Annual Report and Account of NCL 14-15English

8/15/2019 Annual Report and Account of NCL 14-15English

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Contents

Page Nos.

1. Vision & Mission of NCL 1

2. Board of Directors 2

3. Bankers & Auditors 6

4. Notice 8

5. Important Financial Information and Operational Statistics 15

6. Chairman’s Statement 20

7. Directors’ Report 21

8. Performance against MOU Parameters - Annexure - II 87

9. Certicate of Compliance of Corporate Governance Guidelines 94

10. Balance Sheet as at 31st March, 2015 95

11. Statement of Prot & Loss Account for the year ended 31st March, 2015 96

12. Cash ow statement for the year ended 31st March, 2015 97

13. Statement of Standalone results for the Year ended 31st March, 2015 98

14. Annexure - IX of Clause 41 of the Listing Agreement 100

15. Notes (1 to 19) to Balance Sheet 101

16. Notes (20 to 32) to Prot & Loss Account 126

17. (a) Signicant Accounting Policy (Notes-33) 136

(b) Additional Notes on Accounts (Notes-34) 141

18. Addendum to the Directors’ Report

(a) Auditor’s Report and Management’s Replies 148

(b) Comments of the Comptroller and Auditor General of 164

India under Section 143 (6)(b) of the Companies Act, 2013.



__________________________________________________NORTHERN COALFIELDS LIMITED

1

Vision

To emerge from the position of domestic leader toleading global player in the energy sector by adoptingbest practices from mine to market with due care to

environmental and social sustenance.

Mission

To produce planned quantity of coal efficiently andeconomically in an eco-friendly manner with due regard

to Safety, Conservation and Quality.



ANNUAL REPORT 2014-15 _________________________________________________________

2

Board of Directors

Shri T. K. Nag

Chairman-cum-Managing Director

PART-TIME OFFICIAL DIRECTORS

R. K. Sinha B. K. Saxena

PART-TIME NON OFFICIAL DIRECTOR

A. K. Gupta S. J. Sibal

PERMANENT INVITEES

Deepak Nath C. P. Rai

FUNCTIONAL DIRECTORS

Ms. Shantilata Sahu Gunadhar Pandey P. S. R. K. Sastry




3

NORTHERN COALFIELDS LIMITED(A Subsidiary of Coal India Limited)

CIN – U10102MP1985GOI003160

Board of Directors(As on 26.06.2015)


Shri Tapas Kumar Nag

Functional Director

Ms. Shantilata Sahu – Director (Personnel)

Shri Gunadhar Pandey – Technical

Shri P. S. R. K. Sastry – Director (Finance) and CFO

Part-time Ofcial Directors

Shri Rajesh Kumar Sinha – Joint Secretary, Ministry of Coal, New Delhi.

Shri B.K.Saxena – Director (Marketing), Coal India Ltd.

Part-time Non Ofcial Directors

Shri Surinder Jit Sibal – Director

Shri A.K.Gupta – Director

Permanent Invitees

Shri Deepak Nath – Chief Operations Manager, East Central

Railways, Hazipur.

Shri C.P.Rai – Addl. Principal Chief Conservator of Forest

(LM), Govt. of Madhya Pradesh, Bhopal.

Company Secretary (Actg.)

Shri D. K. Sharma



ANNUAL REPORT 2014-15 _________________________________________________________

4

NORTHERN COALFIELDS LIMITED(A Subsidiary of Coal India Limited)

Board of Directors

(During the year 2014-15)


Shri Tapas Kumar Nag – (w.e.f. 30.09.2014)

Ms. Shantilata Sahu (Addl. Charge) – (upto 29.09.2014)

Functional Directors

Ms. Shantilata Sahu – Personnel (Whole Year)

Shri N. Das* – Technical (Upto 02.10.2014)

Shri A.D. Mathur – Technical (Upto 31.01.2015) Shri A.K.Pandey – Finance (Whole Year)

Shri Gunadhar Pandey – Technical (w.e.f. 01.02.2015)

Part-time Ofcial Directors

Shri Vivek Bharadwaj – Joint Secretary, Ministry of Coal, New Delhi(Whole Year)

Shri B. K.Saxena – Director (Marketing), Coal India Ltd.,Kolkata (Whole Year)

Part-time Non-Ofcial Directors

Shri Surinder Jit Sibal – Director (Whole Year)

Shri A.K.Gupta – Director (Whole Year)

Permanent Invitees

Shri N.N.Misra – Director (Operations) NTPC, New Delhi

(Upto 31.10.2014)

Shri Deepak Nath – Chief Operations Manager, East Central Railways,Hazipur, Bihar. (Whole year)

Shri C.P.Rai – Addl. Principal Chief Conservator of Forest (LM),Govt. of MP, Bhopal (Whole Year)

Company Secretary

Shri D. H. Lalwani – (Upto 12.12.2014)

Shri D. K. Sharma – (w.e.f. 12.12.2014)

* Shri Niranjan Das ceased to be Director (Technical), NCL w.e.f. 02.10.2013 in terms of MOC’s

letter No. 21/3/2007-ASO dated 03.11.2014 and order No. CIL/C-5/A(ii)/N.Das/D(T),NCL/B-380

dated 04.11.2014 issued by GM(P), CIL, Kolkata.




5



ANNUAL REPORT 2014-15 _________________________________________________________

6

Bankers & Auditors

BANKERS

Bank of Maharashtra, Kolkata

Andhra Bank, Kolkata

UCO Bank, Kolkata

United Bank of India, Kolkata

Corporation Bank, Kolkata

Allahabad Bank, Morwa

Union Bank of India, Morwa

Oriental Bank of Commerce, Kolkata

I D B I Bank, Kolkata

Canara Bank, Kolkata

Bank of India, Kolkata

Bank of Baroda, Kolkata

Punjab National Bank, Kolkata

Syndicate Bank, Singrauli

ICICI Bank, Kolkata

State Bank of India, Morwa

Axis Bank, Singrauli

ICICI Bank, Singrauli




7

AUDITORS

STATUTORY AUDITORS

M/s. Prakash & Santosh,Chartered Accountants,

Kanpur ( U.P. )

BRANCH AUDITORS

M/s. B. C. P. Jain & Co. M/s. S. K. Lulla & Co.,

Chartered Accountants, Chartered Accountants,

Bhopal ( M.P.) Gwalior ( M.P.)

COST AUDITORS

M/s. K. B. Saxena & Associates,

208-209 Ansal City Centre

Hajratganj, Lucknow ( U.P. )

BRANCH AUDITORS M/s. S. G. & Associates, M/s. B. Mondal & Associates,

8A, Shanti Ghosh Street 61/H/15 Rajanaba Krishna Street

near Shyam Bazar Metro Station, Kolkata (WB)

Kolkata (WB)

SECRETARIAL AUDITOR

Shri Krupesh Mankodi

Practising Company Secretary, A-2, Sneh Vihar Flats, 130,

Napier Town, Jabalpur (MP)

REGISTERED OFFICE

P. O. Singrauli Colliery

Distt. Singrauli ( M.P.) – 486 889



ANNUAL REPORT 2014-15 _________________________________________________________

8

No.NCL/Board/13(AGM)/2014-15/397 19th June, 2015

To,

1. M/s. Coal India Ltd., Member, NCL, Coal Bhawan, New Town, Rajarhat, Kolkata – 700 156.

2. Shri S. Bhattacharya, Chairman, Coal India Ltd., Member, NCL, Coal Bhawan, New Town, Rajarhat,Kolkata – 700 156.

3. Shri B. K. Saxena, Director (Marketing), Coal India Ltd., Member, NCL, Coal Bhawan, New Town, Rajarhat,Kolkata – 700156.

4. Shri T. K. Nag, Chairman-cum-Managing Director, Member, NCL, Singrauli (MP).

5. All Directors/Permanent Invitees, NCL Board/Chairman, Audit Committee, NCL.

6. M/s Prakash & Santosh, Chartered Accountants, Statutory Auditors, NCL, Ronald Complex, FlatNo. 8, Upper Floor, West Cott Building, 37/17, The Mall, Kanpur – 208 001 (UP)

7. M/s. K. B. Saxena & Associates, Central Cost Auditors, NCL, 208-09 Ansal City Centre, Hajratganj,

Lucknow (UP).

8. Shri Krupesh Mankodi, Practising Company Secretary, Secretarial Auditor, NCL, A-2, Sneh ViharFlats, 130, Napier Town, Jabalpur (MP).

N O T I C E

30TH ANNUAL GENERAL MEETING

Notice is hereby given that the Thirtieth Annual General Meeting of the Members of Northern

Coalelds Limited will be held at 11.30 A.M. on Saturday, 27th June 2015 at the Registered Ofce

of the Company at Singrauli Colliery, Distt. Singrauli (M.P.) to transact the following business:

ORDINARY BUSINESS :

1. To consider and adopt the Audited Financial Statements of the Company for the nancialyear ended March 31, 2015 including the Audited Balance Sheet as at March 31, 2015 andStatement of Prot and Loss for the year ended on that date and the Reports of Board ofDirectors, Statutory Auditor and Comptroller and Auditor General of India thereon.

2. To conrm the payment of two interim dividends paid on equity shares for the Financial year2014-15 as nal dividend for the year 2014-15.

3. To appoint a Director in place of Ms. Shantilata Sahu, who retires by rotation in terms of Section152(6) of the Companies Act 2013 and being eligible, offers herself for re-appointment.

4. To appoint a Director in place of Shri B. K. Saxena, who retires by rotation in terms of Section152(6) of the Companies Act 2013 and being eligible, offers himself for re-appointment.

SPECIAL BUSINESS :

5. Ratication of Remuneration of the Cost Auditors for the Financial Year 2015-16

To consider and if thought t to pass, with or without modications, the following as an ordinary

resolution –

“RESOLVED THAT pursuant to the provisions of Section 148(3) of the Companies Act, 2013read with Rule 14 of the Companies (Audit and Auditors) Rules, 2014 (Including any other

statutory modication(s) or reenactment thereof for the time being in force)the remuneration




9

of Cost Auditors for the Financial Year 2015-16 as recommended by the Audit Committee inits 71st meeting and approved by the Board of Directors of Northern Coalelds Ltd vide Itemno. 194/C-14 in its 194th Meeting held on 20.4.2015 at Singrauli, as detailed below, be and isratied:-

Sl.No.

Name of the Cost AuditFirm

Status Cost Audit FeesRecommended

TA & Out ofPocket

Expenses

Reimbursementof Service Tax

1. M/s K. B. Saxena & Associates, Lucknow

Central Auditor

Rs. 2,15,332.00 At Actual subject tothe limit of 50% of Audit Fees

At Actual

2. M/s S. G. & Associates,Kolkata

Branch Auditor

Rs. 78,955.00 At Actual subject tothe limit of 50% of Audit Fees

At Actual

3. M/s Goyal, Goyal & Associates, New Delhi

Branch Auditor

Rs. 78,955.00 At Actual subject tothe limit of 50% of

Audit Fees

At Actual

By Order of the Board of Directors

Sd/-

Company Secretary (Actg.)

Registered Ofce :

P.O.Singrauli Colliery,

Distt. Singrauli (M.P.) - 486 889

Date : 19/06/2015

Note:

1. Members are also requested to accord their consent for convening the meeting at a shorterNotice under section 101 of the Companies Act, 2013.

2. A member entitled to attend and vote at the meeting is also entitled to appoint a proxy or proxiesto attend and vote instead of himself/herself and proxy need not be a member of the Company.In order to be effective, the Proxy form duly completed should be deposited at the registeredofce of the Company not less than forty-eight hours before the scheduled time of the AnnualGeneral Meeting.

3. The explanatory statement pursuant to Section 102 (1) of the Companies Act, 2013 with respectto the special business set out in the Notice is annexed.

4. Pursuant to the provision of Section 171(1)(b) and 189(4) of the companies Act,2013, the

registers required to be kept open for inspection at every Annual General Meeting of thecompany, shall accessible during the continuance of the meeting to any person having theright to attend the meeting.

Copy to:

1 Company Secretary, Coal India Ltd., Coal Bhawan, New Town, Rajarhat, Kolkata - 700 156.

2 GM(Fin)/Inch., NCL, Singrauli.

3 Chief of Internal Audit, NCL, Singrauli

4 GM(System), NCL, Singrauli – with a request to upload the notice of AGM on NCL’s Website.



ANNUAL REPORT 2014-15 _________________________________________________________

10

EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1)

OF THE COMPANIES ACT, 2013

Item No. 5 : Ratication of Remuneration of the Cost Auditors for the F/Y 2015-16

Section 148(3) of the Companies Act, 2013 read with Rule 14 (a)(ii) of the Companies (Audit and

Auditors) Rules, 2014 dealing with remuneration of Cost Auditors, requires that the remuneration

recommended by the Audit Committee shall be considered and approved by the Board of Directors

and ratied subsequently by the shareholders.

The remuneration of the Cost auditors appointed for the Financial Year 2015-16 has been recommendedby the Audit Committee in its 71st meeting and subsequently has been approved by the Board of

Directors of the Company vide Item no. 194/C-14 in its 194th Meeting held on 20.4.2015 at Singrauli.

The same is put up to the shareholders of the Company for ratication.

None of the Directors or Key Managerial Personnel or their relatives is concerned or interested in

this item.

By Order of the Board of Directors

Place : Singrauli Sd/-

Date: 19/06/2015 Company Secretary (Actg.)




11

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

05–06 06–07 07–08 08–09 09–10 10–11 11–12 12–13 13-14 14-15

Gross Margin (PBDIT & CPRA*) Profit before CPRA*/Tax Profit after CPRA*/Tax

Prot

( R s .

i n C r o r e s )

T h o u s a n d s

05–06 06–07 07–08 08–09 09–10 10–11 11–12 12–13 13-14 14-15

Gross Margin

(PBDIT & CPRA*)

2512.96 2555.11 3121.64 3612.04 4033.11 4329.97 4665.89 4735.35 3731.85 4096.07

Prot before CPRA*/Tax 2116.26 2177.61 2763.75 3131.01 3766.01 3956.36 4265.67 4420.58 3355.71 3713.73

Prot after CPRA*/Tax 1300.98 1366.48 1771.66 1960.93 2325.09 2445.45 2770.09 2682.13 2008.02 2134.17

05–06 06–07 07–08 08–09 09–10 10–11 11–12 12–13 13-14 14-15

4546.86 4630.84 5455.21 6551.94 7264.84 7516.03 7916.52 8731.71 9303.88 9452.58

( R s .

i n C r o r e s )

T h o u s a n d s

Turnover

2

3

4

5

6

7

8

9

10



ANNUAL REPORT 2014-15 _________________________________________________________

12

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2 0

3 0

4 0

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13

Royalty

47%

Central & State

Sales Tax

9%

Clean Energy

Cess

17%

Excise Duty

10%

Stowing Excise

Duty

3%

MPGATSVA

12%

Others

2%

Statutory Levies- M.P.

Royalty

26%

Central & State

Sales Tax

20%Clean Energy

Cess

24%

Excise Duty

18%

Stowing Excise

Duty

2%Others

10%

Statutory Levies-

U.P.



ANNUAL REPORT 2014-15 _________________________________________________________

14

How Rupee is spent

Statutory Levies (TOTAL)/Contribution to Exchequer

Royalty, 41%

Central & State

Sales Tax, 12%

Clean EnergyCess, 19%

Excise Duty, 12%

Stowing ExciseDuty, 2%

MPGATSVA, 9%

Others, 5%

Cost of Material

Consumed, 22%

Employee Benefit

Expenses, 26%

Power & Fuel, 4%Repairs, 3%

Contractual Expenses,

17%

Depreciation/

Amortization/

Impairment,

5%

Provisions,

2% Overburden Removal

Adjustment, 14%

CSR Exp., 1% Other Expenditure, 6%




15

IMPORTANT FINANCIAL INFORMATION(Rs. in Crores)

Year 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-2009 2007-2008 2006-2007 2005-2006

(A) RELATED TO ASSETS & LIABILITIES:

(1) Shareholders’ funds

(a) Equity 177.67 177.67 177.67 177.67 177.67 177.67 177.67 177.67 177.67 177.67

(b) Reserves & Suplus 5699.69 9076.42 9568.40 8756.62 7918.21 7179.61 6483.20 5898.79 5382.68 4547.59

(c) Less: Misc. Exp. not W/O 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Net Worth 5877.36 9254.09 9746.07 8934.29 8036.83 7327.81 6660.87 6076.46 5560.36 4725.26

(2) Redeemable Pref. Shares 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

(3) Loan 0.00 0.00 612.83 735.30 739.50 789.97 963.80 815.04 887.70 977.98

(4) Capital Employed 11002.34 13406.51 13499.54 12038.45 8455.51 7880.77 7366.30 6616.08 6363.82 5684.33

(5) (i) Net Fixed Assets 2519.71 2297.33 2135.06 2192.70 2164.14 2204.42 1914.37 1832.27 1897.30 1949.20

(ii) Current Assets 11450.56 13569.69 14211.13 12596.38 12182.38 10473.42 9277.42 7585.25 6459.63 5390.53

(iii) Net Current Assets(W/Capital) 8482.63 11109.18 11364.48 9845.75 6291.37 5676.34 5451.93 4783.80 4466.52 3735.13

(6) Current Liabilities 2967.93 2460.51 2846.65 2750.63 5891.00 4797.08 3825.49 2801.45 1993.11 1655.40

(7) (a) Sundry Debtors (Net) 621.14 955.94 1738.21 425.70 99.40 123.00 73.73 51.83 50.53 108.91

(b) Cash & Bank Balances 7265.10 7443.79 8432.77 8738.30 8626.36 6949.63 5506.02 3959.23 3095.74 2428.74

(8) Closing Stock of:

(a) Stores & Spares (Net) 456.25 408.47 369.05 336.84 294.14 320.26 300.47 204.31 182.35 166.70

(b) Coal (Net) 379.54 484.64 629.32 391.10 199.81 75.05 46.30 75.65 39.52 56.60

(c) Other inventories (Net) 0.12 0.08 0.02 0.03 0.00 12.24 12.58 17.78 3.84 1.26

(9) Av. Stock of Stores&Spares (Net) 432.36 388.76 352.95 315.49 307.20 310.37 252.39 193.33 174.53 162.33

(B) RELATED TO PROFIT/LOSS

(1) (a) Gross Margin 4096.07 3731.85 4735.37 4665.89 4329.97 4033.11 3612.05 3121.64 2555.11 2512.95

Less: Depreciation 382.34 360.69 294.53 378.09 349.84 239.23 433.32 314.84 327.94 349.67

(b) Gross Prot 3713.73 3371.16 4440.84 4287.80 3980.13 3793.88 3178.73 2806.80 2227.17 2163.28 Less: Interest & Financial Charges 0.26 15.45 20.26 22.13 23.77 27.59 47.71 43.05 49.56 47.03

(c) Net Prot before Tax 3713.47 3355.71 4420.58 4265.67 3956.36 3766.30 3131.01 2763.75 2177.61 2116.26

(2) Provision for Income Tax 1579.30 1347.69 1738.45 1495.58 1510.92 1441.20 1170.09 992.09 811.12 815.28

Prot after Tax 2134.17 2008.02 2682.13 2770.09 2445.45 2325.10 1960.93 1771.66 1366.49 1300.98

(3) (a) Gross Sales 13161.25 12419.62 11616.11 10176.94 8972.50 8415.61 7617.93 6388.79 5408.79 5315.09

(b) Net Sales(after levies & Dev. etc) 9452.58 9303.88 8731.71 7916.52 7516.03 7264.84 6551.94 5455.21 4630.84 4546.86

(c) Average Net Sales per month 787.72 775.32 727.64 659.71 626.34 605.40 546.00 454.60 385.90 378.91

(4) Cost of Good Sold (Sales - PBT) 5739.11 5948.17 4311.13 3650.85 3559.66 3498.54 3420.93 2691.46 2453.23 2430.61

(5) (a) Total expenditure 7054.65 7154.05 5565.82 4866.76 4585.01 4374.20 4225.41 3373.28 2994.07 2785.75

(b) Sal. & Wages(Gross; Rev. only) 1800.47 1711.24 1599.87 1397.23 1050.41 970.11 1105.20 631.05 526.04 455.25

(c) Stores & Spares(Gross;Rev.only) 1578.70 1590.52 1379.16 1270.46 1242.09 1167.28 1208.70 1114.13 1050.98 904.44

(d) Power & Fuel(Gross;Rev.only) 317.77 310.56 295.44 266.75 254.64 229.28 226.47 234.66 234.20 230.08 (e) Interest(Gross;Rev.only) 0.26 15.45 20.26 22.13 23.77 27.59 47.71 43.05 49.56 47.03

(f) Depreciation(Gross;Rev.only) 382.34 360.69 294.53 378.09 349.84 239.23 433.32 314.84 327.94 349.67

(6) Av. Cons. of Stores & Spares/month 131.56 132.54 114.93 105.87 103.51 97.27 100.72 92.84 87.58 75.37

Gross Margin (PBDIT) (Rs. Crs.) 4096.07 3731.85 4735.37 4665.89 4329.97 4033.11 3612.05 3121.64 2555.11 2512.95

Prot before Tax (Rs. Crs.) 3713.47 3355.71 4420.58 4265.67 3956.36 3766.30 3131.01 2763.75 2177.61 2116.26

Prot after Tax (Rs. Crs.) 2134.17 2008.02 2682.13 2770.09 2445.45 2325.10 1960.93 1771.66 1366.49 1300.98

Note: (1) For the year 2011-12 onwards, gures are derived on the basis of Revised Schedule VI of the Companies Act, 1956

(2)Figures for FY 2013-14 have been changed according to regrouping of accounts comparable with those for the year 2014-15.



ANNUAL REPORT 2014-15 _________________________________________________________

16

IMPORTANT FINANCIAL RATIOS/PERCENTAGES

Year 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-2009 2007-2008 2006-2007 2005-2006

(A) PROFITABILITY RATIOS

(1) As % N et Sales

(a) Gross Margin 43.33 40.11 54.23 58.94 57.61 55.52 55.13 57.22 55.18 55.27

(b) Gross prot 39.29 36.23 50.86 54.16 52.96 52.22 48.52 51.45 48.09 47.58

(c) Net Prot (PBT) 39.29 36.07 50.63 53.88 52.64 51.84 47.79 50.66 47.02 46.54

(2) As % Total Expendi ture

(a) Sal & Wages (Gross; Revenue) 25.52 23.92 28.74 28.71 22.91 22.18 26.16 18.71 17.57 16.34

(b) Stores & Spares(Gross; Revenue) 22.38 22.23 24.78 26.10 27.09 26.69 28.61 33.03 35.10 32.47

(c) Power & Fuel(Gross;Revenue) 4.50 4.34 5.31 5.48 5.55 5.24 5.36 6.96 7.82 8.26

(d) Interest(Gross; Revenue) 0.00 0.22 0.36 0.45 0.52 0.63 1.13 1.28 1.66 1.69

(e) Depreciation(Gross; Revenue) 5.42 5.04 5.29 7.77 7.63 5.47 10.26 9.33 10.95 12.55

(3) As % Capital Employed

(a) Gross Margin 37.23 27.84 35.08 38.76 51.21 51.18 49.03 47.18 40.15 44.21

(b) Gross prot 33.75 25.15 32.90 35.62 47.07 48.14 43.15 42.42 35.00 38.06

(c) Net Prot 33.75 25.03 32.75 35.43 46.79 47.79 42.50 41.77 34.22 37.23

(4) Operating Ratio [(Sales-Prot)/Sales] 0.61 0.64 0.49 0.46 0.47 0.48 0.52 0.49 0.53 0.53

(B) LIQUIDITY RATIOS

(1) Curre nt Ratio(Current Assets/Current Liabilities)

3.86 5.51 4.99 4.58 2.07 2.18 2.43 2.71 3.24 3.26

(2) Quick Ratio(Quick Assets/Current Liabilities)

3.58 5.15 4.64 4.31 1.98 2.10 2.33 2.60 3.13 3.12

(3) Working Capi ta l as % of

(a) Capital Employed 77.10 82.86 84.18 81.79 74.41 72.03 74.01 72.31 70.19 65.71

(b) Net Fixed Assets 336.65 483.57 532.28 449.02 290.71 257.50 284.79 261.09 235.41 191.62

(C) TURNOVER RATIOS

(1) Capital Turnover Ratio(Net Sales/Capital Employed)

0.86 0.69 0.65 0.66 0.89 0.92 0.89 0.82 0.73 0.80

(2) Working Capital Turnover Ratio(Net Sales/Working Capital)

1.11 0.84 0.77 0.80 1.19 1.28 1.20 1.14 1.04 1.22

(3) Sundry Debtors as no.of months

(a) Gross Sales 1.21 1.56 1.80 0.50 0.13 0.18 0.12 0.10 0.11 0.25

(b) Net Sales 1.69 2.08 2.39 0.65 0.16 0.20 0.14 0.11 0.13 0.29

(4 ) As R atio of Ne t Sales

(a) Sundry Debtors 0.14 0.17 0.20 0.05 0.01 0.02 0.01 0.01 0.01 0.02

(b) Coal Stocks 0.04 0.05 0.07 0.05 0.03 0.01 0.01 0.01 0.01 0.01

(5) Stock of Stores & Spares

(a) Av. Stock/Annual Consumption 0.32 0.28 0.26 0.25 0.25 0.27 0.21 0.17 0.17 0.18

(b) Closing Stock as no. of months con. 3.82 3.41 3.21 3.18 2.84 3.29 2.98 2.20 2.08 2.21(D) STRUCTURAL RATIOS

(1) Debt : Equity 0.00 0.00 3.45 4.14 4.16 4.45 5.42 4.59 5.00 5.50

(2) Debt : Networth 0.00 0.00 0.06 0.08 0.09 0.11 0.14 0.13 0.16 0.21

(3) Networth : Equity 33.08 52.09 54.85 50.29 45.23 41.24 37.49 34.20 31.30 26.60

(4) Net Fixed Assets : Networth 0.43 0.25 0.22 0.25 0.27 0.30 0.29 0.30 0.34 0.41

(E) SHAREHOLDER’S INTEREST

(1) Earnings Per Share (EPS) (Rs.)(N.P. after tax & Pref.Div/No. of Equ ity)

12011.80 11301.79 15095.90 15590.96 13763.78 13086.39 11036.72 9971.49 7691.02 7322.35

(2) Book Value per Share (Rs.) (Networth/No. of Equity)

33079.70 52085.03 54854.05 50285.09 45233.90 41243.28 37489.55 34200.28 31295.48 26595.29

(3) Dividend Per Share (Rs.) 25687.61 12026.83 9057.55 9354.56 8258.27 7851.83 6622.03 5982.90 3076.41 2928.90




17

OPERATIONAL STATISTICS

Year 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10 2008-2009 2007-2008 2006-2007 2005-2006

A. Operational Statistics:

(1) (a) Total Coal Production (Lakh Tes) 724.84 686.39 700.21 664.01 662.53 676.70 636.50 595.66 521.58 515.18

(b) Revenue Coal Prodn.(Lakh Tes) 724.84 686.39 700.21 664.01 662.53 676.70 636.50 595.66 521.58 515.18

(c) Total O.B. Removal(L. CuM) 2106.14 2087.87 1957.06 2016.64 1822.16 1779.76 2027.49 1771.49 1395.88 1338.64

(d) Revenue O.B. Removal(L. CuM) 2106.14 2087.87 1957.06 2016.64 1822.16 1779.76 2027.49 1771.49 1395.88 1338.64

(2) Raw Coal Despatch (Lakh Tes):

Power 696.53 672.07 645.48 613.47 642.31 642.31 612.83 567.25 514.78 508.62

Cement 1.31 1.55 1.70 0.12 0.00 0.00 0.00 0.00 0.00 0.00

Others 38.84 47.49 25.67 18.48 20.29 20.29 25.16 19.11 11.42 8.17

Total 736.68 721.11 672.85 632.07 662.60 662.60 637.99 586.36 526.20 516.79

(3) Manpower:

As on 1st April 16741 16073 16329 16209 16373 16450 16697 16726 16914 17174

As on 31st March 16226 16741 16073 16329 16209 16373 16450 16697 16726 16914

Average 16484 16407 16201 16269 16291 16412 16574 16712 16820 17044

(4 ) Product ivi ty :

(a) Average per man per year (Tes) 4397.23 4183.52 4322.02 4081.44 4066.85 4123.20 3840.35 3564.27 3100.95 3022.65

(b) Output per Manshift (Tes) 13.76 13.78 13.65 13.55 13.52 13.19 14.58 13.81 10.97 10.60

B. Related to Cost Sheet:

(1) Earning per Manshift (EMS) (Rs.) 3251.31 3026.36 2816.71 2323.99 2038.97 1786.44 2065.80 1203.42 1004.55 837.99

(2) Av. Cost of Production of Net Saleable Coa l (Rs. per Te.)

906.65 878.37 802.13 719.21 639.07 593.91 629.45 537.07 550.83 514.09

(3) Av. Sale Value of Net SaleableCoal produced (Rs. per Te.)

1260.58 1305.63 1253.76 1193.76 1130.18 1059.48 1005.47 904.20 872.59 865.55



ANNUAL REPORT 2014-15 _________________________________________________________

18

OUR MANAGEMENT TEAMSl No. EMP_NO EMP_NAME GRD DESG DES POST_DT DT_BIRTH DSP NAME

1 90009713 MRITYUNJOY MISHRA E8 GM(MINING) 4/9/2013 5/9/1958 MINING

2 90010125 O.K.PRASAD E8 GM(MINING) 9/15/2013 5/23/1956 MINING

3 90070285 RAJA RAM SINGH E8 GM(MINING) 8/23/2014 1/24/1956 MINING

4 90175472 SINGESHWAR SINGH E8 GM(MINING) 11/19/2012 1/12/1958 MINING

5 90103003 P.K.SINHA E8 GM(MINING) 2/1/2015 1/1/1962 MINING

6 90175563 SUNIL KR.JHA E8 GM(MINING) 8/23/2014 12/12/1959 MINING

7 90176132 CHANCHAL GOSWAMI E8 GM(MINING) 4/20/2015 2/19/1962 MINING

8 90062977 CHITRANJAN SINGH E8 GM(MINING) 11/30/2012 7/11/1959 MINING

9 90113937 A.N.PANDEY E8 GM(MINING) 9/4/2013 6/7/1964 MINING

10 90125428 S.K.GOMASTA E8 GM(MINING) 9/25/2008 9/25/1963 MINING

11 90125600 P.K.BISWAL E8 GM(MINING) 1/31/2009 9/24/1962 MINING

12 90176272 MANOJ KUMAR PRASAD E8 GM(MINING) 2/7/2015 9/3/1962 MINING

13 90176520 BIPIN KUMAR E8 GM(MINING) 2/7/2015 1/16/1963 MINING

14 90186438 AJIT KUMAR CHOWDHARY E8 GM(MINING) 1/31/2015 1/3/1962 MINING

15 90114331 SANJAY MISHRA E8 GM(MINING) 4/24/2015 2/24/1964 MINING

16 90176082 ATMESHWAR PATHAK E8 GM(MINING) 9/13/2010 1/27/1961 MINING

17 90113770 L.P.GODSE E8 GM(MINING) 10/8/2012 6/1/1964 MINING

18 90125477 CHANDRA KRISHNA E8 GM(MINING) 10/1/2014 10/1/1958 MINING

19 90125691 RAM BABU PRASAD E8 GM(MINING) 17/5/2015 24/2/1964 MINING

20 90093089 NISHI KANT PATHAK E8 GM(E&M) 3/30/2010 11/25/1955 (E&M)

21 90085143 R.K.BERA E8 GM(E&M) 6/19/2014 11/4/1957 (E&M)

22 90130592 G.P.AGRAWAL E8 GM(E&M) 8/13/2007 3/26/1958 (E&M)

23 90130170 P.K.GAUR E8 GM(E&M) 2/17/2015 1/10/1960 (E&M)

24 90130444 A.CHAKRAVARTY E8 GM(E&M) 2/16/2015 4/4/1956 (E&M)

25 90179789 RANJIT VERMA E8 GM(E&M) 6/25/2014 12/6/1958 (E&M)

26 90180027 A.K.MUKHERJEE E8 GM(E&M) 11/25/2013 10/28/1957 (E&M)

27 90081001 GOVIND KUMAR SHARMA E8 GM(CIVIL) 5/24/2012 8/30/1955 (CIVIL)

28 90093550 AJOY KUMAR CHOUDHARY E8 GM(CIVIL) 1/3/2015 1/26/1960 (CIVIL)

29 90086059 ASHOK KUMAR CHOURASIA E8 GM(CIVIL) 4/23/2015 12/6/1956 (CIVIL)

30 90153784 R.R.JHA E8 GM(EXCAV) 1/6/2011 9/1/1956 (EXCAVATION)

31 90072224 R.N.BANDYOPADHYAY E8 GM(EXCAV) 12/17/2014 11/27/1956 (EXCAVATION)




19

32 90154055 TARUN KUMAR E8 GM(EXCAV) 12/15/2014 1/11/1958 (EXCAVATION)

33 90086984 BRAJPAL SINGH E8 GM(EXCAV) 12/18/2012 7/20/1957 (EXCAVATION)

34 90107350 RAJASEKHAR KOTTURI E8 GM(EXCAV) 2/3/2015 8/1/1959 (EXCAVATION)

35 90132911 A.KUMAR E8 GM(EXCAV) 9/4/2012 9/11/1956 (EXCAVATION)

36 90133000 M.B.V.SIVA KUMAR E8 GM(EXCAV) 2/28/2014 12/2/1956 (EXCAVATION)

37 90060815 VIPIN BHADRISH E8 GM(EXCAV) 7/22/2014 2/17/1957 (EXCAVATION)

38 90087073 SURESH CHANDRA E8 GM(EXCAV) 11/29/2008 10/15/1957 (EXCAVATION)

39 90107798 M.K.CHOUHAN E8 GM(EXCAV) 12/23/2014 3/1/1958 (EXCAVATION)

40 90107970 V.A.SIDDIQUI E8 GM(EXCAV) 6/17/2014 3/11/1957 (EXCAVATION)

41 90132986 T.V.GANGADHAR E8 GM(EXCAV) 7/5/2011 5/28/1958 (EXCAVATION)

42 90133166 ASGAR ALI E8 GM(EXCAV) 11/10/2008 4/7/1957 (EXCAVATION)

43 90133182 N.L.GYANANI E8 GM(EXCAV) 3/5/2013 6/4/1958 (EXCAVATION)

44 90093972 P.K.UPADHYAY E8 GM(FINANCE) 11/5/2012 8/10/1955 FINANCE &

ACCOUNTS

45 90094012 P S K RAO E8 GM(FINANCE) 4/10/2014 8/13/1955 FINANCE & ACCOUNTS

46 90108614 P. J. MOHAN RAO E8 GM(FINANCE) 7/3/2013 6/11/1956 FINANCE &

ACCOUNTS

47 90141953 SUJIT KUMAR MITRA E8 GM (QC) 2/6/2015 12/7/1957 MINING

48 90059353 O.P.NARAYAN E8 CH.MEDI-CAL-SRVC

7/24/2006 3/9/1957 MEDICAL

49 90088923 I.B.MISHRA E8 CH. MEDICALSRVC

5/7/2005 2/19/1958 MEDICAL

50 90095647 P.K.SINHA E8 GM(MM) 11/16/2012 1/5/1957 MATERIALS

MANAGEMENT

51 90081217 N.DUTTA E8 GM(MM) 9/2/2013 10/21/1957 MATERIALS

MANAGEMENT

52 90040577 A.K.VERMA E8 GM

(SALES&QC)

10/1/2012 1/10/1956 SALES/MRKT/

QUAL CNTL

53 90137159 K.PATHAK E8 GM(PERS&ADM) 10/15/2007 6/20/1956 PERSONNEL & ADMN

54 90110396 A.JAGADESWAR REDDY E8 GM

(PERS&ADM)

10/1/2012 5/6/1956 PERSONNEL &

ADMN

55 90060583 ARVIND KUMAR SINGH E8 GM (SYSTEM) 7/10/2003 5/15/1957 SYSTEM AND

E D P

56 90172214 UMA KANT PANDEY E8 GM (IE) 3/3/2003 10/2/1956 INDUSTRIAL

ENGG

57 90073818 BALKRISHNA SHARMA E8 CGM

(ENVIRON)

11/9/2012 3/16/1957 ENVIRONMENT

58 90154204 S.K.MESHRAM E7 CM (E&T) 20/8/1981 15/9/1958 E&T



ANNUAL REPORT 2014-15 _________________________________________________________

20

the year 2014-15 which works out to 2568.76% of the Paid-up Equity Share Capital.

Off-take of Coal during the year 2014-15 was 73.69 MT against the previous year’s Off-take of 72.11MT registering a growth of 2.19%.

Your Company followed the concept of workers participation in management and maintained cordialindustrial relations. Your Company also paid due attention on employees welfare and social amenities.Corporate Social Responsibility (CSR) activities undertaken by your Company during the year includedconstruction of roads, water supply, community hall, skill development, healthcare, education.

Your Company has complied with the conditions of Corporate Governance as stipulated in theGuidelines on Corporate Governance for Centeral Public Sector Enterprises (CPSEs) issued bythe Department of Public Enterprises, Government of India. As required under the said guidelines a

separate section on Corporate Governance has been added in the Directors’ Report and a ComplianceCerticate obtained from the Statutory Auditors has been annexed to the Directors’ Report.

The physical and nancial results achieved by NCL have been possible due to relentless efforts madeby the employees of the Company. I am sure, all employees will continue to put in concerted effortsto scale newer heights and thus achieve the targets set for the Company not only for Coal Productionbut also on all fronts.

Coal being the prime source of energy, demand for the same is ever increasing. For the year 2015-16,your Company has been assigned a target of 79.50 MT for coal production. We also need to focusour attention on liquidation of coal stocks so as to maximize sales realization and in turn to achievemuch better nancial results.

I am condent that with sustained efforts of all concerned, NCL will grow at desired pace in the Financial

Year 2015-16 and years ahead.

I also take this opportunity to convey our sincere thanks to the Government of India, Ministry of Coal,Coal India Limited and all Stakeholders for the trust reposed on us and opportunity given for furthergrowth.

Sd/-

( T. K. NAG )


Northern Coalelds Limited

Chairman’s Statement

Dear Shareholders,

On behalf of the Board of Directors of Northern Coalelds Limited ( NCL), Iwelcome you to the 30th Annual General Meeting of NCL and present beforeyou the Annual Report of your company for the Financial Year 2014-15.

Your Company produced 72.48 Million Tonnes of coal during the year 2014-15with a growth of 5.60% over previous year.

On the Financial front, however, your Company recorded better performance inas much as that the prot Before Tax (PBT) of your Company during 2014-15 wasRs. 3713.47 crores registering a growth of 10.66% over PBT of Rs. 3355.71 croresduring the year 2013-14. The Company paid Dividend of Rs. 4563.99 crores for




21

DIRECTORS’ REPORT

To

THE MEMBERS/SHAREHOLDERS,

Northern Coalelds Limited,

On behalf of the Board of Directors, I have great

pleasure in presenting the 30th Annual Report

of Northern Coalelds Limited (NCL) together

with the Audited Accounts for the Financial Year

ended 31st March, 2015.

PERFORMANCE HIGHLIGHTS OF THE YEAR

The highlights of performance for the year

2014-15 are as under :

l NCL has achieved coal production of 72.48million tonnes during the year 2014-15which is 5.60 percent higher than actualproduction of 68.64 million tonnes duringthe year 2013-14. The Over BurdenRemoval of 210.61 million Cu.m.during theyear was 0.88% higher than OB Removalof 208.78 million Cu.m during the year2013-14.

l Offtake at 73.69 million tonnes during theyear 2014-15 registered a growth of 2.19percent over the Offtake of 72.11 milliontonnes during the year 2013-14.

l Record turnover of Rs.9452.58 croresduring the year 2014-15 is 1.60 percenthigher than last year’s turnover ofRs.9303.88 crores.

l NCL recorded Profit before Tax (PBT)of Rs.3713.47 crores during the year2014-15, and has registered a increase

of 10.66 percent over previous year’sPBT of Rs.3355.71crores. Prot after Tax(PAT) was Rs.2134.17 crores compared toprevious year’s PAT of Rs.2008.02 crores.

l Dividend for the year 2014-15 being2568.76% of paid up equity share capital,amounts to Rs.4563.99 crores against1202.68% of paid up equity share capitalamounting to Rs.2136.84 crores for theyear 2013-14.

l Earning per Share (EPS) during the

year 2014-15 has been increased upto

Rs.12011.80 against EPS of Rs.11301.79previous year.

l Efforts for greening the environment andpollution control continued during the year.During 2014-15, 5.08 lakh saplings havebeen planted. The total saplings plantedupto 31st March, 2015 reached 226.51lakhs.

l NCL continued to practice the Worker’sparticipation in management, as a resultindustrial relations remained healthy andharmonious.

l Employees ’ we l fa re , communi tydevelopment and human resource

development continued to be focus areas.

1.0 FINANCIAL REVIEW

1.1 The Company has achieved a GrossTurnover of Rs.13,161.25 Crores (Netturnover Rs. 9,452.58 crores) during theyear 2014-15 against Gross Turnover ofRs.12,400.42 Crores (Net turnover Rs.9,303.88 crores) during the year 2014-15

recording a growth of 6.14% (in GrossTurnover) and 1.60% ( in Net Turnover).The nancial results for the year 2014-15,as compared to previous year, are givenin the following table :

(Rs. in crore)

Description 2014-15 2013-14

Gross Margin 4096.07 3731.85

Less: Depreciation 382.34 360.69

Gross Prot 3713.73 3371.16

Less: Interest & other nancial charges 0.26 15.45

Prot before Tax 3713.47 3355.71

Less: Provision for Tax 1579.30 1347.69

Prot after Tax 2134.17 2008.02

Less: Transfer to CSR Reserve — 38.42

Transfer to Sustainable Development Reserve — 3.08

Transfer to General Reserve 213.42 200.80

Dividend on Equity Share Capital 4563.99 2136.84

Provision for Tax on Distributable Prot 912.53 363.16

Surplus carried to Balance Sheet (3555.77) (734.28)



ANNUAL REPORT 2014-15 _________________________________________________________

22

1.2 SHARE CAPITAL

1.2.1 The Authorized Share Capital of the

Company as on 31st March, 2015 remained

at Rs.1,400.00 crores comprising of40,00,000, 10% Cumulative Preference

Shares of Rs.1000/- each and 1,00,00,000

Equity Shares of Rs.1000/- each. The

paid-up share capital as on 31st March,

2015, remained at Rs.177.67 crores

comprising of 17, 76,728 equity shares of

Rs.1000/- each.

1.3 TRANSFER TO RESERVE

1.3.1 An amount of Rs. 213.42 crores, equivalentto 10% of Profit after Tax, has been

transferred to General Reserve.

1.4 DIVIDEND

1.4.1 The inter im dividen d alre ady paid

amounting to Rs. 4563.99 crores, will

be treated as nal dividend on the equity

share capital for the year 2014-15. The

dividend paid amounting to Rs. 4563.99

crores (previous year Rs. 2136.84 crores)work out to 2568.76% of the paid-up equity

share capital (previous year 1202.68%)

i.e. Rs. 25,687.61 per share against Rs.

12026.83 in previous year. The dividend

distribution tax paid amounting to Rs.

912.53 Crores (previous year Rs. 363.16

Crores).

1.5 BORROWINGS

1.5.1 The Company has not taken any loanfrom CIL, Government or any nancial

institution during the year.

1.6 CAPITAL EXPENDITURE

1.6.1 During the year 2014-15, NCL has made

a capital expenditure of Rs. 715.06 crores

against the budget of Rs. 800.00 crores.

The expenditure has been mainly on

acquisition/ addition of HEMM, other plant

& machinery and on buildings etc.

1.7 SALES REALISATION

1.7.1 The status of billing and sales realization

for the year 2014-15 as compared to

previous year is given below :

Year Billing Realisation including receipt % Realisation

(Rs. in against dues of earlier years against billing

crore) (Rs. in crore)

2014-15 14778.48 13646.57 92.34

2013-14 14315.42 12705.80 88.75

Note : Incentive bills for the year 2014-15 has beenincluded in net billing and previous year guresare also regrouped accordingly.

1.8 COAL SALES OUTSTANDING DUES

1.8.1 The position of coal sales dues outstanding

as on 31.03.2015 as compared to

31.03.2014 is given hereunder :

(Rs. in crore)

Consumer As on 31.3.2015 As on 31.3.2014

UPRVUNL 361.68 30.66

NTPC 889.73 1532.94

Others 77.56 46.02

Total 1328.97 1609.62

1.8.2 OUTSTANDING DUES ARE MAINLY DUE

TO FOLLOWING REASONS :

(a) Bills on accounts of transit fees for

the period 21.1.1999 to 31.03.2012

amounting to Rs.246.75 Crores is

yet to be realized from UPRUNL.

However, UPRVUNL has submitted

a Bank Guarantee of Rs.246.75

crores against dues of UP Forest

Transit Fees in the month of January,2015 and NCL has submitted a Bank

Guarantee for Rs.337.27 crores to

the Principal Secretary, Environment

& Forest, Govt. of UP in the month of

March, 2015.

(b) Dispute on GCV issue for the period

24.10.2012 to 30.09.2013 has been

settled and NCL made the provision

of Rs.643.88 crores which is still lying

as dues in the books of accounts.




23

1.8.3 With regard to interest on delayed payment

of coal sales dues against coal supplied

to UPRVUNL, Hon’ble Umpire passed

an award directing UPRVUNL to pay

Rs.132.67 crores to NCL against which

an appeal was made by UPRVUNL before

Secretary (Law), Ministry of Law & Justice,

Government of India. The said appeal was

rejected by Secretary (Law) in the month

of June, 2006.

1.8.4 Subsequently, UPRVUNL preferred to

le a Petition before Hon’ble High Court

of Allahabad, Lucknow Bench against

(i) Office Order issued by Ministry ofCoal, Government of India regarding

appointment of Umpires, (ii) Award passed

by Umpire for payment of Rs.322.96 crores

by UPRVUNL to subsidiary companies of

Coal India Ltd.; towards interest on delayed

payment of coal bills which included NCL’s

share of Rs.132.67 crores and (iii) Order

passed by Secretary (Law), rejecting the

appeal led by UPRVUNL against award

of umpire.

1.8.5 A short counter afdavit challenging the

maintainability of the Writ Petition has

been filed before Hon’ble High Court

of Allahabad Bench. The matter is still

pending before the Hon’ble High Court.

