballarpur Majri Project Gouri Deep Extn. OC Ballarpur Expn. OC Sasti OC Mode Tenancy Govt. Forest CBA LA Direct Purchase CBA 25.060 0.000 17.680 0.000 5.860 0.000 88.090 11.290 13.640 1.200 78.851 12.976 0.040 0.000 0.000 0.000 Total
0.000 25.060 0.000 17.680 0.000 5.860
4 5 6 7 8
10
Navin Kunada OC Majri Dhorwasa OC CBA Wani North Junad Extn. OC CBA Pench Urdhan OC CBA Kanhan Datla (Takiya MPLRC Nallah Ph - VII) Nagpur Gondegaon Direct Ghatrohana Purchase Amalgamated OC Nagpur Gondegaon CBA Ghatrohana Amalgamated OC Nagpur Bhanegaon OCP CBA TOTAL
0.000 99.380 0.000 13.680 0.000 1.200 0.000 78.851 0.000 12.976 0.000 3.280
3.280 0.000
52.550 0.000
0.000
52.55
21.870 0.000 321.057 11.33
0.000 21.870 0.000 332.387
18.4.2.1Summerised Status of land acquired during the year 2011-12 is as under :Details Under LA Act, CBA Act, MPLR and Direct Purchase. Total land acquired 2240.194 Land taken in possession 332.387
18.4.3 Forest land acquisition Forest land is diverted from State Government as per the provisions of Forest Conservation Act, 1980 after approval from MOEF, New Delhi. This year 5.00 Ha. forest lease renewal obtained for Pathakhera Magazine for Pathakhera Area. Details of forest land released during 2011-12 is as under :2 nd Stage clearance obtained for Surface Rights : Pathakhera (PKD Magazine)-5.00 Ha. (Renewal of lease) 1 st Stage clearance obtained for Surface Rights : Shobhapur UG, Pathakhera Area -90.00 Ha. (Renewal of lease) Ghorawari OC, Kanhan Area-19.50 Ha. 18.4.4 Rehabilitation and Re-settlement : 07Families of Padmapur OCP Chandrapur Area and 42 Families of Takia Nallah (Ghorawari) of Kanhan Area have been resettled by providing resettlement grant as opted by land oustees, within the provisions of R&R Policy of CIL. Total Project Affected Families Resettled in 2011-12 are 49 Nos. Administrative approval for employment during 2011-12 :
Year Employment/ Employment Monetary monetary compensation provided compensation administratively approved provided by WCL Board 04 Nos. 103 Nos. 10 Nos. Total
18.4.6 Constraints in acquisition of land i) Demand of higher rate of land compensation by land owners. ii) Demand for employment beyond norms. iii)Physical possession of land becomes extremely difficult due to (I) and (II) as above. iv)Pursuance of State Authorities to implement States R&R Policy instead of CILs R&R Policy. v) High expectations by Project Displaced Families in resettlement and rehabilitation beyond norm, causing resettlement of village over delayed. To overcome the above constraints New R&R Policy of CIL 2012 has been approved by CIL Board in its 279 th Meeting held on 12th & 13th March, 2012, which is under the process of implementation in WCL. 19. COAL MARKETING : 19.1 Raw Coal Offtake during the Fiscal 2011-12 was 41.967 Mill Te against the TGT of 45.50 Mill Te i.e achiement of 92.2 % of Target. Offtake during the fiscal 2010-11 was 42.560 Mill Te thus growth during 2011-12 as against 1011 was (-) 1.4% 19.1.2 Modewise AAP TGT and despatches (Sales) by Rail & Road for 2010-11 & 2011-12 are furnished below : DESPATCHES
YEAR
2011-12
113 Nos.
18.4.5 Special Achievement: There is 9.24% growth in land acquisition over last year and highest ever acquisition since last 21 years. There is 1.64 % growth in possession of land over last year and highest since last 6 years.
(Figs. in Mill.te.)
ACTUAL AAP TARET RAIL ROAD MGR ROPE TOTAL (By All & BELT DESPATCHES Modes) SALE 2010-11 46.411 17.908 20.153 0.813 3.662 42.536 2011-12 45.399 18.283 18.525 1.072 4.052 41.932
34

SECTOR ACTUAL Growth 2010-11 over AAP Actual Achiev2010-11 Target ment
%
2011-12
REMARK
Power 34.260 29.252 85.382 30.848 including IPP
-5.2 Less drawal of

Coal by Mahagenco abrupt stoppage of Rail / RD mode from16.8.11
non lifting of coal by Parichha & Panipat during Rainy season, & failure of transport Contractors in execution of contracts . 2. PU have been given opportunity to source additional requirement by lifting coal on as is where is basis during the fiscal 2011-12. to build comfortable stocks. The quantity offered was 27.16 lac Te & the lifting was 10.0 LTE till 31.3.12. Besides, offtake of coal to the tune of 1.80 Mill Te from Umrer OC could not be materialised on account of non-availibility of coal from Umrer OC due to Force Majeure conditions. The actual offtake was less than MOU target mainly due to non lifting of 4.036 Mill Te through Road cum rail mode since Aug11 alongwith 1.072 Mill Te less drawal of coal through Captive Modes (Rope, MGR & Belt) by CSTPS Mahagenco
Middling 0.190 0.107 56.316 0.176 and Slurry
-39.2 Source
of washery Grade coal as feed to Washery have reduced which has resulted in less off-take of WG coal.
3.
Cement Including CPP Steel (Raw)
1.600 1.843 115.188 1.902
-3.1 Coal supplied as

per FSA
0.541 0.270 49.908 0.384
-29.7 Source
Sponge Iron CPP OTHERS TOTAL C.C Total Offtake
0.410 0.336 81.951 0.369
of washery Grade coal as feed to Washery have reduced which has resulted in less off-take of WG coal. -8.9 Coal supplied as per FSA
4.
19.3 Sales Realisation : 19.3.1 Sales realisation during 2011-12 was Rs.8620.70 crore which represents a growth of 17.86% over the previous year. Sales realisation during 2010-11 was Rs.7314.00 crore. 19.3.2 The total sales outstanding dues which was Rs.147.32 crore as on 01.04.2011 has decreased by 19.18% to the level of Rs.119.07 crore (including dues for performance incentives of Rs.52.87 crore) as on 31.03.2012. The reduction in outstanding is mainly in respect of the major Power Houses. 19.4 Sale of coal through e-Auction 19.4.1 Spot e-Auction : Quantity offered under Spot e-Auction, quantity allocated and additional revenue generated based on the
2.300 1.485 64.565 1.341 6.369 8.773 137.745 7.707 45.480 41.959 92.258 42.551 0.020 0.008 40.000 0.009 45.500 41.967 92.235 42.560
10.74 Coal supplied as

per FSA 13.83 Inculudes FSA/ e-Auction
-1.39 -11.11 -1.39
19.2 WAGON LOADING (IN BOXES/DAY) The details of AAP TGT Loading on daily Avg Basis & quantity despatched for the year 2011-12 as compared to 10-11
YEAR 2010-11 2011-12 TARGET 916 876 ACTUAL 765 761 % Achievment 84 87 Rail Desp. in MT 17.908 18.283
Remarks : 1. Despatches by Rail during 2011-12 was less against the Targetted Loading due to less drawal of coal by Mahagenco & 35
ANNUAL REPORT 2011-12 quantities allocated to the bidders during the years 2010-11 and 201112, are given below :
Year 2010-11 2011-12 Quantity offered Quantity allocated (lakh tonnes) 59.59 70.47 (lakh tonnes) 58.16 64.14 Additional Revenue (generated (Rs.in crs.) 613.40 713.55
19.4.1.2 Forward e-Auction For the year 2011-12, four Forward e-Auctions have been held covering the four quarters of the year, performance of which is given below :
Addl. Revenue Forward e-Auction Quantity Quantity Years for which offered Allocated generated (as per the qty. allocated in auctions were (in lakh tes) offered (in lakh tes) e-auctions)(Rs. in crs) conducted Jan.12 to Dec12 Oct.11 to Sept.12* July11 to June12* April11 to March12* 2.44 1.99 1.25 5.12 1.09 0.78 0.21 5.11 13.19 8.98 2.61 50.77
As compared to the year 2010-11, realisation during the year 2011-12 increased by Rs.100.15 crs. One of the main reasons for increase in additional revenue generation during 2011-12, is increase in the offered quantity.
*also include quarters of 2012-13. 20. CONSUMER SATISFACTION: WCL has adopted various measures to ensure supply of quality coal to the consumers, as brought out hereunder:
19.4.1.1 Additional Revenue Generated During 2011-12, considering the quantities allocated to the successful bidders, the total of Rs.713.55 crs. was generated additionally under Spot e-Auction.
A view of Coal Washery at Nandan, Kanhan Area of WCL

36
20.1 Quality of Coal: 20.1.1 The Grade materialization of our Company during the period 2011-12 is 90.57% as compared to 91.88% achieved last year which is mainly due to less grade materialisation of Patherkheda Area from January 2012 to March 2012.The despatches covered under Joint Sampling and analysis is 100% in WCL. 20.1.2 Against coal supply to Maharashtra State Power Generation Company Limited (MAHAGENCO) from Durgapur Deep Extension,Bhatadi O/C Junad Extn, Adasa UG and Kolgaon O/C on cost plus basis mines, incentive of approximately Rs.124.59 per tonne, Rs.190.94 per Tonne, Rs.7.52 per tonne, Rs.4.68 per tonne and Rs.24.17 per tonne respectively has been earned during the period April, 2011 to March, 2012. 20.1.3 The grade materialization of coal supplies to Gujarat State Electricity Corporation Limited (GSECL) and Karnataka Power Corporation Limited (KPCL) are 100% & 99.71% respectively. 20.1.4 The weighted average Useful Heat value (UHV) up to Dec11 & Gross calorific value (GCV) w.e.f. 01.01.12 to 31.03.12 of coal supplied to following Power Generating Companies was more than the required UHV, as per boiler parameters during 2011-12
Power Sector UHV (K.cal/kg) GCV (Kcal/Kg)(From (From April11 to Dec11) Jan12 to Mar12) Required Supplied Required Supplied UHV/Grade UHV/Grade GCV GCV 3056/F 3666/E 4212 4766
20.1.5 The average monthly generation of Maharashtra State Power Generation Company Limited (MAHAGENCO) during April 2011 to March 2012 is 3107.012 MU (prov) as compared to 3035.519 MU generated during April 2010 to March 2011. 20.2 Weighment : Total 103 Electronic. Road Weighbridges and 24 Rail Weighbridges are working/ operational and Overall weighment percentage during 2011-12 was as under:YEAR 2011-12 BY RAIL Target% Actual% 98.00 99.95 BY OTHER MODES OVERALL Target% Actual% Target% Actual% 100.00 100.00 99.08 99.98
20.3 Crushing: The installed annual crushing capacity for Open Cast mines is 46.20 million tonnes. 20.4 Quality Dispute Redressal: a) In 2011-12, total 102 complaints have been received. The complaints are of lumpy coal, extraneous material, wet and sticky coal. b) Complaints received are registered, acknowledged, investigated and corrective remedial measures are taken on top most priority for redressal c) Regular feedback obtained to maintain high quality standards. d) Remedial measures taken are as under: Following measures are taken at Area level to improve the quality of coal supplied to the consumers to minimize the complaints:
37
Maharashtra State Power Generation Co. Ltd (MSPGCL)
1) Selective mining 2) Deployment of sufficient pickers at faces Stock and Siding to separate extraneous materials from coal 3) Proper cleaning and maintenance of siding 4) The crushing facilities are provided at the mines/at loading points to despatch sized coal 5) All weighbridges of WCL are regularly calibrated and stamped by Weights and Measures Department for proper weighment. 21. TELECOMMUNICATION : 21.1 Existing Telecommunication Systems: VOICE & DATA Communication: WCL (HQ) has an efficient voice and data communication network connecting WCL HQ with Area Hqrs. Stores through BSNL leased lines. 21.1.1 Surface Communication : i) During 2011-12 total 9 Nos. of state of art IP EPABX systems have been procured and commissioned at Sasti O/C Ballarpur Area, Ukni OC & Bhandewada mines of Wani North Area, Chattarpur II, Patherkhera Area, Area Hospital, Kanhan Area, Durgapur colony, DRC & Padmapur mines of Chandrapur Area, MRS Indora Complex, WCL HQ. Further, one more EPABX system has been ordered & is under installation at NMUG mine of Majri Area. ii) 2 Mbps leased internet service at WCL HQ is in operation catering the need for various applications such as tender uploading, e-auctioning, web browsing etc. iii)Presently 3 nos of telemonitoring systems is in operation at Naglone,
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DRC & Ballarpur 3 &4 pits to monitor environmental condition in UG mines including continous measurement of Carbon Monoxide, Methane, Oxygen & Temperature. The telemonitoring system at NMC-3 mine & Naglone mine has been restructured with independent surface monitoring. iv) During the period a digital TETRA based mobile communication system has been introduced at Durgapur OC mines of Chandrapur Area which has contributed to enhance operational efficiency of the mines. Based on the success story, it is also proposed to introduce the same in Gondegaon mine of Nagpur Area & is under tendering process. 21.1.2 Underground communication : During 2011-12 1 no. of Auto-cumManual telephone systems of underground mines has been procured & is under installation at NMUG mines of Majri Area for efficient surface to UG communication & vice versa to improve safety of UG mine. 22. COMPUTERISATION : 22.1 Status of activities planned for 2011-12
Sl. Particulars of Activities No. 1 Development of Centralised Performance Incentive Computation Software for FSA consumers. 2 Development of Uniform Sales Report based on class/type of coal and nature of sale across all the Areas of WCL. 3 Development of Daily Attendance System for use in Unit Level on Oracle platform. 4 Decentralization of Tender Uploading across all the Areas of WCL. 5 Segment Report of Balance Sheet and Profit and Loss statement. 6 Closing Stock valuation of Final Accounts 7 Redesigning of WCL Website to Dynamic mode 8 Online Vigilance grievance redressal System Status
Achieved
Achieved Achieved Achieved Achieved Achieved Achieved Achieved
22.2
Activities planned for 2012-13

Sr. No. Financial Year
(Fig. Rs. in Lakhs) Net Annual Inventory in Inventory Consumption terms of months consumption 7383.00 88514.37 1.00 7425.74 7606.00 86519.43 92026.00 0.03 1.00 % age change in inventory (+) 01.02 (+) 01.00 (+) 01.02
1. Consolidation of 22 existing servers at 10 Areas to a Centralized Data Base for entire WCL. 2. Deployment of Biometric Attendance System in WCL HQ integrated with Payroll System and subsequent action for entire WCL. 3. Finalisation of specification and taking necessary actions for deployment of a central data base server connected upto Mine/ Weighbridge levelwith MPLS/VPN network (to be provided by E&T department). 4. Development of Oracle base Pension System. 5. Development of a consolidate database for PF, Pension and Gratuity for entire WCL. 23. ROLE PLAYED BY YOUR COMPANY IN DEVELOPMENTAND SUSTAINING SMALL SCALE INDUSTRIAL UNITS : 23.1 WCL, a key Public Sector company in this region, is making all efforts in development of Small Scale Industrial units in Vidarbha Region. This is evident from the fact that up to the year 2011-12 14 small industrial units were anciliarised which qualifies them for securing orders from WCL (HQ) as well as Areas. 24. MANAGEMENT OF INVENTORIES : 24.1 WCL has maintained its position at the top (amongst CIL subsidiaries) in respect of Inventory Management. 24.2 Comparative position of net inventory vis-a-vis annual consumption of stores and spares in respect of last three years is as under :
1 2 3
2009-10 2010-11 2011-12
24.3 To have better control over inventory and consumption 41 charged off stores have been computerised. 24.4 LONG TERM AGREEMENT : WCL has entered into a Long Term Agreement with M/s IOC Ltd. for supply of HS Diesel w.e.f. 01.04.2009 to 31.03.2012 with provision for extension of the same for further period of two years i.e. upto 31.03.2014 as per mutual agreement. 24.5 SPECIAL AGREEMENT : 24.5.1 WCL has entered into a MOU with M/ s SAIL for supply of various types of Iron & Steel materials w.e.f. 01.04.2012. The validity of MOU is up-to 31.03.2013. The approved off-take value is 46.68 Crores for an approximate quantity of 11000 mts. of materials. WCL is first amongst CIL subsidiaries to have such an agreement for smooth supply of Iron and Steel materials. 24.6 E-PROCUREMENT : 24.6.1 WCL has introduced e-tendering with e-price bid with effect from September 2009 and during the year 2010-11/ 2011-12, as a further improvement system, e-tendering with e-price bid has been introduced. So far, 217 e-tenders have been hosted with an estimated tender value of Rs. 419.31 Crores
39
24.7 MODEL DEPOT AGREEMENT : WCL has finalized Model Depot Agreement with M/s Bharat Power Corporation Limited for supply of transmission and electrical spares being the lead company nominated by Coal India Ltd. 25. HUMAN RESOURCES MANAGEMENT : 25.1 Manpower : The Companys manpower as on 31.03.2012 as compared to that on 31.03.2011 is furnished below :Sl.. No. 1 2 3 4 5 6 Category Executive Supervisor Clerical Highly Skilled / Skilled Semi-skilled / Unskilled Companys Trainee TOTAL Manpower as on Increase (+)/ 31.03.2012 31.03.2011 Decrease (-) 2620 2409 211 5288 5675 (-) 387 3546 3922 (-) 376 28828 28765 63 16460 17709 (-) 1249 247 563 (-) 316 56989 59043 (-) 2054
INSTITUTES Management Development Institute (MDI),Nagpur Workers Training Institute (WTI),Wardha Supervisory Training Institute (STI),Chhindwara HEMM Training Institute, Durgapur TOTAL
Executives 1044 2 0 31 1077
Supervisors Workers TOTAL 467 167 554 100 1288 411 370 428 838 2047 1922 539 982 969 4412
NUMBER OF EXECUTIVES TRAINED AT IICM, RANCHI -114
25.2.2 Out-Company Training :

a) In India - Out-Company training including Gandhi Labour Foundation (GLF), Puri is an important activity of HRD department, through which improvement in efficiency and productivity of employees is sought by sharpening their managerial , technical and functional skills. For this purpose, the employees are nominated to attend training programmes organised by various Educational Institutes such as Indian School of Mines University (ISMU), Dhanbad , Indian Institutes of Technology(IIT), National Institutes of Technology(NIT), various organisations such as Indian Institute of Industrial Engineering(IIIE), Indian Institute of Materials Management (IIMM), National Productivity Council (NPC), MGMI , National Institute of Personnel Management (NIPM) , Gandhi Labour Foundation Puri etc and also Original Equipment Manufacturers (OEM) such as BEML, L&T etc. The breakup of executives, supervisors and workers sent for outcompany training is as given below :
Executives Supervisors Workers Out-Company Training (including GLF, Puri) 203 58 27 288 TOTAL
25.2 Human Resource Development (HRD) 25.2.1 In-Company training : In-Company training plays a vital role in the honing of skills and overall development of Human Resources. Four Institutes viz. Management Development Institute (MDI),Nagpur , Supervisory Training Institute (STI),Chhindwara , Workers Training Institute (WTI),Wardha and HEMM Training Institute (HEMM TI), Durgapur cater needs of functional, crossfunctional and other training courses of the executives, supervisors and workers. The break-up of number of executives, supervisors and workers trained during 2011-12 in the four Institutes are as given below :
40
b) Foreign Training - Apart from various types of Out-company training in India, employees are also sent abroad for different types of study tours, trainings, development courses, international Exhibitions/Expo etc. In the year 2011-12 Four Sr. Level Executives participated in such programmes : i) One Sr. Level Executive was sent to South Africa to interact with Manufacturer of Bolter Miner and to see the performance of the Bolter Miner especially in depillaring face. ii) One Sr. Level Executive was sent to Australia on Austrade Mining Technology & Resource Investment Mission and Study Tour. iii) Two Sr. Level Executives were sent to China for participating in Advance Management Programme. 25.2.3 Safety Training : Under VT Rules, various trainings such as Initial, Refresher and Special trainings are imparted to the workers working in mines. This purpose is fulfilled by 12 VTCs located in different Areas of WCL. Alongwith this, the Contractors workers, who play an important role in todays scenario, are also imparted Initial and Refresher training in our VTCs. As per recommendation of 8th / 9th Safety Conference, the supervisors are provided Safety training in the respective Institutes. The break-up of various types of safety training imparted during 2011-12 are as given below.
41
TYPE OF TRAINING INITIAL TRAINING REFRESHER TRG SPECIAL TRG AREA BASED TRAINING CONTRACTORS WORKERS TRG a) Initial training b) Refresher training c) Area based trg 6. TRG. FOR SUPERVISORS (as per 8th / 9th Safety Conf.) a) Mining b) E&M c) Excv 1. 2. 3. 4. 5.
NO. OF WORKERS / SUPERVISORS TRAINED 357 8058 1540 5297 3007 393 233
341 166 38
25.2.4. Training Under Apprentice Act : This year, 268 apprentices were engaged in various trades such as Fitter,Electrician, Materials Handling Equipment Operator-cum-Mechanic (MHEO) etc against the quota of 261. 25.2.5. Coaching for Statutory Examination : To make up shortfall of Statutory Manpower, extensive coaching was conducted for DGMS examination at MDI, Nagpur for 1 st Class Mine Managers Certificate of Competency and at STI, Chhindwara for 2nd Class Mine Manager Certificate of Competency, Mining Sirdar, Overman and Surveyor. Following number of employees qualified in statutory examinations.
Sr No. 1 2 3 4 5 Examination 1st Class Mine Managers Certificate 2nd Class Mine Manager Certificate Overman Certificate Mining Sirdar Certificate Surveyor Competency Certificate No. of employees passed 42 26 34 25 7
25.2.6. Training of SC / ST / OBCs : Training for upliftment of SC/ST/OBCs are an important thrust area. 3480 SC, 2271 ST and 6308 OBC employees were given training in different Skill Improvement courses.
25.2.7. Management Trainees : 196 Management Trainees (Mining46, E&M 43, Excv- 29, Civil- 07, F&A 37, HR /P 29, Sys 02, MM 01, IE 01, E&T-01)inducted in the year 2011-12 were put in On-the-job training in their respective fields. 26. SCHEDULED CASTES SCHEDULED TRIBES/OBC : AND
relations but also in achieving organizational goal. 27.3 Employment to dependants : 458 persons were appointed under the provisions of NCWA under clause 9.4.0/ 9.3.2 during 2011-2012. 28. INDUSTRIAL RELATIONS : 28.1 Industrial Relations scenario in WCL during the fiscal 2011-12 has been peaceful, cordial and harmonious. 28.2 Status of Industrial Relations situation for the last two years is given below:Law & order incidents Relay Hunger Strike Gherao Assault Dharna/Morcha/Demonstration Total Strike/Work Stoppage No. of strikes Mandays lost Production loss (Te.) 2010-2011 Nil Nil Nil Nil Nil 03 25590 44000 2011-2012 Nil Nil Nil 2* 2* 2 ** 50006 154898.5
26.1 As on 31/03/2012, the details of number of employees including the number of SC/ST/OBC is furnished below:Total No. of employees as on 31/03/2012 56989 SC ST OBC
11637
4305
16274
26.2 The Presidential directives of SC/ST and OBCs are being implemented in respect of recruitment as well as in promotion. 27. WORKERS PARTICIPATION IN MANAGEMENT : 27.1 The Steering Committee at Company level comprising of CMD and all Functional Directors, Trade Union representatives of five central trade unions viz. INTUC, BMS, AITUC, HMS, CITU, representatives of CMOAI and GM(P&IR) is functioning smoothly. The broad functional areas of the Steering Committee include: - Formulation and evaluation of Action plans/budgets; - Resources utilization - Cost/profitability - Quality of coal - Safety - Employees welfare and - Environmental protection 27.2 The periodical meetings of the Steering Committee were held regularly which not only helped in inducing cordial industrial
42
(1) Joint demonstration by the five Central Trade Unions before WCL Hqrs. on 18/07/2011 in support of their 3 days strike notice w.e.f. 8th to 10th August 2011. (2) Demonstration/Dharna by BKKMS(BMS) Union on 26/09/2011 in front of WCL Hqrs., Nagpur. (1) One day joint strike on 10/10/2011 by INTUC, AITUC, BMS, HMS and CITU Unions in all units of CIL over the issue of PLR/Bonus/Ex-gratia. (2) One day strike on 28/2/2012 by INTUC, AITUC, BMS, HMS and CITU Unions over National level issues.
**
**
28.3 Voluntary Retirement Scheme (VRS): The scheme was kept under suspension w.e.f. 30/9/2007 due to shortage of manpower.
28.4 Recruitment made during 2011-2012 :
Mining Sirdar
..
152
28.5 Promotions given during 2010-11 : As part of career care of employees, the following number of non-executives have been given promotion: Non-Executives a) b) Excavation personnel .. 651 2324 2975
Non-excavation personnel .. TOTAL
29.1.2 During the financial year 2011-12 total number of 3427 superannuation cases and 646 death cases were settled under the WCL Employees Group Gratuity Scheme and total amount of Rs.206,58,91,845.00 was paid to the employees super annuated and in case of death to their nominees. 29.2 WELFARE AMENITIES:
29. WELFARE MEASURES AND SOCIAL AMENITIES : 29.1 Group Gratuity Scheme : 29.1.1 The Group Gratuity Scheme is in vogue with effect from 10 th March,2003. The actuarial liability as on 31/03/2011 is Rs.2126.04 crores and unpaid liability will be paid to Life Insurance Corporation of India. The trust has earned an interest amounting to Rs.137.39 crores in the year 201112 @ 9.60%
29.2.1 Following are the details of various amenities for the welfare of our employee:
Sl. No. Details As on 31.03.12 1 Houses- Standard -42515 Non-Standard -10086 52601 2 Water Supply (Population covered) 323795 3 Schools (receiving recurring, non recurring grants or infrastructural facilities) 101 4 Co-operative Stores 24 5 Co-operative Societies 45 6 Bank Branches/ Extension Counters 113 7 Ambulances 111 8 Dispensaries 54 9 Hospitals 11 10 Canteens 79 11 Gymnasiums 27 12 Stadium 13
A panoramic view of Residential Township in one of the project of WCL

