Annualreport12 13 PDF

w ering In
po
a
di
Em
ANNUAL REPORT & ACCOUNTS

2012-13
EASTERN COALFIELDS LIMITED

( A Subsidiary of Coal India Limited )
SANCTORIA , P.O. DISHERGARH, DIST. BURDWAN
CONTENTS
Page No.
1.
Management/Bankers/Auditors
2.
Bankers / Auditors / Vision / Mission Statement
3.
Notice of Annual General Meeting
4.
Chairman's Statement
5.
Directors' Report
6.
Comments of the Comptroller and Auditor

General of India
98
7.
Auditors' Report and Management's Reply
99
8.
Balance Sheet as on 31st March, 2012
113
9.
Profit & Loss Accounts for the year ended 31st March, 2012
115
10. Cash Flow Statement for the year ended 31st March, 2012
117
11. Notes forming part of Balance Sheet
119
12. Notes forming part of Profit & Loss Account
146
13. Significant Accounting Policies
159
14. Notes on Accounts
164
MANAGEMENT DURING 2012-13
MANAGEMENT AS ON 25th MAY, 2013
FUNCTIONAL DIRECTORS:
FUNCTIONAL DIRECTORS:
Shri Rakesh Sinha

Chairman-cum-Mg. Director
Shri Rakesh Sinha

Shri S.K. Srivastava

Director (Personnel)

Shri S. Chakravarty
Director (Technical) Opn.
Shri S. Chakravarty
Shri A.K. Soni

Director (Finance) (Up to 31.01.2013)
Shri C.K. Dey

Director (Finance)
Shri C.K. Dey

Director (Finance) (From 01.02.2013)
Shri Ramesh Chandra

Director (Technical) P&P
Shri Ramesh Chandra

Director (Technical) P&P (From 04.03.2013)
PART-TIME OFFICIAL DIRECTORS:
PART-TIME OFFICIAL DIRECTORS:
Shri A. Chatterjee
Director (Finance), CIL
Shri A.K. Sinha

Director (Finance), CIL (Up to 31.10.2012)
Shri V. Peddanna
Director, MoC
Shri A. Chatterjee
Director (Finance), CIL (From 03.12.2012)
SPECIAL DIRECTOR APPOINTED BY BIFR:
Shri D.N. Prasad

Director (Technical), MoC (Up to 01.06.2012)
Shri K.K. Gautam

NON-OFFICIAL PART-TIME DIRECTORS:
Shri V. Peddanna
Director, MoC (From 01.06.2012)
Shri Subrata Chaudhuri
SPECIAL DIRECTOR APPOINTED BY BIFR:
Shri S.K. Mohanty
Shri K.K. Gautam
Shri S.M. Lodha
NON-OFFICIAL PART-TIME DIRECTORS:
Shri S.M. Sharma

Shri S.K. Mohanty
COMPANY SECRETARY:
Shri S.M. Lodha
Shri V.R. Reddy
Shri S.M. Sharma

Prof. (Dr.) M.K. Srivastava (Up to 07.06.2012)
COMPANY SECRETARY:
Shri V.R. Reddy (From 19.07.2012)
ANNUAL REPORT 2012-13
BANKERS DURING 2012-13

State Bank of India
United Bank of India
Canara Bank
United Commercial Bank
STATUTORY AUDITOR DURING 2012-13

M/s. Dutta Sarkar & Co., 7A, Kiran Sankar Roy Road, 2nd Floor, Kolkata - 700001
BRANCH AUDITORS DURING 2012-13

M/s. Lodha & Co., 14 Government Place East, Kolkata-700069
M/s. Roy Ghosh & Associates, 39, Kalna Road, Badamtala, Burdwan-713401
M/s. L B Jha & Co., GF-1, Gillander House, 8, Netaji Subhas Road, Kolkata-700001
M/s. U S Saha & Co., 35, Bahir Sarbamangla Road, Burdwan-713101
M/s. J. Gupta & Co., 3, Satyanarayan Temple Road, 1st Floor, Bandaghat, Howrah - 711106
REGISTERED OFFICE OF THE COMPANY

CMD's Office, Sanctoria, Post - Dishergarh, District - Burdwan, Pin - 713333
VISION STATEMENT
To emerge from the position of domestic leader to leading global player in the energy sector by
adopting best practices from mine to market with due care to environmental and social sustenance.
MISSION STATEMENT
Produce the planned quantity of coal efficiently and economically with due regard to safety, conservation
& quality.
we ring I n
po
a
di
Em
Eastern Coalfields Limited

( A Subsidiary of Coal India Limited )
Office of the Chairman-cum-Managing Director
Sanctoria, P.O. Disergarh- 713333, Distt. Burdwan ( W.B.)
Company Secretariat
Ref. No: ECL : CS: 15(2013)/710
May 20, 2013
NOTICE
Notice is hereby given that the Thirty-eight Annual General Meeting of the Shareholders of
Eastern Coalfields Limited will be held on Saturday, the 25th May, 2013 at the Registered Office of the
Company at Sanctoria, P.O. Disergarh-713333, Distt. Burdwan (West Bengal) at 11.00 A.M. to transact
the following business:-
ORDINARY BUSINESS:
1.
To receive, consider and adopt the Audited Balance Sheet as on 31st March, 2013 and Profit &
Loss Account for the year ended 31st March, 2013 together with the Report of the Auditors and
Directors thereon.
2.
To appoint a Director in place of Shri A. Chatterjee, Director, who retires in terms of Articles 33(i)
(e) (iii) of the Articles of Association of the Company and is eligible for reappointment.
3.
To appoint a Director in place of Shri V. Peddanna, Director, who retires in terms of Articles
33(i) (e) (iii) of the Articles of Association of the Company and is eligible for reappointment.
By order of the Board
Dated : May 20, 2013

Registered Office :
Sanctoria, P.O. Disergarh,
Distt. Burdwan (West Bengal)
PIN : 713333.
sd/(V. R. Reddy)
General Manager (Finance) /
Company Secretary
Notes : (i)
A member entitled to attend and vote at the meeting is entitled to appoint a Proxy to attend and vote
instead of himself and the proxy need not be a member of the Company. The instrument appointing
the proxy should be deposited at the Registered Office of the Company not less than forty-eight
hours before the commencement of the meeting.
(ii)
Members are also requested to accord their consent for convening the meeting at a shorter Notice
under Sec. 171(2) (i) of the Companies Act, 1956.
3
CHAIRMANS STATEMENT
Friends,
I have great pleasure in welcoming you to the 38th Annual General Meeting of Eastern Coalfields
Limited. The Directors Report, audited accounts for the financial year 2012-13 together with the report
of Statutory Auditors and the report and review of the Comptroller and Auditor General of India, are
already with you.
1.
Energy is one of the major inputs for economic development of any country, today the Indian
economy is in acute need of energy and coal dominates the energy mix in India, contributing
over 52% of the total primary energy production. Our company produces one of the best qualities
of Non-Coking Coal which caters to the needs of various power plants, steel plants, cement
factories etc.
2.
The strategic vision of our company is to place itself on a path of accelerated growth with
enhancement in productivity, competitiveness and profitability while meeting the growing demand
of coal in the country in an environmentally and socially sustainable manner.
3.
In the financial year 2012-13 our company has set new records in terms of production, despatch,
profit etc. This year the coal production was 33.901 MT. During the year, we have set milestones
in the history of the company in recording highest ever turnover of ` 12162.59 crores, highest
ever profit of ` 1655.54crores, highest ever OBR of 76.448 M Cu.M and highest ever coal offtake of 35.84 MT. But success also comes with more responsibility. We have to strive hard to
maintain this growth rate and perform better in the days to come.
4.
During the year 2012-13, 4 (four) projects namely PR for Jhanjra low height CM, PR for Kumardihi
B CM, UCE of Shankarpur (UG+OC) and Tilaboni were approved by the Board.
5.
Continuous efforts are being made to enhance the coal production from underground mines.
As on 31.03.2013, 220 Nos. of SDLs and 32 Nos. of LHDs are in operation in different
underground mines of ECL.
6.
The impact on the environment due to extraction of coal is being monitored constantly by our
Company and adequate measures are undertaken for control of Air, Water & Noise Pollution,
Land degradation, Deforestation etc. These measures are being undertaken in accordance
with the provisions of all statutory norms, Acts and Rules on a regular basis. During 2012-13
we planted 50950 Nos. of trees/sapling covering an area of 25 Ha.
7.
We have also committed for sustainable development and CSR activities in villages around
ECL command area by providing drinking water, improving educational facilities and health
care.
4
8.
We have always given the highest priority towards safety, which in ECL is considered as a part
of core production process. To improve the safety standards, ECL has vigorously pursued
several measures during the year.
9.
Our Company has complied with the conditions of corporate governance as stipulated in the
Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs) issued
by the Department of Public Enterprises, Government of India. As required under the said
guidelines a separate section on Corporate Governance has been added in the Directors
Report and a Compliance Certificate has been obtained from the statutory auditors.
10.
We are committed to produce more than 35 MT coal during 2013-14 and confident that ECL
will march ahead in the times to come and with co-operation of all and our tireless efforts, the
company will come out of BIFR in days to come.
I express my sincere thanks to Coal India Limited, Ministry of Coal, other Central Government Ministries
and Departments, State Governments, all employees, Trade Unions, consumers, and suppliers for
their unstinted support and relentless co-operation.
(Rakesh Sinha)
Chairman
Place: Sanctoria
Date: 25th May, 2013
DIRECTORS' REPORT
To
The Shareholders,
Gentlemen,
I, on behalf of the Board of Directors, have pleasure in presenting the 38th Annual Report on the working
of your Company together with audited accounts for the year ended 31st March, 2013, report of the Statutory
Auditors and Managements reply thereon as well as the comments of the Comptroller and Auditor General of India
on the audited accounts.
Special Achievements:
a)
ECL has achieved all the target parameters of Coal Production, OB Removal and Off-take and these
achievements are ever highest since inception of the company.
b)
On 24th March, 2013 the company produced 2.28 Lakh Tonne coal which is the highest ever coal production
on a day since its inception.
c)
Rajmahal Area of ECL produced 1.38 Lakh Tonne of Coal on 24th March, 2013 which is highest ever
production from a single area since its inception.
d)
On 31st March, 2013, ECL despatched 38 rakes of coal through Indian Railways leading to total despatch
of 1.82 Lakh Tonne, which is highest ever on a single day since inception.
e)
The company has recorded highest ever turnover of ` 12162.59 crores against ` 10695.11 crores during
the last year.
f)
ECL has paid demurrage charges to Eastern Railways to the tune of only ` 0.42 crores for the year 201213 as against ` 1.08 crores paid during the last year i.e. a reduction of 61.05% in comparison to last year..
g)
Training in Apparel Design under the guidance of Ministry of Textile for project affected persons was
organized at Deoghar in two batches and all the trained persons got offer for employment from different
parts of the country immediately after the training. Similar training programmes are being arranged in
Raniganj coalfield also.
1.0
1.1
PRODUCTION:
Production performance of the Company in 2012-13 against the target as well as compared to last year
was as under:
Particulars
1. Production :
i) Raw Coal - UG
- OC
Total
Unit
2012-13
2011-12
Target
Actual
Achieved
(%)
7.63
25.37
33.00
6.849
27.052
33.901
89.76
106.63
102.73
0.010
0.031
0.010
0.033
32.959
Actual
Growth Over
last year
Absolute
6.833
23.725
30.558
0.016
3.327
3.343
0.23
14.02
10.94
100.00
106.452
0.010
0.041
0.000
0.008
0.00
19.51
33.858
102.728
30.507
3.351
10.98
60.000
76.448
125.877
60.305
16.143
26.77
0.507
9.872
1.874
0.463
10.170
1.944
91.321
103.019
103.735
0.442
8.642
1.678
0.021
1.528
0.266
4.75
17.68
15.85
M.Te.
ii) Coking Coal :

- Blendable
- Others
iii) Non-Coking :
2. O.B. Removal
MCuM
3. Productivity(OMS)
- Underground
- Opencast
- Overall
Tonnes
1.2 CONSTRAINTS :
(Figures in M. Te)
Particulars
As on 31.3.13
As on 31.3.12
Loss of Production due to :

i) Power failure
ii) Absenteeism
iii) Labour Unrest (Industrial Relations)
iv) Others
Total
1.3
0.285
0.121
0.174
0.708
1.288
0.316
0.362
0.439
3.590
4.707
SYSTEM CAPACITY UTILISATION :

Particualars
(In %)
2012-13
Target
a) UG
b) OC (Dept)
c) OBR (Dept)
d) OC (Coal+OBR) Dept
e) OC (Coal) Hired
f) OC (OBR) Hired
g) OC (Coal+OBR) Hired
h) Overall (UG+OC)
(Hired+ Dept.)
2011-12
Actual
Achieved(%)
Actual
Growth Over
last year
Absolute
%
73.72
117.80
95.85
100.39
94.34
99.26
98.55
66.18
123.03
77.28
86.25
105.52
206.91
188.65
89.77
104.44
80.63
85.91
111.85
208.45
191.43
62.80
116.39
80.47
87.38
292.96
415.31
393.64
3.38
6.64
3.19
1.13
187.46
208.40
204.99
5.38
5.70
3.96
1.29
63.98
50.18
52.08
98.06
118.96
121.31
129.9
10.94
8.42
2.0
FINANCIAL RESULTS :
2.1.
Gross sales turnover for the year ending 31st March, 2013 was ` 12162.59 crores compared to
` 10695.11 crores in the previous year resulting in increase of 13.72% over previous year. During the year
under review, company had made a pre-tax profit of ` 1897.18 crore and a Post-tax Profit of ` 1655.54
crore compared to last years profit of ` 962.13 crores. Details were as under:
( ` in Crore)
Particulars
2012-13
Profit(+)/Loss(-) after charging all expenses but before PRP /

Executive Superannuation benefit interest, depreciation,
impairment, O.B.R., prior period adjustment.
Less: Impact of PRP/Executive Superannuation Benefit.
Less: Actuarial provision (AS-15)
Less: Interest.
Less: Depreciation/Impairment/Mine Closure Provision.
Less: OBR Adjustment
Profit (+)/Loss (-) for the year after charging interest and
depreciation, impairment and OBR Adjustment.
7
2011-12
2090.61
2220.44
75.94
43.07
164.84
708.57
8.48
267.31
() 324.59
0.16
258.32
248.19
1898.63
962.13
Particulars
2.2
2012-13
2011-12
Less: Prior Period Adjustment.

Net Profit (+)/Loss (-) after considering Prior Period Adjustment.
Cash Profit
1.45
1897.18
2282.86
0.00
962.13
2251.36
Profit after Tax
1655.54
962.13
Capital Expenditure :
Total Capital Expenditure during the year under review was ` 202.94 crores (Excluding exchange fluctiation)
against the Capital Expenditure of ` 332.96 crores during 2011-12.
2.3
Capital Structure :
( ` in Crore)
Particulars
A. SHARE CAPITAL
i) Authorized Share Capital (2,50,00,000 Eq. shares of ` 1000 each)
ii) Paid up Equity Share Capital (22184500 shares of ` 1000 each)
B. LOAN FUNDS:
i) Coal India Limited (Holding Company)
ii) Export Development Corporation, Canada.
2.4
2011-12
2500.00
2218.45
2500.00
2218.45
518.97
160.35
518.97
155.64
( ` in Crore)
Repayment of Foreign Loan :

Particulars
2012-13
i) Repayment of foreign loan through CIL.

2.5
2012-13
5.14
2011-12
4.43
Payment / Adjustment of Royalty, Cess, Stowing excise duty & Sales Tax during the year:
( ` in Crore)
Particulars
2012-13
i) Royalty on Coal
ii) Cess on Coal.
iii) Sales Tax (Central & State).
iv) Stowing Excise Duty.
v) Central Excise Duty
Total
2.6
2011-12
240.15
1527.32
376.56
34.75
545.00
189.44
1509.45
321.06
29.03
413.40
2723.78
2462.38
Directors' Responsibility Statement :

Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956 the Board of Directors of the
Company hereby state and confirm that:-
(a)
in the preparation of the Annual Accounts for the year ended 31st March 2013, all the applicable accounting
standards were followed with proper explanation relating to material departures;
8
(b)
the Directors had selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the
company at the end of the financial year and of the Profit/Loss of the company for that period;
(c)
the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in
accordance with the provision of the Companies Act, 1956 for safeguarding the assets of the company
and for preventing and detecting fraud and other irregularities; and
(d)
3.0
3.1
the Directors had prepared the annual accounts on a going concern basis.
PLANNING :
Command Area of Operations:
Mining lease-hold area of ECL is about 753 Sq. Km out of which surface right area is about 237.18 Sq.
Km. Command area of operation of ECL is in two States-West Bengal and Jharkhand. Areas of Raniganj
Coalfield are spreading over Burdwan, Birbhum, Bankura and Purulia District in West Bengal. Saharjuri
Coalfield in Deoghar District of Jharkhand is being worked as SP Mines Area. Hura Coalfields and ECLs
largest opencast mine Rajmahal is being operated in Godda District of Jharkhand. Heart of Raniganj
Coalfields is located on the north of Ajoy River while Mejia and Parbelia are on south of Damodar River. In
Dhanbad District, Mugma field lies on the west of Barakar River. Formation of coal seems has occurred
mainly in two sequences at ECL- Raniganj measures & Barakar measures. Raniganj measures cover the
entire coalfield of Raniganj-Pandaweswar, Kajora, Jhanjra, Bankola, Kenda, Sonepur, Kunustoria, Satgram,
Sripur, Sodepur and partly at Salanpur Areas. Barakar measures cover two areas i.e Salanpur & Mugma
Areas, S.P. Mines and Rajmahal Areas are mainly related to Barakar measure and Talchair series.
Profit After Tax ( ` in Crore )
3.2
Planned and Actual for 2012-13 and Plan for 2013-14 :

2012-13
Sl.
No.
3.3
Particulars
Target
Revised
(BE)
Target (RE)
2011-12
2013-14
Actual
Actual
Planned
Production (Mt)
33.00
33.30
33.901
30.56
34.70
Overall Productivity
1.874
1.896
1.944
1.68
2.057
Plan expenditure (in ` Crore)
450.00
425.00
202.94
332.94
525.00
GEOLOGICAL EXPLORATION AND DRILLING :

During 2012-13, 29150 metre (CIL and Non-CIL blocks) was drilled by CMPDIL against the target of 28000
metre in CIL Block :
(Figures in Metre)
2012-13
Drilling Agency
CMPDIL
Target
Revised
(BE)
Target (RE)
28000
30000
3.4.
RESEARCH AND DEVELOPMENT :
3.4.1
CIL R&D Project:
Actual
2011-12
2013-14
Actual
Target
(BE)
29150
28920
30000
Detailed status of implementation of ongoing R&D Projects funded under R&D grant of CIL Board is
enclosed as Annexure I.
3.4.2
S&T Projects :
Detailed status of implementation of ongoing S&T Research Projects funded under S&T grant of MoC is
enclosed as Annexure II.
3.5
Modernization of Coal Industry:

In order to increase the level of modernization and mechanization in underground mines intermediate
technology by deploying LHD/SDL was introduced in 64 no of mines of ECL. As on 31.3.2013, 220 no of
SDLs and 32 no of LHDs were on roll in different underground mines of ECL. Production achieved from
220 Nos. of SDLs was 3.825 Mt, from 32 Nos. of LHDs was 0.9277 Mt and from 2 no of Doscos was
0.0174 Mt during 2012-13. Apart from introduction of intermediate technology Mass production technology
by deploying Continuous Miner combined with Shuttle car was introduced at Jhanjra and Sarpi. Production
achieved during 2012-13 from Continuous Miner operation was 0.5064 Mt at Jhanjra Project and 0.5368
Mt at Sarpi.
Introduction of Operator Independent Truck Despatch System :
In order to improve fleet management and thereby productivity of HEMM, ECL has introduced a GPS
based Operator Independent Truck Despatch system in Sonepur Bazari OC mine which is being successfully
operated.
10
3.6
Steps taken to improve underground production:

Considering the various operational constraints, liquidation of upper seam, availability of land for caving
etc. action has been taken to improve underground production mainly by introduction of mass production
technology deploying Continuous Miner with Shuttle Car in more no of underground mines in XII Plan like
Jhanjra 2nd set CM, Jhanjra Low height CM, Khottadih, Tilaboni, Shankarpur, Pandaweshwar Dalurband
and Kumardihi B apart from phasing out of manual operation and converting manual mines to semimechanized operation by deploying SDL/LHD in loading operation. Action has been taken to introduce
UDM at faces keeping in view of shortage of drilling gang and the dual purpose of availability of more coal
at face and supporting as well.
For Introduction of 2nd set CM at Jhanjra agreement was signed with M/s Bucyrus DBI GmbH on 14.06.12.
Production from 2nd set CM is expected to start from middle of 2013-14. In Khottadih UG, CIL Board
approved the PR for introduction of CM at an incremental capacity of 0.60 MTY. For introduction of high
capacity PSLW in RVI seam at Jhanjra Project at a rated capacity of 1.70 MTY agreement has been
signed with M/S CODCO, China on 08.01.2013.
3.7
Details of Projects approved by Board of Directors of ECL during the year :
SL
No
Name of the
Project
PR of Jhanjhra Low
height CM
0.72
277.81
Approved by ECL Board on

5.11.2012
PR of Kumardihi BCM
0.51
171.39
Approved by ECL Board on

28.1.2013
3.
UCE of Shankarpur
(OC + UG)
OC - 2.00
UG - 1.163
401.43
Initial PR was approved by ECL

Board on 16.5.2011. UCE
approved by ECL Board on
5.11.2012 along with financial
vetting.
4.
Tilaboni
1.86
788.53
Initial PR was approved by ECL

Board on 28.3.11.UCE approved
by ECL Board on 5.11.2012 along
with financial vetting.
3.8
Capacity (MTY)
Approved Capital
Investment (` Cr)
Date of Approval
Details of Projects approved by the board of Directors of CIL during the year :
Sl
No
Name of the
Project
Sonepur Bazari
Combined OC
Capacity (MTY)
Approved Capital
Investment (` Cr.)
8.00
1055.05
11
Date of Approval
Approved by ESC of
CIL Board on 7.8.2012
3.9
Project Formulation: DPR have been formulated for the Projects:

Sl. No.
Project
Details
New Kenda OC
1.10 MTY- Estimated Capital ` 94.45 Crore.
Ghusick UG
1.46 MTY- Estimated Capital ` 842.16 Crore.
North Searsole
2.00 MTY- Estimated Capital ` 883.31 Crore (departmental)

& ` 214.93 crore (outsourcing)
Rangamati B (Tumni and
0.72 MTY Estimated Capital ` 559.56 Crore.
Kanchanpur Sector) UG
3.10
3.11
Foreign Collaboration/ Technology absorption- Adaptation and innovation:

i.
2nd Set CM at Jhanjra UG with M/s. Bucyrus DBT GmbH, agreement signed on 11th June, 2012.
ii.
Jhanjra R-VI Seam PSLW with M/s. CODCO for long wall package, agreement signed on
8th January, 2013.
Capital Projects/ Schemes:

i.
No. of new Projects: 1. Sonepur Bazari Combined OC Capacity 8.00 MTY.
ii.
Expansion/Revision/Foreclosure of Projects: 4. (a) Rajmahal Exp. OC, (b) Mohanpur Exp. OC,
(c) Khottadih Exp. OC and (d) Chitra East OC (Expansion of Chitra)
iii. Others - 13
iv.
3.12
Other Activities taken up during the year 2012-13:
Sl.No.
1
Total 18
Target
Performance Indicator
ECL Final Board Approval for Continuous Miner
Achievement
January-2013
Not Achieved.
December-2012
Not Achieved.
September-2012
Achieved, Commissioned
Project(Pandaweshwar-Dalurband CM)
2
Stage - II Clearance & Final approval of Shankarpur

(UG+OC) Project by Board
Commissioning
of New
Expansion project
(Sonepur Bazari Quarry II)
in the month of May2012.
Finalisation of tenders & shortlisting of final bidder
January-2013
The
proposal
for
for construction of washery at Sonepur Bazari (8
Construction of washery
Mty)
has been dropped.
Finalisation of Tender for CM package at Khottadih
February-2013
Not Achieved.
May-2012
Agreement signed on
UG
6
Finalisation of agreement for expansion of Rajmahal

OCP (17.00 MTY) through partial outsourcing.
Rehabilitation of Project Affected Families of
12.10.2012.
65 Nos.
3 Families Shifted
January-2013
Achieved.Work Order
Barabhorai village for Expansion of Rajmahal OCP

8
Award of Contract for diversion of Tumni Nala at

Sonepur Bazari Expansion Project
issued on 23.05.2012.
12
Sl.No.
9
Target
Signing of agreement for second set Continuous
August-2012
Miner at Jhanjra.
Achievement
Achieved, Agreement
signed on 14th June,
2012.
10
Conversion of Manual/Mixed Under Ground Mine
5 Nos.
Achieved, 7 Mines.
Districts to Fully Mechanized System.

11
Capital Investment(AP 12-13)
` 450.00 crore.
` 202.94 crore.
12
Using long hole drilling technique for improving
3 Nos. of Mines
Achieved. Khottadih,
blasting efficiency
Siduli and Chora Block

Incline
13
14
Rationalization of Underground districts by re-
2 Nos. of Districts
organization.
Parascole East.
Preparation of Master Control Network
Achieved.
1.Sonepur-Bazari Combined OC (8.00 MTY),

2.Rajmahal Expansion OC (17.00MTY),
3.Chitra Expansion OC(2.50 MTY),
4.Sarpi Augmentation UG ( 0.76 MTY),
5.Jhanjra PH-II PSLW (1.70 MTY),
6.Jhanjra 2nd set Continuous Miner ( 0.51 MTY)
7.Khottadih Continuous Miner (0.60 MTY)
3.13
Achieved. Madhabpur and
Project Monitoring and Status of Implementation :

Details given as Annexure - III (Separately)
Gross Sales ( ` in Crores )
13
4.0
MANAGEMENTS DISCUSSION AND ANALYSIS REPORT:

Managements Discussion and Analysis Report is presented in a separate section forming part of the
Annual Report (ANNEXURE-IV).
5.0
COAL MARKETING:
5.1
Demand vis-a-vis off-take:

Actual off-take of coal in 2012-13 was 35.844 million tonne against the demand of 34.25 million tonne i.e.
demand satisfaction of 105%. Sector-wise demand and off-take during the year 2012-13 compared to
2011-12 is as follows:
(Figures in Million Tonne)

Sector
Off-take 2012-13
Off-take 2011-12
Demand
Actual
POWER
27.06
30.015
111
29.58
24.27
82
CEMENT
0.13
0.146
112
0.15
0.14
93
CPP(ORS)
0.365
0.218
62
0.45
0.35
78
CPP (STEEL)
0.505
0.313
62
0.46
0.42
91
STEEL (BLEND)
0.06
0.01
17
0.06
0.01
17
SPONGE IRON
0.32
0.275
86
0.58
0.31
53
EXPORT
0.02
0.00
0.02
0.00
LOCO
0.01
0.00
0.01
0.00
DEF
0.03
0.01
33
0.03
0.00
COLLY. CONS.
0.40
0.301
75
0.40
0.341
85
OTHERS
5.35
4.556
85
2.26
4.989
221
34.25
35.844
105
34.00
TOTAL
5.2.
% Satisfaction
Demand
Actual
%Satisfaction
30.83
91
Average loading of Wagons per day :

Field-wise average loading of wagons for the year 2012-13 compared to previous year is as
follows :
(Figures in Box/Day)
Loading of wagons
Field
2012-13
2011-12
Target
Actual
Target
Actual
Raniganj
Mugma/Salanpur
Adra
Pirpainti
Rajmahal (Wharf Wall)
668
119
21
144
0
647
149
17
84
153
612
109
20
40
0
573
147
20
62
71
Total
952
1050
781
873
14
5.3.
Mode-wise despatch :
Mode-wise despatch of coal in 2012-13 compared to previous year as follows:
(Figures in Million Tonnes)
Mode of Despatch
2012-13
Rail
Road
Merry-Go-Round(MGR)
Total
5.4.
5.5.
24.158
19.79
2.117
2.19
9.267
8.51
35.542
30.49
Stock of Coal as on 31st March 2013 is as follows :

FIELD
2011-12
(Figures in lakh Tonnes)

As on 31.3.13
Raniganj
6.40
Mugma/Salanpur
3.83
S.P. Mines
0.98
Rajmahal
10.26
Total
21.47
Spot 'e' auction & Forward 'e' auction :
2011-12
2012-13
Mode
Despatched
Qty.
(in lakh
Gain over
notified
price
tonne)
( ` in Cr.)
% age
Gain
Despatched
Qty.
(in lakh
Gain over
notified
price
tonne)
( ` in Cr.)
% age
Gain
Spot 'e' auction

Rail
27.60
161.39
17.79
25.37
237.41
28.08
Road
14.24
229.31
45.10
12.80
229.63
57.36
Total
41.84
390.70
27.60
38.17
467.04
37.48
Forward 'e' auction

Road
0.25
4.1
101.99
0.55
9.5
98.95
Total
0.25
4.1
101.99
0.55
9.5
98.95
Against MoU target of 7%, E-Auction of Coal achieved was 10.4% during the Year 2012-13. And offering of FSA to
Power Plants as per latest Govt. directives to those having Power Purchase Agreement was completed/achieved
by 07.05.2012.
5.7.
Sales Realisation :
(` in Crore )
Particulars
Sales Realisation
15
2012-13
2011-12
11121.88
9100.88
Against MoU Target of 2% reduction in disputed receivables, there has been an increase of 94.19% in disputed
receivables and against MoU Target of 4% reduction in undisputed receivables, there has been an increase of
45.65% in undisputed receivables.
6.0
POPULATION OF EQUIPMENT (HEMM) :
6.1
Population of Equipment as on 31st March 2013 compared to 31st March 2012 and major repair / rehabilitation
done during 2012-13 is as follows :
Equipment
No. of Equipment
as on
31.03.2013
6.2
Repair / Rehabilitation of
equipment during 2012-13
31.03.2012
Target
Achievement
Dragline
---
---
Dumper
197
232
---
---
Dozer
82
80
Shovel
59
62
---
---
Drill
45
41
---
---
Percentage availability & utilisation of each type of equipment against CMPDIL norms during the year
2012-13 compared to previous year is as follows :
Equipment
CMPDIL
Norms
2012-13
2011-12
CMPDIL
Norms
2012-13
2011-12
Dragline
85
92.01
90.24
1.77
73
86.55
84.37
2.18
Dumper
67
67.37
68.05
-0.68
50
39.47
37.06
2.41
Dozer
70
69.94
72.41
-2.47
45
30.85
29.97
0.88
Shovel
80
70.91
74.32
-3.41
58
46.25
45.59
0.66
Drill
78
77.15
76.05
1.10
40
31.14
30.01
1.13
The %age availability of shovel is less due to swing circle problem and major repair of 20 Cu.M shovel. Frequent
failure of magnetorque, rack segment, C.P. generator, swing shaft and crown mechanism in 10 Cu.M shovel.
Failure of hydraulic pumps in EX600 shovels.
Steps taken to achieve CMPDIL norms of Dumper Utilisation:
Procurement action of new equipment against replacement of surveyed off equipment has been undertaken.
Orders have been placed for 54 Nos. of 35 Tonne Dumper, 5 Nos. of 60 Tonne Dumper with MARC.
Procurement process of 100 Tonne Dumper is under finalisation. Dumpers are being procured with AC
cabin, which will improve utilisation.
Review of HEMM performance of projects was made at regular intervals and subsequently necessary
assistance/help was provided from HQ to reduce breakdown hours of equipment.
16
6.3
New/Replacement equipment provided to OCPs in 2012-13 is as under :

Equipment
Nos.
Project
Dozer
13
Rajmahal-3, Sonepur Bazari-2, Chitra-2, Shankarpur-2,

Parasea-1, Baramuri-1, Mahabir-1, Bonjemehari-1
Shovel
Khottadih
Drill
10
Rajmahal-3, Sonepur Bazari-2, Khottadih-2, Chitra-1,

Parasea-1, Baramuri-1
7.0
ENERGY CONSERVATION :
7.1.1
POWER AND FUEL CONSUMPTION
Sl. Particulars
I.
ELECTRICITY PURCHASED
a)
Purchased Units
b)
Total amount paid to the supply agencies

(Approximate)
c)
Rate/Unit (Average)
d)
Specific Consumption of Electricity (Approximate)
Unit
2012-13
2011-12
M.KWH
824.53
808.52
` in crore
` / KWH
559.07
505.71
6.78
6.25
KWH/Te
24.30
26.45
Lakh KWH
7.04
1.30
II.
OWN GENERATION (Through DG Sets) :
a)
Generated Units
b)
Unit generated per Ltr. of Diesel Oil
KWH/Ltr.
5.80
4.70
c)
Cost of Generation
` / KWH
9.87
9.44
III.
AVAILABILITY OF POWER:
a)
Average availability of power
MVA
171.54
154.10
b)
Power Demand
MVA
182.41
167.50
c)
% Availability
94.04
92.00
7.1.2
Progress of Power Generation from Chinakuri Power Plant:

Lease of Chinakuri Power Plant expired on 31.03.2012. We are in the process of inviting tender for a fresh
lease. There is no captive generation during 2012-13.
7.2
Energy Conservation & Audit:

CMPDIL is empanelled as an accredited energy auditor by Govt. of West Bengal. In 2012-13, Energy
Audit has been conducted for two collieries of Pandaweshwar Area and final recommendation will be
implemented during 2013-14.
Energy cost per tonne of coal production in 2012-13 was ` 164.79 as compared to ` 165.49 in 2011-12.
The specific consumption of electricity also decreased in 2012-13 as compared to 2011-12.
17
7.3
Underground Machinery Performance:

The detail of Underground Machineries with productivity is given below:
Equipment
7.4
2012-13
2011-12
Remarks
On
Roll
Productivity
(TPD)
Productivity
(TPD)
SDL
219
55
57
LHD
30
85
95
Road Header
24
15
The Road Header machine

(UK-DOSCO) is very old and
was commissioned in 1984.
This model is obsolete and
spares are readily not
available. It is difficult to run
the machine by locally
developed spares.
PSLW
15
As the long wall equipment

has outlived its life, long wall
panel has stopped.
Continous
Miner
1521
1566
During 2012-13, CM has

produced 1043332 Tonnes of
coal in comparison to 779930
Tonnes of coal in 2011-12.
Depletion in coal preparation

gang has reduced coal
preparation which is being
compensated by introducing
UDM
Performance of CHPs:
As on 31st March 2013, Company was operating 4 Nos. of major CHPs and 2 Nos. of Mini CHPs. During
2012-13, the Major CHPs handled 17.922 M. Te and Mini CHPs handled 0.19604 M. Te of coal.
8.0
WELFARE AMENITIES :
Sl.
No.
1.
ITEM
Cumulative Achievement
position as
during
on 31.3.2012
2012-13
Cumulative
position as
on 31.3.2013
Co-operative Societies
a) Co-operative Credit Society
b) Primary Consumer Co-operative Stores
74
30
0
0
74
30
c) Central Co-operative
04
04
63.80
63.80
Banking Facilities
No. of branches functioning
26
26
3.
Creches
48
48
4.
5.
Canteens
Educational Facilities
82
82
d) Loan and Investment to Co-operative Societies

( ` in Lakh)
2.
18
Remarks
Sl.
No.
6.
7.
8.
9.
ITEM
Cumulative Achievement
position as
during
on 31.3.2012
2012-13
Cumulative
position as
on 31.3.2013
a) DAV School
04
b.i) No. of Schools receiving recurring Grant - in - aid
162
b.ii) Amount of Recurring grant-in-Aid ( ` in lakh)
3381.63
c.i) No. of Schools receiving non-Recurring
Grant-in-aid
386
c.ii) Amount of non-recurring grant-in-aid
( ` in lakh)
286.71
d.i) No. of schools sanctioned ad-hoc grant
79
d.ii) No. of ad-hoc grant sanctioned ( ` in lakh)
69.60
e) No. of School buses engaged
156
Games & Sports amount spent ( ` in lakh)
343.50
Social & Cultural activities, amount spent ( ` in lakh)
64.85
CIL Scholarship
a) No. of Scholarship and Cash awarded
12403
0
0
404.34
04
162
3785.97
01
387
1.50
0
0
0
14.58
1.46
288.21
79
69.60
156
358.08
66.31
1165
13568
b) Amount sanctioned ( ` in lakh)
13.59
155.97
142.38
Remarks
37 students
were given
special cash
cash awarded
CIL Scheme for Financial assitance to extend the Tuition Fees & Hostel Charges of the Wards of Wage Board
Employee studying in the Selected Engineering & Govt. Medical Colleges.
a) No. of wards of WBE sanctioned
b) Amount sanctioned ( ` in lakh)
111
61
172
15.87
11.28
27.15
9.1
MEDICAL AMENITIES:
9.1.1
13 Hospitals with a total bed capacity of 1285 and 115 Dispensaries extended medical services to
the employees and their wards/dependants. 130 Nos. of Ambulances were in service in these
hospitals. 5 Nos. of Mobile Medical Vans also catered to the medical needs of localities situated
in ECL command area.
9.1.2
No. of persons referred to outside for treatment & expenditure incurred for their treatment and
Villagers covered by Mobile Dispensary:
Particulars
2012-13
No. of patients referred outside:

Expenditure incurred for their treatment (in ` Lakh)
Health & family welfare programme:
- No of camps
- No of beneficiaries
Villagers covered by Mobile Dispensary:
- No of camps
1084
876
759
707.62
23
1221
23
1205
- No of beneficiaries
2011-12
647
648
33755
37840
During 2012-13, one more mobile medical van is provided at Sonepur Bazari Area for organising Mobile
health camps. A new hospital having 10 bed capacity has been constructed at Jhanjra Area.
19
9.1.3
Reorganisation for up gradation of Hospitals:

a.
For optimum utilisation of existing skilled manpower and providing improved services 13 dispensaries
merged with nearby dispensaries.
b.
Up-gradation work of CH Kalla and Sanctoria Hospital with respect to hospital building renovation/
repair, procurement of new equipment, sanitation/hygiene and clinical services has been started
and is expected to be completed within six months.
c.
The services of the specialists have been rationalised for making their services available at peripheral
hospitals also.
10.0
CORPORATE SOCIAL RESPONSIBILITY:

In terms of provisions of guidelines issued by Department of Public Enterprises (DPE) on Corporate Social
Responsibility (CSR) and CIL CSR Policy, ECL has taken steps for taking up various CSR activities.
The following priority areas are taken up in Eastern Coalfields Ltd under the CSR activities:1.
Drinking water facility.
2.
Education.
3.
Solar lighting system.
4.
Health and family welfare.
5.
Sanitation and public health.
6.
Infrastructure development such as construction / repair of Community centers / Night shelters /

Old Age Homes, building of roads, pathways and bridges.
10.1
7.
Promotion of Sports & Games.
8.
Setting of skill development centers.
9.
Scholarship to meritorious students belonging to SC, ST, OBC & disabled categories.
10.
Supplementing Development Programs of the Government.
Major Activities undertaken under CSR during the year 2012-13 :

a. Baseline Survey / Need Assessment: I
In terms of DPE guidelines and CIL CSR policy Base Line Survey/Need Assessment Study (NAS) for
Rajmahal, Sonepur Bazari and Pandaveswar has been conducted by engaging National Corporate Social
Responsibility Hub (NCSR HUB) Tata Institute of Social Science (TISS).
In the first phase, Baseline Survey/Need Assessment Survey has been conducted in 14 villages of Rajmahal
Area of Jharkhand and the final report has been submitted, which is under examination. In the second
phase Baseline Survey/Need Assessment Survey has been conducted by NCSR HUB in the Sonepur
Bazari and Pandaveswar of West Bengal, which has been completed and report is expected to be received
shortly.
b. Mini Rural Water Supply Scheme for Village Bodra, Rajmahal Area.
A proposal initiated by Jharkhand Government amounting to ` 1.20 crore has been undertaken by ECL to
address to the condition of drinking water facility prevailing in the location of Bodra Village under Rajmahal
20
Area. 50% of the amount to the tune of ` 60 lakhs has been released to carry out the activity as first
stage of work to DC Godda, Government of Jharkhand.
c.
Construction of Additional Classroom at Maheela College, Godda:

The proposal for above work received from DC, Godda has been approved for an estimate of ` 2.95 crore.
An amount of ` 1.47crores have been released to DC Godda, Government of Jharkhand for the execution
of first stage of work.
d. Construction of Additional Classroom at Deoghar College, Deoghar:

The proposal for above work received from DC Deoghar for an estimated amount of ` 2.95 crore has been
approved. An amount of ` 1.02 crores have been released to DC Deoghar, Government of Jharkhand for
execution of the work.
e. Skill Development Initiatives of ECL with ATDC, Jharkhand:
ECL with its initiatives to provide livelihood to project affected people of coalfield areas in collaboration with
Apparel Training & Design Centre (ATDC), a Nodal Agency, Ministry of Textiles, Government of India, two
training programmes were sponsored consisting of 44 and 43 candidates belonging to weaker section of
the society SC/ST/OBC and after training all were given gainful placement in the different textile industries
of Bangalore, Delhi and Ranchi. An amount of ` 8.77 lakhs has been spent in this regard. This initiative
taken by ECL towards the Skill Development was appreciated by Secretary, Ministry of Textile, Government
of India and also applauded to initiate more of such training.
f.
Women Empowerment at Bankola Area:

Another step to strengthen the women belonging to the weaker section of the society in the area of
sustainable development and women empowerment is being undertaken by providing training in Tailoring,
and other Village Industries product like Candle Making, Food Processing, Silk Screen Painting, Phenyl
and Liquid Soap Making to the 100 women of nearby villages of Bankola Area. An amount of ` 9.89 lakhs
has been approved for this project run by an NGO Durgapur Creative Welfare Society in the name of
SWABHIMAAN under the supervision of WIPS and AIWC of ECL, an amount of ` 6.4 lakhs has been
disbursed for this initiatives.
g. Summer Camp at Bidhan Chandra Pratibandhi Karma Kendra, Khandra:

A Camp was organized for the distribution of aids and appliances for the physically challenged persons of
Bidhan Chandra Pratibandhi Karma Kendra, Khandra is an example of sharing value in the society by
AIWC. It also distributes items of regular use among the Old Aged persons of Prantik Old Age Home
Burnpur for the upliftment of downtrodden and weaker section of the society.
h. Imparting free Computer education at DAV School, Pandaweshwar:
A school for imparting training on Computer skill has been opened for children belonging to the poor and
weaker section of the society at Pandaweshwar Area which is facilitating habitants of the nearby villages
and surrounding areas where there is no facilities for conducting Computer training.
21
10.2
MoU Activities :
Performance
Indicator
Measurement
Unit
Target
for the
year
Achievements
Providing drinking water
` Lakh
45
Completed in
Sl.
No.
nearby
18.01.2013
21.01.2013
18.01.2013
21.01.2013
18.01.2013
21.01.2013
18.01.2013
21.01.2013
18.01.2013
21.01.2013
March-2013
by 60 nos. of hand pumps

in
Date of
Date of
Reporting of
Acceptance
Details to TISS Conveyed by
Database
TISS
villages
(Rajmahal Area)
2
` Lakh
Lighting by solar lights in
20
Completed in
March-2013
the villages nearby

Rajmahal Area.
3
Construction of PCC
road
from
Month of
Jan13
Nema completion
Completed in
March-2013
panchayat Bhawan to
Telegama Village via
Johar
Sthan
with
culverts.
4
Providing well-equipped
Month of
Dec12
mobile medical van (1 completion
Completed in
March-2013
No.)
5
Construction of 2 nos.
Month of
Jan13
room at Pandaweshwar completion
Completed in
August-2012
Community Centre
10.2.1 Details of CSR Expenditure:

Details
Amount (in ` crore)/

Percentage
1
2
3
4
PAT for the year under review(2011-12)

CSR expenditure
CSR expenditure as percentage of PAT
CSR expenditure as percentage of minimum prescribed
5
6
Training expenditure on CSR (to be treated as CSR expenditure)

Unspent Balance amount of CSR Budget rolled over to the following
year
Contribution to CSR HUB as percentage of CSR Budget
CSR Budget for the year 2012-13
962.13
9.42
0.98%
5% of retained earning or ` 5/per tone of coal production.
0.00
Sl.
No.
7
8
22
7.08
0.20%
16.50
10.3
Social Amenities :
Since the inception, Eastern Coalfields Limited has taken up various activities for the welfare of its workers
as well as development of people/communities living in the surrounding areas of the mines. In addition,
lots of activities have been attended for the development of infrastructure, industrial structure, roads and
railway sidings, residential building, water supply and other welfare activities etc. Brief description is as
below:-
10.3.1 Residential Building:

There are altogether 91180 number of residential houses in the company, out of which 62960 numbers are
standard quarters and 28220 numbers of non-standard houses. At present housing satisfaction is more
than 118%. Regular repairing and maintenance of these quarters are being attended. In the year 2012-13
a budget of ` 17.73 crore was provided for block repairing and about 4136 quarters were thoroughly
repaired under block repairing programme.
10.3.2
Welfare Buildings:
For the welfare of the workmen, there is tremendous improvement in the assets since nationalization,
details as belowa) Hospitals- 12
b)
Dispensaries- 128
c) Canteens- 82
d)
Rest Shelters- 137
e) Multipurpose Institutes- 12
f)
Adult Education Centers- 03
g) Community Centers 54
10.3.3 Water Supply:
ECL has always given special attention for the improvement of potable water supply to the occupants of
our residential houses as well as to the people of nearby communities. There are 22 numbers of slow
sand filters, 20 numbers rapid gravity filters to provide filtered and treated potable water to the employees
and their dependents. There are also 11 numbers of river bed bore wells.
In addition to this ECL has also participated with RCFA-1 and RCFA-2 water supply schemes of West
Bengal government and Chirkunda water supply scheme of Jharkhand Govt. for augmenting the source of
water and water is served to a population of 5,40,000.
10.3.4 Coal Production Roads and Railway Sidings:
Dispatch of coal is one of the prime activities of ECL and it is being done effectively and efficiently. Coal is
being dispatched mainly by the mode of roads and railways. ECL has taken proper steps in this regard.
Detail description of some ongoing and new works is as below:a) Roads- Various activities have been undertaken for construction of coal transportation roads,
peripheral roads of administrative buildings and internal colony roads with details as under :Sl. no.
1
Name of Work
Construction of Coal transportation road from MIC to Nakrakonda at
Jhanjra area
Present Status
Work completed
Construction of permanent bye pass road from Nabaghanapur to

Jhanjra Area Office.
Work completed.
23
Sl. no.
3
Name of Work
Present Status
Strengthening of coal traffic road from Kunustoria Road junction to C

Pit of Bansra Colliery along with construction of culverts at Kunustoria
Area.
Work completed.
Construction of road from Nimcha cabin to weigh bridge at Kunustoria

Area.
Work completed.
Construction of approach road (1.00 km) with culverts/ retaining wall

and strengthening of balance portion (2.70 km) of the road from
Shyamsundarpur Colliery to Bankola no. 1 Railway Siding via Area
Office under Bankola Area.
Work completed.
b) One of the major works related to railway siding, wharf wall etc. is as below :
Sl. No.
1
Name of Work
Construction of new railway siding
to serve Sonepur Bazari Project.
Present Status
Detailed Project Report has been approved by Eastern
Railway with some suggested modifications. ECL have
gone through the report and advised RITES to take the
matter of double lane from Y junction to loading point (3.2
km) with railways for construction in a phased manner.
11.0
SAFETY:
11.1
Accident Statistics for the year of 2012-13

YEAR
2012-13*
2011-12
i) Fatal Accidents (Nos.)
10
ii) Fatalities (Nos.)
10
iii) Serious Injuries (Nos.)
79
82
iv) Fatality / Million tonne output
0.295
0.229
v) Fatality / 3 Lakh Man-shifts
0.172
0.115
(* subject to reconciliation with DGMS)

11.2
Safety Measures
Jobs undertaken by ISO for enhancing safety in Mines of ECL
a.
Safety Board at Corporate Level has been constituted for inspecting the Mines and removing deficiencies
observed. Monthly Meeting of Safety Board is regularly held for reviewing safety of Mines. This meeting is
attended by all Functional Directors, all HoDs, all Safety board Members, all Area CGM/GMs and all Area
safety Officers. The Safety board Comprises of, amongst others, Six Members nominated by the Operating
Trade Unions.
b.
To conduct Special Meeting of Pits Safety Committee after fatal accident and implementation of the
recommendation of Special Pits Safety Committee.
c.
Enquiring into Fatal accidents in order to know the root causes and fixing responsibility.
24
d.
Issuance of Safety Circulars in line with finding of the enquiry into Accidents / Dangerous Occurrences/
Near-miss Incidents to prevent recurrence.
e.
Maintenance and Analysis of Statistics of Fatal and Serious Accidents for taking remedial measures.
f.
To observe Special Safety Drive in October 2012 on Roof & Side Dressing and implementation of SSR for
both development and depillaring workings.
g.
Use of convergence indicator, load cell, stress capsules etc. in depillaring district to indicate immediate
roof fall. Follow instrumentation plan as per study of CIMFR wherever practicable.
h.
Back shift inspection is being carried out. Inspection register/notes are being examined by higher ups.
Beefing up of such odd hours inspections.
i.
Quality of materials and their supply in mines has been ensured.
j.
Strata Control Monitoring Cell has been established in ECL Head Quarter and subsequently Strata Control
Monitoring Cell has been established in all areas to study the roof behavior and for improvement of roof
support in mines. RMR is determined wherever required and Support Rules are framed accordingly.
k.
Drawing Safe Operating Procedures in respect of Mining and allied activities and operation of Mining
Machinery/HEMM.
l.
Illumination Survey in OC Mines and UG Mines were carried out.
m. Noise-mapping in and around Blast Hole Drill and other HEMM in OC Mines for taking remedial measures
has been done.
n.
Introduction of Loading Equipment like LHD, SDL and Roof Bolters for minimizing exposure of workforce
to risk. Presently in 78 running U/G mines, there are 114 mechanized & 29 manual districts. 14 Manual
Districts have been converted into mechanized districts.
o.
24 Nos. of UDM have been introduced for roof drilling for roof bolting.
p.
Exception Reports are being submitted by the Executives/Inspecting officials from ISO after inspection of
Mines to Director (Technical) who takes up the deficiencies pointed therein with the concerned Area
CGM/GMs/Agents for removal of the deficiencies.
q.
A Gas chromatograph has been procured and installed at the centrally located Satgram Area Laboratory.
Its services are being utilized by the Areas whenever required.
r.
Procurement of Slope Stability Radars for large OCPs is in pipeline for monitoring slopes stability.
s.
We have followed recommendation of 10th Conference on Safety in Mines in respect of contractual

workers like IME, Supply of protective footwear etc.
t.
Inclusion of safety bylaws, statutory provisions in NIT.
u.
Use of fly ash bricks for construction of ventilation stopping in U/G Mines: Target- 5 Mines; Achievement
7 Mines.
v.
Devising Safe Operating Procedures (SOP) for different activities, general or mine- specific and enforcing.
w. 2nd ETMS is working and one more is to be installed.

x.
LMDs have been provided in Degree III Mines.
y.
A meeting held with all Workmens Inspectors of ECL on 29.11.2012 in Kunustoria Club.
Assessment of Risk, Drawing Mine-wise Safety Management Plan and its periodical review/
updating:
25
a.
Detailed accident analysis has been done and it has been seen that three accidents occurred due to roof
fall / side fall, two due to hit by haulage tub/LHD, two due to run over by Dumper, one due to fall of Dumper
into water, one due to fall of person in same level and one due to fall of dozer with operator from OB Dump.
b.
Calendar of Safety Drive for the year 2012-13 had been prepared and was followed. Details is as under :
CALENDER OF SAFETY DRIVE FOR THE YEAR 2012 13 :

MONTH
ITEMS OF SAFETY DRIVE
April-12
May-12
June-12
July-12
August-12
September-12
October-12
November-12
December-12
January-13
February-13
March-13
Safety drive on Fire & Explosion Hazard in UG Mines.

General cleanliness on surface.
Review of monsoon preparedness.
Stowing, mechanization of UG loading and roof bolting.
Survey, ventilation of UG mines, Roof and side dressing and support.
Rescue preparedness, handling of explosives and magazine & surface installation like
winding, MMV etc.
Roof and side dressing and support.
Fire hazards and firefighting arrangement.
Roof and side dressing and support.
Special drive on Departmental OCP & Out sourcing patches.
Removal of fallen coal.
Restricted Neutral System.
No. of roof bolts consumed in various years are as under:

(Nos. in lakh)
CONSUMPTION
Roof Bolts
Cement Capsules
11.3
2012-13
2011-12
8.53
6.68
32.31
27.12
Safety Audit
Internal Safety Audit has been done. We are in the process of conducting Safety Audit by external
agencies as recommended by DGMS.
11.4
Monsoon preparation
Special drive in respect to Monsoon Preparedness had been done in the month of June 2012 by the Nodal
Officers/In-charge of Areas of safety department along with the Colliery Management and status of
implementation had been monitored at regular interval during the year 2012-13. A Control Room was
opened at Head Quarter, ECL from 10.06.2012 to 15.10.2012 on 24 X 7 basis which was manned by
Executives provided with telephone & vehicle for their movement keeping close liaison with Area Control
Rooms operating in all Areas.
Close liaison is maintained with the Chief Engineer (Hydel), DVC, Maithon for getting Flood Warning
Message whenever Panchet and Maithon dams release flood water to cause rise of HFL of rivers. Close
liaison is also maintained with the Director, Indian Meteorological Department, Alipur, Kolkata and the
Director, Area Cyclone Warning Centre, Alipur, Kolkata for obtaining Weather Forecast Report over
Telephone & FAX for alerting the Areas to be affected by heavy Rain/ Thunder/ Shower.
26
11.5
Safety Training
Year
Two Weeks Structured Training for

Front line supervisors
11.6
Workmens Inspector
No. of
No. of
No. of
No. of
Programme
Participant
Programme
Participant
2012-13
86
33
2011-12
115
50
Training for appearing in Statutory Exams:
Type of Exam
No. of employees trained
Training Institute
1st Class - Coal
12
MTS , Dhadka
2nd class Coal
18
MTS , Dhadka
Overman
11
MTS , Dhadka
157
MTS , Dhadka
Surveyor
16
MTS , Dhadka
Electrical Supervisor
14
MTS , Dhadka
Winding Engine driver
27
MTI, Ratibatti
Surveyor
33
MTS , Dhadka
Mining Sirdar
52
MTS , Dhadka
Electrician
31
MTS , Dhadka
160
Raniganj Mining Institute
A. For appearing in
Mining Sirdar
B. Trade Course
C. Diploma in Mining (Part time)

11.7
Vocational training (Statutory at VTC) 2012-13.

Type of Training
11.8.
2012-13
2011-12
Basic
564
1027
Refresher
8690
9351
Spl. Training
6399
6675
I.O.D.
394
170
Contractors Workers
4568
3142
RESCUE SERVICES IN ECL:

Rescue Services have been rendered to all collieries of ECL, Chunch Victoria Area of BCCL, Ramnagar
Colliery of IISCO as well as to Civil Administration and Public Authorities (as and when required) through
27
Mines Rescue Station, Sitarampur, Rescue Room with Refresher Training (RRRT) Kenda and Rescue
Rooms operating at Jhanjra, Mugma & Kalidaspur.
11.8.1 Details of Emergency attended :
In 2012-13, recoveries of old sealed off panels were retrieved in Belbaid, Belbaid OC Patch, Parascol (W),
Lachipur & Khottadih Colliery.
11.8.2 During the year Rescue Services dealt fire/spontaneous heating in the following mines
successfully.
Sl.No.
Colliery
Area
Date
From
To
Belbaid
Kunustoria
03.05.2012
2
3
4
5
6
Parascol(W)
Belbaid OCP patch
Parascol(W)
Khottadih
Nakrakonda
Kajora
Kunustoria
Kajora
Pandaweshwar
Bankola
18.06.2012
28.06.2012
27.07.2012
31.10.2012
12.03.2013
--22.06.2012
07.07.2012
28.07.2012
24.11.2012
14.03.2013
Other than the above 4 (four) more emergency rescue services were done as follows :
11.9
Sl. No.
Colliery
Area
Date
Nature of occurrence
Lachipur
Kajora
25.09.2012
Lifesaving Call
Ratibati
Satgram
05.01.2013
Inspection against water

accumulation deep faces
and position of other equipment
in face.
Open blazing fire and dealing in
2.1m3 hydraulic shovel.
Open blazing fire in CHP
Banjemehari OCP
Salanpur
17.01.2013
Khottadih
Pandaweshwar
10.02.2013
Training:
Refresher as well as initial training was imparted at Mines Rescue Station regularly, details are as follows:
Nature of Training
2012-13
2011-12
No. of Rescue personnel trained
679
682
No. of personnel freshly trained
40
47
5970
5834
10
No. of Refresher practices

No. of Emergencies
11.10
New apparatus/equipment purchased:

Procurement of 70 kg dummy body for training purpose & 14 Nos. of Resuscitating Apparatus are in pipe
line.
28
11.11
Zonal Rescue Competition:

Zonal Mines Rescue Competition, Eastern Zone, for the year 2012-2013 was held on 13th October, 2012
in which 13 (thirteen) Nos. Rescue teams took part (including BCCL Area-XII).
11.12
All India Mines Rescue Competition (Coal & Metal):

43rd All India Mines Rescue Competition (Coal & Metal) was conducted by Mines Rescue Station
Ramagundam (SCCL) from 27th to 29th November, 2012 two teams from ECL took part in that competition
and were awarded 3rd Best in Fresh Air Base & First Aid.
11.13
Budget Provision for Mines Rescue Station :

( ` in Lakhs)
Capital Budget
Particulars
Revenue Budget
2012-13
2011-12
2012-13
2011-12
Sanctioned
120.33
90.38
1260.85
938.00
Expenditure
22.08
29.38
1454.50
1117.00
12.0
MATERIAL MANAGEMENT:
12.1
Measures taken for Inventory Control and Management:

The closing inventory figures for the year ending 2012-13 as compared to the last year 2011-12 shows that
the inventory in value terms has decreased by 6.98% and in months consumption the decrease is to the
extent of 17.82%. The figures are given as follows:
Sl. No.
Details
Inventory (Value) (` in crore)
Inventory (Months Consumption)
31.03.2013
31.03.2012
% Reduction
167.26
179.81
6.98
3.09 months
3.76 months
17.82
It is significant that this reduction in inventory in terms of value and in terms of months consumption over
the figures of last year have been achieved.
12.2
Disposal of Scrap:
Disposal of Scrap through e-auction is conducted by Mjunction. During the financial year 2012-13, 11
(eleven) auctions were conducted and sales realization was to the extent of ` 9.94 crore as against sales
realization of ` 1.61 crore during the financial year 2011-12.
12.3
Implementation of Online Materials Management System:

Online Material Management System (MMS) is fully operational in eight areas stores of ECL. At moment
efforts are on to implement the same in Neamatpur Central Excavation Stores and Sodepur Central
Stores. The implementation of online MMS at Pandaweshwar, Mugma and Bankola area stores is also
scheduled during 2013-14.
13.0
QUALITY CONTROL:
29
13.1
Quality Improvement
In 2012-13, 98.20% confirmed to billed grade for dispatches of coal covered under agreed sampling
arrangement as compared to 89.66% grade confirmation achieved in 2011-12 on sampled quantity.
Details of Sampling
% of Grade conformation with respect to despatch
No. of samples with one grade slippage
% of one grade slippage
2012-13
2011-12
98.20
89.66
332
811
5.70
10.15
46
15
0.78
0.18
No. of samples with two grade slippage & more

% of two grade slippage & more
Against MoU Target of 100% for despatch covered under agreed sampling of coal to power sector actual
achievement is 100%. Against MoU Target of 90% for establishing mechanism through a publicized
website for handling of consumers complaint & no Complaint should be kept pending for more than three
months, the actual achievement is 95%.
13.2
Quality deduction:
The grade confirmation has increased over last year and the quality deduction in 2012-13 was ` 28.51 per
tonne compared to ` 53.60 per tonne in 2011-12.
Year
Total Quantity Despatched
Amount of
Deduction
(Rail & Road)
Deduction
` /Tonne
(in Lakh tonne)
(in Lakh ` )
2012-13
355.42
10134.50
28.51
2011-12
303.40
16252.84
53.60
[N.B.: Amounts calculated on the basis of basic price of RoM (250 mm) Coal]
13.313.3 WEIGHMENT & SIZING STATUS:
13.3.1 Weighment Status:
Weighment under EPS was 99.08% of total despatch in 2012-13. The quantity weighed in EPS has
increased by 17.09% from 300.74 Lakh Tonne in 2011-12 to 352.15 Lakh Tonnes in 2012-13. In 2012-13,
quantity weighed in EPS for supplies account Power houses & others compared to last year is below:
(Figure in L/T)
2012-13
Details
2011-12
Power
EPS
Other
Consumers
Total
Power
EPS
Other
Consumers
Total
Qnty. Despatched (by Rail) (in L/T)
300.21
55.21
355.42
246.36
57.04
303.40
Qnty. Weighed under EPS (in L/T)
297.02
55.13
352.15
244.19
56.55
300.74
Weighment % under EPS
98.94
99.85
99.08
99.12
99.14
99.12
30
13.3.2
Sizing Status
The total despatch of coal in 2012-13 was 355.42 Lakh Tonne of which the sized coal despatch by
Mechanical Crushing/UG coal to Power sector by Rail was 82.83%. The quantity of sized coal in CHP/
FB/UG has increased by 8.94 % from 263.26 Lakh Tonne in 2011-12 to 286.80 Lakh Tonne in 2012-13. In
despatches from sidings other than CHP/FB facility, sizing was done by Dozer and thus 100% sized coal
was despatched. To achieve supply of 100% mechanically crushed coal to Power Houses, action has
been initiated from few Areas namely Rajmahal and S.P. Mines. The details are given below.
Sizing of Coal
2012-13
Power
Others
Total
Power
Others
Total
Qnty. Sized in CHP/ FB (L/T) 248.66
38.14
286.80
217.22
46.04
263.26
82.83
69.08
80.69
88.17
80.70
86.01
DZR/MNL
51.55
17.07
68.62
29.14
11.00
40.14
17.17
30.92
19.31
11.83
19.30
13.99
100
100
100
100
100
100
Total
14.0
2011-12
VIGILANCE:
Vigilance Activities : (2012-13)
14.1
Punitive :
Sl. No.
Subject
No.
Complaints received
2
3
4
5
6
7
8
Complaints taken up for verification

Complaints pending as on 31.03.2013
Cases taken up for Investigation
Investigations completed
Investigation pending as on 31.03.2013
Regular cases registered by CBI
Cases taken up for Disciplinary Action
9
10
11
12
301
Major
Minor
Departmental Inquiries completed
Cases in which penalty imposed :
(i) Major penalty
(ii) Minor penalty
(iii) Administrative Action
(iv) Exoneration
Departmental Enquiry Cases pending
as on 31.3.2013 :
(i) Major
(ii) Minor
Inquiries pending with IAs more than 6 months
31
54
17
12
08
04
01
No. of
Cases
04
02
10
No. of
of persons
05
03
14
02
05
02
01
03
06
02
03
21
03
09
33
31
11
14.1
PREVENTIVE:
Sl. No.
Subject
No.
Surprise Checks/Inspections conducted
Vigilance Awareness programmes organized:

a) Awareness Programmes with internal faculties
34
27
b) Stake Holders Meet
c) Competitions Essay/Painting etc.
d) Seminar/Workshops with external faculties
In regular HRD programmes, 2 sessions (3 hours) are devoted for vigilance awareness.
14.3
Measures taken for systematic improvement:

During the year 2012-13, the following systemic improvement proposals were received :
1.
Proposals were received regarding system improvement in the matter of employment against
land loser scheme, scrap disposal and prevention of fire during welding of equipment.
2.
An exercise was undertaken regarding system improvement in respect of recording of dependents

of employees and its periodic updation.
3.
As a result of initiative of Vigilance Department relating to delay in refund of EMD & Bank Guarantee,
a circular has been issued by GM (F) I/C, ECL to all Areas and Units for early refund.
14.4
Vigilance Awareness Week:

ECL observed Vigilance Awareness Week from 29th October, 2012 to 3rd November, 2012 as per directives
of Central Vigilance Commission. A pledge was taken to bring about integrity and transparency in all
spheres of our activities and also to work unstintingly for eradication of corruption in all spheres of life. On
this occasion, a Compendium of CVC Circulars was also released.
Vigilance Department organized 5 seminars in different areas of ECL on the topic- Transparency in
Public Procurement. On 31.10.2012, Birth Anniversary of Sardar Vallabh Bhai Patel was celebrated at
the Vigilance Department hall by paying rich tributes to Sardar Vallabh Bhai Patel. On 01.11.2012, various
competitions like essay writing, debate, painting (sit and draw), slogan writing and cultural presentations
were organized by Vigilance Department. Prizes to the winners and all participants were distributed. A T20 Cricket Match was organized on 02.11.2012 at Bankola Area on this occasion. A Stake Holders Meet
was organized at ECL HQ on 3.11.2012. A News Letter Sachetana was released by Vigilance Department,
ECL during the final day programme of the Vigilance Awareness Week, 2012. Stake Holders and others
were presented with Mementoes.
14.5
Extent of IT usage and the E-Governance:

Tenders are being placed simultaneously on company website www.easterncoal.gov.in & Govt. Tender
portal-www.tenders.gov.in. Besides, the Tender and Bid documents, Registration Forms for the Vendors
and vigilance circulars are also available on the website.
The company has started posting of information related to Voluntary Retirement Scheme approvals, Reinstatement of employees, monthly status of employment under NCWA and Employment offered against
Land Loser Scheme regularly on the Website for improving transparency.
32
Recruitment Portal: The Company has launched its Recruitment portal for On-line advertisement and
receipt of job applications against advertised vacancies.
14.6
Implementation of e-governance:
During a meeting the following points were reviewed in details: (i) placing all circulars on ECL Website, (ii)
e-Payment to third parties (iii) status of employment (against land and medically unfit cases) with
relationship of the nominee and VRS applications in Company Website. Comprehensive study was done
on the procedure being followed for the monthly allocation of coal dispatch at the HQ with regard to FSA,
MOU and e-auctions as discussed during the meeting held at MOC in presence of Chairman, CIL. CVO,
ECL highlighted the financial gain to the Company in this regard and stressed the need to computerize
the entire process so that any manipulations are ruled out. The proposal was agreed and concerned
officials were asked to take further action.
14.6.1 E-Auction:
With the implementation of the system improvement measures suggested by Vigilance Department in the
previous year(s), relating to automation of allotment of High Bid collieries/pilots offered under e-auction
and low bid collieries/pilots offered to FSA consumers under non-power sector and improvement in steam
loading, there has been marked improvement in realization in e-auction during the period April 2012 to
December 2012 compared to corresponding period last year. Against a dispatch of 25.92 lakh tonnes
during the period April, 2011 to December 2011, the dispatch during April 2012 to December 2012 was
28.26 lakh tonnes and gain over notified price during April 2012 to December 2012 was ` 291.29 crores
compared to ` 278.50 crores during the corresponding period last year. Similarly, steam loading during
April, 2012 to December, 2012 was 25.40 lakh tonnes compared to 22.60 lakh tonnes during corresponding
period last year. This has resulted in more sales realization by ` 5.04 crores. On implementation of the
vigilance suggestion consequent on a surprise check, the under-loading penalties have come down from
` 3.38 per tonne to ` 2.39 per tonne, i.e. a net saving of ` 71 lakh approximately..
14.6.2 E-Procurement:
Rate Contracts with 1) M/s ITI Ltd Bangalore, 2) M/s MSTC Kolkata 3) M/s Metal Junction Service Limited
Kolkata as Service providers for implementation of e-procurement in CIL and its subsidiaries was finalized
by CIL. The R.C finalized by CIL provides four options of operation for e-procurement a) E-tendering with
e-price bid b) e-tendering with e-price bid followed by reverse auction c) e-tendering with reverse auction d)
Bare reverse auction. While selecting options for operations it was felt prudent by the MM department to
choose e-tendering with e-price bid only. Since all open/global tenders are being done through e-tendering
with M/s. ITI Limited as service provider, the tender documents are being given in ITIs portal
www.itietendering.com/CIL. The tender notices for these tenders are being displayed in government tender
portal as well as website of ECL with a note that tender documents are available on the ITI portal and can
be downloaded from there. Further all Limited tender enquiries above ` 10 lakhs are also being uploaded/
published on ECLs Website/Govt. Portal.
During 2012, all open/global tenders of ECL Hqrs. were done through e-procurement with e-price bid
system. A full-fledged e-procurement Cell is functioning to provide support for e-procurement activities.
Details of all Purchase Orders finalized by the Department are being put up on the website subsequent to
finalization of tenders.
33
14.6.3 E - Payment :
After introduction of payment through RTGS/e-mode, the payments are made both by issuing cheques
and advice through RTGS/e-mode. Statutory Government dues except Income-Tax, RE-Cess & PE Cess
are being made through e-payment. Position of bills pending for payment at ECL HQ is being submitted
for information through web-site every month.
14.6.4 E-Tendering:
There has been marked improvement in e-governance in 2012 in ECL. ECL e-Tendering site-http://
ecltenders.gov.in has come to a shape for hosting tenders for Works & Services. The e-tendering system
has commenced from February 2013.
14.6.5 Job Rotation:
In view of the extant guidelines of CVC and transfer policy of CIL, the matter is being reviewed in the
Structured Meetings. During the year 2012-13, against 23 officers and 1016 non-executive employees
drawn for rotation, 9 officers and 702 non-executive employees were transferred upto December 2012.
14.7
IMPLEMENTATION OF INTEGRITY PACT PROGRAMME:

Integrity Pact has been implemented in ECL. During the year 2012, in 157 tenders (149 from Purchase, 7
from CMC ands 1 from Civil) IP were incorporated. No complaints were received and no matters were
referred to Independent External Monitors.
15.0
PARTICULARS OF EMPLOYEES:
None of the employees received remuneration in excess of limits prescribed under section 217(2A) of the
Companies Act 1956 read with companies (particulars of employees) Rules 1975, as amended.
16.0
OFFICIAL LANGUAGE IMPLEMENTATION:

ECLs HQ and 11 Areas are situated in C region where 86% employees are posted. Only 3 areas are
situated in A region (Jharkhand). The following steps have been taken to increase the use of official
language in our company:
1.
All the computers of HQ, as well as 90% computers of Areas have been activated with Unicode and thus
made able to work in Hindi.
2.
The classes of Hindi Praveen Course, under Hindi Teaching Scheme commenced from 18.07.2012 for
Non-Hindi employees of HQ.
3.
A Hindi Kavi Sammelan was organized on 14th September, 2012 in which the poets of all India level
addressed the audience.
4.
The rule of writing the subject of the files in Hindi on the covers has been implemented.
5.
All name-plates and notice-boards have been made & displayed according to the Three-Language Formula.
6.
The ideal thoughts of Mahatma Gandhi, Swami Vivekananda, Rabindranath Tagore, Bankim Chandra
Chatterjee, etc. have been displayed on colourful and attractive boards with their photographs at the
various places at HQ premises.
7.
All the Rubber-stamps have been made bilingual (Hindi on the top and English at the bottom) and are
being used.
8.
To ensure the inspection of Official Language Implementation and compliance of the related rules and
regulations of Official Language in each Department of HQ and Areas, five committees have been constituted.
The committee has finished the work of inspection/suggestion during the period under review.
34
9.
Director (Personnel) of ECL, Sri Sushil Kumar Srivastava has been awarded with the honour of RAJBHASA
KARYANWAYAN RATNA by Pariwartan Jankalyan Samiti, Delhi on the occasion of 9th Hindi Mahakumbh
and Sahitya Srijan Samman Sammelan, held in Delhi on 26.09.2012.
10. Rajbhasa Pakhwara was organized from 1st September, 2012 to 14th September, 2012 in which essay
competition, official letter writing and note-sheet writing competition were organized for Hindi-speaking
and Non-Hindi-speaking employees separately. The winners of these competitions were awarded with
various prizes and certificates.
11. The officers of each department have been trained to type in Hindi with Unicode so that the growth in Hindi
correspondence could be accelerated. This training is going on regularly at present also for new officers
and employees.
12. The names of all the officers and employees are written in Hindi and English in all the attendance registers
of all departments.
13. The names of the security guards have been displayed in Hindi on their pockets.
14. In comparison with the last year, a growth of 9% in Hindi correspondence has been recorded in Region A,
6% in region B and 3% in region C.
15. We have reached the target of 55% correspondence in Hindi in Region A at HQ during the quarter ended
on 31.12.2012.
16. During the year a 21 days Translation Training Programme was organized with the help of Central Translation
Bureau, Ministry of Home affairs, Govt. of India. A scheme to give honour to the writers of Jyotsna, the
house journal of the company, has been started. In this scheme each writer of 12 excellent writings will
be honoured with ` 1000/- each and a certificate.
17. During the year books amounting to ` 5,306/- (No. of books: 54) have been purchased for Ravindra Hindi
Pustakalay of HQ.
17.0
BIFR & BRPSE STATUS:

As on 31st March, 1997 accumulated losses of the company exceeded its networth by ` 251.20 crores.
Hence company was referred to BIFR in October, 1997 in terms of Section 15(1) of SICA. Due to financial
restructuring done by CIL on 31st May 1998 by converting unsecured loan of ` 1179.45 crore into
equity, the net worth of the company became positive as on that date and company came out of BIFR.
Since the company continued to incur losses year after year the networth of the company again became
negative as on 31st March, 1999 and the company was again referred to BIFR in November, 1999. Companys
case was registered as case no. 501/2000.
BIFR declared the company as sick company in February, 2001 and appointed State Bank of India as its
operating agency for formulating a Rehabilitation Scheme. After detailed deliberations with the stakeholders
company prepared a Rehabilitation Scheme dated 31st January, 2004. This was discussed in a joint
meeting held on 3rd March, 2004 and all the stakeholders supported the scheme. Hence operating agency
submitted a fully tied up Draft Rehabilitation Scheme of Eastern Coalfields Limited (March 2004) to BIFR.
As per scheme, net worth of the company was slated to become positive in 2008-09 with concessions
from CIL. BIFR sanctioned the scheme in November, 2004 for implementation. The scheme was also
examined by the office of the Controller General of Accounts. They had also recommended the scheme for
revival of the company.
BIFRs sanctioned Rehabilitation Scheme was revised as per the advice of BRPSE. As per the Revised
35
Scheme, networth of the company was slated to become positive in 2009-10. This Revised Scheme was
heard by Board for Reconstruction of Public Sector Enterprises (BRPSE) in August, 2005. They had
recommended the scheme for approval. The recommendations of BRPSE were heard by Committees of
Secretaries (COS) on 13th January, 2006. They had also recommended the Scheme for the revival of the
Company. Cabinet Committee on Economic Affairs (CCEA) had approved the BRPSE recommended
Revival Plan of ECL on 6th October, 2006.
After obtaining the approval of CCEA, company had submitted the Revised Rehabilitation Scheme to the
Monitoring Agency and BIFR in October 2006 with a request to approve the Revised Rehabilitation Scheme
for implementation. BIFR advised the company to submit Govt. approved Revival Plan to Monitoring Agency
with a copy to them. Company had submitted the same to Monitoring Agency with a copy to BIFR on 7th
August, 2007. BIFR is yet to approve the same.
In June, 2009 BIFR advised the company to revise the Draft Modified Revival Plan submitted earlier. BIFR
further advised the company to send a copy of CCEA approval of DMRP. Hence company prepared a
Revised Revival. Revised Revival Plan was discussed in 230th ECL board meeting held on 31st August
2009 and 1st Sept, 2009. Due to enhancement of coal prices from 16th October, 2009 and delay in
implementation of various projects, Functional Directors in its meeting held on 5th Jan10 advised to revise
the physical parameters from 2010-11 to 2016-17.
Hence the financial projections earlier made were revised. BRPSE reviewed the ECLs case on 27th
August, 2010. Company presented the DMRP (June, 2010). BRPSE advised the company to revise the
physical and financial projections by exploring the possibility of advancing the project completion to
enable the company to come out of BIFR. Hence the revised DMRP (November, 2010) was prepared. As
per DMRP (November, 2010) the company was expected to come out of BIFR in 2014-15. The revised
DMRP (November, 2010) was submitted to BIFR in its meeting held on 22nd November, 2010. As advised
by BIFR, the Monitoring Agency got the TEV study conducted by a consultant.
In the hearing held on 08.06.2011 the BIFR directed the company to serve a copy of DMRP and TEV
Report to all the stake holders, advised MA to call a joint meeting of all the stakeholders within four weeks
and submit a report if any on the DMRP and TEV Report vis--vis the suggestions of other stake holders
within six weeks. The directions of BIFR are complied.
As per summary record of proceedings of the meeting held on 02.09.2011, on the advice of BIFR, DMRP,
September, 2011 was submitted. As per the revised DMRP of ECL- September, 2011, the net-worth of the
company is slated to become positive in 2015-16. No meeting / hearing was held with BIFR/BRPSE in the
financial year 2012-13. Effective steps have been taken to implement the revival plan and it is expected
that the company will come out of BIFR by 2015-16.
18.0
COMPUTERISATION & I.T. ENABLED SERVICES:
18 .1
Roll out of e-Tendering Solution in ECL:

i)
e-Tendering solution has been rolled out in ECL for Works & Services tenders above ` 5.00
Lakhs from the traditional system of tendering wherein tendering cycle can be done online making
huge advances in efficiency, transparency, data storage and it is helpful in reducing the total
cycle time of procurement.
ii)
The software used is GePNIC from National Informatics Center (NIC), our service provider for this
purpose.
36
iii)
A separate domain has been registered by ECL for e-Tendering purpose at http:ecltenders.gov.in
which was launched on 05.02.2013 wherein six pilot tenders have been successfully floated.
iv)
ECL is the second subsidiary of Coal India Limited who has implemented the e-Tendering solution
after MCL for Works & Services.
18.2
Non-Executive Information System (NEIS):

NEIS has been developed, implemented and made available in ECL website so that the person concerned
may get information on-line from anywhere at any time.
19.0
ELECTRONICS & TELECOMMUNICATION:

In order to keep pace with advancement of communication and information technology the following had
been achieved in 2012-13.
19.1
a.
Surface Communication:
For efficient surface communication order has been placed for 10 Nos. of EPABXs having 64 line capacities
for interfacing with auto-cum auto-manual system for Mugma Area, Salanpur Area and Kunustoria Area.
b.
Order has been placed for 1 No. EPABX for Satgram Area having 150 line capacities.
c.
Work order has been placed for establishing connectivity of all the Areas with the HQs and ECL Sales
office Kolkata through Virtual Private Net-Work, but work is yet to be started by BSNL.
19.2
a.
Underground Communication:
For providing underground communication system 8 nos. Auto-cum auto-manual IS communication system
having 15 lines capacity are being procured for Mugma area & 1 No having 30 lines capacity for Kunustoria
Area.
b.
19.3
89 Nos. Loud hailing sets are being procured for providing U/G communication system.
Others:
Walkie talkie/VHF Radio communication system has been provided in the open cast mines of ECL and
CISF camp as per requirement.
20.0
LAND ACQUISITION & LAND INFORMATION STATUS:
20.1
Status of Land Acquisition:

The status of land acquisition/possession mode-wise, project-wise for the year 2012-13 is given below:
Mode of Acquisition
Acquired (in Ha)
Direct Purchase of Tenancy land
Possession (in Ha)
19.45
22.67
L.A. Act
2.29
2.29
CBA Act
310.60
416.69
Issue of Notification U/s(9)
426.63
471.66
The status of land acquisition cases which have been processed under LA Act and under CBA Act are as
follows:
37
Under L.A. Act:

1.
Kalipahari OCP 44.46 acre Matter is pending with C&I Department, Government of West Bengal.
2.
Sarpi UG 217.38 revised Company deposited 50% of the estimated amount ` 5.94 crore to
State Government. The matter is pending with joint secretary C&I Department, Government of West
Bengal.
3.
Nakrakonda Ext. OCP - 55.99 acre - Matter is pending with Joint secretary L & LR Department,
Government of West Bengal.
4.
Mohanpur OCP - 39.66 acre - Cabinet approval done by State Government. Notification u/s 4 of LA
Act 1894 has been done on 07.11.2012 and corrigendum done on 20.11.2012.
5.
Sonepur Bazari OCP - Matter is pending with L& LR Department, Government of West Bengal.
6.
Gourandih D Block - 42.48 acre - Proposal is pending with LA Collector, Burdwan.
7.
Pandaweshwar OCP - 360.62 acre - State Government demanded 50% of estimated amount which
was not paid because proposal for starting the OCP is under reconsideration of the concerned area.
8.
Narainkuri OCP 114.80 acre - The matter is pending with Joint secretary L & LR Department,
Government of West Bengal.
9.
Dalurband UG- It has been approved by the State Government and is pending at LA Collector Burdwan
for giving possession.
10. Sangramgarh: It has been approved by State Government and is pending at LA Collector Burdwan
for giving possession.
11. Banbahal OCP: Application submitted on 17.12.2011 for 50.06 acre. State Government demanded
` 0.55 crore as 50% of estimated amount which has been deposited in July 2012.
12. Madhaipur OCP: Application submitted on 16.2.2011 for 130.98 acre of land. State Government
demanded ` 1.50 crore as 50% of estimated amount which was not paid because proposal for
starting the OCP is under reconsideration of the concerned area.
Under CBA Act:
1.
Chota Bhorai Mouza-50.38 acre MoC published the notification u/s 9(i) in the gazette of India on
26.05.2012. MoC had sent the draft notification on 15.11.2012 to Gazette of India for publication u/s
11(i).
2.
Simlong Project-18.03 acre MoC published the notification u/s 9(i) & 11(i) in the gazette of India on
16.05.2012 and 20.10.2012 respectively. Process of acquisition is completed.
3.
Rajmahal Ph VII 698.71 acre- MoC published the notification u/s 9(i) & 11(i) in the gazette of India
on 15.05.2012 and 29.09.2012 respectively. Process of acquisition is completed.
4.
Rajmahal (Lohandia)228.89 acre- MoC published the notification u/s 9 (i) in the Gazette of India
on 14.04.2012 and Draft notification u/s 11 (i) send to MoC on 03.07.2012.
5.
Simlong project Ph II 616.76 acre. MoC published the notification u/s 4 (i) in the Gazette of India
on 29.07.2012 and Draft notification u/s 7 is under process.
38
6.
Mohanpur OCP, Salanpur 57.69 acre. MoC published the notification u/s 9 (i) in the Gazette of
India on 07.07.2012 and MoC sent the draft notification u/s 11(i) to Gazette of India for publication on
10.01.2013.
7.
Jhanjra UG 566.124 acre- Notification u/s 7 (i) done on 25.12.2010 and Notification u/s 9 was done
on 22.02.2013
20.2
Status of Mining lease of Sand:

Temporary Working Permit for extraction of sand for stowing purpose for the period of 01.04.2012 to
30.09.2012 and from 01.10.2012 to 31.3.2013 has been obtained from the Jt. Secretary, Government of
West Bengal, C&I Dept., Kolkata on 04.04.2012 and on 06.10.2012 respectively.
21.0
SECURITY MANAGEMENT:
The aim of Security Department is to protect men and materials of the company. Company is having 3
(three) types of security.
1.
ECL Security 1806 as on 01.04.2012.
2.
Contractual Security 2109 persons.
3.
CISF- 950 persons.
ECL Security:
The main duty of ECL Security is to guard the companys property i.e., Stores, Office, Explosive Magazines,
Coal Depots/Sidings, colonies and escorting of VIPs as and when required by the Management. Escorting
of loaded Railway Rakes, Tipping Trucks/Dumpers from Coal Depot/Siding to Railway Weigh Bridges
respectively till the weighment is done. The raids are also conducted throughout the year by our security
personnel, CISF along with local police, accordingly seizure of coal involve trucks/vehicles, and apprehension
of miscreants are also made during the course of raids and subsequently the same is handed over to the
local police station/ management. ECL Security Personnel were also deployed during the time of strike/
gherao/demonstration/hunger strike and any type of law and order problem in ECL Area.
Contractual Security:
The Contractual Security personnel engaged through DGR sponsored agencies are generally deployed for
outsourcing patches and some collieries of ECL and escorting of Railway Rakes, due to acute shortage of
departmental security.
CISF:
CISF is deployed for static duty at Rajmahal, Sonepur Bazari and S.P. Mines. Besides they are having
camps at Mugma, Salanpur, Sripur, Kunustoria, Pandaveswar, Kalidaspur and Satgram Area. They remain
on mobile duty to conduct raids against illegal mining, illegal trafficking of coal and illegal coal depots and
to deploy CISF personnel during Strike/Gherao in the colliery/area.
Basic Problem of Security
a) Shortage of executive & other ranks manpower in security department to manage the day to
day security work.
b) Lack of transport and communication system.
c) Need for centralised accommodation of Security personnel.
39
Steps taken for revamping of security at ECL:

a.
Requisition of 449 CISF personnel has been sent to CISF HQ. These persons are exclusively for
Explosive Magazine of ECL.
b.
New recruitment of 215 security guards.
c.
Agencies have been contacted for installation of CCTV and other techno-gazatory to be provided
in Explosive Magazine, Central Store and Railway Siding.
d.
Arms Training by CISF Instructors have been imparted to 112 Security Guards of ECL who will be
deployed for guarding Explosive Magazines after inclusion of their name as Arms Retainer in the
Arms Licenses held by ECL.
e.
Basic training has been imparted to 115 persons of other category who after training will deployed
as security persons both male and female.
f.
Set up of Check Posts for fruitful implementation of the West Bengal Minerals (Prevention of
Illegal Mining, Transportation & Storage) Rules, 2002.
g.
A mechanism to collect the seized coal from local Police Stations has been put in place. ECL
has received about 6300 tonnes of seized coal during 2011-12 till June12.
Steps being taken to check/prevent the illegal mining of coal:

a.
Intelligence collection.
b.
Dozing off/filling up/sealing the illegal coal mining sites and subside area by departmental Pay
Loaders/Dozers and some times contractually.
c.
Surprise checks /raids by CISF, ECL Security along with Police and seizure of illegal coal /illegal
trafficking of coal along with involved vehicles and apprehension of miscreants and subsequently
handed over to the same to the local Police station.
d.
Regular meeting of Central/State/District level Authorities to check/prevent illegal mining. The

concerned Police Stations are advised by District Authority and Sub-Divisional Authority to increase
their vigil check to stop re-opening of the dozed illegal mining spots.
e.
Frequent inspection by Area Team consisting of CGM, Area Survey Officer, Area Security Officer
along with CISF officials to the affected sites and accordingly meetings are held in the Commandant,
CISF Office regularly.
f.
The resolution has been taken for constitution of Security Co-ordination committee for Asansol
Sub-division for reviewing the status of illegal mining.
Steps taken to check/prevent theft of coal:

a.
Surprise checks/raids are conducted by ECL Security along with CISF personnel/Private Security
to prevent theft of coal. During the course of checks/raids, they seized coal, apprehended miscreants
and FIRs lodged to local Police Stations.
b.
Armed Security personnel escorting coal loaded rake from Siding to Railway Weighbridges.
c.
8 Nos. of strategic points are identified in coal belt for detection of vehicles loaded with stolen/
illegally mined coal.
d.
After setting up of Commissionrate from 1st Sept, 2011 onwards at Asansol-Durgapur there has
been improvement in curbing of coal theft activities. Commissionrate Officers in co-operation with
40
CISF and ECL Security has taken various steps which resulted in reduction of coal theft activities
in West Bengal Areas of ECL.
A)
Details of Seizure of Coal from Illegal Trafficking Coal and Illegal Mined Coal by ECL Security,
CISF and Local Police :
Year
State
No. of
Raids
Coal
seized (tonne)
Vehicle
seized
Person
Apprehended
FIRs
Lodged
Seizure of Coal from illegal traffcking

2012-13
2011-12
West Bengal
295
1944
11
19
19
Jharkhand
324
2104
---
07
02
Total
619
4048
11
26
21
Total
551
5648
18
07
28
Variation
68
1600
07
19
07
Seizure of Illegal Mined Coal by Security, CISF & Local Police :

2012-13
2011-12
B)
West Bengal
70
---
---
---
---
Jharkhand
16
---
---
---
---
Total
86
---
---
---
---
Total
40
667
05
47
11
Variation
46
667
05
47
11
During the course of dozing off/ sealing/filling up of the illegal mining sites the ECL security along with
CISF and local Police are also deployed at the dozing points within leasehold and outside the leasehold
areas. In the year 2012-13 following dozing /sealing are done to curb the illegal coal mining.
Year
2012-13
2011-12
State
Sites
Dozed
Volume Used
(L. Cum)
Expend (approx)
( ` in Lakh)
Fir/Info. Sent
to Local PS
West Bengal
1315
0.4104
32.35
116
Jharkhand
28
4.7063
165.91
44
Total
1343
5.1167
198.26
160
Total
1893
3.4215
114.48
111
Variation
550
1.6952
83.78
49
This year different type of Meetings i.e. Central/State/District/Sub-Divisional/CIL/Company and Colliery

level were held on Mitigation of Illegal Mining and Theft of Coal in West Bengal and Jharkhand States. After
setting up the Commissionrate Asansol-Durgapur in the month of Sept11, the drastic action taken by ECL
Management alongwith District Authority, the Illegal Trafficking of Coal and Illegal Mining has gone down
considerably. Due to close liaison with Police, re-opening of those dozed off illegal mining pits are not reopened as was done in earlier period by the miscreants Theft of other materials from colliery / units has
decreased in the recent past.
41
C.
Theft / Recovery of other materials :

Year
2012-13
2011-12
Variation (Increase/decrease)
No. of Incidents
175
196
21
No. of FIRs/ Infos.
170
168
02
7519033.00
10465859.00
2946827.00
206450.00
639000.00
432550.00
03
03
----
Property Stolen (in ` )

Property recovered (in ` )
Person apprehended
22.0
PERFORMANCE OF OUTSOURCING OC PATCHES :
22.1
OUTSOURCING OC PATCHES:
In 2012-13, company produced 83.96 LT of coal and raised 460.24 L. Cum of OB from 19 outsourcing OC
patches against target of 75.00 LT of coal and 222.02 L. Cum of OB. Against MoU Target of 3 nos, for
Commencement of Hired HEMM Patches the actual achievement is more than 3 no patches.
22.1.1. OC Patches awarded through hiring of HEMM :

Sl.
No.
Name of Patch / Area
W.O. / LOA No. & Work Value /
Completion
Name of Agency
Period
Lohandia OC Patch at Rajmahal
LOA
No.-345,
Date21.05.2012
` 104.05 crore, M/s. Mahalaxmi Infra Contract
Pvt. Ltd.
2 years
Simlong Ph-II at Rajmahal
LOA No.-378, Date ` 43.06 crore, M/s. ANE(JV)
4 years
North Searsole OC patch Kunustoria
LOA No.-863, Date - 11.10.2012

` 64.10 crore, M/s. Coal Mines Associated
Traders Pvt. Ltd.
2 years
OB Removal of Khottadih
Pandaweshwar
at
LOA No.-112, Date - 30.01.2013

Pvt. Ltd.
7 years
Mallick Basti OC Patch at Satgram
LOA
No.-884,
Date-29.10.2012
` 8.66 crore, M/s. BBTA-MTLT-AJJW(JV)
1 year
LOA
No.-942,
Date-28.11.2012
` 65.54 crore, M/s. APM-CISC (JV)
1 year
LOA
No.-755,
Date-22.08.2012
Pvt. Ltd.
3 years
W.O. No.-264 dated 14.04.2012. Agr. No.-04 /

HQ / 2012-13 dated 12.10.2012. ` 4679.53
crore. M/s Rajmahal Coal Mining Ltd.
12 years
Nakrakonda Ext.-B at Bankola
Jambad OC Patch at Kajora
Rajmahal Expansion OCP (17 MTY)
42
01.06.2012
22.1.2. Work tendered through e-mode & under finalization (Outsourcing OC Patch) :
Sl
No
Name of work
Proposed
Coal
Proposed
Overburden
Remarks
Part-II is yet
to be opened.
Chapapur 10
8.00 L. Te.
23.00 L. cum
Madhabpur Ph-II
0.54 L. Te
1.80 L. cum
Kumardihi B
4.03 L. Te.
13.62 L. cum
Bahula
6.00 L. Te.
39.63 L. cum
S.P. Mines
54.50 L. cum
Award of work is
under finalization.
22.1.3 Transportation works: Discount Bidding:

Transportation works having estimated value more than ` 1.5 crore (Coal) and more than ` 2.00 Crores
(Sand) through tendering from HQs in respect of different areas of ECL had been finalized.
23.0
CORPORATE GOVERNANCE:
Corporate Governance is a process that aims to meet shareholders aspirations and societal expectations.
It is a commitment that is backed by the fundamental belief of maximising shareholders value, transparency
in functioning, values and mutual trust amongst all the constituents of organisation. Its not a discipline
imposed by a Regulator, rather a culture that guides the Board, management and employees to function
towards the best interest of shareholders. It involves essentially a creative, generative and positive thinking
activity that adds value to the various stakeholders that are served as end customers of the corporate
entity.
ECL is committed to achieving highest level of transparency, openness and accountability and fairness in
all areas of operation, meeting the aspirations of all its stakeholders with primary objective of enhancing
shareholders value, timely and balanced disclosure of all material information to all the stakeholders and
protection of their interest. The Company has put in place a sound system of internal control to mitigate
the risks and comply with the laws of land, rules & regulations in true letter and spirit with a view to provide
oversight and guidance to management in strategy implementation.
In our Company, Corporate Governance philosophy stems from our belief that corporate governance is a
key element in improving efficiency and growth as well as enhancing investor confidence and accordingly
the Corporate Governance philosophy has been scripted as under :
As a good corporate citizen, the Company is committed to sound corporate practices, based
on conscience, openness, fairness, professionalism and accountability in building confidence
of its various stakeholders in it thereby paving the way for its long term success.
A report on Corporate Governance of your company is placed at ANNEXURE-V and a certification from
Auditors regarding compliance of conditions of Corporate Governance by your company for the year
ended 31st March 2013 is also placed at ANNEXURE-VI to this report.
43
24.0
ACKNOWLEDGEMENT:
Your Directors express their sincere gratitude to Govt. of India in general, Ministry of Coal, Govt. of West
Bengal, Govt. of Jharkhand and Coal India Limited in particular for their valuable guidance and co-operation
throughout the year towards attainment of the objectives of the company. Your Directors also thank all the
operating Trade Unions for their co-operation and to the employees of the Company at all level for their
sincere and dedicated services rendered by them in the functioning of the Company. They are fully confident
that the employees of all ranks would continue to strive hard to improve the performance of the company
in the coming years to enable the company to come out of BIFR and making it a profitable company.
Your Directors acknowledge with thanks the assistance and guidance received from Statutory Auditors,
Tax Auditor, Concurrent Auditor, BIFR, BRPSE, SBI, Registrar of Companies, West Bengal and Comptroller
and Auditor General of India. Your Directors also wish to place on record their sincere thanks to the valued
customers and consumers for their patronage to the company.
The following papers are annexed to the Report:
i)
Comments of the Comptroller and Auditor General of India under Section 619(4) of the Companies
Act 1956.
ii)
Foreign exchange earnings and outgo (ANNEXURE-VII).
iii)
Details about research and development activities of the company (ANNEXURE-VIII).
iv)
Addendum to the Directors Report under Sec. 217(3) and 227(2) of the Companies Act 1956
stating Statutory Auditors Report and Managements reply thereon.
For and on behalf of the Board of Directors
Sanctoria,
Dated: 24th May 2013
(Rakesh Sinha)
44
216.98
20.90518
3339.98
Name of the Project
Development of imminent
roof fall prediction
system in underground
mines using wireless
network.
Project Code :
CIL/R&D/1/27/08
Implementing agency:
IIT, Kharagpur & ECL
Delineation of workings
below Railway lines near
Ratibati Colliery, stability
analysis by numerical
modeling & possible
remedial measures.
Project Code:CIL/R&D/
1/31/08
CIMFR, Dhanbad.
Recovery and Utilization

of Coal Mine Methane in
Jharia and Raniganj
Coalfields
Project Code: CIL/R&D/
1/30/09
CIMFR, Dhanbad
Sl.
No.
3.
Financial
Outley
( in Lakhs)
45
June,
2009
Feb,
2009
May,
2008
Date of
Start
May, 2011
June, 2010
Feb. 2011
Revised /
scheduled date
of completion
2100.00
20.422
215.00
Progressive
Disbursement
( Lakh)
3.4.1. Status of On-going R & D Projects upto 31st March, 2013
The status of the project was reviewed in Apex

Committee meeting held on 10.8.2011. The
Committee after detailed deliberation recommended
to R&D Board of CIL for for-closure of the project as
it was found not feasible to continue with the
project.The foreclosure report is yet to be submitted
by CIMFR, Dhanbad.
Project completion report submitted. The Borehole

GPR system was used for the first time to delineate
inaccessible mine workings below railway lines
near Ratibati Colliery, Satgram area. The Apex
Committee in its meeting held on 10.08.2011
accepted the project completion report and
recommended the same for consideration by the
R&D Board of CIL.
Project completion report submitted by IIT,

Kharagpur was discussed in Apex Committee
meeting held on 12.05.2012 at Ranchi. The
Committee suggested IIT, Kharagpur to conduct
further field trials at Jhanjra project by utilizing the
balance fund in the project, to refine the sensors
developed and provide real-time strata monitoring
system as envisaged in the project and submit the
addendum to the report by Nov 2012. IIT, Kharagpur
is yet to submit the Addendum.
Present Status
Annexure - I
5.
Underground Trapped
4.
46
ii) Pullout tests were conducted at Jhanjra project

in W-6 panel.
dynamic
resin grouted material.

iv) Several pull out tests were conducted on resin
grouted rock bolt samples at IIT, Kharagpur lab. 33
numerical models for different rock bolts assemblies
have been developed and accordingly technical
1/42/10.
Implementing Agencies:
CMPDIL, Ranchi, IIT,
Kharagpur & RDCIS
(SAIL), Ranchi.
month of Jan. 2013.
report submitted by blasting cell, CMPDIL in the
iii) Lab work has been started for standardization of
loading.
are under trial at IIT, Kharagpur
22mm and 25mm, Fe-600 bolts supplied by SAIL
i) Laboratory investigations in respect of 20mm,
is in progress at CIMFR, Dhanbad.
Access Point (RAP) and Mesh Access Point (MAP)
Testing of flame proof enclosure for both Root
working well. Testing of MCD is in progress at ERTL.
from surface to underground and vice versa is
26.7.2012. Two way voice communication systems
mine and field trial is going on satisfactory from
portable radio has been completed at Jhanjra MIC
vide letter No. 1745 dated 10.7.2012. Installation of
Field trial permission has been obtained from DGMS
Present Status
under Blast induced
2013
273.83
446.20
Progressive
Disbursement
( Lakh)
and Depillaring panels
Behavior in Development
Investigation of Bolt
14th Dec.,
June, 2011
agency: TCS, CMC &
491.08 15th Dec.,

2010
Dec. 2011
CMPDIL (ME), Ranchi
June, 2012
Dec. 2012
June, 2013
Revised /
scheduled date
of completion
1/35/10 Implementing
489.70 15th Jan.

2010
Date of
Start
Project code - CIL/R&D/
Miner Location system
Name of the Project
Sl.
No.
Financial
Outley
( in Lakhs)
Research
Management
47
2013
IIT, Kharagpur
Implementing Agency :
CIL/R&D/1/54/2013
Project Code :
Mining Machines
Cables of Underground
Techniques for Trailing
1st
2013
March,
March,
187.84
66.19
Date of
Start
Compound and Repair
Development of Rubber
Kolkata
Consultants Pvt. Ltd.,
DFIC
IISWBM, Kolkata &
Implementing Agencies:
1/55/13.
plan.
pilot study and action
energy management
development on efficient
and
Name of the Project
Sl.
No.
Financial
Outley
( in Lakhs)
Feb., 2015
May, 2014
Revised /
scheduled date
of completion
0.00
50.00
Progressive
Disbursement
( Lakh)
1st March, 2013.
Date of approval: 05.12.2012 and Commenced from
Commenced from 1st March 2013.
Present Status
Name of the Project
Investigation of cavability
of overlying strata and
development
of
guidelines of support
capacity for Longwall
faces (MT/151)
CIMFR Dhanbad, NIRM,
Kolar, CMPDIL, Ranchi &
ISM Dhanbad
Delineation of barrier
thickness
against
waterlogged workings in
underground coal mines(MT/153)
Implementing agency :
CIMFR, Dhanbad
Model studies on gravity

blind back filling method
and evaluation of prejamming
indication
parameters in the field
(MT/154)
IIT, Kharagpur
Sl.
No.
48
402.66
342.2692
461.3674
For CMRI 200.142
For NIRM-187.91
For ISM-63.3154
For CMPDIL 10.00
Financial
Outley
( in Lakhs)
Mar.
2008
May,
2007
Nov.
2005
Date of
Start
Nov. 2011
Feb. 2011
Mar. 2012
Jan. 2012
Sep. 2011
Mar. 2011
Oct. 2010
April, 2009
Sep. 2010
Mar. 2010
Oct. 2008
400.00
340.00
255.00
CMRI - 70.0
NIRM - 130.00
ISM 55.00
Scheduled / Progressive
Disbursement
Revised
( Lakh)
date of
completion
3.4.2. Status of On-going S & T Projects upto 31st March, 2013
Final project completion report submitted.
Status
Annexure - II
Carbon sequestration in
re-vegetated coal mine
wastelands (EE/ 40)
CIMFR
Development of tele
robotics and remote
operation technology forunderground coal mines
MT(EoI)/162
Implementing Agency :
CMERI,
Durgapur,
CIMFR, Dhanbad &
CMPDIL, Ranchi
Application of high
strength steel roof-bolts
in underground coal
mines(MT/156)
RDCIS,
DGMS
&
CMPDIL
Name of the Project
Sl.
No.
440.12
For CMERI 251.57
For CIMFR 125.55
For CMPDIL 63.00
64.76
103.22
For RDCIS 89.02
For CMPDIL 14.20
Financial
Outley
( in Lakhs)
Jan. 2012
Dec. 2011
170
CMERI-95.0
CIMFR - 75.0
30.00
70.00
Progressive
Scheduled /
Disbursement
Revised
( Lakh)
date of
completion
Sep. 2012 Aug. 2015
Feb. 2009
Jan. 2010
Date of
Start
Detailed system analysis for finalization of system

and design of 3D CAD models development is in
progress. Procurement of equipment is under
progress.
Draft project completion report submitted.
Present Status
49
Annexure - III
3.14
Sl.
No.
Project Monitoring and Status of Implementation of Ongoing Projects :

Name of
Project
Capital
( ` Cr.)
Date of
Approval
0.12 (Inc.)
8.13
Jun 02
Project has completed. Completion report

is under examination.
1.5
19.26
Nov 11
LOI issued on 30.01.13 for OB removal.

Work started.
June 08
Production achieved during 12-13 is

0.5368 Mt. Land acquisition is under
progress. For construction of CHP, LoI has
been issued on 27.02.2013.
Capacity
(MTY)
Status of Implementation
Shankarpur UG
Kottadih OC Aug.
Sarpi Aug UG.
Bankola R-VI Seam

UG
0.24
19.14
Mar 03
Project involves deepening & widening of

shafts. Out of 208m of drift drivage, 102m
completed. Project has been advised to
prepare estimate for deepening and
widening of shaft as per conventional
method.
Kumardihi B UG
0.42
79.23
June 06
ECL Board approved the proposal for

withdrawal of PR. Project Report for
introduction of Continuous Miner for
Capacity of 0.51 MTY with a capital
investment of ` 171.39 crores has been
approved by ECL Board in its meeting held
on 28-01-2013. Financial vetting of the PR
for Continuous Miner is under process.
Khandra NKJ UG
0.285
18.85
July 03
Deepening & widening of shafts have

been completed.
Parasea Dobrana UG
0.16 (Inc.)
11.89
Feb 04

shafts. Staple pit completed. Drift drivage
completed 160 m out of 253 m. Action
has been initiated for preparing the
drawing & estimate for shaft sinking/
deepening and widening of shaft.
Siduli UG
0.30
54.99
Dec 06
Project involves two new shafts sinking

for entry to the lower seams. But top
seams are yet to be liquidated. A proposal
had been received from Area for
exploitation of R-VI seam with the drivage
of 2 Nos. of incline in place of Shafts.
CMPDIL has taken up the job for Recast
of PR.
0.30+0.46 147.86(120.35
Additional)
= 0.76
50
Sl.
No.
Name of
Project
Capital
( ` Cr.)
Date of
Approval
NabakajoraMadhabpur Block UG
0.30
56.14
Dec 06
Proposal for exploitation of developed pillar

of upper seam by opencast method in this
block along with the drivage of incline for
entry to bottom seams for UG method of
exploitation in place of this NabakajoraMadhabpur Block on-going Project is
being examined.
10
Chitra East OC
2.50
112.69
Aug' 07
Section 11 has been completed for

acquisition/ possession of 323Ha. (J.B.
land) under LA act. Distribution of
compensation has been completed. But
possession of aforesaid land is yet to be
received from State Govt. Stage-II
clearance for diversion of 124.28Ha Forest
land is pending.
11
Rajmahal Expansion
OC
17 MTY
153.82
Sept '09
Tender for Partial outsourcing (17.00

MTY) has been finalized. W.O. issued on
14.04.2012. Contract agreement signed
on 13.10.2012.
12
Jhanjra R-VI Seam

PSLW
1.70
287.17
Nov' 06
Contract was signed with M/s CODCO,

China for PSLW Package on 8-01-2013.
13
Mohanpur Expansion
OC
1.0
14.23
June' 08
Land acquisition is under progress.
14
Belbaid (Dhasal ) UG
0.36 (Incre)
69.11
Feb' 09

shafts. Staple pit completed. Action has
been initiated for preparing the drawing &
estimate for shaft sinking/deepening and
widening of shaft.
15.
2nd set Continuous

Miner at Jhanjra UG
Mine
0.51
147.25
May - 11
Agreement was signed with M/s Bucyrus

DBT GmbH on 14.06.2012 for supply of
CM Package.
Capacity
(MTY)
51
Sl.
No.
Name of
Project
Capital
( ` Cr.)
Date of
Approval
0.54
149.06
Feb' 09
Action has been initiated for preparing the

drawing & estimate for shaft sinking/
deepening and widening of shaft.
Capacity
(MTY)
16.
Narainkuri UG
17.
Khottadih Continuous
Miner UG
0.6
127.17
May '11
Model NIT document for continuous

cutting equipment received from CIL in
March13. For new incline drivage tender
floated on 21.11.12. Price bid opened on
25.03.2013.
18.
Sonepur
Bazari
combined OC
8.00
1055.05
Aug.' 12
Development activities like Diversion of

Tumni nala, Rehabilitation of villages is
under progress. DPR for construction of
Railway Siding has been approved by
Eastern Railway. Revised and Final DPR
(May 2013) submitted by RITES on
25.03.2013.
52
Annexure-IV
MANAGEMENTS DISCUSSION AND ANALYSIS REPORT - 2012-13
Overview of the Indian economy:
With an estimated GDP, on a purchasing power parity basis, India is the 4th largest economy in the world after the
European Union, the United States and China (Source: CIA World Fact book-2012). India is also one of the fastest
growing economies in the world. Coal is the one of the prime fuels in India and has met approximately 52% of
Indias total energy needs and will continue to be crucial to Indias future energy needs.
Global coal industry and reserves:
The world coal reserves as per the rate of production in 2011 are estimated to suffice for the next 112 years
(Source: BP Statistics). Although coal deposits are widely distributed across the world, 80% of the worlds recoverable
reserves are located in five regions: the United States (27.6%), Russia (18.2%), China (13.3%), Australia, New
Zealand (9.0%), India (7.0%), and Germany (4.7%) (Source: BP statistical Review of World Energy June 2012)
Global coal production and consumption:
China is the largest producer of coal followed by the United States, India and Australia. Asia is the biggest market
for coal and currently accounts for 67.1% of global coal consumption, owing to China and India who are the
primary consumers.
Indian coal industry and reserves:
As of April 2012, the geological resource of Indian coal was 293.497 Billion Tons (Source: GSI, GOI). In India coal
is the primary fuel used to fire thermal power plants due to its availability and affordability. Coal is the dominant
source of energy and met 52% (approximately), while oil and natural gas met approximately 41.6% of the total
energy requirement of India in fiscal 2010 (Source: BP Statistics)
Coal production and consumption in India:
Accordingly to BP statistical Review of World Energy June 2012, India is the Third largest producer of coal in the
world. Indias coal production was 539.94 million tons (Source: Provisional Coal Statistics, 2011-12) in the year
2011-12, thus made a growth 1.3% in comparison to last year. In addition, India is the third largest consumer of
coal in the world. Bulk portion of coal produced in India is consumed by the power sector for generation of
electricity in the country.
OUTLOOK:
Overview of Eastern Coalfields Limited:
Eastern Coalfields Limited (ECL), a subsidiary of Coal India Limited was incorporated on 1st November, 1975 by
taking over 414 mines vested with Eastern Division of Coal Mines Authority Limited (CMAL) and the company
commenced its commercial operation from that date. It operates in the states of West Bengal and Jharkhand. It
is the 6th largest producer of coal in India at present.
ECL is the best quality non coking coal producing company in India having total reserve of 48.5 Billion Tons of coal
as on 01.04.2012. As on date there are 111 working mines in Eastern Coalfields Ltd., 87 being underground mines,
17 opencast mines and 7 mixed mine.
53
Strength and weakness:

Competitive Strength:
a.
Reserve of 24 Billion Tons of Coal as on 01.04.2012 (Source GSI) of premium grade non coking coal at
Raniganj Coalfields, besides there is approximately 6 Billion non-coking coal in Birbhum Coalfield. Average
ash content less than 20% in Raniganj Coalfield.
b.
Raniganj coal can be blended with high ash coal from other subsidiaries to satisfy MoEF stipulations.
c.
Reserve of approximately 18.5 Billion Tons of inferior grade Coal down to a depth of 600 metres as on
01.04.2012 (Source: GSI) in the state of Jharkhand where scope for comparatively easy extraction of coal
by open cast mining exists.
d.
Demand is more than the supply position.
e.
Workmen capable of working in difficult conditions.
Weakness:
a.
The coal mining in the Raniganj coalfield had started about 150 years back. Hence the company is loaded
with old legacy of small mines, old steam winders working at 50% of its capacity.
b.
Difficult geo-mining condition.
c.
Dense population impedes acquisition of land.
d.
Huge infrastructure built on coal bearing areas hinder open cast mining.
e.
Huge pumping and sand stowing cost.
f.
Socio-political conditions and work culture not conducive.
Opportunities and Threats:

Opportunities:
a.
Leverage on rise in prices of non-coking coal internationally.
b.
Realisation of better value for coal through e-marketing.
c.
Resource working small OC patches to curb illegal mining.
d.
Positive response from Central Trade Unions to issues involving production and productivity.
e.
Increasing co-operation from State Governments in solving the problems.
Threats:
a. Opposition to acquisition of land by villagers.
b. Opposition to closure of unviable mines.
c. Opposition to hiring of HEMM.
d. Land constraint in introduction of mass production technology.
e. Difficulty in better E-marketing of ECLs coal due to 25% cess charged by the Government of West
Bengal.
Business Strategies:
a. Continue to increase production, productivity and capitalize on the significant demand-supply gap for
coal in India.
54
b. Improve realizations through increased sales of higher quality coal, and e-auction coal.
c. Enhance profitability and maintain competiveness by improving operating efficiencies and control.
d. Continue to increase our reserve base.
e. Continue to focus on developing environmentally and socially sustainable operations.
Production:
Particulars
2012-13
27.052
6.849
33.901
10.94
76.448
26.77
OCP - Coal (MT)

Underground Coal (MT)
Total (MT)
Growth %
OBR- (MCUM)
Growth %
2011-12
23.725
6.833
30.558
-0.8
60.305
7.22
SEGMENT-WISE OR PRODUCT WISE PERFORMANCE:

(in Million Tonnes)
Particulars
2012-13
2011-12
Growth (%)
Despatch to Outsiders under FSA
27.300
75.36
21.689
70.35
25.87
E-auction
4.209
11.68
3.872
12.56
8.70
Despatch under MoU
4.010
11.20
Others
0.024
0.89
4.930
15.99
99.51
Own Consumption
0.301
0.87
0.341
1.11
11.73
35.844
100.00
30.832
100.00
16.25
Total Off-take
Our Customers:
Majority of coal produced in ECL is supplied to Thermal Power Plants. In addition coal is also supplied to various
industries that include Steel, Cement, Sponge Iron, Defence & others.
Transportation, Infrastructure and Logistics:
Following the extraction of coal from a mine/working face, coal is transported to despatch points through tipping
trucks and conveyor belts. Coal is delivered to the customers from the dispatch points through rail, road or
dedicated rail MGR system.
All consignments dispatched are weighed either at ECL owned weighbridges available at our dispatch points or to
the nearest weighbridges owned by Railways. Our sales are either free on rail or free on road from the designated
dispatch points Customers may choose the mode of transport between rail and road. The cost of transportation of
coal from the mines to designated dispatch points is borne by ECL provided such dispatch points are located
within three kilometers from the mines. If the dispatch point from our mines is more than three kilometers but
within 20 kilometers, the customers bear such transportation cost at specified rates as notified by CIL from time
to time. In circumstances where the distance from the dispatch point is more than 20 kilometers from our mines,
the customer bears the actual cost of transportation.
55
The following table shows information relating to various modes of transportation utilized for raw coal dispatch from
our mines:
(in Million Tonnes)
Mode of Despatch
2012-13
2011-12
24.158
19.79
Road
2.117
2.19
Merry-Go-Round(MGR)
9.267
8.51
Total
35.542
30.49
Rail
Pricing of Coal:
The pricing of Non-Coking Coal is presently based on its Gross Calorific Value and that of Coking Coal & Washery
Grade Coal is set on the basis of ash level content. Pricing of coal for Semi Coking Coal is set on the basis of ash
& moisture content level. The coal price is revised considering the escalation in input cost, inflation and landed
cost of imported coal. The final customer price includes basic price and other charges (Cess, Royalties, Excise,
Sales Tax and others). Around 90% of Coal is sold under the long-term fuel supply agreements (FSAs) executed
between ECL and the linked customers. In addition, coal is also sold under E-auction scheme. As advised by Coal
India Limited, we have adopted GCV based coal pricing mechanism with effect from 1st January, 2012. This
change of system from UHV to GCV based coal pricing mechanism has adversely affected the pricing of coal
produced in Rajmahal to the extent of ` 230/- per tonne of coal dispatched. However, the issue has been taken
up with Coal India Limited for revision of price.
Distribution and Marketing Policy:
NCDP has been issued on October 18, 2007 with an objective to meet the demand of coal from consumers of
different sectors of the economy, both on short term and long term basis, in an assured, sustained, transparent
and efficient manner with built- in commercial discipline.
E-Auction Scheme:
The E-Auction scheme of coal has been introduced to provide access to coal for customers who are not able to
source their coal requirement through the available institutional mechanisms under the NCDP. The quantity of coal
to be offered under E-Auction is reviewed from time to time by the MoC. Currently, approximately 10% of aggregate
raw coal production may be offered under E-Auction scheme. The E-auction scheme provides an avenue for
additional coal procurement by customers as well as determination of market price of a particular source/quality
of coal and additional revenue thereof.
Fuel Supply Agreements:
In accordance with the terms of the NCDP, Coal Company has entered into legally enforceable FSAs directly with
the customers or with State Nominated Agencies that in turn enters into appropriate distribution arrangements
with end customers. Our FSAs can be broadly categorized into:
1.
FSAs with customers in the power utilities sector, including State power utilities, private power utilities
(PPUs) and independent power producers (IPPs);
2.
FSAs with customers in non-power industries (including captive power plants (CPPs) and
3.
FSAs with State Nominated Agencies.
56
Research and Development

For research and development needs ECL engaged CMPDIL, which is one of the subsidiary of CIL. CMPDIL acts
as a nodal agency for coordination of the research activities, disbursement of funds as well as monitoring the
progress of our research and development activities.
Memorandum of Understanding between Eastern Coalfields Limited and Coal India Limited and Ministry
of Coal:
For every financial year ECL enters into a MoU with CIL and MoC to set various parameters for physical and
financial performances. The achievements are graded on a scale of 1 to 5; excellent being the grade 1 and poor as
5. For the year 2011-12, ECL has obtained Very Good grading.
Risks and Concerns:
The major risk and concerns of ECL are outlined below:
a.
Coal mining by its inherent nature is subject to multiple operational risks like weather, natural disasters
and dangerous mining conditions.
b. ECL being a public sector company is further constrained by stringent labour regulations. The company
also has an ageing workforce.
c. ECL is facing difficulties in land acquisition, particularly in respect of land owned by private parties and
forest land, resulting in delays in some of the projects.
d. Success of expansion projects depends on various factors including obtaining government statutory
clearances, licenses and approvals to proceed with its expansion program.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
ECL has a sound system of Internal Control for efficient running of its business as well as for complying with the
different rules & regulations. The internal control parameters are in-built in the predetermined Actions Plan, Budget,
Delegation of power in such a way that deviations, if any, are promptly reported and reviewed at the appropriate
level.
The Internal control system covers not only all functional areas of the Company, but also all the stages involved
starting with initiation of the proposal and ending with payment/MIS coverage. Apart from different administrative
circulars, there are several manuals like Purchase, Civil, Contract Management etc. which cover the detailed
procedures required to be adhered to in day to day functioning. The manuals/circulars also provide the requisite
checks and balances at the different stages to eliminate any possible lapse in the system. At times, Committees
are also formed at different levels to review the functioning of the existing system to strengthen the internal control
system. In addition, Internal Control Systems in existence are being taken care of by the different Audits/Apex
agencies summarized hereunder:
Internal Audit of systems/transactions by external firms of Chartered/Cost Accountants:
For conducting Internal Audit, external Audit Firms are engaged with specific scope of work on annual basis, for
carrying out audit throughout the year, by the company as per CIL guideline. The firms of auditors submit monthly
report on the specified scope of their audit as well as exceptional reports. Their findings, along-with managements
comments, are placed for discussion in the Audit Committee meetings at both ECL & CIL.
Propriety Audit by C&AG Office:
The C&AG Officials conduct propriety Audit in different Areas/Establishments in which proper justification in
support of expenditures incurred and also the internal control aspects in vogue are reviewed. The deficiencies, if
any, highlighted in the Inspection Report of C&AG Office and Management is required to submit its comment
along with corrective actions taken.
57
Special Audit by the Departmental officials

As and when required, the Internal Audit Department of the company undertakes special audit assignments, at the
direction of Competent Authority, which cover specified areas. The Internal Control Systems in force are evaluated
and the detailed report is submitted to the competent authority with suggestions, if any, for improvement.
Physical verification of stores:
Physical verification of stores is conducted by Store Verification Inspectors of the department. The shortage/
surplus noticed during such verification is immediately brought to the notice of the concerned store authority.
Checking and Certification of Stowing & Protective works:
Checking and certification is conducted on quarterly basis by Internal Audit Department and the final claim is
submitted to the Office of Coal Controller, Kolkata.
Compliance with the directive of ECL/CIL Audit Committee:
The Audit Committees of ECL/CIL review the adequacy of the Internal Control System based on reports submitted
by the Internal Auditors and suggest corrective measures for implementation wherever necessary. Audit Committee
of CIL has also identified the areas for control and improvement of performances.
It is felt that the Internal Control systems are adequate having regard to the size of the Company and the nature of
transactions carried out by it vis--vis different types of audits and control measure, in force.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
Results of Operations:
( ` in crores)
Particulars
2012 13
2011 12
Growth (%)
Gross Sales
12162.59
10695.11
13.72
Less : Levies
2970.68
2433.02
22.10
Net Sales
9191.91
8262.09
11.25
Other Income
548.56
298.62
83.70
Total Income
9740.47
8560.71
13.78
Income from Sale of Coal:

Sales is presented as gross sales net of (i) various statutory levies comprising royalty, cess on coal, central
excise duty and stowing excise duty : and (ii) sales tax. The Income from sale of coal is mainly dependent on the
pricing and production of coal and distribution thereof.
Expenditure:
Break up of Major Heads:
( ` in crores)
Particulars
2012-13
2011-12
Growth
Absolute
% age
(Accretion)/Decretion in stock
168.92
44.32
213.24
481.14
Stores & Spares
649.95
574.22
75.73
13.19
Salary & Wages
5300.14
5217.06
83.08
1.59
463.82
382.42
81.40
21.29
Power & Fuel
58
Particulars
2012-13
2011-12
Growth
Absolute
% age
Social Overhead
117.12
79.33
37.79
47.64
Contractual Exp/Repairs
732.59
543.18
189.41
34.87
Other Expenditure
261.29
208.45
52.84
25.35
8.48
0.16
8.32
5200.00
OBR Adjustment
324.59
248.19
() 572.78
230.78
Depreciation/Impairment
203.20
200.90
2.30
1.14
Provision
260.92
188.99
71.93
38.06
Profit Before tax
1897.18
962.13
935.05
97.18
Profit after tax
1655.54
962.13
693.41
72.07
Interest & Finance Charges
Cash Flows:
( ` in crores)
Particulars
31.03.2013
31.03.2012
Opening Cash & Cash equivalents
603.15
337.95
Net cash from operating activities
154.00
543.27
Net cash from investing activities
11.51
253.85
1.51
24.22
Change in Cash and cash equivalents
164.00
265.20
Closing cash & cash equivalents
439.15
603.15
Net cash used in financing activities
Man Power
59
HUMAN RESOURCE DEVELOPMENT:

Manpower:
Manpower as on
Category
Increase (+)/
Decrease (-)
31.3.2013
31.3.2012
Executive
2587
2446
Supervisor
5870
6175
305
Ministerial/ Clerical
3954
4416
462
Highly Skilled/ Skilled
23944
24076
132
Semi-Skilled/ Unskilled
37092
39817
2725
829
1077
248
74276
78009
3733
Badli
Trainee
Total
141
Reasons for Variation in Manpower :

Particulars
Executive
Non-Executive
Total
INCREASE
Fresh Appointment
219
220
Appointment against medically unfit cases
Appointment against death cases.
511
511
Reinstatement/Re-joined.
80
80
Transfer in from other companies.
248
251
Appointment against Land Losers
146
146
467
745
1212
160
3744
3904
12
12
Death
10
704
714
Resignation
11
17
39
40
145
50
195
62
63
Total Decrease (B)
328
4617
4945
VARIATION (A B)
139
3872
3733
Total Increase (A)

DECREASE
Retirement
Medical Unfit
Dismissal/Termination
Transfer to other companies
VR under GHS / EVRS
60
Industrial Relations :
The participative style of management facilitates in settling the disputes/grievances amicably thorough discussion.
As a result the industrial relations in the company during 2012-13 remained cordial. Except one strike called by
the Central Trade Unions at All India Level, no strike on issues of ECL level took place during the year. The
statistics relating to Industrial Relation and Law & Order is given below:
Industrial Relations :
Sl No
Subject
2012-13
2011-12
No. of strikes
Mandays lost (in lakh)
0.28
0.69
Production lost (in lakh tonnes)
0.17
0.89
Law and Order :

Subject
Law and order (Disturbance)
Production Lost (in Lakh Tonne)
2012-13
2011-12
119
159
0.097
0.15
Workers Participation in Management :

The workers participation in management in ECL is fully operative in all wings of our company. The Joint Consultative
Committees are also operating at Corporate as well as at Project/Unit level. The meeting of JCC are held regularly
where important issues are discussed thread bear viz. production, productivity, safety, cost, welfare etc besides
other committee/boards viz safety committee, welfare board, medical advisory board, house allotment committee,
canteen committee etc are also functioning in our company. The Trade Unions very actively participated in such
committees.
Meetings
2012-13
2011-12
No. of JCC Meeting held at HQ level
03
03
No. of structured Meeting held at HQ level
21
21
2012-13
2011-12
NCWA
738
1079
Land Losers Scheme
126
41
Employment provided under NCWA & LLS :

Employment provided under
Reservation for Schedule Caste (SC) / Scheduled Tribe (ST) and Other Backward Class (OBC) in
recruitment and promotion :
The Presidential Directives in the matter of recruitment of Scheduled Caste (SC), Scheduled Tribe (ST) and Other
Backward Class (OBC) have been implemented in ECL.
61
A total of 332 candidates belonging to SC community and 153 candidates belonging to ST community were
promoted during 2012-13. The representation of SC and ST candidates in total manpower is as under :
As on
Total Manpower
SC Candidates
Number
%
ST Candidates
Number
%
31.03.2013
74276
15319
20.62
7893
10.62
31.03.2012
78009
17614
22.57
8379
10.74
Mobile Medical Dispensary at one of the Areas of Eastern Coalfields Limited
Other Activities :
Sl.
No.
1.
2.
Measurement
Unit
Target for
the Year
Achievement
Manpower Rationalization through

- Voluntary retirements
- Redeployment
Number
%
25
100%
64
78 %
Attrition as % of total employees
0.01
0.021 %
62
Sl.
No.
Measurement
Unit
Target for
the Year
Achievement
3.
Formulation / Implementation of systems for
yes
management of Talent such as - Job rotation
No. of Executives
0.005
0.008
Yes/No
Yes
Yes
Yes/No
Yes
Yes
system, reward system, sponsoring sr.

executives for Advanced Management
Programme, growth opportunities etc.
4.
Number of suggestions generated per

employee per year
5.
Linkage of Developmental Plan of Executives

with Performance Management System
6.
Implementation of PRP linked to PMS
7.
Nos. of Nominations/entries submitted for
Nos. of nominations/
National Awards ( PM Shram Awards,
entries submitted for
Vishwakarma Rashtriya Puraskar)
national awards
8.
Effectiveness of Grievance Redressal system
Achieved
% settlement
80%
84%
Pension, medicare, Yoga classes to reduce
Number of programs/
stress where the job is stressful, setting up
date of implemen-
of wellness centre such as Gym etc.
tation of scheme
- % of grievances settled vis-a-vis received

during the year
9.
10.
Employee satisfaction survey - ESI measure
Achieved
50
62.7 %, Achieved
Yes/ No
Yes
Yes
Number of structured meetings with
Number of meetings
20
24
employees representatives
at corporate level
Participation in survey conducted by external
Participation
agencies (Employer of choice, Best
Survey by External
Nomination filed in
employer, Best Place to Work etc.)
Agency for exce-
October-2012
in %
11.
Formulation & Implementation of social

security scheme
12.
13.
llence awards
63
in
Feb13
Achieved,
Sl.
No.
Measurement
Unit
Target for
the Year
Automation
of
employee information
system
Feb13
Achieved,
February-13
Achievement
14.
Benchmarking projects undertaken in area

of HR
15.
Reservation for SC,ST,OBC in appointment
Yes
Yes
16.
Posting of Deputationist
Yes
Yes
17.
Submission of Report on compliance of DPE

Guidelines
30th
June12
Achieved. Report
sent on
16.08.2012
18.
Date of submission to DPE of completed

data-sheet for PE Survey
15.09.12
Achieved.Report
sent on
14.09.2012
Implementation of 2007 Pay Revision :
Sl.
No.
Whether Complied
Relevant Para / O.M.
Yes
1.
Affordability clause for adoption of 2007 pays revision.
Para 3 of O.M.
dated 26.11.2008
YES
2.
No intermediary pay scale and 3% increment rate

with no predetermined stages
Para 2(vi) & Para 5 of O.M.

dated 26.11.2008
YES
3.
Fitment to be given only once, no revision during

currency of pay revision
Para 1(i) of O.M.

dated 26.11.2008
YES
4.
Perks and Allowances limited to 50% of Basic pay
Para 10 of O.M.
dated 26.11.2008
YES
5.
Only four specified allowances will be outside the

purview of ceiling of 50% OF BASIC PAY. No other
allowances/perks to be kept outside 50% limit
Para 10 of O.M. dated

26.11.2008
YES
6.
PMS in place with Bell Curve Approach(not more

than 15% graded as Outstanding and 10% to be
graded as below par(No PRP for Below Par)
Annexure-III(iii) of O.M.
dated 26.11.2008
Note-1
7.
Constitution of Remuneration Committee headed by

Independent Director(for PRP purpose)
Annex-III(iv) of O.M. dated

26.11.2008
YES
64
No
Sl.
No.
Whether Complied
Relevant Para / O.M.
Yes
8.
Companys car can be allowed to Executive Director/

GM only if they head the Projects.
Para 14 of O.M. dated

26.11.2008
Note-2
9.
Allowances are allowed w.e.f. the date of issue of

Presidential Directive or w.e.f. 26.11.2008 (if the
Presidential Directive is issued by 1.5.2009)
Para 17 & Para 2(v) of

O.M. dated 26.11.2008 &
02.04.2009
YES
10.
No conflict between Officers pay revision and wage

revision of workmen
Para(viii) of O.M. dated

9.11.2006
Note-3
No
Notes:
Note-1-PMS in place of Bell Curve Approach (not more than 15% graded as Outstanding and 10% to be
graded as below par (no PRP for below par))
Coal India has implemented a robust Performance Management System (PMS) which, inter-alia has provision for
target setting, mid-year review and year-end review. The proforma for executives in E-8 and E-9 grade has been
adopted on the basis as prescribed by DPE. For Executives in E-7 and below grade Coal India has its own
proforma.
Coal India has a committee consisting of Directors and Functional Heads to moderate the final ratings of the
accepted Executives Evaluation Reports (EERs). Going forward, the Company is implementing new Balance
Score Card based PMS which will take care of the requirement of the Bell Curve as per the directives of the DPE.
Here, it would be appropriate to mention that coal mining activity is an extensive team based activity, where not
only executives but also non-executives have to give their best efforts to achieve the targeted goals.
As such, it would be difficult to adhere to lower categorization of 10% of the executives being rated below par.
Additionally, the ratio of executives and non-executives in Coal India is 1:20, which means that each executive has
a large span of control and compulsory rating of 10% of Executive as below par will adversely impact the morale
of the executives, which in turn may directly impact the productivity and production.
Note-2 -Companys Car can be allowed to Executive Director/GM only if they head the projects:
ECL has a large number of underground and open cast mines scattered in 14 Areas. Considering the importance
of coal in the present energy scenario of the country, it is imperative that production in coal mines go uninterrupted,
for which, the executives of the Coal India have responsibility on 24 x 7 basis. Further, considering the hazardous
nature of operations, the executives are also required to be in readiness to ensure safe upkeep and safe operations
in all the mines. Needless to mention that the executives in the subsidiaries are required to be well equipped to
meet any exigencies, for which the conveyance is primary requirement.
Coal India is a holding company, comprising of 8 Subsidiaries which are ScheduleB companies on Standalone
basis and these companies do not have executives in the level of Executive Directors. Consequently, Officers in
the level of General Manager are entrusted with the responsibilities of managing the company affairs as Departmental
Heads ensuring efficient and effective discharge of their functions and they have to be provided with company
vehicles. Similarly, at the Coal India HQs. Level, Head of the Departments who are designated as such and have
the responsibilities of carrying out various assignments are also provided with company vehicles.
65
Note-3- No conflict between Officers Pay Revision and Wage Revision of Workmen:
All along, the wage/salary along with fringe benefits, welfare and service condition etc. of the non-executives was
decided by the joint Bipartite Committee for the Coal Industry(JBCCI) consisting of the representatives of management
including management of SCCL and representatives of five CTUs operating in Coal Industry. This Committee is
constituted as per the direction of the Ministry received from time to time. The aforesaid Committee make an
amicable agreement in the form of National Coal Wage Agreement (NCWA) through the process of collective
bargaining.
Prior to National Coal Wage Agreement-IX (NCWA-IX), NCWA-VIII was signed on 24th January, 2009. The periodicity
of NCWA-VIII was from 1.7.2006 to 30.6.2011 i.e. for five years. The decision of periodicity of five years was
considered after the issuance of O.M. No. 2(7)/05-DPC (WC)-) Part dated 1.5.2008 of DPE. The agreement was
signed with Minimum Guaranteed Benefit (MGB) of 24% of total emolument as on 30.6.2006, and D.A (24%)
became Nil, resulting the minimum wages arrived at ` 8,360/- and minimum of highest grade of the non-executive
arrived at ` 15199.08.
The National Coal Wage Agreement-IX(NCWA-IX) was signed on 31st January, 2012 by the JBCCI-IX with MGB of
25% of total emolument as on 30.6.2011 and DA(56.3%) became Nil as on that date, for a period of five years w.e.f.
1.7.2011 to 30.6.2016. The minimum wages arrived at ` 15712.62 and minimum of highest grade of the nonexecutive arrived at ` 28,566.68.
The salary of the Board level and below Board level executives was decided as per the O.M. dated 26.11.2008
received from DPE. The effective date of the pay revision was from 1.1.2007. The periodicity of the pay revision of
the executives was not mentioned in the aforesaid O.M. The basic pay of lowest executive i.e. E-1 was ` 16,400/
- and E-9 was ` 62,000/From the above, it may not be out of place to mention that the revision of wage/salary of non-executives has been
done from 1.7.2011 to 30.6.2016, whereas the pay revision of executives has been done only in 1.1.2007 and still
continuing which has resulted the wage/salary of lowest rung of non-executives, i.e. Cat-I and Cat-II are getting
less than lowest paid executive, i.e. E-1 and minimum of the rest of the grade/category of non-executive employees
are getting above the E-1 grade executive( ` 16,400/-) but below the E-4 grade executive( ` 29,100/-)
Productivity :
Output per Manshift (OMS) during 2012-13 improved to 1.944 tonnes from 1.678 tonnes of previous year.
Trade Unions:
The majority of our non-executive employees are members of several unions including INTUC, AITUC, HMS, BMS,
UTUC, CITU etc. The executives are members of CMOAI. The wage revision and other conditions of service of nonexecutives employees are governed by the National Coal Wage Agreement (NCWA) formulated by JBCCI. The
JBCCI has signed the MoU for NCWA-IX on 31.12.2011 and consequent from that the NCWA-IX has came into
force with effect from 01.07.2011 for a period of 5 years benefiting all categories of employees excluding executives.
Salaries, perks and allowances etc. of our executive cadre employees are determined by Government of India. The
current compensation package for executives was revised from 1st January, 2007.
66
Training:
We aim to provide continuous training for our employees. Indian Institute of Coal Management (IICM) which was
formed in 1994 by Coal India Limited (CIL) offers training programmes on Advanced Management, Leadership
Development, General Management, Advanced Maintenance practices, Management Development, Training and
Coaching, Career Development and Communication skills. In addition, we have arranged external training including
abroad for a significant number of employees. Apart from IICM, at ECL, we have well equipped HRD centre, VTCs
which provide various training to our staff and executives. HRD also arrange for industrial/ vocational training on
need basis for students of various Institutes.
In 2012-13, company had imparted training to 3790 persons compared to 4866 persons in 2011-12. The details are
given below:
1. Action Plan :
No. of participants
No. of Course
Year
Target
Target
Actual
Exe.
Actual
Supv.
Worker
Total
Exe.
Supv.
Worker
Total
2012-13
124
136
280
500
1025
1805
388
478
1350
2216
2011-12
113
116
260
480
730
1470
477
597
1021
2095
2.
Details of various training provided during the year 2012-13 as compared to 2011-12 :
Nature of Training
2012-13
Exe.
2011-12
Supv.
Worker
Total
Exe.
Supv.
Worker
Total
1.
General/In-Company Training :
1.i)
MOU
388
478
1350
2216
477
597
1021
2095
1.ii)
Non-MOU
383
40
118
541
625
640
452
1717
2.
Training External (Within India) :
2.i)
At IICM :
373
373
402
402
15
18
30
30
2.i.a) 1 Week or more

2.i.b) Seminar / Short Course
2.ii) Out Company Training (other than IICM)

2.ii.a) Short duration
27
27
12
16
2.ii.b) Long duration
160
160
160
160
2.ii.c) 1 Week or more
87
27
37
151
92
19
116
2.ii.d) 6 Weeks intensive
course in survey (at ISM)

67
Nature of Training
3.
2012-13
Exe.
Supv.
Worker
Total
Exe.
Supv.
Worker
Total
0
170
98
23
0
7
98
200
0
246
67
4
0
0
67
250
1449
669
1672
3790
1897
1329
1640
4866
Trainees :
3.a) MT's
3.b) PDPT
4.
Seminar / Workshop
excluding in-company
5.
External (abroad)
TOTAL
3.
2011-12
Other Training Activities :
Sl.
No.
Measurement
Unit
Target for
the Year
Achievement
1.
Certified training in project management
No. of Executives
Achieved. 7
2.
Certified training in Contract management
No. of Executives
Achieved. 5
3.
% actualization of Training Plan & Training

Days per employee per year
15.30
25.3
4.
Developing critical mass of leaders through

a system of career planning & development
5.10
6.11
5.
Training budget as % of employee cost
% of employees
cost
0.184
0.06
6.
% fulfilment of training plan for Multi-skilling

/ Skill Up-gradation of non-executives
(%)
2.04
2.55
7.
Training interventions in new/advanced

technology - % fulfilment of training plan in
new technology
(%)
1.02
7.22
8.
Presence of Mentorship Development

Programme - Nos. of Mentors & Mentees
Yes (%)
80
160, Achieved
9.
% of Quality Circle projects completed

against total Quality circle projects
undertaken in a year
5 quality circles to
be formed
100%
100% Achieved, 6
Quality Circle.
68
ENVIRONMENTAL PROTECTION AND CONSERVATION:

The impact on the environment due to coal mining activity is being monitored constantly by the company and
adequate measures for control of Air, Water & Noise Pollution, Land degradation, Deforestation etc. are being
undertaken in accordance with the provisions of all statutory norms, Acts, Rules on a regular basis by way of the
following Environment Protection Activities.
Afforestation activity:
Afforestation/plantation is a regular activity taken up every year in ECL. This year, plantation of fruit bearing and
medicinal species have been taken up as a sustainable development activity opening up approach to commercial
bio-diversity and income generation of local people. Against MoU Target of 10,500, the total number of trees/
sapling planted during the year 2012-13 is 50,950 Nos. in 25 Ha area.
Environment Management Plan Monitoring:
Monitoring of EMP and EC conditions, as approved by MoEF, is being done on a regular basis.
Statutory Compliance of State Pollution control Boards:
a.
Consent for discharge of water and emission of air is being taken for each coal mine on regular basis from
the State Pollution control Boards of West Bengal & Jharkhand while maintaining the statutory provisions
and Rules & Water Pollution Act 1974, Air Pollution Act 1981 and the Environment Protection Act 1986.
b.
Required Water Cess (including arrears) based on consumption of water & demand note from SPCB is
being deposited by all the mines, with the respective State Pollution control Boards, as per the Water
Cess Act 1977.
c.
Annual Environmental Statement in Form V (Rule 14 of Environment Protection Act 1986) is being submitted
to respective State Pollution control Boards.
Observance of World Environment Day:

World Environment Day was observed on 5th June 2012 in ECL HQs, Sanctoria and also in areas of ECL by
hoisting Environment Flag & taking oath along with tree plantation.
Environmental Clearance of Cluster mines and new / expansion of Projects :
Cluster
No.
No. of
Mines
Normative
Capacity
Peak Capacity
in MTPA
Lease
Area
11
2.70
3.30
3692
EMP document submitted to Jharkhand

State Pollution Control Board on 21-012013 for conducting Public Hearing.
0.36
0.45
1081
EIA study conducted and draft EMP

prepared.
3.33
3.97
1628
Revision of TOR made on 23-07-2012 and

Data generation for EIA/EMP is being
conducted.
69
Status of Progress in 2012-13
Cluster
No.
No. of
Mines
Normative
Capacity
Peak Capacity
in MTPA
Lease
Area
6.35
7.71
3353
Mohanpur OCP was deleted from Cluster4 by MoEF letter dated 19-03-2013 for
separate consideration of Mohanpur OCP.
But revision of TOR is awaited.
0.485
0.63
2970
EIA study conducted and draft EMP

prepared.
1.453
2.25
4775

0.58
0.74
2313
Draft EMP prepared.
1.53
2.75
8281
Revision of TOR made on 20-07-2012 and

conducted.
15
6.25
8.00
7145.4
EMP document submitted to West

Bengal State Pollution Control Board,
modification made as per SPCB and
submitted again to SPCB on 05-02-13 for
conducting Public Hearing.
10
11
12
19
11
19
7.70
9.10
27.16
7.70
9.90
31.83
6349
4218
13167
Simlong
Expansion
OCP
2.00
2.30
327
Status of Progress in 2012-13

conducted.