1.9 SECURITISATION OF COAL SALES

DUES

1.9.1 In the rep ort fo r the year end ed

31st March, 2004, it was informed that

under the Scheme for One Time Settlement

of SEBs’ dues to Central Public Sector

Undertakings (CPSUs) introduced by the

Central Govt., 8.5% tax free bonds of the

State Government for an amount of Rs.

114.56 crores were issued by Reserve

Bank of India against the outstanding dues

of UPSEB / UPRVUNL as on 30.09.2001.

Out of Rs. 114.56 crores, Rs. 103.10 crores

(18 Nos. of Bonds @ Rs. 5.73 crores) have

been redeemed upto 31.3.2015.

1.10 PAYM ENT TO CEN TR AL/ STATE

EXCHEQUER

1.10.1 Information in regard to contribution made

by the Company towards the Central and

State Exchequer is furnished hereunder :

(Rs. in crore)

Particulars 2014-15 2013-14

—————————— ——————————

MP UP Total MP UP Total

Royalty 1025.25 250.61 1275.86 895.50 266.13 1161.63

Central & State Sales Tax 188.89 188.89 377.78 174.27 202.69 376.96

Clean Energy Cess 361.94 232.74 594.68 225.59 168.06 393.65

Excise Duty 212.88 170.07 382.95 218.82 203.75 422.57

Sales Tax on works and scraps 15.52 2.89 18.41 4.92 6.00 10.92

Entry Tax 6.90 31.17 38.07 5.62 32.69 38.31

Service Tax 9.10 5.05 14.15 7.27 3.16 10.43

Stowing Excise Duty 54.26 18.83 73.09 52.86 19.42 72.28

SSDA Cess – 11.27 11.27 – 13.15 13.15

Property Tax 1.76 – 1.76 1.76 – 1.76

Forest Cess 12.99 40.78 53.77 14.76 39.77 54.53

Professional Tax 2.52 – 2.52 2.22 – 2.22

MPGATSVA 268.90 – 268.90 215.88 – 215.88

Total 2160.91 952.30 3113.21 1819.47 954.82 2774.29

1.10.2 The Company has paid an amount of

Rs.1635.98 crores towards corporate

advance income tax (including TDS) and

Rs. 912.53 crores towards dividend tax

during 2014-15, as against Rs. 1700.63

crores and Rs. 462.00 crores respectively,

paid during 2013-14.

1.10.3 Earning per share (EPS) during the

year 2014-15 has been increased upto

Rs.12,011.80 from Rs.11,301.79 of

previous year.

2.0 PRODUCTION PERFORMANCE

2.1 Production Performance for the year

2014-15 against target and in comparison

with previous year is given below:



ANNUAL REPORT 2014-15 _________________________________________________________

24

2014-15

2013-14

Actual

%

Growth

over

Previous

Year

Target

(Revised

BE 14-15)

Actual%

Achvt

Coal

(Mill. Tes)Dept. 77.50 72.48 93.53 68.64 5.60

Coal

Offtake

(Mill. Tes)

78.50 73.69 93.87 72.11 2.19

Over

Burden

Removal

(Mill. Cum)

Dept. 80.00 75.59 94.49 79.47 -4.88

Out-sourc-ing

160.00 135.02 84.39 129.31 4.41

Total 240.00 210.61 87.76 208.78 0.88

Composite

Production

(Mill. Cum)

Total 289.59 257.01 88.75 253.02 1.58

2.1.1 Enchanced EC clearance of three minesnamely Bina, Krishnashila and Block-Bobtained in the month of August, 2014but consent to operate was given by theState Govt. of UP/MP in the month of Feb& March, 2015. The delay in clearance ofEC & Consent from these three mines lead

to coal shortfall of 1.87 MT.

draglines in NCL has affected not only

the OB removal programme, but coal

production as well.

2.1.3 The main reasons for less achievementof Coal Production and OB Removal by

Departmental means are as follows :

As per Board approval of HEMM based

on PR/RPR/survey off norms, following

equipment are urgently required :

Equip-ment

Required(nos.)as per

PR/RPR/NCL

Board

approval

Totalcapacity(Cum/Tes)

Existingnos. on1st April

‘2015

ExistingCapacity

(Cum/Tes)

Shortagein

Capacity(Cum/Tes)

Shortagein nos.

Remarks

Dragline 23 511 19 440 71 3 Shortagesbased on24 Cumbucketcapacity

Shovel 102 990.7 72 712 278.7 28 Shortagesbased on10 Cumbucketcapacity

Dumper 725 68185 461 45930 22255 223 Shortagesbased on100 Tesbucket

capacity

2.1.4 The shortage of these equipment are

the biggest hurdle in existing productioncapacity. At present two nos. of draglines

are under erection at Amlohri, 05 Nos.of dragline and 24 nos of Shovels are

under process of NIT preparation andunder process of tendering respectively.

Supply order of 36 nos. of 100 Tes capacityDumpers are placed and are under

commissioning/ Operation.

2.1.5 The availability of Shovels had been badly

affected due to non supply of spares ofShovels. M/s Vulcan, Gujrat and M/s

Rajesh Engg , Raipur were the mainSuppliers for Shovel spares - some of

which are listed below:

Dipper Handle, Final Drive Gear,

Final Drive Pinion, Lower Roller assembly,

Drive Tumbler, Shaft and Pinion,

and various types of Gears etc.

Rail

34.18%

MGR

48.35%

Road

17.47%

Mode-wise Off-take

2.1.2 One dragline scheduled to be commissioned

in April, 2012 at Amlohri was delayed and

commissioned by May, 2014. Seconddragline scheduled to be commissioned in

April, 2013 at Krishnashila was delayed

and was commissioned by January, 2015.

Third and fourth dragline scheduled to

be commissioned in May, 2013 and May

2014 respectively at Amlhori itself was also

delayed due various issues and yet to be

commissioned by M/s. HEC.

Such a period of lag in commissioning

schedule of all the upcoming three




25

2.1.6 Since M/s Vulcan, Gujrat had been bannedand M/s Rajesh Engg. Raipur were unableto supply the spares as per Supply Order.M/s HEC is also not been able to supply

spares in time. So the performance ofShovels had become very poor and itaffected the production programme of OBRemoval and Coal as well.

2.1.7 The BE-9 Hydraulic Shovel at Amlohri andOne BE-1600 Shovel at Khadia was underbreakdown due to re in the machine sinceFeb’14 and March, 2013 respectively. Theshovel was under MARC with M/s. BEMLand its work for rehabilitation/maintenancewas not yet started by March’15.

2.1.8 Stoppage of work by HOE contractor M/sSainik Mining and Allied services Ltd. atJayant and Dudhichua from April, 2014had greatly affected the OB Removal andsubsequent the coal production on accountof lack of coal exposure.

2.1.9 Poor performance of outsourcing agencyM/s JP-ASD-Dhilu (JV) at Dudhichua andM/s Saumya Mining Ltd. at Nigahi projectand complete stoppage of work from April,2014 to November, 2014 for 78 days

badly affected the OB removal and coalproduction program as well.

2.1.10 The boom of 20/90 Bajrang Dragline atNigahi project has collapsed on 18.1.2014due to structural failure causing loss in OBRemoval and less coal exposure from turraseam.

2.2 Production Programme for the year

2015-16

2.2.1 The company has nalized a Programme

for Coal Production of 79.50 Mill. Tes.and OB Removal of 285 Mill. Cum for theyear 2015-16. Out of this OB removal bydepartmental means has been plannedfor 80.0 Mill. Cum and 205.00 Mill. Cumby HOE means /Outsourcing.

2.3. Productivity

2.3.1 The productivity in terms of Output perMan Shift (OMS) for the year 2014-15 hasbeen 13.76 tes. in comparison to last year

OMS 13.78 tes.

3.0 POPULATION AND PERFORMANCE OFHEAVY EARTH MOVING MACHINES (HEMM)

3.0.1 The population of major HEMM for the last

ve years is given below :

Sl.No.

HEMM2010-11(As on

31.03.11)

2011-12(As on

31.03.12)

2012-13(As on

31.03.13)

2013-14(As on

31.03.14)

2014-15(As on

31.03.15)

1 Dragline 19 19 19 17 18

2 Shovel 105 96 94 85 88

3 Dumper 569 558 515 446 458

4 Dozer 157 136 138 130 163

5 Drill 130 91 122 136 132

6

Decrease ofshovels & D/Lin numbers

0 9 11 20 & 2 17 & 1

% decrease indigging units

0 8.57 10.4819.04

&10.52

16.19%&

5.26%

7Decrease ofDumpers innumbers

0 11 54 123 111

8% decrease inTransportationunits

0 1.93 9.49 21.61 19.51

* Taking base as on 31.03.2011

3.1 Percentage Capacity Utilization for NCL(% Capacity Utilisation Figures)

Particulars 2010-11 2011-12 2012-13 2013-14 2014-15

Dragline

system76.68 67.67 66.14 65.71 59.59*

Mine

Capacity

Utilization

73.90 67.29 67.71 68.40 69.49*

Shovel

Dumper

System

72.72 67.13 68.40 69.65 74.59*

* Figures yet to be vetted by CMPDI, HQ, Ranchi

3.2 Performance of HEMM

Sl.No.

Equipment

% Achievement ofavailability against

standard

% Achievement ofUtilization against

standard

(+) increase/(–) decrease

2013-14 2014-15 2013-14 2014-15 % Av % Ut

1 Dragline 92.36 94.28 92.28 96.37 1.92 4.09

2 Shovel 79.30 88.45 62.72 76.4 9.15 13.68

3 Dumper 92.52 106 68.32 81.4 13.48 13.08

4 Dozer 99.47 109.67 49.53 56.91 10.2 7.38

5 Drill 111.64 115.63 33.39 38.39 3.99 5.00



ANNUAL REPORT 2014-15 _________________________________________________________

26

3.2.1 There is a positive growth in percentageof availability & utilization of all equipmentduring the period April 2014 to March 2015as compared to the same period last year.

3.3 New Dragline Commissioned

33/72 dragline was commissioned inJanuary, 2015 at Krishnashila Project.

3.4 Rehabi litat ion detai ls of HEMM(2014-15)

The rehabilitation work for 15/90 D/L (Vijay)of Jayant Project was completed during theyear 2014-15.

3.5 Equipment under procurement process(as on 15.05.2015)

Sl.

No.Equipment

Total

Qty.

Project-wise

Distribution

1. Surface Miner 4 Nos. DCH-1, JNT-2, KRSL-1

2.10 Cum Diesel Driven FaceShovels

09 Nos AML-3,NGH-2,KHD-2,BINA-1,JNT-1

3.10 Cum Diesel Driven BackhoeShovels

02 nos JNT-1 ,DCH-1

4. 10 Cum Ele ctric Ro pe Sho ve ls 07 Nos JNT-5,DCH-2

5. 24/ 88 Draglines 05 NosKHD-2*, BINA-2 & JNT-1*PCD

6. 20 Cum E R Shovel 06 Nos AML-3,NGH-2,KHD-1

7. 1.2 Cum Hyd. Backhoe Sh ovel 03 Nos DCH-2, NGH-1

8. 10/11.75 Cum F.E Loader 05 NoKSL-1, KHD-1 (*PCD), BNA-1, DCH-1, NGH-1

9. 190T Dumpers30 Nos(28+2Nos)

JNT-14,DCH-7,AML-7 = 2 8Nos (Regular Tender)02 Nos (AML-1 & DCH-1)Trial Tender

10. 60 KL Water Sprinkler 4 Nos Bina-2 ,NGH-2

11. 28 K L Water Sprinkler 02 Nos KSL-2* *PCD

12. 280 HP Motor Grader 21 NosNGH-5,BINA-3,DCH-1,JNT-1, KHD-2+2* BLOCK-B2*,KSL-2* AML-3* (*PCD)

13. 311 mm Drill 04 Nos AML-2*,KHD-2* *PCD

14. 90 T Crane 1 No AML-1

15. 75 T Crane 1 No JNT-1

16. 40 T Crane 1 No NGH -1

17. 30 T Crane 02 Nos JNT-1, DCH-1

18. 18 T Crane 05 Nos DCH-1,JNT-1,NGH-2, KHD-1

19. Drill 250 mm 02 Nos KSL-2* *PCD

20. Drill 160 mm 02 Nos KHD-2* *PCD

21. Dumper 100T 34 Nos Aml-3, B INA-2, DCH-3 JN T-15, KHD-3, NGH-8

22. 410 HP Dozer 08 NosNGH-03,Jayant-03, Bina-01,

Dch-01

3.6 Supply Orders placed for HEMMs

during 2014-15

Equipment Capacity Qty. Name of Firm

Dumper 100 T 36M/s Caterpillar India

Private Limited

Dozer 410 HP 40 M/s BEML

Crane 9000 Kgs 17 M/s A C E

11000

Kgs6 M/s Escort

Water Sprinkler. 70 KL 4 M/s BEML

Hyd. Excavator with

Backhoe attachment3.5 Cum 04 M/s BEML

3.7 Status pf Rate Contract amd Depot

Agreement

Sl.No.

HeadNo. ofCaseFiles

CurrentlyValid

UnderProcess

Fresh

1. Transmission spares 01 – 01 –

2. Drills 02 02 – –

3. Equipments 02 01 01 –

4. Engines 02 02 – –

5. Draglines 08 01 05 02

6. Dumpers 09 06 02 01

7. Shovels 10 02 08 –

8. Bearings 01 – 01 –

3.8 Central Workshop, Jayant

3.8.1 Central workshop, Jayant caters to

the need of highly sophist icated

Heavy Earth Moving Machineries(HEMMs) of diversied origin having wide

variety of technologies by way of ready

float assemblies of overhaul engines,

transmissions, wheel motors, electrical

motors, generators, transformers, and

magnetorque assmeblies. Also, repair

of mechanical assemblies by shafting/

de-shafting, reclamation by welding/

manufacturing which are also having

imports substitution, Heat treatment etc.

are under taken by CWS, Jayant.




27

3.8.2 General output from CWS, Jayant in last

four years is as follows:

Year

Engine Transmission Wheel Motor Dipper

Handle(Nos.)

Over-

hauled

(Nos.)

Re-

paired

(Nos.)

Over-

hauled

(Nos.)

Re-

paired

(Nos.)

Over-

hauled

(Nos.)

Re-

paired

(Nos.)

2011-12 194 30 172 11 74 27 11

2012-13 167 35 135 13 74 45 17

2013-14 146 37 104 34 74 36 19

2014-15 170 39 127 10 81 19 10

Year Electrical Machine Press WeldingHeat

Treatment

KVAManufacturing

(Tons)

Repaired

(Nos.)Tons Tons Tons

2011-12 229.5 82.9 1227 487 422 26.91

2012-13 264.1 151.28 1300 463 396 52.38

2013-14 230.0 143.95 1302 557 550 56.00

2014-15 196.1 143.23 1304 547 632 55.32

3.9 Magnetorque Assembly of P&H Shovel

Year Repaired Quantity

(Nos.)

2011-12 46

2012-13 64

2013-14 60

2014-15 42

3.10 Innovative Jobs Carried Out By Project

Personnel

l A line boring arrangement was made

departmentally at Engine Shop, CWS andSri Pratik Sinha, CM(Excv), CWS was

awarded at CIL level for the same.

l Coil Winding Machine from available

sources was made at Electrical Shop,

CWS. Sri Sourav Tripathi, AM(Excv) and

his team were awarded at NCL level for

the same

l Test ing arrange ment o f BH-100

Transmission assembly was made at

Transmission Shop, CWS by incorporating

modication in the existing test bench.

l A very typical Drag Rope Drum assembly

of 10/70 D/L was repaired at Press Sectionof CWS in the critical production month of

March ’15 in spite of non-availability of jigs

and xtures.

l Repairing of broken pinion teeth of

intermediate pinion shaft and intermediate

gear wheel of 24/96 Dragline was carried

out for commissioning of Dragline of

Jayant Project.

3.11 Capacity Utilisation

3.11.1 The capacity utilization during the year

under report as compared to previous year

is given below :

Description 2014-15 2013-14

Capacity in M.cum. 189.86 193.75

Production in M.cum. 131.91 132.43

Capacity Utilization (%) 69.47 68.35

4.0 SALES AND MARKETING

4.0.0 Performance

4.0.1 The off-take vis-à-vis the target and Annual

Contracted Quantity (ACQ) for the year

2014-15 in comparison to the previous

year is furnished below :

2014-15 (in Mill Tes)

2013-14

(in MillTes)

Actual

%Achievement

of Target

% mat.

oflinkage/

ACQ

%

Growthover

previous

year

TargetLinkage/

ACQActual

78.00 78.76 73.69 72.11 94.48 93.57 2.2

4.0.2 Power Sector continued to remain the

main consumer for NCL, accounting for

more than 94% of the total dispatches.

Information in respect of coal supplies to

major consumers of power sector is given

below :



ANNUAL REPORT 2014-15 _________________________________________________________

28

Consumer

2014-15

(in Mill Tes) Mat. of

linkage/

ACQ(%)

2013-14

(in Mill Tes)

Growth

over

previous

year (%)Linkage/

ACQActual

NTPC 45.25 42.90 94.80 41.53 (+)3.30

UPRVUNL 13.62 12.32 90.45 12.81 (-)3.98

Total Power

Sector (Incl

CPP)

74.85 69.65 93.68 67.21 (+)3.63

4.1 Supply of Deshaled coal from Bina

Deshaling Plant

4.1.1 Against the target of 3.825 Mill Tes, Bina

Deshaling Plant dispatched 3.441 Mill

Tes to Rajghat, Hissar, Kota, Suratgarh,

SSTPS, VSTPP, RHSTPP, Obra, Anpara, Paricha, Jhajjar and Arawali

Thermal Power Stations during 2014-15

as compared to 3.778 Mill Tes during

2013-14.

4.2 Spot e-Auction Scheme

4.2.1 Spot e-Auction scheme was formulated

under the provision of New Coal Distribution

Policy (NCDP) circulated by the Ministry of

Coal during Nov.’07. For procurement of

coal under the said scheme, buyers are tobid for the desired quantity at prices above

the “Floor Price”. CIL notied that w.e.f.

Jan’12, “Floor Price” of coal with GCV upto

5500 Kcal/Kg is to be xed at 20% above

notied price and for coal with GCV above

5500 K.cal/Kg “ Floor Price’ will be same

as notied price.

4.2.2 Quantity booked along with nancial gain

under the above scheme during 2014-15

is as under :

Scheme Period

QuantityBooked(in lakh

tes.)

Financial gainabove notiedprice (approx.)(Rs. in crore)

e-auctionscheme (Spot)(Coal by Road)

April’14 to March’15 21.88 322.83

e-auctionscheme (Spot)(Coal by Rail)

April’14 to March’15 5.14 53.36

e-auctionscheme (Spot)(Reject by Road)

April’14 to March’15 1.39 3.17

Total 28.41 379.36

4.3 Sector-wise and Mode-wise Offtake.

4.3.1 The sector-wise and Mode-wise offtake

of coal during the year 2014-15, in

comparison to 2013-14 is given below :

(Fig in Mill Tes)

Sector/Mode 2014-15 2013-14

Sector-wise Offtake

Power (excluding (CPP) 69.65 67.21

Cement 0.13 0.15

Others 3.91 4.75

Total 73.69 72.11

Mode-Wise Offtake

Rail 25.18 25.74

MGR 35.63 35.08

Road (External) 9.26 7.29

Road (Internal)* 3.62 4.00

Total 73.69 72.11

* Raw coal transported by road to Bina Deshaling Plant

has been considered as ‘Road (Internal)’.

4.4 Wagon Loading

4.4.1 Information in regard to average wagon

loading through I/R rakes against target

and as compared to previous year is given

below :

2014-15(Box/Day) 2013-14(Box/

day)

Actual

%

Achievement

of Target

Variance

from last

year (%)Target Actual

1357 1190 1227 87.70 (-) 3

4.5 Coal Price Revision

4.5.1 Coal prices were revised w.e.f. 28th

May, 2013 (Date of revision of coal price

mentioned in last year’s report as 27th

May, 2014 was due to typographical error).




29

5.0 QUALITY CONTROL

5.0.1 Sampling Arrangement

As per the directives of Ministry of Coal,

Govt. of india, NCL has switched over

to Independent Third Party Sampling

appointed by power consumers at loading

end from the month of February, 2015.

Consumers like NTPC, UPRVUNL,

RRVUNL, HPGCL and Lanco have

appointed their own Independent Third

Party Sampling Agency at loading end for

sampling and analysis work.

Prior to introduction of Independent Third

Party Sampling Agency by consumers,

sampling and analysis work was being

carried out at Loading End by third party

agency appointed by NCL/CIL during

2014-15.

5.1 Sizing of Coal

5.1.1 The entire dispatch of coal during the year

2014-15 was made after proper sizing as

detailed below :

Means of sizing

of coal

2014-15

(in %age)

2013-14

in %age)

Through CHP/Feeder Breaker 87.77 84.05

Through Dozer 12.23 15.95

Total 100 100

5.2 Weighment of coal

5.2.1 During 2014-15 almost 100% coal

supplies have been weighed on electronic

weighbridges to the full satisfaction of

consumers.

5.3 Quality complaints and action taken

thereon

5.3.1 Durin g 2014 -15 approx . 21nos. of

complaints were received from power

houses. The nature of complaints were

primarily on account of oversized/

uncrushed coal supplied to the power

houses in rakes loaded from wharfwall

sidings at Krishnashila, Dudhichua

(Jayant) and Spur Siding (Block ‘B’).

Details of complaints received during the

last three years are given below :

Year

Nature of complaints (Fig. in nos.)

Oversized

Coal

Poor

Quality

Foreign

MaterialsTotal

2012-13 40 33 0 73

2013-14 32 14 0 46

2014-15 17 04 0 21

5.3.2 Coal was loaded at Spur Siding (Block

B) after passing through an Interim CHP

and Dozer crushing. Krishnashila Project

is having two Feeder Breakers for

sizing the coal. However, in order to

ensure maximum sizing and crushing,

manual labourers were also deployed.Loading at Dudhichua Wharfwal l

(Jayant Project) is made by pay loaders

after crushing the coal by means of

dozer. Adequate measures were taken

at these projects while loading Railway

rakes so as to ensure proper sizing

and quality of coal, free from stone/

shale and extraneous materials. However,

since sizing through Dozer crushing

and manual breaking is not fully effective,

it was difcult to achieve sizing to the

ful l satisfaction of the consumers

particularly when loading from the

above sidings was done round the clock

including nights shifts to maximize coal

supplies.

6.0 STOCK OF COAL

6.0.1 The Measured stock of raw coal as

on 31.03.2015 was 4.908 Million Tes,



ANNUAL REPORT 2014-15 _________________________________________________________

30

equivalent to 21 days of coal production in

terms of average daily target for 2014-15.

The stock of raw coal as on 31.03.2014

was 6.106 Mill Tes.

6.1 Stock of stores and spares

6.1.1 Information in regard to inventory of stores

and spares as on 31.3.2015 as compared

to 31.3.2014 is tabulated as under :

Sl.

No.Description

As on

31.3.2015

As on

31.3.2014

(i)Value of Inventory

(Rs. in crores). 346.89 Crores 452.13 Crores

(ii)Inventory in terms of

months’ consumption.2.63 Months 3.4 months

6.1.2 The percentage decrease in inventory over

last year is 23.27%.

6.2 Disposal of Scrap

6.2.1 In the year 2014-15 the disposal of scrap

was of value of Rs.19.72 Crores. In the

year 2014-15, NCL have nalized sale of

scrap value of Rs. 20.38 Crores.

6.2.2 Compared to realization of cash against

scrap value of 2013-14 of Rs.10.77 Crores,

the cash realized in 2014-15 was Rs.14.73

Crores which was 36.76% increase over

the previous year.

6.2.3 In the year 2014-15 the Burnt oil disposed-

off was 1038 KL in comparison to previous

year’s Burnt oil of 1851.70 KL.

7.0 SAFETY

7.0.1 The accidents statistics for the year

2014-15 as compared to previous year is

furnished below :

Sl.

No.Particulars 2014-2015 2013-2014

1. No. of fatal accidents 4 8

2. No. of fatalities 4 8

3. No. of serious accidents 13 14

4. No. of serious injuries 13 14

5. Fatality rate per MT output 0.055 0.117

6.Fatality rate per 3 lakh

manshift0.301 0.569

7.Fatality rate per 1000 persons

employed0.246 0.477

8.Serious injury rate per MT

output0.179 0.204

9.Serious injury rate per 3 lakh

manshift0.977 0.996

10.Serious injury rate per 1000

persons employed0.800 0.835

11. Fatality rate per MM3 output 0.015 0.032

12.Serious injury rate per MM3

output0.050 0.055

7.1 Safety Measures & Training

7.1.1 Measures taken for improvement in safety

standard in Mines of NCL.

1. Statutory Rules and Regulations

are implemented religiously and

strenuous efforts have been made

for achieving the highest standards

of safety.

2. Simulators for the training 100 Te.Dumper operator and 85 Te. Dumper

operator were installed on 28.11.2012

in CETI. 397 Nos. & 419 Nos. of

Dumper Operators were trained in

the year 2013 & 2014 respectively.

3. Company level Tripartit e Safety

committee meetings attended by

DGMS Officials, Trade Unions &

Management were held on 17.05.2014

& 17.01.2015.




31

4. Project level Triparti te Safety

Committee Meetings were held at

Amlohri, Nigahi, Jayant, Dudhichua,

& Khadia Projects on 09.12.14,

10.12.14, 11.12.14, 12..12.14 &

13.12.14, respectively.

5. Task force has been const ituted

consisting of senior ofcials of Trade

union and GM(S&R) every month for

surprise inspection of mine.

6. There is Multi-level monitoring of the

implementation of the Safety Plans

through Internal Safety Organizationat company level and Safety ofcer

perform it at Area level.

7. There is regular monitoring of status of

implementation of recommendations

of Tripartite committee, CIL Safety

Board, Standing Committee on Safety,

10th and 11th Safety Conferences etc.

8. Lock-Out & Tag Out (LOTO) system

of Electrical shut down procedure hasbeen implemented in all the mines of

NCL.

9. Special drive has been conducted for

checking of road worthiness of the

contractors’ vehicle/HEMM from 24th

March to 31st March’ 2015

10. There is a system of continuous

education, training and retrainingof the employees with the Modern

Training Aid/Electronic Media/spot

training and lectures at MTK ofce.

11. Special drive to implement wearing

of seat belt by dumper operators has

been conducted in all the Projects.

12. Back shift inspection by senior

officers in the Projects have been

implemented.

13. Safety Management Plan of all the ten

Projects have been prepared and are

being implemented.

14. Safe Operating Procedures have been

enforced in all the Projects to reduce

dumpers accident.

15. Monitoring of Dragline Dumps :-

(i) Measurement of corridors of

dragline OB dumps(Dragline

sitting level and coal roof of

Turra seam level) by Area & HQ

Team.

(ii) A ”Scheme for Development

of guidelines for safe dragline

dump profile under varying

Geo-Engineering condition in

opencast coal mines of NCL

for implementation” has been

conducted by BIT Mesra,

Ranchi under R&D Programme

of CIL.

7.2 Annual Mines Safety Week

Annual Mines Safety Week 2014 was

celebrated from 1st January 2015 to 07th

January 2015. During the Safety Week, a

special safety drive has been conducted

on different subjects. The Prize distribution

ceremony and the nal day function was

organized on 18th January 2015 at Nigahi

Project.

8.0 PROJECT PLANNING AND

DEVELOPMENT.

8.1 Completed Projects:

8.1.1 There are fteen completed coal miningprojects in NCL, In addition there are three

completed OBR Augmentation Schemesand Seven Non-Mining completed projects

costing Rs 5 Crs and above. The details

of above projects are given below :



ANNUAL REPORT 2014-15 _________________________________________________________

32

S.N Name of theProject

Capacity(Mtpa)

Sanc-tionedCapital(Crs.)

Sch.dt. ofCom-

pletion

Actualdate

ofCom-ple-tion

MINING

1 Bina 4.50 168.64 3/87 3/88

2 Jayant 10.00 375.04 3/91 3/90

3 Amlohri 4.00 527.11 3/93 3/93

4 Kakri 2.50 137.80 3/91 3/93

5 DudhichuaPhase-I (Mergedwith DCH Expan-sion 10Mtpa)

5.00 289.68 3/93 3/93

6 Jhingurdah 3.00 63.11 3/87 3/87

7 Gorbi (Closed) 1.00 7.70 3/76 3/76

8 Gorbi-B (Closed) 0.60 19.18 3/90 3/909 Gorbi Expn

(Merged with Gor-bi) - Closed

1.50 19.26 3/89 3/89

10 Nigahi Phase-I(Merged withNigahi Phase-II10Mtpa)

4.20 648.04 3/95 3/95

11 Khadia 4.00 588.75 3/94 3/97

12 Dudhichua ExpnOC (RCE)

10.00 1281.39 # 3/04 3/04

13 Nigahi ExpansionOC

10.00 1846.49 # 3/04 3/04

14 Kakri Coal

Aug. SchemeOC

0.50 48.79 3/04 3/06

15 Bina Extension 6.00 168.97 12/13 12/13

OBR AUGMENTATION SCHEMES

1 Jayant OBRScheme

41.26 3/96 3/96

2 Jhingurdah OBRScheme

42.98 3/96 3/96

3 Bina OBRScheme

48.28 3/01 3/00

NON-MINING

1 Central Workshop 68.72 03/02 3/02

2 Integrated WaterSupply Scheme

18.87 3/89 3/89

3 Nehru ShatabdiChikitsalaya

19.91 4/97 8/02

4 CommunicationScheme

5.04 4/96 3/96

5 Water SupplyScheme Phase-I&II

9.28 4/99 06/98&

04/99

6 Bina DeshalingPlant

16.69 8/97 08/97

7 132 KV SSMadhauli(RCE)

5.43 03/01 03/01

# Including the sanctioned capital of Nigahi Phase-I (4.2 Mtpa )

and Dudhichua Phase-I (5.00 mtpa).

8.2. On-going Projects and Schemes.

8.2.1 There are ve mining projects costing Rs

100 Crs and above under implementation

as mentioned below:

S.N. Name of theProject

Capacity(Mtpa)

Sanc-tion

Capital(Crs.)

Sch. dt.of

Completion

Act. dt. ofCompletion

MINING

1 KrishnashilaOCP

4.00 741.62 3/2013 3/2016

2 Amlohri OCP(4 to 10

Mtpa)

6.00 1143.54 3/2016 3/2016

3 Block-B OCP 3.50 535.10 3/2015 3/2016

4 Nigahi Ex-pansion (10to 15 Mtpa)

5.00 259.40 3/2012 3/2016

5 KhadiaExpansion(4to 10 Mtpa)

6.00 1131.28 3/2018 3/2018

8.3. Future Programme & New Projects :

8.3.1 Five numbers of new/expansion Open

Cast Projects (OCP) have been identied

during XII Five Year Plan.

1. Dudhichua Expansion OCP (10.0 to

15.0 Mtpa)

2. Jayant Expansion OCP (10.0 to 20.0

Mtpa)

3. Semaria OCP (2.00 Mtpa)

4. Bina-Kakri Amalgamation OCP (10.0

Mtpa)

5. Block-B Expansion OCP (3.5 to 8.00

Mtpa)

8.3.2 The status of approval of these projects

and their Forest Clearance (FC) and

Environment Clearance (EC) is given

below :




33

1. Dudhichua Expansion OCP (10.0 to

15.0 Mtpa) :

Expansion Project Report has been

approved by NCL Board in Jul’08

with outsourcing option with a capital

outlay of Rs 326.57 Crs. Project could

not be implemented as FC & EC for

incremental project are required to

be obtained. However, PR is being

recasted for 20.0 Mtpa by CMPDIL.

2. Jayant Expansion OCP (10.0 to

20.0 Mtpa) :

Expansion Project Report (EPR)

was recommended by NCL Board on

31.01.2015 for nal approval of CIL

Board with sanctioned incremental

capital of Rs 1226.38 Crs for additional

OB outsourcing option.

3. Semaria OCP (2.00 Mtpa) :

It’s a green eld project which was

accorded In-Principle approval by NCLBoard in May’11 for capital outlay of

Rs 141.49 Crs. Land required for the

project has been notied and vested

with NCL under CBA (A&D) Act, 1957.

FC & EC are to be obtained.

4. Bina-Kakri Amalgamation OCP

(10.0 Mtpa) :

Bina-Kakri Amalgamation OCP (10

Mtpa) has been approved in-principleby NCL Board with initial capital outlay

of Rs 1291.98 Crs. Notication of 180

Ha additional land under Sec 9(1) of

CBA (A&D) Act, 1957 has been issued

on 17.12.2014 & published in Gazette

of India. Proposal for publication of

vesting order under Sec (11) of CBA

(A&D) Act, 1957 has been submitted

to MoC on 14.02.2015. EC & FC are

required to be obtained.

5. Block-B Expansion OCP (3.5 to

8.0 Mtpa) :

Project Report for 8.0 Mtpa is being

recasted by CMPDIL.

8.4 EXPLORATION & DRILLING

The drilling for geological exploration is

done through CMPDI, RI-VI.

( in Mill Tes)

2013-14 2014-15 2015-16

Actual Target Actual Target

(Proposed)

CIL Non-CIL CIL Non-CIL Total

CMPDI 0.00 24123.00 27500.00 10220.00 15117.00 25337.00 27500.00

MECL 21048.00 18714.00 52000.00 26660.00 19843.00 46503.00 50000.00

8.5 Status Report for the Work of Excavation/

Removal of Overburden by Hiring of

Equipment in NCL as on 31.03.2015 is

as under :

Sl.

No.

Project Estimated

Quantity

(MBCM)

Period

(Years)

Contract

awarded to

Date of Com-

mencement

Scheduled

date of

completion

Remarks

1 Am-

lohri -I

97.80 5 M/s BGR

Mining &

Infra Pvt.

Ltd., Nellore

(AP).

01.03.2011 29.02.2016 Work

completed on

02.04.2015

2 Block-B 64.43 5 M/s National

Construc-

tion Co.,

Bhuj-Kutch

(Gujarat)

01.06.2010 31.05.2015 -

3 Dudhi-

chua

49.00 3.25 M/s JP-ASD-

DHOLU

(JV), Ah-

medabad

03.12.2010 02.03.2014 Work

completed on

02.02.2015

4 Kr-ishnash-

ila

59.36 5 M/s Monte-carlo Ltd.,

Ahmedabad

21.01.2013 20.01.2018 -

5 Jhingur-

da

19.41 3 M/s

AMR-Saisu-

dhir (JV),

Hyderabad

21.07.2013 20.07.2016 -

6 Khadia 59.2806,

7.26 (RH)

5 M/s Monte-

carlo Ltd.,

Ahmedabad

03.06.2013 02.06.2018 -

7 Amlohri

-II

100.00 5 M/s Sadbhav

Engineering

Ltd., Ah-

medabad

14.07.2013 13.07.2018 -



ANNUAL REPORT 2014-15 _________________________________________________________

34

8 Kakri

New

12.91 3 M/s Rungta

Projects

Ltd., Anpara,

Sonebhadra

(UP)

27.10.2013 26.10.2016 -

9 KhadiaNew

22.30 3 M/s BGRMining &

Infra Pvt.

Ltd., Nellore

(AP).

04.08.2014 03.08.2017 -

10 Bina 105.6 5 M/s GSCO

Infrastruc-

ture Pvt.

Ltd.

16.11.2014 15.11.2019 -

11 Jayant

East

26.62 3 M/s Gajraj

Mining

Pvt. Ltd.

17.11.2014 16.11.2017 -

12 Nigahi 54.00 3 M/s

Saumya

Mining

Ltd.

20.02.2011 19.02.2014 Work com-

pleted on

30.09.2014

13 Nigahi

New

75.00 3 M/s BGR

Mining &

Infra Pvt.

Ltd.

18.11.2014 17.11.2017 -

14 Dudhi-

chua

West

27.85 3.3 M/s Gajraj

Mining

Pvt. Ltd.

08.12.2014 24.01.2018 -

15 Dudhi-

chua

East

68.07 3 M/s BGR

Mining

& Infra

Pvt. Ltd.,

Nellore

(AP).

14.02..2015 13.02.2018 -

16 Jayant

West

81.97 4.67 M/s VPR

Mining

Infrastruc-

ture Pvt.

Ltd.

01.12.2014 12.08.2019 -

17 Am-

lohri

-III

15.00 3 M/s Dholu

Construc-

tions &

Projects

Ltd.

09.03.2015 08.03.2018 -

9.0 ENVIRONMENTAL PROTECTION

9.1 Management of NCL’s Economic ,

Environmental, Energy and Social

Concerns:

9.1.0 NCL has well dened and documented

manual, policy, procedures and guidelines

for Sustainable Development under its

Integrated Management System (IMS)

complying with international standards of

ISO 9001, ISO 14001, OHSAS 18001.

9.2 NCL’s Corporate Managemet Policy

9.2.1 NCL has voluntarily chosen to implement

a comprehensive system for simultaneous

managemen t o f ou r economic ,

environmental and social concerns as a

part of our business agenda.

9.2.2 NCL is committed to:

1. Assured quality of our coal supplies.

2. Optimum utilization of available

resources.

3. Continua l improvem ent in the

management and performance of

our system.

4. Ensuring prevention of pollution, injury

and ill health due to our work activities.

5. Comply with all applicable legislations

and other subscribed obligations.

6. Respect all ILO and other international

charters on social and labour issues.

7. Promoting importance of the concept

of sustainable development.

8. Ensure that this policy is effectively

implemented, maintained. andcommunicated.

9. Review this policy regularly to ensure

its continual improvement and

relevance.

10. Make this policy accessible in a

comprehensible form to all personnel

engaged for NCL in any manner.

11. Make this policy publicly available in

an effective form and manner to all

interested parties, upon request.

9.2.3 NCL’s Energy Management Policy

We are committed to continually improve

the energy performance of all our process

and systems. So, we ensure that :

1. Adequate information and resources

always remain available to achieve

our energy objectives and targets;




35

2. We always comply with all our energy

related obligations, whether legal or

otherwise subscribed; and

3. We always promote the purchase ofenergy efcient products, services,

and designs.

9.3 Environmental Conservation Measures:

9 .3 .1 Forest /Ecologica l Mit igat ive

Measures :

Forest clearances (FCs) have been

accorded to the NCL projects by the

Govt of India, MoEF/ concerned State

Governments (of UP and MP). Till31.03.2015, total 8,018.006 hectares forest

land has been granted forest clearances,

out of which, total 7,838.500 hectares

Forest Land has been handed over to

the NCL Projects by the concerned State

Forest Departments. During 2014-15,total 170 ha. forest lands (150 ha. for Bina

Extension by the MP Forest Departmentand 20 ha. for Krishnashila project by the

UP Forest Department) have been handed

over.9.3.1.1 These clearances stipulate certai n

conditions to be complied with by the

user agency. These conditions basicallyrelate to payment of Net Present Value

(NPV), compensatory afforestation (CA),reclamation of mined out areas, creation

of safety zones around mining areas,meeting fuelwood needs of labourers and

employees engaged in mining activities etc.The basic objectives of these conditions

are to ameliorate/mitigate the impactson forests and its various ecosystem

attributes (wildlife, flora, fauna, bio-diversity etc.) resulting from coal mining

activities. Brief details of various forest/ecological mitigative measures undertaken

by the NCL projects are given below :

9.3.2 Compensatory Afforestation

The compensatory afforestation is theafforestation done in lieu of the diverted forest

lands for coal mining and other purposes.

Earlier, compensatory afforestation was

done over equivalent area of non-forest

land. There is a special provision for

Central Government/Central Government

Undertaking projects. According to thatcompensatory afforestation is to be raised

on degraded forest lands twice the area

of forest land being diverted. The State

Forest Departments are to identify “blank”

or “degraded” forest land for compensatory

afforestation and the user agency has

to deposit the amount for compensatory

afforestation with the concerned State

Forest Departments.

In lieu of the diverted forest lands, total

4,323.869 hectares non-forest lands

have been purchased by the NCL and

handed over to the concerned State

Forest Departments for compensatory

afforestation along with the required costs

of compensatory afforestation. Besides

this, total 3,951.492 hectares degraded

forest lands have been identied by the

concerned State Forest Departments for

the purpose of compensatory afforestation

and the NCL has paid Rs. 4791.967 lakhs

for compensatory afforestation over theselands.

9.3.3 Net Present Value (NPV) :

NCL has paid total Rs. 9,802.298 lakhs

towards Net Present Value (NPV) as

per the stipulated condition of forest

clearances.

9.3.4 (Biological) Reclamation of Mined Out

Areas :

After Over Burden Dumps, which aremade by back lling of mined out areas,

after having achieved the planned heights,

are technically reclaimed by means

of retaining walls, terraces/steps etc.

Afterwards, biological reclamation works

are carried out through plantations of

suitable local species.

During the year 2014-15, 91.41 ha. OB

dumps areas have been biologically

reclaimed by planting 3.20 lakhs plant



ANNUAL REPORT 2014-15 _________________________________________________________

36

saplings. Till 31.03.2015, total 3261.27

ha. have been biologically reclaimed by

planting total 141.76 lakhs plant saplings.

9.3.5 Creation of Safety Zones :

Safety Zones consisting of dense tree

covers have been created around mine

boundaries. Besides this, NCL has paid

the costs of afforestation over degraded

forest lands to the extent of one and half

times the Safety Zone areas.

9.3.6 Social Afforestation :

NCL has undertaken extensive afforestation

in residential colonies, road sides etc.

This has resulted into development ofextensive green cover all around, which

helps in checking air, water and noise

pollution. During the year 2014-15, total

1,88,500 plant saplings have been planted

under social afforestation programme.

Till 31.03.2015, total 84.75 lakh plant

saplings have been planted under social

afforestation programme.

9.3.7 Till 31.03.2015, total 226.51 lakhs plant

saplings have been planted for biological

reclamation and social afforestation

programme.

9.4 Pollution Control Measures

9.4.1 Air Pollution Control Measures

(i) Automatic sprinklers have been

installed at coal receiving pits and

are actuated through sensors. Fixed

sprinklers have been installed at coal

bunkers, transfer points and loading

points and are operated throughcontrol valves.

(ii) Dust cyclones are provided at the

bottom of receiving pit of the crusher

house.

(iii) All the Coal Handling Plants (CHPs)

are fully enclosed to reduce coal dust

emission outside CHP.

(iv) Drills are provided with dust extractors.

(v) Approach roads to mines and service

roads are provided with black topping

to reduce dust generation.

(vi) Mobile water sprinklers are deployed

for dust suppression on haul roads oncontinuous basis.

(vii) Thick green belts; tall plants with

broader leaves have been provided as

curtain at mine boundary to arrest air

borne dust. The total numbers of trees

planted till 2013-14 is 2.21 crores.

(viii) Non-active Over Burden (OB) dumps

are provided with vegetative cover

to prevent dust emission under OB

Dump reclamation plans.

(ix) Dust proof cabins have been provided

for operators in Heavy Earth Moving

Machines (HEMM). Dust masks have

been provided to employees exposed

to dust.

(x) Fire hydrants sys tem has been

installed for CHPs and coal dumps.

(xi) Moist coal is loaded to Merry Go

Round (MGR) through Rapid Loading

System.

(xii) Routine maintenance and periodic

overhauling of HEMM are done to

reduce gaseous emission.

(xiii) Regular ambient air quality monitoring

is being done to monitor the air quality

and corrective actions are being taken

in case of any adverse report.

9.4.2 Water pollution control measures

Water pollution control has been donethrough Silt Arrestors, 10 Efuent Treatment

Plants (ETPs) for efuent generated from

Mine, Workshops, CHPs and 8 Domestic

Sewage Treatment Plants (DSTPs) for

colony sewage of working mines are in

operation.

(a) Efuent Treatment Plants :

Integrated Efuent treatment Plants

have been designed for treatment

of discharge from mine, workshop




37

and CHP. The plants contain oil and

grease recovery system through traps,removal of suspended solids through

clariers after chemical dosing at ush

mixer, sludge drying beds, pipelineand pumping arrangements. Cleantreated water is re-used for water

sprinkling on haul roads, sprinklersand industrial purposes.

(b) Construction of new ETPs :

Two more ETPs are proposed to be

constructed as detailed below :

(i) Scheme of ETP construction forKrishnashila Project, prepared

by CMPDIL, Ranchi has beenapproved by NCL. It is to be

constructed shortly.

(ii) Scheme of ETP construction

for Block-B Project preparedby CMPDIL, Ranchi has been

approved by NCL. Work Orderhas been issued and it is in the

process of construction.

(c) Domestic Sewage Treatment Plants

(DSTPs) :

Eight Domestic Sewage Treatment

Plants have been constructed intownships with activated sludge

process. The plants contain aerationunits for oxidation, clarifiers for

removal of suspended solids, sludgedrying beds, grit removal facilities,

sewer lines, manholes, pump houses,control room, etc. Treated water is

re-used in horticulture/ agricultureand construction activities. Dried

sludge, valuable manure is used inagriculture.

(d) Construction of new STPs :

One more STP is proposed to be

constructed as detailed below:

(i) Final scheme for constructionof STP for Block-B Project,

prepared by CMPDI, Ranchi,has been approved and it is in

process of tendering.

(e) Silt Arrestor :

Substantial amount of silt is carried

along with the run off water. Catch

drains with silt arrestors are providedin mine areas and are cleaned at

regular intervals. Check dams and

siltation ponds are provided to arrest

silt flowing to the water course.

Gabions (loose stones packed in

wire crates) with lter pad at toe of

the active dumps and across water

course, protect against escape of silt

into the water body.

(f) Oil recovery :

Floating oil, recovered from Oil and

Grease traps is collected in drums

which are stored in a raised paved

area having drains to collect back

spillages. Used Oil collected during

maintenance of vehicles and HEMM

are collected and stored in lid tight leak

proof drums. Authorization from State

Pollution Control Board is duly taken

for each individual Project for storage

of used oil which is hazardous waste

(Cat. 5.1). This used oil is disposedby e-auction through authorized

recyclers.

(g) Disposal of Hazardous solid waste

containing oil :

This comes under hazardous Waste

Category 5.2. Authorization from

State Pollution Control Board is duly

taken and these wastes are stored

in specifically constructed sheds

and disposed off through authorizedCommon Treatment Storage &

Disposal Site, available in the State.

9.4.3 Noise Pollution Control Measures

i. Blasting operations are carried out

between 13:00 to 14:00 hours only

i.e. during change of shifts.

ii. Ear-muffs and ear-plugs are provided

to employees wherever required.

iii. Curtain plantat ions have been



ANNUAL REPORT 2014-15 _________________________________________________________

38

provided in and around colonies andalong mine boundaries.

iv. Routine maintenance of all equipment.