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29.3
Medical Services :
29.3.1 WCL incurred total expenditure of Rs.48.11 Crores on Medical services (employees on roll and retired employees) during the year 2011-12. This includes expenditure on outside referrals amounting to Rs.20.65 Crores for super-specialized treatment to our employees and eligible dependents. 29.3.2 The per capita expenditure in 2011-12 was Rs.8148.30 as against the provision of Rs.2,000/- under NCWA-IX. 29.4 Family Welfare: 29.4.1 During 2011-12, your companys achievement was remarkable in family welfare programme. Total numer of beneficiaries in family welfare programmes were 3353 (TT+ VT) in total 24 camps, out of which 8 camps with 3000 beneficiaries were organised in collaboration with State Health Authorities and 16 camps were conducted by WCL hospitals with 353 beneficiaries. 29.5 Other Medical camps under C.S.R.: 29.5.1 171 Medical camps, such as, eye, village check-up etc. (including family planning) under Corporate Social Responsibility with 23,779 beneficiaries, were organized during the year. 29.5.2 794 camps by Mobile Medical Vans were organized during the year in nearby villages, under Corporate Social Responsibility with 66,849 beneficiaries. 30. GAMES & SPORTS : Company has secured 1 st position in Cultural Meet, Kabaddi and Cricket and
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2nd position in Table Tennis, Carrom and Volley Ball in CIL Inter Company Tournament. 31. Corporate Social Responsibility: 31.1 In pursuance of the directives from Coal India Ltd. Vide no.CIL/C-5/ 55231 dt. 29.6.2010, the CSR Policy of CIL has been implemented in WCL from 2010-11. 31.2 The main objective of CSR Policy is to make CSR a key business for sustainable development for the Society. It mainly aims at supplementing the role of Govt. in enhancing welfare measures of the society based on immediate and long term social & environmental consequences of their activities. The CSR programme also covers the existing components of Special Component Plan (SCP) AND Tribal Sub Plan (TSP) for development of the SC/ST population besides development component for the entire population. 31.3 The CSR works are to be executed within a radius of 15 kms. from every unit/ project/ area/ Hqs. The Action Plan includes the Scope of works under Education, Water Supply, Health Care, Infrastructure of villages, Sports & Culture, Generation of employment & setting up Co-operative Society, Infrastructure support, Grant/ Donation/ Financial Assistance, Heritage sites Empowerment of Women, Relief of victims & Natural Calamities, Disaster Management, Collection of old clothes & distribution to poor villagers with help of Mahila Mandals, Development of smokeless fuel out of coal, Adoption of village etc. The CSR works are to be executed through the CSR Committees at Area/ Hq. Level. The Action Plan is
Smt. Shashi Garg, President, Jhankar Mahila Mandal of WCL alongwith other members donating Tricycles to the disable persons at Viraj Apang Utthan Sanstha prepared in consultation with the District CMPS-98. Upto the year ending 03/2012, Authorities/ Govt. Official Village total 42400 claims have been processed and sent to CMPFO for Panchayat/Sarpanch etc. release of pension out of 42491 claims 31.4 The allocation of fund for CSR is based received comprising 99.8% of the on 5% of the retained earning of previous claims received. year subject to minimum of Rs. 5/- per 32.1.2 During the Current Financial Year, tonne of coal production of previous year. 3688 pension claims, complete in all respect, have been sent to CMPFO 31.5 The CSR Budget of WCL for the year for the release of pension 2010-11 was Rs. 2286.75 lakhs against which the expenditure had been incurred 32.1.3 Upto 31.03.2012, 42351 Pension to the tune of Rs.712.73 lakhs. And the claims in respect of WCL have been CSR Budget for the year 2011-12 was settled by CMPF, Nagpur & Rs.2182.70 lakhs and expenditure Chhindwara. During the Year 2011-12, 3688 Pension Claims have been incurred to the tune of Rs.842.63 lakhs. settled by CMPF, Nagpur and 32. PENSION : Chhindwara. 32.1 Processing and Sanction of Pension 32.2 Computerization of Process of Cases : Pension Claim : 32.1.1 WCL is torch bearer and trail blazer in CIL for implementing the provisions of
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Complete computerization have been made in respect of the processing of
current pension claims by WCL and all the pensioners are being given Pension Calculation sheet. The Pension Data is saved in computer for future reference for all the claims forwarded to CMPFO by WCL. 32.3 Settlement of PF and Pension in the month of superannuation under Mission Biswas :
33. PROGRESSIVE USE OF HINDI 2011-12 33.1 In accordance with Official Language policy of Government of India, under the efforts made during 2011-12 for popularising the use of Hindi in the official working and progressive use of Hindi in the Company, 9 Rajbhasha Workshops were organised, in which, 197 officers/ employees participated. In these Workshops, they were acquainted with Official Languages Act and Rules and Rajbhasha targets and they also got practiced for Hindi noting, drafting and Hindi correspondence etc. 33.2 In the year 2011-12, a meeting of Official Language Implementation Committee was held in each quarter regularly. Thus, 24 meetings of the Committee were held during the year, in which, Hindi progress and steps taken to achieve Rajbhasha targets were reviewed. 33.3 During the year, 116 offices and units of WCL were inspected. During the inspection, progressive use of Hindi and compliance of Official Language Act and Rules were reviewed. 33.4 During the year, Aaj Ke Shabd were continuously displayed near entrance of the office building and this is continuing. The same is also being displayed in the Areas of WCL. 33.5 During the year, 5 issues of Khanan Bharti, CILs representative Hindi magazine published from WCL, were brought out, in which, articles etc. of the employees of the Company published. 3 issues of bi-lingual magazine Pragati were published. 9 issues of Hindi fortnightly Wall Poster were published, in which, activities and achievements of WCL were highlighted.
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32.3.1 The status of settlement of PF and Pension claims under Mission Biswas during the year 2011-12 is as under :NO OF EMPLOYEES NO. OF CLAIMS SUPERANNUATED FROM/ SUBMITTED TO CMPFO APRIL,2011 TO MARCH,2012 OUT OF A' A 2065 B 2060 BALANCE
C 05 (Disputed)
32.4 Pension Helpline : Pension Helpline is in operation for solving the problems being faced by the Pensioners, if any. During the Current Financial Year, total number of 334 calls received including grievance letters out of which 329 cases have been replied and cleared and balance cases being persuaded with CMPFO and concerned Nationalized Banks. The Pensioners have been encouraged to make maximum use of Helpline and sincere and dedicated efforts have been made to sort out the problems of Pensioners over Helpline. 32.5 Submission of VV Statement for the year 2010-11 : The V V statement for the currency period ending 31.03.2011 has been submitted by all the Units/ Areas under Regional Commissioner,CMPF, Nagpur & Chhindwara.
33.6 On the occasion of Hindi Diwas, Rajbhasha Week was observed from 14th to 21st September, 2011 in WCL HQ, during which, various programmes/ competitions, such as, self composed poem recitation competition, extempore speech competition, general knowledge, Cross word competition, Story writing competition by seeing picture including Prashna Manch were organised. 25 winners of these competitions were felicitated. Besides this, 50 prizes were provided during Prashna Manch. During the concluding function of Rajbhasha Week, 12 departments of WCL HQ and 2 Areas of WCL were given away Rajbhasha Shield/Rajbhasha Cup for doing outstanding work in Hindi during the year. 33.7 At present, 6738 Hindi Books on various subjects are available in Dinkar Hindi Library which are being used by the employees. 5 Hindi monthly magazines were also made available during the year. 33.8 Shri Prem Kumar Satija, Sr. P.A. (OL), Sales and Marketing Department, WCL HQ, Nagpur has earned second prize in All India Hindi Poem Competition organised by Indian Oil Corporation Limited, Gujrat Refinery, Vadodara at Vadodara (Gujrat). He was awarded this prize during Rajbhasha Sammelan held at Vadodara from 13th to 14th October, 2011. 33.9 Khanan Bharati, CILs representative Hindi Magazine published from WCL and WCL employees were given away following prizes during prize distribution function organised by Town Official Language Implementation Committee, Nagpur on 26.08.2011 :-
i)
First prize to Khanan Bharati magazine for excellent publication for 2009-10 and 2010-11.
ii)
First prize to Shri S.L. Joshi, Office Supdt., Director (Technical/ Operation) Secretariate and Shri Sharad Nasery, Office Supdt., Sales Account Department, WCL HQ, Nagpur in Antakshari competition held during 2010-11.
iii) Third prize to Smt. Archana Singh, Sr. Welfare Inspector, Welfare Department, WCL HQ, Nagpur in Poem recitation competition held during 2010-11. iv) Consolation prize to Shri Sharad Nasery, Office Supdt., Sales Account Department, WCL HQ, Nagpur in Hindi Eassay competition held during 2009-10. 33.10 Khanan Bharati, CILs representative Hindi Magazine published from WCL, was awarded the Rajbhasha Patrika Rashtriya Shield Samman-2011 during the 24th All India Rajbhasha Sammelan Organised by Rashtriya Hindi Academy, Rupambara, Kolkata from 2nd to 4th October, 2011 at Mount Abu (Rajasthan) which was received by Shri Bal Kishan Chandora, General Manager (Mining) EE/Rajbhasha Pramukh. 33.11 Koyal, a Hindi magazine of Ministry of Coal, Govt. of India was published from WCL on 20.12.2011.
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34. 34.1
ENVIRONMENT AND ECOLOGY: Your Company is aware of its responsibilities towards the environment and ecology aspects of project management and is taking due care for Environmental Protection and Pollution mitigative measures in all operating mines. Status of the different activities under environment management as on 31-03-2012 is as under:
completion of Public Hearing. These EMPs were submitted to Ministry of Environment & Forests (MOEF), Govt. of India for obtaining Environmental Clearance in respect of Kolgaon OC Expn., Bellora Naigaon Deep OC, Ukni Deep OC, Ghonsa OC Expn. and Chhinda OC Expn. B) The company has received Environmental Clearance for 6(six) projects/mines namely Dinesh (Makardhokra III) OC (3.00 MTPA), Kolgaon OC Expn.(0.60 MTPA), Sharda UG (0.315 MTPA), Ghonsa OC Expn. (0.45 MTPA), Bellora Naigaon Deep OC(1.25 MTPA) and Durgapur OC Expn.(3.00 MTPA) during the year 2011-12 as per EIA Notification, 2006.
34.1.1 Environmental Impact Assessment (EIA)/Environmental Management Plans (EMPs) for new Projects/ Existing Projects Status of Environmental Clearance : (A) During the year 2011-12, a total of 5 (five) nos. EIA/EMPs were prepared as per Terms of Reference (TOR)granted by MOEF and after
Environment concern - Dust suppression through water sprinklers on the road in one of the project of WCL
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34.1.2 Public Hearing : The company has conducted Public Hearings through State Pollution Control Board for 12 (twelve) nos. of projects given hereunder during the year 2011-12 :i) Kolgaon OC Expn. ii) Ghonsa OC Expn. iii) Ukni Deep OC, iv) Dhuptala OC vii) Tawa III UG viii) Tawa II UG Expn. ix) Murpar UG Expn. x) Chhinda OC Expn.
34.1.5 Research and Development Activities concerning Environment and Ecology Your Company had taken up R&D study for Development of suitable biological waste water treatment technology through constructed wet land for treatment of Acid mine discharge of Maori Mine, Kanhan Area through CMPDIL, Ranchi - The study has been completed in 2011-12. 34.2 Afforestation Five year Plantation Contract finalized and awarded to State Forest Corporations namely Forest Development Corporation of Maharashtra(FDCM) and Madhya Pradesh Rajya Van Vikas Nigam(MPRVVN) for planting 12.40 lakhs saplings from 2009 10 to 2013 14 covering about 500 ha of land. In the Year 2011-12, a total of 2,26,000 numbers of tree saplings have been planted in the mining and adjoining areas through these agencies and also by distribution of saplings to employees and villagers. 34.3 Other Environmental Mitigation Measures completed in 2011-12 Following pollution control measures have been completed during the year 2011-12 : 1) Land Reclamation monitoring through Remote Sensing Technique Following10 major OCPs producing more than 5 million cubic meter (Coal + OB) have been completed during 2011-12 and are being monitored by CMPDIL every year.
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v) Dhorwasa OC Expn. xi) Ganpati UG Expn. vi) Telwasa OC Expn. xii) Penganga OC
34.1.3 Terms of Reference (TOR) The company has received Terms of Reference (TOR) as per EIA Notification, 2006 for the following 7 (seven) nos. of projects during the year 2011 12 from Ministry of Environment & Forests, Govt. of India. i) ii) Ganpati UG Expn. Sakhri Irawati (Pauni III)OC
iii) Chhinda OC Expn. iv) Murpar UG Expn. v) Shivani OC vi) Juna Kunada OC Expn. vii) Gandhigram UG 34.1.4 Implementation of EMPs approved by MOEF The projects having EMPs approved by MOEF are implemented and the reports on compliance of MOEF stipulations as given in the respective Environmental Clearances (ECs) are submitted every six months to IA Division, MOEF, New Delhi and Regional Office, Western Region, Bhopal.
i) ii)
Sasti OC Durgapur OC
iii) Padmapur OC iv) Niljai OC v) Mungoli OC vi) New Majri OC vii) Umrer OC viii) Ukni OC ix) Pimpalgaon OC x) Ghughus OC 2) Workshop Effluent Treatment Plant at Inder OCP has been commissioned and made operational in 2011-12. i)
at HQ, Area Levels and Project Levels. The activities undertaken during the week long celebration were as follows:Pledge on Environment Protection as per UN- theme FORESTS : NATURE AT YOUR SERVICE taken by all employees both at Corporate (HQ) and at all areas.
ii) Organizing various competitions among wards of employees viz. Drawing, Slogan, Prasna Manch (Quiz on Environment) etc. iii) Organising talk on Environment by Outside Experts iv) Plantation & distribution of plants v) Awareness on environment through Rallies
34.4 Environmental Awareness Environment Week (June 1 7, 2011) and World Environment Day on 5th June, 2011 were observed in your Company
Smt. Shashi Garg, President, Jhankar Mahila Mandal of WCL handing over solar system to Panchwati Vridh Ashram
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35. ACTIVITIES OF VIGILANCE DIVISION DURING 2011-12 : 35.1 Preventive Vigilance : In order to increase transparency in dealing with Public matters, online complaint handling system has been introduced in this financial year. Now a common man can make complaint on line and the complaint is being processed on line. It is an effort towards making the office paperless and also to reduce data redundancy. It has three users interfaces where a complaint and top most official of the company can directly look into the compaint. All tenders irrespective to its value are being uploaded on the companys web site. There compendiums covering all latest circulars from CVC, consolidated documentation of CTEO activities and technical error prone activities have been published and distributed for the benefit of the officers dealing with similar tasks. 23 surprise inspections by the Vigilance Department on its own. 14 CTE type inspection had been carried out and as it outcome, 03 nos. of Internal circular on preventive maintenance have been issued on the initiation of Vigilance Department. The circulars issued suggested improvement in practices and procedures on method of deduction and handling of CMPF and its HBA claim. 35.2 Punitive Vigilance : As punitive vigilance 351 investigations were taken up out of which, 234 have been completed. The vigilance activities have resulted into a total 67 Regular Departmental Actions (RDA). 11 inquiries have been completed and 08 numbers of penalties under major penalty proceedings have been imposed. In addition 2 officers have been cautioned/ warned to remain careful in future. 35.3 Other activities like observance of Vigilance Awareness Week, preparation
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of Agreed List and Officer of Doubtful Integrity list and rotation of employees on sensitive posts have been carried out. Close liaison with Central Bureau of Investigation and Central Vigilance Commission has been maintained. In addition, 8467 number of vigilance clearance to Executives and Nonexecutives were issued. 36. DIRECTORS : 36.1 The following persons continued to be the Directors of your Company during the year under report : 1. Shri D. C. Garg, Chairman-cumManaging Director 2. Shri A.K. Bhalla, Director 3. Shri R. Mohan Das, Director 4. Dr. Ahindra Chakrabarti, Director 5. Ms. Lalitha Kumar, Director 6. Shri Vinod Somani, Director 7. Shri Arun Balakrishnan, Director 8. Dr. D. Chandrashekharam, Director 9. Shri B.K. Saxena, Director (Tech.) OP 10. Shri Om Prakash, Director (Tech.) P&P 11. Shir Sushil Behl, 36.2 Shri Rupak Dayal was appointed as Director (Personnel) of your Company w.e.f. 28.09.2011, during the year under report. 36.3 Shri O.P. Miglani, Director (Personnel) ceased to be Director of your Company w.e.f. 02.05.2011, during the year under report. 37. Corporate Governance in WCL : 37.1 Companys Philosophy : 37.1.1 Corporate Governance is a commitment backed by transparency in functioning, value and mutual trust among all the constituents of an
organization. It is a self-imposed discipline which guides the management and employees to function towards the goal of the organization. It involves essentially a creative, generative and positive thinking activity that adds value to the stakeholders. 37.1.2 In your Company, Corporate Governance philosophy stems from our belief that Corporate Governance is a key element in improving efficiency and growth as well as enhancing outsiders confidence. We are making continuous efforts to adopt the best practice in Corporate Governance and we believe that the practice we are putting into place for the company shall go beyond adherence to regulator framework. 37.2 Board of Directors :
the Board wide range of experience and skill. 37.3 Board Meeting : The meeting of the Board of Directors are normally held at the Companys registered office at Nagpur. The Company has defined procedure for meeting of the Board of Directors and Committees thereof so as to facilitate decision making in an informed and efficient manner. 8 (eight) Board meetings were held during the financial year 2011-12 on 07.04.2011, 21.05.2011, 28.07.2011, 20.10.2011, 09.11.2011, 05.01.2012, 02.02.2012 and 31.03.2012 respectively. Details of number of Board meetings attended by Directors are tabulated below:Sl. Directors No. Meetings No. of Number of held during Board Committee respective Meetings membership tenure of attended in theCompany Directors in 2011-12
As As Chairman Member
37.2.1 Size of the Board : In terms of Articles of Association of the Company, strength of our Board shall not be less than three Directors and more than fifteen Directors. These Directors may be either whole time Functional Director or Part-time Directors. 37.2.2 Composition of the Board : As on 31st March, 2012, the Board comprised twelve Directors, out of which five are whole time Functional Directors including the Chairmancum-Managing Director. Two Directors are nominees of the Government of India. The Board also has five Independent Directors who have been appointed by the Govt. of India through a Search Committee constituted for the purpose. In addition to this, Government has nominated two representatives each from Govt. of Madhya Pradesh and Central Railway as Permanent Invitees on the Board of WCL. The Directors bring to
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Functional Directors : 1. Shri D.C. Garg, Chairman-cum-Mg. Director 2. Shri O.P. Miglani, Director (Personnel) 3. Shri B.K. Saxena, Director (Tech.) Operations 4. Shri Om Prakash, Director (Tech.) Planning & Projects 5 Shri Sushil Behl, Director (Finance) 6. Rupak Dayal Director Personnel 7. 8. Government Directors : Shri A.K. Bhalla, Jt.Secretary, Ministry of Coal Shri R. Mohan Das, Director (P&IR), Coal India Limited. Independent Directors : Dr. Ahindra Chakrabarti, Professor, IMI, N. Delhi. Ms. Lalitha Kumar, Former IAS Officer Shri Vinod Somani, Chartered Accountant. Shri Arun Balakrishnan, Former CMD, HPCL. Dr. D. Chandrasekharam, Professor, IIT, Mumbai.
8 1 8 8 8 5
8 1 8 8 8 5
1 2
4 2 2 1
9. 10. 11. 15. 16.
8 8 8 8 8
6 4 6 4 5
1 1 -
1 1 1 1
37.4
Information placed before the Board of Directors :
Board has complete access to any information within the Company. The information regularly supplied to Board includes :- Annual operating plans and budgets and any update. - Capital budget and any update. - Quarterly result of the Company. - Annual Report, Directors Report etc. - Minutes of the meetings of all Board Sub-committees. - Fatal or serious accidents, dangerous occurrence etc. - Operational highlights. - Award of large contracts. - Major investment, joint venture etc. - Disclosure of interest by Directors about Directorship and position occupied by them in other companies. - Non-compliance of any regulatory, statutory requirement. - Utilization of equipment. - Other materially information. 37.5 Audit Committee : important
c) Reviewing the adequacy of internal audit function. d) Discussions with internal auditors any significant findings and follow up thereon. e) Discussions with Statutory Auditors. 37.5.1.2 Constitution : The Audit Committee has been constituted with the membership of : i) Five Independent Directors, one being the Chairman of the Audit Committee and ii) Director (P&IR), Coal India Limited, nominated on the Board of WCL. iii) Director (Technical) OP 37.5.1.3 Composition : During the year, Audit Committee of the Company comprised of seven Directors, five of which were Independent Directors, one Govt. Director and one Functional Director. During the year, the Audit Committee comprised the following :Shri Vinod Somani, Non-official Director Shri R. Mohan Das, Govt. Director - Chairman - Member
Dr. Ahindra Chakrabarti, - Member Non-official Director Ms. Lalitha Kumar, Non-official Director - Member
37.5.1 The scope, constitution etc. of the Audit Committee is in line with the guidelines of Corporate Governance. 37.5.1.1 Scope of Audit Committee : a) Ensure compliance of internal control system. b) Reviewing, with the management, the financial statements before submission to the Board for approval.
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Shri Arun .Balakrishnan, - Member Non-official Director Dr. D. Chandrasekharam, - Member Non-official Director Shri B.K. Saxena, Director (Technical) OP - Member
Director (Finance) also attended the meetings of the Audit Committee as invitee.
37.5.1.4 Meeting and Attendance : Consequent upon appointment of 4 Independent Directors w.e.f. 24.02.2011, Audit Committee was re-constituted in 230th Board meeting of WCL held on 07.04.2011 and only 7 (seven) meetings of the Committee were held during the year 2011-12. The details of Audit Committee meetings attended by members are as under :Member of Audit Shri Vinod Somani Shri R. Mohan Das Dr. Ahindra Chakrabarti MS. Lalitha Kumar Shri Arun Balakrishnan Dr. D. Chandrasekharam Dr. B. K. Saxena Meetings held during his/her tenure Meetings attended 7 7 7 7 7 7 7 6 6 5 7 2 5 7
37.6.2 Details of payment made towards sitting fees to Non-official Directors during the year 2011-12 are given below :Sl. Name of the No. Independent Directors Sitting Fees paid for attending Board Committee Meeting Meeting Rs. 90,000/Rs.60,000/Rs.60,000/Total amount
1. Dr. Ahindra Chakrabarti 2. MS. Lalitha Kumar 3. Shri Vinod Somani 4. Shri Arun Balakrishnan
Rs. 75,000/- Rs. 1,65,000/Rs. 30,000/Rs. 30,000/Rs. 90,000/Rs. 90,000/-
Rs.90,000/- Rs. 1,05,000/- Rs. 1,95,000/Rs. 75,000/- Rs.1,50,000/-
5. Dr. D. Chandrasekharam Rs. 75,000/-
37.7 General Body Meetings / Annual General Meetings : Date, time and locations where the last three Annual General Meetings were held are as under:/
Date : Time : Venue : July 24, 2009 04.30 A.M. Coal Estate, Civil Lines, Nagpur. May 15, 2010 1.30 P.M. Coal Estate, Civil Lines, Nagpur. May 27, 2011 1.00 P.M. Coal Estate, Civil Lines, Nagpur
37.6 Remuneration Committee Remuneration of Directors :
37.6.1 Your Company, being a Central Public Sector Undertaking, the appointment, tenure and remuneration of Directors are decided by the President of India. Hence, the Board does not decide remuneration of the Directors. Independent Directors are paid only sitting fees at the rate fixed by the Board within the ceiling fixed under the Companies Act, 1956 for attending the Board Meetings as well as Committee Meetings. Details of remuneration of Functional Directors of the Company are as under :Name Shri D.C. Garg Shri O.P. Miglani Shri B.K. Saxena Shri Om Prakash Shri Sushil Behl Designation CMD 2011-12 Salary Perquisites* 24,39,355 Total
Special Resolutions :
37.8
Disclosure : As per the disclosure given by the Directors of the Company, there were no material related party transactions that have potential conflicts with the interest of the Company. The financial statements are prepared in accordance with applicable mandatory Accounting Standards and relevant presentational requirement of the Companies Act, 1956.
(Figs. in Rs.)
37.9
14,50,001 38,89,356 7,19,374 20,61,097 1,84,877 20,27,331 2,43,710 20,75,407 2,01,054 19,37,850 76,500 8,79,292
Director (Pers.) 13,41,723 Director (T) OP 18,42,454
Director (T) P&P 18,31,697 Director (Fin.) 17,36,796 8,02,792 99,94,817
Shri Rupak Dayal Director (Pers.) Total
28,75,516 128,70,333
* Includes PF and Medical reimbursement.