Status of Air Pollution Control Facility :

Drilling, blasting & transport of coal are the main cause of air pollution. Design of the mining equipment is
such that it produces less dust and it is suppressed at the point of generation. Before starting the drilling
& cutting of coal, water spraying is done and blasting is done scientifically with optimum quantity of
explosive and in a designed pattern so as to generate less dust, provides good fragmentation, less ground
vibration and less fumes. Spraying is done before coal is transported out. The transfer points of coal
transport are fitted with static water sprinklers. All OCPs have adequate nos. of Mobile Water Sprinklers
through which haul roads are kept wet to suppress the dust. Fixed type of water sprinklers is used in CHP,
Siding and other transfer points to suppress the dust.
Status of monitoring facility of Air, Water and Noise pollution.
The existing Environmental Laboratory at CMPDIL, RI-I, Asansol, which monitors air, water and noise level
data of ECL, is being expanded to cater to additional monitoring requirements for matching the expansion
of production capacity in future. There will be modernization of the existing facility with installation of PM
2.5 latest designed air monitoring equipment to cater to the requirements of recent statutory requirements
70
of MoEF. This work is being carried out by CMPDIL with financial assurance from ECL to bear annual
expenditure of ` 451.24 lakhs towards monitoring of 111 mines of ECL (Previously only 33 mines). The
same is scheduled to be completed in 2013-14.
Water Management:
Mine water is routed through settling tanks in order to remove the suspended & other solids. This water is
reused for industrial and other purposes. This also acts as aquifer recharger and helps in maintaining
water table. Utilization of water mainly to the benefit of employees as well as local population is summarized
below:
a.
Drinking Water:
A number of old OCPs filled with water are being utilized for fulfilling the needs of its employees and large
population in the surrounding villages. The Public Health Engineering Department of the West Bengal
Government is utilizing the water from the abandoned OCPs at Itapara, West Baraboni to supply filtered
drinking water to a population of 15164. Public Health Engineering Deptt of Jharkhand is taking water from
two abandoned Opencast Quarries namely Rajpura & Hariajam of Mugma Area and supplying water to the
local population in the Nirsa Block.
b.
Minor irrigation activities :

Water from many abandoned OCPs/quarries is being used for irrigation by the villages around the ECLs
lease hold areas. The West Bengal Govt. is utilizing many such OCPs like Old Purusottampur OCP, Old
Real Jambad OCP, Old Alkusha Gopalpur OCP, Old Dabor OCP and Old Dalmia OCP to provide Minor
irrigation facilities to surrounding villages.
c.
Pisciculture:
During 2012-13, on the request of State Govt. of West Bengal, 5 abandoned OCP in Salanpur Area and
one in Sripur Area are allotted for the purpose of pisciculture with the participation of the West Bengal.
Land Reclamation:
a.
Back-filling with mining in opencast mines:
Excavation and back filling of de-coaled area in opencast mines is done simultaneously leaving minimum
active mining areas required for mining operation as an integral part of mining method.
b.
Filling with fly ash and its eco-restoration:

About 50 Hectares of land of few old abandoned pits of Kajora and Kunustoria has been filled in the fly-ash
from nearby Thermal Power Plants of DVC.
c.
Land reclamation study by Satellite Surveillances:

Land restoration/reclamation monitoring in Rajmahal (17.0 MTY)OCP & Sonepur Bazari (8.0 MTY) OCP
is being conducted through remote sensing satellite surveillance by CMPDIL since 2008 to assess the
area of backfilled, social forestry, active mining area, water bodies and distribution of wasteland, agriculture
land and forest in the leasehold area of the project. Study of the report of 2012-13 reveals that:
i.
Out of the total mine leasehold area of 39.44 sq. km., 12.19 sq. km. is mined out area and 70.55 % of the
mined out area is reclaimed and balance 29.45% is under active mining.
ii.
Analysis of satellite data indicates that 65.26% & 76.90 % area have been reclaimed in Rajmahal and
Sonepur Bazari OC respectively.
iii.
There is an increase of 0.38 Sq. KM of land reclamation compared to last year due to efforts of ECL
towards environmental protection.
71
ISO certification of Sonepur Bazari OCP & Rajmahal OCP:

ISO certification (ISO 9001: 2008, ISO 14001:2004, OHSAS 18001 and SA: 8000:2008) for Rajmahal
OCP and Sonepur Bazari OCP is underway through CMPDIL at an estimated cost of ` 65, 95,954/-. The
process started in 2012-13 and is progressing as per schedule.
Sustainable Development initiatives by ECL :
Sustainable Development is development that meets the need of the present without compromising the
ability of future generations to meet their own needs. Sustainable development involves an enduring and
balanced approach to economic activity, social progress and environmental responsibility.
A host of Sustainable Development activities were being undertaken by ECL which stands integrated into
the core activities as well as ancillary activities; i.e. in the form of environmental management, Research
& Development as well as CSR/Welfare activities. The activities taken up during the year are afforestation,
solar lamps, rain water harvesting and bio-diversity conservation project. SD Committee has been
constituted. In the 2nd Sub-Committee Meeting of SD held on 04.08.2012 SD plan has been approved.
The key decisions taken by the committee during the year are as follows:
1.
SD Project and SD Budget for the year 2012-13 were approved by the SD Committee.
2.
For the purpose of Bio-diversity Conservation project, decision was made for plantation of medicinal
plants, flowering plants, fruit bearing plants which are getting depleted and local species should be
selected that would suit to local climate with consultation of forest department.
3.
With regard to energy management it was decided to install solar lamps at various establishments of
ECL.
4.
The committee approved the Rain water harvesting project and advised to take steps for monitoring and
assess the improvement in water table.
Sl.
No.
1.
Total S.D. Expenditure
2.
Renewable/Clean/Alternative
uses(Solar Lights)
3.
Rain water Harvesting
4.
Conducting Workshop / Training on

awareness of Sustainable Development
5.
S.D. Reporting of 2011-12
6.
S.D. performance report
Measurement
Unit
Target for
the Year
Achievement
Amount (` )
51.67 Lakh
37.00 Lakh
No of projects
undertaken
Completed
No of schemes
Completed
Nos. of Programme
Completed
Completion Time
January,2013
Completed
Energy
Yes
72
Published in
website on
18.12.2012.
ANNEXURE-V
REPORT ON CORPORATE GOVERNANCE:
(1)
Philosophy:
Transparency, accountability and integrity are the main ingredients of good corporate governance.
Your company as a good corporate citizen believes in adhering to the highest standards of
corporate governance. ECL provides appropriate access to information to the citizens of India
under the provisions of Right to Information (RTI) Act, 2005.
(2)
Board of Directors:
(A)
Composition of the Board:
We are a Government company within the meaning of section 617 of the Companies Act, 1956
as Coal India Limited holds entire paid-up share capital. As per Articles of Association the power
to appoint Directors rests with the President of India.
In terms of Articles of Association of the company strength of our Board shall not be less than 3
Directors and not more than 15 Directors. These Directors may be either whole-time Functional
Directors or part-time Directors. The Directors are not required to hold any qualification share.
As on 31st March 2013, Board comprised 12 Directors, out of which 5 were whole-time Functional
Directors including Chairman-cum-Mg. Director.
Director, Ministry of Coal (MoC) was a Govt. nominee representing MoC (w.e.f 01.06.2012).
Director (Finance), CIL was nominated on the Board of Eastern Coalfields Limited (w.e.f
03.12.2012). BIFR has appointed a Special Director on the Board of Eastern Coalfields Limited
w.e.f 24.12.2010. The government also nominated 4 (four) part time non-official directors on the
Board of ECL.
The Directors bring to Board wide range of experience and skills.
DIRECTORS:
During the year 2012-13, Shri Rakesh Sinha was the Chairman-cum-Managing Director of the
Company. The other Directors on the Board of the Company during 2012-13 were Shri A.K.
Sinha (till 31.10.2012), Shri A. Chatterjee (w.e.f 03.12.2012) Shri D.N. Prasad (till 01.06.2012),
Shri V. Peddanna (w.e.f 01.06.2012), Shri K.K. Gautam, Shri Subrata Chaudhuri, Shri S.K. Mohanty,
Shri S.M. Lodha, Shri S.M. Sharma, Prof. (Dr.) M.K. Srivastava (till 07.06.2012), Shri S.K.
Srivastava, Shri S. Chakravarty, Shri A.K. Soni (till 31.01.2013), Shri C.K. Dey (w.e.f 01.02.2013)
and Shri Ramesh Chandra (w.e.f 04.03.2013).
Brief profile of Directors is enclosed as Annexure - A.
Service Contract:
Directors of the company are appointed by the President of India. The terms and conditions of
appointment of Whole-time Functional Directors are decided by the President of India in terms of
73
Articles of Association of the Company. BIFR has appointed a Special Director on the Board of
Eastern Coalfields Limited and the terms and conditions of his appointment are laid down by
BIFR. The terms and condition of non-official part time directors are laid down by the Ministry of
Coal.
(B)
Board Meetings:
Meetings of Board of Directors are normally held at Sanctoria/Kolkata for the convenience of
Directors. Company has well defined procedures for meetings of Board of Directors and
Committees thereof so as to facilitate decision making in an informed and efficient manner.
During the financial year ended 31st March 2013, 8 Board meetings were held as against the
minimum requirement of 4 meetings. The details of the Board meetings are as follows:
Board of Directors
Functional
Part-time
Official
Date
Part Time NonOfficial

Strength Present
Total
Strength
Present
Strength
Present
Strength Present
18.05.2012
12
24.07.2012
11
11
04.08.2012
11
11
19.09.2012
11
10
05.11.2012
10
28.01.2013
11
16.02.2013
11
24.03.2013
12
12
Details of number of Board meetings attended by each of the Directors are given below :
Sl.
No.
Board Meetings
Directors
Held during the

tenure
Attended
No. of other
Directorships
Functional Directors:
1
Shri Rakesh Sinha

NIL

NIL
Shri S. Chakravarty
NIL
74
Board Meetings
Sl.
No.
4
Directors
Held during the

tenure
Attended
No. of other
Directorships
Shri A.K. Soni, Director (Finance)

(up to 31.01.2013)
NIL
Shri C. K. Dey, Director (Finance)

(w.e.f 01.02.2013)
NIL
Shri Ramesh Chandra

Director (Technical) P&P
(w.e.f 04.03.2013)
NIL
Shri D.N. Prasad

Director (Technical), MoC
(Up to 01.06.2012)
Shri V. Peddanna
Director, MoC
(w.e.f 01.06.2012)
NIL
Shri A.K.Sinha
(up to 31.10.2012)
Shri A. Chatterjee
(w.e.f 03.12.2012)
NIL
Part-time Official Directors:

7
10
Special Director appointed by BIFR:

11
Shri K.K.Gautam
Part Time Non-Official Director:
12
13
Shri S.K. Mohanty
NIL
14
Prof. (Dr.) M.K. Srivastava

(till 07.06.2012)
NIL
15
Shri S.M. Lodha
16
Shri S.M. Sharma
NIL
75
(C)
Remuneration of the Director :
(i)
Functional Directors :
Remuneration for the year 2012-13
(Amount in ` )
Name
Designation
Shri Rakesh Sinha
All elements of remuneration

package (i.e. salary, pension,
P.F., gratuity etc.)
benefits
Total
3102276
36990
3139266
Shri S.K. Srivastava Director (Personnel)
2311949
23600
2335549
Shri S. Chakravarty Director (Technical) Opn.
2422077
2422077
Director (Finance)
(Upto 31.01.2013)
4613001
12140
4625141
Director (Finance)
(From 01.02.2013)
357356
357356
Shri A.K. Soni

Shri C. K. Dey
(ii)
Other
Part-time official Directors:

No remuneration is paid to the Part-time official Directors by the Company.
(iii)
Part-time Non-official Directors:

No remuneration is being paid to Part-time Non-official Directors except sitting fee. Details of sitting fee
paid for attending Board / Committee Meetings are shown below.
Sl. No.
3.
Total Sitting Fee Paid ( ` )
Name of the Director
Shri K.K. Gautam
265956
122360
Shri S.K. Mohanty
176068
Shri S.M. Lodha
156068
Shri S.M. Sharma
232248
TOTAL
952700
Board Committee:
[A]
Audit Committee:
Your Company has an independent Audit Committee. The composition, procedures, powers and role/
functions of the Audit Committee, constituted by the Company is to comply with the requirements of the
Companies Act, 1956.
Scope of Audit Committee:

76
The scope of Audit Committee is as follows:1.
Overseeing of the companys financial reporting process and the disclosure of its financial information to
ensure that the financial statement is correct, sufficient and credible.
2.
Recommending to the Board the fixation of audit fees.
3.
Recommendation to the Board for fixation of fees to statutory auditors for any other services rendered by
the statutory auditors.
4.
Reviewing, with the management, and ensuring that the annual financial statements are in compliance
with applicable laws before submission to the Board for approval, with particular reference to:
a)
Matters required to be included in the Directors Responsibility Statement to be included in the

Boards report in terms of clause (2AA) of section 217 of the Companies Act, 1956;
5.
b)
Changes, if any, in accounting policies and practices;
c)
Major accounting entries involving estimates based on the exercise of judgment by management;
d)
Significant adjustments made in the financial statements arising out of audit findings;
e)
Compliance with legal requirements relating to financial statements;
f)
Disclosure of any related party transactions; and
g)
Qualifications in the draft audit report.
h)
The management discussion and analysis of financial condition and results of operations.
Reviewing, with the management, the quarterly financial statements before submission to the Board for
approval.
6.
Reviewing with the management, performance of internal auditors and adequacy of the internal control
systems.
7.
Reviewing the adequacy of internal audit function, if any including the structure of the internal audit
department, staffing and seniority of the official heading the department, reporting structure coverage and
frequency of internal audit and the information regarding appointment and / or removal of Internal Auditor.
8.
Discussion with internal auditor and / or auditors any significant findings and follow up thereon.
9.
Reviewing the findings of any internal investigations by the internal auditors / auditors / agencies into
matters where there is suspected fraud or irregularity or a failure of internal control system of a material
nature and reporting the matter to the Board.
10. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as
well as post-audit discussion to ascertain any area of concern.
11. Looking into the reasons for substantial default in the payment to the depositors, debenture holders,
shareholders (in case of nonpayment of declared dividends) and creditors.
12. Reviewing the functioning of the Whistle Blower Mechanism.
13. Reviewing the follow up action on the audit observations of the C&A G.
14. Any difficulties encountered during audit work including any restrictions on the scope of activities or
access to required information.
77
15. Reviewing the follow up action taken on the recommendations of Committee on Public Undertakings
(COPU) of the Parliament.
Composition :
Audit Committee comprised of 2 (Two) part-time official directors viz S/Shri A.K. Sinha and D.N. Prasad,
4 (four) part-time non-official directors viz. S/Shri S.K. Mohanty, Prof. (Dr.) M.K. Srivastava, S.M. Lodha
and S.M. Sharma, 1 (one) Special Director viz. Shri K.K. Gautam and 1 (one) Functional Director viz. Shri
S. Chakravarty, Director (Technical) Operations. Shri D.N. Prasad ceased to be a member of the committee
w.e.f 01.06.2012. Prof. (Dr.) M.K. Srivastava ceased to be a member of the committee w.e.f 07.06.2012.
Audit Committee was reconstituted by the Board on 04.08.2012 and Shri V. Peddanna, Director, MoC
was made a member of the committee. Audit Committee was once again reconstituted on 05.11.2012
and Shri S. Chaudhuri, part-time non-official director, was made a member of the committee in addition to
the existing members.
Director (Finance) and General Manager (F)/HOD (IA) are the permanent invitee to the Audit Committee
and Company Secretary is Secretary to the Committee.
Shri S.K. Mohanty was Chairman of the Committee upto 05.11.2012 and subsequently with the
reconstitution of Audit Committee, Shri S.M. Sharma, Part-time Non-Official Director was appointed as
the chairman of the Audit Committee w.e.f 05.11.2012.
8 (eight) meetings of the Audit Committee were held during the financial year 2012-13. The details of the
Audit Committee Meeting are as follows:
Members
Date
Functional
Part-time
Official
Part Time
Non-Official
Total
Strength
Present
Strength
Present
Strength
Present
Strength
Present
16.04.2012
17.05.2012
24.07.2012
04.08.2012
19.09.2012
04.11.2012
28.01.2013
01.03.2013
Audit Committee Attendance:

Details of number of Audit Committee meetings attended by each of the members are given below:-
78
Sl. No.
Members
Meeting held during
No. of
respective tenure of
members
Meetings
attended.
Shri S.K. Mohanty
Shri A.K. Sinha (upto 31.10.2012)
Shri D.N. Prasad (upto 01.06.2012)
Shri V. Peddanna (w.e.f 04.08.2012)
Shri K.K. Gautam
Prof. (Dr.) M.K. Srivastava (upto 07.06.2012)
Shri S.M. Lodha
Shri S.M. Sharma
Shri S. Chakravarty
10
Shri S. Chaudhuri (w.e.f 05.11.2012)
[B]
Remuneration Committee
Remuneration Committee was constituted in the 250th meeting of Board. The Committee consists of Shri
S.K. Mohanty, Shri S.M. Lodha, Prof. (Dr.) M.K. Srivastava (till 07.06.2012), Shri K.K. Gautam and Shri
S.K. Srivastava. Company Secretary is the secretary to the Committee.
Scope of the Committee: The committee would deal the issues which would be referred to it by the Board
from time to time.
No meeting of this committee was held during the year.
[C]
Committee on Sundry Debtors
A Committee on Sundry Debtors was constituted in the 248th meeting of Board. The Committee consists
of Shri S.M. Lodha, Shri K.K. Gautam, Shri S.M. Sharma, Shri S. Chakravarty and Shri A.K. Soni. The
Chairman of the Committee was Shri S. M. Lodha. Company Secretary was secretary to the committee.
The Committee was dissolved in the 257th meeting of ECL Board held on 05.11.2012.
3 (three) meetings of the Committee on Sundry Debtors were held during the financial year 2012-13, i.e
on 28.04.2012, 03.08.2012 and 04.11.2012. The details of members and their attendance at meetings are
given below:
Sl. No.
Members
Meeting held during

respective tenure of
members
No. of Meetings
attended
Shri S.M. Lodha
Shri K.K. Gautam
Shri S.M. Sharma
Shri S. Chakravarty
Shri A.K. Soni
79
[D]
Committee for Evaluation, Appraisal and Approval
of Projects
In the 246th meeting of the Board, a Committee for Evaluation, Appraisal and Approval of projects was
constituted. During the year 2012-13 4 (four) meetings of the Committee for Evaluation, Appraisal and
Approval of Projects were held i.e on 24.07.2012, 04.08.2012, 05.11.2012 and 28.01.2013. The Chairman
of the Committee is Shri Rakesh Sinha. The details of members and their attendance at meetings are
given below:
Sl. No.
Members
Meeting held during
No. of Meetings
respective tenure of members
attended
Shri Rakesh Sinha
Shri V. Peddanna
Shri K.K. Gautam
Shri S.M. Lodha
Shri S. Chakravarty
Shri A.K. Soni
[E]
Committee on Sustainable Development.
A committee on Sustainable Development was constituted by ECL Board in its 249th Meeting held on
29th December, 2011. The Chairman of the Committee is Shri Subrata Chaudhuri. During the year 201213, only 3 (three) meetings of the Committee on Sustainable Development were held i.e on 04.08.2012,
17.10.2012 and 24.03.2013. The details of members and their attendance at meeting are given below:
Sl. No.
Members
Meeting held during
No. of Meetings
respective tenure of members
attended
Shri K.K. Gautam
Shri S.M. Sharma
[F]
Committee on Research & Development Activities.
A committee on research & Development was constituted by ECL Board in its 249th Meeting held on 29th
December, 2011. The committee consists of Shri Subrata Chaudhuri, Shri S.M. Sharma, Shri K.K. Gautam
and Shri S.K. Srivastava. The Chairman of the Committee is Shri Subrata Chaudhuri. The Company
Secretary is secretary to the committee.
No meeting of this committee was held during the year.
Statutory Auditors:
Under Section 619(2) of the Companies Act, 1956 the following Chartered Accountants Firms were appointed by
the Comptroller and Auditor General of India for conducting audit of the financial accounts of the company for the
year 2012-13:
Statutory Auditors :
1.
M/s. Dutta Sarkar & Co., 7A, Kiran Sankar Roy Road, 2nd Floor, Kolkata-700001
80
Branch Auditors :
2.
M/s. Lodha & Co., 14 Government Place East, Kolkata-700069
3.
M/s. Roy Ghosh & Associates, 39, Kalna Road, Badamtala, Burdwan-713401
4.
M/s. L B Jha & Co., GF-1, Gillander House, 8, Netaji Subhas Road, Kolkata- 700001
5.
M/s. U S Saha & Co., 35, Bahir Sarbamangla Road, Burdwan-713101
6.
M/s. J. Gupta & Co., 3, Satyanarayan Temple Road, 1st Floor, Bandaghat, Howrah-711106
Annual General Meeting:

Particulars of Annual General Meeting of Shareholders of the company held during last 3 years were as under:Special
Year
Date & Time
Place
Attendance
Resolution,
if any
2009-10
22.05.2010
11:00 AM
Sanctoria
Shri S. Chakrabarti, CMD, ECL

Shri Prabir Chakraborty,
Finance Manager, CIL
Shri S.K.Srivastava, D (P), ECL
Shri S. Chakravarty, D(T) Opn., ECL
Shri N. Kumar D (T) P&P, ECL.
2010-11
23.05.2011
11:00 AM
Sanctoria
Shri Rakesh Sinha, CMD, ECL

Shri Anirudha Pal, Sr. Officer (F),CIL
Shri S. Chakravarty, D (T), OP, ECL
(member of Audit Committee)
Shri N. Kumar, D (T), P&P, ECL
Shri A.K. Soni, D (F), ECL
2011-12
21.05.2012
4:00 PM
Sanctoria
Shri Rakesh Sinha, CMD, ECL

Shri B. Bhattacharya, Sr. Manager (F),
CIL, Representative of CIL,
Chairman, CIL and
Shri S.K. Srivastava, D (P), ECL
Shri S. Chakravarty, D (T), OP, ECL
(member of Audit Committee)
Shri A.K. Soni, D (F), ECL
No Special Resolution was passed through postal ballot at any of the General Meetings of the members held
during the above three years.
4.
DISCLOSURES:
(a)
Related Party Transactions:
As per the disclosures given by the Directors of the company there were no related party
transactions that have potential conflict with the interest of the company at large.
81
(b)
Code of Conduct for Directors and Senior Executives:

The Code of Conduct for Directors and Senior Executives was approved by the Board of Directors
of the company in its 214th Meeting held on 15th October, 2007. This was circulated to the
Directors and senior executives and obtained their affirmation. It was also uploaded in the website
of the company www.easterncoal.gov.in.
(c)
Accounting Treatment:
The financial statements are prepared in accordance with applicable mandatory Accounting
Standards and relevant presentational requirements of the Companies Act, 1956.
(d)
Risk Management, Fraud Prevention and Identification:

Risk Assessment and Mitigation Policy has been approved by the ECL Board in its 257th Meeting
held on 05.11.2012.
5.
Means of Communications:
Annual Report, Operational and financial performance of the company is uploaded in companys website
www.easterncoal.gov.in.
Apart from Annual Accounts, quarterly review of accounts is also conducted by the statutory auditors of
the company.
6.
Audit Qualifications:
It is always the companys endeavour to present an unqualified financial statement. Management reply to
the statutory auditors observations on the accounts of the company for the year ended 31st March, 2013
are furnished as an Annexure to Directors Report. Comments of the Comptroller and Auditor General of
India under section 619(4) of the Companies Act, 1956 on the accounts of Eastern Coalfields Limited for
the year ended 31st March, 2013 are also enclosed.
7.
Training of Board Members:

The Functional Directors are the heads of the respective functional areas by virtue of their possessing the
requisite expertise and experience. They are aware of the business model of the company as well as the
risk profile of the companys business. The Part-time Directors are also fully aware of the companys
business model.
8.
Shareholding pattern of the Company:

100% shares of the company are held by Coal India Ltd.
9.
Whistle Blower Policy:

The company promotes ethical behaviour in all its business activities. The Board has put in place mechanism
of reporting illegal or unethical behaviour. Employees are free to report violation of laws, rules, fraud or
unethical conduct to the Competent Authority. The reports received from any employee will be reviewed by
the Screening Committee. The management personnel are obligated to maintain confidentiality of such
reporting and ensure that the whistle blowers are not subjected to any discriminatory practices.
The Board of your company had accorded its approval in its 218th Meeting held on 27th March, 2008 to
sign a MoU with M/s. Transparency International in line with the MoU entered into by CIL for implementation
of Integrity Pact and the same was carried out.
10.
Against MoU Target of 85% grading on the basis of the Compliance with guidelines on Corporate Governance
issued by DPE the actual achievement is 95%. The actual date of submission to DPE of completed datasheet for PE Survey was 14.09.2012.
82
ANNEXURE - A
PROFILE OF DIRECTORS
Brief resume of all Directors, nature of their expertise in specific functional areas and names of companies in which
they hold Chairmanships, Directorships, Memberships of Board / Committees are given below.
Shri Rakesh Sinha (58) has graduated mining engineering in 1977 from National Institute of Technology, Raipur.
He also holds First Class Mine Managers Certificate of Competency (COAL). He joined Coal India limited on 18th
November, 1977 and was posted at Bharat Coking Coal Limited as Junior Executive Trainee. Thereafter he worked
in different capacities in various mines of BCCL including prestigious Moonidih Project, the first completely
mechanised mine in India.
Shri Sinha was transferred to South Eastern Coalfields Limited in April, 1989, where he worked in different capacities
like Superintendent of Mines/ Manager, Project Officer, General Manager and Technical Secretary to Director
(Technical) OP, SECL. He also worked as Project Officer of prestigious high capacity Gevra Opencast Project
where on 18.03.2007 coal production reached to a level of 1.00 L.Te, which was ever highest till then from a single
project on a day in the history of Coal India Limited. Subsequently in April, 2007 on promotion as Chief General
Manager he was again transferred back to his parent Company i.e., BCCL and took over the charge of Chief
General Manager, Lodna Area.
Shri Sinha was selected for the post of Director (Technical), Bharat Coking Coal Limited in September 2007 and
joined as Director (Technical) Operation in June, 2008. Under his dynamic leadership there were remarkable
improvements in different spheres at BCCL.
Due to his proven track record and managerial capability he was selected as Chairman-cum-Mg. Director, Eastern
Coalfields Limited in August, 2010. He took over as Chairman-cum-Mg. Director on 23rd December, 2010. He has
a vast experience as practicing Mining Engineer in different mining conditions.
After taking over the charge of Chairman-Cum-Managing Director by virtue of implementation of different action
plans, enforcement of strict discipline, maintaining proper liaison with Administration and close monitoring by him
the Company consistently maintained all round improvement in all the fields of Production, Productivity, Despatch,
Profitability and Welfare/CSR activities as well. During 2012-13 new records were created surpassing all the past
achievements in a number of fields like highest ever Coal Production, Off-take, OB Removal, Productivity, Capacity
Utilisation, Profitability etc. since inception of the Company. It is expected that under his dynamic leadership the
company is poised to come out of the BIFR by the end of current fiscal 2013-14 i.e. a year ahead of the projection
in the modified revival plan.
Sri Sinha visited different countries of Europe and China in connection with Powered Support Longwall equipment
and global leadership programme arranged by IMI, Delhi. He also accompanied the business delegation to Mongolia
lead by Honble President of India during July 2011. In Sept 2012 he visited USA in connection with MINE EXPO
and Mine visit at Wyoming State.
Shri Sushil Kumar Srivastava (59) is a 1971 batch Science Graduate from Meerut University. He became
Associate Member of The Institute of Company Secretaries of India (ICSI) in 1977 and now he is Fellow Member of
83
ICSI. He holds Degree in Law from Meerut University with Diploma in Personnel Management and Industrial
Relations and also Post Graduate Diploma in Human Resource Management. Shri Srivastava is also Life Member
of National Institute of Personnel Management (NIPM).
Shri Srivastava has more than 35 years experience in senior management level discharging multifarious functions
in reputed organisations. He joined Coal India Limited in August 1990 as Company Secretary and posted at
Northern Coalfields Limited. He was transferred to Western Coalfields Limited in October 2006. Both in Northern
Coalfields Limited and Western Coalfields Limited he had an opportunity to interact and coordinate with Board
level executives, different departmental heads and acquainted good exposure in all facets of coal industry including
Personnel Management and Industrial Relations. He joined Eastern Coalfields Limited as Director (Personnel)
from 1st February 2008.
Shri Srivastava has attended various seminars, training programmes including Advance Management Programme
of Administrative Staff College, Hyderabad when he also visited SDA, Bocconi University in Milan, Italy and other
European Countries from 11.09.2011 to 24.09.2011 and AMP (overseas) organised by Indian Institute of Coal
Management, Ranchi when he visited Australia for study tour from 25.11.2007 to 01.12.2007.
Sri Subrata Chakravarty, working as Director (Technical) in Eastern Coalfields Ltd. (A subsidiary of Coal India
Ltd.), was born on 06-03-1958.
Having initial school education at Patha Bhawana, Santiniketan, he pursued his Graduation in Mining Engineering
from Indian School of Mines, Dhanbad in the year, 1979. Thereafter, acquired Master of Computer Application from
BIT, Mesra in the year 1997. He was awarded William Selkirk Scholarship and Haarlem-E-West Scholarship for
higher studies in Imperial College of Science & Technology, London, which remained unavailed.
Sri Chakravarty has a vast practical experience in Mining Industry for more than 32 years. He has worked in
different capacities of Management Administration, Production, Planning Functions in underground as well as
opencast mines of CCL, BCCL, NCL and ECL. Prior to joining as Director Technical in ECL, he worked in various
capacities like Chief General Manager/Technical Secretary to Chairman, Coal India Ltd., Chief General Manager,
Amlohri Project, Northern Coalfields Ltd. He has an excellent track record of various performance indicators which
has always been appreciated.
Sri Chakravarty has widely travelled foreign countries like U.S.A., Russia, Belarus, Germany, Switzerland, France,
China, Singapore etc., as a part of Indian Delegation, U.N.D.P. and official tours. Sri Chakravarty is interested in
reading books, singing and is a keen follower of all sports.
Sri Chandan Kumar Dey, Director (Finance) of Eastern Coalfields Limited was born in Kolkata on 10th September,
1958.
Sri Dey completed his schooling from Kendriya Vidyalaya in 1975 and graduated from Calcutta University in
Commerce with Honours in Accountancy in the year 1978. Sri Dey is a Chartered Accountant and Cost Accountant.
Sri Dey has wide experience of over 32 years and served in different organizations of repute including Lovelock &
Lewes, Dunlop India Ltd., NICCO Group, Balmer Lawrie & Co. Ltd. & Oil India Limited.
During his professional career Sri Dey headed the Accounts, Treasury, Taxation and Internal Audit functions and
served as Chief Finance Officer. Sri Dey also headed the operations of Balmer Lawrie & Co. Ltd. in the United
Kingdom for 3 years as Chief Operating Officer based in UK. Sri Dey has travelled extensively within India and
84
Foreign countries like UK, France, Germany, Switzerland, USA, Hong Kong, UAE and the Central Asian Republics
on official assignments.
Sri Dey is interested in reading books and loves music.
Sri Ramesh Chandra, 58 Years, Son of Late Hari Krishna graduated in Mining Engineering in 1976 from Indian
Institute of Technology, Banaras Hindu University, Varanasi and also holds 1st Class Mine Managers Certificate of
Competency (Coal) and qualified for 1st Class Mine Managers Certificate of Competency (Metaliferous). He is
recipient of B.H.U. Gold Medal and Roberton Medal (from MGMI). He joined Coal India Limited on 20th of September,
1976 and was posted at Bharat Coking Coal Limited as Junior Executive Trainee. Thereafter, he worked in different
capacities in various mines of B.C.C.L. including more than 17 Years in prestigious Moonidih Project, the first
completely mechanized U/g mine in India with Longwall technology and other modern mining method; besides the
conventional mines of Board and Pillar system with both stowing and caving method of extraction of coal. He did
M.Tech (Mining Engg.) from Indian School of Mines, Dhanbad in 1987 after joining CIL. He has vivid experience in
coal mining for more than 36 years in various capacities of Management, Administration, Production, Planning,
Ventilation in Underground as well as Opencast Mines of BCCL, SECL, MCL & NCL of Coal India Ltd. including
ventilation of large highly gassy Degree-III Mines.
Sri Chandra was transferred and posted in SECL in May, 2002, where he worked in different capacities like Project
Officer, Dy. G.M. and General Manager both in conventional and mechanized mines including open cast working
with draglines.
Subsequently, on promotion in October, 2007, he was transferred to Mahanadi Coalfields Ltd. and took over the
charge of CGM, Orient Area, which has thick seam mining with middle level mechanization, with the deployment
of LHD and UDM. In July, 2009, he was transferred to Northern Coalfields Limited, where he headed Safety Division
for about 3 years and about one year in Mega open cast project having 4 nos. of draglines and other major
achievements. Sri Chandra has a remarkable contribution to the overall growth in production, safety standards and
profit including environmental clearance of Bina Project from 6.0 M.T. to 7.5 M.T.
He has also visited U.S.S.R. in connection with equivalent material modeling for strata control. He is a life member
of Profession bodies, Institution of Engineers, MGMI etc. since long.
Due to his proven track record and managerial capacity, he has been selected as Director (Technical) in Eastern
Coalfields Limited in October, 2012 and has taken over the charge of the Office of Director (Technical) on 4th
March, 2013.
Sri V. Peddanna, (58) is the Director in the Ministry of Coal since May, 2011. Shri Peddanna graduated in
Agriculture Sciences from Andhra Pradesh Agriculture University, Hyderabad. He has done Executive Masters in
International Business from the Indian Institute of Foreign Trade. Further, he obtained M. Phil degree from Punjab
University on Public Administration. His experience spanning 23 years include 4 years in the Ministry of Health &
Family Welfare, 7 years in Department of Elementary Education in the Ministry of Human Resource Development,
5 years in the Ministry of Commerce & Industry and 3 years in Ministry of Personnel, Public Grievances L&
Pensions. Before joining the Board of Eastern Coalfields Limited as representative of Govt. of India, he has worked
as Govt. nominee on the Board of Directors of Northern coalfields Limited.
85
Sri Abhijit Chatterjee, ACA has assumed the charge of Director (Finance), Coal India Limited from 01.11.2012.
Prior to this, he was working as Director (Finance) in Central Coalfields Limited from 08.03.2010. Before his joining
in CCL, he has worked in Bharat Earth Movers Ltd (BEML) in the capacity of General Manager, Chief General
Manager and Executive Director (Finance) from 01.10.1997 till 05.02.2010. He is also on the Board of South
Eastern Coalfields Limited as Part Time Official Director.
He has rich experience in financial management of the company and has made significant contribution in BEML
viz Treasury Management, Customs Excise Duty, Service Tax, Insurance, Rail & Metro and Defence Product
business marketing etc. Due to his efforts along with team members, BEML got benefit of around 8 crores in the
area of Treasury Management. He was instrumental in arranging Marine-cum-storage-cum-erection Policy covering
the risks of transit, storage, construction, fabrication, installation and commissioning in respect of Bangalore
Metro Rail business for a period of 82 months from 18.02.2009 valued at ` 3.58 crores (approx.) payable in 15
instalments. He has also arranged Professional Indemnity Insurance to cover any risk arising out of professional
negligence and errors in the design works from the period of commencement of work till 5 years after the date of
issue of the performance certificate valued at ` 4.25 crores (approx.) in 4 instalments. These insurance covers
were arranged for the first time in BEML by involving quotes for 10 underwrites in a very transparent manner within
a period of 47 days only. He has also contributed in settling matters on Customs and Excise Duty related cases
and as a result the company saved a substantial working capital of ` 54.86 crores.
On behalf of CCL, he has organized promotion of IPO floated by CIL. As a team leader of Coal Companies, he took
up interest claim against HPGCL for delayed payment of coal dues and ensured quick, logical and favourable
decision of Umpire in favour of Coal Companies to the extent of ` 75.00 crores (approx.). He has ensured improving
realization from JSEB and TNVL. M/s. TNVL has signed FSA with CCL due to tremendous persuasion.
He has attended Senior Management course at MDI, Gurgaon and also undergone training at various Management
schools at Europe.
Shri Subrata Chaudhuri (66) is a Chair Professor in the Department of Mining Engineering, Indian School of
Mines. Before joining academia, he served Indian coal sector for nearly four decades in production, planning and
in Ministry of Coal (Govt. of India), and retired as CMD of CMPDI Ltd, a subsidiary of Coal India Ltd. Currently, he
is also a non-official part time Director on the Board of SAIL.
A graduate in Mining Engineering from University of Calcutta and post-graduate in Opencast Mining from Indian
School of Mines, Shri Chaudhuri holds the professional First Class (Coal) Mine Managers Certificate of Competency
issued by Ministry of Labour and Employment (India) for managing coal mines. He is a Fellow of Institution of
Engineers (India) and a recognized qualified planner (RQP) in the panel of Ministry of Coal, Government of India.
Shri S.K. Mohanty, (65) joined the Indian Revenue Services in 1972. He retired as Chief Commissioner of Income
Tax (CCIT), Orissa Bhubaneswar. He holds a masters degree in History and has also been trained at Indian
Institute of Foreign Trade, New Delhi. During his tenure as an IRS Officer he held various prestigious posts such as
Dy. Director/Dy. Secretary, DGS&D, Ministry of Supply, GoI, Director (Finance) and acting CMD of Orissa Power
Generation Corporation (OPGC), Government of Orissa. He also held the post of CIT Chennai, CIT
Vishakhapattanam, CIT Hyderabad, Chief CIT Hyderabad, Chief CIT Mumbai. His areas of specialisation/ expertise
are Financial Management, Taxation, Administration and other commercial matters. In 1988 Shri Mohanty won the
86
Union Finance Ministers Highest Award for excellence in the field of collection and administration of Direct Taxes
in India. Presently he is also Advisor (Finance & Taxation) to some corporate entities (both Indian and foreign).
Shri S.M. Sharma, (67) by profession is a business strategic advisor from Kanpur. He joined the ECL Board as
a Financial Expert and Part-time Non-official Director. He holds Bachelors Degrees in Law and Economics. He
has wide and varied experience in auditing and has conducted the audit of various PSEs such as SBI, LIC,
TAFCO, UP Bridge Corporation etc. He has also conducted audit of various reputed private sector companies
such as Jagran Prakashan Limited (Dainik Jagran), Kothari Products Limited (Pan Parag), Rotomac Global Pvt.
Ltd., Frontier Construction Co. Ltd., Miniature Bulb Industries Limited, Hitech Bio Sciences Ltd. etc. He is also on
the panel for ADR i.e. Alternate Dispute Resolution/Redressal via mediation pertaining to investors grievances of
NSE w.e.f 2012.
Shri Sharma is an expert in the field of business management, tax planning and consultancy. He has attended/
participated in various professional seminars and workshops from time to time in India as well as abroad in UK,
USA, France and Germany. He is Group Advisor to the Boards of Jagran Prakashan Ltd. (Dainik Jagran) and
Rotomac Global Pvt. Ltd. He is also associated with Rave-3 Multiplex from the stage of ideation, conceptualisation
to implementation and its successful operation.
Shri Sharma has been actively engaged in many social, charitable, environmental and cultural NGOs and
associations.
Shri SM Lodha (62) is an Honours Graduate in Commerce, Law and MBA. He has over 36 years of cross industry
experience in large Corporates and has been associated as Chief Executive Officer, advisor, and board member of
reputed companies. He is on the board of SJVN Limited, Indsur Gears Limited, India Trade Promotion Organisation,
Indsur Global Ltd., Crystal Palace Properties Pvt. Ltd., Indsur Stelcor Services Pvt. Ltd. He is well known name in
the Financial Sector. Recently, International whos who society, USA has recognized him as one of the new
member of appear in the 2011-2012 edition of international whos who of professionals having demonstrated
exemplary achievement and distinguished contribution to business community.
Shri Krishna Kumar Gautam (67) is a M.Sc., L.L.B and worked as Senior Vice-President of National Bulk
Handling Corporation Limited since 2007. He worked as Sr.Vice President of National Collateral Management
Services Limited during 2006-07. He was also associated with Food Corporation of India in various capacities
including Executive Director during the period from 1986 to 2006. He also worked as CEO of Agra Divisional
Development Corporation from 1977 to 1986. He also worked in Bank of Baroda in various capacities from 1969 to
1977. He is an expert in Agro-commodities business including trading, Collateral Management and providing end
to end solutions. He is also an expert in managing the Industrial Enterprises, Finance & Banking and various laws.
He is also a Member of all Committees of Board of Eastern Coalfields Limited. He is also a fellow and member of
Indian Council of Arbitration.
87
ANNEXURE - VI
7A, Kiron Sankar Roy Road,
2nd Floor,
Kolkata - 700 001
DUTTA
SARKAR & COMPANY
CHARTERED ACCOUNTANTS
Auditors' Certificate on Compliance with the conditions of Corporate Governance