9.4.4 Special activity: Eco restoration workin NCL in 2014-15

Presently, the NCL is carrying outEcological Restoration of mines outareas in Krishnashila and Nigahi projectson 5 ha. each. Over burden dumps inorder to convert degraded mined out areainto productive ecosystem as well as toenhance biodiversity with the technicalguidance and assistance of the ForestResearch Institute, Dehradun.

9.4.5 Technical & Biological Reclamation ofExternal OB Dumps

Vegetative covers over bare OB dumps

have been provided in major projects.

It ensures stability to dump slopes,

minimization of erosion due to wind

and rain water. The dumps have been

reclaimed by constructing proper benching

and providing reinforced grass-mat covers,

gabions and drains. The slope surface has

been covered with mixture of grass seeds,

agricultural soil and manure laid in coir/hay/straw/ geo-textile mat. The plantation

of trees, shrubs and grass has been done

profusely on crowns of dumps, ring bunds,

dykes, recess, slopes etc. to ensure

thick biological growth. For maintaining

vegetative cover, water sprinklers have

also been deployed at specific points.

Large scale plantaion carried out in slopes

and top of completed OB dumps.

9.4.6 Health Study by NIOH

A study of the health of NCL employees

and people living in surrounding areas is

being doneby NIOH, Ahmedabad. First

phase of the study has been completed

during 2014-15 and second phase will be

taken up during 2015-16.

9.5 Impact Of Above Measures On Pollution :

Ai r Po llut ion Cont ro l Measures and

Water Pollution Control Measures have

been adopted to maintain air and water

quality within permissible limit as per

guidelines stipulated by State Pollution

Control Boards (SPCBs) and Ministry of

Environment & Forest (MOEF), statutes

and legislation applicable to coal mines.Noise Pollution Control Measures have

been adopted to maintain noise level within

permissible limit. The results of monitoring

have been found within permissible limits.

9.6 Environment Clearances

All the Open cast Projects are operating

with Environmental Clearance from

Ministry of Environment & Forest, New

Delhi. The consent for Air and Water is also

taken from the Pollution Control Boards.

10.0 ISO ACCREDITATION

10.0.1 Int egr ate d Managem ent Syst em

certicates :

NCL is having an Integrated Management

System Certication as follows:

“Your company continues to hold the

latest version of ISO 9001 :2008 , ISO

14001:2004 and OHSAS 18001: 2007

certications for whole company in respectof the following activities;

Mining and Supply of Coal including related

field support, Corporate Management

services and provision of diagnostic,

curative, rehabilitative and preventive

health care services.”

These Certifications indicates NCL’s

commitment to Quality, Environment,

Occupational Health and Safety at par with

Global Standards.

11.0 HUMAN RESOURCE DEVELOPMENT &

INDUSTRIAL RELATIONS

11.1 Manpower

11.1 Manpower strength of the company

(excluding apprentices under the

Apprentices Act, 1961) as on 31st March,

2015 was 16226 against 16741 as on 31st

March, 2014. The breakup of manpower

strength is given below :




39

(Fig. in Nos.)

Sl.No. Particulars As on

31.3.2015

As on

31.3.2014

1 Executives 1795 1771

2 Supervisors 1518 1667

3 Clerical Staff 1097 1057

4 Highly Skilled/Skilled 8569 8235

5 Semi Skilled/Unskilled 3247 4011

Total 16226 16741

11.2 Human Resource Development

11.2.1 The training and skill development part ofNCL employees looked after by CentralExcavation Training Institute (CETI) is asunder:

• Providing learning opportunitiesto the employees to narrow downperformance gaps.

• To develop traini ng/ referen cematerials and to arrange specialprogrammes on new equipment forall level of employees.

11.2.2 NCL has a Central Excavation TrainingInstitute (CETI) at Singrauli and nineVocational Training Centers (VTCs) indifferent projects. Need based trainingis provided to Workmen, Operators,Supervisors and front line Managers. Themajor training programmes conductedcentrally at CETI are as under :

• Basic courses for HEMM (Dumper,Shovel, Drill, Pay loader and Dozer)Operators, technicians and unskilledworkers.

• Refresher courses for HEMM (Dumper,Shovel and Dozer) Operators andtechnicians.

• ‘Original Equipment Manufacturers’Prog rammes on techno logyupgradation.

• S u p e r v i s o r y D e v e l o p m e n tProgrammes.

• Technical development programmesfor executives.

• Basic Computer Learning coursesfor executives, supervisors and otherstaff.

• Workers’ Development Programmes

including Leadership Development

Programmes.

• Structured Training Programmefor Mining, Excavation and E&MSupervisors.

• Training Programmes for SafetyCommittee Members and Workmen’sInspectors.

• Dumper simulator 85T/100T at CETIis an upgraded tool of training forDumper operators (Basic & Refresherboth).

• Training Programmes on “PreparatoryProgramme for Retiring Executives”.

• Training Programmes on “Literacy

Drive”.11.2.3 CETI organized 18 Workshops and

Seminars during the year 2014-15 formiddle and senior level managementgroups and staff focusing on contemporaryissues. The statutory training requirementsare met by VTCs.

11.2.4 Information about the persons whounderwent different training programmesduring the year 2014-15 as compared tothe year 2013-14 is given hereunder :

Sl.No.

Particulars 2014-15 2013-14

i) Number of persons trainedthrough Vocational TrainingProgrammes at VTC.

19205 18198

ii) Number of persons trained at CETI :

(a) Regular training programmes 2845 2576

(b) Workshops & Seminars 766 2169

(c) Technical Training (OutSide)/OEM

132 170

TOTAL 3743 4915

iii) Number of persons trained through outside companyProgramme in India.

a) General ManagementProgramme

50 125

b) Techno-managerial courses 120 190

TOTAL 170 315

iv) Number of persons trained abroad :

a) General ManagementProgramme

06 NIL

b) Techno-managerial courses 00 NIL

TOTAL 06 NIL



ANNUAL REPORT 2014-15 _________________________________________________________

40

11.3 Reservation for Scheduled Castes

(SCs)/Scheduled Tribes (STs) and other

Backward Classes (OBC) in recruitment

and promotion.

(i) Recruitment :

The Presidential Directives in the

matter of recruitment of Scheduled

Castes (SCs), Scheduled Tribes (STs)

and Other Backward Classes (OBCs)

have been implemented in NCL.

(ii) Promotion :

A total of 216 candidates belonging

to SC community and 112 candidates

belonging to ST community were

promoted during 2014.

The representation of SC and ST

candidates in total manpower is as

under :

As on Total

Man-

power

SC Candidates

Number in %

ST Candidates

Number in %

31.03.2015 16226 3122 19.24% 1229 7.57%

31.03.2014 16741 2669 15.94% 1269 7.58%

11.4 Appointment of Land Oustees.

11.4.1 During the nancial year 36 Land Loserswere appointed.

11.5 Workers’ Participation in Management

11.5.1 The worker’s participation in managementin NCL is encouraged at all levels and isoperative to every possible extent. Thereis system of bipartite dialogue to discussand address not only the grievances but

also the issue pertaining to the entireManagement of the Mine.

11.5.2 The meeting of Joint ConsultativeCommittees (JCC) takes place at regularintervals at Project/Unit level as wellas Corporate Level. Further meetingof Safety Committee, Welfare Board,Medical Advisory Board, House AllotmentCommittee, Canteen Committee etc. arealso held regularly. In all above forums theTrade Union Representatives do actively

participate and contribute.

11.6 Industrial Relations

11.6.1 Industrial Relations in our Company

continue to be highly cordial and

harmonious. The participative way offunctioning of management facilitates

settling the disputes/grievances amicably

through discussions, which in turn has

resulted in maintaining over all healthy

ethos of relations in Northern Coalelds

Limited. However, few instances of

Industrial Relation disturbances during

2014-15 are as under.

Sl.

No.Particulars 2014-15 2013-14

1. No. of Strikes -a) Complete 0 0

b) Partial 1 1

2. Law & Order disturbances -

a) Relay Hunger strike 1 2

b) Dharna/Demonstration 5 8

c) Assault NIL NIL

d) Rowdism NIL NIL

e) Gherao NIL 2

f) Obstruction NIL 2

g) Non Co-operation activities NIL NIL

3. Man-days Lost 10075 1478

4. Loss of Production -

Coal (Tonne) 241000 7000

O.B. (Cu.M.) 46600 11000

12.0 EMPLOYEES WELFARE AND SOCIAL

AMENITIES.

12.0.1 In NCL proper emphasis is given on

employee welfare and efforts are made

for improvement in welfare and social

amenities like Housing, Water supply,

Medical, Education, Recreational facilitiesetc.

12.1 Housing & Township

12.1.0 The total number of standard houses as on

31.3.2015 are 15959. However, taking into

account the 1501 Non-standard houses

also, the total number of houses is 17460.

Excluding 1325 houses allotted to different

agencies, balance available houses are

14458, which provides 100% housing

satisfaction to the employees of NCL.




41

12.2 Water Supply.

12.2.1 The entire population of 79795 has

been covered under the water supply

arrangements upto 31.03.2015. In regardto availability of water, there is 100%

satisfaction to the employees in the

company.

12.3 Educational Facilities.

12.3.1 The company has established 7 DAV

Public Schools, 2 Kendriya Vidyalaya and

01 Delhi Public School in its command

area. Other Schools in this area are also

supplementing the education facilities and

given infrastructural support from NCL. An amount of Rs.920 lakhs (Prov) was

incurred towards nancial support to the

Schools of NCL for student strength of

13,593. An amount of Rs.63 lakhs was

given towards the Higher Technical Fee

reimbursement to the wards of Wage

Board employees of NCL.

12.4 Medical Services

12.4.1 With the aim of achieving a healthy work

force by keeping the executives andstaffs, their dependant family members

healthy physically, mentally, socially and

occupationally and also free from diseases

through preventive, curative, qualitative

and community health care approach,

Medical discipline of NCL is providing

Primary, secondary and tertiary care in

some of its departments with its Specialists

Doctors, General Duty Medical Ofcers,

Paramedical Staff, & Non Medical Staff

with its excellent infrastructure. These

services are also being offered to local

population residing within the catchment

area of NCL through regular services and

also through CSR activities.

12.4.2 NCL has three hospitals with total

strength of 200 beds. There are two

regional hospitals namely Central Hospital,

Singrauli with bed strength of 35 and Bina

Hospital with 15 beds. The main hospital

is Nehru Shatabdi Chikitsalaya with 150

beds, located centrally in Jayant.

12.4.3 Besides the above 3 hospitals altogether

there are 11 dispensaries, one in each

project except Dudhichua Project where

2 dispensaries are existing.

12.4.4. Nehru Shatabdi Chikitsalaya (NSC)

NSC is functioning as Referral and

Specialized Hospital for all Project

Dispensaries and Regional Hospitals,

providing secondary care for most of

the cases and tertiary care in few of

its discipline round the clock, 24 x 7 &

365 days in a year. Patients are also

being referred from nearby PSU, Govt.

and Private hospitals, PHC and District

Hospitals. Patients requiring services ofMedicine, Surgery, Orthopedics, Pediatrics,

Obstetrics & Gynecology, Eye, ENT and

Dental disciplines are available in regular

OPD. Most of the necessary investigations

are carried out in the department of

Pathology which also has a fully functional

Blood Bank. In department of Radiology

facilities of Ultrasonography, CT Scan,

MRI, Mammography are available. NSC

has a Non-invasive Cardiac Lab. with

facilities of ECG, Echocardiography

with Color Doppler, TMT, Continuous

Ambulatory Holters Monitoring & PFT.

In the eld of Nephrology provision for

Haemodialysis and CAPD are in vogue.

Specialized facilities e.g. Diagnostic

Upper G. I. video Endoscopy, Video

Colonoscopy, CCU with Ventilators,

Multipara monitor, Nebulizer, Temporary

Pacemaker, Defibrillator, External non

invasive Pacemaker, NICU, Laparoscopic

Surgeries, Diabetic Foot Care Clinic and

Hypertension Clinic, Wellness Centre forcounseling are available. Department

of Emergency Medicine has been made

as a separate unit to provide emergency

medical service round the clock.

12.4.5 Diabetic Clinic & Wellness Centre

Due to increased incidence of Diabetes,

lifestyle and occupational diseases a

Diabetic Clinic and Wellness Centre has

been established at NSC and Central

Hospital, Singrauli. Here patients are



ANNUAL REPORT 2014-15 _________________________________________________________

42

treated and consulted for diabetic foot care,

kidney and eye care. Regular counseling

for diet, lifestyle and occupational diseases

are being done here. Total persons

consulted :

Wellness

Centre

Diet

Counseling

2013 5892 1088

2014 8969 1590

12.4.6 Key performances – OPD and Indoor

activities

HOSPITAL OF NCL FOR F.Y. 2013-14 2014-15

NEHRU

SHATABDI

CHIKITSALAYA

OPD CASES

Entitled 1,41,850 1,37,603

Non-entitled 50,892 45,301

TOTAL 1,92,742 1,82,904

INDOOR

ADMISSIONS

Entitled 5,749 6,152

Non-entitled 9,566 9,136

TOTAL 15,315 15,288

CENTRAL

HOSPITAL

SINGRAULI

OPD CASES

Entitled NA 39,611

Non-entitled NA 7399

TOTAL 45,834 47,010

INDOOR

ADMISSION

Entitled NA 835

Non-entitled NA 557

TOTAL 1,132 1,392

BINA HOSPITAL

OPD CASES

Entitled NA 80,191

Non-entitled NA 113

TOTAL 68,612 80,304

INDOOR

ADMISSION

Entitled NA 505

Non-entitled NA 38

TOTAL 632 543

OTHER

DISPENSARIESOPD CASES

Entitled NA 3,38,261

Non-entitled NA 4,087

TOTAL 3,58,871 3,42,348

GRAND TOTAL Of OPD CASES (all NCL) 6,66,059 6,52,566

GRAND TOTAL OF INDOOR ADMISSIONS (all NCL) 17,079 17,223

% of Entitled & Non-entitled patients at NSC

OPD Indoor

Entitled Non-entitled Entitled Non-entitled

2013-14 73.6 26.4 37.5 62.5

2014-15 75.2 24.8 40.2 59.8

Bed Occupancy rate at NSC (of total bed

strength of 150)

12.4.7 Key performances – Routine Surgical

Procedures

MAJOR SURGERIES MINOR SURGERIES

2013-14 2014-15 2013-14 2014-15

Gen.Surgery(NSC)

644 568 Gen. Surgery(NSC & CH)

326 315

Orthopedics(NSC)

28 50 Orthopedics(NSC)

15 61

Eye (NSC & CH)& ENT (NSC)

456 383 Eye (NSC) &ENT (NSC)

50 37

Gynae. &Obstetrics(NSC)

1493 1447 Gynae. &Obstetrics(NSC & CH)

53 104

TOTAL 2621 2448 TOTAL 444 517

12.4.8 Key performances - Special Activities

2013--14 2014-15 2013-14 2014-15

DIALYSIS UNIT NON INVASIVE CARDIAC LAB

Haemo-dialysis

Enrollment-35

Enrollment-30

• Echocardi-

ography withColor Doppler

718 1535

CAPDEnrollment-15

Enrollment-17

• TMT 422 369

RADIOLOGY • HOLTERS 52 43

* CTScan

1120 1248Laparoscopic

Surgeries183 103

* MRI 480 315CCU & NICU(NSC + CH)

2697 2110+19

USG(NSC +

CH)10231+1179 10470+1661 Endoscopy 280 354

BLOOD BANK ( Collection/Issue) 2082/1995 1896/1971




43

12.4.9 Periodical Medical Examination(PME),

Master Health Check-up (for executives

and their spouses) are being done regularly

in NSC. IME (Pre employment) for all

employees (Execute & Nonexecutives) arebeing done at NSC. PME of NCL employees

are done at project dispensaries and

regional hospitals of NCL. Pre employment

IME of contractual workers are being

done at Project Dispensaries / Regional

Hospitals. IME & PMEs are done as per

11th safety committee recommendation. In

the year 2014, against the target of 4130,

Total PME done is 4173, which is 101%

of the target. (in 2013 achievement was

99.69%). Total IME of contractual workersdone in 2014 is 1180 (in 2013 it was 2775).

12.4.10 A Pneumoconiosis Workshop was

organised at NSC, Jayant on 18.02.2015

for doctors of NCL engaged in doing IME

& PME in dispensaries / regional hospitals/

NSC. A total of 18 doctors participated in

the workshop and in the X-Ray reading

session as per ILO guidelines.

12.4.11 Various conferences of paramedical staffs

were organised regularly every year atNSC, Jayant. In 2014-15 a conference

of Pharmacists of CIL was organised in

November-’14. Pharmacists of nearby

hospitals also participated in the program.

12.4.12 Continuing Medical Education (CME)

programs are regularly organised at NSC,

Jayant.Experts from different disciplines of

medicine from reputed hospitals of India

are invited to deliver lectures and conduct

workshops on various latest topics and

techniques of medical science. Doctors ofNCL also deliver lectures on various topics

of medical interest. In the F.Y. 2014-15 total

27 CME programs of 2 hours duration each

were organised compared to previous F.Y.

where the gure was 25.

12.4.13 Waiver of treatment cost of poor patients:

A sum of Rs. 2,37,688.63/- only incurred

for treatment of 67 poor patients have

been waived off who were treated under

CSR policy of NCL in F.Y. 2014-15. In

F.Y. 2013-14 the total amount waived off

was Rs. 9,56,492.20/- only for 138 poor

patients. For the current F.Y. (2014-15)

number of poor patients as well as waived

off amount has reduced from previousF.Y. because of segregation of waived

off amount incurred for treatment of poor

patients treated in various CSR camps and

poor patients admitted routinely in NSC

and CH, Singrauli.

12.4.14 A Centralised Referral and CPRMSE Cell

started functioning at NSC, Jayant since

1st July 013.This cell is clearing the bills of

empanelled hospitals of CIL as per CGHS

rates and packages where our patients are

referred for tertiary care. Claims of OPD/

Indoor treatments of retired executives of

CIL and their spouses are looked after by

this cell. Since its formation, 362 retired

executives of CIL are availing the benets

of CPRMSE. Payments are made directly

to the empanelled hospitals and to the

retired executives by nance department

of NSC through RTGS / NEFT.

12.4.15 Corporate Social Responsibility (all hospital

& dispensaries): NCL regularly organisesvarious Health camps, free of cost for the

poor and weaker section of the society

living in nearby villages around NCL.

The camps were organized throughout the

year. In some of these camps renowned

Physicians and Surgeons, Plastic

surgeons, Oncologists, Nephrologists,

Cardiologists, Urologists, ENT Specialist

from empanelled hospitals of CIL such as

Max hospital, New Delhi, AIMS, Faridabad,

Yashoda Hospital, Hyderabad, & Institutelike IMS,BHU, Varanasi extended their

services to local people of Singrauli.

Every Project dispensary is running its

own CSR Dispensary where free medical

consultation are provided for poor patients

in regular OPD. A Dispensary on Wheels

(Mobile Medical Van) regularly visits

Birkuniya & Ambedkar Nagar village near

Singrauli. Overall expenditure in F.Y. 2014-

15 was Rs. 2,54,365/- (in F.Y. 2013-14 it

was Rs. 3,76,603.13/-).



ANNUAL REPORT 2014-15 _________________________________________________________

44

Year

Dispensary on Wheels CSR - No. of

Beneciaries

at regular OPD

by project

CSR - No. of

Beneciaries

in camps by

project

Total No.

of visits

Total No. of

Beneciaries

2013-14 71 3271 11952 3369

2014-15 49 2235 13927 3268

12.4.16 Activities under CSR for current F.Y.

are as under.

Total no. of camps organized under CSR

is 47. Total no. of beneciaries is 6091.

Overall expenditure incurred for the camps

is Rs. 32,49,735/- .Other than these,

various awareness camps were organized

throughout the year. Break-up of CSR

Camps are given in the following table.

Name of CampNo of

Camp

Beneciar -

ies

Expendi-

ture

Cardiac 1 190 1,05,480

Diabetic 2 320 83,280

Cancer Detectioncamp

4 358 1,94,191

Hypertension De-tection camp

2 528 96,428

Pediatric Healthcamp

3 733 1,48,285

Kidney Diseasecamp

1 58 74,550

Senior citizen

Health Check-up 1 50 56,070

Urology 1123 (operat-

ed=19)1,08,403.20

Lifestyle DiseaseModication

1 100 1,51,585

MultidisciplinaryRural Health

3 1214 2,57,451

Deafness Reduc-tion

1126 (operat-

ed=09)1,11,613

Laparoscopy 127 (operat-

ed=12)1,60,897.53

Eye 6325(operat-

ed=325)4,16,338

Filariasis & surgical

camp1

72 (operat-

ed=23)95,000

Plastic Surgery 173 (operat-

ed=20)2,10,341.41

Family Planning 12398 (operat-

ed=361)3,27,607

Thallesemia (Admit-ted Cases)

- 53 1,04,836

Village Health camp – by Jayant

4 828 2,49,680

Women HealthCheck-up – By Bina

1 204 99,399

DM & HTN Check-up-BINA

1 311 1,98,300

Dispensary on

Wheels

49 visits 2235 2,54,365

12.4.17 Family Welfare: The following data are all

inclusive of entitled and non-entitled cases.

Normal Delivery IUSD Tubectomy

NSC Others Total NSC Others Total NSC Others Total2013-14 2214 14 2228 123 12 135 402 100 502

2014-15 2100 21 2121 134 19 153 346 5 351

12.4.18 National Health Programs: Govt.

sponsored National Health Programs are

also running in NCL e.g.

1. Revised National Tuberculosis Control

Program (RNTCP)

2. Integrated Counseling and Testing

Center for HIV / AIDS (ICTC)

3. Universal Program on Immunisation

4. Blindness control Program

2013-14 2014-15

RNTCP (74 cases under Dots

Total Beneciaries 507 909

Total Positive Cases 38 49

ICTC

Total Beneciaries 3984 2840

Total Positive Cases 11 7

12.5 SOCIAL ACTIVITIES

12.5.1 Sports & Games.

Adequate infrastructure has been developed in the

company for promoting games and sports. There

are four stadium one each at Bina, Jayant, Nigahi

and Singrauli with necessary gym equipment for

physical fitness of employees. NCL has been

conducting 19 different inter project sports and

cultural competitions. Various sports camps are also

organized details given below in which National andInternational level sportsmen participated:-

1) 16 Inter project level tournament

2) 4 All India National level invitation

tournament.

3) 2 Coal India level Inter company

tournament.

4) Establishment of Gym at CETI.

5) Two Badminton wooden court, one

Billiard Board.




45

6) Starting of Aerobic class for women

only.

7) One synthetic lawn tennis court with

ood light.8) 4th Inter School level Inter Project

level tournament of sports (Atheletic,

cricket, football and cultural).

12.5.2 Recreational Facilities

NCL has adequate recreational facilities for

its employees and their family members.

Each Project has their own Ofcer’s Club

and Worker’s Institute, well-equipped with

furniture, utensils, indoor sports material

etc. and matching grant is also provided.

12.6 Socio-economic contribution

12.6.1 The company had already developed

six rehabilitation sites viz. 3 in UP State

(Rehta, Ambedkar Nagar and Jawahar

Nagar), 3 in MP State (Chandrapur,

Nandgaon and Jaitpur) and one more

new site is approved for development for

resettlement of Project Affected Persons

(PAPs) with necessary civic amenities

linked with Block-B Project.

During the year 1 patta were issued and

76 families were paid cash in lieu of plot

@ of Rs 1 Lakh to each family. Total 3241

number of families are rehabilitated out of

4065 upto 31st March 2015.

12.6.2. To impart greater responsibility towards

social and economic upliftment of the

displaced, package concept for offer of

employment is evolved and practiced

since 2008-09 in NCL. In this system 2 ormore land oustees, who are not eligible

for offer of employment due to less than 2

acres of land holding may come together

and make a package for offer of an

employment to one of them or one of their

nominee. This has enhanced the chance

of getting employment against land and

also enhanced the coherence among the

land oustees as well as helping in solving

the R&R issues.

12.6.3 In 2014-15, total 40 employments have

been given against acquired land, out of

which 37 employement is offered under

package deal concept in which 133

land oustees added their share of land

to make those 37 packages for offer ofemployment.

12.6.4 Compensation of Land and House

Payment.

During the year, compensation of 51.0129

Ha. of tenancy land and houses, total

amounting to a total of Rs.13.60 Crores

has been disbursed.

12.7 Mahila Mandal

12.7.1 Mahila Mandal is a social organization ofladies of NCL and actively participates

in the elds of social work. It has been

conducting Adult Education Classes. and

providing books as a measure to provide

basic education to nearby villagers. It has

also shown concern in the area of women

health by conducting anemia detection

camp and has also distributed fruits and

created awareness about the importance

of proper diet among the women residing

in nearby villages.

12.8 Family Welfare

12.8.1 During the year under review 504 (351 TT

& 153 IUCP) operations were conducted

successfully under the family Welfare

Programme of NCL covering entitled and

non-entitled patients of NCL and nearby

areas.

13.0 RAJBHASA IMPLEMENTATION

(OFFICIAL LANGUAGE POLICY)

13.1 As per the Annual Programme 2014-

15 issued by the Government of India,

Ministry of Home Affairs, Rajbhasa Deptt.,

Govt of India, for 100% implementation

of Rajbhasa Rules and Regulation of

Rajbhasa Policy among the Officers/

Workers of NCL, emphasis was given on

sustainable and maximum use of Hindi

by employees in the ofcial work which

resulted in progressive and significant

improvement in Rajbhasa Implementation.



ANNUAL REPORT 2014-15 _________________________________________________________

46

13.2 For carrying out the ofcial work in

Hindi smoothly, during the year 2014-

15, 03 Rajbhasa Workshops were

organized, which resulted in growth

in correspondence. In CETI trainingprogramme was organized in hindi and

the material for training were provided in

Hindi amongst all trainees.

13.3 Against the target of 04 sittings, in NCL

04 sittings of Rajbhasa Implementation

Committee was held, in which review

was done on the quarterly report and its

implementation.

13.4 In high level meetings of the Company

such as meetings of Joint ConsultativeCommittee, Welfare Board and Trade

Unions, the proceedings were held in Hindi

and minutes of the meetings were also

issued in Hindi.

13.5 Emphasis was laid to ensure 100%

implementation of Section 3(3) and

Rule-5 and 11 of Rajbhasa Act, 1963.

Correspondence with different ofces of

Central and State Government was done

in Hindi.

13.6 All 1053 computers in the company wereprovided with the facility through UNI Code

to do the work in Hindi.

13.7 A training programme was organized by

System Department in Head Quarter,

Singrauli on 20.5.2014 for working in Hindi

in Computer in UNICODE in which 24

Ofcers/Workers from Projects/Units were

participated.

13.8 Keeping with tradition, ‘Rajbhasa Pakhwara’

was organised from 15th to 29 September,2014, in which various competitions

were organized in which winners were

awarded in cash and consolation prize

were distributed among all the participants.

18 Employees were rewarded with Cash

prize for their best contribution in the eld

of Hindi.

13.9 During the Pakhwara All India Kavi

Sammelan was orgainsed on 27.9.2014 in

which for advertisement of Rajbhasa Hindi,

motivational poems in Hindi were recited.

13.10 Dudhichua Project and Bina Project

were given 1st and 2nd Rajbhasa Shield

respectively, under the Late Shanker

Dayal Sharma Memorial Prize Scheme

for the best work done in Hindi for the year2012-13 alongwith appreciation letters

on conclusion of Rajbhasa Pakhwara,

September, 2014.

13.11 In the Rajbhasa Sangosti organized

by Bhartiya Rajbhasa Vikas Sansthan,

Dehradun from 29-31 October, 2014 at

Khajuraho (Madhya Pradesh), for best

work performance in Hindi in Company

Ms. Shantilata Sahu, Director (Personnel)

was honoured with “Rajbhasa Shree

Samman’, Shri A. J. Reddy, GM(Pers/Wel)

and Rajbhasa Incharge was honoured

with Rajbhasa Kirti Award, Shri Simson

Vansriyar, Sr. Ofcer (Per/Admn), NSC,

Jayant and Shri Babulal Ram, Sr. Ofcer

(Sectt/Rajbhasa), Bina and Shri Sharad

Chandra Sharma, Ofce Suprintendent,

Amlohri were honoured with Vishesh

Rajbhasa Vishishtata Samman and a

Memento.

13.12 Shri Pradeep Kumar Dubey, Sr.Manager(Personnel), Block’B’ Project

and Shri Manoj Kumar Singh, Sr. Manager

(IE) participated in the 3 days Third Akhil

Bhartiya Rajbhasa Sammelan organied

at Puri (Orrisa) by Viswamukt and KIIT

Univesity, Bhuwaneshwar from 14 – 16

November, 2014.

In the above programme Ms. Shantilata

Sahu, Director(Personnel) was also

present as a special invitee. On theconclusion of the seminar Director

(Pesonnel), NCL and above executives

were honored with Momento.

13.13 The meeting of Town Rajbhasa

Implementation Committee, chaired by

Shri Tapas Kumar Nag, Chairman-cum-

Managing Director, NCL was held on

21.11.2014 and appropriate action on the

minutes of meeting circulated in Hindi was

taken.




47

13.14 Area Implementation Office (Central),

Govt. of India, Ministry of Home, Rajbhasa

Section, Bhopal organized a Joint Area

Rajbhasa Sammelan on 30.1.2015 at

Bhopal, in which Shri A. J. Reddy, GeneralManager (Personnel/Welfare), NCL

participated.

13.15 Town Rajbhasa Implementation Samiti,

Bhilai-Durg organized Central Area

Rajbhasa Sammelan from 27-28 February

at Bhilai (Chattisgarh) in which Shri

Dinesh Tenbhurne, Sr. Ofcer (Rajbhasa)

participated and was declared winner

Rajbhasa question Manch.

13.16 During the year under “Aaj ke Shabd”synonym words of English in Hindi and

“thoughts of the day” were also written

daily on the Board to develop awareness

amongst the executives and workers to

work in Hindi.

14.0 ACTIVITIES OF VIGILANCE DEPARTMENT

14.1 Vigilance Set-up :

14.1.1 The Vigilance s et –up at Northern

Coalelds Limited is headed by a Chief

Vigilance Ofcer, a director level ofcerappointed by the Government of India.

Ten executives belonging to different

disciplines assist the CVO in carrying out

the activities of the Vigilance Department.

Three Senior Personnel Assistants and

two clerks are also posted in the Vigilance

department.

14.1.2 Corruption prone areas have been the

focus of attention. Any preventive or

punitive action in these areas is bound to

have a demonstrative as well as multipliereffect on the entire organization.

14.2 Observance of Vigilance Awareness

Week 2014 :

14.2.1 As per the directives of Central vigilance

Commission vide circular no. 06/09/14

dated 30/09/2014, Vigilance Awareness

week was observed in Northern Coalelds

Limited from 27.10.2014 to 01.11.2014.

Displayed the banners, posters at Prime

locations. Shri K.P. Venkateshwar Rao,

IPS, IG/CVO, NCL has agged off for a

vigilance run at 9.30 AM on 27.10.2014by school children.

Shri T.K. Nag, CMD, NCL has administeredpledge to the executives and staff atSingrauli on 27.10.14 at 11.00 AM.

Shri A.D.Mathur, Director (Tech/Oprn)NCL had read out the message of His

excellency President of India Shri PranavMukharji on the occasion. The message of

Hon’ble Vice President of India Shri Hamid Ansari was read out by Shri A.K.Pandey,

Director(F), NCL. The message ofShri Narendra Modi, Prime Minister of

India had conveyed to the assembled

employees by Shri A.K. Mukherjee,General Manager (E&M)/Vigilance, NCL.Shri K.P. Venkateshwar Rao, IPS, IG/

CVO, NCL had conveyed the messageof the Central Vigilance Commission

to the executives and employees. Ina similar fashion, the observance of

Vigilance Awareness week-2014 wascommenced with the administration of

pledge and reading out of messages at

different projects of NCL. This year the

theme of observing Vigilance AwarenessWeek was “Combating Corruption –Technology as an enabler”.

The Inaugural day function of the Vigilance Awareness Week-2014 was he ld at

Ofcers’ Club Auditorium on 27.10.2014at 3.00 PM.. Shri T.K. Nag, CMD, NCL,

was the Chief Guest of the function. Shri A.D.Mathur, Director (T/O) NCL and Shri

A.K..Pandey, Director (F) were present

on the occasion. The proceedings of the

function was started with a welcome songpresented by the school children.. ShriK.P.Venkateshwar Rao, IPS, IG/CVO,

NCL had welcomed to the guests andexpressed his views on transparency in

public procurement and emphasized tointroduce e-tendering, e-procurement

etc by leveraging technology in NCL.GPS (Global Positioning System)/

RFID (Radio Frequency Identication)system and on line file tracking

s y s t e m we r e ina ugur a t e d by



ANNUAL REPORT 2014-15 _________________________________________________________

48

Shri T.K. Nag, CMD, NCL on the

occasion. Shri A.D.Mathur, Director (T/O)

NCL and Shri A.K.Pandey, Director (F)

had expressed their views on awareness

regarding rules regulations, manuals etcof the company. The Chief guest Shri T.K.

Nag, CMD, NCL had expressed his views

on a sound procurement system essential

for any organization & had emphasized

transparency, accountability and probity

in public procurement.

NCL Vigilance has given “Vigilance

Excellence Award” & “Appreciation

Certicate” to the Executives & employees

for exemplary work who had done excellentwork in the eld of innovative technique to

save the company’s fund. The details are

given below :

(a) Vigilance Excellence Award-2014

1. General Manager( Sales &

marketing) with his team for

exemplary work done by them

in liquidating Coal stock at

Jayant Project.

2. Chief General Manager, Jayant

with his team for exemplary

work done by them in liquidating

Coal stock at Jayant Project.

3. S h r i G . P . S i n g h ,

Sr,Manager(Legal), for Dealing

the matter relating to lease

rent in systematic manner

with legal prociency leading

to substantial reduction inpayment of lease rent to the

authorities.

4. Shri S.K.Mes hram, Chief

Manager(E&T)/HOD with his

team for Implementation of

GPS based vehicle tracking &

RFID weighbridge integration

system in NCL.

(b) Appreciation Certicate

1 Sri M A Siddiqui,

Chief Manager

(MM), NCL

Headquarters

has been appreciated for his individual

innovation while nalizing procurement

in cases of proprietary purchase

resulting into substantial savings to

NCL.

2 Sri Jaibir Singh,

Sr.EP Electrician

Amlori Project

has been appreciated for his exemplary

work done in Departmental repairing of

Electrical Shovels at Amlohri Project

resulting in substantial savings in terms

of money as well as time for NCL.

3 Sri S N S Yadav,

Senior Manager

(Excavation)

Jhingurda project

has been appreciated for exemplary

work done in repairing of Transmission

of a Wheel Dozer by using parts from

old and failed Transmission at Jhingurda

project resulting in substantial savings

for NCL.

4 Sri A N Tripati,

Senior Mechanic

Jhingurda project



of a Wheel Dozer by using parts fromold and failed Transmission at Jhingurda

Project resulting in substantial savings

for NCL.

5 Sri Brajesh

Sardar, Fitter,

Jhingurda project






for NCL.

6 Sri Umesh Yadav,

Fitter, Jhingurda

project





project resulting in substantial savingsfor NCL.

7 Sri S K Mallick,

Chief Manager

(Excavation)

Jhingurda project


work done in converting the surveyed

off 85 T Dumpers into Water Sprinkler

with water pressure unit to utilize the

same as a Fire tender also using

departmental resources at Jhingurdha


for NCL.

8 Sri Dadulal

Singh, Foreman

in-charge

Jhingurda project

has been appreciated for done in

converting the surveyed off 85 T

Dumpers into Water Sprinkler with

water pressure unit to utilize the same

as a Fire tender also using departmentalresources at Jhingurdha Project

resulting in substantial savings for NCL.

9 Sri Surendra

Singh, Sr.

Mechanic

Jhingurda project




with waterpressure unit to utilize the


departmental resources at Jhingurdha


for NCL.

10 Sri S K Singh,

Sr. Electrican

Jhingurda project




with water




49

11 Sri Dinesh

Baiswar, Fitter

Jhingurda project






departmental resources at JhingurdhaProject resulting in substantial savings

for NCL.

12 Sri Suresh Ekka,

Fitter Jhingurda

project




with

water pressure unit to utilize the same

as a Fire tender also using departmental

resources at Jhingurdha Project

resulting in substantial savings for NCL.

13 Sri R P Patel,

Welder Jhingurda

project





same as a Fire tender also usingdepartmentalresources at Jhingurdha


for NCL.

14 Sri A K Mishra,

EPH Jhingurda

project






departmentalresources at Jhingurdha

Project. resulting in substantial savings

for NCL.

15 Sri R K Singh, Sr.

Manager(Civil),

NCL

Headquarters.


work done by him in using Information

Technology and innovative ideas to

increase number of tender nalizationand award of work at Civil Department,

NCL Headquarters.

16 Ms. Shewata

Bansal, Assistant

Manager

(Civil), NCL

Headquarters.


work done by her in using Information

Technology and innovative ideas to

increase number of tender nalization

and award of work at Civil Department,

NCL Headquarters.

(c) Special Achievement Award

1. Shri Inderjeet

Singh, S/o.

Late Gurudayal

Singh Saini,Dragline Op-

erator, Jayant

Project

has been awarded for winning

Bronze Medal in Shot Put at Asian

Games-2014 at Incheon, South Korea.

2. Smt. Indu Bala,

Ofce Super -

intendent, NCL

Headquarters

has been awarded for winning Gold

Medal in Hammer Throw & Discus

Throw at 18th Masters Asia Athletics

Championship, Japan 2014.

An exhibition of the drawing and paintings

made by the school children on the issues

related to honesty, corruption etc. was

held at the same venue. The topic is

“A vision of Corruption free India” The

creative outpouring of the children on

canvas struck an instantaneous chord

with the Chief Guest, executives, staff

and others. An essay competition on the

topic “Moral and Ethics in one’s life –for eradication of corruption,” for the

students of Class 8 to 12 were organized. A

dance/drama/skit competition of maximum

15 minutes duration were also organized

for the student of Class VII to XII on

the topic of “Delete Corruption- Build

Nation”

On the occasion, a lecture on the topic

of “Criminal misconduct and abuse of

ofcial capacity” was delivered by Shri

A.K.Banarjee, Rtd.S.P., CBI, Kolkata. In

this program, 286 ofcers and staff were

participated.

Vote of thanks was given by Shri

A.K.Mukharji, GM(E&M)/Vig. to all guests.

On 28/10/2014 at CMD’s Conference

Hall, Singrauli a Vendors’ Meeting wasorganized in which Shri K.P.Venkateshwar

Rao, IPS, IG/CVO, NCL, Shri T.K. Nag,CMD, NCL, Shri A.D.Mathur, Director

(T/O) NCL, Shri A.K. Pandey, Director(Finance), NCL had delivered their lectures

on e-procurement and e-tendering in whichmore than 25 vendors had attended and

expressed their practical problems whichwere assured to sort out shortly.

In the same line vendors’ meet was

organized at Jayant Project for vendors ofJayant, Kakri, Bina, Krishnasila, Khadia,

CWS & IWSS,Khadia at 10 AM to 12 AMon 28.20.14.

Vendors’ meet was also organized atNigahi Project on 29.10.14 for the vendors

of Nigahi, Amlohri, Dudhichua, Block B,Jhingurda & NSC, Jayant.

On 28.10.2014, training programs were

organized at CETI, in rst half two lectures

on the topic of E-procurement of Services by Shri R.K.Singh, Sr. Manager (Civil) &

on another topic of Legal issues involved

in Environmental and Forestry by

Shri G.P.Singh were organized. On same



ANNUAL REPORT 2014-15 _________________________________________________________

50

day in the second half two lectures were

also organized, the Dir(D/O) had delivereda lecture on System improvements done

in repair and maintenance contracts

and its synchronization with IBS andthe Dir(F), had delivered a lecture onTaxation issues in NCL and recent

developments w.r.t. Tax department in these programs 70 executives were

participated.

On 29.10.2014, training programs

were organized at CETI, in first halftwo lectures on the topic of Standing

Orders/Disciplinary Proceedings byShri S.Kadamber, Sr. Manager(Pers)

& on another topic of GPS/RFID wereorganized. On same day in the second half

one lecture on the topic of New changesin procurement policy of CIL by Shri

I.B.Karna, Chief Manager(MM) were alsoorganized.

In the forenoon of 30.10.2014 Skit/Drama

competition by school children (Approx.150 children) reflecting the combating

corruption was organized at ofcers’ club,Singrauli, in which 1st,2nd& 3rd were

selected.

In the forenoon of 30.10.2014, the Chief

Vigilance Ofcer, NCL, K.P.VenkateshwarRao, IPS had delivered a lecture on

the topic of Common irregularities incontracts/public procurement and

guidelines for improvement, he had toldregarding IT initiatives taken by Vigilance

Department, a lecture on Integrity Pactby Independent External Monitor was

delivered by Shri J.K. Khanna, IPS (Rtd)and Shri Sewa Ram IAS, (Rtd) and in

the afternoon of 30.10.14 a lecture wasorganized at CETI, Singrauli in which

Shri M.V. Surti, S.P., CBI/ACI, Jabalpurhad delivered a lecture on “Prevention

of Corruption Act” and Shri D. KalyanChakravarti had also delivered a lecture

on “Security Scenario/Unauthorizedoccupation in Singrauli Area”.

On 31.10.2014, an interactive session with

professors of Administrative Staff College

of India, Hyderabad was organized on the

topic of “New Company’s Act”, in which

50 ofcers were participated.

Training programs were also organizedin all 10 Projects of NCL on the topic

“Common irregularities & compliance

of Departmental Enquiries” in which

about 80 to 90 executives and non-

executives were participated.

On 01.11.14 Concluding Day ceremony

was organized at Ofcers’ Club, Singrauli

in which Shri K.P.Venkateshwar Rao,

IPS, IG/CVO, NCL,Shri N.Das, Director

(T/P&P) NCL, Shri A.D.Mathur, Director

(T/O) NCL and Shri A.K.Pandey, Director(F) were present. Shri Raghuvansi, District

Judge graced the occasion as Chief Guest

of the concluding day ceremony. The

proceedings of the function was started

with a welcome song presented by the

school children. In their address on the

occasion, Chief Vigilance Ofcer, CMD,

Dir. (T/P&P), Dir (T/O) Dir. (Fin) and, NCL

and Chief Guest were expressed their

views. The Vigilance magazine 2014

“BAAZ” was released by the Chief Guest,Directors and CVO of NCL. The prize

winners from the School Children were

felicitated. At the end, colourful Cultural

programs were also organized by School

children and artists of NCL employees.

The General Manager (E&M) Vig. Shri

A.K.Mukhrjee had delivered vote of thanks.

In the same line all projects of NCL such as,

Block B, Jhingurda, Kakri, Bina, Khadia,

Krishnashila Iwss Khadia, Dudhichua,

Jayant, CWS Jayant, Amlohri, Nigahi &NSC Jayant.

The various activities carried out by NCL

during the Vigilance Awareness Week

were widely covered by the Press.

14.3 Preventive Vigilance :

14.3.1 Systems Improvement undertaken :

1. ANNUAL PROPERTY RETURN,ONLINE VIGILANCE COMPLAINT

AND ONLINE RECRUITMENT has




51

been uploaded on NCL’s website.Further, APRs are being led on lineon CIL’s web site.

2. On recommendation of VigilanceDepartment System ImprovementOrders by CMD/NCL has beenissued vide Ofce Order No. NCL/CMD/ Vig/2014/2172 dt. 25/26.02.14regarding procurement of re safetyitems.

3. Again on recomme ndation ofVigi lance Department Systemimprovement Orders by CMD/NCLhave been issued vide Ofce OrderNo. NCL/CMD/ Vig/2014/2173dt.

25/26/02.14regarding procurement ofre safety items.

4. System improvement order issued videno. NCL/VIG/14/494 dt. 01.07.2014regarding internal coal transportationat Khadia Project for monitoring thereporting system of contractual tippersengaged in coal transportation.

5. System improvement circular has beenissued vide No.NCL/Vig/Systemicimprovement/15/2014/1460 dated

23.12.14 regarding submission of billsrelated to ofcial tour.

6. GPS/RFID based vehicle trackingsystem for coal transportation.

Electronic surveillance by CCTV, GPSbased Vehicle Tracking system, RFIDbased boom barriers, an integratedsystem for collecting the data in realtime basis - 1005 numbers of tippers/trucks has to be installed RFID tag.

All the projects of NCL are havingelectronic weigh bridges.

Tender for GPS based vehicle trackingsystem for coal transportation alongwith RFID system, boom barrier,camera for snapshot and integrationwith existing weighbridge system onturnkey basis. The work order issuedon 16th January 2014.

GPS devices installed in 75 vehiclesas provided by the Block B project for

testing and optimization of the system.

A Central Server has been installed atNCL headquarters with 2MBPS line. Awork station at Weigh Bridge at projectwith RFID Reader, boom barrier and

camera for snapshot with internetconnection. Area control room hasbeen established at Block B projectwith broadband internet connectionfor linking the weigh bridge data andthe central server at Headquarters.Commissioning of the trial startedfrom 01.10.2014. Trial run has beencompleted successfully in Block-BProject and completion certicate wasissued on 13/02/2015.

Expected date of full implementationis, after the trial run of 03 monthsi.e, end of June 2015.

After implementation of this project,theft, pilferation of coal, POL, scrap,etc and unauthorized entry of trucksor vehicles is expected to stop.

7. CoalNet Implementation status :

In 1st phase payroll, Finance and PISwill be implemented and award ofwork is expected by April 2015, as thisrequires customization for NCL and itsimplementation at NCL headquartersis expected by end of December 2015.

In 2nd phase extension of facilities fordata entry and report generation, etcfor Finance, Payroll and PIS Moduleto all the projects. Implementationof MM, maintenance, Sales andproduction modules of CoalNet atMain data Centre (at NCL Hq) andprovide all facilities at project/units and

Near Data Centre at Nigahi project isexpected by end of December 2015.

NIT for selection of Service Providerfor Implementation, customization,maintenance and support aftersuccessful implementation of CoalNetproject for 5 years was floated in August 2014. Single offer of M/sCMC has been received against theopen tender, which was opened on1st November 2014. Part II has been

opened on 14.01.2015 and price



ANNUAL REPORT 2014-15 _________________________________________________________

52

justication is in process. Award ofwork of both the phases is expectedsoon.