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Audit Qualifications : It is always the Companys endeavour to present unqualified financial statement. Management reply to the Statutory Auditors observations on the Accounts of the Company for the year ended March, 2012 are furnished as an Annexure to the Directors Report. Comments of the Comptroller and Auditor
General of India under Sec. 619(4) of the Companies Act, 1956 on the Accounts of Western Coalfields Limited for the year ended 31st March, 2012 is also enclosed. 37.10 Whistle Blower Policy : Your Company is a fully owned subsidiary of Coal India Limited. Coal India has prepared and adopted Whistle Blower Policy which is also applicable to all its subsidiaries. Apart from that, your Company has an independent Vigilance Branch, headed by a Chief Vigilance Officer. The Vigilance Branch, functioning under the overall guidance of Central Vigilance Commission, mainly lay stresses on preventive vigilance. Drop Box has been kept, where employees and others can report to the Vigilance Branch, concerns about unethical behaviour, actual or suspected fraud etc. and the complaints so lodged are reviewed by the Vigilance Branch and necessary action, as deemed fit, is taken while protecting the identity of the complainants. 38. AUDITORS : In exercise of the powers conferred by the Company at the Extraordinary General Meeting held on 30th August, 2001, pursuant to provisions of section 224(8) of the Companies Act, 1956, the Board of Directors in its 233rd meeting held on 20 th October , 2011, fixed the remuneration of Statutory and Branch Auditors appointed by the Comptroller and Auditor General of India, under section 619(2) of the Companies Act, 1956 for the financial year 2011-12. In addition
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WESTERN COALFIELDS LIMITED to the annual audit , the Board of Directors appointed auditors for carrying out review of 1st Quarter Accounts ended on 30.06.2011, half yearly accounts ended on 30.09.2011 & 3rd Quarter Accounts ended on 31.12.2011 and fixed the remuneration at its 232nd meeting held on 28 th July, 2011 for 1 st Quarter Accounts, 233 rd meeting held on 20th October, 2011 for half yearly and 3 rd Quarter Accounts. The details of Auditors, their fees and other expenses approved is as under :Statutory/Branch Auditors Audit Fee TA/DA and out-ofpocket expenses At actuals , subject to maximum of actual fare plus DA for Partners / qualified assistants @ Rs.140/- per day and for audit assistants @ Rs.120/- per day for the actual man days engaged for audit of Areas/ offices situated outside Nagpur city.
Rs. 4,20,625/- for annual A Statutory Auditors : a/cs , Rs. 105156/- for 1st M/S C . R . Sagdeo & quarter a/cs and @ Co., Chartered Rs.105150/- each for half Accountants, Nagpur. yearly a/cs and 3rd Quarter a/cs plus S.Tax as applicable .In addition to the above , M/S. C . R . Sagdeo & Co. is appointed for MOU audit for the year 2011-12 at a fees of Rs.2,10,000/- plus S. Tax as applicable. B Branch Auditors : M/S. Jodh Joshi & Co., Chartered Accountants , Nagpur.
Rs. 2,25,000/- for annual a/cs and @ Rs. 56,250/each for 1st quarter a/cs , half yearly a/cs and 3 rd quarter a/cs plus S.Tax as applicable Rs. 2,25,000/- for annual a/cs and @ Rs. 56,250/each for 1st quarter a/cs , half yearly a/cs and 3 rd quarter a/cs plus S.Tax as applicable Rs. 1,75,000/- for annual a/cs and @ Rs. 43,750/each for 1st quarter a/cs , half yearly a/cs and 3 rd quarter a/cs plus S.Tax as applicable Rs. 10,45,625/- for annual a/cs and Rs. 2,61,406/- for 1st quarter , Rs. 2,61,400/for half yearly and Rs. 2,61,400/- for 3 rd quarter a/cs plus S.Tax as applicable.
- do -
M/S. A . S . Dani & Co., Chartered Accountants , Nagpur.
- do -
M/S. Chandak, Khanzode and Shenwai , Chartered Accountants , Nagpur. Total
- do -
ANNUAL REPORT 2011-12 39. MEMORANDUM OF UNDERSTANDING BETWEEN WCL & CIL FOR THE YEAR 2011-12 :
As per the extant guidelines of DPE, Memorandum of Understanding (MoU) between WCL & CIL for the year 2011-12 was signed on 31st March 2011. Performance of MoU 2011-12 (both financial & Non-financial parameters) during the year has been verified and duly authenticated by the independent auditor appointed for the purpose. Parameterwise performance vis--vis MoU target is enclosed as Performance Evaluation Report (Annexure III). 40. FIXED DEPOSITS : Your Company has not accepted any fixed deposits from public during the year 2011-12 , as defined under section 58-A of the Companies Act, 1956 and the rules made thereunder. 41. DIRECTORS RESPONSIBILITY STATEMENT : Pursuant to the requirement under section 217(2AA) of the Companies Act, 1956, with respect to Directors Responsibility Statement, it is hereby confirmed : i) That in the preparation of the Annual Accounts for the financial year ended 31st March, 2012, the applicable Accounting Standards have been followed along with proper explanations relating to material departures; That the Directors have selected such Accounting Policies and applied them consistently and made judgements and estimates that were reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for the year under review;
56
iii) That the Directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; iv) That the Directors have prepared the accounts for the financial year ended 31st March, 2012 on a Going Concern basis. The accounts of your company would be available at the Headquarter of the Company for providing information to the shareholders of the CIL on demand if any 42. 42.1 ACKNOWLEDGEMENTS : Your Directors express their gratitude to the Ministry of Coal, Government of India and Coal India Limited, for their valuable assistance, support and guidance from time to time. The Directors thank various Ministries of the Central Government and the State Governments of Maharashtra and Madhya Pradesh for their valuable support. The Directors also take this opportunity to acknowledge with thanks the assistance rendered by the sister organisations and Directorate General of Mines Safety. Industrial Relations in the Company continued to be cordial. The Directors place on record their appreciation for the co-operation extended by the Trade Unions and Officers Association and all Steering Committee Members, Officers of Ministry of Labour and the team spirit shown by the employees at all levels towards the achievement of the objectives of the Company.
42.2
42.3
42.4
ii)
42.5
The Directors record the appreciation of services rendered by Statutory and Branch Auditors and the Officers and Staff of Comptroller & Auditor General of India, Department of Company Affairs, Company Law Board and Registrar of Companies, Maharashtra. The Directors also extend their thanks to various important citizens of Nagpur, Maharashtra and Madhya Pradesh States, stationed in the Coalfields for their co-operation from time to time and also to the Steering Committee of WCL comprising of Trade Union representatives and Management.
Absorption and Foreign Exchange Earning & Outgo is given in AnnexureI to this report. 43.3 A statement showing names and other particulars of those employees of the Company who were in receipt of remuneration of not less than Rs.60,00,000/- during the financial year 2010-11 or Rs.5,00,000/- per month in compliance of the provisions of section 217 (2-A) of the Companies Act, 1956 and Companies (Particulars of Employees) Rules, 1975 is furnished in Annexure-II to this report. Corporate Governance Certificate, in compliance of conditions of Corporate Governance, from Practising Company Secretary. Addendum to the Directors Report under section 217 (3) of the Companies Act, 1956. Comments of the Comptroller & Auditor General (C&AG) of India under section 619 (4) of the Companies Act, 1956.
42.6
43.4
43. ADDENDA : 43.1 43.2 The following papers are annexed : In pursuance to the provisions of section 217(1)(e) of the Companies Act, 1956, read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, information in regard to the Conservation of Energy, Technology 43.5
43.6
For and on behalf of Board of Directors
NAGPUR DATED : 25th May, 2012
( D.C. Garg ) CHAIRMAN-CUM-MANAGING DIRECTOR
57
ANNEXURE-I TO DIRECTORS REPORT Information in accordance with the provisions of section 217(1)(e) of the Companies Act, 1956 read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988 regarding Conservation of Energy. Technology Absorption and Foreign Exchange Earning & Outgo. A. (a) Conservation of Energy : Energy Conservation measures taken under the head of Electrical Energy, are given as under :1. ADDITION OF CAPACITORS TO IMPROVE AND MAINTAIN THE POWER FAC TOR ABOVE 0.95. 2. STAGGERING OF PUMPING OPERATIONS 3. ELIMINATING STAGE PUMPING / RE-ORGANISATION OF PUMPING. 4. USE OF ENERGY EFFICIENT TUBES/ CFL IN PLACE OF HIGH WATT LUMINAIRES/ CONVENTIONAL FITTINGS. 5. USE OF ENERGY SAVER & TIMER IN STREET LIGHT CIRCUIT 6. INSTALLED DEMAND CONTROLLERS IN MAIN CONTROLLING SWITCHES TO KEEP THE DEMAND WITHIN LIMIT. 7. REPLACEMENT OF OVER RATED MOTORS 8. LOAD SHEDDING ON DOMESTIC FEEDERS 9. REDUCE THE IDLE RUNNING OF CHP 10. CLEANING OF BELT CONVEYOR & REPLACEMENT OF DEFECTIVE IDLERS TO REDUCED FRICTION LOSSES. 11. ADOPTION OF FRP BLADE IN PLACE OF METALLIC BLADE OF MAIN CHANICAL VENTILATION FAN. (b) ME
Additional investments and proposals if any being implemented for reduction of con sumption of energy for electrical energy : An amount of Rs 12.00 lakhs was invested towards the purchase of capacitors for improving and maintaining power factor.
(c)
Impact of measures taken at (a) & (b) above for reduction of energy consumption and consequent impact on cost of production
58
Particulars Consumption of energy per ton of coal production KWH/TON KWH/CUM (Coal+O.B) B. C.
2011-12
2010-11 % increase/ decrease
Impact on cost of production However, power cost per ton increased from Rs 82.66 to Rs92.25 due to the upward revision in tariff by power supply agencies of M.P. And Maharashtra
14.22 4.08
15.11 4.58
-5.9 (Decrease) -10.9 (Decrease)
Form 'B' is enclosed. Foreign Exchange Earning & Outgo : (i) Activities relating to exports , initiatives taken to increase exports , development of new export markets for products and services and export plans : Company is not engaged in export activities . (ii) Total Foreign Exchange used and earned :
Particulars (A) (B) i) Foreign Exchange earned : Foreign Exchange used : C.I.F Value of Imports a) Raw materials b) Components, Stores & Spare Parts c) ii) iii) iv) v) vi) Capital Goods
Current year
Previous year 0.00
000 7.14 0.00 9.03 5.88 14.32 0.04 3.20
0.00 3.12 0.00 7.97 5.21 6.23 0.02 3.29
Repayment of JEXIM Loan Repayment of IBRD Loan Effect of Exchange fluctuation Travelling Expenses Interest/Commitment/Agency charges etc of IBRD/JEXIM (including swap cost)
59
Form B Disclosure of Particulars with respect to Technology Absorption: A. TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION : Efforts, in brief, made towards technology absorption, adaptation and innovation : Concerted efforts are being made for technology absorption, adaptation and innovation and various scientific studies in the sphere of mining with due emphasis on safety, environment control, conservation and quality improvement, details of which are furnished below : Underground Coal Gasification Your Company has identified a block, Thesgora "C" to study the feasibility of introduction of Underground Coal Gasification, one of the two projects undertaken by CIL for which CMPDIL is carrying out bidding. CMPDIL HQ, the nodal company for UCG projects, is taking appropriate action for retendering. B. MINING TECHNOLOGY : 1. CONTINUOUS MINER TECHNOLOGY Continuous Miner Technology is under operation at two UG mines of WCL : 1. Tandsi 1 & 2 2. Kumbharkhani Mine Two operating mines namely Maori & Saoner-I mines were identified for further introduction of the technology and accordingly tenders were floated and evaluated. Maori tender was cancelled as L1 idder was not ready for extension of bid validity. The TCR for Saoner-I's tender is under consideration for Competent approval. 2. LONGWALL MINING/ MASS PRODUCTION TECHNOLOGY Three Coal Blocks namely Nand (1 MTY), Murpar Expansion (2MTY) and Borda Block (2 MTY) have been identified for development as high capacity underground mines. Standard Global bid document as provided by CIL is under modification for retendering. The proposed deviations from CIL's bid document are under process of Competent Approval. After approval of deviations the same shall be incorporated in the bid document and shall be taken up for retendering. 3. APPLICATION OF MAN RIDING SYSTEM IN UG MINES: Man Riding System has been successfully installed and is under operation during 2011-12 in following mines :
60
1. Saoner-I, Nagpur
Chairlift Manriding System Chairlift Manriding System
2. Sobhapur, Pathakhera Area -
In all 4 nos. of UG mines, wherein the workings are deep and far from the surface has been provided with Man Riding System in WCL. The system reduces traveling time and fatigue of workers who work with increased efficiency and renewed vigor. Further, the consignment for Man Riding System has been received and are under installation in following UG Mines : 1. Tawa 2. Ballarpur 3 and 4 3. Sobhapur 4. Kumharkhani Chairlift Manriding System Chairlift Manriding System Rail Car Manriding System Rail Car Manriding System
Introduction of Man Riding System in Saoner-II has been approved by WCL Board. Tender is under finalization. 4. UNIVERSAL DRILLING MACHINES Your Company has played leading role to mechanize face drilling as well as drilling for roof support. In this regard, 14 nos. UDMs have been added and put in operation during 2011-12, resulting in total numbers of machines as 32. After introduction of UDM, there is improvement in blasting efficiency of the mine, thereby increasing Coal availability and also significant improvement in green zone support with added safety. 5. NON-COKING COAL WASHERY One 5 MTY capacity Non- Coking Coal Washery is being planned to be set up in WCL at Wardha Valley to provide washed coal to power utility. Two numbers of tentative sites were proposed but was not considered due to one being on coal bearing area and other was not found suitable by CMPDIL (HQ) being below HFL. Alternative sites are being explored for further necessary action in this regard. The action bas been taken by CIL for Common Centralised Request For Qualification (CCRFQ) by floating tender for eleven washeries of all the subsidiaries including this Washery and shortlisting of bidders has been done.
61
Annexure III Memorandum of Understanding between WCL & CIL for the year 11-12
Evaluation Criteria Unit Weight MoU Target (%) (V Good) Performance (Apr 11-Mar 12)
(a)
(b)
(c)
(d)
Static/Financial Parameters Financial Indicators - Profit related ratios (i) Gross Margin / Gross Block (ii) Net Profit / Net Worth (iii) Gross Profit / Capital Employed Financial Indicators -Size related (i) Gross Margin (ii) Gross Sales Financial Returns- Productivity related (i) PBDIT / Total Employment (ii) Added Value / Gross Sales Dynamic Parameters Quality & Customer Satisfaction d1 Quality Despatch of Coal to power sector by rail (i) Sized coal % (ii) Weighed on electronic weighbridge before despatch d2 Customer Satisfaction (i) Despatch covered under agreed sampling to power sector (ii) Approval of conceptual report for construction of washery
2 10 10 Rs Crs Rs Crs 8 4 7 9
0.2087 0.1486 0.2765 1005 7688 0.0176 0.0944
0.3458 0.2621 0.4880 1552.85 8434.59 0.0272 0.1511
1 % % Till Month
98 1 1 1
100 98 98
99.95 100
Mar-12 CMPDIL has opined that proposed site isnot suitable for construction of washery.New site to be selected
(e) (i) (ii) (iii)
Human Resource Development Executives to be trained (Total executives on roll on 1st Apr, 2011 - 2202) {Approx} Certified training in Project Management Certified training in Contract Management
(f)
(iv) Training of Medical Professionals in Occupational Health & Safety (v) Representation of Minority Member in Recruitment Committees R & D / New initiatives (i) Design of method of minning & roof stability at Mathani UG at Pench Area report thereof (ii) Conducting investigation for improvement in ventilation as well as reduction in possibility of occurance of spontaneous heating in Silewara UG report thereof (iii) Conducting investigation for improvement in ventilation as well as reduction in possibility of occurance of spontaneous heating in Kumbharkhani UG report thereof
% No. of Executives No. of Executives No. of Executives %
1 1 1 1 1
9 4 4 3 90
31.10 7 8 6 100
Till Month Till Month
2 2
Mar-12 Mar-12
Mar-12 Apl-11
No
Mar-12
Apl-11
64