To the Members of Eastern Coalfields Limited
We have examined the compliance of conditions of Corporate Governance by Eastern
Coalfields Limited (ECL, the Company) for the year ended 31st March, 2013.
The compliance of conditions of Corporate Goverance is the responsibility of the management.
The Company is the subsidiary of Coal India Limited, a Government Company which is listed and
the shares of the Company (ECL) are not listed in any stock exchange so that Clause 49 of the
listing agreement is not applicable. Under the circumstances our examination was carried out in
accordance with the Guidance Note issued by the Institute of Chartered Accountants of India and
was limited to procedures and implementation thereof, adopted by the Company for ensuring the
compliance of the conditions of Corporate Goverance. It is neither an audit nor an expression of
opinion on the financial statements of the Company.
In our opinion and to the best of our information and according to the explanations given to us, we
certify that the company has generally complied with the conditions of Corporate Governance.
We further state that such compliance is neither an assurance as to the future viability of the
Company nor the efficiency with which the management has conducted the affairs of the
Company.
For DUTTA SARKAR & CO.
Chartered Accountants
Sd/(B. K. Patra)
Partner
Membership No. 063444
Firm Registration No. : 303114E
Date : 19th May, 2013

Place : Kolkata
Telephone : +91 33 2248 1760 / 2213 1333 / 2248 3297, Telefax : +91 33 2282 4889 / 2210 3885
E-mail : info@duttasarkar.com / dusac.2009@rediffmail.com
Website : www.duttasarkar.com
88
ANNEXURE - VII
FOREIGN EXCHANGE EARNING & OUTGO

(i)
Activities relating to exports, initiatives

taken to increase exports, development
of new export markets for products,
services and export plans.
(ii)
: Company is not engaged in export activities.
Total Foreign Exchange used and earned :

( ` in Lakh)
Sl.No.
Description
2012-13
(A)
Foreign Exchange Used

1. CIF value of imports
(a) Raw materials
(b) Components, stores & spares
(c) Capital goods.
0.00
1386.00
NIL
0.00
2118.00
2897.00
2. Traveling / Training Expenses
7.00
14.00
3. Expenses on know-how and Foreign Consultancy
0.00
0.00
4. Pension to the Foreigners
0.00
0.00
548.00
695.00
1941.00
5724.00
Nil
Nil
5. Others
Total
(B)
2011-12
Foreign Exchange Earned
89
ANNEXURE - V III
FORM - B
FORM FOR DISCLOSURE OF PARTICULARS W I T H

RESPECT T O TECHNOLOGY ABSORPTION
RESEARCH AND DEVELOPMENT (R & D)
1.
2.
3.
4.
Specific area in which R&D carried out

by the Company
Company does not have its own

Research & Development (R&D) set up.
CMPDIL, a Subsidiary of Coal India Limited (CIL) does the R&D work centrally
for all the Subsidiaries of CIL.
Benefits derived as a result of the above R & D :
NA
Future Plan of action
:
NA
Expenditure on R & D
:
NA
(a)
Capital
-(b)
Recurring
-(c)
Total
-Total R&D expenditure as a percentage of
:
NA
total turnover.
TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION

1.
Efforts, in brief, made towards technology `
:
Nil
absorption, adaptation and innovation.
2.
Benefits derived as a result of the above
:
Nil
efforts, e.g. product improvement, cost
reduction, product development, import
substitution, etc.
3.
In case of imported technology (imported
:
Nil
during the last 5 years reckoned from the
beginning of the financial year), following
information may be furnished :
(i)
Technology imported
:
Nil
(ii)
Year of Import
:
Nil
(iii)
Has technology been fully absorbed?
:
Nil
(iv)
If not fully absorbed, areas where this
:
Nil
has not taken place, reasons therefore
and future plans of action.
90
CONFIDENTIAL
H$m`mb`, YmZ {ZXoeH$ dm{Up`H$ boImnarjm VWm nXoZ gX` boImnarjm

~moS>-II H$mobH$mVm
nwamZm {ZOm_ _hb, AmMm` OJXre M ~mog amoS>,
H$mobH$mVm - 700 020
g`_od O`Vo
OFFICE OF THE
PRINCIPAL DIRECTOR OF COMMERCIAL AUDIT & EX-OFFICIO
MEMBER AUDIT BOARD-II, KOLKATA
Old Nizam Palace, 234/4, Acharya Jagadish Chandra Bose Road,
Kolkata -700 020
No. : 44 / CA / LA-1 / Accounts / ECL / 2012-13
{XZmH$ / Dated 20 May, 2013
To
The Chairman-cum-Managing Director,
Eastern Coalfields Limited,
Sanctoria,
West Bengal
Sub. : Comments of the Comptroller & Auditor General of India under
Section 619(4) of the Companies Act, 1956 on the Accounts of
Eastern Coalfields Limited for the year ended 31st March, 2013.
Sir,
I forward herewith the Comments of the Comptroller & Auditor General of India under Section
619(4) of the Companies Act, 1956 on the Accounts of Eastern Coalfields Limited for the year ended
31st March, 2013.
The receipt of this letter may please be acknowledged.
Encl. As stated.
Yours faithfully,
sd/(Yashodhara Ray Chaudhuri)
Principal Director of Commercial Audit
& Ex-Officio Member, Audit Board - II
Kolkata
Kolkata
Dated : 20.05.2013
Xw0^m0/Phones : 91-33-22875380/7165/2360/8838, 2281-0043/5654, \$g/Fax : 91-33-22800062

B0 _ob/E-mail : pdca2cal@cal3.vsnl.net.in, Vma : ""H$mo`boIm'' / Telegram : "COLADIT",
91
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER

SECTION 619 (4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF
EASTERN COALFIELDS LIMITED FOR THE YEAR ENDED 31ST MARCH, 2013
The preparation of financial statements of Eastern Coalfields Limited for the year ended
31st March, 2013 in accordance with the financial reporting framework prescribed under the
Companies Act, 1956 is the responsibility of the management of the company. The statutory
auditors appointed by the Comptroller and Auditor General of India under Section 619(2) of the
Companies Act, 1956 are responsible for expressing opinion on these financial statements
under section 227 of the Companies Act, 1956 based on independent audit in accordance with
the auditing and assurance standard prescribed by their professional body, the Institute of Chartered Accountants of India. This is stated to have been done by them vide their Audit Report
dated 19.05.2013.
I, on the behalf of the Comptroller and Auditor General of India have conducted a supplementary audit under section 619(3) (b) of the Companies Act, 1956 of the financial statements of
Eastern Coalfields Limited for the year ended 31 March, 2013. This supplementary audit has
been carried out independently without access to the working papers of the statutory auditors
and is limited primarily to inquiries of the statutory auditors and company personnel and a selective examination of some of the accounting records. On the basis of my audit nothing significant
has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditors report under section 619 (4) of the Companies Act, 1956.
For and on behalf of the
Comptroller & Auditor General of India
Kolkata,
Dated : 20.05.2013
Sd/(Yashodhara Ray Chaudhuri)

Principal Director of Commercial Audit
and Ex-Officio Member, Audit Board - II
Kolkata.
92
AUDITORS' REPORT TO THE MEMBERS OF

AUDITORS' REPORT
1.
Management's Reply
Report on the Financial Statements

We have audited the accompanying financial statements of Eastern
It is a statement of fact.
Coalfields Limited (the Company), which comprise the Balance

Sheet as at March 31, 2013, and the Statement of Profit and Loss
and Cash Flow Statement for the year then ended, incorporated (a)
the accounts of Head Office and 8 Areas / Units audited by us and
also (b) 19 Areas / Units audited under Section 228 of the Companies
Act, 1956 by the Branch Auditors, and a summary of significant
accounting policies and other explanatory information.
2.
Managements Responsibility for the Financial Statements

Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance
with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 the Act). This responsibility
includes the design, implementation and maintenance of internal
control relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
3.
Opinion
In our opinion and to the best of our information and according to
the explanations given to us, the 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, of the state of affairs of the
Company as at March 31, 2013;

(b)
in the case of Statement of Profit and Loss, of the profit for the year
It is a statement of fact
ended on that date; and

(c)
in the case of the Cash Flow Statement, of the cash flows for the
It is a statement of fact
year ended on that date.

4.
Emphasis of Matter
i)
A Large quantity of scrap materials appearing to be of considerable
Audit observation is noted. It may
value (amount is not ascertainable) were found lying in different
be seen from the audit observation
areas/ units under open sky. These are exposed to the risk of
that there is a significant
93
depletion/loss. Value of scrap, auctioned during the year under audit,
improvement in disposal of scrap
is amounted to ` 9.94 crores against ` 1.16 crores during previous

year 2011-12.
as compared to the previous year.
We are of the opinion that assessment of this large quantity of
type of plant & machineries which
scrap need to be made with a policy of disposal thereof with physical
includes Heavy Earth Moving
verification followed by technical evaluation, if necessary.
Machineries, Side Discharge
ECL is producing coal with various
Loader etc. which after completion

of life are declared as scrap. It is
not possible to provide a cover for
all such machineries after they are
declared as scraped. It may be
mentioned that the company has
a system of recording generation
and disposal of scrap for effective
control. Security arrangements are
also provided to prevent the
possibility of pilferage, theft etc.
The disposal of such scrap is a
continuous process following strict
guidelines of various authorities. All
efforts are made to expedite
disposal of the scraps following
such guidelines and procedures.
ii)
Difference between Stores Ledger and Financial Ledger was
Audit observation is noted. Actions
reconciled up to March13 with the constant difference of ` 24.89

Lacs and ` 51.86 Lacs for revenue and capital respectively. However
are being initiated for writing off the
a provision has been made in the accounts parking in Stores
against the provision already
Suspense Account. For current year reconciliation between Stores
made.
constant difference amount,
ledger and Financial ledger is stated to be in progress.

We are of the opinion the above long outstanding un-reconciled
amount need to be written off.
iii)
In spite of the company presently having negative net worth, the

financial statements have been prepared on a going concern basis,
which assumes that the company will continue in operational
existence in the foreseeable future. The validity of this assumption
depends on the successful implementation of the BIFR sanctioned
rehabilitation scheme prepared u/s 18 of SICA including adherence
to production targets, closing down of unviable mines, rationalization
of manpower, timely implementation of the Project, obtaining various
reliefs and concessions and also meeting the additional impact of
provision of impairment of assets, if any, under AS 28 which was
not envisaged in the aforesaid rehabilitation scheme.
94
5.
Report on Other Legal and Regulatory Requirements
1.
As required by the Companies (Auditors Report) Order, 2003 (the
Order) issued by the Central Government of India in terms of subsection (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the
Order.
2.
As required by section 227(3) of the Act, we report that:
a.
we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of
our audit;
b.
in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of

those books and proper returns adequate for the purposes of our
audit have been received from branches not visited by us;
c.
the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books
of account [and with the returns received from branches not visited
by us];
d.
in our opinion, the Balance Sheet, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards

referred to in subsection (3C) of section 211 of the Companies Act,
1956;
e.
On the basis of written representation received from the company
secretary of the Company all the functional directors of the Company

are not prima-facie disqualified as referred to in Section 274(1) (g) of
the Companies Act, 1956 and as per General Circular No. 8/2002
dated 22.03.2002 issued by the Ministry of law, Justice and Company
Affairs, the provision of Section 274(1)(g) of the Companies Act,
1956 is not applicable to the Company, being a Government
Company.
f.
Since the Central Government has not issued any notification as to

the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said
section, prescribing the manner in which such cess is to be paid,
no cess is due and payable by the Company.
95
ANNEXURE TO AUDITORS' REPORT

AS REPORTED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE
AUDITORS' REPORT
MANAGEMENT'S REPLY
1.
In respect of its fixed assets;
(a)
The Company has generally maintained proper records showing full
Since inception, ECL has acquired
particulars, including quantitative details and situation of the Movable
17832.63 Ha of land in West
fixed assets except for assets taken over from Coal Mines Authority
Bengal under difference mode of
on nationalization and those taken from Coal Mines Rescue Station,
acquisition like by virtue of
which has not been recorded. According to the information and
Nationalization Act 1973, under LA
explanations given to us out of total 17836.88 hectares of land
Act I & II, under CBA (A & D) Act
acquired in West Bengal by the Company under different modes of
1957, Direct Purchase, Transfer of
acquisition and took possession of 16961.48 hectares of land though
Government Land and Transfer of
mutation has been made only for 4368.74 hectares of land leaving
Forest Land under FC Act 1980.
major volume of land(13468.14 hectares) not mutated in favor of the
Out of 17832.63 Ha of acquired
Company.
land ECL took possession of

16961.48 Ha of land in West
Bengal.
Efforts are made for mutation of
aforesaid land in the record of
rights in favour of ECL under West
Bengal Government. Since making
of records of rights is not under the
control of ECL, as such regular
persuasion is done with the
concerned authorities.
However, all records, plans, parcha
and other documents related to
land acquired/ possessed under
different modes of acquisition as
stated above are kept in custody
of different projects/ mines / Areas
Offices.
(b)
According to the information and explanation given to us the

Company has physically verified the items of Plant and Machinery
worth ` 1 Lakh and more and certain other assets in a phased
periodical manner during the year and no material discrepancies
were noticed on such physical verification. However, no identification
number is given on the fixed assets which have been verified. In
96
absence of Physical verification of Plant and Machinery valuing less

than ` 1 Lakh and remaining other assets and reconciliation thereto,
we are unable to express our opinion regarding material
discrepancies, if any.
(c)
The Company has not disposed off any substantial part of its fixed
assets during the year.

2.
In respect of its inventories :
(a)
As explained to us, stock of stores has been physically verified
during the year by the management as per perpetual inventory

system. Stock of Coal has been physically verified by the designated
team of Coal India Limited at the end of the year. In our opinion, the
frequency and coverage of verification is required to be improved.
(b)
In our opinion and according to the information and explanations
given to us the procedures for physical verification of inventories
followed by the management are generally reasonable and adequate

in relation to the size of the company and the nature of its business.
(c)
given to us the Company has maintained proper records of its

inventory. The discrepancies between physical stocks and the book
records arising out of physical verification have been properly dealt
with in the books of accounts in accordance with accounting policy.
3.
The Company has neither granted nor taken any loan secured or
unsecured to/from companies, firms or other parties covered in the

Register maintained u/s. 301 of the Companies Act,1956.
4.
given to us, there are adequate internal control procedures

commensurate with the size of the company and the nature of its
business with regard to purchase of inventory and Fixed assets and
with regard to the sale of goods except in some cases there are
time lag between receipts of the material, adjustment of advances
and recording of liabilities. During the course of our audit, no major
weakness has been noticed in the internal controls.
5.
In respect of particulars of contract, arrangements referred to in

Section 301 of the Companies Act, 1956 :
a)

given to us, the particulars of contracts or arrangements that needed
to be entered into the register maintained under section 301 of the
Companies Act, 1956 have been entered.
97
b)
No transaction has been made in pursuance of such contracts or
arrangements exceeding the value of ` 5 Lakhs in respect of any

party.
6.
The company has not accepted any deposit from the public during
the year under section 58A, 58AA or any other relevant provisions of
the Companies Act, 1956 and the Rules framed there under.
7.
The Internal Audit has been carried out by firm of Chartered
Accountants under the supervision of the Internal Audit department

of the Company. The scope of the internal audit need to be enlarged
encompassing system audit and risk based audit. In our opinion
compliance to the internal audit report to be strengthened and
improved; subject to above the Companys Internal Audit system is
commensurate with the size and nature of its business.
8.
During the year, Maintenance of cost records have been prescribed
by the Central Government under section 209 (1) (d) of the Companies
Act, 1956 in respect of coal mining. As informed to us that the
prescribed cost records and accounts have been made and
maintained. However, we have not made a detailed examination of
the records with a view to determine whether they are accurate or
complete.
9.
In respect of statutory dues :
a)
The Company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including Provident Fund,

Income Tax, Value Added Tax, Central Sales Tax, Customs Duty,
Excise Duty, Cess and other statutory dues.
b)
The disputed statutory dues aggregating to ` 1972.31 Crores that

have not been deposited on account of Sales Tax, Excise Duty,
Cess, Income Tax-Royalty, Service Tax and interest thereon, etc.,

before the appropriate authorities.
10.
The Company has an accumulated loss of ` 5509.76 Crores (`

7165.30 Crores) and the net worth of the Company remained negative
as on 31.03.2013. BIFR has declared the Company as sick industrial

company in terms of Section 3(1) (o) of the Sick Industrial Companies
(Special Provision) Act, 1985 vide order No. 501/2000 dated
23.02.2001.
11.
The Company has no dues to the financial institution or banks or

debenture holders.
98
12.
In our opinion and according to the explanations given to us and
based on the information available, no loans and advances have

been granted by the Company on the basis of security by way of
pledge of shares, debentures and other securities.
13.
In our opinion, the Company is not a chit fund or a nidhi /mutual
benefit fund/society. Therefore, the provisions of clause (xiii) of the

Companies (Auditors Report) Order 2003 are not applicable to the
Company.
14.
In our opinion, the Company has not dealt or traded in shares,
securities, debentures or other investments during the year under

audit. However, old investment has been held by the company in its
own name.
15.
We are informed that the Company has not given any guarantee for
loans taken by others from Banks or Financial Institutions.

16.
The Company has not raised any term loan during the period under
audit.
17.
According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we

are of the opinion that there are no funds raised on short-term basis
that have been used for long - term investment.
18.
Since the Company is subsidiary of Coal India limited the question
of making preferential allotment of shares does not arise.

19.
No debentures have been issued by the company and hence the
question of creating security and / or charge in respect thereof

does not arise.
20.
The company is not a listed company, hence question of raising of
fund by public issue and its end-use does not arise.

21.
No fraud on or by the Company has been noticed during the year of

audit.
99
100
2008
2009
0.41
0.41
260.41
309.28
684.34
321.12
628.70
852.64
17.78
18.25
114.62
95.64
1705.85 1596.93
3754.06 4056.40
-2048.21 -2459.47
0.00
0.00
-500.98 -1110.50
4794.90
3488.87
1306.03
42.53
4706.47
3203.55
1502.92
43.90
1608.54
-1110.50
0.38
0.34
4920.65 5030.21
3660.27 3789.40
1260.38 1240.81
49.20
41.34
0.31
5217.34
3983.67
1233.67
39.85
404.49
427.28 331.42
323.83
276.07
269.15 269.84
338.11
1314.80
846.71 664.36
688.98
35.45
35.99
42.75
48.35
143.17
132.66 138.00
130.33
2173.98 1711.79 1446.37 1529.60
4137.63 3449.62 3987.79 5120.22
-1963.65 -1737.83 -2541.42 -3590.62
0.00
0.00
0.00
0.00
-659.54 -427.87 -1258.93 -2316.79
0.41
4831.90
3568.83
1263.07
40.63
1824.59 2324.70 3342.90

-427.87 -1258.93 -2316.79
1668.15
-659.54
2007
1361.22
-500.98
2006
2218.45 2218.45 2218.45 2218.45

0.00
0.00
0.00
0.00
-5254.47 -5143.87 -6458.31 -8567.40
0.00
0.00
0.00
0.00
708.33
672.96 656.23
689.26
2005
2218.45 2218.45
0.00
0.00
-4789.29 -5618.33
0.00
0.00
708.64
680.84
2004
NOTE : FIGURES FOR THE YEAR 2010-11, 2011-12 & 2012-13 ARE AS PER REVISED SCHEDULE VI
APPLICATION OF FUNDS :
FIXED ASSETS :
GROSS BLOCK.
LESS : DEPRECIATION.
NET BLOCK.
CAPITAL W.I.P.
INTANGIBLE ASSETS UNDER DEVELOPMENT
NON CURRENT INVESTMENTS.
DEFERRED TAX ASSETS
OTHER NON CURRENT ASSETS
OTHER LONG TERM LOANS AND ADVANCES
CURRENT ASSETS, LOANS & ADVANCES:
CURRENT INVESTMENTS.
INVENTORIES.
SUNDRY DEBTORS.
CASH & BANK BALANCE
OTHER CURRENT ASSETS.
LOANS AND ADVANCES.
SUB-TOTAL.
LESS : CURRENT LIABILITIES
NET CURRENT ASSETS.
MISC. EXPENDITURE.
TOTAL :
SOURCES OF FUNDS :
SHARE CAPITAL
CONVERSION OF LOAN INTO EQUITY
RESERVE AND SURPLUS.
INTEREST ACCRUED AND DUE.
LOAN FUNDS.
OTHER NON CURRENT LIABILITIES
LONG TERM PROVISIONS
PARTICULARS.
BALANCE SHEET AS AT 31ST. MARCH.

( in Crores).
2011
2012
2218.45
0.00
-4677.05
0.00
674.17
20.88
4670.27
2906.72
2013
453.36
746.79
947.88
33.65
146.82
2328.50
5301.42
-2972.92
0.00
-1715.27
0.03
568.72
959.20
940.99
65.83
77.59
2612.36
4999.97
-2387.61
0.00
-1105.50
0.03
622.93
2459.37
1248.74
83.28
176.23
4590.58
5548.98
-958.40
0.00
460.77
0.03
442.33
3582.13
1949.53
183.30
187.43
6344.75
5707.43
637.32
0.00
2906.72
5290.16 5197.08 5389.97 5535.55

4097.59 3988.28 4107.20 4280.72
1192.57 1208.80 1282.77 1254.83
64.80
36.91
51.28
61.32
11.28
46.22
20.21
0.28
0.21
0.18
0.15
864.20
18.34
17.68
17.43
6.57
21.04
51.26
2218.45 2218.45 2218.45

0.00
0.00
0.00
-8234.00 -8127.43 -7165.30
0.00
0.00
0.00
665.52
656.24 670.18
11.20
5.51
3634.76 4136.04 4731.93
-1715.27 -1105.50 460.77
2010
101
-679.20
-4789.30
-149.84
-5618.34
-326.38
-4462.92
-4789.30
3048.19
148.20
47.50
47.81
0.00
0.00
0.00
0.03
3291.73
2250.38
375.32
353.60
258.81
65.87
151.03
167.25
82.86
148.84
11.49
0.81
69.25
-2.24
7.77
3941.04
-649.31
-29.89
2004-05
2746.24
191.53
13.70
48.20
168.65
82.47
0.00
0.08
3250.87
2022.75
204.61
343.51
246.13
84.86
141.14
108.12
60.64
169.42
0.00
4.14
91.81
94.09
0.00
3571.22
-320.35
-6.03
2003-04
-5254.48
-5143.88
110.60
-5254.48
411.14
253.63
67.93
199.72
243.61
97.60
136.24
5.28
0.41
82.73
3.64
10.04
3672.84
115.22
2.90
-7.52
404.62
272.18
69.50
166.28
213.27
86.95
142.98
14.73
10.05
99.80
-8.96
2.68
3455.77
374.85
-2.89
-8.10
363.86
-5618.34
3518.21
186.01
22.21
45.34
0.00
0.00
16.22
0.07
3788.06
2160.87
2006-07
3417.68
227.18
99.94
51.41
0.00
0.00
34.32
0.09
3830.62
1981.69
2005-06
NOTE : FIGURES FOR THE YEAR 2010-11 & 2011-12 AND 2012-13 ARE AS PER REVISED SCHEDULE VI
PROFIT(+)/LOSS(-) FOR THE YEAR BEFORE PPA

PRIOR PERIOD ADJUSTMENT.
FRINGE BENEFIT TAX
TAX EXPENSES
- CURRENT YEAR
- DEFFERED TAX
- EARLIER YEAR
PROFIT(+)/LOSS (-) AFTER CPRA.
PROFIT & LOSS UPTO PREVIOUS YEAR
TRANSITIONAL PROVISION
BALANCE CARRIED TO BALANCE SHEET
EMPLOYEES REMUNERATION & BENEFITS.

ARREAR SALARY & WAGES
CONSUMPTION OF STORES & SPARES.
POWER & FUEL.
REPAIRS.
SOCIAL OVERHEAD.
CONTRACTUAL EXPENSES.
MISCELLANEOUS EXPENSES.
DEPRECIATION.
IMPAIRMENT
INTEREST & FINANCIAL CHARGES.
OVER BURDEN REMOVAL.
PROVISIONS.
WRITE OFF.
SALES (NET OF LEVIES).

OTHER INCOME.
ACCRETION/DECRETION.
WORKSHOP JOBS FOR OWN PURPOSE.
WAIVER OF INTEREST.
WAIVER OF APEX CHARGES.
WAIVER OF ELECTRICITY DUTY
COAL ISSUED FOR SUNDRY PURPOSES.
PARTICULARS.
-1029.93
-5143.88
-284.50
-6458.31
3187.61
204.53
-85.86
44.72
0.00
0.00
0.00
0.09
3351.09
2597.87
163.80
427.37
263.66
74.63
229.89
210.91
134.69
147.00
21.83
0.29
80.42
12.47
0.00
4364.83
-1013.74
-12.92
-3.27
-2109.09
-6458.31
0.00
-8567.40
3837.40
207.77
-11.90
44.51
0.00
0.00
0.00
0.16
4077.94
3803.75
504.89
466.61
259.25
70.95
268.09
254.87
148.51
206.86
20.96
0.07
155.86
17.43
2.76
6180.86
-2102.92
-2.78
-3.39
333.40
-8567.40
0.00
-8234.00
5227.78
348.76
123.26
50.48
0.00
0.00
0.00
0.01
5750.29
3364.35
58.81
490.96
304.79
82.82
296.40
342.00
160.16
146.69
9.51
0.01
170.35
-13.55
1.97
5415.27
335.02
-1.62
0.00
2007-08 2008-09 2009-10
PROFIT AND LOSS.

(
962.13
-8127.43
0.00
-7165.30
0.16
248.19
188.99
0.00
7642.90
962.13
0.00
0.00
1.01
164.08
87.27
22.61
6242.75
106.57
0.00
0.00
106.57
-8234.00
0.00
-8127.43
8262.09
298.62
44.32
0.00
0.00
0.00
0.00
0.00
8605.03
5217.06
0.00
574.22
382.42
61.76
79.33
481.42
208.45
200.90
2011-12
5882.60
354.37
112.35
0.00
0.00
0.00
0.00
0.00
6349.32
4042.04
0.00
539.95
376.11
57.02
180.52
410.98
176.44
184.72
2010-11
1655.54
-7165.30
0.00
-5509.76
273.13
(31.49)
8.48
(324.59)
260.92
0.00
7672.92
1898.63
(1.45)
0.00
9571.55
5300.14
0.00
649.95
463.82
60.23
117.12
672.36
261.29
203.20
9191.91
548.56
(168.92)
0.00
0.00
0.00
0.00
2012-13
in Crore).
PRODUCTION OF RAW COAL :

( MILLION TONNE)
UNDERGROUND
OPENCAST
TOTAL :
OVERBURDEN REMOVAL
( MILLION CU.MTS)
OFFTAKE (RAW COAL) :

( MILLION TONNE)
LOCO
POWER
CEMENT
FERTILIZER
COLLIERY CONSUMPTION
OTHERS
TOTAL :
MANPOWER
PRODUCTIVITY (O.M.S)
UNDERGROUND
OPENCAST
OVERALL :
1 (a)
(b)
2.
3.
4.
YEAR ENDING 31ST MARCH
102
0.45
5.30
1.10
110132
0.00
24.14
0.11
0.00
0.52
2.66
27.43
35.96
9.91
18.09
28.00
2004
0.43
5.30
1.07
105692
0.00
24.11
0.13
0.00
0.50
2.43
27.17
39.70
9.45
17.80
27.25
2005
0.45
6.61
1.29
101474
0.00
25.17
0.14
0.00
0.48
2.90
28.69
44.30
9.33
21.78
31.11
2006
0.42
7.03
1.34
98780
0.00
26.17
0.18
0.00
0.45
2.99
29.79
48.78
8.27
22.20
30.47
2007
0.43
5.04
1.07
94943
0.00
21.94
0.17
0.00
0.42
2.91
25.44
39.98
8.32
15.74
24.06
2008
OPERATIONAL STATISTICS
0.46
6.42
1.33
90470
0.00
23.69
0.15
0.00
0.41
4.01
28.26
43.07
8.39
19.74
28.13
2009
0.47
7.29
1.46
85617
0.00
25.22
0.15
0.00
0.40
3.45
29.22
49.74
8.23
21.83
30.06
2010
0.45
8.14
1.60
81128
0.00
26.21
0.15
0.00
0.38
3.00
29.74
56.25
7.37
23.43
30.80
2011
0.44
8.64
1.68
78009
0.00
24.27
0.14
0.00
0.34
6.08
30.83
60.31
6.83
23.73
30.56
2012
0.46
10.17
1.94
74276
0.00
30.02
0.14
0.00
0.30
5.38
35.84
76.45
6.85
27.05
33.90
2013
103
0.58
5.31
iii) Stock of coal (Net of excise duty) as a No. of months sale value
iv). Stock of Stores & Spares (Gross) as a No. of months

consmption (Including Stock of Medicine at Central Hospital)
0.32
-0.28
1.77
2.26
3.24
4.10
0.31
-0.20
5.32
0.72
-1.62
0.39
-2.29
STRUCTURAL RATIOS :
i). Debt : Equity.
ii). Debt : Net Worth.
2005-06
0.32
-0.23
4.61
0.96
1.41
1.80
-2.23
0.53
-1877.35 -1534.04
-3399.88 -3036.02
-3399.89 -3318.41
2004-05
TURNOVER RATIOS :
i) Capital Turnover Ratio (Net Sales/Capital Employed).
ii) Sundry Debtors(Gross) as Nos. of months :
a). Gross Sales
b). Net Sales.
0.45
-1199.95
-2570.84
CAPITAL EMPLOYED.
NET WORTH
NET WORTH AS PER BRPSE PROJECTION
LIQUIDITY RATIOS :
i) Current Ratio (Current Assets/Current Liabilities).
2003-04
PARTICULARS.
0.30
-0.23
4.59
1.01
1.29
1.65
-2.52
0.50
-1395.59
-2925.42
-3366.12
2006-07
0.30
-0.15
4.26
0.80
1.33
1.70
-1.37
0.36
-2318.43
-4239.86
-3382.32
2007-08
0.31
-0.11
4.00
0.62
1.25
1.58
-1.09
0.30
-3526.75
-6348.95
-2839.76
2008-09
0.30
-0.11
3.99
0.74
1.61
1.93
-1.67
0.44
-3135.66
-6015.55
-1968.26
2009-10
0.30
-0.11
3.70
0.84
1.76
2.13
-4.46
0.52
-1320.30
-5908.98
-1050.73
2010-11
CAPITAL EMPLOYED, NET WORTH AND FINANCIAL RATIOS.
0.30
-0.14
3.78
0.66
2.99
3.87
48.29
0.83
171.10
-4946.85
-224.94
2011-12
0.30
-0.27
3.10
0.37
3.93
5.20
4.66
1.11
1973.68
-2458.60
421.31
2012-13
( in Crores.)

BALANCE SHEET (CONSOLIDATED)
As at 31st March, 2013
( ` in Crores)
AS AT
31.03.2013
NOTES
I
(1)
EQUITY AND LIABILITIES

Shareholders Fund
a) ShareCapital
b) Reserves & Surplus
1
2
AS AT
31.03.2012
2,218.45
(4677.05)
2,218.45
(7165.30)
(2,458.60)
(2)
Non-Current Liabilities
a) Long Term Borrowing
b) Deferred Tax Liabilities
c) Other Long Term Liabilities
d) Long Term Provisions
(4,946.85)
674.17
670.18
4
5
20.88
4,670.27
5.51
4,731.93
5,365.32
(3)
Minority Interest
(4)
Current Liabilities
a) Short Term Borrowing
b) Trade Payables
c) Other Current Liabilities
d) Short Term Provisions
ASSETS
Non-Current Assets
(a) Fixed Assets
i) Tangible Assets - Gross Block
Less : Depreciation, Impairment
& Provisions
Net Carrying Value
6
7
8
9
1,766.10
80.52
2,588.69
1,272.12
Total
II
(1)
5,407.62
10A
1,772.49
72.85
2,734.10
969.54
5,707.43
5,548.98
8,614.15
6,009.75
4,272.75
4,157.09
3,160.59
3,032.15
1,112.16
ii) Intangible Assets - Gross Block

Less : Depreciation, Impairment
& Provisions
Net Carrying Value
10A
iii) Capital Work-in-Progress
10B
1,124.94
1,262.80
1,232.88
1,120.13
1,075.05
104
142.67
157.83
61.32
51.28
AS AT
31.03.2013
NOTES
iv) Intangible Assets under
Development
AS AT
31.03.2012
10C
20.21
46.22
11
0.15
864.20
51.26
17.43
0.18
(b)
(c)
(d )
(e)
Non-Current Investment
Deferred Tax Asset (Net)
Long Term Loans & Advances
Other Non-Current Assets
12
13
(2)
Current Assets
(a) Current Investments
(b) Inventories
(c ) Trade Receivables
(d) Cash & Bank Balance
(e) Short Term Loans & Advances
(f) Other Current Assets
14
15
16
17
18
19
0.03
442.33
3,582.13
1,949.53
187.43
183.30
Total
21.04
17.68
0.03
622.93
2,459.37
1,248.74
176.23
83.28
6,344.75
4,590.58
8,614.15
6,009.75
Significant Accounting Policies

33
Additional Notes on Accounts
34
The Notes referred to above form an integral part of Balance Sheet
Rakesh Sinha
Chairman-cum-Managing Director
DIN - 02186695
C. K. Dey
Director (Finance)
DIN - 03204505
V. R. Reddy
GM (Finance) /
Company Secretary
S. Roychoudhury
G. M. (Finance) (Corporate Account)
(B. K. Patra)
Partner
Membership No. : "63444"
for and on behalf of
Dutta Sarkar & Co.
Chartered Accountants.
Firm Regn. No.: 303114E

Place : Kolkata
105

STATEMENT OF PROFIT & LOSS
For the Year Ended 31st March, 2013
Notes
For the Year

ended 31.03.13
( ` in Crore)
For the Year
ended 31.03.12
INCOME
Sale of Coal, coke etc.
20
Less:- Excise Duty

Other Levies
Revenue From Operations
Other Income
21
Total Revenue
12,162.59
10,695.11
(578.00)
(410.58)
(2,392.68)
9,191.91
(2,022.44)
8,262.09
548.56
298.62
9,740.47
8,560.71
EXPENSES
Cost of Material Consumed
22
649.95
574.22
Change in inventories of finished goods work in progress

and Stock in trade
23
168.92
(44.32)
Employee benefit expenses

Power & Fuel
24
5,300.14
463.82
5,217.06
382.42
Welfare Expenses
Repairs
Contractual Expenses
25
26
27
117.12
60.23
672.36
79.33
61.76
481.42
Finance Costs
Depreciation/amortization/Impairment
28
8.48
203.20
0.16
200.90
Provisions
Write off
Overburden Removal Adjustment
29
30
260.92
-(324.59)
188.99
-248.19
Other Expenditure
31
261.29
208.45
Total Expenses
7,841.84
7,598.58
Profit/(Loss) before Prior Period, exceptional and

extraordinary items and tax
1,898.63
962.13
Prior Period Adjustment { charges/ (Incomes) }

Exceptional Items
32
Profit/(Loss) before extraordinary items and tax
1.45
1,897.18
Extraordinary Items { charges/ (Incomes) }
106
962.13
-
INCOME
Notes
Profit/(Loss) before Tax

Less :
For the Year

ended 31.03.13
1,897.18
Tax Expense
- Current year
- Deferred Tax
- Earlier years
273.13
(31.49)
-
Profit/(Loss) for the period
For the Year

ended 31.03.12
962.13
-
1,655.54
962.13
746.26
-
433.69
-
Earning per equity share (in ` )

(Face Value of ` 1000/- per share)
(1) Basic
(2) Diluted
Significant Accounting Policies
33
Additional Notes on Accounts
34
The Notes referred to above form an integral part of Profit & Loss Account.
Rakesh Sinha
DIN - 02186695
C. K. Dey
Director (Finance)
DIN - 03204505
V. R. Reddy
GM (Finance) /
Company Secretary
S. Roychoudhury
(B. K. Patra)
Partner
Dutta Sarkar & Co.