8. Implementation of OITDS at Amlohri,Nigahi, Khadia and Dudhichuaincluding AMC of 5 years. On theinitiative taken up by Vigilancedepartment, OITDS implementationin 04 projects of NCL was speededup and is expected to be operationalfrom March 2015.

9. E-tendering All the projects ofNCL have started tendering throughe-procurement of goods valuingmore than Rs.2 lakhs, from June

2014. Tendering for works/servicesfor contracts worth Rs 2 lakhs ormore (Civil/E&M/Mining/CMC) havebeen started through E-procurementportal from 1st Feb 2015. A total of1267 tenders have been publishedon E-procurement portal amounting toRs.4697 crs of estimated value. Totalof 337 contracts have been awardedamounting to Rs.280 crs on the portal

till date.

10. Coal Stock Liquidation throughE-auction :

The coal stock position as on01.04.2014 was 6.102 million tonnes.The problems faced by NCL dueto coal stock lying in coal yards ofvarious projects was of degradation ofcoal quality due to long storage period,damage due to frequent res due tospontaneous combustion, pilferation/thefts and weathering. By the initiativetaken by Vigilance department and theSales and Marketing department after

constant liasioning with consumers,railway authorities and project ofcials

brought the coal stock from a levelof 6.1 million tons to 1.3 million tons,

thereby liquidating the stock to thetune of 4.8 million tons.

11. Online File Tracking system

Online le tracking package has beendeveloped in house by NCL and works

in the LAN of NCL. The online le

tracking system is in use since 2013in NCL headquarter. Projects havestarted to use the online le trackingsystem from November 2014.

12. Online Bill Tracking system

Online bill tracking package hasbeen developed in house by NCLand works in the LAN of NCL. Theonline bill tracking system has beenimplemented in NCL headquarter from10.01.2015.

14.3.2 Extent of IT usage and e-governance :

1. V i d e n o t i c e n o . N C L / S G R /

sales/08/2334 dt.06.03.09 the extantprocedure regarding refunds through

RTGS/CBS to linked consumers/e-

auction buyers was circulated. Despite

being located in remote area, NCL has

introduced e-payment in a big way.

2. NCL website has been linked to CVC

website for ensuring easy access to

CVC instructions relating to different

matters.

3. A link called CVO’s corner has been

introduced in NCL website.

4. E-publication of “BAAZ”, a compendium

on Vigilance matter has been done,

wherein guidelines issued in the year

was in addition to CVC guidelines and

case study based on major Vigilance

cases.

14.3.3. Vigilance Department of NCL scrutinized350 Annual Property Return up to March

2015.

14.3.4. Agreed List & ODI List : Agreed list and

ODI list have been prepared.

14.3.5. Rotation of executives from sensitive

posts : Ofcers working on the sensitive

posts are being transferred regularly.

Details for the period from 01.04.14 to

31.03.15 are us under:




53

No. of executives transferred from sensitive

posts: 84

14.3.6. Training Courses conducted in vigilance

awareness :

(a) Training Courses conducted in

vigilance awareness:

1. Det a i l s o f the t ra in in g

programme held on Vigilance

Awareness & other Vigilance

related subjects.

SI.No

Name of Programme DateNo of

participants

01. Management Developmentprogramme

21.04.14 24


26.04.14 24

03. Vigilance Awarenessprogramme

28.04.14 28


28.04.14 26

05. An interactive session relatedto EMD/SD and other matersby top management of NCLwith Executives of NCL.

03.05.15 100


31.05.14 26

07. Vigilance Awareness

programme

30.06.14 25

08. Vigilance Awarenessprogramme

30.07.14 49

09. Lecture on Criminalmisconduct and abuse ofofcial capacity

27.10.14 250

10. Vigilance awarenessprogramme: Topicsa) E- procurement of

services,b) Legal issued involved in

Environment & Forestry,c) System improvements

done in repair andmaintenance contractsand its synchronization

with IBS.

28.10.15 67

11. Vigilance Awarenessprogramme: Topicsa) Standing orders &

Disciplinary proceedings,b) GPS & RFID

29.10.15 65

12. Vigilance AwarenessProgramme: Topics,a) Common irregularities in

contracts/publicprocurement andguidelines forimprovement

b) Integrity Pact.c) Prevention of Corruption

Act

30.10.15 74

13. Vigilance Awarenessprogramme: Topicsa) New Company Act by

ASCI, Hyderabad

31.10.15 50

14. Vigilance Awarenessprogramme: TopicsCommon irregularities &Compliance of departmentalEnquiries- its pros & cons,Block B,

27.10.15 45

15. Vigilance Awarenessprogramme: TopicsCommon irregularities &Compliance of departmentalEnquiries- its pros & cons,Jhingurda

27.10.15 55

16. Vigilance Awarenessprogramme: TopicsCommon irregularities &Compliance of departmental

Enquiries- its pros & cons, Amlohri

28.10.15 65

17. Vigilance Awarenessprogramme: TopicsCommon irregularities &Compliance of departmentalEnquiries- its pros & cons,Nigahi

28.10.15 76

18. Vigilance Awarenessprogramme: TopicsCommon irregularities &Compliance of departmentalEnquiries- its pros & cons,Jayant

29.10.15 95

19. Vigilance Awarenessprogramme: TopicsCommon irregularities &Compliance of departmentalEnquiries- its pros & cons,Dudhichua

29.10.15 83

20. Vigilance Awarenessprogramme: TopicsCommon irregularities &Compliance of departmentalEnquiries- its pros & cons,Kakri

30.10.15 66

21. Vigilance Awarenessprogramme: TopicsCommon irregularities &Compliance of departmentalEnquiries- its pros & cons,Bina

30.10.15 71


programme: Topics

Common irregularities &

Compliance of departmental

Enquiries- its pros & cons,

Krishnashila

31.10.15 48


programme: Topics

Common irregularities &

Compliance of departmental

Enquiries- its pros & cons,

Khadia

31.10.15 74

Total -- 1486



ANNUAL REPORT 2014-15 _________________________________________________________

54

Besides regular and normal Vigilance

activities, NCL vigilance is actively working

in areas like training for development

and creating awareness amongst all

Executives of NCL, which has beenadopted by Coal India for all its Executives.

CIL has approved General Management

Programme for E-6 and E-7 at ASCI,

Hyderabad and for below E-5 level

executives at IIM, Lucknow after the

initiative taken by NCL Vigilance.

For creating vigilance awareness in

executives of NCL a training programme

has been initiated comprising of two

modules (engineers & non-engineers) toimpart training to 450 nos of executives.

Under this programme in the month of

February 2015, three days Sensitization

Refresher Course to enhance Vigilance

Awareness for Engineers in Finance

and Non engineers in Mining Operation

was organized at Jayant Project from

16.02.2015 to 18.02.2015, in which 30

executives from engineering discipline 19executives from non-engineering discipline

were participated.

In the month of March 2015, the training

programme was conducted in three

batches, on 11.03.15 to 13.03.15 course for

Non-engineers was organized, on 16.03.15

to 18. 03.15 course for Non-engineers &

Engineers was organized in which 78

engineers & non-engineers executives

participated and on 19.03.15 to 21.03.15

course for engineers was organized in

which 20 executives participated.

14.4 Surveillance and Detection :

14.4.1. No. of cases registered for investigation

during the period of report

Opening balance of cases : 09

No. of cases added during the period for investigation : 08

Disposed during the period : 14

14.4.2. No. of cases under departmental inquiry

during the period of report

No. of case under Departmental Inquiry : 09

Disposed during the period : 04

14.4.3. Inspections: A total no. of 53 surprise

inspection/regular inspections were made

during the period in question.

14.5. Punitive Vigilance :

Chargesheet’s

issuedPenalty imposed

Minor

Penalty

Procee-

dings

(underRule 31)

Major

Penalty

Procee-

dings

(underRule 29)

Dismissal/

Removal

Reduction

to lower

rank

Reduction

to lower

stage in pay

Postponement/

withholding of

increment

Withholding

of

promotion

Censu re O thers

(caution,

Warning

etc.)

No

Action

(exoneration)

27 11 Nil Nil 02 Nil Nil 09 12 Nil

14.5.1 No. of ofcials suspended : One

15.0 COMPUTERIZATION

15.1 Existing Applications / Systems:

Ø Oracle based Centralized Payroll

System for entire NCL

Ø Oracle based Online Cash bookpackage at HQ and Block – B projects

Ø Foxpro based Data entry and cash

accounting package at all other

projects

Ø Consolidation of Cash accounting at

HQ

Ø COBOL based Personnel Information

System for Executives and Non-

Executives for entire NCL

Ø Surpac Software for Mine Planning

and Surveying.

Ø Integrated Business Solution (IBS),

an ERP package, consisting of

Materials Management, Maintenance

Management, Production Sales and

MIS Modules

Ø Operator Independent Truck Despatch

System (OITDS) is functional at

Jayant Project.




55

Ø Opera to r Independent Truck

Despatch System (OITDS) is

functional at Amlohri and Khadia

Projects. Implementation of OITDS at

Dudhichua and Nihgahi Projects arein nal stage of completion.

Ø B iometr i c Based At tendance

Recording System at NCL HQ

Ø Online Vigilance Complaint System,

Online Recruitment System through

CMPDIL

Ø e_Procurement for Goods, Works and

Services through NIC

Ø Oracle based Computer ConsumablesInformation System

Ø File Tracking and Bill Tracking System

15.2 Infrastructure:

Ø RISC Server (1 no) for Payroll &

Personnel Information System

Ø Xeon Servers (14 nos) for Integrated

Business Solution (IBS)

Ø Sun Storage VTL for Backup System

Ø PCs: In total 1053 PCs are distributed

to different users across NCL. Out of

these 465 no. PCs are to be replaced

very shortly.

Ø F.O. based Local Area Network

(LAN) is functional at NCL Hq and all

projects. All the LANs of project are

connected with LAN at HQ through

F.O. cable.

15.3 Maintain 10 Mbps lease line Internet

through NIC, Bhopal

15.4 NCL Website updation including re-

structuring of NCL Website

15.5 Future Program

15.5.1 Implementation of Coalnet coveringFinance Module, Materials Module,Maintenance Module, Sales Module,

Production Module, Personnel Information

System & Payroll.

15.5.2 Procurement of Hardware for Coalnet(Servers, Switches, etc.) and Oracle

Software15.5.3 Setting up of Main Data Centre at HQ and

Near Data Centre at Nigahi

15.5.4 Upgr adat ion of HQ LAN with MailMessaging, Proxy and Web Servers

15.5.5 Procurement of PC, Printers, etc.: SupplyOrder has been placed on 2.4.2015

15.5.6 Implementation of Hospital ManagementInformation System.

15.5.7 Implementation of Document Digitization& Document Management System.

15.5.8 Replacement of Operator IndependentTruck Dispatch System (OITDS) at JayantProject.

15.5.9 Computerization of Asset register.

16.0 COMMUNICATION FACILITIES:

16.1 Efcient telecommunication network hasbeen developed in the projects and NCLHQ to provide the communication facilities

right from the corporate ofce to the Pitofce.

16.2 Wide Area Network (WAN) through OFChas been established from NCL HQ toprojects and within the projects to providevoice and high speed data communicationfacility for IBS.

16.3 10 Mbps high speed internet connectivityhas been established at NCL HQ forInternet and e-mail facility.

16.4 New IP based telephone exchanges havebeen installed in all projects/units of NCL.Facility for close user group numberingscheme has been established for voicecommunication between subscribers ofHQ/projects/units. This has improvedtelecommunication between HQ andprojects/units.

16.5 Mobile communication facility of BSNLunder Closed User Group (CUG) schemehas been provided to all the executive and

emergency / essential staff of NCL.



ANNUAL REPORT 2014-15 _________________________________________________________

56

16.6 New System during 2014-15:

16.6.1. GPS based vehicle tracking system hasbeen installed in 75 Nos. of trucks andintegration of one weighbridge for RFIDtag, Boom Barrier and Camera for snapshot of vehicle number plate. This systemhas been implemented in Block’B’ projectof NCL.

16.6.2 The prop osal for inst allin g CCTVSurveillance system at vital locations ofmines of different projects/ units of NCL.The supply order has been placed on M/sHoneywell automation Ltd., Kolkata.

16.7 Improvements during 2015-16:

16.7.1 Implementation of GPS based vehicletracking system and integration ofweighbridge for RFID tag, Boom barrierand Camera for snap shot of vehiclenumber plate in remaining 9 (nine) projectsof NCL.

16.7.2 CCTV Surveil lance system is to beinstalled at all road weighbridges anddifferent vital locations (Ministry, Store,Workshop, Sub-Station, CHP, Time ofce,Dumper/Dozer parking yard, Diesel llingstation etc.) in the mines of NCL with 550nos. of cameras.

16.7.3 Radio network connecting HQ Singraulito Projects/ Units for voice and datacommunication shall be established.

16.7.4 380 Nos. of wireless equipment have beenadded to improve wireless communicationnetwork in mines.

16.7.5 Frequency allocation has been made byWPC (Wireless Planning Coordination)wing, Govt. of India for OITDS system.

17.0 CORPORATE SOCIAL RESPONSIBILITY

17.1 Annual Report on CSR Activities requiredunder Section 134(3) of the Companies Act2013 read with Rule 8(1) of Companies(CSR Policy) Rules 2014 is enclosed asAnnexure-I.

18.0 SUSTAINABLE DEVELOPMENT / MOUACTIVITY OF NCL DURING 2014-15

18.1 Sustainable development and CSRCommittee of NCL has been re-constituted

by NCL Board comprising of two part time

non-ofcial Directors and two FunctionalDirectors.

18.2 A three year project for Eco-Restorationwork and Bio Diversity Development in10 hectares of degraded land ( 5 hectareseach at Krishnashila and Nigahi Projectsof NCL) has been awarded to ForestResearch Institute, Dehradun. The totalproject cost is Rs.40 lakhs and Rs.20Lakhs has already been paid as firstinstalment. Work is in progress.

18.3 (a) Unde r Rain Water harv est ing,deepening and cleaning of 2 nos ofwater harvesting pound at Dheki &Pauri Nagai villages have been done

by Jayant Project and deepening ofexisting pond at village Gharsari byBina Project.

(b) 2 Rainwater harvesting facility havebeen developed by Nigahi OCP nearDPS School and Dispensary.

18.4 The proposal for Carbon Foot Printassessment in NCL is under process andthe work is expected to be carried duringthe year 2015-16.

18.5 (a) The procurement of mist spray dust

control system is in the procurementprocess. The mist spray system withdust suppression through mounting ona mobile vehicle is a new technologyto be used for the rst time in CIL.

(b) Air pollution emission from heavyvehicles is monitored. The work at Amlohri and Bina Project has beencompleted. In other projects it is underprocess.

19.0 STATUTORY INFORMATION

19.1 Informat ion in regard to EnergyConservation, Technology Absorption

and Foreign Exchange Earning & Outgo

19.1.1 Info rmat ion i n accordance w ith the

provisions of Section 134 (3) of the

Companies Act. 2013 read with Rule

(8) of the Companies (Accounts)Rules,

2014 regarding Conservation of Energy,

Technology Absorption and Foreign

Exchange Earnings & Outgo is given in

Annexure-II to this report.




57

19.2 PARTICULARS OF EMPLOYEES

19.2.1 There was no employee of the Company

who received remuneration in excess

of the limit prescribed under Section134 of the Companies Act, 2013 read

with Rule 5(2) and (3) of the Companies

(Appointment and Remuneration of

Managerial Personnel) Rules, 2014.

20.0 AUDITORS’ REPORT

20.1 Replies of the Management on the

observations made in the report of the

Statutory Auditors and comments of the

Comptroller and Auditor General of India

(CAG), as required under section 134 of

the Companies Act, 2013 are given in the

Addendum forming part of this Report.

20.2 The Secretarial Auditor did not make any

comments/observation in his Report. The

Secretarial Audit Report in the prescribed

Form No.MR-3 is enclosed as Annexure-

III.

20.3 The Cost Auditor Report for the year 2013-

14 has been led under XBRL mode withindue date of ling. The Cost Audit Report

for the year 2014-15 is in process of

nalization and will be led as per schedule

date of ling.

21.0 AUDITORS

21.1 The Statuto ry and Branch Auditors

appointed by the Comptroller and Auditor

General (CAG) of India for the year 2014-

15 vide letter No.CA.V/COY/CENTRALGOVT. NCFL (3)/328 dated 1.8.2014

under section 139 of the Companies Act,

2013 along with remuneration as xed by

the Board in exercise of powers conferred

by the Company in 17th Annual General

Meeting held on 23rd September, 2002,

pursuant to provisions of section 224(8) of

the Companies Act, 1956 (same provision

retained in Section 142 of the New

Companies Act, 2013) is given hereunder:

Name

of the

Audit

Firm

Sta-

tus

Audit Fee

Recom-

mended

TA & Out

of pocket

expenses

Reim-

burse-

ment of

Service

Tax

M/s.Prakash &

Santosh,

Chartered

Account-

ants,

Kanpur

(U.P.).

Main Auditor

Rs.4,92,188.00 At actual subjectto the limit of

Rs.1,57,500.00

At actual.

M/s.

B.C.P.

Jain &

Co., Char-

tered Ac-

countants,

Bhopal

(M.P.).

Branch

Auditor

Rs.1,80,469.00 At actual subject

to the limit of

Rs.57,750.00

-do-

M/s.

S.K.Lulla

& Co.,

Chartered

Account-

ants,

Gwalior

(M.P.).

Branch

Auditor

Rs.1,80,469.00 At actual subject

to the limit of

Rs.57,750.00

-do-

21.2 Shri Krupesh Mankodi, Practising Company

Secretary, Jabalpur was appointed as

Secretarial Auditor by NCL Board in its

192nd Meeting held on 14.2.2015 vide

Item No.192/C-8 in terms of Section 204of the Companies Act, 2013 to conduct

Secretarial Audit of NCL for the Financial

Year 2014-15 at a total remuneration of

Rs. 50,000.00 only plus to and fro Second

AC train fare plus local conveyance and

actual lodging and boarding expenses.

21.3 Pursuant to the direction of the Central

Government for audit of Cost Accounts,

the proposal for appointment of 3 Firms

of Cost Accountants as Cost Auditors forauditing the cost accounts of your company

for the year ended 31st March, 2015 was

approved by the Central Government and

they have accordingly been appointed.

The particulars of Cost Auditors as required

under Section 233(B) of the Companies

Act 1956 read with General Circular

No.15/2011 dated 11.4.2011 issued by

the Ministry of Corporate Affairs are given

below for the year 2014-15 :



ANNUAL REPORT 2014-15 _________________________________________________________

58

SL.

No.

Name of the Cost Audit Firm

1 M/s K.B. Saxena & Associates, (RN 000313) 208-209

Ansal City Center, Hazratganj, Lucknow, UP-226 001

2 M/s S.G. & Associates, (RN 000138), 8A, Shanti GhoshStreet, Kolkata 700 003

3 M/s B.Mondal & Associates, (RN 11681) 61/H/15 Raja

Naba Krishna Street, Kolkata- 700 005

22.0 CORPORATE GOVERNANCE

22.1 Board of Directors

(i) Shri T.K.Nag, assumed the charge of

Chairman-cum-Managing Director,

NCL from 30.09.2014.

(ii) Ms. Shantilata Sahu, Director(Personnel), NCL held additional

Charge of Chairman-cum-Managing

Director, NCL from 20.09.2013 to

29.09.2014.

(iii) Ms. Shantilata Sahu continued to be

Director (Personnel) during the year.

(iv) Shri Niranjan Das ceased to be

Director (Technical), NCL w.e.f.

2.10.2013 in terms of MOC’s letter

No.21/3/2007-ASO dated 3.11.2014and order No.CIL/C-5/A(ii)/N.Das/

DTNCL/B-380 dated 4.11.2014 issued

by GM(P), CIL, Kolkata.

(v) Shri A.D. Mathur, Director (Technical/

Operations) retired on attaining the

age of superannuation on 31.1.2015.

(vi) Shri Gunadhar Pandey assumed

charge as Director (Technical), NCL

w.e.f. 1.2.2015.

(vii) Shri B.K.Saxena, Director (Marketing),

CIL continued to be Part Time Ofcial

Director, NCL Board during the year.

(viii) Shri Surinder Jit Sibal and Shri

A.K.Gupta, continued to be Part-time

Non Ofcial Directors , NCL Board

during the year.

(ix) Shri Deepak Nath, continued to be

Permanent Invitees, NCL Board,

during the year.

(x) Shri N.N. Misra, Director (Operations),

NTPC ceased to be Permanent

Invitee, NCL Board on 31.10.2014.(xi) Shri C.P. Rai, Additional Principal Chief

Conservator of Forest (LM), Govt.

of MP, continued to be Permanent

Invitees, NCL Board, during the year.

(xii) Shri A.K. Pandey continued to be

Director (Finance) during the year

2014-15. He ceased to be Director on

31.03.2015.

(xiii) Shri P.S.R.K. Sastry assumed charge

as Director (Finance), NCL w.e.f.1.4.2015.

(xiv) Shri Vivek Bharadwaj, Joint Secretary,

Ministry of Coal, New Delhi continued

to be Part-Time Official Director,

NCL Board during the year 2014-15.

He ceased to be Part Time Ofcial

Director on 20.04.2015.

(xv) Shri Rajesh Kumar Sinha, Joint

Secretary, Ministry of Coal, New Delhi

was appointed as Part-time OfcialDirector, NCL Board w.e.f. 20.4.2015

vice Shri Vivek Bharadwaj.

22.1.1 Appointment of Chief Financial Ofcer

(i) Shri A.K. Pandey, Director (Finance),

NCL was appointed as Chief Financial

Ofcer (CFO) vide item no. 191/C-

10 in 191st Board Meeting held on

31/01/2015 at New Delhi. He ceased

to be CFO on 31/03/2015 on attaining

the age of superannuation.(ii) Shri P.S.R.K. Sastry, Director (Fin.),

NCL has been appointed as CFO

w.e.f. 01/04/2015 vide item no. 194/E-

4 in 194th Board Meeting held on

20/04/2015 at Singrauli.

22.2 Board Meetings

22.2.1 During the year 9 (Nine) Meetings of the

Board of Directors of NCL were held.

22.2.2 Attendance of Directors and Permanent

Invitees in Board Meetings:




59

22.2.3 Attendance of Directors in Annual

General Meeting.

In the 29th Annual General Meeting ofMembers of NCL held on 17th June,

2014, Chairman-cum-Managing Director/

Director (Personnel), Director (Technical/

Operations) and Director (Finance), were

present.

22.3 Audit Committee

22.3.1 In pursuance of the guidelines of Corporate

Governance for Central Public Sector

Enterprises received from Department

of Public Enterprises issued vide ofce

Memorandum No. 18(8)/2005-GM dated

14th May’2010, Board of Directors of NCL

in its 191st Meeting held on 31st January,

2015 vide item No. 191/C-5 reconstituted

the Audit Committee as under :

(1) Shri A.K.Gupta, Part Time Non-Ofcial Director, NCL - Chairman

(2) Sri S.J.Sibal, Part Time Non-Ofcial Director, NCL - Member

(3) Shri Vivek Bhardwaj, Part Time Ofcial Director, NCL - Member

(4) Shri B.K.Saxena, Functional Director of CIL/Director, NCL - Member

22.3.2 Besides, Director (Personnel), Director

(Technical) and Director (Finance), NCL

attend and participate in the meetings of

the Audit Committee as invitees.

BOARD MEETING NO. AND DATE

Name of Directors185

24.5.14

186

22.7.14

187

7.8.14

188

12..9.14

189

30.10.14

190

19.12.14

191

31.01.15

192

14.2.15

193

25.2.15

Shri T.K.Nag, CMD Appointed w.e.f. 30.9.2014 P P P P P

Ms. Shantilata Sahu, D(P), (Addl.

Charge of CMD, NCL upto 29.9.2014)P P P P P P P P P

Shri N. Das, D(T/P&P) P P P P P Ceased to be Director

Shri A.D. Mathur, D(T/O) P P P P P P PCeased to be Director

on 31/01/2015

Shri A.K.Pandey, D(F) P P P P P P P P NP

Shri Gunadhar Pandey, D(T/O) Assumed charge w.e.f. 01.02.2015 P P

PART TIME OFFICIAL DIRECTORS

Shri Vivek Bharadwaj NP P P P P P P NP NP

Shri B.K.Saxena NP P P NP P P NP P P

PART TIME NON OFFICIAL DIRECTORS / INDEPENDENT DIRECTORS

Shri Surinder Jit Sibal P P P P NP P P P P

Shri A.K.Gupta P P P P P P P P P

PERMANENT INVITEES

Shri N.N.Misra NP P NP P NP NP

Ceased to be permanent invitee

on 31.10.14

Shri Deepak Nath NP P P P P NP NP NP NP

Shri C.P.Rai NP NP NP NP NP NP NP NP NP

P = Present, NP = Not Present



ANNUAL REPORT 2014-15 _________________________________________________________

60

22.4 Role of Audit Committee :

The role of the Audit Committee shall

include the following:

(a) Oversight of the Company’s nancial

reporting process and the disclosure

of its nancial information to ensure

that the nancial statement is correct,

sufcient and credible.

(b) Recommending to the Board the

xation of Audit fees.

(c) Approval of payment to statutory

auditors for any other services

rendered by the statutory auditors.

(d) Reviewing the management, the

annual nancial statements before

submission to the Board for approval,

with particular reference to:

(i) Matters required to be included

in the Directors’ Responsibility

statement to be included in

the Board’s report in terms of

clause (2AA) of section 217

of the Companies Act’1956

or Section 134(3)(c) of the

C o m p a n i e s A c t m 2 0 1 3

(whichever applicable).

(ii) Changes, if any, in accounting

policies and practices and

reasons for the same;

(iii) Major accounti ng, entr ies

involving estimates based on

the exercise of judgment by

management;

(iv) Signicant adjustments made in

the nancial statements arising

out of audit ndings;

(v) Com pl ian ce w i t h leg a l

requirements relat ing to

nancial statements;

(vi) Disclosure of any related party

transactions; and

(vii) Qualications in the draft audit

report.

(e) Reviewing with the management, the

quarterly nancial statements before

submission to the Board for approval.

(f) Reviewing with the management,performance of internal auditors and

adequacy of the internal control

systems.

(g) Reviewing the adequacy of the Internal

Audit functions, if any including the

structure of Internal Audit Department,

stafng and seniority of the ofcial

heading the Department reporting

structure, coverage and frequency of

Internal Audit.

(h) Discussion with internal auditors and /

or auditors any signicant nding and

follow up there on.

(i) Reviewing the ndings of any internal

investigation by the internal Auditors/

Auditors/Agencies into matter where

there in suspected fraud or irregularity

or a failure of Internal Control Systems

of a material nature and reporting thematters to the Board.

(j) Discussion with Statutory Auditors

before the audit committee, about the

nature and scope of audit as well as

post audit discussion to ascertain any

area of concern.

(k) To look into the reasons for substantial

defaults in the payment to the

depositors, debenture holders, shareholders ( in case of Non- payment or

declared dividends) and creditors.

(l) To review the functioning of the

Whistle Blower Mechanism.

(m) To review the follow up action on the

audit observations of the C&AG Audit.

(n) To review the follow up action taken on

the recommendations of Committee




61

on Public Undertakings (COPU) of the

Parliament.

(o) prov ide an open avenue of

communica t ion be tween theindependent Auditor, Internal Auditor

and the Board of Directors.

(p) Review all related party transactions

in the company. For this purpose the

Audit Committee may designate a

member who shall be responsible for

reviewing related party transactions.

(q) Review with the independent Auditor,

the co-ordination of audit efforts toassure completeness of coverage,

reduction of redundant efforts, and the

effective use of all audit resources.

(r) Consider and review the following

with the independent Auditor and the

Management :

(i) The adequacy of Interna l

controls including computerized

information system controls and

security, and

(ii) R e l a t e d f i n d i n g s a n d

recommendations of the

independent Audi tor and

Internal Auditor, together with

the management responses.

(s) Consider and review the following with

the management, internal Auditors

and independent Auditor:

(i) Signif icant findi ng during

the year , inc lud ing the

status of previous audi t

recommendations.

(ii) Any difficult ies encountered

during audit work includingany restriction on the scope of

activities or access to required

information.

(t) Carrying out any other function as is

mentioned in the terms of reference

of the Audit Committee.

22.5 During the Financial Year 2014-15, 9(Nine)

meetings of Audit Committee were held

and attendance of the Chairperson and

Members were as under:

Name of Directors Designation

62 63 64 65 66 67 68 69 70

24.05.14 22.07.14 07.08.14 12.09.14 30.10.14 19.12.14 31.01.15 14.02.15 25.02.15

Ms. Shantilata Sahu D (P) P P P P P P P P P

Sri N.Das D(T/P&P) P P P P P Ceased to be Director

Sri A.D.Mathur D(T/O) P P P P P P P Ceased to be Director

Sri A.K.Pandey D(F) P P P P P P P P NP

Sri G. Pandey D(T/O) Assumed charge w.e.f. 01/02/2015 P p

PART TIME OFFICIAL DIRECTORS

Sri Vivek Bhardwaj Director P P P NP NP NP P NP NP

Sri B.K.Saxena Director NP P P NP P P NP NP P

PART TIME NON OFFICIAL DIRECTORS/INDEPENDENT DIRECTORS

Sri A.K.Gupta Director P P P P P P P P P

Sri S.J.Sibal Director P P P P NP P P P P




63

23.12 Management assessment of the

Company’s Outlook for the Future

and to Identify Important Risk that the

company may face in future.

For laying down procedures of Risk

Assessment and Mitigation procedures,

CIL has engaged a consultant M/s Ernst

& Young LLP Kolkata, West Bengal, vide

ref. no. CIL/CP/Risk Assessment/14/132

dt. 19.2.2014 and given contract for

preparation of Risk Assessment and its

Mitigation procedure in Coal India Ltd and

all of its subsidiary companies separately.

The same is under nal stage and is to

be approved by CIL Board. After getting

the approved Risk Management Plan

from CIL, the same will be put up before

the Board. FDs have approved the Risk

Register for Enterprise Risk Management

Programme of NCL vide Item No.477:8 in

its 477th meeting held on 7.4.2015.

23.13 Whistle Blower Mechanism

No person i.e. whistle blower has

been prevented from direct access to

Chairperson of the Audit Committee.

23.14 Disclosure and information under the

Sexual Harassment to women at work

place (Prevention, Prohibition and

Redressal) Act 2013.

A committee has been formed as per

provisions of the Act and no case has been

reported during the year.

24.0 PER FOR MAN CE AGA INS T MOU

PARAMETERS

24.1 The Memorandum of Unders tanding(MOU) between CMD, NCL and Chairman,

CIL for the year 2014-15 was signed on

25.3.2014 as per guidelines of Department

of Public Enterprises (DPE), Ministry of

Heavy Industries and Public Enterprises,

Government of India.

24.2 The performance of NCL during 2014-15

against MOU 2014-15 parameters has

been audited by Statutory Auditors of NCL.

Parameter-wise details of performance

are enclosed as Annexure-V. The overallMOU grading of NCL for 2014-15 is VeryGood with a composite score of 2.4182.

25.0 AWARDS

25.1. Vigilance Excellence Award :

25.1.1 CVO ,NCL has rece ive d Vigi lanc eExcellence Award from Shri PradeepKumar, Central Vigilance Commissioner,CVC, New Delhi on the occasion ofEleventh Anniversary celebration ofVigilance Study Circle, Hyderabad on07.07.2014.

The award was given for the case studyon the “Preventive Vigilance” done byVigilance,NCL.

25.1.2 NCL has received Vigilance Excellence Award for the year 2015 from Instituteof Public Enterprises. The institute hadorganized a “Conclave of Vigilance Ofcers(Sharing of experience & Best practices) on12th & 13th March 2015 at IPE auditorium,Osmania University, Hyderabad. NCLVigilance has bagged this Award onits excellent track record of Vigilanceactivities, helped in securing signicant

savings on its actions/suggestions duringlast three years in E-initiatives/LeveragingTechnology, moreover for its efforts inspreading the vigilance awareness andsensitizing the employees and othersstake holders.

25.1.3 Award has also been given to CVO, NCL

for implementing various e-initiatives.



ANNUAL REPORT 2014-15 _________________________________________________________

64

25.2 National Safety Awards

25.2.1 Jhingurda Project of NCL has beenawarded the 1st prize (Winner) for theLongest Accident Free Period (LAAP)in the open cast mines type for the year2011 and the 1st prize (Winner) for the“LOWEST INJURY FREQUENCY RATE”(LIFR) in the open cast Mines type for theyear 2012 in the Presentation Ceremonyof National Safety Awards(mines)2011-12 held at New Delhi on 20th March

2015.

25.3 NCL has been bagged with Gold awardfor outstanding achievement in Corporate

Social Responsibility (CSR) in Metal

Sector by Greentech Foundation, New

Delhi and has been awarded as “50 most

caring companies of India” by World

CSR Congress, Mumbai in the year

2014-15.

26.0 AVAILABILITY OF ANNUAL ACCOUNTS

OF NCL AT HEADQUARTERS OF THE

COMPANY.

26.1 The Annual Accounts of Northern CoaleldsLimited for the year 2014-15 will be

available at the Headquarters of NCL at

Singrauli (MP) for providing information to

the Shareholders of Coal India Limited on

demand.

27.0 ACKNOWLEDGEMENT

27.1 The Board of Directors place on record

their deep gratitude for the continued

support and valuable guidance received

from Ministry of Coal and Coal India

Ltd. The Directors also acknowledge

with thanks the co-operation and help

extended by different wings of Govt. of

India particularly Ministry of Environment

& Forest and Ministry of Finance, as well

as from Planning Commission, Director

General of Mines Safety, Comptroller

& Auditor General of India, Chairman

and Members of Audit Board, Statutory

Auditors, Registrar of Companies, State

Governments of MP and UP and Local

Administrative Authorities.

27.2 The Directors are also thankful to the

valued customers particularly NTPC and

UPRVUNL and Bakers, Contractors and

Suppliers for the valuable assistance and

help received from them.

27.3 The Directors wish to place on record their

appreciation for the commitment, devotion

and hard work put in by the employees at

all levels.

For and on behalf of the Board of Directors

Sd/-

( Tapas Kumar Nag )


Date : 26th June, 2015

Place: Singrauli




65

ANNEXURE-I TO DIRECTORS’ REPORT

Annual Report on CSR Activities for the Financial Year 2014-

15 as per Clause (O) of Sub-section (3) of section 134 of theCompanies Act 2013

1.0 BRIEF OUTLINE OF THE NCL’S CSR

POLICY:

1.1 Northern coalelds Limited (NCL) follows

the CIL’s Policy for Corporate Social

Responsibility (CSR) approved by CIL

Board in its 307th meeting held on

29th May, 2014. This policy has been

framed after incorporating the featuresof the Companies Act 2013 and as per

notication issued by Ministry of Corporate

Affairs, Govt. of India on 27.02.2014 as

well as DPEs guidelines.

1.2 The main objective of CSR policy is to

lay down guidelines for the company to

make CSR a key business process for

sustainable development for the Society.

It aims at supplementing the role of the

Govt. in enhancing welfare measures

of the society based on the immediate

and long term social and environmental

consequences of their activities.

1.3 NCL has adopted Corporate Social

responsibility as a strategic tool for

sustainable growth. The geographical

area where NCL is situated i.e. parts

of Singrauli district (Madhya Pradesh)

and parts of Sonebhadra district (Uttar

Pradesh) is an under-developed area of

India with poor infrastructure, healthcarefacilities, literacy & employment rate. NCL

endeavors towards the upliftment of the

poor and underprivileged people of this

area through various schemes/activities

and also by sharing its in-house facilities

with them.

The primary beneciaries of CSR are landoustees, PAP and those staying within

the radius of 25Kms of the Project. Poorand needy section of the society living in

other parts of Uttar Pradesh and Madhya

Pradesh are the secondary beneciaries.

1.4 The scope of CSR activities undertakenby NCL is as per Schedule VII of New

Companies Act 2013.

1.5 The fund for the CSR is alloca tedbased on 2% of the average net prot

of the Company for the three immediatepreceding nancial years or Rs. 2.00 per

tonne of Coal Production of previous yearwhichever is higher.

1.6 NCL has a Board Level Committee onCSR and Sustainable Development

which reviews the implementation of

CSR activities in every six months and

recommends the amount of expenditure

to be incurred on CSR activities.

2.0 OVERVIEW OF CSR ACTIVIT IES/

PROJECTS UNDERTAKEN BY NCL

DURING THE YEAR 2014-15

2.1 In the financial year 2014-15, NCL

have done CSR activities in areas ofbuilding infrastructure, water supply, skill

development, healthcare, education etc.with a total expenditure of Rs. 61.77 crores

as against the total expenditure of Rs.39.72 crores for the year 2013-14.Also,

NCL released an amount of Rs. 40.14

crores to Hindustan Prefab Limited (HPL)in the year 2014-15 as rst installment forconstruction of 5000 schools toilets under

Swacch Vidyalay Abhiyan.

2.2 The broad CSR heads and corresponding

expenditure are as follows:-

i. Roads (GAON JODO ABHIYAN) :

NCL’s Gaon Jodo Abhiyaan is a step

taken by NCL to connect the different

villages in Singrauli and adjoining areas

with town areas with roads. With the



ANNUAL REPORT 2014-15 _________________________________________________________

66

road connectivity, the villagers have

started bringing their products to market

which otherwise was being arranged

through middleman. This has immediately

increased their earning capacity. Further

many unemployed youths are getting jobs

in the town with the start of public transport.

In case of any health care emergency they

are able to reach our company hospital

or private doctors in time. The travel

time has reduced signicantly. NCL has

constructed/carpeted/widened 30 kms

of roads approximately in the year 2014-

15 with a total expenditure of Rs. 36.71

Crores.

ii. Infrastructure (AADHAR): Infrastructure

works undertaken by NCL in the year 2014-

15 includes Construction of community

halls in villages, electrication of villages,

distribution of solar lanterns to poor &

needy people, Construction of toilets etc.

with a total expenditure of Rs. 4.35 crores.

iii. Water Supply (SWACHH JAL) : NCL has

installed 9 RO plants, 150 hand pumps in

nearby villages to provide safe drinking

water. NCL has also constructed 3 ponds

and 2 check dams in different villages

around NCL. The total expenditure under

this head is of Rs. 3.49 Crores.

iv. Skill Development & Employment

Generation (KAUSHAL)- NCL has

imparted different types training viz.

Security guard training, LMV driving

training, bag making training, beautician

training, embroidery and tailoring training

for employment generation through

qualied trainers to the unemployed youths

(both male & female) of the nearby villages

with an expenditure of Rs. 1.29 Crores.

v. Health (SAB SWASTH)- Besides

healthcare facilities provided to poor

villagers in different project dispensaries,

NCL has organized health camps like

family planning camp, cancer detection

camp, urology camp, diabetic camp,

eye camp etc. in different projects, Central

Hospital and NSC. The expenditure

incur red by NCL Hosp i ta ls and

dispensaries in these camps is Rs. 0.48

Crores.




67

vi. Sports/Art & Culture (KHEL TARANG) -

NCL has contributed for the promotion of

Sports/Art & culture with an expenditure

of Rs. 0.15 Crores.

vii. Education (SAB SAKSHAR)- NCL

has contributed in various educational

activities like decit grant, constructionof school buildings, supply of furniture &

dari/carpets to Govt. schools etc with an

expenditure of Rs. 15.29 Crores.

2.3 Swachh Vidyalaya Abhiyan

NCL is actively involved in Swacch

Vidyalaya Abhiyan, a national campaign

by the Government of India. Under this

program NCL will construct/repair 5695

toilets in government schools of 10 districts

of Madhya Pradesh. NCL has signed

a MoU on 13.01.2015 with Hindustan

Prefab Limited (A Govt. of India Unit)

for construction of 5000 new toilets and

repair of 695 existing toilets under Swacch

Vidyalaya Abhiyan. NCL has released anamount of Rs. 40.14 crores to HPL in the

year 2014-15 as rst installment for the

work.

2.4 Web link for the CSR policy and

programs

The CSR Policy and Programs/projects

can be viewed at: http://www.ncl.nic.in/csr/

csr.php

3.0. COMPOSITION OF THE SUSTAINABLE

DEVELOPMENT AND CSR COMMITTEE

The Sustainable development and CSR

Board level committee constituted in

the 180th Board meeting on 10.09.2013

comprise of following members:

a. Shri S.J. Sibal, Part-time non ofcial Director, NC : Chairman

b. Shri A.K. Gupta, Part-time non ofcial Director, NCL : Member

c. Miss Shantilata Sahu, Director (Personnel), NCL : Member

d. Director (Tech/P&P), NCL : Member

4.0 AVERAGE NET PROFIT OF THE

COMPANY FOR LAST THREE

FINANCIAL YEARS

Financial Year Net Prot (in Crores)

2011-12 4265.67

2012-13 4420.58

2013-14 3355.71

Average net prot for last

three years

4013.99



ANNUAL REPORT 2014-15 _________________________________________________________

68

5.0. PRESCRIBED CSR EXPENDITURE

(TWO PER CENT OF THE AMOUNT

AS IN ITEM 3 ABOVE)

The prescribed CSR expenditure is Rs.80.28 Crores (Eighty Crores Twenty Eight

Lakhs only) which is equal to 2% of the

average net prot of last three years.

6.0. DETAILS OF CSR AMOUNT SPENT

DURING THE FINANCIAL YEAR

6.1 Total amount to be spent by NCL under

CSR for the nancial year 2014-15 was Rs.

80.28 Crores (Eighty Crores and Twenty

Eight Lakhs only)

6.2 NCL has released an amount of Rs.

101.91 Crores under CSR for the nancial

year 2014-15, out of which an amount of

Rs. 40.14 Crores was released as rst

installment for construction of 5000 toilets

to Hindustan Prefab Limited (HPL) under

Swachh Vidyalaya Abhiyan . But, since

HPL had not submitted the utilization

certificate to NCL before the end of

nancial year 2014-15, the same was not

accounted for and treated as advance.

6.3 Therefore, NCL’s CSR expenditure for

the year 2014-15 is Rs. 61.77(Sixty one

crore and seventy seven lakhs) Crores and

amount unspent in 2014-15 is Rs. 18.51

Crores (Eighteen crores and fty-one lakhs

only)

6.4 Manner in which the CSR amount spent

during the nancial year

The details of the amount spent during

the financial year 2014-15 is annexed

herewith.

7.0 IMPLEMENTATION AND MONITORING

OF CSR POLICY

7.0.1 The implementation and monitoring of

CSR Policy, is in Compliance with CSR

objectives and Policy of the Company.

T.K.Nag S.J.Sibal Shantilata Sahu

CMD, NCL Chairman, SD&CSR committee Director(P),NCL

Dated:26/06/2015

Place. Singrauli.




69

ANNEXURE TO ANNUAL REPORT OF CSR ACTIVITIES IN NCL

DETAILS OF AMOUNT SPEND DURING FINANCIAL YEAR 2014-15 UNDER CSR

Sl.No. CSR Activity Sector in which

project is covered

Project Amount

Outlay

in Rs.

(in Rs

lakhs)

Expend-

iture in

Rs.

(in

Rs

lakhs)

Cumu-

lative

expend-

iture

(in

Rs

lakhs)

Implementing

Agency

1 Electrication of Bharuha village Infrastructure Amlori 68.9 68.9 68.9 Madhya Pradesh

Electricity board

2 Installation of RO plant and providing

water through tankers

Water Supply Amlori 72 24.29 24.29 Madhya Pradesh Govt.

3 WBM and carpeting from Kachni main

road to Aml. Main road near Arjun

Kushwaha house

Roads Amlori 45 22.59 22.59 M/s Shivshankar

Electricals and Civil

Engg.

4 Construction of CC road from Samudaik

Bhawan to Biar Adivasi Basti

Roads Amlori 40 30.04 30.04 M/s Parihar Supplier

and Co.5 Running and maintinance of 04 nos.

embroidery & tailoring training centre.

Skill Dev/Emp. Gen. Bina 4 1.8 2.57 Bina Project

6 Providing to ilets, boundary wall and

misc. works at Dr. Ambedkar Bal Vidya

Mandir at Jawahar nagar, toilets at

primary school of Gharsari village.

Infrastructure Bina 20 21.55 21.55 M/s Virendra Singh

7 Providing marriage hall / community

center for villagers of Jamshila Nagar,

Gharsari, Chandwar at Gharshari village

Infrastructure Bina 75 76.55 76.55 M/s Kumar and Kumar

8 Providing CC approach road to Saati tola

of Bansi village

Roads Bina 75 51.05 51.05 M/s B.D Singh

9 Village sports(Kabaddi tourbnament on

07-08 Feb 2015 )

Sports and Culture Bina 1.5 1.48 1.48 Bina Project

10 Women health check up camp Healthcare Bina 1 1 1 Bina Project Hospital

11 Diabetes and Hypertension check up and

treatment camp

Healthcare Bina 2 1.98 1.98 Bina Project Hospital

12 Deepening of exist ing pond at vil lage

Gharsari

Water Supply Bina 6 4.17 4.17 M/s Rajshree & Co.

13 Repair of old road 3.00 Kms. At Gharsari Roads Bina 10 18.50 18.5 M/s Rabindra

Construction

14 Construction of ponds in Gorbi vil lage at

Chitahi tola

Water Supply Block B 32 26.3 26.30 M/s Rural & Urban

Pest Control(Open

Tender)

15 Construction of 4 rooms at SaraswatiShishu Mandir, Gorbi

Education Block B 12.5 17.99 17.99 M/s Rural & UrbanPest Control(Open

Tender)

16 Organizing vil lage sports Competition Sports and Cul ture Block B 1.5 1.5 1.50 Block-B

17 CBWE Training Programme Skill Dev/Emp. Gen. Block B 1.5 1.5 1.5 Block B project

18 Construction of checkdam at kasar Water Supply Block B 21.56 13.68 13.68 M/s Priyanka

Enterprises

19 Periodical cleaning of all ied works of

pond near Singrauli Railway station

Water Supply Block B 2 1.73 1.73 M/s VSTSS, Singahi

(Purwa Tola)

20 Construction of CC Road from

Panchayat ghar to house of Anis Khan

via house of shiv prasad at solang

Roads Block B 70 13.24 13.24 M/s Anant kumar singh



ANNUAL REPORT 2014-15 _________________________________________________________

70

21 Supply of sh seeds in Mudwani village Skill Dev/Emp. Gen. Dudhichua 1.1 1.1 1.10 Supply by Asstt.

Director Fisheris,

Pondi (Maihar) M.P &

dropped by CSR Team

Dudhichua

22 Construction of road from Jayant STP

at Dudhichua Project top Harrai through

Abhed Ashram

Roads Dudhichua 300 157.68 260.65 M/s Samay

Enterprises

23 Construction of community centre at

Mudwani village

Infrastructure Dudhichua 10 0.72 12.19 M/s Shivshankar

Electricals and Civil

Engg.