Evaluation Criteria Unit Weight MoU Target (%) (V Good) Performance (Apr 11-Mar 12)
(g) g1 (i) g2 g3 g4 (i) (ii) (ii) (ii)
Project Implementation Capacity creation through approval of new/ Expansion projects Stage-I Board approval for initiating applications for clearances to be granted byMoEF Commissioning/completion of New/Expn projects Acquisition & procession of land Major Project Activities Incremental Production from ongoing projects Other major activities (a) Revision/Modification of long term action plan including Master Plan. (b) To achieve production level of 0.40 million.tonnes. from JunadExtn.OC (Ongoing Projects)
Mt No Ha Mt Till Month Till Month
1 1 1 1 1 1
5.50 1 190 0.75 Oct-11 Mar-12
8.25 1 332.387 3.4372 Sept-11
( ii) (c ) ( ii) ( d) (h) (i) (ii) (iii)
(iv) (v) (vi) (vii) (viii) (i) (i) (ii) (iii) (iv) (v) (j) (i)
(ii)
Preperation of Master Control Network of projects Online updation of project DataBase maintained at MOSPI ( Projects costing more than 150 Crores ) Corporate Social Responsibility Medical camp for general health checkup, Eye and family welfare No of Benificiaries in Medical Camp Deaddiction programme among departmental workers contractor workers engaged in transport and local populance against alcoholism and drugs No of Beneficiaries in Deaddiction programmes. Provision of hand pumps to provide drinking facilities. Provision of classrooms in school for providing education. Provision of Mobile Ambulance Vans Coaching camp for promotion of sports Sustainable Development Conducting workshop for awareness on sustainable development Tree Plantation Effluent Treatment Plants (New/To make operative) Accreditation of ISO 14001 certificates: Coverage of major OC projects for land restoration and reclaiming through servelliance Corporate Governance Compliance of Corporate Governance as per Corporate Governance Guidelines issued by DPE as applicable to WCL Submission of data for Public Enterprises
Nos. Nos.
1 1
Achieved production level of 0.40 mt in Nov-11 (produced 0.60 m.t upto Mar-12 7 Implemented. 1 Implemented.
No of camps No of benificiaries No of camps
0.5 0.5 0.5
100 4950 4
159 22717 12
No of beneficiaries. Nos. (No of beneficiaries) Camp Nos. Nos. Nos. Lakhs Nos. No of Mines Nos.
0.5 1 1 0.5 0.5 1 1 1 1 1
95 50 7 1 18 1 2.26 1 1 4
1062 67 11 2 24 2 2.26 1 1 10
(%)
90
100
Date
1st Oct 11
Submitted on 07.09.2011
65

Evaluation Criteria Survey published by DPE (in line with DPE's Directive) Sector Specific Parameters: (i) Off-take * (ii) Coal Production ( Commensurate to corresp onding offtake programme) (iii) Underground Production Enterprise- Specific Parameters: 4-a E-Auction of Coal 4-b Man productivity (Output /Man shift) ( Commensurate to corresponding Production Target) System Capacity Utilization ( Commensurate to corresponding Production Target) Safety Reduction in fatality rate (fatalities/ Mcum. of total material excavated) w. r. t previous FY. Reduction in serious injury rate (seriuos injuries/ Mcum. of total material excavated) w. r. t previous FY. Unit Weight MoU Target (%) (V Good) Performance (Apr 11-Mar 12)
Mt. Mt. Mt. % of Production Te/Man shift %
4 3 1 1 1 1
45.50 45.50 9 9 2.54 97
41.967 43.110 8.390 15.49 2.70 102.49
4-c 4-d (i)
0.5
2.60
38.41
(ii)
0.5
2.60
49.28
REMARKS : (i) (ii) * -- Railway Rake Availability is a major issue in actualization of performance target. Financial Ratios arrived are based on old Schedule VI format as per the Companies Act 1956 without considering the impact of NCWA- IX & change in coal pricing policy from UHV to GCV based system.
66
67
68
69
ADDENDUM TO DIRECTORS REPORT UNDER SECTION 217(3) AND 227(2) OF THE COMPANIES ACT 1956
AUDIT OBSERVATION 1. We have audited the attached Balance Sheet of WESTERN COALFIELDS LIMITED as at 31st March 2012, and also the Statement of Profit and Loss and Cash Flow Statement for the year ended on that date annexed thereto. The financial statements audited by us incorporate the accounts of :a) 5 Areas / Units audited by us and b) 11 Areas / Units audited by Branch Auditors The reports of Branch Auditors have been furnished to us and have been appropriately dealt with by us in preparing this report. Our opinion, in so far as it relates to the amounts included in financial statements in respect of those Areas, is based solely on the reports of the Branch Auditors. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with the Auditing Standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditors Report) Order, 2003 as amended by the Companies (Auditors Report) (Amendment) Order, 2004, issued by the Central Government of India in terms of sub-section (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure A a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4. Further to our comments in the Annexure referred to paragraph 3 above, we report that:a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; b) In our opinion, except that :Accrual basis of accounting as required under section 209 (3) (b) of the Companies Act, 1956 has not been followed in respect of the following :
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MANAGEMENT REPLY No Comments
No Comments
No Comments
No Comments
No Comments
i)
Liquidated damages, interest on delayed payments and escalation claims from customers are accounted for on the basis of final settlement.
ii) Insurance / Railway claims are accounted for on admission / final settlement. iii) Sale of scrap is accounted on realisation. iv) Refund / adjustment of tax from tax authorities except Input Tax Credit claim on VAT are accounted for on cash basis. Additional demand for Income Tax, Royalty, Cess, Sales Tax, Entry Tax, etc., are accounted for after final orders in appeals are received. Pending such appeals, payments made against additional demands are treated as advance / claims receivables. v) Land under Coal Bearing Area [CBA (A&D)] Act is accounted for on payment basis, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books and proper returns adequate for the purpose of our audit have been received from the Areas not audited by us. c) The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account and with audited returns received from the Areas. d) In our opinion, the Balance Sheet, Statement of Profit and Loss and Cash Flow Statement comply with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956 to the extent applicable except as mentioned in para 4 (b) above. e) The clause g) of sub-section (1) of Section 274 of the Companies Act, 1956 is not applicable being a Government Company. f) Without qualifying our opinion, we draw attention to following notes appearing in Note 34 Additional Notes on Accounts :i) Additional Note No. 7 (f) regarding some of title deeds / lease deeds for land, buildings and mining rights still held in the name of Coal India Limited, pending transfer formalities. No Comments
No Comments
No Comments
No Comments No Comments
ii) Additional Note No. 7 (h) regarding physical verification of fixed assets as on 31.03.2003 and subsequent reconciliation done by an outside agency. However, the inter area adjustments is still under process. iii) Additional Note No. 8 (a) regarding Capital Work in Progress amounting to `.14.63 crores pending since more than 3 years.
No Comments
No Comments
71
iv) Additional Note No. 8 (b) regarding amount equivalent to depreciation provided on Plant & Machinery lying in stores for more than 3 years. v) Additional Note No. 8 (e) regarding Discarded / Surveyed off assets amounting to Rs..20.66 crores valued at residual 5% have not been physically verified. vi) Additional Note No. 10 (a) regarding advances to suppliers / contractors & for capital works / mobilization advances lying unadjusted since long amounting to Rs.1.93 crores against which provision of equivalent amount is made. vii) Additional Note No. 13 (a) regarding Madhya Pradesh Gramin Avsanrachna Tatha Sadak Adhiniyam 2005 (MP GATSV Act, 2005) collected from customers and fixed deposits made against that amount as per Court Order and also treatment of interest on such fixed deposits. viii) Additional Note No. 14 (e) regarding reduction in sales of Rs.77.11 crores due to change in coal pricing system from Useful Heat Value (UHV) based system to Gross Calorific Value (GCV) system. ix) Additional Note No. 15 (a) regarding provision made for pay, revision as per National Coal Wage Agreement (NCWA IX). x) Additional Note No. 15 (b) regarding provision made during the current year for Performance Related Pay for Executives for the year amounting to Rs.60.89 crores.xi) Additional Note No. 15 (d) regarding performance linked Reward Scheme for non executives for Rs.108.96 crores. xii) Additional Note No. 15 (e) regarding provision made during the year for Pension and Superannuation benefits to the employees amounting to Rs. 20.58 crores. xiii) Additional Note No. 16 (i) regarding booking of expenses pertaining to previous years amounting to less than Rs. 0.12 crores to current year expenses. xiv) Additional Note No. 16 (ix) regarding provision of mine closure amounting to Rs. 223.66 crores. xv) Additional Note No. 17 (f) regarding non-receipt of confirmations for sundry debtors, sundry creditors, advances from customer and other accounts payable. g) Further we report the following observations : i) As stated in Additional Note No. 7 (d), 7 (e) and 7 (f) of Note - 34 Additional Notes on Accounts, finalization of purchase
72
No Comments
No Comments
No Comments
No Comments
No Comments
No Comments
No Comments
No Comments
consideration of certain fixed assets is still pending, Assets taken over on Nationalization are not classified into proper sub-head within fixed assets. These have impact on reported figures of Gross Block of Fixed Assets, Accumulated Depreciation and Reserves & Surplus and also on the presentation of fixed assets. The impact however is not ascertainable. ii) As stated in Additional Note No. 7 (a) of Notes - 34 Additional Notes on Accounts certain Lands acquired are accounted for on payment basis only. The likely payment for the Lands in future, if any, are not accounted for until paid (even though the liability is accrued). This may result in understatement of Fixed Assets and corresponding liability. iii) The Company has not adjusted / reconciled stale cheques amounting of Rs.10.05 crores. However, the impact on the same on liabilities and profit of the Company is not ascertainable. h) In our opinion and to the best of our information and according to the explanations given to us, the accounts subject to para 4 (b) & 4 (g) above read with para 4 (f) above in particular and other notes appearing in Notes on Accounts and Accounting Policies of the Company forming part of accounts, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India : i) in the case of the Balance Sheet, of the state of the affairs of the Company as at 31st March 2012;
No Comments
Ladnd is accounted on possesssion.
Note for further action
No Comments
ii) in the case of the Statement of Profit & Loss, of the profit for the year ended on that date; and iii) in the case of Cash Flow Statement, of the cash flows of the company for the year ended on that date. FOR C. R. SAGDEO & CO CHARTERED ACCOUNTANTS F.R.N.: 108959 W
CA. SACHIN V. LUTHRA PARTNER Membership No. 109127 Place : NAGPUR Date : 20st May 2011
73
ANNEXURE A TO AUDITORS REPORT

Referred to in Paragraph (3) of our report of even date in respect of Western Coalfield Limited , Nagpur as on 31st March 2012. AUDIT OBSERVATION i) In respect of its Fixed Assets: [a] The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets, except for assets taken over from Coal Mines Authority on Nationalisation and those taken from Coal Mines Rescue Station and Coal Mines Labour Welfare Organisation, which have not been recorded. Some of the title deeds / lease deeds for land building and moving rights continue to be held in name of Coal India Limited. [b] As explained to us, all the assets as on 31.03.2003, have been physically verified by firms of Chartered Accountant / Outside Agencies for all areas except Head Quarters, Domestic Fuel Development (DFD) Plant and Commercial Blast Explosives (CBE) Plant. Their reports have been received, showing items of fixed assets found short / excess during physical verification. The management has appointed an outside agency to carry out detailed study and reconciliation of the discrepancies pointed out. At some of the area, report is submitted by outside agency on reconciliation of shortages / excesses of assets and the same still shows many un-reconciled items. However, pending reconciliation of items of fixed assets found short / excess and pending HQ approval, no adjustment has been made in the accounts of the Company for the year 201112. The discarded / surveyed off assets lying in stores which are valued at 5% residual value and capital Work in Progress (WIP) have not been physically verified. In respect of CBE Plant Bhandara, major items of fixed assets are stated to have been physically verified by the management of Ordinance Factory, Bhandara at reasonable intervals. No material discrepancy is reported to have been noticed on such verification. In respect of DFD Plant, Hinganghat, major items of fixed assets are stated to have been physically verified by the committee formed for purpose. No material discrepancy is reported to have been noticed on such verification.
74
MANAGEMENT REPLY
No Comments
Reconciliation is under progress.
Noted
No Comments
[c]
As per information and explanation given to us, all fixed Reconciliation is under assets of the value exceeding Rs. One lakh are physically process . verified departmentally at Area level during the year. Wherever the reports have been received the reconciliation is in progress and no adjustment has been made in accounts of the Company. There was no substantial disposal of fixed assets during No Comments the year.
[d]
ii) In respect of Inventory : [a] The management, at regular intervals, has conducted the No Comments physical verification of coal by adopting volumetric measures. The physical verification of stock of coal as on 31.03.2012 has been done by a team deputed by Coal India Limited. Physical verification of stores and spares of the Company has been conducted by the firm of Chartered Accountants and / or Cost Accountants appointed for the purpose. Physical verification of Units stores and stores Inventory at unit in transit have not been conducted. stores have been physically verified by management In our opinion and according to the information and explanation given to us, the procedures followed by the No Comments management for physical verification of stock are reasonable and adequate in relation to the size of the company and nature of its business. However, procedures of physical verification of stores and spares, needs to be strengthened, especially the procedure for identification of slow / non moving and obsolete items of inventory requires improvement. The company is maintaining proper records of inventory. No Comments In accordance with Companys policy as set out in Para 6 of Accounting Policies (Note 33), no adjustment is made in the books of accounts in case the difference between books stock of coal and volumetrically measured physical stock of coal is within (+/-) 5%, due to approximate nature of the method of measurement. As informed to us the discrepancy noticed on physical verification as compared to the book records were not material in relation to the operation of the company and have been duly dealt with .
[b]
[c]
75
iii) [a]
The company had taken unsecured loans under foreign currency standing to Rs.101.97 crores as on to 31.03.2012 from IBRD and JEXIM Bank as World Bank Loan through Coal India Ltd. and guaranteed by the Government of India, for purchase of HEMMs & spares. It is observed that the above balance of Loan outstanding as on March 31st 2012 is after an adjustment of Rs.14.32 crores net for giving effect of exchange fluctuation in both US $ and Japanese Yen. As followed pursuant to the agreement, regular payment of the principal and interest have been made at a rate which is not prejudicial to the interest of the Company. The company has not granted any loans to companies, firms or other parties listed in the Register maintained under section 301 of the Companies Act, 1956. The rate of interest and other terms and conditions of the above loans taken by the company are prima facie not prejudicial to the interest of the company. The company is regular in repayment of principal amount of above loans and interest thereon. There is no overdue amount in respect of principal amount of loans and interest thereon. In our opinion the Company has adequate Internal Control procedure commensurate with the size of the Company and the nature of its business with regard to Purchase of inventory, fixed assets and with regard to the Sale of goods, except that insurance cover of most of the fixed assets, excluding motor cars and on stock of stores and spares has not been taken by the company. Further in under mentioned cases the internal control needs to be strengthened : a. Follow-up of advances to suppliers, adjustment of certain advances against corresponding liability after receipts of items in some areas, transfer of stores to other areas and its accountal. b. Non receipt of confirmations of outstanding balances from customers, suppliers and contractors and timely reconciliation of balances in case of difference. c. Follow-up and adjustment of stale cheques.
No Comments
[b]
No Comments
[c]
No Comments
[d]
No Comments
iv)
Action will be taken for further improvement .
Noted for further necessary action.
76
v)
In respect of transaction covered under section 301 of the Companies Act, 1956. a) In our opinion and according to the information and explanation given to us, there are no transactions in pursuance of contract or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 aggregating during the financial year to Rs.5 lakhs (Rs. Five Lakhs only) or more in respect of any party. b) As there is no transaction with parties mentioned in register maintained under section 301 of the Companies Act, 1956, this clause is not applicable to the Company.
No Comments
No Comments
vi)
The company has not accepted any deposits from the Public, hence the directives issued by Reserve Bank of India and the provision of Section 58 A, 58AA or any other relevant provision of the Companies Act, 1956 and rules made there under are not applicable for the year under audit.
No Comments
vii) The Internal Audit System of the Company consists of Stores Audit and Internal Audit (including Wage Audit) which were conducted by the independent firms of Chartered Accountants / Cost Accountants. Observations in this regard are as under. 1. In few areas the branch auditors have reported that Internal Audit System needs to be strengthened as to coverage and follow up. 2. Further in many of the areas of the company the internal audit report for the period from Jan., 2012 to March, 2012 have not been received. On an overall view, we are of the opinion that the internal audit system should be further strengthen by the company as to coverage and follow-up to make it commensurate with the size and nature of its business. viii) Maintenance of Cost records has been prescribed by the Central Government under clause (d) of sub-section (1) of section 209 of the Companies Act, 1956 in respect of Coal Mining Industry vide Notification No. GSR/429E dt. 03.06.2011. As per information and explanation provided to us cost sheets are being prepared at unit level on monthly basis. However, at Area level maintenance of cost records in accordance with Cost Accounting Record rules is yet to be implemented.
77
No Comments
Adequate internal audit system exist.
Adequate internal audit system exists. No Comments
No Comments
ix) In Respect of Statutory Dues. (a) According to the records of the Company produced before us, the Company is regular in depositing undisputed statutory dues including Provident Fund, Income Tax, No Comments Wealth Tax, Sales Tax, Custom Duty, Excise Duty, Cess and other statutory dues applicable to the Company with appropriate authorities. There are no undisputed statutory dues pending for a period of more than six months from the date of becoming payable. (b) We enclose in Annexure I, the details of disputed statutory dues such as taxes / cess not deposited due to dispute and the forum where the dispute is pending. No Comments x) The Company neither has accumulated losses and nor it has incurred any cash losses during the financial year covered by our audit or in the immediately preceding financial year. No Comments Based on our audit procedures and the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to No Comments any Financial Institutions and Banks.
xi)
xii) The Company has not granted any Loans and Advances on the basis of security by way of pledge of shares, debentures and other securities. No Comments xiii) The Company is not a chit fund, nidhi or mutual benefit fund / society. Therefore, the provisions of clause 4 (xiii) of the Companies (Auditors Report) Order, 2003, are not applicable No Comments to the Company. xiv) The Company is not a dealing or trading in shares, debentures and other investments. Therefore, clause 4 (xiv) of the Companies (Auditors Report) Order, 2003 is not applicable to No Comments the Company. xv) As informed to us Company has not given any guarantee for loans taken by others from Banks or Financial Institutions. No Comments xvi) In our opinion, and according to the information and explanations given to us, on an overall basis, the term loans have been applied for the purposes for which they were No Comments obtained.
78
xvii) On the basis of an overall examination of the Balance Sheet of the Company, in our opinion and according to the information and explanations given to us, there are no funds raised on a No Comments short-term basis which have been used for long-term investment or on long term basis which have been used for short term investment. xviii) During the year, the Company has not made any preferential allotment of shares to Parties and Companies covered in the Register maintained under Section 301 of the Companies No Comments Act,1956. xix) According to the information and explanation given to us, the Company has not created securities by issuing any debentures during the period under audit. No Comments xx) The Company has not raised any money by public issues during the year. No Comments xxi) According to the information and explanations given to us by the Company, no fraud on or by the Company has been noticed or reported during the year. No Comments
FOR C. R. SAGDEO & CO CHARTERED ACCOUNTANTS F.R.N.: 108959 W
CA. SACHIN V. LUTHRA PARTNER Membership No. 109127 Place : NAGPUR Date : 20st May 2012
79
HEADQUARTERS
N ame of Statute Nature of Dues Amount (` ) Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act Income Tax Act Corporate Tax Corporate Tax Corporate Tax Corporate Tax Corporate Tax Corporate Tax Corporate Tax Corporate Tax Corporate Tax Corporate Tax Corporate Tax 152186000.00 147654000.00 40716000.00 68541000.00 6524000.00 57989000.00 33833000.00 80903000.00 80852000.00 1003903000.0 0 2905159000.0 0 Income Tax Act TDS 1358000.00 2007-08 Period to which amount relates 2002-03 2003-04 2004-05 2004-05 2005-06 2006-07 2006-07 2007-08 2007-08 2008-09 2009-10 Forum where the dispute is pending High C ourt , N agpur High C ourt , N agpur High C ourt , N agpur ITAT , Nagpur ITAT , Nagpur CIT (Appeal) , Nagpur CIT (Appeal), Nagpur CIT (Appeal), Nagpur CIT (Appeal), Nagpur CIT (Appeal), Nagpur CIT (Appeal), Nagpur ITAT, Nagpur
Income Tax Act
TDS
2582000.00
2008-09
ITAT, Nagpur
Income Tax Act
TDS
1308000.00
2009-10
CIT (Appeal), Nagpur
Income Tax Act
TDS
2482000.00
2010-11
CIT (Appeal), Nagpur MSTT , Mumbai
Bombay Sales Tax Act Maharashtra Entry Tax Act
Sales Tax
2124000.00
2001-02
Entry Tax on HEMM
963656000.00
1.4.1988 t o 31.10.1996
High C ourt , N agpur
85
86

(A MINI RATNA COMPANY) (A Subsidiary of Coal India Limited) BALANCE SHEET AS AT 31ST MARCH 2012
Notes I EQUITY AND LIABILITIES (1) Shareholders Fund a) Share Capital b) Reserves & Surplus c) Money Received against Share warrants (2) Share Application money pending allotment (3) Non-Current Liabilities a) Long Term Borrowings b)Deferred Tax Liabilities (Net) c)Other Long Term Liabilities d)Long Term Provisions (4) Minority Interest (5) Current Liabilities a) Short Term Borrowing b) Trade Payables c) Other Current Liabilities d) Short Term Provisions Total II ASSETS (1) Non-Current Assets (a) Fixed Assets i) Tangible Assets - Gross Block Less : Depreciation, Impairment & Provisions Net Carrying Value ii) Intangible Assets - Gross Block Less : Depreciation, Impairment & Provisions Net Carrying Value iii) Capital Work-in-Progress iv) Intangible Assets under Development (b) Non-Current Investment (c)Deferred Tax Assets (Net) (d ) Long Term Loans & Advances (e) Other Non-Current Assets (2) Current Assets (a) Current Investments (b) Inventories (c ) Trade Receivables (d) Cash & Bank Balance (e) Short Term Loans & Advances (f) Other Current Assets Total Note: Contingent Liabilities and Commitments 34 A (to the extent not provided for) Significant Accounting Policies 33 Additional Notes on Accounts 34 The Notes referred to above form an integral part of Balance Sheet 10 A 3,798.98 2,425.80 1,373.18 10 A 691.41 562.45 128.96 10 B 10 C 11 12 13 14 15 16 17 18 19 32.09 570.60 13.97 5,503.40 860.70 432.06 7,412.82 9,817.94 1050.51 74.56 214.44 96.27 455.72 61.99 32.09 437.09 25.20 4,063.78 704.54 351.20 5,613.90 7,866.81 657.81 650.63 530.85 119.78 71.34 220.50 128.36 350.13 58.21 3,643.95 2,339.36 1,304.59 1 2 297.10 3,066.29 3,363.39 3 4 5 85.91 0.25 3,272.79 3,358.95 6 7 8 9 91.32 2,106.58 897.70 9817.94 66.60 1,547.32 737.53 7866.81 88.89 0.11 2,155.78 2,244.78 As At 31.03.12 297.10 2,973.48 3,270.58 As At 31.03.11
M.SUBRAMANIAN
General Manager (Fin)
RAMEHER
Company Secretary
SUSHIL BEHL
D.C. GARG
Chairman-cum-Managing Director (DIN-00267658)
Director (Finance) (DIN-02841938) As per our report of even date FOR C.R.SAGDEO & CO Chartered Accountants (FRN 108959W)
Place : Nagpur Date : 20th May 2012
CA. SACHIN V. LUTHRA, PARTNER