Place : Kolkata
107

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH, 2013
( ` in Crores)
31.03.2013
(a) Cash Flow from Operating Activities
Net Profit Before Taxation :
Add / Less Non Operating Expenses /
(Non Operating Incomes)
Liability Written Back
Depreciation / Impairment
Lease Rent Received
Interest Income
OBR Adjustment
Profit on Sale of Asset
Interest Paid
Provision for Loss of Asset / Surveyed Off Asset
Debit / (Credit) for Foreign Exchange Flactuation
Increase / (Decrease) in Long Tern Prov. (Excl. OBR)
31.03.2012
1,897.18
(6.62)
203.20
-(179.36)
(324.59)
(0.80)
8.48
1.95
9.86
262.93
Operating Profit before working capital changes

Decrease / (Increase) in Sundry Debtors
(1,122.76)
Decrease / (Increase) in Loans & Advances
(11.20)
Decrease / (Increase) in Current assets & Invest.
(Incl. Deposit)
(964.81)
Decrease /(Increase) in Inventories
180.60
(Decrease)/Increase in Current Liabilities
(excl. LIAB W/Back)
(108.06)
Cash Generation from Operation
Net Cash Flow from Operating Activities (A) :
(B) Cash Flow from Investing Activities
Purchases of Assets including Capital WIP
(202.94)
Adjustment in Value of Fixed Assets
11.24
Redemption of Power Bond
0.03
Lease Rent Received
-Interest Income
179.36
Profit on Sale of Fixed Asset
0.80
Net cash flow from investing activities (B)
108
(24.95)
962.13
(2.55)
200.90
(3.50)
(70.78)
248.19
(1.32)
0.16
5.30
18.50
347.70
1,872.23
742.60
1,704.73
(1500.17)
(98.64)
(60.00)
(54.21)
(2,026.23)
(154.00)
(154.00)
(11.51)
(11.51)
551.56
(332.96)
3.48
0.03
3.50
70.78
1.32
(1,161.46)
543.27
543.27
(253.85)
(253.85)
( ` in Crores)
31.03.2013
(C) Cash Flow from Financing Activities :
Proceeds / (Repayment) of Long Term Liabialities
Proceeds / (Repayment) of Long Term Borrowings
Decrease / (Increase) in other non Current Assets
Decrease / (Increase) in Long Term Loans & Advances
Interest Paid
15.37
(5.87)
0.25
0.24
(8.48)
Net Cash Flow from Financing Activities (C)

Net Increase in Cash / Cash Equivalents (A+B+C)
Cash & Cash Equivalent (Excl. Deposit more than three mths)
Opening Cash & Bank Balance
603.15
Closing Cash & Bank Balance
439.15
Rakesh Sinha
DIN - 02186695
C. K. Dey
Director (Finance)
DIN - 03204505
31.03.2012
(5.69)
(4.56)
0.66
(14.47)
(0.16)
1.51
(24.22)
1.51
(24.22)
(164.00)
265.20
(164.00)
337.95
603.15
265.20
V. R. Reddy
GM (Finance) /
Company Secretary
S. Roychoudhury
(B. K. Patra)
Partner
Dutta Sarkar & Co.

Place : Kolkata
109
NOTES TO BALANCE SHEET CONSOLIDATED
NOTE - 1
( ` Crores)
SHARE CAPITAL
AS AT
31-03-2013
AS AT
31-03-2012
2500.00
2500.00
--
--
2,500.00
2,500.00
1,039.00
1,039.00
11794500 Equity Shares of ` 1000/- each

alloted as fully paid-up consideration
received other than cash
1,179.45
1,179.45
Total
2218.45
2218.45
AUTHORISED :
250,00,000 Equity Share of ` 1000.00 each.
Issued, Subscribed & Paid up :

10390000 Equity Shares of ` 1000/each fully Paid-up in cash
Note 1 : Shares in the company held by each shareholder holding more than 5% Shares.
Name of Shareholder
Coal India Limited
No. of Shares Held

(Face value of
` 10 each)
% of Total Shares
22184497
99.99%
Note 2 : During the year there is no change in the number of shares.
110
NOTES TO BALANCE SHEET CONSOLIDATED
NOTE - 2
( ` Crores)
RESERVES & SURPLUS
AS AT
31-03-2013
AS AT
31-03-2012
832.71
832.71
RESERVES :
Capital Reserve
As per last Balance Sheet
Add: Addition during the year
Less: Adjustment During the year
Capital Redemption Reserve
Reserve for Foreign Exchange Transactions
CSR Reserve
Less: Transfer to General Reserve
General Reserve
Add: Transfer from Profit & Loss Account
Add:/ Less: Adjustment During the year
Surplus in Profit & Loss Account
Profit/(Loss) after Tax During the Year
(7,165.30)
1,655.54
(8,127.43)
962.13
Profit/(Loss) available for Appropriation
(5,509.76)
(7,165.30)
111
APPROPRIATION
Reserve for Foreign Exchange Transaction
Transfer to General Reserve
Transfer to CSR Reserve
Interim Dividend
Proposed Dividend on Equity Shares
Corporate Dividend Tax
Miscellaneous Expenditure
(to the extent not written off)
Preliminary Expenses
Pre-Operational Expenses
Total :
(4,677.05)
112
(7,165.30)
NOTES TO BALANCE SHEET (CONTD.) CONSOLIDATED :
NOTE - 3
( ` Crores)
LONG TERM BORROWING
AS AT
31-03-2013
AS AT
31-03-2012
IBRD
JBIC
Export Development Corp., Canada
Liebherr France S.A., France
155.20
151.21
Loan From Coal India Limited
518.97
518.97
Total (A+B)
674.17
670.18
CLASSIFICATION 1
Secured
Unsecured
674.17
670.18
Term Loan
CLASSIFICATION 2
Loan Guaranteed by directors & others
Particulars of Loan
Export Development Corporation, Canada
Amount in ` crores
155.20
Nature of Guarantee
GOI
Note 3.1 : Exchange Fluctuation debit of ` 9.86 cr. ( ` 18.50 crores) in respect of unsecured loan from Export
Development Corporation, Canada through CIL has been adjusted in the value of the secured loan and
correspondingly given effect in the Profit / Loss account under Note No. 31.
Note 3.2 : During the year repayment of foreigh loan of ` 5.14 crores ( ` 4.43 crores) has been made through CIL.
113
NOTE - 4
( ` Crores)
OTHER LONG TERM LIABILITIES
AS AT
31-03-2013
AS AT
31-03-2012
Shifting & Rehabilitation Fund

Opening Balance
Add: Interest from Investment of the fund
Add: Contribution Received

Less : Amount utilised
Trade Payable
Security Deposits
19.68
4.31
Others ( Specify Nature)

Total
1.20
20.88
1.20
5.51
NOTE - 5
( ` Crores)
LONG TERM PROVISIONS
AS AT
31-03-2013
AS AT
31-03-2012
For Employee Benefits

- Gratuity
2,268.99
2,271.77
- Leave Encashment
421.92
340.33
- Other Employee Benefits
258.40
-
241.22
-
For Foreign Exchange Transactions (Marked to Market)
OBR Adjustment Account
1,400.75
1,725.34
Mine Closure
217.38
153.27
For Others (Post Retirement Medical Benefit)
102.83
TOTAL
Note 5.1:
4,670.27
4,731.93
The year end liability of Gratuity, Leave encashment and other employee benefit like Gross Personal
Accident Insurance Policy, Leave Travel Concession medical benefit for retired executive, compensetion to
dependents in case of mines accidental death are valued on actuarial basis.
114
NOTE - 6
( ` Crores)
SHORT TERM BORROWING
AS AT
31-03-2013
Loan From Bank
AS AT
31-03-2012
Loans Repayable on Demand

Balance with Coal India Limited & other Subsidiaries
of Coal India Limited
1,766.10
Overdraft against Pledge of Term Deposit
1,772.49
Other Loans and Advances

Deferred Credits
Total :
1,766.10
1,772.49
CLASSIFICATION 1
Secured
Unsecured
1,766.10
1,772.49
CLASSIFICATION 2
Loan Guaranteed by directors & others
Particulars of Loan
NIL
Amount in
` crores
NIL
Nature of Guarantee
NIL
NOTE - 7
( ` Crores)
TRADE PAYABLES
AS AT
31-03-2013
AS AT
31-03-2012
Sundry Creditors For Revenue Stores
80.52
72.85
TOTAL
80.52
72.85
115
NOTE - 8
( ` Crores)
OTHER CURRENT LIABILITIES
AS AT
31-03-2013
Current Maturities of Long Term Borrowings
Term Loan From IBRD
Term Loan From JBIC
Term Loan From Export Development Corp., Canada
Term Loan From Liebherr France S.A., France
Loan From Coal India Limited
Surplus Fund from Coal India Limited
Current Account with Subsidiaries
For Capital (including Stores)
AS AT
31-03-2012
5.15
19.42
4.42
12.30
361.32
59.18
119.45
539.95
780.63
40.89
79.96
901.48
60.77
29.52
10.83
34.24
14.21
149.57
70.11
0.37
23.75
10.08
19.19
9.90
133.40
35.72
67.19
59.08
318.23
-
12.20
70.03
67.21
430.25
-
FOR EXPENSES :
Salary Wages & Allowances
Power & Fuel
Others
STATUTORY DUES :
Sales Tax/VAT**
Provident Fund & Pension Fund
Central Excise Duty
Royalty & Cess on Coal
Stowing Excise Duty
Clean Energy Cess
Other Statutory Levies
Income Tax Deducted at Source
Security Deposit
Earnest Money
Advance & Deposit from customers / others
Interest Accrued and due on Borrowings
Interest Accrued but not due on Borrowings
116
Cess Equilisation Account

Current Account with IICM
Unpaid Dividend*
Ex-Owner Account
Advance Deposit other Pre-Nationalisation
Others Liabilities
1,044.22
350.16
849.78
253.03
TOTAL
2,588.69
2,734.10
Note - 8.1 :- In the process of making payment of Cess on the annual value of coal bearing land based on the average
production of preceding two years valuing at a rate prevailing as on 1st April of each year and realisation
made from customeres on the value of despatches of Coal considering the sale price prevailing on 1st
day of April of the financial year, there remains a balance accumulating to ` 1044.22 cr. ( ` 849.78 cr.).)
which has been shown under cess equilisation A/C.
117
NOTE - 9
( ` Crores)
SHORT TERM PROVISIONS
AS AT
31-03-2013
AS AT
31-03-2012
For Employee Benefits

- Gratuity
- Leave Encashment
- PPLB
- PRP
- Other Employee Benefits
460.30
67.17
192.05
200.44
76.58
530.67
49.40
162.52
146.10
58.62
For Proposed Dividend

For Corporate Dividend Tax
Provision for Income Tax
Less : Advance Income Tax / Tax Deducted at Source
For Excise Duty on Closing Stock of Coal
For Others
273.13
20.98
20.76
2.67
21.04
1.19
1,272.12
969.54
TOTAL
Note - 9.1 :- Employee Benefit in respect of Gratuity and leave encashment includes actuarial valuation of expected
payment to be made during next one year amounting to ` 360.55 cr. and ` 58.80 cr.. respectively.
118
119
Note-10A.2 :-
NoteNote-10A.1 :-
(0.58)
(0.58)
(40.79)
29.49
1.01
30.50
1,032.59
200.29
1,232.88
1,193.15 39.73
5,389.97 186.37
(89.44)
242.60
(40.21)
4,003.93
3.38
-
97.98
14.02
0.56
(40.22)
-
155.87
10.30
103.36
0.24
0.18
469.56
3,389.19
19.08
26.22
(31.16)
30.61
8.17
4,157.09
8.30
30.11
81.68
51.19
GROSS BLOCK
As on
Addition Adj./Sales/Tr
01.04.12 during the ansfer during
period
the period
680.86
134.38
815.24
2,979.11
8.17
3,032.15
71.76
11.31
212.51
2,669.04
16.72
18.33
12.88
11.43
1,232.88 779.03
5,535.55 3,847.39
1,061.50
201.30
1,262.80
4,157.09
8.17
4,272.75
101.36
14.02
480.42
3,452.33
19.32
26.40
58.82
111.91
36.21
193.69
25.17
1.46
26.63
135.94
167.06
2.68
0.23
10.81
144.42
0.37
0.80
0.30
7.45
(38.22)
0.43
(0.03)
0.40
(82.90)
(38.62)
0.04
(38.67)
-
(7.89)
7.90
DEPRECIATION
As on
As on
31.03.13 01.04.12 during the ansfer during
period
the period
815.24
4,002.86
703.46
135.81
842.27
3,032.15
8.17
3,160.59
74.44
11.54
223.36
2,774.79
17.09
19.13
5.29
26.78
As on
31.03.13
230.14
259.81
200.06
59.71
259.81
As on
01.04.12
26.49
17.92
16.70
1.22
17.92
3.15
0.13
0.13
0.13
IMPAIRMENT LOSS
Addition
Adj./Sales/
during the Transfer
period
during the
period
259.81
277.86
216.89
60.97
277.86
As on
31.03.13
1,075.05
4,280.72
923.35
196.78
1,120.13
3,032.15
8.17
3,160.59
74.44
11.54
223.36
2,774.79
17.09
19.13
5.29
26.78
Total
Total
Depreciation/
Impairment
Loss
Crores )
1,254.83
138.15
4.52
142.67
1,112.16
26.92
2.48
257.06
677.54
2.23
7.27
53.53
85.13
157.83
1,282.77
151.67
6.16
157.83
1,124.94
1,124.94
26.22
2.71
257.05
720.15
2.36
7.89
68.80
39.76
CARRYING VALUE
As on
As on
31.03.13 31.12.12
Due to change in depreciation rate of Xerox machine from 6.33% to 10.55%, the additional depreciation charge to P & L account is 0.74 crores.
Land acquired under Coal Bearing Acquisition Act, 1957, L.A. Act abd direct purchase of tenancy land are classified as free hold land and acquisition of other land like inherited land on nationalisation,
direct transfer of Govt. land and forest land are classified as lease hold land.
Land includes certain land taken on possesion by the Company for which legal formalities in respect of title deeds etc. are pending. However, land taken on possession by the Company, for which
values are yet to be ascertained pending completion of legal formalities have not been includes.
Intangible Assets
(As on 31.03.2012)
Tangible Assets
Land
(a) Freehold
(b) Leasehold
Building/Water Supply/
Road & Culverts
Plant & Equipments
Telecommunication
Railway Sidings
Furniture & Fixtures/Office
Tools& Equipments/Electrical
Fittings/ Fire Arms
Vehicle
Aircraft
Development
Assets taken on
Nationalisation
TOTAL
Tangible Assets
(As on 31.03.2012)
Intangible Assets
Computer Software
Development
Prospecting & Boring
Total
PARTICULARS
NOTE - 10 A
FIXED ASSETS
PROVISION
120
80.19
315.06
253.69
411.90
333.88
Tangible Assets
(As on 31.03.2012)
Surveyed off Assets
Surveyed off Assets

(As on 31.03.2012)
Grand Total
Grand Total
(As on 31.03.2012)
250.75
135.24
250.75
135.24
3.27
8.71
0.20
105.89
17.17
(172.73)
(118.10)
61.37
6.57
(234.10)
(124.67)
(2.88)
(8.71)
(0.17)
(103.05)
(9.86)
411.90
429.04
315.06
321.63
96.84
107.41
3.72
6.61
78.17
18.91
296.97
360.62
253.69
315.06
43.28
45.56
0.31
2.62
36.73
5.90
5.34
1.95
3.06
1.41
2.28
0.54
0.65
(0.16)
0.05
58.31
5.15
58.31
5.16
0.00
(0.01)
(0.01)
0.01
(0.01)
360.62
367.72
315.06
321.63
45.56
46.09
0.95
2.63
36.57
5.94
Addition Adj./Sales/ As on
As on
during Transfer 31.03.13 01.04.12
the
during the
period period
Total
360.62
367.72
315.06
321.63
45.56
46.09
0.95
2.63
36.57
5.94
Crores)
61.32
61.32
2.77
3.98
41.60
12.97
51.28
51.28
51.28
51.28
3.02
3.96
38.60
5.70
As on
31.03.12
CARRYING VALUE
Total
As on
during the Transfer 31.03.13 Depreciation/ 31.03.13
period during the
Impairment
period
Loss
IMPAIRMENT LOSS
Note-Assets under lease shall be separately specified for each class of asset
Note- 10B.1:- Total provision for Tangiable Assets upto the end of the period is 46.09 crores ( 45.56 cr)
Note- 10B.2:- Full provision amounitng to 1.41 cr ( 3.06 cr) on the value of Surveyed Off Assets has been made.
96.84
Development
TOTAL
6.58
Railway Sidings
3.33
75.33
Plant & Equipments
Others
11.60
As on
As on
As on
01.04.12 during the ansfer during 31.03.13 01.04.12
period
the period
Tangible Assets
Building/Water Supply
/Road & Culverts
PARTICULARS
COST
NOTE - 10 B
CAPITAL WORK-IN-PROGRESS
121
4.11
78.58
Prospecting & Boring
TOTAL
Note 10 C. 1 :
(As on 31.03.2012)
74.69
34.72
1.01
33.71
(40.72)
(59.18)
(1.01)
(58.17)
78.58
54.12
4.11
50.01
14.43
14.39
2.73
11.66
(0.04)
(0.45)
(0.45)
18.90
17.97
1.38
16.59
33.91 Crores (
14.39
13.94
2.73
11.21
Total
(3.19)
(0.15)
(0.15)
32.36 crores)
2.26
2.15
2.15
17.97
19.97
1.38
18.59
32.36
33.91
4.11
29.80
Crores)
20.21
20.21
46.22
46.22
46.22
As on
31.03.12
CARRYING VALUE
Total
As on
during the Transfer 31.03.13 Depreciation/ 31.03.13
period during the
Impairment
period
Loss
IMPAIRMENT LOSS
As on
during Transfer 31.03.13 01.04.12
the
during the
period period
Total provision / Impairment loss upto the end of the period

under intangible Assets has been made.
44.61
74.47
Intangible Assets
PROVISION
As on
As on
As on
01.04.12 during the ansfer during 31.03.13 01.04.12
period
the period
Development
Intangible Assets
PARTICULARS
COST
NOTE - 10 C
INTANGIBLE ASSET UNDER DEVELOPMENT
NOTE - 11
NON - CURRENT INVESTMENTS - Unquoted at Cost
( ` crores)
Number of
shares/bonds/sec
urities current
Year / (previous)
year)
Face value per

shares/bonds/sec
rity current
year/(previous
year) ( ` )
As at
31.03.13
As at
31.03.12
0.07
-
0.10
-
0.08
0.08
0.15
-
0.18
-
TRADE
8.5% Tax Free Special Bonds (Fully Paid up) :
(on securitisation of Sundry Debtors)
Major State-wise Break-up
(4 Bonds of ` 1,65,000/- each)
UP
Haryana
Maharashtra
Madhya Pradesh
Gujarat
West Bengal
Others
Equity Shares in Joint Venture Companies
( with name of joint ventures)
Equity Shares in Subsidiaries Companies
( with name of Subsidiaries)
Others (in Co-operative Shares)
i) 500 B class shares of ` 1000/- each in Coal Mines
Officers Co operative credit Society Ltd.
` 0.05
ii) 1000 D class shares of ` 100/- each in Dishergarh
colly Workers central co-opt store Ltd.
` 0.01
iii) 4000 shares of ` 25/- each in the Mugma coalfield
colly Workers central co-opt store Ltd.
` 0.01
iv) 500 B class shares of ` 100/- each in Sodepur colly
Employees co-opt credit society Ltd. & 500 B class
shares of ` 100 each in Dhenomain colly. Employees
co-opt credit society Ltd.
` 0.01
NON-TRADE
7.55% Non Convertible IRFC Tax Free Bonds
2021 Series
Total :
Aggregate of Quoted Investment
Aggregate of Unquoted Investment
Market Value of Quoted Investment
Provision made for diminution in the value of Investment
122
NOTE - 12
( ` Crores)
LONG TERM LOANS & ADVANCES
AS AT
31-03-2013
AS AT
31-03-2012
LOANS
ADVANCES
For Capital
- Secured considered goods
- Unsecured considered goods
- Doubtful
Less : Provision for Doubtful Loans and Advances
For Revenue
- Doubtful
Security Deposits
- Doubtful
Deposit for P&T, Electricity etc.
- Doubtful
123
10.11
2.68
12.79
2.68
10.11
7.77
2.68
10.45
2.68
7.77
31.17
3.60
34.77
3.60
31.17
8.76
2.70
11.46
2.70
8.76
3.10
0.66
3.76
0.66
3.10
2.64
0.66
3.30
0.66
2.64
0.41
0.45
0.86
0.45
0.41
0.40
0.45
0.85
0.45
0.40
LOAN TO EMPLOYEES & OTHERS

For House Building*
- Doubtful
1.16
1.16
1.35
1.35
For Motor Car and Other Conveyance*

- Doubtful
0.02
0.02
For Others
- Doubtful
5.29
5.29
0.12
0.12
5.29
0.12
51.26
21.04
51.26
21.04
Loan To Subsidiaries
- Doubtful
TOTAL
Note
CLOSING BALANCE
CURRENT
PERIOD
Due by the Companies in which directors of

the company is also a director/member
( With name of the Companies)
Due by the parties in which the Director(s) of
company is /are interested
MAXIMUM AMOUNT DUE

AT ANY TIME DURING
PREVIOUS
PERIOD
CURRENT
PERIOD
PREVIOUS
PERIOD
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
124
NOTE - 13
( ` Crores)
OTHER NON-CURRENT ASSETS
Long Term Trade Receivable

- Doubtful
Less Provision for bad and doubtful Trade Receivable
Exploratory Drilling Work
- Doubtful
Less Provision for bad and doubtful
Other Receivables
- Doubtful
Less Provision for bad and doubtful Receivables
TOTAL
AS AT
31-03-2013
AS AT
31-03-2012
17.43
5.33
22.76
5.33
17.43
17.68
5.34
23.02
5.34
17.68
17.43
17.68
Note :
CLOSING BALANCE
CURRENT
PERIOD

Note - 13.1 :
PREVIOUS
PERIOD
MAXIMUM AMOUNT DUE

AT ANY TIME DURING
CURRENT
PERIOD
PREVIOUS
PERIOD
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
Other Receivable includes balance claim of ` 20.86 cr. ( ` 21.11 cr) against total claim of
` 47.67 cr. lodged with Director of Electricity, Govt. of West Bengal in support of relief / concession
required for revival of ECL accordingly to BIFRs sanctioned scheme. Against the above claim
10% provision has been made considering its doubtful recovery.
125
NOTE - 14
CURRENT INVESTMENTS - Quoted / Unquoted at Cost
Number of
shares/bonds/sec
urities current
Year / (previous)
( ` crores)
Face value per

Market Value/NAV Per
shares/bonds/sec Shares/bonds/security
rity current
current year /
year/(previous
(previous year)
year)
year) (` )
(` )
As at
As at
31.03.13
31.03.12
NON-TRADE
Mutual Fund Investment
( with name of mutual fund )
7.55% Non Convertible IRFC Tax Free Bonds
2021 Series
UP
0.03
0.03
Total :
0.03
0.03
TRADE
8.5% Tax Free Special Bonds (Fully Paid up) :
(on securitisation of Sundry Debtors)
Major State-wise Break-up
(2 Bonds of ` 1,65,000/- each)
Aggregate of Quoted Investment

Aggregate of Unquoted Investment
Market Value of Quoted Investment
Market Value of Unquoted Investment
Provision made for diminution in the value of Investment
126
NOTE - 15
( ` Crores)
INVENTORIES
AS AT
31-03-2013
AS AT
31-03-2012
Stock of Coal
Coal Under Development
Less : Provision
309.74
1.76
478.41
1.76
Stock of Coal (Net)
307.98
476.65
Stock of Stores & Spares (at cost)

Stores -in -transit
Less : Provision
167.24
0.02
47.17
174.02
5.79
46.98
Net Stock of Stores & Spares (at cost)
120.09
132.83
Workshop Jobs :
Work-in-progress and Finished Goods
Less : Provision
13.83
0.20
12.83
0.23
Net Stock of Workshop Jobs
13.63
12.60
Press :
Work-in-Progress and Finished Goods
Stock of Medicine at Central Hospital
0.63
0.85
Prospecting & Boring/ Development Exp./Coal

Blocks meant for Sale
442.33
622.93
Total ( A to F )
Note - 15.1 :
Perpetual verification of inventories has been carried our during the year except in certain areas.
Closing Stock of stores at Central and Area Stores have been valued at weighted average cost.
Provision at the end of the period of ` 47.17cr (` 46.98 cr) is consisting of the following:
a) Provision for quantitative discrepancies noticed between Bin Cards and Stores Ledger upto
March,2013 ` 2.32 cr ( ` 2.32 cr)
b) Provision for unserviceable, damaged and obsolete store ` 10.62 cr (` 11.66 cr.)
.)
c) Prov for non-moving stores & spares ` 34.23 crore ( ` 33.00 crore. )
127
SCHEDULES TO BALANCE SHEET (CONTD.) CONSOLIDATED

ANNEXURE TO NOTE - 15
(Qty. in Lakh tonnes) (value in lakh
`)
TABLE - A
Reconciliation of closing stock adopted in Account with Book stock as at the end of the year:
OVERALL STOCK
Qty.
Value
NON-VENDABLE STOCK VENDABLE STOCK

Qty.
Value
Qty.
Value
1. (A) Opening stock as on 01.04.12
45.19
52409.92
4.71
4656.14
40.48
47753.78
( B) Adjustment in Opening Stock
0.00
45.19
86.66
52496.58
0.00
4.71
0.00
4656.14
0.00
40.48
86.66
47840.44
2.
Production for the year
339.11
913656.34
0.00
0.00
339.11
913656.34
3.
Sub-Total ( 1+2)
384.30
966152.92
4.71
4656.14
379.59
961496.78
355.42
919190.10
0.00
0.00
355.45
919190.10
(B) Coal feed to Washeries
0.00
0.00
0.00
0.00
0.00
0.00
(C) Own Consumption
3.03
11333.15
0.00
0.00
3.03
11333.15
358.45
930523.25
0.00
0.00
358.45
930523.25
5. Derived Stock
25.85
35629.67
4.71
4656.14
21.14
30973.53
6. Measured Stock
25.34
34953.87
4.71
4656.14
20.63
30297.73
7. Difference (5-6)
0.51
675.80
0.51
675.80
(A) Excess within 5%
0.01
16.81
0.00
0.00
0.01
16.81
(B) Shortage within 5%
0.52
692.60
0.00
0.00
0.52
692.60
(C) Excess beyond 5%
0.00
0.00
0.00
0.00
0.00
0.00
(D) Shortage beyond 5%
0.00
0.01
0.00
0.00
0.00
0.01
25.85
35629.66
4.71
4656.14
21.14
30973.52
4.
Off- Take for the year :

(A) Outside Despatch
TOTAL(A)
8. Break-up of Difference:
9. Closing stock adopted in A/c.

(6-8A+8B)
128
Less: Non-vendable Coal
Adjusted Opening Stock ( Vendable)
Production
129
-
Coal feed to Washeries
Own Consumption
(B)
(C)
-
Closing Stock **
Less: Shortage
Closing Stock **(Note - 15)
Less: Seized Coal
Closing Stock **(Note - 23)
(A) Outside Despatch
Offtake*
Raw Coal
Coking
Qty
Value
Opening Stock (Audited)
Summary of Closing Stock of Coal
Should Form Part of Notes to Accounts
21.14
21.14
3.03
355.42
339.11
40.48
4.71
45.19
Non-Coking
Qty
30,706.41
267.11
30,973.52
0.01
30,973.53
11,333.15
919,190.10
913,656.34
47,840.44
4,656.14
52,496.58
Washed / Deshaled Coal

Coking
Non-Coking
Value
Qty
Value
Qty
Value
Table : B
Qty
Value
Other Products
21.14
21.14
3.03
355.42
339.11
40.88
4.71
45.19
Qty
Total
30,706.41
267.11
30,973.52
0.01
30,973.53
11,333.15
919,190.10
913,656.34
47,840.44
4,656.14
52,496.58
Value
NOTE - 16
( ` Crores)
TRADE RECEIVABLES
AS AT
31-03-2013
Debts outstanding for a period exceeding six months
from the due date
- Doubtful
Less Provision for bad and doubtful trade receivables
Other Debts
- Doubtful
Less Provision for bad and doubtful trade receivables
Total
AS AT
31-03-2012
620.98
353.19
974.17
353.19
620.98
103.64
122.08
225.72
122.08
103.64
2,961.15
46.20
3,007.35
46.20
2,961.15
2,355.73
83.59
2,439.32
83.59
2,355.73
3,582.13
2,459.37
Notes :
CLOSING BALANCE
CURRENT
PERIOD

Note 16.1 :-
MAXIMUM AMOUNT DUE

AT ANY TIME DURING
PREVIOUS
PERIOD
CURRENT
PERIOD
PREVIOUS
PERIOD
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
Adjustment of an amount of ` 101.35 crores (Previous period ` 167.99 crores) for grade
slippage has been made after reconciliation, settlement and issuing credit notes to parties during
the period.
Note 16.2 :- The details of provision are as under :Opening Provision

Less: Settled/Written off/adjusted against opening debtors
Add: New provision during the year
Less: Written back from opening provision
Closing Balance
130
` in crore
31.03.13
205.67
---272.75
79.03
399.39
` in crore
31.03.12
85.42
---236.69
116.44
205.67
NOTE - 17
( ` Crores)
CASH & BANK BALANCE
AS AT
31-03-2013
AS AT
31-03-2012
8.00
429.58
-
361.44
230.66
-
In Account with Banks outside India
Remittance - in transit
Cheques, Drafts and Stamps on hand
Cash on hand
0.12
0.73
0.72
3.08
7.14
0.83
Deposit with Scheduled Banks under Shifting and Rehabilitation

Fund Scheme with maturity upto 3 months
Balances with Scheduled Banks

- SBI Dividend Account (unpaid/unclaimed dividend account)
- In Deposit Accounts with maturity upto 3 months
- In Current Accounts
- In Cash Credit Accounts
Balances with Non - Scheduled Banks
Other Bank Balances

Balances with Scheduled Banks
- In Deposit Accounts with maturity more than 3 months
1,510.38
645.59
Deposit with Scheduled Banks under Shifting and Rehabilitation

Fund Scheme with maturity more than 3 months
Deposit with Scheduled Banks under Mine Closure Plan Scheme*
Total
Maximum amount outstanding with Banks other than Scheduled
Banks at any time during the year
Deposit for more than 1 (one) year from the date of purchase
131
1,949.53
1,248.74
nil
nil
nil
nil
NOTE - 18
( ` Crores)
SHORT TERM LOANS & ADVANCES
AS AT
31-03-2013
AS AT
31-03-2012
LOANS
ADVANCE
( Recoverable in cash or in kind or for value to be received)
ADVANCE TO SUPPLIERS
For Revenue
- Doubtful
Less Provision for bad and doubtful Advance
67.82
2.42
70.24
2.42
67.82
70.19
2.35
72.54
2.35
70.19
67.82
70.19
22.51
22.51
22.51
13.36
13.36
13.36
19.32
19.32
18.98
0.12
19.10
0.12
18.98
41.49
18.55
0.12
18.67
0.12
18.55
51.23
ADV PAYMENT OF STATUTORY DUES

SalesTax
- Doubtful
Advance Income Tax / Tax Deducted at Source

Less : Provision for Income Tax
Others
- Doubtful
132
Advance to Employees
- Doubtful
Current Account with Coal India Limited & other
Subsidiaries of Coal India Limited
Loan Account with Subsidiaries
- Doubtful
Less Provision for bad and doubtful Loan
Claims Receivables
- Doubtful
Less Provision for bad and doubtful claim receivables
Prepaid Expenses
TOTAL
77.53
2.94
80.47
2.94
77.53
54.05
2.95
57.00
2.95
54.05
0.13
2.04
2.17
2.04
0.13
0.46
78.12
187.43
0.15
2.05
2.20
2.05
0.15
0.61
54.81
176.23
Note :
CLOSING BALANCE
CURRENT
PERIOD

PREVIOUS
PERIOD
MAXIMUM AMOUNT DUE

AT ANY TIME DURING
CURRENT
PERIOD
PREVIOUS
PERIOD
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
133
NOTE - 19
( ` Crores)
OTHER CURRENT ASSETS
AS AT
31-03-2013
AS AT
31-03-2012
140.23
-
52.21
-
0.03
0.03
0.03
0.03
Deposit for Customs Duty, Port Charges etc.