24 Installat ion of RO plant and water supply

through tanker

Water Supply Dudhichua 74.35 22.16 22.16 Nagar Palika Nigam;

Singrauli (M.P)

through: M/s C.S

Marketing Anpara,

Sonbhadra (U.P)

25 Installation fo 20 nos. Handpumps Water Supply Dudhichua 10 6.58 6.58 M/s Anand Enterprises

26 Repair and widening of road from main

road to primary school Mudwani

Roads Dudhichua 60 28 28 M/s Shivshankar

Electricals and CivilEngg.

27 Organizing sports Compet ition at

Mirchagarh village

Sports and Culture Dudhichua 1 1 1 Dudhichua Project

28 Running and maintinance of embroidery

& tailoring training centre.

Skill Dev/Emp. Gen. Dudhichua 2 0.43 0.43 Dudhichua Project

29 Supply of furniture to Govt. middle school

, Dudhichua

Education Dudhichua 3.18 3.13 3.13 Through open tender

by Dudhichua project

30 Distr ibution of 1650 nos. solar lanterns to

poor and needy villagers

Infrastructure Headquarter 32 30.01 30.01 M/s Palak Industries

Nagpur, M.P(Open

Tender)

31 LMV driving tra ining to 100 nos.

unemployed youths under CSR.

Skill Dev/Emp. Gen. Headquarter 5 4.98 4.98 M/s Taggar Motor

Driving Training

School, Nawanagar,

Singrauli (open tender)

32 Distr ibution of 1000 nos. Mosquito nets

to poor and needy villagers under CSR.

Healthcare Headquarter 35 2.35 2.35 Singrauli Cloth

House(Committee

Purchase)

33 Construction of CC road from Chatri to

Churki under CSR

Roads Headquarter 450 225.14 423.74 M/s K K Bhawasinka-

VK Enterprises

34 Construction of WBM Road from

Amlihwa to Khairwari Tola at Ajgurah

under CSR

Roads Headquarter 110 75.32 85.71 M/s K K Bhawasinka-

VK Enterprises (JV)

(open tender)

35 Widening of road from Singrauli rai lway

station junction to parshohar

Roads Headquarter 1000 1450.58 1529.2 M/s V.C.Jaiswal

36 Electrication of Bairihwa village Infrastructure Headquarter 20 13.79 13.79 MPPKVV Co. Ltd,

Waidhan

37 Development of pond near SingrauliRailway station and at Madhauli nallah

Water Supply Headquarter 15 1.9 16.90 M/s K K Bhawasinka-VK Enterprises (JV)

(open tender)

38 Extension of Ambedkar smrit i high school

at Singrauli

Education Headquarter 40 28.46 53.45 M/s IP Associates

(open tender)

39 Development of muktidham at Chatka Infrastructure Headquarter 90 84.55 104.46 M/s Binay Kumar

Singh (open tender)

40 Construction of Four number rooms

at Saraswati Shishu Mandir Higher

Secondary School Singrauli

Education Headquarter 35 36.74 36.74 M/s Abhay Kumar

Tiwari (open tender)

41 Construction of CC road from Hardi to

Dhaturaverwa

Roads Headquarter 350 284.57 284.57 M/s National Prestige

Construction

42 Carpet ing of road at Ward No. 9 in

Singrauli

Roads Headquarter 185 210.63 210.63 M/s K.K Bhawasinka-

V.K enterprises (JV)




71

43 Training for security guard to local

enemployed youths

Skill Dev/Emp. Gen. Headquarter 40 19.8 39.80 District Administration

Singrauli

44 Installation of handpumps Water Supply Headquarter 150 100.64 161.39 M/s Binay Kumar

Singh (open tender)

45 Construction of stage wi th shed atGhorawal

Infrastructure Headquarter 20 26.86 26.86 M/s Shailesh Kr.Patahak

46 Organizing vil lage sports in Karela vi llage Sports and Culture Headquarter 2.5 2.45 2.45 NCL HQ

47 Heart treatment of Ms. Kusum Kali at

SGPGI Lucknow

Healthcare Headquarter 2.1 2.1 2.10 SGPGI Lucknow

Treatment/operation to

be done last weak of

Dec’14

48 Financial Assistance to Inderji t Singh

(shot-Put Player) for training

Sports and Culture Headquarter 3 3 3.00 NCL HQ

49 Distr ibution of woolen blankets to BPL

Card Holder of nearby villages

Healthcare Headquarter 15.92 14.52 14.52 M/s UPICA Handloom

and Handicrafts Ltd.

50 Setting up of 100 units of Co-operative

based poultry farms

Skill Dev/Emp. Gen. Headquarter 125 87.5 100 District Administration

Singrauli

51 Providing sports materials to Birkuniaand Karela village

Sports and Culture Headquarter 2 1.92 1.92 M/s GajendraEnterprises

52 Distr ibution of dari/carpets for students

and tables and chairs for teachers of

Govt. schools of nearby villages

Education Headquarter 8 7.15 7.15 M/s D.K.Singh

Enterprises

53 Decit grant pertaining to non- NCL

wards in NCL funded schools

Education Headquarter 1393.72 1393.72 1393.72 NCL HQ

54 Talent search program for rural sports

persons including provision for sports kits

Sports and Culture Headquarter 15 0.85 0.85 NCL HQ

55 Distr icbution of 70 nos. solar lanterns in

Mudwani village

Infrastructure Headquarter 6 1.27 1.27 M/s Palak Industries

Nagpur, M.P(Open

Tender)

56 Oraganizing free medical camps in

villages for BPL persons

Healthcare Jayant 3.5 2.29 2.29 Jayant project hospital

57 Construction of cremation ghat/shed

beside Ballia Nala

Infrastructure Jayant 6 4.69 9.66 M/s Ram Ugrah Shah

58 Construction of 500m road towards

creamtion Ghat

Roads Jayant 6 2.84 4.92 M/s Ram Ugrah Shah

59 Installat ion of 80 nos. solar lights in

Dheki village by jayant project

Infrastructure Jayant 10 10 10 Through open tender

by Jayant project

60 Construction of 200m PCC Road Roads Jayant 20 6.48 17.28 M/s Chhotelal Shah

61 Deepening of pond in Dheki and Pauri

Nagai

Water Supply Jayant 40 14.34 14.34 M/s Vikash Associates

62 Adult Education of villagers Education Jayant 1 1.5 1.5 Jayant project

63 Installation of RO plant Water Supply Jayant 76.4 18.4 18.4 District Administration

Singrauli

64 Community Hall in Dheki village Infrastructure Jayant 40 23.66 23.66 M/s C.P. Mishra

65 Training centre for self-employment

for Project Affected and Unemployed

villagers

Skill Dev/Emp. Gen. Jhingurda 11.85 8.83 11.27 Through VOICE of

PEOPLE, Rewa

66 Honorarium to instructor for st itching

classes conducting by Mahila Mandal

Skill Dev/Emp. Gen. Jhingurda 1 0.72 0.72 Through Mahila

Mandal, Jhingurda

67 Construction of CC road including 8 nos.

culverts from existing road to existing

bridge at Chakariya village.

Roads Jhingurda 158.66 177.01 177.01 M/s Sinha Infotech

68 Construction of CC road from

Pradhanmnatri Grameen sadak to Isri

tola at Churki village.

Roads Jhingurda 81.11 87.51 87.51 M/s Shivshankar

Electrical work


thorugh tanker

Water Supply Jhingurda 38 18.78 18.78 Nagar Nigam, singrauli

(M.P)



ANNUAL REPORT 2014-15 _________________________________________________________

72

70 Village sports in and around Jhingurda

Project

Sports and Culture Jhingurda 2 1.03 1.03 Jhingurda Project

71 Construction of boundary wall of High

school at Chakariya village

Infrastructure Jhingurda 10 5.28 5.28 M/s IP Associates

72 Construction of bus stand near Rehta

more

Infrastructure Kakri 3.5 2.5 2.5 M/s Vimal Electrical

works

73 Renovation of playground, construction

of public platform at Garbadha village

Sports and Culture Kakri 2 2.05 2.05 M/s Laxminarayan

bhumihin

visthapith berojgar

shramsamvida samiti

74 Construction of bitumen road from

primary school to MP border

Roads Kakri 56 17.1 49.90 M/s D D Singh

75 Installation of handpumps Water Supply Kakri 35 16.5 29.64 M/s Binay Kumar

Singh



Skill Dev/Emp. Gen. Kakri 1 0.44 0.44 Kakri project

77 Construction of check dam for irrigation

purposes at Ranhore village

Water Supply Kakri 15 12.43 12.43 M/s Ram Lakhan singh

& Co

78 Construction of sulabh sauchalaya

complex at Auri more including watersupply arrangement to the complex

Infrastructure Kakri 25 20.49 20.49 M/s Ram Lakhan singh

& Co

79 Construction of toi let and approach road

for middle school at Garbandha village

Infrastructure Kakri 6.5 7.65 8.4 M/s Rajendra Panday

80 Repair and maintenance of 1.1 kms long

PWD road from Ambedkarnagar to Ballia

nallah

Roads Khadia 35 28.52 28.52 M/s N.K Enterprises

81 Construction of 1.9 kms long CC road in

Ambedkarnagar

Roads Khadia 60 50.28 50.28 M/s Ranapratap


through tanker

Water Supply Khadia 32 26.88 26.88 M/s Dishan and

brothers

83 Installation of RO plant Water Supply Krishnashila 138.16 32.52 32.52 M/s Deioners

Speciality Chemical

(P) Ltd.

84 Widening of road from Nigahi more toDudhichua ROB Roads Nigahi 450 696.58 696.58 M/s Suman Engg



Skill Dev/Emp. Gen. Nigahi 3.5 1.8 1.80 Nigahi Project

86 Renovation/repair of old buiding and

construction of 4 nos. Rooms, toilets

and verandah at Saraswati Shishu

Mandir , Nandgaon

Education Nigahi 50 40.19 40.19 M/s T.N Pandey

87 Construction of RCC drain along

approach road and internal road for

cluster no.1 in Nandgaon

Infrastructure Nigahi 45 34.16 34.16 M/s Om Construction

88 Construction of PCC road of cluster no.1

and 500m new WBM road at different

locations in Nandgaon

Roads Nigahi 30 21.6 21.6 M/s Dhirendra

Construction

89 Installation of RO plant Water Supply Nigahi 14 7.9 7.9 Nagar Palika Nigam;

Singrauli (M.P)

90 Approach road in Nandgaon v illage Roads Nigahi 40 15.86 31.86 M/s Randheer

Enterprises

91 Construction of yoga hall at NSC Infrastructure NSC 35 1.06 30.7 M/s Sanjay

Construction

92 Electrical works in Yoga hall of NSC Infrastructure NSC 2 1.86 1.86 M/s Dev Enterprises

93 Health Camps Healthcare NSC 46.5 23.43 23.43 Nehru Shatabdi

Chikitsalaya, NCL

Singrauli

TOTAL 6804.01 6176.6 6845.19

*** Construction of toi lets in schools under

Swacch Vidyalaya Abhiyan

Infrastructure Headquarter 4014 4014 4014 M/s Hindustan Prefab

Ltd.

Note :NCL has released Rs. 40.14 crores to Hindustan Prefab Limited (HPL) (after signing of MoU on 13.01.2015) as rst installment for construction

of 5000 toilets under Swachh Vidyalaya Abhiyan




73

ANNEXURE- II TO DIRECTOR’S REPORT

Information in accordance with the provisions of Section 134 (3) of the Companies Act. 2013 read

with Rule (8) of the Companies Accounts Rules, 2014 regarding Conservation of Energy, Technology

Absorption and Foreign Exchange Earnings & Outgo.

A) CONSERVATION OF ENERGY

1.0 Steps taken for conservation of Energy during the year 2014-2015.

a) Electrical Energy.

i) NCL has earned a bonus of Rs.3.24 crore both from MPSEB and UPPCL points of supply

put together towards power factor and load factor rebate during the year 2014-15. NCL

has also earned TOD rebate of Rs.3.78 Crore.

ii) The following energy conservation measures were taken in 2014-15:-

1. Compact Fluorescent lamps and other energy efcient lamps have been installed at

Hqrs., Block’B’, Jhingurda, Kakri, Bina, Khadia, CWS, Nigahi and Amlohri Projects

of NCL.

2. Time switches have been installed for streetlights in CHP, Mines and residential

Areas at Block –B, Jhingurda, Bina, CWS, Dudhichua, Nigahi and Amlohri projects

3. Energy saver, enery meter and PF meters have been installed at Block’B’ and

Dudhichua Projects.

4. Solar water heater and solar panel for solar light system have been installed at

Ofcer’s club/VIP Guest house of Jayant project and Solar Light System has sbeen

installed at Khadia and Bina Project.

b) Fuel & Lubricants

i) Strict compliance of approved comprehensive guidelines for monitoring of diesel

consumption in all projects of NCL.

ii) The actual diesel consumption of mines is being compared with the benchmark data of

CMPDI on monthly basis for monitoring purpose.

2.0 Investment and Proposals implemented for reduction of consumption of energy.

a) Use of Solar water heater and solar light system at mines. Rs. 21.40 lakhs

b) Use of energy efcient lamp (SLV) for street and ood lighting and use of CFL Rs. 75.06 lakhs

c) Installation of energy meter, demand controller, energy saver and P.F. Meter in mines

and township

Rs. 2.22 lakhs

d) Time switch for streetlights in CHP, Mines and Residential areas and others Rs. 14.09 lakhs

e) Others energy conservation CFL/LED in residential quarters and NR builidings Rs. 33.54 lakhs

Total Rs. 146.31 lakhs



ANNUAL REPORT 2014-15 _________________________________________________________

74

Achievements :

NCL has earned Rs.7.02 crores from MPSEB & UPSEB points supply put together towards

rebate on power factor, load factor and TOD during year 2014-15.

(c) Impact of measures taken at (a) and (b) for reduction of energy consumption andconsequent impact on the cost of production of goods.

SLNo.

Description 2014-15 2013-14 % increase/decrease

A. Electrical Energy :

(i) Consumption of energy /Tonne of coal production (KWH/Tonne) 5.14 5.30 (-) 3.01

(ii) Consumption of energy per cu.m. of composite production i.e.

coal plus OB & R.H.(KWH/Cu.m.composite)

2.77 2.70 (+) 2.59

B. Fuel & Lubricant :

(i) Consumption of HSD per Cu.m. of composite production ex-cluding dragline production (Ltr/cu.m.)

1.10 1.14 (-) 3.51

(ii) Consumption of Lubricant per Cu.m. of composite production

(Ltr/cu.m.)

0.038 0.039 (-)2.56

(B) TECHNOLOGY ABSORPTION : Form ‘B’ is enclosed

(C) FOREIGN EXCHANGE EARNING & OUT

(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.(Rs. in Crores)

Current Year Previous Year

(A) Foreign Exchange earned NIL NIL

(B) Foreign Exchange used

i) C.I.F. Value of Imports

(a) Raw materials NIL NIL

(b) Components, Stores & Spare Parts 92.26 126.80

(c) Capital Goods NIL 1.83

ii) Repayment of JBIC Loan NIL 322.72

iii) Repayment of IBRD Loan NIL 355.19

iv) Travelling Expenses 0.01 0.08

v) Interest/Commitment/Agency charges etc. of IBRD/JBIC NIL 8.33

Total 92.27 814.95




75

F O R M ‘ B’

Disclosure of Particulars with respect to Technology Absorption

RESEARCH & DEVELOPMENT (R&D)

RESEARCH & DEVELOPMENT (R&D)

1 Specic areas in which R&D carried

out by company:a. A site specic study on distance between toe of shovel-dumper dump

& dragline dump with consideration of safety & economical design of

both shovel-dumper dump & dragline dump in all 6 dragline mines of

NCL by BIT, Mesra, Ranchi.

b. Development of in-line cylinder block boring machine for engines at

CWS, Jayant.

c. Software development to analyse & view equipment wise daily

production & maintenance data of major HEMMs.

d. Award of work for benchmarking of diesel/power consumption by

an independent agency such as Bureau of Energy Efciency (BEE),

Tata Energy Research Institute (TERI), CMPDI etc.

2 Benets derived as a result of theabove R&D

a. Draft report has been submitted in Feb’14.

b. Development completed & in-line boring of 03 nos engine block was

carried out successfully.

c. Software developed under IBS system & is being used.

d. Benchmarking of power consumption in two mines of NCL has been

completed by CMPDI & report submitted in Mar’15.

3 Further Plan of Action: Nil

4 Expenditure on R&D:(a) Capital

(b) Recurring

(c) Total

(d) Total R&D expenditure as

percentage of total turnover

Total Expenditure Rs.14.15 Crores

TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION:

1 Efforts in brief, made towards

technology absorption, adaptation

and innovation :

• OITDS installed at Amlohri & Khadia and is under installation atNigahi & Dudhichua OCPs.

2 Benets derived as a result of the

above efforts• Improvement in utilisation of dumpers & shovels

3 In case of imported technology(imported during the last 5 yearsreckoned from the beginning of

the nancial year) the requisite

information given below:

(a) Technology imported:

(b) Year of Import:

(c) Has technology been fullyabsorbed:

(d) If not fully absorbed, areas

where this has not taken place,

reasons therefore and future

plan and actions:

NIL



ANNUAL REPORT 2014-15 _________________________________________________________

76

ANNEXURE-III to DIRECTORS REPORT

FORM NO. MR-3

SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED 31/3/2015

[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of

the Companies (Appointment and Remuneration Personnel) Rules, 2014]

SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED 31st March, 2015

To,

The Members,Northern Coalelds Limited,

I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the

adherence to good corporate practices by Northern Coalelds Limited(hereinafter called the company).

Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the

corporate conducts/statutory compliances and expressing my opinion thereon.

Based on my verication of the Northern Coalelds Limited, books, papers, minute books, forms and

returns led and other records maintained by the company and also the information provided by the

Company, its ofcers, agents and authorized representatives during the conduct of Secretarial Audit,

I hereby report that in my opinion, the company has, during the audit period covering the nancial

year ended on 31st March, 2015 complied with the statutory provisions listed hereunder and also thatthe Company has proper Board processes and compliance mechanism in place to the extent, in the

manner and subject to the reporting made hereinafter:

I have examined the books, papers, minute books, forms and returns led and other records maintained

by Northern Coalelds Limited for the nancial year ended on 31/3/2015 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made thereunder;

(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder; NOT

APPLICABLE

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder; NOT

APPLICABLE.(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to

the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial

Borrowings; NOT APPLICABLE.

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board

of India Act, 1992 (‘SEBI Act’):-

(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and

Takeovers) Regulations, 2011; NOT APPLICABLE.

(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations,

1992;




77

(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)

Regulations, 2009; NOT APPLICABLE.

(d) The Securities and Exchange Board of India (Employee Stock Option Scheme and

Employee Stock Purchase Scheme) Guidelines, 1999; NOT APPLICABLE.

(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities)

Regulations,2008; NOT APPLICABLE.

(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer

Agents) Regulations, 1993 regarding the Companies Act and dealing with client; NOT

APPLICABLE.

(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations,

2009; and

(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998;

NOT APPLICABLE

(vi) As informed by the Management other applicable Laws have been complied (Mention the other

laws as may be applicable specically to the company).

I have also examined compliance with the applicable clauses of the following:

(i) Secretarial Standards issued by The Institute of Company Secretaries of India.

(ii) The Listing Agreements entered into by the Company with Stock Exchange(s), if

applicable; NOT APPLICABLE.

During the period under review the Company has complied with the provisions of the Act, Rules,

Regulations, Guidelines, Standards, etc. mentioned above subject to the following observations:

One of the Director of the Company Shri Niranjan Das, Director(Technical) was ceased to be the

Director of the Company with effect from 2nd October 2013 vide Ministry of Coal , Government of India

Letter No. 21/3/2009-ASO dated 3rd November, 2014 and Coal India Limited order No. CIL/C5A(ii)/N.

Das/D(T),NCL/B-380 dated 4th November 2014.

I further report that

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors,

Non-Executive Directors and Independent Directors. The changes in the composition of the Board

of Directors that took place during the period under review were carried out in compliance with the

provisions of the Act.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes

on agenda were sent at least seven days in advance, and a system exists for seeking and obtaining

further information and clarications on the agenda items before the meeting and for meaningful

participation at the meeting.

Majority decision is carried through while the dissenting members’ views are captured and recorded

as part of the minutes.

I further report that there are adequate systems and processes in the company commensurate with

the size and operations of the company to monitor and ensure compliance with applicable laws, rules,

regulations and guidelines.



ANNUAL REPORT 2014-15 _________________________________________________________

78

I further report that during the audit period the company has following events:-

For example:

(i) Public/Right/Preferential issue of shares / debentures/sweat equity, etc.- NIL

(ii) Redemption / buy-back of securities - NIL

(iii) Major decisions taken by the members in pursuance to section 180 of the Companies Act,

2013 - NIL

(iv) Merger / amalgamation / reconstruction, etc. - NIL

(v) Foreign technical collaborations - NIL

Place : SINGRAULI Signature:

Date : 29th April, 2015 Name of Company Secretary in practice

KRUPESH MANKODI

FCS No.5773, C P No.: 4870




79

ANNEXURE-IV to DIRECTORS REPORT

FORM NO. MGT 9

EXTRACT OF ANNUAL RETURN

As on nancial year ended on 31-03-2015

Pursuant to section 92(3) of the Companies Act, 2013 and Rule 12(1) of the Company (Management

& Administration) Rules, 2014

I. REGISTRATION & OTHER DETAILS:

1. CIN U10102MP1985GOI003160

2. Registration Date Registration No.3160 dated 20.11.1985.

3. Name of the company NORTHERN COALFIELDS LIMITED

4. Category/ Sub-category of the Company Private Company (A subsidiary Company of Coal India Limited) Compa-ny within the meaning of Section 2(87) of the Companies Act, 2013.

5. Address of the Registration ofce & contact

details

Northern Coalelds Limited, Singrauli Colliery, PO. Singrauli, Dist. Sin -

grauli (MP) 486 889

6. Whether listed company NO

7. Name, Address & contact details of the Registrar& Transfer Agent, if any

-

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY:

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

S.No.

Name and Description of main products/services

NIC Code of the Product/service % to total turnover of the company

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

III. PARTICULAR OF HOLDING, SUBSIDIARY AND ASSOCITATE COMPANIES:

S.No.

Name and Address of the Company CIN/GLNHolding/Subsidiary/

Associate% of Share Held Application Section

1. Coal India Limited, 10, N S Road, Coal

Bhawan, Kolkata, West Bengal-700001.

L23109WB-

1973GOI028844

Holding 100.00 Sanction 2(46) of

Companies Act’

2013



ANNUAL REPORT 2014-15 _________________________________________________________

80

IV. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY):

i) Category-wise Share Holding:

Category of Shareholders

No. of Shares held at the beginning of the year [as

on 01-04-2014]

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

31-03-2015] % changeduring the

year Demat Physical Total % of Total

Shares

Demat Physical Total % of Total

Shares

A. Promoter’s

(1) Indian:

a) Individual/HUF 0 3 3 0.00 0 3 3 0.00 0.00

b) Central Govt. 0 0 0 0.00 0 0 0 0.00 0.00

c) State Govt.(s) 0 0 0 0.00 0 0 0 0.00 0.00

d) Bodies Corp. 0 1776725 1776725 100.00 0 1776725 1776725 100.00 0.00

e) Banks/ FI 0 0 0 0.00 0 0 0 0.00 0.00

f) Any other 0 0 0 0.00 0 0 0 0.00 0.00

Sub-Total(A)(1): 0 1776728 1776728 100.00 0 1776728 1776728 100.00 0.00

(2) Foreign:

a)NRIs-Individuals 0 0 0 0.00 0 0 0 0.00 0.00

B) Other- Individuals 0 0 0 0.00 0 0 0 0.00 0.00

c)Bodies Corp. 0 0 0 0.00 0 0 0 0.00 0.00

d) Banks/FI. 0 0 0 0.00 0 0 0 0.00 0.00

e) Any other 0 0 0 0.00 0 0 0 0.00 0.00

Sub Total(A)(2): 0 0 0 0.00 0 0 0 0.00 0.00

Total shareholding of Promoter (A)=(A)

(1)+(A)(2)

0 1776728 1776728 100.00 0 1776728 1776728 100.00 0.00

Total shareholding of Promoter(A) 0 1776728 1776728 100.00 0 1776728 1776728 100.00 0.00

B. Public Shareholding

(1) Institutions

a) Mutual Funds 0 0 0 0.00 0 0 0 0.00 0.00

b) Banks/ FI 0 0 0 0.00 0 0 0 0.00 0.00

c) Central Govt. 0 0 0 0.00 0 0 0 0.00 0.00

d) State Govt. (s) 0 0 0 0.00 0 0 0 0.00 0.00

e) Venture Capital Funds 0 0 0 0.00 0 0 0 0.00 0.00

f) Insurance Companies 0 0 0 0.00 0 0 0 0.00 0.00

g) FIIs 0 0 0 0.00 0 0 0 0.00 0.00

h) Foreign Venture Capital Funds 0 0 0 0.00 0 0 0 0.00 0.00

i) Others 0 0 0 0.00 0 0 0 0.00 0.00

Sub-total(B)(1):- 0 0 0 0.00 0 0 0 0.00 0.00

(2) Non-Institutions

a) Bodies Corporate:

i) Indian 0 0 0 0.00 0 0 0 0.00 0.00

ii) Overseas 0 0 0 0.00 0 0 0 0.00 0.00

b) Individuals:




81

i) Individual shareholders holding nomi-

nal share capital in excess of Rs 1 Lakh

0 0 0 0.00 0 0 0 0.00 0.00

ii) Individual shareholders holding nomi-

nal share capital in excess of Rs 1 lakh

0 0 0 0.00 0 0 0 0.00 0.00

c) Others (specify):

Non Resident Indians 0 0 0 0.00 0 0 0 0.00 0.00

Overseas Corporate Bodies 0 0 0 0.00 0 0 0 0.00 0.00

Foreign Nationals 0 0 0 0.00 0 0 0 0.00 0.00

Clearing Members 0 0 0 0.00 0 0 0 0.00 0.00

Trusts 0 0 0 0.00 0 0 0 0.00 0.00

Foreign Bodies- D R 0 0 0 0.00 0 0 0 0.00 0.00

Sub-total(B)(2):- 0 0 0 0.00 0 0 0 0.00 0.00

Total Public Shareholding (B)=(B)

(1)+(B)(2)

0 0 0 0.00 0 0 0 0.00 0.00

C. Shares held by Custodian for

GDRs & ADRs

0 0 0 0.00 0 0 0 0.00 0.00

Grand Total (A+B+C) 0 1776728 1776728 100.00 0 1776728 1776728 100.00 0.00

ii) Shareholding of Promoter:

S.

No.

Shareholder’s

Name

Shareholding at the beginning of the year

[as on 01-04-2014]

Shareholding at the end of the year [as on

31-03-2015]

% change in

shareholding

during the year

No. of

Shares

% of total

Shares of the

company

% of Shares

Pledged/

encumbered tototal shares

No. of

Shares

% of total

Shares of

the com-pany

% of Shares

Pledged/encum-

bered to totalshares

% change in

shareholding

during the year

1. Coal India

Limited

1776728 100 1776728 100 nil

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

S. No. ParticularShareholding at the beginning of the

year [as on 01-04-2014]

Cumulative Shareholding during the

year [2014-2015]

No. of shares % of total shares ofthe company

No. of shares % of total shares ofthe company

1. At the beginning of the year 1776728 100 1776728 100

2. Datewise Increase/Decrease in Promot-ers Shareholding during the year specify-

ing the reason for increase/decrease (e.g.allotment/transfer/bonus/sweat equity

etc);

No Change

3. At the end of the year 1776728 100 1776728 100

iv.) Shareholding pattern of top ten Shareholders: (Other than Directors, Promoters and Holders

of GDRs and ADRs):

S. No. For Each of the Top 10 Shareholders Shareholding at the beginning of the year

[as on 01-04-2014]

Shareholding at the end of the Year

[as on 31-03-2015]

1. - - - - -



ANNUAL REPORT 2014-15 _________________________________________________________

82

v) Shareholding of Directors and Key Managerial Personnel:

S. No.

Shareholding of each Direc-

tors and each key ManagerialPersonnel

Shareholding at the beginning of the year

[as on 01-04-2014]

Cumulative Shareholding during the

year [2014-2015]

No. of Shares % of total Shares of

the company

No. of Shares % of total Shares of

the company

1. Shri T. K. Nag, CMD(Appointed

w.e.f. 30.09.14)

At the beginning of the year 0.00 0.00 0.00 0.00

Datewise Increase/Decrease inPromoters Shareholding during

the year specifying the reasons

for increase/decrease (e.g. allot-

ment / transfer / bonus / sweat

equity etc.):

Transfer

01/01/2015

At the end of the year 1 0.00 1 0.00

2. Ms. Shantilata Sahu, CMD

(Addl. Charge) till 29.9.2014

Director (Perosonnel)


Datewise Increase/Decrease in

Promoters Shareholding during

the year specifying the reasonsfor increase/decrease (e.g. allot-ment / transfer / bonus / sweat

equity etc.):

- - - -

At the end of the year 0.00 0.00 0.00 0.00

3. Shri A. D. Mathur, Direc-

tor (Technical)(ceased on

31.01.2015)







equity etc.):


4. Shri A. K. Pandey, Director

(Finance)




the year specifying the reasonsfor increase/decrease (e.g. allot-


equity etc.):





83

5. Shri Gunadhar Pandey,

Director (Technical)(Appointed

w.e.f 01.02.15)







equity etc.):


6. Shri Vivek Bharadwaj, Director



Promoters Shareholding duringthe year specifying the reasons


ment / transfer / bonus / sweatequity etc.):


7. Shri B. K. Saxena, Director





for increase/decrease (e.g. allot-ment / transfer / bonus / sweat

equity etc.):


8. Shri S. J. Sibal, Director


Datewise Increase/Decrease inPromoters Shareholding during




equity etc.):


9. Shri A. K. Gupta, Director







equity etc.):




ANNUAL REPORT 2014-15 _________________________________________________________

84

10. Shri D.H. Lalwani, Compa-

ny Secretary (ceased w.e.f.

12.12.14)







equity etc.):


11. Shri D.K. Sharma, Company

Secretary (Acting) (Appointed

w.e.f. 12.12.14)



Promoters Shareholding duringthe year specifying the reasons



equity etc.):


vi) Indebtedness

Indebtdedness of the Company including interest outstanding/accrued but not due for payment

Indebtedness at the beginning of the nancial year

Secured loansexcluding

deposits

Unsecured

LoansDeposits

Total In-

debtedness

i) Principal Amount Nil Nil Nil Nil

ii) Interest due but not paid Nil Nil Nil Nil

iii) Interest accrued but not due Nil Nil Nil Nil

Total (i+ii+iii) Nil Nil Nil Nil

Change in Indebtedness during the nancial year

Addition Nil Nil Nil Nil

Reduction Nil Nil Nil Nil

Net Change Nil Nil Nil Nil

Indebtedness at the end of the nancial year

i) Principal Amount Nil Nil Nil Nil

ii) Interest due but not paid Nil Nil Nil Nil

iii) Interest accrued but not due. Nil Nil Nil Nil

Total (i+ii+iii) Nil Nil Nil Nil




85

vii) Remuneration Of Directors And Key Managerial Personnel:

A. Remuneration to Managing Director, Whole-Time Directors and/or Manager (in Rupees)

S.N Particular of Remuner-

ation

Name of MD/WTD/Manager Total

Amount

Shri. Tapas

Kumar Nag,

CMD, NCL

(Assumed

change

w.e.f.

30/09/2014.)

Ms. Shantilata

Sahu, Director

(Personnel)

Whole Year.

(Held Addition-

al Charge of

CMD, NCL till

29/09/2014.)

Shri. Niranjan Das (Director/

Technical) till 02/10/2014.

Ceased to be Director (Tech.)

w.e.f. 02/10/2013 vide letter

no. 21/03/2007-ASO dated 3rd

November 2014 issued by Shri

Sanjib Bhattacharya, Under

Secretary to the Govt. of India,

Ministry of Coal.

Shri

Akhileshwar

Dayal Ma-

thur, Director/

Techni-

cal(Oper-

ations) till

31/01/2015

Shri Gunadhar

Pandey, Direc-

tor(Technical)

(Assumed Charge

w.e.f. 01/02/2015).

(Remuneration

paid at ECL)

Shri Arun Kumar

Pandey, Director

(Finance).

Ceased to be

Dir.(Fin.) on

31/03/2015.

1. Gross salary

(a) Salary as per provi-

sion contained in section

17(1) of the Income-Tax Act, 1961

1107043 2548203 1518675 1960439 372750 2400209 9907319

(b) Value of perquisites

u/s 17(2) Income-tax

Act, 1961

83028 99140 59729 99867 25896 147765 515425

(c) Prot in lieu of salary

under section 17(3)

Income- tax Act, 1961

_ _ _ _ _ _ _

2. Stock Option - - - - -- - -

3. Sweat Equity - - - - - - -

4. Commission

- as% of prot - others, specify

- - - - - - -

5. Others, please specify - - - - - - -

Total(A) 1190071 2647343 1578404 2060306 398646 2547974 10422744

B. Remuneration to Other Directors:

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

1. Independent Directors Shri Surinder Jit Sibal Shri Akshay Kumar Gupta

Fee for attending board committee meetings 135000 150000 285000

Commission - - -

Others, please specify 315000 240000 555000

Total (1) 450000 390000 840000

2 Other Non-Executive Directors: Shri Vivek Bharadwaj Shri Bipin Kumar Saxena

Fee for attending board committee meetings - - -

Commission - - -

Others, please specify - - -

Total (2) - - -

Total (B)= (1+2) 450000 390000 840000



ANNUAL REPORT 2014-15 _________________________________________________________

86

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

S.No Particular of Remuneration Key Managerial Personnel Total Amount

Shri Arun KumarPandey, CFO *

(superannuatedfrom service on

31/03/2015)

Shri Dayar-am Harpaldas

Lalwani (Ceasedto be Company

Secretary w.e.f.

afternoon of

12/12/2014)

Shri DevendraKumar Sharma

(Assumed Chargeas Company

Secretary (Actg)

w.e.f. afternoon of

12/12/2014)

1. Gross salary

(a) Salary as per provisions contained in

section 17(1) of the Income-tax Act, 1961- 1962395 173833 2136228

(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 - 127179 11537 138716

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

- - - -

2. Stock Option - - - -

3. Sweat Option - - -

4. Commission- as % of prot others, specify… - - - -

5. Others, please specify

Total - 2089574 185370 2274944

* No additional remuneration has been paid to act at the capacity of CFO, NCL.

viii. Penalities/ Punishment/ Compounding Of Offences:

Type Section of the Companies

Act

Brief Description Details of penalty/

punishment/

compounding fees

imposed

Authority (RD/NCLT/

COURT)

Appeal made

if any (give

details)

A. COMPANY

Penalty

NonePunishment

Compounding

B. DIRECTORS:

Penalty

NonePunishment

Compounding

C. OTHER OFFICERS IN DEFAULT:

Penalty

NonePunishment

Compounding




87

ANNEXURE V to DIRECTORS REPORT

AUDITED PERFORMANCE OF NCL AGAINST MOU 2014-15

Sl. No. Evaluation Criteria Unit Weight

(in %)

MoU Target Actual

2014-15

Raw

Score

Compos-

ite Score

Documentary

evidence &

Source/origin

of documents

Excellent Very

Good

Good Fair Poor

1 2 3 4 5

1 Static / Financial Pa-rameters

Annual Report

& Accounts

( i) Growth/Size/Activity 20

(a) Sales Turnover (NetSales) Rs. Crs.

10 10041.59 9882.57 9388.44 8919.02 8473.07 9452.58 2.87 0.29 Audited Annual

Accounts

(b) Gross Operating Margin

Rate

%age10 35.62 34.40 34.40 31.05 29.49 31.97 3.43 0.34 Audited Annual

Accounts

(ii) Protability 12

(a) PAT/Net Worth%age

5 24.93 23.87 22.68 21.54 20.47 36.31 1.00 0.05 Audited Annual

Accounts

(b) EBITDA/Net Block%age

7 186.67 178.79 169.85 161.36 153.29 161.59 3.97 0.28 Audited Annual

Accounts

(iii) Costs & Output Ef-ciency

10

(a) Sales Turnover/Net Block%age

10 427.82 421.05 400.00 380.00 361.00 375.15 4.26 0.43 Audited Annual

Accounts

(iv) Liquidity/Leverage 8

(a) Average Collection Periodfor Trade Receivables

No. of

Days

8 44.87 45.45 47.72 50.11 52.61 21.87 1.00 0.08 Audited Annual

Accounts

Sub Total 50 1.464

1. Impact of Penalty imposed by Competition Commission of India for Rs. 1773.05 crores has not been considered in the Targets of 2014-15 BE since the same has been appealedagainst by the company in the Competition Appellate Tribunal. Impact of the above penalty, if paid in 2014-15 will be excluded and accordingly the nancial parameters (P&L a/cand Balance Sheet) will be recasted at the time of evaluation of MoU 2014-15.

2. For the purpose of calculation of Average Collection Period of Trade Receivables, Gross Sales as appearing in P&L A/c in Audited Accounts (inclusive of Excise duty and all otherlevies & taxes) and Average Trade Receivables as appearing in the Audited Accounts (net off provision for bad & doubtful debts) have been considered.

3. Accounting head considered for Computation of Gross Operating Margin has been given in Annexure-A and the same methodology will be considered at the time of evaluation.

4. Impact of MMDR bill if becomes an act and implemented, its impact will be excluded.

2 Dynamic Parameters

( i) Corporate SocialResponsibility &Sustainability

3

( a) Inf rast ructure D evel-opment in Villages ofBackward Districts.

No. ofworks

1 5 4 3 2 1 5 1 0.0100 CSR Re-cords

(b) Skill Develop mentProgramme for Villagers/PAPs/ EconomicallyWeaker Section ofSociety/Women throughExternal Agencies

Nos. ofper-sons

1 300 250 200 150 100 471 1 0.0100 -do-

(c) C onst ruct ion o f Ra inWater HarvestingFacilities

No. ofworks

1 5 4 3 2 1 5 1 0.0100 -do-

Annexure - II



ANNUAL REPORT 2014-15 _________________________________________________________

88

( ii ) Research &Development

2

(a) A site specic study ondistance between toe ofShovel-Dumper Dump

& Dragline Dump withconsideration of Safety& Economical Designof both Shovel-DumperDump & Dragline Dumpin all 6 Dragline Minesof NCL by BIT, Mesra,Ranchi. (3-year Project).Activity during 2014-15: Completion of Study& Submission of DraftReport.

Date

1 15 Feb’15 15Mar’15

31Mar’15

- - 12 Feb‘15

1 0.0100 Study Report

(b ) D eve lopm ent o f i n-linecylinder block boringmachine for Engines atCWS, Jayant

0.25 Feb’15 Mar’15 - - - 15 Feb‘15


(c ) Sof tw ar e Deve lopm entto analyse & viewequipmentwise daily pro-duction & maintenancedata of Major HEMMs

0.25 Jan’15 Feb’15 Mar’15 - - 8 July‘14


(d) Award of Work forBenchmarking of Diesel/Power Consumption byan Independent Agencysuch as Bureau ofEnergy Efciency (BEE),

Tata Energy ResearchInstitute (TERI), CMPDIetc.

Date

0.5 Dec’14 Jan’15 Feb’15 15Mar’15

31Mar’15

10 Sept‘14


(iii) Initiatives for Growth 5.5

(a) A ppro va l o f EP R forJAYANT OCP (10 to 20MTPA)

Date

1 14 Feb’15 28Feb’15

15Mar’15

31 Mar’15 - 20 Jan‘15

1 0.0100 CMPDILReport

(b ) P repara tion o f MasterPlan for SingrauliCoalelds

1 14 Feb’15 28Feb’15

15Mar’15

31 Mar’15 - 20 Jan‘15

1 0.0100 CMPDILReport

(c ) P repara tion o f EPR fo rBlock-B OCP (3.5 to 6.0MTPA)

0.5 Dec’14 Jan’15 Feb’15 Mar’15 - Dec ‘14 1 0.0050 CMPDILReport

(d) Notication u/s 9 of CBA

Act 1957 for Acquisi-tion of 180 Ha land forBina-Kakri Amalgamation

Project (10 MTPA)

1 14 Feb’15 28Feb’15

15Mar’15

31 Mar’15 - 17 Dec‘14

1 0.0100 GazetteNotication

(e ) Possess ion o f TenancyLand for Block-B OCP

Ha.1 15 10 5 - - 17.926

Ha1 0.0100 Self Decla-

ration

(f) Risk Management 1

1 Opera tiona lizat ion o f R iskManagement throughan Independent Head[GM(Safety)] Reporting to

CMD & Board of Directorsthrough D(F)

Date

0.5 14 Feb’15 28Feb’15

15Mar’15

31 Mar’15 - 20 Jan‘15


2 Development of RiskIndicators under RiskManagement

0.5 14 Feb’15 28Feb’15

15Mar’15

31 Mar’15 - 12 Feb‘15





89

(iv) Project Management &

Implementation

4.5

(a) Milestones 2.5

1 40% Construction of 4MTPA CHP at Krishnash-ila (LOA issued on28.09.2011 & Site handedover for Construction on24.12.2011)

0.25 15 Jan’15 31Jan’15

15Feb’15

28 Feb’15 31Mar’15

Dec ‘14 1 0.0025 E&M Report

2 Te nde ring for Co nstruc-tion of 5 MTPA Incremen-tal CHP at Nigahi (FirstTendering was done in

Sept’13 but Tender wascancelled due to Techni-cal Reasons)

Date

0.25 15 Jan’15 31Jan’15

15Feb’15

28 Feb’15 31Mar’15

Nov ‘14 1 0.0025 E&M Report

3 Te ndering fo r Co nstru c-tion of 6 MTPA Incremen-tal CHP at Khadia (FirstTendering was d one inSept’13 but Tender wascancelled due to Techni-cal Reasons)

0.25 15 Jan’15 31Jan’15

15Feb’15

28 Feb’15 31Mar’15


4 50% Constructionof 3.5 MTPA CHP at

Block-B (LOA issued on21.08.2013 & Site handedover for Construction on03.10.2013)

0.25 15 Dec’14 31Dec’14

15Jan’15

31 Jan’15 28Feb’15


5 Supply & Commissioningof 10 no. 100T Dumpersin NCL (Tendering wasdone in Jan’13 & SupplyOrder placed in Aug’13)

0.25 Sep’14 Oct’14 Nov’14 Dec’14 Jan’15 Aug ‘14 1 0.0025 ExcavationDeptt. Report

6 Award of Work for Supply& Commissioning of 05

nos. 410 HP Dozers inNCL (Tender Floated,date of opening of Part-Iof Tender is 28.03.2014)

0.25 15 Mar’15 31Mar’15

- - - Dec ‘14 1 0.0025 ExcavationDeptt. Report

7 Tendering & Awardof Work for Supply &Commissioning of 02nos. 2.8 cum HydraulicBackhoe Shovels in NCL(Part-I of Tender openedon 10.12.2012, TCRunder Cancellation, FreshTendering to be done)

0.25 15 Mar’15 31Mar’15

- - - 05 Mar‘15

1 0.0025 ExcavationDeptt. Report



ANNUAL REPORT 2014-15 _________________________________________________________

90

8 NIT, Tendering & Award

of Work for Supply &

Commissioning of 02 nos.

280 HP Graders in NCL

(Pre-NIT Meeting Sched-uled on 28.03.2014)

0.25 15 Mar’15 31

Mar’15

- - - NIT &

Ten-

dering

done.

Awarddue.

5 0.0125 Excavation

Deptt. Report

9 Supply & Commissioning

of 02 nos. 60 KL Water

Tanker in NCL (Tender

Floated, Date of Opening

of Part-I of Tender is

24.03.2014)

0.25 Feb’15 Mar’15 - - - 26 Feb

‘15

1 0.0025 Excavation

Deptt. Report

10 Ten derin g & Awa rd

of Work for Supply &

Commissioning of 02 nos.

8 T/10 T Cranes in NCL

(Part-I of Tender openedon 10.09.2013, Case

under delibration by TC

for Price Bid Opening)

0.25 15 Mar’15 31

Mar’15

- - - 10 Feb

‘15

1 0.0025 Excavation

Deptt. Report

(b) CAPEXRs.Crs.

1 600 575 375 175 100 715 1 0.0100 Audited Annu-

al Accounts

(c ) Inc remental P roduction

from On-going ProjectsMT

1 1.0 0.8 0.6 0.4 0.2 2.7 1.0 0.0100 CP Deptt.

Report

(v) Productivity & Internal

Processes

4

(a) S ystem Ca pacity

Utilisation%age

1 70 68 66 64 62 69.58 1.21 0.0121 IED Report

(b) Customer Satisfaction 3

1 Joint Agreed 3rd. Party

Sampling at Despatch

end for Supply of ACQ

to Power Utilities under

FSA complying Govt.

Directives

%age

0.5 99 98 97 96 95 100 1 0.0050 S&M Deptt.

Report

2 Sized Coal Despatch to

Power Sector by Rail

1 99 98 97 96 95 100 1 0.0100 S&M Deptt.

Report

3 W eighme nt on E lectronic

Weighbridge before Des-

patch to Power Sector

by Rail

1 99 98 97 96 95 100 1 0.0100 E&M Deptt.

Report

4 Commitment to Supply

Annua l Contract Quan-

tity (ACQ) under FSA to

Power Utilities complying

directives of Govt.

MT

0.5 64 63 62 61 60 65 1 0.0050 S&M Deptt.

Report




91

(vi) Technology, Quality,

Innovative Practices

5

(a ) NEW TE CHNO LOG Y :Preparation of NIT, Ten-dering & Award of Work

for Introduction of CoalNet Phase-I (Finance,Payroll & PIS Modulesat HQ)

Date

1 15 Mar’15 31Mar’15

- - - Award ofwork not

done

5 0.0500 System Deptt.Report

(b ) IS O : Tra ining P ro-grammes on IMS (ISO9001, ISO 14001, ISO18001 & SA 8000)

Nos.