(M.No. 109127)
87
Page start from - 87

(A MINI RATNA COMPANY) (A Subsidiary of Coal India Limited) PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED ON 31ST MARCH, 2012
INCOME Revenue From Operations Sale of Coal, coke etc. Less:- Excise Duty Other Levies Net Revenue From Operations Other Income Total Revenue (I+II) EXPENSES Cost of Material Consumed Purchase of Stock-in-trade Change in inventories of finished goods work in progress and Stock in trade Employee benefit expenses Power & Fuel Welfare Expenses Repairs & Maintenance Contractual Expenses Finance Costs Depreciation/amortization/Impairment Provisions Write off Overburden Removal Adjustment Other Expenses Total Expenses Profit/(Loss) before Prior Period, exceptional and extraordinary items and tax (III-IV) VI. Prior Period Adjustment { charges/ (Incomes) } 32 VII. Exceptional Items V. 22 23 24 25 26 27 28 29 30 31 Notes 20 8,357.48 373.01 1,234.46 6,750.01 680.69 7,430.70 920.26 (128.96) 3,991.41 281.94 253.80 64.09 501.01 3.20 195.65 220.62 458.95 237.00 6,998.97 431.73 (8.77) 7,073.44 31.06 1,048.11 5,994.27 464.78 6,459.05 863.43 (129.60) 2,780.58 259.20 223.71 68.46 467.51 3.30 188.16 72.61 37.64 314.56 249.35 5,398.91 1,060.14 (7.84) 1,067.98 1,067.98 447.90 (29.62) 111.38 538.32 (0.01) (0.01) 538.31 1,811.86 1,811.86 For the Year ended 31.03.12 For the Year ended 31.03.11
I. II. III. IV.
21
VIII. Profit/(Loss) before extraordinary items and tax (V-VI-VII) 440.50 IX. Extraordinary Items { charges/ (Incomes) } Statement of Profit & Loss continued X. Profit/(Loss) before Tax (VIII-IX) 440.50 XI. Less : Tax Expense - Current year 262.14 - Deferred Tax (105.59) - Earlier years (22.77) XII. Profit/(Loss) for the period from continuing operations ( X-XI) 306.72 XIII. Profit/(Loss) from discontinuing operations (0.01) IV. Tax expenses of discontinuing operations XV. Profit/(Loss) from discontinuing operations (after tax) ( XIII-XIV) (0.01) XVI. Profit/(Loss) for the period ( XII+XV) 306.71 XVII.Earning per equity share (in ) (Face Value of ` 1000/- per share) (1) Basic 1,032.35 (2) Diluted 1,032.35 Significant Accounting Policies 33 Additional Notes on Accounts 34 The Notes referred to above form an integral part of Statement of Profit and Loss
M.SUBRAMANIAN
RAMEHER
Company Secretary
SUSHIL BEHL
D.C. GARG

(M.No. 109127)
88

(A MINI RATNA COMPANY) (A Subsidiary of Coal India Limited) CASH FLOW STATEMENT FOR YEAR ENDED ON 31ST MARCH, 2012
2011-2012 A) CASH FLOWS FROM OPERATING ACTIVITIES Net Profit before taxation and extraordinary items Adjustments for: Depreciation Interest income Increase/(Decrease) in OBR Reserve Interest expense Provision for Doubtful Debts/Advances/Claims (Profit)/Loss on Sale of Assets Operating profit before working capital changes (Increase)/Decrease in Trade Receivables (Increase)/Decrease in inventories (Increase)/Decrease in Loans & Advances Increase/(Decrease) in Trade & Other Payable Cash generated from operations Direct Taxes paid (Net) Loss from discontinued operations Cash flow before extraordinary items Extraordinary items Net cash from operating activities B) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets Proceeds from sale of Assets Investments Interest received Net cash from investing activities C ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from long term borrowings Repayment of long term borrowings Interest paid Dividend paid (including Dividend distribution tax) Net cash used in financing activities NET INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS CASH & CASH EQUIVALENTS AT BEGINNING OF PERIOD CASH & CASH EQUIVALENTS AT END OF PERIOD 440.50 195.78 (459.64) 458.96 3.20 (2.23) (0.60) 635.97 14.32 (133.51) (221.38) 1562.14 1857.54 (260.05) (0.01) 1597.48 0.00 1597.48 2010-2011 1067.96 176.72 (272.88) 314.55 1.59 (31.65) (0.41) 1255.88 115.94 (142.92) 99.87 (175.85) 1152.92 (616.83) 0.00 536.09 0.00 536.09
(272.55) 2.43 32.09 459.64 221.61
(239.34) 2.40 32.09 272.88 68.03
14.32 (14.91) (3.20) (375.68) (379.47) 1439.62 4063.78 5503.40
6.23 (13.18) (1.59) (451.76) (460.30) 143.82 3919.96 4063.78
NOTES: 1. Cash Flow Statement has been prepared under the indirect method as set out in the AS-3 ( R ) issued by the Institute of Chartered Accountants of India. 2. Purchase of Fixed Assets includes movements of Capital Work-in-progress between the beginning and the end of the year. 3. Purchase of Fixed Assets includes Foreign Currency fluctuation of ` 9.19 Cr. 4. Cash & Cash equivalents as on 31.03.2012 include Fixed Deposits of 1.18Cr against which Bank Guarantees have been issued.
M.SUBRAMANIAN
RAMEHER
Company Secretary
SUSHIL BEHL
D.C. GARG

(M.No. 109127)
89

NOTES TO BALANCE SHEET NOTE - 1
SHARE CAPITAL (i) Authorised share capital 8000000 Equity Shares of Rs. 1000/- each Issued, Subscribed and fully Paid-up 1800019 Equity Shares of Rs. 1000/- each fully paid up in cash 1170981 Equity Shares of Rs. 1000/- each allotted as fully paid up for funds adjusted against purchase consideration other than cash As at 31-03-12 800.00 800.00 180.00 117.10 297.10 As at 31-03-11 800.00 800.00 180.00 117.10 297.10 % of Total Shares
(i) (ii)
Note 1: Shares in the company held by each shareholder holding more than 5% Shares Name of Shareholder No. of Shares Held ( Face value of Rs. 1000 each) Coal India Ltd Note 2 : During the year there is no change in the number of shares issued. 2971000
100
NOTE - 2
RESERVES & SURPLUS (Refer additional Note No- 2 ) 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 Add: Transfer from Profit & Loss Account Add: Adjustment During the year Surplus in Statement of Profit & Loss As per last Balance Sheet Profit/(Loss) after Tax During the Year Profit/(Loss) available for Appropriation APPROPRIATION Reserve for Foreign Exchange Transaction Transfer to General Reserve Transfer to CSR Reserve Interim Dividend Proposed Dividend on Equity Shares Corporate Dividend Tax Miscellaneous Expenditure (to the extent not written off) Preliminary Expenses Pre-Operational Expenses Total : As at 31-03-12 As at 31-03-11
0.00 0.00 33.99 21.83 7.65 48.17 950.69 46.01 7.65 1,004.35 1,988.80 306.71 2,295.51 46.01 21.83 184.04 29.86 2,013.77 3,066.29
0.00 0.00 6.59 27.40 33.99 869.94 80.75 950.69 1,932.82 538.31 2,471.13 80.75 27.40 323.24 50.94 1,988.80 2,973.48
90

NOTES TO BALANCE SHEET (CONTD.)
NOTE - 3
LONG TERM BORROWING (Refer additional Note No- 3 ) Term Loan International Bank for Reconstruction and Development (IBRD)- Through CIL Japan Bank of International Co-operation (JBIC)Through CIL Export Development Corp., Canada Liebherr France S.A., France Loan From Coal India Limited Total (A+B) CLASSIFICATION 1 Secured Unsecured CLASSIFICATION 2 Loan Guaranteed by directors & others Particulars of Loan Amount in n ssn s Nature of Guarantee As at 31-03-12 As at 31-03-11
40.80 45.11
41.49 47.40
85.91
88.89
85.91
88.89
Notes: 1 Amount outstanding in foreign currency as at
31.03.2012
31.03.2011
2 3
IBRD US $ 7,917,626.28 9,191,751.89 JBIC JPY 713,872,230.55 864,295,767.64 There is no default in repayment of loans and interest. Term loan is being repaid in 30 semi annual instalments starting from May 15, 2003 and February 15, 2003 for IBRD and JBIC respectively
NOTE - 4
OTHER LONG TERM LIABILITIES As at 31-03-12 As at 31-03-11
Shifting & Rehabilitation Fund Opening Balance Add: Interest from Investment of the fund Add: Contribution Received Less : Amount utilised Trade Payable Security Deposits Others ( Specify Nature) Total 0.25 0.25 0.11 0.11
91

NOTE - 5
LONG TERM PROVISIONS For Employee Benefits - Gratuity - Leave Encashment - Other Employee Benefits For Foreign Exchange Transactions (Marked to Market) OBR Adjustment Account Mine Closure For Others TOTAL Note: Details of OBR ADJUSTMENT ACCOUNT as above A OBR Advance stripping as per last accounts Add: expenditure during the year Written off/adjusted TOTAL (A) Ratio Variance as per last accounts Written off/adjusted TOTAL (B) Total (A-B) As at 31-03-12 258.77 320.72 220.17 1,986.37 486.76 3,272.79 As at 31-03-11 234.79 130.47 1,527.42 263.10 2,155.78
1,213.90 1,227.84 1,004.92 1,436.82 2,741.32 681.87 3,423.19 1,986.37
1,069.03 1,113.85 968.98 1,213.90 2,281.89 459.43 2,741.32 1,527.42
NOTE - 6
SHORT TERM BORROWING Loan From Bank Loans Repayable on Demand Balance with Coal India Limited & other Subsidiaries of Coal India Limited Overdraft against Pledge of Term Deposit Other Loans and Advances Deferred Credits Total : CLASSIFICATION 1 Secured Unsecured CLASSIFICATION 2 Loan Guaranteed by directors & others Particulars of Loan Amount in Rs. crores Nature of Guarantee As at 31-03-12 As at 31-03-11 -
NOTE - 7
TRADE PAYABLES ( Refer additional Note WD - 4) Sundry Creditors For Revenue Stores TOTAL As at 31-03-12 91.32 91.32 As at 31-03-11 66.60 66.60
92

NOTE - 8
OTHER CURRENT LIABILITIES (Refer additional Note No- 5 ) Current Maturities of Long Term Borrowings Term Loan From IBRD- Through CIL (Holding Company) Term Loan From JBIC- Through CIL (Holding Company) Term Loan From Export Development Corp., Canada Term Loan From Liebherr France S.A., France Loan From Coal India Limited Surplus Fund from Coal India Current Account with Subsidiaries For Capital (including Stores) FOR EXPENSES : Salary Wages & Allowances Power & Fuel Others STATUTORY DUES : Central Sales Tax Sales Tax/VAT * Provident Fund & Pension Fund Central Excise Duty * Royalty & Cess on Coal Stowing Excise Duty Clean Energy Cess Other Statutory Levies 2.92 15.86 49.49 (15.89) 60.57 11.45 37.20 70.16 231.76 6.71 45.18 26.87 765.94 120.05 2,106.58 4.37 7.04 8.48 (2.45) 59.55 11.61 19.41 97.31 205.32 9.58 48.45 24.60 581.81 112.37 1,547.32 As at 31-03-12 As at 31-03-11
6.56 9.50 28.58
5.58 8.09 39.10
670.56 23.36 171.51 865.43
315.13 18.47 178.82 512.42
Income Tax Deducted at Source Security Deposit Earnest Money Advance & Deposit from customers / others Interest Accrued and due on Borrowings Interest Accrued but not due on Borrowings Cess Equilisation Account Current Account with IICM Unpaid Dividend Ex-Owner Account Advance Deposit other Pre-Nationalisation Others Liabilities TOTAL Note:1 Amount outstanding in foreign currency as at IBRD US $ JBIC JPY *Note: Net of Credit Receivables
31.03.2012 1,274,125.53 150,423,537.09
31.03.2011 1,236,644.11 147,557,257.50
93

NOTE - 9
SHORT TERM PROVISIONS (Refer additional Note No- 6) For Employee Benefits - Gratuity - Leave Encashment - PPLB - PRP - Other Employee Benefits For Proposed Dividend For Corporate Dividend Tax Provision for Income Tax Less : Advance Income Tax / Tax Deducted at Source For Excise Duty on Closing Stock of Coal For Others TOTAL As at 31-03-12 As at 31-03-11
226.01 24.83 108.96 280.80 184.04 29.86 43.20 897.70 -
9.13 18.77 85.61 220.10 323.24 52.44 28.24 737.53
94

NOTE - 11
NON - CURRENT INVESTMENTS - Unquoted at Cost (Refer additional Note No- 9 ) Number of shares/bonds/ securities current year/ (previous year) Face value per As at shares/bonds/ 31-03-12 security current year/ (previous year) As at 31-03-11
TRADE INVESTMENTS
Investments in Govt. Securities 8.5% Tax Free Special Bonds (Fully Paid up) : (on securitisation of Sundry Debtors) Major State-wise Break-up UP Haryana Maharashtra 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) 590,970 (788,060) 371,730 (495,645) 1,000.00 1,000.00 59.10 37.17 78.80 49.56 -
NON-TRADE 7.55% Non Convertible IRFC Tax Free Bonds 2021 Series -
Total : Aggregate of Unquoted Investment
96.27 96.27
128.36 128.36
98

LONG TERM LOANS & ADVANCES (Refer additional Note No- 10 ) LOANS ADVANCES For Capital - Secured considered Good - Unsecured considered Good - Doubtful Less : Provision for Doubtful Loans and Advances For Revenue - Secured considered Good - Unsecured considered Good - Doubtful Less : Provision for Doubtful Loans and Advances Security Deposits - Secured considered Good - Unsecured considered Good - Doubtful Less : Provision for Doubtful Loans and Advances Deposit for P&T, Electricity etc. - Secured considered Good - Unsecured considered Good - Doubtful Less : Provision for Doubtful Loans and Advances LOAN TO EMPLOYEES & OTHERS For House Building* - Secured Considered Good - Unsecured Considered Good - Doubtful For Motor Car and Other Conveyance* - Secured Considered Good - Unsecured Considered Good - Doubtful For Others - Secured considered Good - Unsecured considered Good - Doubtful Less : Provision for Doubtful Loans and Advances Loan To Subsidiaries - Secured considered Good - Unsecured considered Good - Doubtful TOTAL 12.58 12.58 0.43 0.43 61.99 CLOSING BALANCE
CURRENT PERIOD CURRENT PERIOD NIL
NOTE - 12
As at 31-03-12 As at 31-03-11
5.63 5.63 5.63 43.35 43.35 43.35
9.49 9.49 9.49 33.02 33.02 33.02
15.12 15.12 0.58 0.58 58.21 MAXIMUM AMOUNT DUE AT ANY TIME DURING
CURRENT PERIOD NIL CURRENT PERIOD NIL
Due by the Companies in which directors of the company is also a director/member ( With name of the Companies) Due by the parties in which the Director(s) of company is /are interested
NIL
NIL
NIL
NIL
NIL
* This Loan includes interest accrued thereon.
99

NOTE - 13
OTHER NON-CURRENT ASSETS As at 31-03-12 As at 31-03-11
Long Term Trade Receivable - Secured considered good - Unsecured considered good - Doubtful Less Provision for bad and doubtful Trade Receivable Exploratory Drilling Work - Secured considered good - Unsecured considered good - Doubtful Less Provision for bad and doubtful
Other Receivables - Secured considered good - Unsecured considered good - Doubtful Less Provision for bad and doubtful Receivables
CLOSING BALANCE
CURRENT PERIOD CURRENT PERIOD
MAXIMUM AMOUNT DUE AT ANY TIME DURING

CURRENT PERIOD CURRENT PERIOD
TOTAL
NOTE - 14
CURRENT INVESTMENTS - Quoted / Unquoted at Cost (Refer additional Note No- 9 ) NON-TRADE Mutual Fund Investment ( with name of mutual fund )
7.55% Non Convertible IRFC Tax Free Bonds 2021 Series
Face value per Number of shares/ shares/bonds/ bonds/securities security current year current year/ (previous year) /(previous year) (`)
Market Value/NAV per shares/bonds/ security current year/ As at (previous year) 31-03-12 -
As at 31-03-12 -
RADE Investments in Govt. Securities 8.5% Tax Free Special Bonds (Fully Paid up) : (on securitisation of Sundry Debtors) Major State-wise Break-up Maharashtra
196,890 (196,890)
1,000.00
19.70
19.70
Madhya Pradesh Total : Aggregate of Uniquoted investment
123,910 (123,910)
1,000.00
12.39 32.09 32.09
12.39 32.09 32.09
100

NOTE - 15
INVENTORIES (Valuation as per Accounting Policy No 6) (Refer additional Note No- 11)
As at 31-03-12
As at 31-03-11
Stock of Coal Coal Under Development Less : Provision
488.15 488.15 0.01
349.22 11.16 360.38 0.01
Stock of Coal (Net)
488.14
360.37
Stock of Stores & Spares (at cost) Stores -in -transit Less : Provision
76.06 7.17 12.85
74.26 5.21 13.64
Net Stock of Stores & Spares (at cost)
70.38
65.83
Workshop Jobs : Work-in-progress and Finished Goods Less : Provision 9.45 1.45 8.26 1.45
Net Stock of Workshop Jobs
8.00
6.81
Press : Work-in-Progress and Finished Goods -
Stock of Medicine at Central Hospital
Prospecting & Boring/ Development Exp./Coal Blocks meant for Sale
4.08
4.08
Total ( A to F )
570.60
437.09
101

NOTE - 16
TRADE RECEIVABLES (Refer additional Note No- 12)
As at 31-03-12
As at 31-03-11
Debts outstanding for a period exceeding six months from the due date - Secured considered good - Unsecured considered good - Doubtful Less Provision for bad and doubtful trade receivables
72.54 72.54 119.08 (46.54)
72.78 72.78 122.17 (49.39)
Other Debts - Secured considered good - Unsecured considered good - Doubtful Less : Provision for bad and doubtful trade receivables
60.51 60.51 60.51 13.97
74.59 74.59 74.59 25.20
Total
CLOSING BALANCE

NIL
NIL
NIL
NIL
NIL
103

NOTE - 17
CASH & BANK BALANCE As at 31-03-12 As at 31-03-11
Cash & Cash Equivalents Balances with Scheduled Banks - SBI Dividend Account (unpaid/unclaimed dividend account) - In Deposit Accounts with maturity upto 3 months - In Current Accounts - In Cash Credit Accounts Balances with Non - Scheduled Banks In Account with Banks outside India Remittance - in transit Cheques, Drafts and Stamps on hand Cash on hand Deposit with Scheduled Banks under Shifting and Rehabilitation Fund Scheme with maturity upto 3 months Other Bank Balances Balances with Scheduled Banks - In Deposit Accounts with maturity more than 3 months Deposit with Scheduled Banks under Shifting and Rehabilitation Fund Scheme with maturity more than 3 months Deposit with Scheduled Banks under Mine Closure Plan Scheme* Total Maximum amount outstanding with Banks other than Scheduled Banks at any time during the year Note: 1. Balance in Deposits Accounts includes an amount ` of 3.86 0.04 0.30 2.92 0.24 0.22
1,708.37 250.32 -
1,737.36 292.99 -
3,540.51
2,030.05
5,503.40
4,063.78
1.18 crores, held as Bank Guarantee.
2. Note: Balance with Scheduled Banks, In Deposit Account includes deposit for: a) Undisburded Wages b) 1% Electricity charges recovered from Non-Executives c) Court cases for Union Fund, Relief Fund & 5% MPGATSVA
2.04 22.60 112.33
2.07 16.50 128.60
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SHORT TERM LOANS & ADVANCES LOANS DVANCE ( Recoverable in cash or in kind or for value to be received) ADVANCE TO SUPPLIERS For Revenue - Secured considered good - Unsecured considered good - Doubtful Less Provision for bad and doubtful Advance ADV PAYMENT OF STATUTORY DUES SalesTax - Secured considered good - Unsecured considered good - Doubtful Less Provision for bad and doubtful Advance Advance Income Tax / Tax Deducted at Source Less : Provision for Income Tax Others - Secured considered good - Unsecured considered good - Doubtful Less Provision for bad and doubtful Advance
NOTE - 18
As at 31-03-12 As at 31-03-11
0.79 6.43 7.22 6.43 0.79
16.85 5.52 22.37 5.52 16.85
1,725.58 1,101.03 624.55 102.50 102.50 102.50 47.97 72.18 5.98 78.16 5.98 72.18 12.71 860.70
1,704.90 1,152.21 552.69 12.37 12.37 12.37 11.41 103.93 6.03 109.96 6.03 103.93 7.29 704.54
Advance to Employees - Secured considered good - Unsecured considered good - Doubtful Less Provision for bad and doubtful Advance
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 Claims Receivables - Secured considered good - Unsecured considered good - Doubtful Less Provision for bad and doubtful claim receivables repaid Expenses TOTAL
CLOSING BALANCE