Deposit with Coal India Limited
Deposit for Royalty, Cess & Sales Tax
Less: Provision
Others
Less: Provision
0.67
3.69
-
0.68
7.72
-
Amount Receivable from Govt of India for transactions on behalf

of Ex-Coal Board
Less: Provision
38.79
0.11
38.68
22.74
0.10
22.64
183.30
83.28
Interest Accrued
- Investment
- Deposit with Banks
- Others
Ex Owners Account
Other Advances
Less: Provision
DEPOSITS
Other Receivables
Less: Provision
TOTAL
134
NOTES TO PROFIT & LOSS ACCOUNT CONSOLIDATED :
NOTE - 20
( ` Crores)
REVENUE FROM OPERATIONS
For the period

ended
31-03-2013
For the period

ended
31-03-2012
12,162.59
10,695.11
578.00
410.58
Less : Other Levies

Royalty
Cess on Coal
Stowing Excise Duty
Central Sales Tax
Clean Energy Cess
State Sales Tax/VAT
Other Levies
254.93
1,542.89
35.54
127.40
177.71
244.93
9.28
185.75
1,327.19
30.49
108.85
152.45
217.71
-
TOTAL LEVIES
2,392.68
2,022.44
Revenue From Operations (NET SALES*)
9,191.91
8,262.09
Sales of Coal, coke etc *

Less: Excise Duty
Note 20.1 :-
Sale is net of deduction for grade slippage for current period and earlier period. Sales for the period
have been reduced by ` 101.35 cr.( ` 161.70 cr.) due to credit note issued to the parties for grade
slippage.
Note 20.2 :-
Sales includes ` 559.87 cr. ( ` 626.05 cr.) as incentive under fuel supply agreement with various power
sector for achieving despatch target.
No: 20.2 :-
Sales includes e-auction quantity of 41.85 LT (39.63 LT) and e-auction gain of ` 390.72 crores
( ` 479.34 crores)
135
NOTES TO PROFIT & LOSS ACCOUNT CONSOLIDATED :
NOTE - 21
( ` Crores)
OTHER INCOME
For the period

ended
31-03-2013
Income From Long Term Investments
Dividend from Joint Ventures

Dividend from Subsidiaries
Interest from
Government Securities ( 8.5% Tax Free Special Bonds) ( Trade )
7.55% Non Convertible IRFC Tax Free Bonds 2021 Series
(Non-Trade)
For the period

ended
31-03-2012
0.01
0.01
Income From Current Investments

Dividend from Mutual Fund Investments
Interest from
Government Securities ( 8.5% Tax Free Special Bonds) ( Trade )
7.55% Non Convertible IRFC Tax Free Bonds 2021 Series (Non-Trade)
Income From Others

Interest (Gross)
From Deposit with Banks
From Loans and Advances to Employees
From Income Tax Refunds
From Coal India
Others
179.36
0.13
70.58
0.19
Central Excise Duty on closing of coal

Apex Charges
Subsidy for Sand Stowing & Protective Works
Profit on Sale of Assets
Recovery of Transportation & Loading Cost
Gain on Foreign exchange Transactions
Exchange Rate Variance
Lease Rent
Liability Write Backs
Guarantee Fees from Subsidiaries
Other non-operating Income
0.93
41.80
0.80
136.85
6.62
182.06
34.17
1.32
110.93
3.50
2.55
75.37
TOTAL
548.56
298.62
Note : Other non-operating includes sales compensation of ` 106.22 crores ( ` 1.37 crores)
136
NOTES TO PROFIT & LOSS ACCOUNT (CONTD.) CONSOLIDATED :
NOTE - 22
( ` Crores)
COST OF MATERIAL CONSUMED
For the period

ended
31-03-2013
Explosives
For the period

ended
31-03-2012
115.92
93.27
4.23
4.44
POL
210.88
186.13
HEMM Spares
134.36
131.03
Other Consumable Stores & Spares
184.56
159.35
TOTAL
649.95
574.22
Timber
137
NOTE - 23
( ` Crores)
CHANGE IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN

TRADE
For the period

ended
31-03-2013
For the period

ended
31-03-2012
Opening Stock of Coal / Coke

Add : Adjustment of Coal / Coke
Less : Deterioration of Coal/Coke
Total (1)
477.01
431.32
1.76
475.25
1.71
429.61
Less : Closing Stock of Coal/Coke

Less: Deterioration of Coal/Coke
Total (2)
307.06
1.76
305.30
477.01
1.76
475.25
A) Change in Inventory of Closing Stock (1-2)
169.95
(45.64)
Opening Stock of Workshop made finished goods and WIP

Less: Provision
Total (3)
12.83
0.23
12.60
14.12
0.20
13.92
Closing Stock of Workshop made finished goods and WIP

Less: Provision
Total (4)
13.83
0.20
13.63
12.83
0.23
12.60
B) Change in Inventory of Closing Stock of workshop (4-3)
(1.03)
1.32
Press Opening Job

i)Finished Goods
ii)Work in Progress
Press Closing Job
i)Finished Goods
ii)Work in Progress
Total (5)
Total (6)
C) Change in Inventory of Closing Stock of Press Job made

finished goods and WIP (5-6)
Total Change in Inventory of Stock( A+B+C )

138
168.92
(44.32)
NOTE - 24
( ` Crores)
EMPLOYEE BENEFIT EXPENSES
For the period

ended
31-03-2013
Salary, Wages, Allowances & Benefits
Exgratia
For the period

ended
31-03-2012
3,758.51
218.66
3,359.64
193.67
Contribution to P.F. & Other Funds
54.34
430.13
29.64
332.53
Gratuity
Leave Encashment
375.20
187.06
912.32
103.79
6.25
1.42
26.59
2.83
1.56
24.68
7.55
0.37
7.60
0.38
0.11
105.96
4.57
0.09
92.26
4.71
66.55
56.87
151.36
--
5,300.14
5,217.06
PRP
VRS
Workman Compensation
Medical Expenses
Grants to Schools & Institutions
Sports & Recreation
Canteen &Creche
Power - Township
Hire Charges of Bus, Ambulance eyc.
Other Employee Benefits
Post Retirement Medical Benefit
TOTAL
Note 24.1:
Salary, wages, allowances & benefits includes ` 21.60 Crore provision made for Superannuation
Benefit to Executive.
139
NOTE - 25
( ` Crores)
WELFARE EXPENSES
For the period

ended
31-03-2013
Medical Expenses for retired employees
For the period

ended
31-03-2012
39.87
3.85
CSR Expenses
--
9.11
Environmental Expenses
0.81
1.75
0.09
76.35
0.46
64.16
Tree Plantation
Other Expenses
TOTAL
117.12
79.33
NOTE - 26
( ` Crores)
REPAIRS
For the period

ended
31-03-2013
Building
For the period

ended
31-03-2012
1.64
1.50
55.42
55.98
Others
3.17
4.28
TOTAL
60.23
61.76
Plant & Machinery
140
NOTE - 27
( ` Crores)
CONTRACTUAL EXPENSES
For the period

ended
31-03-2013
Transportation Charges :
- Sand
- Coal & Coke
- Stores & Others etc.
Wagon Loading
Hiring of P&M
Other Contractual Work
TOTAL
For the period

ended
31-03-2012
29.41
32.23
200.32
139.45
1.26
1.13
1.91
4.05
379.24
247.08
60.22
57.48
672.36
481.42
NOTE - 28
( ` Crores)
FINANCE COSTS
For the period

ended
31-03-2013
INTEREST EXPENSE
For the period

ended
31-03-2012
Deferred Payments
Bank Overdraft / Cash Credit
Interest on IBRD & JBIC Loan
CIL Fund Loan Interest
Interest to Subsidiaries
Others
--
8.48
0.16
TOTAL(A)
8.48
0.16
Guarantee Fees on (IBRD & JBIC) Loan

Other Expenses / Bank Charges *
TOTAL(B)
TOTAL (A+B)
8.48
0.16
OTHER BORROWING COSTS
141
NOTE - 29
PROVISIONS
For the period

ended
31-03-2013
( ` Crores)
For the period

ended
31-03-2012
(A) PROVISION MADE FOR

Doubtful debts
Doubtful advances & Claims
Foreign exchange Transaction
Stores & Spares
Reclamation of Land/Mine Closure Expenses
Surveyed of Fixed Assets/Capital WIP
Others
272.75
0.99
2.41
64.11
2.13
236.70
1.36
5.07
57.42
5.41
-
TOTAL (A)
342.39
305.96
(B) PROVISION WRITTEN BACK

Doubtful debts
Doubtful advances & Claims
Foreign exchange Transaction
Stores & Spares
Reclamation of Land/Mine Closure Expenses
Surveyed of Fixed Assets/Capital WIP
Others
79.03
0.04
2.22
0.18
-
116.44
0.16
0.26
0.11
-
TOTAL (B)
81.47
116.97
260.92
188.99
TOTAL ( A-B )
Note - 29.1 :-
Provision for mine closure expenses of ` 64.11 crores ( ` 57.42 crores) has been taken being the
pro-rata cost of total mine closure expenditure of all operating mines being determined as per guideline
issued by the Ministry of Coal, GOI.
NOTE - 30
WRITE OFF
( ` Crores)
For the period

ended
31-03-2013
For the period

ended
31-03-2012
Doubtful debts
Doubtful advances
Others
TOTAL
142
NOTE - 31
OTHER EXPENSES
For the period

ended
31-03-2013
Travelling expenses
- Domestic
- Foreign
Training Expenses
Telephone & Postage
Advertisement & Publicity
Freight Charges
Demurrage
Donation/Subscription
Security Expenses
Service Charges of CIL
Hire Charges
CMPDI Expenses
Legal Expenses
Bank Charges
Guest House Expenses
Consultancy Charges
Under Loading Charges
Loss on Sale/Discard/Surveyed of Assets
Auditors Remuneration & Expenses
- For Audit Fees
- For Taxation Matters
- For Company Law Matters
- For Management Services
- For Other Services
- For Reimbursement of Expenses
Rehabilitation Charges
Royalty & Cess
Central Excise Duty
Rent
Rates & Taxes
Insurance
Loss on Exchange Rate Variance
Lease Rent
Rescue/Safety Expenses
Dead Rent/Surface Rent
Siding Maintenance Charges
Land/Crops Compensation
Misceleneous Expenses
TOTAL
For the period

ended
31-03-2012
11.47
0.19
2.22
1.96
3.29
0.02
0.47
-57.03
14.35
9.69
0.14
2.04
1.27
3.13
0.02
1.39
0.17
52.76
14.17
1.30
0.18
0.78
0.64
4.80
-
1.37
0.33
0.76
0.34
5.58
-
0.22
0.02
0.12
1.70
0.12
1.65
--2.61
0.05
9.86
1.92
31.78
3.11
0.01
109.42
0.19
0.01
1.22
0.05
1.62
3.27
0.03
1.15
0.11
18.50
1.56
0.32
2.60
0.01
84.65
261.29
208.45
Note 31.1 : Dead Rent / Surface Rent includes Land revenue of ` 27.57 crores.
143
( ` Crores)
NOTE - 32
( ` Crores)
PRIOR PERIOD ADJUSTMENT
For the period

ended
31-03-2013
(A) Expenditure
For the period

ended
31-03-2012
Sale of Coal & Coke

Stock of Coal & Coke
Other Income
Consumption of Stores & Spares
Employees Remuneration & Benefits
Power & Fuel
Welfare Expenses
Repairs
Other Expenditure
Interest and other financial charges
Depreciation
10.56
TOTAL (A)
10.56
Sale of Coal & Coke

Stock of Coal & Coke
Other Income
Consumption of Stores & Spares
Employees Remuneration & Benefits
Power & Fuel
Welfare Expenses
Repairs
Other Expenditure
Interest and other financial charges
Depreciation
9.11
-
TOTAL (B)
9.11
TOTAL ( A-B )
1.45
(B) Income
144
NOTES - 33
A.
SIGNIFICANT ACCOUNTING POLICIES
1.0
Accounting Convention:
Financial statements are prepared under the historical cost convention and on accrual basis of
accounting and going concern concept, in accordance with the generally accepted accounting principles
in India and the relevant provisions of the Companies Act, 1956 including accounting standards notified
there under, except otherwise stated.
2.0
Subsidies / Grants from Government:
2.1
Subsidies / Grants on capital account are deducted from the cost of respective assets to which they
relate. The unspent amount at the Balance Sheet date, if any, is shown as current liabilities.
2.2
Subsidies / Grants on revenue account are credited to Statement of Profit & Loss under the head- Other
Income and the relevant expenses are debited to the respective heads. The unspent amount at the
Balance Sheet date, if any, is shown as current liabilities.
2.3*
Subsidies / Grants from Government received as an implementing agency
2.3.1*
Certain Grant / Funds received under S&T, PRE, EMSC, CCDA etc as an implementing agency and used
for creation of assets are treated as Capital Reserve and depreciation thereon is debited to Capital
Reserve Account. The ownership of the asset created through grants lies with the authority from whom
the grant is received.
2.3.2*
Grant / Funds received as Nodal/Implementing Agency are accounted for on the basis of receipts and
disbursement.
3.0
Fixed Assets:
3.1
Land:
Value of land includes cost of acquisition and cash rehabilitation expenses and resettlement cost incurred
for concerned displaced persons. Other expenditure incurred on acquisition of land viz. compensation in
lieu of employment etc. are, however, treated as revenue expenditure.
3.2
Plant & Machinery:

Plant & Machinery includes cost and expenses incurred for erection / installation and other attributable
costs of bringing those assets to working conditions for their intended use.
3.3
Railway Siding:
Pending commissioning, payments made to the railway authorities for construction of railway sidings are
shown in Note 12 Long Term Loans & Advances under Advances for Capital.
145
3.4
Development:
Expenses net of income of the projects / mines under development are booked to Development Account
and grouped under Capital Work-in-Progress till the projects / mines are brought to revenue account.
Except otherwise specifically stated in the project report to determine the commercial readiness of the
project to yield production on a sustainable basis and completion of required development activity during
the period of constructions, projects and mines under development are brought to revenue considering the
following criteria:
(a) From beginning of the financial year immediately after the year in which the project achieves
physical output of 25% of rated capacity as per approved project report, or
(b) 2 years of touching of coal, or
(c) From the beginning of the financial year in which the value of production is more than total
expenses,
- Whichever event occurs first.
4.0
Prospecting & Boring and other Development Expenditure:

The cost of exploration and other development expenditure incurred in one Five year plan period will be
kept in Capital work-in-progress till the end of subsequent two Five year plan periods for formulation of
projects, before it is written-off, except in the case of Blocks identified for sale or proposed to be sold to
outside agency which will be kept in inventory till finalisation of sale.
5.0
Investments:
Current investments are valued at the lower of cost and fair value as at the Balance Sheet date. Investments
in mutual fund are considered as current investments. Non-Current investments are valued at cost.
6.0
6.1
Inventories:
Book stock of coal / coke is considered in the accounts where the variance between book stock and
measured stock is upto +/- 5% and in cases where the variance is beyond +/- 5% the measured stock is
considered. Such stock are valued at net realisable value or cost whichever is lower.
6.1.1
Coal & coke fines are valued at lower of cost or net realisable value.
6.1.2
Slurry (coking/semi-coking), middling of washeries and by products are valued at net realisable value.
6.2
Stores & Spares :
6.2.1
The closing stock of stores and spare parts has been considered in the accounts as per balances appearing
in priced stores ledger of the Central Stores and as per physically verified stores lying at the collieries/
units.
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 /
146
drilling camps/ consuming centres, initially charged off, are valued at issue price of Area Stores, Cost /
estimated cost. Workshop jobs including work-in-progress are valued at cost.
6.2.3
Stores & spare parts include loose tools.
6.2.4
Provisions are made at the rate of 100% for unserviceable, damaged and obsolete stores and at the rate
of 50% for stores & spares not moved for 5 years.
6.3
Stock of stationery (other than lying at printing press), bricks, sand, medicine (except at Central Hospitals),
aircraft spares and scraps are not considered in inventory.
7.0
Depreciation:
7.1.
Depreciation on fixed assets is provided on straight line method at the rates and manner specified in
Schedule XIV of the Companies Act, 1956 (as amended) except for telecommunication equipment and
photocopying machine, which are charged at higher rates on the basis of their technically estimated life,
as follows :Telecommunication equipment
:-
15.83% p.a. and 10.55% p.a.
Photocopying machine
:-
10.55% p.a.
Depreciation on Earth Science Museum and high volume samplers and respiratory dust are charged
@5.15% and 33.33% respectively on the basis of their technically estimated life.
Further, depreciation on certain equipments /HEMM is charged over the technically estimated life at
higher rates viz. 11.88%; 13.57% and 15.83% as applicable.
Depreciation on SDL and LHD (equipments) are charged @19% p.a. and @15.83% p.a. respectively on
the basis of technical estimation.
Depreciation on the assets added / disposed off during the year is provided on pro-rata basis with reference
to the month of addition / disposal, except on those assets attracting 100% depreciation p.a. (SLM
basis), which are fully depreciated in the year of their addition. Assets attracting 100% depreciation are
taken out from the Assets after expiry of two years following the year in which these are fully depreciated.
7.2
Value of land acquired under Coal Bearing Area (Acquisition & Development) Act, 1957 is amortised on
the basis of the balance life of the project. Value of
leasehold land is amortised on the basis of lease
period or balance life of the project whichever is earlier.

7.3
Prospecting, Boring and Development expenditure are amortised from the year when the mine is brought
under revenue in 20 years or working life of the project whichever is less.
8.0
Impairment of Asset:
Impairment loss is recognised wherever the carrying amount of an asset is in excess of its recoverable
amount and the same is recognized as an expense in the statement of profit and loss and carrying
amount of the asset is reduced to its recoverable amount.
147
Reversal of impairment losses recognised in prior years is recorded when there is an indication that the
impairment losses recognised for the asset no longer exist or have decreased.
9.0
Foreign Currency Transactions:
9.1
Balance of foreign currency transactions is translated at the rates prevailing on the Balance Sheet date
and the corresponding
effect is given in the respective accounts. Transactions completed during the
period are adjusted on actual basis.

9.2
Transactions covered by cross currency swap options contracts to be settled on future dates are recognised
at the rates prevailing on the Balance Sheet date, of the underlying foreign currency. Effects arising out
of such contracts are taken into accounts on the date of settlement.
10.0
Retirement benefits / other employee benefits:

a) Defined contributions plans:
The company has defined contribution plans for payment of Provident Fund and Pension Fund benefits
to its employees. Such Provident Fund and Pension Fund are maintained and operated by the Coal
Mines Provident Fund (CMPF) Authorities. As per the rules of these schemes, the company is required
to contribute a specified percentage of pay roll cost to the CMPF Authorities to fund the benefits.
b) Defined benefits plans:
The liability on the Balance Sheet date on account of gratuity and leave encashment is provided for on
actuarial valuation basis by applying projected unit credit method. [Further the company has created
a Trust with respect to establishment of Funded Group Gratuity (cash accumulation) Scheme through
Life Insurance Corporation of India. Contribution is made to the said fund based on the actuarial
valuation.]**
c) Other employee benefits:
Further liability on the Balance Sheet date of certain other employee benefits viz. benefits on account
of LTA/ LTC; Life Cover Scheme, Group Personal Accident Insurance Scheme, Settlement Allowance,
Retired Executive Medical Benefit Scheme and compensation to dependants of deceased in mines
accidents etc. are also valued on actuarial basis by applying projected unit credit method.
11.0
Recognition of Income and Expenditure:

Income and Expenditure are generally recognised on accrual basis and provision is made for all known
liabilities.
11.1
Sales
a) Revenue in respect of sales is recognised when the property in the goods with the risks and rewards
of ownership are transferred to the buyer.
148
b) Sale of coal are net of statutory dues and accepted deduction made by customer on account of
quality of coal.
c) The revenue recognition is done where there is reasonable certainty of collection. On the other hand,
revenue recognition is postponed in case of uncertainty as assessed by management.
11.2
Dividend
Dividend income is recognised when right to receive is established.
12.0
Borrowing Costs:
Borrowing Cost directly attributable to the acquisition or construction of qualifying assets is capitalised.
Other borrowing costs are recognised as expenses in the period in which they are incurred.
13.0
Taxation:
Provision of current income tax is made in accordance with the Income Tax Act., 1961. Deferred tax
liabilities and assets are recognised at substantively enacted tax rates, subject to the consideration of
prudence, on timing difference, being the difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more subsequent period.
14.0
Provision:
A provision is recognised when an enterprise has a present obligation as a result of past event; it is
probable that an outflow of resources embodying economic benefit will be required to settle the obligation,
in respect of which a reliable estimate can be made. Provisions are not discounted to present value and
are determined based on best estimate required to settle the obligation at the balance sheet date.
15.0
Contingent Liability:
Contingent liability is a possible obligation that arises from past events and the existence of which will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the enterprise or a present obligation that arises from past events but is not recognised
because it is not probable that an outflow of resources embodying economic benefit will be required to
settle the obligations or reliable estimate of the amount of the obligations can not be made.
Contingent liabilities are not provided for in the accounts and are disclosed by way of Notes.
16.0
Overburden Removal (OBR) Expenses :

In open cast mines with rated capacity of one million tonnes per annum and above, cost of OBR is
charged on technically evaluated average ratio (COAL:OB) at each mine with due adjustment for advance
stripping and ratio-variance account after the mines are brought to revenue. Net of balances of advance
stripping and ratio variance at the Balance Sheet date is shown as cost of removal of OB under the head
Non - Current Assets/ Long Term Provisions as the case may be.
149
The reported quantity of overburden as per record is considered in calculating the ratio for OBR accounting
where the variance between reported quantity and measured quantity is within the lower of the two
alternative permissible limits, as detailed hereunder:-
Annual Quantum of OBR of the Mine.
Permissible limits of variance.

I
%
II
Quantum
(in Mill.Cu.Mtr.)
Less than 1 Mill.Cu.M.
+/- 5%
0.03
Between 1 and 5 Mill. Cu. M.
+/- 3%
0.20
More than 5 Mill. Cu.M
+/- 2%
Nil
However, where the variance is beyond the permissible limits as above, the measured quantity is considered.
17.0
Prior Period Adjustments and Prepaid Expenses:

Income / expenditures relating to prior period and prepaid expenses, which do not exceed ` 0.10 Crore
in each case, are treated as income / expenditure of current year.
* Policy No 2.3 not applcable to any subsidiaries except CMPDIL
** Applicable to subsidiaries having such trust.
150
NOTE - 34
ADDITIONAL NOTES ON ACCOUNTS
1.0 :
BACKGROUND:
1.1
Eastern Coalfields Limited was incorporated as a Private Limited Company on 1st November, 1975 as a
100% Subsidiary of Coal India Limited (CIL) upon taking over of Assets and Liabilities vested with the
Eastern Division of Coal Mines Authority Ltd.( former name of Coal India Limited).
1.2
Pending completion of legal formalities for transfer of assets and liabilities to the Company certain Assets
including Mining Rights etc. continued to be in the name of CIL.
1.3
The formal transfer Deeds/ Agreement for Assets & Liabilities transferred and taken over by the Company
in respect of coal Mines Labour Welfare Organisation, Kalla & Central Hospital along with 4 other Hospitals/
Dispensaries, Mines Rescue Station, Barakar Engineering & Foundry Works are yet to be finalised and
executed in favour of the Company. In the absence of formal transfer and/or details of assets and liabilities
of the above units, the valuation thereof has not been considered in the accounts. Consequently payment
of ` 26.92 lakhs (` 26.92. lakhs) made for Mines Rescue Station and Kalla Hospital has been shown in
the accounts as receivable.
2.0 :
FIXED ASSETS AND CAPITAL-WORK-IN-PROGRESS.
2.1
Building includes Roads & Culverts situated in the residential/official/factory areas.
2.2
S.P.Mines is the custodian of presently abandoned Soft Coke Plant as installed by CMPDIL. Neither any
value of assets is recognised nor any operational expense is incurred by the Company for such Plant.
2.3
Capital items of stores like Conveyor Belt, Power Cables, Engineering Ropes and 90% value of civil
materials lying in the Stores are shown as Capital W.I.P.
2.4
Physical verification of Plant & Machinery each worth ` 1.00 lakh and more have been carried out as per
programme. Resultant differences on completion of formalities have been adjusted.
2.5
ASSETS TAKEN OVER ON NATIONALISATION :

The net value of assets, details of which are not available amounting to ` 8.17 crores acquired on
nationalization of Coal Mines under Coal Mines Nationalisation Act, 1973 have been taken into accounts
and shown under group of tangible assets against which full provision has been made.
3.0 :
INVETORY :
3.1
The enquiry proceedings by CBI, Dhanbad for shortage of coal at Rajmahal OCP of ` 19.54 lakhs tonne
valuing to ` 63.58 crore in 2007-08 has been completed in 2010-2011 and the same has been forwarded
to Chairman, CIL for information and advice the Vigilance department for taking action against the charged
officers as per CBI order.
3.2
4.0 :
4.1
Coal of 471408 M.T. (471408 M.T.) mixed with matti etc. is non-vendible and has been taken as NIL value.
SUNDRY DEBTORS :
Provision of Sundry Debtors are generally made on case to case basis. Normally no provision of Sundry
Debtors is made on unsettled amount of Debtors at the initial years. In the 2nd year provision is made
upto 50% amount of unsettled amount of debtors, and the rest is provided in 3rd year if remains unsettled.
Further, no provision is made on vendible stock except deterioration of old stock due to fire, theft, etc.
151
4.2
An amount of ` 92.45 lakhs is includes in Sundry Debtors representing receivable in various Areas
Accounts which are quite old. Pending collection of party-wise details, full provision exists in the Accounts
against the said receivable.
5.0 :
CURRENT LIABILITIES & PROVISIONS.

A. CURRENT LIABILITIES :
5.1
As required by section 22 of Micro, Small & Medium Enterprises Development Act, 2006, the following
information is disclosed on the basis of information available with company. As on 31.03.2013 Principal
amount remaining unpaid to MSME is ` 1.18 crores and interest due thereon is NIL
B. PROVISIONS:
5.2
The year end provision towards gratuity, leave encashment, Gross Personal Accident Insurance, LTA/
LTC, Life Cover Scheme, settlement allowances, Fatal Accident benefit and medical benefit of retired
employees has been made on actuarial valuation as per the certification given by the actuary. The
assumptions considered by the Actuary for determining the above actuarial valuation are as under :Demographic Assumptions
Mortality rate
Table LICI 1994 1996
Superannuation Age
60 years
Early retirement & disablement
10 per thousand per annum

6 above age 45
3 between 29 and 45
1 below age 29
Financial Assumpton
Discount rate
Inflation rate
Return on Assets
Remaining working life
Formula used
5.3
5.4
5.5
6.0 :
6.1
6.2
8. %
6%
Not-funded
12 years
Projected Unit credit Method
During the year company has ad-hoc provision for ` 54.34 crore (` 29.64 cr.) as Performance Related
Pay as per advice of Coal India Ltd.
During the year company has made a provision of ` 39.44 Cr. as Post Retirement Medical Benefit
(Executives Retired after 01.01.2007) and ` 56.87 Cr. as 4% Post Retirement Medical Benefit for
existing executives.
During the year Company has made a provision of ` 218.66 Cr. towards payment of Ex-gratia to nonexecutives employees @ ` 26500/- per employee.
PROFIT AND LOSS ACCOUNT :
Coal issued to employees (free issue) amounting to ` 24.23 crores (` 32.71 cr.) and for internal
consumption of ` 89.10 crore ( ` 90.25 cr) are accounted for on the basis of norms fixed by the management
and valued at related grade selling price and the same is exhibited in the accounts as a specific contra.
Subsidy due from appropriate authority for stowing and protective work undertaken during the year has
been received for six months amounting to ` 17.75 crore (` 15.84 cr) Subsidy receivable for the balance
period of six months have been estimated on pro-rata basis and shown under Other Current Assets (Note
19).
152
7.0
CAPITAL COMMITMENT :
7.1
Estimated amount of contract remaining to be executed is ` 180.06 crores ( ` 135.30crores).
7.2
CLAIMS AGAINST THE COMPANY NOT ACKNOWLEDGED AS DEBTS.

( ` in Crores)
Particulars
Current year
Sales Tax
146.80
149.54
1262.78
2947.50
Others
562.73
460.00
Total
1972.31
3557.04
Royalty & Cess
7.3 :
Previous year
( ` in Crores)
DIRECTORS REMUNERATION :
Particulars
Current year
Previous year
Salary & Allowances
0.80
1.24
Provident Fund.
0.07
0.08
Perquisites.
0.14
0.16
NIL
NIL
1.29
1.48
Retirement benefit.
Total
Salary and Allowances includes PRP of ` 0.12 crores

a)
Perquisites do not include value/charges for House Rent / Electrical Energy which has been recovered
as per rules of the Company and value of Free Medical facilities in Company Hospital/Dispensary.
b)
Besides the above, Directors have been allowed to use car for private journey up to a ceiling of 750 Kms.
per month on payment of ` 400/= per month as per service rules.
8.0 :
Production of Coal of 339.01 lakh tonnes (305.58 lakh tonnes).
9.0 :
COAL :
( ` in crores)
(Quantity in lakh tonnes)

Particulars
31.03.13
31.03.13
31.03.12
476.65
430.58
3.54
1.40
Op. Stock
45.19
47.91
Adjust / seized coal.
---
----
Sales(*)
355.42
304.90
9191.91
8262.09
25.86
45.19
309.74
476.65
Closing Stock (**)

(*)
31.03.12
Does not include coal issued for domestic consumption by Employees and boiler consumption of 2.89
lakh tonnes ( 3.40 lakh tonnes) and Sundry purpose 0.12 lakh tonnes (0.01 lakh tonnes) .
(**)
Net surplus/shortage NIL .
153
10.0 :
Earning in foreign exchange :- NIL .
11.0 :
CIF Value of Imports.
( ` in Crores)
in Crores)
Particulars
Current Year.
a. Raw Materials
b. Components, Stores & Spares.
c. Capital Goods.
12.0 :
Previous Year.
Nil
Nil
13.86
21.18
Nil
28.97
Expenditure in Foreign Currency :

( ` in Crores)
Particulars
Current Year
a. Travelling Expenses.
b. Expenses on Know - How & Foreign Consultancy.
c. Pension to the Foreigners.
13.0 :
.07
0.14
--
--
--
d. Others
Previous Year.
--
5.48
6.95
Total consumption of Stores during the year.

( ` in Crores)
Particulars
(Percentage)
Current
Previous
Current
Previous
Period
Period
Period
Period
19.63
21.64
3.02
3.82
630.32
552.58
96.98
96.18
a. Total consumption of
imported materials.
b. Indigenous
14.0 : GENERAL
14.1 : Impairment of assets (Prospecting Boring & Mine Development) is made when the carrying amount
of each mine ( Cash Generating Unit) exceeds its recoverable amount, which are being determined
on the basis of future Cash Flows of subsequent five years calculated on constant price level.
14.2 : An advance payment of ` 8.10 crores has been made towards FBT in 2005-06, against which
the return was submitted for ` 7.49 crores as per self assessment/tax audit report and assessment
was made accordingly. Subsequently an appeal petition was submitted showing revised liabilities
as ` 4.0 crores which is pending with the appropriate authority..
14.3
In the opinion of the management, all current assets including loans and advances have
realisable value in the ordinary course of business at least equal to the amount at which they
are stated. Further adequate provision has also been made in respect of all known liabilities.
154
14.4 : Reconciliation of balances with Debtors are made on perpetual basis. Where confirmation
from Creditors and other parties are not obtained, in that case the book balances are considered
as correct.
14.5 : A case of misappropriation was detected at Satgram Area in the year 2004-05 and FIR was
lodged and the matter has been taken up with the Insurance Company. The amount involved
has been worked out to ` 0.40 crore. The same is yet to be settled by the Insurance Company..
14.6
As per CSR policy of CIL , since ECL is having a negative net worth, the CSR expenditure
incurred by ECL is to be borne by CIL. An amount of ` 9.43 crores has been incurred by ECL on
account of CSR during the current year and has been shown as Other Receivables in Note No:
19 to be transferred to CIL in 2013-14.
14.7 : The company was declared Sick Company and was referred to the Board for Industrial and
Financial Reconstruction (BIFR) and a case was registered as case no. 501/2000. BIFR has
appointed State Bank of India as its operating agency for formulating a Rehabilitation Scheme.
The company after detailed deliberation with Stakeholders prepared a Rehabilitation Scheme
and submitted to BIFR through the operating agency. The BIFR sanctioned the scheme in
November, 2004 for implementation. As per the BIFR sanctioned scheme, the net worth of the
company was slated to become positive in 2008-09 after considering the concessions/relief to
be received from Coal India. But due to delay in implementation of some of the envisaged project
for augmentation of production, implementation of NCWA-VII w.e.f. 01.07.2001 to 30.06.2006
and revision of sale price of coal from 16/06/2004 the physical and financial projection were
revised and accordingly revised revival plan was prepared. The revised plan was recommended
by Board for Reconstructions of Public Sector Enteprises (BRPSE) and approved by Government
of India in October, 2006. As per the revised Revival Plan approved by Government of India, the
net worth of the company was slated to become positive in 2009-2010.
However, the company could not be able to make its net worth positive in 2009-10 as many of the
projects could not be implemented due to inordinate delay in obtaining approval of project report
of many of the envisaged project, difficulty in acquisition of land obtaining forest clearance. In
addition, NCWA-VIII from 01.07.2006 and executive pay revision from 01.01.2007 has also been
implemented.
Hence, the company again prepared a revised Revival Plan taking into account the delay in
implementation of many of the projects, and as per the revised projection, the net worth of the
company was stated to become positive in 2014-15, and was placed for discussion in 230th ECL
Board meeting held on 31st August, 2009 and 1st September, 2009. But due to delay in
implementation of various projects, Functional Directors in its meeting held on 5th Jan, 2010
advised to revise the physical parameters from 2010-11 to 2016-17. In between Coal Sale Price
was also enhanced from 16th October, 2009.
Hence, the financial projections earlier made were further revised and as per the revised
projection, the net worth of the company was stated to become positive in 2016-17 with waivers
of CIL loan and conversion of current account balance into equity. ECL Board in its 237th meeting
155
held on 5th August, 2010 had approved the above Draft Modified / Revised Proposal (DMRP).
Company presented the DMRP to BRPSE and BRPSE reviewed the ECLs case on 27th August,
2010 BRPSE advised the company to revise the physical and financial projection by exploring
the possibility of advancing the project completion to enable the company to come out of BIFR in
advance. Accordingly revised DMRP has been prepared and as per the revised scheme, the
company is expected to come out of BIFR in 2014-15. The sale price of the company has increased
at par with imported coal price which facilitate the company to earn a profit in 2009-10 , 201011,2011-12 & 2012-13
A meeting was held on 02.09.2011 with Monitoring Agency and Technical Consultant appointed
by SBI in the office of the BIFR and re-assessed the status as under consisting the following.
i)
Production targets have been reviewed further with pessimistic approach.
ii) Pricing of coal at par with imported coal price

iii) Projection to be made with conservative estimates.
Accordingly, ECL has submitted a revised estimate where it shows that by considering the above
approach, the net worth of ECL will become positive in the year 2013-14 or otherwise by CIL
pricing guidelines, the net worth of the company will become positive in the year 2015-16. The
position has been intimated to BIFR on 15.10.2011. In view of above, the accounts of the company
has been prepared on the basis of Going Concern Concept.
15.0 : ACCOUNTING STANDARDS
a).
AS-17 : Segment Reporting The Company is primarily engaged in a single segment business
of production and sale of coal. There is no other reportable primary segment identifiable
in accordance with AS-17.
b).
AS-18: Related Party Disclosures In view of the exemption granted to State Controlled enterprises
as regards related party relationship with other State Controlled Enterprises for transactions with
such enterprises, no disclosure under AS-18 is made, being not applicable for the Company.
c)
AS 20 EARNING PER SHARE : Earning per share is calculated by dividing the profit earned by
the company for the year ended 31st March, 2013 with the weighted average number of equity
share of the company outstanding during the period as per details given below :( ` in crores)
a) Profit during period ending 31st March, 2013b) Weighted average number of shares
22184500 Nos.
` 746.26
EPS - (Basic & diluted) (a/b)

d)
` 1655.54
AS-22 Deferred Tax Asset: Deferred Tax Asset is accounted for by computing the tax effect of
timing differences, which arise during the year and revenue in subsequent periods. The detail
calculations are given below:
156
( ` in crore)
Deferred Tax
Current Year
Deferred Tax
Asset/(Liability)
(Charge)/Credit
Asset/(Liability)
As on 31.03.12
2012-13
As on 31.03.13
Deferred Tax Assets:

(i) Provision for Gratuity
(26.30)
2629.54
(ii) Provision for super annuation benefit
2655.84
77.02
21.61
98.63
(iii) Provision for Mine Closure
153.27
64.11
217.38
2886.13
59.42
2945.55
(319.61)
37.64
(281.97)
2566.52
97.06
2663.58
Deferred Tax Liability

(i)Difference between Tax & Book
depreciation
Net
Net Deferred Tax Asset
Transferred to general reserve
832.71
832.71
Net Deferred Tax Asset

Credited to Profit & Loss a/c
31.49
31.49
Total Deferred Tax Asset (Net)

e)
f)
g)
864.20
AS-24: There is no discontinuation in operation of any activities in any mines during the year.
AS- 28: Impairment loss of ` 20.07 crores ( ` 28.75 crores) on prospecting & boring and other mines
development cost including Capital WIP for the year ending March, 2013 debited to P/L A/c under the
head impairment of assets as per accounting policy.
AS-29 : In respect of Provision, Contingent Liabilities and Contingent Assets, the followings are the
transactions made during the year.
( ` in crores)
Details
Opening
Provision as on
31.03.2012
Unserviceable/Damaged/
Obsolete Stores Suspence
11.66
2.32
Non moving Stores
33.00
Loans and Advances

and Other Current Assets
Mine Closure Plan
Provision
made during
The year/Period
Closing
provision
as on
31.03.2013
1.04
10.62
2.32
2.41
1.18
34.23
19.40
0.99
0.04
20.35
153.27
64.11
---
----
26.50
92.74
---
Actuarial provision for

Gratuity
2655.84

Leave encashment
387.98
Provision
Written back
During the
Year
157
217.38
2629.54
480.72
Details
Opening
Provision as on
31.03.2012
Provision
made during
The year/Period
Provision
Written back
During the
Year
Closing
provision
as on
31.03.2013
Actuarial provision for LTC/

LLTC
22.81
5.15

Life Cover Scheme
21.83
0.73

Settlement Allowances
64.98
Actuarial Provision for Fatal

Mine Accident Benefit
47.69
Actuarial Provision for Gross

Personal Accident Policy
0.18
Actuarial Provision for Post

Retirement Medical benefit
6.71
102.83
6.71
102.83
3427.67
270.50
40.41
3657.76
Total
--1.54
---
---
27.96
1.22
21.34
3.92
61.06
---
49.23
---
0.18
16.0
The figures in the parenthesis represent those for the previous year.
17.0
Figures for the previous year have been regrouped, re-arranged and recast wherever necessary.

Annualreport12 13 PDF

Transféré par

Informations du document

Description originale:

Titre original

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Annualreport12 13 PDF

Transféré par

Droits d'auteur :

Formats disponibles

w ering In

ANNUAL REPORT & ACCOUNTS

EASTERN COALFIELDS LIMITED

SANCTORIA , P.O. DISHERGARH, DIST. BURDWAN

Bankers / Auditors / Vision / Mission Statement

Notice of Annual General Meeting

Comments of the Comptroller and Auditor

Auditors' Report and Management's Reply

Balance Sheet as on 31st March, 2012

11. Notes forming part of Balance Sheet

12. Notes forming part of Profit & Loss Account

13. Significant Accounting Policies

14. Notes on Accounts

EASTERN COALFIELDS LIMITED

MANAGEMENT DURING 2012-13

MANAGEMENT AS ON 25th MAY, 2013

Shri Rakesh Sinha

Shri Rakesh Sinha

Shri S.K. Srivastava

Shri S.K. Srivastava

Shri A.K. Soni

Shri C.K. Dey

Shri C.K. Dey

Shri Ramesh Chandra

Shri Ramesh Chandra

PART-TIME OFFICIAL DIRECTORS:

PART-TIME OFFICIAL DIRECTORS:

Shri A.K. Sinha

SPECIAL DIRECTOR APPOINTED BY BIFR:

Shri D.N. Prasad

Shri K.K. Gautam

Shri Subrata Chaudhuri

SPECIAL DIRECTOR APPOINTED BY BIFR:

Shri S.K. Mohanty

Shri K.K. Gautam

Shri S.M. Lodha

NON-OFFICIAL PART-TIME DIRECTORS:

Shri S.M. Sharma

Shri Subrata Chaudhuri

Shri S.M. Lodha

Shri V.R. Reddy

Shri S.M. Sharma

ANNUAL REPORT 2012-13

BANKERS DURING 2012-13

STATUTORY AUDITOR DURING 2012-13

BRANCH AUDITORS DURING 2012-13

REGISTERED OFFICE OF THE COMPANY

EASTERN COALFIELDS LIMITED

Eastern Coalfields Limited

May 20, 2013

Dated : May 20, 2013

ANNUAL REPORT 2012-13

EASTERN COALFIELDS LIMITED

ANNUAL REPORT 2012-13

ii) Coking Coal :

EASTERN COALFIELDS LIMITED

Loss of Production due to :

SYSTEM CAPACITY UTILISATION :

Profit(+)/Loss(-) after charging all expenses but before PRP /

ANNUAL REPORT 2012-13

Less: Prior Period Adjustment.

Profit after Tax