1 2 1 - - - 2 1 0.0100 IMS Deptt.Report

(c ) Install ati on o f C CT V inall Road Weighbridges &Other important Locationsin Mines

Date

1 Dec’14 Jan’15 Feb’15 Mar’15 - Dec ‘14 1 0.0100 E&T Deptt.Report

(d ) Intr oduc tion o f GPSbased Truck MonitoringSystem in NCL

Date1 Dec’14 Jan’15 Feb’15 Mar’15 - July ‘14 1 0.0100 E&T Deptt.

Report

(e ) SAFETY : Tra in ing o fDumper Operators onSimulator

Nos.1 200 150 100 50 - 356 1 0.0100 CETI Report

(vii) Human Resource Man-

agement (HRM)

6

(a) Certied Training in

Project ManagementNos.

ofExecu-tives

0.25 60 50 40 30 20 60 1 0.0025 HRD Report

(b) Training on Civil/Pur-chase/Services ContractManagement

0.25 60 50 40 30 20 67 1 0.0025 HRD Report

( c) Tra in ing in Env ironm entManagement/ForestManagement/ Land Acquisi tion

0.25 20 15 10 5 - 31 1 0.0025 HRD Report

(d) Risk Man ageme ntTraining

0.25 30 25 20 15 10 32 1 0.0025 HRD Report

(e) Human Resource Man-

agement (HRM)5 As per Enclosure 01 1.315 0.0657

3 Sector Specic /Enter -prise Specic Parameters

20

(i ) C oa l P roduct ionMT

9 77.50 77.00 73.15 69.49 66.02 72.48 3.18 0.2864 Audited Annu-al Accounts

(ii) OfftakeMT

9 78.50 78.00 74.10 70.40 66.88 73.69 3.11 0.2799 Audited Annu-al Accounts

(iii) AFFORESTATION : TreePlantation

LakhTrees

1 2.00 1.80 1.60 1.40 1.20 5.09 1.00 0.0100 Forest Deptt.Report

( iv) Output per Manshift

(O.M.S.)#Tes.

1 13.75 13.50 13.25 13.00 12.75 13.76 1.00 0.0100 Audited Annu-

al Accounts Sub Total 50 0.9541

Grand Total 100 2.4182

# Note1- Calculation of Output per Manshift (OMS) is based on Specic Gravity of Coal and Average Stripping Ratio of mines as per Project Reports (PRs) dt. 6th Oct. 2010 both

for Target and Actual purpose. The ASR taken for OMS calculations are in variation with ASR taken for calculation of OBR Adjustment in respect of some mines.Note-2: Non compliance of Corporate Governance will be penalized by way by negative marking and as specied in DPE’s OM No.3/19/2013-DPE(MoU) dt.11th Nov.2013

Note-3 Certicate regarding implementation of guidelines issued by DPE as per OM No.DPE/14(38)/1-=Fin dated 28th June 2011 is required from Auditors.

Non compliance of DPE’s guidelines determined on the basis of certicate will be panlised upto 1 mark (score may increased by 0.04) which is at the discretion of task force at the

time of evaluation.Note-4: for achieving offtake target, average 26.3 rakes/ day availability is to be ensured from Indian Railways.

Overall Grade Very Good



ANNUAL REPORT 2014-15 _________________________________________________________

92

ENCLOSURE -1

HRM PERFORMANCE EVALUATION UNDER MOU : 2014-15

Sl.

No.HRM-PERFORMANCE INDICATORS Unit

Weight

(in %)

MoU Target

Actual

Perfor-

mance

Self

Evalua-

tion Raw

Score

Compsite

Score

Excel-

lent

Very

Good

Good Fair Poor

1 2 3 4 5

A. Competency & Leadership Development

1(a) %age actualisation of Training Plan %age f

ulllment

10 90 80 70 60 50 100.30 1 0.1000

1(b) Training Days per employee per year days/

employee

10 2.5 2.0 1.5 1.0 0.5 2.72 1 0.1000

2. Training Expenses as %age of employee cost %age of

employee

cost

10 0.25 0.20 0.15 0.10 0.050 0.25 1 0.1000

3. %age fulllment of Training Plan for Multi-Skilling / Skill

upgradation of Non-Executives

%age

fulllment

10 90 80 70 60 50 79.30 2.07 0.2070

B. Performance Management

5. Presence of Balance Score Card based Performance

Management System for Executives

Yes / No 10 Yes — — — No Yes 1 0.1000

C. Recruitment, Retention & Talent Management

6. Manpower Rationalisation through Redeployment

(Redeployment %age)

%age of

manpower

5 0.20 0.15 0.10 0.05 — 0.576 1 0.0500

7. Attrition as ̂age of total employees %age 5 1.00 0.99 0.98 0.97 0.96 0.103 1 0.0500

8. Presence of Mentorship Programme Yes / No 5 Yes — — — No Yes 1 0.0500

9. Formulation/Implementation of systems for

management of Talents, growth opportunities etc.

(a) Training on Managerial Effectiveness Nos. of

Executives

5 20 15 10 5 — 42 1 0.0500

(b) Training on Leadership Competencies Nos. of

Executives

5 20 15 10 5 — 40 1 0.0500

D. Enabling Creativity & Innovation

10. Nos. of Nominations/entries submitted for National Awards

for Individuals

No. of

Persons

5 1 — — — — 0 5 0.2500

E. Employee Relations & Welfare

11. Effectiveness of Grievance Redressal System - %age of

grievances settled vis-a-vis received during the year

%age

Settlement

5 70 60 50 40 30 68.42 1.158 0.0579

12. Organising Sports Events/Cultural Programmes for

Employees, Schools & nearby Villagers

Nos. of

Events

5 20 15 10 5 — 26 1 0.0500

13. Presence of Group Gratuity Scheme Yes / No 5 Yes — — — No Yes 1 0.0500

14. Number of structured meetings with employees’

representatives

No. of

Meetings

5 6 5 4 3 2 6 1 0.0500

Grand Total 100 1.3149

NB : Total score out of 100 awarded on HRM to CPSE will be converted into score out of 5 in MoU on pro-rata basis.




93

PRAKASH & SANTOSHCHARTERED ACCOUNTANTS

To,

The Board of Directors,

Northern Coalelds Limited,

Singrauli.

Dear Sir,

Sub: Audit of performance against MOU 2014-2015

With reference to your letter regarding our appointment for audit of performance against MOU 2014-

2015, we report that:-

1. The achievement stated in attached Performance Evaluation Sheet with respect to Static/

Financial, Dynamic/Non Financial, Sector Specic/Enterprise Specic Parameters are calculated

in terms of guidelines for MOU for the year 2014-15 issued by Department of Public Enterprises,

Ministry of Heavy Industries and Public Enterprises vide ofce memorandum No.3/19/2013-

DPE( MOU) dated 11-11-2013.

2. The achievement stated against Static/ Financial, Dynamic/Non nancial, Sector Specic/

Enterprise Specic Parameters are rectied from means of verication stated in respective

parameters and found correct to the best of our knowledge.

3. Guidelines issued by DPE on Corporate Governance are complied with by the Company.

4. As informed to us that guidelines issued by DPE are implemented by the Company.

For Prakash & Santosh

Chartered Accountants

(Firm Reg. No. 000454C)

Sd/-

(CA Vikas Deep)

Partner M. No.: 077343

Dated.30 May, 2015

Place: Singrauli

Head Ofce : ‘Rolland Complex’ Flat No. 8, Upper Floor, Westcott Building, 37/17, The Mall, Kanpur – 208 001

Phones: 3012035, 3912995 Email: pra [email protected]; [email protected]

Branches : MORADABAD, ORAI, SAMBHAL, DELHI



ANNUAL REPORT 2014-15 _________________________________________________________

94

PRAKASH & SANTOSHCHARTERED ACCOUNTANTS

To,

The Members,

M/s Northern Coalelds Limited

Singrauli

CERTIFICATE

1. We have reviewed the compliance of conditions of Corporate Governance by Northern CoaleldsLimited for the year ended 31st March, 2015 although Clause 49 of the Listing Agreement is

not applicable to the Company.

2. The compliance of conditions of Corporate Governance is the responsibility of the Management.

Our examination was limited to procedures and implementation thereof, adopted by the

Company for ensuring the compliance of the conditions of Corporate Governance. It is neither

an audit nor an expression of opinion on the nancial statement of the Company.

3. We have conducted our review on the basis of the relevant records and documents maintained

and produced to us for review and the information and explanation given to us by the Company.

4. In our opinion and to best of our information and according to the explanations given to us andthe representations made by the Directors and the Management, we certify that the Company

has complied with the conditions of Corporate Governance except the following condition:-

The Company has not complied with the condition of 50% independent Directors in the Board

during the period under consideration.

5. We further state that such compliance is neither an assurance as to the future viability of the

Company nor the efciently or effectiveness with which the Management has conducted the

affairs of the Company.

For PRAKASH & SANTOSH


Sd/-(CA SANTOSH GUPTA)

Partner

Membership No. 016304

ICAI Firm Reg. No. 00454C

Place : Singrauli

Date : 29th April, 2015

Head Ofce : ‘Rolland Complex’ Flat No. 8, Upper Floor, Westcott Building, 37/17, The Mall, Kanpur – 208 001

Phones: 2303565, 3912995, Fax: 0512-3012035, Email: [email protected]

Branches : MORADABAD, ORAI, SAMBHAL, DELHI




95

BALANCE SHEET AS AT 31ST MARCH, 2015(Rs. in crore)

As at As at Note 31-03-2015 31-03-2014

————— ——————— ———————I EQUITY AND LIABILITIES

(1) Shareholders’ Fund(a) Share Capital 1 177.67 177.67(b) Reserves & Surplus 2 5,699.69 9,076.42

————— 5,877.36 ————— 9,254.09(2) Non-Current Liabilities

(a) Long Term Borrowing 3 — —(b) Deferred Tax Liabilities (Net) — —(c) Other Long Term Liabilities 4 141.71 132.00(d) Long Term Provisions 5 6,233.49 5,086.04

————— 6,375.20 ————— 5,218.04(3) Current Liabilities

(a) Short Term Borrowing 6 — —(b) Trade Payables 7 117.06 90.23(c) Other Current Liabilities 8 2,532.26 2,088.96

(d) Short Term Provisions 9 318.61 281.32————— 2,967.93 ————— 2,460.51

————— ————— Total 15,220.49 16,932.64

————— —————II ASSETS(1) Non-Current Assets

(a) Fixed Assets(i) Tangible Assets - Gross Block 10A 7,090.76 6,634.70

Less : Depreciation, Impairment & Provisi ns 4,643.09 4,418.30 Net carrying Value ————— 2,447.67 ————— 2,216.40

(ii) Intangible Assets - Gross Block 10A 142.80 143.88Less : Depreciation, Impairment & Provisions 70.76 62.95Net carrying Value ————— 72.04 ————— 80.93

(iii) Capital Work-in-Progress 10B 610.96 544.33 (iv) Intangible Assets under Development 10C 113.22 89.86

(b) Non-Current Investment 11 — 11.45 (c) Deferred Tax Assets (Net)* 413.47 342.01 (d ) Long Term Loans & Advances 12 106.35 74.82 (e) Other Non-Current Assets 13 6.22 3.15

(2) Current Assets(a) Current Investments 14 61.62 11.46(b) Inventories 15 835.91 893.19(c ) Trade Receivables 16 621.14 955.94(d) Cash & Bank balance 17 7,265.10 7,443.79(e) Short Term Loans & Advances 18 138.65 113.90(f) Other Current Assets 19 2,528.14 4,151.41

————— 11,450.56 ————— 13,569.69 ————— ————— Total 15,220.49 16,932.64

————— ————— Signicant Accounting Policies 33

Additional Notes on Accounts 34The Notes reffered to above form an integral part of Balance Sheet*Refer Note - 34 (2) (iv).

Sd/- Sd/- Sd/- Sd/-

(D.K.Sharma) (P.J. Mohan Rao) (P.S.R.K.Sastry) (T.K.Nag)

Company Secratary General Manager (Finance) Director (Finance) & C.F.O. Chairman-Cum Managing DirectorDIN- 07163164 DIN - 02219348

In terms of our separate report of even date

For Prakash & SantoshChartered Accountants

Firm Regn. No. 000454CSd/-

(CA. Santosh Gupta)

Dated : 25.05.2015 Partner

Place : Varanasi M. No.- 016304



ANNUAL REPORT 2014-15 _________________________________________________________

96

STATEMENT OF PROFIT & LOSSFor the Year ended 31st March, 2015

(Rs. Crores)

INCOME For the Year For the YearNote ended 31.03.2015 ended 31.03.2014

———— ————————— —————————

A. Sale of Coal, coke etc. 20 13,161.25 12,400.42Less: Excise Duty (657.22) (649.45)

Other Levies (3,051.45) (2,447.09) ————— —————Net Sales 9,452.58 9,303.88B. Other Operating Revenue 20 203.01 194.46 ————— —————Revenue from Operations (A+B) 9,655.59 9,498.34Other Income 21 1,112.53 1,011.42 ————— —————Total Revenue 10,768.12 10,509.76

————— —————EXPENSES

Cost of Material Consumed 22 1,578.70 1,590.52

Change in inventories of nished goods work in progress and Stock in trade 23 105.10 144.68Employee benet expenses 24 1,800.47 1,711.24Power & Fuel 249.61 241.28Corporate Social Responsibility Expenses 25 61.77 39.72Repairs 26 217.51 192.69Contractual Expenses 27 1,211.31 1,040.33Finance Costs 28 0.26 15.45Depreciation/amortization/Impairment 10A 382.34 360.69Provisions 29 168.16 774.34Write off 30 - -Overburden Removal Adjustment 977.03 761.16Other Expenditure 31 326.86 270.11 ————— —————Total Expenses 7,079.12 7,142.21 ————— —————Prot before prior period, exceptional and extraordinary items and tax 3,689.00 3,367.55

————— —————Prior Period Adjustment { charges/ (Incomes) } 32 (24.47) 11.84Exceptional Items - -

————— —————Prot before extraordinary items and tax 3,713.47 3,355.71 ————— —————Extraordinary Items { charges/ (Incomes) } - -

————— —————Prot before Tax 3,713.47 3,355.71 ————— —————Less : Tax Expenses

- Current year 1,646.00 1,649.70- Deffered Tax (71.46) (304.44)

- Earlier years 4.76 2.43 ————— —————Prot after Tax 2,134.17 2,008.02

————— ————— Earnings per Equity share (in Rs. )

(Face Value of Rs. 1000/- per share)

- Basic 12,011.80 11,301.79- Diluted 12,011.80 11,301.79 Signicant Accounting Policies 33 Additional Notes on Accounts 34

The Notes referred to above, form an integral part of The Statement of Prot & Loss Account.

Sd/- Sd/- Sd/- Sd/- (D.K.Sharma) (P.J. Mohan Rao) (P.S.R.K.Sastry) (T.K.Nag)





(CA. Santosh Gupta)Dated : 25.05.2015 Partner





97

Cash Flow Statement (Indirect Method)(Rs. in Crores)

For the year ended March 31, ——————————————————

2015 2014 ———— ————I. CASH FLOW FROM OPERATING ACTIVITIES

Net Prot before taxation and extraordinary item 3,713.47 3,355.71 Adjustments for :Depreciation on Fixed Assets 372.05 360.69Interest /Dividend Income (1,038.41) (952.03)

Loss/ Prot on sale of F/Assets (0.80) 2.12Provisions and Write-off 194.12 774.34Overburden Removal Expenditure Adjustment 977.03 761.16

Adjustment for Foreign Exchange actuation - 9.27Interest & Financial Expenses 0.26 15.45

————— ————— Operating Prot before Working Capital Changes 4,217.72 4,326.71 ————— —————

Adjustment for :Receivables 280.67 131.66

Inventories 54.30 104.95 Current and Non Current Assets (Other than Fixed Assets) 1,682.00 (1,203.96) Current & Non-Current Liabilities 546.48 583.77 ————— ————— Cash Generated from Operations 6,781.17 3,943.13

————— ————— Income taxes Paid :

Income tax Paid (1,635.98) (1,700.63)Refund / Paid/ Adj. of Corporate tax of Earlier Years (190.00) 0.10

————— ————— Net Cash Flow from Operating Activities (A) 4,955.19 2,242.60 ————— ————— II. CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (715.06) (301.76) Proceeds From Sale of Equipments 7.72 4.85

Redeemption of Power Bonds 11.45 11.46Interest pertaining to Investing Activities 1,088.95 955.35Bank Deposit/Investment in Mutual Funds 218.34 448.93

————— ————— Net Cash used in Investing Activities (B) 611.40 1,118.83 ————— —————III. CASH FLOW FROM FINANCING ACTIVITIES

Repayment/ Increase of Unsecured Loans - (677.91) Interest pertaining to Financing Activities (0.26) (15.45) Dividend Paid (Including tax on Dividend ) (5,476.52) (3,208.12) ————— ————— Net Cash used in Financing Activities (C ) (5,476.78) (3,901.48) ————— —————

Net Increase in Cash and Cash Euivalents (A)+(B)+(C) 89.81 (540.05) Cash and Cash Equivalents (Opening Balance) 20.40 560.45

Cash and Cash Equivalents (Closing balance) 110.21 20.40Component of Cash and Cash Euivalent: Cash and Cheque in hand 0.02 0.02Balance with Scheduled Banks:

Current Account 110.19 20.38Term Deposits - - ————— ————— Cash and Cash Euivalents (Closing balance) 110.21 20.40 ————— —————



As per our report annexed







ANNUAL REPORT 2014-15 _________________________________________________________

98

Statement of Standalone Audited/Unaudited ResultsFor The Period Ended 31st March, 2015

Part-I (Rs. in Crores)

Particulars

3 months

ended

(31/03/2015)

Preceding

3 months

ended

(31/12/2014)

Corresponding

3 months end-

ed (31/03/2014)

Year to

date for the

period ended

(31/03/2015)

Year to date

for the pe-

riod ended

(31/03/2014)

Audited Unaudited Audited Audited Audited

1. Income from Operations

(a) Net Sales / Income fron Operations(Net of Excise Duty)

2,731.74 2,380.72 2,635.41 9,452.58 9,303.88

(b) Other operating income 59.03 48.07 62.96 203.01 194.46

Total Income from Operations (Net) 2,790.77 2,428.79 2,698.37 9,655.59 9,498.34

2. Expenses

(a) Cost of material consumed 452.70 381.84 512.42 1,578.70 1,590.52

(b) Purchase of Stock-in-trade – – – – –

(c ) Change in inventories of Finished goods,work-in-progress & stock-in-trade

(260.90) (14.52) (37.66) 105.10 144.68

(d) Employees Benets Expenses 490.57 471.34 466.13 1,800.47 1,711.24

(e) Depriciation & amortisation expenses 102.89 109.69 85.92 382.34 360.69

(f) Power & Fuel 67.18 63.18 62.31 249.61 241.28

(g) C S R Expenses 34.49 6.42 18.43 61.77 39.72

(h) Repairs 66.64 54.18 52.57 217.51 192.69

(i) Contractual Expenses 464.40 308.10 287.95 1,211.31 1,040.33

(j) Overburden removal adjustment 327.24 271.68 433.71 977.03 761.16

(f) Other Expenses 196.08 123.28 779.04 495.02 1,044.45

Total Expenses 1,941.29 1,775.19 2,660.82 7,078.86 7,126.76

3. Prot/ (Loss) from operations before other

income, Finance Costs and Exceptional

items (1-2)

849.48 653.60 37.55 2,576.73 2,371.58

4. Other income 250.73 289.21 229.93 1,112.53 1,011.42

5. Prot/ (Loss) from Ordinary activities before

Finance cost & Exceptional items (3+4)1,100.21 942.81 267.48 3,689.26 3,383.00

6. Finance Cost 0.08 0.05 0.88 0.26 15.45

7. Prot/ (Loss) from Ordinary activities after

Finance cost but before Exceptional items

(5-6)

1,100.13 942.76 266.60 3,689.00 3,367.55

8. Exceptional Items (Prior period Adjustment) 20.55 (1.18) (8.51) 24.47 (11.84)

9. Prot/ Loss from Ordinary Activities

before tax (7+8)

1,120.68 941.58 258.09 3,713.47 3,355.71

10. Tax Expense 503.79 407.29 233.06 1,579.30 1,347.69

11. Net Prot/ Loss from Ordinary Activities

after tax (9-10)

616.89 534.29 25.03 2,134.17 2,008.02

12. Extraordinary Items (net of tax expenses) - - - - -13. Net Prot/ (Loss) for the Period (11-12) 616.89 534.29 25.03 2,134.17 2,008.02

14. Paid-up Equity Share capital(Face Value of Rs. 1000)

177.67 177.67 177.67 177.67 177.67

15. Reserve excluding revaluation reserves as perbalance sheet of previous accounting year

- - - - -

16. i Earnings per Share

(before extraordinary items)

a) Basic 3,472.06 3,007.16 140.88 12,011.80 11,301.79

b) Diluted 3,472.06 3,007.16 140.88 12,011.80 11,301.79

16. ii Earnings per Share(after extraordinary items)

a) Basic 3,472.06 3,007.16 140.88 12,011.80 11,301.79

b) Diluted 3,472.06 3,007.16 140.88 12,011.80 11,301.79




99

Select InformationFor The Period Ended 31.03.2015

Part-II (Rs. in Crores)

Particulars

3 months

ended

(31/03/2015)

Preceding

3 months

ended

(31/12/2014)

Corresponding

3 months end-

ed (31/03/2014)

Year to

date for the

period ended

(31/03/2015)

Year to date

for the pe-

riod ended

(31/03/2014)

Audited Unaudited Audited Audited Audited

A. Particulars of Shareholding

1. Public Shareholding

– Number of Shares NIL NIL NIL NIL NIL

– Percentage of shareholding

2. Promoters and promoter groupShareholding**

a) Pledged/Enucumbered

– No. of Shares NIL NIL NIL NIL NIL

– Percentage of Shareholding (as a % of the total shareholding of

promoter and promoter group)

– Percentage of shares (as a % of the total share capital of the

company)

b) Non-Encumbered

- No. of Shares 1776728 1776728 1776728 1776728 1776728

- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)

100% 100% 100% 100% 100%

- Percentage of shares (as a % of the total share capital of

the company)

100% 100% 100% 100% 100%










ANNUAL REPORT 2014-15 _________________________________________________________

100

Annexure-IX of Clause 41 of the Listing Agreement

Standalone/ Consolidates Statement of Assets & Liabilities

(Rs. in Crores) Particulars As at 31/03/2015 As at 31/03/2014

A EQUITY AND LIABILITIES

(1) Shareholders’ Fund

(a) Share Capital 177.67 177.67(b) Reserves & Surplus 5,699.69 9,076.42

————— —————Sub-total Shareholder’s Fund 5,877.36 9,254.09

————— —————(2) Non-Current Liabilities

(a) Long Term Borrowing - -

(b) Deferred Tax Liabilities (Net) - -

(c) Other Long Term Liabilities 141.71 132.00(d) Long Term Provisions 6,233.49 5,086.04————— —————

Sub-total Non-current Liabilities 6,375.20 5,218.04

————— —————(3) Current Liabilities

(a) Short Term Borrowing - -(b) Trade Payables 117.06 90.23(c) Other Current Liabilities 2,532.26 2,088.96(d) Short Term Provisions 318.61 281.32

————— —————Sub-total Current Liabilities 2,967.93 2,460.51

————— —————Total Euity & Liabilities 15,220.49 16,932.64

————— —————

B ASSETS

(1) Non-Current Assets

(a) Fixed Assets 3,243.89 2,931.52(b) Non-Current Investment - 11.45(c) Deferred Tax Assets (Net) 413.47 342.01(d ) Long Term Loans & Advances 106.35 74.82(e) Other Non-Current Assets 6.22 3.15

————— —————Sub-Total Non-Current Assets 3,769.94 3,362.95

————— —————(2) Current Assets

(a) Current Investments 61.62 11.46(b) Inventories 835.91 893.19(c ) Trade Receivables 621.14 955.94

(d) Cash & Bank balance 7,265.10 7,443.79(e) Short Term Loans & Advances 138.65 113.90(f) Other Current Assets 2,528.14 4,151.41

————— —————Sub-total Current Assets 11,450.56 13,569.69

————— —————Total Asets 15,220.49 16,932.64

————— —————




101

NOTES TO BALANCE SHEET

Note - 1

SHARE CAPITAL

(Rs. in Crores)

As at As at

31-03-2015 31-03-2014

—————— ——————

AUTHORISED

(i) 40,00,000 Cumulative 10% Redeemable Preferenceshares of Rs. 1000/- each 400.00 400.00

(ii) 100,00,000 Equity Shares of Rs.1000/- each 1,000.00 1,000.00————— —————

1,400.00 1,400.00————— —————

ISSUED, SUBSCRIBED AND PAID-UP

17,76,728 Equity sharesof Rs. 1000/- each fully paid-up 177.67 177.67

————— ————— 177.67 177.67

————— —————

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)

% of Total Shares

COAL INDIA LIMITED, The Holding Company and its Nominees 1776728 100%

Note 2 : During the year there is no change in the number of shares.



ANNUAL REPORT 2014-15 _________________________________________________________

102


Note - 2

RESERVES & SURPLUS

(Rs. in Crores)

As at As at 31-03-2015 31-03-2014 ——————— ———————RESERVES :Capital Reserve As per last Balance Sheet - - Add: Addition during the year - -Less: Adjustment During the year - -

————— —————- -

————— —————

Capital Redemption Reserve As per last Balance Sheet 400.00 400.00 Add: Addition during the year - -Less: Adjustment During the year - -

————— —————400.00 400.00

————— —————Corporate Social Responsibility Reserve As per last Balance Sheet 106.27 107.57 Add: Addition during the year - 38.42Less: Transfer to General Reserve 106.27 39.72

————— —————- 106.27

————— —————Sustainable Development Reserve As per last Balance Sheet 5.90 3.17 Add: Addition during the year - 3.08Less: Transfer to General Reserve 5.90 0.35

————— —————- 5.90

————— —————General Reserve As per last Balance Sheet 2,698.36 2,457.49 Add: Transfer from Prot & Loss Account 213.42 200.80

Add: Adjustment during the year 112.17 40.07 ————— —————3,023.95 2,698.36

————— —————Surplus in Prot & Loss Account As per last Balance Sheet 5,865.89 6,600.17Less : Depreciation Adjustment as per Companies Act, 2013 34.38 - ————— —————

5,831.51 6,600.17 Add:Prot after Tax during the period/year 2,134.17 2,008.02 ————— —————Prot & Loss Available for appropriation 7,965.68 8,608.19Appropriations:-Transfer to General Reserve (213.42) (200.80)Transfer to CSR Reserve - (38.42)Transfer to Sustainable Development Reserve - (3.08)Interim Dividend (4,563.99) (2,136.84)Proposed Dividend on Equity Shares - -Corporate Dividend Tax (912.53) (363.16)

————— —————2,275.74 5,865.89 ————— —————Miscellaneous Expenditure(To the extent not written off)Preliminary expenses - -Pre-Operational Expenses - - ————— —————

- -————— —————

Total 5,699.69 9,076.42————— —————

Company has adopted the CSR Policy for the Financial Year 2014-15, as per the provisions of the Companies Act 2013. Sustainable Development Activities have been merged

with CSR Activities, Balance amount of CSR Reserve and Sustainable Development Reserve as on 01.04.2014 have been transfereed to General Reserve, as these are no longer

required to be maintained.




103


Note - 3

LONG TERM BORROWING

(Rs. Crores)

As at As at 31-03-2015 31-03-2014 ——————— ———————Term Loan - -

Loan From Coal India Limited - - ————— —————TOTAL - - ————— —————

CLASSIFICATION 1

Secured - -

Unsecured - -

CLASSIFICATION 2

Loan Guaranteed by Directors & others

Particulars of Loan Nature of Guarantee As At31.03.2015

As At31.03.2014

- - - -



ANNUAL REPORT 2014-15 _________________________________________________________

104


Note - 4

OTHER LONG TERM LIABILITIES

(Rs. in Crores)

As at As at

31-03-2015 31-03-2014 ——————— ———————

Trade Payable - Deferred Credits - -Earnest Money/ Security Deposit 141.71 132.00Others - -

————— —————Total 141.71 132.00

————— —————CLASSIFICATIONSecured - -

Unsecured 141.71 132.00

Note - 5

LONG TERM PROVISIONS

(Rs. in Crores)

As at As at

31-03-2015 31-03-2014 ——————— ———————

For Employee Benets

- Gratuity* - -- Leave Encashment 213.18 195.54- Other Employee Benets# 142.62 134.71

OBR Adjustment Account** 5.405.14 4,428.11Mine Closure Expense*** 472.43 327.56For Others**** 0.12 0.12 ————— ————— TOTAL 6,233.49 5,086.04

————— —————

• Refer Foot of Note-19 “OTHER CURRENT ASSETS”.

** Survey Measurement of overburden removed during the period has been conducted at all the projects. The measured quantity ofoverburden has been considered for Overburden Removal Adjustment after considering the variance between reported quantity and themeasured quantity in respect of all the projects. (Refer Note 33- Accounting Policy 16.0).

An amount of Rs.977.03 Crores has been debited to Prot & Loss Account (Previous year Rs. 761.16 Crores) on account of variancein Current Ratio (O.B. : Coal) with standard ratio (O.B. : Coal), by giving corresponding effect to this extent in Long term provisions.

*** In accordance with guidelines issued by Ministry of Coal on 27th August, 2009 & subsequent guidelines, Mine Closure Plan hasbeen prepared by CMPDIL and approved by NCL Board for the Projects Jhingurda, Block B, Bina, Krishanshilla, Jayant, Khadia, Amlohri,Dudhichua, Kakri and Nigahi Project, on account of water quality management, air quality management, waste management, top soilmanagement of coal rejects from washeries, infrastructure, disposal of mining machinery and safety & security. Based on the approvedMine Closure Plan, provision has been made in the accounts for Rs. 449.43 crores upto 31.03.2015 (Previous year Rs. 304.56 Crores)& an amount of Rs. 449.43 crores including Interest received Rs. 34.06 crores (Previous year Rs. 8.10 Crores)has been deposited in anescrow account set up for this purpose.

In respect of Gorbi Project (Closed mine), an amount of Rs. 23.00 Crores as on 31.03.2015 (Rs. 23.00 Crores as on 31.03.2014) hasbeen provided as per the technical estimate received from CMPDIL towards mine closure expenses.

Based on the above, provision of Rs. 144.87 Crores (Previous year Rs. 115.73 Crores) including interest received Rs. 25.96 crores(Previous year Rs. 8.10 Crores)from Escrow Account has been made during the year ended 31.03.2015. (Refer Note-29).

**** A provision of Rs. 0.12 Crores (Previous year Rs. 0.12 Crores) had been made against loss on theft/damage of Fixed Assets.

# it includes provision of Rs. 27.12 Crores (Previous year Rs. 24.87 Crores) has been made against CMPF and Pension Fund on LongTerm Acturial Liability of Leave Encashment.



ANNUAL REPORT 2014-15 _________________________________________________________

106


Note - 8

OTHER CURRENT LIABILITIES

(Rs. in Crores)

As at As at

31-03-2015 31-03-2014

——————— ———————

Current Maturities of Long Term Borrowings

Loan From Coal India Limited - -Surplus Funds from Coal India Limited Current Account with Subsidiaries - - ———— ———— - -

———— ————

For Capital (including stores) 49.45 39.78 FOR EXPENSES :

Salary Wages & Allowances 263.98 235.02Power & Fuel 23.07 32.89Others 384.51 323.73 ———— ———— 671.56 591.64

———— ————STATUTORY DUES :

Sales Tax/ VAT 14.21 10.26Provident Fund & Pension Fund 20.28 19.95Central Excise Duty 18.80 23.97Royalty & Cess on Coal 14.01 88.25Stowing Excise Duty 20.75 20.15Clean Energy Cess 153.88 33.19Income Tax Deducted at Source 46.16 30.73Other Statutory Levies 689.28 291.87 ———— ———— 977.37 518.37

———— ————

OTHERS :

Security Deposit 100.04 75.41Earnest Money 18.49 19.80 Advance & Deposit from customers / others 713.63 840.51Interest Accrued and due on Borrowings - -Interest Accrued but not due on Borrowings - - Other Liabilities - -Expenses for Coal India Sports Promotion Association 1.72 1.75

-Unutilised Govt. Grant - 1.70 -Income received in advance - - ————— ————— 833.88 939.17

————— ————— TOTAL 2,532.26 2,088.96

————— —————




107


Note- 9

SHORT TERM PROVISIONS

(Rs. in Crores)

As at As at

31-03-2015 31-03-2014

—————————— ——————————

For Employee Benets

- Gratuity

- Leave encashment 21.58 18.50

- Ex-gratia/ PPLB 61.47 48.60

- PRP* 194.54 162.28

- Other Employee benets (Actuary) - -

For Proposed Dividend - -

For Corporate Dividend Tax - -

For Excise duty on Closing Stock of Coal 39.77 51.44

For Income Tax** 1,646.00 1,649.70

Less: Advance Income Tax/Tax deducted at source 1,646.00 1,649.70

————— - —————— - Others

-Wealth Tax *** 1.25 0.50

————— ————— TOTAL 318.61 281.32

————— —————

* The total liability of Rs. 255.84 crores since 2007-08 upto 31.03.2015 has been netted-off with Rs. 61.30 crores (i.e.75% amount ofPRP for the year 2007-08 to 2010-11) paid to the Employees (Executives) as Recoverable Advance. Provision of Rs. 27.93 Crores (Previ-ous year Rs. 39.69 Crores) has been made for the year ended 31.03.2015 in respect of PRP to the Employees (Executives) as per adviceof Coal India Limited. (refer Note-24).

** In the opinion of the management, provision made for Income Tax during the year Rs. 1,646.00 Crore (Prev. year Rs. 1,649.70 Crores)is considered adequate.

*** In the opinion of the management, provision made for Wealth Tax during the year Rs. 1.25 Crore (Prev. year Rs. 0.50 Crores) is con-sidered adequate.



ANNUAL REPORT 2014-15 _________________________________________________________

108

N O T E S

T O B

A L A N C E

S H E E T

N

o t e - 1 0 A

F I X E D A S S E T S

( R s . i n C r o r e s )

P A R T I C U L A R S

G R O S S B L O C K

D E P R E C I A T I O N

I M P A I R M E N T L O S S

T O T A L

C A R

R Y I N G V A L U E

A s o n

0 1 . 0 4 . 1 4

A d d i t i o n

d u r i n g

t h e y e a r

A d j . / S a l e s /

T r a n s f e r

d u r i n g t h e

y e a r

A s o n

3 1 . 0 3 . 1 5

A s o n

0 1 . 0 4 . 1 4

A d d i t i o n

d u r i n g

t h e y e a r

A d j . / S a l e s /

T r a n s f e r

d u r i n g t h e

y e a r

A s o n

3 1 . 0 3 . 1 5

A s o n

0 1 . 0 4 . 1 4

A d d i -

t i o n

d u r i n g

t h e y e a r

A d j . /

S a l e s /

T r a n s f e r

d u r i n g

t h e y e a r

A s o n

3 1 . 0 3 . 1 5

A s

o n

3 1 . 0 3 . 1 5

A s o n

3 1 . 0 3 . 1 4

T a n g i b l e A s s e t s

L a n d :

( a ) F r e e h o l d

0

. 0 4

0 . 0 4

-

-

-

-

-

-

-

0 . 0

4

0 . 0 4

( b ) O t h e r *

2 1

2 . 2 5

5 . 6 9

( 3 . 8 2 )

2 1 4 . 1 2

8 0 . 8 7

9 . 6 0

0 . 0 1

9 0 . 4 8

-

-

-

-

9 0 . 4 8

1 2 3

. 6 4

1 3 1 . 3 8

-

-

-

-

-

B u i l d i n g / W a t e r S u p p l y / R o a d & C u l v e r t s

5 4

1 . 5 3

5 . 4 2

( 0 . 1 0 )

5 4 6 . 8 5

1 9 7 . 3

4

9 . 9 6

1 3 . 7 8

2 2 1 . 0 8

-

-

-

-

2 2 1 . 0 8

3 2 5

. 7 7

3 4 4 . 1 9

P l a n t & E q u i p m e n t * *

5 , 6 2 8 . 9 5

5 8 7 . 8 8

( 1 6 0 . 7 6 )

6 , 0 5 6 . 0 7

3 , 9 6 2 . 6 2

3 3 7 . 8 3

( 1 4 3 . 1 5 )

4 , 1 5 7 . 3 0

-

-

-

-

4 , 1 5 7 . 3 0

1 , 8 9 8 . 7 7

1 , 6 6 6 . 3 3

O

f c e E q u i p m e n t

1 9

. 6 5

4 . 7 4

( 1 . 7 6 )

2 2 . 6 3

1 8 . 1 6

0 . 8 7

( 1 . 4 7 )

1 7 . 5 6

1 7 . 5 6

5 . 0

7

1 . 4 9

T e l e c o m m u n i c a t i o n

2 4

. 1 4

1 6 . 6 5

( 0 . 0 7 )

4 0 . 7 2

2 2 . 2 5

0 . 5 4

( 0 . 0 7 )

2 2 . 7 2

-

-

-

-

2 2 . 7 2

1 8 . 0 0

1 . 8 9

R a i l w a y S i d i n g s

2 5

. 3 3

-

( 0 . 2 0 )

2 5 . 1 3

2 3 . 4 6

0 . 2 3

( 0 . 2 4 )

2 3 . 4 5

-

-

-

-

2 3 . 4 5

1 . 6

8

1 . 8 7

F u r n i t u r e & t t i n g s / O f c e T o o l s & E q u i p m e n t /

E l e c t r i c F i t t i n g / F i r e A r m s

4 1

. 3 4

1 . 0 2

( 0 . 8 7 )

4 1 . 4 9

2 8 . 1 6

2 . 1 0

0 . 7 6

3 1 . 0 2

-

-

-

-

3 1 . 0 2

1 0 . 4 7

1 3 . 1 8

V e h i c l e

3 3

. 0 7

1 . 4 9

1 . 1 5

3 5 . 7 1

2 6 . 6 9

1 . 6 3

1 . 1 7

2 9 . 4 9

-

-

-

-

2 9 . 4 9

6 . 2

2

6 . 3 8

D e v e l o p m e n t

5 1

. 9 3

-

( 1 . 5 9 )

5 0 . 3 4

4 1 . 7 5

0 . 4 5

7 . 4 4

4 9 . 6 4

-

-

-

-

4 9 . 6 4

0 . 7

0

1 0 . 1 8

( R

o a d & C u l v e r t M i n e )

-

-

-

S u r v e y e d o f f A s s e t s

5 6

. 4 7

8 . 1 1

( 6 . 9 2 )

5 7 . 6 6

1 7 . 0 0

( 1 6 . 6 5 )

0 . 3 5

-

-

-

-

0 . 3 5

5 7 . 3 1

3 9 . 4 7

T O T A L ( A )

6 , 6

3 4 . 7

0

6 3 1 . 0

0

( 1 7 4 . 9

4 )

7 , 0

9 0 . 7

6

4 , 4

1 8 .

3 0

3 6 3 . 2

1

( 1 3 8 . 4

2 )

4 , 6

4 3 . 0

9

-

-

-

-

4 , 6

4 3 . 0

9

2 , 4 4

7 . 6

7

2 , 2

1 6 . 4

0

T a n g i b l e a s s e t s a s o n 3 1 . 0 3 . 2 0 1 4

6 , 5 5 4 . 4 9

5 2 6 . 1 6

( 4 4 5 . 9 5 )

6 , 6 3 4 . 7 0

4 , 4 8 0 . 3 6

3 5 6 . 8 8

( 4 1 8 . 9 4 )

4 , 4 1 8 . 3 0

-

-

-

-

4 , 4 1 8 . 3 0

2 , 2 1 6 . 4 0

2 , 0 7 4 . 1 3

I n

t a n g i b l e A s s e t s

S o f t w a r e

-

-

-

-

-

-

-

-

-

-

D e v e l o p m e n t

1 4 3 . 4 4

-

( 1 . 0 8 )

1 4 2 . 3 6

6 2 . 7 9

8 . 8 2

( 1 . 0 3 )

7 0 . 5 8

-

-

-

-

7 0 . 5 8

7 1 . 7 8

8 0 . 6 5

P r o s p e c t i n g & B o r i n g

0

. 4 4

-

0 . 4 4

0 . 1 6

0 . 0 2

0 . 1 8

-

-

-

-

0 . 1 8

0 . 2

6

0 . 2 8

T O T A L ( B )

1 4

3 . 8

8

-

( 1 . 0

8 )

1 4 2 . 8

0

6 2 . 9

5

8 . 8

4

( 1 . 0

3 )

7 0 . 7

6

-

-

-

-

7 0 . 7

6

7 2 . 0

4

8 0 . 9

3

G

r a n d T o t a l ( A + B )

6 , 7

7 8 . 5

8

6 3 1 . 0

0

( 1 7 6 . 0

2 )

7 , 2

3 3 . 5

6

4 , 4

8 1 .

2 5

3 7 2 . 0

5

( 1 3 9 . 4

5 )

4 , 7

1 3 . 8

5

-

-

-

-

4 , 7

1 3 . 8

5

2 , 5 1

9 . 7

1

2 , 2

9 7 . 3

3

I n

t a n g i b l e a s s e t s a s o n 3 1 . 0 3 . 2 0 1 4

3 4

9 . 2 9

-

( 2 0 5 . 4 1 )

1 4 3 . 8 8

2 6 1 . 3

7

6 . 9 9

( 2 0 5 . 4 1 )

6 2 . 9 5

-

-

-

-

6 2 . 9 5

8 0 .

9 3

8 7 . 9 2

*

L a n d - O t h e r s a l s o i n c l u d e s 5 8 8 0 . 0

9 h e c t a r e L a n d a c q u i r e d u n d e r C o a l B e a r i n g A r e a s A c t , 1 9 5 7 a n d 1 1 1 0 0 . 9

h e c t a r e L a n d a c q u i r e d f o r s p e c i c p e r i o d o f t i m e u n d e r L

a n d A c q u i s i -

t i o n A c t 1 8 9 4 e t c . L a n d - O t h e r s i s c a p i t a

l i s e d o n t h e b a s i s o f p o s s e s s i o n .




109

N O T E S

T O B A L A N C E

S H E E T

N

o t e - 1 0 B

C A P I T A L W O R K - I N - P R O G R E S S


P A R T I C U L A R S

C O

S T

P R O V I S I O N

I M P A I R M

E N T L O S S

T O T A L

C A R R

Y I N G V A L U E

A s o n

0 1 . 0 4 . 1 4

A d d i t i o n

d u r i n g

t h e y e a r

A d j . /

S a l e s /

T r a n s f e r

d u r i n g

t h e y e a r

A s o n

3 1 . 0 3 . 1 5

A s o n

0 1 . 0 4 . 1 4

A d d i - t i o n

d u r i n g t h e y e a r

A d j . /

S a l e s /

T r a n s f e r

d u r i n g

t h e y e a r

A s o n

3 1 . 0 3 . 1 5

A s o n

0 1 . 0 4 . 1 4

A d d i -

t i o n

d u r i n g

t h e y e a r

A d j . /

S a l e s /

T r a n s f e r

d u r i n g

t h e y e a r

A s o n

3 1 . 0 3 . 1 5

A s o n

3 1 . 0 3 .

1 5

A s o n

3 1 . 0 3 . 1 4

T

a n g i b l e A s s e t s

B

u i l d i n g / W a t e r S u p -

p

l y / R o a d & C u l v e r t s

1 4 . 7 2

1 7 . 1 7

-

3 1 . 8 9

1 . 1 9

1 . 1 3

2 . 3 2

-

-

-

-

2 . 3 2

2 9 . 5 7

1 3 . 5 3

P

l a n t & E q u i p m e n t

5 2 5 . 8 6

2 5 . 4 1

-

5 5 1 . 2 7

0 . 2 2

1 . 0 9

( 0 . 0 4 )

1 . 2 7

-

-

-

-

1 . 2 7

5 5 0 . 0

0

5 2 5 . 6 4

R

a i l w a y S i d i n g s

5 . 0 8

2 6 . 2 3

-

3 1 . 3 1

-

-

-

-

-

-

-

3 1 . 3 1

5 . 0 8

M

i n e D e v e l o p m e n t

&

P r o s p e c t i n g &

B

o r i n g

-

-

-

-

-

-

-

-

-

-

-

-

-

O

t h e r s

0 . 0 8

-

-

0 . 0 8

-

-

-

-

-

-

-

0 . 0 8

0 . 0 8

T

O T A L

5 4 5 . 7 4

6 8 . 8 1

-

6 1 4 . 5 5

1 . 4 1

2 . 2 2

( 0 . 0 4 )

3 . 5 9

-

-

-

-

3 . 5 9

6 1 0 . 9

6

5 4 4 . 3 3

T

a n g i b l e a s s e t s a s

o

n 3 1 . 0 3 . 2 0 1 4

7 0 3 . 2 2

( 1 5 7 . 4 8 )

-

5 4 5 . 7 4

0 . 8 6

0 . 6 0

( 0 . 0 5 )

1 . 4 1

-

-

-

-

1 . 4 1

5 4 4 . 3

3

7 0 2 . 3 6

A s

s e t s ( C a p i t a l W I P ) , w h i c h c o u l d n o t b e p u t t o u s e f o r m o r e t h a n 3 y e a r s f r o m t h e d a t

e o f p u r c h a s e / a c q u i s i t i o n / c o n s t r u c t i o n , a

p r o v i s i o n , e q u i v a l e n t t o d e p r e c i a t i o n f r o m

t h e f o u r t h y e a r

a n

d o n w a r d s h a s b e e n m a d e . T o t a l p r o v i s i o n

a m o u n t i n g t o R s . 3 . 5 9 c r o r e s ( R s . 1 . 4 1 c r o r e s a s o n 3 1 . 0 3 . 2 0 1 4 ) m a d e u p t o 3 1 . 0 3 . 2 0 1 5 a s d i s c l o s e d i s c o n s i d e r e d a d e q u a t e

.