NIL
NIL
NIL
NIL
NIL
105

NOTE - 19
OTHER CURRENT ASSETS As at 31-03-12 Interest Accrued - Investment - Deposit with Banks - Others Ex Owners Account Other Advances Less: Provision DEPOSITS Deposit for Customs Duty, Port Charges etc. Deposit with Coal India Limited Deposit for Royalty, Cess & Sales Tax Less: Provision Others Less: Provision 201.15 4.34 0.45 20.65 432.06 189.81 1.28 0.45 35.69 351.20 As at 31-03-11
6.14 192.44 6.89 -
7.50 107.61 8.87 -
Amount Receivable from Govt of India for transactions on behalf of Ex-Coal Board Less: Provision Other Receivables Less: Provision TOTAL
NOTES TO STATEMENT OF PROFIT & LOSS
NOTE - 20
Revenue From Operations (Refer additional Note No- 14 ) For the Year 31-03-12 Sales of Coal, coke etc * Less: Excise Duty Less : Other Levies Royalty Cess on Coal Stowing Excise Duty Central Sales Tax Clean Energy Cess State Sales Tax/VAT Other Levies TOTAL LEVIES Revenue From Operations (NET SALES*) *Note: Sales includes Incentive from Customers. 8,357.48 373.01 622.35 41.66 43.43 209.34 317.68 1,234.46 6,750.01 For the Year 31-03-11 7,073.44 31.06 589.71 42.16 32.59 158.73 224.92 1,048.11 5,994.27
106

NOTES TO STATEMENT OF PROFIT & LOSS
NOTE - 21
OTHER INCOME For the Year 31-03-12 Income From Long Term Investments Dividend from Joint Ventures Dividend from Subsidiaries Interest from Government Securities ( 8.5% Tax Free Special Bonds) ( Trade ) 7.55% Non Convertible IRFC Tax Free Bonds 2021 Series (Non-Trade) Income From Current Investments Dividend from Mutual Fund Investments Interest from Government 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 From Loans and Advances to Employees From Income Tax Refunds From Coal India Others Apex Charges Subsidy for Sand Stowing & Protective Works Profit on Sale of Assets Recovery of Transportation & Loading Cost Gain on Foreign exchange Transactions Exchange Rate Variance Lease Rent Liability Write Backs Guarantee Fees from Subsidiaries Other non-operating Income 2.04 2.04 10.92 13.64 For the Year 31-03-11
422.40 0.39 63.20 22.24 1.72 21.59 0.63 104.91 0.01 30.64
213.02 0.65 15.17 12.60 30.93 20.95 0.50 107.98 0.01 47.29
TOTAL
680.69
464.78
NOTE - 22
COST OF MATERIAL CONSUMED For the Year 31-03-12 Explosives Timber POL HEMM Spares Other Consumable Stores & Spares TOTAL 136.31 15.95 411.88 182.61 173.51 920.26 For the Year 31-03-11 113.19 14.22 389.42 173.74 172.86 863.43
107

NOTES TO STATEMENT OF PROFIT & LOSS (CONTD.)
NOTE - 23
CHANGE IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE For the Year 31-03-12 Closing Stock of Coal / Coke Less: Deterioration of Coal/Coke Total (1) Opening Stock of Coal/Coke Less: Deterioration of Coal/Coke Total (2) A) Change in Inventory of Closing Stock (2-1) Closing Stock of Workshop made finished goods and WIP Less: Provision Total (3) Opening Stock of Workshop made finished goods and WIP Less: Provision Total (4) B) Change in Inventory of Closing Stock of workshop (4-3) Press Closing Job i)Finished Goods ii)Work in Progress Total (5) Press Opening Job i)Finished Goods ii)Work in Progress Total (6) C) Change in Inventory of Closing Stock of Press Job made finished goods and WIP (6-5) Closing Stock of Medicines ( Central Hospital) (7) Less Opening Stock of Medicines ( Central Hospital) (8) D) Change in Inventory of Stock of Medicines at Central Hospitals (8-7) Total Change in Inventory of Stock( A+B+C+D ) 488.15 0.01 488.14 360.38 0.01 360.37 (127.77) 9.45 1.45 8.00 8.26 1.45 6.81 (1.19) (128.96) For the Year 31-03-11 349.22 0.01 349.21 218.28 0.01 218.27 (130.94) 8.26 1.45 6.81 8.15 8.15 1.34 (129.60)
NOTE - 24
EMPLOYEE BENEFIT EXPENSES (Refer additional Note No- 15 ) For the Year 31-03-12 Salary, Wages, Allowances & Benefits Exgratia PRP Contribution to P.F. & Other Funds Gratuity Leave Encashment VRS Workman Compensation Other Employee Benefits TOTAL 2,641.32 133.56 60.89 268.18 629.01 130.85 0.35 1.41 125.84 3,991.41 For the Year 31-03-11 2,107.16 109.38 73.88 246.47 80.87 95.61 2.46 2.01 62.74 2,780.58
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NOTE - 25
WELFARE EXPENSES For the Year 31-03-12 Medical Expenses Medical Expenses for retired employees Grants to Schools & Institutions Sports & Recreation Canteen & Creche Power - Township Hire Charges of Bus, Ambulance etc. CSR Expenses Environmental Expenses Tree Plantation Other Expenses TOTAL 43.92 4.19 7.93 1.57 0.52 127.47 5.93 7.65 14.37 5.99 34.26 253.80 For the Year 31-03-11 45.50 2.97 8.92 1.17 0.44 104.76 5.26 7.03 13.08 5.38 29.20 223.71
NOTE - 26
REPAIRS
For the Year 31-03-12 Building Plant & Machinery Others TOTAL 17.80 36.99 9.30 64.09 For the Year 31-03-11 14.99 37.52 15.95 68.46
NOTE - 27
CONTRACTUAL EXPENSES For the Year 31-03-12 For the Year 31-03-11
Transportation Charges : - Sand - Coal & Coke - Stores & Others etc. Wagon Loading Hiring of P&M Other Contractual Work TOTAL
11.88 135.64 0.43 6.23 284.98 61.85 501.01
9.99 128.04 0.41 5.94 260.17 62.96 467.51
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NOTE - 28
FINANCE COSTS For the Year 31-03-12 For the Year 31-03-11
INTEREST EXPENSE Deferred Payments Bank Overdraft / Cash Credit Interest on IBRD & JBIC Loan CIL Fund Loan Interest Interest to Subsidiaries Others TOTAL(A) OTHER BORROWING COSTS Guarantee Fees on (IBRD & JBIC) Loan Other Expenses / Bank Charges * TOTAL(A) 1.69 1.69 3.20 1.71 1.71 3.30 1.51 1.51 1.59 1.59
TOTAL (A+B) * Related to World Bank loan transactions only.
NOTE - 29
PROVISIONS (A) PROVISION MADE FOR Doubtful debts Doubtful advances & Claims Foreign exchange Transaction Stores & Spares Reclamation of Land/Mine Closure Expenses Surveyed of Fixed Assets/Capital WIP Others TOTAL (A) (B) PROVISION WRITTEN BACK Doubtful debts Doubtful advances & Claims Foreign exchange Transaction Stores & Spares Reclamation of Land/Mine Closure Expenses Surveyed of Fixed Assets/Capital WIP Others TOTAL (B) TOTAL ( A-B ) For the Year 31-03-12 0.86 223.66 0.11 224.63 For the Year 31-03-11 0.30 1.86 102.41 104.57
3.09 0.79 0.13 4.01 220.62
31.96 31.96 72.61
NOTE - 30
WRITE OFF For the Year 31-03-12 For the Year 31-03-11
Doubtful debts Doubtful advances Others TOTAL
37.20 0.44 37.64
110

NOTE - 31
OTHER EXPENSES For the Year 31-03-12 For the Year 31-03-11
Travelling expenses - Domestic - Foreign Training Expenses Telephone & Postage Advertisement & Publicity Freight Charges Demurrage Donation/Subscription Security Expenses Service Charges of CIL Hire Charges CMPDI Expenses Legal Expenses Bank Charges Guest House Expenses Consultancy Charges Under Loading Charges Loss on Sale/Discard/Surveyed of Assets Auditors Remuneration & Expenses - For Audit Fees - For Taxation Matters - For Company Law Matters - For Management Services - For Other Services - For Reimbursement of Expenses Internal Audit expenses etc Rehabilitation Charges Royalty & Cess Central Excise Duty Rent Rates & Taxes Insurance Loss on Exchange Rate Variance Lease Rent Rescue/Safety Expenses Dead Rent/Surface Rent Siding Maintenance Charges Land/Crops Compensation Misceleneous Expenses TOTAL
19.36 0.27 3.03 2.30 3.48 0.34 3.37 0.43 24.17 23.78 22.08 3.71 1.29 0.43 11.80 9.25 0.03 0.12 0.21 0.03 0.60 25.18 8.97 15.94 3.23 7.24 0.61 2.10 1.10 1.34 1.43 1.79 37.99 237.00
19.29 0.28 3.01 2.40 2.96 0.29 3.96 0.49 18.10 24.08 20.37 4.07 0.93 0.32 9.06 5.73 0.08 0.12 0.16 0.05 0.26 25.54 10.12 28.24 2.31 7.57 0.53 0.16 1.36 0.15 1.53 0.24 55.59 249.35
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NOTE - 32
PRIOR PERIOD ADJUSTMENT For the Year 31-03-12 (A) Expenditure Sale of Coal & Coke Other Income Consumption of Stores & Spares Employees Remuneration & Benefits Power & Fuel Welfare Expenses Repairs Contractual Expenses Other Expenditure Interest and other financial charges Depreciation TOTAL (A) (B) Income Sale of Coal & Coke Other Income Consumption of Stores & Spares Employees Remuneration & Benefits Power & Fuel Welfare Expenses Repairs Contractual Expenses Other Expenditure Interest and other financial charges Depreciation TOTAL (B) TOTAL ( A-B ) 7.53 1.45 0.32 9.30 (8.77) 0.87 0.10 0.29 0.57 11.45 13.28 (7.84) 0.22 0.18 0.13 0.53 4.26 1.18 5.44 For the Year 31-03-11
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NOTE 33
SIGNIFICANT ACCOUNTING POLICIES

1.0 Accounting Convention: Financial statements are prepared under the historical cost convention on a c c r u a l basis, in accordance with the requirements of the Companies Act , 1956 and in compliance with the Accounting Standards referred to in Section 211 (3C) except as otherwise stated elsewhere. 2.0 Basis of Accounting: All expenses and incomes are booked initially in the natural heads of accounts and then transferred to functional heads wherever required. 3.0 Subsidies/Grants from Government:3.1. Subsidies / Grants on capital account are deducted from the cost of the respective assets to which they relate. The unspent amount at the year end, if any, is shown as current liabilities. 3.2 Subsidies / Grants on revenue account are credited to Profit & Loss Account under the head other receipts and the relevant expenses are debited to the respective heads. The unspent amount at the year end, if any, is shown as current liabilities.
4.0
Fixed Assets:4.1 Land: Value of Land includes cost of acquisition, cash rehabilitation expenses and re-settlement cost incurred for concerned displaced persons. Other expenditure incurred on acquisition of Land viz. compensation in lieu of employment etc. are, however, treated as revenue expenditure. Plant & Machinery : Plant and Machinery includes cost and expenses incurred for erection / installation and other attributable cost of bringing those assets to working condition for their intended use. Railway Siding : Pending commissioning, payment made to the railway authorities for construction of railway siding are shown under long term loans and advances as capital advances. 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 specially stated in the project report to determine the commercial readiness of the project to yield production on a sustainable basis a n d completion of required development activity during the period of construction, projects and mines under development are brought to revenue:
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4.2
4.3
4.4
a.
b. c.
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 Two years of touching of coal , or From the beginning of the financial year in which value of production is more than total expenses, Whichever event occurs first.
4.5
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: All investments, being long term nature, are stated at cost.
6.0
Inventories : 6.1.0. 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, cost being ascertained on annual average basis. 6.1.1.Slurry, middlings of washeries are valued at net realisable value. 6.1.2. Stock of stores & spare parts at Central & Area Stores are valued at cost calculated on the basis of weighted average method . The year-end inventory of stores & spare parts lying at collieries / sub-stores / consuming centers, initially charged off, are valued at issue price of Area stores, Cost / estimated cost. Workshop jobs including work-in-progress are valued at cost. 6.1.3. The expenditure on Prospecting & Boring and Development in respect of non-CIL Blocks intended to sale are treated as inventory and valued at cost.
6.2.1 Stores & Spares: 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. Stores & spare parts include loose tools.
114
6.2.3. Provisions are made at the rate of 100% for unserviceable, damaged and obsolete stores and at the rate of 50% for stores & spares not moved for 5 years. 6.2.4. Stock of Stationery, bricks, sand, medicine (except at Central Hospitals) and scraps are not considered in inventory. 7.0. Depreciation: 7.1 Depreciation on Fixed Assets is provided on straight line method at the rates and manner specified in Schedule XIV of the Companies Act, 1956 (as amended) except for: i. Telecommunication equipments and electronic items are depreciated over the technically estimated life, at higher rates, viz; @ 15.83% and @ 11.31% respectively. ii. Depreciation on certain Heavy Earth Moving Machineries (HEMMs) are charged over the technically estimated life at higher rates viz. @ 11.88%, @13.57%,@15.83% as applicable. iii. Depreciation on Side Dump Loader(SDL) and Load Haul Dumper(LHD) are charged over the technically estimated life at higher rates viz @ 19% and @ 15.83% respectively. Depreciation on the assets added / disposed off during the year is provided on pro-rata basis with reference to the month of addition / disposal, except on those assets attracting 100% depreciation p.a.(SLM basis), which are fully depreciated in the year of their addition. 7.2 Value of land acquired under Coal Bearing Area (Acquisition & Development) Act, 1957 is amortised on the basis of the balance life of the project. Value of leasehold land is amortised on the basis of lease period or balance life of the project whichever is earlier. 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. Subsequent Expenditure falling under this category shall be amortised over 20 years or balance life of the project from the year of incurrence of expenditure. Assets attracting 100% depreciation,other than items individually costing Rs.5,000/ - or less are taken out from the Accounts after expiry of two years following the year in which these are fully depreciated. Individual assets costing Rs.5,000/- or less is depreciated fully in the year of addition but these are removed from books of accounts after they are surveyed off.
7.3
7.4
8.0
Impairment of Assets: 8.1 Impairment loss is recognized wherever the carrying amount of an asset is in excess of its recoverable amount and the same is recognized as an expenses in the statement of profit & loss and carrying amount of the asset is reduced to its recoverable amount.
115
ANNUAL REPORT 2011-12 8.2 Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exist or have decreased.
9.0
Foreign Currency Transactions: 9.1 Year end balance of foreign currency transactions is translated at the year- end rates and the corresponding effect is given in the respective accounts. Transactions completed during the year are adjusted on actual basis. Transactions covered by cross currency swap options contracts to be settled on future dates are recognized at the year-end rates of the underlying foreign currency. Effects arising out of such contracts are taken into account on the date of settlement.
9.2
10.0 Retirement Benefits/Other Employee benefits; a. Defined contribution plans: The company makes contributions towards Provident Fund and Pension Fund to a defined contribution retirement benefit plan for qualifying employees. The Provident Fund and Pension Fund are operated by the Coal Mines Provident Fund (CMPF) Authorities. As per rules of these schemes, the Company is required to contribute a specific percentage of pay roll cost to the CMPF Authorities to fund the benefit. Defined Benefit Plans: Year end liability, 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 actuarial valuation. Other employee benefits: Further yearend liability of certain other employee benefits viz. benefits on account of LTA/LTC, Life cover scheme ,Group Personal Accident Insurance Scheme ,Settlement allowance, retired executive medical benefit scheme and compensation to dependents of deceased in mines accident etc. are also valued on actuarial basis by applying projected unit credit method.
b.
c.
11.0 Recognition of Income and Expenditure; Income and Expenditure are generally recognized on accrual basis and provision is made for all known liabilities. a) Sales: i) ii) iii) Revenue in respect of sales is recognised when the property in the goods with the risks and rewards of ownership are transferred to the buyer. Sale of Coal are net of statutory dues and accepted deduction made by customer on account of quality of coal. 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.
116
12.0 Borrowing Costs: Borrowing cost directly attributable to the acquisition or construction of qualifying assets are capitalized. Other borrowing costs are recognized as expenses in the period in which they are incurred. 13.0 Taxation: Provision for current income tax is made in accordance with the Income Tax Act,1961. Deferred tax liabilities and assets are recognized 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 recognized 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: 15.1. 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 arise from past events but is not recognized 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. 15.2. Contingent liabilities are not provided for in the accounts and are disclosed by way of notes. 16.0 Balance with Coal India Limited ( Holding Company ). Amount due to Coal India Limited on account of loan after adjustment for conversion to equity or vice-versa from time to time is shown as Unsecured Loan. Amount due / receivable for revenue nature transaction in Current Account is shown under current liabilities / current assets. 17.0 Apex Office Charges and Interest to Holding Company. 17.1. Apex office charges as charged by Holding Company is allocated to revenue mines on the basis of coal production. 17.2. Interest on loans from CIL is accounted for as per terms of loan agreement. Interest is allocated to the units on the basis of Gross Fixed Assets (excluding the Assets procured against specific loan) at the beginning of the year.
117
18.0. Overburden Removal (OBR) Expenses. In Opencast mines with rated capacity of 1 million tonnes per annum and above, the 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 balance of advance stripping and ratio variance at the end of the year is shown as cost of removal of overburden under the head current Assets/ Liabilities as the case may be.. The reported quantity of overburden 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 % Less than 1 Milli. Cum. Between 1 and 5 Mill. Cum. More than 5 Mill. Cum +/- 5 +/- 3 +/- 2 II %Quantum (in Mill. Cu. Mtr.) 0.03 0.20 NIL
However, where the variance is beyond the permissible limits as above, the measured quantity is considered. 19.0. Income / expenditure items relating to prior period(s) which do not exceed Rs.5,00,000/- in each case are treated as income / expenditure for the current year.
118
b)
Deductions made from employees remuneration in 1996-97 towards Union Fund ( 0.78 Crores) and Relief Fund ( 0.39 Crores) continue to be kept in separate deposit accounts as the matter is sub-judice. The interest earned on these deposits upto 31 st March, 2012 is 2.32 Crores (C.Y. 0.27 Crores) and 2.05 Crores (C.Y. 0.23 Crores) respectively. The deduction together with the interest is appearing under the head Other Current Liability. During the year recovery of electricity charges @ 1% of basic pay has been made from the salary/wages of non-executive employees. This recovery has been challenged by the employees before the Calcutta High Court and as per the directives of the Court, the amount so recovered has been deposited with the State Bank of India, Nagpur. As per directives of CIL and pending settlement with the employees the same has been kept separately under FC 470120 to the tune of 19.93 Crores During the year this deposit has earned an interest of 1.63 Crores (Previous year 0.80 Crores) and the same is treated as liability. There is a contingent liability against the Company to the extent of interest, if any, awarded by the Court on final disposal of the case.
c)
6.
SHORT TERM PROVISIONS: (Refer Note No- 9) a) The provision for Income Tax for the year 262.14 Crores (Previous Year 447.90 Crores) has been worked out as per the provisions of the Income Tax Act 1961 and on the basis of completed assessments of the Company. An amount of 22.77 Crores is withdrawn against earlier year provision.
7.
FIXED ASSETS: (Refer Note No-10A) a) Since physical possession of land is obtained only after making payment to the land owners, Land acquired under Land Acquisition Act, CBA (A&D) Act, and on private negotiations, amounting to 33.84 Crores (Previous year 13.83 Crores), on the basis of payments/compensation made as per approval of Competent Authorities pending final settlement are, included in Fixed Assets. Buildings include roads and culverts situated in colliery and townships as well as cost of electrical fittings, water supply arrangements and sanitary fittings. Plant and Machinery are shown net of Input Tax Credit claim of VAT and CENVAT credit receivable wherever applicable. Fixed Assets taken over by Company from Western Division of Coal Mines Authority of India Ltd, vested consequent to nationalisation of Coal Mines, appearing as Assets taken over on Nationalisation under the head Fixed Assets, stood depreciated in the course of earlier years and are appearing in accounts at a total residual value of 0.01 crore only. Company took over various assets from the Coal Mines Labour Welfare Organisation (since repealed) situated at various locations and Coal Mines Rescue Station at Pench, in the years 1984 and 1986 respectively, consequent to decision
120
b) c) d)
e)
by Government of India. These Assets have not been incorporated in the Accounts pending finalisation of purchase consideration thereof by the Central Government. Accounting adjustment would be made on final determination. f) Some of the title deeds/lease deeds for land, buildings and mining rights continue to be held in the name of Coal India Ltd, pending transfer formalities. Title deeds/ Lease deeds in respect of Land are subject to verification. DFD Plant and CBE Plant continue to remain inoperative during the year.CBE Plant stands closed since 2003 and DFD Plant since 1994. Leasehold Land of DFD Plant is being amortized over the lease period of 30 years. Plant & Machinery of CBE Plant, excepting Hospital Equipments, has been disposed off by auction through MSTC. All the other assets of both these plants are carried in the books at a residual value of 5% of their cost. Physical verification of Fixed Assets as on 31.03.2003 was done in all the Areas by firms of Chartered/Cost Accountants and their reports were received. An outside agency has done the reconciliation for inter-area and intra-area transfers and their report has been received during 2006-07. Some intra-area and inter-area discrepancies were accounted in cases where items were physically identified. The balance inter-area adjustments is under process. However, physical verification of P&M and vehicles valued at 1 lakh and above is done by local Area management every year. The carrying cost of the Fixed Assets in World Bank aided projects have been adjusted to the extent of Foreign Exchange fluctuations in case of loans from World Bank to the tune of (+) 9.19 Crores, (previous year (+) 6.23 Crores) as intimated by Coal India Ltd.
g)
h)
i)
`
8.
CAPITAL WORK IN PROGRESS (CWIP) :(Refer Note No-10B) a) b) CWIP pending since more than 3 years is 14.63 Crores (P.Y. 16.62 Crores).
Provision Equivalent to Depreciation has been provided on Plant & Machinery lying in Stores for more than three years. The resultant impact in current year is 0.11 Crores (Previous year (-) 0.43 Crore). Inventory of Steel, Cement, Cables, Conveyors, etc. lying at year end are forming part of Capital Work-In-Progress. Provision for Non-Moving Capital Stores & Spares, not moved for 5 years is made, as per companys accounting policy, @ of 50% and provision is made @ 100% for unserviceable, damaged and obsolete stores. During the year there has been a withdrawal of provision to the tune of 0.13 Crores (previous year 0.03 Crores) (Thus the year-end closing provision stands at 0.09 Crores (Previous year 0.22 Crores). Cost of Asset as well as provision for depreciation on surveyed-off Assets are taken out of the Gross Block and provision for depreciation respectively and the residual value at 5% of Book Value are shown as a separate line item as Surveyed off assets under Capital Work-in-Progress (Note 10B). In case of premature
121
c) d)
e)
surveyed off assets the difference between the WDV and residual value of 5% is charged to Statement of Profit & Loss, as loss on surveyed-off assets. Surveyed off assets lying in Stores, amounting to 20.66 Crores (previous year 18.47 Crores) valued at 5% residual value, have not been physically verified. Since in the opinion of management, expected realisable value is more than the book value, the existing provision of 1.16 Crores is maintained and no further provision has been made. 9. INVESTMENTS: (Refer Note No-11) a) The Bonds received on Securitization of dues from State Electricity Boards, from the State Governments of Maharashtra & Madhya Pradesh with a lock-in-period of five years are treated as long term investments and are valued at cost unless there is a permanent diminution in the value of investment. The year-end balance as on 31.3.2012 is 128.36 crores. Out of this the amount maturing within 12 months 32.09 crores is shown as current investment (Note- 14).
10.
LONG TERM LOANS & ADVANCES: (Refer Note No- 12) a) The advances to suppliers/contractors and for capital works/mobilisation advances lying unadjusted since long are 1.93 Crores (Previous year 2.81 Crores). Necessary provisions are appearing in the books of accounts for the same amount.
11.
INVENTORY: (Refer Note No-15) a) Provision for Non-Moving Stores & Spares, not moved for 5 years is made, as per companys accounting policy, @ of 50% and provision is made @ 100% for unserviceable, damaged and obsolete stores. During the year there has been a withdrawal of provision to the tune of Rs. 0.79 Crores (previous year addition of Rs. 1.52 Crores). Thus the year-end closing provision stands at 12.85 Crores (Previous year 13.64 Crores).
12.
TRADE RECEIVABLES : (Refer Note No-16) a) During the year an amount of 3.09 Crores has been withdrawn towards provision for Doubtful Debts. Total year-end Provision for Doubtful Debts as at 31st March 2012 stands at 119.08 Crores (P.Y. 122.17 Crores). Ministry of Power, Government of India had advised Madhya Pradesh Power Generation Corporation Ltd. (MPPGCL) to securitise outstanding principal and interest up-to 30.09.2001 of 171.94 crores and 21.99 crores respectively. MPPGCL had securitised 123.91 cores in 2003. The balance of 70.02 crores still unsecuritised .
b)
13.
OTHERS a) The government of Madhya Pradesh by Gazette Notification dated 30/09/2005 has imposed a new tax named Madhya Pradesh Gramin Avsanrachana Tatha Sadak Vikas Adhiniyam, 2005 (MPGATSVA 2005), with effect from 30/09/2005. This Adhiniyam provides for charging of tax @ 5% on annual value w.e.f. 30.09.2005. Some consumers as well as WCL moved the Honble High Court of Madhya Pradesh, Jabalpur and obtained interim relief. As per the interim order dated 15/02/ 2006 the Honble High Court, Jabalpur had directed the Compay not to deposit this tax to the State Government but to keep in a fixed deposit. The matter was later 122
dismissed by the Jabalpur High Court in favour of MP Government. WCL has filed an SLP before the Honble Supreme Court and the matter is still sub judice. The Honble Supreme Court of India vide its order dated 02-08-2010 directed the Company to file its returns for all the years under protest as per MPGATSVA (2005). The Honble Supreme Court directed the assessing officer under the Act to complete the assessments of returns filed by the Company. In compliance with the Supreme Court directions the assessing officers raised total demand of 244.59 Crores against the Company upto 31/03/2012. As per legal advice full amount of demand made during 2010-11 amounting to 205.79 crores has been paid. The company, as per legal advice, has deposited 19.36 crores (being 50% of total demand raised during 2011-12) and has preferred Appeals against the assessment orders with Competent Appellate Authority, Jabalpur and Bhopal. An amount of 299.21 Crores has been received from customers on this account up to 31/03/12. Term Deposit, against this receipt upto 31st March 2012 (after adjusting 225.15 Crores paid for appeal), for 68.84 Crores has been made upto 31st March 2012 and Term Deposit for balance 5.22 Crores is made in May 2012. The matter is now pending before the Honble Supreme Court and Appellate Authority Jabalpur. The interest on fixed deposits made on this account is treated as liability. b) Pending decision of Honble Supreme Court of India 4.52 Crores being interest on delayed payments on account of enhancement of rate of royalty on coal, collected from customers in the earlier years, continued to appear in account Advance & Deposits from Customers under the head Other Current Liabilities (Previous year 4.52 Crores). By virtue of enactment of Cess and Other Taxes on Mineral Validation Act, 1992, the Company raised supplementary bills on customers upto 4.4.1991. An amount of 2.96 Crores (Previous Year 2.96 Crores) has been shown as liability for Cess on Royalty under the head Other Current Liabilities. In view of the judgment of Honble High Court, Patna, and Ranchi Bench in writ petition no.CWJC/1280 of 1992, the said Cess is not payable. However a Special Leave Petition is pending in Supreme Court against it. As per interim orders dated 20.06.2005 and 29.06.2005 of Nagpur Bench of Honble Bombay High Court, WCL has made Fixed Deposit in Nationalised Banks for the amount of difference between weighted average of e-auction price and notified price for coal supplied to the petitioners during the period 01.07.2005 to 31.12.2005. On 12.12.2005, Honble Supreme Court directed to supply coal to petitioners on payment of notified price plus 33.33% of enhanced price and by furnishing security for the balance amount of 66.67% of enhanced price with an undertaking to the Honble Supreme Court that the said part will also be paid within 6 weeks of the decision of the apex court in the Writ Petitions in case the Writ Petitions are decided against the Petitioners. However, the petitioners voluntarily deposited with WCL the full value of coal, i.e., notified price plus full difference between weighted average price and notified price along with a letter of undertaking. The total amount so deposited by the Customers till 31.03.2007 was 39.78 crores, which was shown under Advances and Deposits from Customers. An equivalent amount of 39.78 Crores was deposited with Nationalised Banks in Fixed Deposit a/c by the Company. The interest earned on the Fixed Deposits was treated as a current liability to be adjusted against the actual interest as and when paid to the customers.
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c)
d)
As per the directive of Supreme Court an amount of 4.04 crores was to be deposited with the Court and the Company has paid this amount to Coal India Ltd for depositing with the Court. This amount is shown as advance deposit in our books. As per the Supreme Court order dated 9th May, 2008, refund claims of the customers are to be verified by a Committee at WCL HQ level and the money is to be refunded to the claimants directly. Accordingly an amount of 22.97 crores together with interest of Rs 4.11crores has been refunded to the claimants. The total refunds and interest paid till 31.3.2012 (including the above refund and interest) are 39.29 crores and 7.60 crores respectivel Considering the refunds made to the customers and the amount paid to CIL, there is no Fixed Deposit on this account as on 31st March 2012 e) The Company had approached MSRDC to construct a bridge over Wardha River near Nakoda in Wani Area to reduce the lead for coal transportation between the mines of Wani Area and Railway Siding at Wani. An agreement was entered into with MSRDC on 23.12.1997 for construction of the bridge and a loan of Rs. 2.35 Crores was agreed to be given by WCL to MSRDC, against which a loan of Rs.1.13 Crores, carrying a simple interest @ 9% p.a. was given to MSRDC in 1997-98. The bridge is currently being used to transport coal across Wardha River. The loan is to be repaid by MSRDC after repayment of its other loans. However, till date no amount is repaid by MSRDC. The remaining amount of loan of R1.22 Crores has not been released as WCL wants to establish a time bound schedule for repayment of the loan and interest thereon. Negotiations have been initiated with MSRDC for this purpose. Since the principal amount of advance is doubtful, necessary provision for Rs. 2.14 Crores (including interest accounted for as income up to 31.3.2010 of Rs. 1.01Crores) exists as on 31.03.2012. In view of this, since the year 2010-11, the interest amounting to Rs. 0.10 Crores per year on this advance has not been recognised as income and also no further provision was necessary during the year. f) Report of the Tripartite Committee, comprising of Subsidiary/Mine Management, CMPDIL and Explosive Manufacturers, set up to finalise the benchmark powder factor of each mine for the period 2005-06 and April06 to July06, is still awaited. It has been decided by CIL that Subsidiary Management shall review the impact of considering the powder factor of 2003-04 and 2004-05, whichever is higher vis-vis actual achieved during 2005-06 and submit the Companys view through CMD to CIL. This review is yet to be finalized. As such no recovery has been made from bills for supply of explosives during that period. Pending finalization of the issue, the Bank Guarantees submitted by the suppliers is not released by CIL. Subsequent supplies are covered by new rate contracts which specify that recovery on account of powder factor is to be adjusted after final powder factor reports are received from the Areas on quarterly basis. Pending receipt of final reports for quarter ending March 12 the deduction of Rs.1.23 Crores during current year is appearing as a liability (P.Y.1.01 Crores). Accordingly, the expenditure on account of explosive consumption has not been adjusted since the amount is not ascertainable. During the year 1993-94 a suspected fraud case was detected at Nandgaon Incline of Chandrapur Area, quantified by the Internal Audit Department to the tune of Rs. 0.12 Crores and the same is under CBI investigation. An amount of Rs. 0.02 124
g)
Crores has been recovered from the party and credited to income. For the balance of 0.10 Crores the recoverable figure is matched with a similar provision. h) During the year 1995-96, a theft case at CWS Stores was suspected and police complaint was lodged. A department enquiry is also under progress. During the course of such enquiry many kardex were seized/taken out of investigation. Pending final outcome of the enquiry, the workshop continues to maintain a provisionof 0.14 Crores. In case of Land in Chandrapur/Ballarpur/Wani/Nagpur Areas, a common judgement was pronounced on 05.01.2009 by the Honble Bombay High Court in NonAgricultural assessment cases. Accordingly, there is a contingent demand of Land Revenue, ZP/GP Taxes and Additional Taxes for the period from 1980 to 2009 to the tune of 62.04 crores. However, the Company has filed a Leave Petition before the Divisional Bench of Bombay High Court, on behalf of the Areas on the grounds that such taxes are not payable on lands acquired under Coal Bearing Area Act. The Company had preferred appeals in cases of Income Tax and Sales Tax assessments completed. Pending decision, no provision has been considered necessary and the amount paid/recoverable is being continued to be kept under Loans and Advances/Claims Receivables. The Rate Contracts (RC) for supply of explosives by different suppliers expired on 28th February, 2006 and pending renewal of the RCs the suppliers were asked to continue the supplies at the same rates as prevalent in the expired RC, subject to the condition that such extended period supplies would be governed by the rates as fixed in the new RC. This continued upto 28th July, 2006. The new RC was finalised and came into effect from 29th July, 2006 with a reduced price of the explosives. As a result, the supplies during the extended period of the earlier RC were found to be supplied at a higher price than actually applicable. Hence recovery of excess amount paid was made from the suppliers. Against the above recoveries, some of the suppliers, (six parties) filed a Civil Suit before Honble Calcutta High Court. The Honble High Court of Calcutta granted stay in December 2006 for recovery and directed CIL to stop such recovery of excess payments. Accordingly CIL directed WCL to refund the amount deducted from the six suppliers. The Honble High Court of Calcutta asked these suppliers to deposit the disputed amount in question in an account with the Joint Receiver appointed by the Honble High Court. As the suppliers having failed to do so, the Honble Calcutta High Court in July 2008 vacated the stay of recovery of excess payment made to such suppliers. Hence, CIL directed WCL to restart the recovery of such amount from the running bills of the suppliers as per directives of Court, an amount of 2.58 crores is recovered and kept in the books under a separate account (Liability Code 480199) since 2008-09, pending final disposal of the case by the Court. 14. REVENUE FROM OPERATIONS: (Refer Note No-20) a) Gross sales is shown in the accounts as net of levies like entry tax, transit fees, MPGATSVA Tax, etc. levied in the state of Madhya Pradesh amounting to 45.73
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i)
j)
k)
Crores, but is inclusive of other statutory levies like Royalty, Stowing Excise Duty, Central Excise Duty, Clean Energy Cess, Sales Tax, etc. Such levies (other than entry tax, transit fees and 5% M.P.G.A.T.S.V.A. Tax) are shown separately and reduced from gross sales to arrive at net sales. b) Net Revenue from operations includes 58.95 Crores, Performance Incentive Bills raised as per Fuel Supply Agreements (FSA). This includes 48.58 Crores for the supplies made in the current year and 10.37 Crores for balance supplies for the year 2010-11 as per FSA. As per the Coal Supply Agreement on Cost Plus basis between the Company and MAHAGENCO for supplies from Adasa UG mines of Nagpur Area, Clause 7.4 provides for a discount in price of 30% of the contracted price if the coal supply exceeds the contracted quantity. Accordingly, during the year Nagpur Area has made a provision of 8.49 Crores (P.Y. 5.82 Crores). In respect of mines having cost plus agreement with MSPGCL for supply of coal, coal sales bills are initially raised only for 90% value of coal plus 100% duties and Taxes. Final bills (for balance value) are raised after receipt of acceptable quality analysis reports of sampling at loading and unloading ends. For the current year final bills consisting of 10% portion amounting to 35.90 Crores have been accounted for. Impact of e-auction for the year 2011-12 and change in pricing from Useful Heat Value (UHV) based system of Grading to Gross Calorific Value (GCV) based system during the year are as follows: Impact of E-auction Impact of GCV based pricing w.e.f 01.01.2012 -77.11 -69.75 -7.36
c)
d)
e)
Gross Sales Net Sales Taxes / levies 15. EMPLOYEE BENEFITS: (Refer Note No-24) a)
876.24 757.32 118.92
The National Coal Wage Agreement (NCWA-IX) effective from 01-07-2011 has been finalized on 31st January 2012 for Wage Board employees. Summarized position of financial impact of Pay Revision excluding gratuity impact for employees who retired during the period from 01.07.2011 to 31.03.2012 and the impact of actuarial liability is as under:Impact of Pay Revision as on 31.03.12 : 401.90 Crores
Apart from the above, impact of gratuity for revision of salary and wages to be paid to the employees who retired during the period 01.07.11 to 31.03.12 works out to 4.25 Crores. Actuarial liability as on 31.03.2012 towards gratuity, earned leave encashment, life cover scheme and settlement allowance for non-executives includes the effect of
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wage revision, on the above benefits by 8.05 Crores and 51.76 Crores.
336.64 Crores,
41.70 Crores,
The year-end liability of certain other employee benefits like Gross Personal Accident Insurance Scheme, Leave Travel Concession, Medical Benefits for Retired Executives, Compensation to dependents in case of mine accidental death are valued on actuarial basis, as done in earlier years. b) The provision for Performance Related Pay for Executives has been made at 60.89 Crores (previous year 73.95 Crores) in line with the recommendation of the Committee formed by CIL to evaluate the liability. During the year lump sum recoverable advance, calculated at 75% of Performance Related Pay (PRP) payable to individual executives for the years 2007-08 to 2010-11 amounting to 101.11 crores has been paid to executives and shown as advance. The provision for Performance Linked Reward Scheme / Productivity Linked Bonus Scheme for non-executives for the year 2011-12 @ Rs 20,000/- per employee has been made at 108.96 Crores. As per instructions from CIL, provision has been created for Pension payable to employees @ 3% of pay (Basic +DA) and @ 6.84% of pay for other Superannuation Benefits amounting to Rs. 20.58 Crores (P.Y. 17.63 crores).
c)
d)
e)
16.
`
COMPLIANCE WITH MANDATORY ACCOUNTING STANDARDS: i. Prior period adjustments under AS-5 : The expenses pertaining to previous years which are less than 5 lakhs has been charged in current year which deviates from AS-5. The impact of this on the profit of the Company for the year is reduction in profit to the tune of 0.12 Crores (P.Y 0.02 Crores). ii. Employee Benefits under AS-15 : The Company has adopted AS 15 (Revised) - Employee benefits with effect from 1st April, 2007. Pursuant to the same, the Company has adjusted the additional liability arising on adoption of AS-15 (Revised), net of related deferred tax assets arising out of such adoption as on 1st April, 2007 against the General Reserves. 1. Short term employee benefits: The Company recognises the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid. Post-employment benefits: the company operates defined contribution plans pertaining to Coal Mines Provident Fund schemes for all employees. Other long-term employee benefits : Entitlements to annual leave and sick leave are recognised when they accrue to employees. Sick Leave can only be availed during service period while annual leave can either be availed or encashed subject to leave rules of the Company. The Company determines the liability for such
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2. 3.
ANNUAL REPORT 2011-12 accumulated leaves using the Projected Accrued Benefits Method with actuarial valuations being carried out at each Balance Sheet date.
4.
Terminal benefits : VRS benefits are recognized in the books in the year of occurrence. Table showing movement in Actuarial valuation of Gratuity, Leave Encahsment and other Employee benefits.
GRATUITY (FUNDED) LEAVE EN CASHMENT (UNFUNDED) LLTC/LTA/ LIFE COVER/SETTLE- MENT ALL./MEDICAL/FATAL ACCIDENT COMP. & ACCIDENTAL INS.(UNFUNDED)
Actuarial Valuation as on 31.03.2012 Actuarial Valuation as on 31.03.2011 Net Incremental Liability for C.Y. Add : Reduction in Fund due to disbursement during C.Y. Less : Addition to Fund by Interest earned in C.Y. Net Payment in C.Y. Premium for Life Cover for C.Y.
2126.04 1535.03 591.01 197.97 137.39 175.94 *0.98
345.54 253.55 91.99
139.01 69.88 69.13
The total charge on account of Gratuity to P&L A/c during the year is 629.01 Crores against the net incremental liabilities of 591.01 Crores. The difference of 38.00 Crores is towards liability provided for impact of gratuity due to revision of pay of non-executive employees amounting to 14.25 crores and unpaid gratuity toseparated employees separated before 31.03.2012 but not paid amounting to 23.75 crores. * The annual Life Cover premium for the period from March, 2012 to February, 2013 is 11.71 Crores, out of which 0.98 Crores is charged to Current Year expenses and balance of Rs. 10.73 Crores is booked to Prepaid Expenses. Considering the prepaid premium of 2010-11 to the tune of 6.33 Crores the total premium for the current year is 7.31 Crores. The incremental liability based on actuarial valuation for provision for Retired Employees Medical Benefit of 2.96 Crores has been accounted for at HQ. The following disclosures are made in accordance with AS-15 (Revised) pertaining to the Gratuity (Funded Plan) :
Changes in Present Value of Obligations As at 31.03.2012 1535.03 114.88 86.44 197.97 587.66 2126.04 As at 31.03.2011 1492.18 119.30 60.17 177.18 40.56 1535.03
Present Value of Obligation at beginning of the year Interest Cost Current Service Cost Benefits paid Actuarial gain/loss on obligations Present value of Obligation at end of the year 128
WESTERN COALFIELDS LIMITED Changes in Fair Value of Plan Assets As at 31.03.2012 Fair Value of Plan Asset at beginning of the year Expected Return on Plan Asset Contributions Benefits paid Actuarial gain/loss on Plan Asset Fair Value of Plan Asset at end of year Funded Status As at 31.03.2012 Present value of obligation at end of the year Fair Value of Plan Asset at end of the year Funded Status Unrecognised actuarial gain/loss at end of the year Net Asset (Liability) recognized in Balance Sheet Expense recognized in Statement of Profit & Loss As at 31.03.2012 Current Service Cost Interest Cost Expected Return on Plan Asset Actuarial gain/loss recognized in the year Expense recognized in Statement of Profit/Loss Movements in Liability recognised in Balance Sheet As at 31.03.2012 9.13 651.59 175.94 484.78 2126.04 As at 31.03.2011 85.94 84.13 160.95 9.13 1535.03 86.44 114.88 122.07 572.34 651.59 As at 31.03.2011 60.17 119.30 112.50 17.16 84.13 2126.04 1641.26 -484.78 0.00 -484.78 As at 31.03.2011 1535.03 1525.90 -9.13 0.00 -9.13 1525.90 122.07 175.94 197.97 15.32 1641.26 As at 31.03.2011 1406.23 112.50 160.95 177.18 23.40 1525.90
Opening Net Liability Expenses as above Contributions Closing Net Liability Closing Fund/Provision at end of year
Summary of Actuarial Assumptions Discount rate Inflation rate Mortality rate Attrition rate Formula used 8.00% 6.25% LICI 1994 - 96 10 per thousand p. a. Projected Unit Credit Method
The provision made during the year for pension and superannuation benefit of Executives have not been done on the basis of actuarial valuation.
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iii.
Segment Reporting under AS-17 : The Company has two business segments, viz. Collieries and Washery. Since the revenue/ profit/assets of the Washery is less than 10% of the total revenue/profit/assets of the Company, the Washery is not a reportable segment under AS-17. The operations of the Company are confined to Central India; hence no geographical segments are identified.
iv. 1.
Related Party Disclosure as required under AS-18 : KEY MANAGEMENT PERSONNELS: Shri D.C. Garg Shri O.P. Miglani Shri B.K. Saxena Shri Om Prakash Sri Sushil Behl Shri Rupak Dayal CHAIRMAN CUM MANAGING DIRECTOR DIRECTOR (PERSONNEL)(up to 31.05.2011) DIRECTOR (TECH)-OPERATION DIRECTOR (TECH)-PROJECT & PLANNING DIRECTOR (FINANCE) DIRECTOR (PERSONNEL)(From 29.09.2011)
2. 1
Related Party transaction: 2011-12 Remuneration: Gross Salary Employers contribution to PF Gratuity 0.90 0.09 0.10 0.20 0.07 1.02 0.83 0.08 0.00 0.01 0.02 0.01 2010-11
2 3 4
Medical Reimbursement Sitting fees paid to Independent Directors Year-end balance of Advances*
* During the year, lump sum recoverable advance, calculated at 75% of Performance Related Pay (PRP) payable to individual Directors for the years 2007-08 to 2010-11 , amounting to ` 1.02 crores has been paid. However, the gross salary does not include the provisions for contribution to Gratuity, Leave encashment and other employee benefits, which are made actuarial valuation, done on an overall Company basis. 3. In view of the exemption granted to State controlled enterprises as regards related party relationship with other State controlled enterprises and there being no transaction with other related enterprises & parties, no disclosure under the Accounting Standard (AS-18) on Related Party Disclosures is made, being not applicable for the Company.
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on the basis of
WESTERN COALFIELDS LIMITED v. Disclosure of Earning per Share as required under AS-20 : Previous Year 538.31 538.31 29,71,000 1000.00 1811.86
Particulars Current Year i) Profit After Tax ( ` Crores) 306.71 Less : Preference Dividend Profit attributable to Ordinary Shareholders ( Crores) 306.71 ii) No. of Ordinary Shares (in Nos.) for basic and diluted EPS 29,71,000 iii) Nominal value of Ordinary Shares 1000.00 iv) Basic & Diluted Earnings per Ordinary Share 1032.35
vi.
Accounting for Taxes on Income under AS-22 Table showing Deferred Tax Assets/Liability Deferred Tax Deferred Tax Asset/Liability Asset/Liability as on 31.03.2012 as on 31.03.2011
A Deferred Tax LiabilitiesDifference between Book & Tax Depreciation B Deferred Tax Assets VRS Statutory Dues Provision for Doubtful Debts Provision for Doubtful Advances Provision for Leave Encashment Provision for Obsolescence/ workshop WIP Provision for Claims Provision for Shortage of Stores Land Reclamation Provision Disallowance u/s 40(a) of Income Tax Act PLRS / PLBS & PRP MP Gramin Tax Provision for Pension & superannuation Other Actuarial Liabilities Fatal Mine Accident Benefit Retirement Medical Benefit TOTAL Deferred Tax Assets (net) (B-A)
56.45
59.15
0.65 2.34 38.63 2.09 112.11 4.55 1.94 0.49 157.93 4.23 93.65 22.11 26.34 31.91 10.81 2.39 512.17 455.72
1.86 2.92 40.58 1.83 84.23 4.97 2.00 0.50 87.40 4.89 101.55 33.21 20.13 11.16 10.59 1.46 409.28 350.13
vii. Consequent to mandatory provisions of AS-24 relating to Discontinuing Operations w.e.f. 01.04.2004, the following disclosures are made: a) CBE Plant, Bhandara: The Plant used to manufacture Nitro-Glycerine based Permitted Explosives used in the underground mines of the Company till its closure on 28.04.2003. Consequent upon decision of the Government of India to discontinue/ ban production of NG-based explosives in the country and its adoption by the Board of Ordnance Factories of India, the Jt. Venture partner of the Plant, the Plant was closed on and from 28.04.2003. 131
CIL had given its approval for disposal of the Plant and the Company in its 197thBoard Meeting held on 19.04.2006 had approved the disposal of P&M by tendering/eauction and accordingly the P&M along with related stores & spares have been disposed of during 2006-07 by auction through MSTC. The Net Block of assets pending disposal is ` 0.08 Crores. The liability towards Overheads after closure of the Plant till 31.03.2012 for maintenance and upkeep of the Plant is 0.40 Crores. The revenue expenses incurred during the current year is NIL Crores (Previous Year NIL) Since the Plant works on No-Profit-No-Loss basis, all expenses are passed on to the Areas. Hence there is no question of profit/loss. There is a NIL Crores cash outflow attributable to operating, investing and financing of discontinuance (Previous Year NIL) b) DFD Plant, Hinganghat : The Plant used to manufacture Coal Briquettes from raw coal for domestic fuel purposes till its closure in 1994. Consequent upon nonviability of the Plant as per the decision of the Board of the Company, the Plant was closed in 1994. The disposal of the Plant is under process and the exact date of completion of discontinuance is not determinable as of now. The Net Block of assets pending disposal is 0.03 Crores and the liability towards Municipal Taxes is 0.04 Crores. The Company has applied to the Hinganghat Nagar Palika for waiver of the Municipal Taxes for the past four years on the ground that the Plant is no more in operation. The revenue expenses incurred during the current year is 0.01 Crores (Previous Year 0.01 Crores). Since the Plant is in-operative for the past ten years and the final disposal of the Plant is yet to be done. There is no cash outflow attributable to operating, investing and financing of discontinuance. viii. Impairment of Assets : AS-28 : The Company regularly assesses, at each balance sheet date the impairment of assets if there is existence of any of the six external and internal indications prescribed, on each Balance Sheet date. In case of Land and Building, there is universally upward trend in Valuation. Unless,there is damage to building, the company does not make any provision for land and building. Similarly, in case of Plant and Machinery and HEMM there is no downward trend, hence no impairment is recongnised unless Asset is obsolete or damaged. In respect of prospecting & Boring and Development Expenses in continuous loss making mines, have been considered for impairment, provided there is no clear indication for its revival in near future. During the Current Year an amount of 5.00 Crores has been charged to Profit & Loss Account as impairment loss against P & B, Development Expenditure (DE) and Plant & Machinery in the current year (P.Y. 5.29 Crores) ix. Provisions, Contingent Liabilities and Contingent Assets AS-29 As per directives of Coal India Ltd, provision for Mine Closure in the books is made from the year 2010-11 on the basis of guidelines of Ministry of Coal circulated vide letter no. 55011/1/2009 -CPAM dated 27.08.09.
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Pending formulation of Final Mine Closure Plan, provision is made considering the land area as per Environment Clearance / Environment Monitoring Plan for all existing mines in operation. The provision amount has been computed @ 6.00 lakhs per hectare for Opencast mines, and @ 1.00 lakh per hectare for Underground mines with 5% escalation over previous year. During the year an amount of 223.66 Crores has been made on this account. Table showing movement in various provisions:
Sr. No. i ii iii iv v vi vii viii ix x Provisions For proposed Dividend For Corporate dividend tax For Gratuity (as per actuarial value) For Leave encashment For other Employee benefits For Income Tax OBR Adjustment Account Land Reclamation Bad & Doubtful Debts Provision for doubtful advances and claims Opening balance as on 01.04.11 323.24 52.44 9.13 253.55 130.47 1152.21 1527.42 263.10 122.17 11.55 Addition during the year 184.04 29.86 651.59 91.99 89.71 262.14 458.95 223.66 0.86 Closing Write back/ adj. During balance as the year on 31.03.12 323.24 52.44 175.94 313.32 3.09 184.04 29.86 484.78 345.54 220.18 1101.03 1986.37 486.76 119.08 12.41
`
17. CONSISTENT METHOD OF ACCOUNTING : As per consistent policy of the Company, the following methods of accounting continue to be in vogue: a) Accrual basis of accounting has been followed except in the following cases: i. ii. iii. iv. Liquidated damages, interest on delayed payment and escalation claims from Customers on the basis of final settlement. Insurance/Railway claims on admission/final settlement. Scraps are accounted for on realisation. Refund/adjustment consequent to assessment of tax from Tax authorities excepting Input Tax Credit claim of VAT are accounted for on cash basis. Additional demand of Income Tax, Royalty, Cess, Sales Tax, Entry Tax, etc. are accounted for after final order in appeals, pending such appeal payment made against additional demand are treated as Advance/Claims.
b)
Revenue Recognition: Sales Bonus claims on customers, as a result of Joint Sampling are accounted for in sales in the year of settlement irrespective of period of dispatch. Credit Sales are recognised based on date of D-Note (Forwarding Note to Railways) and Cash Sales are recognised upto despatches as of 24:00 hrs. on 31st March.
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ANNUAL REPORT 2011-12 c) Foreign Currency Transactions: i. Foreign exchange differences arising on accrual/repayment of liabilities incurred for the purpose of acquisition of fixed assets are adjusted in the reported currencies by applying the closing rates. Foreign exchange fluctuations are accounted in the reported currencies by applying the closing rates. The effects of change in foreign exchange rate are adjusted with the related assets as per pre-revised AS-11 as the agreement for the loan was executed prior to revision of AS-11, w.e.f 1.4.2004.
ii.
d) e) f) 18.
Own consumption of coal is valued at basic price of declared grade of coal of the related mines. Productions of Coal is derived from records of dispatches billed, internal consumption, opening and closing stock and are further certified by CIL Team. Balances of Sundry Debtors, Sundry Creditors and Advances from Customers and other accounts payable are subject to confirmation. OTHERS a) Revision of Schedule VI to the Companies Act 1956 ( w.e.f. 01.04.2011) Following the Gazette notification dated 30th March, 2011 the Schedule VI of the Companies Act 1956 dealing with the format of Balance Sheet has modified and a format for Statement of Profit & Loss is introduced. The format as per revised Schedule VI has been applied while preparing this accounts. Following the new guidelines of the revised format inter-alia, the following segregation has been made in the Balance Sheet:-
Current Assets An asset has been classified as current when it satisfies any of the following criteria:It is expected to be realized in, or is intended for sale or consumption in, the companys normal operating cycle It is held primarily for the purpose of being traded It is expected to be realized within twelve month after the reporting date It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reposting date. Non-Current Assets All assets other than current assets are Non- Current Assets Current Liabilities A liability has been classified as current when it satisfies any of the following criteria:It is expected to be settled in the companys normal operating cycle It is held primarily for the purpose of being traded It is due to be settled within twelve month after the reporting date The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. 134
WESTERN COALFIELDS LIMITED Non-Current Liabilities All liabilities other than current liabilities are Non- Current Liabilities. Operating Cycle for Western CoalFields Ltd As there is no normal operating cycle the same is considered to be 12 months period. b) CIL has been levying additional Apex Charges @ ` 6.00 per ton of coal dispatch to meet the rehabilitation & firefighting expenses of Jharia and Raniganj areas of BCCL/ ECL. An amount of 25.18 Crores (Previous year 25.53 Crores) has been charged to P&L A/c on this account. Figures of previous year have been regrouped/rearranged wherever necessary Notes 1 to 32, Significant Accounting Policies and Additional Notes on Accounts in Notes 33 & 34 form integral part of these accounts.
c)
M.SUBRAMANIAN
RAMEHER
Company Secretary
SUSHIL BEHL
Director (Finance) (DIN-02841938)
D.C. GARG
As per our report of even date FOR C.R.SAGDEO & CO Chartered Accountants (FRN 108959W) CA. SACHIN V. LUTHRA, PARTNER (M.No. 109127) Place : Nagpur Date :
135
NOTE 34 A NOTES PROVIDING STATUTORY INFORMATION 1. CONTINGENT LIABILITIES: Claims against the Company not acknowledged as debts as on 31st March 2012, amounting to 968.32 Crores (Previous Year 596.07 Crores), include: a) i. ii. iii. Claims under Income Tax, Sales Tax, Service Tax and other Acts: Demand notices from Income Tax authorities for 457.83Crores towards Corporate Tax and 3.13 Crores towards Tax on perquisites to employees. Demand notices from Income Tax authorities for 0.77 Crores under section 194 J rws 201(1)of the Income Tax Act. 1961. Demand raised by District Revenue Authorities on account of Surface Rent 8.85 Crores, Non-Agricultural Assessment Tax of 59.68 Crores, Cess on Royalty 0.58 crores and Gram Panchayat Tax 0.58 crores. Demands raised by Sales Tax Authorities on account of Sales Tax amounting to 151.09 Crores. Demands raised by Sales Tax Authorities on account of Entry Tax amounting to 96.37 Crores on HEMM and 2.42 Crores on coal. Demands raised by Service Tax Authorities on account of Service Tax amounting to 0.93 Crores. Claims other than those under Income Tax, Sales Tax, Service Tax and other Acts: Claims for enhanced compensation by land owners amounting to 82.65 Crores. Claims by employees towards remuneration related cases amounting to 5.52 Crores. Claims by Contractors & others pending decision by Arbitration/ Courts 57.46 Crores. Claims by customers 35.29 Crores. Claims by Railways for Siding maintenance Charges 5.17 Crores There are claims by employees and others where the amounts are not specified. In some cases interest has been claimed. However as the amounts are not specified, the contingent liability is not ascertainable. Letters of Credit and Bank Guarantees: Letters of Credit outstanding as on 31st December 2012 amounting to 0.45 Crores. The Company has issued Bank Guarantees amounting to 1.18 Crores in favour of Maharashtra Pollution Control Board.
iv. v. vi. b) i. ii. iii. iv. v. vi.
c) i. ii. 2.
CAPITAL COMMITMENT: The estimated amount of contracts remaining to be executed and not provided for in the Accounts: i. ii. On Capital Account 82.19 Crores (P.Y. 61.74 crores) On Revenue Account 822.50 crores.
136
3.
DETAILS OF OPENING STOCK, PRODUCTION, TURNOVER AND CLOSING STOCK :
( A ) COAL : OPENING STOCK :