ANNUAL REPORT 2014-15 _________________________________________________________

110

N O T E S

T O B A L A N C E

S H E E T

N

o t e - 1 0 C

I N T A N G I B L E A S S E

T U N D E R D E V E L O P M E N T


P

A R T I C U L A R S

C O S T

P R O V

I S I O N

I M P A I R

M E N T L O S S

T O T A L

C A R R

Y I N G V A L U E

A s o n

0 1 . 0 4 . 1 4

A d d i t i o n

d u r i n g

t h e y e a r

A d j . /

S a l e s /

T

r a n s f e r

d u r i n g

t h e y e a r

A s o n

3 1 . 0 3 . 1 5

A s o n

0 1 . 0 4 . 1 4

A d d i t i o n

d u r i n g t h e

y e a r

A d j . /

S a l e s /

T r a n s f e r

d u r i n g

t h e y e a r

A s o n

3 1 . 0 3 . 1 5

A s o n

0 1 . 0 4 . 1 4

A d d i t i o n

d u r i n g t h e

y e a r

A d j . /

S a l e s /

T r a n s f e r

d u r i n g t h e

y e a r

A s o n

3 1 . 0 3 . 1 5

A s o n

3 1 . 0 3 . 1 5

A s o n

3 1 . 0 3 . 1 4

I n t a n g i b l e A s s e t s

D

e v e l o p m e n t

0 . 5 3

( 0 . 4 0 )

-

0 . 1 3

-

-

-

-

-

-

-

-

-

0 . 1 3

0 . 5 3

P

r o s p e c t i n g &

B

o r i n g

8 9 . 3 3

2 3 . 7 6

-

1 1 3 . 0 9

-

-

-

-

-

-

-

-

-

1 1 3 . 0

9

8 9 . 3 3

T

O T A L

8 9 . 8 6

2 3 . 3 6

-

1 1 3 . 2 2

-

-

-

-

-

-

-

-

-

1 1 3 . 2

2

8 9 . 8 6

I n

t a n g i b l e A s s e t s

a s o n 3 1 . 0 3 . 2 0 1 4

7 9 . 6 8

1 0 . 1 8

-

8 9 . 8 6

-

-

-

-

-

-

-

-

-

8 9 . 8 6

7 9 . 6 8




111


Note - 11

NON - CURRENT INVESTMENTS

Unuoted at Cost

(Rs. in Crores)

Number ofshares/bonds/

securities as on31.03.2015 /(31.03.2014)

Face value pershares/bonds/

security(in Rs.)

As at31-03-2015

Ast at31-03-2014

TRADE

8.5% Tax Free Special Bonds (Fully Paid up) (Unuoted) :(on securitisation of Sundry Debtors)Major State-wise Break-up

UP NIL/(02) 57,280,000.00 - 11.45

Haryana - - - -

Maharashtra - - - -

Madhya Pradesh - - - -

Gujarat - - - -

West Bengal - - - -

Others - - - -

Equity Shares in Joint Venture Companies - - - -

Equity Shares in Subsidiaries Companies - - - -

Others (in Co-operative Shares) - - - -

Total : - 11.45

Aggregate amount of Quoted Investment - -

Aggregate amount of Unquoted Investment - 11.45

Market Value of Quoted Investment - -

Provision made for diminution in the value of Investment - -



ANNUAL REPORT 2014-15 _________________________________________________________

112


Note - 12

LONG TERM LOANS & ADVANCES(Rs. in Crores)

As at As at

31-03-2015 31-03-2014 ———————— —————————LOANS - -

ADVANCES

For Capital

- Secured considered good - - - Unsecured considered good 32.98 4.38 - Doubtful 0.26 0.24 ———————— ————————— 33.24 4.62

Less : Provision for Doubtful Loans and Advances** 0.26 0.24 ———————— ————————— Sub Total 32.98 4.38 ———————— —————————For Revenue

- Secured considered good - - - Unsecured considered good - - - Doubtful - - ———————— ————————— - - ———————— —————————

Less : Provision for Doubtful Loans and Advances** - - ———————— ————————— Sub Total - - ———————— —————————Security Deposits (For Electricity)

- Secured considered good - - - Unsecured considered good 34.29 35.26 - Doubtful - - ———————— ————————— 34.29 35.26

Less : Provision for Doubtful Loans and Advances** - - ———————— ————————— Sub Total 34.29 35.26 ———————— —————————Deposit with Courts, etc.

- Secured considered good - - - Unsecured considered good* 23.71 17.47 - Doubtful 0.52 0.52 ———————— ————————— 24.23 17.99Less : Provision for Doubtful Loans and Advances** 0.52 0.52

———————— ————————— Sub Total 23.71 17.47 ———————— —————————LOAN TO EMPLOYEESFor House Building - Secured considered good 15.34 17.64 - Unsecured considered good - - - Doubtful - - ———————— ————————— Sub Total 15.34 17.64 ———————— —————————For Motor Car and Other Conveyance - Secured considered good 0.03 0.07 - Unsecured considered good - - - Doubtful - - ———————— ————————— Sub Total 0.03 0.07

———————— —————————




113


Note - 12 (Contd..)

LONG TERM LOANS & ADVANCES

(Rs. in Crores) As at As at

31-03-2015 31-03-2014 ———————— —————————

For Others- Secured considered good - -

- Unsecured considered good - - - Doubtful - - ———————— —————————

- - ———————— —————————

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

Sub Total - - ———————— —————————

Loan To Subsidiaries- Secured considered good - -

- Unsecured considered good - - - Doubtful - - ———————— —————————

Sub Total - -

TOTAL 106.35 74.82 ———————— —————————Classication:

Secured 15.37 17.71

Unsecured - Considered Good 90.98 57.11- Considered Doubtful 0.78 0.76

Note

CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIMEDURING

CURRENT YEAR PREVIOUS YEAR CURRENT YEAR PREVIOUS YEAR

Due by the Companies in which direc-tors of the company is also a director/member

- - - -

Due by the parties in which the Direc-

tor(s) of company is /are interested

- - - -

* Singrauli Municipal Authority has claimed Terminal tax of Rs. 152.08 crores (Rs. 152.08 crores as on 31.03.2014) against which

an amount of Rs. 16.36 Crores (Prev. year Rs. 16.36 crores) has been deposited under protest. The matter is pending beforeHon’ble Supreme Court. However, the claim of Rs. 152.08 Crores has been shown as Contingent Liability.

** Total Provision of Rs. 0.78 crores (as on 31.03.2014 Rs. 0.76 crores), as on 31.03.2015 on account of Doubtful Loans & Advanc-es is considered adequate.



ANNUAL REPORT 2014-15 _________________________________________________________

114


Note - 13

OTHER NON-CURRENT ASSETS

(Rs. in Crores)

As at As at

31-03-2015 31-03-2014

———————— ————————

Long Term Trade Receivable

- Secured considered good - -- Unsecured considered good - -- Doubtful - -

———————— ————————

- -Less: Provision for bad and doubtful trade receivables - -

———————— ———————— - -

Exploratory Drilling Work - -Less: Provision for bad & doubtful receivables - -

———————— ————————

- -

Receivable for Mine Closure Expenses 6.22 3.15

Other Receivables

- Secured considered good- Unsecured considered good- Doubtful

———————— ————————

- -———————— ————————

Less: Provision for bad & doubtful receivables

- -———————— ————————

TOTAL 6.22 3.15

———————— ————————

Note

CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIME

CURRENT YEAR PREVIOUS YEAR CURRENT YEAR PREVIOUS YEAR

Due by the Companies in whichdirectors of the company is also adirector/ member

- - - -

Due by the parties in which the Direc-tor(s) of company is /are interested

- - - -




115

NOTE TO BALANCE SHEET AS AT 31ST MARCH, 2015

Note – 14

CURRENT INVESTMENTS — UNQUOTED AT COST

(Rs. in Crores)

Number of Face Value Market Value/

units/bonds/ per unit/ NAV per unit/

securities as bonds/ bonds/security/

on 31.03.2015/ security as on 31.03.2015/

(31.03.2014) (in Rs.) (31.03.2014) As at As at

(in Rs.) 31.03.2015 31.03.2014

———————— —————————— —————————— ————— ——————

TRADE (Quoted at Cost)

Mutual Fund Investment

UTI Liquid Cash Plan 176,525.04 1,019.45 18.00

SBI Premium Liquid Fund 262,584.76 1,003.25 26.34

Canara Robeco Liquid Fund 24,942.57 1,005.50 2.51

Union KBC Liquid Fund 19,851.50 1,000.65 1.99

BOI AXA Liquid Fund 13,208.99 1,002.65 1.32

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

(on securitisation of Sundry Debtors)

Major State-wise Break-up

UP 02 (02) 57,280,000 57,280,000 11.46 11.46

————— —————

Total 61.62 11.46

————— —————

Aggregate amount of Quoted Investment 50.16 —

Aggregate amount of Unquoted Investment 11.46 11.46

Market Value of Quoted Investment — —

Provision made for diminution in the value of Investment — —



ANNUAL REPORT 2014-15 _________________________________________________________

116


Note - 15

INVENTORIES

(Valuation as per Accounting Policy No. 6 ) (Rs. in Crores) As at As at

31-03-2015 31-03-2014 ——————— ———————

Finished Goods-

Stock of Coal* 379.54 484.64 Coal under development - - ————— ————— 379.54 484.64

Less : Provision - - ————— —————A Stock of Coal (Net) 379.54 484.64

————— ————— Stock of Stores & Spare Parts 470.03 413.10

Stores -in -transit 32.86 39.03 ————— ————— 502.89 452.13 Less : Provision** 46.64 43.66 ————— —————B Net Stock of Stores & Spare Parts 456.25 408.47

————— ————— C Workshop Jobs :

Work-in-progress and Finished GoodsLess : Provision

————— ————— Net Stock of Workshop Jobs - -

————— ————— D Press :

Work-in-Progress and Finished Goods - - E Stock of Medicine at Central Hospital 0.12 0.08

F Prospecting & Boring/ Development Exp./ Coal blocks meant for sale - -

————— ————— Total ( A to F ) 835.91 893.19

————— —————

* Stocks of coal are valued separately for each mine at cost or average net realizable value whichever is lower. Net realisable value

of stock of coal at the year end has been arrived at on the basis of average net realisable value for the quarter ended 31.03.2015.

** A total provision of Rs. 46.64 Crores (As at 31.03.2014 Rs. 43.66 Crores) made for stores and spares which includes for unmovedstores & spares Rs. 25.02 Crores (As at 31.03.2014 Rs. 22.48 Crores) for more than 5 years and Rs. 20.08 Crores (As at 31.03.2014Rs. 20.03 Crores) for obsolete/ damaged/unserviceable items of stores and Rs. 1.54 crores (As at 31.03.2014 Rs. 1.15 Crores) onaccount of shortage of stores including theft upto 31.03.2015, made in accordance with Accounting Policy of the company, is con-sidered adequate.




117


ANNEXURE TO NOTE - 15

(Qty in lakh tonnes) ( Value in crore Rs.)

Table-A

Reconciliation of closing stock adopted in

Account with Book stock as at the end of the period :

OVERALL STOCK NON-VENDABLE STOCK VENDABLE STOCK

Qty. Value Qty. Value Qty. Value

1. (A) Opening stock as on 01.04.14 61.07 484.64 - - 61.07 484.64

( B) Adjustment in Opening Stock

2. Production for the period 724.84 8,901.82 - - 724.84 8,901.82

3. Sub-Total ( 1+2) 785.91 9,386.46 - - 785.91 9,386.464. Off- Take for the period :

(A) Outside Despatch 700.77 8,918.25 - - 700.77 8,918.25

(B) Coal feed to Washeries 36.16 88.67 - - 36.16 88.67

(C) Own Consumption - - - - - -

TOTAL(A) 736.93 9,006.92 - - 736.93 9,006.92

5. Derived Stock 48.98 379.54 - - 48.98 379.54

6. Measured Stock 48.41 375.12 - - 48.41 375.12

7. Difference (5-6) 0.57 4.42 - - 0.57 4.42

8. Break-up of Difference:

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

(B) Shortage within 5% 0.57 4.42 - - 0.57 4.42

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

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

9. Closing stock adopted in A/c 48.98 379.54 - - 48.98 379.54

Table-B

Summary of Closing Stock of CoalRaw Coal Washed / Deshaled Coal Other Total

Coking Non-Coking Coking Non-Coking Rejects

Qty Value Qty Value Qty Value Qty Value Qty Value Qty Value

Opening Stock (Audited) - - 61.07 484.64 - - - - 61.07 484.64

Less: Non-vendable Coal - - - - - - - - - - - -

Adjusted Opening Stock ( Vendable) - - 61.07 484.64 - - - - 61.07 484.64

Production - - 724.84 8,901.82 - - - - - - 724.84 8,901.82

Offtake*

(A) Outside Despatch - - (700.77) (8,918.25) - - (34.41) (523.09) (1.50) (11.24) (736.68) (9,452.58)

(B) Coal feed to Washeries - - (36.16) (88.67) - - 36.16 88.67 - - - -

(C) Own Consumption - - - - - - - - - - - -

Closing Stock ** - - 48.98 379.54 - - 1.75 - - - 50.73 379.54

Less: Shortage - - - - - - 1.75 - - - 1.75 -

Closing Stock ** - - 48.98 379.54 - - - - - - 48.98 379.54 * Offtake includes outside despatch, Coal feed to washeries & own consumption.

** Excluding non-vendable Stock



ANNUAL REPORT 2014-15 _________________________________________________________

118


Note - 16

TRADE RECEIVABLE

(Rs. in Crores)

As at As at

31-03-2015 31-03-2014

—————— ——————

Debts outstanding for a period exceeding six monthsfrom the due date

- Secured considered good - -

- Unsecured considered good** 292.16 781.99

- Doubtful 707.81 653.68

————— ————— 999.97 1,435.67

Less : Provision for bad & doubtful trade receivable* 707.81 653.68————— —————

292.16 781.99

Other Debts


- Unsecured considered good 328.98 173.95

- Doubtful - -

————— ————— 328.98 173.95

Less : Provision for bad & doubtful trade receivable* - -————— —————

328.98 173.95————— —————

Total 621.14 955.94

————— —————Classication:

Secured - -

Unsecured - Considered Good 621.14 955.94

- Considered Doubtful 707.81 653.68

Note :

CLOSING BALANCE

MAXIMUM AMOUNT DUE AT ANY TIME DURING

CURRENTPERIOD

PREVIOUSPERIOD

CURRENTPERIOD

PREVIOUSPERIOD

Due by the Companies in which directorsof the company is also a director/ member

- Coal India Limited, the holding company - - - 0.08

Due by the parties in which the Director(s)of company is /are interested

- - - -




119


Note - 16

TRADE RECEIVABLE (Contd.)

*PROVISION TOWARDS DEEMED LOWERING OF GRADE

With the introduction of Gross Caloric value (GCV) system of grading of coal w.e.f. 1st January 2012,

supply of coal to NTPC was billed at declared grade of coal corresponding to the GCV range of thecoal supplied. With effect from October 2012 NTPC released payment based on GCV determinedunilaterally at the receiving end, contrary to the provision of Fuel Supply Agreement which stipulatesthat the GCV is to be determined at the loading end by joint collection, preparation, testing and analysisof the coal being supplied.

As a result an amount of Rs. 669.89 Crore (Basic bill value Rs.643.88 crore and incentive for 2012-13Rs.26.01 crore) was unilaterally withheld by NTPC for the period October, 2012 to September, 2013as on 31.03.2015 from the bills of the Company in respect of supply of coal, which was against theprovision of FSA. The issue was taken up with the Ministry of Power through the Ministry of Coal forresolution which resulted in incorporation of a provision for third party sample collection, preparation,testing and analysis at the point of loading in the FSA. Such third party sampling/analysis wasimplemented from October 2013.

For an appropriate resolution of the issue, the Govt. of India advised for extrapolation of the resultof the third party sampling/analysis during October – December 2013 to the supplies during the pastperiod from October 2012 to September 2013. On the basis of this settlement formula an amount of

Rs. 669.89 crore (Basic bill value Rs. 643.88 crore and incentive for 2012-13 Rs. 26.01 crore) hasbeen provided in the Accounts upto 31.03.2015.

**It includes a sum of Rs. 3.34 crores recoverable from e-auction & road sale customers on accountof the supplementary bills raised for recovering the excise element on royalty and stowing excise dutypaid under protest by the Company for the period 1.03.2011 to 28.2.2013. The recoveries from thecustomers to the extent of Rs. 1.74 crores , have been stayed by the courts. Further, the issue as tothe royalty to be a part of the transaction value is pending before the larger bench of the SupremeCourt. The Company has challenged the chargeability of the excise duty on royalty and stowing exciseduty before the CESTAT, New Delhi and the case is pending for hearing/ decision. In view of above,no provision has been made against the same.

Total provision of Rs. 707.81 Crores for Bad & Doubtful Debts is considered adequate as at 31.03.2015(As at 31.03.2014 Rs. 653.68 Crores).



ANNUAL REPORT 2014-15 _________________________________________________________

120


Note - 17

CASH & BANK BALANCE

(Rs. in Crores)

As at As at

31-03-2015 31-03-2014

—————— ——————Cash & Cash Euivalents

Balances with Scheduled Banks

- In Deposit Accounts with maturity upto 3 months - -- In Current Accounts* 110.19 20.38- In Cash Credit Accounts - -

Balances with Non - Scheduled Banks - -

Remittance - in transit - -Cheques, Drafts and Stamps on hand - -Cash in hand 0.02 0.02

Other Bank Balances

Balances with Scheduled Banks

- In Deposit Accounts with maturity between 3-12 months** 6,705.45 7,169.47- In Deposit maturing in more than 12 months - -

Term Deposit with Scheduled Banks under Escrow Accountwith maturity more than 12 months 449.44 253.92

————— ————— Total 7,265.10 7,443.79

————— —————

Maximum amount outstanding with Banks other thanScheduled Banks at any time during the year - -

Note:

* Includes an amount of Rs. 19.08 crores (Rs. 13.69 crores as on 31.03.2014) in sweep account with Banks and lien of Rs. 5.33 crores& Rs. 7.39 crores for Jayant & Amlohri Projects respectively, has been created on the notice of DCIT (TDS), Jabalpur.

** Deposit with Banks includes xed deposit of Rs. 1.62 cr (Rs. 1.65 crores as on 31.03.2014) pledged with Bank as margin money for

B. G. Interest accrued thereon is Rs. 0.19 crores (Rs. 0.18 crores as on 31.03.2014).

Deposit with Banks includes xed deposit of Rs. 339 Cr lien marked with Bank against Bank Guarantee of Rs. 337 Cr. to UP Forest

Department against Transit Fees.

** Deposits with Bank includes Rs. 4.83 Crores (Rs. 4.47 crores as on 31.03.2014) as per the order of Hon’ble High Court, Kolkata,has been kept in separate interest bearing account. Interest accrued on these deposit are Rs. 0.11 Crores (Previous Year Rs. 0.10Crores).




121


Note - 18

SHORT TERM LOANS & ADVANCES

(Rs. in Crores)

As at As at

31-03-2015 31-03-2014 ——————— ——————

LOANS - -

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

For Revenue- Secured considered good - -

- Unsecured considered good 50.85 5.03

- Doubtful 0.73 1.24 ————— ————— 51.58 6.27Less : Provision for Bad & Doubtful Advances* 0.73 1.24 ————— ————— Sub total 50.85 5.03 ————— —————ADVANCE PAYMENT OF STATUTORY DUES Excise Duty

- Secured considered good - - - Unsecured considered good 21.48 20.68 - Doubtful - - ————— ————— 21.48 20.68Less : Provision for Bad & Doubtful Advances* - - ————— ————— Sub total 21.48 20.68 ————— —————

Advance Income Tax / Tax Deducted at Source 1,695.72 1,728.84Less : Provision for Income Tax 1,646.00 1,649.70 ————— ————— Sub total 49.72 79.14 ————— —————Others

- Secured considered good - Unsecured considered good - 0.02 - Doubtful - - ————— ————— - 0.02Less : Provision for Bad & Doubtful Advances* - - ————— ————— Sub total - 0.02 ————— ————— ADVANCE TO EMPLOYEES

- Secured considered good - - - Unsecured considered good 3.31 1.91 - Doubtful 0.00 - ————— ————— 3.31 1.91Less : Provision for Bad & Doubtful Advances* 0.00 - ————— ————— Sub total 3.31 1.91 ————— ————— Current Account with Coal India Limited (Holding Co.) &other Subsidiaries of Coal India Limited - 1.59 ————— ————— Sub total - 1.59 ————— —————

Continued…



ANNUAL REPORT 2014-15 _________________________________________________________

122


Note - 18 (Continued..)

SHORT TERM LOANS & ADVANCES

(Rs. in Crores)

As at As at

31-03-2015 31-03-2014 ——————— ——————

Claims Receivables- Secured considered good - -

- Unsecured considered good 13.29 5.42 - Doubtful 4.16 3.10 ————— ————— 17.45 8.52

Less : Provision for Bad & Doubtful Advances* 4.16 3.10 ————— ————— Sub total 13.29 5.42 ————— —————

Prepaid Expenses - 0.11

————— ————— TOTAL 138.65 113.90 ————— —————Classication:

Secured - -Unsecured - Considered Good 138.65 113.90


Note:

CLOSING BALANCE MAXIMUM AMOUNT DUE AT ANY TIMEDURING

CURRENT PERIOD PREVIOUS YEAR CURRENT PERIOD PREVIOUS YEAR

Due by the Companies in which directorsof the company is also a director/ member

Coal India Limited (Holding Co.)& otherSubsidiaries of Coal India Limited

- 1.59 - 1.59

Due by the parties in which the Director(s)of company is /are interested

- - - -

* Total Provision of Rs. 4.90 crores as on 31.03.2015 (as on 31.03.2014 Rs. 4.34 crores) on account of Doubtful Loans & Advancesis considered adequate.




123


Note -19

OTHER CURRENT ASSETS(Rs. in Crores)

As at As at

31-03-2015 31-03-2014

—————— ——————Interest Accrued

- Investment 0.49 0.97

- Deposit with Banks 354.36 404.42

- Others - - ————— —————

Sub Total 354.85 405.39 ————— —————Ex Owner’s Account - -

Other Advances


- Unsecured considered good* 40.00 31.99

- Doubtful 6.85 7.48 ————— —————

46.85 39.47

Less: Provision for Bad & Doubtful Advances$ 6.85 7.48 ————— —————

Sub Total 40.00 31.99 ————— —————DEPOSITS

Deposit for Customs Duty, Port Charges etc. - -

Deposit with Coal India Limited 588.01 2,495.47

Deposit for Royalty, Cess & Sales Tax - -

Less: Provision - - ————— —————

Sub Total 588.01 2,495.47 ————— —————

Others (Deposit under Protest)** 1,469.16 1,133.94 Less: Provision for Doubtful Deposits$ 0.09 0.09

————— —————

Sub Total 1,469.07 1,133.85

————— —————

Other Receivables

VAT & CENVAT Receivable 120.49 121.67

Rent & Electricity Receivable 2.28 2.94

————— —————

122.77 124.61

Less: Provision for Doubtful Recievable$ 46.56 39.90

————— —————

Sub Total 76.21 84.71

————— —————

————— —————

TOTAL 2,528.14 4,151.41

————— —————Classication:

Secured - -

Unsecured - Considered Good 2,528.14 4,154.56


…continued



ANNUAL REPORT 2014-15 _________________________________________________________

124


Note -19

OTHER CURRENT ASSETS…continued

* Of the total actuarial liability of Rs. 646.90 crores and outstanding gratuity liability of Rs. 3.08

crores has been net-off with Rs. 688.40 crores deposited with LIC (Rs. 645.94 crores as on

31.03.2014) which includes interest amounting to Rs. 58.66 crores, Net of Insurance Premium

Rs. 1.9 Crore (Prev. year Rs. 56.69 crore, Net of Insurance Premium Rs. 1.61 Crore) @ 9.40%

pa. has been accounted for on accrual basis for the period ended on 31.03.2015.

** Commercial Tax Department of M.P. and UP has raised a demand of Rs. 1040.06 Crores (As at

31.03.2014 Rs. 737.92 Crores) till 31.03.2015 for Sales Tax & Entry Tax, against which appeal

has been led and Rs. 248.56 Crores (As at 31.03.2014 Rs. 120.23 Crores) has been depositedunder protest. However, the claim of Rs. 1040.06 Crores has been shown as Contingent Liability.

** Singrauli Municipal Authority has claimed licence and composite fees for construction of building

of Rs. 9.87 Crores during 1999-2000 against which an amount of Rs. 6.00 Crores has been

deposited under protest in 2002-03. The matter is pending before Hon’ble Supreme Court.

However, the claim of Rs. 9.87 Crores has been shown as Contingent Liability.

** Govt. of Madhya Pradesh has claimed Land Revenue Premium for an amount of Rs. 117.05

Crores against which an amount of Rs. 3.00 Crores has been deposited under protest to

Hon’ble High Court Jabalpur during the year 2004-05. However, the claim of Rs. 117.05 Croreshas been shown as Contingent Liability. The matter is pending before the Hon’ble High Court,

Jabalpur.

** Commissioner of Income tax, Jabalpur has demanded Rs. 13.12 crores against adhoc provion

of NCWA VII during A/Y 2002-03 & 2003-04 & on account of interest income on parking of

surplus fund with CIL for A/Y 2002-03 against which an amount of Rs. 13.12 crore has been

deposited with Income tax department under protest as the matter is pending before Hon’ble

High Court, Jabalpur.

Furthermore, Assistant Commissioner of Income Tax, Jabalpur raised a demand for AssessmentYear 2010-11 Rs. 1004.00 crores at the time of assessment under section 143(3) by disallowing

various allowable expenses and demand is reduced to Rs. 990.76 crores under section 250

after giving appeal effect of CIT(A) against which an amount of Rs. 990.76 crores has been

deposited with Income Tax department under protest. Hon’ble ITAT, Jabalpur is pleased to

pronounce the decision in favour of NCL vide order dated 05.05.2015. Thus, after the

appeal effect of ITAT Order NCL is eligible for the refund Rs. 990.76 crores alongwith interest.

And for Assessment year 2011-12 Assistant Commissioner of Income Tax, Jabalpur raised a

demand of Rs. 1018.65 crores at the time of assessment under section 143(3) by disallowing

various allowable expenses, subsequently demand was reduced to Rs. 910.99 crores under




125


Note -19

OTHER CURRENT ASSETS…continued

section 154 and 250 after rectication and appeal effect of CIT(A) against which an amount

of Rs. 164.14 crores (including Rs. 14.14 Crore as adjustment of Refund of earlier year) has

been deposited with Income Tax deptt. under protest as the matter is subjudice and pending

before Income Tax Appellate Tribunal, Jabalpur and for A/Y 2012-13 Assistant Commissioner

of Income Tax, Jabalpur raised a demand of Rs. 860.96 crores at the time of assessment

under section 143(3) by disallowing various allowable expenses, against which an amount of

Rs. 40.00 crores has been deposited with Income Tax department under protest as the matter

is subjudice and pending before commissioner of Income Tax (Appeal), Jabalpur

** MPPKVVCL has raised a claim of Rs. 7.44 Crores (As at 31.03.2014 Rs. 7.44 Crores) till

31.12.2014. The matter was challenged before Electricity Ombudsman, Bhopal under case

no. L0024112 and Rs. 2.50 Crores (As at 31.03.2014 Rs. 2.50 Crores) has been deposited

under protest. However, the decision of the Ombudsman is awaited and the amount of Rs.

7.44 Crores has been shown as Contingent Liability.

$ Total Provision of Rs. 53.50 crores as on 31.03.2015 (as on 31.03.2014 Rs. 47.47 crores) on

account of Doubtful Loans & Advances is considered adequate.



ANNUAL REPORT 2014-15 _________________________________________________________

126

NOTES TO STATEMENT OF PROFIT & LOSS

Note- 20

REVENUE FROM OPERATIONS

( Rs. in Crores)

For the Year For the Year

ended 31.03.2015 ended 31.03.2014

————————— —————————

A Sales of Coal* 13,161.25 12,400.42

Less: Excise Duty 657.22 649.45

Less : Other Levies

Royalty 1,208.42 1,184.37

Cess on Coal 10.82 13.25

Stowing Excise Duty 73.70 72.11

Central Sales Tax 131.56 104.69

Clean Energy Cess 716.91 361.97

State Sales Tax/ VAT 285.13 298.01

Others Levies** 624.91 412.69

—————— ——————TOTAL LEVIES 3,708.67 3,096.54

—————— ——————NET SALES* (A) 9,452.58 9,303.88

B Loading and Additional Transportation

Charges 222.99 213.66

Less- Excise Duty 12.50 11.86

Less:- Other Levies

Central Sales Tax 2.44 1.79

State Sales Tax/ VAT 4.61 4.98

Others Levies 0.43 0.57

Total Levies 19.98 19.20

—————— ——————Other Operating Revenue (B) 203.01 194.46

—————— ——————C Revenue From Operations (A+B) 9,655.59 9,498.34

—————— ——————

* includes incentive from customers Rs. 98.46 Crores for the year ended 31.03.2015 (Previous Year Rs. 134.76 Crores).

** includes UP Transit Fees (including VAT & CST) for the period Jan. 1999 to March 2012 amounting to Rs. 384.29 Crores for whichbills are raised during current period and Rs.36.46 Crores against MPGATSVA by realising Bank Guarantee form M/s HINDALCOIndustries Limited.




127


Note - 21

OTHER INCOME( Rs. in crores)


ended 31.03.2015 ended 31.03.2014

————————— —————————

Income From Long Term Investments

Dividend from Joint Ventures - -

Interest from:

Government Securities ( 8.5% Tax Free Special Bonds)* 0.73 1.71

Income From Current Investments

Dividend from Mutual Fund Investments 0.98 _

Interest from:

Government Securities ( 8.5% Tax Free Special Bonds)* 0.97 0.97

Income From Others

Interest (Gross)

(TDS Rs. 100.98 Crores, Previous year Rs. 95.63 Crores)

From Deposit with Banks 836.89 832.49

From Loans and Advances to Employees 0.77 0.55

From Income Tax Refunds - 0.18

From Parking of Surplus Fund with Coal India Ltd 169.39 113.78

Others 2.72 2.35

Prot on Sale of Assets 0.80 -

Gain on Foreign exchange Transactions - -

Exchange Rate Variance - -

Lease Rent 2.88 3.09

Liability write back 13.55 2.71

Other Non Operating Income 82.85 53.59

—————— ——————

TOTAL 1,112.53 1,011.42

—————— ——————

* In terms of the Scheme of Securitisation, one-time settlement against past dues of UPSEB as on 30.09.2001 has been made by

executing an agreement. Accordingly 8.5% Tax Free Govt. of U.P. Special Bond amounting to Rs. 114.56 Crores have been issuedwhich are to be redeemed over a period of 15 years in 20 equal six monthly installments commencing from 01.10.2006. Interestreceived from these bonds is Rs.1.70 Crores (Previous Year Rs.2.68 Crores.



ANNUAL REPORT 2014-15 _________________________________________________________

128


Note - 22

COST OF MATERIAL CONSUMED

( Rs. in crores)


ended 31.03.2015 ended 31.03.2014

————————— —————————

Explosives 408.73 353.21

Timber - -

P O L 637.85 717.37

HEMM Spares 406.27 386.53

Other Consumable Stores & Spares 125.85 133.41

————— ————— TOTAL 1,578.70 1,590.52

————— —————




129


Note - 23

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

( Rs. in crores)


ended 31.03.2015 ended 31.03.2014

————————— —————————

FINISHED GOODS

Opening Stock of Coal 484.64 629.32 Add: Adjustment of opening stock

Less: Deterioration of Coal - -

————— —————484.64 629.32

Less: Closing Stock of Coal 379.54 484.64Less: Deterioration of Coal/Coke - - ————— —————

379.54 484.64————— —————

A) Change in Inventory of Coal 105.10 144.68

————— —————Opening Stock of Workshop made nished goods and WIP - -

Less: Provision - - ————— ————— - -

————— —————

Less: Closing Stock of Workshop made nished goods and WIP - -

Less: Provision

————— ————— - - ————— —————

B) Change in Inventory of workshop - -

————— —————Change in Inventory of Stock in trade (A+B) 105.10 144.68

{Decretion / [Accretion]} ————— —————



ANNUAL REPORT 2014-15 _________________________________________________________

130

NOTES TO STATEMENT OF PROFIT & LOSSNote - 24

EMPLOYEE BENEFIT EXPENSES( Rs. in crores)


ended 31.03.2015 ended 31.03.2014

————————— —————————

Salary, Wages, Allowances & Benets 1,301.70 1,247.28

Ex-gratia* 68.49 53.22

PRP** 27.93 39.69

Contribution to P.F. & Other Funds 166.25 159.86

Gratuity*** 31.05 -

Leave Encashment 61.94 53.65VRS – –

Workmen Compensation 0.10 0.29

Medical Expenses 24.80 21.70

Medical Expenses for Retired Employees 0.37 9.73

Grants to Schools & Institutions 9.20 21.92

Sports & Recreation# 4.29 3.53

Canteen & Creche 0.89 0.84

Power - Township 68.16 69.30

Hire Charges of Bus, Ambulance etc. 5.28 4.99

Other Employee Benets 30.02 25.24

————— —————

TOTAL 1,800.47 1,711.24

————— —————

* Rs. 68.49 Crores (Previous year Rs. 53.22 Crores) provision has been made during the year ended 31.03.2015 in respect of

Ex-gratia to the Employees (Non-Executives) on the basis of Ex-gratia declared for the year 2013-14.** Refer Note no. 09*** Interest Received from LIC on Gratuity Fund - Rs. 58.66 crores, is net of Insurance Premium Rs. 1.90 crores (Prev. year - Rs. 56.69

Crores, Net of Insurance Premium Rs. 1.61 Crore) & Gratuity Expenses - Rs. 89.71 Crores (Prev. Year - Rs. 53.98 Crores).# includes an amount of Rs. 1.72 crores towards contribution to Coal India Sports Promotion Association (CISPA) @ Rs. 0.25/- per

tonne of coal produced in the previous year, as decided in 296th CIL Board Meeting.

Note – 25

CORPORATE SOCIAL RESPONSIBILITY EXPENSES

( Rs. in crores)


ended 31.03.2015 ended 31.03.2014

————————— —————————

CSR Expenses 61.77 39.72

————— —————TOTAL 61.77 39.72

————— —————




131

NOTES TO STATEMENT OF PROFIT & LOSSNote - 26

REPAIRS( Rs. in crores)


ended 31.03.2015 ended 31.03.2014

————————— —————————

Building 83.38 60.80

Plant & Machinery 128.34 126.45

Others 5.79 5.44

————— —————

TOTAL 217.51 192.69

————— —————

Note - 27

CONTRACTUAL EXPENSES

( Rs. in crores)


ended 31.03.2015 ended 31.03.2014

————————— —————————

Transportation Charges :

- Sand - -

- Coal & Coke 99.93 96.15

- Stores & Others etc. - -

Wagon Loading - -Hiring of P&M 1,036.54 875.04

Other Contractual Work 74.84 69.14

————— —————TOTAL 1,211.31 1,040.33

————— —————



ANNUAL REPORT 2014-15 _________________________________________________________

132


Note - 28

FINANCE COSTS

( Rs. in crores)


ended 31.03.2015 ended 31.03.2014

————————— —————————

INTEREST EXPENSES

Deferred Payments - -

Bank Overdraft / Cash Credit - -

Interest on IBRD & JBIC Loan * - 4.97

CIL Fund Loan Interest - -Others 0.26 0.25

————— —————TOTAL(A) 0.26 5.22

————— —————

OTHER BORROWING COST

Guarantee Fees on (IBRD & JBIC) Loan - 8.74

Other Expenses / Bank Charges - 1.49

————— —————

TOTAL(B) - 10.23

————— —————

————— —————

TOTAL (A+B) 0.26 15.45

————— —————




133


Note - 29

PROVISIONS

( Rs. in crores)


ended 31.03.2015 ended 31.03.2014

————————— —————————

(A) PROVISION MADE FOR

Doubtful debts 60.11 650.69 Doubtful advances & Claims 12.00 15.53 Foreign exchange Transaction - - Stores & Spares 3.33 1.33 Reclamation of Land/ Mine Closure Expenses* 118.91 110.02 Surveyed of Fixed Assets/Capital WIP 2.22 3.78 Others - -

————— ————— TOTAL (A) 196.57 781.35

————— —————

(B) PROVISION WRITTEN BACK

Doubtful debts 5.98 0.08 Doubtful advances & Claims 5.39 2.08 Foreign exchange Transaction - - Stores & Spares 0.35 1.08 Reclamation of Land/ Mine Closure Expenses - 2.39 Surveyed of Fixed Assets/Capital WIP 16.69 1.38 Others - - ————— ————— TOTAL (B) 28.41 7.01

————— ————— TOTAL ( A-B ) 168.16 774.34

————— —————

* Provision of Rs. 118.91 Crores( Prev. Year Rs. 107.63 Crores) net of interest received Rs. 25.96 crores from Escrow Account (Prev. Year Rs. 8.10 Crores) has been made during the year ended 31.03.2015 (Refer Note-5).

Note - 30

WRITE OFF

( Rs. in crores)


ended 31.03.2015 ended 31.03.2014

————————— —————————

Doubtful debts - -

Doubtful advances - -

Others - -

————— —————TOTAL - -

————— —————



ANNUAL REPORT 2014-15 _________________________________________________________

134


Note - 31

OTHER EXPENDITURE

( Rs. in crores)


ended 31.03.2015 ended 31.03.2014

————————— —————————

Travelling expenses- Domestic 10.50 10.22- Foreign 0.01 0.08

Training Expenses* 4.48 4.73Telephone & Postage 4.50 4.77 Advertisement & Publicity 5.02 4.79Freight Charges 0.69 0.28Demurrage - 0.06Donation/ Subscription - -Security Expenses 23.55 19.99Service Charges of CIL** 36.24 34.32Hire Charges 15.26 14.14CMPDI Expenses 37.16 28.69Legal Expenses 1.05 0.46Bank Charges**** 0.55 0.05Guest House Expenses 0.67 0.69Consultancy Charges 0.07 0.81Under Loading Charges 10.10 10.35Loss on Sale/Discard/Surveyed of Assets - 2.12 Auditor’s Remuneration & Expenses

- For Audit Fees 0.08 0.08- For Taxation Matters 0.01 0.01- For Company Law Matters - -- For Management Services - -- For Other Services 0.15 0.09- For Reimbursement of Expenses 0.12 0.08- For Cost Audit 0.05 0.05

Internal Audit & Other Management Expenses 1.67 0.79Rehabilitation Charges*** 44.21 43.27Royalty & Cess on Coal 80.87 71.31Central Excise Duty (12.73) (22.24)Rent - -Rates & Taxes 11.01 7.48Wealth Tax 1.25 (0.05)Insurance 0.52 0.47Loss on Exchange Rate Variance - -R & D Expenses 14.15 0.24Lease Rent 0.02 0.19Rescue/Safety Expenses 10.65 8.04Dead Rent/Surface Rent - -Siding Maintenance charges 2.09 1.06Land/Crops Compensation - -Environmental Expenses 6.42 6.75Tree Plantation 4.81 3.97Misc. Expenses 11.66 11.97

————— —————TOTAL 326.86 270.11 ————— ————— * As per advice received from Coal India Limited, Holding Company, training expenses @ Rs. 0.50 per tonne of production during the

period ended on 31.03.2015 amounting to Rs. 3.62 Crores (Previous year Rs. 3.43 Crores), towards contribution to Indian Instituteof Coal Management (IICM) has been included in Training Expenses.

** As per advice received from Coal India Limited, Holding Company, the service charges @ Rs. 5/- per tonne of production of Coalhas been charged.

*** As per advice received from Coal India Limited, Holding Company, the rehabilitation charges @ Rs. 6/- per tonne of dispatch hasbeen charged.

**** Bank Charges includes Rs. 3934/- incurred on account of 8.5% Tax Free U P Special Bond .




135


Note - 32

PRIOR PERIOD ADJUSTMENTS

( Rs. in crores)


ended 31.03.2015 ended 31.03.2014

————————— —————————

(A) Charges

Consumption of Stores & Spares 2.43 1.91

Employees Remuneration & Benets - 3.74

Power & Fuel - 8.27

Welfare Expenses - (0.65)

Repairs - -

Contractual Expenses - -

Other Expenditure 0.84 (1.89)

Interest and other nancial charges 3.82 0.89

Depreciation (10.29) -

————— —————

TOTAL (A) (3.20) 12.27

————— —————

(B) Income

Sale of Coal & Coke 21.59 0.43

Stock of Coal & Coke - -

Other Income (0.32) -

————— —————

TOTAL (B) 21.27 0.43

————— —————

TOTAL ( A-B ) (24.47) 11.84

————— —————



ANNUAL REPORT 2014-15 _________________________________________________________

136

1.0 Accounting Convention :

Financial statements are prepared

under the historical cost convention and

on accrual basis of accounting and going

concern concept, in accordance with the

generally accepted accounting principles

in India and the relevant provisions of the

Companies Act, 2013 including accountingstandards notified there under, except

otherwise stated.

1.1 Use of estimate

In preparing the nancial statements in

conformity with Accounting Principles

generally accepted in India, management

is sometimes required to make estimates

and assumptions that affect the reported

amounts of assets and liabilities and thedisclosures of contingent liability as at

the date of nancial statements and the

amount of revenue and expenses during

the reported period. Actual results may

differ from those estimates. Any revision to

such estimate is recognized in the period

in which the same is determined.

2.0 Subsidies/ Grants from Govt. :

2.1 Subsidies / Grants on capital account

are deducted from the cost of respectiveassets to which they relate. The unspent

amount at the Balance Sheet date, if any,

is shown as current liabilities.

2.2 Subsidies / Grants on revenue account

are credited to Statement of Prot & Loss

as income and the relevant expenses

are debited to the respective heads of

expenses. The unspent amount at the

Balance Sheet date, if any, is shown as

current liabilities.

2.3 Subsidies / Grants from Government

received as an implementing agency

2.3.1 Certain Grant / Funds received under

S&T, PRE, EMSC, CCDA etc. as an

implementing agency and used for creation

of assets are treated as Capital Reserve

and depreciation thereon is debited toCapital Reserve Account. The ownership

of the asset created through grants lies

with the authority from whom the grant is

received.

2.3.2 Grant / Funds receive d as Noda l/

Implementing Agency are accounted for

on the basis of receipts and disbursement.

3.0 Fixed Assets:

3.1 Land:

Value of land includes cost of acquisition,

cash rehabilitation expenses, resettlement

cost and compensation in l ieu of

employment incurred for concerned

displaced persons.

3.2 Plant & Machinery:

Plant & Machinery includes cost and

expenses incurred for erection / installationand other attributable costs of bringing

those assets to working conditions for

their intended use.

3.3 Railway Siding:

Pending commissioning, payments made

to the railway authorities for construction

of railway sidings are shown in Note

12 – “Long Term Loans & Advances” under

Advances for Capital.

NOTE– 33

SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE

BALANCE SHEET AS AT MARCH 31, 2015 AND STATEMENT OFPROFIT & LOSS FOR THE PERIOD ENDED ON THAT DATE




137

3.4 Development:

Expenses net of income of the projects /

mines under development are booked to

Development Account and grouped underCapital Work-in-Progress till the projects

/ mines are brought to revenue account.

Except otherwise specically stated in the

project report to determine the commercial

readiness of the project to yield production

on a sustainable basis and completion of

required development activity during the

period of constructions, projects and mines

under development are brought to revenue

considering the following criteria:

(a) From beginning of the nancial year

immediately after the year in which

the project achieves physical output of

25% of rated capacity as per approved

project report, or

(b) 2 years of touching of coal, or

(c) From the beginning of the nancial

year in which the value of production

is more than total expenses,

- Whichever event occurs rst.

4.0 Prospecting & Boring and other

Development Expenditure:

The cost of exploration and other

development expenditure incurred in

one “Five year” plan period will be kept

in Capital work-in-progress till the end of

subsequent two “Five year” plan periodsfor formulation of projects, before it is

written-off, except in the case of Blocks

identied for sale or proposed to be sold

to outside agency which will be kept in

inventory till nalisation of sale.

5.0 Investments:

Current investments are valued at the

lower of cost and fair value as at the

Balance Sheet date.

Investments in mutual fund are considered

as current investments.

Non-Current investments are valued at

cost. However, when there is a decline,other than temporary, in the value of the

long term investment, the carrying amount

is reduced to recognize the decline

6.0 Inventories:

6.1 Book stock of coal / coke is considered in

the accounts where the variance between

book stock and measured stock is upto

+/- 5% and in cases where the variance

is beyond +/- 5% the measured stock is

considered. Such stock are valued at netrealisable value or cost whichever is lower.

6.1.1 Coal & coke nes are valued at lower of

cost or net realisable value.

6.1.2 Slurry (coking & semi-coking), middling of

washeries and by products are valued at

net realisable value.

6.2 Stores & Spares:

6.2.1 The closing stock of stores and spare parts

has been considered in the accounts as

per balances appearing in priced stores

ledger of the Central Stores and as per

physically verified stores lying at the

collieries/units.

6.2.2 Stock of stores & spare parts at central &

area stores are valued at cost calculated

on the basis of weighted average method.

The year-end inventory of stores & spare

parts lying at collieries / sub-stores /

drilling camps/ consuming centres, initially

charged off, are valued at issue price

of Area Stores, Cost / estimated cost.

Workshop jobs including work-in-progress

are valued at cost. Similarly stock of

stationary at printing press and medicines

at central hospital are valued at cost.

6.2.3 Stock of stationery (other than lying at

printing press), bricks, sand, medicine

(except at Central Hospitals), aircraft



ANNUAL REPORT 2014-15 _________________________________________________________

138

spares and scraps are not considered in

inventory.

6.2.4 Provisions are made at the rate of 100%

for unserviceable, damaged and obsoletestores and at the rate of 50% for stores &

spares not moved for 5 years.

7.0 Depreciation:

7.1 Depreciation on xed assets is provided on

straight line method on the basis of useful

life specied in Schedule II of Companies

Act, 2013 except for assets mentioned

below, for which depreciation is provided

on the basis of technically estimated useful

life which are lower than that envisaged asper schedule II of Companies Act, 2013 to

reect/ depict a more true and fair useful

life of these assets :

Telecommunication Equipment : 6 & 9 years

Photocopying Machine : 4 years

Fax Machine : 3 years

Mobile Phone : 3 years

Digitally Enhance Cordless Telephone: 3 years

Printer & Scanner : 3 years

Earth Science Museum : 19 years

High volume respiratory dust samplers: 3 yrs.