Current year(2011-12) Qty 000 MT Value Crores 340.6033 11.1636 0.1658 0.2359 8.2115 360.3801 Previous Year (2010-11) Qty 000 MT Value Crores 211.1383 0.0000 0.9503 0.0925 6.0922 218.2733
Raw Coal (Revenue Projects) Raw Coal Stock brought to Revenue Washed Coal Middling Slurry
3856.30 94.47 0.47 1.81 70.35 4023.40
2856.35 0.00 2.21 0.77 54.88 2914.21
(B) PRODUCTION :
Current year(2011-12) Qty 000 MT Value Crores Previous Year (2010-11) Qty 000 MT 43520.88 133.50 191.30 139.34 52.84 44037.86 Value Crores
Raw Coal (Revenue Projects) Raw Coal (Development Projects) Washed Coal Middling Slurry
43109.93 0.00 136.48 96.65 36.14 43379.20
TURNOVER :
Current year(2011-12) Qty 000 MT Raw Coal Washed Coal Middlings Slurry Coal Internal Consumption Issued for Process in Washery 41689.52 136.10 98.04 8.49 41932.15 7.76 270.00 277.76 137 Value Cores 6660.7401 73.9342 14.1417 1.1974 6750.0134 1.9128 40.6751 42.5879 Previous Year (2010-11) Qty 000 MT 42167.31 193.04 138.29 37.37 42536.01 8.53 384.12 392.65 Value Cores 5896.5501 74.4381 18.9471 4.3366 5994.2719 1.2142 58.2969 59.5111
CLOSING STOCK :
Current year(2011-12) Qty 000 MT Value in cores
Raw Coal (Revenue Projects) Raw Coal (Development Projects) Washed Coal Middling Slurry 5093.42 0.00 0.85 0.42 98.00 5192.69 476.1688 0.00 0.3641 0.0597 11.5508 488.1434
Previous Year (2010-11) Qty 000 MT Value in cores

3856.30 94.47 0.47 1.81 70.35 4023.40 340.6033 11.1636 0.1658 0.2359 8.2115 360.3801
Notes : 1) Production figures are derived from records of dispatches, internal consumption etc., and adjustments for opening and closing stock of Coal. 2) Opening and Closing stock of Raw Coal includes coal stock of 216.210 MT of DFDP, Hinganghat. B) BRIQUETTE AT DOMESTIC FUEL PLANT, HINGANGHAT :
Current year(2011-12) Qty MT Value in Corers
Opening Stock Production Turnover Internal Consumption Closing Stock 58.00 0.00 0.00 0.00 58.00 0.0032 0.0000 0.0000 0.0000 0.0032
Current year(2011-12) Qty MT Value in Corers

58.00 0.00 0.00 0.00 58.00 0.0032 0.0000 0.0000 0.0000 0.0032
5.
C.I.F. VALUE OF IMPORTS:

Current year(2011-12) ( in Crores) Previous Year (2010-11) ( in Crores) 3.12
Components, Stores & Spare Parts Expenditure incurred through Holding Co., Coal India Ltd
7.14 1.88
2.32
6. VALUE OF THE IMPORTED & INDIGENOUS STORES AND SPARE PARTS CONSUMED:
Current year(2011-12) Current year(2011-12) in Crores 2.31 861.12 863.43
%
Imported Indegenous Total in Crores 6.94 913.32 920.26 0.75 99.25 100.00
%
0.27 99.73 100.00
138
7.
EXPENDITURE IN FOREIGN CURRENCY: Current year(2011-12) ( in Crores) 0.0352 1.2354
Previous Year (2010-11) ( in Crores) 0.2777 4.5701
i) Travelling Expenses ii) Others
8.
DIRECTORS REMUNERATION:
Current year(2011-12) ( in Crores) Previous Year (2010-11) ( in Crores) 0.8267 0.0781 0.0046 0.022
i) Salary, Wages & Allowances ii) Companies Contribution to Provident Fund iii) Medical Benefits iv) Sitting Fees
0.9995 0.0888 0.1987 0.0690
Notes : a)
`
The above do not include the value of perquisites like free medical facility provided for in the company hospital, Provision for Gratuity, Leave Encashment and other Employee Benefits, made on the basis of actuarial valuation done on an overall Company Basis. House rent, electricity etc, are charged as per companys rules applicable to the executives. Furnished quarters are provided at prescribed rates as per stipulation.
b)
c) 9.
The chairman-cum-Managing Director and full time directors have the option to use the staff car for purposes other than official duty upto a ceiling of 750 KM per month, on payment at concessional rate, in accordance with the provisions of Government of India, Ministry of Finance, Bureau of Public Enterprises O.M.No. 2 (18)/PC-64 dated 20th November, 1964 as amended from time to time.
10. Sitting fees of 15,000/- per meeting of the Board and 15,000/- per meeting of the committee of the Board is payable to the non-official part time directors /independent directors.
139

STATEMENT OF AUDITED RESULTS FOR THE QUARTER AND YEAR ENDED 31/03/2012 Particulars
1 Income from operations (a) Net Sales/Income from Operations (Net of excise duty) (b) Other Operating Income Total income from operations (net) Expenses (a) Consumption of Stores & Spares (b) Change in inventories of finished goods, WIP and stock in trade (c) Employees Benefit expense (d) Power & Fuel (e) Welfare Expenses (f) Repairs (g) Contractual Expenses (h) Financial Charges /Commitment Charges (i) Depreciation/Amortization/Impairment (j) Provisions (m) Write off (n) Overburden Removal Adjustment (l) Other Expenditures Total expenses 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Profit/ (Loss) from Operations before Other Income, finance costs Exceptional Items (1-2) Other Income Profit / (Loss) from ordinary activities before finance costs and Exceptional Items (3+4) Finance costs Profit / (Loss) from ordinary activities after finance costs and Exceptional Items (3+4) Exceptional items Profit (+)/Loss (-) from Ordinary Activities before tax (7+8) Tax expense Net Profit (+)/Loss (-) from Ordinary Activities after tax (9-10) Extraordinary Item (net of tax expense ________) Net Profit(+)/Loss(-) for the period (11-12) Paid-up equity share capital (Face Value 1000/share) Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year Earnings Per Share (before extraordinary items) (of 1000/- each) (a) Basic (b) Diluted Earnings Per Share (after extraordinary items) (of 1000/- each) (a) Basic (b) Diluted 3 MONTHS ENDED 31.12.2011 Unaudited 31.03.2011 Unaudited 1,754.32 1,754.32 237.55 (61.27) 833.32 72.61 64.41 15.37 141.21 0.97 48.90 54.92 132.46 60.84 1,601.29 153.03 155.00 308.03 308.03 (3.24) 311.27 103.34 207.93 207.93 297.10 FOR THE YEAR ENDED 31.03.2011 31.03.2011 Audited Audited 6,750.01 6,750.01 920.26 (128.96) 3,991.41 281.94 253.80 64.09 501.01 3.20 195.65 220.62 458.95 237.01 6,998.98 (248.97) 680.69 431.72 431.72 1,060.13 5,994.27 5,994.27 863.43 (129.60) 2,780.58 259.20 223.71 68.46 467.51 3.30 188.16 72.61 37.64 314.56 249.36 5,398.92 595.35 464.78 1,060.13
(8.77) (7.84) 440.49 1,067.97 133.78 529.66 306.71 538.31 306.71 538.31 297.10 297.10 2,973.48 2,809.35
1,032.35 1,032.35 1,032.35 1,032.35
1,811.86 1,811.86 1,811.86 1,811.86
17
141
PART II 1
SELECT INFORMATION FOR THE QUARTER AND YEAR ENDED 31/03/2012
PARTICULARS OF SHAREHOLDING Public Shareholding - No. of shares - Percentage of shareholding Nil Promoters and promoter group Shareholding a) Pledged/EncumberedNumber of sharesPercentage of shares (as a % of the total shareholding of promoter and promoter group)Percentage of shares (as a % of the total share capital of the company) NIL b) Non-encumbered - Number of Shares 2,971,000 - Percentage of shares (as a% of the total shareholding of promoter and promoter group) 100% - Percentage of shares (as a % of the total share capital of the company) 100%
NIL
NIL
NIL
NIL
NIL 2,971,000
NIL
NIL
NIL 2,971,000
2,971,000 2,971,000
100% 100%
100% 100%
100% 100%
100% 100%
M.SUBRAMANIAN General Manager (Fin)
RAMEHER Company Secretary
SUSHIL BEHL D.C. GARG Director (Finance)Chairman-cum-Managing Director (DIN-02841938) (DIN-00267658)
As per our report of even date FOR C.R.SAGDEO & CO Chartered Accountants (FRN 108959W) Place : Nagpur Date : May 2012

(M.No. 109127)
142

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WESTERN COALFIELDS LIMITED

WESTERN COALFIELDS LIMITED

ANNUAL REPORT AND ACCOUNTS 2011-2012

Coal Estate, Civil Lines, Nagpur - 440 001

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

WESTERN COALFIELDS LIMITED

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

WESTERN COALFIELDS LIMITED

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

WESTERN COALFIELDS LIMITED

STATUTORY AUDITORS M/S C . R . SAGDEO & CO CHARTERED ACCOUNTANTS NAGPUR

REGISTERED OFFICE COAL ESTATE , CIVIL LINES , NAGPUR 440001

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

Date : 21st May, 2012

WESTERN COALFIELDS LIMITED

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

WESTERN COALFIELDS LIMITED BALANCE SHEET AS AT 31st MARCH

926.38 1061.78 1429.36 1673.10 1794.26 1843.91 1932.82 1988.80 2013.77

0.00 2155.89 3273.04

761.60 1513.75 1296.62 2262.20 3033.11 3919.96 4063.78 5503.40

988.67 1236.50 1518.80 1983.95 2490.98 2868.96 1784.73

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED CAPITAL EMPLOYED, NET WORTH AND RATIOS

917.09 1501.93 1104.90

WESTERN COALFIELDS LIMITED

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

ANNUAL REPORT 2011-12

Coal Production (million tonnes)

3.2 Coal Production and OB Removal from Opencast Mines :

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

WESTERN COALFIELDS LIMITED

3.3 Mechanised Underground Coal Production

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

Statistics of Injury frequency :

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

AVAILABILITY OF POWER AND POWER & FUEL CONSUMPTION :

6.1 Availability of Power :

6.2 Power and fuel consumption : 6.2.1 Electricity :

POPULATION AND PERFORMANCE OF EQUIPMENT :

7.1 Population of Equipment :

ANNUAL REPORT 2011-12

WESTERN COALFIELDS LIMITED

2011-12 192.97 1054.77 3.78 2.98 105.59 1360.09

2011-12 184.04 29.86 0.00 21.83 46.01 2013.77

2010-11 323.24 52.44 -1.50 27.40 80.75 1988.80