Certain equipment/ HEMM : 7 years and 6 years

as applicable

SDL (equipment) : 5 years

LHD (equipment) : 6 years

7.2 The residual value of all assets for

depreciation purpose is considered as

5% of the original cost of the asset except

those item of assets covered under para

7.3

7.3 In case of assets namely Coal tub, winding

ropes, haulage ropes, stowing pipes &

safety lamps the technically estimated

useful life has been determined to be one

year with a nil residual value.

7.4 Depreciation on the assets added/

disposed of during the year is provided

on pro—rata basis with reference to themonth of addition/ disposal, except on

those assets with one year useful life and

nil residual value as mentioned under para

7.3, which are fully depreciated in the year

of their addition. These assets are taken

out from the assets after expiry of two

years following the year in which these are

fully depreciated.

7.5 Value of Land acquired under Coal

Bearing Area (Acquisition & Development) Act, 1957 is amortized on the basis of

the balance life of the project. Value of

leasehold land is amortized on the basis of

lease period or balance life of the project

whichever is earlier.

7.6 Prospecting, Boring and Development

expenditure are amortized from the year

when the mine is brought under revenue

in 20 years or working life of the project,

whichever is less.

7.7 Cost of Software recognized as intangible

asset, is amortised on straight line method

over a period of legal right to use or three

years, whichever is less; with a nil residual

value.

8.0 Impairment of Asset:

Impairment loss is recognised wherever

the carrying amount of an asset is inexcess of its recoverable amount and the

same is recognized as an expense in the

statement of prot and loss and carrying

amount of the asset is reduced to its

recoverable amount.

Reversal of impairment losses recognised

in prior years is recorded when there is

an indication that the impairment losses

recognised for the asset no longer exist

or have decreased.



ANNUAL REPORT 2014-15 _________________________________________________________

140

13.0 Taxation:

Provision of current income tax is madein accordance with the Income Tax Act.,

1961. Deferred tax liabilities and assetsare recognised at substantively enactedtax rates, subject to the consideration ofprudence, on timing difference, being thedifference between taxable income andaccounting income that originate in oneperiod and are capable of reversal in oneor more subsequent period.

14.0 Provision:

A provision is recognised when an

enterprise has a present obligation as aresult of past event; it is probable that anoutow of resources embodying economic

benefit will be required to settle theobligation, in respect of which a reliableestimate can be made. Provisions arenot discounted to present value andare determined based on best estimaterequired to settle the obligation at thebalance sheet date.

15.0 Contingent Liability :

Contingent liability is a possible obligationthat arises from past events and theexistence of which will be conrmed only

by the occurrence or non-occurrence ofone or more uncertain future events notwholly within the control of the enterpriseor a present obligation that arises frompast events but is not recognised becauseit is not probable that an outflow ofresources embodying economic benet

will be required to settle the obligations

or reliable estimate of the amount of theobligations can not be made.

Contingent liabilities are not provided forin the accounts and are disclosed by wayof Notes.

16.0 Overburden Removal (OBR) Expenses :

In open cast mines with rated capacity ofone million tonnes per annum and above,cost of OBR is charged on technically

evaluated average ratio (COAL:OB)

at each mine with due adjustment foradvance stripping and ratio-varianceaccount after the mines are brought torevenue. Net of balances of advance

stripping and ratio variance at the BalanceSheet date is shown as cost of removal ofOB under the head Non - Current Assets/Long Term Provisions as the case may be.

The reported quantity of overburden asper record is considered in calculatingthe ratio for OBR accounting where thevariance between reported quantity andmeasured quantity is within the lower ofthe two alternative permissible limits, asdetailed hereunder :

Annual

Quantum

of OBR Of

the Mine

Permissible limits of

variance

I II

%Quantum

(in Mill.Cu.

Mtr.)

Less than 1Mill. CUM

+/- 5% 0.03

Between 1and 5

Mill. CUM+/- 3% 0.20

More than 5Mill. CUM

+/- 2% Nil

However, where the variance is beyond thepermissible limits as above, the measuredquantity is considered.

17.0 Prior Period Adjustments and Prepaid

Expenses :

Income / expenditures relating to priorperiod and prepaid expenses, which donot exceed Rs. 0.10 crore in each case,are treated as income /expenditure of

current year.




141

NOTE – 34

ADDITIONAL NOTES ON ACCOUNTS FORMING PART OF THE

BALANCE SHEET AS AT 31st MARCH, 2015 & STATEMENT OFPROFIT & LOSS FOR THE YEAR ENDED ON THAT DATE

such accumulated leaves using theProjected Accrued Benets Method

with actuarial valuations being carriedout at each Balance Sheet date.

(4) Terminal benets: VRS benets are

recognized in the books in the year ofoccurrence.

DETAILS OF GRATUITY, LEAVE

ENCASHMENT AND OTHER EMPLOYEE

BENEFITS:

(Rs. In Crores)

PARTICULARS GRATUITY

(FUNDED)

LEAVE

ENCASHMENT

(UNFUNDED)

OTHER

EMPLOYEE

BENEFIT

(UNFUNDED)

Actuarial

Valuation as on

31.03.2015

646.90 234.76 115.49

Actuarial

Valuation as on

31.03.2014

618.37 214.04 109.84

Net

Incremental

Liability for

Current period

28.53 20.72 5.65

• Other Employee Benet includes LLTC/

LTA, Life Cover, Settlement Allowance

& Accidental Insurance, Fatal Mine

Accidental Benet and Post-Retirement

Medical Benet.

The following disclosures are madein accordance with AS-15 (Revised)pertaining to the Gratuity (Funded Plan):

1. BACKGROUND

Assets & Liabilities of Singrauli Divisionof Central Coalelds Ltd. (CCL) as on

01.04.1986 have been transferred toNorthern Coalelds Ltd., pursuant to the

directives issued by Govt. of India, Ministryof Energy, Deptt. of Coal vide letter no.

38011-1/83_CA dated 01.11.1985 by wayof bifurcation from CCL.

2. C O M P L I A N C E W I T H O T H E R

ACCOUNTING STANDARDS

I. AS-15 – “Accounting for Retirement

Benets”: The Company has adopted AS 15 (Revised) – Employee benets with

effect from 1st April, 2007, as under.

(1) Short-term employee benefits: The Company recognizes theundiscounted amount of short-termemployee benets expected to be paid

in exchange for services rendered asa liability (accrued expense) afterdeducting any amount already paid.

(2) Post -employment benef i ts : The Company operates definedcontribution plans pertaining to Coal

Mines Provident Fund schemes for allemployees.

(3) Other long-term employee benets: Entitlements to annual leave andsick leave are recognized when theyaccrue to employees. Sick Leavecan only be availed during serviceperiod while annual leave can eitherbe availed or encashed subject toleave rules of the Company. The

Company determines the liability for



ANNUAL REPORT 2014-15 _________________________________________________________

142

Table 1: Disclosure Item 120 (c)

Table Showing Changes in Present

Value of Obligations :

(Rs. In Crores)

Particulars As at 31/03/2015 As at 31/03/2014

P r e s e n t V a l u e o fObligation at Beginningof year

618.37 617.95

Interest Cost 47.02 50.25

Current Service Cost 34.30 31.48

Benets Paid 61.19 53.55

Actuar ial gain/loss onObligations

8.40 (27.76)

P r e s e n t V a l u e o fObligation at end of Year

646.90 618.37

Table 2: Disclosure Item 120 (e)

Table Showing Changes in Fair Value

of Plan Assets :

(Rs. In Crores)


Fair Value of Plan Assetat Beginning of year

645.94 635.15

Acquisition Adjustment NIL NIL

Expected Return onPlan Asset

51.68 53.99

Contributions 45.00 7.66Benets Paid 61.19 53.55

Actuarial gain/ loss onPlan Asset

6.97 2.70

Fair Value of Plan Assetat End of year

688.40 645.94

Table 3: Disclosure Item 120 (f)

Table showing Funded Status

(Rs. In Crores)


Present Value ofObligation at endyear

646.90 618.37

Fair Value of Plan Asset at end year

688.40 645.94

Funded Status 41.51 27.57

U n r e c o g n i z e dactuarial gain/ lossat end of the year

NIL NIL

Net Asset (Liability)R e c o g n i z e d i n

Balance Sheet

41.51 27.57

Table 4: Disclosure Item 120 (g)

Table showing Expense Recognized in

Statement of Prot and Loss :

(Rs. In Crores)

Particulars As at31/03/2015

As at31/03/2014


Past Service Cost NIL NIL

Interest Cost 47.02 50.25

Expected Return on Plan Asset 51.68 53.99

Curtailment Cost NIL NIL

Settlement Cost NIL NIL

Actuarial gain/loss recognized inthe year

1.41 (30.45)

Expense Recognized in Statementof Prot/Loss 31.05 (2.71)

Table 5: Disclosure Item 120 (l)

Table showing Actuarial Assumptions :


Mortal ity Table IALM (2006-08) ULT IALM (2006-08) ULT

Superannuat ion Age

60 60

Early Retirement &Disablement

10 PER THOUSANDP.A.

10 PER THOUSANDP.A.

6 above age 45 6 above age 45

3 between 29 and 453 between 29 and45

1 below age 29 1 below age 29

Discount Rate 8.50 8.50

Ination Rate 6.25 6.25

Return on Asset 8.50 8.50

Remaining WorkingLife

12 12

FORMULA USED PROJECTED UNITCREDIT METHOD

PROJECTED UNITCREDIT METHOD

Table 6: Disclosure Item 120 (o)

Movements in the Liability Recognizedin Balance Sheet

(Rs. In Crores)


O p e n i n g N e tLiability

(27.57) (17.20)

Expenses as above 31.06 (2.71)

Contributions 44.5 7.66

Closing Net Liability (41.51) (27.57)

C l o s i n g F u n d /Provision at end of

Year

646.90 618.37




143

The following disclosures are madein accordance with AS-15 (Revised)pertaining to the Leave EncashmentBenet (EL/HPL) (Unfunded Plan):

Table 1: Disclosure Item 120 (c):

Table Showing Changes in Present

Value of Obligations

(Rs. In Crores)


P r e s e n t V a l u eof Obl igat ion atBeginning of year

214.04 194.80

Interest Cost 15.47 15.10Current ServiceCost

22.75 30.05

Benets Paid 41.22 34.42

Actuarial gain/ losson Obligations

23.72 8.51

Present Value ofObligation at endof Year

234.76 214.04

Table 2: Disclosure Item 120 (g):

Table showing Expense Recognized in

Statement of Prot/Loss:

(Rs. In Crores)

Particulars As at

31/03/2015

As at

31/03/2014


Interest Cost 15.47 15.10 Actuarial gain/loss recognizedin the year

23.72 8.51

Expense Recognized inStatement of Prot/Loss

61.94 53.66

Table 3: Disclosure Item 120 (l):

Table showing Actuarial Assumptions


Mortality Table I AL M ( 2 00 6- 0 8)ULT.

IALM (2006-08)ULT.

Superannuation Age 60 60

Early Retirement &Disablement

10 PER THOUSANDP.A

10 PER THOUSANDP.A

6 above age 45 6 above age 45

3 between 29 and45

3 between 29 and45

1 below age 29 1 below age 29

Discount Rate 8.50 8.50

Ination Rate 6.25 6.25

Return on Asset - -

Remaining WorkingLife

12 12

FORMULA USED PROJECTED UNITCREDIT METHOD

PROJECTED UNITCREDIT METHOD

Table 4: Disclosure Item 120 (o):

Movements in the Liability Recognized

in Balance Sheet

(Rs. In Crores)


Expenses as above 61.94 53.66

Closing Net Liability 61.94 53.66

C l o s i n g F u n d /Provision at end ofYear

234.76 214.04

II. AS-17 – “Segment Reporting”: TheCompany is primarily engaged in a singlesegment business of production and sale ofCoal. There is no other reportable primarysegment identiable in accordance with

AS-17.

III. AS-18 – “Related Party Disclosure”: In view of the exemption granted tostate controlled enterprises as regardsrelated party relationship with other statecontrolled enterprises and transactions

with such enterprises; no disclosure underthe AS-18 is required.

Directors’ Remuneration:

(Rs. In Crores)

Particulars Chairman-cum-

Managing Director Functional Directors

Part time Non Ofcial

Directors

31.03.2015 31.03.2014 31.03.2015 31.03.2014 31.03.2015 31.03.2014

Sa la ry &

Allowance 0.10 0.07 0.61 0.86 - -

PRP - - - - - -

Prov ident

Fund0.01 0.01 0.07 0.09 - -

Perquisites - - 0.06 0.07 - -

Retirement

Benefts- - 0.20 - - -

Sitting fees - - - - 0.07 0.10



ANNUAL REPORT 2014-15 _________________________________________________________

144

IV. AS-22 – “Accounting for Taxes on Income”:

The details of deferred tax asset andliabilities are as under -

(Rs. In Crores)

Deferred Tax Liability As on

31.03.2015

As on

31.03.2014

Related to Fixed Assets 114.13 108.46

Related to Development Expenses 64.00 61.51

Total 178.13 169.97

Deferred Tax Assets

Related to Disallowances under I.T Act

1961

325.58 186.83

Related to Provision for current assets/

loans & advances/xed assets/others

266.02 325.15

Total 591.60 511.98

Deferred tax Assets/ Liabilities (Net) 413.47 342.01

V. AS-28 – “Impairment of Assets”: In the opinion of the management, thereare no external circumstances indicatingimpairment loss of cash generating units.

VI. AS-29 – “Provisions, Contingent

Liabilities and Contingent Assets” :

The position of the various Provisions ason 31.03.2015 is given below :

(Rs. In Crores)Provision Opening

Balance

as on

01.04.2014

Addition

during

the

period

Write back/

Adj./Pymt.

During the

period

Closing

Balance

as on

31.03.2015

For Proposed/Interim Dividend - 4,563.99 4,563.99 -

For Corporate Dividend Tax - 912.53 912.53 -

For Gratuity 618.37 89.71 61.18 646.90

For Leave Encashment 214.04 61.94 41.22 234.76

For Other Employee Benefts 109.84 30.39 24.74 115.49

For Income Tax - 1,646.00 1,646.00 -

Wealth Tax 0.50 1.25 0.50 1.25

PPLB (Ex gratia) 48.60 68.49 55.62 61.47

Performance Related Pay 162.28 27.93 (4.33) 194.54

Excise Duty on Closing Stock of Coal 51.44 - 11.67 39.77

OBR Adjustment Account 4,428.11 977.03 - 5,405.14

Mine Closure Expense 327.56 118.91 (25.96) 472.43

Bad & Doubtful debts 653.68 60.11 5.98 707.81

Provision for Doubtful Advances &

Other current/non current assets

52.57 12.00 5.39 59.18

CWIP 1.41 2.22 0.04 3.59

Surveyed off F/Assets 17.00 - 16.65 0.35

Other Provisions-Fixed Assets 0.12 - - 0.12

Other Provisions-CMPF & PF on LE 24.87 2.25 - 27.12

Stock of Stores & Spares 43.66 3.33 0.35 46.64

Contingent Liabilities and Commitments (to

the extent not provided for)

1. Estimated amount of contract remaining

to be executed on Capital accountand not provided for amounting to Rs.

524.49 Crores (Rs. 622.22 Crores as on31.03.2014) and on Revenue accountand not provided for amounting to Rs.

4176.86 Crores (Rs. 2153.56 Crores ason 31.03.2014)

2. Claims against the Company notacknowledged as debts as under.

(Rs. In Crores)

Particulars As on

31.03.2015

As on

31.03.2014

Sales Tax & Entry Tax 1040.06 737.92

Local Body Tax 165.27 164.81

Land Revenue 117.05 117.05

Contractual Works 64.67 72.69

Income Tax 3267.21 2022.54

Claim of UPCCL (UPSEB) 2.07 2.07

Claim of UPRVUNL for Incentives 24.05 24.05

MPGATSVA & Sales Tax thereon* 0 40.34

Excise and Service Tax, Interest and

Penalty.325.54 2.78

Others* 6.46 9.43

Total 5012.38 3193.68

* Includes SSADA Cess on sale of Coalhas not been collected from a few partiesafter the stay obtained by the respectiveparties from Hon’ble High court, Allahabad.The amount not collected on this accountamounts to Rs. 0.34 Crores upto31.03.2015 (As at 31.03.2014 Rs. 2.99Crores) has been shown as Contingent

Liability. Pending litigations as stated above would

have no impact on the nancial position in

the nancial statement for the year ended

31.03.2015.

3. GENERAL

(A) The Company has executed collateralsecurity by creating hypothecation chargeover its present and future current assetscomprising of Book Debts, Stock of Raw

Materials, Semi Finished and Finished




145

Goods, Stores & Spares not relating toPlant & Machinery (Consumable Store &Spares) for a sum of Rs. 165.00 Crores(Previous year Rs. 165.00 Crores) for

working capital facility drawn and to bedrawn by Coal India Ltd., from the StateBank of India Consortium Banks.

(B) A sum of Rs. 9.06 crores (as on 31.03.2014Rs. 5.11 crores) are kept in the Company’scustody as Securities by way of depositsin the form of Fixed Deposit Receipt andNational Savings Certicate received from

the suppliers, contractors etc.

Further, Bank Guarantees worth Rs.402.39 crores (as on 31.03.2014 Rs.295.52 crores) have also taken fromsuppliers & contractors on account ofexecution of works/ supply etc. which havenot been accounted for.

(C) Micro and small enterprises under theMicro, Small and Medium EnterprisesDevelopment Act, 2006 have beendetermined based on the informationavailable with the Company and therequired disclosures are given below:

(Rs. in Crores)

As on 31.03.15

As on

31.03.14

(a) Principal amount remaining unpaid 0.40 0.49

(b) Interest due thereon - -

(c) Interest paid by the Companyin terms of Section 16 of Micro,Small and Medium EnterprisesDevelopment Act, 2006, alongwith the amount of the paymentmade to the supplier beyond theappointed day during the year

- -

(d) Interest due and payable for theperiod of delay in making payment(which have been paid but beyondthe appointed day during the year)but without adding the interestspecied under Micro, Small andMedium Enterprises Development Act, 2006

- -

(e) Interest accrued and remainingunpaid

- -

(f) Further Interest remaining due and

payable even in the succeeding

year, until such date when the

interest dues as above are actually

paid to the small enterprise

- -

(D) All current assets including loans andadvances have realizable value in theordinary course of business at least equalto the amount at which they are stated.

Further adequate provision has also beenmade in respect of all known liabilities.

(E) Letters of conrmation of Account Balance

have been sent to all the creditors/suppliers/ Sundry Debtors/ Advances/Deposits on balances appeared in ourbooks as on 31.03.2015.

(F) Basic Criteria for identifying the Current/Non Current Assets/Liabilities:

1. An asset has been classified ascurrent when it satises any of the

following criteria:

(a) It is expected to be realizedin, or is intended for sale orconsumption in, the company’snormal operating cycle;

(b) It is held primaril y for thepurpose of being traded;

(c) It is expected to be realizedwithin twelve months after thereporting date; or

(d) It is cash or cash equivalentunless it is restricted frombeing exchanged or used tosettle liability for at least twelvemonths after the reporting date.

All other assets have been classied as

non-current.

2. An operating cycle is the timebetween the acquisition of assetsfor processing and their realizationin cash or cash equivalents. Wherethe normal operating cycle cannotbe identied, it is assumed to have

duration of 12 months.

3. A liability has been classified ascurrent when it satises any of the

following criteria:



ANNUAL REPORT 2014-15 _________________________________________________________

146

a) It is expected to be settled in thecompany’s normal operatingcycle;

b) It is held primarily for thepurpose of being traded;

c) It is due to be settled withintwelve months af ter thereporting date; or

d) The company does not havean unconditional right to defersettlement of the liability forat least twelve months afterthe reporting date. Terms of aliability that could, at the optionof the counterparty, result in itssettlement by the issue of equityinstruments do not affect itsclassication.

All other liabilities have been classied as

non-current.

(G) Interest received on Income Tax Refundsare accounted for as & when refund ordersare received from Income Tax Department.

(H) Roads and Culverts situated in theresidential / ofcial areas are classied

under “Buildings” and those in mining areas

are classied under “Mines Development”.

(I) Buildings include cost of electrical ttings,

water supply arrangements and sanitaryttings.

(J) Departmental expenses are not capitalizedon Fixed Assets except in cases of draglineand high capacity shovel on consideration

of its materiality.(K) Gross block as well as depreciation on

surveyed off assets are taken out of naturalheads of xed assets and provision for

depreciation respectively and residualvalue at 5% of Book Value are transferredto “Surveyed off Assets”. The residual

value and the estimated net realizablevalue, whichever is lower, is separatelyshown in “Surveyed off Asset under Fixed

Assets (Note 10A).

(L) The difference in exchange rates onaccount of principle amount of loan iscapitalized except where the assetssurveyed – off due to damage / re which

are charged to revenue .The difference inexchange rates on account of payment ofinterest is charged to revenue.

(M) The company has no amount, which isrequired to be transferred to the InvestorsEducation and Protection Fund.

(N) In the absence of notication of rules by the

Central/ State Governments, the effectsof the provisions of the The Mines andMinerals (Development and Regulations)

Amendment Act, 2015 has not beenconsidered in the Accounts.”

(O) Capacity & Production:

(i) Licensed Capacity Not applicable

(ii) Installed Capacity Could not be assessed due todiversity.

(iii) Production of Coal. 724.84Lakh tonnes during yearended 31.03.2015 (Previousyear 686.39 Lakh tonnes).

(iv) Production of

deshaled Coal.

(Included in (iii)above)

34.41 Lakh tonnes during yearended 31.03.2015 (Previous

year 37.78 Lakh tonnes).

(P) Earning in Foreign Exchange:

(Rs. In Crores)

Current year Previous year

NIL NIL

(Q) Expenditure in Foreign Currency:

(Rs. In Crores)

S.

No.

Particulars For the

year ended31.03.2015

For the

year ended31.03.2014

i) C.I.F. Value of Imports:

Raw materials

Components, Stores &Spare Parts

92.26 126.80

Capital Goods - 1.83

ii) Repayment of JBIC Loan - 322.72

iii) Repayment of IBRD Loan - 355.19

iv) Travelling Expenses 0.01 0.08

v) Interest/Commitment/ Agency charges etc. of

IBRD/JBIC

- 8.33




147

(R) Impact on Prot due to treatment of

Depreciation as per Companies Act,

2013

Effective from April 1, 2014, the Companyhas charged depreciation based on therevised remaining useful life of the assetsas per the requirement of Schedule IIof Companies Act, 2013. Due to abovechanges, prot for the period ended 31st

March, 2015 and xed assets decreased

by Rs. 51.92 Crores.

Further, based on transitional provisionprovided in Note 7(b) of Part C of ScheduleII of Companies Act, 2013, an amount

of Rs. 34.38 Crores has been adjusted

(reduced) with retained earnings/ xed

assets.

(S) Impact on Prot, Assets and liabilities

due to change in Accounting PoliciesPoint No. 2.2, 3.1, 6.2.2, 7.7 of Note 33

(Accounting Policies)

There is no impact due to changein Accounting Policies in Profit in theStatement of Prot and Loss and in assets

and liabilities in the Balance Sheet.

(T) PREVIOUS PERIOD/ YEAR’S FIGURES

Previous period/ year’s figures havebeen re-arranged/ re-grouped wherever

considered necessary to make themcomparable with those of current year.

(D.K.Sharma) (P.J.Mohan Rao) (P.S.R.K.Sastry)

Company Secetary General Manager(Fin) Director (Fin) & CFO

DIN-07163164

(T.K.Nag)


DIN 02219348


For Prakash & Santosh


Firm Regn. No. 000454C

(CA. Santosh Gupta)

Partner,

M. No.- 016304

Dated : 25.05.2015

Place : Varanasi.



ANNUAL REPORT 2014-15 _________________________________________________________

148

ADDENDUM TO DIRECTORS’ REPORT (UNDER SECTION 134(3) OF

THE COMPANIES ACT) – INDEPENDENT AUDITORS’ REPORT

ToThe Members of Northern Coalelds Limited,

Singrauli –M.P.

This audit report supersedes the earlier reportdated 25.05.2015 and is being revised in the newformat as per the directions of the Controller & Auditor General of India vide their letter no 72/ Accts/CIL and its Subsidiary/Third Phase/2014-15dated 03.06.2015.

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying nancial

statements of Northern Coalelds Limited (‘the

Company”), which comprise the Balance Sheet as

at March 31, 2015, and the Statement of Prot and

Loss and Cash Flow Statement for the year thenended and a summary of signicant accounting

policies and other explanatory information inwhich are incorporated the accounts of 6 Projects/Units Viz Kakri ,Bina & Krishnashila, Khadia,

Nigahi,Jayant, Cental Workshop Jayant, auditedby Branch Auditors.

MANAGEMENT’S RESPONSIBILITY FOR

THE FINANCIAL STATEMENTS

The Company’s Board of Directors is responsiblefor the matters in section 134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation

of these nancial statements that give a true

and fair view of the nancial position, nancial

performance and cash ows of the Company

in accordance with the accounting principlesgenerally accepted in India, including the Accounting Standards specied under Section

133 of the Act, read with Rule 7 of the Companies(Accounts) Rules, 2014. This responsibility alsoincludes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of the Companyand for preventing and detecting the frauds andother irregularities; selection and applicationof appropriate accounting policies; making

judgments and estimates that are reasonable

and prudent; and design, implementation andmaintenance of internal nancial control, that were

operating effectively for ensuring the accuracy andcompleteness of the accounting records, relevantto the preparation and presentation of the nancial

statements that give a true and fair view and arefree from material misstatement, whether due tofraud or error.

AUDITOR’S RESPONSIBILITY

Our responsibility is to express an opinion on

these nancial statements based on our audit.

We have taken into account the provisions of the

Act, the accounting and auditing standards and

matters which are required to be included in the

audit report under the provisions of the Act and

the Rules made there under.

We conducted our audit in accordance with the

Standards on Auditing specied under section

143(10) of the Act. Those Standards require that

we comply with ethical requirements and plan and

perform the audit to obtain reasonable assurance

about whether the nancial statements are free

from material misstatement.

An audit involves performing procedures to

obtain audit evidence about the amounts and

disclosures in the financial statements. The

procedures selected depend on the auditor’s

judgment, including the assessment of the

risks of material misstatement of the nancial

statements, whether due to fraud or error. In

making those risk assessments, the auditor

considers internal nancial control relevant to the

Company’s preparation of the nancial statements

that give true and fair view in order to design

audit procedures that are appropriate in the

circumstances. An audit also includes evaluating

the appropriateness of accounting policies

used and the reasonableness of the accounting

estimates made by Company’s Directors, as

well as evaluating the overall presentation of the

nancial statements.




149

We believe that the audit evidence we have

obtained is sufcient and appropriate to provide

a basis for our audit opinion on the nancial

statements.

OPINION

In our opinion and to the best of our information

and according to the explanations given to us,

the aforesaid financial statements, give the

information required by the Act in the manner so

required and give a true and fair view in conformity

with the accounting principles generally accepted

in India;

(a) in the case of the Balance Sheet, ofthe state of affairs of the Company asat March 31, 2015;

(b) in the case of the Statement of Protand Loss, of the prot for the year

ended on that date; and

(c) i n the case of the Cash FlowStatement, of the cash ows for the

year ended on that date.

EMPHASIS OF MATTERS

We draw attention to the following matters in theNotes to the nancial statements:



ANNUAL REPORT 2014-15 _________________________________________________________

150

AUDITOR’S REPORT MANAGEMENT’S REPLY

I. NON CURRENT ASSETS (FIXED ASSETS)

During the year a provision equivalent to

depreciation of Rs. 2.18 Crores has been madein respect of assets (Capital WIP) which couldnot be put to use for more than 3 years fromthe date of purchase/acquisition/construction.We are unable to comment on the adequacyor otherwise of such provision (Refer foot noteto Note No.10 B).

Assets (Capital WIP), which could not be put

to use for more than 3 years from the date ofpurchase /acquisition /construction, a provision,equivalent to depreciation from the fourth yearand onwards has been made (Refer footnoteof Note - 10B of Balance Sheet).

II. CURRENT AND NON CURRENT ASSETS

(OTHER THAN FIXED ASSETS)

A) Loans & Advances and Other Current

and Non Current Assets: Provision ofRs. 59.18 crores have been made forLoans & Advances and Other Current Assets as on 31st March, 2015. We areunable to comment upon the adequacyor otherwise of such provision. (ReferNote No. 2 (vi) of Additional Notes on Accounts - Note 34).

100% provision have been made againstdoubtful loans and advances, receivables and

other current assets as on 31st March, 2015.(Refer Foot Note of Note No. 12, 18, 19 ofBalance Sheet)

B). Inventories:

a) Provision of Rs. 25.02Crores hasbeen made in respect of stores and

spare parts, unmoved for 5 years upto31.03.2015. We are unable to commenton the adequacy or otherwise of suchprovision (Refer foot note to Note No.15).

Provisions are made at the rate of 100% forunserviceable, damaged and obsolete stores

and at the rate of 50% for stores & spares notmoved for 5 years (as per Accounting PolicyNote- 33 Para no. 6.2.4).

b) Provision of Rs.20.08 Crores has beenmade in respect of obsolete/damaged/unserviceable stores and spare partsupto 31.03.2015. We are unable to

comment on the adequacy or otherwiseof such provision (Refer foot note to NoteNo.15).

Provisions are made at the rate of 100% forunserviceable, damaged and obsolete storesand at the rate of 50% for stores & spares notmoved for 5 years (As per Accounting Policy

Note- 33 Para no. 6.2.4).

C). Trade Receivables:

a). Provision of Rs. 54.13 Crores hasbeens made during the year underconsideration against disputed debtswith NTPC of Rs. 84.58 Crores , duefor a period exceeding six months onaccount of GCV analysis/ grade slippage(Refer foot note to Note No.16).

This is a statement of fact, calls for no commentssepartely



ANNUAL REPORT 2014-15 _________________________________________________________

152

Other Matters

We did not audit the financial statements/

information of 6 projects/units included in thefinancial statements of the Company. Thefinancial statements/information of thesebranches have been audited by the branchauditors whose reports have been furnished tous, and our opinion in so far as it relates to theamounts and disclosures included in

respect of these branches, is based solely onthe report of such branch auditors.

Report on other Legal and Regulatory

Reuirements

1. As required by the Companies (Auditor’sReport ) Order, 2015 issued by the CentralGovernment of India in terms of sub-section(11) of Sec 143 of the act, we give in the Annexure - Statement on the matters specied

in the paragraphs 3 and 4 of the order

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

a) We have sought and obtained all theinformation and explanations which tothe best of our knowledge and beliefwere necessary for the purposes of ouraudit.

b) In our opinion proper books of accountas required by law have been kept bythe Company so far as appears from ourexamination of those books and proper

returns adequate for the purposes ofour audit have been received from theprojects/units not visited by us.

c) The reports on the accounts of theprojects/units of the Company auditedunder Section 143(8) of the Act bybranch auditors have been sent to usand have been properly dealt by us inpreparing this report.




153

d) the Balance Sheet and the Statementof Prot and Loss, and Cash FlowStatement dealt with by this Report arein agreement with the books of account

and the returns received from theprojects/units not visited by us.

e) In our opinion, the aforesaid nancialstatements comply with the AccountingStandards specified under Section133 of the Act, read with Rule 7 of theCompanies (Accounts) Rules, 2014.

f) On the basis of written representationsreceived from the directors as on 31stMarch 2015, taken on record by theBoard of Directors, none of the directors

is disqualied as on 31st March, 2015,from being appointed as a director interms of Section 164(2) of the Act.

g) With respect to the other mattersincluded in the Auditor’s Report and toour best of our information and accordingto the explanations given to us :

i) The Company has disclosed inS.No.2 VI of note no.34 that pendinglitigations as mentioned therein,would not have any material impact

on its nancial position.ii) The company did not have any long-

term contracts including derivativecontracts.

iii. As per information given to usby the Company, there were noamounts which were required tobe transferred to the InvestorsEducation and Protection Fund bythe Company.

Thanking youYours Faithfully

FOR PRAKASH & SANTOSHChartered Accountants

Sd/-

(CA Santosh Gupta)Partner

Membership No. 016304ICAI Firm Reg. No.000454C

Place: Kanpur

Date: 3rd June, 2015

(T. K. Nag)Chairman-cum-Managing Director

DIN- 02219348



ANNUAL REPORT 2014-15 _________________________________________________________

154

ANNEXURE ‘A’ TO AUDITORS’ REPORT

REFERRED TO IN PARAGRAPH ‘REPORT ON LEGAL AND

REGULATORY REqUIREMENTS’ OF OUR REPORT OF EVEN DATE IN RESPECT OF

NORTHERN COALFIELDS LIMITED AS AT 31ST MARCH, 2015

AUDITOR’S REPORT MANAGEMENT’S REPLY

(i)(a) The company has maintained properrecords showing full particulars includingquantitative details and situation of Fixed Assets in general. However, in the casesof furniture and xtures, light ttings and

ofce equipments, the same have not

been specically linked up with the Fixed

Assets Register.

This is a statement of fact, calls for no commentsseparately.

(b) As explained to us, the physica lverication of all items of xed assets

except overhead lines and undergroundcables have been carried out by therms of Chartered Accountants during

the year. In our opinion, the frequencyof verifications of these assets isreasonable in relation to the size andoperations of the company. No material

discrepancies have been noticed by themanagement on such verication.


(ii) (a). The management has, at regular interval,conducted the physical verication of

stock of coal. The physical verication of

stock of coal has also been conducted atthe end of the year by a team appointedby Coal India Ltd.. Physical verication of

stores and spares has been conductedduring the year by the rms of Chartered

Accountants appointed for the purpose.

In our opinion, the frequency of suchphysical verications is reasonable.


(b). The procedures of physical verication of

inventory followed by the managementare in general reasonable and adequatein relation to the size of the company andnature of its business.





155

(c). The Company is maintaining properrecords of Inventory including stores andspare items. No material discrepancy

was noticed on physical verificationof closing stock of coal except theftof stores items worth Rs.56.44 lacsfor which FIR lodged on 27.11.2014.The discrepancies noticed on physicalverication of stores and spares have

been adjusted and provided for in theaccounts pending further scrutiny/enquiry.


(iii)(a). As informed to us, the Company has notgranted any secured or unsecured loansto companies, firms or other partiescovered in the register maintained undersection 189 of the Companies Act 2013.


(b). As the Company has not granted anyloan and as such clause (b) is notapplicable to the Company.


(iv). In our opinion the Internal ControlSystem with regard to purchase ofinventory and xed assets and for sale

of coal needs to be strengthened tomake it commensurate with the size ofthe Company and nature of its businessin view of the following:


a). Time lag in adjustment of advancesafter receipt of material, non-linking ofadvances with corresponding liability,thereby resulting in accumulation ofunadjusted advances and liabilities.

As a policy and practice, on receipt of materialsDRR are prepared and advances are adjusted/liabilities are created wherever necessary.

b). Non obtaining of periodic conrmation/

reconciliation of outstanding balancesappearing under Current and NonCurrent Assets and Current and Non-Current Liabilities.

Letters of conrmation of Outstanding Balance

have been sent to the creditors/ suppliers/Sundry Debtors appeared in our books.

c). Internal Control on purchases madefrom/through the Holding Company onbehalf of the Company could not becommented upon by us in the absenceof any detailed information of the same.

The Purchases are made by the HoldingCompany on behalf of the company as per thepurchases manual after observing the laid downpolicies/ guidelines/circulars etc. issued by theCIL and government.



ANNUAL REPORT 2014-15 _________________________________________________________

156

d). Non follow up of advances to suppliers. As per our test checks and as reportedby the Branch Auditors, we have notobserved any continuing failure tocorrect major weaknesses in internalcontrol system during the course of ouraudit.

No Comments.

(v). The company has not accepted depositfrom Public and directives issued byReserve Bank of India and the provisionsof sections 73 to 76 or any other relevantprovisions of the Companies Act 2013and the rules framed there under arenot applicable.


(vi). The company has maintained costrecords as specied by the Central

Government under sub-section (l) ofsection 148 of the Companies Act, 2013.On review of books of account, wenoticed that these have been made andmaintained, however, we have not madea detailed examination of such recordswith a view to determine whether theyare accurate or complete.


(vii). (a). According to the information and

explanation given to us, the Companyis generally regular in depositingundisputed statutory dues includingIncome Tax, Sales Tax, Wealth Tax,Service Tax, Custom duty, Excise Duty,VAT and Cess and other statutory duesas applicable to the Company with theappropriate authorities. As informed tous, the provision of Employees StateInsurance Act is not applicable to theCompany. Further as per informationand explanations given to us, no

undisputed amount payable in respectof the aforesaid dues were outstandingas at 31st March, 2015 for a period ofmore than six months from the date theybecame payable.

This is a statement of fact, calls for no comments

separately.

b) According to information and explanationsgiven to us, the following dues in respectof Income Tax, Sales Tax, Wealth Tax,Service Tax, Custom duty, Excise duty,VAT and Cess have not been depositedon account of dispute:-





159

ANNEXURE TO AUDITORS’ REPORT

ANNEXURE B

DIRECTIONS UNDER SECTION 143(5) OF THE COMPANIES ACT, 2013IN RESPECT OF NORTHERN COALFIELDS LIMITED,

SINGRAULI FOR THE YEAR ENDED 31ST MARCH 2015

Directions Issued Statutory Auditor’s Commernts Management’s Reply1. If the Company has been selectedfor disinvestment, a complete statusreport in terms of valuation of Assets(including intangible assets and land) andliabilities (included Committed & GeneralReserves) may be examined including the

mode and present stage of disinvestmentprocess.

This clause not applicable to theCompany as it has not been selectedfor disinvestment.

This is a statement of fact,calls for no commentsseparately.

2. Please report whether there are anycases of waiver/ write off of debts/ loans/interest etc.

If yes, the reasons there for and theamounts involved.

There has been no case of waiver,write-off of debts, loans etc.


3. Whether proper records are maintainedfor inventories lying with third parties andassets received as gift from Governmentor other authorities.

There is no inventory lying with thirdparties and no assets have beenreceived as gift from Government orother authorities.


4. A report on age-wise analysis ofpending legal/ arbitration cases includingthe reasons of pendency and existence/effectiveness of a monitoring mechanismfor expenditure on the all legal cases(foreign and local) may be given.

The details of pending legal casesin various courts and also arbitrationproceeding before the arbitrator areannexed as Annexure-I , based as perinformation and explaination given bythe management and have been testexamined by us. In most of the casespleadings have been exchangedbetween parties and pending for nalhearing.

The expenditure in defending the casesis monitored by the Legal Departmentof the Company and system prevailingseems to be effective.


FOR PRAKASH & SANTOSH


Sd/-(CA Santosh Gupta)

Partner Membership No. 016304

ICAI Firm Reg. No.000454CPlace: Kanpur

Date: 3rd June, 2015


DIN- 02219348



ANNUAL REPORT 2014-15 _________________________________________________________

160

ANNEXURE TO AUDITORS’ REPORT

ANNEXURE B

SUB-DIRECTION FOR AUDIT OF COMPANIES ENGAGED IN COAL MININGIN RESPECT OF NORTHERN COALFIELDS LIMITED

FOR THE YEAR ENDED 31ST MARCH 2015

Directions Issued Statutory Auditor's Commernts Management's Reply

1. Provisioning done in case

of unpaid amount on GCV

issues may be examined.

Latest GCV dues position of

concerned subsidiaries of CIL

as on 31.03.2015 is required

to be examined.

With the introduction of Gross Caloric value (GCV)

system of grading of coal w.e.f. 1st January 2012,

supply of coal to NTPC was billed at declared

grade of coal corresponding to the GCV range of

the coal supplied. With effect from October 2012

NTPC released payment based on GCV determined

unilaterally at the receiving end, contrary to the

provision of Fuel Supply Agreement which stipulates

that the GCV is to be determined at the loading end

by joint collection, preparation, testing and analysis

of the coal being supplied.

As a result an amount of Rs. 669.89 Crore (Basic

bill value Rs.643.88 crore and incentive for 2012-13

Rs.26.01 crore) was unilaterally withheld by NTPC for

the period October, 2012 to September, 2013 as on

31.03.2015 from the bills of the Company in respect

of supply of coal, which was against the provision

of FSA. The issue was taken up with the Ministry

of Power through the Ministry of Coal for resolution

which resulted in incorporation of a provision forthird party sample collection, preparation, testing

and analysis at the point of loading in the FSA. Such

third party sampling/analysis was implemented from

October 2013.

For an appropriate resolution of the issue, the Govt.

of India advised for extrapolation of the result of

the third party sampling/analysis during October

– December 2013 to the supplies during the past

period from October 2012 to September 2013. On

the basis of this settlement formula an amount of

Rs. 669.89 crore (Basic bill value Rs. 643.88 crore

and incentive for 2012-13 Rs. 26.01 crore) has beenprovided in the Accounts upto 31.03.2015.

This is a statement of fact, calls

for no comments separately.

It may also be conrmed

whether the annual accounts

have been prepared/

maintained as per the New

Companies Act 2013.

We conrm that annual accounts have been prepared

as per the New Companies Act, 2013.

2. Valuation of inventories

with compliance to Accounting

Standard-2 in entirety.

Inventories have been valued as per AS-2. This is a statement of fact, calls





161

a) Whether stock

measurement was done

keeping in view the contour

map. Whether physical stock

measurement reports areaccompanied by contour map

in all cases? Whether new

heap, if any, created during

the year has got the approval

of the competent authority?

Stock measurement has been done keeping in view

the contour map and PV of stock measurement

reports are accompanied by contour map. We have

been explained that new heap wherever created has

got the approval of competent authority.



b) Whether there is age wise

analysis of non-vendable

stock of coal? Is there any

substantial variance (beyond

+/- 5%) found on measurement

of non-vendable stock of coal?

If yes, has it been properlyrecorded with reasons?

Whether valuation of such

stock was as per the laid down

accounting practice by the

competent authority.

Not applicable because non-vendable stock is NIL This is a statement of fact, calls


c) As per the new policy

adopted by CIL as well as

Government of India, HSD is

to be procured at the projects/

mines at bulk rate. Whether

the contractors who are

purchasing diesel at bulk rateare allowed price escalation at

bulk rate instead of retail rate.

For new contracts having provision for procurement

of HSD at bulk rate, escalation/ descalation is

provided/ recovered on bulk rate. However, other

older contracts are being governed as per NIT

provisions of retail rate.



d) Whether provisions in

Consolidated Financial

Statement (CFS) under the

New Companies Act 2013

are made with a view to

representing true and fair

view of nancial condition

and operating result of the

business entity.

Not applicable. This is a statement of fact, calls


e) Special emphasis shouldbe given to satisfy that the

CFS has been prepared in

accordance with the AS 21. 23

and 27.

Not applicable. This is a statement of fact, callsfor no comments separately.

3. It may be veried that the

capital expenditure incurred

on assets not belonging to the

company has been properly

identied and accounted for

as per established accounting

principles.

Yes, no capital expenditure incurred during the year

2014-15 on assets not belonging to the company.





ANNUAL REPORT 2014-15 _________________________________________________________

162

4.Special emphasis on

compliance with respect to

observations / comments

raised by Statutory Auditors/

Govt. Auditors in 2013-14 andalso in the Review Report on

Half Yearly Accounts for the

year 2014-15.

Necessary compliance has been done. This is a statement of fact, calls


5 It may be veried that the

third party conrmation on

debtors, creditors, bank

balances, account receivable,

account payable and loans

and advances have been

done in full? If not, party-wise

including percentage of such

unconrmed amount may alsobe reported. Similarly, whether

separate Escrow Fund

Accounts have been opened/

maintained or earmarked

in the Bank in CIL and its

subsidiaries, for the specic

purpose.

Letter of conrmation in respect of S/debtors, S/

Creditors have been sent half yearly and in few

cases conrmation from them were received.

Wherever there is any difference, the matter taken up

for reconciliation. Party wise quantum of uncomed/

unrecon-ciled balances are not made available by

the company.

Escrow A/c with UBI, Morwa branch for mine closure

plan has been opened for all the projects.



FOR PRAKASH & SANTOSHChartered Accountants

Sd/-

(CA Santosh Gupta)Partner

Membership No. 016304ICAI Firm Reg. No.000454C

Place: Kanpur Date: 3rd June, 2015


DIN- 02219348




163

ANNEXURE – I

As on 31.03.2015

SI.No.

Court’s Name Number ofCases

01. Supreme Court 30

02. High Court of MP at Jabalpur (Including IR & R&R) 306

03. High Court of UP at Allahabad (Including IR & R&R) 101

04. High Court Delhi 07

05. High Court Calcutta 45

06. Other’s High Court (Rajasthan, Lucknow bench, Ernakulam, Indore bench,Jharkhand, C.G., Bombay & Gujarat.

20

07. (i) Dist. Court of Singrauli (MP)(ii) Dist. Court of Sonebhadra (UP)

(iii) Other’s Dist. Court/ADJ Court, Chandauli, Varanasi, Jamshedpur, Rewa, Am-bikapur, Ahmadabad, Allahabad, Deosar, State Forum Lucknow & ALC (c) Satna.

(iv) Other Court (Dist. Court Sidhi & Collector of Stamp Duty.)

(v) NGT, Bhopal

8839

13

06

01

08. Tribunal Under (A&D) Act. 1957 & Various Court relating to R & R Cases 378

09. CGIT 31

10. Arbitration Proceeding before Arbitrators 21

Total 1086



ANNUAL REPORT 2014-15 _________________________________________________________

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA

UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013

ON THE FINANCIAL STATEMENTS OF NORTHERN COALFIELDS LTD.

FOR THE YEAR ENDED 31 MARCH 2015

The preparation of nancial statements of Northern Coalelds Limited for the year ended 31st March

2015 in accordance with the nancial reporting framework prescribed under the Companies Act, 2013

is the responsibility of the management of the company. The statutory auditor/auditors appointed bythe Comptroller and Auditor General of India under Section 139(5) of the Act is/are responsible forexpressing opinion on the nancial statements under section 143 of the Act based on independent

audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. Thisis stated to have been done by them vide their Audit Report dated 03.06.2015.

I, on behalf of the Comptroller and Auditor General of India have conducted a supplementary auditunder section 143(6)(a) of the Act of the nancial statements of Northern Coalelds Limited for the

year ended 31st March 2015. This supplementary audit has been carried out independently withoutaccess to the working papers of the statutory auditors and is limited primarily to inquiries of the statutoryauditors and company personnel and a selective examination of some of the accounting records.

On the basis of my audit nothing signicant has come to my knowledge which would give rise to any

comment upon or supplement to Statutory Auditors report.

Annual Report and Account of NCL 14-15English

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